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China reports first human case of H10N3 bird flu

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BEIJING – A 41-year-old man in China’s eastern province of Jiangsu has been confirmed as the first human case of infection with the H10N3 strain of bird flu, China’s National Health Commission (NHC) said on Tuesday.

The man, a resident of the city of Zhenjiang, was hospitalized on April 28 after developing a fever and other symptoms, the NHC said in a statement.

He was diagnosed as having the H10N3 avian influenza virus on May 28, it said, but did not give details on how the man had been infected with the virus.

H10N3 is a low pathogenic, or relatively less severe, strain of the virus in poultry and the risk of it spreading on a large scale was very low, the NHC added.

The man was stable and ready to be discharged from hospital. Medical observation of his close contacts had not found any other cases.

Many different strains of avian influenza are present in China and some sporadically infect people, usually those working with poultry. There have been no significant numbers of human infections with bird flu since the H7N9 strain killed around 300 people during 2016-2017.

No other cases of human infection with H10N3 have previously been reported globally, the NHC said. — Reuters

Meralco expands its San Pablo II Substation

Seen in the photos are Manila Electric Co. (Meralco) personnel during the commissioning of the new 83 MVA transformer bank no. 2 located at its San Pablo II 115 kV-34.5kV Substation in Cosico Avenue, San Pablo City, Laguna, resolving the critical loading of the existing 83 MVA transformer bank. The project also ensures the continuous power supply of the customers served by the said substation even during contingencies. It prevents possible power outages to many of its customers in the areas of San Pablo and Alaminos in Laguna, as well as in Dolores, Tiaong, Candelaria, and San Antonio in the Quezon Province. Despite the continued implementation of community quarantine measures throughout the country due to the COVID-19 pandemic, Meralco and its subsidiaries are continuously working hard to improve its distribution system in order to provide safe, adequate, and reliable electric service to its customers.

Monde Nissin bets Americans will dig Quorn’s alternative chicken

Monde Nissin Corp. will use some of its $1 billion initial public offering proceeds to expand its Quorn Foods Ltd. fake meat business in the U.S., the world’s biggest market by far for plant-based alternative food.

The Philippines-based company, which also sells staple foods and is the owner of Lucky Me! instant noodles, will use Quorn’s substitute chicken product to take on heavyweights like Beyond Meat Inc. and Impossible Foods Inc. in a sector dominated by faux beef, executives said in an interview.

“Our ambition is to become the king of alternative chicken globally,” Quorn Chief Executive Officer Marco Bertacca told Bloomberg before Monde’s IPO, the largest ever for a Southeast Asian food company. Monde debuted in the Philippines on Tuesday, trading little changed at P13.50 as of 10:52 a.m..

Monde plans to increase Quorn’s production capacity and ship to more fast-food chains in the U.S., spending nearly P16 billion ($335 million) to expand its presence in the country. It is also building two fermenters and packaging facilities in the U.K., where Quorn is based and has a 28% market share. Barclays Plc estimates the global alternative-meat market will grow tenfold to more than $140 billion by 2029, or 10% of the meat industry as a whole.

“The alternative meat category is going to explode, and we want to get our capacity ready as soon as possible,” Monde Chief Executive Officer Henry Soesanto said. “We need big money for that.”

There’s some ground to catch up on. Since its 550 million pound ($780 million) acquisition by Monde in 2015, Quorn has suffered construction delays and chiller failures at its facilities, which depleted inventory and forced it to cut back on orders. The compound annual growth rate of Monde’s alternative-meat sales ticked along at only 5% from 2017-2020 despite the boom in the market. Beyond Meat’s sales had a CAGR of more than 130% in that period.

In two years, Monde could bring its plant-based business to Asia, with an eye on the Chinese market as the government aims to reduce meat consumption. Quorn distributes limited amounts in Singapore and the Philippines.

“Europe and the U.S. are at the forefront of alternative protein. Asia is coming up a bit late, but it is catching up in the next two to three years,” Soesanto said in an interview with Bloomberg Television.

