The World Bank has approved a $750- million loan to help ramp up digital transformation in the Philippines.
In a statement, the Washington-based agency said the Second Digital Transformation Development Policy Loan, which it approved on Wednesday, will help the government in its efforts to lower barriers to entry and investment in the broadband sector, promoting competition and improving connectivity; support government agencies adapt to a dynamic legal and regulatory environment, boosting efficiency and transparency through digital technologies; expand financial inclusion by promoting secure digital financial services, enhancing transparency and customer protection, and improving payments infrastructure; and improve trust in e-commerce, expand logistics, create jobs in digital services, and enhance the Philippines’ competitiveness in the digital sector.
“Digitalization is a transformative force that can drive productivity-led growth and enhance the efficiency of critical services such as transport, healthcare, education, energy and agriculture in the Philippines,” said Zafer Mustafaoğlu, World Bank country director for the Philippines, Malaysia and Brunei.
“By leveraging digital platforms, the country can bridge gaps in service delivery, make sure that individuals and firms have access to affordable financial services and digital solutions that meet their needs, and build resilience against future crises and shocks,” he added.
While the adoption of digital technology in the Philippines has increased rapidly in recent years, the multilateral agency said more needs to be done for the country to fully realize the advantages that digitization offers.
A key priority will be the removal of the connectivity limitations faced by the 72 percent of Filipino households that, according to 2023 figures, still have no fixed broadband.
“Financial inclusion and digitally enabled services are vital for the growth of micro, small and medium enterprises, which employ over 60 percent of the total workforce in the country,” Mustafaoğlu said. “Greater access to digital financial services enables such businesses to adopt innovative technologies and automation, thereby boosting their competitiveness and contribution to the economy,” he added.
