DTI encourages Bicol businesses to go digital amid evolving economy

By Rhaydz Barcia

LEGAZPI CITY --- Department of Trade and Industry (DTI) Assistant Secretary Grace Baluyan has urged Bicolano entrepreneurs to embrace artificial intelligence (AI) and digital technologies to remain resilient and competitive in both the local and global markets amid the country's rapidly evolving economy.

“AI is a tool. Use it as part of our digital transformation strategy to become more resilient and competitive in the local and global market,” Baluyan told nearly 400 entrepreneurs during the 2026 Bicol MSME Conference held at the Marison Hotel Convention Center in Legazpi City over the weekend.

Baluyan said micro, small, and medium enterprises (MSMEs), considered the backbone of the Philippine economy, must strengthen their resilience by adopting digital technologies that will enable them to manage risks, improve productivity, and expand market opportunities.

She said the DTI continues to intensify its programs to help MSMEs in Bicol adapt to digital transformation and remain competitive amid rapid technological and economic changes.

The conference, themed “Navigating the Shift: Building Resilient and Future-Ready MSMEs,” gathered around 400 entrepreneurs, industry leaders, government agencies, and business organizations from across the region for a two-day forum focused on innovation, sustainability, and business resilience.

The event aimed to equip MSMEs with the knowledge and tools needed to harness technology, innovation, and sustainable business practices in an increasingly competitive marketplace.

Baluyan, however, acknowledged that poor internet connectivity remains one of the biggest barriers to digital transformation, particularly for entrepreneurs in geographically isolated and disadvantaged areas (GIDAs). She also noted that many MSMEs remain hesitant to adopt digital tools despite their growing importance.

“When MSMEs do not have access to reliable internet, they lose opportunities to explore markets, connect with customers, and expand their businesses. Poor internet connectivity, especially in geographically isolated and disadvantaged areas, continues to prevent many entrepreneurs from fully participating in the digital economy,” she said.

Hoover Picar, Philippine Chamber of Commerce and Industry (PCCI) South Luzon Area vice president, echoed Baluyan’s concerns, saying unreliable internet service remains a major disadvantage for MSMEs.

“Slow internet is a major setback for MSMEs. But at least we are moving forward in improving connectivity so businesses can better adopt digital technologies,” Picar said.

He added that many businesses now subscribe to at least two internet service providers to ensure uninterrupted online operations.

DTI Bicol Regional Director Dindo G. Nabol likewise encouraged entrepreneurs to accelerate their digital transformation by utilizing online platforms to simplify business transactions and improve operational efficiency.

According to Nabol, more than 90 percent of business registrations in the Bicol Region are now processed online without requiring applicants to visit DTI offices.

Despite this progress, Nabol said internet connectivity remains a major concern. Based on data from the Department of Information and Communications Technology (DICT), Bicol has the highest number of barangays in the country where 3G remains the fastest available mobile network, limiting access to digital services and online marketplaces.

To help address connectivity issues in remote communities, DTI has partnered with the International Labour Organization (ILO) and the United Nations Development Programme (UNDP) to provide satellite internet access to Negosyo Centers in underserved areas while training business counsellors and MSMEs in digital technologies, including artificial intelligence.

The conference also recognized outstanding entrepreneurs whose innovation and resilience have contributed to the growth of local communities across the region. During the event, DTI conferred the Bagwis Seal of Excellence on retail establishments that uphold consumer rights, provide quality customer service, and practice ethical business standards.

Nabol said the conference demonstrates the resilience, innovation, and collaborative spirit of Bicol's MSMEs, emphasizing their vital role in driving the region's economic growth and preparing for the future.