eCommerce Philippines Roadmap 2022

1 eCommerce Philippines 2022 RoadmapKey PointsI. The Roadmap Formulation Process Pre CoVid (August 2019 - March 2020) CoVid period (March - December 2020) II. Initial Outputs eCommerce ecosystem & Architecture Strategic Framework Key Message Priorities III. eCommerce Philippines 2022 Roadmap Strategy Map Strategic Initiatives(2020)(2019)(2019)(2017)Do not cite/quote without permission from Philippines Roadmap 2022 The ProcessPre-COVID Period (August 2019 March 2020)Who? Platforms Payment Gateways, Logistics Service Providers, Government, e-Commerce intermediaries, MSMEs, ConsumersHow? Thinking Sessions, FGDs, Brown Bag Brigade Sessions, Stakeholder consultations in the regions, eCommerce Viber communityWhat?

2 Update on PECR 2016-2020; e-Commerce Architecture (operating environment); defined the e-Commerce Ecosystem (stakeholders); eCommerce Philippines 2022 Monitored philippine eCommerce Roadmap 2016-2020 Set the Vision for 2030 Developed the framework Developed the key messagePrivate Sector (Digital platforms, Fintech, Logistics Service Providers, Banks, Non-Financial Institutions, Intermediaries)Public Sector (National Government Agencies, GOCCs, BSP) eCommerce Viber CommunityIt's about not cite/quote without permission from with DTI SecretaryATTENDED 165 Kick-off meeting Aug. 6, 2019 E-COMMERCE Philippines 2022It s about direction setting. We need to build trust between online buyers and online sellers DTI Secretary Ramon M.

3 LopezDo not cite/quote without permission from PaymentLogistics PlatformGovernmentTotalMale98105481 55%Female5784666 45%To t a l1415181001472020 Focus Group Discussions: DICT BSP /Payment Gateways Logistics and Last Mile delivery Platforms Start-up Community PSAF ocus Group Discussions with key players of ecosystemIt s about looking at it through various 147 Focus Group Discussions eCommerce Philippines 2022Do not cite/quote without permission from Group Discussions / Special MeetingsGender GovernmentMale54 Female46 Total100 DOLE Gig economy DICT Infrastructure/cybersecurity BSP with Better Than Cash Alliance (BTCA) philippine Postal Corporation PSA Statistics TESDA -TrainingFGD Held November 29 , At the UP Law Center , BGCIt s about adopting a whole government approach Do not cite/quote without permission from Piracy October 10 Taxation October 8 Consumer Protection October 10 Data Privacy October 15 Intellectual Property October 17 Ease of Doing Business October 21 Male12711211111 Female115524119 Total231316452220eCommerce Brown Bag Brigade SessionsIt s about finding not cite/quote without permission from REPORT CARD*STATUSNO.

4 OF AGENDA ITEMSPERCENTAGE OF COMPLETIONA ccomplished Agenda item has been completed or launched3770%Ongoing Work on the agenda item has begun but has not been engaged1325%For discussion Work on the agenda item has not begun35%To t a l53 100%*E-Commerce Program Office-Department of Trade and Industry as of December 2020It s about reviewing (and monitoring) our past. Do not cite/quote without permission from of Agenda ItemsCompletedOngoing Pending Accomplishment RateInfrastructure332310--- 70%Innovation22 ------100%Investments211---50%Informatio n Flow66------100%Intellectual Capital32 ---167%Integration411225%Implementation and Monitoring321---67%TOTAL533713370%PECR 2016-2020: Assessment ReportNOTE: Done 37 agenda items (70%), Ongoing 13 agenda items (25%), and Pending 3 agenda items (5%).

