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COVID-19 Report: Philippines
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The Trend, Impacts, and Post-COVID19 Challenges:
Philippines

Graduate School of Public Administration
Asia Regional Information Center, Asia Center

Seoul National University

Contributor:

Kilkon Ko (kilkon@gmail.com), Professor, GSPA, SNU

Augustus Lito M. Narag (augustus2019@snu.ac.kr), Department of Social Welfare and Development, Philippines

Kara Denise O. Calansingin (kara2019@snu.ac.kr), Department of Foreign Affairs, Philippines

Christine Joy O. Mamuyac (christine2019@snu.ac.kr) , National Economic Development Authority, Philippines

This work is sponsored by the Asia Regional Information Center, SNU Asia Center


Introduction

        The pandemic on COVID-19 has undeniably swept across the different countries in the world. No matter what the economic and social characteristics of these countries are, not a single one was spared by the continuous spread of the virus. COVID-19 respected no territorial boundaries, no political ideologies and religious affiliations, no economic health, among others. It was just a matter of time until all countries were affected by it, and the rest is already history as countries had to grapple with the growing uncertainties. The rate of progression may vary, but the impact it made and continually making had indeed drastically challenged the social order. It was just a matter of time- the normalcy of living had been abruptly disrupted. Fundamental changes in the political, social, economic and cultural order became inevitable if only to survive, to exist and to co-exit.

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Uncertainties remain hanging in the balance. Various experts and observers are projecting the unprecedented repercussions to the society at large. The normal social order we once familiar with had become a thing of the past. The pandemic ushered in a “New Normal” drastically altering the landscape on politics and public governance, business and trade, society and culture, education.

This report documents the description and analysis of the  progression of confirmed, new and recovered cases, including fatality rate. It briefly enumerates the policies and responses of the Philippine government in responding in containing the pandemic and mitigating its impact to health, social welfare, labor and employment, local governance, education, foegin affairs, transportation, economic, finance and communication. It discusses both the perceived and actual impact of COVID-19 to the Philippines. Finally, it described the emerging challenges that the Philippine government has to confront post-covid, with the establishment of “New Normal” to daily realities of the country.


The Trend of COVID-19

        The statistical data on COVID-19 in the Philippines facilitates the development of  policy responses, implementation of  program interventions, allocation of financial resources to indeed detect, monitor, treat and respond to the uncertainties and threats of the viral infection.With the availability of the epidemiological data, it guides different actors from the government to the non-government sectors in developing and designing strategies and mechanisms to contain the further spread and address both the political, social, and economic repercussions

This section provides a picture on the progression of confirmation, new cases, recovery and fatality of COVID-19 since January 2019.

Trends of Confirmed Cases

Figure 1: Trends of Confirmed Cases in the Philippines

Based on the epidemiological data of the confirmation of COVID-19 cases in the Philippines, the first case was confirmed on January 30, 2020 and was characterized as imported. The succeeding imported two cases were detected on February 3 and 5, where one had died during the interim period of hospitalization. These three cases were Chinese nationals who visited the Philippines, and had a travel history from Wuhan, China, the epicenter of the COVID-19 virus.

Considering the proximity of the Philippines to China, the efforts of the government to contain further infection appeared to be successful from February 5 to March 4 as no new confirmed cases had been reported. The foreign policy of travel ban to and from China and some areas of South Korea were perceived initially as a success factor in containing the spread of the infection.

However, the first case of local transmission was confirmed by the Department of Health (DOH) on 07 March 2020 after verification with the Bureau of Immigration showed that the patient had no recent travel history. DOH also reported that the patient’s wife tested positive for COVID-19 after contact tracing activities were prompted (DOH, 2020). The number of confirmed cases has increased rapidly since then. According to the DOH, due to intensified case investigation, contact tracing, and surveillance, analysis has found presence of localized transmission and clustering of cases in the country (WHO, 2020). Further, the DOH stated that the surge in COVID-19 cases in March was due to the country’s increased testing capacity led by the Research Institute for Tropical Medicine (RITM) and bolstered by several sub-national laboratories that recently became operational (GMA, 2020).

As shown in Figure 1, confirmation rate peaked at two points, where cases increased significantly. The first was on February 3 upon confirmation of the Chinese companion of the first PH. The most crucial peak took place on March 9 where 24 new cases were detected, representing 140% increase rate. Such abrupt increase of confirmed local transmission had prompted the draconian move of the Philippine government to place the National Capital Region (NCR) on a community quarantine. The month of March had a confirmation rate ranging from 1.43% (March 16) to 140% (March 9). The second highest peak was recorded on March 14 at 73.44%. This had been the empirical basis for placing the entire Luzon area under Enhanced Community Quarantine. From the period of March 21 to 31, there had been a number of consistent spikes of confirmation rate at 30% as the Department of Health had already caught up with its backlogs on testing COVID-19 samples.  Reportedly, the Research Institute for Tropical Medicine was the only facility with the absorptive capacities to undertake COVID-19 testing. With more samples being sent on a daily basis since the start of March from the different hospitals in the Philippines and the scarcity of available testing kits, the laboratory had the difficulty of releasing results in a timely manner. By the latter part of March, more testing kits were made available through procurement and donation from other countries such as China and South Korea, the Philippines then was able to increase its testing capacities and expanded the diagnostic test to other accredited laboratories in the country.

By April, the confirmation rate had seen a downward trend, with a sudden increase observed at four days during the first week. As observed in the first weeks of April, confirmation rate peaked on April 3 at 14.62%, on April 2 at 13.93% and on April 1 at 10.89%. The other spike was observed on April 6 at 12.75%. For the rest of the month, the confirmation rate ranged from 1.42% (on April 25) to 6.11%. (on April 6)

In terms of cumulative increase in absolute numbers, the first three confirmed cases were reported from January to February. As the local transmission has been detected in March, an increase of confirmed cases has consistently been observed. Confirmed cases were 140 at the middle of March, compared to the 4 cases in early March upon detection of local transmission. By the end of March, confirmed cases were recorded at 2,084. With more laboratories undertaking COVID-19 testing, cases totaled to 4,428 for the first week (April 11). Additional cases of 1,659 were confirmed by April 18, leading to a cumulative total of 6,087.

The lockdown policy of the country proved to be gaining traction as demonstrated by the decreased of percentage of case in March. Since then, the rate averaged at within 10%. While the absolute number continues to increase, yet the percentage is not as high compared to the early part of the local transmission. Accordingly, the rise in cumulative statistics is also attributed to the increased absorptive capacities of the Philippines in administering COVID-10 test, thus expanding its coverage on detection of new cases.  

Unfortunately, when the government started to transition the country from strict community quarantine into a more relaxed policy, it is observed that starting May 15 to June 1, there is a stead increased in percentage and even higher than the rate in April 16. When the quarantine was slowly eased, some people living in the epicenter of the virus were allowed to return to their respective provinces/ residences. Reports indicate that these residents unfortunately during their return in their respective residence were carriers of the infection, placing the municipality/ province where they reside recording new cases (after a month-long of zero new infection).  If the rate continually increase it may serve as an empirical evidence for another form of stricter lockdown to indeed flatten the curve.  

As of June 15, 2020, the Philippines has 25,930 individuals who turned positive for COVID-19 test.

Trends of New Cases

Figure 2. The trend of new cases

Figure 2 represents the total number of new cases (in absolute numbers) on a daily basis from January 30 to April 29, 2020.  The most number of new cases reported in a day was seen on March 31 with 538. These were by 414 cases on April 6; 385 on April 3; 343 on April 29; and 322 on April 2. As observed, the highest numbers of reported cases on a daily basis were observed between March 28 to April 6.

