Ayala Corp. Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala on Thursday called for a strong government support for micro, small and medium enterprises (MSMEs).
During the “Build Back Better: Economic Resilience After COVID” forum of the House Committee on Economic Affairs, Zobel pointed out three sectors that the country should accelerate its efforts in line with government agenda to “Build Back Better.”
One of these efforts is the government’s continued support to MSMEs, he said.
Zobel acknowledged the importance of supporting MSMEs, which cover 60 percent of total annual revenues of Philippine businesses, contribute about 35 percent of the total gross domestic product, and employ 63 percent of Filipino work force.
However, he said the surveys done during the quarantine period indicated that financial security, employees safety, business continuity were among critical concerns of the MSMEs.
“It’s unfortunate that many of these concerns led many businesses ceasing operations for about three months…these have been very difficult [for them],” Zobel said.
While large businesses can withstand longer period with no revenue, he said, this timeframe has been so hard for small businesses.
“We recognized that many initiatives have been taken by the Department of Trade and Industry to help entrepreneurs to withstand the crisis. With significant financial support and I know private sector groups have been critical partners providing mentorship and online training…we hope to sustain the momentum on the collaboration between the public and private sectors. We look forward to working together to build a better and more resilient Philippines,” he added.
Ayala Corp., Zobel said, is committed to supporting its network of 250,000 small and medium enterprises and over 1 million micro enterprises under three key aspects, namely, health, business continuity through digitalization, and financial assistance.
“Throughout this emergency we have tried to be supportive as possible to this partner community to condone rental fees and extending grace period for payment. We understand that they’re going to long pain, we can take this pain together so we can grow together,” he said.
He said the private sector is one with the government in mitigating the impact of Covid-19 pandemic.
“The unprecedented Covid-19 crisis really impacted the country in such unimaginable ways, none of us could have seen this to take place. The pandemic, however, give the private and public sector an opportunity to work closely,” Zobel added.
The lower chamber is pushing for the passage of the Accelerated Recovery and Investments Stimulus for the Economy of the Philippines, or ARISE Philippines Act, to address the adverse impact of the Covid-19 to businesses.
Besides helping MSMEs, Zobel said the country should also improve the limited public transportation, especially in the National Capital Region.
“We need to reimagine public transportation as an exercise in people mobility and apply technology such as contactless payment, less handling of physical objects that can transmit disease,” he said.
Also, Zobel said the national ID system can transform how public and private services are accessed and delivered digitally.
“Anything that facilitates digital infrastructure should be encouraged. The national ID system will be a key component for banking to take place at lower economic levels,” he added.