Press Release
March 12, 2010


DANAO CITY - Senator Ramon Bong Revilla, Jr. today said the government should seriously implement the support programs for small and medium enterprises to boost the competitiveness of the sector, which provided hundreds of employment in urban and rural provinces.

In an interview with the senator, he lauded the micro, small and medium enterprises (MSMEs) for generating more employment which made contribution in improving the economic condition of Cebuanos.

Cebu 's strong economy is fueled by retail, services and tourism.

"What the MSMEs in Cebu need are to break into product development," he said.

According to Bong Revilla, the government has recognized the potential of MSMEs in generating employment by creating a Small, Medium Enterprises Development (SMED) Council in 1991 through RA 6977.

"After almost 20 years, the progress of this sector is slow because the government failed to give them ample support to improve the MSMEs," he said.

Bong Revilla cited that MSMEs account for 96.1 percent of employment and contribute 32 percent value added to the economy. He explained that the sector still faces limitation in delivering benefits to the economy because they lack access to financing, insufficient technology and technical knowledge and lack of access to markets.

Under the RA 9501, known as the Magna Carta for Small and Medium Enterpise Act which he co-authored, outlines guidelines for institutional support to improve productivity, upgrade of technologies, lower the cost of doing business and give bigger access to financing.

"We are now tapping credit resources and lending institutions to set aside at least eight percent of their total loan portfolio and make it available for MSME credit. This is one area that the amended law had overlooked why this sector is not thriving," he said.

The senator added that there shall be micro finance trust fund. It will provide collateral-free loans for stakeholders with no capital.

"The new law is providing an enabling environment to SMEs to maximize the potential growth of this sector," the senator concluded.

News Latest News Feed