The Marcos Administration is pushing for digitalization and online payment systems to improve public services, facilitate ease of doing business, and combat corruption. In his second State of the Nation Address (SONA), President Ferdinand R. Marcos Jr. emphasized the importance of digitalization in enhancing frontline services, back-end functions, and data-driven decision-making.
President Marcos stated that digitalization is not just a concept for the future but a necessity of the present. The government’s efforts to streamline services through digitalization have significantly improved efficiency in areas such as government payments, business registration, permit issuance, loan applications, and revenue collections. The integration of digitalization with payment systems is also progressing rapidly.
Digital payments in the Philippines have witnessed tremendous growth. In 2022, digital payments constituted 42% of total retail payments, edging close to the 50% target set by the Bangko Sentral ng Pilipinas (BSP). This surge is primarily attributed to the impact of the COVID-19 pandemic, which compelled people to resort to online transactions for their purchases. The BSP’s 2022 Status of Digital Payments report revealed that digital payments accounted for only 1% of total payments in 2013, but this figure rose to 30.3% in 2021.
President Marcos highlighted the strength and stability of the country’s financial system, describing it as the nerve center of our economy. Banks’ capital and liquidity positions remain robust, contributing to the recovery and revitalization of the economy. The digital economy alone contributed PHP 2 trillion, equivalent to 9.4% of the country’s GDP, in 2022. President Marcos commended the growth of e-commerce, which persevered despite the challenges posed by the pandemic.
To enhance convenience for citizens, the government is developing the eGov PH mobile app to consolidate various key government services. The Department of Information and Communications Technology (DICT) has been directed to integrate these services into the app, facilitating access to the National Government Portal and the Philippine Business Databank. The National ID System, which has achieved an 87% registration rate, will serve as the core of a digitally transformed network of government services.
The Philippines has also made significant improvements in internet speed. The fixed broadband speed now ranks 47th among 180 countries, 11 places higher than in 2022. Meanwhile, the mobile internet speed is ranked 83rd out of 142 countries, eight places higher than the previous year. Initiatives such as Starlink, which aims to provide high-speed satellite broadband connectivity in remote areas, the National Fiber Backbone, and the Broadband ng Masa projects will further enhance connectivity across the country.
In conclusion, the Marcos Administration’s commitment to digitalization aims to enhance public services, facilitate ease of doing business, and combat corruption. The surge in digital payments reflects the changing landscape of the country’s financial transactions, driven by the need for online alternatives during the pandemic. With improved internet speed and the development of the eGov PH mobile app, the government is striving to leverage technology to deliver efficient and convenient services to its citizens.
