SPEECH OF SECRETARY RAMON LOPEZ
Creating Smarter MSMEs
NATIONAL MSME SUMMIT 2019
16 July 2019, Philippine International Convention Center (PICC) Manila
As delivered
Unang una nabanggit ko po ‘yung formidable na adjective di ko po alam kung bakit saan galling ‘yun. Pero actually masasabi ko na ho kaya po siguro ko naitanong na recognition ay dahil po actually sa ating men and women of the Department of Trade and Industry, ang mga partners po natin from the private sector, sila po ang nagpapagana ng mga program nationwide.
And following President Rodrigo Duterte’s “tapang at malasakit” – the platform. The DTI has put extra focus in developing Micro SMEs. It also part of the President’s Ten-Point Socioeconomic Agenda that was announced during his first State of the Nation Address (SONA) in 2016. And three years later, I’m honored to present to all of you the result of the government commitment of the Micro SME Development Council para po sa ating bayan. Our goal has been to establish vital and game-changing policy reforms, programs, and initiatives. Ang bagong programa po na di nagawa dati ay atin pong madadagdagan. Sabi nga po ni Usec. Zeny, tuloy-tuloy po ang ating mga bagong programa and new initiatives to empower our Micro SMEs and to make them smarter entrepreneurs. Lagi po nating binabanggit, every smarter para po really we can see prosperity, we can see progression sa ating Micro SME sector.
So as we always say, it is so easy to start a business but the question really is how can we grow them and how can we sustain them? How do we differentiate their products and really become big? The Micro become Small, the Small become Medium, the Medium entrepreneur become Large.
The Philippines is currently considered one of Asia’s economic bright spot, with our GDP growing over 6% sustainably for the past 15 quarters and the average is about 6.2%. We’ve been given triple B plus credit rating SME that showed how stable our macroeconomic reforms are and more reforms that we are about to implement.
Our country’s unemployment rate went down to 5.1%, and this is the lowest in nearly 40 years. And this is partly due also 1. The rapid growth in investment. For example, in the foreign investments, we’ve been approving investments to the tune of Php670B in 2017 and that was the record for the past 15 year – history of BOI. And in 2018, that will improve to Php915B record almost a trillion. Kaya po this year our target is Php1T.
Why am I mentioning investments? Because sa ating program po sa Duterte Administration, napakaimportante po ng trabaho. Investments create job. And for every job that we create, we lift one person and one family out of poverty. Ganun po ang implication nun. And the reason why I mentioned the unemployment rate as well, big part of that is also due to the self-employed at dyan po pumapasok ‘yung Micro SME development natin. Palakpakan po nating ang SME Development because kung titignan nyo ‘yung self-employed ‘yan po ‘yung lumalaki din under the employment rate statistics.
We attribute our country’s undeniable economic growth and success to the vibrant entrepreneurship spirit of the MSME sector, which plays a significant role in reducing poverty and achieving inclusive growth.
This one what we have noticed also and this is with the help of Go Negosyo. This is an advocacy for 40 years with Joey Concepcion and what we’ve noticed over the years maybe over more than a decade already, we’ve seen a transformation. We now see a lot of young people going to business for a reason, for a purpose. Hindi po last resort na ang pagnenegosyo. Dati 15 years ago, anong ginagawa mo? Siguro si George na experience to. Anong ginagawa mo? Nagnenegosyo lang ho. Natatakot ka. Nahihiya. Parang ang implication, you cannot apply a job, you cannot find a job at lahat kayo puro nagnenegosyo. At ngayon, nakikita natin how proud and passionate the entrepreneurs are, pursuing a business idea, a big idea and most probably an innovating idea — new models, new concept, new innovating platforms, even digital. And this is the kind of mindset that I believe we have started to develop. I would say that these are a cultural change that entrepreneurship job is a tough job. Hindi mo nagagawa overnight and takes years, decades and at least I think we’re seeing that we’re moving in the right direction. Dumadami na pong nagiging self-employed, the Micro becoming Small, that we see a more inclusive, more pervasive type of development.
At sa “tapang at malasakit” program po ng ating Pangulo, siya po pag nakakausap nyo siya very sincere po ng intention nya. Tulungan natin ang mahihirap, ang malilit. Sa larangan ng entrepreneurship ito po ang mind growth — the bottom of the pyramid of the entrepreneurship triangle. Kaya po ‘yung po ang ma empower natin. There’s a multiplier. Imagine that tallies 99.6% on the total number of microenterprises. It’s practically the whole triangle. There’s only 0.4 wala pang 1% of the large enterprises.
