Philippines Aims to Reverse Decline in Digital Competitiveness Through Major Infrastructure Reforms

The Department of Information and Communications Technology (DICT) has acknowledged a decline in the Philippines' digital competitiveness, emphasizing ongoing government efforts to revitalize the nation's technology infrastructure.

According to DICT Secretary, the country trails behind Southeast Asian neighbors such as Malaysia, Singapore, and Vietnam, which capitalized on the pandemic to accelerate their digital transformation. While the Philippines' digital economy reached a peak of 8.4% of GDP in 2021 during the COVID-19 surge, it has since stalled. In contrast, Singapore’s digital economy grew to 25%, Malaysia's surpassed 20%, and Vietnam reached 18%.

"The Philippines is in a state of digital decline," the Secretary stated during a cybersecurity forum organized by Stratbase Institute, adding, "This is unacceptable. This is not merely about percentages. It is about people."

He called for collaborative efforts to reverse this stagnation, setting an ambitious goal of "hyper-exponential growth." He urged skeptics to "watch us work," promising that by the end of 2025, the downward trend will be reversed and the digital economy will exceed the previous 8.4% benchmark.

Part of the strategy involves removing outdated and vulnerable digital infrastructure to strengthen cybersecurity defenses. The government is also committed to "massive upgrading of all our infrastructure" while adopting international best practices in cybersecurity.

The forum brought together government officials, diplomats, and cybersecurity professionals from the Indo-Pacific region to address escalating digital threats and the necessity for unified responses.

Victor Andres "Dindo" Manhit, President of Stratbase Institute, highlighted cybersecurity as fundamental to national strength. He remarked, "Threats increasingly emerge from the digital domain: unseen, borderless, and asymmetrical," noting how emerging challenges like deepfakes and foreign information manipulation complicate traditional security paradigms. "Cybersecurity is not only about technology; it is about trust," he said. "Cybersecurity is national security. Protecting our digital domain is a shared responsibility among the State, the private sector, and the international community."

Japanese Ambassador Endo Kazuya echoed concerns about the surge in global cyberattacks and stressed the importance of international cooperation. Citing data, he noted cyberattack-related communications jumped from 63 billion packets in 2015 to 686 billion in 2024. "No single nation can address threats in cyberspace alone. International cooperation is indispensable," Endo said and pledged Japan’s support for the Philippines and ASEAN through capacity-building initiatives.

Other diplomats, including representatives from Australia, Canada, the European Union, and the United States, emphasized the need for enhanced intelligence sharing, improved incident response coordination, and stronger public-private partnerships to fortify the region’s cybersecurity stance.