SMALL BUSINESS SHOWCASE. Photo shows annual Mindanao Trade Expo showcases Mindanao in 2019, showcasing the products and services of micro small medium enterprises in the island. (File photo courtesy of MTEFI)
DAVAO CITY – The government can help struggling micro small medium enterprises (MSMEs) that are bearing the brunt of the coronavirus disease 2019 (Covid-19) by devising ways to speed up the release of loans and other economic reliefs, a business leader said.
Marian Mahinay Comilang, the executive director of Mindanao Trade Expo Foundation, Inc. (MTEFI) said the business sector was "encouraged" by the recent State of the Nation Address of the President Rodrigo Duterte, which underscored the role of MSMEs in the country's recovery efforts from the pandemic.
Comilang's group organizes the annual Mindanao Trade Expo, where the island's MSMEs’ products and services are showcased.
“We must facilitate the country’s economic recovery. I call on Congress to fast-track the passage of proposed measures such as the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act. This immediately cuts the corporate income levy from the current 30 to 25 percent and give the government flexibility to grant a combination of fiscal and non-fiscal incentives, among others," the President said in his SONA.
"We pump-primed the recovery and rehabilitation of MSMEs. The DTI, through the Small Business Corporation, set up the PhP1-billion COVID-19 Assistance to Restart Enterprises or CARES Program to provide zero-interest loans for MSMEs affected by the pandemic,” Duterte added.
Comilang said the local business sector was buoyed when "President Duterte gave emphasis on the recovery and rehabilitation of MSMEs through SB Corp. loan at zero interest rate. The CARES Program is there. It has been offered."
However, Comilang said the government's recovery initiatives would be further accelerated if the government tackled the issues surrounding the "difficulty" in accessing the credit window mentioned by the President.
"Given the numerous number of businesses affected, MSMEs are worried about the perennial problem of accessing the assistance in relation to processing, securing requirements and most importantly, the urgency of fund release," she said. “The business sector would like to appeal to fast-track processing and more importantly the release of funds.
She added: "A loan is loan. At no interest or a minimal interest, enterprises have to consider long-term sustainability plan considering the drastic decline on sales and profitability performance that affects closure or slowdown of business operations."
Comilang said she and the other leaders in the MSME sector remain optimistic that small businesses could weather the impact of Covid-19.
Her optimism, she said, lies on domestic consumers who she believes would greatly help raise the falling economy through the government's “BuyLocalGoLokal” campaign.
"Thriving MSMEs will definitely survive in this trying time. It needs support from domestic consumers. The industry is backing on the campaign for “BuyLocalGoLokal," she said.
She also called on the public to "patronize local products and services."
“We are optimistic of government’s plan for inclusive recovery to consider equally the health of the citizen and the health of the economy as well, she added.
Davao City Chamber of Commerce and Industry, Inc. (DCCCII) president John Carlo B. Tria agreed with Comilang, saying the latest SONA contained "measures to help businesses to bring the country’s economy back on its feet."
“The major part of the president's SONA stressed the economy and measure to help it, and our businesses and livelihoods recover. I think the proposed stimulus programs, and the CREATE bill need to be passed by Congress. i believe these are big helps especially for small businesses, and restoring livelihoods,” Tria said in a recent interview.
In addition, Tria said DCCCII has been helping promote the programs of Small Business Corporation (SBC).
Tria also sees improvement of internet connectivity as key to help revive the businesses.
“The call for better internet also helps many of our businesses especially the small ones since they can transact with more customers and reach out to more markets,” he said. (PNA)
