DILG INPUTS TO BURNING SME ISSUES &

SOLUTIONS INTERACTION Roundtable

DISCUSSION-WORKSHOP ON PRIMING
PHILIPPINES SMEs FOR ASEAN
INTEGRATION 2015 ENTERPRISES

DIR. ANNA LIZA F. BONAGUA

Bureau of Local Government Development

DILG efforts in cascading RA 8289 AN ACT TO STRENGTHEN THE

PROMOTION AND DEVELOPMENT OF, AND ASSISTANCE TO SMALL AND
MEDIUM SCALE ENTERPRISES, AMENDING FOR THAT PURPOSE REPUBLIC
ACT NO. 6977, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR SMALL
ENTERPRISES"

Recognizing the roles played by LGUs in creating favourable conditions

for investments and businesses as champions for the cause of the
MSME, DILG together with DTI worked together to create the Guide for
LGUs in Formulating a Local Investments and Incentives Code (LIIC).

The LIIC articulates the local governments investment policies

and programs, Investments Priority Areas (IPAs), and local incentives
(fiscal and non-fiscal) available to domestic and foreign investors, and
the mechanics for availing them.

 The LIIC seeks to:

Unfold the development of micro-small medium enterprises
(MSMEs), utilize local resources and develop markets for
local products, ignite the ingenuity of the entrepreneurs and
other stakeholders, encourage Bio-diversity-FriendlyBusinesses and Market-LED Friendly Opportunities.

In collaboration with DTI, DILG capacitates LGUs in the

formulation of LIIC. DTI and DILG Trainors at the Regional
Offices have been trained to provide technical assistance to
LGUs in the formulation of LIIC.

DILG efforts in cascading RA 9178 entitled An Act

to Promote the Establishment of Barangay Micro
Business Enterprises (BMBEs)
DILG issued the following Memorandum Circulars to cascade the BMBE
law and policies to LGUs:
B.1 Memorandum Circular No. 2003-69 dated April 8, 2003 entitled
Implementation of Republic Act No. 9178. The said MC enjoined Local
Chief Executives to ensure the full implementation of BMBE by
establishing a One-Stop Business Registration Center in their areas to
handle the efficient registration and processing of permits and licenses
of BMBEs. A Standard Registration Form and a Certificate of Authority
have been provided by DTI to be utilized for such purpose.

 B.2 Memorandum Circular No. 2003-172 dated August 23,

2003 Clarification on the Implementation of Section 7 of the
Rules and Regulations Implementing RA 9178. The MC
clarified that an enabling ordinance is not pre-requisite for
the registration for accreditation.
The Rules and Regulations Implementing RA 9178 has
already detailed the procedure and requirements for
registration of BMBE. Consistent with the settled principle
that a national law prevails upon a local legislation, local
ordinances inconsistent with RA 9178 are deemed amended
or modified accordingly.

 B.3 Memorandum Circular 2012-82 dated April 20, 2012

Reiteration of DILG Memorandum Circulars on the
Implementation of RA 9178. Also, DILG Regional Offices
are directed to submit Semestral Report on the status of
implementation of the said law. The report includes number
of LGUs with registered BMBEs, number of BMBEs
registered and other basic information.
Nationwide, a total of 22,574 microbusinesses are
registered as BMBEs. In Mindanao, there are a total of
1,523 registered BMBEs.

Public-Private Partnership efforts in

building MSME
The DILG, in partnership with the Government of
Canada, through the Local Governance Support
Program for Local Economic Development (LGSPLED), supports LGU Alliances building MSMEs.

Other efforts of DILG on building capacities

of the LGUs to be Business Friendly and
Competitive
The DILG, in answer to the public clamor to address the
capabilities of LGUs to improve local economy in order to
generate jobs and livelihood and ultimately reduce poverty,
developed the Outcome Business Friendly and
Competitive LGUs. It focuses on 1) enabling LGU access
to development financing program, 2) enhancing economic
growth, and 3) competitiveness of program.

 The program components and outcome areas of the BFCL

program was developed, updated and strengthened to
ensure the Business Friendliness and Competitiveness of
LGUs. These programs are: 1) Organizing a Local
Economic Investment Promotion Office/ Team; 2) Local
Economic Development for LGUs; 3) Facilitating the
Formulation of Appropriate Investment and Revenue
Generation Policies at the Local Level; 4) Promoting
Public and Private Sector Partnership; 5) Streamlining
Transactional based Services; 6) Conducting LGU
Competitiveness Audit; and, 7) Improving Access to
Financing for Basic Infrastructure.

MARAMING
SALAMAT PO!