1
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 695 
Introduced by REP. JAVIER MIGUEL “JAVI” L. BENITEZ 
EXPLANATORY NOTE 
We are on the cusp of the Fourth Industrial Revolution. Great advances in 
science and technology are increasingly blurring the boundaries of the digital, 
physical and biological worlds, with enormous impact on the creation of 
economic value and on social relations. It draws endless possibilities and we 
are only beginning to fully comprehend the breadth and depth of how it will 
transform our way of life. 
GPS navigation software that directs you to less congested roads. Autonomous 
robots and voice-activated virtual assistants powered by artificial intelligence. 
Immersive consumer experience through virtual or augmented reality 
technologies. Automated irrigation systems facilitated by sensors and solar 
power. Decentralized digital currency systems supported by blockchain 
technology.  Tissue engineering enabled by 3D printing. Science fiction is fast 
becoming our reality. And these are only the tip of the iceberg.  
The fundamental changes driven by emerging technologies present both 
opportunities and challenges to Filipinos. The use of new technologies can 
increase production and enhance consumer experience. A 2017 Microsoft study 
estimates that digital transformation will contribute $8 billion to or around 40 
percent of the Philippines’ GDP by 2021.1 Another Microsoft survey finds 86 
percent of business leaders believe that digital transformation will enable 
future growth and that data analytics can lead to new revenue streams.2 
Digital-creative economy nexus 
1 Microsoft Asia. (2017). Unlocking the Economic Impact of Digital Transformation. Retrieved from  
https://news.microsoft.com/en-ph/2018/02/14/digital-transformation-contribute-us8-billion-philippines-gdp-2021/ 
2 Microsoft Asia. (2017). Microsoft Asia Digital Transformation Survey. Retrieved from https://news.microsoft.com/en-
ph/2017/02/27/86-of-business-leaders-in-philippines-believe-they-need-to-be-a-digital-business-to-succeed-
microsoft-study/ 
July 1, 2025
8:04 am


 
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Creative industries, for example, stand to benefit from digital transformation. 
Digital technologies are enabling new forms of artistic and creative expression, 
opening new distribution pathways, broadening audiences and markets for 
creative content, and affecting consumption patterns. The United Nations 
Conference in Trade and Development calls creative industries as “a powerful, 
growing economic force” as “it intersects with the digital and sharing economy, 
e-commerce.”3 
 
In the Philippines, export of creative goods and services are valued at $915.45 
million in 2014, an 18 percent increase from $775.83 million in 2005, mainly 
driven by fashion, interior design, toys and jewelry products.4  
 
The National Economic and Development Authority, in its 2018 Socioeconomic 
Report, admits “there is a need to consolidate all creative industry players, 
create opportunities, and develop a pool of creative talent and experts for a 
more inclusive creative economy.”  
 
The Technical Education and Skills Development Authority already provides 
programs to develop technical skills that are relevant to occupations in the 
creative economy. However, the challenge really is mainstreaming digital 
competencies in all technical and vocational education and training programs 
as TESDA recognizes “the increased integration of ICTs in almost every 
industry.”5 
 
Reskilling revolution 
  
Indeed, the digital transformation of production processes and services across 
industries require new skillsets. Automation and augmentation of production 
and service delivery could potentially displace workers without the necessary 
skills. In a study of G20 economies, the World Economic Forum estimates that 
75 million current job roles may be displaced by the shift in the division of labor 
between humans, machines and algorithms. But on the other hand, 133 million 
new jobs, such as data analysts, software developers, and e-commerce and 
social media specialists, may emerge.6 
 
While digital transformation of businesses in the Philippines is only starting to 
take off, with only 32 percent of business leaders having a full digital 
transformation strategy7, it is crucial  
 
3 UN Conference on Trade and Development. (2018). Creative Economy Outlook.  
4 Ibid. 
5 TESDA. (2019). Pagkamalikhain: The Philippine Creative Industries in the TVET Perspective (Labor Intelligence 
Report 5/2019). 
6 World Economic Forum. (2018). Future of Jobs Report. Retrieved from 
https://www.weforum.org/agenda/2018/09/future-of-jobs-2018-things-to-know/ 
7 Microsoft Asia. (2017). Microsoft Asia Digital Transformation Survey. Retrieved from https://news.microsoft.com/en-
ph/2017/02/27/86-of-business-leaders-in-philippines-believe-they-need-to-be-a-digital-business-to-succeed-
microsoft-study/ 


 
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that the Government facilitates the reskilling of the Filipino workforce so they 
can adapt to the demands of a digital economy.  
 
