917Ventures Creates MSME Ecosystem to Address Digitalization Woes

MANILA, PHILIPPINES, 25 October 2023– The Philippine government has made the digitalization of micro, small, and medium enterprises (MSMEs) a top priority to spur the growth of the Philippine economy. In the 2023-2028 Philippine Development Growth Plan, the National Economic Development Authority (NEDA) highlighted the need to provide targeted support to MSMEs in fast-tracking technology adoption, digitalization, and automation, to lead to higher productivity and greater innovation.

“One of the most important things we learned in the past few years–and especially for MSMEs– is the importance of digitalization. It not only helps businesses keep up with the times but also ensures that they’re growing at pace with the digital economy,” said Natasha Bautista, 917Ventures’ Head of Growth and Programs. “There is still a lot of room for growth when it comes to increasing digitalization in the Philippines. In contrast to countries in the region, the Philippines' digital economy currently accounts for just 9.4% of our gross domestic product, whereas Vietnam stands at 14.26%, and Malaysia at 14%.”

917Ventures, the largest venture builder in the Philippines, supports MSMEs by providing them with the tools they need at every stage of their journey so they can become digital-first businesses and ensure that they achieve long-term success and sustainability.

“Whether it's providing them with initial capital, helping them get started online, or guiding their expansion to reach a wider audience, our comprehensive suite of solutions provides them with end-to-end support to take them where they want to go,” she added. “We have, to date, been able to support more than 10,000 MSMEs across our ventures and portfolio companies and we hope to expand our solutions to the 1 million MSMEs in the Philippines and help them with digitally transforming their businesses.”

Unlocking capital with FundSpace

For entrepreneurs who want to get started or level up but don’t have the funds to do so, there is FundSpace, a loan platform that offers a suite of financing options that cater to every business's needs. On FundSpace, businesses of all sizes can take a loan for amounts as little as  Php 50,000 to Php 100 million–one of the largest loan amounts available for local MSMEs.

“Securing capital is often one of the biggest hurdles to starting a business, which is why we created FundSpace–an easy and convenient platform where businesses can get the funds they need at low and flexible interest rates. Through FundSpace, they get cash quickly with its processing time that’s 12 times faster and disbursement that is eight times quicker than usual methods,” Bautista explained.

Upskilling to streamline operations with KodeGo and MemoApp

As businesses expand, the imperative to enhance skills and streamline operations becomes more evident than ever. Enter KodeGo, more than just a coding boot camp, it equips businesses with the knowledge and skills needed to thrive in a digital world. Beyond traditional coding, KodeGo offers a wide array of digital courses that are indispensable for businesses looking to scale and optimize their processes. These courses cover a spectrum of essential skills, including full-stack web development, virtual assistance, bookkeeping, and artificial intelligence.

When it comes to streamlining processes, MemoApp takes the lead as it digitizes previously manual and paper-based processes to make them more intuitive, accessible, and efficient. With its swift workflow approval system, integrated e-signature feature, and easy access to fundamental document templates, MemoApp simplifies how businesses manage their operations.

Getting started online through RUSH

For businesses that want to embrace digitalization, the first step is to get your business online. RUSH is an all-in-one eCommerce platform that takes care of the entire purchase process – from discovery to delivery – empowering merchants to easily launch, manage, and scale their online stores.

RUSH enables merchants to create their e-commerce platform, their mobile app, and access to the GCash GLife Marketplace. It also offers an end-to-end loyalty management platform so businesses can continue to delight their customers by creating relevant and rewarding experiences.

Accessing a wider audience through m360 and Inquiro

Once businesses have successfully established their online presence, the next step is to strategically connect with their target audience and guide them toward the point of purchase. To accomplish this, companies can harness the power of m360's innovative multi-platform messaging solutions. These comprehensive tools empower businesses to effectively inform and engage their customers through a seamless blend of SMS and social media channels.

m360's multi-platform messaging solutions are key to delivering vital information, timely updates, and enticing promotions to customers. With the ability to reach customers where they are most active, businesses can foster stronger connections and drive higher conversion rates.

Furthermore, understanding customer behavior and preferences is paramount for the success of any marketing campaign. Inquiro’s data-driven solutions offer a suite of services designed to provide deep insights into the current customer base and the target audience. More than just analytics, Inquiro's solutions empower businesses to not only comprehend their existing customer demographics but also unearth untapped opportunities by identifying potential audiences beyond their current reach. Inquiro also offers Credibility Scoring that helps businesses assess the risk profile of customers by automating credit-related decision-making.