For the month of March, the lowest confirmed case took place on March 7 with 1 additional case. Furthermore, there are other 5 days where confirmed cases were below 10, namely: March 6 and 16 at 2; March 12 at 3, March 8 at 14, and March 10 at 10. From March 12 to March 27, the daily confirmed cases ranged from 12 to 102. However, starting March 28, confirmed cases reached at 267, and had its highest confirmed cases on March 31 at 538.

For April, only April 4 recorded with confirmed cases below 100, while April 6 had the most number at 414 cases. Since April 6, the confirmed cases on daily basis ranged from 104 (on April 7) to 291 (on April 14).

As explained in Table 1, the easing out of the community quarantine in May 15 accounts for the increasing trends of new infections in the Philippines.

Trends of Active Cases

Figure 3. The trend of active case

Figure 3 shows the statistical progression of the recovery of cases vis-à-vis the active cases. With the 8,212 confirmed cases, 473 cases died, while 644 cases were reported had recovered. This only represents a cumulative recovery rate at 8%. In the early part of the pandemic, two of the first three imported cases had recovered. When local transmission began in march, recovery rate was at 50%, however this plummeted to 3% by middle of March as more cases had been confirmed each day. By the end of March 111 cases had recovered, out of the 1,811 reported active cases.

An increase of 2% was observed from the previously reported 8% recovery rate by April 15. This represented 489 recovered cases out of 4,789 active cases.

By the end of April, there are 7,739 active cases with 644 recovery and 473 deaths. As shown, the recovery rate in the Philippines is rather slow. Indeed, efforts must be continuously undertaken to flatten the curve and reduce new confirmed cases on a daily basis so as not to overwhelm or overstretch the absorptive capacities of the existing health facilities of the Philippines in the clinical management of COVID-19 patients

By June 15, there are  18,888 active cases, while 1,088 died and 5,494 had recovered.

Trends of Fatality Rate

Figure 4  The Trend of Fatality Rate

Figure 4 shows the trends of the fatality rate of COVID-19 cases cases in the Philippines. As of April 30, 2019, the Philippines had reported 473 deaths. This represents fatality at 6.25% of the confirmed cases.

During the onset of the infection in the Philippines, fatality peaked at 50% as one of first two imported cases died. On February 3, this went down to 33% upon confirmation of the 3rd imported case. Such a fatality rate remained for one more month. Upon confirmation of increased number of local transmissions by early March, the downward trend has been observed. It peaked 20% by March 6, and continuously plummeted up to 3.03% by March 10. This is the lowest ever recorded fatality rate, which is the average fatality rate of the World Health Organization (WHO). However, it started to slowly increase by the third week of March, and eventually decreased by last week of March.

Since April, the fatality rate slowly decreased and eventually averaged between 5% to 6%.  To date, the Philippines had 1,088, representing 4% death rate. The measures institutionalized by the government to strengthen the health system contributed in the decrease of the individuals dying from the infection.


Controlling COVID-19 by Different Actors

The Philippines has gained traction toward disaster resilience since the Super Typhoon Yolanda (Typhoon Haiyan) in 2013. The unimaginable destruction tainted the competence and capacities of the government to respond to massive natural disasters. Fundamental administrative reforms were institutionalized that brought to the conceptualization of new normal in the delivery of public services to address the situation where the weather patterns have changed and the natural events becoming bigger, stronger and harder. Unfortunately, the significant progress towards more efficient and effective disaster preparedness and response was inadequate to systematically and strategically equip the bureaucracy in addressing a pandemic. The pre-conception of new normal and the resilient measures instituted thereafter pale in comparison to the bureaucratic challenges as a result of the spread of COVID-19 in the Philippines. As the pandemic spread among the public, preventive and control measures and responses became a steep learning curve. Indeed, another administrative reform is inevitable, and it incrementally progresses as it muddles through the uncertainties and difficulties.

The Philippines adheres to multi-sectoral collaboration and centralization in establishing preparedness and ensuring efficient government response to assess, monitor, control and prevent the spread of any potential epidemic in the Philippines. The Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases was created by virtue of Executive Order No. 168, series of 2014. IATF is composed of Cabinet Secretaries from Department of Health (DOH), Department of Foreign Affairs (DFA), Department of Interior and Local Government (DILG), Department of Justice (DOJ), Department of Labor and Employment (DOLE), Department of Tourism (DOT) and Department of Transportation and Communications (DOTC). As the demand for COVID response has become complex and overburdened. IATF eventually restructured itself on March 24, 2020 (IATF, 2020g) by creating the National Task Force – COVID 19. It has to expand its coverage and increase its responsiveness, swiftness and efficiency in containing and mitigating the spread of the virus and in facilitating the detection, identification and isolation of COVID-19 carriers. IATF served as the policy making body of the operations NTF COVID-19 served as the operational command headed by the Secretary of the National Defense. National Incident Command took charge of the day-to-day concerns and operations in the fight against COVID-19 pandemic. Task Group on Response Operations is led by the Department of Health with support from other national government agencies to address enforcement and security, food security, disaster risk management, and labor issues, among others Task Group on Resource Management and Logistics ensures that critical needs of all concerned agencies are addressed and provided. The Task Group on Strategic Communication is in charge of communications. The Office of the Civil Defense is the main coordinating body for all domestic donations relative to the management of COVID-19, while international financing donations are evaluated and decided on by a technical working group composed of DSWD, OCD, DILG, DBM and DOF. Regional inter-agency task force (RIATF) for COVID-19 responses were also established in all of the regions in the country (IATF, 2020d). At first, these RIATF simply monitors and reinforces national policies, but is later given discretion to decide on matters that are unique to their respective geographical areas.  

From a highly centralized policy and direction setting by the national government, this has slowly eventually transitioned to local government unit-led and people centered-approach. Beginning May 16, 2020, all decisions to impose, lift, or extend community quarantine in provinces, highly-urbanized cities (HUCs), and independent component cities (ICCs) still rest with the IATF (IATF, 2020g). However, the Local Chief Executives of provinces/ municipalities/ cities shall be authorized to impose, lift or extend Enhanced Community Quarantine in component cities, municipalities and barangays upon the concurrence of the relevant regional counterpart of the IATF (IATF, 2020r).

On the onset of COVID-19 in the Philippines, policy response is characterized as slow, passive and reactionary.  This is attributed by the insufficient knowledge on the nature and magnitude of the virus and the lack of effective policy responses to benchmark from. The Philippines lagged behind in testing, as swab samples had to be sent abroad, specifically to Australia and Japan, for the confirmatory results. Abrupt foreign policy on restricting inbound and outbound travel to and fro China was not a viable measure as it potentially impairs the diplomatic relationship of the Philippines and China. Both the national and local governments failed to strategically anticipate the worst-case scenarios with the assumption that the mitigation and response measures for Severe Acute Respiratory Syndrome (SARS), Middle East Respiratory Syndrome (MERS), Highly Pathogenic Asian Avian Influenza A (H5N1) virus are sufficient and robust enough for the COVID-19. However, the appropriateness of the early COVID-19 responses lasted only for a month. The measures that worked from the previous pandemic became completely outdated and inappropriate as the Philippines recorded its local transmission in March 2020.

The declaration of a State of Public Health Emergency on March 8, 2020 (OP, 2020c) recognized that COVID-19 as a threat to national security which requires a whole-of-government response- the collaborative efforts of all concerned government agencies and local government units (LGUs). Initially, social distancing measure was adopted, and mass gatherings of people, either planned or spontaneous events (ie. movie screenings, concerts, sporting events, and other entertainment activities, communities’ assemblies, non-essential work-related gatherings and religious gatherings (IATF, 2020s), were temporarily prohibited (IATF, 2020b).

Confronted with the limited absorptive capacities of the health care system for mass testing, and treatment, increasing number of health care providers infected with COVID-19, and the high infection rate, the Philippines resorted to a draconian measure, as adopted by China in Wuhan.

