Guide to the Magna Carta for Micro Small and Medium Enterprises

Sec. 9. Promotion of Productivity and Viability of MSMEs. The MSMEDCshall promote the productivity and viability of MSMEs by way of directingand/or assisting relevant government agencies and institutions at the national,regional and provincial levels towards the:a) Provision of business training courses, technical training fortechniciansand skilled laborers and continuing skills upgradingprograms;b) Provision of labor-management guidance, assistance and improvementof the working conditions of employees in MSMEs;c) Provision of guidance and assistance regarding product quality/productdevelopment and product diversification;d) Provision of guidance and assistance for the adoption of improvedproduction techniques and commercialization of appropriate technologiesfor the product development and for increased utilization of indigenousraw materials;e) Provision of assistance in marketing and distribution of products ofMSMEs through local supply-demand information, industry and provincialprofiles, overseas marketing promotion, domestic market linkaging andthe establishment of common service facilities such as common and/orcooperative bonded warehouse, grains storage, agro-processing anddrying facilities, ice plants, refrigerated storage, cooperative truckingfacilities, etc;f) Intensification of assistance and guidance to enable greater accessto credit through a simplified multi-agency financing program; to encouragedevelopment of other modes of financing such as leasing and venturecapital activities; to provide effective credit guarantee systems, andencourage the formation of credit guarantee associations, including settingup of credit records and information systems and to decentralize loanapproval mechanisms;g) Provision of concessional interest rates, lower financing fees, whichmay include incentives for prompt credit payments, arrangements tyingamortizations to business cash flows, effective substitution of governmentguarantee cover on loans for the borrower’s lack of collateral;h) Provision of bankruptcy preventive measures through the setting upof a mutual relief system for distressed enterprises, and the establishmentof measures such as insurance against extraordinary disasters;34