The Department of Budget and Management (DBM) stated that the government is committed to implementing programs and policies for the advancement of micro, small, and medium enterprises (MSMEs).
DBM said P783 million has been allocated to the Department of Trade and Industry's (DTI) MSME Development Program in the proposed 2024 National Expenditure Program (NEP).
About P100 million is allocated for the Digitalization Program of MSMEs.
Another P454 million is proposed for establishing Negosyo Centers and P579 million is allocated to the Shared Facilities Project, providing MSMEs with shared access to equipment, machinery, tools, systems, and knowledge.
There is also a P76 million allotment for the One Town, One Product (OTOP).
President Bongbong Marcos highlighted the role of MSMEs in enhancing the Philippines' business prospects in his Budget Message.
DBM boosts MSME budget for jobs, investments
At a glance
The Department of Budget and Management (DBM) said the government will continue to prioritize the implementation of programs and policies aimed at advancing micro, small, and medium enterprises (MSMEs).
Budget Secretary Amenah F. Pangandaman said the Department of Trade and Industry's (DTI) MSME Development Program has been allocated P783 million in the proposed 2024 National Expenditure Program (NEP).
In order to enhance digital advancement and market expansion, Pangandaman said that P100 million will be given to the Digitalization Program of MSMEs.
“Our micro, small, and medium enterprises serve as the building blocks of the economy,” Pangandaman said in a statement.
“Following the directive of President Bongbong Marcos, we will help attract more investments and create more jobs by promoting more competitive and innovative industries, particularly among the MSMEs,” she added.
The government will also invest in locally funded projects as a way to support and provide entrepreneurship resources. This would promote local products, and increase the capabilities of the MSMEs.
Moreover, P454 million was proposed for the establishment of Negosyo Centers, while P579 million will then be allocated to the Shared Facilities Project.
The Shared Facilities Project provides the MSMEs types of equipment such as machinery, tools, and systems and other skills and knowledge under a shared system.
Meanwhile, P76 million will then be allotted to the One Town, One Product (OTOP) Next Generation Project.
OTOP aims to develop and promote products and/or services that are rooted in its local culture, community resources, and other competitive advantages that are considered local in the area.
Other initiatives aim to present feasible alternative financing options to micro-entrepreneurs.
To attest to micro entrepreneurs’ accessibility and sustainability, a budget of P1.5 billion was distributed to the Pondo sa Pag-Asenso (P3) Program of the Small Business Corporation. Through this, 40,000 MSME borrowers can expect benefits from P3.
In President Marcos’ Budget Message, he explained how MSMEs help with the Philippines’ business prospects.
“Recognizing that MSMEs constitute a significant portion of the country's business landscape, this Administration remains committed to supporting their growth, especially as we recover from the economic scarring of the pandemic,” he said.