MANILA, Philippines — Several key digital industry associations have expressed their strong support for the Konektadong Pinoy Act, describing it as a crucial legislative reform that will modernize the Philippines’ digital infrastructure and address the country’s connectivity gap.

In a joint statement, signatories from six organizations—including the Global AI Council, Blockchain Council of the Philippines, Data Center Association of the Philippines, Fintech Philippines Association, Cybersecurity Council of the Philippines, and Go Digital Philippines—praised the Act’s forward-looking legal framework.

“By replacing outdated, analog-era regulations with a forward-looking legal framework, the bill will promote competition, streamline the entry of new players, enable infrastructure sharing, and improve spectrum management,” the statement read. “These changes will lower the cost of Internet services, accelerate network rollout, and expand access especially in underserved areas.”

The groups said the Act is a major step toward a more inclusive and competitive digital economy, with benefits for consumers, startups, and small businesses through improved service standards and broader participation in the digital space.

However, the statement also urged Congress to exclude any data localization or sovereignty provisions from the final version of the bill. The signatories warned that mandating data to be stored or processed only within Philippine territory would drive up business costs, disrupt operations, and limit access to technologies such as cloud computing and artificial intelligence.

“This would hurt SMEs, deter investment, and weaken the competitiveness of the Philippine IT-BPM and digital sectors,” they warned.

The groups stressed that data security is not about where data is stored, but how it is protected, pointing to the Philippines’ existing data privacy laws and participation in international frameworks like APEC’s Cross-Border Privacy Rules.

“Localization mandates may even increase cybersecurity risks by hindering coordinated threat detection and response,” the statement noted.

The industry leaders concluded by reaffirming their commitment to work with the government to realize a more connected and digitally empowered Philippines.