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THE country’s largest business network on Wednesday asked the government to allow the full operations of firms nationwide, as micro, small and medium enterprises (MSMES) in rural areas close their shops permanently due to quarantine restrictions.
Philippine Chamber of Commerce and Industry (PCCI) President Benedicto V. Yujuico said the only way toward economic recovery right now is to permit the 100-percent operational capacity of business activities. He reported numerous MSMES in the countryside are now on the brink of ceasing for good after suffering revenue cuts for the duration of the quarantine.
Among PCCI members, more than 50 percent have shut down, and employment is down by 25 percent to 30 percent for those surviving.
PCCI members in tourismreliant Palawan, for one, reported at least 800 hotels and operators have closed down already. On the other hand, the PCCI in Taytay— a town in Rizal where the main industry is garments—said over 8,000 firms have permanently ceased operations, leaving just 1,000 doing business in limited capacity.
“The almost five months of lockdowns have put more firms at greater risks of permanent closure,” Yujuico said in a statement.
“Obviously, we don’t need economists to tell us there could be a faster slide and steeper decline in GDP during the second quarter when economic activity was reduced to a minimum. Extending the lockdown further could already spell disaster for the country,” he added.
Yujuico said this is no longer a matter of public health and economy, as prolonging quarantine restrictions will only result in the deterioration of both.
“Business closures mean a drop in taxes and budgetary income, putting at risk the sustainability of public finance and the ability to fund public services, including health and education,” the PCCI chief argued. “Government needs to be more sensible and rational in its decision on the lockdowns.”
For one, he said restaurants cannot just operate on 50-percent dine-in capacity as allowed by the government right now for those based in general community quarantine areas.
In terms of expenses, Yujuico explained that operating half the capacity will not generate enough revenue to pay for rent, utilities and wages. Some firms are also providing for the shuttle vans of their workers, as most public transport has yet to be authorized to ply the roads.
As a proposal, he said the government should emulate what its counterparts in Europe, South Korea, Taiwan, Thailand and Vietnam did: reopen the economy while implementing social distancing, conducting widespread testing, hiring a network of contact tracers and only imposing lockdowns on specific communities.