Sen. Joel Villanueva on Tuesday said strengthening micro, small and medium enterprises (MSMEs) remains key to generating sustained employment, as he urged the government to refocus spending priorities to support the sector.
Villanueva said the 2026 General Appropriations Act (GAA) should be geared toward enhancing the competitiveness and sustainability of MSMEs, noting that job growth must be assessed realistically on a month-to-month and year-to-year basis.
“We must improve on our employment figures on a month-to-month and year-to-year basis for a realistic job growth figure and one strategy to raise employment is by strengthening the lifeblood of our economy, the MSMEs, through focused government support. Where MSMEs thrive, communities prosper,” he said.
Latest data from the Philippine Statistics Authority showed the unemployment rate in November eased to 4.4 percent, equivalent to 2.25 million jobless Filipinos, down from 5 percent or 2.59 million in October.
Despite the slight improvement, Villanueva said more targeted interventions are needed.
MSMEs account for 99.63 percent of registered business establishments and provide 66.97 percent of total employment as of 2023.
“The budget must be used judiciously and effectively to empower MSMEs, create quality jobs and inspire inclusive growth,” he said.
The senator renewed his call for the passage of Senate Bill No. 1155, or the MSME Stimulus Act, which seeks to institutionalize government support for MSMEs to help drive job generation.
Under the bill, MSMEs may access interest-free loans from the Land Bank of the Philippines and the Development Bank of the Philippines to support expansion, regional job creation and continued operations.
The bill also provides for wage subsidies to cover all or part of employee salaries and includes provisions to assist MSMEs in sustaining operations during national emergencies, natural disasters, public health crises and other unforeseen disruptions. (PNA)