And the reason why there is na sabi nga nila na challenge na hirap na hirap na ang mga Micro bakit ganito lang ang income. So really if you really think about it, the challenge to all of us here, enablers of Micro SMEs is how do we increase the contribution? And it’s really depending on the kind of enterprise that we have, the business model that we have, the value adding our business would have because when you see the value added there is profitability. Higher value, higher pricing, competitive costing, you offer something different needed in the society and therefore the profitability is there and of course someone leading toward prosperity.
So sabi nga natin same value same hirap ‘yung profitability mas malaki and therefore the drive of the Department of Trade and Industry is how can we empower the nation to become smarter entrepreneurs. That is how we can improve lives. At napakasincere po ng intention ng ating Pangulo matutulungan natin sila sa pag-iimprove ng kabuhayan ng bawat Pilipino kung dyan nakafocus ang ating attention. And really the DTI together with ng ating mga educators, mentors ‘yan po ang passion nakikita nila.
So there’s so many of you who are really extending beyond sabi nga sa DTI “Serbisyong higit pa sa inaasahan”. I think you are all really making big difference to the lives of others. And what is life all about? To really help others, to really give for others.
So ito po ‘yung gusto kong i-sight na number. Our encouraging economic growth story is bringing more opportunities of growth for Micro SMEs. Official data from the PSA shows an upward trend in the percentage share of small enterprises to the total population of established businesses, from 8.2% in 2004 to 9.56% almost 10% in 2017. There is a decrease to share in microenterprises, as a percentage share to ha hindi numbers, from 91 to 89% in 2017. So microenterprises are leveling up to the “small” size category.
The increasing number of registered businesses since 2016 is indicative of the positive impact of the improved business climate. This is due to the government reforms and initiatives under the Duterte Administration.
While survey-generated data provided by the PSA shows MSMEs only less than a million about 900,000. We are receiving reports that the sector’s number may be more. Data gathered from the submission of the LGUs. Ang number na po ngayon 1.5M registered enterprises in the country. Aside from dumami sila they grow in number that also shows the former informal sector are now registering also. So that’s the reason why marami na ‘yung bilang ngayon nareregister sa LGU and again as a partly due to all your efforts. Dati they want to be informal ngayon they like to grow their business and to grow your business you really just have to be the formal sector sooner or later. Because for you to grow eventually hahanapan na kayo ng resibo, hahanapan na kayo ng mga papeles, documents. You want to borrow from the bank, from the formal sector so all this security, registering sooner or later. Therefore we allow the informal sector that’s the reason inenroll sila in their entrepreneurship journey, there are those who really started in informal sector ibig sabihin unregistered but eventually we know that they are also register.
7Ms for MSME Development: A Whole-of-Government Commitment
Now, in the DTI we have adopted of course the whole DTI I mentioned Trabaho, and the Micro SME — Negosyo. Of course there’s this third branch – the Consumer Protection under po ‘yun kay Usec. Ruth Castelo. Kasama din dyan prices and standard compliance. But in the MSME development we adopted a 7M approach. So pasensya na dun sa mga laging nakakarinig ng 7Ms siguro memorize nyo na rin. Pero ito po this has really provided a framework for our Micro SME development. MSME development is an important pillar of the country’s public-private partnership. In 2017, the Philippines’ chairmanship of the ASEAN paved a way for the country to lead the region in promoting dynamic and innovative MSMEs. Actually, Micro SMEs they call it MS. MEs para madali kasi nabubulol sila sa MSME. In ASEAN and also in WTO it has become already now in agenda because of the Philippine intervention. So worldwide, inaadopt na po ang SME development critical development strategy for inclusive growth. This was due through the adoption also of the 7Ms Framework for Successful Entrepreneurship. This strategy specifically identifies Mindset Change, Mastery, Mentoring, and we also provide the Machines, different Models of Negosyo, Money at pag may produkto na Market access. So it’s a 360 degree approach to SME development and it guides us in the conceptualization and implementation of policies and programs.
Recognizing the need to lay out all these strategies and action plans, DTI, as chair of the Micro SME Development Council, has been leading the multi-sectoral and multi-stakeholder effort. This concerted action will provide mechanisms, policies, and programs that will benefit and empower those at the bottom of the pyramid.
MSME Development Plan 2017-2022 Accomplishments
In the past three years, the country has been moving forward on the momentum set by the 2017 MCA or the Manila Call to Action, the approval of MSME Development Plan 2017-2022 or SME Development. We have put forward the MSME Development Plan for 2017-2022. So sinabay po natin ‘yan sa Philippine Development Plan.
It adopts five strategic goals. These include: (1) improving business climate; (2) improving access to finance; (3) enhancing management and labor capabilities; (4) developing access to technology and innovation; and (5) expanding access to markets.
