March 21st, 2023
House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) is pushing for the enactment of the Magna Carta for Micro, Small, and Medium Enterprises, as one of its principal authors. Salceda also supported increasing procurement opportunities and benefits for MSMEs during the first deliberation on the measure by the House Committee on MSMEs today.
In a manifestation submitted to the Committee, Salceda sponsored the measure, explaining why the bill should be approved by the MSME panel.
“First of all, it allows MSMEs to operate immediately through the issuance of immediate provisional approval of all requisite permits from any local government. This will eventually pave the way for a single-window, single-day business registration system for the country,” Salceda said.
“Second, it creates demand for MSME products by requiring government to procure at least 10 percent of procurement opportunities from MSMEs.” Later during the hearing, Salceda also supported the increase of the percent threshold to 20 percent, citing that MSMEs account for around a third of the gross value-added in the economy.
“Third, it grants a 20 percent discount on shipping and delivery fees to MSMEs, which will also redound to the benefit of some 73 million online shoppers among Filipinos.”
“It also grants selling areas in malls to MSMEs. This is a policy that I have seen work brilliantly in Thailand during my October to November tour of Southeast Asia, where I had meetings with their investment and trade agencies and major businesses,” Salceda said.
There are also provisions to integrate information and communication technology in policies and programs for MSMEs, Salceda added.
German model cited
Salceda also emphasized the need to grow the medium enterprise sector, touting it as a “potential driver of economic growth.”
“It is said that for every specialized spare part or equipment in use, there is a German Mittelstand that is the world’s best manufacturer of that spare part or equipment. These enterprises drive innovation but also economic stability – as family companies, they tend to be run competently through crises,” Salceda said.
“These companies also tend to be export-oriented. They demonstrate how a powerful and resilient economy can be built on small and medium businesses. That is the potential of this measure,” Salceda added.