Lockdown extension will result in closure of businesses — ECOP
MANILA, Philippines — The Employers Confederation of the Philippines (ECOP) warned that further extension of lockdown measures to contain the coronavirus disease 2019 (COVID-19) could lead to more shuttered businesses.
ECOP president Sergio Ortiz-Luis Jr. said businesses are now “practically dead” two months after the government placed Metro Manila and the rest of Luzon under an enhanced community quarantine (ECQ) to prevent the respiratory illness from spreading.
“It’s not a survival rate. They are dead now,” Ortiz told “The Chiefs” on One News/TV5 on Tuesday evening.
The government has since shifted to a modified enhanced community quarantine (MECQ) to allow business establishments to resume operations even on a limited capacity.
However, Ortiz warned that extending the restrictions further under MECQ could have dire consequences especially for micro, small and medium enterprises (MSMEs).
“When you extend it longer, even those that reopened would eventually close for lack of resources,” he said in English and Filipino.
According to Ortiz, the establishments that have reopened are only working at 20 percent capacity. The effects are so severe that recovery is unlikely by the end of the year.
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