By Justine Irish D. Tabile, Reporter
THE PHILIPPINES slumped to its worst exhibiting within the World Digital Competitiveness Rating by the Worldwide Institute for Administration Growth (IMD), primarily resulting from a decline in expertise and scientific focus.
The nation slid two spots to 61st place out of 67 economies, scoring 45.18 within the 2024 World Digital Competitiveness Rating, carried out by the World Competitiveness Heart.
This was the Philippines’ lowest rating because the report began in 2017.
Amongst 14 Asia-Pacific economies, the Philippines ranked 13th, forward solely of Mongolia (64th).
Singapore ranked first within the international digital competitiveness index with 100 factors, adopted by Switzerland and Denmark.
The rating measures a rustic’s capability to undertake and discover digital applied sciences to remodel authorities practices, enterprise fashions and society on the whole.
It measures a rustic’s capability in three key elements: data or the standard of human capital, excellence of technological infrastructure and future readiness.
The Philippines ranked 64th within the data issue, 58th in future readiness and 56th in expertise.
“The decline is especially pushed by a drop in expertise and scientific focus. There’s additionally a downturn within the expertise and regulatory frameworks,” stated José Caballero, senior economist on the IMD World Competitiveness Heart, in an e-mail.
The nation noticed the steepest drop within the expertise pillar, falling 5 locations from 51st final yr.
In accordance with IMD, the nation confirmed weak spot within the ease of beginning a enterprise (65th), imposing contracts (64th), communications expertise (66th), and safe web servers (64th).
Nonetheless, the Philippines confirmed promising efficiency in investments in high-tech exports (2nd) and telecommunications (9th).
The nation additionally slid one spot in data and future readiness, amid low rating in expertise (60th), coaching & training (62nd) and scientific focus (61st).
In accordance with IMD, the Philippines’ energy within the data issue lies in its graduates in sciences (22nd) and its feminine researchers (2nd).
For future readiness, IMD stated the nation confirmed energy in flexibility and flexibility (19th spot).
“By way of future readiness, whereas there was an enchancment in adaptive attitudes, that’s societal attitudes towards new applied sciences, enterprise agility and knowledge expertise integration stay stagnant,” he added.
In accordance with Mr. Caballero, prioritizing the event of related expertise and the nation’s R&D (analysis and growth) capabilities are keys to enchancment.
“As well as, there’s room for enchancment within the regulatory framework’s help for the event of recent applied sciences, [while] strengthening the adoption and integration of recent applied sciences throughout the societal, non-public, and public sectors can be elementary,” he added.
Asian Institute of Administration’s (AIM) Rizalino S. Navarro Coverage Heart for Competitiveness, IMD’s native accomplice institute within the report, stated that the Philippines was the weakest within the data element.
“[This] reflects the extent of our human capital and our investments in it. We’re trailing behind regional friends by way of enhancements in fundamental training and coaching,” stated Jamil Paolo S. Francisco, govt director of the AIM Rizalino S. Navarro Coverage Heart for Competitiveness, in an e-mail.
Nonetheless, he stated that the decline within the rating doesn’t imply that no progress has been made, however merely that different economies are enhancing at a quicker tempo.
“Fundamental training stays the inspiration for any upskilling wanted to adapt to quickly altering applied sciences and financial calls for. We have to get that proper earlier than we will anticipate to reap the benefits of technological development,” he added.
For the nation to enhance its rating, Mr. Francisco stated that the nation ought to begin with getting the fundamentals proper.
“We want extra sustainable investments in training and infrastructure — start with stable foundations in fundamental training and abilities growth to leverage technological developments,” he stated.
“Moreover, creating an enabling atmosphere by way of regulation, entry to sources, and entry to markets is essential. Modernizing guidelines and frameworks to match the brand new wants and realities of corporations, customers, and employees is crucial for progress,” he added.
Searched for remark, Rizal Business Banking Corp. Chief Economist Michael L. Ricafort stated that the nation’s declining efficiency in digital competitiveness may be attributed to the emergence of recent applied sciences.
“The quick tempo of digitalization globally with the emergence of recent applied sciences comparable to synthetic intelligence is widening the digital divide amongst nations, in line with the wealth hole,” stated Mr. Ricafort in a Viber message.
“As [well-off] nations digitize additional, [the more they] could be far forward than these which are worse off and much behind,” he added.
Due to this, he stated that there’s an pressing want for the Philippine economic system to spice up digitalization.
“There’s an pressing want for the Philippines to digitize additional… to have extra aggressive infrastructure and to create a good atmosphere that’s extra conducive to extra technological advances that can enhance the nation’s productiveness,” he added.
GEOPOLITICAL TENSIONS
The IMD report additionally explored the important thing challenges that hinder the development of digital competitiveness within the nations, comparable to geopolitical tensions.
Mr. Caballero stated the geopolitical rivalry between the US and China are among the many conflicts that would compromise how different nations compete on the international stage.
“Geopolitical rivalries… are fragmenting the digital panorama, influencing not solely how different nations develop and use digital applied sciences but additionally their means to compete globally,” Mr. Caballero stated in an announcement on Thursday.
“It’s subsequently seemingly that any new tariffs will embody nationwide security-related components. That’s, tensions over expertise and safety considerations might additionally intensify, main the US to additional curtail China’s entry to superior expertise,” he added.
US President-elect Donald J. Trump is looking for to impose 60% or larger tariffs on all Chinese language items and a ten% common tariff as soon as he assumes office in January 2025.
Mr. Caballero stated that the geopolitical tensions have led to elevated competitors for digital dominance, which resulted within the fragmentation of world digital governance.
“In flip, such fragmentation can hinder collaboration on points like cybersecurity and information privateness, that are important for a balanced and safe digital ecosystem,” he stated.
“As well as, fragmentation, by hampering collaboration, can enhance the extent of digital disparities amongst nations,” he added.
