The Philippines leads the Southeast Asian (SEA) region as the fastest-growing internet economy in Southeast Asia due to its growing domestic consumption, revitalized services sector, and higher remittances from overseas Filipino workers (OFWs).

The Department of Trade and Industry (DTI) cited Google, Temasek, and Bain & Co. that the country has effectively transformed its digital economy which in turn helped it advance as one of the top players among other SEA countries.

The DTI found that consumption, services, and remittances have positioned the Philippines well in the Internet economy, while also highlighting stabilized inflation and lower unemployment rates as key factors contributing to increased demand for digital services.

Trade Secretary Ma. Cristina A. Roque lauded the country’s achievement, noting that this was due to the Marcos administration’s strategic reforms in terms of economic digitalization.

“The results of the 2024 Google, Temasek, and Bain & Co. study reaffirms the effectiveness of the administration’s digital economy strategies. The country’s whole-of-government approach fosters economic growth, drives innovation, and ultimately improves the lives of all Filipinos,” she said.

Roque added that, “This collective effort includes the DTI’s digitalization of micro, small, and medium enterprises; the Department of Information and Technology acceleration of digital infrastructure; the BSP’s promotion of digital payments; the Department of Finance's adoption of a digital taxation and customs policy, and the Congress' passage of relevant laws.”

While this marks a success for the country, the DTI hopes to fully implement the Internet Transactions Act, which includes the development of an online business database, an online dispute resolution system, an online consumer complaints mechanism across various governments, and an E-commerce Trustmark.

“In strong partnership with the private sector, we are actively implementing the e-Commerce Philippines 2028 Roadmap. This roadmap outlines our strategies to stimulate the growth of e-commerce and build trust between online consumers and businesses. We are committed to more vibrant e-commerce, recognizing the vast potential of our large, young, and tech-savvy population,” Roque elaborated.

As the Philippines continues to grow its e-commerce sector, the DTI sees this benefitting economic growth, job creation, and higher business and government revenues, as well as attracting global and foreign investments.

"The Philippines is strategically positioned to maximize its demographic advantages and technological capabilities and become a dominant force in the global digital economy,” she added.

This year’s e-Conomy SEA report also observed reforms such as the Internet Transactions Act and the 12 percent value-added tax on non-resident digital services which helped level the playing field between local and international businesses and entrepreneurship.

Moreover, Google identified that the Philippines is one of the leaders in e-commerce sales growth among the 43 economies, as per findings from the United Nations Conference on Trade and Development (UNCTAD) Digital Economy Report.

“That study reveals a clear upward trajectory in the country's online business transactions between 2016 and 2022,” the DTI stated.