MALACAÑAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
[ MEMORANDUM CIRCULAR NO. 73, November 07, 2024 ]
APPROVING AND ADOPTING THE MICRO, SMALL, AND MEDIUM ENTERPRISE DEVELOPMENT PLAN 2023-2028, AND DIRECTING THE IMPLEMENTATION THEREOF
WHEREAS, under Section 7 of Republic Act (RA) N0. 6977, as amended by RA No. 9501 or the "Magna Carta for Micro, Small and Medium Enterprises (MSMEs), the MSME Development (MSMED) Council shall be attached to the Department of Trade and Industry (DTI), and shall be tasked to, among others: (a) help establish the needed environment and opportunities conducive for the growth and development of the MSME sector; (b) coordinate and integrate various government and private sector activities relating to MSME development; and (c) recommend to the President and Congress all policy matters affecting MSMEs;
WHEREAS, Section 6 of RA No. 6977, as amended, mandates the DTI, in consultation with the private sector, to formulate and submit for the President's approval a six-year MSME Development Plan (MSMEDP);
WHEREAS, the MSMED Council, through Resolution No. 2 (s. 2024), resolved to endorse the MSMEDP 2023-2028 for the President's approval;
WHEREAS, the MSMEDP 2023-2028 will serve as the blueprint towards empowering the MSME sector to become more robust and globally competitive, taking into consideration the role of said sector in fostering sustainable and dynamic economic development;
WHEREAS, under the Philippine Development Plan 2023-2028, accelerating digitalization and innovation of MSMEs and startups are among the key strategies to revitalize the country's industry sector;
NOW, THEREFORE, the following are hereby ordered:
Pursuant to Section 6 of RA No. 6977, as amended, the MSMEDP 2023-2028 is hereby APPROVED and ADOPTED.
As the lead agency in charge of formulating and adopting policies and programs for the development of the MSME sector, the DTI, through the MSMED Council, is hereby directed to:
1. Coordinate, collaborate and establish institutional partnerships with concerned government agencies and other stakeholders to ensure the attainment of the goals and objectives set forth in the MSMEDP 2023-2028;
2. Monitor and assess the implementation of the MSMEDP 2023-2028 and submit annual reports to the Office of the President, through the Office of the Executive Secretary, on the progress, emerging concerns, and ways forward, in the implementation thereof; and
3. In coordination with the Presidential Communications Office, disseminate official copies of the MSMEDP 2023-2028 to all concerned government agencies, and undertake information and awareness campaigns on the plans and programs specified therein.ℒαwρhi৷
In accordance with their respective mandates, all concerned agencies and instrumentalities of the National Government, including government-owned or -controlled corporations are hereby directed, and all local government units are hereby encouraged, to undertake efforts in support of the implementation of the MSMEDP 2023-2028, and the plans and programs specified therein.
The roles and responsibilities of agencies relative to the implementation of key programs under the MSMEDP 2023-2028 are enumerated in Annex A of this Circular.
This Circular shall take effect immediately.
DONE. in the City of Manila, this 7th day of November, in the year of our Lord, Two Thousand and Twenty-Four.
By authority of the President:
(Sgd.) LUCAS P. BERSAMIN
Executive Secretary
ANNEX A
| PROGRAMS |
DESCRIPTION |
AGENCY-IN-CHARGE |
| Digitalization of MSMEs |
Digitalization of MSMEs shall be pursued by simplifying access to AI-driven systems and ensuring access to a wide-range of state-of-the-art laboratories and testing facilities for the enhancement of MSME operations. |
DTI, Department of Science and Technology (DOST), and Department of Information and Communications Technology (DICT) |
| Streamlining of Business Process Registration |
The Electronic Local Government Unit System shall be promoted and implemented at the local level, towards a more efficient registration process for MSMEs. The said system aims to streamline and improve the delivery of local government services such as, issuance of business permits and processing of business tax payments. |
Department of the Interior and Local Government, DICT, and Anti-Red-Tape Authority |
| Expansion of the Machine Learning-Based Credit Scoring Model |
The Machine Learning-Based Credit Scoring Model, an AI tool used to improve credit assessments and loan approval processes for microenterprises, shall be expanded to include small and medium loan applications. |
Small Business Corporation, in coordination with Bangko Sentral ng Pilipinas |
| Full implementation of RA No. 11057 or the "Personal Property Security Act" |
Section 26 of RA No. 11057 mandates the establishment of a national registry to facilitate the registration of, among others, movable assets as collateral, and enhancing MSME access to loans and financial transactions. |
Land Registration Authority |
| Elevating Capabilities for Higher Productivity |
Programs and initiatives aimed at strengthening financial literacy and skills, and upskilling programs shall be conducted with the aim of enhancing the productivity and competitiveness of the MSME sector. |
DTI, DOST, Department of Labor and Employment-National Wages and Productivity Commission, and Technical Education and Skills Development Authority |
| Revamping the One Town, One Product (OTOP) Program and its facilities1 |
The OTOP program, which aims to drive local economic growth by enabling communities to determine, develop, and promote products that are rooted in its local culture, shall be expanded to include other locally produced products and services across the country. |
DTI, in coordination with local government units |
Footnotes
1 Including, among others, the (a) OTOP Retail and Learning Center; (b) OTOP Grand Food Hall; (c) OTOP Lifestyle Store; and (d) Bagong Pilipinas Marketplace.
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