Government earmarks P2 B for MSME development

MANILA, Philippines - The government has earmarked P2 billion this year for the development of micro, small, and medium enterprises (MSMEs).

The budget, according to the Department of Trade and Industry (DTI), would aid entrepreneurs and promote an entrepreneurial mindset to create more jobs generated

 “We are committed in our goal of providing job opportunities for all Filipinos, and uplifting the lives of those at the bottom of the pyramid by strengthening the MSME sector in the country,” Trade Secretary Ramon Lopez said.

Trade Undersecretary Zenaida Maglaya said P1 billion would be used to continue funding the Pondo sa Pagbabago at Pag-asenso (P3) micro loan program while the other P1 billion would be utilized for the shared service facilities (SSF) equipment-sharing project.

“For the P3, we were able to get another P1 billion this year on top of the P1 billion last year. We hope to increase the loan packages that we were able to generate,” Maglaya said.

She said the P3 program budget allocation last year helped fund the requirements of some 38,425 beneficiaries.

The micro loan program aims to provide alternative micro financing to entrepreneurs who usually borrow from the”5-6” money lending scheme.

Maglaya said the agency is looking to cover all provinces in the country through the P3 as there are still 20 provinces in the country that have to be reached by the program due to lack of local conduits.

Another P1 billion, meanwhile, is set to fund DTI’s SSF program to provide MSMEs access to technology, machinery, equipment, tools, systems, skills and knowledge under a shared system.

Broken down, P400 million will go to state universities and colleges (SUCs), P50 million to the Marawi rehabilitation, and the remaining to put up more SSFs and maintain other equipment.

The agency has tapped SUCs to develop more MSMEs and help young entrepreneurs in terms of innovation and prototyping technologies and software for their products and design.

Likewise, to hasten the rehabilitation and recovery of war-torn Marawi City, the agency will provide equipment and machinery to affected internally displaced persons to expand the market reach of Maranao products.

 “We’re looking at reviving the industries like weaving, wood working and brassware. We will provide SSFs for our brothers and sisters in Marawi,” Maglaya said.

So far, the agency has established 2,222 SSFs worth P1.188 billion throughout the country, benefitting 215,628 existing and potential MSMEs and providing 111,747 jobs to Filipinos.