MOST PHL CEOS ‘DISSATISFIED’ WITH VAXX ROLLOUT

MAJORITY of the Philippines’s top business executives are not happy with the Covid-19 vaccination rollout in the country, stressing that slow inoculation hampers the economic recovery.

The joint study by the PWC (Pricewaterhousecoopers) Philippines and Management Association of the Philippines (MAP) revealed that 66 percent of the respondents are “dissatisfied” with how the country is implementing the vaccination program.

On the other hand, 11 percent said they are “satisfied” while 1 percent are “very satisfied.” Some 22 percent are neutral.

Citing data as of September 3, the PWC-MAP report showed that the Philippines is still lagging behind its neighbors in terms of the number of fully vaccinated population with 12.9 percent. Countries like Hong Kong, Japan, Malaysia and Singapore are ahead with above 45-percent vaccination rate.

Amid the concerns with the vaccination rollout, 76 percent of the local business honchos said the slow pace of inoculation will delay the country’s economic recovery. The business groups, to recall, have been pushing for accelerated rollout of the Covid-19 vaccines to allow further mobility and economic activities.

“Despite having several stimulus programs and fiscal incentives, one thing became clear—a faster and equitable vaccination rollout worldwide is critical for the global economy to recover and to prevent the further mutations of the Covid-19 virus,” the study stressed.

More than 40 percent of the respondents also cited “reliance on lockdowns to manage Covid-19” as primary threat to the economy.

Majority or 70 percent of the surveyed CEOS said they suffered at least 10-percent decline on average daily sales and profits every time a hard lockdown is imposed.

Metro Manila was placed under the strictest form of community quarantine protocol for three times already amid surging Covid-19 cases. It is currently subject to modified enhanced community quarantine.

“According to most CEOS surveyed, their revenues, profits, productivity, employee and customer count, and utilization decline each time the government imposes a lockdown,” the report explained.

“For a consumption-driven economy, the closure of establishments such as malls, restaurants and other businesses have an immediate direct negative impact on the economy,” it added.

Other factors cited by the respondents that may slow down economic recovery include political uncertainty, threats of new variant, lack of fiscal support for the struggling industries, lower investment, lower quality of education, delayed government fund release and increasing government debt.

Optimism

STILL, CEOS are optimistic. Majority (74 percent) expressed confidence on revenue growth for their companies in the next 12 months. More CEOS (91 percent) are also anticipating better topline figures in the next three years.

“To adjust to the current environment, most businesses had to adopt a remote working environment, change their products and/ or services, and invest in digital solutions,” the report said. “Having adjusted to the current reality, majority of the CEOS feel confident about their growth prospects in the next 12 months, and an even greater number of CEOS believe that their company will experience growth in the next three years.”

More than half of the respondents are also expecting an above-4 percent economic growth for the country next year.

They cited infrastructure development (61 percent), domestic consumption (54 percent) and government spending (52 percent) as the top growth drivers for the economy.

These, in addition to the business-process outsourcing and services sector (46 percent); overseas Filipino workers’ remittances (35 percent); foreign direct investments (25 percent); and manufacturing and industry (24 percent).

Meanwhile, the CEOS urged the government to invest primarily more on the health-care system, infrastructure and education in the next two years to strengthen the country’s bid to recovery.

Supply chain

AMONG the long-term strategies of the companies moving forward will focus on supply chain resilience. This, as 38 percent cited supply constraints as an impact of the pandemic-induced disruptions on business activities.

“As a result of business disruptions, some companies had to cancel their orders and supply arrangements,” the report noted. “The logistical concerns due to lockdowns and travel restrictions also affected the availability of raw materials and prices.”

Still, some of the respondents said they maintained regular orders and accepted the higher price tag.

With this, the study noted the need to assess the supply chain’s stability during the post-pandemic recovery, in addition to monitoring the “changes in the revenue and profitability mix in key markets.”

The survey was conducted between July and August with 178 respondents coming from different sectors. These include financial services, professional and business services, manufacturing, technology, transport and logistics, and agriculture, forestry and fisheries.