Business group appeals for stronger measures

CEBU, Philippines — The Cebu business community is calling for stronger coordination between the government and private sector as the country braces for the projected impacts of a very strong El Niño, which could increase business costs, disrupt supply chains and pose risks to public health.

Darwin Moises, vice president for partnerships, engagements, and governance of the Cebu Chamber of Commerce and Industry (CCCI), said businesses need timely, science-based information on the possible effects of prolonged dry conditions on water and power supply, agricultural production, and consumer prices.

Speaking at the Hisgutan Ta Media Forum, Moises said El Niño should not be viewed solely as an environmental concern because its effects could add to existing economic pressures, including inflation, slower growth and rising operating costs.

“The other thing also is it’s an economic issue,” Moises said, citing the country’s economic challenges as well as the effects of geopolitical tensions in the Middle East.

He said micro, small and medium enterprises (MSMEs) could be particularly vulnerable because many have limited financial capacity to absorb sudden increases in operating expenses.

Hotels, resorts and restaurants, for instance, could face higher food costs, increased cooling expenses and possible disruptions in agricultural supply chains.

Logistics companies could also be affected, as shortages of agricultural and other goods could raise transportation and distribution costs.

While agriculture could be among the sectors initially hit by prolonged dry conditions, Moises said the effects could eventually reach consumers through higher prices of food and other basic commodities.

CCCI, which has more than 900 members, has been coordinating with government agencies and other stakeholders on preparedness measures.

Moises said the chamber had previously joined discussions and an energy summit with the Cebu Provincial Government to address concerns over the power supply.

He cited projections presented during the energy discussions indicating a possible decline in hydroelectric power generation in 2027, emphasizing the need to explore alternative sources and coordinate solutions among government and industry stakeholders.

Water security is also a concern, with the chamber considering further discussions with relevant stakeholders to determine possible supply gaps and identify measures to lessen the impact of El Niño.

Moises called for government agencies to provide more comprehensive baseline assessments on the possible effects of the weather phenomenon on electricity, water availability, agricultural production and food prices.

He said such data would allow businesses and policymakers to prepare appropriate measures before the impacts become severe.

Moises also urged the national government to pursue longer-term economic interventions to ease the burden on workers and businesses instead of relying mainly on one-time financial assistance.

While he welcomed government programs intended to support workers and struggling enterprises, he said their effectiveness would depend on how quickly and efficiently assistance reaches qualified beneficiaries.

He stressed the need to balance workers’ welfare with the capacity of businesses to remain operational amid rising expenses.

Beyond business continuity, Moises raised concerns over the possible impact of prolonged heat on schools and learning.

He urged authorities to assess preparedness gaps based on previous periods of high heat index and class suspensions, particularly if extreme heat conditions persist.

For CCCI, Moises said stronger collaboration among government agencies, local government units and the private sector would be critical in addressing the projected impacts of El Niño.

“No single organization can address the challenges alone,” he said, underscoring the need for a coordinated response to protect businesses, workers and consumers. (CEBU NEWS)