Better info exchange key to SMEs’ global competitiveness

MANILA, Philippines - There is a need to further facilitate collaboration and communication between the government and small and medium enterprises to better prepare SMEs for the Asean economic integration, local business leaders said in a forum.

They said that while the public and private sectors have been working closely together to prepare exporters and traders for the Asean Economic Community (AEC), some level of communication breakdown appears to still exist, diluting the effectiveness of the partnership.

The industry officials made known their sentiments at the National Export Congress held recently in Pasay City, as the delegates posed questions to public officials on what their agencies are doing to sharpen the competitive edge of local SMEs.

SMEs, which form the backbone of the Philippine economy, will be the most strongly affected by the integration of Asean into one market and one production base.

The delegates said that the most pressing question in all four corners of the business community today is, “How ready are we for 2015?”

The exchanges between private sector stakeholders and government officials during the congress indicated that the Philippines’ readiness will be determined largely by how smooth the communication flow is between the two parties.

Ruy Moreno, director for Operations at the National Competitiveness Council, said that despite the many support programs for SMEs, these companies seem relatively unaware of what specific services and tools are available to them.

He made the comment after Secretary Mario Montejo of the Department of Science and Technology (DOST) outlined the many research and development projects the department had launched to improve the technological and innovative capabilities of SMEs. 

Montejo said the DOST has been urging SMEs to avail themselves of the department’s innovation centers and technological innovations to improve their products, develop new lines, and establish better production processes and equipment.

Managing Director Whilhelmina Mañalac of the Bangko Sentral ng Pilipinas (BSP) said that the central bank has undertaken many initiatives to help exporters, including lowering interest rates to reduce financing costs and providing direct financial aid to companies.

The private sector responded that the BSP, DOST, Bureau of Customs, and other agencies linked to trade facilitation and export promotion may need to find more effective strategies to increase the SMEs’ awareness of their support services.

Director Senen Perlada of the Department of Trade and Industry agreed, saying that the apparent information gaps on what help the government can extend to SMEs should be an important issue to be prioritized and addressed. – Philexport