‘Alert 1 for 2022 vital to sustaining economic activity’

MANILA, Philippines — The country needs to maintain the Alert Level 1 status for the rest of the year to promote economic activity and prepare the economy for the effects of the Ukraine-Russia conflict, presidential adviser for entrepreneurship Joey Concepcion said.

“We can’t stop the war in Europe, but we can help the country brace for crisis,” Concepcion said in a statement yesterday, as he noted that sustaining the current increase in local economic activity would help the country weather the impact of the tensions between Russia and Ukraine and the record rise in the country’s debt.

“It’s now become more urgent for the Philippines to maintain its Alert Level 1 status until the end of the year. And to do this, we have to continue to vaccinate, booster and keep our COVID indicators under control,” the Go Negosyo founder added.

Metro Manila and 38 other areas are under Alert Level 1 until March 15. Under this level, establishments can operate at full capacity. There are also no age restrictions for those going to public places like malls and parks.

Concepcion said the lockdowns and restrictions have hurt the economy, which is highly reliant on mobility.

“We are a consumer-led economy. We depend on mobility. If our COVID numbers go up again, our mobility will be restricted and we would reverse the gains we’ve achieved so far,” he pointed out.

He noted that micro, small and medium enterprises (MSME), which account for more than 63 percent of employment, have been severely affected by pandemic-induced restrictions.

“Giving enough cash flow to our entrepreneurs will cushion the effect, and they will have a better chance of surviving if the situation in Ukraine becomes worse,” he said.

He also said that keeping the economy open would contribute to revenue generation and help the government pay the country’s debt, which as of January has reached a new record high, breaching P12 trillion, due to the continued borrowings to finance efforts to fight the pandemic.

“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, noting that before the Russia-Ukraine conflict, there was a consensus that the Philippines would have 6 to 6.5 GDP growth in the first and second quarters of 2022.

The Russia-Ukraine crisis drove crude oil and wheat prices to multi-year highs.

Concepcion believes small businesses that are just starting to recover would be the hardest hit by the rise in commodity prices.

Part of his push for sustained reopening of the economy is the resumption of face-to-face classes and the return of employees to their places of work.

“Schools and offices have a massive multiplier effect in spurring economic activity, especially with MSMEs like cafeterias, retail shops and transport,” he said.

He urged consumers to trust the vaccines and resume their economic activities. He also called on the fully vaccinated Filipinos to get their booster shots to help maintain their immunity and keep health care utilization at low risk levels.

“I’m still very optimistic with 2022 because despite the odds, we were able to control infection levels. What we have to do now is to be on Alert Level 1 for the rest of the year,” Concepcion said.

Meanwhile, the Bureau of Immigration (BI) reported an average of 9,000 passengers arriving daily at the Ninoy Aquino International Airport (NAIA) terminals since the country reopened its borders.

These arrivals are projected to increase to as much as 15,000 per day in the coming months as more travelers want to enjoy summer in the Philippines.

“This is a step towards the much-needed recovery of the tourism sector,” said BI Commissioner Jaime Morente. – Evelyn Macairan, Rudy Santos