1. “SME Development in the Philippines: Prospects and Challenges”

2. Overview of Philippine MSMEs
Ladies and Gentlemen, good afternoon!
Let me begin by congratulating the organizers; the De La Salle University, Victoria University - Australia, Universiti Malaysia Terengganu, and Mahidol University International College- Thailand for holding the final leg of a 4-country workshop series dubbed as ‘ASEAN Academic Partnerships for Small Business and ICT Knowledge Transfer”.
Our Director, Jerry Clavesillas would very much like to join you however a Management Committee Meeting was called by the Undersecretary of the Regional Operations Group today. So please allow me to read to you his presentation.
Let me first provide you with a brief background on the Philippine micro, small and medium enterprises or MSMEs.

3. Definition
The Magna Carta for Micro, Small and Medium Enterprises defines MSMEs (using asset size) as follows:
Category
Total Asset Value*
Micro enterprises
Up to ₱3,000,000
Small enterprises
₱3,000,001 – ₱15,000,000
Medium enterprises
₱15,000,001– ₱100,000,000
Republic Act 9501 otherwise known as the Magna Carta for MSMEs which provides the overarching law for the sector defines MSMEs as follows.
The law defines micro, small and medium enterprises (MSMEs) as any business activity or enterprise engaged in industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, must have value falling under the following categories:
Micro enterprises are those with asset sizes of P3 million and below;
Small enterprises have assets from P3,000,001 to P15 million;
Medium-sized enterprises, on the other hand, have assets in the range of P15,000,001 to P100 million.

4. Economic Contribution of MSMEs
MSMEs account for 99.5% of the total number of establishments
Employ 61.6% of the total labor force
Contribution to total value added
is 36.7%
59%
of all exporters
are MSMEs
The impact of MSMEs in the country cannot be overemphasized. Together, they employ 61.6% of the total workforce and contribute 36.7% of the country’s total value added. In addition, 59% of exporters in the country are MSMEs.
MSMEs play a key role in increasing competitiveness and promoting rural and global value chain development, thereby achieving inclusive growth and poverty reduction.
Indeed, a vibrant MSME sector is an indication of a thriving economy. The growth of MSMEs is expected to continuously rise as more individuals are encouraged to establish their business, or even formally register their enterprise, as we work on providing an enabling business environment.
Source: Philippine Statistics Authority 2015

5. Distribution by Size and Employment
Large,
4,075
(0.45%)
Medium, 3,863
(0.43%)
Small, 86,367
(9.59%)
Micro,
2,285,634
(29.43%)
Large, 2,981,819(38.39%)
Micro, 806,609
(89.53%)
Small,
1,968,452
(25.34%)
Medium, 530,784
(6.83%)
In the 2015 PSA data, the MSME sector in the Philippines consists of 896,839 establishments or 99.5% of the 900,914 total registered establishments. Micro enterprises constitute the largest portion (89%), followed by small enterprises (9%), and medium enterprises (0.43%). This composition is at par with those of MSME sectors in other ASEAN countries
In terms of employment, MSMEs account for 4.8M or 61.6% of the total 7.8M employment, while large enterprises account for 2.98M or 38.4% of total employment.
Total: 7, 766,689
Distribution of enterprises by
total employment
Total: ,914
Distribution of establishments
by enterprise size
Source: Philippine Statistics Authority 2015

6. Distribution of MSMEs by Industry
*Others include:
Agriculture, Forestry and Fishing
Mining and Quarrying
Electricity, Gas, Steam and Air Conditioning Supply
Water Supply; Sewerage Waste Management and Remediation Activities
Construction
Transportation and Storage
Real Estate Activities
Professional, Scientific and Technical Activities
Administrative and Support Service Activities
Education
Human Health and Social Work Activities
Arts, Entertainment and Recreation
The next chart shows that almost 50 percent of MSMEs are engaged in wholesale and retail trade while percent and percent are in the manufacturing and hotels and restaurants sectors respectively, while the remaining 19.76% fall under “others” which constitute:
Agriculture, Forestry and Fishing
Mining and Quarrying
Electricity, Gas, Steam and Air Conditioning Supply
Water Supply; Sewerage Waste Management and Remediation Activities
Construction
Transportation and Storage
Real Estate Activities
Professional, Scientific and Technical Activities
Administrative and Support Service Activities
Education
Human Health and Social Work Activities
Arts, Entertainment and Recreation
2015 Philippine Statistics Authority Data