A parallel reskilling revolution is necessary to harness the benefits of the Fourth 
Industrial Revolution. And workers are already clamoring for more 
investments in digital skills development. A 2017 Microsoft study finds 47 
percent of workers expect leaders to close the digital skills gap.8 
 
A reskilling revolution calls for the development not only of technical skills to 
operate or design new technologies but also of human skills such as critical 
thinking, creativity, originality and initiative, complex problem-solving, 
flexibility, and emotional intelligence.9 The development of these competencies 
must be integrated in our education systems guided by a standards-based 
framework. This bill references the UNESCO Global Framework of Reference 
on Digital Literacy Skills, UNESCO Digital Kids Asia Pacific Framework for 
Education 
and 
the 
Digital 
Skills 
Toolkit 
of 
the 
International 
Telecommunications Union to guide the formulation of standard learning 
outcomes across different modalities of learning. 
 
This bill also proposes a competency framework for teachers and trainers as 
part of continuing professional development. They must harness digital 
technologies to augment or enhance learning activities. For this purpose, we 
should adopt the UNESCO ICT Competency Framework for Teachers. 
 
Smart governance 
 
Needless to say, the scale of digital transformation of local economies and 
learning environments rests in the level of commitment and performance of the 
Government to build backbone ICT infrastructure to increase access to fast and 
affordable Internet. In this aspect we are lagging.    
 
The Philippines ranked 63rd out of 100 countries in the 2020 Inclusive Internet 
Index which assesses Internet availability, affordability, relevance and 
readiness. “The Philippines is among Asia’s weaker countries in advancing 
internet inclusion, ranking 19th out of 26 nations in the region. Affordability 
levels of smartphones and mobile data are low in the global context, and mobile 
users are burdened by relatively slow download and upload speeds,” the Index 
said.10  
 
 
8 Microsoft Asia. (2017). Microsoft Asia Workplace 2020 Study. Retrieved from https://news.microsoft.com/en-
ph/2017/10/12/new-culture-work-ph-needed-succeed-digital-transformation/#_ftn1 
9 World Economic Forum. (2018). 5 things to know about the future of jobs. Retrieved from 
https://www.weforum.org/agenda/2018/09/future-of-jobs-2018-things-to-know/ 
 
10 Flores, Helen. (2020, March 3). Philippines ranks 63rd in inclusive internet index. Philippine Star. Retrieved from 
https://www.philstar.com/headlines/2020/03/03/1997646/philippines-ranks-63rd-inclusive-internet-index 
 


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The UN Broadband Commission for Sustainable Development has set 
ambitious targets for 2025, which includes: 
1. By 2025, Broadband Internet user penetration should reach 65% in
developing countries;
2. By 2025, entry-level broadband services should be made affordable in
developing countries at less than 2% of monthly Gross National
Income (GNI) per capita;
3. By 2025, 60% of youth and adults should have achieved at least a
minimum level of proficiency in sustainable digital skills; and,
4. By 2025, overcome unconnectedness of Micro-, Small- and Medium-
sized Enterprises (MSMEs) by 50%, by sector.
Achieving these will require a whole-of-government approach. Historically, 
ICT policies and programs have been developed in silos. It is imperative that 
government agencies complement each other and operate under a single 
framework. For this purpose, this bill aims to establish a coordinating body to 
ensure cohesiveness of government policy to accelerate and harness the digital 
revolution to transform Philippine cities into smart cities. The bill empowers 
the National Digital Council to formulate strategies for skills development, 
digital-creative economy development and smart city development, as well as 
for backbone ICT infrastructure development. 
A smart city represents the totality of digital transformation for the benefit of 
the people. The bill adopts the smart city framework developed by Dr. Rudolf 
Giffinger and his team in the Vienna University of Technology, which 
highlights collaboration and innovation among government, business, 
academia and citizens. A smart city leverages new technologies to drive 
sustainable solutions to urban problems, such as poverty, traffic congestion, 
pollution, and criminality.  
Digital transformation for “new normal” 
The COVID-19 pandemic has exposed economic and social inequalities, 
particularly in urban areas, that make populations vulnerable. Lockdowns 
have put economies in coma; businesses, particularly, MSMEs are forced to lay 
off workers or cut wages to survive. Unemployment threatens to sink families 
into extreme poverty. School shutdowns have interrupted learning. 
Digital transformation is the solution.  
Enterprises can leverage digital technology to reach and engage customers and 
clients, and can improvise processes to drive productivity. Digital technology 
can enable flexible or distance learning. 


