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Pentagon concerned by UN report indicating possible North Korea nuclear reprocessing

The Biden administration is conducting a full review of North Korea policy following former President Donald J. Trump’s unprecedented engagement with North Korean leader Kim Jong Un, which failed to persuade Pyongyang to give up its nuclear weapons. — REUTERS

WASHINGTON — The Pentagon expressed concern on Tuesday about a United Nations (UN) report indicating possible reprocessing of nuclear fuel for bombs by North Korea, and said such activity could raise tensions with Pyongyang.

Rear Admiral Michael Studeman, head of intelligence for the US Indo-Pacific command, said North Korean activity highlighted this week by the International Atomic Energy Agency (IAEA) could be intended to get the attention of the Biden administration and as a bargaining chip to press for sanctions relief. The administration is currently reviewing US-North Korea policy.

“We have our eye on this. And it is deeply concerning where North Korea wants to go,” Mr. Studeman told a virtual event on technology and security.

In a statement to the IAEA Board of Governors on Monday, the United Nations body’s director-general, Rafael Mariano Grossi, made reference to activity at North Korea’s Yongbyong and Kangson nuclear facilities.

He said there had been recent indications of operation of a steam plant that serves a radiochemical laboratory. North Korea has used its radiochemical lab at Yongbyon to reprocess plutonium from a reactor there for nuclear bombs.

Mr. Grossi called North Korea’s continued nuclear activity a clear violation of UN sanctions and “deeply regrettable.”

Referring to Mr. Grossi’s statement, Mr. Studeman said: “the IAEA board of governors issued a notice that there had been evidence of the Koreans reprocessing perhaps nuclear fuel.

“If that is true, then that could put us into a different level of tension with Korea,” he said.

“This may be the start of something that’s designed to influence the Biden administration; it may be the first way of getting the new administration’s attention here, where perhaps (North Korea) would use this reprocessing development as a bargaining chip for sanctions relief of some sort.”

The administration of President Joseph R. Biden, Jr., which took office in January, is conducting a full review of North Korea policy following former President Donald J. Trump’s unprecedented engagement with North Korean leader Kim Jong Un, which failed to persuade Pyongyang to give up its nuclear weapons.

Mr. Biden’s Secretary of State Antony Blinken has said the approach to North Korea could involve more sanctions or unspecified diplomatic incentives.

A confidential UN report seen by Reuters last month said North Korea developed its nuclear and ballistic missile programs throughout 2020.

Jenny Town, deputy director of the Washington-based North Korea monitoring project 38 North, told Reuters satellite images it had received of Yongbyon from Feb. 17 and March 2 showed steam coming from the laboratory there, which had not been known to be in operation for about two years.

“It doesn’t necessarily mean that reprocessing has started, but it could be an indication of preparations for that,” she said.

North Korea uses both uranium and plutonium for nuclear weapons, but the latter allows for smaller, lighter bombs. — David Brunnstrom and Idrees Ali/Reuters

Australian economy storms ahead as COVID recovery turns ‘V-shaped’

SYDNEY — Australia’s economy expanded at a much faster-than-expected pace in the final quarter of last year and all signs are that 2021 has started on a firm footing too helped by massive monetary and fiscal stimulus.

The economy accelerated 3.1% in the three months to December, data from the Australian Bureau of Statistics (ABS) showed on Wednesday, higher than forecasts for a 2.5% rise and follows an upwardly revised 3.4% gain in the third quarter.

Despite the best ever back-to-back quarters of growth, annual output still shrank 1.1%, underscoring the havoc wreaked by the coronavirus pandemic and suggesting policy support will still be needed for the A$2 trillion ($1.57 trillion) economy.

The Australian dollar rose about 10 pips to a day’s high of $0.7836 after the data while bond futures nudged lower with the three-year contract implying a yield of around 0.3% compared with the official cash rate of 0.1%.

“The ‘V-shaped’ nature of the recovery is everywhere to see—economic growth, the job market, retail spending, and the housing market,” said Craig James, Sydney-based chief economist at CommSec.