MSMEDP Strategic Goal 1: Fostering a Convergence Government Mindset (Business Climate)
First on our list is the game-changing passage of RA No. 11032, or
the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018.” Known as the EODB Law, this legislation will benefit the Micro SMEs. Ibig sabihin, napakabilis siguradong mabilis ang processes getting permits in government. Ayaw ni Pangulong Duterte na tumatagal ang mga proseso sa mga gobyerno, mga government offices that’s why they make sure that ang mga proseso sa gobyerno ay di tatagal sa 3 days for simple transaction, 7 days for complex transaction and 20 days for highly technical transaction.
At ito po ang effort na to ay pinangunahan po ni Usec. Rowel Barba, Asec. Jean Pacheco at kasama po natin dito ay ARTA o Anti Red Tape Authority, Civil Service Commission, and Office of the Ombudsman.
Sinisigurado po ng ating Pangulo na hindi po nahihirapan ang ating mga kababayan. Allergic po si Presidente dun na pipila, naghahantay, di lang lingo linggo, buwan buwan pag minsan may taon na po na paghahantay sa pagbigay ng business permits.
Under this Ease of Doing Business law, kasama na dyan ‘yung established na mga Business One Stop Shop and eventually a portal — one business portal wherein that smartphone will now be our device kung saan tayo magreregister ng negosyo later on. And imbis na pupunta ka sa DTI, SEC, BIR, LGU Mayor, SSS, Philhealth, Pagibig — lahat ‘yun lalagay na sa smartphone dun ka na mag fifill up. And less than one hour na fill up mo na you are able pay to e-payment system and you have option to claim your business permit. ‘Yun po ang goal natin. Target po before the end of the year. Meron na po kaming nagawa na prototype so nakita ko na it’s possible connecting the SEC, BIR etc.
We are also vigorously implementing RA No. 10644, or the Go Negosyo Act. This law lowers the cost of doing business for MSMEs by bringing government services closer to the community, nabanggit po ni Usec Zeny kanina. We now have 1,071 Negosyo Centers, 824 during the time of President Duterte, over 50% during the time of President Duterte.
These Negoyo Centers provide Micro SMEs na nakakalat to bawat municipality. If you want to register your business, business name registration; business advisory; business information and advocacy; product development; trade promotion; financing facilitation – they will tell you kung saan may malapit na P3 Pondo sa Pagbabago at Pagasenso, microfnancing and investment promotion. It also tells us syempre Micro SMEs that you can register in barangay micro business in the Negosyo Center.
The Barangay Micro Business Enterprises (BMBE) registration set up in the DTI Provincial Offices (PO) through the Negosyo Centers. This resulted now 80,000 BMBE registered wherein before it starts in the DTI mga 60,000 yan because before it supposed to be registered with the LGUs. Because in the LGUs siguro nahihirapan sila magregister mostly for consideration so di na lumaki yun. Now it’s now 80,000 and 22,714 business names registered 585,174 services rendered to Negosyo Center clients.
The NCs also facilitated 5,743 loan applications to partner financial institutions (FIs) with 2,727 MSMEs availing of loans. So ito po ‘yung mga nakafacilitate. In fact overall, DTI has assisted more than 2M clients, reaching more MSMEs nationwide. That’s exactly 2.8M clients. So kinocompute ko the unemployment rate I mentioned earlier is down to 5%. So ang unemployed 5% mga 2M. So technically we should be reaching out this 2M to offer them business alternatives, business opportunities. So far our Negosyo Centers has reached already the 2M mark. 2.8M na ang kanilang natulungan. We want to continue the questioning, the mentoring, pagnenegosyo so that they can be transformed into smarter entrepreneurs as we mentioned the ultimate goal of all our programs.
We also worked to simplify and fast-track the process of getting the License to Operate (LTO) alam natin problema po ito ng ating Micro SMEs — LTOs, CPRs from our partner FDA. But don’t worry, with the EODB law our group, Usec. Rowel, Asec. Jean are working on how can we really fast track the processing. Kaya nga sumunod sila 20 days ang maximum. So those steps within their control should not be more than 20 days kasi highly technical so that is the challenge there.
In fact, we’ve started a pilot program in the NCR kung saan if you are a microenterprise with less than Php3M size of business and low risks products, you will just register and have LTO clearance you won’t need anymore the CPR. So exempted na po and Certificate of Product Registration. So maraming matuutwang mga microentrepreneurs.
On other initiatives to improve the business climate, this is a new one recently signed by President Duterte, RA No. 11232 or the Revised Corporation Code of the Philippines. Ito inaallow na ang one-person corporation (OPC) so di mo na kaylangan maglagay ng limang directors, stockholders. One-person corporation can now be registered and with no minimum capital requirement to register. So ang alternative ngayon if you’re a micro start-up either to register with the DTI kasi for a while you said wag na natin gawin ‘yung DTI na business registration pero you don’t realize na in the DTI mas madali pa rin siyang paraan if you want to start your business and register wala na ibang documents required. So we are keeping it just for that reason. Kasi if you go to SEC, the One-person corporation facility is you have to submit some data, some information and documents. So we really have that some option the DTI way. And as you know, ‘yung DTI business registration medyo mayabang sila Usec. Rowel, Asec. Jean — 15 minutes na lang po ngayon ‘yan di na 3 days. But sabi nila kahapon 7 minutes na daw kasi online na. So congratulations to the group of Ease of Doing Business.
