A new report commissioned by Google Philippines reveals that digital transformation could create up to PHP 5 trillion in annual economic value by 2030. PHP 3.5 trillion of this could come from technologies that help businesses mitigate the economic impacts of the COVID-19 and similar events in the future.
The report was prepared by economists at AlphaBeta and explored eight transformative technologies and the economic potential they bring to the Philippine industries. This includes AI which can be used to drive data-based public health interventions, mobile internet to help digitize retail distribution channels, and the use of IoT (Internet of Things) for supply chain tracking.
“Digital adoption is crucial for the Philippines to unlock new opportunities and gain resilience in the post-pandemic future. Beyond its immediate economic impacts, the COVID-19 pandemic is likely to have long-term implications in three aspects of the Philippine economy, namely: the emergence of a hybrid workplace that supports digital freelancing; accelerating the shift towards digital payments, and severe disruptions to the business operations of small enterprises. By providing businesses access to global markets, equipping businesses with digital capabilities to conduct electronic transactions, and facilitating remote work, technology can help businesses manage the long-term economic implications of the COVID-19 pandemic and while staying resilient against future similar events.”
Google Philippines Country Director Bernadette Nacario
The report identified three main pillars of action the Philippines could take. Among these include enhancing digital skills training and education, accelerating digital adoption, and promoting digital trade opportunities.
While there’s a huge potential for the Philippines, a lot of positive work has already been done in this area within the last year.
“Digital transformation plays an important role in economic recovery and the Department of Trade and Industry commends Google for its contributions to the country. Even before the pandemic, Google and the DTI have been digitizing small businesses through the MSME Caravan campaign, and for the past two years alone, we are able to train more than 46,000 MSME business owners and their employees. We will continue to work closely with our partners from the public and private sectors to fully unlock the opportunities of our rising digital economy and empower Filipinos to succeed and grow online.”
Secretary of the Department of Trade and Industry Ramon Lopez
One of the businesses that benefited from the digital training workshop is Germano’s Chilli. It started in 2008 to recreate the experience of eating chili garlic from restaurants to people’s homes. At that time, the concept was new and it struggled with brand awareness but it now continues to thrive today.
“I remember when no stores would carry our products and I’d go home from bazaars with only three to five bottles sold. I didn’t let this experience demotivate me and I grew the business little by little until I attended a seminar hosted by Google Philippines in 2018.”
Gerome Panlilio, owner of Germano’s Chilli
For a full copy of the report, click here.