Two variations of lockdown were devised as COVID-19 policy responses. The Enhanced Community Quarantine (IATF, 2020d) enforced strict home quarantine to all households. All forms of transportation were suspended. Provision for food and essential health services was regulated; and heightened presence of uniformed personnel to enforce quarantine procedures was implemented. General Community Quarantine (IATF, 2020d) entailed limited movement of people limited only to accessing basic necessities and uniformed personnel and quarantine officers were present at border patrol.

The National Capital Region (NCR), the center for all vital operations and activities, had been placed under Enhanced Community Quarantine (ECQ) where movement of people outside of their homes were absolutely restricted except for purchase of basic necessities (IATF, 2020e). However, prior to the implementation of the ECQ was in effect in Manila, a significant number of people had rushed to leave NCR to return to their respective provinces. This had eventually prompted the national government to extend the lockdown to the entire Luzon areas (the largest island in the Philippines and which comprises seven (7) geographic regions (IATF, 2020e). ECQ was enforced initially until April 12, 2020. However, this was extended until April 30, 2020 (IATF, 2020k). To further capacitate LGUs in the preparation and response efforts, and more importantly to mobilize public funds efficiently and judiciously during the ECQ, the President issued Proclamation No. 929, series of 2020, declaring a State of Calamity throughout the Philippines for a period of 6 months (IATF, 2020f).

As COVID-19 has placed so many demands on the government, it became apparent that massive realignment of funds for the fiscal year must be done. Funds allocated for various programs, projects and activities of the different national government agencies needed to be recalibrated to finance the unexpected impact of the pandemic. However, the power of the purse and government authorization rest on the Legislative. Despite the travel restrictions and stringent social distancing measures, the Legislative convened to authorize the President to exercise powers that are necessary to carry out the tasks needed to mitigate, if not contain, the transmission of COVID-19 and its adverse effects to the lives of the Filipinos. On March 24, 2020, the Republic Act (RA) No. 11469 otherwise known as the Bayanihan to Heal as One Act” was enacted.

The chaos of the pandemic, characterized as a public health emergency, requires well-coordinated measures guided by a comprehensive plan to indeed contain the spread of the COVID-19 and to mitigate its impacts to society. It requires a whole-of-government and whole-of-society approach in addressing the challenge. The following are the bold actions undertaken across different sectors to address the threats and repercussions of the pandemic.

 

Health

The Philippines scaled up its prevention and control responses when it hoisted a Code Red Level Sublevel 2 (IATF, 2020c) since there was evidence of community transmission and projected prevalence of cases beyond what the government can address.

The demands for testing and contract tracing showed as critical factors in controlling the further spread of the infection. Testing capacities improved as confirmatory results were already handled domestically through the Research Institute for Tropical Medicine (RITM) only. The DOH, with the aid of law enforcement agencies formed composite teams to ensure contract-tracing and containment measures in all parts of the country (IATF, 2020d).

Challenges were confronted at the early phase of the COVID-19 response in the Philippines. Healthcare providers were exposed due to lack of supply of Personal Protective Equipment (PPE), concealment of travel history and contact exposures of the patients, lack of available transportation in reporting to the health facilities among others. As the health care providers were compromised, notwithstanding a number of them who were infected and/ or expired, this increased the strain in various hospitals with the increased influx of confirmed and/ or suspected cases.  

The policy of mandatory public disclosure of personal information and movements had been adopted (IATF, 2020m). This facilitated a more-focused and directed effort in tracing the movement and contact of the COVID-patients and required immediate mandatory home-quarantine to contain the infection for the contacts.

Expedited procurement for PPEs was authorized in a State of Public Health Emergency as declared by the president. Rules on negotiated procurement modality were simplified and streamline to properly and timely respond to the public health emergency.

To address problems on transportation of health care workers, special accommodations were arranged in hotel establishments or other housing facilities in close proximity to their respective places of work (IATF, 2020e). Furthermore, a system of point-to-point transport services was scheduled and established to ensure their safety and convenience (IATF, 2020e).

Considering the great exposure to health risks and physical hardships, the government authorized the grant of a one-time COVID-19 risk allowance, equivalent to a maximum of 25% of monthly basic salary/ pay to public health workers (PHWs) (OP, 2020b). Moreover, all medical expenses of public and private health workers in case of exposure to COVID-19 or any work-related injury or disease during the duration of the emergency were shouldered by the government through the Philippine Health Insurance Corporations (PHIC). These workers were provided compensation of one hundred thousand pesos (PhP 100,000) for having contracted with the infection while on the line of duty or a compensation of one million pesos for those who died while fighting the COVID-19 pandemic ("Bayanihan to Heal as One Act of 2020," 2020).

Confronted with the increasing COVID-19 cases and limited supply of healthcare workers to assist in the local healthcare system, a special authorization for the limited practice of medical graduates was adopted as a last resort mechanism and shall only be effective for the duration of the State of Public Health Emergency in the Philippines (IATF, 2020i).

The growing fear of the pandemic had developed adverse emotional and psychological reactions from the public. Acts of discriminations were inflicted upon health care workers, OFWs, COVID-19 cases, whether confirmed or suspected, recovered or undergoing treatment, as well as Patients Under Investigation (PUI) and Persons Under Monitoring (PUM). As a response, the government enforced criminal, civil or administrative liabilities on acts in relating  discrimination, such, but not limited to, coercion, libel, slander, physical injuries and the dishonor of contractual obligations such as contracts of lease, or employment shall be dealt with criminally, civilly, and/ or administratively. Local Government Units were enjoined to issue necessary executive orders and/ or enact ordinances prohibiting and penalizing these discriminatory acts (IATF, 2020j).

The Philippine Health Insurance Corporation (PhilHealth) assured the public that it is committed to pay benefits due to all COVID-19 patients for testing and treatment. To help cover the cost of treatment, patients can make use of their existing Health Maintenance Organizations (HMOs) or private health insurance as well as mandatory discounts such as senior citizens and PWD discount, if applicable, to substantially cover treatment cost. However, for those who do not have the means and even those whose financial capacity is compromised, PhilHealth assured that more additional support was applied. The Philippine Charity Sweepstake Office (PCSO) was directed to transfer PhP 420,585,000.00 to PhilHealth as additional funds to cover COVID-19 related hospitalization packages of PHIC (IATF, 2020g). To facilitate claims for hospitalization of COVID-1 patients, health maintenance organizations (HMOs), Philhealth, and health insurance providers were considered as part of the health frontline services. This policy allowed the employees to report to work and had been exempted in the implementation of the not reporting to the physical office during the Enhanced Community Quarantine (IATF, 2020j).

Policies were also adopted in handling the remains of COVID-19 cases, general infection procedures were strictly observed to further avoid further spread of the disease. LGUs designated funeral service facilities to handle the remains of COIVD-19 cases and to provide financial assistance to cover the logistics, fuel, salary and other expenses incurred in the process (IATF, 2020g).

The Philippine’s expedited and streamlined the accreditation of testing and facilitated prompt testing by public and designated institutions of PUIs and PUM, and the compulsory and immediate isolation and treatment of patients. To date, the Philippines has a national testing capacity of 30,000 tests a day. However, actual tests run by the government daily ranged up to 10,000 only.

 

Social Welfare and Development

The sudden decrease in the economic activities of the country took a huge toll to the population. This abrupt economic change made it difficult for families who had no sufficient savings and sustain their daily needs on their wages. Workers from the informal sectors, small-and-medium enterprises, who are of temporary nature, had lost their productivity and income. Many Filipinos were counting on the government for financial help.

A cash-transfer policy, called Social Amelioration Program, was approved by the Legislature and authorized the Department of Social Welfare and Development (DSWD) to provide outright cash benefits for an estimated 18 million beneficiary households, ranging from PhP 5,000 to PhP 8,000.00 based on regional income thresholds ("Bayanihan to Heal as One Act of 2020," 2020).

