MSMEs need money to export

MSMEs need money to export | Daily Tribune

If all the money lost in the flood control projects were allocated to the Micro, Small and Medium Enterprises (MSME), the Philippines should by now be a middle-class society where majority of the population are enjoying a stable and comfortable standard of living.

P100 billion, or 20 percent, of the P545 billion spent on flood control since July 2022 per a review went to just 15 contractors. Additionally, Greenpeace Philippines estimates that up to P1.089 trillion of the government’s climate-tagged expenditures could have been lost to corruption since 2023, with a significant portion to flood control.

P560 billion of P800 billion in DPWH climate-tagged projects in the 2025 budget alone was lost to corruption.

All the money that was lost belonged to the Filipino people but was stolen by our corrupt leaders and managers, specifically the representatives of both houses of Congress in the “globally notorious bicameral committee,” or the “bicam” for short, the scourge of Philippine society since 1986.

If not for the rescue by the Department of Trade and Industry (DTI) of the exporters among our MSMEs after the onslaught of the storms, I would not have noticed that we have such a tiny export sector for raw and minimally processed mineral ores, rather than industries that process them into major finished goods for domestic consumption and export.

The DTI’s main concern is to drive national economic growth by promoting and developing a globally competitive and innovative industry and service sector, thereby generating jobs and reducing poverty. It does this by fostering inclusive economic growth through policies that support MSMEs, by protecting consumer welfare in a fair marketplace, and by facilitating domestic trade and investment.

The support for MSMEs focuses on expanding economic opportunities for micro, small, medium enterprises and cooperatives by providing access to resources and credit, such as the Pondo Sa Pagbabago at Pag-asenso (P3)

The overarching goal is to create a prosperous and innovative economy that benefits all Filipinos through jobs creation and poverty reduction.

The DTI is committed to delivering its public services with transparency, accountability, and efficiency.

A significant portion of the export earnings of MSMEs under the DTI came from electrical machinery and equipment, which includes semiconductors and integrated circuits.

The top five products from the Philippines on 31 July 2022 were listed as follows:

1. Electronic products which made up 58 percent of total exports worth US$3.51 billion. The popular electronic goods that were exported, along with their export value, drawn from Statista were: Semiconductors, US$2.76 billion; Electronic data processing, US$568 million; Telecommunications, US$89 million; Consumer electronics, US$75 million; and Office equipment, US$57 million

2. Manufactured goods -- US$450 million, 7.5% of the total exports. The manufactured products include steel, chemicals, paper, textiles, machinery, clothing, vehicles, refined petroleum products. Countries that imported these goods included the United States, China, Japan, South Korea, Hongkong, and Singapore

3. Refined copper – US$231.9 million

4. Coconut oil – US$178 million

5. Ignition wiring and other components used in aircraft, vehicles and ships – US$175.9 million.

The Philippine export industry offers excellent opportunities for local MSMEs to generate revenue and for established companies to extend their reach globally.

Email: arturobesana2@gmail.com