Mr. James expects the economy to rebound 4.2% in 2021.

Data on credit and debit card spending by major banks as well as official figures on retail sales, employment, and building activity point to a strong start for this year.

Marcel Thieliant, economist at Capital Economics, expects GDP growth of 4.5% in 2021, “which implies that allowing for the slump in net migration due to the closure of the border, the economy will suffer no permanent drop in output as a result of the pandemic.”

SUPPORT STILL NEEDED

Australia’s economy has performed better than its rich-world peers thanks to very low community transmission of coronavirus disease 2019 (COVID-19) together with massive and timely fiscal and monetary stimulus.

Its economic output declined 2.5% in 2020, far smaller than a 10% drop in United Kingdom, falls of 9% in Italy, 5% in Canada and more than 3% in the United States.

“Our economic recovery plan is working, and today’s national accounts is a testament to that fact,” Treasurer Josh Frydenberg said in a news conference. “The job is not done,” he added. “There are challenges ahead. But you wouldn’t want to be in any other country but Australia as we begin 2021.”

To help blunt the economic shock from the pandemic-driven shutdowns, the Reserve Bank of Australia (RBA) slashed interest rates three times last year to a record low 0.1% and launched an unprecedented quantitative easing program. The government announced a wage subsidy scheme to keep people in jobs while banks deferred payments on home loans and cut borrowing rates to help boost credit growth.

On Tuesday, the RBA re-committed to keep three-year yields at 0.1% until its employment and inflation objectives are met, which policymakers don’t expect until 2024 at the earliest.

Indeed, Wednesday’s data showed there was barely any domestic-driven inflation in the economy with the biggest price rises coming from commodity exports.

The RBA has repeatedly said the unemployment rate must fall to around 4% from above 6% now to help drive wages growth above 3% and for inflation to pop back into its 2-3% target band.

“Stimulus and support measures are still very much required,” CommSec’s Mr. James said. “Spare capacity will remain in the job market for a few more years, keeping the cash rate anchored at 0.1%.” — Swati Pandey/Reuters

New hope with evolving treatments for pancreatic neuroendocrine cancer

Dr. Liau Kui Hin, general surgeon at Mount Elizabeth Hospitals specializing in liver, gall bladder, and pancreatic cancers and disorders, explains pancreatic neuroendocrine tumors (PNETs) and the evolving treatments for this uncommon cancer.

What are PNETs?

Pancreatic neuroendocrine tumors, or PNETs, are cancers that arise from the endocrine cells in the pancreas. PNETs gained a lot of attention after the late Apple co-founder Steve Jobs was diagnosed with the condition. Unlike the common type of pancreatic cancer known as adenocarcinoma, PNETs are rare. They account for less than 3% of all pancreatic tumors.

Arising from the endocrine cells in the pancreas, these cancers can be hormone secreting or non-hormone secreting. Some of these hormones are active or functional and they cause hormone-related symptoms while others are inactive or non-functional. The majority of PNETs are non-functional tumors. Non-functional PNETs generally show no symptoms in the early stage and by the time they are diagnosed, they are often in the advanced stage.

Due to the rarity of PNETs and the scarcity of reliable medical evidence in the treatment, managing patients with this condition can be very challenging. Specialists have to rely on their clinical experience and judgment.

A silent killer

It does not help that PNETs may not have signs or symptoms. This means the cancer could be diagnosed late, at which point surgery may no longer be an option. PNETs are also complex. They can appear in various guises and differ greatly in the speed of growth. Their speed of growth can switch from slow to fast or from fast to slow.

This is why some patients may live for years, even after the tumor has spread to the liver or other parts of the body. Others may not, if their slow-growing PNETs suddenly turn aggressive. This observation, known medically as the flip-flop phenomenon, describes the unpredictability and interchangeability of cancer biology. Predicting the speed of growth of these tumors remains an inexact science at best.

What are the symptoms?

