The newly installed head of the Philippine Chamber of Commerce and Industry (PCCI) is placing digitalization at the core of his agenda, arguing that stronger connectivity and smarter systems could unlock growth for millions of small businesses—and improve the country’s overall investment appeal.
PCCI president Ferdinand Ferrer said the Philippines’ future competitiveness hinges on whether its micro, small and medium enterprises (MSMEs) can meaningfully participate in the digital economy.
MSMEs account for 97 percent of all businesses nationwide, yet many remain hampered by unreliable and costly internet access.
“The future is digital,” Ferrer said, noting that a large share of MSMEs still lack stable connectivity. “If we improve their economic standing, the country improves,” he added.
Ferrer stressed that digitalization is not just about selling online, but about modernizing how businesses interact with government. Digital systems can reduce human intervention, curb inefficiencies, and promote transparency—key ingredients for improving the ease of doing business and aligning the Philippines with global standards.
Ferrer was candid about the country’s gaps. When asked to rate the Philippines’ ease of doing business, he gave it a four out of ten.
While starting a business has become easier, sustaining one remains difficult due to regulatory inconsistency and high operating costs. Digitalization, he said, could help address these pain points by making rules clearer and processes more predictable.
Connectivity, however, remains a structural challenge. Internet infrastructure in the Philippines is expensive, limiting MSMEs’ ability to fully embrace e-commerce. Without broader access, Ferrer warned, the benefits of digital transformation will remain uneven.
He also flagged cybersecurity as a critical risk. Rapidly connecting over a million MSMEs without adequate safeguards could expose them to scams and cybercrime. “Capacity building on cybersecurity and digital skills must go hand in hand with digitalization,” Ferrer said, calling for closer coordination between government and the private sector.
Despite the challenges, Ferrer acknowledged progress. He said he would have rated the country’s business environment even lower three years ago, but recent reforms and agency-led simplification efforts have begun to move the needle.
Separately, PCCI welcomed the passage of the 2026 General Appropriations Act, backing President Marcos’ veto of P92.5 billion in unprogrammed funds and urging transparency, private-sector consultation, and prudent spending.
The chamber highlighted infrastructure, education, trade competitiveness, and food, water, and energy security as priority areas for sustaining long-term growth.
