Govt needs a solid plan for MSME recovery

FOR the second time in a little more than a week, a major international institution has released results of a survey indicating that Philippine micro, small and medium enterprises (MSMEs) have been severely affected by the coronavirus disease 2019 (Covid-19) pandemic and the associated community quarantine measures imposed by the government. The latest study, which was conducted by the United Nations Development Program (UNDP), along with the earlier analysis by the Asian Development Bank (ADB), is a clear wake-up call to the government that a robust strategy of support for the MSME sector is vital to the nation’s economic recovery.

The UNDP’s MSME Value Chain Rapid Response survey, which was published on Monday, revealed that in spite of easing lockdown restrictions, only about nine percent of the country’s MSMEs have been able to resume full operations. Nearly half, or 49 percent, remain closed completely, while another 38 percent report reduced operations.