The Philippines’ digital economy can create up to Php 5 trillion through digital transformation by 2030, according to the research conducted by economic consultancy firm AlphaBeta.
“Your Department of Information and Communications Technology is committed to bringing technological advancements in the country. We are working hard to achieve our goal of digital transformation and for a technology-driven economy,” DICT Undersecretary Jose Arturo C. De Castro said.
AlphaBeta is a Singapore-based strategic economic consultancy that works with governments, businesses, investors, and other institutions. Its founder and managing director, Fraser Thompson, stated at the virtual launch of Google’s Economic Impact Report on Tuesday (October 19, 2021) that a technology-driven economy could assist in mitigating the impact of the COVID-19 pandemic and recovering the country’s economic losses.
The report states that if fully leveraged by 2030, the country can foster a digital economy that can raise Php 5 trillion or 101 million US dollars in economic value by 2030. This is equivalent to 27% of the country’s GDP in 2020 alone.
The majority of the total estimated digital opportunity can be generated by technology-led business, which is valued up to Php 3.5 trillion. This includes e-commerce and mobile applications for the retail industry which can facilitate digital transactions and interactions, reduce labor requirements, promote inventory efficiencies, and cut real estate costs, offering productivity gains ranging from six to 15 percent.
The report shows three areas of action required for the Philippines to fully capture its digital opportunity: (i) enhancement of digital skills training and education; (ii) acceleration of digital adoption and innovation, and (iii) promotion of digital trade opportunities.
“Your DICT continues to contribute to these three pillars and we will continue to build on our initiatives to foster the growth of the country’s digital economy. This digital opportunity is only a step in securing digital transformation for our country and for our people,” DICT Undersecretary De Castro added.