COVID-19: Global Impact and Industrial Organization Catch-Up Plan

The world has experienced a prolonged period of uncertainty and unrest caused by the
SARS-COV2 responsible for the Corona-virus or COVID-19 pandemic. To date it has already
infected almost 4.1 million people in 187 countries, resulting in more than 280,000 deaths. The
outbreak is first and foremost a human tragedy, affecting millions of people and is also having a
growing impact on the global economy.

Further, disease experts estimate that each COVID-19 sufferer infects 2-3 others (twice
as high as the seasonal flu). Earlier, experts would also say that the number of those affected
doubled in every 6.4 days. But it is strongly believed that the number of the sufferer increases
exponentially as what has been manifested in different countries. In fact, COVID-19 could have
been circulating for many weeks before it was detected because people simply thought they had
a common cold and did not go to hospitals. But in most countries the virus could have been
infecting people but could not be confirmed because of the absence or limited supply of the
testing kits and machine which could validate or confirm the cases of people suffering from the
symptoms of the COVID-19. The number of silent COVID-19 carriers could not be estimated.

Currently, what is certain is that, COVID-19 – a respiratory disease caused by the novel
corona virus or SARS-COV2 which outbreak started in China’s Wuhan City in Hubei province
in the last quarter of 2019 has profoundly shaken the basic fundamentals in our society. What
started as health crisis has morphed into a full-blown economic crisis which has affected the
world much more than the 2008 financial crisis. It has destroyed consumption activities and
paralyzes the economy. The economic experts have been one in seeing and saying that a
recession unfolds in their very eyes. The economy which is mostly dominated by consumerism is
grounding effectively to a halt causing grave repercussions especially for retailers, services and
financial institutions. Such development has made the politicians and policymakers scrambling
to offset and mitigate the damages in their respective countries.

At this period, huge waves of business closures have not only disrupted China’s consumers’
spending and manufacturing but also the world’s supply chains. It should be noted that in 2002,
when SARS hit China, its shares of manufacturing output was only 9%. At present, China’s
share of global manufacturing output has ballooned to 28% or nearly 1/3 of global goods had
originated from China. China has become very important that when its manufacturing engines
cease, the world ceases along with it. The drop in production last February this year is just a tip
of the iceberg (according to some experts) because most of the factories still maintained
inventories of the China-made parts. But by this month (March), these inventories are now
depleted and cannot immediately be replenished. Without alternatives, companies and factories
will have to shut down causing sales and profits to plummet and causing millions of workers to
unemployment. In Asia, the export sector will be badly affected since it’s reliant on China-made
components. Agricultural sector in the region will also be affected because they export their
agricultural products like tropical fruits and other products to China’s market. Currently,
everybody could see blood bath in tourism and the transportation industries especially the airline
sector. Global market is in meltdown and $14 trillion worth of shareholders value and companies
based in China are looking elsewhere for transfer.

The crisis has already transformed into an economic and labor market shock, impacting
not only supply (production of goods and services) but also demand (consumption and
investment). Disruptions to production, initially in Asia, have now spread to supply chains across
the world. All businesses, regardless of size, are facing serious challenges, especially those in the
aviation, tourism and hospitality industries, with a real threat of significant declines in revenue,
insolvencies and job losses in specific sectors. Sustaining business operations will be particularly
difficult for Small and Medium Enterprises (SMEs). Following travel bans, border closures and
quarantine measures, many workers cannot move to their places of work or carry out their jobs,
which have knock-on effects on incomes, particularly for informal and casually employed
workers. Consumers in many economies are unable or reluctant to purchase goods and services.
Given the current environment of uncertainty and fear, enterprises are likely to delay
investments, purchases of goods and the hiring of workers. While updated forecasts vary
considerably and largely underestimate the situation, they all point to a significant negative
impact on the global economy, at least in the first half of 2020. Protecting workers and their
families from the risk of infection needs to be a top priority. Demand-side measures to protect
those facing income losses because of infection or reduced economic activity are critical to
stimulating the economy. Income protection also mitigates the disincentives against disclosing
potential infections, especially amongst low income and already disadvantaged groups of
workers.

