RELIEF FOR MSMEs. Government officials visit business establishments in Iloilo last July 8. The Philippine Chamber of Commerce and Industry said on Tuesday (July 28, 2020) the pronounced financial relief for micro, small and medium enterprises affected by the Covid-19 pandemic is very much welcome. (Photo by Arnold Almacen/CMO)
ILOILO CITY – The provision of financial relief to micro, small and medium enterprises (MSMEs) amid this coronavirus disease (Covid-19) pandemic is a welcome development, according to an executive of a business group here on Tuesday.
Lawyer Joebert Peñaflorida, chairperson of the Philippine Chamber of Commerce and Industry (PCCI) Iloilo, told the Philippine News Agency (PNA) in a phone interview that any relief from interest and possible loan extension is appreciated.
“We in the business community certainly welcome the pronouncements made by the President because the issues of interest, loan repayment as well as rentals are critical issues in so far as being able to recover,” he said.
President Rodrigo Duterte during his address to the public on Monday called on banks to extend financial relief to MSMEs for them to cope with the pandemic.
Peñaflorida said the PCCI national conducted a consultation among its members nationwide and the result is also representative of what is happening at the local level.
“Only 50 percent have opened and 50 percent have remained closed nationwide among the membership of the PCCI, which is representative really of the business community at large. Out of that 50 percent that opened, only 30 percent have been rehired to work,” he said quoting the report of their national president.
He said that they would like to have the pronouncement on financial relief “concretized” because the issue on rent and salaries and wages of workers are among the concerns being raised by the business sector.
Another concern is the health and safety of their workers, he added.
“More than the economics, my personal concern in terms of reopening is the health and safety of workers in the work area. We really have to protect them,” he said.
To a limited extent, a portion of the Covid-19 Assistance to Restart Enterprises (CARES) program extended by the Small Business Corporation, a financing arm of the Department of Trade and Industry (DTI), to MSMEs was apportioned for the PCCI, he added.
PCCI has close to 100 members in Iloilo, a mix of big companies down to MSMEs.
Meanwhile, the result of an online survey conducted the second week of June and participated by more than 200 micro, small, medium, and large business owners in Iloilo revealed business perception of a reduction in sales, revenues, and subsequent profits in the next three months.
Among those cited as concerns are the declining consumer demand, cost of lease and rentals, wages, logistics, and supply of raw materials, among others.
The respondents also cited bank interest, compliance with workplace protocols, and safety regulations imposed by the government as constraints at moderate levels.
They thought among others that making available low-interest rates from banks and financial institutions, tax discounts and credits, and manpower reduction as measures to address the constraints.
The online survey was initiated by the Iloilo Economic Development Foundation Inc., which is the umbrella organization of almost all of the businesses in Iloilo, in cooperation with the Iloilo City Government, Iloilo City business sectors and Global Shapers Iloilo. (PNA)
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