Exporters are pinning high hopes on robust economic growth and government’s programs to boost exports to fuel the recovery of the sector, as they continue pushing the industry-reform agenda.
“From many indications, we would like to believe that this is, indeed, the golden age of MSMEs [micro, small and medium enterprises],” Philippine Exporters Confederation Inc. (Philexport) President Sergio R. Ortiz Luis Jr said.
Ortiz Luis said his group has been advocating and promoting 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.”
With the right environment, he expects the MSMEs’ share in the country’s employment and GDP to increase from its current contribution of 35 percent to 40 percent or even higher.
In 2017 Ortiz Luis said the Philexport and the Export Development Council (EDC) will push the industry-reform agenda that include maximization of the benefits of free-trade agreements (FTAs), intensified campaign against corruption and facilitation of infrastructure development, and capacity building for MSME and institutional disaster resilience. He said these trade agreements include the Regional Comprehensive Economic Partnership and the Philippine-European Free-Trade Agreement.
Ortiz Luis also looked 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 nontariff barriers that prevent us from entering new or expanding our markets,” he noted.
The export group chief added they will continue advocating for the implementation of existing labor laws to ensure the 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, among others.
Further, Ortiz Luis hopes that the country’s latest export performance will signal the start of the export recovery even amid slower global economic growth.
He noted the country’s GDP that surged 7.1 percent in the third quarter, topping economic growths of China, Vietnam, Indonesia and Malaysia, during the period.
Merchandise exports in October rose 3.7 percent for the second consecutive month after the 17-month decline.
He also cited the Department of Trade and Industry’s (DTI) thrust to further strengthen the manufacturing sector that is now growing 7 percent to 8 percent compared to 3 percent to 4 percent in the past.
Ortiz Luis said the DTI also announced it would set aside an initial P1 billion in 2017 for lending to micro and small firms to “discourage borrowers from turning to usurious lenders.”
The funds, which will come from the Office of the President, are targeted to reach P18 billion, with each of the region allocated P1 billion.
“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 added.
The government expects to achieve its $100-billion export revenue target by 2020.