DTI chief says MECQ losses may reach ₧120 billion

The Philippine economy is estimated to lose around P120 billion during the three-week modified enhanced community quarantine (MECQ), the Department of Trade and Industry (DTI) said on Friday.

Trade Secretary Ramon Lopez told reporters that MECQ allowed 30 percent average improvement in jobs and firms operating compared during the more restrictive ECQ.

The forecast is lower than the estimated loss of P180 billion—or 1 percent of the country’s gross domestic products—during the two-week ECQ by the DTI chief.

Lopez said that, at the time, some 1.5 million workers were displaced but 500,000 of them are likely to have returned during MECQ.

The National Capital Region (NCR) and nearby provinces, including Cavite, Laguna, Bulacan and Rizal—or NCR plus—were placed under ECQ on March 29 to April 11 amid the recent surge in Covid-19 cases. Currently, the NCR plus is under MECQ until April 30.

Recently, the National economic and Development Authority (Neda) said that two-week ECQ in NCR plus dented the economy by P39.2 billion in income and wages. The MECQ period, meanwhile, may spell additional losses of P14.7 billion, Neda estimated.

Lopez explained earlier that MECQ guidelines strictly prohibit high-risk activities to avoid further spread of infection, banning nonessential travels and the likes. At the same time, it allows low-risk and essential industries to still operate.

For example, indoor dine-in restaurants are not permitted under MECQ. Outdoor dine-in, meanwhile, is allowed at 50 percent capacity with diagonal seating or acrylic dividers.

Theaters, cinemas, Internet cafes, amusement parks, casinos, libraries, museums and beauty salons, among others, are banned from operating under MECQ.

Relief to business sector

ON the other hand, the trade chief said that the agency is looking to secure a P10 billion worth of livelihood subsidy for both formal and informal microentrepreneurs under the Bayanihan 3.

house Committee on economic Recovery Cluster co-chairman Joey Salceda earlier this month said the lower chamber is eyeing to pass the P370-billion Bayanihan 3 on May 17.

The DTI is also offering microlending for the business sector in partnership with Small Business Corporation under the Covid-19 Assistance to Restart enterprises (CARES) program.

The lending facility has approved P3.38 billion worth of loans for 25,920 borrowers so far.

Of the approved loan amount, P2.78 billion was released already to 23,141 borrowers.

Vaccine

LOPEZ said that the DTI is still discussing the memoranda of understanding with potential vaccine manufacturers.

In addition, he said that the agency met with Anti-red Tape Authority (Arta) and Food and Drug Administration, among others, to tackle the green lane provision for the processing of the entry of the vaccine manufacturers. This is to assure that the approval process will not be hampered.

United Laboratories Inc. confirmed its commitment to produce Covid-19 doses last April 7. It is eyeing to operate its form, fill and finish plant by 2023.

Glovax Biotech earlier announced its partnership with Korean vaccine manufacturer eubiologics to produce eucorvac-19 in the country. It has an annual capacity of 100 million doses and can allocate 40 million to the Philippines.

In addition, DTI is also in talks with IP Biotech and IG Biotech; and Dr. zen Biotech inc.