‘Digitalization a key economic agenda, anti-corruption tool’

By Lorenz S. Marasigan @lorenzmarasigan

several government services that can be digitally accessed by users.

DICT chief’s vow

THE BusinessMirror earlier reported that Department of Information and Communications Technology (DICT) Secretary Ivan Uy vowed to consistently add more services into the eGov Super app, including the integration of local government services as well as the National ID System.

Consistent with this transformative policy direction, all government officers must then ensure that their vital services are digitalized immediately in response to this call,” Marcos said.

I n his second State of the Nation Address (SONA ), Marcos said digitalization is a key pillar of his economic agenda, calling all government offices to “fully embrace digitalization to provide better service to the people.”

He added: “Through its vital frontline services and its back end functions, digitalization will support the government’s data-driven and science-based planning and decision making. It is the greatest most powerful tool not just to improve the ease of doing business, but also against many forms of graft and corruption.”

D igital transformation, Marcos said, complements the streamlining efforts of government since he assumed office last year.

T his, he said, boosted efficiency in areas such as government payments, company and business registrations, issuance of permits and licenses, loan applications and revenue collection.

All our digitalization efforts will be linked to our payment systems whose digital transformation has been accelerating at a remarkable rate. Digital payments accounted for 42 percent of the total retail payments made in 2022— whether by businesses or individuals or by the government. Its high trajectory is now well positioned to achieve Bangko Sentral’s target of 50 percent of total retail payments by this year,”

Marcos explained.

He also mentioned the launch of the eGov Super App, a single and centralize mobile app that features

T he President also highlighted the continued improvement of Internet speeds in the Philippines, citing the 11-notch improvement in global rankings for broadband to 47th in June, as well as the eighthplace improvement in mobile data ranking to 83rd.

There will be more improvements as our internet infrastructure undergoes further upgrades. Earlier this year, Starlink went live in the Philippines, now providing high-speed satellite broadband connectivity. Our national fiber backbone and broadband and massive projects will also deliver high connectivity and high speed internet,” he said.

B eyond providing better services to the Filipinos in the metropo - lis, Marcos vowed to democratize Internet access for people in farflung areas in the country.

“ We are prioritizing geographically isolated and disadvantaged areas. The DICT has been directed to consolidate all these digitalized government services into the eGov PH app to establish the National Government Portal and the Philippine Business Databank to improve the internet speed in our country,” he said.

M arcos also cited the role of e-commerce in driving further growth into the economy.

L astly, he also vowed to further beef up cybersecurity in the Philippines, indicating that this is a priority area given that the first bill he signed into law was the SIM Registration Act.

“ The first bill that I signed into law was the SIM Registration Act because we are mindful of the risks and vulnerabilities that can lead to negative consequences. Digital users and consumers shall be protected from identity theft, phishing or other online scams through essential systems and safeguards such as cybersecurity, data privacy, consumer complaint mechanisms, and financial literacy campaign,” Marcos said.

Globally, digital transformation has led to the reduction of needed manpower to operate systems and businesses, sparking a worldwide call for upskilling.

Marcos gave assurances, though, that the government, through the DICT and the Technical Education and Skills Development Authority (TESDA), is now working towards the creation of programs to upskill workers that will be affected by digital transformation.

“ The trainings necessary to ease the transition of those whose jobs would be affected by the shift that digitalization are also now being included in the curricula and programs offered by TESDA, DICT and other agencies of government,” he said.

For Marcos, digital transformation should be embraced soon, and not a minute later.

Digitalization is the call of today, not the call of the future but of the present. It is here and it is needed and it is needed today,” he said.

W hile she agreed with some of the President’s priority bills, De La Salle University economist Maria Ella Oplas believes not all these bills are urgent and there are more important ones.

S he agreed with the need to impose a motor vehicle road tax, noting too many motorcycles on the road. These are also linked to a number of deaths and accidents.

More worthy bills

OPLAS said, however, that one bill meriting priority is the review of the Agri-Agra Law, which studies have already found to be ineffective. As the country’s Agriculture Chief, the President should have included it in his legislative agenda.

Honestly, I question the urgency of the identified bills,” Oplas told this newspaper. “I believe that there are other much worthy bills thad they have to prioritize that will bring higher impact to the economy.”

A teneo de Manila University economist Leonardo Lanzona told BusinessMirror that none of the priority measures addressed the basic concerns of the country which are inflation and jobs.

It would have been better, Lanzona said, to include “a regional based development program that

He added that private sector advisory councils and nationallocal mechanisms have also been organized to establish the needed linkages.