Rather than faux ground beef, Quorn will focus on chicken — the most-consumed protein in the U.S. — and try to get fast-food chains to include it on their menus. A planned monthlong promotion with Kentucky Fried Chicken in the U.K. saw Quorn chicken burgers “flying off the shelves,” said Bertacca. The “Imposter Burger,” featuring a Quorn “chicken” fillet made with KFC batter and topped with vegan mayo and lettuce, sold out in four days, he said.

In the Philippines, Monde’s portfolio of food staples including bread, noodles and sauces should continue to drive business after profit last year surged 26% to 7.34 billion pesos, Soesanto said. Monde will pay out 60% of net income as dividends, potentially rising to 90% after capital expenditure in the long-term.

The snack maker plans to increase its Lucky Me! noodle sales by making them healthier and offering more flavors, while also cutting palm-oil content by as much as 70%, Soesanto said. Instant noodles accounted for half of Monde’s 68 billion pesos in sales in 2020. The average Filipino consumes only 36 packs of noodles a year, well below places like Indonesia, Vietnam and South Korea, where the number is over 60, he said.

Chief Strategy Officer David Nicol said Monde is on the lookout for ventures where it can provide food technology and partners can oversee local supply chains.

“Given its dominant position in the Philippines, Quorn will be its major growth source going forward,” said Gerard Abad, chief investment officer at AB Capital & Investment Corp. in Manila. The IPO should put Monde in a good position to capture a significant share of the expanding meatless market, he said.

AIA Investment Management Pte, Eastspring Investments (Singapore) Ltd. and Singapore state investment fund GIC Pte are among cornerstone investors, according to Monde’s IPO prospectus. Soesanto said in a statement last week there’d been “overwhelming interest” from international and domestic investors.

Los Angeles-based Beyond Meat surged more than 800% in the three months after its sizzling May 2019 listing in New York, and it remains almost 500% higher than its IPO price. Impossible Foods is preparing a public listing, Reuters reported in April.
Monde’s goal is for Quorn to at least match the pace of growth in the global alternative-meat industry, even as new players like Nestle SA and Unilever join the fray.

“If we get even 5% of that huge market, we will be very happy,” Soesanto said of the U.S. “We don’t want to be left by the bus.” – Bloomberg

Bring yourself closer with the new vivo V21 selfie phone

Never miss a beautiful moment

  • vivo V21 is the brand’s latest and trendiest selfie smartphone yet.
  • A boon for millennials and Gen Zs, the vivo V21 creates clear and colorful selfies for every picture-perfect moment.
  • vivo’s newest smartphone series turns the Internet into frenzy with its fashion-forward style.

Bringing you closer to you. The vivo V21 5G in Sunset Dazzle features a beautiful design that is as handy as it is fine-looking.

With the situation people are all in, many have found different ways to cope. Some have turned to cooking, some found solace in working out, while others had a heightened appreciation for simple, yet fun things — like taking selfies!

Selfies, after all, is a form of self-presentation and expression. This is why many young people place their confidence in smartphones that deliver superb photography features.

vivo, a top global brand in innovative smartphones, is set to release a new line of products that can give the best selfie results. The vivo V21 series fuses fun photography, trendy features, and smooth performance, all in one ultra-sleek design.

With this latest series from vivo, the selfie-generation can find a friendly companion in a device that captures and complements their best looks. With every selfie taken on this consumer-oriented phone, millennials and Gen Zs can be closer to their real selves as they express their uniqueness through creative, high-quality selfies.

Don’t miss out on all the fun that the vivo V21 series has to offer! Watch out for the latest news on vivo’s official website, Facebook, and Instagram pages.