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But how can the Philippines harness the benefits of digital transformation if we 
do not address the digital divide? 
We must accelerate the digital revolution to foster economic resilience and 
competitiveness but also, more crucially, social equity. The Government should 
be in the frontlines of building not only a smart future but a future where no 
one is left behind. 
Our Constitution heralds the role of technological innovation to promote 
national development. We need to rise up to the challenge and help our people 
develop the necessary skills and innovate to adapt, compete and flourish in a 
brave new world.  
In view of the foregoing, the immediate approval of this bill is earnestly sought. 
JAVIER MIGUEL L. BENITEZ 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 695 
Introduced by REP. JAVIER MIGUEL “JAVI” L. BENITEZ 
AN ACT PROVIDING FOR A COMPREHENSIVE POLICY TO ACCELERATE 
AND HARNESS THE DIGITAL REVOLUTION TO 
FOSTER 
INCLUSIVE ECONOMIC GROWTH, SUSTAINABLE DEVELOPMENT 
AND PARTICIPATORY GOVERNANCE 
ARTICLE I 
STATE POLICIES AND OBJECTIVES 
SECTION 1. Short Title. – This Act shall be known as the “Digital 
Philippines Act”. 
SEC. 2. Declaration of State Policy. The State recognizes the critical role of 
science, technology and innovation in fostering inclusive and sustainable 
economic growth, and human development. The State shall take appropriate 
steps to enable all citizens, regardless of age, sex, gender, income class, 
ethnicity, language, religion, or ability, to access and use information and 
communication technologies (ICT), and acquire knowledge, skills and values 
to adapt to the demands of a knowledge economy and digital society.  
The State shall accelerate and harness advance digital technologies and ICT-
enabled innovations to maximize the benefits and address the challenges of the 
Fourth Industrial Revolution. The State shall build an enabling ICT ecosystem 
to reengineer production and management systems towards sustainability, 


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enhance production, generate employment, and facilitate interaction between 
producers and consumers. The State shall promote digital transformation at all 
levels of government to streamline and speed up the delivery of government 
services. 
SEC. 3. Objectives. This Act aims to: 
a) Recognize the significant contribution and vast potential of digital
innovation and creative industries to drive economic growth, and enrich
our human and cultural capital;
b) Provide a strategic vision, and comprehensive and cohesive framework
to guide anticipatory planning and investment programming to support
digital innovation and transformation;
c) Adopt a whole-of-government approach in promoting digital
innovation and transformation in business and government;
d) Rationalize ICT-enhanced and ICT sector-specific interventions to
prevent duplication and ensure complementarity of services, and
improve efficiency in its delivery;
e) Stimulate growth and enhance competitiveness and resilience of service
and creative industries by promoting digitization of products and
services;
f)
Establish a framework for development of digital skills of all learners in
diverse settings and throughout life; and,
g) Provide the backbone infrastructure to bridge the digital divide and
enable and support ICT innovation and digital inclusion.
SEC. 4. Definition of Terms. As used in this Act: 
a) Digital transformation refers to the strategic adoption of digital
technologies to improve processes and productivity, deliver better
learning, customer and employee experiences, manage business risk,
and control costs;
b) Digital inclusion refers to the ability of individuals and groups to access
and use information and communication technologies. Digital inclusion
encompasses not only access to the Internet but also the availability of
hardware and software; relevant content and services; and training for
the digital literacy skills required for effective use of information and
communication technologies;


 
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c) Digital citizenship refers to the ability to find, access, use and create 
information effectively; engage with other users and with content in an 
active, critical, sensitive and ethical manner; and navigate the online and 
ICT environment safely and responsibly, being aware of one’s own 
rights; 
 
d) Digital literacy refers to the ability to access, manage, understand, 
integrate, communicate, evaluate and create information safely and 
appropriately through digital technologies for employment, decent jobs 
and entrepreneurship. It includes competencies that are variously 
referred to as computer literacy, ICT literacy, information literacy and 
media literacy; 
 
e) Creative industries refer to the cycles of creation, production, 
promotion, distribution and/or commercialization of goods, services 
and activities that use creativity, cultural and intellectual capital as 
primary inputs. They constitute a set of activities, focused on but not 
limited to arts, potentially generating revenues from trade and 
intellectual property rights. They comprise tangible products and 
intangible intellectual or artistic services with creative content, economic 
value and market objectives. Creative industries are: 
 
1) Music and Performing Arts 
2) Film, Television, Radio and Photography 
3) Advertising and Marketing 
4) Software Development, Animation and Game Development 
5) Writing, Publishing and Print Media, 
6) Museums, Galleries and Libraries, 
7) Heritage Crafts and Activities, including Gastronomy, 
8) Architecture and Interior Design, and, 
9) Visual Arts, and Product, Graphic and Fashion Design. 
 
f) 
Decent work refers to work that is productive and delivers a fair income, 
security in the workplace and social protection for families, better 
prospects for personal development and social integration; 
 
g) 
Informal learning refers to forms of learning that are intentional or 
deliberate but are not institutionalized. They are less organized and 
structured than either formal or non-formal education. Informal 
learning may include learning activities that occur in the family, in the 
work place, in the local community, and in daily life, on a self-directed, 
family-directed or socially-directed basis; 
 
h) 
Non-formal education refers to education that is institutionalized, 
intentional and planned by an education provider. The defining 


