‘YEAR OF POSSIBILITIES’: Biz sector sees growth in domestic economy in 2021

The local business sector in Iloilo is optimistic for the first quarter of 2021 as they foresee growth in the domestic economy with the easing of restrictions and businesses slowly recovering.

After a challenging 2020, Iloilo Business Club (IBC) Executive Director Lea Lara described 2021 as the year of possibilities for the local business sector in Iloilo as their operations transition to the new normal.

 

“It’s about a year of possibilities. Since bag-o lang gid nag-slide down ang Iloilo City sa Modified General Community Quarantine (MGCQ) it is again a time of transitioning for the business sector,” she said in an interview on Wednesday.

 

Amid health protocols in place and limited travel of people, Lara said they are expecting growth in the domestic enterprises in Iloilo. Lara noted that people are now more confident to go out as strategies are now established by the local government units (LGUs) to prevent the transmission of COVID-19.

 

“Subong mas comfortable and confident na ang mga tawo to move around, nakaplastar na ang protocols. We will see the growth of domestic enterprises. It’s about local patronage,” she said.

Lara also emphasized that the biz sector should adapt and utilize whatever lessons and business strategies were acquired in the previous year to ensure that business operations remain afloat in the transition period.

Based on the result of the 2018 Census of Philippine Business and Industry (CPBI) conducted by the Philippine Statistics Authority (PSA), it is the Services sector, particularly Wholesale and Retail, who shared the highest total revenue among formal sectors in the region.

In 2018, the region’s total revenue reached PHP777.6-billion, with Wholesale and Retail and Repair of Motor Vehicles and Motorcycles accounting for the biggest share of PHP401.69-billion. The Wholesale sector also has the most employment opportunities with 89,000 employees and the highest spending expenditure at PHP376.4-billion. It also accounted for the highest value-adding at PHP44.1-billion of the PHP188.2-billion total value added to the region.

The Manufacturing sector earned PHP81.8-billion; Financial and Insurance, PHP63.4-billion; Electricity, Gas and Steam, PHP45.1-billion; and Accommodation sector with PHP39-billion in revenues.

Meanwhile, the Mining and Quarrying sector posted the highest return in terms of profitability among the sectors in Western Visayas.

Out of the 21,721 establishments in the region, 9,405 belong to the Wholesale and Retail and Repair of Motor Vehicles and Motorcycles; Financial and Insurance activities (3,056); Accommodation and Food Service Activities (2,650); and Manufacturing (1,425).

Marlene Alviar, chief of the Statistical Operations and Coordination Division (SOCD) of the Philippine Statistics Authority (PSA) Region 6 who presented the data on Wednesday, said the results of the CPBI may change following the effects of the COVID-19 pandemic in 2020.

 

“With the pandemic, definitely our statistics will change if what sector remains on top, it may vary,” Alviar said.

 

The CPBI, which is conducted every six years, serves as basis for the formulation of policies and economic development plans of the government and the private sector, according to Alviar.

Results of the 2018 CPBI reflected the survey conducted by the PSA from May to September 2019.

Meanwhile, the Annual Survey of Philippine Business and Industry (ASPBI) is conducted to determine the trends of the establishments and how they fared in the region’s over-all economy. Currently, survey for the 2020 ASPBI is currently ongoing after it was delayed due to the Covid-19 pandemic. (ERS)