Amid reports that the Philippines has improved its global ranking of world economies based on innovation capabilities, the Philippine Chamber of Commerce and Industry (PCCI) said the country still trails behind its Southeast Asian neighbors in critical areas of digital adoption.

Based on the 2025 Global Innovation Index (GII) by the World Intellectual Property Organization, the Philippines ranked 50th out of 139 economies this year, climbing three notches from its 53rd spot out of 133 economies in 2024.

Only Singapore made it to the top GII ranking, which measures innovation performance across 140 economies and identifies the world’s top 100 innovation clusters. The GII tracks innovation trends through investment patterns, technological progress, adoption rates, and socioeconomic impacts, serving as a resource for governments, industries, and researchers.

PCCI president Enunina Mangio on Thursday said that while the Philippines has made strides in digital transformation through growth in digital payments, e-commerce, and online public services, it lags behind ASEAN neighbors in infrastructure, business digitization, e-government maturity, and tech talent development.

She warned that unless the Philippines takes decisive action, it risks being left further behind. “Broadband access, especially in rural and underserved areas, must be prioritized. If we are to achieve inclusive and sustained growth, local governments, schools, and enterprises operating in rural areas must have the same level of access and reliability as their urban counterparts. And to be competitive, cost and speed must be equivalent or even better than those of our neighbors in ASEAN who are already years ahead of us in MSME digitization, e-commerce adoption, and digital government services,” Mangio said.

PCCI cited legislative reforms and government initiatives such as amendments to the Public Service Act, the SIM Card Registration Law, the Digital Transformation Roadmap, and the National Fiber Backbone as steps in the right direction.

However, PCCI Director for ICT Dennis Anthony Uy stressed that more must be done. “Connectivity must be treated as critical infrastructure, on par with roads, energy, and ports. There should be more strategic investment in both fixed and mobile broadband networks, especially in underserved regions, to enable more Filipinos and businesses to participate in the digital economy,” he said.

To draw more investments, PCCI called on policymakers to expand last-mile connectivity in remote areas by directing resources toward underserved communities and backbone infrastructure, leveraging public-private partnerships. The group also urged the government to streamline permitting processes for telecom infrastructure, enforce infrastructure sharing, accelerate 5G rollout through spectrum management, support localized digital hubs, and provide incentives for open access models.

“Open, affordable, and nationwide connectivity will not just future-proof our economy, it will empower every Filipino to take part in that future starting today,” Uy added. Uy, who also chairs the 51st Philippine Business Conference and Expo themed “The Future is Now: Unleash the Power of Digital Transformation,” said the event will run from October 20 to 21 at the SMX Convention Center.