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Manila Bulletin devider Business devider The Economy devider Konektadong Pinoy advances digital transformation in Philippines—World Bank

Konektadong Pinoy advances digital transformation in Philippines—World Bank

Published Aug 29, 2025 01:41 pm
The passage into law of the Konektadong Pinoy Act is seen by the World Bank as a positive development toward digital transformation in the Philippines.
In an Aug. 28 implementation status and results report, the Washington-based multilateral lender said the rollout of the Philippines Second Digital Transformation development policy loan (DPL) has been “satisfactory” so far.
The World Bank greenlit the $750-million DPL in November last year. Of the loan amount, $706.65 million, or over ₱40 billion, has already been disbursed, according to the report.
This loan took effect in December 2024 and will close in March 2026.
“Due to the recent approval, comprehensive data regarding the achievement of program development objectives (PDOs) is not yet available,” the World Bank said, even as “initial observations show progress in all reform areas.”
This World Bank DPL aims to support government reforms that promote digital technology adoption by enhancing digital governance and infrastructure, expanding financial inclusion through digital finance, and driving growth in digital services.
“The Philippine reform program, endorsed in late 2024, is making advancements across its main pillars. Under Pillar A, the Konektadong Pinoy Act was enacted into law, followed by the scheduled deployment of the BTMS [budget treasury and management system] within major departments by September 2025 and ongoing harmonization of ICT [information and communications technology] investments through the MITHI [medium-term ICT harmonization initiative] platform,” the World Bank said.
The World Bank added that implementation of the Anti-Financial Account Scamming Act under Pillar B was supported by Bangko Sentral ng Pilipinas (BSP) circulars issued last June, which enhanced regulations on information technology (IT) risk management, account inquiries, and fraud prevention to strengthen financial system safeguards.
Under Pillar C, the World Bank said progress in promoting digitally enabled service growth continues through interagency collaboration, with the Department of Trade and Industry (DTI) establishing the E-Commerce Bureau to operationalize the Internet Transactions Act, while the Civil Aeronautics Board (CAB) streamlines air transport registration to improve logistics and the Philippine Competition Commission (PCC) works with the National Privacy Commission (NPC) to address digital competition and data-related concerns.
Konektadong Pinoy, also known as the Open Access in Data Transmission Act, officially lapsed into law on Aug. 24, after President Ferdinand R. Marcos Jr. neither signed nor vetoed it within the 30-day period following its submission by Congress.
The new law seeks to expand internet access, streamline licensing, and encourage new and smaller internet service providers to enter the market by removing requirements for a legislative franchise or certificate of public convenience and necessity
Critics—including telecom groups and civic organizations—warn that Konektadong Pinoy may lead to regulatory gaps, increased security risks, and a two-tier system where new entrants face fewer safeguards compared to established players.
The Department of Information and Communications Technology (DICT) has assured that it will work with the private sector and other relevant government agencies to draft the implementing rules and regulations (IRR), which is expected to be finalized within 60 to 90 days.

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