7. Barriers to MSME Growth and Development
Non-financial barriers
Poor business environment/high cost of doing business
Lack of access to market
Lack of awareness on national and international standards
Low productivity and efficiency
Dealing with climate change and other risks and undertaking business recovery
Financial barriers
Lack of access to finance
The constraints that MSMEs often face can be generally categorized as: (1) non-financial barriers; and, (2) financial barriers.
One of the non-financial barriers to MSME development is the high cost of doing business or poor business environment that discourages the formation of new MSMEs or the entry of existing MSMEs into larger markets. Many MSMEs also find it difficult to penetrate and sustain their presence in desired markets. Lack of technical knowledge also hinder the enterprises from participating in global value chains. Another factor may be the low compliance of MSMEs with national and international standards such as quality and environmental standards, rendering them uncompetitive in international markets. Many MSMEs also find it difficult to innovate and acquire cost-effective technologies thus their productivity and efficiency is low. Further, due to the country’s geographic location, the Philippines rank high in terms of exposure and risks to natural disasters. The MSMEs, because of their size, are vulnerable to the effects of climate change.
The lack of access to financing has always been identified as the most serious constraint to MSME growth and development.
Financing, particularly from external sources such as banks becomes more important as firms start expanding. Though funds have been made available by government financial institutions such as SB Corporation, DBP, Land Bank, etc. and private banks, most MSMEs still have difficulty accessing funds because of (1) insufficient collateral, limited credit histories and banking relationships; (2) inadequate financial records and business plans; and (3) high interest rates. MSMEs would thus tend to rely on informal non-banking channels for financing support.

8. MSME Laws
To provide an enabling business environment in the Philippines especially for micro and small enterprises, the following MSME laws were crafted and implemented.

9. R.A. 6977: Magna Carta for Micro, Small and Medium Enterprises
Major Provisions
Creation of the Micro, Small and Medium
Enterprise Development (MSMED) Council
Members: DTI, DA, DILG, SB Corp., representatives from the
MSME, women, and youth sectors
Advisory Unit: Secretary of DOST, Governor of BSP, President of LBP, President of DBP, Director-General of NEDA, President of CIC, representatives from the labor sector, private banking
sector, microfinance NGOs, and UP ISSI
Creation of the Small Business Guarantee and Finance
Corporation (SB Corporation)
Mandatory Allocation of Credit Resources for MSME Lending
Republic Act 9501, otherwise known as the Magna Carta for Micro, Small and Medium Enterprises is a landmark legislation that defines the current national policy to promote, support, strengthen and encourage the growth and development of MSMEs. It was enacted by the Philippine Congress in 1991 as Republic Act 6977, and amended by Republic Act 8289 in 1997, and further amended by Republic Act 9501 in 2008.
The law is geared towards the development of the Filipino entrepreneurial spirit by providing a business environment conducive for MSMEs. The law provides for the creation of the MSME Development Council, the creation of the Small Business Guarantee and Finance Corporation, and the mandatory allocation of credit resources of at least 10% of total loan portfolio of financing institutions for lending to MSMEs.

10. R.A. 9178: Barangay Micro Business Enterprises (BMBEs) Act
It encourages the formation and growth of BMBEs (or micro enterprises) by granting them incentives and other benefits
Exemption from income tax
Exemption from the coverage of the Minimum Wage Law
Special credit window
Technology transfer, production and management
training, and marketing assistance
R.A 9178 or the Barangay Micro Business Enterprise (BMBEs) Act of 2002 encourages the formation and growth of BMBEs (or the micro enterprises) by granting them incentives and other benefits.
The major incentives that BMBEs will receive under the Act are: 
Income tax exemption from income arising from the operations of the enterprise;
Exemption from the coverage of the minimum wage law. BMBE employees will, however, still receive the usual social security and health care benefits;
Priority to a special window set up specifically for the financing requirements of BMBEs; and,
Technology transfer, production and management training, and marketing assistance programs for BMBE beneficiaries.

