MM COMMUNITY QUARANTINE ADVISORY

Metro Manila-wide Community Quarantine

Following the urgent meeting with the Inter-Agency Task Force for the Management of
Emerging Infectious Diseases (IATF-EID), President Rodrigo Duterte announced the 30-day
community quarantine of Metro Manila on the evening of Thursday, March 12, 2020, in an attempt
to contain the spread of COVID-19 in the Philippines. COVID-19 was declared as a pandemic by
the World Health Organization previously. Effective on March 15, the following are the measures
of the IATF-EID resolution:

• Restriction of land, domestic sea, and domestic air travel to and from Metro Manila
effective March 15 to April 14, 2020, subject to the review of the inter-agency task force
• Suspension of classes in Metro Manila (all levels) until April 12, 2020
• Suspension of work in the executive department, except for skeletal staff
• Instruction to private companies to enforce flexible work arrangements (if engaging in
manufacturing or retail, social distancing is encouraged)
• Prohibition of mass gatherings (planned or spontaneous)
• Travel restrictions to countries with COVID-19 cases except for Filipinos, permanent
visa holders, and diplomats
• Imposition of “community quarantine” in Metro Manila
• Continuous mass public transport operations with social distancing
The implementation of these measures was cascaded in the LGU level. During the quarantine
period, regular and close monitoring of these measures will be done by the Department of Health
(DOH) and the IATF-EID.
Implications on global business
According to the report, COVID-19: Implications for Business by McKinsey &
Company, COVID-19 is now propagating in countries that represent 32% of the global GDP –
China (Hubei), East Asia (South Korea and Japan), the Middle East (Iran), and Western Europe
(Italy). As the virus continues to cross more borders, the predicted global growth rate is seen to
decrease from 2.25 to 1.8 to 2.2%. Moreover, it is unlikely that the spread of the virus will be
contained in these regions due to the daily movements of people.
Among the industries seen to be likely affected are: (1) tourism and hospitality, (2) aviation
and airline, (3) automotive, (3) oil and gas, (4) consumer products, and (5) consumer electronics
and semi-conductors. As new COVID-19 cases continue to emerge globally, the demand for
domestic and international flights fall along with tourism. Reduced industry activities have led to
the steep falls in consumption of oil and natural gas. Moreover, critical disruptions in the
electronics supply chain and the global logistics market are seen as hubs for semiconductors and
fiber optics (Wuhan and South Korea) have become complexes of the virus.
The lengths and the continuity of the virus are still unknown. However, it is important that
businesses consider different possibilities in their contingency plans against the virus. McKinsey
& Company identifies three possible scenarios on the effects of the COVID-19. Companies are
advised to be prepared for every possibility:
Source: COVID-19: Implications for business, McKinsey & Company. March 2020.
Business response measures to COVID-19
Given that the business implications of the N-COV virus are still uncertain, businesses
must determine their points of action to be able to weather the storm. McKinsey & Company
suggests seven business action points for companies as they navigate their position against the
implications of COVID-19. Businesses should focus on how they can:
Business Action Points in Response to COVID-19
Protect the employees. Business as usual is not an option. Draw up and execute
a plan that is consistent with the most conservative
guidelines to support employees.

Set-up a response team. Create a team that addresses a) employees, b)

contingency plan and financial stress-testing, c) supply
chain, d) marketing and sales, and e) other relevant
constituencies. Ensure an operating cadence that is
output and decision focused.

Ensure liquidity. Define moves to stabilize the organization in each

scenario. Model the financials and identify triggers that
might significantly impair business liquidity.

Stabilize the supply chain.
Understand exposure and additional options; address
anticipated shortages; ensure resources required to
restart. Continuously improve material supply stability
and build collaborative relationship with external
partners.
 Stay close to customers. Protect customers and preserve customer loyalty.

Practice the plan.
Define the protocol for different phases and responses.
Identify key considerations: decision owner, roles for
each top member, possible risks that may slow down
response, and needed actions or investment to execute
the plan.

Demonstrate purpose. Figure out how to support response efforts.

Source: COVID-19: Implications for business, McKinsey & Company. March 2020.