Intellicare partners with UnionBank to open fully digital ePaycard accounts for affiliated doctors

Intellicare and UnionBank partnership virtual signing ceremony: Top Row (L-R) Joyce Gonzalez - EVP and head, Retail Banking Center (UnionBank); JP Casas - AVP, Retail Banking Center (UnionBank); Audrey Gallardo, EVP (Intellicare); and Cris Namoco - SAVP, Treasury, Investment, Billing and Collection (Intellicare); 2nd Row (L-R) Pearlie Lontoc, SVP and Sales director, Makati CBD (UnionBank); Gerard Darvin - FVP, Cash Management Solutions (UnionBank), Jinky Recto - senior manager, Corporate Communications (Intellicare); and Dr. Gerry Jiao - Group Medical director, Intellicare; 3rd Row (L-R) Dr. Louie Agregado - AVP, Medical Group (Intellicare); and Misha Agcaoili - manager, Branding (Intellicare)

Asalus Corp. (operating under the trade name “Intellicare”), one of the country’s leading health maintenance organization (HMO), recently partnered with Union Bank of the Philippines (UnionBank), renowned as the “best digital bank” in the country, for the ePaycard Digital Account Opening (eDAO) of its affiliated doctors to help speed up the disbursement of their professional fees, benefits, and other reimbursements. A virtual signing ceremony was held last May 14, 2021 to formalize the partnership agreement.

UnionBank offers an account opening facility that is efficient, paperless, and with a fully digital disbursement solution for the convenience of Intellicare-affiliated doctors. To facilitate the opening of their accounts, the doctors will receive an SMS with a unique reference code which will be used to continue the application via the UnionBank Online App. Account opening will be a fully digital process which can be made at the doctor’s own time and convenience. Upon Intellicare’s approval, the ePaycard accounts will be opened real time.

The doctors’ ePaycard accounts will automatically be enrolled in UnionBank Online and will be able to do digital transactions like Fund Transfer, Bills Payment, Save up for Goals, Split Bills, Buy Load, and many more.

UnionBank and Intellicare will be providing communication materials and hosting online onboarding sessions and webinars to educate the doctors on the features and benefits of eDAO and how to secure their online bank accounts.

Mary Joyce S. Gonzales, executive vice-president and Retail Banking Center head of UnionBank, stated: “The COVID-19 pandemic has pushed all of us to innovate. With restrictions on movement and the need for contactless payment to reduce exposure to the virus, the bank has made it its goal to aid companies and its employees in making the disbursement process more efficient, convenient, and safe for all those involved in the transaction.”

Audrey Meldy B. Gallardo, executive vice-president of Intellicare, remarked: “It is Intellicare’s desire to always consider the best for our partner doctors and medical facilities to ensure the efficient flow in the supply chain. This payment facility of UnionBank is an enabler for us to meet our commitments to them in the best way possible amid the challenges of less physical contact in managing the pandemic.”

Duterte extends metro lockdown, India travel ban

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Philippine President Rodrigo R. Duterte on Monday night extended the general lockdown in Manila, the capital and nearby cities and provinces for two more weeks until June 15, with thousands of Filipinos still getting infected with the coronavirus daily.

The general community quarantine with heightened restrictions will also apply to the provinces of Bulacan, Rizal, Laguna and Cavite, the President said in a late-night televised speech.

Mr. Duterte also extended the travel ban on India, Pakistan, Sri Lanka, Bangladesh, Nepal, Oman and the United Arab Emirates until June 15, his spokesman Herminio L. Roque, Jr. said in a separate statement.

Baguio City and the provinces of Kalinga, Mountain Province and Abra in the Cordillera Administrative Region (CAR) will remain under a general lockdown. So will the provinces Isabela, Nueva Vizcaya and Quirino in the Cagayan Valley region in northern Philippines.

Also under a general lockdown are the provinces of Batangas and Quezon in Southern Tagalog and Iligan City, Davao City, Lanao Del Sur and Cotabato City in southern Philippines.

Meanwhile, Santiago City and the provinces of Cagayan, Apayao, Benguet, and Ifugao in the north will be placed under a stricter modified enhanced community quarantine from June 1 to 15.

Also placed under the second strictest lockdown are Puerto Princesa City, Iloilo City, Butuan City, Cagayan de Oro City, Zamboanga City, Zamboanga Sibugay, Zamboanga Del Sur and Zamboanga del Norte.

