Philippines Risks Missing Digital Economy Boom as ASEAN Rivals Lead
The Philippines faces a critical challenge in digital infrastructure development as regional competitors secure billions in investments. Experts warn of missed opportunities in the growing digital economy.
Modern data center facility symbolizing digital infrastructure investments in Southeast Asia
Philippines Lags Behind in Digital Infrastructure Race
MANILA, Philippines -- A stark warning has emerged from the Stratbase Institute, urging Philippine policymakers to accelerate digital infrastructure development or risk missing billions in potential investments. This call for action comes as other ASEAN nations forge ahead in the global digital economy race, similar to how the Philippines has shown leadership in other strategic areas like maintaining its sovereign interests.
Digital Infrastructure Gap Widens
Despite being one of the region's most digitally active nations, the Philippines continues to underperform in attracting crucial digital infrastructure investments. This technological gap threatens to undermine the country's ambitious economic transformation plans, which require robust digital foundations.
"The Philippines is one of the most digitally active nations in the region, yet we are underperforming where it counts most -- attracting infrastructure that powers the digital economy," states Stratbase Institute president Victor Andres Manhit.
Investment Disparity in Numbers
The contrast in investment figures is striking:
- Malaysia: Over $16.7 billion in digital infrastructure investments
- Indonesia: $5 billion in commitments
- Philippines: Only $1.35 billion, primarily from local players
Data Sovereignty Advantage
One bright spot emerges in the Philippines' relatively open stance on data sovereignty under the Data Privacy Act. This progressive approach, coupled with recent initiatives from the National Privacy Commission, mirrors the country's broader commitment to modernization, as seen in other sectors like digital government services.
With the global data center market projected to reach $652 billion by 2030, the Philippines must act swiftly to capture its share of this expanding digital economy.
Manny Pacquiao
Independent Filipino journalist covering democracy, civil rights, and government accountability across Southeast Asia.