INDUSTRY leaders urged the government to ease transportation restrictions, subject to health and safety protocols, to allow the movement of more workers and consumers.
The appeal was made after business activities in various sectors of the economy started to slowly recover following an economic standstill during the 11-week strict lockdown imposed by the government in the second quarter of the year.
In a statement on Wednesday, the Department of Finance (DOF) said the industry leaders told the government’s economic cluster in a series of meetings in the third week of July that the fourth quarter of the year is a crucial period to shore up demand and consumer confidence.
Finance Secretary Carlos G. Dominguez III, also the head of the government’s Economic Development Cluster, together with other officials from the economic cluster sought the private sector’s feedback on the status of the business operations and for advice on how the government could help restore consumer confidence.
However, the meetings were held before President Duterte placed the National Capital Region (NCR) and parts of Central Luzon and Calabarzon anew under a more restrictive modified enhanced community quarantine (MECQ) from August 4 up to August 18 in response to the call of the medical community amid the rising number of Covid-19 cases.
Prior to this, NCR along with the nearby provinces were already put under a more relaxed lockdown since June 1.
Following the easing of restrictions to GCQ, private sector leaders reported that construction has resumed, with one major property builder slowly restarting 78 projects and another conglomerate reporting that their infrastructure investments largely remain on track, the DOF said.
DOF said most firms also reported they have begun to see a gradual sales recovery in June, coinciding with the partial reopening of the economy under general community quarantine (GCQ), and expect a slow reduction of losses in the coming months, after the end of the MECQ on August 18.
Despite the pandemic, telecommunications, water and energy sectors expect positive sales growth this year.
A major private sector lender reported a rise in consumer loans except for automobile loans, and a surge in loan demand mostly from large firms.
Mall owners in areas under the relatively relaxed GCQ and Modified General Community Quarantine (MGCQ) saw foot traffic returning to 24 to 30 percent compared to regular operations, but with sales still sluggish as of June. Mall purchases were mostly food, household items and gadgets.
In June, real estate businesses also had an increase in the sale of residential units of up to 60 percent.
Business process outsourcing (BPO) companies have also asked for additional office space for their employees, in compliance with physical distancing plus other health and safety protocols, according to land developers.
Liquor sales also increased by up to 34 percent in the first half of 2020 despite the lockdown and higher excise taxes imposed starting January this year under the new “sin” tax reform law.
One major fast food chain has reopened 93 percent of its stores nationwide, but sales have remained below normal because of existing mobility restrictions.
Port operations, meanwhile, have reached a 60 percent utilization rate as of June.
Hotel operations have resumed in both GCQ and MGCQ areas but only for a limited number of bookings, such as for long-staying guests, returning overseas Filipinos and stranded passengers.
Image credits: AP/Aaron Favila