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Malaysia takes on ASEAN mantle but tempers expectations on Myanmar, South China Sea

In this photo illustration, the Association of Southeast Asian Nations (ASEAN) emblem is seen on a smartphone screen in front of the ASEAN flag. — PAVLO GONCHAR / SOPA IMAGES/SIPA VIA REUTERS CONNECT

LANGKAWI, Malaysia — Southeast Asian foreign ministers hold a closed-doors retreat in Malaysia on Sunday, as the country hosts its first meeting as chair of the regional bloc ASEAN amid an intensifying civil war in Myanmar and confrontations in the South China Sea.

Malaysia takes its turn as rotating chair of the 10-member Association of Southeast Asian Nations (ASEAN) as the bloc contends with Beijing’s assertiveness in the South China Sea and a faltering ASEAN peace process for Myanmar, where the ruling military plans to hold an election this year.

Malaysia is committed to addressing regional issues, but expectations on Myanmar and the advancing of talks on an ASEAN-China code of conduct for the South China Sea should be measured, a top official said.

“To say that we will have a solution immediately is going to be very ambitious,” Malaysian foreign ministry secretary general Amran Mohamed Zin told a media briefing ahead of the retreat on Langkawi island.

Myanmar has been in turmoil since early 2021 when its military overthrew an elected civilian government, triggering pro-democracy protests that morphed into a widening armed rebellion that has taken over swathes of the country.

Despite being battered on multiple frontlines, its economy in tatters and dozens of political parties banned, the junta is pushing to hold an election this year, which critics have widely derided as a sham to keep the military in power through proxies.

ASEAN has so far failed to implement a “Five-Point Consensus” peace plan unveiled months after the coup, which prescribes dialogue and an end to hostilities, and it has yet to discuss a common position on the election.

“Everybody wants to help Myanmar … engagements have happened and will continue under Malaysia’s chairmanship,” Mr. Amran said.

‘TENTATIVE PROGRESS’
Each ASEAN member state has a role to play in ensuring the South China Sea is a “sea of peace and trade”, Mr. Amran said, adding tentative progress has been made towards creating a code of conduct with China, which claims sovereignty over most of the strategic waterway.

The South China Sea, a conduit for about $3 trillion of annual ship-borne trade, has been the site of heated standoffs in the past two years between ASEAN member the Philippines and China, a major source of the region’s trade and investment.

Vietnam and Malaysia have also made protests over the conduct of Chinese vessels in their exclusive economic zones, which Beijing says are operating lawfully in its territory.

The Philippine foreign minister on Saturday told Reuters it was time to start negotiating thorny “milestone issues” for the protracted code, including its scope and whether it can be legally binding.

Adib Zalkapli, managing director at geopolitical research firm Viewfinder Global Affairs, said there was political will in Malaysia to push for a political resolution for Myanmar, but concrete progress on rules for the South China Sea was unlikely under Malaysia’s chairmanship.

“It remains an issue that the claimant states have to manage and contain, to ensure it does not unnecessarily escalate,” Mr. Adib said. — Reuters

TikTok goes dark for US users; company pins hope on Trump

WASHINGTON — TikTok stopped working in the United States late on Saturday and disappeared from Apple and Google app stores ahead of a law that takes effect on Sunday requiring the shutdown of the platform used by 170 million Americans.

President-elect Donald Trump has said he would “most likely” give TikTok a 90-day reprieve from the ban after he takes office on Monday, a promise TikTok cited in a notice posted to users on the app.

“A law banning TikTok has been enacted in the US. Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned,” the message notified users trying to use the app late on Saturday night.

Even if temporary, the unprecedented shutdown of TikTok, owned by China’s ByteDance, is set to have a wide-ranging impact on US-China relations, U.S. domestic politics, the social media marketplace and millions of Americans who depend on the app economically and culturally.

The United States has never banned a major social media platform. The law passed overwhelmingly by Congress gives the incoming Trump administration sweeping authority to ban or seek the sale of other Chinese-owned apps.

Other apps owned by ByteDance, including video editing app CapCut and lifestyle social app Lemon8, were also offline and unavailable in US app stores as of late Saturday.

