Improvements needed to boost PHL’s digital competitiveness

BUSINESS LEADERS are calling for improvements in information technology infrastructure and workforce talent development after the Philippine ranking for digital competitiveness dropped two spots in a global digital competitiveness index.

The Philippines placed 57th out of 63 economies in IMD business school’s World Digital Competitiveness Ranking. The country also dropped one spot to 13th place out of 14 Asia-Pacific economies after being overtaken by Indonesia.

In 2019, the Philippines edged up one spot to 55th overall, after a 10-place drop a year earlier.

Each economy is ranked in indicators grouped under three pillars. Under the knowledge pillar, the Philippines plummeted to 62nd after ranking 51st last year. Its ranking in the technology pillar improved to 53rd from 55th, while its place in the future readiness pillar stayed at 54th.

IMD Senior Economist José Caballero in an e-mail on Wednesday said the slip in the Philippines’ ranking reflects a weakening of the talent, training, and education sub-factors under the knowledge pillar.

“The deterioration of these subfactors is mainly driven by decreases in the availability of internationally experienced senior managers, attracting foreign highly skilled personnel and employee training,” he said.

“Other countries in the Southeast Asian region perform, to different degrees, stronger in that ( knowledge) factor.”

European Chamber of Commerce of the Philippines (ECCP) President Nabil Francis said the Philippines’ young and highly literate workforce attracts foreign investors looking for a competitive workforce.

“The ECCP supports measures that will promote reinforcement of skills and capability development, enact an apprenticeship reform bill, and incentivize enterprises which invest in competitive training and upskilling programs to ensure that the dividends of this demographic sweet spot are realized,” he said in a mobile message.