Other financial assistance was extended. DSWD allocated amounts for a funeral support fund allotted to indigent confirmed COVID-19 cases and persons-under-investigation, whether they are undergoing home quarantine or admitted in a public or private facility. DSWD allotted PhP 25,000.00 per deceased cases (IATF, 2020g).

 

Labor and Employment

The Philippines encouraged the private sector and civil service to implement alternative working arrangements to impose social distancing between and among employees (IATF, 2020g).

Work in the government was suspended, without prejudice to the formation of skeletal workforces by government agencies in order to maintain the unimpeded delivery of services to the public. However, military, policy and other uniformed personnel, the health and emergency frontline services continued to be in full operation (IATF, 2020c).  Alternative working arrangements, including but not limited to, work-from-home, compressed work week, staggered working hours, and the creations of skeletal workforces, were implemented. Only government officials (members of Congress and their Chief of Staff, Secretaries, Undersecretaries, Assistant Secretaries and Bureau Directors of the different government agencies; Ombudsman and their Deputy Ombudsman, Justices of the Supreme Court, Court of Appeals, Court of Tax Appeals, and the Sandiganbayan; Judges of Regional, Metropolitan and Municipal Circuit Trial Courts and Prosecutors; Local Chief Executives) and their respective close-in staff were exempted from the implementation of the Enhanced Community Quarantine (IATF, 2020c). Staff on skeletal workforces for critical services had to be issued with accreditation orders to facilitate the movement and transportation to their workplace. It authorized the grant of COVID-19 Hazard pay to personnel who physically report for work during the implementation of the Enhanced Community Quarantine in the amount of not exceeding PhP 500 per day per person (OP, 2020a).

Flexible work arrangements were encouraged in the private sector. The Department of Labor and Employment (DOLE) and the Department of Trade and Industry (DTI) were directed to issue guidelines to safeguards the welfare of workers (IATF, 2020c). All manufacturing, retail and service establishments were advised to remain in operations during the community quarantine provided that strict distancing measures were observed (IATF, 2020c). All workers, whether employed or self-employed, residing outside the National Capital Region (NCR) were provisionally allowed to travel to and from the NCR, provided that proof of employment and/ or business must be presented at border checkpoints.

However, exemptions from the implementation of the Enhanced Quarantine to the following employees (IATF, 2020c):

          Manufacturing and processing plants of all basic food products, essential products (soaps and detergents; diapers, feminine hygiene products, tissue, wipes/ and toilet, papers, disinfectants), medicine (and vitamins) and medical supplies (physical protective equipment, masks, gloves);

          Retail establishments (groceries, supermarkets, hypermarkets, convenience stores, public markets, pharmacies and drugstores);

          Logistics service providers (cargo handling, warehousing, trucking, freight forwarding, and shipping line);

          Hospital and medical clinics;

          Food preparations and water refilling stations only for take-away and delivery;

          Delivery services, whether in-house or outsourced, transporting only food, water, medicine or other basic necessities;

          Banks and capital markets;

          Power, energy, water, IT and telecommunications supplies and facilities, wastes disposal services;

          Export and business process outsourcing (BPO) companies;

          Airline and aircraft maintenance employees, including pilot and crew, and ship captain and crew;

          Media establishments, provided that the number of exempted employees be limited to buy fifty (50%) percent of their total permanent staff complement as registered under DOLE; Provided further that such maximum limit includes reporters, and other field employees;

          Hotels have booking as of 17 March 2020 and operating for the facility-based quarantine for Overseas Filipino Workers (OFWs);

          Energy companies and their third-party contractors, including such employees involved in electric transmission and distribution, electric power plant and line maintenance, as well as those involved in exploration, operations, trading and delivery of coal, oil, or any kind of fuel used to produce electricity; and

          Under telecommunication utilities, the telecommunications-related work force

          Funeral services staff and personnel (IATF, 2020g)

 

                Through the Department of Labor and Employment (DOLE), a one-time cash assistance of PHP5,000 (US$97.6) per worker will also be provided to workers in private establishments where flexible working arrangements are enforced. A total of Five Billion Pesos (PhP 5,000,000,000.00) was released to provide social safety nets for affected Overseas Filipino Workers (OFWs), and local workers (IATF, 2020l).

 

Interior and Local Government

The local government units (LGUs) had implemented restriction of non-essential entry and exit of people to the community (contained area) especially persons who are at high risk of being infected, ie those 60 years old and above, those who are immunocompromised or with comorbidities and pregnant women, except: health workers, authorized government officials, those travelling for medical or humanitarian reasons, persons transiting to airport for travel abroad, persons providing basic services and public utilizes, and essential skeletal workforce (IATF, 2020d).

Supermarkets, public and private wet markets, grocery stores, agri-fishery, supply stores, pharmacies, drug stores, and other retail establishments engaged in the business of selling basic necessities are encouraged to operate to a maximum of twelve hours (IATF, 2020i). Delivery services were allowed to operate to transport and to ensure adequate supply of and access to food, medicine, and other basic necessities (IATF, 2020e).

LGUs monitored and penalized funeral homes that refused to provide logistics and transport of COVID-19 remains, including but not limited to, refusal to pick up remains.  The LGU released issuances and ordinances to put a price cap or imposed a price freeze on funeral services within their jurisdiction (IATF, 2020g).

The policy of mandatory wearing by all resident of face masks, ear loop masks, indigenous, reusable or do-it-yourself masks, face shields, handkerchiefs or such other protective equipment that can effectively lessen the transmission of COVID-19 whenever allowed to go out of their residence was issued (IATF, 2020i).

LGUs were directed to identify temporary isolation or quarantine facilities (IATF, 2020h) for the use of health care workers, locally-stranded residents from other areas in the Philippines who are returning to the residences, Overseas Filipino Workers, among others..

Recognizing the importance of contract tracing in the containment of the spread of the infection, the lead implementation was eventually transferred from the DOH to the Department of Interior of Local Government (DILG) and local government units (IATF, 2020m, 2020o).

The LGUs highly depended on the policy-setting of the national government considering the need for well-coordinated actions among intergovernmental actors, the inadequate administrative and financial capacities on policy and program responses. As they have slowly gained the momentum in managing the crisis, LGUs became more confident in introducing more people-centered and appropriate responses that fit the unique demands and needs of their respective areas.

 

Education

The education sector suffered with the abrupt suspension of classes (IATF, 2020b, 2020e). With no clear timeline on the lifting of the community quarantine in sight, initial response was confined to provision of requirements that were expected to be fulfilled and accomplished while at home. Eventually, the government prescribed for basic education the evaluation of the final grades in the absence of the fourth quarter examination. Grading system was revised and previously submitted written works and performance tasks were considered in computing the class standing.

Basic education in public institutions, which usually starts in June, was moved to 24 August 2020 and will end on 30 April 2021. Depending on the risks and severity of COVID-19, the academic school year adopts various learning delivery options such as but not limited to face-of-face, blended learnings, distance learnings, and homeschooling and other modes of delivery. Conduct of curricular and co-curricular activities involving gatherings such as science fairs, showcase of portfolios, trade fairs, school sports, campus journalism, festival of talents, job fairs and other similar activities is cancelled, except those conducted online (IATF, 2020v).

Higher Educational Institutions (HEIs) opted to online and blended learning to finish the Academic Year 2019 - 2020. They had been authorized eventually to operate with a skeletal force only for the purpose of issuing credentials to students to prepare for flexible learning arrangement for the next Academic Year (IATF, 2020q). Furthermore, they were encouraged to change the academic calendar and open in the last week of August 2020. However, for HEIs with full online education and flexible learning can open anytime, or open anytime in August 2020. No residential (face-to-face/ in person) classes were allowed until August 31, 2020 (IATF, 2020w).  

