e-Commerce expected to drive economic recovery


By CHINO S. LEYCO

Efficient and affordable e-commerce can help sustain economic activities and drive growth as the country continues to manage COVID-19 risks and transitions to the new and better normal, the National Economic and Development Authority (NEDA) said.

Karl Kendrick T. ChuA Socioeconomic Planning Secretary Karl Kendrick T. Chua

In a statement, Socioeconomic Planning Secretary Karl Kendrick T. Chua said that online shopping and other Internet-based marketing platforms will play bigger role in the new normal as businesses and consumers increase the use of electronic transactions.

For this reason, Chua said that cashless payment system and other financial technology platforms would see an immense rise under the new normal.

The NEDA-led Inter-Agency Task Force Technical Working Group for Anticipatory and Forward Planning (IATF-TWG for AFP) launched three separate surveys in April, targeting the consumers, agriculture, industry and services sectors and the general public.

The results of the consumer survey, which generated data from 389,859 respondents, show that more than 50 percent in the non-government sectors experienced a decline in income, largely due to the loss of their source of livelihood.

Moreover, many had difficulty in accessing goods and services because of the closure of business establishments, imposition of early curfews, and lack of public transportation.

“Businesses need to innovate and make full use of technology to resume operations and cater to consumer needs and preferences while still managing risks of COVID-19 infection,” Chua said.

Among the recommended legislative actions contained in the We Recover as One report is to revisit the Electronic Commerce Act of 2000 to make it more comprehensive in detailing transactions covered by the law, specifying the rights of consumers, and strengthening the penalties imposed on service providers.

“Businesses need to make online shopping easy, affordable, and secure for consumers so that they need not go out to buy what they need and want,” Chua said.

He added that investments in ICT infrastructure will also have to be boosted to meet the surge of online transactions and the consumers’ expectations for reliable digital connectivity.

Financial institutions are also encouraged to implement better cybersecurity measures and regulations for both consumers and merchants/establishments.