PH lags behind in using digital technology compared to its neighbors: World Bank and NEDA study

MANILA – The Philippines is lagging behind some of its Southeast Asian neighbors when it comes to the adoption of digital technologies, according to a new study by the World Bank and the National Economic Development Authority (NEDA).

The study titled “A Better Normal Under Covid-19: Digitalizing the Philippine Economy Now” showed that the use of technologies such as digital payments, e-commerce, telemedicine and online education has increased in the Philippines due to disruptions caused by the pandemic of COVID-19.

However, the Philippines lags behind Singapore, Malaysia, Thailand and even Brunei in the use of digital technologies by businesses, the government and citizens.

The study also said that the rapid adoption of digital technologies can help the Philippines recover from the COVID-19 crisis and become a middle-class society.

World Bank economist Kevin Chua, lead author of the report, said that increasing digital adoption by government, businesses and citizens is critical to helping the Philippines adapt to the post-COVID-19 world and achieve its vision of becoming in a poverty-free society by 2040.

“In this digital transformation of the whole society, the government can take the initiative by accelerating electronic governance projects, such as the foundational identification system and the digitization of its processes and procedures, which will help promote greater inclusion, improve efficiency and improve security, ”Chua said.

NEDA said the pandemic has shown how important digitization is to the economy.

“As we now live with the new normal, the use of digital technology and digital transformation have become important for Filipinos in dealing with the current crisis, moving toward economic recovery, and getting back on track toward our aspirations. long-term”. said NEDA Undersecretary Rosemarie Edillon during the presentation of the joint study results.

DIGITAL INTERNET DIVIDE AND SLOW

In addition to lagging behind its neighbors in the use of digital technologies, the Philippines also needs to bridge the “digital divide” between those who have and do not have an Internet connection, according to the study.

This digital divide leads to unequal access to life-changing social services and economic opportunities, he said.

“Upgrading digital infrastructure across the country will introduce fundamental changes that can improve social service delivery, increase resilience to shocks, and create more economic opportunities for all Filipinos,” said Ndiame Diop, Bank Country Director. World Cup for the Philippines.

Diop, who is also the World Bank Country Director for Brunei, Malaysia and Thailand, said the Philippines has clear challenges in the lack of internet access, especially in rural areas.

“Internet connectivity, the foundation of the digital economy, is limited in rural areas and, where they are available, services are relatively expensive and of low quality,” Diop said.

The study said that at 16.76 Mbps, the Philippines’ mobile broadband speed is much lower than the global average of 32.01 Mbps.

He also noted that the average download speed in the Philippines was 7 Mbps, while the average for the region was 13.26 Mbps.

Recent government efforts to accelerate the deployment of mobile network infrastructure through a common tower policy are steps in the right direction, according to the report.

Meanwhile, the Department of Information and Communications Technology said the National Broadband Network project can help provide affordable Internet access in rural areas.

However, DICT Undersecretary Emmanuel Caintic said the agency is struggling to convince Congress to allocate funds for the project in the 2021 National Budget.

“If the government allows us and gives us more money for the next phases, then we can propagate even more,” Caintic said.

Meanwhile, Chua said that the approval of the Public Service Law would generate more foreign investment in the telecommunications sector, which could help competition and improve services.

He said the congressional franchise requirement for telecommunications services needs to be reviewed as most other nations only require proper licenses from regulatory bodies, eliminating the need for time-consuming legislative hearings on permits.

– With a report by Warren de Guzman, ABS-CBN News