 
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characteristic of non-formal education is that it is an addition, alternative 
and/or a complement to formal education within the process of the 
lifelong learning of individuals. It caters for people of all ages, but does 
not necessarily apply a continuous pathway-structure; it may be short in 
duration and/or low intensity, and it is typically provided in the form 
of short courses, workshops or seminars. Non-formal education can 
cover programs contributing to adult and youth literacy and education 
for out-of-school children, as well as programs on life skills, work skills, 
and social or cultural development; 
 
i) 
Reskilling refers to learning new sets of competencies to transition to a 
completely new role;  
 
j) 
Upskilling refers to learning new competencies to stay in current role, 
due to the change in skills required, or adding certain competencies for 
career progression; 
 
k) 
Occupational mobility refers to the ease at which a worker can leave one 
job for another in a different field; 
 
l) 
Flexible learning refers to a set of educational approaches and systems 
concerned with providing learners with increased choice, convenience, 
and personalization to suit their needs. In particular, flexible learning 
provides educational choices about where, when, and how learning 
occurs, by using a range of digital and non-digital technologies to 
support the teaching and learning process; 
 
m) 
Learner-centered pedagogy refers to a pedagogical approach that 
generally draws on learning theories suggesting learners should play an 
active role in the learning process. Students therefore use prior 
knowledge and new experiences to create knowledge. The teacher 
facilitates this process, but also creates and structures the conditions for 
learning; 
 
n) 
Open educational resources (OER) refer to any educational resources 
(including curriculum maps, course materials, textbooks, streaming 
videos, multimedia applications, podcasts, and any other materials that 
have been designed for use in teaching and learning) that are openly 
available for use by teachers and students, without an accompanying 
need to pay royalties or license fees. An OER is an educational resource 
that incorporates a license that facilitates reuse, and potentially 
adaptation, without requiring that permission first be requested from 
the copyright holder; and, 
 


 
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o) 
Community learning center is a physical learning space that promotes 
human development by providing opportunities for lifelong learning to 
all people in the local community. CLCs support empowerment, social 
transformation and improvement of the quality of life of the people. The 
main functions of CLCs are to provide: i) access to digital technologies, 
ii) education and training, iii) community information and resource 
services, iv) community development activities, and v) co-ordination 
and networking, to promote human development and lifelong learning. 
 
ARTICLE II 
NATIONAL DIGITAL COUNCIL 
 
SEC. 5. National Digital Council. There is hereby created a National Digital 
Council, under the administrative supervision of the Office of the President, to 
formulate strategies and coordinate government policies and programs to 
foster digital inclusion and maximize the economic and social benefits of digital 
and data-driven technologies to promote robust economic growth and 
resilience, sustainable development, and participatory governance.  
 
SEC. 6. Composition. The National Digital Council, hereinafter referred to 
as the Council, shall be composed of a Chairperson, with the rank of Secretary, 
appointed by the President of the Philippines, and the following: 
 
a) Secretary of the Department of Information and Communication 
Technology, as Vice Chairperson; 
b) Secretary of the National Economic and Development Authority; 
c) Secretary of the Department of Finance; 
d) Secretary of the Department of Trade and Industry; 
e) Secretary of the Department of Labor and Employment; 
f) Secretary of the Department of Education; 
g) Secretary of the Department of Science and Technology; 
h) Secretary of the Department of Agriculture; 
i) Secretary of the Interior and Local Government; 
j) Chairperson of the Commission on Higher Education; 
k) Director General of the Technical Education and Skills Development 
Authority; 
l) Chairperson of the National Commission for Culture and the Arts; 
m) five (5) private sector representatives. 
The Chairperson and the five (5) private sector representatives, who shall be 
appointed by the President, shall be citizens and residents of the Philippines, 
of proven competence, integrity, probity and independence. They must have 
distinguished themselves in government, the private sector or the academe in 


 
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any of the following fields: computer science, engineering, mathematics, 
economics, business and industry, and education. 
 
Department Secretaries may designate an Undersecretary, whose portfolio 
covers promotion of innovation and human capital development, as his/her 
representative, who shall sit in a permanent capacity, and their acts shall be 
considered the acts of their principals. 
SEC. 7. Powers and Functions of the Council. – The Council shall exercise the 
following powers and functions: 
 
a) Formulate five-year and ten-year digital inclusion plans and strategies 
to accelerate and harness advances in digital technology to increase 
competitiveness of service and creative industries, and micro, small and 
medium enterprises (MSMEs), and Filipino workforce in a global and 
digital economy, promote sustainable production, enhance value 
creation, improve efficiencies in value chains, optimize business 
processes and choices, and build long-term dynamism and resilience 
against future shocks and crises; 
 
b) Identify and recommend innovative service and creative industries to 
the Board of Investments and Fiscal Incentives Review Board for the 
grant of performance-based and time-bound tax and duty incentives 
and deductions; 
 
c) Harmonize and rationalize policies and programs for the promotion of 
digital innovation in business and government, and development of 
digital competencies of workers, teachers and learners under a 
standards-based framework; 
 
d) Ensure the affordability and sustainability of digital skills development 
programs; 
 
e) Advise the President with respect to policies and programs to catalyze 
digital 
transformation 
of 
enterprises, 
education 
systems 
and 
government service; 
 
f) Strengthen international linkages and partnerships to share best 
practices in accelerating digital innovation and transformation;  
 
g) Call upon or mobilize any department, bureau, office, agency, or 
instrumentality of the government, including government-owned and -
controlled corporations and local government units, to extend full 
support towards the attainment of the objectives of this Act; 
 


