World Bank approves 600 mln USD loan to boost Philippines' digital transformation (Photo: worldbank.org) Hanoi (VNA) – The World Bank has approved600 million USD in financing for the Philippines to support reforms aimed atincreasing digitalisation.
The Philippines' First Digital TransformationDevelopment Policy Loan aims to promote the digital transformation ofgovernment and digital infrastructure policies, expand financial inclusionthrough digital finance, and stimulate the growth of digital services.
According to the bank, the loan will help thegovernment digitise government operations and service delivery, fostercompetition in the digital infrastructure markets, and encourage the adoptionof digital payments and financial services.
It will also facilitate reforms to promotee-commerce, enhance competition and value-added activities in digital servicesmarkets, and strengthen skills development in the industry, the bank noted.
Ndiame Diop, World Bank country director for Brunei,Malaysia, the Philippines, and Thailand, said that greater adoption of digitaltechnology can improve the efficiency and transparency of government services,empowering individuals who were previously far away from decision-makingcenters.
The bank said widespread adoption of digital paymentsin the Philippines is essential for developing a digital economy, benefitingmillions of citisens and small businesses.
Diop noted that digitalisation can also driveproductivity growth by reducing operating costs for firms and enhancing theirresilience and preparedness for future crises.
Currently, cash is the dominant form of payment forthe country's over-the-counter purchases in grocery stores, government servicepayments, and government fees and penalties.
Smita Kuriakose, leadeconomist in the Worldꩵ Bank's finance, competitiveness, and innovation globalpractice said that transitioning to a cashless economy would provide variousbenefits, especially during climate-related and natural disasters, enabling thegovernment and the private sector to respond swiftly and efficiently./.
