PH’s internet economy post fastest growth among SEA — report

Digital e-conomy

The Philippines’ internet economy grew the highest in six southeast Asian economies, growing by a fifth in 2024, as it led by a huge margin in the e-commerce sector.

The latest e-Conomy SEA report by Google, Temasek, and Bain & Company reported that the Philippines’ overall digital economy, measured in terms of gross merchandise value, managed to grow to $31 billion from $26 billion in 2023.

“The Philippines is poised for continued strong growth, underpinned by robust domestic consumption, a revitalized services sector, and increased remittance form overseas workers,” a portion of the report read.

“Stabilizing inflation and declining unemployment rates will further stimulate private consumption, driving increased demand for digital services,” it added.

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In a statement on Wednesday, the Department of Trade and Industry (DTI) welcomed the findings in the report, attributing this “success” to the President Ferdinand Marcos Jr. administration’s strategic reforms aimed at expanding the country’s digital economy.

“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,” Trade Secretary Cristina Roque said.

The report also showed that the sales made by the Philippines’ e-commerce sector grew by 23 percent to $21 billion from $17 billion during the month.

This is the highest growth rate during the year compared to Indonesia’s 11 percent growth, Malaysia’s 17 percent, Singapore’s 12 percent, Thailand’s 19 percent, and Vietnam’s 18 percent.

Other core sectors also posted double digit growth rates, with online travel recording a 13 percent growth, transport and food with 13 percent, and online media with 12 percent.

Meanwhile, digital payments grew by 22 percent, digital lending by 19 percent, digital wealth by 47 percent, and digital insurance by 28 percent.

Despite these positive findings, the DTI said that further action is needed, emphasizing ongoing efforts to fully implement the Internet Transactions Act.

It said the measures intended to help the country’s internet economy develop further include the development of an online business database, an online dispute resolution system, an online consumer complaints mechanism for government agencies, and an e-commerce trust mark.