Filtered By: Topstories

Koko Pimentel bats for 50% reduction on rental rates of MSMEs to spur economic activity

Commercial lessors should consider reducing the rental rates of micro, small, and medium enterprises (MSMEs) in the country to help them get back on their feet amid the pandemic, according to Senator Aquilino "Koko" Pimentel III.

"I am appealing to all kind-hearted landlords to help our MSMEs in combating the economic effects of the pandemic. It would be a great relief to our small businesses if we lower the rate of their monthly rentals by up to 50 percent," Pimentel said in a statement released Thursday.

"Marami na ang nawala sa kanila at malaki na rin ang nalugi nila. Tulungan naman po natin silang makabangon pa," he added.

The chairman of the trade and commerce committee in the Senate underscored that some mall operators have waived the rental fees of their tenants during the months covered by the enhanced community quarantine.

Despite eased restrictions, he said many small businesses are still afraid of reopening because they project that their revenues would not even cover the amount of their rents.

"Our MSMEs comprise a whopping 99.52% of all businesses in the country. If we want to revive our economy, let us give life to our MSMEs again. They need to reopen to provide employment to our kababayans," Pimentel said.

Citing data from the Department of Trade and Industry, the senator said the lion's share of MSMEs in the country are located in the National Capital Region with over 203,000 establishments.

Calabarzon follows with more than 148,000 MSMEs, and Central Luzon with 116,000.

All of these regions are in Luzon which has been placed under an enhanced community quarantine since March 17. A moratorium on payment of commercial rents has also been implemented by the government.

The confinement measure in different parts of the country has since been eased at varying levels depending on the risk of COVID-19 transmission.—AOL, GMA News