CEBU, Philippines - As the world bids 2013 goodbye, the micro, small and medium enterprise (MSME) sector anticipates a promising and productive year by 2014 as it preps up for the forthcoming ASEAN economic integration two years from now.
This observation was raised by "Iron Man of Cebu" Rey Calooy, incumbent president of Filipino-Cebuano Business Club Inc. (FCBI) that organizes almost 200 MSMEs in Cebu.
"2014 is projected as juicy and crop year. MSMEs will continue to play a vital role as the backbone of the Philippine economy. Two years from now, our sector will be ready for the free trade agreement," he said.
Calooy, famous for his rags-to-riches story, is the founder and owner of RNC Marketing, a toll packaging company. He is involved in various business lines such as Rhea Noemi Food Products, My Partners International Trading Inc., Ness Burger and Coffee, and 5bucks café vending machine.
AEC is aimed at creating a single market and production base that will allow the free flow of goods, investments, services, capital and labor in the region.
While the ASEAN market serves as a significant source of raw materials and other imported goods in the country, it remains to be the second export destination for the Philippines. In May 2013, it accounted for a share of 22 percent in the total merchandise exports at $1.2 billion.
While there are no specific programs yet in connection with the Asean integration, Department of Trade and Industry (DTI) 7 director AsteriaCaberte earlier said they are exerting efforts and extending assistance to help local businesses in coping with the global competition.
The trade department organizes programs that promote an enabling business environment for the industry and support small-scale businesses especially in terms of access to market and finance. These also enable players to expand exports, increase investments and strengthen the MSME sector.
Calooy said that MSMEs are expected to grow further by 2014 as most large companies prefer to outsource their operations to smaller businesses.
He also shared his forecast of the 2014 GDP growth that may reach from 7.3 to 7.5 percent and the anticipated stability of inflation rate with the sustained efforts of the Aquino administration in curbing corruption.
With this year's subsequent investment upgrade from credit rating agencies early this year, he said that they expect more foreign investments coming in the country.
This, in return, could help fuel the circulation of money and enable lending rates to continue being more competitive especially for small-scale businesses.
Calooy also foresees more robust performance in terms of higher purchasing power among consumers and increased government spending on projects by next year.
He further identified potential growth opportunities that the industry could capitalize on such as private-public partnership projects, tourism boom, manufacturing, retail, financial intermediaries, outsourcing companies, agriculture and food security.
As rehabilitation programs will be implemented in Visayas, Calooysaid that the buoyant regional economy shall bounce back and be evident by the end of the third quarter of 2014.
He expressed optimism that the country will soon recover from the string of calamities that may slightly cripple the national economic growth especially in the last quarter of 2015 given the innovation, creativity and resiliency of Filipinos.
"Despite the calamities we experienced in 2013, we remain hopeful and optimistic in 2014 to rebound. We are in the spotlight in the international relief efforts and the world knows that we are resilient people," he stated.
While it may take years before fully declaring the "business as usual" status among all MSMEs in the region especially those affected by the twin calamities, Cebu's iron entrepreneur said that it is important to note what the sector has learned after the tragedies which includes the value of comprehensive insurance especially on life and property.
MSMEs comprise 99.6 percent of the total registered businesses in the country. Calooycited that at present, the sector contributes more than 40 percent to the national economy, provides 70 percent of the total labor force in the country and about 60 percent of the export industry are subcontracted by MSMEs. /JOB (FREEMAN)