Majority Leader Joel Villanueva. Senate PRIB file photo / Joseph B. Vidal
MANILA, Philippines — Senator Joel Villanueva emphasized the need for financial aid for Micro, Small, and Medium Enterprises (MSMEs) to boost their competitiveness and establish them as a “sustainable backbone of the Philippine economy.”
Villanueva, in a statement on Thursday, said that he believed support for MSMEs could bring increased benefits to the country.
“Marami po sa ating MSMEs ang may abilidad pero walang access sa mas malaking puhunan para mapalago ito. Anuman pong ayuda sa MSMEs, ay may potensyal na magdala ng doble o higit pang benepisyo para sa ating ekonomiya,” he said.
(Many of our MSMEs have the ability but lack access to larger capital to grow them. Any assistance provided to MSMEs has the potential to bring double or even more benefits to our economy.)
“We often refer to MSMEs as the lifeblood of the economy, but we must not forget they need a lifeline, too, to survive and grow,” he added.
The senator noted the lack of support for MSMEs despite their comprising approximately 99.5% of businesses and contributing to 64.67% of employment in the country.
Citing a report from the Asian Development Bank, he said the financial assistance extended to Philippine MSMEs, amounting to only $23 billion, pales in comparison to Vietnam’s allocation of $78 billion for its own MSMEs.
Villanueva has been pushing for the passage of Senate Bill No. 138, or the MSME Stimulus Act, which aims to establish a program that offers support and enhances the growth and development of MSMEs to stimulate job creation.
According to the lawmaker, this bill would create a “stimulus contingency fund that may be tapped for job-generating industries affected by disasters, public health emergencies, armed conflict, and other related contingencies.”
“The bill also mandates the Department of Finance through the Social Security System to provide wage subsidies to cover all or a portion of the wages of qualified MSMEs affected by emergencies, upon compliance with certain conditions,” the statement said.
Villanueva further suggested that the government use the experiences gained from the COVID-19 pandemic to support MSMEs in becoming resilient and disaster-proof during crises. Kirsten Segui, INQUIRER.net trainee