Corona virus Disease (2019) COVID-19 now poses a more serious downside risk to the
global economy. The World Health Organization (WHO) declared the COVID-19 outbreak a
pandemic on March 11 to signify its severity and global coverage and urged countries to take
‘urgent and aggressive action.’ On March 13, Europe was declared the new epicenter of the
virus, as its confirmed cases and deaths surpassed those of the rest of the world (except China).
New cases in Europe even surpassed those of China at its peak. As a result, several countries
have taken a variety of measures from mass testing, travel/border restrictions, to lockdowns in a
bid to contain the virus. Governments and central banks have likewise been adjusting the
monetary and fiscal policy to mitigate the economic impact. This means that we are now in the
second chapter of the crisis where the pandemic has translated into an economic crisis. In a way,
the second chapter is inevitable since part of the response to address the pandemic is to slow
down economic activity. If we are unsuccessful in navigating through this pandemic-induced
economic crisis, then we enter the third chapter: social and political crisis.

Beyond the urgent concerns about the health of workers and their families, the virus and
the subsequent economic shocks will impact the world of work across three key dimensions: The
quantity of jobs (both unemployment and underemployment); The quality of work (e.g. wages
and access to social protection); and Effects on specific groups who are more vulnerable to
adverse labor market outcomes.
 In times of crisis, International Labor Standards provide a strong foundation for key
policy responses that focus on the crucial role of decent work in achieving a sustained and
equitable recovery. These standards, adopted by representatives of governments, workers’ and
employers’ organizations, provide a human-centered approach to growth and development,
including by triggering policy levers that both stimulate demand and protect workers and
enterprises. Policy responses should focus on two immediate goals: Health protection measures
and economic support on both the demand- and supply-side. First, workers and employers and
their families should be protected from the health risks of COVID-19. Protective measures at the
workplace and across communities should be introduced and strengthened, requiring large-scale
public support and investment. Second, timely, large-scale and coordinated policy efforts should
be taken to provide employment and income support and to stimulate the economy and labor
demand. These measures not only cushion enterprises and workers against immediate
employment and income losses, but they also help prevent a chain of supply shocks (e.g. losses
in workers’ productivity capacities) and demand shocks (e.g. suppressing consumption among
workers and their families) that could lead to a prolonged economic recession. Pro-active, large-
scale and integrated measures across all policy areas are necessary to make strong and sustained
impacts. Since the crisis is evolving rapidly, careful monitoring of the direct and indirect effects
of all interventions is crucial to ensure policy responses are and stay relevant. Building
confidence through trust and dialogue is crucial in making policy measures effective. Especially
in times of heightened social tension and a lack of trust in institutions, strengthened respect for,
and reliance on mechanisms of social dialogue creates a strong basis for building the
commitment of employers and workers to the joint action with governments. Enterprise-level
social dialogue is also crucial. Aside from policy responses, there are also three (3) key pillars to
fight COVID-19 based on International Labor Standards. First, protect workers in the workplace
to minimize the direct effects of the corona virus, in line with WHO recommendations and
guidance. Second, stimulate the economy and labor demand through economic and employment
policies to stabilize economic activity. And lastly, protect employment and incomes for
enterprises and workers negatively impacted by the indirect effects (factory closures, disruption
to supply chains, travel bans, cancellation of public events, etc.)

Countries are already responding. During the initial phase of the COVID-19 outbreak, a
number of countries have implemented decisive measures to combat the spread of the disease,
while ameliorating its pernicious effect on the economy and labor market across the three policy
pillars. Here are some selected examples of measures taken in response to COVID-19: (a)
Protecting workers in the workplace - Provisions for paid sick leave are being made available in
many countries for workers who are unwell or in quarantine. In China, the government has
instructed that salary payments should be made to workers who are unable to work due to
quarantine or illness. Ireland, Singapore and South Korea have made sick pay/leave available for
the self-employed, while in the UK, statutory sick pay will be provided for eligible diagnosed or
self-isolating individuals, payable from the first day instead of the fourth. (b) Stimulating the
economy and labor demand - Central banks in Australia, Canada, New Zealand, UK, and the US
has cut interest rates. The South Korean government announced a special Support Package with
a budget of 20 trillion KRW in 2020. Italy has introduced tax breaks and waivers for social
security contributions, as well as extensions of deadlines for repayment of mortgages. (c)
Supporting employment and incomes - Unemployment benefits have been expanded in several
countries. In the Philippines, the Social Security Scheme (SSS) is prepared to pay unemployment
benefits to some 30,000 to 60,000 workers projected to lose their jobs following possible layoffs
or business closures. While these measures will no doubt help to contain the pandemic, to
respond to the emergency needs it has generated and to pave the way to a gradual recovery, it is
clear that more needs to be done. Past crises and the experiences of countries, which have reacted
too late in the context of the current COVID-19 crisis, show that preparedness and early action is
critical.

