Key takeaways:
- The Philippines unveils a new MSME Development Plan (2023-2028) focused on digitalization and AI
- This plan aims to empower MSMEs, the backbone of the Philippine economy, to compete in the global market
- Key features include AI-powered loan approvals, shared services facilities to reduce operational costs, and starter programs for new businesses
- Increased funding for financial institutions and digital financial platforms will also enhance financial accessibility for MSMEs
- The plan is expected to boost job creation, increase MSME registration, and strengthen the overall contribution of MSMEs to the Philippine economy
The Philippine government has unveiled a new Micro, Small, and Medium Enterprises (MSME) Development Plan for 2023-2028, aiming to empower Filipino businesses with artificial intelligence (AI) and digital technologies. This strategic move seeks to bolster MSME capabilities, ensuring they thrive in the rapidly evolving digital landscape.
Equipping MSMEs for the digital future
Department of Trade and Industry (DTI) Secretary Fred Pascual presented the plan at a meeting led by President Ferdinand Marcos Jr. Highlighting the crucial role of MSMEs in the Philippine economy, Secretary Pascual emphasized, “The new MSME Development Plan is more than just policy; it’s a blueprint for the future, guaranteeing our businesses are competitive, innovative, and resilient.”
“By focusing on digitalization,” he said, “we are readying our MSMEs for the modern economy’s challenges, ensuring they remain a vital driver of our nation’s growth.”
President Marcos Jr. echoed this sentiment, underscoring the importance of digitalization. This plan, crafted through consultations with various stakeholders, offers a future-oriented framework designed to address MSMEs’ immediate needs and propel them to the forefront of the digital economy.
It equips businesses with the necessary tools for AI and digitalization, bolstering sectors responsible for over 65% of jobs, according to the President.
Innovative initiatives and financial strategies
The plan incorporates several innovative initiatives, including:
- Shared Services Facilities: These facilities aim to reduce operational costs for MSMEs.
- Business Starter Support Programs: These programs aim to eliminate barriers faced by new entrepreneurs.
- Machine Learning-based Credit Scoring Model: This AI-powered tool expedites loan approvals for microenterprises.
Secretary Pascual stressed that these initiatives will build a cohesive support network, enhancing productivity and driving a competitive advantage for MSMEs.
Financial strategies include:
- Increased Capitalization of the Small Business Corporation: This will enhance their capacity to provide loans and financial assistance to MSMEs.
- Institutionalized Funding Support: Programs like Pondo Para Sa Pagbabago will provide financial backing to micro-enterprises.
- Purchase Order Financing: This initiative aims to help MSMEs manage cash flow and fulfill larger orders.
- AI-powered Financial Platforms: These platforms aim to ensure more accessible and efficient financial services for MSMEs.
Collaboration for a sustainable future
The plan emphasizes collaboration between government agencies and stakeholders. Secretary Pascual stated, “The new MSME Development Plan signifies our government’s commitment to fostering a dynamic business environment that fosters innovation and inclusivity.”
The successful implementation of this plan is expected to increase registered MSMEs, enhance job creation, and strengthen their contribution to the Philippine economy, aligning with the Philippine Development Plan and the ASEAN Strategic Action Plan for SME Development.Ⓒ
Business Bayani PH 
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