“The 90-day extension is something that will be most likely done, because it’s appropriate,” Mr. Trump told NBC. “If I decide to do that, I’ll probably announce it on Monday.”

It was not clear if any US users could still access the app, but it was no longer working for many users, and people seeking to access it through a web application were met with the same message that TikTok was no longer working.

TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, warned on Friday it would go dark in the US on Sunday unless President Joseph R. Biden’s administration provided assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect.

MOVE TO ALTERNATIVES
Under the law passed last year and upheld on Friday by a unanimous Supreme Court, the platform had until Sunday to cut ties with its China-based parent or shut down its US operation to resolve concerns it poses a threat to national security.

Mr. Biden’s White House reiterated on Saturday that it was up to the incoming administration to take action.

“We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday,” press secretary Karine Jean-Pierre said in a statement.

TikTok did not respond to a request for comment on the White House statement.

The Chinese embassy in Washington on Friday accused the US of using unfair state power to suppress TikTok. “China will take all necessary measures to resolutely safeguard its legitimate rights and interests,” a spokesperson said.

Uncertainty over the app’s future had sent users — mostly younger people — scrambling to alternatives including China-based RedNote. Rivals Meta and Snap have seen their share prices rise this month ahead of the ban, as investors bet on an influx of users and advertising dollars.

“This is my new home now,” wrote a user in a RedNote post, tagged with the words “tiktokrefugee” and “sad.”

Minutes after TikTok’s US shutdown, other users took to X, formerly called Twitter.

“I didn’t really think that they would cut off TikTok. Now I’m sad and I miss the friends I made there. Hoping it all comes back in just a few days,” wrote @RavenclawJedi.

‘HAIR ON FIRE’ MOMENT
NordVPN, a popular virtual private network, or VPN, allowing users to access the internet from servers around the world, said it was “experiencing temporary technical difficulties.”

Web searches for “VPN” spiked in the minutes after US users lost access to TikTok, according to Google Trends.

Users on Instagram fretted about whether they would still receive merchandise they had bought on TikTok Shop, the video platform’s e-commerce arm.

Marketing firms reliant on TikTok have rushed to prepare contingency plans in what one executive described as a “hair on fire” moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

There have been signs TikTok could make a comeback under Mr. Trump, who has said he wants to pursue a “political resolution” of the issue and last month urged the Supreme Court to pause implementation of the ban.

TikTok chief executive officer  Shou Zi Chew plans to attend the US presidential inauguration and attend a rally with Mr. Trump on Sunday, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok’s US operations to billionaire and Trump ally Elon Musk, though the company has denied that.

US search engine startup Perplexity AI submitted a bid on Saturday to ByteDance for Perplexity to merge with TikTok US, a source familiar with the company’s plans told Reuters. Perplexity would merge with TikTok US and create a new entity by combining the merged company with other partners, the person added.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the US. — Reuters

Displaced by California fires, Angelenos anxiously search for somewhere to live

SMOKE rises from a wildfire burning near Pacific Palisades on the west side of Los Angeles during a weather driven windstorm, in Los Angeles, California, Jan. 7, 2025. — REUTERS

THOUSANDS of Angelenos who lost their homes in some of the most destructive wildfires in California history find themselves in fierce competition with one another for an affordable place to live in Los Angeles’ post-disaster housing market.

The fires have killed at least 27 people as of Friday and destroyed more than 10,000 structures in the residential enclaves of Pacific Palisades and Altadena. In the wake of the fires, rents have surged and uncertainty over insurance settlements has left some of the displaced in limbo.

In interviews this week, Angelenos described the anguish of exile from beloved neighborhoods and the daunting task of figuring out what comes next for themselves and their families. Here are some of their stories:

‘TOTALLY CRAZY’ RENTAL MARKET
John Adolph, a 48-year-old video producer, and his wife, two small children and two dogs have been staying with friends since they fled their Altadena home a week ago. Their ranch-style home of six years near the Angeles National Forest was totally destroyed in the Eaton Fire.

“We thank God we’re safe, but we don’t know what’s next,” he said. “We both are lucky, our jobs are still here. I know people who have lost their livelihoods and have to start totally over. We’re still employed.”

