Poe wants probe into impact of COVID-19 lockdowns on MSMEs

Senator Grace Poe-Llamanzares is seeking a Senate inquiry into the impact of the community quarantines on micro, small, and medium enterprises (MSMEs).

Under Resolution 817, Poe cited the need to establish a roadmap for the industry in the longer term, especially for those forced to shut down due to lack of sales.

“MSMEs should be part of the equation when we plan the implementation of lockdowns. If we keep leaving them out, it will be harder for our economy to bounce back with not many businesses left after the pandemic,” she said.

“There are also compounding effects that we cannot ignore, especially when, on top of these losses, more workers in the food service industry are losing their jobs,” she added.

Metro Manila is under the strictest enhanced community quarantine (ECQ) which started August 6, and will be in place until August 20, 2021.

Earlier, the National Economic and Development Authority (NEDA) said the latest quarantine restrictions in the country would amount to weekly production output losses of P150 billion, and increase the number of poor by about 250,000.

On the other hand, the Department of Trade and Industry (DTI) said that as of June 2021, some 10% of MSMEs have been for forced to shut down. This was up to as high as 52.66% in May 2020, during the peak of quarantines.

Micro enterprises are defined as those with total assets worth less than P50,000; cottage enterprises with assets worth P50,001 to P500,000; small with P500,001 to P5 million; and medium from over P5 million to P20 million. 

The government has allocated billions under its Small Business Wage Subsidy program which aimed to provide assistance to formal sector workers, as well as its loan program for MSMEs under the COVID-19 Assistance to Restart Enterprises (CARES) program.

“While the government’s effort to infuse capital in support of MSMEs and the prioritization of their employees in the vaccination rollout are laudable, we need more long-term and sustainable recovery roadmaps for the foreseeable future,” said Poe.

“This is our new normal, and it calls for a better response from us. We need to be at least one step ahead, because every lockdown can’t feel like we’re taking two steps back,” the senator added. —LBG, GMA News