MAPping the Future

In his fourth State of the Nation Address, President Ferdinand Marcos Jr. reaffirmed the role of digital transformation in shaping the country’s future—calling for wider internet access, improved government digital services, and stronger science and technology initiatives. But if we are to assess the true “State of our Digital Nation,” we must move beyond declarations. The Philippines stands at a digital crossroads, and how we act today will determine our place in the global digital economy tomorrow.

 

Artificial intelligence (AI) is no longer a distant innovation. It is a national imperative. This urgency is reflected in the number of AI-related bills filed in both chambers of Congress and in the clear mandate from DOST, led by Secretary Rene Solidum, to advance AI-driven solutions in health, agriculture, disaster risk management, and language technologies. AI can revolutionize how we deliver public services, manage traffic systems, analyze climate risks, and boost productivity across sectors. But that promise will only be realized if we invest in talent, infrastructure, and ethical frameworks now.

 

Education is the linchpin. To become truly future-ready, our schools must embed AI, data literacy, and cybersecurity into curricula—not just for computer science majors, but across all disciplines. TESDA’s Enterprise-Based Virtual Education and Training (EVET) program is a promising start in addressing the skills gap, particularly for BPO professionals whose roles are increasingly at risk of automation. Scaling this model nationwide will be essential if we are to transform the BPO industry into a Knowledge Process Outsourcing (KPO) powerhouse.

 

Equally important is the role of blockchain. The Philippines has achieved early milestones—from being the top country in blockchain gaming adoption to pioneering the first blockchain-specific law in Asia through the Authority of the Freeport Area of Bataan (AFAB). We’ve seen openness from regulators in issuing licenses for Virtual Asset Service Providers (VASPs) and Crypto Asset Service Providers (CASPs). But this is not enough. We must treat blockchain as a core component of trust infrastructure, applicable to everything from digital identity to land titling, supply chain transparency, and public fund tracking.

 

Around the world, blockchain is being piloted for real-world use cases. Nigeria’s private sector has launched blockchain-based eKYC systems. Estonia’s X-Road platform allows secure, inter-operable data exchange between government agencies. India has linked its Aadhaar system to public subsidies using digital identity rails. These are not theoretical models—they are blueprints we can study, localize, and scale. The Blockchain Council of the Philippines, along with other industry and civic organizations, is prepared to support hackathons, pilots, and policy work to turn these innovations into national assets.

 

But digitalization without protection is a risk we cannot afford. Cybersecurity must be treated as a matter of national security. In response to growing cyber threats—many now powered by generative AI—the private sector has partnered with government and academe to launch the Cybersecurity Council of the Philippines. Its mission: to advocate, educate, and create a multi-sector response to evolving digital threats that affect enterprises, consumers, and the public sector alike.

 

Moving forward, a national cybersecurity framework is needed—one that promotes Zero Trust architecture, mandates AI-powered threat detection systems, and encourages real-time information-sharing between industries. Cyberattacks are not isolated IT issues. They are systemic threats with potential to paralyze hospitals, banks, transportation systems, and even democratic processes.

 

At the heart of all these efforts lies infrastructure. Despite growing digital demand, broadband penetration remains low, particularly in rural areas. According to World Bank figures, only 28% of Filipino households had fixed broadband access in 2023, compared to nearly 80% in Vietnam. The President’s pledge to connect all public schools by the end of the year is commendable. But to foster inclusive digital growth, we must dramatically accelerate investments in fiber optics, satellite broadband, data centers, and cloud platforms.

 

This requires not only funding but regulatory reform. Many of the laws governing our telecom and data infrastructure date back to the 1990s. If we are to enable competition, improve affordability, and ensure last-mile connectivity, government must modernize outdated statutes and streamline the process for deploying towers, cables, and digital hubs—especially in geographically isolated and disadvantaged areas.

 

An often-overlooked piece of this digital puzzle is data governance. With the growing rollout of digital IDs, eKYC platforms, and integrated government systems, sensitive citizen data is being stored and exchanged at an unprecedented scale. Where is it stored? Who controls it? How is it protected?

 

Currently, the government’s eKYC platform (ekyc.gov.ph) is not based on blockchain technology. A blockchain-based approach would provide stronger data integrity, auditability, and citizen-controlled access. Moving toward a unified, tamper-evident system is essential to maintaining trust and ensuring privacy—while enabling greater inter-operability across public services. A multi-agency Data Governance Council should be established to craft policies on consent, encryption, storage, and cross-sector inter-operability.

 

All these efforts—AI integration, blockchain trust layers, cyber defense, data infrastructure, and digital literacy—must be led by the right people with the right mandate. Government needs to appoint dedicated digital champions across departments. At the same time, inter-agency coordination must improve. Agencies, like DICT, DOST, DEPDev, and PSA, must align their strategies, metrics, and timelines under a shared national vision.

 

Private sector participation is vital. Businesses must treat digital transformation not as a cost center, but as a core driver of growth, competitiveness, and resilience. Industry leaders should invest in shared R&D, participate in digital consortia, open their data ecosystems for inter-operability, and support start-ups that build local AI, blockchain, and cybersecurity solutions.

 

Just as importantly, we must invite the global community to invest in our digital future. With one of the world’s most active digital populations, a young and adaptable workforce, and an English-speaking talent base, the Philippines is uniquely positioned to become Southeast Asia’s next digital powerhouse. But this will only happen if we present ourselves as a serious, stable, and well-governed destination for tech investment.

 

The moment is now. The signals from government are encouraging, but the pace must accelerate. Countries around us are moving quickly—from Singapore’s national AI sandbox to Indonesia’s digital identity overhaul and India’s AI-linked public service delivery systems.

 

We can lead—not just follow. But that requires urgency, ambition, and a shared commitment from both government and the private sector. The State of our Digital Nation is a work in progress—but with the right foundation, it can be a source of national pride and a catalyst for inclusive growth.

 

Now is the time to build. Now is the time to lead.

 

 

(The author is Co-Vice Chair of Management Association of the Philippines (MAP) Technology Committee and Chair of MAP Trade, Investments and Tourism Committee.  He is President of DITO CME Holdings Inc.  Feedback at <map@map.org.ph> and <donaldpatricklim@gmail.com>).