Mr. Adolph and his wife, Christine, are lifelong Angelenos, and have no plans to move from the area permanently “unless it’s done kicking and screaming,” he said.

For now, the family was content to stay with friends, but knows it’s a lot to ask long term. They were already looking at rental apartments.

“We have two kids and older dogs, we can’t just bounce from hotel rooms to Airbnbs,” he said. “We need something stable for the kids.”

When they went to view a rental, there were already six families lined up ahead of them.

“It’s totally crazy,” Mr. Adolph said. “It’s going in insane mode.”

Even though his home was insured, he worries that surging construction costs and new insurance rates might price them out of their own neighborhood.

“So it’s up in the air if we can actually rebuild,” he said. He has no idea how long the county will take to clear the debris before they can even start. “We’d really love to stay, but who knows, we don’t know.”

‘MUSICAL CHAIRS’
On the GoFundMe page set up by Kate Alexandria, she includes a photograph of the fire consuming her rental apartment in Altadena and says her credit cards are maxed out. People had donated more than $3,000 as of Friday.

Ms. Alexandria, a 27-year-old grant writer, moved to Los Angeles three years ago from Grass Valley, a small city north of Sacramento, after becoming unnerved by nearby devastating wildfires.

She was renting what she described as an illegally converted apartment in Altadena above garages filled with fuel, paint and other fire accelerants. For a time, she split the $2,000 monthly rent, a bargain in Los Angeles, with a roommate.

After the fire, the landlord refunded January’s rent, but she still has not got back her $2,000 security deposit, which she says she sorely needs.

Ms. Alexandria says she takes about 40 different medicines to control the painful symptoms of a disability, but most of the drugs were destroyed by the fire. Replacing the prescriptions will cost hundreds of dollars.

Her cat is staying at a friend’s house in nearby Pasadena that’s under renovation, while she crashes at the home of a friend’s mother in Van Nuys, about 20 miles west of Altadena, until Saturday, when the mother returns from a trip. Most days she shuttles between the two places.

“It’s going to be musical chairs for a bit,” she said. FEMA has approved her for an initial payment of $770, not much in a city as expensive as Los Angeles. She is trying to get approved for a disaster credit from Airbnb.org, which would get her at least a few days in a rental.

California bans hiking prices by more than 10% in a declared disaster, yet rents have surged all the same. As Ms. Alexandria browsed apartment listings, places that were listed at $2,000 a month in January were now going for more than $3,000, she said.

She is dismayed at what she called the “ghoulishness” of landlords, but dreams of returning to her beloved neighborhood.

“It’s just the weirdest and most wonderful place in Los Angeles,” she said.

‘FEELS LIKE A GHOST TOWN’
“I feel like where you live is part of your identity,” said Deisy Suarez-Giles, who lost the four-bedroom Altadena home she bought in 2021 and the garden of citrus and avocado trees she planted on the property. “I feel like part of who we are is gone.”

She and her husband, Keith Giles, have secured a hotel room in downtown Los Angeles near their spa business at about $170 a night, a sort of employee discount because the hotel uses their masseurs.

On Friday, they shifted to a free rental apartment donated by Airbnb for 10 days. After that, they do not know where they will end up.

The couple sent their two young sons to relatives in Florida, until some stability can be restored.

She and her husband still have to pay the mortgage every month on their destroyed home, on which they still owe $850,000. Mortgage payments are more difficult now because they had partly relied on the rent paid by a tenant living in a studio at the back of the house. And their spa business is suddenly slow.

“We’ve been struggling and now with the fire it just feels like a ghost town,” she said. “Nobody’s mindset right now is ‘spa’.”

She is waiting to hear from the insurer on how much of their expenses over the next 12 months it will reimburse. Before beginning their rental search in earnest, they need to know their budget.

They have put some feelers out, but a new Christmas puppy for the boys is proving an easy reason for landlords to dismiss them: “No pets.”

‘FORTUNATE AND BLESSED’
Kathleen McRoskey closed the deal to buy her two-story, four-bedroom home on the day of the 1994 earthquakes, and left it last week just before it was consumed by the Palisades Fire.