 
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h) Create ad hoc committees or technical working groups consisting of 
relevant national government agencies and stakeholders that address 
specific concerns relative to the implementation of this Act; 
 
i) Monitor the implementation of policies and programs and performance 
of implementing agencies vis-à-vis standards and targets set forth in this 
Act; and, 
 
j) Perform other tasks that the President may direct. 
SEC. 8. Secretariat. A Secretariat is hereby created as a separate unit of the 
Presidential Management Staff to provide technical, administrative and 
operation support to the Council. The Secretariat shall be headed by an 
Executive Director appointed by the President. The Executive Director shall 
have the same qualifications as the Chairperson and the private sector 
representatives. 
 
 
ARTICLE III 
NATIONAL DIGITAL SKILLS DEVELOPMENT STRATEGY 
 
SEC. 9. National Digital Skills Development Strategy. The Council shall 
formulate a National Digital Skills Development Strategy, hereinafter referred 
to as NDS, to provide long-term vision and direction to promote digital 
citizenship and ensure that all persons understand and can take advantage of 
the educational, economic and social opportunities and benefits of advanced 
information and communication technologies. The NDS shall: 
 
a) Identify and analyze current and emerging trends and changes in 
technology, trade, consumption, demography and health that impact 
labor markets; 
 
b) Define the skills or competencies necessary to adapt, compete and 
flourish in a knowledge-based and digital economy and society, 
including but not limited to the competencies identified under Section 6 
of this Act; 
 
c) Determine gaps in existing policies, plans, programs and curricula to 
promote and support ICT innovation and digital transformation; 
 
d) Establish goals for digital skills development in basic education, tertiary 
education, technical and vocational education and training (TVET), and 
non-formal education for out-of-school children and youth, and adults, 
and open opportunities for digital skills development through informal 
learning; 
 


 
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e) Create a framework for the development of digital competencies of 
teachers and trainers, guided by the principles of continuing 
professional development and lifelong learning; 
 
f) Provide for opportunities for the upskilling or reskilling of workers to 
build occupational mobility and enable transition from jobs that require 
manual or physical labor, administrative and management skills to 
work in industries that require technical skills to use, operate and 
manage automated or digital technology-augmented systems through 
lifelong learning; 
 
g) Establish goals for the development of skills for digital entrepreneurship 
and lifelong learning; 
 
h) Provide for a framework of recognition, validation and accreditation of 
digital competencies obtained through non-formal or informal learning; 
 
i) Establish a framework for job placement to help graduates of digital 
skills education and training programs find decent work;  
 
j) Identify benchmarks, targets and indicators for the level of proficiency 
in digital skills of key cohorts, adopt best practices in digital 
transformation in other countries, and provide for its periodic 
monitoring and review; and, 
 
k) Provide for mechanisms for collaboration between the government and 
the private sector to broaden access to and ensure the affordability and 
sustainability of digital skills development programs. 
 
SEC. 10. Digital literacy framework. The Department of Education, 
Commission on Higher Education, Technical Education and Skills 
Development Authority and other government agencies implementing sector-
specific, non-formal skills development programs shall integrate in the 
curricula and design of the K-12, the Alternative Learning System (ALS), 
general education programs of higher education institutions, TVET and other 
training programs, and develop, in consultation with the private sector, 
modules on the following competence areas: 
 
a) ICT literacy – to identify, use, operate and manage ICT hardware and 
software; 
 
b) Information and data literacy – to search, retrieve, navigate, analyze, 
interpret, critically evaluate, organize, store, manage and utilize data, 
information and digital content effectively to make informed decisions; 
 


 
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c) Communication and collaboration – to be able, using digital technology, 
to interact, communicate, share and co-create content, and collaborate 
with people; to participate in social activities; to recognize, seek out and 
act on opportunities for social influence; and to demonstrate and adapt 
netiquette or ethical and courteous behavior, and navigate and bridge 
cultural and generational divides in digital environments; 
 
d) Creativity, innovation and problem-solving – to represent and express 
one’s identity; create, edit and curate digital content in different formats; 
to modify, improve, elaborate and integrate data, information and 
content into an existing body of knowledge; understand how copyright 
and licenses apply to data, information and content; to identify, assess 
and troubleshoot technical problems when operating digital devices and 
navigating digital environments; to develop computational thinking 
and be able to understand and break down a complex problem into 
logical and sequential components, and present, create and design 
solutions transmutable into human and/or computer systems; to be able 
to code and/or design and develop computer programs; to identify, 
evaluate, select and use digital tools to solve technical, conceptual and 
real-world problems, create new bodies of knowledge, and innovate 
processes and products;    
 