In the Philippines, the country witnessed a slower economic growth in the first half of 2019,
compared to 2018. The country saw a sustained economic growth of 6.3% between 2010 and
2018, while the growth slowed down to 5.5% in H2 2019. The World Bank estimates Philippines
to witness full-year 2019 economic growth of 5.8%. The ongoing corona virus impact is
expected to result in a subdued growth for the economy in 2020. China is Philippines’ top
trading partner accounting for 18.8% of total trade, according to the Philippine Statistics
Authority (PSA). In November 2019, 22.9% of Philippines’ exports were to China, the biggest
importer for the country. Philippines imports account for approximately 20% of goods from
China followed by Korea and Japan at 10% each. The Central Bank of the Philippines (BSP)
noted that the corona virus outbreak could have a major impact on Philippine economy over the
next few months. Ruben Carlo Asuncion, chief economist for Union Bank of the Philippines,
noted that the corona virus outbreak could cost the Philippine economy $600m or 0.8% of
economic growth if it lasts for six months, as quoted by CNN Philippines.

Fiscal measures to contain the corona virus impact

With more than 400 economic zones under lock-down, approximately 700 factories have
been shut down displacing hundreds of workers. The Philippines government is a stimulus
package of approximately 200 billion pesos ($3.93bn) to protect the citizens and businesses from
the impact of the corona virus outbreak. The funds are expected to drawn from non-budgetary
sources. The central bank announced its decision to reduce interest rate on reverse repurchase
(RRP) facility by 25 basis points to 3.75% on 06 February 2020. The interest rate on overnight
lending and deposit facilities was also cut to 4.25% and 3.25%, respectively. The interest rate on
RRP was further reduced by 50 basis points to 3.25% on 17 March. The projected gross domestic
growth rate of 6.5%-7.5% for 2020, however, has not been revised. The Philippines has
announced that it will direct P200bn ($20bn) in emergency subsidies to 18 million poor
households. Families will be provided P5,000 ($99) to P8,000 ($110) for two months based on
the minimum daily wage rates in their respective regions. The Bangko Sentral ng Pilipinas
Department of Economic Research has approved a  P300bn ($6m) bond repurchase deal to
provide the government with funds to fight the COVID-19 pandemic. The Asian Development
Bank provided $3m in aid to the country and is also planning to provide another assistance
package.
Impact on tourism

Tourism industry is a major contributor, accounting for 12.7% of the Philippine economy
in 2018, according to data from the Philippines Statistics Authority. More than seven million
foreign tourists visited the country during the first ten months of 2019. Chinese tourists account
for majority of Philippines’ tourist population. During the first ten months of 2019, a total of
1.49 million Chinese tourists visited the Philippines, according to the Department of Tourism
(DOT). Philippine tourism officials expected to attract four million Chinese tourists by 2022,
before the outbreak happened. The tourism industry, however, is expected to witness a major
impact as the country closed its borders with China and other countries due to the coronavirus
infection, Philippine Finance Secretary Carlos Dominguez noted. Dominguez added that the
exact economic impact of the outbreak is too early to be estimated but remained optimistic that
the country can sustain its economic growth.

Impact on businesses

Airline operators have impacted by the corona virus due to grounding of flights. They have
requested the government to provide assistance in the form of handouts, emergency credit lines
and the exemption from navigation and airport fees. Mining operations of two mining companies
in the Surigao del Norte province, which is home to majority of the country’s nickel mines, will
be suspended from 01 April 1 to prevent the spread of the corona virus. The Philippines is an
alternative source of nickle for China, which sources the ore from Indonesia. Following the ban
of export of unprocessed ore imposed by Indonesia, the Philippines serves as the main supplier.
The two mining companies, Nickel Asia Corp and Global Ferronickel Holdings, account for
majority of the country’s nickel ore output. The suspension is expected to impact the scheduled
ore shipments of the companies.

