The Philippines’ internet economy, the fastest-growing in Southeast Asia, is poised to record between $80 billion and $150 billion in gross merchandise value (GMV) by 2030, based on the recent report by Google, Temasek, and Bain & Company.
The 9th edition of the Google e-Conomy SEA Report showed the Philippines and Malaysia are the third largest digital economies among the five countries covered by the report with GMV of $30 billion this year.
The overall digital economy in the Philippines grew 20 percent from $26 billion last year.
The Philippines’ digital economy grew double-digit across all sectors but was driven by electronic commerce which grew 23 percent to $21 billion from $17billion in 2023. This is poised to reach $60 billion in GMV by 2030.
The Philippines also posted the fastest post-pandemic travel spend growth in Southeast Asia.
Online travel and transportation and food both grew 13 percent while online media expanded by 12 percent.
The report said the Philippines saw an increase in digital payment volumes which compel service providers to maintain competitive fees while enhancing security and service reliability.
“As the digital payments landscape matures and adoption becomes more widespread, e-wallet providers are increasing merchant discount rates. Super-apps are expected to
maintain their prominent role in digital payments, with their comprehensive offering,” the report added.
It also noted the expansion of digital infrastructure to reach last-mile communities such as the recently approved $288-million Philippine Digital Infrastructure Project will bolster connectivity.
The 2024 e-Conomy SEA report said stabilizing inflation and declining unemployment rates will further stimulate private consumption which will in turn boost demand for digital services.
The report also recognized recent reforms, including the Internet Transactions Act and the 12 percent value-added tax on non-resident digital services, as vital factors in establishing a level playing field between local and international businesses.
The Google report also validates the findings from the UNCTAD Digital Economy Report 2024, which identified the Philippines as one of the leaders in e-commerce sales growth among 43 economies.
In a statement, Secretary Cristina Roque said the Department of Trade and Industry acknowledges that further action is needed, while emphasizing ongoing efforts to fully implement the Internet Transactions Act.
Roque said these priorities comprise the development of an Online Business Database, an Online Dispute Resolution System, an Online Consumer Complaints mechanism across the whole of government, and an E-commerce Trustmark.
Roque emphasized the crucial role of the private sector in effectively implementing the e-Commerce Philippines 2028 Roadmap which outlines the strategies to stimulate the growth of the industry and build trust between online consumers and businesses.
