MANILA, Philippines (Jul 2026): Hosting a massive regional summit is a huge deal, but the country’s high Internet costs and lack of telecom competition might get in the way of its big digital plans. When the Philippines takes over the Association of Southeast Asian Nations chairship in 2026, it wants to push for regional digital transformation and stronger supply chains. However, local experts warn that domestic tech issues could hold the country back from maximizing this opportunity.
The reality of the Pinoy digital divide
During a recent economic symposium organized by the Philippine Institute for Development Studies and De La Salle University, policymakers and business leaders pointed out that the country is not fully utilizing its regional partnerships. For instance, APEC Policy Support Unit researcher Sylwyn Caliza Jr. revealed that the Philippines accounted for only about one percent of approved Asia-Pacific Economic Cooperation projects over the last five years, despite plenty of available funding.
Caliza explained that narrowing the digital divide is much more foundational than chasing trends like artificial intelligence. He suggested that the government needs to focus on structural reforms, better market competition, and bringing women, small businesses, and informal workers into the digital economy.
Why our Internet is slow and expensive
The economic stakes are massive. De La Salle University economist Dr. Tereso Tullao Jr. noted that the digital economy contributed roughly 10 percent of the Philippine gross domestic product in 2025, employing around 10.4 million workers. Yet, the information and communications technology sector remains weighed down by limited infrastructure and high costs.
According to Tullao, the core weakness of the local ICT industry comes down to a lack of real competition. It remains incredibly difficult for new players to get a legislative franchise to enter the telecommunications space and build necessary infrastructure. He called for major regulatory reforms to open up the market, improve connectivity, and lower costs for everyday users.
A make-or-break year for regional trade
The 2026 chairship arrives at a critical juncture as the region rolls out its ASEAN Community Vision 2045. Denise Cheska Enriquez, a chief trade-industry development specialist from the Department of Trade and Industry, stated that the country’s priorities include boosting trade, supporting micro, small, and medium enterprises, and accelerating digital integration through frameworks like the ASEAN Digital Economy Framework Agreement.
Isamu Wakamatsu, director-general of the Economic Research Institute for ASEAN and East Asia Collaboration Office, added that global supply chains are facing heavy pressure from geopolitical tensions and rapid technological shifts. To remain a global hub, the region needs better trade facilitation and regulatory harmony.
From the private sector perspective, ASEAN Business Advisory Council Philippines Executive Director Anthony Patrick Chua described the upcoming chairship as a make-or-break year. He emphasized that the ultimate success of these high-level regional initiatives should be measured by how much they actually improve the daily lives of ordinary people.
Pinoys who want to watch the full discussion can check out the symposium playback Online.