As mentioned, majority of patients with PNETs often experience no symptoms, especially the non-functional PNETs. When PNET-related symptoms do occur, they are often non-specific. It is therefore not surprising that proper diagnosis is frequently delayed for a long time.

On the other hand, functional PNETs may have symptoms that related to the hormones that are secreted by the tumor. They may feel tired, dizzy or lightheaded, nervous or anxious, abdominal pain, nausea, watery diarrhea, or increased thirst, depending on the type of hormone the tumor makes.

Non-functioning tumors do not produce any hormones so they do not cause any hormone-related symptoms. As a result, these tumors are typically diagnosed once they are advanced and are causing mass effect-related symptoms such as pain, jaundice or gastric outlet obstruction.

Treatment options for PNETs

Surgery is not a straightforward medical decision. It is generally not recommended if the cancer has spread. It is not surprising to receive mixed opinions from other oncologists and surgeons.

From cumulative experience worldwide, we know that extensive surgery can prolong the survival of patients, provided it can be performed safely. However, surgery is risky and also comes with a high risk of tumor recurrence.

Newer and effective drugs and therapy for PNETs

Hormonal therapy using a somatostatin analogue mimics the body’s natural hormone somatostatin and blocks its activity. The treatment ameliorates the symptoms caused by excessive hormones released from the tumor cells, as well as control the growth of PNETs.

Studies have shown that the use of a somastostatin analogue called lanreotide (Somatuline) in the treatment of advanced PNETs can delay tumor growth and reduce the chance of it growing again by half, when compared with a placebo treatment. It does not require preparation and the patient can self-administer it once a month. It is simply injected into the fat tissue under the skin.

Apart from lanreotide, many new drugs and new therapy, from molecular medicine and hormonal therapy to targeted therapy, have emerged to treat PNETs in recent years. One new therapy is peptide radionuclide receptor therapy (PRRT), which involves the administering of a radioactive protein that can target and kill cancer cells. Phase III clinical data, which is required for regulatory approval, will be available only a few years later.

Good news for local patients

Singapore has had the foresight to invest in the therapy as well as the training of related professionals. This means that patients who need it — those who have not responded to other treatments for PNETs — can now get PRRT locally.

Before 2013, patients here had to travel overseas for the therapy. Hopefully, newer agents in immunotherapy will also have a definitive role in the treatment of PNETs in the near future.

But the jury is still out on whether surgery should apply to all advanced PNETs cases. Sometimes, despite the option of a technically feasible and safe operation, surgery is not recommended, especially when we know that the chances of prolonging life are slim. Using drugs to tame the tumor may be a better option.

New drugs, innovative drug formulation and novel medical technology mean better responses, fewer side effects and better treatment outcomes for PNETs patients. While waiting for more medical evidence to guide treatment options for this rare cancer, the medical team must put their heads, hearts and hands together to deliver the best outcome possible for each patient.

Learn more about cancer care. Join BusinessWorld Insights, in partnership with Mount Elizabeth Hospital Singapore and Parkway Cancer Centre, with the theme, “Hope, Science and Technology: Cancer Care in the New Normal” this March 10, 2021 at 11 a.m. Register at bit.ly/BWCancerCare.

For inquiries, please contact us at Parkway Hospitals Singapore-Manila Office at
G/F-B, Marco Polo Hotel, Meralco Avenue and Sapphire Street, Ortigas Center, Pasig City 1600, e-mail us at manila.ph@parkwaypantai.com or call 0917-526-7576.

Online palengke delivers wet and dry goods to one’s doorstep

PalengkeLink, a local digital delivery and online palengke (wet market) app for wet and dry goods, allows customers to place orders with a merchant identified as a palengke stall owner or local market partner, and have their goods delivered by a rider partner within the day.

Launched on March 1, the app offers the convenience of local market selections with affordable fees. The app’s convenience fee is 8% for cashless transactions and 15% for cash transactions. Its share in delivery fees is 10%. 

