“I urge our MSME to be innovative, to explore opportunities.

Smart technology, coupled with available soft credit facilities, are seen to boost the country’s micro, small and medium enterprises (MSME) by allowing them to tap the e-commerce market while widening the horizon for business opportunities.

Finance Secretary Carlos Dominguez III said the Duterte administration is putting in place a slew of financial technology (fintech) tools to promote the sustainability and competitiveness of small businesses across the country.

“I urge our MSME to be innovative, to explore opportunities opened by the new ways of doing business and to be bold in opening new ventures. I assure you that government is supporting you. We will support small businesses in every way possible. We know the crucial role MSME play in forging a better future for our people, and we will partner with you and we will help you in this task,” said Dominguez at the 26th Metro Manila Business Conference held recently at the Hotel Okada Manila in Parañaque City.

According to the finance chief, MSME, which comprise 99.6 percent of all business enterprises in the country, are vital in building “a dynamic and inclusive economy for our people.” He added the sector employs the biggest bulk of the country’s labor force, linking big manufacturers to their consumer base.

“They compose the supply chain that, when enabled, will support the industrialization of our economy,” Dominguez said.

The government, he said, continues to develop fintech tools to help MSME avail of peer-to-peer lending, equity crowdfunding, merchant and e-commerce finance and invoice finance. The advantages offered by the digital revolution in the financial world should also benefit the small sectors by giving them access to fintech, the secretary said.

President Rodrigo Duterte also signed into law the Ease of Doing Business Act of 2018, which aims to reduce red tape significantly and make government more responsive to the needs of our entrepreneurs, he added.

This new law will be complemented by several programs encouraging the use of digital technology in all government procedures, including in the Bureau of Internal Revenue, which is now working double-time on streamlining processes for the documentary requirements on renewing business permits.

A TradeNet system that automates licensing, permit, clearance and certification procedures for all regulatory agencies has likewise been established, he said, and is now being fine-tuned to enable the full interconnection of 76 trade regulatory government agencies across 18 government departments.

This system will also serve as the Philippines’ link to the ASEAN Single Window.

The government is also ready to run PHPAY, which is a digital payment gateway that will enable taxpayers and other state clients to remit fees and other charges electronically, Dominguez said.

According to Dominguez, PHPAY “will dramatically cut transaction costs across the board” and more importantly, “cut corruption associated with primitive payments systems.”

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