Former senator and incumbent Sorsogon Governor Francis “Chiz” Escudero on Sunday said he supports the proposal of Vice President Leni Robredo to fund a P100-billion stimulus package for micro, small and medium enterprises (MSMEs), calling it an “economist’s roadmap” to recovery from the Covid-19 pandemic.

Escudero noted the MSMEs contribute to about 40 percent of the country’s gross domestic product (GDP) as it is the sector that employs approximately 63 percent of the country’s workforce.

It was during the presidential debate sponsored by the Commission on Elections (Comelec) when Robredo said that a P100-billion stimulus package for MSMEs would be a priority of her administration.

Citing data from the United Nations Development Programme (UNDP), Escudero also noted that up to 99.5 percent of the estimated one million establishments in the country are MSMEs

“There can be no national recovery without MSME revival,” said Escudero, who is seeking a Senate comeback in the upcoming May 2022 elections.

“Tama ‘yung prescription ni Vice President. Yan ang kailangan ng maliit na mga negosyo at mga pagawaan (The vice president’s prescription is right. That is what is needed by businesses and manufacturers),” he said.

“These firms employ two in three workers, or 63 percent of labor. They account for 40 percent of the GDP, or about P8 trillion. They are not a sub-sector of the economy, they are the economy,” Escudero added.

The former lawmaker said helping MSMEs, which are defined as enterprises with less than P100 million in assets and fewer than 200 workers, “gives high social and economic ROI (return of investment).”

He said Robredo’s proposal for a P100-billion aid package “is financially affordable and fiscally responsible” as it is “equivalent to what the government will borrow in 15 days this year.”

“Yung uutangin natin (what we will loan for) this year for our net financing needs is P2.33-trillion. Ibig sabihin, daily mga (which means, daily it would be) P6.38-billion. So yung P100-billion katumbas lang ng perang uutangin natin sa loob dalawang linggo, (would be equivalent to the money we will loan in two weeks),” Escudero said, based on his calculation.

“So ‘yung P100-billion stimulus is the MSMEs’ contribution to the economy in just four days,” added Escudero.

Nevertheless, he said the stimulus package would only be one component of government help to stir the MSMEs waylaid by the pandemic.

“Three Rs ang kailangan ng MSMEs (MSMEs need the three R’s — recovery, resources and cutting red tape,” he said.

“We would be needing more of these now because of the economic fallout from Russia’s invasion of Ukraine,” Escudero stressed.