Employment-related measures
(e.g. state compensation schemes, training…)
 Department Order No. 209 – Providing Guidelines on the Adjustment Measures Program
For the Affected Workers due to Corona Virus. Under DAO 209, 5K was granted to
affected workers who will not be able to receive their regular wage due to the
implementation of the Enhanced Community Lockdown (ECQ) and the implementation
of flexible work arrangement. Affected employees also included those whose leave
credits will not suffice to cover the ECQ period and those in the informal sector.
 Labor Advisory No. 09-20 -Providing Guidelines on the Implementation of Flexible
Work Arrangement As Remedial Measure due to the Ongoing Outbreak of Corona
Virus 2019 (COVID-19) issued on 4 March 2020. The said Labor Advisory provided
the different work arrangement the employer may adopt for its employees while the
country is observing the ECQ, which include among others, WFH, Work Rotation,
availment of force leave utilizing existing leave credits, if any.
 Labor Advisory No. 11-20 Supplemental Guidelines Relative to the Remedial Measure in
view of the Ongoing Outbreak of Corona Virus Disease 2019 (COVID-19) issued 16
March 2020. The said Labor Advisory provided additional guidelines and remedial
 measures to be adopted to ensure the observance of ECQ.  It further clarified that
manufacturing, retail and service establishments shall remain in operation during the
quarantine period observing social distancing. The same rule applies for those in the
healthcare industry and in logistics establishment to ensure delivery of food, raw
materials and other goods to ensure supply is unhampered.
 Labor Advisory No. 12 Series of 2020 – Clarificatory Guidelines on COVID-19
Adjustment Measures Program (CAMP) 19 March 2020. The Labor Advisory provided
guidelines and procedure on how the 5K grant under CAMP shall be filed in DOLE by
providing the Establishment Report to be submitted online for processing and release of
the grant.
 Labor Advisory No. 13 Series of 2020 – Payment of Wages for Regular Holidays on
April 9, and 10, 2020 and Special Holiday on April 11, 2020. Issued March 30, 2020.
The advisory provided the rates to be applied in the computation of wages for regular
and special holidays.
 Labor Advisory No. 13-A Series of 2020 – Deferment of Payment of Holiday Pay for the
April 2020 holidays.  April 1, 2020.The Labor Advisory clarified that the employers
shall have the option to defer the payment of holiday pay to be earned for the month of
April 2020 until after the ECQ and the normal operations of the establishment is in
place.
 Labor Advisory No. 14 Series of 2020 – Clarification on the Non-Inclusion of One-
Month Enhanced Community Quarantine period on the sic-month probationary period.
April 1, 2020. The advisory issued a clarification on the non-inclusion of the ECQ
period in the six-month probationary period prescribed under the Labor Code.  It took
into consideration the inability of the employer to assess the performance of the
probationary employee given the quarantine.
Economic stimulus measures
(e.g. loans, moratorium on debt repayments…)
REPUBLIC ACT 11469 OR THE “BAYANIHAN TO HEAL AS ONE ACT” (the “Act”)
The President has the power to adopt the following temporary emergency measures, among
others, to respond to crisis brought by the pandemic:

