MICRO, small and medium enterprises in Negros Occidental are urged to be more innovative in order to cushion possible adverse effects of impending wage and fare hikes in the region.
Mary Ann Colmenares, chairman of the Provincial Micro, Small and Medium Enterprises Development (MSMED) Council, yesterday said the daily minimum wage increase would mean additional labor cost especially to those employing many workers like medium enterprises.
On July 12, private sector workers in Western Visayas will start receiving P13.50 to P41.50 daily minimum wage increase.
This will translate to new wage rates of P295 and P365 per day depending on workers' classification.
Colmenares said MSMEs would also feel the impact of the looming P2.50 fare hike among public utility jeepneys (PUJs) in the region, especially micro ones like sari-sari store owners and other retailers.
The council is apprehensive that fare hike would result in additional transport costs among small businesses.
"Additional labor and transport costs may result to price increases of our products," she said, adding that "thus, local entrepreneurs need to be competitive."
Transport groups are now waiting for the issuance of the new fare matrix by the Land Transportation Franchising and Regulatory Board (LTFRB).
Once implemented, the fare will move up to P9. Currently, the jeepney fare is P6.50 for regular passengers and P5 for persons with disabilities, senior citizens, and students.
Colmenares stressed that "fare hike follows actually on the increase in prices petroleum products."
She pointed out most of the local manufacturers are into production of fuel-based products like ceramics. They are using petroleum in lamination for instance.
"We will really feel it. The rising production cost is a challenge for us," Colmenares said, adding MSMEs should then know how to maximize profit while minimizing cost.
If an enterprise produces 10 pieces of a product at certain cost, they have to find ways how to make production more efficient.
"They must increase the volume but, of course, without suffering the quality. MSMEs need to be innovative especially in mechanizing strategies to be more competitive in the market," the council chairman added.