“Digitalization is not a destination; it's a journey. It's not just about going online; it's about embracing processes that enable businesses to not only exist in the digital realm but thrive, compete, and innovate within it. That’s what we provide with 917Ventures–an MSME ecosystem that will handhold you through every step of every business’ digital journey,” Bautista added.

DTI Chief Signs IRR of the Philippine Creative Industries Development Act, strengthens PH Creative Industries

MAKATI CITY - The Department of Trade and Industry (DTI), as spearheaded by Trade Secretary Fred Pascual signs the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 11904, otherwise known as the Philippine Creative Industries Development Act (PCIDA).

The PCIDA, which lapsed into law on 28 July 2022, mandates the development of a vibrant Philippine creative industries by protecting and strengthening the rights and capacities of creative firms, artists, artisans, creators, creative workers, indigenous cultural communities, creative content providers, and other stakeholders.

The law provides adequate support measures to the Philippine creative industries which currently face various binding constraints to growth, such as high output costs, fragmented education systems, piracy issues, lack of data and statistics, underdeveloped branding and infrastructure, and wide skill gaps and mismatch, among others.

To steer and oversee the implementation of the law, it creates the Philippine Creative Industries Development Council (PCIDC), which will be chaired by the DTI Secretary, and composed of the Secretaries of the Department of Education (DepEd), Department of Science and Technology (DOST), National Economic and Development Authority (NEDA), Department of Tourism (DOT), and the Department of the Interior and Local Government (DILG); the Chairperson of the Commission of Higher Education (CHED), Chairman of the National Commission for Culture and the Arts (NCCA), and the Director General of the Intellectual Property Office of the Philippines (IPOPHL), and private sector representatives from various creative domains.

Aside from the PCIDC, the law also mandates the development of the Philippine Creative Industries Development Plan (PCIDP), which shall embody several support mechanisms geared to address the specific concerns in the creative ecosystem covering infrastructure, research and development, innovation, digitalization, financing, investment, and education, among others.

The law also seeks to develop and promote Philippine Creative Cities to produce more UNESCO-designated creative cities in the country by placing creativity and culture at the heart of local development plans and promoting the establishment of creative hubs and clusters.

The promulgation of the PCIDA-IRR is set to advance the country’s efforts in effectively executing the PCIDA towards enabling the creative industries to be a key driver of the country’s post-pandemic economic recovery.

DTI Secretary Fred Pascual sees the signing of the IRR as an important step towards harnessing the enormous potential of the Philippine creative industries. “The collaborative efforts of different stakeholders in the creative ecosystem are all vital in building a vibrant and globally competitive Philippine creative economy. Hence, we have made sure that the PCIDA-IRR would be a product of synergistic discussions with other government agencies and the creative industry players”, he said.

Secretary Pascual also emphasized that “the signing of this IRR is an important enabling measure to effectively execute the PCIDA towards transforming the creative industries to drive our economic recovery and fuel an inclusive and sustainable growth.”

Further, highlighted that the PCIDA is set to bolster a collaborative environment for local creatives and the government; “the IRR will promote a better work environment and livelihood for creative workers, improve education and access to financial support, develop industry data and statistics for policymakers, and harness other innovation efforts to help workers and firms in the Creative Economy”, Pascual added.

He also acknowledged the enormous potential of the Philippine creative industries, noting the role of different stakeholders in building a vibrant and scaled-up Philippine creative economy at the forefront of the Asia-Pacific Region, driving the country’s development, and further enriching our local culture. In fact, the creative industries contribute almost 8% to the economy, employing 5 million workers and generating exports accounting for 12% of the country's total exports.

Meanwhile, Competitiveness and Innovation Undersecretary Rafaelita Aldaba added that "With new technologies & digital transformation, creative industries present new opportunities & innovation prospects for creative and cultural workers. Leveraging on cultural richness, skilled content artists and creators, and new technologies, the creative industries can act as the prime catalyst for creative disruption and innovation in the country".

The creative industries are included in the priority industries of the DTI under its science, technology, and innovation-driven industrialization strategy, which aims to grow globally competitive and innovative industries and create more and better jobs in the country.

