12.5% digital economy share in GDP eyed By Lorenz S. Marasigan
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HE Philippines is aiming to grow its digital economy’s contribution to gross domestic product to 12.5 percent by 2028, reversing a decline that saw the sector’s share drop from a peak of 9.1 percent in 2021 to 8.4 percent in 2024. Department of Information and Communications Technology (DICT) Secretary Henry Aguda warned that the country is “falling behind” regional neighbors in digital adoption, after the share
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of the digital economy to the local output dropped marginally over the past three years. “I firmly believe in data, not delusions,” Aguda told participants of the Pilipinas Conference 2025. “The Philippines is in a state of digital decline. We are falling behind. This is unacceptable.” He said the decline represents “missed chances for better jobs, higher incomes, and a future where every Filipino can take part in the digital age.” Aguda contrasted the Philippines’s digital economy share with
regional competitors, noting Singapore leads at 25 percent, Malaysia at over 20 percent, and Vietnam climbing toward 18 percent. “While we were comfortable, our neighbors were hungry. Our failure is that while the rest of the Asean took advantage of the pandemic to digitize, we did not,” he said. “We have flat lined.” The declining digital economy share has also affected the country’s ability to attract major hyperscalers, with China and Indonesia hosting six of the largest cloud service providers—AWS, Micro-
soft, Google, Alibaba, Huawei, and Tencent—while Singapore and Malaysia host five. The Philippines hosts only two. “If the economy is growing but the digital sector’s share isn’t keeping pace, it means you’re neglecting the digital aspect,” Aguda said in an interview after his speech. “But if both the economy and the digital share are growing together, that shows you’re future-proofing the economy.” He said the government expects the digital economy’s contribution to exceed 8.4 percent by year-end, See “GDP,” A2
BusinessMirror A broader look at today’s business
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10-MO BOP IN DEFICIT ON TARIFF WOES, TRADE GAPS www.businessmirror.com.ph
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Friday, November 21, 2025 Vol. 21 No. 44
P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
HILE the country’s balance of payments (BOP) recorded an eight-month-high surplus of $706 million in October 2025, persistent trade deficits, tariff policies and higher global uncertainty reversed the 10-month BOP into a deficit of $4.609 billion. According to the Bangko Sentral ng Pilipinas (BSP), the country’s $706-million BOP surplus in October was a turnaround from the $724 million in deficit during
the same month last year. The BOP accounts for the transactions of the country with the rest of the world. See “BOP,” A2
CONFLICTS, WEAK MGT CAUSE OF ERC BACKLOGS, SAYS JUAN By Lenie Lectura
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@llectura
HE new chief of the Energy Regulatory Commission (ERC) said “internal conflicts” and “weak top management” are the primary causes of the agency’s case backlog, rather than the number of commissioners. There was a proposal raised during deliberations on the amendments to the Epira to increase the number of commissioners to nine from the current five as part of restructuring the agency.
ERC chairman Francis Saturnino Juan said an increase in the number of commissioners does not necessarily correlate with a higher resolution rate of cases, nor does it facilitate expedited decision-making. Instead, he pointed out, the proposal is likely to institutionalize gridlock, saying an increase in the number of commissioners may result in more protracted debates, deeper divisions, and greater challenges in achieving the majority consensus necessary for critical decisions. In a nutshell, the proposed reform See “ERC,” A2
AHTISA ASCENDS Miss Philippines Ahtisa Manalo competes in the national costume competition at the Miss Universe pageant in Nonthaburi, Thailand, on November 19, 2025. Her “Festejada: Queen of Philippine Festivals” ensemble by Mak Tumang draws inspiration from iconic local celebrations, including the Giant Lantern Festival and Pahiyas. Manalo—dubbed the “Pambansang Manika”— continues to rank among the frontrunners after strong preliminary performances, with the coronation night set for November 21 at the Impact Muang Thong Thani Arena in Bangkok. AP/SAKCHAI LALIT
DOF chief Go vows ‘real, tangible progress’
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GUO GETS LIFE OVER SCAM HUB Dismissed Bamban Mayor Alice Guo arrives at a private hangar in Pasay City on September 6, 2024, following her deportation from Indonesia. The Pasig City regional trial court has convicted Guo—whom authorities allege is a Chinese national using the identity “Guo Huaping”—of human trafficking for helping operate a vast illegal online scam hub in Tarlac, where hundreds of Chinese and other foreign nationals were coerced into romance scams, bogus investments, and gambling schemes. Guo, sentenced to life imprisonment alongside seven co-accused, denies the allegations and insists she is a Filipino citizen. Story in A4 Nation. AP/AARON FAVILA
EWLY-APPOINTED Finance Secretary Frederick D. Go vowed to translate government policies into “real, tangible progress that every Filipino can feel,” as he formally took the helm of the Department of Finance (DOF). In a statement, the DOF said Go’s entry into the Finance department comes at a crucial time when Filipinos are in the process of rebuilding and relying on the government for action. “We find ourselves at a very challenging moment. Many of our fellow Filipinos need our help to rebuild and to look for solutions, accountability, and hope,” Go said in his speech during the turnover
ceremony. “With this comes a profound responsibility to steer the Philippine economy towards greater heights while ensuring that the government delivers on its promises,” he added. The Filipino people, Go said, deserve no less as every commitment the government makes must translate into real, tangible progress that every ordinary Filipino can feel. “I am confident that together we can meet these challenges.” Go urged the men and women of the DOF to share their ideas, specifically actionable ideas, and speak freely, candidly and boldly. “As Executive Secretary Ralph G. Recto said, challenge me or us when-
ever necessary so that we can arrive at the best solutions,” Go said. Go said he and former Finance Secretary Recto agree on almost everything. “I’m struggling to think of a moment where we had a difference in opinion—in what needs to be done or what the strategy is.” The new Finance chief called on the DOF to recommit themselves to serving not just the institution, but more importantly, the people. “Our mandate is bigger than any one individual. We are here to take action, improve lives, and make a difference through a government that is responsive and efficient,” Go added. “We are here to take action, improve lives, and make a difference through a government that is re-
sponsive and efficient,” Go said. Prior to assuming his role as Finance Secretary, Go served as Special Assistant to the President for Investment and Economic Affairs. Go also headed the Economic Development Committee, supervising and monitoring developments in key government agencies. Go also led several business ventures where he served as chairman, vice-chairman, president, CEO, and director of six listed companies and a number of corporations. His experience spans 35 years across various industries including media, retail, real estate, food, banking, finance, airline, airport, petrochemicals, gaming and power. Reine Juvierre S. Alberto
PESO EXCHANGE RATES n US 58.8980 n JAPAN 0.3748 n UK 76.9385 n HK 7.5602 n CHINA 8.2798 n SINGAPORE 45.0739 n AUSTRALIA 38.1482 n EU 67.9683 n KOREA 0.0402 n SAUDI ARABIA 15.7053 Source: BSP (November 20, 2025)