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Government upbeat digital upgrade can grow PH economy by 1.1%

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February 11, 2026

Government upbeat digital upgrade can grow PH economy by 1.1%

At the Philippine Telecom Summit 2026 on Feb. 5, Information Secretary Henry Aguda said his agency is keen on simplifying the procedures for new telcos to enter and existing players to expand. According to the Department of Information and Communications Technology (DICT) which Mr. Aguda leads, the Philippines can grow its economy by up to 1.1% more if certain factors come into play.

Based on DICT estimates, the economy, measured as gross domestic product (GDP), can reach such level   if the Philippines achieves Malaysia’s level of telco framework and if the public and private sectors work together in resolving the backlog in connectivity infrastructure.

Secretary Aguda said: “Studies show if we catch up even to Malaysia’s level of telecom infrastructure, we could add up to 1.1% to our GDP. Infrastructure sharing alone means lower costs, faster expansion and a wider coverage.”

He said the DICT is urging the private sector to invest in more cellular towers as he underscored the importance of building cell sites in all corners of the archipelago to support digital adoption. He added: “More digital access could encourage small and medium enterprises (SMEs) to scale up, a win for an economy where SMEs comprise 99.5% of businesses.”

Likewise, Aguda said Filipinos with no internet access are deprived of job and learning opportunities. They are also denied access to essential services online like e-commerce and telemedicine. Under Aguda’s watch, the DICT aims to place the Philippines on top of Southeast Asia in terms of internet speed by 2028. Currently, the country is in the middle of the pack in the 11 countries in the region.

Meanwhile, speaking at the same event, President Ferdinand R. Marcos Jr. said the government is pushing for faster reforms to make the country’s internet services more affordable and reliable. In his speech, Marcos cited challenges faced by the information and communications sector, especially in the coastal communities, mountainous regions, and smaller islands.

“Delays in permits, right-of-way restrictions, fiber cuts, and power interruptions further widen these gaps. These affect real lives. They limit access to education, they constrain economic opportunity, and slow national progress. Ito ang dahilan kung bakit mahalaga ang ating pagtutulungan,” Marcos said.

Kailangan magkaisa ang pamahalaan, ang pribadong sektor, at mga lokal na pamayanan—sapagkat walang iisang sektor lamang ang kayang harapin ang mga hamong ito. Kumilos tayo na may isang hangarin: ang maghatid ng pag-asa, ng ginhawa, at pagkakataon sa bawat Pilipino,” he continued.

(The government, the private sector, and local communities must unite—because no single sector can face these challenges alone. Let us act with one purpose: to deliver hope, relief, and opportunity to every Filipino.)

Marcos noted that part of the government’s reforms is the enactment of the Konektadong Pinoy Act, which he said removed long-standing barriers that slowed progress and limited competition. He added: “The law mandates infrastructure sharing and co-location among providers—ending wasteful duplication, lowering deployment costs, and ensuring that every single peso spent delivers real value to our public.”

Reference: DICT: Digital upgrade to expand GDP by 1.1 percent

But are Filipinos ready for AI?

Filipino workers are steadily embracing artificial intelligence, and the Philippines is making significant strides towards an AI-ready future. Bayanihan remains one of the most enduring traits in Filipino culture. Values like selflessness, solidarity, trust and cooperation embody what a true spirit of bayanihan.

Emmy Lou Versoza-Delfin, director of DICT’s ICT Industry Development Bureau (IIDB), shared: “This is as much about inclusion as it is about innovation. It’s about making sure we all grow and adapt together—wala tayong iwanan.  It is a powerful reminder that when technology blends with culture, everyone can benefit and grow together.”

HP Philippines Managing Director Ida Evina Ong-Co reaffirmed HP’s commitment to ensuring that the AI revolution benefits all Filipinos. She emphasized the company’s focus on delivering technology that is not only powerful and secure but also accessible so everyone can thrive.

Although many fear that AI could replace human workers, Idris Atakli, HP Consultant and AI Product Strategist, dispelled this myth, emphasizing how AI can streamline tasks and enhance productivity through solutions like HP’s AI Companion. According to HP’s Work Relationship Index, 76% of Filipino knowledge workers believe AI will make their jobs easier, while 75% say it will make their work more interesting.

Michelle Alarcon, president of AAP, stressed that AI will amplify our ability to think, solve problems, collaborate, and lead. She urges: “Everyone should be looking at how to leverage AI. Right now, we’re all on relatively equal footing, so it’s the perfect time to start preparing—organize your data, refine your processes—so that when you begin using AI, your systems are ready to integrate and fully benefit from it.”

Together, HP, DICT and AAP shared a unified vision. AI adoption is not just about technology. It is about empowering people. With AI, people will work smarter, better and faster. When done right, it won’t just level up individual skills but the entire system as well.

Reference: Manila Bulletin – The power of we

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