MANILA—The country’s largest business group, Philippine Chamber of Commerce and Industry (PCCI) has pushed for better access to financing facilities among micro, small, and medium enterprises (MSMEs).
During the PCCI General Membership Meeting in Makati City on Tuesday, PCCI President George Barcelon reiterated the economic contribution of MSMEs in the country.
Barcelon said that the sector shared 99 percent of the total business establishments in the country while employing about 60 percent of the total jobs in the country.
Despite its significant contribution in the economy, lack of access to finance remains a problem to local MSMEs.
Presidential Adviser on Entrepreneurship Jose Ma. Concepcion III said rural banks should be strengthened in order to facilitate financing to the sector.
Concepcion aims to have more financial facilities available for MSMEs in the market, so that competition increases while pushing interest rates to go down.
On the sidelines of the event, he told reporters that he favored the ‘5-6’ lending scheme to continue.
“In my own way I have a different view. Let the ‘5-6’ continue, provided that that particular need is still being met because there are some people whose credit is not that good and they’d rather borrow from 5-6,” said Concepcion.
“The more money, the more lending that is flushed out in the system,” he added.