MANILA - The Department of Trade and Industry forged a partnership with Converge ICT Solutions, Inc. to bring faster internet connectivity to micro small and medium enterprises (MSMEs).

The collaboration was sealed through a memorandum of understanding on Tuesday underscoring the critical role of digitalization in empowering MSMEs.

DTI Acting Secretary Ma. Christina Roque considered MSMEs as the backbone of the country’s economy, making up 99.9 percent of businesses and contributing 60 percent of the workforce.

Roque said he recognizes the challenges faced by MSMEs to keep up with the rapid pace of digital transformation.

“We are 7,600 islands and the only way for us to be able to communicate, get our message across, and to be able to sell, especially for the MSMEs, quickly and cheaply and the best way without having too much capital, too much inventory, and they don’t need to build anything, is to go digital,” Roque said.

As social media platforms have evolved into virtual marketplaces, DTI wants reliable internet access for MSMEs, especially in far-flung areas. Converge CEO and Co-Founder Dennis Uy stressed the importance of internet connectivity in business survival and growth to enhance competitiveness and access to a broader market.

“So I think no one in this business today, without connectivity, they cannot be (successful),” Uy said.

Aside from connectivity, Converge wants to offer digital tools such as cloud services to reduce operational costs. Uy said 50 percent of its P15 billion capital expenditure is invested in digital infrastructure. DTI will prioritize connectivity in Negosyo Centers and far-flung areas across the country.

“First and foremost is to bring internet to far-flung areas. They’re going to install internet to those areas. It starts with internet connection first,” Roque said.