Australia’s development support to the Philippines would continue even after it reaches an upper-middle income country (UMIC) status, Ambassador HK Yu said on Thursday.

Australia is one of the Philippines’ biggest sources of official development assistance (ODA) –aid that comes in a form of grant or concessional loans to help advance a country’s social and economic development.

With the Philippines expected to graduate into an upper-middle income state, it is also anticipated to lose its ODA privileges.

“There will be some of those complications, but interestingly enough, Australia provides a lot of these assistance to many countries that are already in that category,” Yu told reporters on the sidelines of the Foreign Service Institute Ambassadors’ Lecture Series in Pasay City.

“I can’t really talk about hypotheticals right now, but I’m sure there will be ways that we can actually continue to work together so that Australia’s support for the Philippines economic and social development continues,” she added.

Australia’s bilateral ODAs for the Philippines amount to around PHP3.3 billion annually, one of its largest aid programs in the world. This is on top of its regional ODAs and non-ODA assistance that trickle down to the country.

Last 2024, it launched a new development partnership plan with Manila to provide a clear framework of areas where Australia can add value in terms of Philippines development objectives.

“So, this development partnership plan will guide what we do here, because it’s been signed off by the Philippine government,” Yu said.

Under this plan, Australia bankrolls several multi-year programs, including a PHP2.4-billion peace and security program in Mindanao, and a PHP1.5-billion social protection, gender equality and inclusion initiative.

It also funds a PHP1.04-billion disaster response and management program, as well as a PHP731-million fair justice program to help reform the Philippine justice system and protect human rights.

“Under this framework, under these numbers, there are so many fantastic works that’s really turning the dial on the Philippines development and growth,” she said.

“But that’s not it, that’s not the end, we’ve got more to come.” (PNA)