The World Bank has approved a $600 million loan to finance the country’s reform program designed for a competitive and resilient economic recovery.
The Philippines Promoting Competitiveness and Enhancing Resilience to Natural Disasters Sub-Program 3 Development Policy Loan supports government's reforms, including amendments to the Retail Liberalization Act to promote private investment, reduction in the cost of doing business, and expansion of broadband services to
WOrld…promote investments in information and communications technology.
Ndiamé Diop, World Bank country director for Brunei, Malaysia, Philippines, and Thailand, said the reforms are critical to ensure a more inclusive growth.
"Reforms that promote competition in broadband and mobile telecommunications will benefit a large portion of underserved populations by increasing coverage and quality of service, increasing their access to markets, as well as access to remote education and health services," Diop said.
"Similarly, reforms that lower the costs of trade and improve the business environment are expected to benefit all firms but especially small and medium enterprises, which will have access to a larger market for their products and services," Diop added.
The World Bank said the Philippines “lags behind its peers in the East Asia and the Pacific Region in terms of inflows in direct foreign investment, including in its retail sector.”
Reforms in the retail trade sectors, however, would provide a level playing field for both local and foreign investors and subsequently create more jobs and increase the inflow of new technologies.
"The government has introduced the Philippine Identification System or PhilSys as a digital identification platform to foster the digital economy and increase access to public services," said Rong Qian, World Bank senior economist.
"This is expected to increase access to and improve delivery of public services by providing Filipinos with a unique, verifiable digital identity," Qian added.