1200-million stimulus package being prepared for MSMEs in Baguio

BAGUIO CITY — The city government is raising an initial 1200 million to revive local micro, small and medium enterprises (MSMEs) crippled by government quarantine measures to address spread of the deadly coronavirus disease 2019 (COVID-19) virus.

Mayor Benjamin Magalong said the city’s finance committee has already identified 1100 million that could be taken from the city’s coffers to form part of the economic stimulus package (ESP). He revealed he requested the earmarking of an additional 1100 million to speed up the MSMEs’ swift recovery.

Magalong said the guidelines would include a condition where a portion of the ESP will be given as grant, and the larger portion, in the form of loan.

This, he said, will ensure ESP will be effectively and efficiently used by the intended beneficiaries.

He said the city will be working closely with the Small Business Corporation (SBC) of the Department of Trade and Industry (DTI) to ensure funds raised will be utilized by a greater number of MSMEs in the city.

Data from the City Permits and Licensing Division show that there are over 22,700 businesses issued permits by the city last year, 20 percent of which are engaged in the wholesale and retail trade. Another 20 percent are classified as professional and financial services.

Dr. Gladys Navarro, an economics professor at Saint Louis University (SLU), said the ESP will surely be an economic driver as it will generate employment and revive the local economy.

Navarro was one of the resource persons invited by the local government to give their input on how the city should pick up from the damage wrought by COVID-19 upon the local economy.

She said financial assistance to individuals and families will not alleviate the quality of life, but the resurgence of local businesses that will drive the government’s “Build, Build, Build” program, which in turn, will generate employment and raise quality of life in the city.

Navarro likewise underscored agriculture as another economic driver in the Cordilleras, expressing gains may be had if the sector receives ample support. “Food, after all, is an essential need especially in these trying times,” she said.