WHEREAS, micro, small and medium enterprises play a significant role in the country's economic development, particularly in generating jobs;

WHEREAS, the government committed to support three million entrepreneurs by providing them with credit in order to contribute to the generation of 6-10 million jobs until 2010.

WHEREAS, to ensure the achievement of said objective, there is a need to designate and oversight official for the sector who will synchronize and orchestrate the policies, programs and activities of the different implementing agencies so that these support and/or complement one another to further spur the development of the sector;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby designate Secretary Cerge M. Remonde as the oversight official for MSME Development in his capacity as Director-General of the Presidential Management Staff (PMS).

Section 1. Functions. The oversight official shall perform the following functions:

1. Convey the President's perspective and specific instructions to implementing agencies and ensure that these are fully complied with;
   
   
2. Identify policy gaps and implementation bottlenecks and carry out necessary interventions to address these; and,
   
   
3. Provide the President with overall assessments of the MSME policy and program performance.
   

Section 2. Institutional Arrangements. To effectively carry out the above functions, the Oversight Official, or his duly designated representative, shall sit in the meetings of the Small and Medium Enterprise Development (SMED) Council, an inter-agency body created by RA 6977 as amended by RA 8289, and any other related bodies or committees whose work affects the MSME sector. The Oversight Official may also create coordinating bodies or committees whose work affects the MSME sector. The Oversight Official may also create coordinating bodies as he may deem necessary.

Section 3. Submission of reports. The implementing agencies shall provide the PMS regular quarterly reports and other special reports as may be necessary. For this purpose, the PMS, in consultation with concerned agencies, shall prescribe the format and content including performance indicators and measures of said reports.

Section 4. Separability clause. In the event that any provision of this Order is declared invalid, the other provisions that are unaffected thereby shall remain in full force and effect.

Section 5. Repeal. All orders, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.

Section 6. Effectivity. This Executive Order shall take effect immediately.

DONE, in the City of Manila, this 4th day of January in the year of Our Lord, Two Thousand and Seven.


By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary