Manila: Sen. Joel Villanueva on Tuesday emphasized that fortifying micro, small, and medium enterprises (MSMEs) is crucial for generating sustained employment. He urged the government to redirect its spending priorities to bolster this sector, which he identified as a vital component of the economy's lifeblood.

According to Philippines News Agency, Villanueva advocated for the 2026 General Appropriations Act (GAA) to focus on enhancing the competitiveness and sustainability of MSMEs. He highlighted the importance of evaluating job growth realistically, emphasizing the need for improvement in employment figures on a month-to-month and year-to-year basis. Villanueva stated, "We must improve on our employment figures on a month-to-month and year-to-year basis for a realistic job growth figure and one strategy to raise employment is by strengthening the lifeblood of our economy, the MSMEs, through focused government support. Where MSMEs thrive, communities prosper."

The Philippine Statistics Authority's latest data indicated a reduction in the unemployment rate to 4.4 percent in November, equating to 2.25 million jobless Filipinos, a decrease from 5 percent or 2.59 million in October. Despite this slight improvement, Villanueva stressed the need for more targeted interventions to further decrease unemployment.

MSMEs play a significant role in the Philippine economy, comprising 99.63 percent of registered business establishments and providing 66.97 percent of total employment as of 2023. Villanueva asserted, "The budget must be used judiciously and effectively to empower MSMEs, create quality jobs and inspire inclusive growth."

He also renewed his appeal for the passage of Senate Bill No. 1155, known as the MSME Stimulus Act. This legislation aims to institutionalize government support for MSMEs, thereby driving job creation. The bill proposes allowing MSMEs access to interest-free loans from the Land Bank of the Philippines and the Development Bank of the Philippines to aid in expansion, regional job creation, and sustained operations.

Additionally, the bill includes provisions for wage subsidies to cover all or part of employee salaries and contains measures to assist MSMEs in maintaining operations during national emergencies, natural disasters, public health crises, and other unforeseen disruptions.