Thoughts on PBBM’s leadership and its impact on MSMEs

Fair winds and following seas are every sailor’s dream; one cannot ask for better conditions than calm waters and favorable winds guiding the way. Under such conditions, a captain must harness momentum to navigate effectively. I believe President Ferdinand Marcos Jr. is doing just that, particularly for our country’s micro, small and medium enterprises (MSMEs).

In his first two years in power, the President has significantly advanced MSME development. He revived the Presidential MSME Awards – after years of hiatus. The program is a vital incentive for both MSMEs and the government agencies and private organizations supporting them. During the awards, he announced an Executive Order to mobilize agencies for the MSME Development Plan 2023-2028, clarifying roles and procedures for effective collaboration.

He has also made infrastructure development a priority of his administration. Under his leadership, the government completed the building of numerous roads and bridges, enhancing market access for MSMEs, especially in agriculture. He has committed to building more infrastructure – both physical and digital – to facilitate efficient trade and communication among the Philippines’ 7,100 islands.

Digitalization is crucial for MSMEs to promote their products and streamline business operations. The President emphasized internet connectivity in the Philippine Development Plan, particularly for remote communities. There are now more platforms and more solutions available to help MSMEs; government, through the Department of Trade and Industry, is now assisting in more market opportunities for MSMEs, thanks to cues from the President’s directives.

Access to capital is another key ingredient to MSME success. There are now more financing opportunities for MSMEs, both from traditional banks and other digital financial institutions, making financing more accessible than before. The growing microfinance sector that assists MSMEs in smaller communities through micro loans is a big boost.

Additionally, the distribution of Certificates of Condonation and Release of Mortgages to small farmers is a significant step towards alleviating debt and enhancing agricultural productivity, especially among the small farmers. This initiative aligns with the New Agrarian Emancipation Act, aiming to resolve longstanding financial burdens on agrarian reform beneficiaries. With hope, these will be the initial steps that will bring relief to this long-suffering segment of our society.

This effort to realize a more inclusive society makes me optimistic that we can achieve a prosperous Philippines under a strong, compassionate leadership. Even with the tourism sector – which is delivering beyond its initial targets – the President does not fail to remind and encourage the distribution of benefits across the country and all segments, ensuring that the growth in this sector reaches all Filipinos.

He also thinks like a CEO and this inspires confidence among private sector leaders. He sees well ahead into the future and chooses actions that will deliver the biggest impact, something a CEO would do.

Early in his presidency, he made it his mission to introduce himself and the Philippines to the world. He ignored the naysayers and went to meet with the international community as the Philippines’ number one salesman. He attended the World Economic Forum in Davos, where a five-minute chat can lead to billions worth of investments. He goes and visits heads of state, and was a constant presence in ASEAN events.

In my own experience as the CEO of RFM, I know that you don’t sit around and wait for investors to come knocking at your door. The Philippines has 114 million shareholders; they are the ones who will ultimately benefit from the President’s roadshows.

The integration of the private sector into government decision-making is not new but it is vital. The formation of the Private Sector Advisory Council (PSAC) reflects this collaborative spirit, providing guidance on national priorities such as jobs, health care and digitalization. As the lead for the Jobs sector, I see firsthand how this cooperation can yield impactful results.

Having served in the ASEAN Business Advisory Council for many years, I can tell you that bringing the private sector into the government decision-making process has been proven successful because the collaboration brings to governance the real-world perspective and expertise that private sector is known for.

When top business leaders – who comprise the members of the PSAC – back the President, it instills investor confidence, ensuring that the Philippines remains an attractive destination for investment.

The President’s historic mandate can also be considered a favorable headwind. There’s clearly so much more to be done, but the overwhelming mandate will be important if we as a nation are to tackle difficult issues like food security. He has consistently prioritized agriculture, understanding its vital role in our economy. His empathy towards the struggles of ordinary Filipinos, especially concerning essential commodities like rice, demonstrates a commitment to addressing their needs.

The President’s appointment of key people to help him run the government – people like DTI’s Cris Roque and DepEd’s Sonny Angara – reflects his strategic approach to governance. Time and again, he chose individuals who inspire confidence, especially in the private sector, and align with his vision for MSME growth. From the beginning of his presidency, he has declared the importance of the sector that comprises 99 percent of our enterprises and contributes nearly 65 percent of jobs.

By focusing on productivity in the MSME sector, he knows that we can create sustainable job growth and foster economic stability. As the President encourages MSMEs to embrace their role in social transformation, we can look forward to a future where their success translates into broader benefits for all Filipinos, perhaps taking us closer to what the President envisioned when he chose Bagong Pilipinas as his battlecry. Thank you, Mr. President, and a happy birthday.