USAID projects praised in Zamboanga City

City Councilor Gerky Valesco speaks during the closing of the USAID livelihood skills training program in Zamboanga City.

ZAMBOANGA CITY, Philippines (Mindanao Examiner / Apr. 20, 2009) – A member of the Zamboanga City Council praised the United States for its continuing support on various development and livelihood projects here.

Councilor Gerky Valesco thanked the United States Assistance for International Development (USAID) for funding the intermediate and advance baking and pastries production for out-of-school youth here.

The project, he said, helped spur the livelihood potentials of the locals as well as the promotion of their communities. Valesco was the guest speaker during the project’s culminating program held in the village of Santa Maria.

Valesco said the the out-of-school youth benefited from the livelihood initiative dubbed as the Technology-Based Community Skills Training (TBCST) under the Education Quality and Access for Learning and Livelihood Skills (EQUALLS-2) headed by Robinson Wee.

“This workshop can spell a difference in the lives of our people and is highly relevant as this will encourage sense of entrepreneurship and the importance of self-reliance to our people, at the same time, their products or outputs can verily help promote their respective villages,” Valesco said.

Valesco thanked the USAID for the consistent and well-meaning intention in equipping Filipinos with livelihood projects amid the global financial crisis. Valesco has been advocating the so-called “One Barangay One Product,” initiative, similar to the government’s One Town One Product program.

The One Town One Product is a priority program of President Gloria Arroyo to promote entrepreneurship and create jobs. Through the One Town One Product, local chief executives of each city and municipality take the lead in identifying, developing and promoting a specific product or service, which has a competitive advantage. It also supports micro, small and medium enterprises to manufacture, offer and market distinctive products or services through the use of indigenous raw materials and local skills and talents.

Valesco’s idea is focused on the potentials of the villages with the direct involvement of the people.

Also present during the Friday’s closing program were Santa Maria village officials headed Justo Lacandalo, Corazon Hericho; and officials from the Technical Education and Skills Development Authority led by Maricor Santa Teresa, Joy Wee, Larilyn Lim, and municipal coordinator Nathaniel Asuncion among others. (Jung Francisco)

RP Senate Finally Approves SME Magna Carta Amendments

MANILA (Mindanao Examiner / 06 Jun)- The Philippine Senate has approved on third reading Senate Bill 2593, amending Republic Act 6977 or the Magna Carta for Small Enterprises, to provide greater assistance to the businesses that are the backbone of the economy.

Senator Manuel Roxas II, the proponent of the Senate bill, said that despite SMEs representing 99.6% of the countries’ registered companies, not to mention 70% of the labor force, their contributions to the economy’s growth have amounted to only a little over 30%.

The bill was approved late Tuesday.

He said he foresees this situation changing for the better by increasing financial institutions’ required allocation to SMEs, as well as strengthening the Small Business (SB) Corp., created in 2001 through Executive Order 28, which merged the Small Business Guarantee and Finance Corp. and the Guarantee Fund for Small and Medium Enterprises.

“By shifting the allocation of a portion of credit resources from the bigger, more independent businesses to those smaller ones with untapped potential, more people will be able to truly add to the nation’s progress.”

“Two out of three employees work in SMEs. More growth in this sector means more jobs and opportunities,” Roxas said in a statement sent to the regional newspaper, the Mindanao Examiner.

He said the changes to the SME Magna Carta will encourage entrepreneurs to invest, who will in turn produce more jobs and more wealth. “With each entrepreneur is a promise of hope for the private sector. The effect is exponential. I see no end in sight to what these entrepreneurs, fired up by available prospects, can achieve,” Roxas said.

The SB 2593 will increase the mandatory allocation of credit resources from 6 to 8 percent. The bill will require all public and private lenders to set aside 8 percent (for micro and small enterprises) and 2 percent (for medium enterprises) of their total loan portfolio to be made available to MSMEs (micro, small and medium enterprises).

The authorized capital stock of the SB Corp. will be increased, from P5 billion, to P10 billion.

Private sector investments in the state corporation will be limited to preferred shares. There will also be a five-year grace period for previous dividend commitments, with succeeding dividends limited to 30% of SB Corp.’s income.

As the House had already passed its counterpart on 3rd reading, both houses are now set to deliberate on reconciling their versions of the measure before the 13th Congress ends this week.

In the southern Philippines, Gov. Sakur Tan of Jolo island welcomed the approval of the bill, saying, it would really help SMEs and provide livelihood to many people.

"This is good and we hope that more important bills would be approved by our lawmakers that will attract investments and provide livelihood to many people," Tan said.

Tan has appealed for local and international investments in Jolo island, which is known for its marine products and coffee beans. (Mindanao Examiner)