Philippines E-Commerce Roadmap 2015 to 2020 - June 30 DRAFT

Enabling Business, Empowering Consumers
1

Enabling Business,
Empowering ConsumersConfidential. For authorized use only.
E-Commerce Definition
ž  Philippines E-Commerce Law – Republic Act 8792.
Passed June 2000.
¡  Any kind of data message and electronic document
used in the context of commercial and non-
commercial activities to include domestic and
international dealings, transactions, arrangements,
agreements, contracts and exchanges and storage of
information.
¡  Electronic transactions made through networking
among banks, or linkages thereof with other entities
or networks, and vice versa.
ž  E-Commerce Back-Office Operations Thrive (now
referred to as Business Process Outsourcing)
2

Enabling Business,
The Philippines’ IT-BPM Industry by Sector
Sources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA
67.0%
18.6%
9.0%
Share of Total PH IT-BPM, 2012
100% = US$13.1 billion
Voice
KPO/Back Office
ITO
HIM
ESO
Animation
Game Dev
1.6%
1.0%
3.5%
0.4%

Enabling Business,
Philippine IT-BPO industry size
2006–2012; US$ billion
x%
YoY Growth
1Philippines IT-BPO market as percentage of global offshore services market, in revenue terms
Sources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA
# FTEs
(~‘000)
236 383 424 527
Global
share1 5% 6% 6% 7% 8%
3.4
4.5
6.1
7.1
8.9
11.0
13.2
2006 2007 2008 2009 2010 2011 2012
34%
17%
25%
24%
FTEs Revenue
(US$M)
Rev %
inc.
fr ’11
Voice BPO 497,000 8,697 18%
Non-voice
BPO/KPO
154,380 2,470 20%
ITO 57,078 1,160 17%
Health Info
Mgt & Care
45,000 460 66%
Engineering
Services
10,836 206 20%
Animation 9,000 132 3%
Game
Development
3,500 50 251%
TOTAL FTEs 776,794 13,174 19%
19%
284 640
9.5%
777
Philippines 2012 Performance
31%
45%

Enabling Business,
Framework
for
the
Promo.on

of
E-‐Commerce
in
the
Philippines*

5
*E-Commerce Office-Department of Trade and Industry, Philippines
“Trust is central
to any commercial
transaction”
I

NF

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A

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E
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O
P
M
E
N
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Enabling Business,
Background
ž Last August 2014, Senator Bam Aquino at the
Senate Hearing on Trade about E-Commerce
Concerns tasked the Department of Trade
and Industry to develop an E-Commerce
Roadmap to fulfill the implementation of the
E-Commerce Law (Republic Act 8792).
ž Meetings began last December 2014 and the
DTI E-Commerce Office is currently working
on completing this roadmap.
6

Enabling Business,
A Joint Project of
WITH THE SUPPORT OF
Philippines E-Commerce Index
Copyright 2014, I-Metrics Asia-Pacific Corporation. All rights reserved.

Enabling Business,
Chart 1: Extent of Online Engagement in the Manufacturing Industry
Overall Index, Weighted to Actual Values
JAN 2015 – MAR 2015 AUG 2013 – MAR 2015

Enabling Business,
Chart 5: Extent of Online Engagement in the Manufacturing
Industry Percentage of Revenues By Sector
Food & Beverage = 23%
Textiles = 39%
Paper = 8%
Publishing, Printing = 19%
Fuel, Chemicals, Pharmaceuticals = 24%
Rubber & Plastic = 19%
Non-Metal Construction Materials = 20%
Basic Metals = 23%
Fabricated Metal = 21%
Machinery & Equipment = 26%
Communication Equipment, Appliances = 40%
Motor & Transport Equipment = 32%
AUG 2013 – MAR 2015
Source: I-Metrics Asia-Pacific Corporation Survey, March 2015
Note: Percentage of revenues derived online are based on interviews with a sample of 174 supply chain
executives of top manufacturing companies based in the Philippines drawn from a probability sample of 600
top manufacturing corporations representing the top manufacturing corporations in the Philippines.

