Marcos pledges support to MSMEs

THE Philippines has been one of the most dynamic economies in the East Asia Pacific region with an average annual growth increased to 6.4% between 2010 to 2019 from an average of 4.5% from 2000 to 2009, according to the World Bank.

However, it said the Covid-19 pandemic and community quarantine measures imposed in the country had severely impacted economic growth and poverty reduction. Growth contracted significantly in 2020, driven by heavy declines in consumption and investment growth, and exacerbated by the slowdown in tourism and remittances.

Similarly, the previous trend in real wages, which is expected to have a positive impact on household incomes—particularly those from the lower income groups—has been severely hampered by the impact of the health crisis, with negative consequences also for poverty reduction in the country.

With increasing urbanization, a growing middle class, and a large and young population, the country’s economic dynamism is rooted in strong consumer demand supported by a vibrant labor market and robust remittances. Business activities are buoyant with notable performance in the services sector including business process outsourcing, real estate, tourism, and finance and insurance industries.

The Philippine economy has also made progress in delivering inclusive growth, evidenced by a decline in poverty rates and its Gini coefficient. Poverty declined from 23.3% in 2015 to 16.6% in 2018 while the Gini coefficient declined from 44.9 to 42.7 over the same period. 

Nevertheless, the economy has started to recover with a 5.6% year-on-year expansion in 2021, buoyed by public investment and a recovery in the external environment.  With continued recovery and reform efforts, the country is getting back on track on its way from a lower middle-income country with a gross national income per capita of US$3,430 in 2020 to an upper middle-income country (per capita income range of US$4,096–US$12,695) in the short term.

The World Bank report said the economy is expected to further rebound, drawing strength from the recovering domestic environment with declining Covid-19 cases and wider economic reopening. Still, the economy faces downside risks from the weak external environment, reeling from an expected global growth deceleration, rising inflation, and geopolitical turmoil. The recovery is expected to also have overall positive impact on poverty reduction.

President Bongbong Marcos pledged to support the revitalization of the country’s Micro, Small, and Medium Enterprises (MSMEs), recognizing the sector’s role in post-pandemic economic regeneration, job creation, and poverty reduction.

“As your President, I assure you that the revitalization of our MSMEs is among the administration’s top priorities,” Marcos told the attendees of the recent MSME Summit 2022 at The Manila Hotel.

“I reiterate the government’s full commitment to work hand-in-hand with all stakeholders to make certain that MSMEs are protected and provided with ample opportunities, not only to recover from these extraordinary times but to grow and thrive in this modern age,” he added.

Marcos said world economies took a hit as the pandemic swept the globe, with businesses being forced to rethink how they could survive the global health crisis and emerge stronger in the aftermath.

He said the MSME summit was a great opportunity for businesses not only to see the light at the end of the tunnel but also to finally break through into the sunlight. The gathering, Marcos noted, could be an apt platform for tackling the strategies on how to revitalize MSMEs under the new normal.

“It will also be an avenue for the government and the private sector to find ways to work together, ensuring an enabling and sound environment for the recovery of the country’s MSMEs, which form part of the backbone of the economy by generating more than half of local employment,” he said.

The President said he is pleased that the MSME Summit focused on post-pandemic recovery and the promotion of digitalization, which are aligned with the administration’s priorities. He also expressed his support for the MSME Development Council led by the trade department in formulating and implementing strategic goals to improve five key business areas: business climate, access to finance, management and labor, access to technology and innovation, and market access. 

This multidimensional approach, Marcos pointed out, will allow the country to breathe new life into its MSMEs and help them move forward to a more resilient and prosperous future.

After the country navigated through the pandemic in the past two years, the President said it is now the time to come up with pandemic-proof strategies that will allow local businesses to take wing and serve its consumer base with quality products and services.

“Indeed, the success of our MSMEs is crucial to fortifying the foundation of our economy. From this end, it is my assurance [that] we will continue to stand by your side, walk down the same road no matter the circumstances,” he said.

At the same time, Marcos commended Go Negosyo, the Department of Trade and Industry, the US Embassy in the Philippines, and all other partners, describing them as the government’s reliable allies and partners for collaboration and innovation.

Also present were US Ambassador to the Philippines MaryKay Loss Carlson, Go Negosyo Founder Joey Concepcion III, Trade Secretary Alfredo Pascual, and other members of the diplomatic corps. (Mindanao Examiner)