An increasing number of U.S. firms are locating engineering design, manufacturing design, call centers, back office operations, outsourcing centers, and software development. Electronic Commerce Despite the limited Internet penetration rate and telecommunications infrastructure, electronic commerce is starting to develop in the Philippines, particularly with the recent passage of the Electronic Commerce Act. Passage of the Act by President Estrada signaled the full support of the Philippine government in the development of electronic commerce in the country. The Act addresses critical issues such as the admissibility of digital signatures and electronic documents in courts, authentication, and infrastructure security. The new law features stiff penalties to deter cyber crimes.
Imprisonment can range from six months to three years.
Although electronic commerce is still in its infancy in the Philippines, the passage of this law and the increase in Internet users will spur its development. Industry experts believe that a minimum of 500,000 Internet users are needed to make electronic commerce viable in the Philippines. President Estrada recently mandated the Electronic Commerce Promotion Council, headed by Secretary Mar Roxas of the Department of Trade and Industry, to update investment policies and formulate promotional activities related to the promotion of electronic commerce in the Philippines. Roxas has been negotiating with international companies to invest in and partner with Philippine IT companies and service providers. More and more ISPs are expanding their services to include not only access but also content provision and electronic commerce and payment gateways.