Digitalization of public services and establishment of e-government systems
Progress in smart city development and 5G infrastructure expansion
The Philippine government has set digital transformation as a key national task and is pursuing various e-government policies. Major government agencies such as the Department of Information and Communications Technology (DICT), the Commission on Higher Education (CHED), the Department of Health (DOH), and the Philippine Statistics Authority (PSA) are leading the way in implementing various projects such as e-government, 5G infrastructure construction, smart city development, fintech and e-commerce expansion, and cybersecurity enhancement. These digital transformation projects are having a significant impact on the Philippine economy and society as a whole, and opportunities for Korean companies to play a key role in this process are increasing.
Expansion of digital public services
The DICT is accelerating the digitization of public services through the e-Gov Super App and the Philippine Integrated Identification System (PhilSys). The two projects mentioned above are dramatically improving the accessibility of public services and streamlining and increasing efficiency in the interaction between the government and the people.
<Philippine Integrated Identity Card System Philsys>
[Source: Philsys official website]
The e-Gov Super App provides various government services such as tax payment, permit application, and welfare services on a single mobile platform, allowing citizens to use public services more easily. The app can also be used in rural areas with limited digital accessibility, and plays an important role in bridging the digital divide, especially in rural areas.
PhilSys is a unified digital identity system led by PSA that provides Filipinos with a unified identity card to simplify their interactions with government services. As of August 2024, 8, there are 23 Filipinos registered with PhilSys, according to PSA, which is expected to make access to social security benefits, banking services, and other public services much easier.
5G infrastructure expansion and smart city development
The Philippines is aggressively expanding its 5G network infrastructure under the leadership of the National Telecommunications Commission (NTC) and the Department of Communications and Technology (DICT). Beyond simply providing high-speed Internet, the 5G network is positioned as a core infrastructure that can operate cutting-edge technologies such as the Internet of Things (IoT), autonomous driving, and smart manufacturing. This network expansion will affect not only urban areas but also rural areas in the Philippines, and is considered an essential element for digital transformation.
The Philippines is promoting smart city development in the Philippines through the Clark Smart City Project led by the Clark Development Corporation (CDC) and the Bases Conversion and Development Authority (BCDA). Clark Smart City focuses on building a digital city model by introducing IoT-based urban management systems, automated traffic management systems, and energy efficiency technologies. This project is a representative case where Korean smart city solutions can be applied, and it seems that Korean companies will actively participate.
Development of fintech and e-commerce infrastructure
The Philippines’ e-commerce and fintech industries are growing rapidly, and the Bangko Sentral ng Pilipinas (BSP) is actively supporting them. QR code-based digital payment systems such as Paleng-QR Plus are making it easier for SMEs and consumers to access the digital economy, and are contributing to significantly improving financial inclusion, especially in rural areas.
On the other hand, e-Commerce Roadmap(link)This is the e-Commerce Roadmap, a comprehensive plan prepared by the Philippine government to develop e-commerce infrastructure in 2022, with the goal of expanding digital infrastructure and strengthening related regulations. In this environment, Korean fintech companies are expected to have the opportunity to successfully enter the Philippine market through digital payment solutions and blockchain technology.
Strengthening cybersecurity and data privacy
The Philippine government has developed a national cybersecurity plan (Cybersecurity Plan 2023-2028) to address cybersecurity threats.(link), and is working to improve data protection and security issues through this. DICT is strengthening DDoS attack prevention and network security for government agencies and critical infrastructure across the Philippines through the Anti-DDoS solution.
implication
The Philippines’ digital transformation policy is accelerating through collaboration among various government agencies, and in particular, e-government, smart city development, and 5G network expansion are expected to have positive effects across the Philippine economy. In an interview with KOTRA Manila Trade Center, Mr. J, a Philippine ICT industry worker, said, “Digitalization is creating new opportunities across Philippine industries, and it is playing a major role in expanding digital benefits, especially to rural areas,” adding that digital transformation will be an important catalyst for strengthening economic growth and social inclusion. This digital innovation is expected to greatly contribute to increasing the efficiency of public services, improving accessibility to administrative services, and resolving the digital divide across the country.
However, with the rapid expansion of digital infrastructure, cybersecurity and data protection issues are also emerging as important challenges. The Philippine government is introducing various legal and technical measures to reduce cybersecurity threats and strengthen personal information protection during this digital transformation process. In particular, stronger cybersecurity infrastructure and regulations are needed to prevent security threats that may arise as digitalization progresses rapidly. If these efforts are successfully implemented, the Philippines’ digital transformation is expected to move in a safer and more efficient direction.
Data: Compilation of data from the Department of Information and Communications Technology (DICT), Commission on Higher Education (CHED), Department of Health (DOH), Statistics Korea (PSA), National Telecommunications Commission (NTC), Central Bank of the Philippines (BSP), National Personal Data Protection Commission (NPC), Philippines News Agency, and KOTRA Manila Trade Center