The Metro Bacolod Chamber of Commerce and Industry sees the year 2021 as a challenging period for the government’s Economic Recovery Program.
Frank Carbon, chief executive officer of MBCCI, said yesterday that they are awaiting the implementing rules and guidelines of Bayanihan Act 2 because with the passage of the big funds under Financial Stimulus Fund, the government should design a portfolio for the recovery of the business sector and its workers.
“The MBCCI hopes that the government will pour in money first to fuel the purchasing power of workers through the creation of jobs in coordination with the local government units like the cash-for-work program. It should be a labor intensive program so that more people can work,” he added.
Carbon said that after the creation of jobs with intensive labor, the next is the financial structure for the small business sector.
The MBCCI is hoping that the IRR of the Bayanihan Act 2 will include the lowering of corporate tax from the present 30 percent.
“If the purchasing power is established brought by generation of jobs, the domino effect will be income to the micro and small businesses. Banks should also design economic recovery measures with very low or zero interest loans,” Carbon added.
The stand of the business sector was supported by labor leader Wennie Sancho of the General Alliance of Workers Associations, saying that it should be the government’s prime program to enhance the purchasing power of workers by generating jobs.
“But you cannot generate jobs unless more businesses should open and the salaries and wages of workers should increase,” Sancho said.
He added that the economic recovery program under the Financial Stimulus Fund of Bayanihan Act 2 should be substantial for its effect to trickle down to the poorest of the poor.
“It should not be merely designed and intended to please the workers to have more hopes in the future. There would be an adverse result if there is job creation to compensate for the economic loss of purchasing power while the prices of basic commodities keep on going up,” Sancho said. – MML
