According to a recent study commissioned by Google Philippines, the country’s digital transformation might generate up to PHP 5 trillion in yearly economic value by 2030. Technologies that help businesses manage the economic repercussions of the COVID-19 and similar catastrophes in the future could account for PHP 3.5 trillion of this value.
The report, written by AlphaBeta economists, examines eight transformational technologies and the significant economic potential they provide to Philippine industry. Artificial Intelligence (AI) can be used to drive data-based public health treatments, mobile internet can help digitize retail distribution channels, and the Internet of Things (IoT) can be used to track supply chains.
“For the Philippines to unleash new opportunities and acquire resilience in the post-pandemic future, digital adoption is critical.” Beyond its immediate economic effects, the COVID-19 pandemic is expected to have long-term effects on three aspects of the Philippine economy, according to Bernadette Nacario, Google Philippines Country Director: “The emergence of a hybrid workplace that supports digital freelancing; accelerating the shift toward digital payments; and severe disruptions to the business operations of small enterprises.”
The research also recommends that the Philippines focus on three primary areas of action: improving digital skills training and education, speeding digital adoption and innovation, and promoting digital trade prospects.
While the Philippines has a lot of potential, Google says that a lot of good work has already been done in this area in the last year. Furthermore, Nacario stated that higher earnings and millions of online connections generate approximately PHP 578 billion in annual benefits for customers and society as a whole.
“Digital transformation is critical to economic recovery, and the Department of Trade and Industry applauds Google for its contributions to the country,” says the statement. Even before the epidemic, Google and the DTI were digitizing small businesses through the MSME Caravan program, and we’ve been able to train over 46,000 MSME business owners and their staff in the last two years alone. “We will continue to collaborate closely with public and private sector partners to fully realize the benefits of our growing digital economy and empower Filipinos to flourish and grow online,” said Ramon Lopez, Secretary of the Department of Trade and Industry.