“The Philippines, our digital economy—already projected at $35 billion by 2025—could grow dramatically if we align with this framework”
From sari-sari stores to fintech apps, the digital shift is transforming how Filipinos live and work—but are we ready for ASEAN’s bigger leap?
I recently attended the ASEAN Digital Economy Framework Agreement Policy Dialogue and Workshop hosted by the Center for International Private Enterprise and Layertech Labs.
The forum offered a glimpse into ASEAN’s ambition to build a seamless digital economy and a reminder of the work we must do to ensure every Filipino thrives in the global digital ecosystem.
DEFA, ASEAN’s first region-wide digital economy agreement, aims to harmonize trade rules, enable cross-border data flows, and set shared standards on cybersecurity, artificial intelligence, and emerging technologies.
The vision is to create a unified digital marketplace of 680 million people where businesses expand without barriers, investors rely on predictable rules, and consumers enjoy safer, more efficient digital services.
For the Philippines, our digital economy—already projected at $35 billion by 2025—could grow dramatically if we align with this framework. But first we must address the gaps that erode consumer trust and digital inclusion.
A recurring theme during the workshop was the tension between fast-moving technology and slower regulation. As lawyer Carina Laforteza, President of the Tax Management Association of the Philippines, put it: “Technology advances so much, but the regulations…most often the law, plays catch-up.”
For Filipino consumers, this lag brings frustration with inconsistent services or exposure to risks when protections are unclear. The law must not just catch up—it must anticipate, safeguard, and empower.
This gap is evident in e-commerce. Electronic receipts are still not the default, forcing reliance on outdated paper systems.
As Janette Toral, Founding President of the Philippine Internet Commerce Society, said: “If we really want to push for e-commerce adoption, electronic receipts should be a default already.” Streamlining such processes is essential for convenience and trust.
Cybersecurity was also front and center.
Consumers are bombarded with phishing messages, ransomware, and data breaches that can wipe out savings or compromise identities. Director Malou Santelices of the National Security Council warned that foreign actors can exert “foreign malign influence…leveraging data stored in remote services under foreign jurisdiction.”
Lito Averia, President of the Philippine Computer Emergency Response Team, noted the rise of online sexual abuse and exploitation of children—systemic risks needing urgent, coordinated action.
The human factor in cybersecurity was underscored by Sam Jacoba, President of the National Association of Data Privacy Officers, who said: “The focus should be on people…they’re the weakest link in the security chain.”
No matter how advanced systems become, vigilance and digital hygiene remain our first defense. Consumers must have both tools and awareness to use technology safely.
Fintech and AI are reshaping how Filipinos handle money and information.
Platforms like GCash, Maya, and PayMongo are lifelines of financial inclusion, enabling sari-sari store owners, freelancers, and everyday consumers to transact seamlessly.
Assistant Secretary Luis Planas of the Department of Information and Communications Technology noted these innovations create “seamless interactions between businesses and consumers.”
He also emphasized that DEFA’s focus on online safety, data protection, and ethical AI governance are “not just technical issues for us, they are matters of trust and governance.”
Striking the balance between innovation and protection is today’s central policy challenge. Director Santelices explained: “We restrict to some extent, but we also encourage free flows of information…selective in terms of restriction.”
Overregulation stifles innovation, while weak safeguards expose consumers to abuse. We must choose the middle path: enabling growth while defending rights.
At the heart of these discussions is trust. Mr. Jacoba reminded us that “it starts with us…cyber hygiene starts at home.”
Trust is not built by regulation alone or corporate compliance, but by informed, empowered consumers making smart choices.
Yet for consumers to do this, they need transparency, accountability, and accessible recourse when things go wrong.
The message from the DEFA dialogue is clear. If the Philippines is to maximize the digital economy’s opportunities, it must prioritize consumer empowerment, financial inclusion, and responsible innovation.
Cybersecurity, AI governance, and data protection are not afterthoughts—they are foundations.
As Lead Convenor of CitizenWatch Philippines, I believe we must emphasize these principles.
Digital literacy, awareness campaigns, ethical standards, and stronger protections are not optional—they are the scaffolding of a trusted, inclusive digital economy.
DEFA offers us a chance to leap forward as a region. But success will be measured not by trade figures or investments alone, but by whether every Filipino consumer feels safe and empowered to take part in this digital future.