MSMEDP Strategic Goal 2: Delivering Affordable Money Access to Filipinos (Access to Finance)
Following the President’s directive to kill the “5-6” money lending system, to provide easy access, no collateral micro financing fund for our MSMEs, the government set up the Pondo sa Pagbabago at Pag-asenso. We started this with the President I think December 2016. So nagumpisa na noong 2017. As of May 2019, ‘yung pondo po na Php2B ang napautang na ay Php3B. Bakit? Kasi napaikot na, nababayaran and nabibigay pa natin. Php3B na ang napahiram and they were released to 83,000 beneficiaries ganun kadami. And this year with the new budget, madadagdagan na naman po. Ang final ang alam ko Php1.5B so that will grow to another, the Php2B will grow to Php 3.5B. Of this amount, Php7.5M were released to 457 borrowers in Marawi as part of the Marawi Rehabilitation Program. Php26M to 335 families of soldiers killed or wounded in action. So si Presidente natulungan talaga ‘yung mga nahirapan meron din programa sa Administration, meron pa ngang financing wala munang babayaran in 2 years — no interest for those who killed in action/wounded in action families. And Php3.1M to 108 borrowers dun sa mga na displaced nung closure of Boracay. That’s been handled by SB Corporation.
Now P3 is now available in 80 provinces through 339 accredited conduits. So what we always do is we always start in the private sector so we can spread out the service immediately. So in the pipeline for accreditation are conduits from 8 more provinces. DTI with the SB Corp. also inked a partnership with ePLDT subsidiary Curo Teknika. This partnership will allow MSMEs who wish to avail of the P3 program to speak to a P3 contact center agent through P3 hotline ‘yung 651-3333. Through this program, we can now reach out to entrepreneurs at the grassroots and the marginalized communities and assist them to start or grow their business.
In terms of MSME response and recovery from natural disasters, DTI recently partnered with Cebuana Lhuillier Insurance Solutions, AXA, GIZ on the latter’s Regulatory Framework Promotion of Pro-Poor Insurance Markets so mga micro insurance naman po ito.
Next is I want to highlight the recently signed RA No. 11057 that’s the Personal Property Security Act (PPSA). But these are all the passing remark I was telling you earlier. This law will boost access to credit kasi in short we have partnership with the IFC the International Finance Corporation wherein di mo kailangan ng collateral ibig sabihin movable collaterals, non-traditional collateral such as account receivables, inventory, warehouse receipts, crops, livestock, machinery, and equipment can now be considered as chattel mortgages and you can borrow and get those.
We, at DTI, believe that this will greatly impact our Getting Credit indicator. Dito po sa Ease of Doing Business rating of the World Bank.
Financial inclusion is a stated priority of government, which goes beyond access to bank loans. This should also include creative mechanisms for tapping equity and venture capital financing for promising Micro SMEs.
MSMEDP Strategic Goal 3: Integrating the Right Entrepreneurial Mindset, Mastery, and Mentoring (Management and Labor Capacities)
Having realized the importance of creating a positive entrepreneurial spirit for Filipinos, we have successfully installed new initiatives to lead a nationwide paradigm change. Ito po ‘yung kinikwento ko kanina. The cultural, entrepreneurial revolution that we all want to happen.
And a massive campaign for entrepreneurship development was launched in 2016 by DTI in partnership with PCE-Go Negosyo, the HAFFI, Philippine Franchise Association, Philippine Marketing Association, the labor entrepreneurs, to all the mentors of the different association as well in doing all this Kapatid Mentor ME Program. So we put a brand also a Kapatid, kapatid in business, kapatid po ng Micro SMEs. Since its establishment, this program has been attended by 42,261 participants and has produced 5,393 graduate mentees kasi lahat ng umattend only about 25 will be selected including the mentoring program na 9-week program naman po ‘yun covering different subjects. Product dev, marketing, financial literacy, finance, accounting up to the design packaging etc. up to the business improvement plan preparation. At saka sila magprepresent ng parang thesis nila – thesis improvement plan. ‘Yung mapipili pa normally there would be a micro financing group at the end of that program really to fund ‘yung mga BIP — business improvement plans nung mga entrepreneurs.
