Consumer group CitizenWatch urged the national government to enact a clear and forward-looking data governance policy that will allow the country to thrive in the booming regional data economy.

Orlando Oxales, CitizenWatch Philippines lead convenor, said a clear and sound policy will be the country’s best response to rapidly growing demand for data storage and cloud infrastructure across Southeast Asia.

“Data is now a strategic asset—on par with energy, transportation, and telecommunications infrastructure. It has also become a indispensable in the daily transactions of Filipino consumers,” said Oxales.

“the Philippines must adopt a robust and globally compatible policy on data sovereignty and localization. Without this, the Philippines risks missing out on billions in potential investments in data centers and digital infrastructure,” he added.

Countries such as Indonesia, Malaysia, Vietnam, and Thailand have already passed data localization laws that require certain types of sensitive data to be stored within national borders.

These measures, according to Oxales, have fueled their data economies, making them hotspots for digital infrastructure investments.

Meanwhile, the Philippines maintains a permissive stance, relying on the limited mandate of the 2012 Data Privacy Act, which does not extend to empowering investments in localized digital infrastructure.

“The Philippines cannot afford to fall behind while our neighbors implement enabling policies that attract investment and protect digital sovereignty,” said Oxales.

The consumer group believes this policy gap is also a key opportunity.

“A well-calibrated localization law can boost digital resilience, attract long-term investments, support public and private initiatives, and promote innovation,” Oxales explained.

“Still, it must be done with nuance to recognize the needs of financial technology (fintech), trade, Business Process Outsourcing (BPO), and other sectors that depend on cross-border data flows,” he added.

The group pointed out that to build intelligent, scalable infrastructure, the Philippines must adopt a hybrid model that balances global integration with national control—classifying data by sensitivity, partnering with leading hyperscalers, and setting clear local standards to ensure both resilience and sovereignty.

“Localizing data is not about isolation, but about control, clarity, and competitiveness,” Oxales shared.

They also pointed out that an empowering data governance policy can unlock job creation in cloud management, cybersecurity, and analytics, enabling local businesses to grow and reducing while leveraging on the most robust and secure foreign technologies.

“We have what we need to compete: talent, infrastructure, and intent. What we lack is a digital friendly policy foundation to capture the data economy boom. Oxales emphasized.

“Without swift action to modernize our policies, we risk falling behind just as the rest of the world accelerates,” he added.

“We hope that this will be a top legislative priority of the President that the new Congress in close consultation industry stakeholders and experts can act on before the end of the year,” Oxales said.