BEYOND BUDGET

Assalamu alaikum wa Rahmatullahi wa Barakatuh.
 

As an avid enthusiast and staunch advocate of Philippine culture and the arts, I was very excited to join the design community during the Manila FAME, the country's leading exposition and second longest-running trade event in Asia. Held from Oct. 19 to 21, 2023—for the first time in three years since the Covid-19 outbreak—the Center for International Trade Expositions and Missions, the export promotion arm of the Department of Trade and Industry (DTI), brought back the event showcasing our design heritage, indigenous techniques, and regional crafts from communities. I must say, I was mesmerized by the awe-inspiring pieces of artistry. The exhibit was truly a feast for the eyes and food for the creative soul, a design aficionado's paradise. 

Established in 1983, Manila FAME has been providing support to micro, small, and medium enterprises (MSMEs) and artisan communities from the home, fashion, and lifestyle sectors. It also bolsters these sectors through various capacity-building initiatives, collaborating with global design figures, and providing opportunities for MSMEs to connect with buyers from around the world.  

Gov’t support for MSMEs

At the KATHA Awards, during Manila FAME’s highlight activity, “Pagsibol: A Gala Night Celebrating Filipino Design Excellence," held on Oct. 19, 2023, Her Excellency, First Lady Liza Araneta-Marcos, inspired and challenged manufacturers, exporters, and designers, to take their creations a notch higher and to cultivate design innovations. Indeed, we are fortunate to have a First Lady who champions the preservation of Filipino culture and tradition; supports local designers and fashion, as demonstrated by the wildly popular Goldenberg Fashion series, among other initiatives; and is a steadfast advocate for regional artisans like our Ilocano weavers.

Hence, when I had the honor to deliver the keynote speech at Pagsibol 2023, I highlighted that the First Lady’s presence at the event manifests President Ferdinand R. Marcos Jr.’s (PBBM’s) resolute patronage not only of Manila FAME's 40th year celebration, but as a platform that laser-focuses on the role of MSMEs in nation-building. These MSMEs account for 99.59 percent of all businesses in the country and generate over 5.6 million jobs or 65.10 percent of the country’s total employment. Can you imagine the effect on our economy if we are able to harness this strength? 

Thus, under the President’s directive and aligned with the Philippine Export Development Plan 2023-2028, which aims to strengthen the design sector, underscoring trade promotion, marketing, and design innovation to create a unified country and sectoral branding, the Department of Budget and Management has allocated ₱783 million for the MSME Development Program of the DTI in the fiscal year 2024 proposed national budget. This aims to empower MSMEs towards a more design-conscious future. From the said allocation, ₱100 million will go to the digitalization program of MSMEs to accelerate their advancement and enable them to expand their markets. 

Further, the government will invest in locally-funded projects such as the Negosyo Centers, with a proposed budget of ₱454 million to foster entrepreneurship, promote local products, and enhance MSMEs' capabilities. Meanwhile, the implementation of the Shared Service Facilities Project and One Town, One Product Next Generation Project, has an allocation of ₱579 million and ₱76 million, respectively. Additionally, the Pondo sa Pagbabago at Pag-Asenso or P3 Program of the Small Business Corporation, allocated with ₱1.5 billion, will benefit 40,000 MSME borrowers, providing viable alternative financing options for their growth.  

I therefore laud PBBM’s foresight, especially noting his speech delivered by Executive Secretary Lucas Bersamin during the July 2023 National MSME Summit, where he said that as one of the steady pillars of the economy, we should support MSMEs to ensure their growth and global competitiveness. He then called on industry players, experts, and all government agencies to pursue a whole-of-society and a whole-of-government approach to developing our MSMEs, emphasizing, "It is only by forging lasting partnerships with different sectors of society that we can give rise to viable, effective, and efficient solutions to the various issues encountered by our MSMEs, such as financial and market access, skills development, and technology adoption, among others."

In line with this, I am pleased to share that the Senate is close to approving the Tatak Pinoy (Proudly Filipino) bill, one of the administration’s legislative priorities, that aims to develop industries, propel the economy forward, create more opportunities, and increase incomes for Filipinos. I strongly support Senator Sonny Angara’s bill, which will institutionalize a national strategy to hasten the growth and transformation of the Philippine economy through strong collaboration between the government and the private sector, particularly MSMEs. I agree with the esteemed Senator that true economic development requires collective and collaborative efforts from all sectors of society.

Once enacted, the Tatak Pinoy Bill will empower domestic enterprises to become more globally competitive, produce sophisticated products, and provide exceptional services, at the same time diversifying the country's basket of goods, by providing infrastructure, good governance, clear regulations, ease of doing business, and a research and development ecosystem. It will provide solutions to cross-cutting problems like poverty, trade and current account deficit, unemployment, underemployment, low salaries, and rural-to-urban migration. 

Beyond budget, as the MSMEs strive to uplift their products to mirror our culture and instill pride in our heritage among the people while sustaining the country’s economic growth, the PBBM administration will endeavor to actively pave the way for an environment conducive to businesses so that, together, our nation can achieve our Agenda for Prosperity.

(Amenah F. Pangandaman is the current Secretary of the Department of Budget and Management.)