BusinessMirror September 02, 2021

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ROTARY CLUB OF MANILA JOURNALISM AWARDS

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Thursday, September 2, 2021 Vol. 16 No. 323

P.  |     | 7 DAYS A WEEK

A FISHERMAN passes by beneath the LRT Line 1 Cavite Extension in Parañaque City, which is under construction as one of the priority infrastructure projects. The extension project of the Light Rail Transit Line 1 was declared 58.03 percent complete after the girder was installed along the Manila-Cavite Expressway. NONIE REYES

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B B C

@BcuaresmaBM

HE reimposition of lockdowns in the country due to the surge in Covid-19 cases has pulled the country’s manufacturing sector back to contraction territory in August.

UNHAMPERED SUPPLY CHAINS KEY TO ASEAN RECOVERY, DTI SAYS B T J C. P @Tyronepiad

In its latest report on Philippine Purchasing Managers Index (PMI), global think tank IHS Markit said the country posted a PMI of 46.4 in August—a sharp decline from the 50.4 PMI print in July. It is also the steepest PMI contraction of the country since May last year. The August PMI also erased the early gains in the sector, particularly the PMI expansion in June and July. A country’s PMI is meant to gauge the health of its manufacturing sector. It is calculated as a weighted average of five individual subcomponents. Readings below 50 show deterioration in the in-

dustry while readings above the 50 threshold signal a growth in the manufacturing sector. “With the announcement of tightening ECQ [enhanced community quarantine] measures in early August, the latest contraction in operating conditions in the Philippines manufacturing sector came as no surprise,” IHS Markit economist Shreeya Patel said. “Factories and their clients in the Metro Manila area once again paused their production lines in a bid to curb the spread of the new delta variant. Consequently, all five C  A

Manila Water, Maynilad franchise bills to TWG

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HE Senate Committee on Public Services has decided to first refer to a technical working group the bills granting new franchises to the two biggest private water concessionaires, Maynilad Water Services Inc. and Manila Water Company. According to panel chairman Sen. Grace Poe, the committee will first review the proposed franchises pending submission of more documents by the water concessionaires. They are being asked to submit a list of the sources of their water supply, the timeline for completion of their water sources and the docS “M,” A

POE: “With such a finite resource and an everincreasing population, water shortage has always been a threat to health and economy globally. In the Philippines, the looming water crisis is characterized by constant supply interruption, lack of potable water, and higher water rates.”

PESO EXCHANGE RATES ■ US 49.7620

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EEPING global and regional supply chains open for trade facilitation amid the pandemic is key to economic recovery in the Association of Southeast Asian Nations (Asean) region, the Department of Trade and Industry (DTI) said. Trade Secretary Ramon M. Lopez told his fellow trade ministers during the 6th Belt and Road Summit on Wednesday that the Philippines prioritizes the continuous movement of goods and services amid the restrictions due to the pandemic. “For the Philippines, it is important, therefore, to support initiatives that keep markets open and ensure the unhampered flow of essential goods and services by reducing unnecessary trade measures,” he explained. The DTI chief said that ensuring trade flow will further strengthen the multilateral cooperation of the regional bloc. Citing the Philippines, Lopez pointed out that the government did not place export restrictions for essential goods, including personal protective equipment and medical devices. “It could be useful for those part of the Belt and Road Initiative to consider a similar arrangement with Asean to show our stakeholders our collective effort to ensure that supply chains remain open regardless of the pandemic and that es-

sential goods remain available to our peoples,” he said. An initiative supporting the DTI’s sentiment is the Asean’s memorandum of understanding on the implementation of non-tariff measures on essential goods, Lopez said. “It calls for Asean member-countries to refrain from introducing or maintaining trade-restrictive measures on essential goods, which is instrumental to sustain a resilient supply chain while ensuring the trade in essential goods continue to be unhampered to meet the needs of Asean businesses as well as its citizens,” he explained. Asean Secretary-General Lim Jock Hoi agreed that a regional effort is needed to overcome the Covid-19 challenges. He said that the regional bloc is “determined to stay on course for the regional integration efforts, keep markets open for trade and investment and ensure that our supply chains remain connected.” In fact, Lim said that the region is currently crafting a framework for supply chain efficiency and resilience, which is anchored in digital technology. “There is no doubt that digitalization of supply chain can create and integrate an ecosystem and become a key driver in achieving a more sustainable economic growth,” he said.

Bank lending contraction eases, nears growth level

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ANK lending in the country contracted slower in July this year, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday, marking the third consecutive month of improvement in credit conditions in the country. Data showed that bank lending contracted by 0.7 percent in July this year, easing from the 2 percent fall in the previous month. It is also the slowest contraction of loans extended by banks for the year. Bank lending first collapsed into contraction territory in December 2020 by 0.7 percent as the restrictions brought about by the pandemic affected the local banking industry. In comparison, the Philippines’s bank lending grew 13.6 percent before the onslaught of the global health crisis in March 2020. Broken down, total outstanding loans for production activities already expanded by 0.8 percent in

July following a contraction of 0.6 percent in the previous month. This is the first time that outstanding production loans have increased since the reported growth rate of 0.5 percent in November 2020. The expansion was driven by growth in loans for real-estate activities at 5.9 percent; information and communication at 14 percent; electricity, gas steam and air-conditioning supply at 2.1 percent; and transportation and storage at 7 percent. At the same time, outstanding loans to key sectors fell at a slower rate, particularly for wholesale and retail trade and repair of motor vehicles and motorcycles at 4.5 percent and manufacturing at 2.6 percent. However, consumer loans to residents went down by 8.2 percent in July from a revised 8.7-percent S “B,” A

Trade agreement

THE Asean official pointed out that member-countries should C  A

■ JAPAN 0.4524 ■ UK 68.4675 ■ HK 6.3980 ■ CHINA 7.7026 ■ SINGAPORE 37.0143 ■ AUSTRALIA 36.3959 ■ EU 58.7739 ■ SAUDI ARABIA 13.2677

Source: BSP (September 1, 2021)


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