MCCI: Government needs to support MSMEs while drawing in FDIs

CEBU, Philippines - While efforts are directed towards attracting more foreign direct investments (FDIs) to the Philippines, the local business community is likewise calling for an equally enticing platform to strengthen the micro-small and medium enterprises.

"Let us not forget that we need the local entrepreneurs to thrive too. Leveling the playing field is important," said Mandaue Chamber of Commerce and Industry (MCCI) Glenn Soco.

Although local businesses have already been cautioned on the entry of more foreign players as the Philippines becomes the entry point for their Asian market invasion, still the government should play its part in strengthening the MSMEs so they can put up a good fight against the foreign giants.

Soco said that it is highly recommended for the government to provide more incentives to the local entrepreneurs and resolve the long overdue problem on credit access to empower the MSMEs.

He further added that while the Duterte administration is doing its best to overhaul the non-working traditional systems in the government, still the Philippine economy continues to experience an imbalance, particularly on access to capital, wherein private financial institutions still favour bigger companies and FDIs enjoy certain fiscal perks, among others.

This reality has left the MSMEs as self-reliant businesses, struggling to get their right place on the business eco-system.

Tax incentives, support from Department of Labor and Employment are also important for MSMEs to thrive in this globalized playing field.

While there is nothing wrong in inviting more FDIs in the country to boost employment and revenues, but there should have been equal treatment of support for the smaller, Filipino capitalists, he added.

FDIs, he said siphons the money they made in the Philippines and bring them to their respective headquarters abroad. MSMEs on the other hand, put their money within the system--strengthening the local economic money cycle.

MCCI is strongly advocating for support for the local businesses at the same time encouraging local entrepreneurs to minimize imported purchases and instead support locally made products.

(FREEMAN)