世界发展银行-Philippines-Digital-Economy-Report-2020---A-Better-Normal-Under-COVID-19---Digitalizing-the-Philippine-Economy-Now_134页_19mb

Philippines Digital Economy Report Summary (2020)

Core Content

The Philippines Digital Economy Report 2020 highlights the critical role of digitalization in building economic and social resilience, especially in the context of the COVID-19 pandemic. It outlines the challenges and opportunities in the digital transformation of the Philippines and proposes policy recommendations to enhance digital adoption, reduce the digital divide, and support the economy's transition to a more digital and competitive model.

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Main Objectives

• Assess the current state of the digital economy in the Philippines
• Identify obstacles to digitalization
• Propose policy reforms to accelerate digital transformation and improve the business environment

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Key Findings

Digital Economy Overview

• Digital adoption in the Philippines lags behind many regional peers.
• The Digital Adoption Index (DAI) shows that the Philippines has a lower level of digital adoption than expected for its income level.
• E-commerce contributes only 0.5% of sales, despite retail trade accounting for ~20% of GDP.
• Government adoption of digital technologies is below the ASEAN average and lower than what income would predict.
• Business adoption is higher than the average for lower-middle income or ASEAN countries, but still not fully aligned with economic potential.

Digital Infrastructure

• High-speed broadband penetration is low, with nearly 60% of households without internet access.
• Internet speed in the Philippines is below the global average (16.76 Mbps vs. 32.01 Mbps).
• Affordability is a major concern, with internet prices in the Philippines being higher than in most ASEAN countries.
• Digital infrastructure development is hampered by market failures, regulatory challenges, and slow construction processes for cell sites.

Digital Payments

• Cash and cheques remain dominant modes of payment, despite the growth of digital payments.
• Digital payments are essential for e-commerce and government services, but adoption is limited.
• The National Payments System (NPS) and National Retail Payments System (NRPS) are key frameworks for improving digital payment infrastructure.
• Legal and regulatory reforms are needed to support authenticated e-commerce transactions and reduce payment costs.

Logistics for Small Parcels

• Logistics costs in the Philippines are among the highest in the region.
• E-commerce logistics are constrained by inefficiencies in the domestic logistics system and high trade costs.
• Road transport dominates express deliveries, with limited use of rail and air.
• Domestic courier services are fragmented, and logistics players need to be better integrated and supported.

Indirect Taxation of Cross-Border E-Commerce

• Low-value postal consignments are subject to various indirect taxes, which can hinder e-commerce growth.
• A tax compliance strategy for foreign suppliers is necessary to ensure fairness and transparency.
• Direct taxation of the digital economy is also discussed, with implications for tax policy and economic growth.

Business Environment

• Competition in the business environment is low, which hampers innovation and growth.
• Labor regulations and wage determination are more restrictive than in peer countries.
• Skills development is essential to prepare the workforce for the digital future.
• Access to finance is adequate for the private sector, but venture capital and private equity investments are relatively low compared to regional peers.

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Policy Recommendations

1. Upgrade Digital Infrastructure:

   • Improve internet access, speed, and affordability.
   • Accelerate broadband deployment and submarine cable connectivity.
   • Simplify licensing processes for internet service providers (ISPs).

2. Promote Digital Payments:

   • Expand digital payment solutions to support e-commerce and government services.
   • Reform payment systems to reduce costs and improve efficiency.
   • Introduce authenticated e-commerce transaction mechanisms.

3. Improve Logistics Efficiency:

   • Enhance domestic logistics infrastructure.
   • Reduce logistics costs and improve supply chain integration.
   • Support logistics service providers (LSPs) and domestic courier services.

4. Enhance the Business Environment:

   • Increase competition through regulatory reforms.
   • Simplify bureaucratic procedures for business setup and operation.
   • Support start-ups and small and medium enterprises (SMEs) through inclusive financial systems and innovation incentives.

5. Support Innovation and Skills Development:

   • Invest in skills development to align with the digital economy.
   • Promote innovation inputs and outputs through R&D and training programs.
   • Encourage venture capital and private equity (VCPE) investment.

6. Implement a Whole-of-Government Approach:

   • Coordinate policy and regulatory efforts across government agencies.
   • Use digital technologies to improve public services and governance.
   • Support digital entrepreneurship and e-government initiatives.

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Conclusion

The Philippines Digital Economy Report 2020 underscores the urgency of digital transformation to enhance economic resilience and social inclusion in the post-pandemic era. It emphasizes the need for reforms in digital infrastructure, payment systems, logistics, and business environment to ensure the country can harness the full potential of the digital economy. The report also highlights the importance of skills development and innovation support to prepare the workforce and business sector for the future.