Digital transformation to create P5 trillion in annual economic value for Philippines

MANILA, Philippines — Digital transformation could support up to P5 trillion in annual economic value for the Philippines by 2030, a Google study showed.

Fraser Thompson, founder and managing director of AlphaBeta who presented Google’s Economic Impact Report on the Philippines said the country is well placed to benefit from digital transformation which could unlock up to P5 trillion in terms of annual economic impact by 2030.

This, as the country has a young digital savvy population with Filipinos spending the most time on the internet globally, fast growing internet economy and supportive policies to advance digital adoption.

Of the total digital opportunity, he said roughly 69 percent or P3.5 trillion is expected to come from technologies that help mitigate the impact of the pandemic.

He said these technologies include those enabling hybrid work arrangements for business continuity such as remote patient monitoring, automation or artificial intelligence customer service, as well as robotics in the manufacturing sector.

He said technologies to mitigate long-term effects of COVID are also being used in facilitating customer interactions and marketing through digital platforms.

Another area where technologies are being used to mitigate the impact of COVID is in future-proofing supply chains against global and regional disruptions through internet of things-enabled supply chain management in agriculture and manufacturing, as well as having smart ports.

“Not only do we see big longer term opportunities with these digital technologies but these digital technologies really become crucial as we think about building resilience to the impacts of this and future pandemics,” he said.

To capture the opportunity offered by digital transformation, he said the Philippines would need to take key actions to address challenges.

Among the barriers to fully realizing digital transformation are low digital adoption, lack of awareness of digitalization programs,  gaps in access, lack of digital skills by the workforce, and complex regulations.

To take advantage of the opportunities, Thompson said the country needs to enhance digital skills training and education.

He said accelerating digital adoption and innovation, as well as promoting digital trade opportunities would be important.

For his part, Trade Secretary Ramon Lopez said the Department of Trade and Industry (DTI) recognizes the need to overcome barriers such as the challenges surrounding digital adoption and digital infrastructure.

“This is why we always push for strong partnerships between the public and private sectors, including DTI’s  partnership with Google, because these play a vital role in addressing some of these roadblocks,” he said.

As a main strategy, he said the DTI is encouraging local micro, small and medium enterprises to go online, a mission shared with Google.

Since the onset of the pandemic, he said Google and DTI have trained over 46,000 small business owners and employees to equip them with technology and digital skills.