Gary Valenciano lends talent for BUYANIHAN

A music video starring multi-awarded singer-songwriter, dancer, musician, actor, music producer, and TV host Gary Valenciano premiered on July 10 for a campaign to support micro, small, and mid-sized enterprises (MSMEs).

The MTV is a public service announcement; part of the multi-sectoral project called BUYANIHAN that was organized by the Association of the Filipino Franchisers Inc. (AFFI), the Department of Trade and Industry (DTI), Go Negosyo, SM Super Malls, Globe My Business, PLDT KaAsenso, Security Bank, Union Bank, Sea Oil, and Farmacia ni Dok, with the  support of  the Philippine Association of National Advertisers (PANA), and the Kapisanan ng Brodkasters ng Pilipinas (KBP).

MSMEs are the backbone of every economy but, sadly, many were put on the brink of insolvency because of the COVID-19 lockdown. And with the country’s fiscal heartbeat largely driven by consumption, community support for these enterprises cannot be stressed enough.

BUYANIHAN can provide that lifeline.

Prolific for his theme songs in network soap operas and films, Valenciano produced, recorded, and shot the MTV at his home pro bono while most of the country was still confined by the less-stringent GCQ (general community quarantine). 

About 3:30 minutes long, it features the song “Puwede Pang Mangarap” as a message of hope. In it, business owners spoke about the challenges of the lockdown. But there was also inspiration and aspiration; a call to arms for the millions of affected MSMEs to keep up the good fight, and equally, an overture for customers to return and resume their patronage.

Valenciano is not a stranger to offering his talents in advocacies. He has been UNICEF Philippines's first National Ambassador since 1998.

At the height of the quarantine, he held a two-day virtual concert on April 18 and 19 called Hopeful, a recurring motif in the artist’s life’s work. He also performed for the unrelatedly-named Bayanihan Musikahanon March 20.

His influence and efforts were able to generate as much as P6 million in charitable donations which were used to help frontliners, unemployed freelancers, and badly-hit urban poor communities.

On a personal level, Valenciano feels a kindred spirit with those whose lives have been ravaged by COVID-19. 

It was not too long ago that someone very close to him passed away after contracting something similarly virulent. 

Last year Valenciano's mother succumbed to congestive heart failure, pneumonia, and the H1N1 flu.

BUYANIHAN, a composite of the word buy and the local idiom bayanihan, is a movement that will surely bring livelihoods back. 

For Valenciano, his generosity in BUYANIHAN may not just be an act of bayanihan, it could very well be a catharsis.

Public encouraged to ‘buy local’ to support small biz owners

The considerable resources of the Association of the Filipino Franchisers Inc. (AFFI), the Department of Trade and Industry (DTI), Go Negosyo, SM Foundation, Security Bank, and Union Bank are being brought to bear in efforts to jumpstart a languid economy stalled by the effects of the three-month long coronavirus lockdown.

The multi-sectoral group is raising awareness on the plight of millions of Micro Enterprises and Small and Mid-Sized Enterprises – collectively, the MSMEs – in the hopes of coaxing the buying public into increased patronage.

The group has thrown together a campaign called BUYANIHAN; a creative juxtaposition of the word buy and the local idiom bayanihan, referring to a spirit of communal unity and cooperation, as an economic lifeline.

Though deadly and extensive, the pandemic is not isolated on the health-front.

When the enhanced community quarantine (ECQ) was invoked throughout Luzon, establishments providing basic necessities and services were deemed essential and were allowed to remain open, albeit on a skeleton force.

Much of those belonging to the MSMEs, however, were not listed. They were hit hardest due to the closure of malls and retail establishments. As were micro enterprises like barbershops and salons, massage parlors and spas, and the neighborhood street peddlers.

“These businesses have lost a significant amount of income due to the challenges of the ECQ,” said DTI Secretary Ramon Lopez, explaining BUYANIHAN’s rationale. “We need to ensure their survival.”

DTI revealed that of the 1.42 million registered businesses, an overwhelming 99.6% belong to MSMEs, with the majority, 88.5%, classified as micro enterprises.

They generate 63.19% of the country’s total employment figures.

“MSMEs are the backbone of our economy. This virus has brought a devastating blow to the physical and financial health of our nation. And we must work together to save both,” continued Lopez. 

Prior to the ECQ, economists projected rosy targets of 6.5% to 7.5% GDP growth for the Philippines this year. 

On March 19, around when the lockdown commenced, those numbers were lowered to a pragmatic 4.3% to a dismal minus (-)3.9%.

Pessimism is reasonable, in light of the wholesale impact on declining transport, tourism, exports, remittances, and reduced consumption; historically, the main driver of the Philippine economy.

Even Facebook last May said that one in three small businesses that have shut down don’t expect to reopen again.

When you consider that most MSMEs are located at the National Capital Region, Region IV‑A (CALABARZON), and Region III (Central Luzon) – regions in the main island from which 73% of the country’s GDP comes from and where the lockdown was rigorously enforced – then the true weight of the ECQ becomes clear.

This is because MSMEs rely on cash flow for daily operations: salaries to be paid, employee benefits to be fulfilled, rent, loans, supplier accountabilities, and credit card bills are still due. Although the quarantine levels have now lightened, during the ECQ they have had zero cash flow.

Perhaps more than any entity aware of the hit that MSMEs are experiencing is the SM Group, the Philippines’ largest mall operator and consequently it’s biggest retail space lessor. 

Its SM Foundation has been generous in providing funds, medical supplies, and protective equipment. Its SM Supermalls have waived rentals from March 16 to April 14.

“We share our tenant-partners’ concerns at the unfortunate situation and will waive rental charges for those affected and unable to operate during this period,” said SM Supermalls President Steven Tan. “This support forms part of our commitment to fight the effects of the outbreak.”

That alone benefits 19,153 SM mall tenants nationwide whose doors are now slowly but surely reopening for business.

Security Bank, one of the country’s leading universal banks and cited by Asiamoney as the “Best Bank for SMEs” in 2017 and 2019, eased its process for facilitating business loans for MSMEs in need of liquidity and lowered percentage in its Ecommerce payment gateway.

“The COVID-19 pandemic has brought the world unprecedented disruption, but with each of us doing our part, we will overcome this challenge and get better,” said Security Bank President and CEO Sanjiv Vohra.

Meanwhile, Union Bank, ranked by the BankQuality Consumer Survey on Retail Banks as

the second most helpful bank in Asia-Pacific during the coronavirus crisis – the only Philippine bank in the top 20 list – eased up account openings by shifting it online and providing checking accounts with affordable depository requirements, enabling MSMEs to further legitimize their businesses.

So there is hope. 

Easing of quarantine restrictions is a good first step. Provided the population behaves in ways that stem the infectious tide, then the wheels of commerce can start turning again.

And as these economic engines came to a screeching halt, it will take no more than a concerted effort to jolt it back from inertia. A bayanihan movement, if you will. 

Or, a BUYANIHAN.

“MSMEs took a direct hit, incurred big losses,” said AFFI President Jorge Noel Wieneke. “It’s back to zero for many, or back to the starting line. They are now in the ‘ICU’ and they need a blood transfusion. We can fix this with a BUYANIHAN spirit.”

It is a simple, doable solution. Consumers just need to start consuming again. Start buying again.

But for now, buy local to support our MSMEs.