11. R.A : Go Negosyo Act
Promotes “ease of doing business and facilitate access to
services for MSMEs” through the Negosyo Centers
Establishment of Negosyo Centers
Establishment of A Start-Up Fund for MSMEs
Unified and simplified business registration
Reconstitution of MSMED Council
Republic Act or the Go Negosyo Act was passed into law in The basic policy of the Go Negosyo Act is to foster national development, promote inclusive growth, and reduce poverty by encouraging the establishment of MSMEs that facilitate local job creation, production and trade in the country. It also provides for the:
Establishment of Negosyo Centers in all municipalities, cities and provinces nationwide;
Establishment of a Start-up Fund for MSMEs to be sourced from MSME Development Fund and BMBE Fund;
A unified and simplified business registration through automatic approval of business permits not acted upon within 15 days; and
Reconstitution of MSME Development Council
Dinagat Islands

12. SME Development Plan
“A more globally competitive, regionally integrated, nationally resilient, highly sustainable and productive, innovative and dynamic MSME sector performing as one of the most effective drivers of inclusive Philippine economic growth.”
Micro, Small and Medium Enterprise Development Plan 
Under the stewardship of the MSME Development Council of which the DTI Secretary acts as the Chair, MSMED Plan is crafted. The MSMED Plan is the third Plan that was developed. The first was for the period under the Administration of then President Gloria Macapagal-Arroyo, the second was for the period under the then President Benigno Aquino. Its implementation was specifically made to coincide with the term of the administration to allow us to garner support at the highest level.
The Plan was designed to serve as the framework for developing the MSME sector and was meant to integrate and harmonize all related efforts currently or prospectively undertaken by government, private sector and development partner institutions. The Vision of this Plan is to have “A more globally competitive, regionally integrated, nationally resilient, highly sustainable and productive, innovative and dynamic MSME sector performing as one of the most effective drivers of inclusive Philippine economic growth” by 2022.
This will be achieved by focusing on 3 major areas, namely, business environment, business capacity and business opportunities. 14

13. Business Environment Business Capacity Business Opportunities
MSME Development Framework ( )
A more globally competitive, regionally integrated, nationally resilient, highly sustainable and productive, innovative and dynamic MSME Sector performing as one of the most effective drivers of inclusive Philippine economic growth
Vision
Focus
Areas
Business Environment
Business Capacity
Business
Opportunities
BUSINESS CLIMATE
ACCESS TO FINANCE
HUMAN CAPITAL DEVELOPMENT
TECHNOLOGY AND INNOVATION
ACCESS TO MARKET
Themes
Goals
Improved Access to Finance
Enhanced Management and Labor Capacities
Improved Access to
Technology and Innovation
Improved Access to Market
Improved Business Climate
Strategies
Strengthen value and supply chain linkages
Streamline and simplify loan processes of formal financial channels.
Expand and strengthen human resource capacity
Support linkages between MSMEs and large corporations
Simplify, standardize and harmonize related rules and regulations at all levels
Cross
Cutting Strategies
Expanding the MSME Assistance Centers Strengthening the Role of Local Government Units Promoting Green Growth
Action
Plans
Expand shared facilities and financing programs;
Develop, promote, and harmonize industry performance standards.
Encourage and Promote Entrepreneurship;
Enhance labor capacities;
Intensify education campaigns
Simplify loan processes;
Provide financial literacy trainings
Assess and Implement related laws and programs
Advance delivery of MSME assistance services;
Streamline business systems;
Reduce regulatory burden
Expand market access;
Promoting e-Commerce;
Engage MSMEs in local and foreign trade fairs
In the crafting of the MSMED Plan , the Manufacturing Resurgency Plan, Philippines’ integration to the ASEAN Economic Community and APEC initiatives for MSMEs, and the Philippine Development Plan were considered. An MSME Development Framework was developed. The goals of the Plan include:
Improved Business Climate;
Improved Access to Finance;
Enhanced Management and Labor Capacities;
Improved Access to Technology and Innovation; and
Improved Access to Markets.
Institu-tional Support
Effective coordination and sharing among government agencies
Responsive, timely, and graft-free services of implementing agencies
Generation and analysis of relevant information/data in implementation plans
Comprehensive budget allocation for all indicative programs/projects/activities
Strategic sectoral monitoring and evaluation of implemented plans

14. Initiatives for MSME Development
Our objective is to intensify the promotion of entrepreneurship and enterprise development so as to contribute to the Duterte Administration’s 10-point socio-economic agenda, particularly the agenda on: “Increasing competitiveness and ease of doing business.”

