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| World Bank approves $600 million credit for Philippines to boost digitalization. (Source: AFP) |
The information was released in a statement on September 30. The World Bank said that the Philippines' first digital transformation development loan aims to accelerate government transformation and digital infrastructure policies, expand financial inclusion through digital finance, and stimulate the development of digital services.
According to the bank, the loan will help the Philippines digitize government operations and service delivery, promote competition in the digital infrastructure market, and encourage the adoption of digital payments and financial services.
The WB noted that the credit package will also facilitate reforms to promote e-commerce, enhance competitiveness and value-added activities in the digital services market, and promote skills development in the sector.
“Greater adoption of digital technology can improve the efficiency and transparency of government services, empowering individuals who have previously been isolated from decision-making institutions,” said Ndiame Diop, World Bank Country Officer for Brunei, Malaysia, the Philippines and Thailand. He said that widespread adoption of digital payments in the Philippines is essential to growing the digital economy, which will benefit millions of people and small businesses.
Digitalization can also boost productivity growth by reducing companies' operating costs and enhancing their resilience and ability to respond to future crises, World Bank officials said.
Currently, cash is the primary form of payment at grocery stores, for government services, and for paying fees and fines in the Philippines.
“The transition to a cashless economy will bring various benefits, especially during natural and climate-related disasters, allowing governments and the private sector to respond quickly and effectively,” said Smita Kuriakose, lead economist for the World Bank’s finance, competitiveness and innovation global practice.
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