Published at 8:10 AM PHT,
by
Dennis Cabrera
Watch Video AI: Operator to Allocator
Digital connectivity → Enables fintech integration → Improves cash flow visibility
→ Lower borrowing costs → Improves capital allocation decisions
Digital infrastructures that improve broadband access and connectivity is one measurable and immediate economic enabler for any MSME growth in the Philippines.
The National Broadband Program (NBP) and related digital connectivity projects are receiving significant funding in to be the economic enabler for MSMEs nationwide. The NBP lays the fiber optic cables and builds cell towers, while the newly approved National Digital Connectivity Plan (NDCP) aims for 100% connectivity in public schools and a 40% to 80% reduction in internet costs.
These faster, more reliable internet speeds will enable
These are all growth levers to pull up in the age of digital connectivity and AI.
Digitalization in business is further supported by the BSP's decision to reduce the target Reverse Repurchase (RRP) rate to 4.25%. This move to ease policy rates aims to boost business sentiment and support a recovery in domestic demand. For NCR MSMEs, this signals a more favorable environment for securing loans to fund any operational automation and digital scaling.
Here is another statistic to fuel MSMEs' informed decision-making for scale:
Digital payments in the Philippines have surged dramatically. They rose from about 1% of retail in to over 52% in . This shows how digital adoption in the country already correlates with economic activity.
Given this progressive scenario, when MSMEs understand and apply basic digital connectivity opportunities early, they can position themselves for better digital sales, automation, and scaling. The result is a stronger competitive advantage in a fast, digitally-accelerating market.
How to be a quality action-taker?
The National Broadband Program (NBP) and related digital connectivity projects are receiving significant funding in to be the economic enabler for MSMEs nationwide. The NBP lays the fiber optic cables and builds cell towers, while the newly approved National Digital Connectivity Plan (NDCP) aims for 100% connectivity in public schools and a 40% to 80% reduction in internet costs.
These faster, more reliable internet speeds will enable
- e-commerce,
- digital marketing,
- online sales,
- digital payments,
- and access to social media marketing platforms.
These are all growth levers to pull up in the age of digital connectivity and AI.
Digitalization in business is further supported by the BSP's decision to reduce the target Reverse Repurchase (RRP) rate to 4.25%. This move to ease policy rates aims to boost business sentiment and support a recovery in domestic demand. For NCR MSMEs, this signals a more favorable environment for securing loans to fund any operational automation and digital scaling.
Here is another statistic to fuel MSMEs' informed decision-making for scale:
Digital payments in the Philippines have surged dramatically. They rose from about 1% of retail in to over 52% in . This shows how digital adoption in the country already correlates with economic activity.
Given this progressive scenario, when MSMEs understand and apply basic digital connectivity opportunities early, they can position themselves for better digital sales, automation, and scaling. The result is a stronger competitive advantage in a fast, digitally-accelerating market.
How to be a quality action-taker?
- Get READY for the physical & digital infrastructure being constructed.
- Learn to SET & integrate gov't & private fintech systems into your cash workflow.
- SCALE your digital storefront with the use of quantitative data & AI analyses.
Digital Payments and E-Commerce Growth
Ever since the COVID-19 pandemic necessitated the use of e-wallets from fintech corporations like GCash and Maya, these transactions have rapidly climbed. The number of e-commerce enterprises that use these payment platforms is projected to rise from 2.4M to 3.5M this year, , as connectivity continues to improve.
With greater access to e-wallets and a decrease in sales transaction fees from more reliable connectivity, more entrepreneurs will be encouraged to consider founding an MSME.
Imagine this.
A new NCR population that has
This will logically produce
A scenario like this makes the vision of the PH as an upper-middle-income country a clearer reality. It positions budding entrepreneurs of younger Filipino generations to make that informed decision to develop their MSME startup idea within an economically enabling ecosystem.
* Get READY for a market share of the 76 million active "digitally-ready" population. *
With greater access to e-wallets and a decrease in sales transaction fees from more reliable connectivity, more entrepreneurs will be encouraged to consider founding an MSME.
Imagine this.
A new NCR population that has
- more broadband access,
- more mobile data coverage,
- more digital payments,
- and greater presence in online marketplaces.
This will logically produce
- increased online sales capability,
- better customer reach,
- lower transaction hassles,
- more organized CRM and invoicing,
- and reliable fulfillment automation.
A scenario like this makes the vision of the PH as an upper-middle-income country a clearer reality. It positions budding entrepreneurs of younger Filipino generations to make that informed decision to develop their MSME startup idea within an economically enabling ecosystem.
* Get READY for a market share of the 76 million active "digitally-ready" population. *
How Government Projects Lower Economic Barriers Today
The government's push to lower economic barriers to progress will definitely benefit not only the general population but also MSMEs and large businesses. This economic thrust includes:
* SET and organize your MSME's cash operations workflow to enable more fintech integration. *
Using digital payment tools like GCash or Maya is the first step toward cash flow visibility.
Leave behind the loss of valuable data in manual ledgers and start building a more formal digitalized version of your MSME's financial system.
- Php 1.5B allocated to the National Broadband Program
- Php 4.8B for additional National Fiber Backbone project (NFB) construction
- Php 5B for free public internet access expansion
- The recent 25bps BSP Policy Rate Cut to lower interest rate barriers for business loans
* SET and organize your MSME's cash operations workflow to enable more fintech integration. *
Using digital payment tools like GCash or Maya is the first step toward cash flow visibility.
Leave behind the loss of valuable data in manual ledgers and start building a more formal digitalized version of your MSME's financial system.
Steps for MSMEs to Harness Digital Connectivity & Scale
- Expand your digital storefront's network of business contacts
- Set up another e-commerce channel (Shopee, Lazada, TikTok Shop, Enstack, etc.)
- Use digital payment tools (GCash, Maya, bank transfers online)
- Automate invoicing & receipts digitally
- Use basic CRM tools for customer retention
- Leverage social media ads tied to online storefronts
With connectivity improvements underway, shift your business mindset now from a manual operator to a capital allocator, using AI-driven data from Google Search Console and Google Analytics 4 to identify the 20% of online sales driving 80% of profit.
And while the policy rate is low, MSMEs who opt for scale can be quality action-takers and create a digitalized cash flow data system to meet the tighter credit standards banks may still apply despite the BSP's easing.
* SCALE your digital storefront and its commercial operations with "holds and cautions". *
Consider insights from monetary and finance professionals as policy conditions evolve. MSMEs must balance new opportunities with calibrated capital decisions to ensure growth earns the right to continue.
Ready. Set. Scale.
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