All businesses, including those classified as non-essential, should be allowed to resume operations even if only via online platforms, the former head of the Philippine Retailers Association (PRA) said.

In a webinar hosted by the Management Association of the Philippines Friday, Quorum Group Chairman Roberto S. Claudio, Sr. said the government needs to “allow all businesses to operate for so long as they can do it online.”

“For e-commerce, wala dapat distinction (there should be no distinction), whether essential or non-essential,” he said.

He was referring to the current policy under the enhanced community quarantine (ECQ), which only allows essential industries, their personnel and their shipments to operate and pass through lockdown checkpoints.

“This is the only way we can get a little cash flow, at least pambayad sa mga tao (to pay for salaries). It’s not profit anymore; we are not looking for profit,” he added.

He said areas subject to the more-relaxed general community quarantine (GCQ) should allow limited operations at physical stores, while observing health and safety protocols.

According to Mr. Claudio, micro, small, and medium enterprises (MSMEs) experienced a 100% drop in sales and revenue, along with depleted working capital and negative cash flow, during the ECQ.

In a survey performed by accounting firm Isla Lipana & Co., the Philippine unit of PwC network, conducted among 350 business owners, most MSMEs said their top concern is managing their working capital.

Mr. Claudio said working capital is now a matter of survival for such firms, adding that medium-sized enterprises need to seek loans from commercial banks, while small and micro-sized businesses should be asisted by the government via its stimulus program.

Among the government assistance programs available to MSMEs are the Small Business Wage Subsidy Program of the Department of Trade and Industry (DTI), the Social Security System (SSS) and the Bureau of Internal Revenue (BIR).

The program provides at least P5,000 each month for every affected employee of a small businesses.

The government is currently putting together its stimulus program, which also includes provisions that will help sustain MSMEs, such as the proposed P25-billion bridge loan program to be offered by the Small Business Corp. and the P128-billion credit mediation and refinancing service of the Philippine Guarantee Corp.

Meanwhile, PwC Philippines is projecting a rise in strategic partnerships in the wake of the coronavirus disease 2019 (COVID-19) pandemic, while acquisition activities will be likely decline, as investors are reevaluating their transactions.

“There are uncertainties that are dampening investor appetite for investments and most will conserve their cash,” said Mary Jade T. Divinagracia, a managing partner for deals and corporate finance at PwC.

“Acquisitions will likely be down, but I believe there will be a rise in strategic partnerships as people find a way to work together, share resources, even co-develop or co-brand their products,” she added.

Ms. Divinagracia said small companies should consider entering into such partnerships, while medium enterprises might still be able to attract investors. — Adam J. Ang

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