MSMEs get P1.2-B fund assistance under 2023 budget

By Azer Parrocha

March 9, 2023, 9:49 pm

MANILA – The Department of Budget and Management (DBM) on Thursday announced that a total of PHP1.2 billion will fund various government programs to boost micro, small and medium enterprises (MSMEs) under this year’s national budget.

In a news release, the DBM said these programs are part of the MSME Development Plan and other initiatives of the Department of Trade and Industry (DTI) to promote the growth of MSMEs; establishment of Negosyo Centers; One Town One Product (OTOP) Next Gen; and Shared Service Facilities (SSF).

“MSMEs serve as the building blocks of the economy. Dahil dito, sinisikap po ng pamahalaan na palakasin ang MSMEs at alalayan sila sa pagbangon, especially from the challenges that hindered their growth, such as the pandemic,” DBM Secretary Amenah Pangandaman said.

“Following the directive of President Marcos Jr., sisiguruhin po natin na patuloy na popondohan ang mga programang tutulong at magpapalakas sa mga MSME (we will ensure that programs that will help and strengthen MSMEs will continue to be funded),” she added.

Under this year’s budget, some PHP583 million is allocated for the implementation of the MSME Development Plan and similar government programs.

Around PHP487 million will also help establish Negosyo Centers or MSME-support office of the government that operates to promote ease of doing business and facilitate access to services for MSMEs.

Negosyo Centers are established in all provinces, cities and municipalities.

The OTOP Next Gen, a program that assists MSMEs in product development initiatives, training and referral, among others to level up the products in design, quality and volume, will receive PHP97 million.

It enables localities and communities to determine, develop, support and promote products or services that are rooted in their respective local cultures, community resources, creativity, connection and competitive advantages.

Meanwhile, the SSF will get PHP80 million—of which PHP70 million will be used to finance Maintenance and Other Operating Expenses (MOOE) while PHP10 million will be used to fund capital outlays.

The SSF gives MSMEs access to sophisticated machines and equipment towards improving the quality of their products, increase their production capacity, accelerate their competitiveness and expand their businesses.

MSMEs comprise 99.5 percent of business establishments in the Philippines, according to the Department of Trade and Industry. (PNA)