“We created an app that caters to a different client base,” said Mark Ryan T. Penafiel, PalengkeLink programming and accounting officer. “Our goal is to serve the other sectors: palengkes and home-based food sellers that have no available platform to sell their products.” 

The PalengkeLink team visited wet markets and taught vendors how to use the platform. They were soon trying to outdo each other in photographing their items and writing product descriptions. “They are empowered to upload their items themselves on the app,” said Mr. Penafiel. 

There are more than 150 merchants on the app. A five-star rating system weeds out merchants with consistently low ratings (or those with fewer than three stars). The platform has 15 rider partners, with more than 100 others waiting for their applications to be approved. The company said they do not overhire to ensure that all rider partners registered have enough bookings. 

Customers can pay with cash, debit or credit card, or GCash. Only one fee is necessary for transactions, including multi-stall transactions.

PalengkiLink serves Quezon City, Marikina City, and the City of Manila, through stall owners in Farmers Market Cubao, Mega Q Mart, Altura Bagsakan Market, Guadalupe Commercial Complex, Marikina Public Market, Maypajo Public Market, and Choice Market Ortigas. 

It is in talks with areas such as Davao, Cebu, and Tarlac that are interested in the app.

“We’re trying to compete with giants in the market but [we will do it] slowly but surely,” Mr. Penafiel said. “We’re Philippine-based and we have low funding.”

PalengkeLink is available on Android phones at the moment. — Patricia B. Mirasol

Adidas accelerates its commitment to creating an inclusive space in sport for women with product innovation and fresh workout series

 

  • adidas announces Watch Us Move campaign that supports all women, unveiling 2021 roadmap of product innovations from performance tights that help you stay in play during your period, to modesty swimwear
  • The first product innovation to drop is Formotion; adidas’ most supportive activewear yet, available online and in select markets from March 4
  • The Move With Us fitness series, accessible for free on YouTube, brings content from a line-up of inspirational athletes and fitness enthusiasts to living rooms worldwide

On a relentless pursuit to ensure sport belongs to everyone, regardless of age, socio-economic and cultural background, or sporting ability, adidas today announces Watch Us Move – a long-term campaign created to better support all women in sport.

Aimee Arana, General Manager, Global Training at adidas, said: “We believe that sport should be accessible to – and representative of – all, and this year we are accelerating our efforts to ensure it is an inclusive space for women. The Watch Us Move campaign is a milestone for adidas; it is our promise to celebrate and support all women by creating performance product that keeps you moving, and we are opening up our platforms to those who are paving the way.

On the other hand, the Move With Us series seeks to keep the hearts, minds and bodies of its female audience healthy

We had real, open, and honest conversations with women around the world about the things that are missing and what we can do better. This collaborative approach was vital in understanding the needs of underrepresented communities in particular; those that don’t recognize themselves within the traditional spaces of sport and wellness, nor are able to find effective performance wear built to their specific needs.”

As part of the campaign, adidas will be pushing boundaries and releasing product innovations throughout this year and beyond that are informed directly by insights gained from extensive listening and research. This exercise shed light on some of the barriers women face to movement.

Equipped with this knowledge, adidas’ designers and engineers have been working to develop performance wear that removes gaps faced by such communities; modest swimwear, a performance tight that helps you stay in play during your period, performance footwear crafted with the female anatomy in focus and an extension of its maternity collection. The campaign kicks off with the arrival of adidas’ most supportive activewear yet, Formotion.

The collection features adidas’ quick-dry Aeroready fabric and PRIMEGREEN

The Formotion collection has been developed by an all-female design team to deliver maximum support, whilst offering a comfortable fit that works seamlessly with the body in motion.

Taking inspiration from shapewear technology, the hero tight uses graded compression – created after years of development – based on body mapping and motion studies to deliver precise support where it’s needed most. The compression zones have different intensities and are strategically placed around the waist and hips to sculpt, whilst high-stretch knit fabric around the legs and calves allows freedom to move without restraint in high-impact conditions.

