Micro, small, and medium-sized enterprises (MSMEs) in the Philippines continue to face financing challenges despite the sector’s contribution to the country’s gross domestic product (GDP), the Asian Development Bank (ADB) said.
“MSMEs matter because they are where economic growth happens, and the economic growth becomes tangible,” ADB Director of the Private Sector Financial Institutions Division (PSFI) Suhail Y. Khan said during his speech at BusinessWorld Insights on Wednesday.
“They are therefore indispensable to the country’s growth and the livelihoods of millions of families. Yet, financing reaching the sector remains disproportionately small,” he added, underscoring the sector’s more than one-third share of the country’s GDP.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that bank lending to MSMEs as of end-June reached P572.74 billion or 4.48% of the local banking sector’s P12.8-trillion loan portfolio.
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