The Market Monitor Minding the Nation's Business
The government’s economic managers are planning to institute reforms in the e-commerce industry after the current boom in digital transactions
But government issued a warning that the boom could also lead to a spike in cybercrimes.
Before these reforms could be put in place, the country must first improve its broadband penetration and digital adoption because the Philippines has one of the slowest internet speeds in Southeast Asia as well as having one of the most expensive pricing.
Undersecretary Rosemarie G. Edillon of the National Economic Development Authority (NEDA) said these reforms will depend on opening the telco sector by amending the foreign investment and public service laws as well as the pending open access in data transmission bill.
Edillon said the reforms would “reduce the digital divide by lowering barriers to market entry and increase available spectrum for internet connectivity” as well as “streamline permit requirements for network deployment to reduce cost.”
Socioeconomic Planning Secretary Karl Kendrick T. Chua said, “Digital technology can significantly increase efficiency in business operations and public service delivery… Online transactions will now become the new standard for engaging with clients, buyers, and suppliers, therefore, both public and private sectors need to invest in digital technology,” he said.
But Finance Secretary Carlos G. Dominguez III warned that the current e-commerce boom may also result in increased crimes on the internet
“With more commercial transactions going through cyberspace, expect a spike in cybercrime,” said Dominguez. “The Philippine National Police and the Department of Justice have been alerted and have assured me that they have upgraded their capacity to detect, investigate and prosecute cybercriminals,” added Dominguez.
Debt watcher Moody’s Investors Service reported that “Large-scale shift to digital banking and remote work has accelerated the technology cycle and increased banks’ vulnerability to cyber-attacks.”