High regulation scores stifling digital potential

The government should beef up the country's competition policy to open growth opportunities for businesses and sustain investments in an increasingly digital economy, according to the country's chief economist.

- BY DEXTER BARRO II

With more than half of retail payments now being made digitally, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said there is "room for improvement" in the country's competition landscape to keep pace with this rapid expansion.

Citing data from the Organization for Economic Cooperation and Development (OECD), Balisacan said the Philippines posted one of the highest product market regulation (PMR) ratings in the world, with a score of 2.4 in 2023—higher than the global average of 1.53.

A lower PMR score reflects fewer regulatory barriers and a more competitive market environment.