BBM seeks private sector help on Natl ID

PRESIDENT Ferdinand “Bongbong” Marcos Jr. has asked the private sector to help “get the National Identification out,” saying it has the technology and capability for new digital IDs.

Marcos issued a directive on Thursday to speed up the digitalization of the national ID system during his meeting with the Private Sector Advisory Council (PSAC) on Digital Infrastructure in Malacañang.

“Naiwanan na tayo sa technology (We have been left behind in technology), so we have to catch up,” the President told PSAC officials during the meeting.

Among those discussed was the proposal of the Philippine Statistics Authority (PSA) to engage the private sector for the launching of the Digital PhilID App.

The Philippine Identification System (PhilSys) plans to roll out a mobile app in the first quarter of this year with private sector assistance through public-private partnerships to support the PSA's efforts to digitalize the national ID system.

Adopting a digital ID system has several advantages, including automated eKYC (Know Your Customer), identity theft protection, credit card and loan applications and a digital wallet.

Integration of a digital ID with a digital wallet would result in the removal of lengthy queues in Assistance to Individuals in Crisis Situations distribution, anti-fraud and anti-scamming, Department of Social Welfare and Development program monitoring, and faster release of government cash aid.

A study by the Mckinsey Global Institute showed that the implementation of a digital ID scheme in an emerging economy with high adoption rates can unlock an economic value of up to an additional 3 percent of the gross domestic product by 2025 or P700 billion, as well as entail an additional six percent of the GDP by 2030 or P1.8 trillion.

The source1s of value for the increase in GDP include increased use of financial services, improved access to employment, increased productivity from time saved, lower costs for the government and institutions, higher tax participation leading to higher collections, and increased access and participation from rural farmers.

Some of the notable uses of digital ID around the world include system integration, ePrescription, online banking, transit solution, personal information reference, application for government documents and face verification.

Submission of government records, digital signature use and incorporation of identity into government agencies are also among the benefits of digital ID use.

Republic Act 11055 or the “Philippine Identification System Act,” signed into law on Aug. 6, 2018, aims to establish a single national ID system for all citizens and resident aliens of the Philippines.

The valid proof of ID by PhilSys is expected to simplify public and private transactions and become a social and economic platform that promotes seamless social service delivery and strengthens financial inclusion for both public and private services.

The PhilSys is seen transforming how services are delivered in the Philippines and is expected to accelerate the country's transition into a digital economy, including enabling presenceless, paperless and cashless transactions.