So tuloy tuloy na ‘yung pag improve ng negosyo. Marami na pong sumali over 5,000 divided into 322 batches covering 101 provinces at lahat po ito ay naging posible dahil po sa Regional Operations Group. Mga Regional Directors, Provincial Directors, mga staff, SMED together with our partners here. Can I ask all the Regional Directors, Provincial Directors and regional staff at mga SMED Council partners to please stand and be recognized. Maraming salamat po sa inyong mga tulong kayo po ang dahilan kung bakit lumalaki ang Micro SME sa ating bansa at nagiging mas matatalino ang mga Micro SME.
So 322 batches over 101 provinces di 101 probinsya natin ibig sabihin umikot tayo umulit sa mga probinsya. As of June 2019, there are already 677 certified mentors under the program. So ang mga mentors po pwede po bang maimbitahan na tumayo din para mapasalamatan at marecognize. Those entrepreneurs, those private sector, mga agri entrepreneurs sila Dr. Dar and the gang and the mentors.
Ang nilaunch po namin ngayon online mentoring. Q and A online. So ‘yung online mentoring natin ita-tie up sa PTTC. We have PTTC ASEAN SME Academy para lahat ng mentors nakaonline dun and anytime micro entrepreneur can just go online. You know when you’re in business dadami ang question sayo anytime of the day even middle of the night. And you just have to ask someone to what’s next step to take. So questions in our daily lives in business. So very important ang mentoring.
Ngayon nabanggit ito ni Usec. Zeny. We never stop because you know because ang organization ng DTI is only up to provincial level – Regional Directors, Provincial Directors and the staff. The reason because of the Negosyo Centers were now able to go to the municipality pero di pa kumpleto because of budget consideration and ongoing. At least we establish namin ‘yan before and during this time and now 1,071 so target mga 1,400 but the challenge does not stop there. We challenge the Regional Operations Group. Alam nyo po bakit merong barangay health clinic? Bakit merong mga barangay social worker? Bakit walang barangay Negosyo Centers? Wala tayong budget, wala tayong tao. DTI we’re only few thousands but there are less 45,000 ba? So wala.
Again, na-challenge na naman kami and another initiative to be started. So ganito na lang, we partner with all the barangays, identifying through the barangay chairman, at least one negosyo advocate and di tayo ang magswesweldo dun, ‘yung mga barangay. We tie up with them and we do our Negosyo Serbisyo sa Barangay using their organization. So sabi natin lahat ng mga baranggay dyan under the Negosyo Center, under the municipality just get their negosyo advocate some kind of negosyo disciple and the DTI negosyo disciple will now lead to the Negosyo Center. So lahat sila malalaman nila meron palang ganyan, meron pala tayong Negosyo Center malapit satin, pumunta tayo run.
Ito pa the Negosyo Center people and mentors will now go down to the barangay to do the program there. ‘Yun po ‘yung kinikwento ni Usec. Zeny na lahat po naabot natin na barangay ay ang laking pasasalamat dahil nakikita nila DTI in action kasama ng mga private sector mentors naglelecture sa barangay basketball court, sa barangay center because our program will be meaningless kung di tayo umaabot sa grassroots.
Andyan po ‘yung kailangan talaga ng tulong ng ating mga kababayan — grassroot level. Kaya kahit saan basta negosyante, gawan ng paraan kaya tayo umaabot sa grassroots and with the help of our partners — private sector and DTI at ngayon may bago tayong partner kinausap na rin natin ‘yung DILG. They committed to help us in our program. Kaya po sila magiissue rin ng memo. But despite of lack of budget, at least nakaabot na tayo sa 693 barangays. ‘Yung mga Negosyo Center sa mga regions and provincial offices pinapadala nila ‘yung mga seminars that they have. Assisting 28,193 clients nationwide so ang dami na. And it is had develop 200,000 new enterprises from barangays. Ito pa nakafocus po sa 4th to 6th class municipalities that is suspected to provide more than 500,000 new jobs.
You know for every job again na magawa natin tanggal ang isang tao to poverty. Tanggal ang pamilya nya to poverty. So in 500,000 and we continue to reach the 2M and kung pumunta sila sa Negosyo Center at naaprubahan natin, hopefully ‘yung 4 percent na ‘yun – ‘yung 2M mabawasan na talagang bumaba talaga ‘yung unemployment rate at lahat may kabuhayan na. ‘Yan ang talagang inclusive growth.
As a nation of vastly young population, we have prioritized the implementation of Youth Entrepreneurship Act, or RA No. 10679. Ito naman ang mga kabataan, comprehensive package of interventions to help and encourage young Filipinos to develop their entrepreneurial skills.
We recently organized a roadshow in Mindanao to introduce Youth Entrepreneurship Program as an avenue of opportunities for young people to help them explore their full potential to become successful entrepreneurs. So ito ‘yung kinikwento namin na mga young entrepreneurs to have full experience to ideas. It’s not the usual negosyo models to really asking them to have more innovative businesses. And innovation is really their cup of tea andyan na ‘yung mga digital related enterprises that they do, platforms that they develop.