15. DTI’s 7Ms for MSME Development
The Department of Trade and Industry sums up the needed strategies in seven Ms (7Ms) that describe the elements of the approach and framework for enabling and fostering the country’s small enterprises.
The Department of Trade and Industry sums up the needed strategies in seven Ms (7Ms) that describe the elements of the approach and framework for enabling and fostering the country’s small enterprises.
7Ms

16. These are:
Change in Mindset - which calls for a paradigm shift especially for micro and small entrepreneurs. A mindset that embraces, innovation, service and continuous improvement.
Mastery – of the technical and financial aspects of the business – spells the difference between small firms that succeed and those that do not. A drive for excellence, rather than settling for“ good enough,” is key for a small firm to sustain itself, let alone grow.
Mentoring initiatives can be very helpful, whether undertaken by government, business and/or professional groups. The Department of Trade and Industry has been conducting the SME Roving Academy and Doing Business in Free Trade Areas (DBFTA) seminars all over the country for years.
Markets are more accessible to small firms with good communication and transport infrastructure linking them readily with buyers. E-commerce platforms are a rapidly growing medium allowing MSMEs to sell worldwide just as easily as large multinationals do.
Machines have been important tools for small firms to upgrade technology. The Department of Science and Technology’s Small Enterprise Technology Upgrading Program (SETUP) and DTI’s Shared Service Facilities (SSF) are helping groups of small enterprises raise productivity and competitiveness.
Lack of Money is most often ranked as the key issue hindering them from effectively participating in economic activities and global value chains, and benefiting from the growth of trade and investment.
Models either help new entrepreneurs actually start a business, or help existing firms improve the conduct of their business operations toward greater efficiency and productivity.

17. Business Registration Assistance Business Advisory Services
Promote “ease of doing business and facilitate access to services for MSMEs”
Business Registration Assistance
Business Advisory
Services
Business Information and Advocacy
Monitoring and Evaluation
On Business Environment, the establishment of Negosyo Centers in all provinces, cities and municipalities in the Philippines aims to promote ease of doing business and facilitate access to services for MSMEs within each Center’s jurisdiction. This was made possible by virtue of the Go Negosyo Act which took effect on 13 January 2015.
Functions of the Negosyo Center include:
Business Registration Assistance. Negosyo Centers accept and facilitate all new registration and renewal application of MSMEs; Coordinate with respective LGUs and liaise with concerned government agencies to process the duly accomplished forms submitted by MSMEs; and implement a unified business registration process preferably through automated systems such as the Philippine Business Registry
Business Advisory Services. MSMEs are assisted in meeting regulatory requirements to start and sustain the business. Negosyo Centers also facilitate access to government programs of assistance like shared service facilities, product development, management guidance, among others.
Business Information and Advocacy. MSMEs provide information and services on training, financing, marketing and other areas.
Monitoring and Evaluation, where Negosyo Centers monitor and recommend business-process improvement for MSMEs and establish a feedback mechanism among the MSMEs.
As of May 31, 2017, there have been 515 Negosyo Centers established nationwide.

18. Mandatory Allocation of Credit Resources for MSMEs
BSP Circular No. 625 Series of 2008, whether public or private, shall set aside:
at least eight percent (8%) for micro and small enterprises and at least two percent (2%) for medium enterprises of their total loan portfolio for MSME credit for the period of ten (10) years from the date of the effectivity of R.A R.A took effect on June 2008.
On Access to Finance, Section 15 of Republic Act No (as amended by R.A and R.A. 9501): Magna Carta for MSMEs, mandates all lending institutions, as defined under BSP Circular No. 625 Series of 2008, whether public or private, shall set aside at least eight percent (8%) for micro and small enterprises and at least two percent (2%) for medium enterprises of their total loan portfolio for MSME credit for the period of ten (10) years from the date of the effectivity of R.A R.A took effect on June 2008.
The Bangko Sentral ng Pilipinas monitors and reports that the aggregate compliance rate of the banking industry to the mandatory allocation provision of the Magna Carta is being achieved.

19. Access of Small Enterprises to Sound Lending Opportunities (ASENSO) Program
Government’s flagship program for the MSME sector aimed at creating a MSME-friendly lending environment
GFIs extend loans to MSMEs providing them with manageable terms to help them expand and grow their businesses
Accomplishments:
₱ B released ( )
249,606 MSME borrowers
2.618M jobs
Access of Small Enterprises to Sound Lending Opportunities or (ASENSO) Program is a revitalized government led MSME financing program which builds on the gains of the previous SME Unified Lending Opportunities for National Growth or (SULONG) initiative. Dubbed as a government’s flagship program for the micro, small and medium enterprise sector, ASENSO is an initiative of nine government financial institutions (GFIs) and three line agencies aimed at creating a lending environment that is SME-friendly. These agencies are the Department of Trade and Industry (DTI), Department of Social Welfare and Development (DSWD), Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Small Business Corporation (SBC), People’s Credit and Finance Corporation (PCFC), National Livelihood Development Corporation (NLDC), Philippine Export-Import Credit Agency (PhilEXIM), Government Service Insurance System (GSIS), Social Security System (SSS), Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) and the National Anti-Poverty Commission (NAPC). Government financial institutions extend loans to micro and small and medium enterprises providing them with manageable terms to help them expand and grow their businesses.

