For more than four (04) decades now, I call Makati City home and myself a proud Makatizen (that’s what citizens of the city are called). Many of my friends and colleagues residing outside of my hometown envy us Makatizens for how efficient and generous the local government unit (LGU) is to their constituents – something I normally refer to as “taxes working for you” and #GanitoKamiSaMakati.
Known as the financial center of the Philippines, this first-class highly urbanized city in the National Capital Region (NCR) is home to more than half a million people (according to the 2020 census), with its daytime population increasing to more than a million – a large number of people coming into the city for work, business, and shopping.
As the COVID-19 pandemic hit the country in 2020, Makati City showed other LGUs in the country how to properly use technology to send aid (popularly called “ayuda” in the vernacular) to its constituents in an organized and timely manner.
As early as 2017, the city government launched the country’s first multipurpose card that can be used as both debit and social card under a public-private partnership with Globe Telecom’s G-Xchange, Inc. and iBayad Online Ventures. Called the Makatizen Card, each card is linked to a GCash mobile wallet number that allows users to purchase goods, send or receive money, and pay bills on-the-go.
“Makati became the first local government in Metro Manila to implement the contactless distribution of cash aid to Makatizens during the hard lockdown in 2020 using the Makatizen Card's GCash feature. During the pandemic, Makati implemented online tax payments through Maka-Connect or the Makatizen Online Assessment and Payment Portal to prevent crowding at City Hall and curb the virus' spread. Residents and business owners can also use the bank transfer feature of GCash to pay their taxes,” according to Makati City Mayor Mar-len Abigail “Abby” Binay.
At the onset of the first ECQ (Enhanced Community Quarantine) in 2020, I, as a taxpayer of the city, received some “ayuda” from the LGU to the tune of PHP5,000 credited to my GCash account after filling up an online form via makatulong.com.
Presently, by virtue of City Resolution No. 2020-023, individuals and businesses may pay their real property and business taxes online via the Maka-Connect or the Makatizen Online Assessment and Payment Portal (https://makationlinepayments.com).
“The Makatizen App, the country's first digital citizen app, was also updated during the pandemic to include a new feature. The Reopen Business button was created for business owners who want to register online and resume operations during the pandemic,” added by Mayor Binay.
With residents of the city restricted from leaving their homes, the “Makatindahan” feature of the city’s Makatizen App was added. With just a tap, users are directed to an online marketplace that provides fresh meat, seafood, vegetables, and other goods, with free delivery for a minimum order of PHP500. Of course, one may opt to pay using their Makatizen Card connected with their GCash accounts for a seamless online experience.
Ease of Doing Business in Makati City
One of the common questions I receive from colleagues thinking of having their online startups: “How easy is it for an electronic commerce (eCommerce) startup/company to register their business in Makati City?”
The registration for new businesses in Makati City is easy and fast, provided that the applicant has all the requirements, especially the locational clearance. For face-to-face application at the ground floor of the Makati City Hall Building II (“Business One-Stop-Shop” – BOSS), the business permits application processing normally takes only about 45 minutes.
The city does not impose additional requirements or special permits for eCommerce businesses and companies, since they are considered common retailers and traders, and the only difference is that their goods are sold online and delivered to customers.
Forward-looking, under the Makati Comprehensive Land Use Plan (2019-2025) paved the formulation of the Micro, Small, and Medium Enterprise Development Plan, which is considered as a top priority of the LGU in response to Makatizens’ growing reliance on electronic marketing, this plan will highlight and integrate eCommerce into MSMEs.
The Makati City government will soon be adding more features to the Makatizen App to streamline various processes at city hall. Development works are underway for the enhanced Business Permit and Licensing system (e-BPLS) -- a computerized system that will provide easy access to business permits through different platforms.
The Rise of MSMEs During this Pandemic
According to the Philippine Statistics Authority (PSA), 99.51% of the country’s 957,620 business enterprises as of 2020 are considered micro, small, and medium enterprises (MSMEs).
Siblings Jorell (who used to write scripts for a film studio and television production company) and Angelica Gonzaga (a former ground stewardess at the airport) decided to open their own business in December 2020. Jorell resigned from his daytime job, while Angelica got retrenched during the height of the ECQ.
They saw an opportunity to be the boss of their own business and join the ranks of MSMEs doing eCommerce in Makati City by turning their love and passion for good beverages to launch All-Nighter Coffee.
With the help of their parents, the family’s sari-sari store space was renovated and divided to host two (02) MSME businesses.
All-Nighter Coffee offers espresso-based coffee, iced blended drinks, and non-coffee beverages, and is currently picking-up popularity on social media. Thanks to the eCommerce platforms like GrabFood and foodpanda (and now via their own website), they now have loyal customers coming from as far as Fairview, Quezon City (while their shop is based in Pio Del Pilar, Makati City).
According to these young, first-time entrepreneurs, they find the local government to be MSME-friendly as they did not encounter any difficulties securing the necessary permits and licenses required for them to operate their business.
All-Nighter Coffee is just but one of the many MSMEs in Makati City trying to leave their mark and succeed in their chosen craft with the help of technology – eCommerce.
But, the adoption of eCommerce as the new norm of doing business is not limited to yuppies and first-timers. I bet, you may have heard about the jollijeep (how people call the food trucks at the commercial business districts of the city) known as “Sisig sa Rada” -- perhaps the best sisig this side of the metropolis located at Rada St. in Legazpi Village -- and how their sales increased by PHP2M when started selling online via GrabFood in 2020. They are living proof that for a business to survive, especially at times of uncertainty, the adoption of eCommerce is key.
I personally look forward to the different programs the city government of Makati has in store for its constituents and MSMEs as we all try to ride the wave of this pandemic and adopt the new normal in the digital age through eCommerce.