PRESIDENT Ferdinand R. Marcos Jr. issued a directive Thursday to speed up the digitalization of the National Identification (ID) system that could be used for public and private transactions.
During his meeting with the Private Sector Advisory Council (PSAC) on Digital Infrastructure in Malacañang, among those discussed were the Philippine Statistics Authority’s (PSA) proposed Public-Private Partnership (PPP) for the launching of the Digital PhilID App.
Among the Philippine Identification System (PhilSys) targets are the kickstarting of a mobile app in the first quarter of this year with private sector assistance through PPPs to support PSA’s efforts to digitalize the National ID system.
During the discussion, President Marcos asked the private sector to help get the National ID out, noting it has the technology and capability for new digital IDs.
“Naiwanan na tayo sa technology, so we have to catch up,” Marcos said, stressing a digital ID system is easier to upgrade and implement.
The benefits of adopting a digital ID system include automated eKYC (Know Your Customer), identity theft protection, credit card and loan applications, and digital wallet.
Digital ID integration to a digital wallet will result in the elimination of long lines in Assistance to Individuals in Crisis Situations (AICS) distribution, anti-fraud and anti-scamming, DSWD programs monitoring as well as faster disbursement of government cash aid.
According to a study by the Mckinsey Global Institute, the implementation of a digital ID program to an emerging economy with high adoption rates can unlock an economic value of up to an additional 3 percent of the gross domestic product (GDP) by 2025 or P700 billion.
It will also entail an additional 6 percent of the GDP by 2030 or P1.8 trillion.
The sources of value for the increase in GDP include increased use of financial services, improved access to employment, increased productivity from time saved, reduced costs for government and institutions, higher tax participation leading to higher collections, and increased access and participation from rural farmers.
