Senator Francis Escudero called for urgent action to support micro, small, and medium enterprises as unemployment surged to 2.96 million in January 2026, noting that MSMEs employ about two‑thirds of the workforce.
Escudero is pushing two bills, one to simplify taxes and reduce compliance costs for MSMEs and another to require banks to dedicate a portion of loans to small enterprises.
Both have been pending in Senate committees since August 2025.
“Access to credit remains the lifeblood of our small businesses. Without financing, MSMEs cannot restock, modernize, or hire, and without lower compliance costs, they cannot stay afloat long enough to recover,” said Escudero.
The Philippine Statistics Authority reported unemployment at 5.8 percent with the steepest job losses in agriculture, wholesale and retail trade, and fishing, all sectors dominated by MSMEs.
Escudero warned that delays in passing reforms could lead to more business closures and job losses.IMT
