The head of the Philippine Exporters Confederation Inc. (Philexport) is calling on the Marcos administration to maintain public spending levels and redirect funds toward export promotion and micro, small, and medium enterprise (MSME) development, despite recent corruption controversies surrounding flood control projects.
Business Leader Warns Against Spending Cuts
In a live studio interview with Bilyonaryo News Channels on Friday, November 7, 2025, Philexport president Sergio Ortiz-Luis Jr. argued that reducing government expenditure would be unwise, particularly since the funds allocated for flood control projects allegedly never reached their intended purposes.
"The government spending that was cut was probably the ones that were lost to floods anyway, so they don't really go to the economy," Ortiz-Luis stated during the interview.
The business executive revealed that the business community remains "shocked at the gravity of this corruption" but expressed relief that investigations into the alleged misuse of flood control funds are now underway.
Urgent Need for Export and MSME Investment
Ortiz-Luis emphasized that the reallocated budget should be directed toward export promotion and MSME development—two critical sectors capable of revitalizing the country's slowing economy.
"We are hoping that much of this budget that was lost may go to export as an investment—because we have not been investing in export—and to the SMEs," the Philexport president declared.
He strongly criticized the government's historical approach to these sectors, noting that "to both sectors the government has been playing 'lip service' for the last several years, and that is why it's understandable that we are being left behind by our neighbors."
The executive painted a stark picture of the current situation, stating that "our budget for export is practically nothing" compared to the substantial support provided to exporters in other ASEAN member-states.
Philippine Exporters Falling Behind Regional Competitors
Ortiz-Luis highlighted the concerning disparity between Philippine exporters and their regional counterparts, describing the situation as "pathetic."
He revealed that while countries like Malaysia and Thailand typically send over 200 companies to major international trade fairs, the Philippines can only manage to send a handful of representatives.
"We're sort of plodding along and we're still growing a little. Unfortunately growing a little means we're being left behind by our competitors in ASEAN," he lamented.
MSMEs Facing Unprecedented Challenges
The business leader also sounded the alarm on the deteriorating condition of MSMEs in the Philippines, citing concerning trends within his own organization.
"Just to illustrate, before, our membership in Philexport was usually growing. For the first time we are receiving resignations for the reason that they are closing shop, and many of these are the small ones that are affected by all these headwinds that we're all facing now," Ortiz-Luis disclosed.
He emphasized the urgent need for government intervention, stating that "we would like to really find new markets for them and we need assistance really from the government and we have not seen it yet."
While acknowledging the Department of Trade and Industry's commendable efforts, Ortiz-Luis pointed out that the agency operates with "a very limited budget" to carry out the substantial task of developing both exports and MSMEs.
Concrete Solutions for Economic Revival
When asked how the government could effectively support exporters and MSMEs, Ortiz-Luis proposed several concrete measures.
"We would like continuous opening of negotiations on free trade agreements with the EU (European Union) and some other countries," he stated.
He emphasized that gaining access to new markets has become increasingly crucial, particularly given the negative impact of higher US tariffs on Philippine exports.
"I don't expect anything to come out with the US at this point in time. So we would like the government to spend budget on the overseas postings of trade officials to help exporters develop these markets," the Philexport president concluded.
