Response by Secretary Cerge M. Remonde
Guest of Honor - Launching of PlantersBank SME Industrial Park
July 11, 2007, 9:30 AM
Naga, Ceb
(COURTESIES)

I am truly honored to be with your distinguished guests this morning as you launch the country's first small and medium enterprise industrial park.

As the country's first SME bank, it is apt and fitting that PlantersBank be the first, in the words of your chairman, Ambassador Jesus P. Tambunting, "To provide Filipino SMEs with a platform to consolidate operations, widen exporting potentials, and most importantly, benefit from the benefits extended to locators in an export processing zone area."

The presence this morning of the Honorable Lilia De Lima, Director General of the Philippine Economic Zone Authority, attests to that fiscal benefit.

The micro, small and medium enterprise or MSME sector, as you know, comprises almost 99% of total business establishments. About 91% are in the micro-enterprise sector, with capitalization of P3 million or less; while 8.6% are in the small and medium enterprise range.

From 2004 to February, 2007, a total of about P96 billion had been released by government lending institutions to 47,198 SME accounts, supporting some 1.5 million jobs, 462,143 of which were new jobs.

Unprecedented growth in the economy over the last 26 quarters, has opened great opportunities for entrepreneurship for our people.

The MSME sector, concededly, is one of the most efficient generators of jobs, measured in terms of jobs to investment ratio.

Under the legacy program of the president, this administration is committed to support three million entrepreneurs by providing them with credit, technology and marketing assistance. These entrepreneurs will to contribute to the generation of six to 10 million jobs by 2010.

By the end of this year, the government's SME program is expected to release P32.2 billion in loans, supporting a total of 2.2 million jobs.

PlanterBank's aggressive program to support SME growth through the establishment of the SME Industrial Park, will give further impetus to the government's SME program.

With tax credits and tax exemptions, and with income tax holidays in the special economic zones, more investors will be encouraged to go into small and medium enterprises. This will surely increase the number of eligible SME borrowers, and expand the client base of our SME programs.

In time, as our micro enterprises get integrated into the SME supply chain, we will have a more vibrant MSME sector, to create and deliver the 10 million jobs this administration promised for 2010.

The significant gains our economy has posted. The growth we have sustained over the last 26 quarters, are indicators that we have taken the turn and are on our way to full recovery.

The President's social payback program is beginning to yield dividends. And the benefits of the government's investments in human capital and social and physical infrastructure are now being felt on the ground.

With programs like PlantersBank's SME Industrial Park, there is little doubt that the Philippines will be today's success story of Asia.

I therefore congratulate Ambassador Jesus Tambunting for his visionary leadership of PlantersBank, in making it the country's SME bank.

Thank you and all the best wishes for the success of the country's first SME Industrial Park.

[HOME]