Coronavirus infections in Metro Manila were “plateauing,” Health Secretary Francisco T. Duque III said at the same briefing. The infection rate in Mindanao, on the other hand, was rising, he said.

The Health department reported 6,684 coronavirus infections on Monday, bringing the total to 1.23 million. The death toll rose by 107 to 20,966, while recoveries increased by 6,098 to 1.16 million, it said in a bulletin.

A Brown Company sets virtual stockholder’s meeting

BSP chief says policy adjustments by mid-2022

PHILIPPINE STAR/ GEREMY PINTOLO

THE Philippine central bank will remain accommodative until economic recovery is sustained, with further monetary policy adjustments likely by the second half of 2022, Governor Benjamin E. Diokno said.

“We will continue this loose monetary policy until such time that we are sure that the government is on its way to recovery, a sustainable recovery. And that I see will happen maybe second half of next year so that’s when we’ll probably look at further adjustments in our monetary policy,” he said in an interview with the ABS-CBN News Channel on Monday.

The Bangko Sentral ng Pilipinas (BSP) chief vowed to have “a very carefully crafted, managed disengagement strategy” in unwinding policies implemented during the pandemic.

The Monetary Board kept the overnight reverse repurchase at a record low of 2% at its May policy review.

Mr. Diokno said this would provide continued support for the economy’s recovery from the crisis.

The economy remained in a recession in the first quarter, when it shrank by 4.2%. The country’s gross domestic product contracted by a record 9.6% last year.

The government earlier in May has slashed its growth target for 2021 to 6-7% from 6.5-7.5%.

“I think that its [targets are] optimistic but that’s the fighting target of the government authorities so let’s give them a chance,” Mr. Diokno said.

The pace of the mass vaccination campaign will be crucial in restoring consumer confidence and driving economic activity.

“I think really the focus of the government right now is still the vaccination. That’s the best way to perk up the economy. Because with the vaccination, you gain confidence. The [confidence of] consumers will of course lead to more economic activity,” he said.

The government is targeting to inoculate 50 million Filipinos by end-November, concentrated mostly in the high-risk areas of Metro Manila, Cavite, Laguna, Rizal and Bulacan. By the first quarter of 2022, the government hopes to have 70 million Filipinos vaccinated.

Based on Johns Hopkins University’s vaccine tracker, the Philippines has fully vaccinated 1.029 million Filipinos, equivalent to 0.95% of the population. This ratio is lower than other ASEAN economies that have fully vaccinated a bigger part of their population including Singapore (28.34%), Indonesia (3.78%), Thailand (1.57%), and Malaysia (3.42%).

Apart from the vaccination drive, the government’s continued infrastructure push would also support recovery, Mr. Diokno said.

Meanwhile, the BSP governor discounted the possibility of another “taper tantrum,” similar to what happened in 2013.

“I don’t think that [an interest rate hike] is in the cards at the moment because there’s a midterm election next year and I don’t think that the [US] Treasury or the Fed will engineer an increase in interest rates because that will cut down the economy at its band. I will assign it a very low probability that there will be a taper tantrum,” Mr. Diokno said.

For the Philippines, the more relevant concern is inflation, which Mr. Diokno said would be “manageable this year.”

The central bank in May lowered its inflation forecast for the year to 3.9%, already within its 2-4% target from the 4.2% it previously penciled.

Mr. Diokno’s latest guidance on the policy decision would help calm market participants, said Security Bank Corp. Chief Economist Robert Dan J. Roces.

“Markets will welcome a carefully crafted messaging of the central bank’s strategy as it manages volatility and lessen speculation, and more importantly it should help restore business and consumer confidence,” he said in a Viber message.

Mr. Roces said the governor’s assessment that a more sustainable recovery is more likely by the second half of 2022 is possible due to the impact of the lingering pandemic.

“We share the view that recovery will take some time, what with the deep economic scarring, uncertainties, and cautiousness the pandemic has brought. Restoring business and consumer confidence will be important and indeed, the primary challenge to the economy, and the key ingredient to a sustainable recovery,” he said.

The Monetary Board’s next policy-setting meeting is scheduled on June 24. — L.W.T.Noble

Good Samaritans give help amid Philippine coronavirus hardships, fill state void

Entrepreneur Ana Patricia Non set up a small cart of donated food and vegetables along Maginhawa Street in Quezon City in mid-April. Over the next few weeks, hundreds of people flocked to the community pantry. — PHILIPPINE STAR/ MICHAEL VARCAS

By Kyle Aristophere T. Atienza,  Reporter

AGNES C. HONRADA, 54, used to line up for free food at a so-called community pantry near the Philippine capital after she lost her job as an acting extra amid a coronavirus pandemic.

“I couldn’t pay my rent so I was forced to go back to the streets as a scavenger,” she said by telephone in Filipino.

Ms. Honrada, a single mom, said she received a few kilos of rice from the local government in Quezon City, but never got cash aid from the government despite several tries.

When a civic leader sought the help of street dwellers and local residents to set up a give-and-take hub offering free canned goods, fruits, vegetables and rice to the poor, she didn’t hesitate to volunteer.

“I never had second thoughts because I wanted to help even if I’m poor,” she said. “I barely have an education but I know that you don’t need to be rich to be able to help others.”

Thousands of carts carrying donated food have sprouted across the Philippines, which critics of President Rodrigo R. Duterte point to as evidence of government failure to help the poor amid one of the world’s strictest and longest coronavirus lockdowns.

His supporters, on the other hand, have accused the opposition and activists of politicizing purely charitable acts of kindness to paint his government in a bad light.

Millennial entrepreneur Ana Patricia Non started the idea of putting up a humble cart of donated food along Maginhawa Street in Quezon City in mid-April, when the capital region and nearby provinces were placed under a strict lockdown amid a fresh surge in coronavirus infections.

Her community pantry bore a sign: “Give what you can, take what you need.”

The kindness cart was set up to help people affected by prolonged lockdowns and inadequate government support, Ms. Non said by telephone.

“The pantries were set up to help the poor, but these are also a manifestation of government inadequacy,” she said by telephone.

A government task force has labeled Ms. Non and other food pantry organizers communists. Ms. Non was forced to suspend her pantry operations after being interrogated by police. She reopened after the city mayor assured her safety.

From having less than a dozen organizers in April, another community pantry along Matatag Street in Quezon City now has 26 volunteers, most of whom used to be beneficiaries of the grassroot initiative.

“These volunteers martial the lines, repack food and think of guidelines to make the pantry run better,” Hannah Nario-Lopez, one of the organizers, said by telephone.

“A community pantry is a good start for civic engagement,” she said. “That’s very important, especially during the pandemic.”

Ms. Lopez said all their volunteers barely finished school but are very capable in finding sustainable and equitable solutions for everybody.

“People should really be included when dealing with social problems,” she said in Filipino. “This is a stark contrast from the government approach of telling people not to be hard-headed and just follow directions. “If that’s the strategy, people will feel belittled and nothing will happen.”

Ed Billiones, who organized a community pantry in another village in Quezon City, said the setup has given people, including the poor, a sense of purpose.

“Before, they used to think that they could not contribute anything, that they were useless,” he said by telephone in Filipino. “Now, they realize that they can give something after being given a chance to serve others.”

‘INACTION’
Community pantries wouldn’t have spread so quickly if there weren’t “so many desperately hungry Filipinos, and so many citizens realizing that they can do something to make up for the government’s inadequacies,” Ibon Foundation Executive Director Sonny A. Africa said in a Facebook Messenger chat.

“This is also why the authorities are so threatened,” he said. Whether they admit it or not, their irresponsibility is showing and they are being made accountable for their inaction.”

The government’s economic team earlier said about 252,000 Filipinos could have lost their jobs due to the two-week strict lockdown in Metro Manila that ended in mid-April. The quarantine has since been eased.

The Philippine unemployment rate eased to 7.1% in March from 8.8% a month earlier, according to the local statistics agency. About 3.44 million Filipinos were out of work in March, down from 4.2 million in February.

But Mr. Africa noted that the labor force also grew by 3.8 million, meaning there still was not enough work for everyone.

Economic managers were “overstating employment gains to cover up the harsh impact of their refusal to give more cash aid and meaningfully stimulate the economy,” he said.

“The pantries clearly fill in a huge gap in government relief for tens of millions of distressed Filipinos,” Mr. Africa said. “The administration’s refusal to give any more aid has clearly become intolerable and people have decided to take matters into their own hands.”

The Presidential Palace remained lukewarm to calls for another round of cash aid for the poor. Presidential Spokesperson Herminio “Harry” L. Roque, Jr. has said the government should allow previous economic packages to run their course first before considering another, especially since funds are limited.

The House of Representatives has approved on second reading a third stimulus package that allots more than P400 billion to spur economic recovery.

Marikina Rep. Stella Luz A. Quimbo, one of the bill’s authors, said the measure could be funded by savings from the 2020 and 2021 national budgets as well as dividends from government-owned and -controlled corporations. She also urged the government to enforce austerity measures.

“Community pantries emerged because of the slow pace of the government’s social amelioration program,” John Paulo R. Rivera, an economist from the Asian Institute of Management, said in a Viber message.

He said the cash aid program has been plagued by issues of “exclusion, redundancy, slowness and inconsistencies.”

‘PRESSURE POINT’
The Department of Interior and Local Government (DILG) said that as of May 15, 91% of Metro Manila beneficiaries have gotten the P1,000 aid that Mr. Duterte approved more than a month ago.

“People’s stomachs can’t wait for the government to take concrete action,” Mr. Rivera said. “This is the main point being addressed by community pantries.”

“This gesture is a testament to Filipinos knowing that the government isn’t doing enough,” Noreen Sapalo, a college lecturer on culture and politics at the University of the Philippines said in a Messenger chat. “It should serve as a wake up call for our public officials.”

DILG puts the number of community pantries across the Philippines at 6,715 as of May 5.

If 100 poor families take food worth a dollar from a kindness stall daily, these pantries could be giving away a billion pesos worth of food every month, said Terry L. Ridon, former chairman of the Presidential Commission on the Urban Poor.

The number of families who benefit from these pantries daily is almost three times the number of families that benefited from the government’s modified conditional cash transfer program, the former lawmaker said in a Messenger chat.

The National Economic and Development Authority (NEDA) in 2018 estimated that a family of five spent about P127 daily on food.

Ms. Lopez said this estimate is “not dignified” and consists mostly of canned goods, not nutritious food.

“What we distribute is not just canned goods but also vegetables and meat that local governments are unable to provide,” she added.

Mr. Rivera said the rise of community pantries shows the benefits of participatory governance. “Consult, involve those who are mostly affected, those who are mostly in touch with reality,” he said.

“This is what community pantries are teaching us: We may be physically distant but we are socially integrated.”

“The community pantries are now the single-biggest pressure point on the administration to rectify its long-running insensitivity and weak COVID-19 response,” Mr. Africa said.

Bank lending shrinks 5% in April

BW FILE PHOTO

LENDING by big banks in April contracted by its fastest pace since 2004, reflecting the impact of the stricter lockdowns on both lenders and borrowers.

Outstanding loans by big banks dropped by 5% to P8.998 trillion in April from P9.474 trillion a year ago, based on preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Monday.

The April bank lending drop was faster than the 4.5% dip in March, and the fifth straight month of decline.

Before April, the steepest lending contraction was seen in May 2004, when bank lending shrank by 4.6%.

Inclusive of reverse repurchase agreements, outstanding loans extended by big banks fell by 2.9% in April from a 4.3% drop a month earlier.

“Bank lending remained weak as measures to contain the resurgence in COVID-19 (coronavirus disease 2019) cases constrained domestic economic activity and continued to dampen market sentiment,” the central bank said in a statement.

Metro Manila and adjacent provinces Bulacan, Cavite, Laguna, and Rizal were placed under a stricter lockdown from late March to April due to a spike in coronavirus infections.

Bank lending is expected to continue to decline in  the coming months, as some lockdown restrictions remain in place, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“This would lead to a significant reduction in economic/business activities that could also lead to lower demand for bank loans/credit in response to reduced business conditions,” he said in a text message.

Loans extended for production activities fell by 3.9%, faster than the 3.2% contraction in March. This, as lending to key industries such as wholesale and retail trade and repair of motor vehicles and motorcycles (-10.2%), manufacturing (-9.8%), and financial and insurance activities (-6.8%) dropped during the month.

On the other hand, bank lending to some sectors increased including those meant for professional, scientific and technical activities (106.9%), real estate activities (2.4%), and human health and social work activities (8.5%).

Consumer loans also slid by 10.2% in April, deeper than the 9.9% decline in March. Motor vehicle loans (-12.9%) saw the steepest fall, followed by credit cards (-9.6%), and salary-based loans (-1%).

Mr. Ricafort said the Financial Institutions Strategic Transfer (FIST) Law could help improve banks’ appetite to extend more credit in the coming months. 

“The FIST Law would be an option available to banks to unload/sell some of their (bad loans) and other nonperforming assets from their balance sheets, thereby freeing up more funds and help increase their lending activities,” he said.

Banks have been risk-averse to shield themselves against further pileup in bad loans. In March, the industry’s nonperforming loan (NPL) ratio stood at 4.21%.

LIQUIDITY GROWTH SLOWS
Meanwhile, money supply growth slowed in April.  M3 — the broadest measure of liquidity circulating in an economy — expanded by 5.1%, easing from the 8.3% growth in March, the central bank said in a separate statement.

“This largely reflects slower demand for loans,” Mr. Ricafort said.

Domestic claims in April rose by 1.8%, much slower than the 5.6% in March. Net claims on the central government also slowed to a growth of 23.6% against the 47.4% expansion pace in March.

Meanwhile, net foreign assets rose slightly quicker by 18.3% from the 18.1% in the prior month, backed by the rise in the country’s gross international reserves.

“Going forward, the BSP will remain vigilant to ensure that the overall stance of monetary policy is in line with the BSP’s price and financial stability objectives, while continuing to preserve policy support to the National Government’s efforts to combat the economic effects of the COVID-19 health crisis,” the central bank said. — L.W.T.Noble

Filipino consumers remain optimistic

PHILIPPINE STAR/ MICHAEL VARCAS,
Filipino consumers remained optimistic despite the ongoing coronavirus pandemic, according to a survey. — PHILIPPINE STAR/ MICHAEL VARCAS,

By Ana Olivia A. Tirona, Researcher

FILIPINOS were the third most optimistic consumers among 14 Asia-Pacific economies, as economic activity in the region picked up, a survey by US-based think tank The Conference Board showed.

Based on the results of the latest Global Consumer Confidence Survey, the Philippines scored 119 on the consumer confidence index (CCI) during the first three months of the year. However, this was four points lower than country’s CCI score of 123 in the fourth quarter last year.

The Philippines’ score was a tad higher than the Asia-Pacific average of 118 during the quarter, ranking third behind India and China.

Filipino Consumers Remain Optimistic in Q1 2021

Globally, the Philippines ranked fifth out of 65 economies, placing after India, Saudi Arabia, China, and the United Arab Emirates.

A CCI reading of above 100 means there are more optimistic than pessimistic consumers.

The country was among the 20 out of 65 economies posting a CCI score above 100 for the quarter.

“Asia-Pacific had one of the highest levels of consumer confidence. Indeed, effective containment measures, fiscal stimulus packages in both advanced and emerging economies in the region, plus a comparative advantage in exports of goods and technology, helped maintain household finances, bolstered job prospects, and boosted confidence,” the report said.

“The rise in confidence was the result of gains in all three drivers of confidence, especially rising sentiment about personal finances.”

Conducted by the Conference Board in collaboration with Nielsen, the CCI measures how optimistic or pessimistic consumers are on the state of their respective economies in the present and near future.

In particular, it looks at consumers’ perception of job prospects and personal finances over the next 12 months, as well as how good of a time it is to buy “needed/wanted” goods and services.

About 59% of Filipinos improved their sentiment on personal finances in the first quarter from 54% previously. This was higher than the 40% across Asia-Pacific from 26% in the fourth quarter.

However, Asia-Pacific households were more concerned about their health, and less about the economy and job security, the report said.

Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said the country’s labor activity was “constrained by the drop in their disposable incomes” due to the implementation of the enhanced community quarantine (ECQ) — the strictest form of lockdown — in late March. This, in turn, caused the country’s CCI score to drop.

“Aside from the ECQ, rising inflation may have eroded consumer confidence as meat and vegetables took a bigger share of the consumer’s basket of goods and services. Meat was easily 20% more expensive in [first quarter of 2020] than the same time last year after all,” he said in a Viber message.

Security Bank Corp. Chief Economist Robert Dan J. Roces said economic authorities are faced with the challenge of bringing back consumer confidence to boost consumption on durable goods and big-ticket items.

From a global perspective, the average index score across 65 markets was recorded at 108. This was an increase of 10 points from the previous quarter’s 98, signaling improvement in consumer confidence.

Likewise, the Conference Board noted the “lightening in moods” among global consumers was an effect of expanded vaccination campaigns and government actions toward the reopening of the economies.

Apart from a faster vaccine rollout and adequate vaccine supplies, Mr. Neri said “policies to improve supply as well as to temper demand may be necessary to keep inflation in check,” which could help maintain and improve consumer optimism in the economy for the following quarters.

Still, uncertainty remains high in the coming months, Mr. Roces said.

“Clear communication of programs would help, and therefore the willingness to go out and engage in service and economic activities, or true demand recovery, will follow,” he added.

Philippine banana plant parts banned in the US

SOME banana plant parts from the Philippines have been banned from export to the United States to prevent the spread of a plant disease.

The United States on Friday notified the World Trade Organization that it would no longer allow importation of some plant parts of all banana and plantain species of Musa spp. and the banana species Abyssinian from Australia and several Asian countries including the Philippines.

Effective May 21, the order applies to rooted plants, rooted and unrooted cuttings, roots, and rhizomes in countries where the banana fungal pathogen Fusarium oxysporum or Foc TR4 is known to occur.

The United States plant health inspection service said that the pathogen “poses a serious threat to US agriculture.”

“The restriction to prevent the introduction and establishment of Foc TR4 is needed and warranted to mitigate the plant pest risks associated with this pest,” it said in the federal order.

The Philippines’ Department of Agriculture in September said it would set aside more than P260 million to support the rehabilitation of farms hit by the Panama disease or fusarium wilt caused by the soil-borne fungus. The funding would also finance the development of disease-resistant varieties.

Panama disease could substantially cut Philippine banana exports if left unchecked, Agriculture Secretary William D. Dar said.

The Philippines’ top agricultural export commodity banana exports last year declined by more than 20% to $1.5 billion compared with 2019.

Banana exporters last year saw stronger competition, higher tariffs, and declining output due to the Panama disease, the Pilipino Banana Growers and Exporters Association, Inc. (PBGEA) said in July 2020.

The Trade department has been pushing for more banana exports as it seeks a conclusion to free trade negotiations with South Korea by June.

Negotiations had previously stalled on items like bananas, for which Philippine producers are seeking lower tariffs, and South Korean auto exports, for which Seoul is seeking greater access.

Philippine trade representatives have also indicated interest in exporting Cavendish bananas to Australia, which is conducting a review for pest infestation risk.

The United States import ban does not apply to seeds, leaves, cut flowers, fruits, and plants in tissue culture.

Local banana industry groups have not responded to requests for comment as of deadline time. — Jenina P. Ibañez