WASHINGTON, NOVEMBER 12, 2024 – Digital transformation is key to the Philippines’ goal of achieving resilient and inclusive economic growth. The World Bank is committed to supporting the Philippine government’s efforts to transform the country’s digital sector, including through enhanced connectivity, digitalization, a dynamic innovation ecosystem, and private sector partnerships.
"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."
The World Bank US$750 million Second Digital Transformation Development Policy Loan, approved by the World Bank today, will help the government’s efforts to: i) lower barriers to entry and investment in the broadband sector, promoting competition and improving connectivity; ii) support government agencies adapt to a dynamic legal and regulatory environment, boosting efficiency and transparency through digital technologies; iii) expand financial inclusion by promoting secure digital financial services, enhancing transparency and customer protection, and improving payments infrastructure; and iv) improve trust in e-commerce, expand logistics, create jobs in digital services, and enhance the Philippines' competitiveness in the digital sector.
“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,” said Mustafaoğlu. “Greater access to digital financial services enables such businesses to adopt innovative technologies and automation, thereby boosting their competitiveness and contribution to the economy.”
Greater digitalization is crucial for an economy like the Philippines, which is characterized by a large population spread across many islands. Digital connectivity and Filipinos' participation in the digital economy are key in bridging geographic and socio-economic divides. The adoption of digital technology in the Philippines has increased rapidly in recent years, but more needs to be done for the country to fully realize the advantages that digitization offers. A key priority will be to remove the connectivity limitations faced by the 72 percent of Filipino households that, according to 2023 figures, still have no fixed broadband.