Now, trainings and seminars meron din po tayo we have the Philippine Trade Training Center (PTTC). That is the center PTTC that used to be focused on the exporters, developing exporters, teaching them for safety, how to enter this market, the FTA, the requirements etc. Now, we’ve converted the PTTC also into a Global Micro SME Academy what we call GMEA. Kaya po online ang dedevelop natin. With PTTC anytime any entrepreneur can with this seminar in their area can go to PTTC and enjoy the lectures, the different topics that they taught there.
So the PTTC GMEA will provide now SME’s entrepreneurial education modules. This is a one-stop multi-platform online learning as well and information resource to provide training and mentorship. Also mga SMEs provided also by some other ASEAN mentors.
The Academy offers around 50 training courses on finance and accounting, management, marketing, operation everything even logistics. DTI spearheaded the creation of public-private partnership in Strengthening Disaster Resilience among MSMEs. Disaster resilience on the Micro SMEs we have a lot of programs there. These were participated in by about 3,000 MSMEs. With the assistance of GIZ Philippines, DTI has also capacitated the Micro SMEs to improve their business operations to be more environment-friendly and climate-smart. We have benefitted more than 21,000 Micro SMEs.
We have also expanded our vocational and training centers for Micro SMEs. We were working with TESDA, with the group of Usec. Fita for the Innovation and capacity building. The TESDA we are working hand-in-hand to promote the Skills Training for Employment/Entrepreneurship Program (STEEP). Now the skills employment in TESDA we suggested the TESDA that when they train for skills di lang for employment, ‘yung skills pwede din pang negosyo. So let’s say this coffee making become a barista to put up your own café and many more.
Even technology related training – agri sila Sen. Cynthia Villar so many farm schools TESDA accredited they become now better agri -entrepreneurs with the farms schools. I think 1,800 na ang farm schools nila Senator Villar. They are also TESDA accredited farm schools. So they send po ng mga scholars in TESDA mag-aral dun and they become better farmers and generating income.
We have also focused on program with the Gender Responsive Economic Actions for the Transformation of Women (GREAT Women) Platform in ASEAN. Also, the Productivity Toolbox that features various productivity training programs etc.
We have laid down tremendous and groundbreaking initiatives to achieve our goals of the inclusive growth. We want to see the micro become the small, the small – medium, medium to large.
MSMEDP Strategic Goal 4: Providing the Right Machines, Promoting Models of Negosyo (Technology and Innovation)
Aimed at increasing the productivity and improving the competitiveness of MSMEs within the priority industry clusters. We also provide the Shared Service Facilities. So parang ano to kung sa agriculture these are the tractors. Ito pinapaganda po natin ang productivity ng mga group of entrepreneurs normally cooperatives. Growers of calamansi, ‘yung mga calamansi processing plant, equipment. And now quality products of calamansi so mas higher value nila mabebenta ‘yung calamansi nila. So example ko po ‘yun. So let’s say for coffee roasters etc. So meron na po tayo ngayon na 2,448 SSFs across the country, 439 SSFs worth Php427M were established under the Duterte Administration.
Under this Project, we also provide machines and equipment through the Fabrication Laboratories (or FabLabs). Ito po ‘yung makakatulong sa mga Micro SMEs in mga 3D painting, mga paggawa ng mga prototype, scale models of their products with the help of technology. To date, we have already 19 FabLabs established nationwide under the care of select state universities and colleges (SUCs), the Philippine Science High School (PSHS) kasama dyan at mga LGUs and non-government organizations (NGO).
Technological upgrading assistance is also made possible through the continued implementation of the Department of Science and Technology’s (DOST) ang ating kapartner pagdating sa Small Enterprise Technology Upgrade Program (SETUP). Here, MSMEs are provided with technology intervention packages in the form of again ‘yung mga equipment and technical consultancy services and many more.
To date, more than 700 MSMEs have received innovation-enabling fund support to upgrade their technological capability. This contributed to around 40% average productivity improvement in their operations and generated more than 42,000 jobs.
Fulfilling the need for more intensified information product development, and technology match-making, we have successfully conducted three Pack! Pinas Roadshows in Cagayan de Oro, Tacloban, and Cavite. Dito we’re just have a limited budget. The Pack Pinas is our new program. Again, po ng DTI kung saan we are now making Micro SMEs together with packaging sources because you see the products of the Micro SMEs especially Micro entrepreneurs.
Tapos macocompare mo pag pumunta ka ng Thailand, Vietnam ang ganda ng packaging. The usual issue ng sarili mong order ng quantity requirement finally meron ng dagdag design. Design Center will help you on the design. Pagumoorder ng mga packaging materials there is always a order of minimum requirement — 10,000 ,50,000 units etc. So how can they afford that? So with roadshow we are able to match them with more suppliers. Kasi suppliers also could be the source nung mga packaging innovations. So they can be exposed in new packaging.
