After years of steady but cautious progress, policymakers say the Philippines now has a window to catch up with—and potentially outpace—its ASEAN peers in the digital economy.
Although the digital economy’s share of gross domestic product recently slipped from around 10 percent to 8.4 percent, the Department of Information and Communications Technology (DICT) sees this not as a retreat but as evidence of untapped potential.
The government is targeting a rise in the sector’s contribution to as much as 12 percent of GDP by 2026, a move estimated to add about P354 billion to economic output, the DICT said in a recent press release.
ICT as growth engine
Under a directive from the President, the DICT has been tasked to help drive economic recovery by making the ICT sector a primary engine of growth starting in 2026.
The strategy rests on a mix of infrastructure expansion, regulatory reform, and capital market modernization designed to unlock investment and create higher-value jobs.
A key pillar of the push is the full implementation of the Konektadong Pinoy Act. The law removes long-standing bottlenecks in the rollout of telecom and digital infrastructure, enabling faster deployment, more competition, and improved service quality.
Over time, the government expects the reform to raise GDP per capita, strengthen household incomes, and expand digital access, particularly in underserved areas.
Attracting global capital
Complementing infrastructure reforms is a clearer data localization and data governance framework aimed at providing certainty to hyperscalers and data center investors, the DICT said.
With clearer rules in place, the Philippines is positioning itself as a secure and reliable regional hub for digital services, opening the door to long-term foreign direct investments and high-paying technology jobs.
The government has also harmonized the proposed 2026 ICT budget to ensure that digital investments across agencies are aligned and mutually reinforcing.
This coordinated approach is expected to generate strong multiplier effects, adding tens of billions of pesos to GDP while signaling fiscal discipline and policy coherence to investors, it added.
Supporting Filipino tech firms
DICT said it is working closely with the Philippine Stock Exchange and the Securities and Exchange Commission to modernize capital markets and support local technology companies.
By creating a clearer and more predictable pathway for tech initial public offerings, policymakers aim to encourage Filipino tech champions to list and grow domestically rather than seeking capital overseas.
Parallel discussions with economic managers and industry stakeholders include proposals to modernize Agri-Agra compliance and carefully ease reserve requirements.
If implemented prudently, these reforms could unlock hundreds of billions of pesos in liquidity and channel more capital into high-growth, tech-enabled sectors—without raising taxes, the department said.
Gains for consumers and workers
For consumers, the expected benefits include lower internet costs, faster and more reliable connectivity, and better digital public services. For workers, the shift promises more tech-enabled jobs, higher wages, and expanded opportunities for financial inclusion.
Taken together, these measures reflect a pro-growth, future-ready strategy that places digital transformation at the center of national development.
By 2026, officials say, the ICT sector will not merely support economic recovery—it will help lead it. —Ed: Corrie S. Narisma
