The World Bank cited the need to enhance internet connectivity in the Philippines, a key pillar of its Country Partnership Framework for 2026–31.
The initiative aims to boost private sector job growth by increasing access to digitally-enabled services, thereby improving productivity in businesses and farms, promoting financial inclusion, strengthening health systems, advancing education, and building resilient communities, it said.
Supported by the World Bank, the government is exploring further reforms and investments to accelerate internet expansion in rural areas and drive digital transformation across vital sectors. This includes integrating digital IDs into services, expanding digital payments, developing interoperable data systems, and providing digital skills training.
The World Bank said it is actively backing the country’s digital transformation efforts, focusing on connectivity and establishing a national digital identity system. The Philippines Digital Infrastructure Project, approved in October 2024, will fund the national fiber optic backbone and connect rural schools and health facilities.
The Second Digital Transformation Development Policy Loan, approved in November 2024, seeks to lower market entry barriers and foster competition in the broadband sector. These measures are anticipated to narrow the digital divide by reducing internet costs and extending digital services and opportunities to more than 20 million Filipinos.
Despite being a top priority since 2022, digital transformation in the Philippines has seen slow progress, with broadband internet remaining weak. Outdated regulatory frameworks, such as the 1931 Radio Control Law and the 1995 Public Telecommunications Act, continue to impede market entry, competition and investment, the bank said.