Jose Maria “Joey” Concepcion III, Go Negoyso founder and private sector lead for jobs, strongly called for a strict implementation of a work-from-office (WFO) set up to support above six percent GDP growth, warning that if mobility is further curtailed under the work-from-home arrangement (WFH) this would certainly lead to lower domestic economic growth.
“I would really encourage that to stimulate economy we have to encourage more mobility … otherwise this less mobility will lead to very weak consumer spending and that will lead to lower growth for the Philippines,” said Concepcion during a Public Briefing in Malacanang on Monday, Aug. 21.
Concepcion said if companies will continue with work from home (WFH) system there will be less mobility and less consumption in the end because there will be lesser demand for Angkas, Joyride, buses and jeepneys. This means lesser people eating outside and lesser shopping for clothing.
“Work from home is okay during the pandemic period,” he pointed out but with pandemic not much of a threat “we should work from office and that is part of discipline also.”
Concepcion further noted that the private sector is not looking at 4.3 percent growth rate but rather targets for six percent and above.
He said that that such growth is supported by new investments coming in from President Marcos state visits.
Another source of growth is the micro small and medium enterprises (MSMEs) sector, the largest job generator. He said that if the economy grows, MSMEs will definitely benefit. He also noted that following the move of the US to reduce its interest rate, consumer goods prices are also expected to go down, fueling even higher growth in consumption.
He noted that the condonation of loans in the agriculture sector should be able to help MSMEs. He called for farmers to group together in cooperatives and collaborate with the private sector, which can play a big-brother to the farmers to accelerate their growth.
Another job booster is the creation of the Philippine Shipping Registry to make Manila part of the global logistics hub.
Another source of economic growth is the electric vehicle sector as the Philippines has huge nickel mineral deposits. Although the idea of EV battery production and EV assembly is long term, he sees the huge growth. In fact, he said, demand for EVs and EV battery is growing rapidly globally. This would eventually mean reduced cost as economies of scale is achieved.
With the fast approaching fourth quarter, the most important for business and for MSMEs, Concepcion expressed confidence the economy is moving towards achieving higher growth.
“The central bank, hopefully will not raise rates anymore and if inflation gets muted further down … MSMEs can borrow as they need capital. But I am very optimistic that because of the consultative process, the private sector is helping the President with ideas and I can see greater collaboration between the government and private sector. I think we will have good year,” he concluded.