M arcos said the MandanasGarcia ruling of the Supreme Court in 2018, which reflects the mandate of the Constitution and the Local Government Code, will take effect “soonest” to improve collaboration between the LGUs and the national government.

M arcos said all of the LGUs’ necessary devolution transition plans have been completed.

“ To fully prepare them for optimal devolution, the necessary technical and financial assistance is being extended to our local governments. In everything that we do, the enduring Filipino quality of Bayanihan will be our guide,” he added.

Fisheries code MEANWHILE , the President also urged Congress to pass amendments to the Fisheries Code.

Our Fisheries Code must be revisited to incorporate and strengthen science-based analysis and determination of fishing areas. This approach will protect both the interests of our fisherfolk and our fisheries and aquatic resources,” he said.

“ To this end, we will seek the support of Congress to amend the Code to guarantee sustainable development of our fisheries sector in harmony with environmental balance,” he added.

M arcos also asked Congress to pass the Tatak-Pinoy (Proudly Filipino) Law and the Blue Economy Law.

T he proposed Tatak Pinoy Law, filed by Sen. Sonny Angara, seeks to enhance the capabilities and standards of local industries, level up the country’s exports, create jobs, and ultimately make the economy more vibrant and competitive with the rest of the world.

T he Blue Economy Law, pending in the House, seeks to serve as the basis for marine spatial planning, the determination of investments to enhance maritime domain awareness, the preservation of the value and sustainability of ocean resources, and their protection from threats such as land-based pollution and overfishing. allows each region to address these basic concerns individually.”

To maximize the economic and social benefits of Philippine maritime industries, Rep. Jose Francisco Benitez of Negros Occidental filed House Bill 69 to prioritize programs that promote the blue economy in the interest of national economic security.

B enitez explained that the blue economy is a framework for sustainable development of marine and coastal resources based on principles of stewardship and social responsibility.

House Bill 69, if passed into law, will strengthen interagency coordination and planning to identify the best use of maritime zones, including the EEZ, promote blue finance or funding for special economic zones concentrating on sustainable and strategic maritime industries, and enhance maritime domain awareness to flag threats to our marine environment, including unauthorized access, overexploitation, and pollution.

Marcos also pushed for the passage of essential tax measures under the Medium-Term Fiscal Framework, including an excise tax on single-use plastics, a VAT on digital services, the rationalization of the mining fiscal regime, a motor vehicle user’s charge or road user’s tax, and the Military and Uniformed Personnel Pension.

A ll these tax bills and the MUP are now in advanced stages in the House.

A lso, the President said the bills creating the Department of Water Resources and Services, the amendment of the AntiAgricultural Smuggling Act, the amendment of the Cooperative Code, the Anti-Financial Account Scamming Act, and the proclamation granting amnesty to rebel returnees must be passed. All these bills are currently under deliberation in the lower house.

M arcos also asked Congress to give its nod to bills easing the payment of taxes, LGU income classification, and the Philippine Immigration Act. Speaker Ferdinand Martin Romualdez said these three bills, which are part of the LEDAC priorities, will be approved this year.

L ike Oplas, Lanzona questioned whether all bills cited by the President are needed now. He was also unsure if these are enough to address the country’s needs and could be accomplished. “

What about the political reforms that will create a broader participation of people and organizations in the decisions being made in government? Good economics stem from good politics. The highly centralized system of governance with full control of the different branches of government hardly characterizes good politics,” Lanzona told BusinessMirror.

MAP’s take

MEANWHILE , Management Association of the Philippines (MAP) President Benedicta DuBaladad said the economic gains cited by the President were welcome news, but these are not the only things that matter for the country right now.

D u-Baladad cited a need to address inequality in the country. She noted that the gap between the rich and the poor is very wide as measured by a Gini coefficient —a measure of inequality—of 41 percent as of 2021. “ That translated to more than half (57 percent) of our population considered as low-income class and living in the poverty line and below. This is a heavy burden that the government has to address with urgency,” Du-Baladad said. N onetheless, she said MAP welcomed the government’s initiatives to address critical social development issues, such as malnutrition, low level of education, employment, providing better social services, improving health services, and digitalization for financial inclusion.

D u-Baladad said MAP is helping the government address inequality through its programs such as the Campaign against Malnutrition and Child Stunting (CAMACS) that called for multisectoral, concerted effort to ensure that the first 1,000 days of a child from inception to under 3 years of age are given access to healthy food and micronutrients.

A ligned with CAMACS, the MAP will soon craft a 5-year blueprint for shared prosperity, embodying commitments on how businesses can help lift the poor out of poverty as manifested in their dealings towards their employees, customers, suppliers, communities where they operate, the environment and other stakeholders.