Building the foundations of our digital future
The Philippines stands at a defining moment in shaping its economic development. Since the pandemic, the country has witnessed the accelerated digital transformation of our economy. Filipino consumers are now able to watch their favorite shows online, use online apps to order groceries and medicines, send digital payments to their loved ones, and work in jobs with employers half a world away.
According to the Philippine Statistics Authority, the Philippine digital economy grew by 7.7 percent in 2024, and now constitutes 8.5 percent of our gross domestic product, while employing 11.3 million Filipinos. But while the potential for a thriving digital economy is significant, the country continues to lag behind its Association of Southeast Asian Nations peers when it comes to important metrics like digital inclusion, data transmission infrastructure, and affordable, reliable internet access.
To bridge these gaps and unlock a truly competitive and inclusive digital future, three legislative measures are foundational: the Internet Transactions Act, the E-Governance Act, and the Konektadong Pinoy Act.
The post-pandemic expansion of online commerce has generated considerable opportunities for many Filipino entrepreneurs. However, many Filipino consumers have navigated a digital marketplace where their rights and legal protections are often unclear. The Internet Transactions Act (Republic Act No. 11967) aims to address these regulatory gaps by establishing clear and fair guidelines for both sellers and buyers. This landmark law aims to build trust within the Philippine digital marketplace by mandating greater transparency from all online businesses. Crucially, it also establishes mechanisms for resolving disputes, empowering consumers and online businesses with the legal tools against abusive and unfair practices.
Embodying the Marcos administration’s digital transformation agenda, the E-Governance Act envisions a government that is more responsive, efficient, and accessible to its citizens through the use of digital technology. The bill promises a more streamlined, transparent, and citizen-centered delivery of government services through the use of integrated systems and secure, user-friendly digital platforms. By reducing red tape, speeding up government transactions, and improving accountability through transparency measures, the goal is to create a more effective, responsive, and trusted government that better serves the needs of every Filipino.
Finally, the Konektadong Pinoy Act recognizes that affordable and reliable internet access is no longer a luxury but a fundamental prerequisite to a modern and inclusive national economy. To bridge the ever-growing digital divide, this bill establishes a comprehensive connectivity framework and a regulatory environment designed to lower entry barriers for new participants in the data transmission market. The bill’s key innovations include simplifying the licensing process for internet network providers, ensuring efficient spectrum management which is a vital step in expanding wireless internet coverage to underserved areas, and mandating infrastructure sharing, which reduces operational costs and improves the delivery of services to regions with little or no connectivity.
Congress has already taken a crucial first step with the passage of the Internet Transactions Act. However, this progress remains incomplete without its two companion measures, the E-Governance Act and the Konektadong Pinoy Act. Together, these three legislative measures represent a complete framework for digital reform and transformation. Both the E-Governance Act and the Konektadong Pinoy Act have passed three readings in both the House and the Senate. As of this writing, the E-Governance bill is awaiting ratification by both chambers, while the Konektadong Pinoy bill is under consideration in the bicameral conference committee. The path to completion is within reach.
Given the limited session days left, the responsibility now rests squarely on Congress to act decisively to finalize and enact the E-Governance Act and the Konektadong Pinoy Act before the conclusion of the 19th Congress. As the future of a truly empowered and connected Philippines hangs in the balance, we cannot afford any delay.
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Dr. Roberto Martin N. Galang is dean of the John Gokongwei School of Management at the Ateneo de Manila University, and chairs the Institute for Social Entrepreneurship in Asia.