 

Foreign Affairs

Imposition of travel restrictions served as the fundamental policy in controlling the entry of COVID-19 cases to the country and in protecting the health and safety of Filipinos travelling abroad. Early travel restrictions were imposed on China and the Republic of Korea (IATF, 2020a, 2020c) where the epicenter of COVID-19 was observed.

Considering the lockdown of NCR, all departing passengers were allowed to transit through NCR provided that proof of confirmed international travel itinerary scheduled within 12 hours (later changed to 24 hours (IATF, 2020e) and later changed to without any impediment (IATF, 2020g)) from entry should be presented at checkpoints. Outbound travel was allowed provided that no travel restrictions were in place to countries of destination (IATF, 2020d). Overseas Workers Welfare Administration (OWWA) was directed to provide transportation services to OFWs intending to leave for abroad (IATF, 2020g). Furthermore, OWWA provided transportation services for returning OFWS, for the purpose of ferrying them from international ports to their respective destinations in Luzon (IATF, 2020e).

However, these limited travel restrictions did not hold any longer as the infection spread across the globe and detection and containment among inbound passengers became very challenging.

Stricter measures were in place. Visa issuance to all foreign nationals was suspended with immediate effect (IATF, 2020f). Visa-free privileges based on Visa Waiver Agreements, those under Executive Order 408, s 1960, holders of Hong Kong and Macau SR passports, Macau-Portuguese passports, and British National Overseas passports were suspended. Foreign nationals with visas previously issued by Foreign Service Posts (PSPs) were not allowed entry to the country. However, foreign spouses and children of Filipinos were exempted from above suspension.

The Department of Health and Bureau of Quarantine updated existing algorithms for the triage of and management of inbound passengers(IATF, 2020r). At first, inbound passengers were mandated to be subjected to complete a 14-day facility-based quarantine prior their eventual travel to their respective residences. With the increasing number of Overseas Filipino Workers returning and/ or repatriated to the country, the demands for facility-based quarantine are putting strains on the government’s absorptive capacities, the utilization of Reverse Transcription-Polymerase Chain Reaction (RT-PCR) tests was adopted (IATF, 2020p). Those who test negative shall be exempted from the requirement of facility-based quarantine and were allowed to proceed to their respective destinations and undergo a mandatory fourteen-day home quarantine (IATF, 2020r). The use of RT-PCR facilitated the speedy management or processing of more or less sixteen thousand (16,000) OFWs who are currently in quarantine facilities and arriving foreign nationals. Filipino crews on board foreign cruise ships docked in ports in Manila are required to undertake rapid tests and mandatory 14-day self-quarantine. They were allowed to disembark upon completion of the mandatory quarantine (IATF, 2020n).  Upon receipt of their certificate of completion of quarantine, local government units are enjoined to allow the unhampered transit to their residences (IATF, 2020g, 2020m).

In adherence to comity and reciprocity, and only to the extent of the principle treatment, foreign nationals tested and/ or treated in a government hospital are positive, no testing or treatment costs/ fee will be charged. However, if result is negative or testing and admission to private hospitals, the testing and/ or treatments fees shall be charged against the foreign nationals or his/ her medical insurance (IATF, 2020m).

All international flights to and from the Philippines were temporarily suspended from May 4 to 8, 2020, except for official, emergency, cargo, ambulance and medical supply, weather mitigation, maintenance flights, as well as international flights for stranded foreign nationals. Flights after May 8, 2020 were regulated by the Department of Transportation to ensure that all arriving passengers are processed and managed in accordance with existing quarantine protocols (IATF, 2020u).

Deployment of OFWs abroad, whether land-based or sea-based, were allowed upon the execution of a Declaration signifying their knowledge and understanding of the risks involved as advised. Furthermore, recruitment and placement agencies were allowed to operate subject to the observance of minimum health standards. Government offices and agencies involved in the processing of their deployment are directed to faster processing and deployment (IATF, 2020w).

 

Transportation

                Social distancing was initially enforced in public transport (IATF, 2020c). Mass public transport, including the Light Rail Transits, the Metro Rail Transit, and the Philippine National Railways, were allowed to operate. However, with the enforcement of the Enhanced Community Quarantine (ECQ), land, domestic air, and domestic sea travel to and from Manila were suspended beginning March 15, 2020 (00:01H) (IATF, 2020e).

The movement of cargoes, including agricultural products (DAR, 2020)  to and from Manila, or in other places was unhampered (IATF, 2020d). This was a nationwide policy that must be strictly followed in all LGUs nationwide. This was ensured to avert any threats of shortage of basic food, essential hygienic products and products (IATF, 2020f). Importers, consignees, truckers, shipping lines and other regulating agencies (Bureau of Customs, Philippines Ports Authority, DTI and DA) were directed to act and remove the barriers that impede the flow of food supply.

The Department of Tourism undertook the necessary measures to charter and fund sweeper flights for stranded domestic tourists from other regions to the National Capital Region (IATF, 2020q). Eventually, the government allowed the Local Government Units to coordinate and facilitate the return of their stranded constituents provided that compliance with minimum public health standards is enforced. The attendant costs and necessary quarantine protocols shall be for the account and responsibility of the LGUs (IATF, 2020t).

 

Economic and Finance

The government has announced a PHP 27.1 billion fiscal package (DOF, 2020) (about 0.15% of 2019 GDP) intended for purchase of COVID-19 testing kits and health equipment; social protection for vulnerable workers; and support to the tourism and agriculture sectors. Financial assistance will also be provided to affected SMEs and vulnerable households through specialized micro financing loans and loan restructuring. The government also plans to accelerate budget execution and re-allocate more resources toward COVID-19-related health spending (ILO, 2020a).

To support micro and small businesses affected and cushion the economic impact of the spread of COVID-19 virus in the country, the Small Business Corporation is setting up a P1 billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (named COVID19 P3-ERF). The facility will be implemented once the Community Quarantine declaration is lifted by the National Government and/or respective Local Government Units(DTI, 2020).

The Bangko Sentral ng Pilipinas (BSP) has reduced its policy rate twice in 2020 by a cumulative 125 bps to 2.75 percent. The BSP has also announced a 200 bps reduction of the reserve requirement ratio for banks effective on March 30. It plans to purchase PHP 300 billion worth government securities (about 1.6 percent of 2019 GDP) to support the government’s programs to counter the impacts of COVID-19. The BSP has also announced a series of regulatory relief measures for the banking sector, including: (i) a temporary relaxation of requirements on compliance reporting, penalties on required reserves, and single borrower limits; (ii) easier access to the BSP’s rediscounting facility; (iii) a temporary relaxation of provisioning requirements (subject to the BSP approval), and (iv) a relaxation of prudential regulations regarding marking-to-market of debt securities.. These relief measures are intended to encourage banks, in turn, to provide financial relief to their borrowers (e.g., temporary grace period for loan payments). Banks are also expected to suspend all fees and charges imposed on online banking platforms during the period of regulatory relief (IMF, 2020).

Capital markets, including but not limited to the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Philippine Dealing and Exchange Corporation, Philippine Securities Settlement Corporation and Philippine Depository and Trust Corporation were allowed to operate (IATF, 2020e). To respond to the low supply of critical medical products and devices, various manufacturers and exporters repurposed their manufacturing operations for surgical masks, personal protective equipment (PPEs), thermal scanners and ventilators (IATF, 2020l).

 

 


Impacts of COVID-19

The COVID-19 pandemic as it continues to threaten social order and stability is undeniably shifting the governance landscape in terms of national priorities and policies. The trajectory of development in various economic, social, educational, cultural, political aspects among others is taking a divergent direction than expected. The seemingly opportunistic attributes of interdependence, mobility, interconnectedness and globalization are suddenly reevaluated and reassessed since the pandemic had empirically brought fundamental changes in the social and governance arrangements.

