With a projected gross merchandise value of $31 billion by 2024, the Philippine digital economy presents significant opportunities for advancing financial inclusion, improving government efficiency, and creating livelihood opportunities. Recognising this potential, the Philippine government has identified digital transformation as a key pillar in the Philippine Development Plan 2023-2028.
While the Philippines might be one of the fastest growing digital economies in Southeast Asia, there are still persistent challenges that need to be addressed. Key issues include inadequate digital infrastructure, governance issues, and gaps in digital skills.
To address these challenges, the Tech for Good Institute (TFGI), in partnership with the National Development Company (NDC), hosted a roundtable discussion titled “Fostering an Inclusive Philippine Innovation Ecosystem for Sustainable Development.” The event explored opportunities for collaboration among stakeholders to cultivate an innovation-friendly environment that prioritises inclusivity and sustainable development.
Building on these conversations, TFGI and the NDC have published this policy brief which summarises key points from the roundtable discussion and presents timely, relevant, and actionable policy consideration for the Philippines.
Key Policy Considerations
To enhance the state of digital infrastructure in the Philippines, prioritising funding for programs that expand internet access to remote areas is crucial. This includes continued roll out of government initiatives such as the National Broadband Plan, the Free Wi-Fi Program, and satellite internet projects, alongside investments in educational tools to bridge digital learning gaps in underserved schools. Related to this, effective implementation demands strengthened interagency cooperation between national agencies and local governments to streamline processes and address bottlenecks. Finally, fostering closer collaboration with digital platforms and startups can help resolve implementation challenges in digital infrastructure, leveraging their local insights to achieve more impactful outcomes.
Policy reforms can be considered to incentivise market participation from more players by lowering barriers to entry, such as those proposed in the Konektadong Pinoy bill. In addition, tax reforms are essential to attracting technological investments, expanding digital services, and positioning the Philippines as a regional data centre hub. Government agencies can enhance efficiency by automating critical operations, including cash disbursements and tax collection, which can improve service delivery and revenue generation. Lastly, establishing a comprehensive AI governance framework with clear principles, roles, and mechanisms like regulatory sandboxes will ensure responsible AI adoption while fostering innovation across various sectors.
Government agencies like the Technical Education and Skills Development Authority (TESDA), the Department of Education (DepEd), and the Department of Trade and Industry (DTI) can consider potential collaborations with industry associations, educational institutions, and digital platforms to design competency-based skills programmes. In addition, leveraging data from digital economy companies can help government agencies understand user behavior and tailor digital literacy programmes to be more effective.
By implementing forward-thinking policies, enhancing digital infrastructure, and investing in workforce upskilling, the Philippines can strengthen its digital innovation ecosystem to become more resilient and inclusive. Achieving this vision will require a collaborative effort involving government, industry, civic organisations, and academia. With sustained commitment and cooperation, the digital economy stakeholders can ensure that all Filipinos reap the benefits of the digital age.