 Provide an emergency subsidy to around eighteen (18) million low income households:
Provided, That the subsidy shall amount to a minimum of Five thousand pesos
(₱5,000.00) to a maximum of Eight thousand pesos (₱8,000.00) a month for two (2)
months: Provided, further, That the subsidy shall be computed based on the prevailing
regional minimum wage rates: Provided, finally, That the subsidy received from the
current conditional cash transfer program and rice subsidy shall be taken into
consideration in the computation of the emergency subsidy as provided for in this Act.
 Ensure that donation, acceptance and distribution of health products intended to address
the COVID-19 public health emergency are not unnecessarily delayed and that health
products for donation duly certified by the regulatory agency or their accredited third
party from countries with established regulation shall automatically be cleared:
 Provided, That this shall not apply to health products which do not require a
certification or clearance from Food and Drug Administration (FDA).
 Ensure the availability of credit to the productive sectors of the economy especially in the
countryside through measures such as, but not limited to, lowering the effective lending
rates of interest and reserve requirements of lending institutions.
 Liberalize the grant of incentives for the manufacture or importation of critical or needed
equipment or supplies for the carrying-out of the policy declared herein, including
healthcare equipment and supplies: Provided, That importation of these equipment and
supplies shall be exempt from import duties, taxes and other fees.
 Ensure the availability of essential goods, in particular food and medicine, by adopting
measures as may reasonably be necessary to facilitate and/or minimize disruption to the
supply chain, especially for basic commodities and services to the maximum extent
possible.
 Continue to authorize alternative working arrangements for employees and workers in the
Executive Branch, and whenever it becomes necessary, in other independent branches
of government and constitutional bodies, and the private sector.
 Conserve and regulate the distribution and use of power, fuel, energy and water, and
ensure adequate supply of the same.
 Notwithstanding any law to the contrary, direct the discontinuance of appropriated
programs, projects or activities (P/A/P) of any agency of the Executive Department,
including government-owned or -controlled corporations (GOCCs), in the FYs 2019
and 2020 General Appropriations Act (GAA), whether released or unreleased, the
allotments for which remain unobligated, and utilize the savings generated therefrom to
augment the allocation for any item directly related to support operations and response
measures, which are necessary or beneficial in order to address the COVID-19
emergency, consistent with the herein declared national policy. (w) Any unutilized or
unreleased balance in a special purpose fund, as of the date of declaration of a State of
Emergency, shall be considered to have their purpose abandoned for the duration of the
State of Emergency. All such unspent, unutilized or unreleased money or funds sourced
from collections or receipts, including future collections and receipts, shall be utilized
and are hereby appropriated for such measures to address the COVID-19 situation and
accomplish the declared national policy herein.
 Notwithstanding any law to the contrary, reprogram reallocate, and realign from savings
on other items of appropriations in the FY 2020 GAA in the Executive Department, as
may be necessary and beneficial to fund measures that address and respond to the
COVID-19 emergency, including social amelioration for affected communities, and the
recovery of areas, sectors and industries severely affected. All amounts so
reprogrammed, reallocated or realigned shall be deemed automatically appropriated for
such measures to address the COVID-19 situation within the period specified under
Section 9 hereof.
 Move statutory deadlines and timelines for the filing and submission of any document,
the payment of taxes, fees, and other charges required by law, and the grant of any
benefit, in order to ease the burden on individuals under Community Quarantine.
  Direct all banks, quasi-banks, financing companies, lending companies, and other
financial institutions, public and private, including the Government Service Insurance
System, Social Security System and Pag-ibig Fund, to implement a minimum of a thirty
(30)-day grace period for the payment of all loans, including but not limited to salary,
personal, housing, and motor vehicle loans, as well as credit card payments, falling due
within the period of the enhanced Community Quarantine without incurring interests,
penalties, fees or other charges, persons with multiple loans shall likewise be given the
minimum thirty (30)-day grace period for every loan.
 Provide for a minimum of thirty (30)-day grace period on residential rents falling due
within the period of the enhanced community quarantine, without incurring interests,
penalties, fees, and other charges;
Department of Finance (DOF)
Implementing Rules and Regulations of Section 4(aa) of RA No. 11469.
 All covered institutions shall implement a 30-day grace period for all loans with principal
and/or interest falling due within the ECQ period without incurring interest on interest,
penalties, fees and other charges. This period shall automatically be extended if the
ECQ period is likewise extended by the President.
 Non-application of interests, fees and charges are likewise applicable to future payments
and/or amortization of individuals, households, micro, small and medium enterprises
(MSMEs) and corporate borrowers.
 Covered institutions are prohibited from requiring their clients to waive the application of
the Act. Any waiver previously executed shall be deemed invalid. For this purpose, no
additional DST shall be imposed as a consequence of the relief so granted.
Bangko Sentral ng Pilipinas (BSP)
 Memorandum No. M-2020-017 - Implementing Rules and Regulations (IRR) of Section
4(aa) of Republic Act (R.A.) No. 11469, Otherwise Known as the “Bayanihan to Heal
As One Act”
o It mandates all covered institutions to implement a 30-day grace period to all
loans with principal and/or interest falling due within the Enhanced
Community Quarantine (ECQ) period, without incurring interest on interest,
penalties, fees and other charges. The 30-day grace period shall apply to each
loan of individuals and entities with multiple loans.
o Covered institutions shall not charge or apply interest on interest, fees and
charges during the 30-day grace period to future payments/amortizations of
the borrowers. They are likewise prohibited from requiring their clients to
waive the application of the provisions of the Act. No waiver previously
executed by borrowers covering payments falling due during the ECQ period
shall be valid.
o The accrued interest for the 30-day grace period may be paid by the borrower
on staggered basis over the remaining life of the loan. Nonetheless, this shall
not preclude the borrower from paying the accrued interest in full on the new
due date.
The initial 30-day grace period shall automatically be extended if the ECQ period is extended by
the President of the Republic of the Philippines.

