The Philippine Exporters Confederation (PhilExport) renewed its call for the government to boost loanable funds allocated to the Small Business Corp. to better support the growth and resilience of micro, small and medium enterprises (MSMEs).
PhilExport president and chief executive Sergio Ortiz-Luis Jr. emphasized the need for a more serious commitment to developing MSMEs, which he described as the backbone of the Philippine economy.
“Why don’t you increase the SB Corp. funds and non-condition loans? Even if only 50 percent is remitted, at least you’re creating jobs,” Ortiz-Luis said during the recently concluded National Exporters’ Week (NEW) 2024 at the Conrad Manila.
He said the success of such initiatives should not be measured by repayment rates but by the number of jobs created and the growth of MSMEs.
Ortiz-Luis highlighted past challenges, with the Bangko Sentral ng Pilipinas (BSP), which previously supervised SB Corp., restricting its flexibility.
He noted that PhilExport’s lobbying efforts paid off when the BSP agreed to remove this oversight before former BSP Governor Nestor Espenilla retired.
Despite this progress, the lack of sufficient funding for SB Corp remains a significant hurdle, he said.
“What I’m asking is for at least 25 percent of what they’re allocating to dole-outs to be given to SB Corp. If it’s successful, we can discuss further increases,” Ortiz-Luis said.
He lamented the current state of MSME financing in the Philippines, describing it as the most under-banked in Southeast Asia.
“We loaned only $11 billion, compared to Thailand’s $178 billion. And yet, we keep saying MSMEs are the backbone of our economy—it’s all lip service,” he said.
Ortiz-Luis also pointed out the potential of SB Corp loans to create jobs and strengthen livelihoods, urging the government to prioritize this over short-term dole-outs.
“By increasing the SB Corp budget for MSME lending, you not only recover costs but also generate jobs and improve livelihoods. It’s time to move beyond rhetoric and invest in real solutions,” he said.
