Lacson-Sotto tandem wants central financing facility for MSMEs

MANILA, Philippines — If elected, the Lacson-Sotto tandem plans to set up a central financing facility where funds for assistance to micro-, small and medium enterprises (MSMEs) will be pooled.

According to presidential candidate Senator Panfilo Lacson, having one facility for assistance funds will make it easier for MSMEs to access aid if they are affected by dire circumstances such as the pandemic, the Russia-Ukraine conflict, climate change, or other calamities.

Lacson is running under Partido Reporma together with vice presidential candidate Senate President Vicente Sotto III, who is under the Nationalist People’s Coalition.

“Ang iniisip namin ni Senate President Sotto rito, i-streamline natin. Bakit di natin i-pool sa isang pondo kung saan ilagak natin para alam ng MSME na tinamaan ng pandemya o anumang crisis, giyerang Russia sa Ukraine, sa climate change, kalamidad, meron agad silang pupuntahan na ahensya kung saan accessible sila?” Lacson said during the Go Negosyo “Kandidatalks” interview aired Wednesday.

(Senate President Sotto and I were thinking, why not pool all these into one fund to help MSMEs, whether they are hit by the pandemic, the conflict in Ukraine, climate change, or other calamities? The bottom line is they will know where to seek assistance.)

MSMEs account for 99.5 percent of the country’s enterprises, and 63.2 percent of the labor force, Lacson noted.

But while various government agencies have at least 20 programs including microfinancing and credit facilities, MSMEs may not be aware of these assistance packages, according to the senator.

Worse, he said, most MSMEs resort to borrowing from private banks because they are not fully aware of or do not fully understand the requirements to avail of government assistance.

“Isip namin ni SP, streamline natin [Senate President Sotto and I are thinking of streamlining all this],” Lacson went on.

During the Commission on Elections presidential debate over the weekend, Lacson said he will prioritize MSMEs in expediting the recovery of the country’s economy from the pandemic.

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“Ang sektor na uunahin ko po ay ang MSMEs (micro, small, medium enterprises). Bakit? Sapagkat 99.5 percent ng ating mga enterprises ay nagmumula sa MSMEs, at ang nawalan ng trabaho mga 400,000. Mula sa 5.7 million, naging 5.3 million na lamang,” Lacson had said.

(The sector that I will prioritize is MSMEs. Why? Because 99.5 percent of our enterprises come from MSMEs, and those who lost jobs are around 400,000. From 5.7 million, it’s just 5.3 million.)

This, as he raised the need for a targeted and comprehensive fiscal stimulus.

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