PCCI pushes passage of stimulus measure

by Louella Desiderio (The Philippine Star), 6 May 2020

MANILA, Philippines — The country’s largest business group is calling for the immediate passage of the proposed economic stimulus measure to help the economy recover from the impact of the coronavirus disease 2019 or COVID-19 outbreak.

The Philippine Chamber of Commerce and Industry (PCCI) is also pushing for greater support for the agriculture and fishery sector, as well as micro, small and medium enterprises (MSMEs), public transportation and innovation.

In a statement, PCCI said it is strongly supporting the proposed Philippine Economic Stimulus Act (PESA) which seeks to implement a fiscal stimulus package to address COVID-19’s impact on the economy.

“Two weeks ago, PCCI came up with a roadmap identifying priority sectors on the road to recovery – construction, agri-fishery and its supply chain, MSMEs and land transportation. The PESA, as it currently stands, strongly supports and concretizes our roadmap and it is for this reason that we support the enactment of the bill subject to further enhancements,” PCCI president Benedicto Yujuico said.

While PCCI welcomes the initiative of the House of Representatives, specifically Reps. Joey Salceda, Stella Quimbo and Sharon Garin on the proposed economic stimulus bill, the group is hopeful that coordination is underway with the Senate for a counterpart measure to fast-track approval of the bill.

The proposed PESA includes a wage subsidy program for employees of firms affected by enhanced community quarantine during the crisis, loans for MSMEs as well as expansion of the Build Build Build program through additional infrastructure projects.

Citing the importance of farming and fishing to the economy, PCCI also pushed for support for the sector in the form of loans, guarantees and grants to be used for inputs such as seeds, fertilizers, crop protectants, feeds, irrigation and machinery, research and development and access to markets.

“We propose that aside from the allocation of P6 billion loan allocation, agri-fishery producers and related enterprises should be given grants commensurate to our need to achieve food sufficiency and security, and countryside development. The sector has been neglected in the past and it is only now, under crisis, that the sector has been put in the spotlight for its importance in feeding our people and reviving our economy,” Yujuico said.

PCCI said the loans and grants should also be provided to those involved in food processing, canning, packaging, marketing and logistics where supply chain gaps can be addressed and forward and backward linkages in the agri-manufacturing-services can be strengthened.

While the PCCI sees the interest-free loan from government-owned Land Bank of the Philippines and the Development Bank of the Philippines to the MSMEs as a positive development, the group said the government should provide more flexibility to make it easier for MSMEs to benefit from the program.

As taxis, transport network vehicle services and public utility vehicles stopped operations during the enhanced community quarantine, Yujuico said there must be a way to subsidize them to ensure they will continue to operate and service those who will go back to work once they are allowed to operate.

“Once we graduate to the general community quarantine (GCQ), they can operate but below capacity because of physical distancing and limited workforce,” he said.

As the use of digital technology increased during the lockdown, PCCI said the government should also promote the creation of an ecosystem that supports start-ups and young entrepreneurs.

“It is about time we promote the culture of innovation. We are in dynamically changing times; we need to embrace innovative technology to improve agility and efficiency, increase productivity, and induce industrialization,” Yujuico said.