Ukraine war impact on PHL mild—think tank B C U. O @caiordinario
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HE war in Eastern Europe will cause inflation to breach the Central Bank’s target this year because of spiraling crude oil and commodity prices, according to a local think tank. However, First Metro Investment Corporation-University of Asia and the Pacific (FMIC-UA&P) Capital Market Research said the conflict’s impact on the Philippine economy will be “mild.” “However, its [Russia-Ukraine war] impact on the economy will likely turn out mild amid heavy election spending in H1 and grow-
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ing business confidence and robust earnings,” FMIC-UA&P Capital Market Research said. “Despite an acceleration in M3 growth, BSP [Bangko Sentral ng Pilipinas] has reiterated, and we think so too, their determination to keep policy rates unchanged for most of 2022,” it added. The impact of the war in Eastern Europe on the economy will be cushioned by election spending expected in the first semester of 2022; growing business confidence; and robust earnings. The think tank said national government spending is expected to accelerate as the May 2022 Presidential elections draw near.
FMIC-UA&P Capital Market Research said government spending slowed in December in preparation for 2022 and in light of the cashbased budget system.
Manufacturing boost
THE think tank also said business firms and workers anticipated the relaxation of Covid-19-related restrictions in late February. This has allowed the country’s manufacturing Purchasing Managers’ Index (PMI) to jump to 52.8 in the same month from 50 in January 2022, representing a 26-month high for PMI. Further, FMIC-UA&P Capital Market Research said business
confidence is also improving because of the growth in the import of capital goods at 16.8 percent. This marked the 9th consecutive month of year on year gains. However, the Russia-Ukraine war will cause inflation to reach 4 percent in March, and this could continue the pressure on the peso to depreciate, it pointed out. “The dollar-peso rate, which breached P52/$ in early March, will remain under pressure until the Russia-Ukraine conflict gets some reasonable form of resolution,” the think tank said. Earlier, the National EconomS “U,” A
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Thursday, March 31, 2022 Vol. 17 No. 174
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Construction begins in H1 for ADB-aided NCR bridges
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@llectura
XPECT power interruptions and soaring electricity rates this summer because of unplanned and prolonged shutdown of most power plants, an independent energy think tank warned on Wednesday.
During a virtual press briefing held Wednesday afternoon, the chief data scientist of the Institute for Climate and Sustainable Cities (ICSC), Jephraim Manansala, cited outages of large coal power plants in the first quarter of this year up to today, despite the Grid Operating and Maintenance Program (GOMP) approved by the Department of Energy (DOE) which allowed planned and scheduled outages only until March 25. The GOMP is a consolidated preventive maintenance schedule of power plants, considering the needed supply to meet the projected demand. This year’s GOMP was approved by the DOE last January 10. The power plants cited by ICSC include: ■ GN Power Dinginin Unit 1, which had 34 days of outages in 2022, contributing to the yellow alert status in January 11 and March 26; ■ Calaca Unit 2, which has not been operational this first quarter; ■ GN Power Mariveles Unit 1, which has experienced multiple shutdowns in the same period; ■ SLTEC Units 1 and 2, where Unit 1 had 18 days of unplanned outages this year and Unit 2 had 81 days of outages in the same period and still remains on shut down; ■ SLPGC Unit 1 and 2, where Unit 1 had eight days of outages this quarter while Unit 2 had 54 days of unplanned shutdowns in the same period, contributing to the yellow alert status in March 26; and ■ Sual Unit 1 and 2 where Unit 1 had four days of outages in 2022
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ONSTRUCTION of three Metro Manila bridges funded by the Asian Development Bank (ADB) is set to begin in the first half of this year, Finance Secretary Carlos G. Dominguez III said. Financed through a $175.1-million (about P8.8 billion) loan from the ADB, the three climate-resilient bridge projects spanning over 3 kilometers across the Marikina River are seen to decongest Metro Manila’s traffic-heavy areas. The loan for the three bridges was approved by the ADB in December last year and became effective on February 10, 2022. The three bridge projects—the Marcos Highway-Saint Mary Avenue Bridge, Homeowner’s Drive-A Bonifacio Bridge, and the Kabayani Street-Matandang Balara Bridge— are due for completion in 2026 and are among the 12 to be built under the Metro Manila Bridges Project. The Department of Public Works and Highways earlier filed for the exemption of 18 infrastructure projects from the election ban, including the Metro Manila Bridges Project, based on the list obtained by the BM. The ban C A
ISUZU MAKATI WITH IOS DESIGN REOPENS Isuzu Gencars Inc. celebrated the reopening of its maiden dealership, Isuzu Makati, on March 30, 2022, after adopting the Isuzu Outlet Standard or IOS. Gencars Chairman D. Edgard A. Cabangon led Gencars executives in welcoming the delegation from Isuzu Philippines Corp. (IPC), headed by its president, Hajime Koso. Posing in front of the new Isuzu Makati IOS showroom at the corner of Chino Roces Ave. and Dela Rosa St. in Makati City, after cutting the ribbon (photo below) to reopen Isuzu Makati, are: (from left) Arch. Rafael Tecson of RDB Tecson and Associates, contractor of the Isuzu Makati IOS project; Shojiro Sakoda, Executive Vice President of IPC; Hajime Koso, D. Edgard A. Cabangon, Lerma Nacnac, Isuzu Gencars President; and Giannina Eunice Cabangon, Special Assistant to the President. PATRICK DIZON/ROY DOMINGO
B.A.I. TIGHTENS RULES ON POULTRY AS BIRD FLU AFFECTS 7 PROVINCES B J E Y. A
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@jearcalas
HE Bureau of Animal Industry (BAI) has further tightened its rules and regulations on poultry industries in the country to curb the spread of bird flu that has affected at least seven provinces this year. The BAI, an attached bureau of the Department of Agriculture (DA), issued Memorandum Circulars (MC) 9 and 10 that seek to further strengthen the government’s efforts against bird flu. The bureau’s MC 9 ordered the resumption of avian influenza (AI) testing for transport requirement and renewal
of poultry layer farm, poultry breeder farm and gamefowl farm certification. “In light of the recent outbreaks of AI in the country, testing shall be enforced for the purposes of renewal of poultry layer farm, poultry breeder farm and gamefowl farm certification and bi-annual AI monitoring,” the document read. “Said animal facilities are still subjected to the mandatory bi-annual inspection to be conducted by the local government veterinary services,” the document added. The MC 9 stipulated that farm owners must submit an inspection report and AI negative results for the issuance of farm certification, which is also known as the animal disease monitoring
compliance certificate. “All other avian species are still subjected to testing for the purposes of local movement, farm registration and disease monitoring,” it read. The BAI also issued MC 10 that suspended the issuance of pigeon club animal disease monitoring compliance certificates until Department of Agriculture (DA) MC 5 and 6, Series of 2022, are lifted. The BAI issued MC 10 after it received reports of continuous “pigeon transport, racing, training and breeding” despite temporary suspension under DA MC 5 and 6. The DA MC 5 and 6 outlined the rules S “BAI,” A
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PESO EXCHANGE RATES
■ US 52.0690 ■ JAPAN 0.4237 ■ UK 68.2104 ■ HK 6.6526 ■ SINGAPORE 38.3961 ■ AUSTRALIA 39.0986 ■ SAUDI ARABIA 13.8758 ■ EU 57.7445 ■ CHINA 8.1824
Source: BSP (March 30, 2022)