Government allocates P1 billion for MSMEs in each region

CEBU, Philippines - The government’s pronouncement to allocate P1 billion for each region in the Philippines for lending purposes to micro and small enterprises will hopefully end the perennial funding problems of MSMEs.

Philexport president Sergio R. Ortiz-Luis Jr. said this announcement made by Department of Trade and Industry (DTI) secretary Ramon Lopez has given the MSMEs a much needed boost.

Ortiz-Luis hopes that the implementation of this facility will be fast tracked so that MSMEs will be able to take advantage of this program this year.

The funds, which will come from the Office of the President, is targeted to reach P18 billion with each of the region getting an equal allocation of P1 billion.

The DTI however is still working on the details of the lending scheme, but noted that the interest rates will be within the range charged by the market for micro- and small- sized firms.

The concept and total amount is close to Philexport's proposed P20 billion emergency financing scheme for MSMEs.

Meanwhile, Ortiz-Luis said that Philexport and the Export Development Council will continue to push for industry reform agenda this year.

The industry's reform agenda include; the implementation of existing labor laws to ensure the workers’ security of tenure as a middle ground to stopping illegal hiring practices; Maximization of the benefits of free trade agreements, including the Regional Comprehensive Economic Partnership and the Philippine-European Free Trade Agreement signed in April this year; Advocacy for the passage of the Comprehensive Tax Reform Act; Ease of Doing Business Act; Amendments in the IRR of the Magna Carta for MSMEs; Amendments in the Charters of the Bangko Sentral ng Pilipinas, Philippine Ports Authority and Civil Aviation Authority of the Philippines, Corporation Code of the Philippines; among others;

Ortiz-Luis also underscored the export sector's serious stance for an intensified campaign against corruption and facilitation of infrastructure development. (FREEMAN)