And many of this in the OTOP. Makikita natin ’yung OTOP and andun na din sila sa Go Lokal. Kasi when they get to be improved, they get to be more marketable. As we say the consumers will buy your product not because you are a Micro SME product. Binibili po ‘yun kasi po they’ve seen great value on that product. Remember you’re not always there to sell your product. Pag nandyan na ‘yung product mo on the shelf ‘yun na ang magsasalita para sayo. So you can attract your buyer siya na ‘yung magsasalita for you. You did that to sell itself. Kaya nga napakaimportante ng packaging.
So related to the package assistance, we have implemented the One Town, One Product (OTOP) Next Gen. Through this initiative, we have assisted Micro SMEs, developed or improved 11,163 products, and generated Php1.9 M in sales. So ‘yung mga products na ‘yan we can see in the OTOP Philippine Hub.
Over 18,000 livelihood starter kits have been provided to entrepreneurs in vulnerable areas. Meron din tayong Livelihood Seeding Program. Ngayon, we support also Senator Bong Go’s program — ‘yung mga nasunugan naghahanap ng livelihood starter kit. ‘Yung mga provincial offices natin nangunguna pag may sunog the day after nandun na sila tumutulong po sa pagbigay ng livelihood dun sa mga previous negosyo na nasunugan. At dito po, this program with the ROG – Usec. Zeny group, Usec. Boy with the funding ay nakadevelop po tayo ng mga disaster kit. Ito pong disaster kit ay also mga livelihood kit na binibigay ito dun sa mga Marawi rehab program natin, those affected by disasters and calamities, the Boracay, the resettlement areas in many parts of the city, the NCR. Kaya ho this is something din for us because again DTI has a limited budget for the kits. You know naman po wala kaming budget. So again we have to request some change in budget so that we can allocate. Kasi dun sa calamity lilikom pa kami ng budget para magkaron ng livelihood kit. So what we are trying to do is that we had inventory the livelihood kits to most requested so that every time there is a calamity they have the inventory that we can see. So that is another new program from us.
Also we have advanced our Bangon Marawi initiatives. To date, 11,537 internally-displaced persons (IDPs) have been given dressmaking, bigasan, sari-sari store, baking, carenderia starter kits since the Marawi siege in 2017. We have likewise awarded 8 SSFs to 8 cooperatives in Marawi. So under the group of Usec. Gani, RD Linda and the Mindanao RDs also helping us here. Palakpakan po natin sila.
To bring prosperity to the countryside, we have assisted 8,931 indigenous peoples (IP) and 32 tribal groups from 13 poor provinces to develop their products and integrate them in the mainstream market. So Asec. Aminah is our leader here. Also we recognize these tribal groups include Subanen, Samal, Matigsalug-Manobo, Higaonon-Bukidnon, Tilaandig, Kamigin Tribu, Mangguangan, Dibabawon, Teduray, and Mamanwa. Assistance provided include also skills training, introduced also in Negosyo Center briefing. Kasi the problem is many of these RDs, cannot go down to the cities or go to the nearest NC. So we are the ones going there to their communities. So ‘yun po ‘yung difference nung program na to. They don’t go to us, we go them. Again, limited by budget.
Almost 380,000 jobs have been generated by priority industry clusters. Ito naman ‘yung industry cluster approach. This strengthens dominant and emerging industries, as well as subsectors, sectors that demonstrate market and income potentials. Because of the industry cluster approach program, 379,216 jobs, Php9.1B investments, US$907M exports, and Php28B domestic sales had been generated.
Again, another initiative we’ve launched under the DTI Cluster Program or the industry clustering. So from coffee to farmers locally produced. But now we started the one in line store with RD Myrna sa CAR sa Baguio City. So we started the cafeteria, we want to multiply this into kiosk cart type so that we can put into our offices, all those government and even private offices.
Industry clustering is also seen in the RAPID. RAPID program is a plural outgrow entrepreneurship kung saan we link the agri farmers with the Micro SMEs. So we upscale, train, give inputs to the farmers then pag process ng Micro SMEs, which also with the technology. So all that is now integrated with RAPID program and we cover the areas of coffee, coconut, fruits and nuts. And dun sa fund assisted by IFAD and then we have other programs I’ll just discuss them next time.
‘Yung AFFI they help us with their commissaries to allow us to do mga franchise negosyo livelihood para anyone who would like to franchise ng little brother version nung big franchise pwede na magumpisa ng negosyo. So we have a Tokyo Tempura Jr., Sisig in the City Jr. mga ganun. It’s a new program that we will develop in coordination with our partners from AFFI. Kahit sino pwede magpartner dito.
