PCCI President George T. Barcelon presents PCCI’s REACH-OUT: Strategy for Long-Term Growth, Inclusivity and Resilience to Cong. Marvey Mariño, Chairman of the House’s Committee on Trade and Industry.  PCCI hosted a meeting with Congressman Mariño to discuss challenges facing the business sector as well as priority actions needed to address issues and concerns.  REACH-OUT contains PCCI’s strategic agenda and recommendations for business productivity and economic Competitiveness.  Joining Barcelon and Mariño are (L-R): House Committee on Trade and Industry Secretary, Atty. Val Palanca, PCCI Assistant Treasurer Bernardo Benedicto, Special Assistant to the President Chit Arce, Agriculture and Fishery Chair Paul Cuyegkeng, Banking and Capital Market Development Director Alfredo M. Yao, House Committee on Trade and Industry Chair, (Cong. Marvey Mariño, PCCI President George Barcelon) Philexport President and PCCI Treasurer Sergio Ortiz-Luis, Jr., Director for SMEs Apolinar Aure, PCCI Human Resources Development President, Dr. Alberto Fenix, Jr., Director for Transport and Logistics Michael Tan, Policy and Program Officer Athena Danielle Quizon and Assistant Secretary-General for Advocacy, Research and Communication Rhuby Conel

 

In a meeting with Congressman Marvey Mariño, chair of the House of Representatives’ Committee on Trade and Industry, the Philippine Chamber of Commerce and Industry said it is putting the highest priority on agriculture and SME development as a way for the country to rebuild a stronger economy.

 

“With so many challenges, it is critical at this point that measures are immediately taken to develop our agriculture sector and micro and small enterprises (MSEs) - the drivers of the economy in the rural areas and the countryside,” PCCI President George Barcelon said.

 

Championing agriculture modernization and productivity, Paul Cuyegkeng, Chairman of PCCI’s Agriculture and Food Security Committee called for increasing the budget for the Department of Agriculture, commensurate to the agriculture sector’s contribution to the economy.  In parallel, he said financing should be made easily accessible to farmers through a guarantee system backed by warehouse receipts as collateral.

 

Cuyegkeng also called for the Build. Bettter. More (BBM) infrastructure program of the new administration to give priority to farm-to-market roads, irrigation and post-harvest facilities to build the value chain from production to the market.  In addition, he called for the amendment to the Agrarian Reform Law to increase landholding size and allow the consolidation of lands by the agrarian reform beneficiaries to enable economies of scale and improve the sector’s efficiency.

 

Underscoring the role of MSEs in stimulating country-wide development, Philexport President Mr. Sergio R. Ortiz-Luis, Jr. and PCCI Director for MSMEs, Mr. Apolinar Aure urged for the amendment to the Magna Carta for MSEs Act.

 

“Lack of access to finance is a major constraint on why MSMEs continue to struggle.  Despite the enactment of the Magna Carta for the MSEs in 2014 mandating banks to allocate 10% of their credit portfolio to small businesses, compliance to mandatory lending levels has not improved.  Banks continue to opt to incur penalties for non-compliance rather than take the risks associated with lending to small businesses,” Ortiz-Luis lamented.

 

A feature of the MSME Amendment Act which PCCI is championing is the alternative compliance by banks by lending through microfinance institutions and cooperatives as conduits.  This will address the issue of banks of lending to high-risk creditors such as MSMEs and farmers.

 

PCCI said it may also be worthwhile to consider adopting the programs of the Small Business Administration of the United States, which does not simply provide loans but maintains several services to small businesses including technical assistance to be able to get loans, guarantees and contracts.

 

Voicing out their concerns on the rising costs of raw material inputs including sugar, utilities and services, the stringent measures industries face as government commits to bring down the country’s carbon emission, and the shortage of skills required by industries the PCCI officials pushed forward other key policy recommendations.  These include allowing manufacturers to directly import their sugar requirements through a sugar tarrification measure; amending the Philports Act to promote competitive neutrality in ports operations and ensure that rates are commensurate to the services provided by ports operators; modernizing the legislative framework on internet and digital connectivity; ensuring quality and affordable power and consideration of nuclear power as alternative reliable baseload power for energy intensive manufacturing operations; strengthening waste-to-energy programs through a national and local government and business sector partnership; and, and promulgating qualification standards for all levels of education and training to ensure graduates meet industry requirements.

 

Congressman Mariño expressed his support to PCCI’s priorities committing to work closely with the chamber and with the Executive Department toward the same goal of an inclusive and resilient economic growth.  He shared PCCI’s aspiration to bring investments in the rural areas and those outside of and far from metropolitan areas both, which is also an effective means to decongest urban areas. --- Athena Danielle Quizon

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