She and her husband, Mike, both grew up within a few miles of the Palisades and met in first grade. They have resolved to stay in the neighborhood where they raised their four children.

The family is now staying at her husband’s sister’s house near the University of California, Los Angeles.

“It’s invaluable to be with family and to be within miles of where we lost our home,” Ms. McRoskey said. “On the other hand, we’re putting a burden on her.”

Navigating the Los Angeles market has been a jolt. A tip from her husband’s friend who works in real estate about an unlisted rental house in Santa Barbara led to an early-morning viewing of the property that she said felt like a “drug deal.”

They know they have a relatively generous budget because, a few months ago, her husband decided to increase their fire insurance coverage after helping an elderly woman who struggled to file claims after losing a home in the 2018 fire in Malibu.

“We are extremely fortunate and blessed,” she said.

They hope to move up the coast to Santa Barbara in February, when they will start to think about the years-long process of building a new home on their Palisades property.

“We never dreamed of rebuilding in our 70s,” she said. — Reuters

From hospitality dreams to AR realities: Joon Yung Min’s Mobile Marble Race revolution

Joon Yung Min, a 35-year-old Korean visionary, has redefined online gaming with his revolutionary platform, Mobile Marble Race. Combining augmented reality (AR) with interactive gameplay, this dynamic platform has captured the imagination of millions worldwide, solidifying Min’s position as a trailblazer in the tech industry.

From Gamer to Game Developer

Mr. Min’s passion for gaming quickly transformed into a career pursuit. Following a short stint in the hospitality industry, he dove headfirst into learning coding, graphic design, and game development. Over a decade, he cultivated the skills and entrepreneurial mindset necessary to bring his vision to life.

In 2024, Mr. Min launched Mobile Marble Race, a groundbreaking platform that merges AR technology with engaging gameplay. Designed to appeal to players across all age groups, the game offers:

Customizable Tracks: Players can design their marble racecourses with unique themes.

Interactive Worlds: Dynamic environments evolve based on player interactions.

Community Focus: Global leaderboards and team challenges foster collaboration and competition.

A Global Phenomenon

Mobile Marble Race quickly gained traction, earning a devoted fanbase and attracting significant investments from top tech firms. Its adaptability, inclusivity, and focus on community have made it a worldwide success.

“Creating Mobile Marble Race allowed me to fulfill my childhood dream of crafting spaces where everyone feels welcome — this time, in a virtual world,” Mr. Min shares. The platform’s global reach has united players from diverse cultures, offering a shared space for creativity and collaboration.

Future Frontiers

As Mobile Marble Race continues to dominate the gaming world, Mr. Min remains focused on innovation. His future plans include expanding the game’s AR capabilities and introducing new features that push the boundaries of interactive entertainment.

 


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Globe named Rising Star at 2024 HireVue Customer Excellence Awards

Globe has been honored as a Rising Star at the 2024 HireVue Customer Excellence Awards in recognition of its commitment to elevating talent acquisition and management.

The award is presented to new HireVue customers or those who have implemented a HireVue solution from 2023 to 2024. HireVue is a pioneer and global leader in Human Potential Intelligence.

Globe maintains high standards for talent by utilizing global best practices, such as the HireVue assessment process. Its pilot run of HireVue solutions last year yielded improved results in sourcing top candidates and enhancing the overall hiring experience for managers, strengthening its position as a leading employer in the Philippines.

“This award affirms our ongoing efforts to adopt global best practices in talent acquisition, highlighting our progress in enhancing recruitment efficiency, candidate experience, and hiring manager satisfaction,” said Renato Jiao, Globe’s Chief Human Resources Officer.

Globe Chief Human Resources Officer Renato Jiao

The recognition was accompanied by a congratulatory message from Geoff Camplin, Senior Vice President of Customer Success at HireVue, who said: “Your submission exemplifies the incredible work you are doing to raise the standard of hiring. We are incredibly grateful for your partnership and the opportunity to work alongside you.”

Now in its fourth year, the 2024 HireVue Customer Excellence Awards celebrated 20 outstanding companies across various categories from North America, Europe, the Middle East and Africa (EMEA), and Asia Pacific (APAC). Notable winners include the Emirates Group, Philips Electronics, AT&T, Dyson Technology Ltd, and Willis Towers Watson.