5 As of December not cite/quote without permission from Period (March December 2020)Objective: Quick sensing on the adoption of internet and use of advanced technologies to ensure continued business activities driving overall survival and growth of the economy during the ECQ Respondents from various industries ( Retail Trade, Logistics, Manufacturing, etc.) Profile of the Respondents: Timeline of the Study: Survey was conducted from April 25, 2020 June 3, 2020 Rapid Assessment StudyRESPONDENTS 1,034 DTI 811 Globe 223 Businesses across industries and asset sizes need greater government support on: internet speed cybersecurity ease of doing business logistics systems and infrastructure.

6 Smaller businesses seek clear checklists of regulations and requirements; need financial support for technology business respondents have access to computers, internet, and eCommerce services, but are NOT maximizing these tools for their convenience and profit-making. 85% w/ computers & smartphones (only 40% satisfied with internet speed and reliability) eCommerce sales: 25% have websites; 25% use eCommerce platforms 72% of logistics coordination done in-house manually (texts, email, calls, paper) Only 10% has invoices suitable for automated processingDo not cite/quote without permission from : Solicit views and business insights of executives from e-Commerce platforms on the state of e-commerce and their outlook on the future of e-commerce in the country.

7 Respondents from Internet Retail, Digital Media, Digital Payments, and Ride Hailing. Profile of the Respondents: Timeline of the Study: (July to October 2020)RESPONDENTS 15(executives from the platforms)Key Informant InterviewsRECOMMENDATIONSS trengthen the country s weak internet infrastructureGrow cashless payments and build more trust in the virtual tradeSpeed up the implementation of the PH Identification System ID (PhilsSys ID)Create a central agency that will oversee all key players in the value chainDo not cite/quote without permission from Survey on Digitalization of MSMEsObjective: Measure the level of digitalization of philippine micro, small and medium enterprises MSMEs based on the 3 categories developed by the ASEAN SME Digitalization study (ie.)

8 Basic, Intermediate, and Advanced), for purpose of policy and program development Profile of the Respondents: Timeline of the Survey: (July to October 2020)RESPONDENTS 400(200 from NCR, 100 from Region 3, 100 from Region 4A)Level-3 Level-2 Level-1 Level-06%21%23%51%LEVELS OF DIGITALIZATIONB usiness EmailNo Digital ToolsBusiness Email & WebsiteBusiness Email, Website, & Advanced ToolsDo not cite/quote without permission from to the country s Gross Domestic Product by 2020 Google Temasek estimates thare in the country's GDP DTI estimates 100,000 Micro, Small, and Medium Enterprises (MSMEs) doing e-commerce*500,000 active online sellers 40% 50% of internet users doing e-commerce60% share of individuals using internet.

9 Based on 2019 UNCTAD B2C ReportFast and competitive internet access Source: Speedtest Global Index (Oct 2020)Mobile Data Global Average: Mbps Philippines : MbpsFixed Broadband Global Average: Mbps Philippines : MbpsCybercrime enforcement and protection (Source: PNP Anti Cyber Crime Group Operational Accomplishment Report 2019)From January to November 2019, a total of 2,187 cases were solved out of 4,795 complaints received registering a Crime Solution the same period, a total of 2437 cases were cleared out of 4,795 complaints received registering a Crime Clearance and connected government (G2G, G2B, G2C, G2E)The Philippines advanced 48 positions in terms of EPI (UN E-Participation Index) ranking from 67th in 2016 to 19th in 2018 out of 193 countries.

10 (Source: DICT E-Government Masterplan 2022) DICT E-Government Masterplan 2022 was launched in June 2019It s about the need to revise the : *estimates only Do not cite/quote without permission from s about creating our new not cite/quote without permission from s ALSO about understanding the e-Commerce ecosystem and architectureE-Commerce architecture starts with having proper infrastructure in place as they enable the appearances of platformsPlatforms such as marketplaces and online retailers easily connect buyers and sellersEnablers make it easy to buyers to purchase and sellers to market. Access enables traffic to be directed to platforms Payment & credit facilitates digital money transaction Logistics provides fast and reliable delivery Training helps nurture the ecosystemBusiness friendly regulations in legal, consumer/data protection.