Businesses will take a “wait-and-see” this year on concerns over the impact of high inflation and interest rate, San Miguel Corp. president Ramon Ang said.
“We don’t know what’s going to happen to the economy because there is a two front war—Ukraine war and Israel-Hamas war, so nobody knows what’s going to happen,” Ang said.
He said businesses were also concerned over the impending El Nino drought, the increases in the rice prices and political movements.
“So we are worried about inflation, overall for business, because of the high interest rate to fight inflation, and Ukraine war and Hamas war. I think businessmen are all adopting a stance of wait and see,” he said.
He said a slowdown in economic growth would also result in reduced electricity demand.
“I think there is no demand for additional electricity in the next three years. I think the time when we will need additional electricity is 2027 and 2028, if the economy will grow at 5 percent per year. But what if the economy will not grow? Because a lot of things are happening today?” Ang said.
San Miguel subsidiary San Miguel Global Power Holdings Corp. (SMCGP) is one of the most aggressive power players in the country with its hydro, coal, liquefied natural gas and battery energy storage systems.
Ang said if the economy is weak, there would be surplus electricity amid low demand.
San Miguel is one of the biggest conglomerates in the country with investments in food, beverage, agribusiness, infrastructure and services.