Philippines to Ease Capital’s Lockdown, Local Flights Resume

(Bloomberg) -- Philippines President Rodrigo Duterte said restrictions in the capital region will be further eased from June 1, allowing the reopening of most businesses and transport including local flights despite a record rise in daily infections.

Metro Manila and three surrounding regions will be placed under a so-called “general community quarantine” -- where strict stay-at-home orders are lifted, except for the young and the elderly, Duterte said in a televised briefing in Manila late Thursday. The rest of the country will be placed under a “modified general community quarantine,” which is a transition phase to looser regulations.

Domestic flights will be allowed between areas where the rules are being eased, Transport Secretary Arthur Tugade said at the same briefing. Trains and buses can also reopen with limited capacity.

The Philippines’ benchmark stock index rose as much as 1.5% Friday to its highest in nearly two weeks following the decision to ease curbs. Airline stocks PAL Holdings and Cebu Air jumped to as much as 16% and 23% respectively.

Philippine Airlines said it shall resume operations once it has finalized its routes and flight schedules with government authorities.

Record Infections

The Philippines was among the first countries in Southeast Asia to shut down large swathes of its economy and the restrictions on movement in the capital have battered the economy, which is expected to see its deepest contraction in more than three decades.

A 1.3 trillion-peso ($25.7 billion) stimulus is being crafted to help the country bounce back, but nearly a third of Philippine businesses aren’t optimistic of their prospects even after lockdowns are lifted, asking for assistance which includes deferring loan payments, according to a National Economic and Development Authority survey published last week.

Duterte’s decision to further ease restrictions came hours after the Health Department reported a record increase of 539 daily cases, driving up total infections to 15,588, including 921 deaths as of Thursday afternoon.

The rise is expected to continue as more personnel are hired to help confirm infections, Health Undersecretary Maria Rosario Vergeire said at a briefing. She earlier said the increase is “artificial” due to new infections among returning migrant workers, which accounted for a tenth of the newly reported cases.

Duterte also said he supports the Education Department’s proposal for an online learning platform and the delivery of reading materials to students at home in the absence of face-to-face classes. The president earlier said he doesn’t want classes to resume until a coronavirus vaccine becomes available.

©2020 Bloomberg L.P.