*Covered Institutions (for DOF and BSP) shall mean all lenders, including but not limited to
banks, quasi-banks, non-stock savings and loan associations, credit card issuers, pawnshops and
other credit granting financial institutions under the supervision of the BSP, Sec, and
Cooperative Development Authority, public or private, including GSIS, SSS and Pag-ibig Fund.
Commission on Audit – Government Procurement Policy Board (COA-GPPB)
Joint Memorandum Circular No. 1 on Emergency procurement by the government during
a state of public health emergency arising from the Covid-19
 To further support the government's efforts to mitigate, if not contain the transmission of
COVID-19 in the country, the GPPB issued resolutions to simplify and streamline the
Rules on Negotiated Procurement (Emergency Cases) modality, as an exemption to
Public Bidding under RA No. 9184, and enable Procuring Entities to efficiently and
expediently undertake procurement during a State of Public Health Emergency. During
the State of Public Health Emergency declared by the President, Procuring Entities are
allowed to resort to Negotiated Procurement (Emergency Cases) for the procurement of
Goods, Infrastructure Projects and Consulting Services that are directly related to the
mitigation and containment of the transmission of COVID-19, in order for Procuring
Entities to properly and timely respond to this Public Health Emergency.
Securities and Exchange Commission (SEC)
 Notice to Financing Companies (FCs) and Lending Companies (LCs). SEC issued
this notice directing all FCs and LCs to implement a minimum of a thirty (30)-day
grace period for the payment of all loans, falling due within the period of the enhanced
Community Quarantine without incurring interests, penalties, fees, or other charges.
 SEC Memorandum Circular No. 5 on the EXTENSION OF FILING OF THE 201
ANNUAL REPORTS INCLUDING THE APPLICABLE QUARTERLY
REPORTS FOR YEAR 2020 AND 2019 AUDITED FINANCIAL STATEMENTS
(AFS). The Commission grants the following affected companies an extension of time
without penalty, within which to submit the Annual Reports and/or AFS for the period
ended 31 December 2019: (i) For companies doing domestic operations only - an
extension of time until 30 June 2020: and (ii) For companies with domestic and foreign
operations - an extension of time until 30 June 2020 or 60 days from that date of lifting
of travel restrictions/ban by the concerned government authorities, whichever comes
later.
 SEC memorandum circular no. 6 guidelines on the attendance and participation of
directors, trustees, stockholders, members, and other persons of corporations in regular
and special meetings through teleconferencing, video conferencing and other remote or
electronic means of communication .These guidelines provide corporations guidance in
formulating their internal procedures and bylaws which will allow their directors,
trustees, stockholders, members and other persons to participate and vote in meetings in
absentia or through remote modes of communication as defined in these guidelines,
pursuant to the revised corporation code. It also operationalize the objectives of
republic act no. 8792, otherwise known as the electronic commerce act, to facilitate
domestic and international dealings, transactions, arrangements, agreements through the
 utilization of electronic, optical and similar medium, mode, instrumentality and
technology and to promote the universal use of electronic transaction.
 Sec memorandum circular no. 7 guidelines on preventive measures against covid-19 in
the handling of records at the Securities and Exchange Commission. This circular
provides the preventive measures adopted by SEC with regard to (a) requesting for
plain/authenticated copies of SEC documents and (b) filing/submission of reports
and/or other documents to SEC given that all filings at the head office and satellite
offices shall be temporarily suspended until further notice.
 Sec memorandum circular no. 9 on the guidelines for the filing of the general information
sheet (GIS) during the covid-19 outbreak and ECQ. This circular provides guidance on
the matters related to the filing and supposed contents of the GIS during the
implementation of the ECQ.
 Sec memorandum circular no. 10 guidelines on submission by electronic mail of gis, afs,
forms and documents required under existing laws, rules and regulations, and
recognition of electronic signature. Pursuant to and in compliance with the guidelines
on the ECQ, SEC will accept electronic copies of the GIS, AFS and all other general
and special forms and letters subject to specific guidelines set forth in this circular.
Such documents should contain an electronic signature as defined under the electronic
commerce act of 2000. The commission shall thereafter require physical copies of
required reportorial submissions according to established rules and regulations once the
state of public health emergency has been lifted.
 Notice to investment companies, registered issuers of proprietary and non-proprietary
shares/timeshares public companies, financing companies, lending companies,
foundations, accredited microfinance ngos and publicly-listed companies under the
supervision of corporate governance and finance department (cgfd). Sec suspends the
daily and monthly monetary penalties (cumulative penalties), as may be applicable,
imposable on investment companies, issuers of proprietary and non-proprietary
shares/timeshares, public companies, lending companies, financing companies,
foundations, accredited microfinance ngos and publicly-listed companies under the
supervision of the cgfd (covered companies), from 13 march 20201, until the ecq period
is lifted by order of the president.
Insurance commission (ic)
 Circular letter no. 2020-20 on the filing of 2019 annual statements (as) / 2019 audited
financial statements (afs). This circular provides that ic will accept filing of regulated
entities’ 2019 as and/or 2019 afs (including their required attachments) until 01 june
2020 without imposing penalties for late submission
Inter-agency task force issuances
 A 30-day grace period has been extended to commercial rents falling due upon msmes
within the period of ecq without incurring interests, penalties, fess and other charges
subject to the guidelines to be issued by the department of trade and industry.
 It is a perfect storm for millions of the poor in the country. They have to face the health
and humanitarian catastrophes brought about by COVID-19 and the inefficiency of the highest
degree of the government services highlighted by the pandemic. The people have been seriously
affected by tsunami of sufferings and anxieties like in no other time. They are the ones being
suppressed by the civil and military apparatus of the Philippine government. Too bad, the people
could not hold these irresponsible people who have failed to timely and regularly give them the
aid package while they are forced to stay-at-home. And worst, they are the ones used to justify
the de facto military rule in the country. It would be like the best defense of an Administration
who has not prepared the country and its peoples for the unstoppable arrival of a pandemic
including the socio and economic impacts. And yet they are also used as a convenient escape for
not delivering its basic constitutional duty to ensure the health and welfare of the people with full
respect of their human rights.

