DTI sets aside P700M for MSMEs program

The Department of Trade and Industry is allocating another P700 million for its Shared Service Facility project in 2014, as it targets to further boost the competitiveness and productivity of micro, small and medium enterprises (MSMEs) in both the domestic and international markets.

This is on top of the existing P700 million budget being rolled out for the project, said Trade Undersecretary Zenaida C. Maglaya an the sidelines of a forum at the Asian Development Bank Monday.

According to Maglaya, the government expects to spend an average of P1 million per facility, which means the target is to put up at least 700 shared service facilities given the new budget.

The SSF project, which is the DTI’s flagship program for MSMEs, is seen to enable the growth of innovative and globally competitive MSMEs by providing them with facilities that will be shared by a number of beneficiaries such as cooperatives, institutions and communities.

The DTI’s Regional Operations and Development Group (RODG), in-charge of implementing the project, provides processing equipment through its private sector partners.

As of end July, the DTI has already launched 122 facilities and equipment, worth P42 million, and assisted 15,197 entrepreneurs all over the country. The facilities are situated in the country’s 609 poorest municipalities and are expected to generate 5,036 jobs for members of these communities.

Maglaya added that more projects were being lined up and added under the project.