Globe’s inclusion among these industry leaders is a testament to its strategic drive towards excellence in human resource practices.

By integrating technology-driven solutions like HireVue, Globe streamlines its recruitment process, demonstrating its commitment to cultivating a culture that attracts and retains exceptional talent.

For more updates on Globe’s hiring initiatives and available career opportunities, visit www.globe.com.ph.

  


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Driving growth and leadership: Global Dominion wins big at 2024 Global Economics Awards

Global Dominon Financing, Inc. President and Managing Director, Patricia Poco-Palacios

By Jay Ann Bonghanoy

Global Dominion has solidified its excellence in the financial services industry by receiving two prestigious awards at the 2024 The Global Economics Awards. The company was named the “Fastest Growing Business Owners Financing Solutions Provider,” while its President and Managing Director, Patricia Poco-Palacios, earned the title “Woman Leader of the Year in SME Financing.” The awards ceremony, held on Jan. 8, 2025, in Bangkok, Thailand, celebrated innovation and excellence among global industry leaders.

These awards highlight Global Dominion’s significant contributions to the financial empowerment of business owners and the exceptional leadership of Patricia Poco-Palacios. “We are truly honored and grateful to receive the Global Economics Awards. Two awards for the Philippines, the — ‘Fastest Growing MSME Financing Solutions Provider’ and the ‘Woman Leader of the Year in SME Financing.’ This inspires us to keep on working hard in the service of our clients and to truly look forward to a better 2025,” Poco-Palacios remarked.

Global Dominion’s recognition underscores its commitment to addressing challenges faced by MSMEs. The company consistently delivers innovative financing solutions designed to help businesses thrive in competitive markets. By simplifying loan processes, offering competitive interest rates, and creating tailored financing packages, Global Dominion has become a trusted partner for business owners aiming to achieve their goals and dreams.

To further support business owners, Global Dominion has implemented several initiatives. These include specialized loan packages for sectors such as Car and Truck Refinancing (Sangla ORCR), Real Estate Mortgage (Sangla Titulo), Real Estate Financing, Brand New Car and Truck Financing, and Second-Hand Car and Truck Financing. The company also organizes workshops and financial literacy programs to equip business owners with knowledge on effective financial management and strategic growth.

Global Dominion catered to almost 10,000 SMEs in 2024, reflecting its expansive reach and dedication to empowering business owners nationwide. By partnering with industry associations and local communities, the company continues to identify growth opportunities and provide customized financing solutions tailored to expansion goals.

These efforts demonstrate Global Dominion’s commitment to providing more than just financial support, empowering business owners with tools and resources for long-term success while fostering sustainable growth in the financial sector.

 


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PBEd backs amendments for teachers’ licensure

PHILIPPINE STAR/ MICHAEL VARCAS
The Philippine Business for Education (PBEd) said on Wednesday that it supports the amendments in Senate Bills (SBN) 2830, 2840, and 2884 because these are “crucial steps” towards improving teacher professionalization.
PBEd strongly supports bills seeking to amend the Philippine Teacher Professionalization Act of 1994 to address the evolving needs of teachers and the education sector,” the industry-led advocacy group said in a press release.
The key amendments include addressing the misalignment between the examinations with the current promulgated undergraduate courses, refresher courses before re-examination for takers who have failed three times, and allowing “flexible teacher licensure, acknowledging the diverse experiences and qualifications of teaching professionals.”
“These bills allow graduates from accredited high-performing teacher education institutions (TEIs) to submit portfolios instead of taking the written licensure examination,” the PBEd said.
“This pathway may only be applicable for a select number of high-performing TEIs, but is also nonetheless a forward-looking incentive that will encourage quality at the pre-service level,” it added.
The Second Congressional Commission on Education (EDCOM 2) Co-Chairperson Senator Sherwin T. Gatchalian, EDCOM 2 Commissioner Senator Loren B. Legarda, and Senator Ramon “Bong” B. Revilla, Jr. filed the amendments.
“Just imagine the last time we had an amendment to this law was 31 years ago,” Mr. Gatchalian said on Tuesday.
The Republic Act 7836, or the Philippine Teacher Professionalization Act of 1994, was passed into law following the recommendations of the first EDCOM and was ‘partially amended’ in 2004 through the Republic Act 9293.
“We would also like to know how we could future-proof this law so that we can continuously respond to the changing or the evolving situation in the teaching profession,” Mr. Gatchalian added.
“It is clear that the amendment of this law is long overdue and is critical in addressing the learning crisis we are facing today,” EDCOM 2 Executive Director Karol Mark R. Yee said in a statement. – Almira Louise S. Martinez