The signed version of the IRR may be accessed here: https://drive.google.com/file/d/1bsoPGKvKDwV14sQeAmSaXg9nqPlbqvmy/view

RICE TARIFFICATION LAW LED TO RECORD-LOW RICE PRICES IN SEVEN YEARS - DTI CHIEF

Manila - During the press conference updating the public on the Rice Tariffication Law (RTL), Trade Secretary Ramon Lopez lauded the “game-changing” measure for bringing down retail prices of regular milled rice and well-milled rice to a seven-year low since the start of its implementation last March 5, 2019.

“From the DTI perspective, we are always after the impact on the consumers. We’ve been watching closely and helping temper prices of rice. We are glad to report that with the Rice Tariffication Law, we really see a huge difference from the record-high average price of regular milled rice at Php41/kg and well-milled rice at Php49/kg in September 2018,” said Sec. Lopez.

Based on data by the Philippine Statistics Authority (PSA), the average price of regular milled rice was recorded at Php36.32/kg while the average price of well-milled rice was at Php41.23/kg during the first three weeks of February. The retail price of regular milled rice was at the lowest since December 2013 when it stood at Php36.18/kg, while the retail price of well-milled rice was at the lowest since May 2016 when it hit Php41.19/kg.

Sec. Lopez even shared that during their price monitoring rounds in groceries and wet markets, he and his team saw well-milled rice prices ranging from Php36 to Php38 per kilo with some selling at Php34/kg when purchasing 10 kilos

The trade secretary expressed optimism that the Law would see the “best to come” in the coming years given the biggest Php10billion fund that will support farmers in improving their productivity and lowering their production cost; thus, increasing their income.

Among the provisions of the Rice Tariffication Law is the Php10-billion Rice Competitive Enhancement Fund (RCEF), which provides programs to improve agricultural productivity, competitiveness, and profitability.

Agriculture Secretary William Dar explained that the funds will be used to help mechanize operations, distribute certified seeds, provide trainings, and assist in financing.

According to the Department of Finance (DOF), during the first seven months of implementation until December 2018, the revenues from the imposed tariffs reached Php12.3 billion. Agriculture Secretary Dar reported that the additional Php2.3 billion will be used for crop diversification and insurance that will help farmers increase profits.

“Aside from the direct benefit to consumers and farmers, RTL was instrumental at curbing inflation from the record-high 6.7 percent in October 2018, which was outside the government’s target rate of 2.0-4.0 percent, to 0.8 percent in October 2019, the slowest pace in over three years,” explained Sec. Lopez.

Meanwhile, National Economic Development Authority (NEDA) Assistant Secretary Mercedita Sombilla highlighted the impact of rice prices in the overall inflation, reporting that in October 2018, rice inflation was at 10.7 percent while rice inflation in October 2019 was posted at -9.7 percent. In January 2020, headline inflation was recorded at 2.9 percent, well within the government’s target, while rice inflation was posted at -6.5 percent.

“We can see that the benefits of the Rice Tariffication Law are not just felt by consumers, but also by farmers, producers, and the overall economy. Tunay ngang sa Rice Tariffication Law, ang bayan ang panalo,” said Sec. Lopez.

DTI Chief and SB Corp Chairman Convenes SB Corp Board of Directors

Department of Trade and Industry (DTI) Secretary and Small Business Corporation (SB Corp) Chairman Ramon Lopez on September 13, 2019 convened the Corporation’s Directors and Officers to discuss SB Corp’s loan programs for micro, small and medium enterprises (MSMEs), especially the administration’s landmark program Pondo sa Pagbabago at Pag-asenso (P3). The P3 program has extended financing assistance to over 96,000 micro entrepreneurs as the government's flagship program that aims to topple loan sharks has widened its reach throughout the country since its inception in 2017. As of September 16, 2019, the SB Corp has released a total of P3.3 billion worth of loans to micro entrepreneurs through its 378 credit delivery partners that has reached rural and far-flung areas in the country. Under the P3 Program, a micro enterprise can borrow between P5,000 up to P200,000 depending on its business need and repayment capacity with no collateral requirement.  Interest rate and service fees, all in, do not exceed 2.5% monthly. The P3 Program serves as an alternative to the P30 billion “5-6” money lending industry that charges 20% nominal interest rate to MSMEs. Led by SB Corp Chairman and Trade Secretary Lopez (center, seated), in photo are (seated from L-R) SB Corp Director Merly Cruz, SB Corp President and CEO Ma. Luna Cacanando, DTI Undersecretary for Regional Operations Blesila Lantayona, and Department of Finance Representative Reina Cuarez. (Second row) Directors Joe Jay Doctora, Santiago Lim, Benel Lagua, Ferdinand Tolentino, and Manuel Bendigo.

