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MANILA – To help micro, small, and medium enterprises (MSMEs) continue their operations amid the challenging business environment, the Philippine Chamber of Commerce and Industry (PCCI) appeals to landlords to provide rent relief for stall and store lessees.
In a statement Thursday, PCCI president Benedicto Yujuico urged landlords and MSME lessees to negotiate on rents that will not negatively affect the capital expenditure of the property owners.
“While we understand all businesses are experiencing financial difficulties, for MSMEs, these difficulties could be insurmountable,” Yujuico said.
He proposed that lessors can reduce rental rates “in exchange for a percentage of sales of their MSME tenants” until the time that tenants are able to meet their contractual obligations.
Aside from helping struggling MSMEs to become viable again, Yujuico said their spaces will not be vacant and they can still earn from a trusted tenant rather than taking new tenants “who have not proven themselves”.
“Sales have plunged to their worst in decades. There has been a cascade of store closures and jobs losses. The persistence of low consumer confidence and limited public transportation and mobility is making it difficult for enterprises to recoup their operational costs to be able to pay the rent on top of the utilities and their workers,” he added.
Although the government has prioritized MSME lenders in government-owned financial institutions like Small Business Corp. and Philippine Guarantee Corp. while relaxing banking rules for MSMEs, the PCCI chief said “more effort is needed to nurse MSMEs back to health”.
With this, more businesses will survive and more jobs will be saved, he added.
“To be effective in alleviating the difficulties of our small enterprises and to sustain their recovery in the medium and long terms, we need a whole-of-society approach. It is in this regard that we are appealing to mall owners and commercial building landlords under the Bayanihan spirit as embodied by the Bayanihan to Heal as One Act,” Yujuico said.