Enabling Business,
Chart 9: Extent of Online Engagement in the Manufacturing
Industry Percentage of Purchases By Sector
Average for Manufacturing
Industry
Food & Beverage = 34%
Textiles = 36%
Paper = 11%
Publishing, Printing =40%
Fuel, Chemicals, Pharmaceuticals = 18%
Rubber & Plastic = 40%
Non-Metal Construction Materials = 30%
Basic Metals = 24%
Fabricated Metal = 28%
Machinery & Equipment = 40%
Communication Equipment, Appliances = 43%
Motor & Transport Equipment = 30%
AUG 2013 – MAR 2015
executives of top manufacturing companies based in the Philippines drawn from a probability sample of 600
top manufacturing corporations representing the top manufacturing corporations in the Philippines.

Enabling Business,
Chart 4: Extent of Online Banking in Manufacturing,
Unweighted
JAN 2015 – MAR 2015 AUG 2013 – MAR 2015

Enabling Business,
Chart 1: Extent of Online Engagement in the Retail/
Wholesale Industry Overall Index, Weighted to Actual Values
JAN 2015 – MAR 2015 AUG 2013 – MAR 2015

Enabling Business,
Retail = 14%
Wholesale = 28%
Chart 15: Extent of Online Engagement in the Retail/
Wholesale Industry Percentage of Revenues By Sector
Average for Retail/Wholesale
Industry
AUG 2013 – MAR 2015
executives of top Retail/Wholesale companies based in the Philippines drawn from a randomly selected
panel of 200 top retail/wholesale corporations.

Enabling Business,
Retail = 26%
Wholesale = 35%
Chart 19: Extent of Online Engagement in the Retail/Wholesale
Average for Retail/Wholesale
Industry
AUG 2013 – MAR 2015
executives of top Retail/Wholesale companies based in the Philippines drawn from a randomly selected
panel of 200 top retail/wholesale corporations.

Enabling Business,
JAN 2015 – MAR 2015 AUG 2013 – MAR 2015
Chart 5: Extent of Online Banking in Retail/Wholesale
(Unweighted)

Enabling Business,
Chart 1: Extent of Online Engagement in the Services Industry
Overall Index, Weighted to Actual Values
JAN 2015 – MAR 2015 AUG 2013 – MAR 2015

Enabling Business,
Construction = 25%
Electricity, Gas, and Water = 3%
Hotels & Restaurants = 9%
Transportation = 31%
Postal, Media & Telecomm = 7%
Banking and Finance = 22%
Provident and Insurance Co’s = 5%
Real Estate = 6%
Miscellaneous Business Activities = 16%
Health and Social Work = 13%
Business & Knowledge Processing = 34%
Chart 5: Extent of Online Engagement in the Services
Industry Percentage of Revenues By Sector
Average for Services Industry
AUG 2013 – MAR 2015
executives of top Services companies based in the Philippines drawn from a probability sample of 300 top
services corporations representing the top services corporations in the Philippines.

Enabling Business,
Chart 5: Extent of Online Engagement in the Services
Average for Services Industry
Construction = 25%
Electricity, Gas, and Water = 14%
Hotels & Restaurants = 43%
Transportation = 30%
Postal, Media & Telecomm = 8%
Banking and Finance = 22%
Provident and Insurance Co’s = 10%
Real Estate = 13%
Miscellaneous Business Activities = 21%
Health and Social Work = 3%
Business & Knowledge Processing = 33%
AUG 2013 – MAR 2015
executives of top Services companies based in the Philippines drawn from a probability sample of 300 top
services corporations representing the top services corporations in the Philippines.