Josefine Aberg, VP Product Design at adidas, said: “As we started on the journey of creation, we asked women from around the globe how they want to feel when they’re working out, and the feeling of confidence came up repeatedly. Many could relate to wearing uncomfortable apparel that holds them back when playing sport or exercising, affecting how they feel when moving. With this collection, we wanted to make women feel secure and strong, yet comfortable – liberating, rather than restricting, giving confidence through every move, from deadlifting to barre.”

Move With Us fitness series

Following an initial spike in searches for home workout content at the start of the pandemic, adidas has seen searches remain twice as high (+94%)*. With a growing online community of fitness enthusiasts and sustained need for home workout content, women have the convenience of going online to find classes. But while exercising at home should be a space for all, the diversity of those leading popular YouTube workouts is lacking.

Giving a platform to athletes and grassroots fitness enthusiasts from communities that have historically been underrepresented, adidas’ new series seeks to keep the hearts, minds, and bodies of its female audience healthy.

Available for free on youtube.com/adidaswomen, the series celebrates and enables movement for all and invites women around the world to enjoy the wellbeing it brings, no matter their circumstance.

The series kicks off on 25 February with workouts from body positive yoga expert, wellness entrepreneur and author, Jessamyn Stanley and world champion, Paralympic medallist, and motivational speaker, Denise Schindler. Classes will be dropping from March onwards, where adidas’ most inclusive line-up of elite and everyday athletes will be putting the new Formotion collection to the test. Discover the inspiring women’s stories and learn more about the campaign by checking out #WatchUsMove.

The Formotion collection is available worldwide from March 4. The collection features adidas’ quick-dry Aeroready fabric which keeps athletes feeling dry and comfortable, and PRIMEGREEN, a series of high-performance recycled materials using a minimum of 40% recycled content. Follow #Formotion for more product information.

 

NG debt rises to P10.3 trillion in Jan.

THE National Government’s (NG) outstanding debt rose to P10.327 trillion as of end-January after it borrowed another P540 billion from the central bank to boost its pandemic response, the Bureau of the Treasury (BTr) reported.

Latest BTr data showed the debt stock increased by 5.4% from P9.795 trillion as of end-December and by 33% from the P7.763 trillion logged in January 2020.

“The level of NG debt reflects a P532.46-billion increment from the end-December 2020 level predominantly due to the reavailment of the P540-billion short-term loan facility from the BSP (Bangko Sentral ng Pilipinas),” the Treasury said in a statement.

In December, the government repaid the P540-billion provisional advances from the BSP, only to borrow the same amount again the following month.

Domestic borrowings made up 71% of the P10-trillion debt stock, while the rest was sourced offshore.

The outstanding local debt went up by 9.4% from end-December to P7.326 trillion in January driven by the borrowings from the central bank. Year on year, the domestic debt stock jumped by 43% from P5.124 trillion.

Local government securities issued so far reached P6.785 trillion, up 1.4% month on month and 32.4% higher from its year-ago level of P5.13 trillion.

Meanwhile, NG total foreign debt went down by 3.2% to P3 trillion as of end-January from P3.1 trillion in December after the government repaid some P93.49 billion of foreign loans.

The BTr said the debt pile was also reduced due to the P8.47 billion effect of third currency depreciation against the dollar.

Despite the decrease, the external debt stock was still 13.7% bigger when compared with P2.64 trillion recorded in January 2020.

This included P1.335 trillion in foreign loans and P1.667 trillion in global bonds sold.

The BTr said despite the rising debt stock, the government’s borrowing costs remained low as shown in its weighted average interest rate (WAIR) which went down to 4.13% in January from 4.17% in December and 4.95% a year ago.

“A lower WAIR means that our interest bill (interest payments or IP) will be lower as new debt is contracted at lower rates. This helps our fiscal managers as IP will take up less of the budget, freeing more space for productive spending,” the BTr said.

Only 9.56% of the debt stock is exposed to interest rate volatility, it added.

The NG’s debt portfolio also has an average residual maturity of 7.55 years, or within the 7-10 target as the state prefers loans with shorter maturity since these are generally cheaper than those with longer tenors.

