DTI boosts MSMEs anew in 2017

Even without a formal budget allocated for the P3 alone, the administration funded about PHP1.0 billion worth of projects this year. (Photo: DTI Eastern Visayas/Facebook)

MANILA— The Department of Trade and Industry (DTI) focused its projects and programs in 2017 to the micro, small, and medium enterprises (MSMEs) in the country, heeding the call of President Rodrigo Duterte to further boost the sector.

This year, DTI kicked off its microfinancing program Pondo sa Pagbabago at Pag-asenso, or the P3, which aims to improve Filipinos’ access to financing facilities and avoid loan sharks like “5-6” lending scheme.

Even without a formal budget allocated for the P3 alone, the administration funded about PHP1.0 billion worth of projects this year.

According to DTI Secretary Ramon Lopez, the agency initially released some PHP780 million to borrowers. A fresh PHP300 million was also disbursed during the last quarter of 2017.

“Many Filipinos were freed from 5-6 lending,” Lopez said.

Under the P3, an individual can borrow PHP5,000 up to PHP100,000 at an interest rate not exceeding 2.5 percent, which is much lower compared to the 20-percent yield in 5-6 lending scheme.

Apart from providing financial access to Filipinos to encourage entrepreneurship, DTI has strengthened mentorship to MSMEs through Negosyo Centers nationwide.

A total of 614,417 entrepreneurs were assisted by DTI’s Negosyo Centers across the country.

The Negosyo Centers also conducted 11,043 skills, managerial, and entrepreneurship training programs this year.

Under the Duterte administration, 343 Negosyo Centers were added. Now, there are 718 Negosyo Centers nationwide.

“We’re very grateful to Filipinos that they realize the huge help they get from entrepreneurship and how business contributes to society by providing employment and lifting the economy,” DTI Regional Operations Group Undersecretary Zenaida Maglaya said.

Moreover, Lopez said DTI would give further boost to MSMEs in 2018 as bulk of its budget next year would be allotted to projects and programs for small-scale businesses.

In a previous interview, the DTI chief said the agency allocated some PHP2.0 billion of its PHP5.8 billion budget next year to MSMEs – PHP1.0 billion for P3 and PHP1.0 billion for shared service facility (SSF) program that would provide machines and equipment to MSMEs for them to improve the quantity and quality of their products and services.

Stronger trade

DTI has also welcomed the rebound of exports this year, which grew 11.7 percent in January to October 2017 compared to the same period last year.

DTI Trade and Investments Promotion Group Undersecretary Nora Terrado attributed the stronger performance of Philippine exports this year to the recovering global market, new export markets for the Philippines, and expanding of Philippine products that could be offered abroad.

It was noted that the country’s trade agreements with various economies, as well as the special trade preferences granted to the Philippines by the European Union and the United States helped the country’s export sector to maintain its growth throughout the year.

The EU Generalized Scheme of Preferences Plus (GSP+) and the expanded US Generalized System of Preferences (GSP) provided many export goods from the Philippines to enter the EU and US markets duty free.

Seventy percent of Philippine products entering the US market have no import duty, while some 6,274 Philippines-made goods can access EU with zero tariff.

Combined exports to EU and US shared 30 percent of the country’s total export revenue this year.

The government’s efforts to strengthen ties with different countries, especially giant economies like China, Russia, and Japan, secured the Philippines of better export orders in the coming years.

As the DTI launched the Philippine Export Development Plan ‎‎2017-2022 this year, the government targets for a USD122 billion to USD131 billion revenues on exports of goods and services by the end of the Duterte administration.

The country also eyes services exports to grow its share to total exports to 50 percent by 2022, from its current share of 30 to 32 percent.

Promoting agenda in ASEAN

As one of the agencies actively participating in the country’s hosting of Association of Southeast Asian Nations (ASEAN) Summit this year, the DTI was able to promote trade and investment opportunities in the Philippines during ASEAN meetings.

The DTI was able to secure the Philippines’ agenda in ASEAN meetings, particularly those policy focusing on MSMEs for them to participate in the global value chain and ensure that no one would be left out as nations push for globalization.

During the ASEAN Summit, the Philippines has also led the region to strengthen its ties with dialogue partners and has pushed for further cooperation for fair trade, increasing investments and eliminating poverty in ASEAN.