PRESIDENTIAL Adviser for Entrepreneurship Jose Maria A. Concepcion hopes the heightened restrictions due to Covid-19 Delta variant cases will not last long because easing mobility, especially by the fourth quarter, is crucial for economic recovery.
The Go Negosyo founder said in a recent briefing that placing Metro Manila and other provinces under general community quarantine (GCQ) with heightened restrictions will take a toll on the businesses’ operations due to limited allowed capacity.
“Siyempre, malaking effect iyan. Now, hopefully, hindi ito pangmatagalan [Of course, it has significant impact. Now, hopefully, it will not last long],” Concepcion said.
He said the current situation should improve by the fourth quarter to allow for an economic rebound. The last quarter is the most critical, Concepcion pointed out, noting that it will be the last chance this year for businesses to recoup their losses accumulated over the last months.
“So we feel that the fourth quarter, because of election spending, because of consumer spending and of course, the stimulus, [are a big boost for the entrepreneurs],” the presidential adviser explained.
Concepcion said the struggling businesses should be given said support by the last quarter to avoid starting 2022 with a setback.
Trade Secretary Ramon Lopez said in a recent briefing that the Covid-19 task force is maintaining a balance on allowing business activities and restricting mobility to curb the spread of coronavirus.
In doing so, Lopez said they focus on permitting essential activities while banning non-essential activities that are usually a so-called super spreader event.
The Department of Trade and Industry (DTI) chief previously said that micro, small and medium enterprises (MSMEs) cannot afford to have another major lockdown. Lopez said these sectors are worried already because their cash flows have been depleted following the imposition of enhanced community quarantine in 2020 and just earlier this year.
If there will be another massive lockdown, Lopez said that small businesses will be forced to trim their workforce or temporarily close operations.
As such, the trade official said that imposing granular lockdowns is the way to go as much as possible.
According to a June survey by DTI, the number of businesses that closed operations slowed down to 10 percent from a peak of 40.20 percent in August last year following the easing of mobility restrictions.
Less than half or 44 percent of the MSMEs surveyed have maintained full operations while the remaining 46 percent are only partially operating. The June data also showed that 53.8 percent of the MSMEs reported decline in sales.