SINCE THE Philippines recorded its first case of COVID-19 in early 2020, there had been several shifts in quarantine restrictions. More than a year since, the country is still effectively in a lockdown. The Philippines was also recorded as one of the countries with the longest lockdown in the world. The modified quarantine protocols with indefinite rulings are being implemented every time COVID-19 cases threaten to peak. Amidst the series of lockdowns, one of the most impacted sectors in the economy are MSMEs.
According to the 2018 data of the Philippine Statistics Authority (PSA), there are 999,342 registered MSMEs in the country. They comprise 99% of the businesses according to the Asian Development Bank (ADB). Compared to big businesses, MSMEs enjoy the flexibility of innovation in products and services responsive to the needs of the market. Thus, they are believed to have a longer staying power in the business. However, this known strength of MSMEs has been continually challenged by the lockdowns implemented in response to the fluctuating number of COVID-19 cases in the country.
In an effort to infuse capital and dilute the impact of the pandemic, the Angeles City-based micro, small and medium enterprises (MSMEs) received from the city government thru Mayor Carmelo ‘Pogi’ Lazatin Jr. a total of P160,000 cash aid to 16 One Town One Product (OTOP) store merchants. The distribution was led by Lazatin, Vice Mayor Vicky Vega-Cabigting, Executive Assistant IV Reina Manuel, Chief Adviser and Tactician and VP for Clark Airport Operations IC Calaguas and Angeles City Economic Development and Investment Promotions (ACEDIPO) Officer-in-charge Irish Bonus-Llego.
Lazatin opined, “Now more than ever, we have to figure out a lot of mechanisms to restore a vibrant economy. The current health and economic crises are painful, but it will be nothing compared with the crises we will face if we do nothing.”
Grant recipients are: ADTO Ship (miniature souvenir ships made of bamboo); BG Metal (metal plant stands and baskets); JJBMS Blooming Greens Enterprises (water bonsais); Cutud Weavers (plant baskets); Ellen’s Recycled Handbags (recycled bags from plastic straws); Flores Handicrafts (kitchen organizers made of rattan); Tamayuc (handwoven bayong bags); Tabak’s Handpainted (ethnic-designed home decors); K’s Creation (upcycled fashion accessories); Wood Concept by Madison Diangson (wooden kitchenwares); Bel’s Woodcraft (wooden kitchenwares); Chilonia Fabrica (Capiz home decors); and Stitched by Raj (hair accessories), Lucio Sison (ref magnets); Catch your Dreamxx (dreamcatchers); and Impact Balibago Arts and Crafts (home interior display).
OTOP advocate Manuel emphasized this financial assistance among the umpteen projects of the Lazatin administration intended for the merchants. Meanwhile, Llego said the ACEDIPO will guide and monitor the suppliers in disbursing the donated funds.This city-government initiated livelihood program coincides with the celebration of Department of Trade and Industry’s National MSME Week last August 2-6, 2021 anchored with the theme “Makabagong MSMEs, Bagong Pag-asa Laban sa Pandemya”.
Lazatin’s Relentless Pursuit of Sustainable Growth
Way back in the pre-pandemic years, the city government was constantly upshifting its drive to promote locally made products, thus the “Pasal-One, Angeleño Pa!” was launched. The term was coined from the Kapampangan term “pasalwan,” meaning “to buy.” A two-storey building located in Barangay Sto. Rosario was opened to the public as a spot for merchant-members to showcase their local produce.
“The city government has also spearheaded a series of online selling to support and give recognition to striving local MSMEs who despite the pandemic have been striving in these difficult times,” said Lazatin.
Lazatin is also the active proponent of the “Gawang Angeleño Initiative” by installing ‘One Town, One Product’ (OTOP) stores within the city hall premises. In fact, two kiosks were put up at the newly-constructed waiting sheds in the north and south wings of the main city hall building, according to Calaguas. “This is our humble yet tangible act to buoy up our local MSMEs the best possible way we can,” she added.
“To encourage a participative program, Mayor Lazatin, Jr. generously waived the P500 administrative fee in the OTOP store for all interested local merchants to exhibit their “Gawang Angeleño” products so as to sustain their small livelihood,” Manuel shared. Supervising its operations and management are Manuel and Bonus-Llego.
To be part of the OTOP Angeles Store, you may visit ACEDIPO at 2nd floor of City Hall Building, Pulung Maragul. For questions, you can message at our Facebook Page @AngelesCityOTOP.
Impact of Community Quarantines to MSMEs
The quarantine measures prevented many businesses from operating full time. The Department of Trade and Industry (DTI) notes that around 10% of the MSMEs were forced to shut down their businesses as of June 2021 due to lack of sales. While most businesses already have contingency plans in place, there still wasn’t enough time to roll it out properly. MSMEs do not only provide products and services, they also create job opportunities. According to the Department of Trade and Industry (DTI), MSMEs generate over 5 million jobs or 62.4% of the country’s employment.
One of the four (4) pillars of the administration’s socio-economic strategy against COVID-19 is an economic recovery program to create jobs and sustain growth, and economic experts believe that MSMEs are key to the Philippine’s economic recovery. While the government’s prioritization of MSME employees in the vaccination roll out are laudable, we need more long-term and sustainable recovery roadmaps for the foreseeable future. In order to craft and implement this economic recovery framework, the Senate has suggested the immediate formation of an inter-agency task force (lATF) for economic recovery to not only benefit the MSMEs but the entire economic sector as the country fulfills the government’s socio-economic strategy against COVID-19.