Enabling Business,
JAN 2015 – MAR 2015 AUG 2013 – MAR 2015
Chart 5: Extent of Online Banking in Services, Unweighted

Enabling Business,
Chart 7: E-Commerce Engagement as a Percent of GDP (2014)
Ecommerce Intensity Index:
Purchases of Top Corporations in
Manufacturing, Retail/Wholesale,
and Services Transacted Online as
a Percentage of GDP .
E-Commerce Intensity Index: Revenues
of Top Corporations in Manufacturing,
Retail/Wholesale, and Services Done
Online as a Percentage of GDP

Enabling Business,
Vision: E-Commerce as an
Economic Growth Contributor &
Philippines Competitive
Advantage
Business
Objectives
& Success
Criteria
Fast & Cost
Competitive
Internet Access
50,000 business
do e-commerce
50 million
Filipinos do e-
commerce
E-Government
E-Payment
Implementation
Cybercrime
Enforcement &
Prosecution
E-Commerce
Intensity at 25%
of GDP
GOAL

Enabling Business,
Philippines
ECommerce
Roadmap
Internet
Access
E-Government
Logistics
Consumer
Protection
Law
Enforcement
Tax
system
Electronic
Payment
E-BankingData
Privacy
Information
Security
Policies
Seal of
Trust
Education
Sector
development
Leadership

Enabling Business,
E-Commerce Supply Chain
UPSTREAM
•  Internet
access
•  Logistics
•  E-Payment
•  E-Banking
INTERNAL
VALUE CHAIN
•  Consumer
Protection
•  Law
enforcement
•  E-Government
•  Tax system
for e-
commerce
•  Data Privacy
Commission
•  Policy
Creation
DOWNSTREAM
•  Seal of Trust
•  Education
•  Sector
development
•  Private Sector
Leadership

Enabling Business,
Upstream
Internet Access
Cost
Accessibility
WIFI propagation
Partnership
Logistics
Presence
COD
Taxes
Customs Process
ONLINE
STRATEGY

Enabling Business,
Deliverable – Internet Access
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of Internet
infrastructure
standards &
master plan.
Impacts quality
performance
and pricing
competitiveness
.
Lack of players
offering
Internet
services
Philippine Internet
Broadband
Masterplan (DILG)
Update the
Telecommunications
Law and NTC
Charter.
Fair Competition
Law
Get new telecoms &
VAS players.
2015
2017
2015
continuing
NTC, Telcos,
DTI, DOST,
Congress DILG,
Private Sector
25

Enabling Business,
Deliverable – Logistics
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of
awareness on
Customs taxes
and duties
causes
confusion
among SMEs
buying and
selling products
online.
Philippine National
Trade Repository
Implementation of
National Single
Window Project v.2
(make it mandatory)
Philpost as COD
outlet.
Approve Customs
Modernization Law.
2015 BOC, DTI, DOF,
BIR, DOST-ICTO,
PhilPost, all
concerned
government
agencies,
Couriers,
Private Sector
40 players
(computerizatio
n)
26

Enabling Business,
Deliverable – Logistics
NEED OUTPUT TARGET
DATE
PLAYERS
Various import
permit
documents not
yet automated
for
application /
approval.
Philippines not
fully ready for
cross-border e-
commerce
Import permit
electronic
application /
approval across
agencies to be fully
implemented. (those
that are necessary
only)
Guidelines for cross-
border mutual
recognition of digital
signatures,
electronic
communication &
contracts.
2015 BOC, DTI, BIR,
PhilPost,
Couriers,
Forwarder,
Private Sector
BOC, DTI, DA,
DOH, NTC, DOF,
BIR,
government
agencies,
forwarders,
courier, private
sector27

Enabling Business,
Upstream
E-Payment
Regulation
Arbitration
E-Wallet
Merchant Protection
E-Banking
Access
Security
Regulation
Services
ONLINE
STRATEGY

