The Philippines is one of the few countries that belong to the “watch out economies” in terms of digital intelligence, according to a study conducted by the Fletcher School at Tufts University and Mastercard.
Based on the study, titled Digital in the Time of Covid, the Philippines joins other emerging economies in the “watch out” category, which pertains to countries that have infrastructure gaps, but whose “young people are showing enthusiasm for a digital future with increased use of social media and mobile payments.”
The study created various indices based on two components: Digital Evolution and Digital Trust, which pertain to an “economy’s historical momentum from the physical past to the digital present” and the “bridge that connects its journey from the digital present to an intelligent and inclusive digital future,” respectively.
From those two components were segmented into four categories, namely: Stand Out Economies, which are considered digitally advanced; Stall Out Economies, which had high digital adoption despite slow digital momentum; Break Out Economies, which are evolving rapidly with significant headroom for growth; and Watch Out Economies, which show willingness to adopt digital solutions but had a number of infrastructure gaps.
The study created a digital evolution scorecard based on four drivers with 160 indicators: supply conditions, demand conditions, institutional environment, and innovation and change.
The Philippines, according to the study, ranked 64th in terms of the state of its digital evolution with a score of 44.29 points, more than half of the leading economy, Singapore which scored 98.82 points.
Likewise, the speed by which the Philippines is digitally evolving is still lackluster at the 52nd spot with 45.40 points, versus the first placer China at 85.51 points.
The study also created a digital trust scorecard based on four key pillars with 198 indicators: behavior, attitudes, environment, and experience.
In terms of environment, the Philippines ranked 28th out of 42 economies. It ranked last in terms of experience, 10th in terms of behavior, and 28th in terms of attitudes.
With Covid-19 forcing almost everyone to go online for their everyday tasks, including work and schooling, the Philippines is slowly transitioning a good number of its services to the digital realm.
For instance, government fees may now be paid through e-money and banking apps; booking cars and food delivery through their mobile phones; using videoconferencing solutions for work; and distance learning through online classes.
“Covid-19 has advanced digitalization across Asia Pacific by at least five years in as many months, only serving to further accelerate the development of the digital ecosystems across the region. With rising levels of consumer trust and engagement and growing digitization in the small business segment, all deeply supported by proactive enabling actions from governments, the opportunities ahead for the region’s digital economy are immense,” Mastercard EVP Matthew Driver said.