China 2024 pork output falls for first time in four years

REUTERS

 – China’s pork production in 2024 fell for the first time after rising for three years straight, official data showed on Friday, as livestock companies reduced slaughter rates due to ample hog supply and weak meat demand.

The world’s biggest pork-producer generated 57.06 million metric tons of pork in 2024, down 1.5% from 57.94 million tons in 2023, which was the second-highest on record.

Farmers slaughtered 702.56 million hogs in 2024, down 3.3% from a year earlier, the data showed.

China accounts for about half of the world’s pork consumption. The winter season during the fourth quarter is typically a high season for pork and cured meat consumption.

In the fourth quarter, production fell by 1.8% year-on-year to 14.66 million metric tons, a decrease from a year earlier for the fourth consecutive quarter, according to Reuters calculations of the data from the National Bureau of Statistics.

Despite tepid demand, some companies ramped up production in the fourth quarter after inventory and cost cuts helped them return to profitability.

Many of China’s large hog companies are now expecting to raise slaughter rates in 2025 after slowing down production in 2024.

Wen’s Foodstuff Group 300498.SZ said it aims to slaughter 34 million hogs this year, a year-on-year increase of 12.65% compared with 2024, while New Hope 000876.SZ plans to slaughter 1 million to 2 million more hogs.

China’s pig herd stood at 427.43 million at the end of December, a decrease of 1.6%, the data showed.

The sow herd was down 1.9% at 40.80 million at the end of November, according to separate data from China’s agriculture ministry.

Despite a smaller herd size, analysts expect China’s hog supply in 2025 to remain in excess of demand and pressure prices due to improved productivity of sows.

Cash hog prices have fallen to below 16 yuan per kg since December and have remained around that level, down from a peak of 21 yuan in August, according to data from consultancy MySteel.

In a report on Friday, it said prices may come under pressure in the months ahead following the Lunar New Year later this month.

“After the Lunar New Year, as the market enters the traditional off-season and slaughterhouse orders decrease, hog prices may face a downturn, with lower procurement costs for slaughterhouses and more negative factors leading to a decline in wholesale pork prices,” the report said.

China’s beef output rose last year by 3.5% to 7.79 million tons. Poultry output increased 3.8% to 26.6 million tons and lamb and mutton decreased 2.5% to 5.18 million tons. – Reuters

Japan foreign minister to highlight defense spending, investment at Trump inaugural

PHILIPPINE STAR/EDD GUMBAN

 – Japan’s foreign minister said on Friday he would highlight the economic and national security value that the United States’ key Asian ally offers during his visit to Washington for President-elect Donald Trump’s inauguration on Monday.

During his four-day stay beginning Sunday, Foreign Minister Takeshi Iwaya will be the first senior Japanese official to meet members of the incoming president’s governing team.

Mr. Iwaya said he was likely to meet with Trump’s pick for secretary of state, Senator Marco Rubio, who is expected to be confirmed on Monday.

Mr. Iwaya said Japan’s commitment to allocating 2% of gross domestic product to defense by 2027, in line with its national security strategy, was steadily progressing.

“Japan’s status as the leading U.S. investor over the past five years also demonstrates our contributions,” Mr. Iwaya said at a regular press briefing. “I will thoroughly explain and ensure understanding of these efforts,” he added.

Despite Japan’s deep economic and security ties with the U.S., including a decades-long military alliance that provides Washington with military bases on China’s doorstep, Tokyo is unsure whether Japanese goods, such as automobiles, will be subject to the trade tariffs that Trump has said he will impose on imports.

