Exporters expressed hope the robust economic growth and government’s support will lead to the recovery of merchandise exports this year.
“From many indications, we would like to believe that this is indeed the golden age of MSMEs [micro, small and medium enterprises],” said Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr.
Ortiz-Luis said his group was pushing for a strong and sustainable MSME sector “in a way that they can effectively and efficiently participate in the regional and global production networks and compete with the rest of the world.”
He said with the right environment, MSMEs’ share in the country’s employment and gross domestic was expected to increase from the current 35 percent to at least 40 percent.
Ortiz Luis said in 2017, his group and the Export Development Council would also promote the industry reform agenda including the maximization of the benefits of free trade agreements, intensified campaign against corruption and facilitation of infrastructure development and capacity building for MSME and institutional disaster resilience.
He said these trade agreements included the Regional Comprehensive Economic Partnership and the Philippine-European Free Trade Agreement.
Ortiz Luis said he was also looking forward to the full utilization of the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area”•an initiative supported by PhilExport.
“Breakthroughs in this front also lie on the successful removal of non-tariff barriers that prevent us from entering new or expanding our markets,” he said.
The group said it would continue advocating for the implementation of existing labor laws to ensure workers’ security of tenure as a middle ground to stopping illegal hiring practice and the passage of the Comprehensive Tax Reform Act, Ease of Doing Business Act and amendments in the implementing rules and regulation of the Magna Carta for MSMEs.
Ortiz Luiz said the country’s latest export performance was being viewed as a signal for export recovery despite slower global economic growth.
He said the country’s gross domestic product expanded 7.1 percent in the third quarter, topping economic growth of China, Vietnam, Indonesia and Malaysia. Merchandise exports rose 3.7 percent in October, marking the second consecutive month of positive growth after a 17-month decline.
He also cited the Trade Department’s thrust to further strengthen the manufacturing sector that was now growing 7 percent to 8 percent, compared to 3 percent to 4 percent in the past.
PhilExport acknowledged the Trade Department’s pronouncement to provide an initial P1 billion for each region in 2017 for lending to micro and small firms to “discourage borrowers from turning to usurious lenders.”
The fund, which will come from the Office of the President, is targeted to reach P18 billion nationwide.
“Exporters with signed contracts and orders in the first half of the year may expect a windfall as the currency gets to a more competitive level hopefully sustainably,” he said.
The government expects to achieve its $100-billion export target by 2020.