The Department of the Interior and Local Government (DILG) is accelerating digital transformation across local government units (LGUs) to create a more business-friendly environment, attract investments, and strengthen local economies.

The initiative supports President Ferdinand R. Marcos Jr.'s directive to streamline government services, reduce red tape, and promote economic growth through digitalization.

In his fifth State of the Nation Address, Marcos underscored the importance of digital transformation in improving the ease of doing business.

"Foreign investments continue to pour in because of our beneficial policies, especially those promoting ease of doing business and accelerating digital transformation that curb red tape and corruption," the President said.

In compliance with Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, the DILG reported that 1,414, or 92.18 percent, of the country's 1,534 cities and municipalities comply with the prescribed Business Permitting and Licensing System standards for new applications.

Meanwhile, 1,429 LGUs, or 93.16 percent, comply with the Building Permits and Certificate of Occupancy standards for renewal applications.

The DILG said the high compliance rates have resulted in faster and more predictable business permitting and licensing services, making it easier for entrepreneurs and investors to establish and expand their operations while helping generate jobs and increase local revenues.

The department also credited LGUs for embracing digital innovation and improving public service delivery, making government transactions more accessible and convenient.

To strengthen digital governance, the DILG said 1,030 LGUs have adopted the e-LGU System, allowing citizens to access services online, including applications for business permits and licenses, payment of local taxes and fees, civil registry services, and other frontline transactions.

The e-LGU System, jointly launched by the DILG and the Department of Information and Communications Technology in July 2023, serves as a unified digital platform designed to make government transactions faster, more transparent, and more efficient.

At the barangay level, more than 25,000 barangays have also been oriented on the Barangay Information Management System, a free digital platform that improves data management, reporting, and day-to-day governance.

The DILG reaffirmed its commitment to expanding digital transformation across all levels of local government to deliver faster, more responsive, and investor-friendly public services while creating greater opportunities for economic growth.