Mr. Iwaya, who is making his first visit to the U.S. since taking up his post in October, said his trip will pave the way for a first meeting between Trump and Japanese Prime Minister Shigeru Ishiba, which is expected to take place next month. – Reuters

Vietnam central bank orders two bank takeovers in system restructure

Source: https://www.sbv.gov.vn/

 – Vietnam’s central bank directed two leading commercial banks to take over underperforming rivals on Friday, as part of a drive to restructure the banking system and tackle bad debt that it said was necessary for political stability and social order.

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) will take over GPBank, and Ho Chi Minh City Development Bank (HDBank) will take over DongA Bank, the State Bank of Vietnam said in a statement.

“The compulsory transfer of weak credit institutions is one of the solutions to contribute to ensuring macroeconomic stability, national financial and monetary security, political stability and social order and safety,” the central bank said.

In 2023, the central bank had said it planned to restructure four poorly-performing banks, including via forced takeovers by established lenders. Two takeovers were done last year.

HDBank said its takeover of DongA would enable it to expand operations, boost lending and develop new business models. In a statement, HDBank said it would receive support from the central bank to ensure the takeover is effective.

“HDBank will focus its resources and restructuring experience to accompany and support DongA Bank in consolidating its operations and overcoming existing problems, aiming to build DongA Bank into a bank with healthy, safe and sustainable finances,” it said.

VPBank said it would contribute up to 20% of its charter capital to help state-owned GPBank, and once the transfer was completed it could retain GPBank as a subsidiary or sell it.

The aim of the mandated takeover was “gradually improving GPBank’s normal operations, addressing its weaknesses and transforming GPBank into a healthy and continuously operational entity”, VPBank said in a statement. Last year, Vietcombank VCB.HM and Military Commercial Joint Stock Bank MBB.HM took over smaller lenders Construction Bank and Ocean Bank, respectively, as part of the restructuring drive.

The SBV has also had Saigon Joint Stock Commercial Bank, better known as SCB, under special supervision since October 2022.

Last year the central bank mounted an unprecedented rescue of SCB after it became embroiled in the country’s biggest financial fraud. Reuters reported in April the SBV had pumped in $24 billion in “special loans” to prevent its collapse. – Reuters

China’s carbon power rises in 2024, defying expectations of coal peaking

REUTERS

 – China’s mostly coal-powered thermal generation ticked up 1.5% in 2024, official data showed on Friday, defying expectations that coal generation was peaking, although growth slowed to the lowest in nine years excluding the years of the COVID-19 pandemic.

The data highlighted the challenges in phasing out coal-fired power while meeting China’s burgeoning need for power to fuel energy-hungry industries and the electrification of its economy.

Power sector emissions in particular are considered key to China’s decarbonization because of the wide-scale electrification of China’s economy, typified by its shift to electric vehicles.

Thermal power generation, which comes mostly from coal while natural gas-fired power plants contribute a small portion, was 6.34 trillion kilowatt-hours (kWh) last year, up 1.5% on the previous year, according to the National Bureau of Statistics.

Peng Chengyao, director for China power and renewables at S&P Global Commodity Insights, said thermal generation came in higher than the consultancy’s outlook at the beginning of the year because of higher-than-expected growth in power demand.

For December alone, however, thermal power output fell 2.6% on the year to 827 billion kWh.

Analysts also pinned full-year thermal power growth on weaker-than-expected hydropower output and a scorching summer that pushed up power demand.

Hydropower, China’s second-largest power source, recorded its highest output growth in a decade, but that came off a low base as the sector recovered from a punishing drought in 2023.

“Around September, hydropower had a really sharp drop off … It was just a little better than the severe drought conditions of the year before,” said David Fishman, senior manager at consultancy the Lantau Group.

“That, combined with an extended late summer heat wave, meant that renewables were not enough to meet that incremental demand.”

Last year was the warmest ever for China since record-keeping began six decades ago, meteorological data showed.

Hydropower output in 2024 rose 10.7% year-on-year to 1.27 trillion kWh, the data showed.

Overall power demand grew 4.6%, according to the statistics bureau’s data.