Enabling Business,
Deliverable – E-Payment
NEED OUTPUT TARGET DATE PLAYERS
Lack of e-
payment & e-
wallet
monitoring
authority for
non-banks
offering non-
legal tender
services
(commodity)
poses risks and
problems to
merchants &
consumers.
E-Payment and
E-Wallet
Guidelines for
Non-Banks
Payment
Gateway
Registration
National Retail
Payment
Systems
Payment
Systems Act
2015 DTI, BIR, BSP,
Private Sector
BSP, DTI,
private sector
29

Enabling Business,
Deliverable – E-Banking
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of E-
Banking
Services
Standards
hampers
adoption of e-
banking by all
banks offering
updated
minimum
services needed
today including
IBFT and
Escrow.
E-Banking Services
Standards
(covering updated
minimum e-
banking services)
2015 BSP, DTI, BAP,
RBAP, Private
Sector
30

Enabling Business,
INTERNAL
Consumer
Protection
E-Promotions
Advertising Claims
Web Presence Guide
Complaints Handling
Law
Enforcement
Complaints Handling
Cooperation
Public awareness
Public Attorneys
ONLINE
STRATEGY

Enabling Business,
Deliverable – Consumer
Protection
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of online process
for consumer
complaints affects
consumer confidence
in doing e-commerce.
Merchant and
Consumer Complaint
Online Dispute
Resolution Process.
2015 DTI,
DOH, DA,
Consume
rNet,
Private
Sector
The Consumer
Protection Act needs to
adjust and recognize
changes in merchant-
consumer landscape
Update the Consumer
Protection Act.
Improve sales
promotion approval
process
Sales Promotion for
Online.
Onine Application for
Sales Promotion.
32

Enabling Business,
Deliverable – Law Enforcement
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of online
process for
cybercrime
reporting and
legal assistance
making it
difficult for
consumers to
file reports and
sustain their
complaint.
Cybercrime Online
Reporting and Legal
Assistance Network
Cybercrime
Investigation &
Coordination Center
National Computer
Emergency
Response Center
2015
2016
2016
PNP, NBI, DOJ,
DOST-ICTO,
National
Security Council
AFP, DTI, BSP,
Private Sector
33

Enabling Business,
INTERNAL
E-Government
E-Payment
Data Privacy
Transparency
Funding
Data Privacy
Commission
Complaint handling
Guidelines
Reporting of breaches, data
privacy compromise
ONLINE
STRATEGY

Enabling Business,
Deliverable – E-Government
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of efficient
e-government
services to serve
stakeholders
making e-
commerce
redundant and
tedious.
Government E-Payment
Implementation Plan (use
of PH-PAY)
Allow government
agencies to purchase
online using credit card
by reimbursement.
Expansion of the National
PKI, Digital Certificate for
Public & Private Sector
2015 DBM, DTI, DOST
ICTO, BSP, DOF,
Bureau of
Treasury,
Congress,
Private Sector
35

Enabling Business,
Deliverable – Data Privacy
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of Data
Privacy
Commission not
giving an
avenue for
complaints to
be filed in
violation of the
Data Privacy
Law
Data Privacy
Guidelines for the
Government
Push for the
creation of Data
Privacy Commission
Data Privacy
Guidelines for the
Private Sector
2015 DTI, DBM,
DOST-ICTO,
DOF, Bureau of
Treasury, BSP,
COA, Private
Sector
DTI, Private
Sector
36

Enabling Business,
INTERNAL
Tax System
Process consultation
Electronic Invoice &
Official Receipt
Tax guidelines
Education
Policy Creation
Sales Promotion Guidelines
Online Advertising Claims
Product Safety Verification
E-Government Fund
ONLINE
STRATEGY

Enabling Business,
Deliverable – Policy Creation
NEED OUTPUT TARGET DATE PLAYERS
Lack of e-
notary
guidelines
affecting
implementation
on e-commerce
for transactions
requiring
notarization
Rules on E-
Notary
2015 Supreme Court,
Department of
Justice, PNP,
NBI, DOJ, DOST-
ICTO, DTI, BIR,
BSP, SEC, DILG,
Private Sector
38