But the picture can also portray that the COVID19 pandemic strongly impacting the
world in all its aspects has conveniently provided the authoritarian/rightist governments in the
world to govern their respective countries and control the social unrest triggered by the health
disaster which has morphed into economic catastrophe. Such governments have crafted laws and
rules using the pandemic COVID 19 but seem to create conditions that the poor could really and
hardly follow and therefore would prefer to violate the rules on social distancing and stay at
home policies to solve the hunger problem of their families. In the name of their safety against
the virus they are suppressed and controlled. The people’s reaction to such suppression will be
the basis for stronger authoritarian grip and less democratic governance.

Indeed, with COVID19 becoming a great equalizer where a playing field has been
leveled up, those who are now the new favored elite can have a bigger advantage at the expense
of not only the old oligarch but most especially the toiling masses in the country. With another
extension of the lockdown in the country and where it is still far from the cusp of limiting much
more defeating the COVID19, the current situation has intensified the country’s crisis.

In addition, the RA 11464 or the law which says that Bayanihan is needed for the nation to
HEAL AS ONE is becoming unreachable unless the country and the people should first ACT AS
ONE. Having enhanced quarantine can only be bearable if the social amelioration fund and aid
package can be proportionately enhanced as well. The effort should be done together with
aggressive testing so as to locate and identify the COVID-19 carriers so that they can be isolated
and cured.

Success can never be a coincidence; its formula can be a combination of efforts by

medical professionals including all the front liners, government, private sectors and the society at
large. This is a sure step of seriously strengthening the armor of our defenses against the
COVID-19. This is also putting flesh to the belief that human capacity to overcome whatever
challenges when working together is simply limitless.

While the 2nd extension is about to start, we should brace ourselves with the next
extension and the best way to prepare for such endeavors is to expose and prosecute those who
committed the criminal neglect of not implementing the COVID-19 Social Amelioration
Program.