Presidential Adviser for Entrepreneurship Jose Maria A. Concepcion raised the need to keep the country under Alert Level (AL) 1 for the rest of the year in a bid to cushion the impact of the Ukraine-Russia conflict on the Philippine economy, which is being threatened by rising prices of fuel and other commodities.
In a news statement issued on Monday, the Go Negosyo founder said that allowing more economic activities can aid the country in surviving the current crisis brought about by the escalating tensions in Eastern Europe, in addition to record high debts.
“We can’t stop the war in Europe, but we can help the country brace for crisis,” he said. “It’s now become more urgent for the Philippines to maintain its Alert Level 1 status until the end of the year.”
With this, Concepcion stressed the importance of continuous rollout of Covid-19 vaccination program for both primary and booster doses.
The business leader explained that restrictions have derailed the economy, which was described as “highly dependent on mobility.”
In particular, he said micro, small and medium enterprises (MSMEs) are the hardest hit sector, highlighting its impact on the economy given they represent 63.2 percent of the local employment.
The looming price hikes will take a toll on the operations of the MSMEs, he said earlier, stressing that having more restrictions was not an option as it would be an additional burden for them.
“We are a consumer-led economy. We depend on mobility,” he said.
“Giving enough cash flow to our entrepreneurs will cushion the effect, and they will have a better chance of surviving if the situation in the Ukraine becomes worse,” Concepcion added.
Maintaining the current quarantine measure, which permits more businesses to open up, can also augment revenue generation so the government can rake in more funds to pay back its debts, Concepcion said.
As of end-January, the Bureau of the Treasury reported that the national government’s outstanding debt rose to a new record high of P12.03 trillion. This showed 16.5 percent from P10.33 trillion in the previous year.
“We were able to hit 7.7 GDP [gross domestic product] growth in the fourth quarter, better than most had expected, when we reopened the economy,” he said.
The call for sustained economy reopening by Concepcion also includes the resumption of face-to-face classes and on-site work for employees.
“Schools and offices have a massive multiplier effect in spurring economic activity, especially with MSMEs like cafeterias, retail shops and transport,” he said.
Trade Secretary Ramon Lopez earlier encouraged more on-site work setup following the transition to Alert Level 1.
He explained that employees returning to offices will boost business activities, especially now that establishments are allowed 100-percent operational capacity. This sentiment was also backed by business groups, which also cited the benefit of implementing hybrid work arrangements amid the pandemic.
“I’m still very optimistic with 2022 because despite the odds, we were able to control infection levels,” the Go Negosyo founder concluded. 30