Enabling Business,
Deliverable – Tax System
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of easily
accessible and usable
invoicing and official
receipt tools for use
by freelancers, online
direct sellers, and
small e-commerce
sites online.
Build a System for
Online Sales Invoice
and Official Receipt
Issuance
2015 BIR, SEC,
DTI, Private
Sector
Guidelines for Online
Sales Invoice & Official
Receipt Issuance
Tax simplification Suggest & push
amendments to Tax
Code / Law 39

Enabling Business,
DOWNSTREAM
Seal of Trust
Accreditation Guidelines
Privacy Seals
Security Seals
Verified Seals
Education
E-Learning Adoption
B.S. E-Commerce
Diploma E-Commerce
K-12
ONLINE
STRATEGY

Enabling Business,
Deliverable – Seal of Trust
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of seal
providers to
authenticate e-
commerce sites
offering
products and
services online
Accreditation for
Data Privacy,
Security, and
Identity Verification
Seal Issuers.
2015 Philippine
Accreditation
Bureau, DTI,
BIR, BSP, SEC,
DILG, Private
Sector
Lack of
accredited
digital
signatures
issuers for local
Internet users.
Update Guidelines
on accreditation of
certificate
authorities.
2015 Philippine
Accreditation
Bureau, DTI,
BIR, BSP, SEC,
DILG, Private
Sector
41

Enabling Business,
Deliverable – Seal of Trust
NEED OUTPUT TARGET
DATE
PLAYERS
Consumers need
to know if an
online store is
registered and
can be trusted.
BIR Registered Seal
to be given to
active taxpayers (at
least 1 year). To be
listed online.
2015 BIR, DTI, BSP,
SEC, DILG,
Private Sector
Sellers asking if
online business
requires
separate
registration
BIR Guideline for
Online Business
whether website is
primary office or
branch.
2015 BIR, DTI, BSP,
SEC, DILG,
Private Sector
42

Enabling Business,
Deliverable – Education
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of e-
commerce
education
curriculum to
meet industry
demand on e-
commerce
adoption.
B.S. E-Commerce
E-Commerce
subjects
offering in Colleges
Diploma in E-
Commerce offering
in vocational
schools
E-Commerce
Education in K-12
2015 DTI, CHED,
TESDA, DepEd,
Private Sector
43

Enabling Business,
DOWNSTREAM
Sector
development
Manufacturing
Retail / Wholesale
Services
Start-up
Private Sector
Leadership
Associations
RITECC
Consumer Groups
Online Communities
ONLINE
STRATEGY

Enabling Business,
Deliverable – Sector
Development
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of
programs to
support
businesses in
adopting e-
commerce.
Establishment of E-
Commerce Office in
DTI to develop
programs, issue
policies, resolve
concerns, and monitor
e-commerce adoption
2015 DTI, DBM,
Private Sector
One Stop Shop
Business Center
DTI, SEC, BIR,
DILG, CDA, and
related
agencies.
45

Enabling Business,
Deliverable – Sector
Development
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of digital
certificate
registration
authority to
facilitate in
identity
verification.
Philippines PKI
Forum
•  Encourage growth
in Certificate
Authority and
Registration
Authority entities.
2015 DTI, BIR, BSP,
SEC, DILG,
DOST-ICTO,
Private Sector
Improve Internet
Governance Towards
Trustworthy &
Secure E-Commerce.
46

Enabling Business,
Deliverable – Private Sector
Leadership
NEED OUTPUT TARGET
DATE
PLAYERS
Lack of
organized
multi-private
sector
participation to
work with the
government in
developing and
monitoring e-
commerce
growth in the
country.
Establishment of E-
Commerce
Promotion Council
comprised of the
government and
private sector
whose tasked is to
work on the various
deliverables in this
roadmap.
2015 DTI, DBM, BSP,
DOF, Bureau of
Treasury, BIR,
COA, DOJ, PNP,
NBI, Private
Sector
Associations,
Online
Communities
47

