PH digital transformation could create PHP 5 trillion in annual economic value by 2030, reports Google
The digital transformation in the country could create up to PHP 5 trillion in annual economic value by 2030, according to a recent study commissioned by Google Philippines. PHP 3.5 trillion of this value could come from technologies that help businesses mitigate the economic impacts of the COVID-19 and similar events in the future.
The report was prepared by economists at AlphaBeta, exploring eight transformative technologies and the robust economic potential they bring to Philippine industries. This includes Artificial Intelligence (AI), which can drive data-based public health interventions, mobile internet to help digitize retail distribution channels, and the Internet of Things (IoT) for use in supply chain tracking.
“Digital adoption is crucial for the Philippines to unlock new opportunities and gain resilience in the post-pandemic future. Beyond its immediate economic impacts, the COVID-19 pandemic is likely to have long-term implications in three aspects of the Philippine economy, namely: the emergence of a hybrid workplace that supports digital freelancing; accelerating the shift towards digital payments, and severe disruptions to the business operations of small enterprises,” said Bernadette Nacario, Google Philippines Country Director.
The report has also identified three main pillars of action the Philippines could take: enhancing digital skills training and education, accelerating digital adoption and innovation, and promoting digital trade opportunities.
Google also noted that while there is huge potential for the Philippines, a lot of positive work has already been done in this area within the last year. Besides, Nacario mentioned that consumers and the wider society derive over PHP 578 billion in annual benefits brought about through increased revenues and millions of connections online.
“Digital transformation plays an important role in economic recovery and the Department of Trade and Industry commends Google for its contributions to the country. Even before the pandemic, Google and the DTI have been digitizing small businesses through the MSME Caravan campaign and for the past two years alone, we are able to train more than 46,000 MSME business owners and their employees. We will continue to work closely with our partners from the public and private sectors to fully unlock the opportunities of our rising digital economy and empower Filipinos to succeed and grow online,” said Ramon Lopez, Secretary of the Department of Trade and Industry.