The global coronavirus disease 2019 (Covid-19) pandemic has fast-tracked the shift to digital economy, and the Philippines should take advantage of the situation.
Asian Development Bank’s (ADB) Digital Technology for Development chief Thomas Abell highlighted this during a recent webinar organized by the Philippine Institute for Development Studies (PIDS) and ADB.
According to him, the world might see an economic boom that will fuel digital economy as countries transition to the so-called “new normal” once “the pandemic starts to recede.”
He explained that part of this so-called “new normal” is seeing major platform players “fight over market share” and “move more of their market focus.”
“I think there is going to be more flexibility in terms of where digital jobs can be located. The Philippines already has an advantage with 1.2 million BPO (business process outsourcing) workers and a strong startup ecosystem where there is already a good digital talent pool,” Abell pointed out.
Flexibility
While it is an unwelcome global situation, he said that this presents an opportunity for the country, adding that, “now is the time to position the Philippines to be an attractive place for startups to relocate or for those who want to have flexibility.”
He said that at present, major businesses in the country have already shifted to digital platforms to reach their target markets.
“One example is the Philippine Seven Corporation that operates 7-Eleven convenience stores in the country,” he explained.
PSC president and CEO Jose Victor Paterno, also a discussant in the webinar, expressed the same sentiment as Abell, saying that Covid-19 opened opportunities for its stores to go online as “people are already doing it.”
“The company was able to come up with several innovations, including online grocery and payment applications, cash-recycling automated teller machines in its select branches, and an upcoming initiative connecting farmers to buyers via online shopping,” he shared.
Growing digital economy
Following this development, Abell stressed that as the digital economy continues to grow in the country, there is a need to address the existing digital divide by building infrastructure and providing better internet access “so that the digital economy can benefit more people at the bottom of the pyramid and not cause more inequality.”
