A senator called for an urgent overhaul of government regulations to protect Micro, Small, and Medium Enterprises (MSMEs) as local entrepreneurs struggle to survive under the heavy weight of rising inflation, a weakening Philippine peso and recurring natural disasters.
Addressing government regulators during a hearing of the Senate Committee on Trade, Commerce and Entrepreneurship this Friday, Senator Bam Aquino argued that strengthening the economy during challenging times requires removing unnecessary bureaucratic obstacles that drain capital and time from small enterprises.
“Napakahirap na ekonomiya po natin ngayon. Patunay po ang kanilang kwento na hindi kulang sa sipag, kulang sa tsaga o pangarap ang mga Pilipino. Kadalasan po ang kailangan lang konting tulong. Puhunan, kaalaman, pagkakataon at isang gobyernong tumutulong at hindi nagpapahirap sa kanilang mga negosyante,” he said.
With MSMEs representing nearly 99% of registered enterprises and generating two out of every three jobs in the country, he pointed out that small enterprise resilience directly dictates the country’s economic stability. When natural calamities hit or global economic pressures force up the dollar exchange rate, driving up the costs of raw materials, fuel and imported goods, small shop owners bear the brunt of the impact.
Instead of receiving support, many entrepreneurs find themselves overburdened by costly and repetitive regulatory hurdles.
“Sq isang MSME, bawat araw na nauubos sa pila ay isang araw na hindi siya makapagbubukas ng tindahan. Bawat dagdag na bayarin ay maaaring bawas sa puhunan, pangsueldo sa kanilang empleyado o panggastos para sa kanilang pamilya. Ito po ang mga pahirap sa MSMEs,” he said.
Aside from bureaucratic delays, Aquino raised concerns over corruption and extortion targeting small business owners struggling to rebuild after disasters or cover rising overhead costs.
“Ang mga hinaharap ng ating mga MSME na pangungotong at korupsyon na nakikita po nila na siyang pumapatay sa kanilang negosyo,” he added.
The senator urged regulatory agencies including the Bureau of Internal Revenue (BIR), Bureau of Fire Protection (BFP) and Food and Drug Administration (FDA) to adjust compliance demands based on business size, risk and financial capacity rather than imposing uniform mandates on both corporate giants and neighborhood vendors.
“Hindi po talaga tama na pare-pareho lang ang mga requirement ng maliliit at malalaki. Iba po ang requirement ng maliliit sa malaki at nararapat lang na may ibang set of rules and regulations for the smaller businesses in our country,” he said.
Pending legislation in the senate is the Modernizing the Magna Carta for MSMEs and Go Negosyo Act (RA 10644). This will update definitions to grant capital, mentorship and micro-insurance to non-traditional and digital entrepreneurs, including online sellers, freelancers, content creators and social enterprises.
Local Farmer and MSME Procurement and Voucher Program that will mandate direct state procurement mechanisms to channel existing government social assistance funds into sourcing products directly from local smallholders and MSMEs.
Establishment of a Creative Economy Agency adedicated infrastructure, funding and export support modeled after South Korea’s KOCCA to scale digital and creative small businesses.
Targeted Red Tape Reduction and Audit Safeguardsthat will institionalize transparency measures to eliminate abusive tax audits and disclosing BIR Letters of Authority (LOAs), lowering BFP inspection fees and streamlining FDA approvals.
To drive targeted incentives for major job-creating industries such as IT-BPM, electronics, semiconductors, shipbuilding and the blue economy.
Aquino challenged key state departments to engage in “real talk” to addres systemic friction points and streamline operations.
“Sana po sa araw na ito, maging tapat tayo, real talk. Real talk, huwag po tayo mahiya sa isat-isa. Yung mga ahensya po dito, alam naman natin, wala naman perpektong ahensya. Marami mababait at maayos sa tao sa gobyerno pero alam rin natin, marami rin mga nag aabuso,” Aquino said.
He envisioned a pathway for long-term economic recovery to enable micro-entrepreneurs to expand, hire more staff and withstand external economic shocks thru legislation and government assistance.
“Trabaho naman natin sa gobyerno na tiyaking suportahan sila at hindi maging sagabal sa kanilang tagumpay. Tulungan po natin manatiling bukas ang mga maliit na negosyo. Tulungan po natin silang lumago, lumikha ng mas maraming trabaho at umangat mula micro patungong small, small patungong medium, medium patungong large hanggang po maabot ang mga pangarap po nila,” he concluded.
