[Acknowledgements]

 

To our partners in MCPI and APPEND, to all the advocates here from DTI, Bangko Sentral, and the Micro Finance Council, Magandang hapon po sa inyong lahat.

 

Today’s event is another milestone in the government’s efforts, to promote the Micro SME in the country. Micro SMEs, which is you know is a priority program of President Rodrigo Roa Duterte. Empowering the Micro SME, not only with the know-how and mindset, but this time with the financial support is definitely a key tool to upgrade any micro enterprises we have in the country today. And this to us is the real solution to poverty and inflation. We are empowering the people. We rely to steady jobs and empower them. And as they say, don’t give him a fish but teach him how to fish.

 

We all know that MSMEs is about 60% provider of jobs in the country and 99.6% accounting for all the enterprises. It is a huge contributor to the economy. However, one factor that used to be a challenge, which is GDP contribution, gaining about 40-45%. We have to adapt, the challenge for us to really empower them to increase their know-how. And we want to create smarter entrepreneurs basically to increase the value-added capability, and that is given through mentoring, seminars and kind of programs that we have.

 

The value-added is given in ability to prosper more. As you know, the value-add gives better profitability, and that is the real solution to poverty. Sometimes, in order to get there, we also need of course, almost all the time, we need the financing. And the kind of partnership we are entering right now is one that we really need. Financial solution is really important. As they say, when you want to be good in corporate, you have to gain education. But when you are a micro entrepreneur, you need micro financing. ‘Yun ang kailangan po.  It is really difficult to have this kind of set-up but definitely with our partnership, we will be able to create a much clearer environment [and] more opportunities for all.

 

More entrepreneurs before would be engaging in the “5-6”. Nagagalit ang ating Presidente. He wants to get the “5-6”, not the lenders but the “5-6” assistance. That’s why, we try what the micro finance institutions are doing. We also launched anti-“5-6” program which is the P3, Pondo sa Pagbabago at Pagasenso. It is being administered by SB Corporation, with micro finance institutions and cooperatives as partners. That is our way to also propagate a low-cost financing at the same time low collateral immediate taxes in financing. And we all know that MCPI, the members, are being a partner in that endeavour.

 

The Memorandum of Agreement (MOA) that we are signing today is another step in this direction of empowering MSMEs to expand the financing ecosystem of the DTI’s Negosyo Centers and also the market access. We have a product because of the private market access, and provide models of negosyo for those who have no big idea right from the start. We can offer that in Negosyo Centers. Now, in this partnership, we can offer more on micro financing.

 

With the knowledge, information, resources, and networks of our new partners, we can give entrepreneurs who seek help from our Negosyo Centers greater access to financing. Moreover, this partnership will widen our network of support—from financial providers to industry associations. Thanks to this network, entrepreneurs will now have more options not only for loan products, but also on savings, electronic payments, and insurance.

 

This partnership will also boost the programs that we have in DTI, as mentioned, of course, aside from Negosyo Centers, the 7Ms that we have with this we can maximize the marginal aspects of 7Ms.

 

Putting it all together, as our MSMEs become financially literate and can now make sound financial decisions, they will also have access to the right financial service providers and products.

 

To conclude, while DTI is committed to MSME development, we are glad for the support from our fellow government agencies and private sector partners. That’s why I want to thank BSP, MCPI, and APPEND once more for working with us on turning this project into a reality.

 

Together, we will realize the President’s vision of addressing income equality and lifting the quality of life for all Filipinos on the back of greater inclusive economic growth.

 

Thank you po at mabuhay kayong lahat.♦