The average residual maturity for domestic debt eased to 5.37 years from 5.45 years last year, while that of the external debt went up to 12.49 years from 12.14 years.

“As markets moved towards these tenors, we are still maintaining average maturity so that we manage refinancing risks, or the risk that we face when we refinance our maturing obligations. Generally, this means that we are managing our near-term debt,” the BTr said.

Meanwhile, the total NG guaranteed debt eased by 0.4% from a month ago to P456.39 billion in January due to the net redemption of local and foreign guarantees worth P320 million and P180 million, respectively. The total guaranteed debt fell by 6.5% from P488.3 billion a year ago.

The total was further brought down by the lower value of external guarantees in peso terms, according to the Treasury.

Government estimates showed that the NG debt stock will rise to P11.98 trillion by end-2021.

Last year, the NG debt stock as a percentage of gross domestic product (GDP) spiked to a 14-year high at 54.5% from the record low of 39.6% in 2019. — Beatrice M. Laforga

Two-thirds of PHL employers plan to get COVID vaccines for workers

The Philippines on Monday began its coronavirus disease 2019 (COVID-19) vaccination campaign, with health workers inoculated with vaccines donated by China. — PHILIPPINE STAR/MICHAEL VARCAS

TWO-THIRDS of Philippine employers are planning to buy coronavirus disease 2019 (COVID-19) vaccines for their workforce, a survey from global advisory firm Willis Towers Watson and the People Management Association of the Philippines found.

The survey of 250 human resource practitioners in February showed that 65% have either already made arrangements to buy vaccines or are in the process of doing so.

Among the employers who have not started the process of buying vaccines, 58% are considering doing so, leaving 42% with no plans to buy COVID-19 doses.

As many as 68% of employers said that they would fully subsidize the cost of vaccines, while 11% said they would partially pay for the doses.

Around 7% of the employers said they would limit financial support to part of their workforce, with half of those saying that they would only pay for permanent employees’ inoculation.

“As for dependents and/or household members, the vast majority (71%) of companies would pass on the full cost to their employees,” Willis Towers Watson said in a statement on Tuesday.

For those in the process of buying vaccines, 60% said they are planning to provide vaccines for their employees’ dependents, while 52% of those who have not yet started the process said the same.

“When procuring or facilitating the purchase of the vaccine for employees’ dependents, over half of the respondents have indicated that these would include spouses, parents of single employees and children, all of whom are residing with their employees,” Willis Towers Watson said.

Over 40% of employers plan to include the parents of married employees, siblings of single employees, and those living in their workers’ households.

Most or 70% of employers considering buying vaccines said they are conducting a survey to find out how many employees are interested in inoculation. Among those who have not done a survey, 15% said they would wait for a confirmation of their orders before doing so.

The employers are looking at various vaccine administrators, with 37% considering a third party, 19% planning to work with their health maintenance organization, and 15% considering their on-site clinic provider.

The Philippines started vaccinating healthcare workers on Monday after receiving 600,000 doses of Sinovac Biotech Ltd.’s CoronaVac donated by the Chinese government.

Another half-a-million doses of a vaccine made by AstraZeneca Plc would be delayed by about a week due to global supply problems, Health Secretary Francisco T. Duque III earlier said.

National Policy Against COVID-19 deputy chief implementer Vivencio “Vince” B. Dizon on Tuesday said there’s no specific date yet for the arrival of the first batch of Pfizer-BioNTech vaccines.

“Companies need to focus on the health and wellbeing of their employees. In a study we conducted last year, 93% of employers think that the pandemic will have a negative impact on employee wellbeing. In a more recent survey, two-thirds of the respondents said that their companies’ response to the current pandemic or preparation for a future pandemic impacts their wellbeing approach and activities,”  Willis Towers Watson Philippines Health and Benefits Leader Susan La Chica said in the statement.

