Philippines Leads Southeast Asia with Fastest Internet Economy Growth in 2024
The Philippines is lighting up the digital world. A recent report by Google, Temasek, and Bain & Company has revealed that the country is now the fastest-growing internet economy in Southeast Asia. In 2024 alone, the digital economy surged by 20%, reaching a staggering USD 31 billion.
“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.
The 2024 e-Conomy SEA report specifically acknowledged that recent legislation, including as the Internet Transactions Act and the 12% value-added tax on digital services provided by non-residents, were essential to creating a level playing field for domestic and foreign companies.
The Google analysis also supports the UNCTAD Digital Economy analysis 2024's results, which show that among 43 economies, the Philippines leads in the increase of e-commerce sales. According to that survey, the number of internet commercial transactions in the nation increased significantly between 2016 and 2022.
The creation of an online business database, online dispute resolution system, online consumer complaints mechanism, and e-commerce trademark are among the additional steps that the DTI highlights are necessary to effectively execute the Internet Transactions Act. The growth of e-commerce and the development of trust between businesses and online customers are greatly aided by the private sector. The booming e-commerce industry is seen by the trade chief as a catalyst for economic expansion.
“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.
As the Philippines continues its digital ascent, it's crucial to maintain this momentum. By fostering innovation, investing in digital infrastructure, and empowering the digital workforce, the country can unlock its full potential and become a global leader in the digital economy.