Fast Internet, reliable power needed to grow MSME sector

Experts said the Philippines must establish strong enablers for innovation in the economically-critical micro, small, and medium enterprise (MSME) sector.

To do this, the country needs robust broadband and power services, said experts headlining the Apec SME Summit 2015 in Makati City next week.

“We’re trying to push for e-commerce and one of the foundations of that is steady and reliable Internet (services) in the country. That’s the lifeline of SMEs,” Senator Bam Aquino said, citing this was paramount in advanced economies such as the US, South Korea, and Japan.

E-commerce not only enable innovation in terms of new ways of selling and advertising goods and services, he said.

“It’s great that the Apec highlighted the critical role of SMEs for the first time, and it ties in with our push for SME development to make economic growth inclusive. It’s perfect,” Aquino said.

GoNegosyo founder Joey Concepcion, citing his initiative partners such as PLDT, said stakeholders must coordinate efforts to make broadband and smartphones cheaper.

Concepcion said while SMEs cannot afford computers and enterprise solutions like what bigger companies have, they can work with smartphones and simple accounting and other applications. But to maximize those, they will still need strong Internet connectivity.

“If Globe and Smart try to get to lobby for that frequency—the 700MHz frequency—and the government opens that up, then maybe we can have a faster connectivity here in this country. Those who will really benefit are SMEs,” Concepcion said.

On the need for reliable electricity supply to power the smartphones and Internet facilities for MSMEs, Aquino said that will be the next phase of coordination among stakeholders.

“For now, the Department of Energy (DOE) does not have much participation in our activities, but power is an area that we can include in the next phase of discussions,” Aquino said.

But more than the infrastructure, connectivity, power, software, and other tools for MSMEs to grow, the most important element is for them to accept global trade, said Doris Magsaysay-Ho, chairperson of the Apec Business Advisory Council (ABAC), which is spearheading the Apec SME Summit 2015.