Iloilo lost P14B in remittances due to COVID-19

By Joseph B.A. Marzan

Iloilo Governor Arthur “Toto” Defensor Jr. said that the provincial government is working to pump prime the province’s economy after it lost an estimated P14.3 billion in remittances from Overseas Filipino Workers (OFWs) amid the coronavirus disease 2019 (COVID-19) crisis.

In a press conference on June 11, Defensor said the P14.3-billion loss affects the acquisition of supplies in the province.

“We will see how big it is, like for example, our estimate in the money lost which would be difficult to recover, P14.3 billion of money which came in from outside, not money that has been circulating. That is fresh virgin coconut money that would come in, which are the customers of the grocery stores and the restaurants in the city and the province,” Defensor said.

The governor added, however, that the losses in OFW remittances are only a portion of the province’s economic losses due to the imposition of community quarantine measures from March to May 2020.

The province is under the Modified General Community Quarantine (MGCQ) from June 1 to June 15, after the General Community Quarantine (GCQ) from May 16 to 31.

Initially, it was placed under Enhanced Community Quarantine (ECQ) from March 20 to May 15.

“We suffered billions from the tourism industry, hundreds of millions in agriculture, hundreds of millions in terms of daily wages which was gone during the time of ECQ and MGCQ. That is what we are trying to recover, as we proceed. Then we will reckon with the damage,” he said.

As to the province’s fate after June 15, the governor said it remains unsure.

“We will have to wait for the national government guidelines. Right now, we are almost open. What is remaining is the leisure industry which is at 50 percent capacity. We are open for almost everything, except that those who do not have travel passes cannot come here, and only LSIs and OFWs can come here. It means that only those from the province can enter for the meantime,” he said.

 

 

DEMAND AND SUPPLY

Defensor said that the province’s economic plan is still in the works, but he is already coming up with the framework of breaking down the plan.

The economic plan is being developed by the Provincial Planning and Development Office (PPDO).

“That assignment was undertaken by our PPDO, but I will start to put it down in writing, all the inputs gathered together of course with our department heads, to input a plan. We have very concrete objectives with a concrete program and a funding source and an accomplishment indicator. We also have to identify the demand side and the supply side of each aspect of the economic plan,” he said.

In describing the demand and supply aspects of its economic recovery plan, the governor cited the development of a P20-million COVID-19 testing laboratory at the Iloilo Provincial Hospital in Pototan town.

“When we view recovery, you take care of two sides: the demand side and the supply side. The infrastructure component of our laboratory which we are rushing, the construction side, is the demand side, because we will be paying workers on a daily basis. The supply side is that we provide the healthcare system that can boost the confidence of the people because they know that just in case something happens, we have added to the testing capacity of the [Western Visayas Medical Center], then there would be quick results and we can contact trace,” he said.

He said that the budget for the province’s economic recovery will depend on both the direction of the provincial and national governments.

“For now, we already know that we cannot replace everything. We will see whatever will come from the national government. So that’s how we proceed, it’s really a budget, and of course, you check your available funds to use. The economic recovery stimulus, mostly that is expenditure on the part of the government, so that is a big challenge, but that is the direction that we want.”

He said that nothing is final with the province’s economic recovery plan, and that he is still contemplating on meeting with the sectors of the province.

“I’ll be issuing an Executive Order if that is the correct vehicle, because I just want to reduce it into writing with perspective. I cannot rush it because I will try, but I will see, if there would be a need to meet with the sectors also, like the tourism industry, so we can focus on the damage. We have figures here, but how about the collateral industries there, who are affected if there are no tourists? We have to answer the questions like that,” he said.