e) Digital safety and cyber-security – to protect devices, content, personal 
data, privacy, reputation, and physical and mental health in digital 
environments; to be able to use and share personally identifiable 
information protected by safety and security measures; to understand 
risks and threats in digital environments; to know and understand legal 
rights and obligations, and privacy policies within global and local 
contexts;  
 
f) Career-related competencies – to identify, assess and understand where 
one’s own digital skills need to be improved or updated, and recognize, 
seek out and act on opportunities for self-development or self-
improvement to meet the demands of a digital economy; to operate 
specialized digital technologies and to understand, analyze and 
evaluate specialized data, information and digital content for a 
particular field; and, 
 
g) Digital emotional intelligence – to recognize, navigate and express 
emotions in digital environments, which require self-awareness, self-
regulation, self-motivation, respect for diversity, conflict management 
and empathy.  
 
SEC. 11. Digital competency framework for teachers and trainers. The 
Department of Education, Commission on Higher Education, Technical 


 
15
Education and Skills Development Authority and other government agencies 
implementing sector-specific, non-formal skills development programs shall 
formulate a uniform framework to upskill teachers and trainers to utilize 
digital technologies to enable innovative pedagogies and enhance learning 
environments. Aforesaid agencies shall develop effective and appropriate 
modules to develop the following proficiencies of teachers and trainers: 
 
a) Knowledge acquisition – to develop basic digital literacy and digital 
citizenship skills, and to select and use appropriate instructional 
software to complement curriculum objectives, assessment approaches, 
and a variety of teaching methods; 
 
b) Knowledge deepening –to utilize digital technologies, such as 
visualization, simulation and data analytics tools, to structure and 
facilitate dynamic, collaborative and student-centered activities to 
understand concepts and relationships in real-world situations, and 
apply the same to create solutions; and, 
 
c) Knowledge creation – to strengthen self-awareness and self-
improvement to contribute to knowledge society, and to design ICT-
enabled or -enhanced activities to engage students in knowledge 
creation 
and 
innovation 
through 
complex 
problem-solving, 
communication, collaboration, experimentation, critical thinking and 
creative expression.  
Implementing agencies shall develop diagnostic tools to evaluate the digital 
competencies of teachers and trainers. The recognition, validation and 
accreditation of digital competencies shall be integrated into the Philippine 
Qualifications Framework for continuing professional development as 
provided in Republic Act No. 10697. 
 
SEC. 12. Alternative modes of learning delivery. Implementing agencies of 
digital skills development programs shall take advantage of flexible learning 
methodologies and learner-centered pedagogies, and make available open 
educational resources to increase access to digital skills development modules. 
 
SEC. 13. Private sector participation in digital skills development. The State 
shall encourage employers to provide, where necessary, their employees access 
to educational and training opportunities to develop digital literacy skills. An 
employer may develop, in consultation with their employees and consistent 
with the digital skills framework provided in Sec. 10 of this Act, and implement 
in-house training programs for their employees, or may enroll their employees 
in digital skills development programs of accredited private training providers, 
at no cost to the employee. 
 


 
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Workers may enroll in a private skills development program of their choice to 
complement the education and training provided for by their employers. The 
Council shall formulate a voucher subsidy program for all eligible workers to 
defray the cost of fees charged by the private training provider.  
 
For this purposes, the Council shall establish a uniform system of registration 
and accreditation of private training providers, and regulation of the 
imposition and collection of training fees to ensure the reasonableness and 
appropriateness of the same. 
 
SEC. 14. Community learning centers. There shall be established at least one 
(1) community learning center (CLC) in every municipality and city in the 
Philippines which shall make available digital devices equipped with 
appropriate software and stable Internet connection to provide people access 
online resources and content, and enable them to develop skills and create new 
content or knowledge; Provided, That additional learning centers shall be 
established such that there is one learning center per 50,000 persons in every 
city and every municipality with a population of more than 100,000 persons; 
Provided, further, That existing CLCs, and public libraries and reading centers, 
constructed pursuant to Republic Act No. 7743, shall be upgraded; Provided, 
finally, That the CLC shall be constructed in geographically equitable and 
accessible locations, and in compliance with relevant building standards and 
specifications, including the requirements to support or enhance the mobility 
of persons with disability and senior citizens. 
 
The Council, through its Secretariat and relevant Member Agencies, shall 
undertake the construction, repair and rehabilitation of community learning 
centers, and the installation and configuration of ICT hardware and software 
therein; Provided, That local government units shall provide the site for CLCs 
and shall undertake its operation and maintenance. Local government units 
may allocate such funds necessary for the operation and maintenance of CLCs 
from the Special Education Fund, upon approval and authorization of the Local 
School Board.     
 