DTI Chief: PH Gov’t to Pursue Reforms to Seize Opportunities from US-China Trade War

MALACAÑAN – According to Trade Secretary Ramon Lopez, the government needs to pursue more reforms to take advantage of opportunities resulting from the ongoing US-China trade war.

Sec. Lopez said that the Cabinet decided to adopt the recommendations of the Department of Trade and Industry (DTI) and the National Economic Development Authority (NEDA) during a joint presentation at the 41st Cabinet meeting last 4 September. The proposed solutions require a whole-of-government approach and involve several government agencies aside from DTI and NEDA.

PH is the second-best Asian export performer, with a merchandise export growth of 1.2% in the 2nd quarter of 2019. Among 11 Asian countries measured, PH, Vietnam, and Malaysia were the only countries with positive growth. Meanwhile, China, Chinese Taipei, Japan, Thailand, Singapore, Hong Kong, South Korea, and Indonesia reported contractions in merchandise exports.

“The Philippines is not as vulnerable as other countries, as exports only account for 15% of our GDP. But a prolonged trade war will eventually affect our export growth,” said Sec. Lopez.

Sec. Lopez added that the trade war is “an opportunity for the Philippines to attract more export-oriented manufacturing foreign direct investments. However, it is necessary to address key constraints in attracting investors to the country.”

Board of Investments-approved projects from the US and China are growing, albeit at different rates. US investments grew by 7.3% from PHP583 million in 2017 to PHP625 million in 2018. Meanwhile, Chinese investments grew by 8,364% from PHP576 million in 2017 to PHP48.74 billion in 2018.

To achieve this goal, DTI and NEDA proposed recommendations, ranging from short-term to long-term strategies, said the Secretary.

DTI is already implementing some of the short-term strategies, like eliminating investor uncertainty by supporting the passage of the Corporate Income Tax and Incentives Rationalization (CITIRA) Act, and to further liberalize the market through amending the Foreign Investment Act, Public Service Act, and Retail Trade Liberalization Act.

To improve ease of doing business, Sec. Lopez said the gov't is seeking to expedite web-based solutions by establishing a Central Business Portal and fully-operationalizing TradeNet, the government’s online platform for trading permits.

In tandem with these are recommendations to ensure national security and peace and order considering the rising investments from China and to assist local workers who will be displaced due to the trade war.

Lastly, Sec. Lopez said DTI will continue its “Last Touch” trade strategy, which aims to integrate PH in regional value chain production networks to enhance local value-added and attain the best access to major markets. The agency does this by deepening regional partnership through the Regional Comprehensive Economic Partnership (RCEP), while pursuing trade agreements with countries outside the Asia-Pacific region.

The Secretary likewise related long-term strategies like the collaboration of different government agencies to improve the country’s business climate. By developing state-of-the-art ports, airports and guaranteeing affordable and reliable energy throughout the country, investors will be encouraged to locate in emerging hubs outside of Metro Manila.

To improve the Philippine human capital, DTI and NEDA suggested to equip students and workers with the skills needed the Fourth Industrial Revolution (Industry 4.0). There should also be a government-led effort to promote innovation by building regional inclusive innovation centers (RIICs) in major cities and provinces. These RIICs will serve as a hub for startups and partnership projects among the industry, government, and academe.

DTI will also lead in linking domestic Micro, Small, and Medium Enterprises (MSMEs) with global businesses. The agency will also partner with other concerned agencies to strengthen national quality infrastructure for standards setting, testing and accreditation, and metrology to create more competitive products and industries.

Sec. Lopez said that these initiatives will not only shield the Philippines from the worst effects of the US-China trade war but will also improve the country’s attractiveness to foreign investors in other countries in general.

He added that attracting foreign investments is part of President Rodrigo Duterte’s promise of a more comfortable life for all Filipinos by providing decent job and livelihood opportunities.