THE Asean Business Advisory Council (ABAC) urged the government to slowly shift the fund for conditional cash transfer (CCT) gradually to micro, small and medium enterprises (MSMEs), ABAC Chairman Joey Concepcion said on Wednesday.
“We are asking the government that part of CCT could slowly shift some of that money to MSMEs not giving them the money but lending them the money, you can still charge them interest, but make it collateral free,” Concepcion said during the The Alliance Towards Prosperity For All press conference.
“Take the risk, your default rates may be high, but assuming the default rate were 30 percent, at least 70 percent will come back and with that it will generate jobs and a lot of opportunities the more entrepreneurs you help,” he added.
The objective of the CCT program is to immediately ease poor families’ deprivation while enabling them and motivating them to raise the education health, and nutrition status of their children with the P70 billion budget.
Earlier, Concepcion said that CCT does not teach people to work for their daily needs. Thus, the government should rechannel its funds to the Department of Trade and Industry’s and Department of Agriculture’s “mentorship programs,” which he said are “powerful tools” that can help people establish a sustainable business.
Meanwhile, Concepcion started an alliance with the country’s business chambers to formulate programs in creating prosperity for the MSMEs, after the Prosperity For All Summit on April 28.
He also added that the alliance “will consolidate all the ideas toward prosperity, once we have the concensus with the private sector then we will work with government and submit our ideas.”
The alliance is a long-term private sector-led campaign to build a multi-sectoral, multi-disciplinary alliance of organizations and individuals to pursue prosperity for all among Asean nations.
Members of the alliance will also be part of the technical working committee which will develop a national platform for MSME development.
Go Negosyo, founded by Concepcion, will be the leading organization for this alliance. Fourteen other chambers also joined the alliance.
However, Concepcion said: “Through this initiative, we are creating a stronger alliance to fight poverty by empowering micro and small entrepreneurs.”