Business groups are urging lawmakers to strengthen proposed amendments to the Magna Carta for Micro, Small and Medium Enterprises (MSMEs), warning that persistently weak credit access shows decades of policy efforts have fallen short.
In a March 11 letter to the Senate Committee on Trade, Commerce, and Entrepreneurship, the Philippine Exporters Confederation Inc. said discussions on the measure have been revived through Senate Bills Nos. 492, 931, and 761.
“Records showing weak MSME loan access are proof that we have not taken this issue seriously, with merely token efforts that have not even scratched the surface in terms of MSME development,” said Sergio Ortiz-Luis.
Ortiz-Luis noted that despite multiple amendments to the law—Republic Act 6977, Republic Act 8289, and Republic Act 9501—MSMEs remain among the most underbanked in Asia, with around half lacking access to formal loans.
Philexport is pushing for key reforms, including stronger representation of MSMEs in the MSME Development Council and expanded powers for the Small Business Corporation, such as creating an Enterprise Rehabilitation Fund for firms hit by calamities.
The group also proposed stricter compliance measures for banks, including extending mandatory credit allocation, limiting lending to medium-sized firms, and requiring sworn reporting to prevent “evergreen loans” from being counted as compliance.
Retaining penalties for non-compliance is critical, it added, with fines proposed to be channeled to SB Corp to expand lending capacity.
While backing incentives, digitalization, and risk-based lending, Philexport cautioned against excessive alternative compliance mechanisms that could dilute support.
“There is much room for development in this sector that could unlock opportunities for greater employment, rising incomes, innovation and value creation,” Ortiz-Luis said.
