At the recent VST ECS CXO Summit in Boracay, IT leaders from across the Philippines called for the fast-tracking of a digital sovereignty law, a legislative move that would require personal and enterprise data to be physically hosted within the country.
Across Asia, countries such as China, Singapore, Vietnam, and Indonesia already have similar laws in place. These frameworks ensure that citizens’ data — from financial transactions to healthcare records — remain within national borders. In practice, such laws compel hyperscalers like Google, Microsoft, and AWS to invest in local data centers, creating new jobs in infrastructure, cybersecurity, and cloud engineering.
In contrast, most Philippine data today is hosted offshore — somewhere in the cloud, but not in the Philippines. “Even some government data,” Herns Hermida, Architecture Specialist at CISCO pointed out, “isn’t technically in the country.”
That gap, executives say, is both a national security concern and an economic opportunity. “If the data sovereignty law is approved, it’s good. There will be more jobs for the Filipino people,” said Jimmy Go, President and CEO of VST ECS. “If there’s no data sovereignty law, they won’t come here to invest — because they can serve us from anywhere in the world.”
A law of this kind would not only attract foreign direct investment (FDI) but also spur improvements in power and green energy infrastructure, with hyperscalers funding energy-efficient facilities to meet sustainability goals. It would also mean faster and more reliable data traffic, since more information would circulate within the country instead of routing through international servers.
AI: beyond the hype
The same summit also explored how artificial intelligence is shaping local enterprise strategies — and where the Philippines currently stands in the broader AI curve.
Executives agree that AI adoption in the Philippines is accelerating, but not without growing pains. For most companies, the technology is being used internally to optimize processes, boost employee efficiency, and improve customer engagement. But many leaders believe we’re currently at what Gartner calls the “peak of inflated expectations.”
“We’re still at the peak of inflated expectations,” Hermida added. “A lot of companies are implementing AI projects — and many will fail — because they’re doing it for the sake of doing AI.”
Panelists stressed that the most successful AI rollouts begin with a clear business problem, not a tool in search of a use case. “You don’t implement AI just for the sake of AI. The most important thing is that you really have to identify the problem that you have in your company,” Hermida added.
There’s also a growing recognition that AI transformation is both cultural and technical. “If we don’t have top-down and bottom-up, that’s not going to happen,” said Changming Liu, CEO and Co-Founder of Stellar Cyber. Executive sponsorship must go hand in hand with employee education, ensuring that AI adoption doesn’t stay siloed at the leadership level.
Public-Private alignment
When it comes to collaboration with the government, the private sector appears united in its willingness to help drive the national digital agenda. “Of course, we will support the country,” Go emphasized. “We need to improve the country’s digital infrastructure.”
There is optimism about the President’s personal involvement in digital transformation efforts — viewed as a signal that “digital-first governance” is a national priority. However, many acknowledge that the biggest hurdles to progress aren’t always technical.
“I think resistance to change and maybe budget,” said Hermida. “But the biggest thing is resistance to change.”
Panelists emphasized the need for continuous education within government agencies so that policymakers can make informed decisions about AI, cybersecurity, and data governance. Faster procurement and streamlined budget approvals were also cited as necessary steps for modernization.