20. 1 2 3 Pondo sa Pagbabago at Pag-asenso (P3) Program
P3 is a funding program designed to provide microenterprises an alternative source of financing that is easy to access and made available at a reasonable cost.
Microenterprises and entrepreneurs that do not have easy access to credit or are accessing credit at very high interest cost are the primary beneficiaries of the P3 Program.
The Small Business Corporation, an attached agency of the Department of Trade and Industry (DTI) shall administer the P3 Program. 2
Launched just this year, the objective of the Pondo sa Pagbabago at Pag-asenso (P3) Program is to encourage MSMEs, particularly microenterprises, to shy away from informal, “loan shark” sources of lending that usually charge higher interest rates, impeding their growth and development.
Under the P3 program, loan amounts to end-borrowers will be in the range of P5,000 to P100,000, at a maximum interest rate of 2.5% per month, with no collateral requirement. 3

21. SME Roving Academy
A continuous learning program for the development of MSMEs to enhance competitiveness and increase contribution to the country’s GDP and total employment.
How to Start a Business Masinloc, Zambales
Skills Training on Bayong Making Maitum, Sarangani
On Human Capital Development:
The DTI launched the SME Roving Academy in 16 regions in This project provides continuous learning for the development of MSMEs to help enhance their competitiveness in domestic and international markets, thereby increasing the sector’s contribution to the country’s GDP and total employment.
Topics include how to start a business; Basics of Good Manufacturing Practices (GMP); Marketing and Selling Techniques; Consumer Market Behavior; How to Enhance Your Business Plan; and how to acquire an FDA Certificate, among others.
The DTI has conducted a total of 8,781 sessions (from 2013 to March 2017) that have benefitted 369,451 MSMEs nationwide.
Skills Training on Finishing for Bamboo Products and Furnishing Caba, La Union
Skills Upgrading Training on Meat Processing
Cervante, Ilocos Sur
2015 Adivay Product Development Booth
La Trinidad, Benguet

22. Mentor ME program aims to help MSMEs scale up their businesses thru coaching and mentoring by business owners and practitioners on different functional areas of entrepreneurship to be held in Negosyo Centers nationwide.
In partnership with the Philippine Center for Entrepreneurship (PCE) – Go Negosyo, DTI is also implementing the Kapatid Mentor Me Program that aims to help MSMEs scale up their businesses through the weekly coaching and mentoring by business owners and practitioners on different functional areas of entrepreneurship. This are being held in Negosyo Centers nationwide.
Launched late last year, there are already 1,353 mentees across the country as of 29 May 2017.

23. Industry Clustering
Enhancing industry competitiveness to develop and expand exports, generate investments and create jobs:
Industry focus
Convergence
Private sector active involvement
Cacao
Coffee
Coco coir
Processed rubber
The DTI has also adopted the Industry Clustering strategy to enhance industry competitiveness to develop and expand exports, generate investments and create jobs. The key components of this strategy are (a) industry focus, (b) private sector active involvement and (c) convergence where agencies have a shared vision and purpose.
Industry Clusters are groups of competing, collaborating and interdependent businesses within a value chain. It is a geographic concentration of interconnected businesses, suppliers, and associated institutions creating direct & indirect synergies among them.
There are 7 national priority industry clusters. These are processed rubber, coco coir, coffee, cacao, wearables & homestyles, processed fruits and nuts and bamboo.
Processed fruits and nuts
Tourism support industries
Wearables & Homestyles

