Connect with us

Hi, what are you looking for?

News

Digitalization benefits ESG-related communities, entities — report

THE acceleration of digitalization helps boost environment, social, and government (ESG) related communities and businesses in the Philippines amid the ongoing coronavirus pandemic, according to research firm ESG Intelligence.

According to the report, almost two-thirds of new digital consumers came from non-metro areas in the first half of 2021. Filipino consumers use twice as many digital services as before the pandemic.

The Philippines’ internet economy is also expected to double in value by 2025, the fastest projected growth in Southeast Asia.

“Protracted lockdowns and containment measures across the Philippines during the COVID-19 (coronavirus disease 2019) pandemic encouraged consumers to turn to digital tools for the fulfillment of daily tasks, as well as for work, education and social connection,” it stated.

ESG Intelligence reported that technology also helped micro, small and medium enterprises (MSMEs) maintain operations over the pandemic.

“In this way, increased digitalization can enable equitable development across the archipelago, and looks set to present a sizable growth opportunity over the coming years,” it added.

The report also said that digital finance can enhance process efficiency and widen financial inclusion. “Digital payments can offer greater security, efficiency and revenue opportunities for merchants,” it added.

With regards to consumers, digital payments are seen as a tool to raise financial inclusion, the report stated, citing a study by the Bangko Sentral ng Pilipinas. The central bank also aims for 50% of total retail transaction volume to be digital by 2023.

“Nevertheless, challenges remain. Among these, digital lending options from financial institutions can be limited, with high minimum requirements. Strengthened digital finance infrastructure, including credit risk evaluation as well as rules and regulations, could help overcome this and unlock the ESG-related benefits of digital finance for all stakeholders,” it added.

Apart from increasing the use of digital payments, the pandemic also triggered a review of digital regulation and taxation in the Philippines.

“The pandemic triggered a reevaluation of the cross-border e-commerce tax system. The COVID-19 pandemic increased the use of e-commerce, including for products from overseas. With a relatively high exemption threshold, reducing or abolishing this could help preserve the Philippine VAT base amid VAT and customs-free competition from overseas,” it added. — Luisa Maria Jacinta C. Jocson

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.