SEC. 15. Recognition, validation and accreditation of competencies. Pursuant 
to Sec. 9 (h) of this Act, the Council shall formulate guidelines for recognition, 
validation and accreditation of competencies and learning outcomes obtained 
in non-formal and informal digital skills development programs. Inasmuch as 
Republic Act No. 10647 provides for a ladderized education system that 
enables transition and progression of students between TVET and higher 
education, the Council shall develop equivalencies for the competencies and 
outcomes of sector-specific non-formal skills development programs and 
informal learning, and integrate the same in the Philippine Qualifications 
Framework. 
  


 
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SEC. 16. Education to employment. Digital skills development programs 
shall include a presentation of pathways for students after graduation from the 
program. Providers of digital skills training shall formulate and implement job 
placement programs to assist graduates find decent work, and enable viable 
and desirable job transition. For this purpose, the Council shall strengthen 
academe-industry linkages. 
 
ARTICLE IV 
PHILIPPINE DIGITAL ECONOMY STRATEGY 
 
SEC. 17. Philippine Digital Economy Strategy. The Council shall formulate 
the Philippine Digital Economy Strategy, hereinafter referred to as PDES, to 
accelerate and harness digital innovation to transform major industries and 
enhance their competitiveness and resilience. The PDES shall:    
 
a) Identify, measure and analyze current and emerging trends and changes 
in technology, culture, trade, demography, health and climate that 
impact consumption, supply chains, and labor markets; 
 
b) Determine the physical, technical and investment requirements to 
increase access of the population to affordable and high-speed Internet 
and ensure the equitable geographic distribution of backbone ICT 
infrastructure; 
  
c) Provide a framework for the utilization of digital technologies, such as 
but not limited to robotics, artificial intelligence, Internet of Things and 
interoperable systems, cloud computing, data analytics, three-
dimensional printing, and digital payment systems, by businesses to 
augment or automate business analytics, production, content creation, 
marketing, trade and financial services; 
 
d) Determine the need for upskilling and reskilling of current and future 
workforce to enable job transition and occupational mobility; 
 
e) Promote innovative and flexible business models that utilize digital 
technologies for personalization and interactive tactics, such as 
immersive consumer experience and user-generated content, to 
penetrate markets; 
 
f) Consolidate and streamline registration and regulatory structures and 
procedures, and rationalize the grant of assistance and incentives to 
MSMEs, the business processing outsourcing sector, creative industries, 
startups and agro-enterprises, as provided by various laws, to minimize 
redundancies; 
 


 
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g) Identify a multidisciplinary research and development to support and 
sustain digital innovation; and, 
 
h) Establish benchmarks, targets and indicators to guide periodic 
monitoring, review and updating. 
SEC. 18. Digital-creative economy nexus. The National Commission for 
Culture and the Arts and its attached agencies, the Design Center, the Film 
Development Council of the Philippines, Movie and Television Review and 
Classification Board, Optical Media Board, and the National Book 
Development Board shall establish, as a component of the National Digital 
Economy Strategy, programs that will leverage digital technologies to enable 
innovative content creation stimulate growth of creative industries, and 
promote Filipino talent and creative products, with distinctive design that 
represents our rich cultural heritage and identity, in domestic and international 
markets.   
 
SEC. 19. Integrated Performance and Incentive Framework. The Council shall 
establish and recommend uniform criteria to the Board of Investments and 
Fiscal Incentives Review Board for the evaluation of qualification of businesses 
utilizing digital technology to avail tax and duty incentives and deductions, as 
provided for in various laws, such as but not limited to Republic Act No. 6977, 
as amended by Republic Act No. 9501, or the “Magna Carta for Micro, Small 
and Medium Enterprises”, Republic Act No. 11321, or the “Sagip Saka Act”; 
and Republic Act No. 11337, or the “Innovative Startup Act”. 
 
Nothing in this Act shall be interpreted or construed to diminish or limit, in 
whatever manner, the incentives granted or provided under aforesaid laws, 
and existing orders, issuances and regulations. 
 
ARTICLE V 
DIGITAL INFRASTRUCTURE 
 
SEC. 20. Backbone ICT infrastructure. The Department of Information and 
Communication Technology shall accelerate the construction of backbone ICT 
infrastructure to enable widest broadband penetration. 
 
For this purpose, the DICT shall ensure the full implementation of Republic Act 
No. 10929, otherwise known as the Free Internet Access in Public Spaces Act, 
within five (5) years since the approval of this Act.  
 
ARTICLE VI 
SMART CITIES 
 
SEC. 21. Smart cities. The Council, the Department of Human Settlements 
and Urban Development, the Department of Environment and Natural 


