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Digital Transformation and COVID-19: Policy Imperatives for Local Governments and MSMEs in the Philippines


The virulence of the Novel Coronavirus is expected to have a profound impact on the world. The Philippines is not immune to the looming global recession due to massive local lockdowns, work stoppages, and decline in economic activities. This enormous challenge requires the Philippines to look at new opportunities that can ensure its economic resiliency. The imminent shift in regional production and relocation of services can provide ample demand for digital offshore and manufacturing services. For this, digital transformation (Dx) strategies can provide new ways of energizing the country’s supply chain and customer relationship management. Likewise, public services can be improved through online systems that will encourage citizens and businesses to transact with the government within the safety of their homes. The adoption of digital transformation strategies can open new opportunities in the Philippines. This policy brief proposes a Dx roadmap for local policymakers, local government executives, and entrepreneurs with a new perspective on how to use Dx to create stronger integration of local governments and Micro, Small, Medium-scale Enterprises (MSMEs).

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