The following discusses the impact of the pandemic to the Philippines:

1.        Health

The Philippine government admittedly recognized the limited absorptive capacities of the existing health care facilities in catering to the clinical management of COVID-19 patients. The abrupt surge of hospital admissions had put a strain on the health care workers especially at the start of the local transmission when patients had provided inadequate/ inaccurate information of their travel history and/ or contact with other COVID-19 cases (McCarthy, 2020).

Significant number of healthcare workers in the country were positive. According to the Department of Health, there were 1,062 infected health care workers, namely 422 doctors, 368 nurses, 30 medical technologists, 21 radiological technologists, 51 nursing assistance and 152 other medical personnel such as administrative staff and community health workers. Of the number 26 are dead, including 19 doctors (CNN-Philippines, 2020).

The lack of availability and accessibility of personal protective equipment (PPEs)  attributed to the influx of infection among health care workers. The high cost of full-body suits constrained both public and private hospitals, notwithstanding, the infrequency of its utility within the clinical context in recent years. Consequently, as infection had spread among health care workers, hospital management had no recourse but to track the contacts of these infected health workers within the facility and placed them under quarantine leading to further reduction to the number of available health care workers. This is adding further constraint to already limited absorptive capacities of the hospital facilities to meet the patient needs. Premier private hospitals are filled to capacity and are forced to turn people away. Other hospitals had also denied suspected COVID-19 patients for admission due to lack of preparedness or lack of isolation room (for fear of widespread infection to existing patients) and ventilators. The stark reality of hospitals exceeding its maximum capacity had seriously affected its ability to deliver the critical level of care and attention patients need. Furthermore, there are other non-COVID-19 patients needing medical attention and cannot be compromised.

With the health sector as the frontline in addressing the pandemic, the Philippine government banned future applications for deployments of healthcare professionals abroad “until the national state of emergency is lifted”. Despite surmounting opposition on the ban since it deprive Filipinos of their contractual right to work, including abroad, it is within the national interest that the country continue to have, sustain the supply of, and prepare sufficient health personnel to meet further contingencies, especially to replace, substitute or reinforce existing workforce currently employed.

 

2.        Social Welfare and Development

The most vulnerable in the pandemic are the poor. With around 3.3 million Filipino people living in extreme poverty, the social distancing measures, together with frequent handwashing, are not practical or possible. The poor live in densely populated, impoverished settlements where access to running water is poor at best. What little income many of the poor Filipinos have had up to now is already under threat by the economic slowdown(Faustino, Chittick, & Nixon, 2020). In Manila, as in many other places, the COVID-19 pandemic is hitting the poor the hardest and exposing the gaping inequities in access to food, shelter and health care (Coronel, 2020). Millions who eke out of a hardscrabble existence in the city’s underground economy were left without any means of support as businesses closed and people were ordered off the streets (Coronel, 2020). The decline in economic activity is already catching upon and is expected to lead to significant increase in the number of living under poverty.

The loss of sufficient productivity among the middle class, who are having regular employment and regular income, characterized the social impact of the pandemic. The economic shutdown led to the loss of jobs for workers and of income for small businesses. The emergence of the new concept of “new poor” becomes a growing concept as these middle classes are slowly diminishing their quality/ standard of living due to limited income and dwindling savings.

The pandemic also brought modifications to social relations dynamics. For fear of being infected, discrimination and physical abuse were accorded to medical frontliners. Empirical narratives show eviction of health workers from their boarding houses/ apartments, an ambulance driver was shot for parking his vehicle in a residential area, dousing of bleach to a hospitality utility worker while on his way, splattering chlorine  on a nurse (Rubrico, 2020), and so on. These are appalling and infuriating stories, showing the worst impulses that fear, panic and ignorance can engender in ordinary people (StraitsTimes, 2020). Furthermore, Overseas Filipino Workers, who were once adored as the country's new heroes in pre-COVID-19 period, are now unwelcome in their own communities, because they might be carriers of the virus (De Silva, 2020).

The financial crisis within the family heightens the risks for any forms of domestic violence due to tensions in the family. Self-isolation and lock down measures increase the risk of children becoming the victims of domestic violence, online bullying and other forms of abuse (STC, 2020).

 

3.        Labor and Employment

With the implementation of the Enhanced Community Quarantine, 1.4 million Filipino workers were displaced due to temporary closures while more than 687,000 had reduced incomes under alternative work arrangements like less workdays, rotation, forced leave and telecommuting. Furthermore, the Philippine Overseas Labor Offices (POLOS) in 40 posts in different parts of the world reported 89,436 Overseas Filipino Workers who were either displaced or on a no-work, no pay status due to lockdowns and slowdown of businesses in host countries, stricken badly by the virus. Of which, 36,385 Overseas Filipino Workers  were assisted for repatriation (DOLE, 2020).

In anticipation of the easing of the community quarantine, the employment sector suffers in great stride. Expectedly, economic activities are projected to decrease significantly as fears still surmount among the Filipino people. These uncertainties decrease the movement of cash flows since people are unwilling to go out as they used to. Businesses are expected to cut down on their workforce with limited/ decreased profits leading to more unemployment. Furthermore, the existence of cross-border employment, where workers live in one locality but work in another, poses a great challenge on mobility. With challenges on the restoration of mass transportation, Filipino workers who rely on public transportation, may be forced to rent out an apartment near their place of employment or worse, eventually resign from work. The mobility of workers from their place of residence to their work will be significantly decreased (Tejuco Jr, 2020).

 

4.        Education

With the enhanced community quarantine (ECQ), the Department of Education (DepEd) is facing immediate challenges, namely: (a) suspension of classes until the end of the school year (SY); (b) disrupted office-based work and major activities; (c) increased demand for inter-agency meetings;  and (d) identification of programs and activities to be terminated to generate savings to be contributed to the Bayanihan measures. Further, local government units are also requesting the use of schools as quarantine facilities and other purposes, and there are also uncertainties for the school opening.

To address these, DepEd looks into the use of technology to continue governance and operations of the department, as well as for learners to continue their education. The Sulong EduKalidad (Pursuit of quality education) continues through curriculum review, PISA 2021 preparations, and the formation of a Futures Thinking unit. While DepEd has decided to participate in PISA 2021, there is a chance that they will opt to defer the participation of the Philippines to 2022.

For the school year 2020-2021, the biggest uncertainty for basic education is the school opening. Some of the issues and challenges that concern equity are: (a)  access to ICT platforms; (b) family/household support to student learning; (c) learning resources; (d) differential teacher capacities; and (e) geographical peculiarities (i.e., Geographically Isolated and Disadvantaged Areas (GIDA))

 

5.        Transportation

The transportation industry is confronted with cancellations of hundreds of flights, drops in ship calls, and reduction in cargo volumes and passenger traffic for both sea and air. Airline are seeing a downtrend in booking and a higher percentage of no shows and passengers seeking refunds (Almonte, 2020).

The reduction in transportation also affected the supply chain. This had hit some sectors already experiencing a shortage in raw materials, disrupting production. Furthermore, the fragility of the supply chains brought by limited transportation contributed to the shortages of critical medical components needed in the fight against the pandemic (TME, 2020).

