MSME’s need not worry about Asean integration – DOST official

MANILA, Philippines - The country’s micro, small and medium enterprises (MSMEs) are ready for the competition with their ASEAN (Association of South East Asian Nations) counterparts when ASEAN Economic Integration kicks in next year, 2015.

Carol Yorobe, Department of Science and Technology (DOST) undersecretary for regional operations, noted that there has been a zero tariff environment in many industries and markets in the ASEAN especially with the country being a signatory to the ASEAN Free Trade (AFTA) Agreement.

“Our MSMEs can compete,” Yorobe told The STAR in an interview.

However, Yorobe said that Filipino MSMEs was in great need of technology and innovation assistance, a need being filled by the DOST through their Small Enterprise Technology Upgrading Program (SETUP).

Started in 2002, the DOST, under Secretary Mario Montejo has increased the budget support for the SETUP, which saw funding for the program reaching P437 million in 2012, and P662 million in 2013.

In the 10 year period between 2002 when the program was started and 2012, she said that there was less than P400 million allocated for the SETUP.

The program is allocated P662 million this 2014.

Under the program, the DOST provides beneficiary MSMEs the equipment or machinery that they need to boost their productivity and improve their product quality, with the cost of the technology or equipment assistance paid by the beneficiary over a three year period, at no interest.

The SETUP seeks to encourage MSMEs to adopt technological innovations to improve their operations and boost their productivity and competitiveness with the equipment or machinery they need for upgrading, given to them by the DOST having a three year payback period, and interest-free. 

The DOST will showcase the products and the best of the beneficiary MSMEs that have assisted from 2002 in the coming National Science and Technology Week celebrations this coming July 24 to 28 at the SMX Convention at the SM Mall of Asia complex in Pasay City.

In a press conference yesterday to drum up interest on the NSTW celebrations dubbed “Something is Brewing in the MSME Sector”, DOST Region 6 director Rowen Gelonga, said that there was no need to be worried for local MSMEs when they compete in a zero tariff environment with the ASEAN Economic Integration 2015.