Bigger budget for shared service facilities sought

THE regional office of the Department of Trade and Industry (DTI) is pushing for more funds allocation to the Shared Service Facilities (SSF) program for its 2017 budget.

DTI-11 Chief Trade and Industry Development Specialist Rachel Remitio told reporters on Wednesday that they continue to lobby that the proposed P700 million budget for SSF alone will be approved.

“We just hope that it will be approved, the lobbying is now being led by the DTI head office,” she said.

According to DTI website, the SSF project is the major component of the MSME Development (MSMed) Program. It was aimed at improving the competitiveness of MSMEs by providing them with machinery, equipment, tools, systems, skills and knowledge under a shared system. Its nationwide implementation is done with project partners or cooperators.

The SSF budget was included in the National Expenditure Program (NEP) for 2017 under DTI.

The P700-million allocation for SSF next year is the the same annual budget it was allotted to in 2013 and 2014.

But, the Department of Budget and Management (DBM) only appropriated P70 million or only 10 percent of the target funding for the program next year.

“The P70 million appropriated herein for the implementation of Shared Service Facilities shall be used for projects that aim to improve the quality and productivity of micro, small, and medium enterprises [MSMEs] and the establishment of business resource centers,” the 2017 NEP read.

“Its implementation shall be primarily based on priority industry clusters identified by the DTI in consultation with key stakeholders,” it added.

With this, Senator Loren Legarda chairman of the Senate committee on

finance during the hearing on the agency’s 2017 budget proposed amendments to the 2017 National Budget for Shared Service Facilities (SSF) project capital outlay to help MSMEs in the poorest regions.

Legarda said DTI “should assist small businessmen through product development, product quality, good management, labeling and marketing through their personnel assigned in the provinces.”

DTI was asked to calculate the required amount, based on the 20 poorest provinces in the Philippines needs.

“I want you to look deeper into the situation and find ways on how we can reach the bottom of the pyramid – those who are not capable of joining trade fairs and those who have skills and indigenous resources but are unable to register or acquire the usual permits – so we can open up more opportunities for them,” the lady senator said.

As of April 2016, nearly 1,900 SSF projects were established, a total of 154 SSFs of which are implemented in Davao Region.

Remitio said SSF projects here are based on the priority industries of the region which include coffee, banana, coconut, cacao, wearables and homestyles, processed food like pineapple processing, and coco coir.

“We are set to launch 10 more SSF projects this year, this is on top of the 154 launched SSFs,” Remitio said.

By the end of 2016, DTI is eyeing to launch more than 2,000 SSF projects nationwide utilizing funds from the previous years’ continuing funds.