The Philippines’ information technology and business process outsourcing sector sounded the alarm at the Senate this week, warning that rising cybersecurity threats, mounting tax compliance pressures, and a widening digital skills gap are beginning to strain one of the country’s most dependable growth engines.
At a public hearing convened by Bam Aquino under Senate Resolution No. 253, the IT and Business Process Association of the Philippines (IBPAP) laid out what it described as mounting operational risks that threaten investment inflows and high-value job creation.
IBPAP senior vice president Celeste Ilagan flagged a spike in cybersecurity and cybercrime incidents, warning that digital services exporters remain prime targets as they move up the value chain. She also cited inconsistent local ordinances that clash with national rules, and compliance complexities stemming from issuances of the Department of Labor and Employment.
On the fiscal front, the group pointed to cost pressures linked to BIR RMC 05-2024 and related tax assessment practices, saying uncertainty in tax treatment risks dampening expansion plans.
At the same time, IBPAP underscored delays in rolling out large-scale digital upskilling and reskilling programs backed by the Technical Education and Skills Development Authority— initiatives seen as critical as firms pivot to AI-driven services.
“The hearing provided an important platform to elevate industry concerns and begin shaping solutions through closer collaboration between government and the private sector,” the group said, signaling guarded optimism that policymakers are listening.
Lawmakers, including Senator Risa Hontiveros, engaged the group on education reform and workforce readiness, areas IBPAP said will determine whether the Philippines can hold its global edge in digital services.
While the industry appreciates the effort of the Senate, it said lawmakers should act faster in addressing policy bottlenecks and workforce gaps that risk dulling the country’s competitive edge just as global demand shifts toward higher-value, AI-enabled services.
For a sector long prized for delivering steady jobs, foreign exchange inflows, and investment resilience, reform and rapid coordination are now immediate economic imperatives, not long-term aspirations.