 

6.        Economy and Finance

Tourism. Travel bans, border closures and reduced demand for travel affected tourism. COVID-19 is expected to significantly affect the economy, since international tourism accounts for 1.5 percent of the Philippines’ GDP in 2018. Korean and Chinese tourists comprise two largest tourist arrivals in the Philippines for the same year, at 24 and 22 percent of the total arrivals, respectively. Total receipts from these tourists amount to US$ 2.5 million, and US$ 2.2 million, respectively. It may be noted that the Philippines have a total ban to and from China, and partial travel ban to and from Korea. Further, the National Economic and Development Authority (NEDA) estimates a 10.0 percent drop in the arrivals from other countries until June 2020 due to the ECQ. This is deemed to result in loss of gross value added of US$ 1.5 million to 3.1 billion or 0.4 to 0.8 percent of the Philippines’ GDP in 2020 (NEDA, 2020)

Trade and Exports. Among the most significant exports of the Philippines include electronic data processing, bananas, copper, and metal, which amounts to 28.0 percent of exports to China. Total exports to China decreased by 55.0 percent based on partial customs data for February 2020. The global trade is also anticipated to take on a new paradigm as the global supply chain weakens. As the country is characterized as an export-driven economy, businesses are exposed to greater risks and vulnerabilities for the continuity of its operations. The low demand leads to reduced production rate. The subsequent consequences are inevitable such as cutting down on labor, reduced income, among others. The potential for massive layoffs of labor hangs in the balance, and this undoubtedly will hurt the economic strength of the country. Furthermore, the previously lucrative offshoring strategies of developed countries to the Philippines due to cheaper labor and operational costs are also being threatened. The developed countries are veering towards protectionism leading them to reconsider reshoring. Despite the benefits these economies draw from the cheaper labor cost advantages in the Philippines, the COVID-19 pandemic altered the fundamental requirements for overseas investments of transnational companies to ensure their resilience and sustainability amidst large-scale catastrophic pandemic such as COVID-19. As the trends for reshoring resurfaces, the displacement of Filipino workers is seemingly one of the most prominent social problems that the Philippine government needs to address in the coming years (NEDA, 2020).

Remittances. The Philippines through the years had opened its borders to the global supply chain to boost its economic activities. Despite the major setback on brain drain, countless Filipinos are taking the painful path of moving to other countries in search for better working, educational, social and cultural opportunities. Both technical and non-technical workers left the country with a goal in mind of improving their quality of lives, including their respective families. Admittedly, the Philippine economy directly benefits from the remittances of the overseas Filipino workers. It accounts as a boost to significantly increase the national income. The country, characterized as the major exporter of human resources, is now confronted with the impacts of the global pandemic. As national economies of different countries are temporarily shut down, the security of their employment becomes a serious threat to their productivity. While some workers were cushioned by economic and financial stimulus of their host countries, others are grappling to sustain their productivity. Unfortunately, the projected remittances for the first semester of this year are expected to be lower compared from the previous years. The decrease of the remittances significantly affects national income and reduces the sustenance provided to their respective families. The quality of lives their families have enjoyed for the past years might be greatly affected, leading them to cut down on expenses on what are deemed important in the interim. The worst-case scenario, if the pandemic continues to loom over the economies of the host countries, is these workers are forced to return to the Philippines with no significant savings in place and putting additional costs for the government for their repatriation. Furthermore, the government is compelled to provide social safety nets measures to eventually assist these repatriated workers regain their productivity in the Philippines. Such public expenditures, while necessary, are adding strain to the dwindling resources of the government. The social costs of repatriation are also anticipated to affect quality of lives and alter the relational dynamics of the family.

Domestic Consumption/ Household Expenditures. The massive quarantine of the National Capital Region and entire Luzon area had led to induced declines in domestic demand. Consumer expenditures focused on priority purchases on food and health-related products, affecting the reduction of cash flows in the economy. Total household spending for 2020 is only projected 6.7%, compared to 7% pre-coronavirus projection and 9.8% growth in 2019. Increase on prices on medicines (ie vitamins), and other health-related purchases is expected. There is a widespread decrease in non-essential commerce shopping due to ‘prioritizing’ mindset amongst customers, Consequently, e-commerce follows a downward trend as deliveries and/ or courier services are now more focused on food items, and health-related purchases. Transportation plummets significantly with the suspension of major public transport. Furthermore, the pandemic scare reflects the likelihood for limited recreational travels for Flipinos both locally and abroad. As outdoor recreational activities plummet, Online streaming services for videos and gamings have increased since the lockdown took effect. Generally, consumer expenditure is focused on maintaining subsistence spending and will remain a property for consumers for 2020 (FitchSolutions, 2020).

 

 


Challenges

At Present

The need to flatten the curve remains as the primary challenge of the Philippine government. The absorptive capacities to undertake COVID testing must be expanded, together with improvement on contact tracing to immediately isolate infective patients in health care facilities and hospitals. The scale of the COVID-19 challenges both the national and local government to respond expeditiously and utilize the whole--of-community response. Expansionary social protection measures must be undertaken to provide economic cushions to FIlpinos who are adversely affected by work stoppage, and potential adverse effect on job security and availability among others.

The already burdened national health system must be provided with more than adequate human and material resources in anticipation of the push towards mass testing. These additional resources include but are not limited to more testing kits, incentives and provision for frontliners including proper personal protective equipment, and dissemination of the Philhealth’s coverage for testing and hospitalization to encourage low-income households to seek medical attention (David, Rye, & Agbulos, 2020).

Prospectively, the national government should invest more resources in institutions which can do evidence-based research to improve policy and program formulation and evaluation. These researches should underpin national plans to bolster resilience of national institutions, e.g. distance education and blended learning in schools, telecommuting, telehealth and other similar initiatives (David et al., 2020).  Furthermore, it appears necessary for the Philippines to have Centers for Disease Control and Prevention whose main focus is public health. It will precisely deal with emerging infectious threats and will have public health professionals, good laboratory capacity, quarantine powers and access to emergency funding. This will ease the administrative burden of the Department of Health and enable it to strengthen capacities on vaccination, disease surveillance and community health (Sandoval, 2020).

The National Economic and Development Authority (NEDA) projected 2020 gross domestic product (GDP) growth to be as low as -0.6%, as tourism, trade, remittances, and consumption drastically drop during the lockdown (Rivas, 2020). With this pessimistic outlook on Philippine economy, large-scale and coordinated policy efforts should be taken to provide employment and income support and to stimulate the economy and labour demand. These measures not only cushions enterprises and workers against immediate employment and income losses, but they also prevent a chain of supply shocks (e.g. losses in worker’s productivity capacities) and demand shocks (e.g. suppressing consumption among workers and their families) that could lead to prolonged recession (ILO, 2020b).

 

According to a recently-released Asian Development Bank report, the Philippines’ economic growth will slow significantly this year before a strong rebound in 2021, with expansionary fiscal and monetary policies partly offsetting slower domestic demand and disruptions in tourism, trade, and manufacturing. ADB projects the Philippines’ gross domestic product (GDP) to grow at 2.0% in 2020 following an “enhanced community quarantine” imposed by the government in March to stop the spread of the novel coronavirus disease (COVID-19) in the country. These quarantine measures have shut down schools and most government offices and private establishments in Metro Manila and the entire Luzon island, which accounts for over half of the country’s total population and generates more than two-thirds of the country’s overall GDP. ADB expects, however, that the Philippine economy will have a strong recovery to 6.5% GDP growth in 2021, assuming that COVID-19 infections in the country are curbed by June this year (ADB, 2020).

As a way forward, the demand for correct and right information pertaining to COVID-19, its development, its infection rate among others becomes extremely necessary. Amidst the uncertainties, the government must bear upon itself to exert all efforts in establishing mechanisms through which correct and right information reaches the public. As the public becomes unsecure and unsafe and it remains unresolved, the government may ignite anarchy and/ or lawlessness at the first indication of stress due to uncertainties.

Further, NEDA (2020) reports that one important strategy to reduce uncertainty is to improve the capability of the health sector so that individuals are confident that, should they contract the virus, they know that they have good chances at full recovery. The next best strategy is to contain the spread of the virus by continuously limiting the movement of people. This means slowing down the economy, but effectively, buying time to increase systems capacity.

As the government slowly lifts the lockdown, it is necessary to ramp up its efforts to promote social protection through increasing capacities to improve the nutritional status of children who are previously being monitored and provided with nutritious foods in the schools. As students are not staying at home, efforts must be done to redisbute nutritious food packs to maintain the gains of the country in improving nutritional status of children. Furthermore, provision of cash transfers and even expanding the total number of beneficiaries become extremely necessary to provide cushion from the economic difficulties. Furthermore, cash-for-work programs may be expended to provide temporary employment and income to severely affected workers due to COVID-19.

