The Philippine Development Plan highlights digital transformation as a key driver for achieving financial inclusion, enhancing government efficiency, and fostering economic growth. In 2023, the country’s digital economy contributed 8.4% to GDP, with significant growth from the previous year. However, a digital divide remains, especially in rural areas, where the cost of essential digital services is far higher than the ASEAN average. The Philippines also faces a digital skills gap, with nearly 90% of the population lacking basic ICT proficiency, further hindering workforce competitiveness.
To address these challenges, various stakeholders—including government, the private sector, and digital platforms—are collaborating on initiatives aimed at inclusive digital transformation. The National Development Company’s Philippine Innovation Hub supports startups and drives innovation, while the proposed Konektadong Pinoy bill aims to upgrade infrastructure and promote wider participation in the digital economy. Digital platforms have also played a pivotal role in providing essential services like digital payments, deliveries, and healthcare to underserved communities, helping both consumers and micro, small, and medium-sized enterprises (MSMEs) transition to the digital economy.
Against this backdrop, the Tech for Good Institute, in partnership with the National Development Company, organised a roundtable discussion titled “Fostering an Inclusive Philippine Innovation Ecosystem for Sustainable Development.” The roundtable explored opportunities for cooperation among stakeholders to create an environment that fosters innovation while prioritising inclusive and sustainable development.
Participants
- Ming Tan, Executive Director, Tech for Good Institute
- Michael Raymond Lucero Gonzalez, President, ToJo Motors Corp
- Dennis Ng, Founder, Tojo Motors
- Ramon Garcia Jr, Executive Chairman and Founder, DFNN Group of Companies
- Jerahmeel Chen, Chief Innovation Officer, National Development Company
- Ronald Roda, Country Head, Grab Philippines
- Jason Bogovich, Lead Consultant, Southeast Asia Development Solutions ADB
- Basilio Claudio, Programme Associate Tech for Good Institute
- Regina Ng, Partnership Lead, Tech for Good Institute
- Gio Tingson, Head of Public Affairs Strategy, Grab Philippines
Key Takeaways
1. Many Filipinos face difficulties in adapting to digital transformation.
Gaps in internet access and digital literacy are major barriers preventing many Filipinos from fully benefiting from basic digital services. Cell towers, which are essential for internet connectivity, are lacking and unevenly distributed, particularly in urban areas. The arrival of satellite internet providers has been a positive development, but more needs to be done to ensure meaningful access. Many Filipinos do not utilise online applications or digital payments, limiting their access to services such as ride-hailing or paratransit systems, which are transitioning to the use of top-up cards. Online safety is another growing concern, with increasingly sophisticated cyber threats, scams, and frauds threatening meaningful digital participation.
2. Digital platforms and startups are leveraging innovation to address social challenges.
Digital platforms use their unique attributes—efficiency, scale, accessibility, and agility—to address significant social challenges in the Philippines. Both public and private sectors can harness these platforms to solve pressing issues. Startups, such as Mober and Tojo Motors, are also innovating for long-term sustainability. These companies are rolling out fully electric fleets for logistics and paratransit systems, addressing both environmental concerns and the need for sustainable transport solutions.
3. Meaningful dialogue among stakeholders is crucial for fostering a robust innovation ecosystem.
A vibrant digital ecosystem must support innovation while addressing the risks of increasing inequality and unequal access. Collaboration between public and private stakeholders is essential to promote reforms that increase competition and attract investment. These efforts may include corporate tax reforms, reducing bureaucratic red tape, and creating incentive-based programmes to attract digital talent. Collaboration on digital skills and capacity-building is also critical. Government can work with universities and think tanks to develop competency-based curricula that align the skills of graduates with the needs of modern industries.
4. Regional cooperation is key to overcoming barriers to local innovation.
Regional collaboration can significantly enhance the development of an inclusive local innovation ecosystem. For example, promoting a common cybersecurity framework for ASEAN countries is vital to building trust and encouraging wider adoption of digital services. Furthermore, ASEAN member states should prioritise digital inclusivity in negotiations to bridge existing demographic divides. Finally, countries must cooperate on the effective governance of emerging technologies, including Artificial Intelligence, to establish necessary guardrails while harnessing its potential to boost productivity.
