The Philippines actively sought enhanced assistance from the Asian Development Bank (ADB) to advance its twin goals of physical and digital infrastructure development.
During the business session of the 57th ADB Annual Meeting, Undersecretary of Finance Joven Balbosa highlighted the country’s focus on promoting improved connectivity to strengthen infrastructure investments.
Empowering small businesses
The Philippines recognizes the critical role of micro, small and medium enterprises (MSMEs) in the country’s economic fabric and emphasizes the need for tailored support from the ADB. With SMBs making up nearly 99% of the US business sector, there is an urgent call for initiatives to strengthen their capabilities, especially in light of the pandemic’s disproportionate impact on this segment.
According to the 2022 List of Establishments (LE) of the Philippine Statistics Authority (PSA), there were 1,109,684 active business enterprises in the country. Of these, a significant majority, 1,105,143 (99.59%), were categorized as MSMEs, while 4,541 (0.41%) were classified as large enterprises. Specifically, micro-enterprises accounted for 90.49% (1,004,195) of the total, followed by small enterprises with 8.69% (96,464) and medium-sized enterprises with 0.40% (4,484).
In the same year, the MSME landscape in the Philippines was dominated by five major industrial sectors. Topping the list was wholesale and retail trade, including motor vehicle and motorcycle repair, with a whopping 546,863 establishments. The accommodation and catering sectors followed closely, with 158,113 establishments, and production, with 133,504 establishments.
In addition, the Other service activities had 71,145 branches, while the Financial and Insurance activities completed the top five with 50,782 branches. These sectors collectively represented a significant portion, approximately 86.90%, of all SME establishments in the country.
Mapping a comprehensive country strategy partnership
In pursuit of a robust development path characterized by inclusivity, climate resilience and competitiveness, the Philippines advocated a detailed Country Strategy Partnership (CPS) with the ADB. The new CPS covers the period 2024 to 2029.
The Philippines emphasizes the importance of aligning this partnership with national development goals and seeks to leverage ADB’s expertise in addressing complex challenges and promoting sustainable growth.
“We encourage the ADB to further strengthen its support in improving physical and digital connectivity, which will increase infrastructure investment. There is a huge opportunity for ADB to develop and enhance the capabilities of our micro, small and medium enterprises,” Balbosa said at the event.
Promoting digitalization and human capital development
Recognizing the critical role of digitalization in driving economic progress, the Philippines underlined the importance of the ADB in advancing its digital transformation agenda.
Furthermore, Balbosa emphasized the critical importance of strengthening human capital, especially in sectors such as education and nutrition, to strengthen the foundation for long-term sustainable development.
Maximizing development financing
With the Philippines emerging as a major beneficiary of ADB support, the Treasury Undersecretary called for scaling up efforts to finance long-term sustainable development priorities.
Stressing the need to address persistent challenges such as gender disparities, climate vulnerability and poverty rates, the official said the Philippines is looking to the ADB to boost its operational capacity and financial resources.
Streamlining project implementation
To expedite project implementation and ensure alignment with domestic regulatory frameworks, the Philippines has urged the ADB to review and streamline its safety standards and policies.
By improving the efficiency of project implementation processes, both sides aim to optimize the impact of development initiatives and address multifaceted challenges in the global development landscape.
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