MSMEDP Strategic Goal 5: Expanding Opportunities to Local and Global Markets (Access to Market)
Initiated by DTI in collaboration with select retail partners, we established nung mga Go Lokal!. This is a marketing platform may example po tayo sa Mezzanine. This idea here is in addition to the national trade fairs, my problem there is that is just a 3-day fair usually we get Friday to weekend — temporary. But we’re looking for mainstreaming Micro SME products for free exposure. So we partner with retail stores, the malls — City Mall, Robinsons, Ayala, Rustan’s to give us a free space for Micro SME products to get to be exposed for free. No need to pay rent. And these are contribution to being discovered. Kasi once they were discovered dyan na lalaki ‘yung negosyo na yan. So it’s like a trade fair 365 days a year. No rent. No listing fee.
So thanks again to our partners – City Mall, Rustan’s, Robinson, SM Kultura, Ayala Mall, Duty Free, Enchanted Kingdom, Shopwise and all those to be partners. We assisted 478 Micro SMEs na, available dyan sa Go Lokal!, 220 of which penetrated in the mainstream so nadiscover sila and mainstream na sila. 1,200 products have been developed and almost Php149M sales.
Now the Go Lokal! has also go global. So local to global. There will be a new brand kasi in abroad pag nilagay mo na Go Lokal, baka di associate, so we have to establish our own Philippine brand which is Marahuyo—a Tagalog vernacular word meaning “to be enchanted” or “to be attracted” so idedevelop ni Asec. Rosvi ‘yan so ilalaunch po natin ‘yan. We see this abroad, Inumpisahan ko sa Japan kung saan naman ‘yung grupo nila Usec. Rowel, Foreign Trade Service Core sila Francis, STR Dita — we launch already a Go Lokal! branch in Japan.
WAY FORWARD
We see brighter days ahead for the modern entrepreneur. We’re now more focus on training smarter, globally competitive Micro SMEs so we can really find now in the international market. This intervention is resolved under Duterte Administration we can have improve their competitiveness in business sustainability for them to become part of the global value chain. But challenges in SMEs remain, So disruptive innovations are happening, and the government must provide an enabling environment for Micro SMEs to fully tap their potential. What’s more, we must build more confident and competitive Micro SMEs. So we are integrating in all the Negosyo Centers many of the one digital transformation, make your business, to gain access also using commerce etc.
Along with the 7Ms Framework and the identified priority under our plan. The MSMED Council will push initiatives to support the plan’s vision. We will enhance the entrepreneurial mindset, the mastery and mentoring program, institutions that deal with the MSME and their concerns, we will strengthen them. So the MSMED Council, Negosyo Center, SB Corp., our partners in the private sector even when it comes to financing. Creation of more financial intensive modules. Introduction of alternative financial instruments. Formulation of an appropriate regulatory framework to allow more banks and financial institutions to cater to Micro SMEs. This will be lead by Bangko Sentral ng Pilipinas as our partner.
For the 18th Congress, we are pushing for the amendment of the Magna Carta for Micro SMEs and the enactment of a law that will institutionalize the P3 microfinancing Program.
The proposed amendments to the Magna Carta we will continue hopefully for the credit resources with the support of Senator Cynthia Villar. Also to set aside the 10% of the loan portfolio for lending to MSMEs. This will also provide an alternative compliance through lending by microfinance institutions (MFIs) and cooperatives. Amendments also to strengthen the SB Corp. both in terms of capitalization and exemption from BSP’s supervisory powers on quasi-banking operations. Lastly, hopefully maasahan natin ‘yung mga provision of free shelf allocation by private malls and supermarkets of at least 10% of their total selling area to qualified Micro SMEs. So again, pandagdag market access dito for SME products.
Government Procurement Preference for SME product services so para sa bidding, i-priority ang Micro SME products pati na supplier. Plus payment provision for SME suppliers para may bayad kayo kaagad at di na mabibitin ang working capital.
We assure you that the end goal of the enactment of the Magna Carta for MSMEs and P3 Bill would be very good in supporting more MSMEs, gaining more market access and promoting other models of Negosyo. As mentioned we’ve launched the franchise Negosyo sa Bayan.
CONCLUSION
The MSME development is the embodiment of our President’s “Tapang at Malasakit” program to help lift more of our countrymen out of poverty, and bring long overdue economic development to all the parts of our country.
By accelerating the 7Ms strategy for MSME development, I am confident that our economic priority agenda to achieve inclusive growth and shared prosperity for all will bring into sharper focus the areas of higher importance and greater impact for our Micro SMEs. And all this is aligned in President’s vision of uplifting our people’s quality of life for a better tomorrow.
Sa ngalan po ng MSME Development Council at ng DTI, maraming maraming salamat po sa patuloy ninyong suporta at paghahatid ng tunay na pagbabago. Mabuhay po tayong lahat!