PH reclaims title as Southeast Asia’s fastest-growing internet economy | Department of Trade and Industry Philippines

Makati City, Philippines—The Philippines has emerged as the fastest-growing internet economy in Southeast Asia, based on the recent report by Google, Temasek, and Bain & Company. The 9th edition of the Google e-Conomy SEA Report showed a 20% growth of the overall digital economy based on Gross Merchandise Value, surging from USD 26 billion to USD 31 billion in 2024.

This resurgence is proof positive of our economy’s digital transformation and our country’s trajectory of becoming a major player in the global digital economy.

The report attributes this strong growth to several factors, including robust domestic consumption, a revitalized services sector, and increased remittances from overseas workers. It further indicates that stabilizing inflation and declining unemployment rates actuallyt stimulate private consumption and drive increased demand for digital services.

DTI Secretary Ma. Cristina Roque welcomed the report, attributing this success to the Marcos Jr. administration’s strategic reforms aimed at expanding the country’s digital economy.

“The results of the 2024 Google, Temasek, and Bain & Co. Study reaffirms the effectiveness of the administration’s digital economy strategies. The country’s whole-of-government approach fosters economic growth, drives innovation, and ultimately improves the lives of all Filipinos,” said DTI Secretary Roque.

“This collective effort includes the DTI’s digitalization of micro, small, and medium enterprises; the DICT’s acceleration of digital infrastructure; the BSP’s promotion of digital payments; the DOF’s adoption of a digital taxation and customs policy, and the Congress’ passage of relevant laws,” the trade chief further explained.

Particularly, the 2024 e-Conomy SEA report recognized recent reforms, including the Internet Transactions Act and the 12% value-added tax on non-resident digital services, as vital factors in establishing a level playing field between local and international businesses.

The Google report also validates the findings from the UNCTAD Digital Economy Report 2024, which identifies the Philippines as one of the leaders in e-commerce sales growth among 43 economies. That study reveals a clear upward trajectory in the country’s online business transactions between 2016 and 2022.

Still, the DTI acknowledged that further action is needed, while emphasizing ongoing efforts to fully implement the Internet Transactions Act. These priorities comprise the development of an Online Business Database, an Online Dispute Resolution System, an Online Consumer Complaints mechanism across the whole of government, and an E-commerce Trustmark.

Secretary Roque emphasized the crucial role of the private sector in this feat, adding that, “In strong partnership with the private sector, we are actively implementing the e-Commerce Philippines 2028 Roadmap. This roadmap outlines our strategies to stimulate the growth of e-commerce and build trust between online consumers and businesses. We are committed to a more vibrant e-commerce, recognizing the vast potential of our large, young, and tech-savvy population.”

The trade chief likewise views the Philippines’ thriving e-commerce sector as an enabler of further economic growth, job creation, and increased business and government revenues. Moreover, it sees the country’s digital transformation as crucial for boosting our global competitiveness and attracting foreign investment.

“The Philippines is strategically positioned to maximize its demographic advantages and technological capabilities and become a dominant force in the global digital economy.” Secretary Roque concluded. ♦

Date of release: 06 November 2024

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