That data covers power generation from industrial enterprises with annual revenue of at least 20 million yuan ($2.8 million), leaving out some small-scale wind and solar sources. Estimates of power generation based on data from China’s National Energy Administration, due to be released later this month, are expected to show higher power demand growth than in the statistics bureau’s data.

For 2025, Greenpeace analysts said renewable power could meet all of China’s new power demand growth. That would “pave the way for China’s power sector to achieve peak emissions by 2025”, according to Greenpeace East Asia Beijing-based project leader Gao Yuhe. – Reuters

China’s economy beats forecasts in 2024, braces for trade war

A GENERAL VIEW shows Beijing’s skyline on a sunny day in this file photo. — REUTERS

 – China’s economy ended 2024 on better footing than expected helped by a flurry of stimulus measures, although the threat of a new trade war with the United States and weak domestic demand could hurt confidence in a broader recovery this year.

Exports, one of the few bright spots, could lose steam as United States President-elect Donald Trump, who has proposed hefty tariffs on Chinese goods, is set to return to the White House next week.

For the full-year 2024, the world’s second-largest economy grew 5.0%, data from the National Bureau of Statistics (NBS) data showed on Friday, meeting the government’s annual growth target of around 5%. Analysts had forecast 4.9% growth.

The economy grew 5.4% in the fourth quarter from a year earlier, significantly beating analysts’ expectations and marking the quickest since the second quarter of 2023.

Analysts polled by Reuters had forecast fourth-quarter gross domestic product (GDP) would expand 5.0% from a year earlier, quickening from the third-quarter’s 4.6% pace as a flurry of support measures began to kick in.

“China’s economy is showing signs of revival, led by industrial output and exports,” said Frederic Neumann, chief Asia economist at HSBC in Hong Kong.

However, he added, the strong GDP print last quarter may already have been flattered by front-loading of shipments to the U.S. – something that will inevitably lead to a pay-back with production and exports turning down once tariffs begin to bite.

“As exports come under pressure in 2025, dragged lower by U.S. import restrictions, there will be an even bigger need to apply domestic stimulus.”

Chinese stocks drew some support following the GDP data. Mainland Chinese blue chips .CSI300 rose 0.3% as of 0207 GMT, while Hong Kong’s Hang Seng .HIS added 0.14%.

The yuan CNY=CFXS was little changed against the dollar.

On a quarterly basis, GDP grew 1.6% in October-December, compared with a forecast 1.6% increase and a revised 1.3% gain in the previous quarter.

China’s economy has struggled for traction since a post-pandemic rebound quickly fizzled out, with a protracted property crisis, mounting local debt and weak consumer demand weighing heavily on activity.

Policymakers have pledged more stimulus this year, but analysts say the scope and size of China’s moves may depend on how quickly and aggressively Trump implements tariffs or other punitive measures.

But even as strong exports propelled the country’s trade surplus to a record high of $992 billion last year, the yuan currency CNY=CFXS has come under selling pressure. A dominant dollar, sliding Chinese bond yields and the threat of higher trade barriers have pushed the yuan to 16-month lows.

A slew of December economic readings on Friday suggested the economy gained traction heading into the new year, helped by a flurry of government support measures.

Even the property sector witnessed signs of recovery as new home prices steadied in December for the first time since June 2023, NBS data showed earlier on Friday. But for the full year, property investment fell 10.6% from the previous year, marking the largest annual decline on record.

Industrial output grew 6.2% from a year earlier in December, quickening from November’s 5.4% pace and beating expectations for a 5.4% increase in a Reuters poll. It marked the fastest growth since April last year.

Retail sales, a gauge of consumption, rose 3.7% last month, accelerating from the 3.0% pace in November as consumers started to prepare for the eight day-long Lunar New Year holidays in January.

“It (will) require large and persistent policy stimulus to boost economic momentum and sustain the recovery. To contain the rising unemployment rate the fiscal policy stance needs to become more proactive,” Zhiwei Zhang, chief economist at Pinpoint Asset Management in Hong Kong.

As businesses remained wary of adding workers before the festival and with concerns over possible trade disputes with the U.S., the nationwide survey-based jobless rate climbed to 5.1% in December from November’s 5.0%. – Reuters