Four industry associations have appealed for immediate government actions to help them survive the present economic crisis before they shut down their operations.

Among the immediate actions they sought is the pegging of the exchange rate at P55 to the dollar, reduction of electricity rates, establishment of a permanent, one-stop display and retail center for export products in Manila, the restructuring of exporters loans to longer payment period and the immediate release of the P1-billion export development fund committed in principle by President Arroyo this year.

The call was made by Chamber of Furniture Industry of the Philippines (CFIP) ex-president Manny Padiernos, Philippine Export Retailers and Producers Association (PERPDA) president Malou Quiroz, Christmas Decor Producers and Exporters Association of the Philippines (CDPEAP) head Ricardo Sales and the Home Accents of the Philippines Inc. (HAPI) president Amaya Bengzon.

They met at the Philexport headquarters last week to assess the impact of the crisis on their respective industries. All of them admitted their members are gasping for survival.

Leaders of the three industries also said that although their members have not reported total closures as of this week, most of them have stopped giving orders to their subcontractors as orders from abroad got scarce. They have also reduced their workers to the barest minimum.

On the proposed emergency assistance by government, the leaders requested the release of the P1-billion fund even while the Export Development Council is processing the liquidation of the P280 million for last year’s export promotions projects.

They likewise arrived at a consensus of adopting the suggestion of former Budget Secretary Benjamin Diokno for monetary officials to keep the peso-dollar rate stable at P55 to the dollar, a defense strategy adopted by Malaysia during the Asian financial crisis and a policy Japan and China have maintained for decades.

To stay afloat as foreign orders disappear, the four industry leaders were one in saying they are now aggressively selling locally just to stay afloat.

The domestic furniture industry is however facing difficulty competing with importers of furniture from Indonesia, Malaysia and China which are much cheaper. To address this, Padiernos stressed the need to re-study our tariff commitments so as not to put the local industries at a disadvantage.

They also reiterated their clamor for the setting up of a stand-by financing package which distressed companies may tap when they face cash flow problems as the crisis deepens and lingers.

While Philippine Export Zone Authority (PEZA) locators have been granted discounted power rates, they pointed out that the same privilege has not been extended to non-PEZA locators that are mostly small and medium exporters. A cut in power rates for at least the next two to three years would allow them to stay in business.