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If you want to know why basic food and manufactured goods are so incredibly expensive in the Philippines compared to Thailand or Vietnam, you have to look at the Logistics Performance Index. In Thailand, the logistical cost of moving a product (warehousing, transport, port fees) consumes roughly 14% of the product’s final retail price. In the Philippines, that logistical friction consumes over 25%. This is the Island Penalty. We are an archipelago suffering from chronic under-investment in deep-water ports and rail lines. Because we lack a unified, state-funded freight railway system, a single tomato grown in Mindanao must pass through a gauntlet of monopolized domestic shipping lines, expensive privately-owned tollways, and catastrophic urban gridlock. You aren't just paying for the tomato. You are mathematically paying for the state's failure to build efficient bridges and trains. We can never beat Thailand's export economy if moving the goods costs more than making them. 👇 Let’s discuss transport economics below: Should the government nationalize the tollways and cargo ferries? //Behind Asia