In remote Philippine villages and impoverished urban areas increasing numbers of children, including toddlers, are being forced to perform sex acts that are streamed online to paedophiles around the world.

Police say the Philippines has emerged as the key hub of a billion-dollar cybersex industry where most of the victims are under 18 but some are as young as two.

Most of the paedophiles willing to pay to see child pornography are from Western countries like the United States, Britain and Australia, police say.

A Philippine National Police report said the streaming is being done inside hotel rooms, private houses and shanties in impoverished areas of 31 Philippine provinces, including the island of Cebu, a cybersex hotspot where several child pornography rings have been identified and disrupted with scores of children rescued.

Victorian man Patrick Ronald Goggins, a 68-year-old Vietnam war veteran, was jailed for more than 11 years in a Melbourne court on Monday for paying four sisters aged between five and 15 years old from Cebu to perform a range of sickening sex acts on a webcam.