MANILA, Philippines - Sen. Loren Legarda has urged the government to implement strictly and immediately the provisions of the Barangay Kabuhayan Act (R.A. 9509) and the Magna Carta for Micro, Small and Medium Enterprises (MSME) Act (R.A. 9501) to stimulate the so-called informal sector in the face of the alarming nosedive of the country’s exports.
Legarda said stimulating the micro, small and medium enterprises which employ 69 percent of the country’s labor force is an ideal response to the country’s dwindling exports in the face of continuing global economic woes.
Legarda explained that addressing the MSMEs concerns would certainly accelerate the growth and development of the country’s flickering economy.
She noted the report of the National Statistics Office (NSO) that the country posted another double-digit decline in exports in July, slipping by 25.4 percent to $3.311 billion from the $4.437 in the same period last year.
“Like the US, Japan and China, we must redirect our production toward filling the needs of the domestic market, meaning our people, to stimulate economic growth,” said Legarda, as she noted that RP’s traditional export markets such as Japan and” US are shrinking because of the global slump in economy.
Legarda said that producing goods for domestic market would reduce the Philippines’ dependence on imports, save on foreign exchange, promote domestic employment and provide additional income for our producers.
The MSMEs are expected to have a bigger role on wealth creation because under the Magna Carta for MSMEs (RA 9501), more MSMEs (micro, small and medium industries) will flourish providing more employment and additional income.
“Now, enterprises with capitalization of P3 million or below are classified as micro enterprises as compared to the previous cap of P1.5 million, and that with the increase of the cap, more Filipinos can now avail of the benefits provided in this law,” said Legarda, sponsor of the Magna Carta.