Enabling Business,
Risk Management
48

Enabling Business,
RISK MANAGEMENT
RISK CONSEQUENCE MITIGATION CONTINGENCY ASSIGNED
Internet
speed, cost,
& access not
improving.
Filipinos
unable to do
e-commerce.
Create
Internet
Roadmap
with telcos
Work on how
to encourage
more players
in the
market.
NTC, DTI,
private
sector
Unregulated
payment
gateways,
virtual
currencies
and
electronic
wallet close
shop
affecting
consumers.
Filipinos
merchants,
consumers
unable to get
back their
funds.
Create
payment
gateway,
virtual
currency, and
e-wallet
regulation for
non-bank
entities.
Use legal
means to
penalize and
ensure
consumers
will get their
money back.
DTI, BSP, law
enforcement,
private
sector

Enabling Business,
RISK MANAGEMENT
Philippines
unable to
participate in
cross-border
ASEAN Single
Window
Filipinos
unable to
reap ASEAN
Single Window
opportunities
and
advantages.
Implement
National Single
Window.
Work on policies
for cross border
electronic
communication &
digital certificate
recognition
Work with 3rd
party players
that will
allow private
sector
entities
participate
and meet
requirements
necessary.
DTI, BOC,
DOST,
private
sector
Cybercrime,
data privacy,
consumer
complaint
concerns
increase with
no resolution.
Filipinos
confidence in
doing e-
commerce
low.
Creation of
merchant and
consumer online
dispute
resolution
process.
Cyber Crime
Reporting &
Legal Assistance
Seek cross-
border legal
assistance as
needed for
tracking
cybercrime
perpetrators
outside of
PH.
DTI, BSP,
law
enforcemen
t, DOJ,
private
sector

Enabling Business,
RISK MANAGEMENT
Consumer
information
privacy gets
compromised
Pose damage,
inconvenience
to affected
consumers.
Creation of
Data Privacy
Commission.
DTI to release
data privacy
guidelines on
e-commerce
in government
& private
sector
Apply penalties
and legal
liabilities for
violating Data
Privacy,
Cybercrime, E-
Commerce
Law.
DTI, law
enforcement,
private sector
Unsustained
leadership in e-
commerce
implementation.
Roadmap does
not get
implemented.
Benefits not
realized.
Private-public
sector
partnership
towards
implementation
of e-commerce.
Congressional
Oversight on E-
Commerce to
monitor
roadmap.
Private sector
leadership
proceed with
roadmap
implementatio
n and pushing
government to
adhere to its
commitment.
Private sector
groups.
Government
agencies.
Congressional
Oversight on
E-Commerce
Law

Enabling Business,
Roadmap completion timeframe
ž TWG sign-up / Public document creation for
input elicitation:
¡  Citizen / Business Stakeholders - May 18 / June 1
¡  Government Stakeholders - May 25 and June 8
¡  Webinars for public consultation - May 22, May
29, June 4, June 11
¡  E-Commerce Law anniversary - June 15.
¡  Davao (June 30), Cebu (July 6), Baguio (July 9)
ž Stakeholder commitment support gathering
(June 16 to July 15)
ž Signing of Philippines E-Commerce Roadmap
(July 16)
52

Enabling Business,
For your inputs, contact
ž We need your inputs. Copy of Roadmap at
http://bit.ly/ecomroadmap
ž Submit your inputs to DTI E-Commerce Office
¡  eco@dti.gov.ph
¡  Call 02-9765703
¡  Fax: 02-896-7889
53

Philippines E-Commerce Roadmap 2015 to 2020 - June 30 DRAFT

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Philippines E-Commerce Roadmap 2015 to 2020 - June 30 DRAFT