By Jenina P. Ibañez
Reporter
PHILIPPINE exporters are calling for the immediate passage of the government’s economic stimulus bill, while requesting for increased funding for the agriculture industry and improved loan distribution for small businesses.
Their plea is in a letter dated May 5 through the Philippine Exporters Confederation, Inc. (Philexport) to Albay Representative Jose Ma. Clemente S. Salceda, who heads the Economic Response Stimulus Package cluster of the Defeat COVID-19 special committee in Congress, along with representatives Stella Luz A. Quimbo and Sharon S. Garin.
The House is currently legislating the proposed Philippine Economic Stimulus Act (PESA), which would inject P475 billion into the economy in the first year of its 2020 to 2022 coverage to help businesses recover from the effects of the coronavirus disease 2019 (COVID-19).
“Because of the urgent nature and impact of this bill, we strongly call for the bill to be passed in a month’s time especially for the benefit of our MSMEs (micro, small, and medium-sized enterprises) and their stakeholders, which account for some 60% of the country’s employment and 30% of our GDP,” Philexport President Sergio R. Ortiz-Luis Jr. said in the letter.
Philexport said it supports the position of the Philippine Chamber of Commerce and Industry, which called for more farming aid, public transport subsidies, and loans flexibility for MSMEs. Philexport proposed that the P10-billion budget for agri-fishery be at least doubled to help address productivity, technology, and climate change issues.
The export business group said the lending scheme from SB Corp. is welcome, but also proposes that Negosyo Centers be deputized to accept and review applications, especially in provinces.
“This function may also be delegated to industry associations also as a form of vetting. Likewise, anticipating the huge number of applications, we recommend that loan proceeds be distributed via bank transfers to lessen people movement and facilitate the release,” it said.
The group also said the digitization of government functions should be fast-tracked to improve trade facilitation and ease of doing business.
They also said that availing grants and loans from PESA should not disqualify businesses from availing of other forms of relief measures.
Philexport also asked for clarity on certain provisions, such as the application of PESA in Luzon businesses affected by the enhanced community quarantine (ECQ). The group recommended that PESA be applied to all businesses that have been critically affected by the pandemic nationwide.
Exporters also asked for clarity on the wage subsidy coverage for two months of payroll for critically impacted business, suggesting that the two months include the period covered by the ECQ and the month after its lifting.
“There should also be a provision stating the minimum requirements, at most Certificate of Employment and Compensation from the employer with just the latest payroll slip. Proceeds may be coursed through the employers who already have the payroll system to facilitate the disbursement,” Philexport said.
PESA is currently being discussed at committee level.
