MANILA, Philippines — The umbrella group of exporters is seeking government support for businesses, particularly micro, small and medium enterprises (MSMEs), to help mitigate losses, with operations affected by the coronavirus disease 2019 (COVID-19) pandemic.
In a letter to members of the Philippine Exporters Confederation Inc. (Philexport) dated March 13, the group’s president Sergio Ortiz-Luis Jr. said with no medical relief available to address the virus for now, government assistance is necessary to help businesses cope with the impact of COVID-19 on their operations.
“We call on government’s assistance to help businesses, especially MSMEs, keep afloat through collateral-free loans, moratorium on loan and interest payments and tax breaks,” he said.
He said government could also extend assistance to displaced workers and funds could come from the different local government units.
“It will be relevant and useful to divert or allot new funds to augment equipment, tools, medical personnel and facilities to support the response, recovery and rehabilitation phases of this crisis,” he said.
Philexport is urging government to extend support to businesses amid concerns on the impact of the virus on operations.
First detected last year, COVID-19 has affected many countries including the Philippines, as well as its trading partners China, South Korea, Germany, US, Japan, Netherlands, UK and Singapore.
“We did not initially anticipate that the outbreak will spread in such overwhelming speed and scale, causing severe global disruption and losses in various ways,” Ortiz-Luis said noting cancelled flights, declined port calls, and reduced cargo volumes have affected operations.
A slowdown in production in China due to COVID-19 has also affected operations of some exporters as they rely on factories there for their inputs.
Initial results of an online survey conducted by Philexport showed members are seriously concerned over the negative impacts of the virus such as late shipments, cancelled orders, and loss of buyers and suppliers, resulting in higher cost of logistics and raw materials and lower sales.
Based on the survey, four exporters are also already considering downsizing their workforce.
To mitigate losses, several members are using ship-to-ship transfers and rerouting to reach their buyers.
Around 41 percent of the respondents are also looking at selling to the domestic market as an option.
“There is clearly other work to be done. For example, it may not be the right time to look for raw material suppliers (other than those in China) considering the extensive coverage of the virus. But this is definitely a critical future step as we rebuild,” Ortiz-Luis said.
At the individual and enterprise levels, he said the group is encouraging members to cooperate with government in quarantine protocols, contact tracing, hygiene practices and to monitor and follow relevant safety and health instructions.
In addition, he said members could consider flexible work arrangements to be able to continue operations.
“It is likewise highly recommended to suspend gatherings and meetings to help prevent further spread of the virus, as well as refrain from sharing unverified information that may only cause more damage,” he said.