MSMEs in the Philippines need more subsidies than financing
- Claire Lee
Micro, small, medium enterprises (MSME) need more subsidies rather than financing, said representative of Marikina City, Stella Luz A. Quimbo.
“I hope that the economic managers seriously consider expanding the various subsidy programmes for MSMEs, such as DTI’s (Department of Trade and Industry’s) Livelihood Seeding Programme,” she highlighted in a statement, reports BusinessWorld.
“This is the way to get small businesses re-started, and eventually, for them to muster enough confidence to avail of the expanded loan programs. Subsidies are especially important today, with the series of oil price hikes,” she added.
MSMEs generally are risk-averse to loans, and many belong to the informal sector, or are unbanked, she said.
READ: Minimum wage hike considered in the Philippines
“It would also make sense for the GFIs (government financial institutions) to further streamline the loan requirements and provide more effective credit mediation services. Small businesses need handholding now, so they would have the courage to loan,” she noted.
MSMEs comprise 99.5% of the 957,620 registered establishments in the country, according to 2020 data from the Philippine Statistics Authority.
