Manila startup ecosystem gains traction as innovation hub with record growth of 85% in 2022

By Othel V. Campos

THE startup ecosystem in Manila posted a record growth of 85 percent to $3.5 billion from $2.1 billion, based on the 2023 Global Startup Ecosystem Report.

Released at The Next Web Conference in Amsterdam, the GSER 2023 recognized Manila with numerous commendations including Top 25 Global Ecosystem and Top 10 Asian Ecosystem in Affordable Talent, Top 20 Asian Ecosystem in Funding, Top 30 Asian Ecosystem in Bang for Buck, Top 30 Asian Ecosystem in Talent & Experience and Top 30 Asian Ecosystem in Performance.

“To witness Manila gaining traction as an innovation hub is incredibly rewarding. This underscores the Philippines’ transformation from an active player to a formidable leader in the ASEAN region—an achievement we share with the dynamic stakeholders of the Philippine startup ecosystem” said Trade and Industry Secretary Alfredo Pascual.

The GSER 2023 cited the vibrancy of Manila’s financial technology, electronic commerce and gaming sectors, attributing their growth to a high density of talent, dynamic startup activity and the collaboration between government agencies and private stakeholders working towards improving innovation and entrepreneurship across the nation.

“Our impressive leap in the GSER 2023 Report is a testament of our sustained commitment to fostering a dynamic startup ecosystem. We have put in place mechanisms for continued growth, from streamlined government processes to strategic investment support mechanisms,” Pascual said. He said the recognition was the result of collective efforts of DTI, the Department of Science and Technology, Department of Information and Communications Technology and the National Economic and Development Authority to harmonize programs and resources thereby accelerating the innovative startup ecosystems.

The DTI underscored the pivotal role of Innovative Startup Act, the Philippine Innovation Act and the Ease of Doing Business Act in fueling Manila’s rise from a regional tech hub to a globally recognized player in the digital economy.

Trade Undersecretary for the Competitiveness and Innovation Group

Rafaelita Aldaba underscored the government’s steadfast investment in the nation’s human capital, recognizing its pivotal role in Manila’s tech innovation success. The focus, she said, is centered on nurturing and developing the young, educated workforce that is driving Manila’s vibrant startup ecosystem.

“Aside from residential, office, malls and hotels, there are more to offer to make every township more relevant and sustainable to the next generation of Filipinos,” Tan said.

Megaworld also plans to build more hotels and MICE (meetings, incentives, conventions, exhibitions) facilities in key cities within the next five years as global travel rebounds from the pandemic.

The property firm is also building more ‘sustainable’ Grade A office towers to address continued strong demand for workspaces especially from emerging businesses and industries, even as BPOs remain a key driver for office demand.

These new office towers are located in the group’s townships in Metro Manila, Pampanga, Bulacan, Cavite, Cebu, Iloilo, Bacolod and Davao.

It also plans to build more malls in Pampanga, Bulacan, Cavite, Rizal, Cebu, Bacolod and Davao on significant increase in economic activities. Jenniffer B. Austria