The Philippine Chamber of Commerce and Industry (PCCI) urged government to start allowing the full operation of businesses saying the situation is no longer a choice between health and the economy because it is not just jobs and livelihood at stake.
“Business closures mean drop in taxes and budgetary income, putting at risk the sustainability of public finances and the ability to fund public services, including health and education,” said Benedicto Yujuico, PCCI president.
In a statement, Yujuico said prolonging the lockdown spells disaster to the country as it could harm its long-term economic future and social stability and eventuall spell disaster for the country,” said Benedicto Yujuico, PCCI president.
Benedicto said government has to be more sensible and rational in its decision on the lockdowns.
“You cannot open a business and limit it to only 30 to 50 because they will only lose money and would rather close; you cannot tell a restaurant to open 50 percent because 50 percent is not enough to pay the rent, utilities and employees; you cannot tell a manufacturing company to operate at below capacity and still require it to provide accommodation and/or shuttle services for its workers; and, you cannot open businesses, even at phases, without allowing public transportation,” Yujuico said.
He said there is a way to fully reopen the economy and prevent the spread of COVID-19, citing European countries, Vietnam, Thailand, Taiwan and South Korea which reopened their economies while relying on social distancing, wearing of masks, washing of hands, widespread testing, a network of contract tracing to identify and contain new outbreaks, and lockdown on specific communities with COVID-19 cases.
These countries are not only seeing economic recovery, but have likewise contained the spread of the virus, he said.
Yujuico said businesses have a good understanding of COVID-19 and are smart enough to decide whether they should and can operate at full capacity.
He said employers and employees also act with more responsibility in practicing social distancing, wearing of masks and observing basic hygiene.
While many of PCCI members are optimistic, Yujuico said they believe lockdowns should be eased and full economy activity will resume soonest to allow them to recover.
“The almost five months of lockdowns have put more firms at greater risks of permanent closure,” Yujuico said even the most optimistic projections could fail if the lockdowns will continue for even a month or two more.
In the first quarter of the year alone, the country’s GDP already contracted by 0.2 percent. While some economic activity continued under the enhanced community quarantine (ECQ), data emerging for the second quarter show industrial production falling to a record low of 43.6 percent in April, followed by 40.3 percent year-on-year in May. Exports and imports plunged at more than 50 percent.
Meanwhile, there has been an exodus of returning overseas Filipino workers.
“Obviously, we don’t need economists to tell us there could be faster slide and steeper decline in GDP during the second quarter when economic activity was reduced to a minimum.
PCCI local chambers from Mindanao and North and South Luzon. said more than 50 percent have closed down and of those remaining in operation, employment is down to 25 to 30 percent.
