With the Philippine digital economy seen to balloon to as much as $150 billion – or about P8.3 trillion by current peso-dollar exchange rates – the government must accelerate its digital transformation initiatives to maximize the potential of the so-called e-conomy.
Digital Transformation ng Pilipinas (DigiPinas), a UBX-led multisectoral initiative for digital transformation in the government, believes that while the government is treading the right path towards a new digital world, the Philippines has yet to unlock the true potential of its digital economy.
“The national government is definitely on the right track towards achieving a new digital world where everyone is included. But while the Internet is considered the greatest equalizer, the national and local governments play an important role in driving digital services that fully cater to their constituents on a more intimate scale,” said DigiPinas Spokesperson Mikan Leachon.
According to a 2022 study conducted by Google and Temasek on Southeast Asia’s e-conomy through 2030, the Philippine digital economy is currently valued at $20 billion. It is expected to grow steadily, ballooning to as much as $150 billion in the next decade.
Digital retail, online travel, online media, digital payments, and online transportation and food deliveries make up most of the values derived from the e-conomy. According to the study, more and more Filipinos are adapting to the digital trend.
The reopening of Southeast Asian economies significantly impacted consumers and the digital economy with the pandemic normalizing online transactions. Google and Temasek data point to a continued growth path for digital transactions despite the resumption of on ground economic activities.
Given this, the Philippine government must quickly address the demand for digital government solutions to complement this uptrend.
“The Philippines is going through a digital revolution and the government has to step up its game to enable this to succeed. The current administration’s desire to pursue digital transformation is a welcome development, we just have to turn this idea into a reality. DigiPinas is able and willing to support the government in this initiative,” Leachon said.
DigiPinas champions the enforcement of policies related to digital transformation, geared towards solving age-old problems such as low digital adoption, lack of awareness, gaps in access, digital skills gap, and complex regulations.
It aims to equip each government partner with digital tools and solutions to bring their services closer to their constituents.
UBX, the leading open finance platform in the Philippines, is leading this initiative, providing its expertise in digital financial solutions to the national and local governments, especially those that are in the far-flung and rural municipalities.
“We are eager to partner with various government agencies – both national and local governments – and equip them with the right solutions for digital transformation,” Leachon said.