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Government must accelerate vaccine rollout to jumpstart economic recovery – BDO

Government must accelerate vaccine rollout to jumpstart economic recovery – BDO

MANILA, Philippines — As government reimposes the enhanced community quarantine (ECQ) in the so-called NCR Plus bubble to slow the spread of COVID-19, the rollout of vaccines must also be accelerated to help jumpstart a laggard economy, a top bank executive said.

According to BDO Unibank chief investment officer Frederico Rafael Ocampo, it is imperative that these two things be implemented for things to get back to normal.

“The pandemic is a public health issue, and so everybody wants to reopen the economy. Everybody wants to get back to normal. But the main issue is controlling the COVID spread and accelerating the vaccine rollout. Unless we’re able to do these two top of mind and priority issues, then all of our dreams of getting back to normal will remain just a dream,” he said in an interview with CNN Philippines. “What we have learned during the past year is when you have prolonged mobility restrictions, especially when you have a total lockdown of the economy, it just creates a lot of unemployed people and we tend to worsen the problem.”

Ocampo also lamented the unenviable task facing the government right now amid the continuous surge of COVID-19 cases.

“It’s a major challenge. The balancing act that you have to do right now is saving lives against saving jobs or saving the economy,” he said. “We have to contain COVID and we have to accelerate the delivery of vaccines and start rolling them out in a more aggressive way. The sooner we do that, then the better it will be for our recovery, our reopening of the Philippine economy.”

To help jumpstart the economy, Ocampo said the recovery of micro, small and medium enterprises (MSMEs) must likewise be one of the priorities.

“The proposed ARISE (Accelerated Recovery and Investments Stimulus for the Economy of the Philippines) bill is still in the backburner. The longer we prolong the pain of the MSMEs, the more people will lose their jobs. The scarring could be permanent,” he said.

The ARISE Bill, passed by the House of Representatives on third and final reading last year seeks to extend support to micro, small, and medium enterprises and other sectors affected by the pandemic

“We cannot talk yet of how they (MSMEs) are rebuilding because they’re still in pain. More and more companies have declared downsizing this late in the game. They need assistance and they need it now. If we assist them, they they’ll hire their old workers back again. And these workers will consume, and that’s what we need. We are a service-driven economy,” Ocampo said.