Wednesday, October 15, 2008 Group: Develop SMEs to help country cope global crisis
CITY OF SAN FERNANDO -- Amid the perceived panic within the business sector on the effects of the US financial crisis, the Pampanga Chamber of Commerce and Industry (PamCham) is calling for the institution of measures that would somehow mitigate the effect of the crisis in the country.
PamCham president Renato Romero said on Tuesday that although the effects of the US financial meltdown have only "minimal effects" on the economy; it is still necessary to come up with contingency measures to reduce the impact of the crisis. This, he said, could be achieved by strengthening small and medium enterprises (SMEs).
His opinion is shared by Senate Majority Leader Francis Pangilinan who, in earlier interviews, said SMEs are the next frontier for development.
"SMEs can very much help the country meet any financial crisis now or in the immediate future," Romero said.
SMEs, according to Romero, could provide the needed backbone in the local market. Coupled by strengthening of government policies, programs and development, the Philippine market, he said, would mellow down the effect of the crisis.
"Though we are not directly affected by the crisis it still has an obvious effect on the upper sector of business since America is a major trading partner. Plus, the markets that depend on the American market like China are also our trading partners," he said.
Romero said although the country's grassroots economy remains unaffected so far, drastic effects are expected to hit the export industries, foreign investment, overseas Filipino workers and call centers are likely to be hit by the ripple effect of the financial crisis.
Approximately, a fifth of Philippine exports are sent to the US and shipments are expected to fall since the crisis may cut demand for locally-made goods. Romero said the investment coming from investors in the US may be putting away labor force at the cause of meeting investment earnings.
Romero said the most financial analysts expect the effect of the US crisis to hit the upper level of the Philippine market by the first or second quarter of next year.
"Government must make the first move to save the local economy," he said. (IOF)
