The Philippine digital economy sustains momentum as preliminary figures from the Philippine Statistics Authority (PSA) estimate Gross Value Added (GVA) of digital transactions at PHP 2.25 trillion (~USD 39 billion) in 2024, recording an increase of 7.6% from 2023 (PHP 2.09 trillion, or equivalent to USD 36 billion), and representing 8.5% of Gross Domestic Product (GDP). Digital-enabling infrastructure comprises the largest share at 21.4% or PHP 1.88 trillion (~USD 33 billion). The Professional and Business Support Services sector is a core contributor to this component (32.7%), followed by Telecommunication Services and ICT Manufacturing. Over 11 million Filipinos are engaged in work under the components of the digital economy, up by 4.8% from 10.78 million in 2023, and representing 23.1% of national employment. Early forecasts project that the Philippine digital economy could expand by 15 to 20% in 2025, on the back of a promising e-commerce market expected to be valued at USD 24 billion by year-end.
Much of this growth can be attributed to a strategic pivot toward facilitating the country’s digital development, as evidenced by the launch of the Philippine Development Plan 2023-2028. Concerted efforts in accelerating the archipelago’s digital transformation include the acquisition of a digital national ID for 88 million Filipinos and counting, rollout of the National Fiber Backbone across six regions, deployment of satellite internet in under-served areas, and the launch of the eGov PH super-app. The bulk of the work is centred on ensuring national connectivity: mobile internet penetration has reached 54.1% in 2024 from 45.5% in 2025, and installed telecommunications towers have nearly doubled to 35,043 in 2023 versus 17,850 in 2020.
Tailoring governance to cultivate a digitally-enabled, future-ready workforce, while resolving underlying challenges with infrastructure, social inclusion, and evolving cyber-threats will be key to unlocking the next stage of growth for the Philippine digital economy.
The Tech for Good Institute, in collaboration with Department of Information and Communications Technology (DICT), conducted a public seminar entitled “The Evolution of Tech Governance in Southeast Asia: Spotlight on Philippines”, with the aim of bringing together distinguished policymakers, industry leaders, and academic experts to explore governance challenges and regulatory developments essential for the Philippines’ digital transformation.
The event also served to launch the second edition of “The Evolution of Tech Governance in Southeast Asia-6”, sharing major policy developments across Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam.
Speakers:
- ASec Celine Dee, Assistant Secretary at the Department of Information and Communications Technology (DICT)
- Anton Mauricio, Chairman of InnovationPH and Co-Founder of the Global AI Council of the Philippines
- Jay Fajardo, Managing Director of LaunchGarage
- Gio Tingson, Head of Public Affairs of Grab Philippines
- Citra Nasruddin, Programme Director, Tech for Good Institute
- Keith Detros, Programme Manager, Tech for Good Institute
Key Takeaways
1. Capitalise on the distinct features of the Philippines’ digital landscape, including a dynamic start-up scene, a well-established IT-BPM sector, and a young, vibrant working population.
The Philippines boasts a relatively young population of 30 million Filipinos aged between 10 and 24, ensuring the country has a pipeline of digital-savvy workers. But beyond the typical associations – for example, the Philippines is often touted as the “social media capital of the world” – the speakers highlighted traits that speak to the potential of Filipino talents: ingenuity, adaptability, entrepreneurial mindset, and resilience. This is referred to as diskarte, which literally translates to “strategy”, demonstrated through Filipinos juggling multiple sources of income on digital platforms.
A thriving IT-BPM sector centred on providing high-value services, generating export revenues of USD 38 billion in 2024, has cultivated a market of digitally competent workers. Parallel to this, the prevalence of remote work has increased Filipino workers’ exposure to global tech start-ups and hubs like Silicon Valley, which speakers note can be a catalyst for a new wave of start-up founders in the country.
The Philippines’ start-up ecosystem is already a robust one, ranking within #61-70 of emerging ecosystems in the 2025 Global Startup Ecosystem Report (GSER), and creating an ecosystem value of USD 6.3 billion in 2022 to 2024. Key focus areas for ventures are fintech, artificial intelligence (AI), and sustainability.
To leverage these strengths, speakers have pointed to the importance of increasing access to digital tools and training, and committing to investing in locally-grown innovations. To that end, the DICT has initiatives like Strengthening the Philippine Workforce through Adaptive and Responsive Digital Knowledge (SPARK), which offers specialised training programmes, reintegration support for returning overseas Filipino workers (OFWs), and courses on enterprise technology solutions for micro, small, and medium enterprises (MSMEs). The National Development Company (NDC) also has an existing initiative known as the Start-Up Investment Fund, which seeks to match 1-to-1 equity financing from selected investors to qualified start-ups. Another resource is the Department of Science and Technology (DOST) Technology Business Incubation (TBI) facility to assist start-ups in business development and adoption of relevant technologies.
2. Enable innovation through adaptive governance.
In terms of must-have interventions, the panel identified tools like sandboxes which can open space for new business models and expand opportunities for meaningful digital participation. There are existing models in the financial services space: for example, the Bangko Sentral ng Pilipinas (BSP) is a proponent of this mode of governance, institutionalising a Regulatory Sandbox Framework in 2022 which has since received 13 applications geared toward financial innovations. The Securities and Exchange Commission (SEC) has recently followed suit, releasing guidelines for its Strategic Sandbox Framework in 2024 and covering themes such as digital assets. While this is a promising start, the speakers have brought up the need to launch sandboxes in other areas of interest, such as AI, to foster a culture of experimentation beyond the usual sectors.
The panel also discussed streamlining regulatory bodies to ensure ample coverage of key policy issues, and the formation of specialised authorities on emerging technologies. Among the concerns floated during the seminar are the adequacy of social protection programmes for platform workers, the growing developmental divide due to lack of access for rural areas and minority groups, and the role of technology and digital platforms in augmenting traditional sectors like agriculture.
To address these gaps, digital policy priorities are focused on increasing access through the proposed Konektadong Pinoy Bill, improving delivery of public services through eGov PH, and ensuring the safety and security of Filipinos online through a still-pending Cybersecurity Bill.
3. Cross-sectoral collaboration is key to driving inclusive and sustainable digital growth especially in rural areas.
The Philippines’ digital economy agenda is grounded in partnerships particularly at the local government level, as speakers emphasise the importance of meeting people where they are to ensure their needs are accurately captured and encourage innovation. The DICT’s Trabahong Digital strategy, which aims to create 8 million digital jobs for Filipinos by 2028, works with local government units (LGUs) and digital platforms to identify job demand, cultivate high-quality and accessible talent through ladderised programmes for specific job roles and competencies, and aid job-seekers in data analytics-enabled matching and placement. These programmes currently focus on the IT-BPM sector, e-commerce, start-ups, and freelance work.
Part of the effort includes supporting small businesses to come online, where LGUs are similarly involved. The Department of Trade and Industry (DTI) has partnered with Marikina to launch the Philippine Innovation Hub (iHub), providing support to MSMEs from ideation to global expansion. The Quezon City government has introduced its own start-up programme, funding innovative ventures in professional and business categories.
Combined, these interventions are steadily making headway in ensuring the benefits of digital transformation reach underserved communities and equipping Filipino digital workers and enterprises with holistic, future-proof skillsets.
