Left to Right: Dr Ming Tan, Senator Grace Poe, Mr. John Rubio, Ms. Grace Vera Cruz, Mr. Winsley Bangit and Mr. Prim Paypon
The Philippines is one of the fastest growing digital economies in Southeast Asia. The country’s internet economy is expected to reach a gross merchandise value of US$40 billion by 2025. This rapid digital transformation is enabled by the government’s recognition of the digital economy’s potential for economic growth, the innovation from digital economy companies, and the increase in digital adoption among Filipino users.
WIth this potential, there is a massive opportunity for the Philippines to leverage technology not only to achieve financial and economic growth but also to address social, developmental and environmental challenges. The research presentation and dialogue convened government leaders and the private sector stakeholders to discuss relevant, timely and actionable policy recommendations that will broaden the desired outcomes for the digital economy.
Moderator and panellists:
- Dr. Ming Tan (Founding Executive Director of TFGI)
- Senator Grace Poe (Senate of the Philippines)
- Mr. John Rubio (Country Director, Meta Philippines)
- Ms. Grace Vera Cruz (Country Head, Grab Philippines)
- Mr. Winsley Bangit (Vice-President of New Businesses, Mynt)
- Mr. Prim Paypon (Executive Director, AIM – Dado Banatao Incubator)
Key Insights from the Panel:
- Ensuring quality digital connectivity will enable inclusive digital economy growth.
Given the archipelagic nature of the Philippines, the speakers highlighted the need for a fast, reliable, and affordable internet connectivity for all. Currently, internet penetration in Philippine households stands at 56.1 percent. This is largely driven by mobile broadband networks. To ensure that no one gets left behind in the country’s digital progress, efforts towards improved connectivity should include underserved communities especially in remote areas.
- Leveraging social media for more productive use.
The Philippines remains one of the top users of social media globally. According to advertising firms We are Social and Hootsuite, 72.5 percent of Filipinos have access to at least one social media site. A challenge for the Philippines however is to encourage a more productive use of social media.
Social sites and digital platforms can be used to encourage entrepreneurship and education. For entrepreneurs, experts noted the “equalisation” effect social media brings to the market. Micro, small, and medium enterprises can use social media to promote their products and services, communicate with their customers, and reach untapped markets. On the other hand, social sites can help promote community building across cultures and across borders. This provides another avenue for users to access information and learn new skills. Digital literacy, however, is critical in this regard to ensure that users have the necessary awareness to discern reliable and accurate information from the internet.
- Policy innovation is essential to drive digital and business innovation.
The rate upon which digital and business innovation moves is faster than the rate of development of new laws. This introduces unforeseen challenges as DECs pursue growth and unintended risks to users. It is imperative for governments to create a responsive regulatory environment that balances innovation and consumer protection.
During the discussion, the speakers highlighted the importance of updating archaic and outdated laws to reflect the nuances and needs of the new digital reality. For example, There is space for DECs and the governments to work together and co-create new legislations that would enable DECs to scale while ensuring proper safeguards are in place to protect the public’s interest. Innovative practices such as sandboxes and data-driven policy making can help inform these new policies.
- Efforts to ‘modernise’ the regulatory environment for the Philippine digital economy is in progress.
From the government side, there are key legislative developments that seek to ‘modernise’ the regulatory environment. The Public Services Act was recently amended to encourage more players in the digital economy. In addition, there are also planned laws such as: the Open Access on Internet Act which aims to simplify requirements and the registration process for Internet Service Providers (ISP); the Better Internet Act which sets a minimum standard for Internet connection and encourage ISPs to expand to underserved areas; and the E-Government Services Act which promotes the use of technology and technology-powered tools to improve the delivery of government services. On the cybersecurity side, the government is also in the process of passing the Critical Information Infrastructure Protection Act that will provide a framework to ensure the security and reliability of the country’s digital ecosystem.
Overall, the speakers emphasised that a “wais” (resourceful), hopeful, empowered and confident digital society will enable the “speedy” development of the digital ecosystem.
Catch the Event Highlights here