President Ferdinand R. Marcos Jr. has directed the Department of Trade and Industry (DTI) to uplift the condition and competitiveness of the country’s micro, small, and medium enterprises (MSMEs) through digitalization and the use of technology.
“Ang marching order is really to be able to uplift the income and to be able to uplift the MSMEs and also to make use of digitalization as a way to be able to live and to level up the MSMEs,” Acting Secretary Cristina Aldeguer-Roque said in a news forum in Quezon City on Saturday.
“So, because remember if kung na-increase natin iyong benta or iyong income ng MSME even by 10 percent, ang laki nang contribution nito sa economy ng bansa – and this is an instantaneous increase,” she pointed out.
Aldeguer-Roque, who was the undersecretary for the MSME prior to her new appointment, stressed the need to use the digital platform to make MSMEs competitive, considering the Philippines’ large population of 115.6 million, which will be a big market for MSME products.
MSMEs must take advantage of this, Roque said, adding the country’s large population is actually attracting foreign investors to put their money in the Philippines.
“This is a very important sector of the businesses in our country because this comprises 99.5 percent of the business in our country and 60 percent of the labor force therefore this cannot be ignored,” Roque said of the MSMEs.
Roque also mentioned the DTI’s five-point strategy for the MSMEs that she plans to implement.
Part of the strategy is focusing on digitalization and artificial intelligence (AI), diversification, and the provision of funding.
Because the nation is composed of more than 7,000 islands, the country must go digital to disseminate information, sell products, and get the message across, Roque said.
“So, we must go digital and we must also use AI to be able to help us or to assist us in m mostly like, example question-and-answer. So, instead of putting time and effort to answer questions or replying to different text messages or inquiries, we can use AI to be able to do this part while we focus on growing our business,” she said.
In terms of diversification, Roque said businesses cannot rely on a single income, and must have a second source to ensure security and profitability.
To fund MSME operations, the government has been extending easy loans with low-interest rates.
“When we started to come in SB Corp., we made loans easier for the MSME – before you need to have a collateral,” Roque said of the financial assistance scheme to MSMEs.
“So, we have to understand that MSMEs don’t have collateral, they’re just, actually some are startup, some are just getting started so definitely they don’t have collateral,” she said.
Roque served as the chairperson of SB Corp.—the Small Business Corporation, which funds the MSMEs. PND
