(Continued from July 7, 2020)
WHILE the second-quarter gross domestic product may be worse than the first-quarter contraction of 0.2 percent, there are indications the third quarter may see a much better economic performance, especially as the country’s major trading partners begin to recover.
China, for one, is now moving toward recovery as lockdown restrictions across the globe are slowly being lifted. Multinational holding company Franklin Templeton noted that China’s manufacturing companies reopened with at least 90-percent capacity utilization in a strong sign of movement toward normalcy.
Here in the Philippines, the government is allowing more industries to reopen as long as they observe the health protocols, such as social distancing of at least one meter, wearing of face masks, and proper hygiene. We should remain cautious at all times, while continuing our work and daily errands to support the needs of our families.
We are hopeful that vaccines are just within months of becoming widely available, with several companies already testing their products among human patients. Pharmaceutical companies Pfizer and BioNTech recently began a clinical trial of an experimental vaccine that triggered immune responses among healthy patients. This is an initial positive report, but it will take larger and more clinical studies to confirm if the vaccine is really safe and successful.
Dozens of candidate vaccines are also on the way to clinical trials, including those being developed by the likes of Inovio, CanSino, AstraZeneca and Moderna. We can only hope that one of them will soon be available to protect us from Covid-19.
For the moment, let us listen to health experts who prescribe health protocols under the new normal. We need to observe these protocols to ensure that the opening of more business establishments won’t be derailed.
The Department of Trade and Industry, meanwhile, plans to increase the dine-in capacity of restaurants, hotels and other establishments from 30 percent to 50 percent in areas under the GCQ. This will encourage these businesses to hire more employees and generate more sales.
Trade Secretary Ramon Lopez was quoted as saying last week that “the higher operating capacity, the more jobs and sources of income we can provide for our workers.”
The Department of Tourism, for its part, wants more tourism establishments to reopen, as it defers to local government units to determine the best time to reopen their respective destinations, sites, attractions and enterprises to tourists. Boracay Island, the country’s major destination, reopened on June 16 to guests from Western Visayas in a phased approach to revive the industry.
We should allow the tourism industry and other sectors to reopen gradually to generate jobs and provide opportunities for millions of Filipinos. Reopening lessens the burden of the government to provide subsidies and paves the strategic path to normalcy.
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This piece first came out in Business Mirror on June 30, 2020 under the column “The Entrepreneur.” For comments/feedback e-mail to: mbv.secretariat@gmail.com or visitwww.mannyvillar.com.ph./PN
