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 remains behind its Southeast Asian neighbors in critical dimensions 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, improving three notches from its 53rd ranking out of 133 economies in 2024.

Only Singapore

Only Singapore made it to the top GII ranking, which measures innovation performance across around 140 economies and unveils the world’s top 100 innovation clusters.

The GII tracks global innovation trends through investment patterns, technological progress, adoption rates, and socioeconomic impacts, providing a useful resource for government, industry, researchers, and anyone with a stake in developing innovation ecosystems around the world.

PCCI president Enunina Mangio, on Thursday, stressed that even as the Philippines has made strides in digital transformation with rapid growth in digital payments, e-commerce platforms, and online public services, it is still lagging behind Southeast Asian neighbors in critical dimensions of digital adoption, namely infrastructure, business digitization, e-government maturity, and tech talent development.

Take decisive action

She said that as the ASEAN region accelerates toward a digital economy, the Philippines must take decisive action to close the digital gap or risk being left further behind, suggesting that for a digital leap to happen, a robust and inclusive digital infrastructure is badly needed.

“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 stressed.

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

Hence, PCCI’s Director for ICT, Dennis Anthony Uy, stressed that more must be done.

Connectivity a critical infrastructure

“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,” Uy said.

For investments to come in, PCCI called on the country’s policymakers to expand last-mile connectivity in remote areas by directing investment towards underserved areas and critical backbone infrastructure, leveraging public-private partnerships.

Also, they urged the government to accelerate infrastructure rollout by streamlining permitting processes for telecom infrastructure (towers, fiber ducts), enforcing infrastructure sharing policies, and prioritizing national broadband initiatives in the process; foster competition and affordability by implementing policies and spectrum management strategies (to accelerate 5G rollout); support community networks and localized digital hubs, and provide incentives for infrastructure sharing and 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,” said Uy, who is also the chairman of the 51st Philippine Business Conference (PBC&E) with the theme, “The Future is Now: Unleash the Power of Digital Transformation,” happening from 20-21 October at the SMX Convention Center.