DTI Secretary Fred Pascual (Photo from BSP Investment Relations Group)
DTI Secretary Fred Pascual (Photo from BSP Investment Relations Group)

DAVAO CITY – During the Post-SONA Economic Briefing, Department of Trade and Industry (DTI) Secretary Fred Pascual emphasized the programs of the Department for micro, small, and medium enterprises (MSMEs), particularly in Mindanao. He also cited the government’s mission to promote the business ecosystem in the area through advancing Free Trade Agreements (FTAs) and digitalization.

In his discussion, Secretary Pascual underscored, “The Department remains at the forefront of ensuring the MSMEs integration in the global value chain. Through several programs and investment opportunities, we aim to equip them with the financial capability and technology to be at par in the global market. Hence, we see Mindanao as a strategic location where MSMEs can also prosper given the enabling business environment present in the area.”

The Post SONA Economic briefing was conducted to update the financial and business communities on the administration’s economic agenda. It also tackled issues and solutions specific to the region. Aligned with the theme of the administration’s 2023 budget, “Agenda for Prosperity: Economic Transformation toward Inclusivity and Sustainability,” the remaining parts of this roadshow will serve as an avenue for local stakeholders to engage in person with key government officials.

From L to R: DBM Undersecretary Margaux Marie Salcedo; DILG Undersecretary Marlo Iringan; DA Undersecretary Mercedita Sombilla, PhD; DTI Secretary Fred Pascual; DOLE Secretary Bienvenido Laguesma; DOT Undersecretary Mae Elaine Bathan; and, Davao Chamber of Commerce and Industry President John Carlo Tria
From L to R: DBM Undersecretary Margaux Marie Salcedo; DILG Undersecretary Marlo Iringan; DA Undersecretary Mercedita Sombilla, PhD; DTI Secretary Fred Pascual; DOLE Secretary Bienvenido Laguesma; DOT Undersecretary Mae Elaine Bathan; and, Davao Chamber of Commerce and Industry President John Carlo Tria

During the third panel discussion, Secretary Pascual highlighted the DTI’s programs for the MSMEs in Mindanao. In particular, he recognized the value of Shared Service Facilities (SSFs) as a way to introduce technology to businesses. The DTI Chief also underscored that the SSF is a way of improving and introducing the products of MSMEs. Further, he emphasized the huge role of digitalization in ensuring that MSMEs will be globally competitive.

From 2013 to 30 June 2023, the DTI has established a total of 3,531 SSF projects nationwide of which 35% or 1,235 are located in Mindanao, with a total value of PhP803 million. This program is also currently benefitting 241,639 existing and potential MSMEs and generating 115,280 employment in the area.

Aside from this, Secretary Pascual shared the outcomes of his Europe investment roadshow wherein he met with international companies that will invest in the country, particularly in Davao. He also highlighted the Department’s several programs such as (1) Financial assistance from the Small Business Corporation (SBCorp); (2) Mentoring activities from Negosyo Centers; and, (3) Promotion efforts through the One Town, One Product. Additionally, he highlighted the DTI’s efforts to improve the market access of MSMEs through the recently launched Philippine E-Commerce Platform. 

For the part of the Davao Chamber of Industry, its President John Carlo Tria mentioned its efforts in promoting investment in the area, making Mindanao the number 2 economy in the country. Through a strong public-private partnership, Davao has contributed to 50% of its consolidated Gross Regional Domestic Product. He further remarked that they also saw digitalization as the key to ease of doing business.

In his keynote speech, Finance Secretary Diokno also highlighted the work undertaken by DTI to push for structural reforms to attract highly-desirable investment and employment opportunities.

These include the Corporate Recovery and Tax Incentives for Enterprises Act, Foreign Investment Act, Retail Trade Liberalization Act, and Public Service Act. He also underlined Executive Order No. 18 or the “Green Lanes” for strategic investments which will ensure an enabling business environment for investments.

Both statements affirmed the efforts undertaken by the DTI to ensure that MSMEs will be an engine of inclusive growth toward a prosperous economy that will create job opportunities for many. Further, through a whole-of-society and a whole-of-nation approach, the different departments were able to highlight the potential of Mindanao.

Towards the end of the briefing, Secretary Pascual remarked, “Mindanao is going to be a major beneficiary of the forthcoming FTA with South Korea. It will place our banana export in Mindanao in a competitive position compared to our neighboring countries.” ♦

Date of Release: 10 August 2023

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