Digitalization is at the heart of the national government's new micro, small, and medium enterprises (MSME) Development Plan 2023-2028, which aims to integrate artificial intelligence (AI) and digital technologies to strengthen domestic enterprises.
“The new MSME Development Plan is more than a policy document; it is a blueprint for the future, ensuring that our enterprises are competitive, innovative, and resilient,” said Trade and Industry (DTI) Secretary Alfredo Pascual in a statement.
“By focusing on digitalization, we are preparing our MSMEs to meet the challenges of the modern economy and ensuring they continue to be a critical driver of our nation’s growth,” he added.
The newest, fourth version of the MSME Plan was presented by DTI to President Ferdinand Marcos Jr. in a sectoral meeting in Malacañang on April 30. It was graced by the Departments of Agriculture (DA), Labor and Employment (DOLE), Interior and Local Government (DILG), Science and Technology (DOST), Budget and Management (DBM), Information and Communications Technology (DICT), and the Office of the President (OP).
The MSME Development Plan involves incorporating AI-driven tools like a Machine Learning-based Credit Scoring Model to streamline and speed up the loan approval process for microenterprises.
AI-powered financial platforms will also be more utilized to make financial services for MSMEs more efficient.
Given that MSMEs make up 99.59 percent of businesses in the Philippines, comprising 65.1 percent of the workforce, the agency said the plan will also establish Business Starter Support Programs for assist entrepreneurs, as well as institutionalize Shared Services Facilities.
The development plan also aims to institutionalize funding support for micro-enterprises through the Pondo Para Sa Pagbabago program, initiate purchase order financing for MSMEs to manage their cash flow and fulfill larger orders, and increase the capital of the Small Business Corporation so it can provide loans and financial assistance to growing MSMEs.
If successful, the new plan is seen to generate more registered MSMEs, and more jobs, in line with the expected outcomes of the Philippine Development Plan and the ASEAN Strategic Action Plan for SME Development.
"The new MSME Development Plan is a testament to our government's commitment to fostering a dynamic business environment that nurtures innovation and inclusivity. By aligning our efforts across all levels of government and integrating digital technologies, we aim to build a stronger, more resilient MSME sector that is well-equipped to face the challenges of today and tomorrow," said Pascual.