24. Shared Service Facilities (SSF)
The project provides machinery, equipment, tools, systems, accessories and other auxiliary items, skills and knowledge under a shared system to improve the competitiveness of MSMEs.
FabLab, Bohol
Dough mixer/kneader
Decorticating machine
Industry Clusters
On Productivity and Efficiency:
The Shared Service Facility (SSF) Project is DTI’s flagship for SME development that provides machinery, equipment, tools, systems, accessories and other auxiliary items, skills and knowledge under a shared system to non-government organizations, people’s organizations, cooperatives, industry/trade/business associations, local government units, state universities and colleges, technical vocational schools and other similar government academic or training institutions to improve the competitiveness of MSMEs.
The Shared Service Facilities (SSF) Project aims to (1) increase MSME productivity; (2) gain access to energy efficient technologies and more sophisticated equipment; (3) encourage the graduation of MSMEs to the next level where they could tap a better and wider market share and be integrated in the global supply chain; (4) address the gaps and bottlenecks in the value chain of priority industry clusters, thereby improving market access of MSMEs.
Some facilities provided to MSMEs under this program include fabrication laboratories (Fablab), packaging machines, decorticating machine, twining machine, handloom, sewing machine, etc.
A total of 2,164 SSFs have been established nationwide with 92,227 beneficiaries, generating a total of 52,921 jobs.
Higher productivity
Access to better technologies
Higher levels of innovation and creativity
Improved market access
Embroidery machine
Handloom

25. Trade Fairs Access to Markets On Access to Markets:
The DTI’s market development programs include trade fairs that aim to increase the exposure of SME products in domestic and foreign markets; and to improve the distribution of SME products among and between the local manufacturing and trade sectors. Our trade fairs include:
Manila FAME: The Design and Lifestyle Event, is the country's premier trade platform for exports and design, providing opportunities for small and medium scale entrepreneurs to showcase their products in the world market. Manila FAME is one of the longest-running trade shows in the Asia-Pacific, featuring the latest Philippine-made creations from artisans and manufacturers and is the only trade event in the country approved by UFI, the Global Association of the Exhibition Industry.
The International Food Exhibition (IFEX) Philippines stands as the biggest showcase of ethnic and specialty food, tropical fruits, vegetables, fresh seafood, Halal-certified products, as well as natural, organic, and functional food products in Asia. IFEX Philippines is a fast-rising Asian marketplace where sellers of unique tropical flavors, products, innovations and services are linked with international buyers, importers, and retailers, propelling for bigger international presence, wider variety of products, and world-class features.
Since the Department of Trade and Industry created the SikatPinoy brand for the national trade fairs organized by the Bureau of Domestic Trade Promotion in partnership with DTI regional and provincial offices, the SikatPinoy fairs have become much-awaited events for Metro Manila shoppers. SikatPinoy fairs have previously showcased furniture, handicrafts and food, among others.

26. In the light of the ASEAN Economic Community, we believe that:
The Philippines has come a long way in the ASEAN. ASEAN is now our largest trading partner.
AEC is pushing us to do the right things. We have been led to liberalize trade and investments, open our skies fostering tourism jobs and earnings, and enforce competition policy.
The AEC is more about complementation and less of competition. Global and regional value chains now shape the world trade.
MSMEs must be front and center in AEC. Inclusiveness requires the full participation of MSMEs. This sector is looked up to as the driver of economic growth especially in the countryside.
However, much work remains to be done.

27. Plan: To help MSMEs ‘Internationalize’
How?
By selling and/or buying directly in overseas markets
By clustering and teaming up with competitors to attain economies of scale and service volume orders
By partnering with an assembler or processor to be part of a regional/global value chain
Our AEC gameplan is to help MSME to internationalize. This will be done:
By selling and/or buying directly in overseas markets
By clustering and teaming up with competitors to attain economies of scale and service volume orders
By partnering with an assembler or processor to be part of a regional/global value chain

28. Many PH firms are already in ASEAN
Large: Jollibee, Oishi (Liwayway), Golden ABC (Penshoppe), ICTSI, URC, Mama Sita, KLT Fruits, Pointwest, Splash, many more
Medium: Fountainhead, Manila Catering
Small: Human Nature, Great Women
Micro: Tubigon Loomweavers
In fact, there are many Philippine firms already in ASEAN:
Large companies include: Jollibee, Oishi (Liwayway Holdings Company ), Golden ABC (Penshoppe), International Container Terminal Services Inc., Universal Robina Corporation (makers of Jack 'n Jill, "C2", and Great Taste), Mama Sita Food Mix and Sauces, KLT Fruits (maker of tropical fruit mixes) and , Pointwest (an IT-BPM company which assist air transport and healthcare industries), Splash, many more.
Medium: Fountainhead, Manila Catering
Small: Human Nature, Great Women
Micro: Tubigon Loomweavers
Let us help our MSME reap the benefits of the AEC. Let us help them not to be defensive but be proactive.

29. Thank you!