Philippine IT leaders warn vs. data localization policies

MANILA, PHILIPPINES — Leading IT and business groups in the Philippines have expressed concerns over potential data localization policies, warning of the risks these might pose to the IT and Business Process Management (IT-BPM) sector.
Entities such as the Joint Foreign Chambers (JFC) of the Philippines, US-ASEAN Business Council, IT & Business Process Association of the Philippines (IBPA), Asia Cloud Computing Association (ACCA), and Asia Internet Coalition (AIC) are pushing for the continuation of open data flow policies, highlighting their importance for digital trade and data-centric sectors.
These open policies have been instrumental in boosting the IT-BPM sector, with 2022 revenues hitting $32.5 billion and employment for 1.57 million Filipinos.
IBM Philippines Government and Regulatory Affairs Executive Princess Ascalon forecasts an even brighter future, predicting 1.7 million jobs and revenues exceeding $35.9 billion in the next year. However, she warns that data localization could lead to higher costs and heightened cybersecurity threats.
Echoing these sentiments, Organization for Economic Cooperation and Development (OECD) analyst Janos Ferencz cautions against increased data management costs and security risks. He explained that such restrictions could impede innovation and the benefits of a globalized digital landscape.
Marie Sherylyn Aquia from the Department of Trade and Industry assures that the department champions cross-border data flows. The united front of business entities stresses the need for consistent dialogue with the government, emphasizing policies aligned with international standards to facilitate data access and exchange.
Historically, the Philippines has leaned towards unrestricted data flow in the private sector. Data localization was primarily limited to specific government data under the Cloud First Policy.