NEDA lists growth drivers | Manila Times

The National Economic and Development Authority (NEDA) said digitalization and other traditional sectors will continue to create jobs and boost the Philippine economy.

“It’s clear… the digital economy… can be a driver of growth in the future,” NEDA Deputy Minister Rosemary Edillon replied when asked what industries the agency is looking at when it comes to job creation during online business. forum hosted by The Manila Times.

Infrastructure, data centers, artificial intelligence and digital skills are just some of the things she said the Marcos administration wanted to make the digital sector more dynamic.

“We need to have a workforce pool so that we can have this vibrant digital economy,” Edillon said.

She also said the government will promote the digitization of its procedures.

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In his first State of the Union Address, President Ferdinand “Bongbong” Marcos Jr. said the country’s tax system will be adjusted to keep up with the rapid development of the digital economy. This will include the introduction of a value-added tax on digital service providers, resulting in an initial revenue impact of around 11.7 billion pesos in 2023.

He said that the Customs Bureau will support expedited procedures using information and communication technologies. In addition, Marcos instructed the Department of Information and Communication Technology to find and apply innovations that will strengthen the government.

“The national identity card will play an important role in this digital transformation. In order for citizens to interact seamlessly with the government, their identity must be easily verified,” he added.

According to a report by economic consulting firm AlphaBeta, the Philippines’ internet economy is valued at $7.5 billion and is set to grow by 30% a year to $28 billion by 2025.

However, it states that a number of obstacles prevent the country from fully implementing digital transformation, including low digital adoption among micro, small and medium-sized enterprises, lack of knowledge of existing policies and programs to promote digital adoption, and gaps. in access to digital tools and the lack of workers with the necessary digital skills.

There is still potential for more digital transformation initiatives, and the Covid-19 pandemic has only highlighted their importance. The firm added that the Philippines’ digital economy has plenty of room for growth thanks to a young and tech-savvy population.

It states that improving education and training in digital skills, accelerating digital adoption and innovation, and advancing the prospects of digital commerce are three key areas of action for the Philippines.

“When fully exploited, digital transformation could open up 5 trillion pesos ($101.3 billion) in annual economic value to the Philippines by 2030,” AlphaBeta calculated.

Regular sources

In addition to the digital economy, Edillon said there are still traditional sources of jobs in the Philippines, such as the tourism industry, which accounted for about 12 percent of all employment in the country before the pandemic.

“We hope we can revive that too,” she added.

Edillon also mentioned the need to harness the power of the creative industries to promote the Philippine brand of merchandise and travel destinations, among other things.

She also said that NEDA secretary Arsenio Balisacan is also pushing for a revitalization of the manufacturing sector, which serves as an intermediate sector for other industries.

“So it comes from agriculture and then also, you know, sends it to the service sector. So we want to see it reborn, but in terms of more innovation, in terms of processes and in terms of products,” said Edillon.

Marcos said the government will prioritize fundamental improvements such as road repairs to make it easier to access tourist destinations in order to strengthen the tourism industry. To help reduce backlog at Manila Airport, it will also refurbish airports and build more international airports.

He also said that the government would need an institutionalized creative sector to promote stakeholder interests.