 
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Resources, Department of Transportation and other concerned agencies shall 
formulate a Smart Cities Framework to guide municipalities and cities in 
developing policies, plans and programs towards digital inclusion and 
transformation urban development. The Smart Cities Framework shall 
conform with the following principles: 
 
a) Smart Economy – utilization of digital technology and innovative 
business models; the development of digital skills of the workforce; and 
the adoption of sustainable production systems to enhance efficiency 
and competitiveness; 
 
b) Smart People – promotion of lifelong learning, digital inclusion, 
creativity and innovation; development of knowledge, skills and values 
to adapt, compete and flourish in a digital economy and society, to 
enable job transition, occupational mobility, innovation, and digital 
entrepreneurship;  
 
c) Smart Governance – utilization of new technologies and methodologies, 
such as crowdsourcing, to strengthen connections and interactions 
between the local government and citizens, businesses, and civil society;  
 
d) Smart Mobility – promotion of new and multiple sustainable modes of 
transportation, including mass transportation, such as electric vehicles, 
autonomous vehicles, bicycling, and carpooling, to enable affordable, 
efficient and safe mobility for all; 
 
e) Smart Environment – utilization of innovative technology to manage 
and monitor waste production, pollution, and carbon emission, promote 
energy efficiency and accelerate local energy transition; and, utilization 
of data analytics for planning and management of built and natural 
environments to improve efficiency, minimize environment impact and 
build resilience; and, 
 
f) Smart living – increasing access of all citizens to electronic services, 
digital platforms and ecosystems to promote digital inclusion, 
strengthen civic engagement and social cohesion, and expanding access 
to ICT-enabled and -enhanced healthcare systems. 
 
 
 
ARTICLE VII 
SMART GOVERNANCE STRATEGY 
 
SEC. 22. Smart Governance Strategy. The Council and the Anti-Red Tape 
Authority shall develop a Smart Governance Strategy, hereinafter referred to 


 
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as SGS, to guide the phased transition of processes and procedures towards full 
automation and enhanced interoperability to eliminate bureaucratic red tape, 
improve efficiency of government services, support planning and decision-
making, promote transparency and strengthen citizen engagement and 
participation, as provided for in Republic Act No. 9485, as amended by 
Republic Act No. 11032.  
 
The SGS shall provide for a framework to rationalize the structure of all 
departments, bureaus, offices, agencies, or instrumentalities of the 
government, including government-owned and -controlled corporations, state 
universities and colleges, and local government units, to abolish positions that 
will be rendered redundant by automation; Provided, That the Legislature, 
Judiciary and constitutional commissions may, on a voluntary basis, apply the 
parameters contained therein; Provided, further, That the SGS shall identify the 
skills or competencies necessary to adapt to digital transformation of 
government services; Provided, finally, That reskilling and upskilling 
programs shall be established for government employees. 
 
The SGS shall also identify standards, targets and indicators to guide the 
gradual digital transformation of the bureaucracy. 
 
SEC. 23. Government information systems. All concerned agencies shall 
within two (2) years establish the information systems and data registries on 
health, agriculture, business enterprises and other relevant demographic, 
economic and social statistics as provided in various laws, such as but not 
limited to UHC, AFMA, Sagip Saka, SMSE, and shall regularly update the same 
to enable access to public information, and promote transparency, 
accountability and participatory governance. 
 
ARTICLE VIII 
FINANCING 
 
SEC. 24. Public-private partnership. The Council shall develop policies to 
promote and encourage partnerships between the government and private 
sectors or non-government organizations for the implementation of this Act, 
subject to existing rules and regulations on public-private partnerships. 
 
SEC. 25. Appropriations. The amount of one hundred million pesos 
(100,000,000.00) as initial funding for the Council to be charged against the 
unexpended Contingency Fund of the Office of the President is hereby 
appropriated. Thereafter, the amount needed for the implementation of this 
Act shall be included in the annual General Appropriations Act. 
 
ARTICLE IX 
MONITORING AND OVERSIGHT 
 


 
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SEC. 26. Implementing rules and regulations. The Council shall issue the 
implementing rules and regulations within sixty (60) days from the effectivity 
of this Act. 
 
SEC. 27. Congressional oversight. The Council shall, on the first Monday of 
July every year, submit a report to Congress of the achievement of objectives 
and targets of this Act.  
 
For this purpose, there is hereby created a Congressional Oversight Committee. 
The Committee shall be composed of five (5) Senators and five (5) 
Representatives to be appointed by the Senate President and the Speaker of the 
House of Representatives, respectively. The Minority shall be entitled to pro 
rata representation. 
 
SEC. 28. Sunset review. Within five (5) years after the effectivity of this Act, 
or as the need arises, the Congressional Oversight Committee shall conduct a 
sunset review. For purposes of this Act, the term “sunset review” shall mean a 
systematic evaluation by the Congressional Oversight Committee of the 
accomplishments and impact of this Act, as well as the performance and 
organizational structure of its implementing agencies, for purposes of 
determining remedial legislation. 
 
ARTICLE X  
FINAL PROVISIONS 
 
SEC. 29. Repealing Clause. All other laws, decrees, executive orders and 
rules and regulations contrary to or inconsistent with the provisions of this Act 
are hereby repealed or modified accordingly. 
 
SEC. 30. Separability Clause. If any provision of this Act is held invalid or 
unconstitutional, the same shall not affect the validity and effectivity of the 
other provisions hereof. 
 
SEC. 31. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in any newspaper of general circulation.  
 
Approved,