Gov’t increases budget for vital agriculture facilities to P770M

The Department of Trade and Industry is increasing its budget for the Shared Service Facility program to P770 million this year, as it moves to further boost the competitiveness of the country’s micro, small and medium enterprises (MSMEs) in both the domestic and international markets.

The budget is higher than the P700 million it earmarked earlier for the 2014 program. The amount would also be on top of the P700 million previously allocated in 2013, which was funneled to various projects across the country.

Trade Undersecretary Adrian S. Cristobal Jr. noted that most of the projects would be agriculture- or rural-based, explaining that these have the potential to generate the most number of jobs. The move is seen to ensure inclusive growth, particularly in the countryside.

Some projects will meanwhile be geared towards boosting the manufacturing sector, he added.

Earlier estimates showed that an average of P1 million in investments would be needed for each facility.

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

The Trade department’s Regional Operations and Development Group (RODG), the unit in charge of implementing the project, provides the processing equipment through its private sector partners who, in turn, house these equipment in sustainable facilities.

These facilities and equipment are then made available for the common use of enterprises within industry clusters all over the country.  Amy R. Remo