By Jenina P. Ibañez
Reporter
FINANCIAL support for micro, small and medium enterprises (MSMEs) should be a government priority, especially after the enhanced community quarantine (ECQ) is lifted or modified, several business groups said.
Joint Foreign Chambers of Commerce of the Philippines (JFC) Senior Adviser John Forbes in a mobile message on Wednesday said agriculture, manufacturing, and construction sectors should “fully reopen” to bring back jobs and avoid losing foreign markets.
“SMEs employ a large percentage of the workforce and could use financial assistance and perhaps tax breaks,” he said in a mobile message on Wednesday.
Almost one million MSMEs were recorded in 2018 — accounting for 99.52% of businesses, government statistics showed.
Almost half of these are in the wholesale and retail trade and repair of motor vehicles and motorcycles industries, and they generated 63% of the country’s total employment with more than 5.7 million jobs.
The government originally scheduled the lifting of the ECQ on April 12. Trade Secretary Ramon M. Lopez expressed support for a gradual lifting of the ECQ, adding that manufacturing and mall operations could possibly restart as long as social distancing measures are applied.
Business leaders recently proposed a modified community quarantine that removes checkpoints and resumes manufacturing operations.
The Foundation for Economic Freedom (FEF) in a statement on Thursday recommended an easing of the ECQ, with the continued implementation of hygiene measures such as mandatory social distancing and use of face masks, as well as temperature checks and disinfections.
They also recommended the removal of checkpoints to allow for free movement of goods, continued work from home arrangements, and stricter lockdowns in barangays deemed as hotspots.
“Allow factories and offices to reopen but continue a ban on congregations of more than ten. Stagger working hours when appropriate. Allow the operation of essential stores like hardware stores, supermarkets, groceries, and the like,” FEF said.
Chris Nelson, British Chamber of Commerce of the Philippines executive director, said in a mobile message on Wednesday that the chamber supports government prioritizing giving assistance to workers displaced by the ECQ.
He also said that SMEs need the government to keep increasing liquidity.
“Also credit lines based on agreed conditions need to be re-established. The Philippine banking sector has indicated it is helping and supporting these measures and that is highly appreciated,” Mr. Nelson said.
MSMEs will get a reprieve from paying commercial rent for 30 days during the ECQ, without incurring penalties, fees and other charges, after the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) on Wednesday approved the proposal from the Trade department.
Mr. Lopez told reporters in a mobile message that he also encouraged lessors to waive a month of rent for small businesses that had to halt operations during the ECQ.
“Supermarkets, groceries, agri-fisheries stores, public markets, c-stores, drugstores and all retailers of basic and essentials and medical products are encouraged to extend their operations to a maximum of 12 hours,” he added.
The Department of Trade and Industry (DTI) earlier allocated P1 billion for a loan program for MSMEs affected by the ECQ.
CONTAINING THE DISEASE
Philippine Chamber of Commerce and Industry (PCCI) Director George T. Barcelon in a phone interview on Thursday said that he supports funding for businesses that have been impacted or closed shop during the ECQ, as well as the postponement of tax payments.
Beyond helping restart business operations, Mr. Barcelon said businesses want funding and feeding programs for marginalized sectors to continue after the ECQ. They also want better data monitoring and isolation of COVID-19 cases to ensure that employees feel safe in leaving their homes.
“The business sector is in no rush to start,” he said. “The reason we want to start is para may hanapbuhay ’yung lower rank. We want them to have a decent livelihood. But once they are healthy and once we are able to ascertain the safety of going out.”
Mr. Barcelon said containing the outbreak and assuring health and safety in going outdoors would be the impetus for increased consumption.
“Without people going out, limitado ang consumption, and so limitado ang manufacturing,” he said, adding that the government should do everything in its power to mitigate the disease.
DECONGESTING THE PORTS
The movement of goods also needs to improve, BCCP’s Mr. Nelson said.
“The ports of Metro Manila need to be cleared and deliveries of both raw materials and finished goods supplies. This will trigger both the resumption of manufacturing and to some extent consumer demand,” he said.
The DTI in a statement on Thursday said it is working with several government agencies to decongest Manila ports to prioritize the entry of food, medicine, and personal protective equipment.
The proposed joint administrative order would require cargoes overstaying beyond 30 days from discharge to be withdrawn within five days once the order is in effect.
“Appropriate penalties shall be imposed by the PPA to ensure that consignees and importers withdraw the cargo within the window provided. All refrigerated containers must be pulled out within seven days, except chilled cargoes which are given five days from the issuance.”
Semiconductors and Electronics Industries in the Philippines, Inc. (SEIPI) President Danilo C. Lachica said in a mobile message on Thursday that the industry is looking forward to the details of the economic stimulus and social amelioration program from the government, and is working on recommendations to the IATF.
National Economic and Development Authority Undersecretary Rosemarie G. Edillion said in a mobile message on Wednesday that the IATF’s technical working group on anticipatory and forward planning will release their recommendations soon.
The group is in charge of making recommendations to recover consumer and business confidence, and build a “new normal” of economic activities.
Source: https://www.bworldonline.com/govt-urged-to-throw-lifeline-to-msmes/