MANILA, Reuters – A $600m loan has been approved by the World Bank for a Philippine Reform Programme to help position it for a strong and sustainable economic recovery.

According to the lender, this loan will support measures such as promoting private investment and reducing the cost to do business and expanding broadband services in order to increase investments in information technology.

Such reforms are crucial to level immediate and long-term barriers to growth, said Ndiamé Diop, the bank’s country director for Brunei, Malaysia, the Philippines and Thailand.

Diop stated in a statement that reforms to promote broadband competition and mobile telecommunications would benefit large portions of the underserved population by improving coverage and quality, access to markets and remote education, and access to health services.

Diop stated that reforms which lower trade costs will help all businesses but in particular small and mid-sized enterprises by opening up a wider market.

According to the bank, Philippines is behind its peers in East Asia and the Pacific when it comes to direct foreign investment in areas like retail. It also said that reforms in the sector might attract investment as they could level the playing field between domestic and foreign investors.