SMEs call for government support

CEBU, Philippines - As the formal opening of the Asean Economic Community nears, the Small and Medium Enterprises are once again calling for support from the government.

High cost of power, problems in logistics, issues in taxation, slow business license processing and bureaucracy,  access to finance and availability of proper technology, are the top concerns identified by Filipino businesses in their preparation for the ASEAN integration next year, said Philippine Chamber of Commerce and Industry president Alfredo Yap.

Although these concerns are not new and have been faced by the SMEs over the years, the government should review their programs in prioritizing these issues as the private sector is likewise doing its part in gearing up towards a tougher competition in the ASEAN arena next year.

"We acknowledge the openness (of the regional economy), but it can only be achieved if we are provided with complementary support," said Yap in his recent visit to Cebu.

On access to finance, more SMEs are still struggling on how to get proper capitalization for expansion, as they are willing to increase their presence in the region.

In Cebu though, the Cebu Chamber of Commerce and Industry and PhilExport-Cebu recently inked an agreement with SB Corporation to help Cebuano SMEs have access to the P4 billion funds offered by the agency.

However, although this may help SMEs to strengthen their competitive edge when the integration happens, the private sector is hoping that the government will consider other concerns that may weaken the SMEs’ strength in the competition.

PCCI vice president for the Visayas Jose Ng said that there is a need for Cebu to take serious actions now to address the pressing concerns faced by most businesses, such as infrastructure support, high cost of doing business--specifically high power and labor rates.

Ng also mentioned the obvious problem in port congestion, not only in Cebu but also in Manila that already discouraged businesses, especially manufacturers to expand because of the difficulty of transporting and shipping their products.

On the other hand, taking its pro-active step to take on the growing pressure, CCCI recently announced that it is going to intensify its advocacy to push both national and local government units to push for infrastructure expansion especially projects that would support and attract investments for manufacturing.

CCCI president Ma. Teresa Chan said that one of the chamber's focuses now is to craft advocacy to call on the government to accelerate planned projects for infrastructure developments, particularly the implementation of a new international port.

She said the chamber is planning to coordinate with the Cebu Provincial government as well as the concerned agencies in the national level for Cebu to realize the plan to have a big, and global standard international port--in terms of size and facilities.

"If they want Cebu to be a transshipment hub for Asia Pacific, we certainly need a 'proper port' facility," Chan said.

Likewise, Cebu Business Club president Gordon Alan Joseph said that while access to finance has remained to be the all-time concern of SMEs, obvious concerns in infrastructure, logistics, bureaucracy in both national and LGU levels are still prevailing, and these can surely cripple the SMEs in facing a tougher and greater competition in the AEC, if not given immediate solution. (FREEMAN)