RECOVERY, resilience, and resurgence (3Rs) will drive the country’s efficient transition from the new coronavirus disease 2019 (COVID-19) crisis to the new normal of exporters.
This is the theme of the New Normal Roadmap, a range of legislative and executive actions launched on May 11 by the Philippine Exporters Confederation Inc. (Philexport) to help businesses, especially exporters and micro, small and medium enterprises (MSMEs) get back on their feet, restart and sustain their operations and create jobs.
The roadmap, crafted with inputs from the organization’s local chapters nationwide and affiliated industry associations, was sent to the Inter-agency Task Force on Emerging and Infectious Diseases through Trade Secretary and Export Development Council Chairman Ramon M. Lopez.
The roadmap recommends immediate as well as medium- and long-term legislative and executive measures anchored on the 3Rs.
The roadmap is hoped to complement the Philippine Export Development Plan 2018-2022 which strategies remain valid but may not be the priority at this point.
The roadmap outlines three objectives: epidemic control, resumption and expansion of business activities and transition to digital operations as a business continuity and efficiency measure.
Sergio Ortiz-Luis Jr., Philexport president, said the recovery phase for each objective requires “the immediate implementation of programs and policies that can help enterprises to re-open gradually from this crisis until reaching their full capacity.”
Measures under resilience call for “the continuing implementation of programs and policies that will help enterprises withstand disasters and shocks (including a possible second wave of this crisis) and keep the enterprise operational even at 25 percent capacity until they reach full capacity.”
The roadmap said resurgence can be achieved in the medium to long term by continuing implementation of programs and policies that will help enterprises achieve at least 5 percent enterprise and industry growth targets consistently for as long as possible.
To assist businesses, particularly the floundering MSME and export sectors, the roadmap proposes the immediate rollout of measures: the Philippine Economic Stimulus Act (with amendments from the private sector) to help fund assistance programs; epidemic control through COVID-19 testing, isolation of confirmed cases and setting up of barangay quarantine centers; interest-free, MSME-friendly multi-purpose loans with minimum requirements; fuel subsidy for public utility vehicles hurt by decreased carrying capacity;
resumption of sea and air travel for cargoes, business and trade with bailout or financial assistance to affected transport sectors;
wage subsidies for the months covering the ECQ and one month after lifting the ECQ in concerned areas; moratorium on utility and rental payments, with staggered payment of accumulated bills; subsidy for export promotion and domestic marketing for at least one year; and; harmonization and transparency in LGU policies to facilitate smooth flow of goods and people processing these goods.
Other proposed measures with economic, export and MSME impacts from the recovery up to resurgence phases include the passage of key bills.
These include the Corporate Income Tax and Incentives Reform Act (CITIRA) with reduced corporate income tax immediately to 20 percent and removal of the export threshold to enable more exporters to avail of incentives;
Open Access in Data Transmission Act to help address broadband and connectivity issues; Magna Carta for MSMEs as amended to empower SB Corp. to lend more to MSMEs and facilitate other sources of funds; Customs Amnesty Act as possible revenue source from where COVID-19 assistance programs may come from among others.
