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The Philippines’ largest business organization on Wednesday called on the government to streamline its trade policies, highlighting the topic amid a widening trade deficit which now sits at $4.30 billion and the renewed push to promote micro, small and medium enterprises (MSMEs).
Philippine Chamber of Commerce and Industry (PCCI) president Enunina Mangio emphasized the importance of trade, characterizing it as the foundation of economic prosperity.
“It is through trade that we connect with the global market, create jobs, and foster innovation. The essence of globalization has broken down barriers as it continuously allows free flow of ideas, goods, services, and capital across borders,” Mangio said during the Metro Manila Business Conference at the Manila Hotel organized by the PCCI.
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Preliminary data from the Philippine Statistics Authority (PSA) released earlier this month showed the trade deficit in June had widened from the $3.94-billion deficit last year.
A trade deficit happens when a country is paying more for its import requirements than earning from export sales.
Further, Mangio highlighted that trade has opened up opportunities for local businesses, giving them leverage on global supply chains and adopting the best practices from around the world.
“However, we also need to keep in mind that as agents of change, our trade system must evolve to meet the demands of sustainability,” she said.
Mangio then went on to say that the trade policies must be streamlined to enhance the Philippines’ economic competitiveness.
Further, she said that it should also be tweaked to promote fair and equitable growth.
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“This means that we have to support our MSMEs, ensure that they have access to global markets, and foster an environment where our businesses can thrive while also respecting the principles of social responsibility and environmental stewardship,” said Mangio.
Recently appointed acting trade secretary Cristina Aldeguer-Roque had laid out a five-point plan in developing local MSMEs, highlighting the importance of the sector which comprises 99 percent of businesses and employs around 60 percent of the country’s workforce.
“If we push or drive the MSMEs, then we also drive the economy,” Roque said in a recent meeting with business leaders.
The initiative includes the utilization of AI (artificial intelligence) and digitalization, diversification, funding the business sector, franchising, and mentoring and providing strategic learning.