Furthermore, measures must be implemented to improve access of vulnerable individuals and protect them from COVID-19. There is a need for the government to adopt a clear policy guidelines to ensure that high-risk individuals (older persons, and those with serious underlying medical conditions) are protected and have access to necessities such as food, and medicine while the risk of COVID-19 is still high.

While the country many not have enough infrastructures for it, the promotion of digital and alternative learning must be pursued as education cannot wait for the solution of vaccine to arrive. To avoid the further disruption of schooling, there is a need to improve the readiness of educational institutions (both public and private) and students in shifting to digital and alternative mechanisms. This can be attained through: provision of special reduced internet rates for students and faculty; provision of loans and subsidies for gadgets; among others.

Furthermore, to ensure food production and supply chain, support services should be provide to farmers to facilitate the marketing and transportation of produce from farm to the national and local government units. Also, urban households is encouraged to produce fresh and healthy foods from their own backyards and spaces, and to contribute to ensuring food safety. The current policies on ensuring unrestricted movement of agricultural and fishery products, including farm machineries and workers and addressing overpricing should continue to be strictly enforced.

Grants or soft loans should continue to be extended to farmers, fisherfolk, and MSMEs to restore and sustain livelihood activities and businesses. Given that most of the losses are in terms of forgone incomes, a guarantee fund may be more adequate.

As society has to resume its social and economic activities while sustaining efforts to limit the spread of the virus, it is essential to characterize the new normal and identify the appropriate government interventions and policies that will facilitate transition into the new normal.

In general, the new normal will be characterized by the need to observe social distance and strict personal hygiene and other sanitation protocols. There may still be sporadic lockdowns, though over a smaller geographic unit. At the same time, the COVID-19 threat looms large in the minds of individuals – consumers and business alike.

 

 

 

 

 

 

 

 

 

References

 

 

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IATF. (2020a). Resolution No. 09, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-9.pdf

IATF. (2020b). Resolution No. 10, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-10.pdf

IATF. (2020c). Resolution No. 11, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-11.pdf

IATF. (2020d). Resolution No. 12, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-12.pdf

IATF. (2020e). Resolution No. 13, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-13.pdf

IATF. (2020f). Resolution No. 14, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-14.pdf

IATF. (2020g). Resolution No. 15, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-15.pdf

IATF. (2020h). Resolution No. 16, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philipppines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-16.pdf

IATF. (2020i). Resolution No. 18, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://www.doh.gov.ph/sites/default/files/health-update/IATF-RESO-18.pdf

IATF. (2020j). Resolution No. 19, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020k). Resolution No. 20 Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020l). Resolution No. 21, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020m). Resolution No. 22, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020n). Resolution No. 24, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020o). Resolution No. 25, Series of 2020 Recommendations for the Management of the Coronavirus Diease 2019 (COVID-19) Situation. Manila, Philippines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020p). Resolution No. 26, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020q). Resolution No. 29, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020r). Resolution No. 30, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020s). Resolution No. 30A, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020t). Resolution No. 31, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020u). Resolution No. 32, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020v). Resolution No. 34, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

IATF. (2020w). Resolution No. 36, Series of 2020 Recommendations to the Management of the Coronavirus Disease 2019 (COVID-19) Situation. Manila, Philipines: Inter-Agency Task Force for the Management of Emerging Infection Diseases Retrieved from https://drive.google.com/drive/u/0/folders/1UDVU8veQ2vqEH6a0CkdPiAl4yKQPvDp8

ILO. (2020a). COVID-19 and the world of work Country policy responses. Retrieved from https://www.ilo.org/global/topics/coronavirus/country-responses/lang--en/index.htm#PH

ILO. (2020b). COVID-19 and the world of work: Impact and policy responses. Retrieved from https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/briefingnote/wcms_738753.pdf

IMF. (2020). Policy Responses to COVID-19. Retrieved from https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#P

McCarthy, J. (2020). Pandemic Claims The Lives Of Doctors In The Philippines At Startling Rates. Retrieved from https://www.npr.org/sections/coronavirus-live-updates/2020/04/03/826804519/pandemic-claims-doctors-in-the-philippines-at-startling-rates

NEDA. (2020). Addressing the Social and Economic Impact of the COVID-19 Pandemic.  Retrieved from http://www.neda.gov.ph/addressing-the-social-economic-of-the-covid-19-pandemic/

OP. (2020a). Administrative Order No 26, series of 2020, Authorizing the Grant of Hazard Pay to Government Personnel Who Physically Report for Work During the Period of Implementation of an Enhanced Community Quarantine Relative to the Covid-19 Outbreak. Office of the Pesident of the Philippines Retrieved from https://www.covid19.gov.ph/wp-content/uploads/2020/03/OP-AO-26.pdf

OP. (2020b). Administrative Order No. 28, Series of 2020, Authorizing the Grant of Special Risk Allowance to Frontline Public Health Workers during the Period of Enhanced Community Quarantine Relative to the Covid-19 Outbreak. Malacanang, Philippines: Office of the President of the Philippines Retrieved from https://www.covid19.gov.ph/wp-content/uploads/2020/04/20200406-AO-28-RRD.pdf

OP. (2020c). Proclation No. 922 Declaring A State of Public Health Emergency Throughout the Philippines. Manila, Philippines: Office of the President Retrieved from https://www.officialgazette.gov.ph/downloads/2020/03mar/20200308-PROC-922-RRD.pdf

Rivas, R. (2020). What the Philippine economy be like after the coronavirus. Retrieved from https://www.rappler.com/newsbreak/in-depth/257367-what-philippine-economy-could-be-like-after-coronavirus

Rubrico, J. G. U. (2020). Covid-19 and the Discrimination of Medical Personnel in the Philippines. Retrieved from https://www.ispionline.it/en/pubblicazione/covid-19-and-discrimination-medical-personnel-philippines-25725

Sandoval, L. U. (2020). Panic In the Philippines as the Nation’s Healthcare Falters Amid COVID-19. Retrieved from https://www.insideover.com/society/panic-in-the-philippines-as-the-nations-healthcare-falters-amid-covid-19.html

STC. (2020). Covid-19 Millions of Children In Lockdown in Asia at Risk of Domestic Violence. Retrieved from https://www.savethechildren.net/news/covid-19-millions-children-lockdown-asia-risk-domestic-violence

StraitsTimes. (2020). Stigmatisation of coronavirus front-line health workers appalling: Inquirer. Retrieved from https://www.straitstimes.com/asia/stigmatisation-of-frontline-health-workers-appalling-inquirer

Tejuco Jr, F. A. (2020, April 21, 2020). The impact of Covid-19 on the new normal of Filipino living. The Manila Times. Retrieved from https://www.manilatimes.net/2020/04/21/business/real-estate-and-property/the-impact-of-covid-19-on-the-new-normal-of-filipino-living/716704/

TME. (2020). The Impact of the Covid-19 Pandemic on Shipping. Retrieved from https://www.maritime-executive.com/editorials/the-impact-of-the-covid-19-pandemic-on-shipping

WHO. (2020). Coronavirus Disease (COVID19) Situation Report 4 Philippines [Press release]. Retrieved from https://www.who.int/docs/default-source/wpro---documents/countries/philippines/emergencies/covid-19/who-phl-sitrep-4-covid-19-14mar2020.pdf?sfvrsn=d41de9c1_2

 

World Health Organization. (2020). COVID-19 Situation Report 4- Philippines. Retrieved from https://www.who.int/docs/default-source/wpro---documents/countries/philippines/emergencies/covid-19/who-phl-sitrep-4-covid-19-14mar2020.pdf?sfvrsn=d41de9c1_2