It’s been a whirlwind year for the Philippine tech industry.
With the many different movements in the world’s technology sector, the Philippines has had to try and play catch-up in a number of different sectors.
From freedom on the Internet and cybersecurity to artificial intelligence and job security, it’s an uphill battle for the Philippines as it grows with the times.
Here’s a roundup of Philippine tech happenings from 2024.
The Philippines is ‘Partly Free’ on the Internet
Freedom House, a political advocacy nonprofit centered on issues of democracy, political freedom, and human rights, rated the Philippines ‘Partly Free’ on its 2024 Freedom on the Net Index, with a score of 60/100 — a further decline from last year’s 61, and 2022’s 65 score. The closer to 100, the more free.
From the period June 1, 2023 to May 31, 2024, Freedom House noted instances of Internet freedom declining during this period. These included cyberattacks against online news groups and instances of red-tagging, or targeting accused people or groups of being affiliated or having links with local communist groups.
Adding to this, 2024’s World Press Freedom Index, as indexed by Reporters Without Borders saw the Philippines ranked two places lower this year — and is now 134th out of 180.
UN calls the Philippines a ‘trouble spot’ for online child abuse
The United Nations, in a profile of Cheng Veniles, who works with law enforcement, prosecution and court officers as part of the UN Office on Drugs and Crime’s initiatives on online child protection, called the Philippines “one of many trouble spots for online child abuse on the internet, a phenomenon which has grown because of the COVID-19 pandemic.”
The issue, while of local concern, is also globally-powered with the Internet fostering a market for online child sexual abuse material.
The Internet Transactions Act becomes law in late 2023
The Internet Transactions Act was signed into law on December 5, 2023. Later this year, its implementation rules and regulations (IRR) were signed, and is one of the priority laws of the administration.
The act, alongside the Public-Private Partnership (PPP) Code of the Philippines shows “the country’s commitment and readiness to accelerate its development and to embrace the digital economy.”
The Internet Transactions Act — Republic Act No. 11967 — seeks to establish a robust e-commerce environment in the country with the help of secure online platforms. This meant the creation of an E-Commerce Bureau under the Department of Trade and Industry, which will handle policy formulations and ensure digital platforms and online merchants, whether local or foreign, are registered accordingly.
In October, President Ferdinand Marcos Jr. also signed a law that imposes the 12% value-added tax (VAT) on nonresident digital service providers, such as Netflix, Amazon, and Shein, which for the consumers, could likely mean higher prices for those services than what we’ve been used to.
“With this law, we say that ‘if your presence in the Philippine market is as real as your profits, then your tax responsibilities should also be equally tangible,’” Marcos said during the ceremonial signing.
Hacking attempts galore
The Philippines is no stranger to cybersecurity issues, whether confirmed or rumored.
The Philippines has had to deal with advanced persistent threats (APTs) reportedly from China, with Department of Information and Communications Technology Undersecretary Jeffrey Ian Dy saying the hacking attempts against the Philippine Coast Guard were similar to a Chinese APT.
Said Dy in June, “The tactics, techniques and procedures, which mean the behavior of the attacker is very, very similar to APT41 which is a Chinese group.”
In July, the Philippine Navy, according to a report from Inquirer net, had to deal with “hundreds” of hacking attempts all while investigating one of its own for allegedly hacking its network and downloading files.
Meanwhile, the National Intelligence Coordinating Agency (NICA) said on November 26 the country was being targeted by Chinese APTs.
Of course, this doesn’t discount the numerous instances of locals trying to get into government websites. These include attacks on the Department of Science and Technology, the portal of the Disaster Risk Reduction and Management Division, the Philippine Navy, and local and international businesses in the country besides.
Adding to that is the rise of fake data breach alerts that might attack well-meaning cybersecurity enthusiasts, as in the case of the fake eGovPH data breach, which Cybercrime Investigation and Coordinating Center Executive Director Alexander K. Ramos calling it “nothing more than a fake hacking claim.”
AI boom affects Philippine work industries
Meanwhile, the biggest boom in tech today — artificial intelligence (AI) — is taking a toll on one of the most prevalent industries in the Philippines: Business Process Outsourcing work.
As a call center hub for the world’s English speaking populace, the Philippines now has to deal with artificial intelligence “helping” monitor the jobs of people trained to care for others over the phone.
AI, acting as a co-pilot for call center agents, is timing, checking, and making sure they are doing their jobs.
“The co-pilot is helpful,” says worker Renzo Bahala in this Rest of World report, “But I have to please the AI. The average handling time for each call is 5 to 7 minutes. I can’t go beyond that.”
“It’s like we’ve become the robots,” he said.
Meanwhile, job security is also on the line as AI streamlines processes and makes some jobs obsolete. Another report mentioned that, alongside a lack of labor protections, entry-level jobs might require a different set of skills than what Filipino workers are preparing themselves for.
More than half of 60 companies surveyed this year by the IT and Business Process Association of the Philippines said they were “actively working” on integrating AI into their workflows, and 10% of the companies said they had fully implemented AI technology.
This change impacts the jobs of customer service or support services, data entry and processing, and quality assurance roles.
“If AI reduces the volume of entry-level roles that BPOs and call centers once provided, what’s next?” asked Boldr founder and CEO David Sudolsky.
While some reckon entry-level roles might lessen, roles requiring better technical skills or comfort with the tools of the day might take over as the prevalent BPO job being needed, requiring a change of skillsets among workers to become hireable.
Adding to that is the reality of the BPO industry being a non-unionized industry in the Philippines.
The government, in a bid to keep the jobs here, “seems to want to keep it that way as a catch to investors,” according to Mylene Cabalona, who leads the BPO Industry Employees’ Network. – Rappler.com