THE government needs to allocate more funding to export promotion and small business development, the Philippine Exporters Confederation, Inc. (Philexport) said.
In a statement over the weekend, Philexport President Sergio R. Ortiz-Luis, Jr. urged the government not to reduce public spending on export promotion after corruption issues stalled infrastructure projects.
He called investment in export promotion and MSME development “badly needed,” with the potential to “help revive the slowing economy.”
He called cutting down on government spending “unwise.”
“The government spending that was cut was probably the ones that were lost to (corruption in flood control) anyway, so they don’t really go to the economy,” he said.
“We are hoping that (much) of this budget that was lost may go to… investing in exports… and to the SMEs,” he added, noting that the government has been playing ‘lip service’ for the last few years to such segments of the economy, which is “why we are being left behind by our neighbors,” he said. “Our budget for exports is practically nothing.”
He has said that the lack of funding makes it hard for exporters to participate in major trade fairs, with only a handful of companies participating, compared to delegations of over 200 from Malaysia and Thailand.
“We’re sort of plodding along, and we’re still growing a little. Unfortunately growing a little means we’re being left behind by our competitors in ASEAN,” he said.
He noted small businesses have been pulling out of the organization.
“Before, our membership in Philexport was usually growing… For the first time we are receiving resignations for the reason that they are closing shop, and many of these are the small ones that are affected by all these headwinds that we’re all facing now,” he said.
“We would like to really find new markets for them, and we need assistance really from the government, and we have not seen it yet,” he added.
“Unfortunately, while the Department of Trade and Industry has been doing commendable work, it is operating on a very limited budget to carry out the heavy task of export and small-business development,” he said.
“I don’t expect (developments from) the US at this point in time…So, we would like the government to spend the budget on the (overseas postings of trade officials) to help exporters develop these markets,” he added. — Justine Irish D. Table