NEDA backs more investments in IT infrastructure, cashless processes

THE National Economic and Development Authority (NEDA) said it supports greater investments in the infrastructure supporting e-commerce and cashless transactions, which allowed many businesses and individuals to function during the lockdowns and beyond.

“Online shopping and marketing platforms will play a bigger role in the new normal as businesses and consumers increase the use of electronic transactions, including cashless payment systems and other financial technology platforms,” NEDA Acting Secretary Karl Kendrick T. Chua said in a statement Monday.

NEDA proposed to “revisit” Republic Act No. 8792 or the Electronic Commerce Act of 2000 in a recent report. It recommended tweaks to make it “more comprehensive in detailing transactions covered by the law, specifying the rights of consumers, and strengthening the penalties imposed on service providers.”

Mr. Chua said more investments are needed in information and communications technology infrastructure to meet the spike in online transactions and to meet heightened consumer expectations for reliable Internet access.

According to a NEDA consumer survey conducted in April, more than half of some 390,000 respondents said their incomes fell after losing their livelihoods while many reported difficulty in accessing goods and services due to business closures, curfews and the ban on public transportation.

NEDA said in its report that meeting the spike in demand for online transactions “will be a challenge” with distancing guidelines still in place and many employees working from home. More businesses are also seeking to expand their online presence as alternative, digital modes to shopping continue to emerge.

“Businesses need to innovate and make full use of technology to resume operations and cater to consumer needs and preferences while still managing risks of COVID-19 infection,” Mr. Chua said, adding that companies will also have to “make online shopping easy, affordable, and secure.”

According to NEDA, the government needs to help them by extending financial and livelihood support for online enterprises and those in the e-commerce supply chain.

Meanwhile, Mr. Chua said financial institutions will also need to improve cybersecurity measures and regulations for retail clients and other businesses as well.

“The passage of the Financial Consumer Protection bill will provide the regulatory framework to protect the interests of financial consumers and reinforce confidence in financial markets,” according to NEDA, which also supports an information and education campaign on the rights of insurance policyholders. — Beatrice M. Laforga