Amid developments in the global digital economy, a consumer group is urging the Philippine government to enact a clear and forward-looking data governance policy that will allow the country to thrive in the booming regional data economy.
In response to rapidly growing demand for data storage and cloud infrastructure across Southeast Asia, CitizenWatch Philippines emphasized that the country must adopt a robust and globally compatible policy on data sovereignty and localization. Without this, the Philippines risks missing out on billions in potential investments in data centers and digital infrastructure.
“Data is now a strategic asset—on par with energy, transportation, and telecommunications infrastructure. It has also become indispensable in the daily transactions of Filipino consumers,” said CitizenWatch Philippines Lead Convenor Orlando Oxales.
“The Philippines cannot afford to fall behind while our neighbors implement enabling policies that attract investment and protect digital sovereignty,” he added.
Countries such as Indonesia, Malaysia, Vietnam, and Thailand have already passed data localization laws that require certain types of sensitive data to be stored within national borders. These measures have fueled their data economies, making them hotspots for digital infrastructure investments.
Meanwhile, the Philippines maintains a permissive stance, relying on the limited mandate of the 2012 Data Privacy Act, which does not extend to empowering investments in localized digital infrastructure.
The consumer group believes this policy gap is also a key opportunity.
“A well-calibrated localization law can boost digital resilience, attract long-term investments, support public and private initiatives, and promote innovation,” Oxales explained.
“Still, it must be done with nuance to recognize the needs of financial technology (fintech), trade, Business Process Outsourcing (BPO), and other sectors that depend on cross-border data flows,” he added.
The group pointed out that to build intelligent, scalable infrastructure, the Philippines must adopt a hybrid model that balances global integration with national control—classifying data by sensitivity, partnering with leading hyperscalers, and setting clear local standards to ensure both resilience and sovereignty.
“Localizing data is not about isolation, but about control, clarity, and competitiveness,” Oxales shared.
They also pointed out that an empowering data governance policy can unlock job creation in cloud management, cybersecurity, and analytics, enabling local businesses to grow while leveraging the most robust and secure foreign technologies.
“We have what we need to compete: talent, infrastructure, and intent. What we lack is a digital-friendly policy foundation to capture the data economy boom,” Oxales emphasized.
“Without swift action to modernize our policies, we risk falling behind just as the rest of the world accelerates,” he added.
“We hope that this will be a top legislative priority of the President that the new Congress, in close consultation with industry stakeholders and experts, can act on before the end of the year,” Oxales said.
