THE Department of Trade and Industry (DTI) is getting a P1 billion budget in 2018 for shared-services facilities (SSFs), one of its channels for promoting the emergence of micro, small and medium enterprises (MSMEs).

The 2018 SSF budget represents a drastic upgrade from P70 million this year.

Shared-service facilities are typically given over for use by cooperatives, including farmers, small-scale food processors, or other entities engaged in light industry, to improve their productivity or add value to their output, thereby helping them increase their income or tap new markets.

Trade Secretary Ramon M. Lopez told reporters that he expects the department to receive P5.8 billion overall, against P4.8 billion in 2017, and less than the requested funding of P6 billion.

“Of course, we would have wanted more because that would mean that we can help more people, we can support trade promotion, we can support exporters, we can do many programs on packaging,” Mr. Lopez said.

Mr. Lopez said that the increased budget for the SSF means more MSMEs and cooperatives will be receiving equipment needed to sustain their operations.

“It’s a vital ingredient for the micro-operations especially cooperatives. If they’re a group that harvests calamansi, you need a processor for it. If it is left to the entrepreneurs buy them, it will be too expensive for them,” he added.

“A machine worth P5 million will be too much for them. So that’s what the government will give them.”

Part of the SSF budget will also be used for maintenance or for spare parts for machinery already in use.

Mr. Lopez said the SSF funding is separate from the P1 billion set aside for other MSME programs and the P1 billion for the Small Business Corp.’s Pondo sa Pagbabago at Pag-asenso (P3) program.

“Total borrowers under the P3 have increased to more than 30,000 — most are micro-entrepreneurs from the provinces. The loan would usually range from P5,000 to P50,000 but as you know, the amount could be up to P100,000,” he added. — Anna Gabriela A. Mogato

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