“By providing timely communication, benefits and access, employers can assist employees in getting vaccinated. This is an important role that employers can play in helping to protect their employees and limit the spread of COVID-19.” — Jenina P. Ibañez

Bank lending drops for 2nd month in a row

LOANS disbursed by big banks declined for a second consecutive month in January, as lenders remained risk-averse amid the coronavirus pandemic.

Outstanding loans by big banks fell 2.4% to P8.952 trillion in January from P9.175 trillion a year earlier, preliminary data from the Bangko Sentral ng Pilipinas (BSP) released on Tuesday showed.

This followed the 0.7% slip in December, which was the first decline since September 2006 when lending dropped by 1.9%.

“In general, credit activity remained soft due to weak demand as banks continued to be risk-averse on concerns over asset quality and profitability,” the central bank said in a statement.

Inclusive of reverse repurchase agreements, bank lending was down 2.2% in January.

“We are still in a pandemic and this consecutive decline was likely expected by many market watchers and other analysts. So, as long as we do not see any improvements regarding economic recovery, we may continue to see a lackluster bank lending,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

Borrowings for production activities declined by 1.1% in January, following a 0.4% decrease in December.

“Cost-cutting measures by some businesses/industries fundamentally resulted in some reduction in loan demand,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note.

BSP data showed a drop in loans disbursed to key industries, such as manufacturing (-7.4%), wholesale and retail trade and repair of motor vehicles and motorcycles (-6.9%), and the financial and insurance sector (-6.35%).

There was also a decline in loans for sectors such as mining and quarry (-10.3%); water supply, sewerage, waste management, and remediation activities (-5.7%); agriculture (-5.1%); information and communication (-0.2%); professional, scientific and technical services (-39.9%); administrative and support services activities (-12.9%); and education (-4.9%).

On the other hand, increases were seen in loans for real estate activities (5.7%); transportation and storage (6.6%); construction (4.3%); electricity, gas, steam, and air-conditioning supply (3.5%); human health and social work activities (11%); and accommodation and food services activities (4%).

The BSP said the marginal growth reflected the reopening of more businesses, as the government eased some restrictions.

During the month, household loans also sank by 6.9%, reversing the 4.1% year-on-year growth in December, as credit card loans (-10%) and motor vehicle loans (-5.8%) slumped.

Banks have tightened their credit standards to avoid a pile-up in soured loans. The banking industry’s nonperforming loan ratio stood at 3.61% as of end-December, rising from the 2.08% a year earlier. It reached 17.6% in the aftermath of the Asian Financial Crisis in 2002.

Republic Act No. 11523 or the Financial Institutions Strategic Transfer (FIST) Act which allows FIST corporations to offload bad loans and assets from banks was signed into law last month.

“The FIST passage is a very welcome development moving forward. Its passage is timely and very much needed to help improve bank lending prospects,” Mr. Asuncion said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said double-digit bank lending growth prior to the pandemic was instrumental in driving investments in the country.

“With bank lending now looking entrenched in negative territory, it looks as if the Philippine economy will need to find other sources of growth with capital formation sidelined in the near term,” Mr. Mapa said in a note.

M3 SLOWS FURTHER
As lending contracted, money supply registered its eighth consecutive month of slower growth.

M3 — which is considered as the broadest measure of liquidity in an economy — grew by 9% in January following a 9.5% growth in December, the BSP said in a separate statement on Tuesday. Month on month, M3 rose 0.7%.

In January, domestic claims rose 5% from 4.5% in December.

Net borrowings of the central government expanded 39%, picking up from the 31.1% rise in the prior month.

Meanwhile, net foreign assets increased by 21.8%, easing from the 25.5% expansion in December.

Net foreign assets held by other depository corporations grew by 32.5%, significantly slower than December’s 72.9% print.

“Looking ahead, the overall stance of monetary policy is expected to remain accommodative in order to complement ongoing fiscal and health initiatives to support economic activity and market confidence,” the central bank said.

The BSP in February maintained the overnight reverse repurchase, lending, and deposit facilities at record lows of 2%, 2.5%, and 1.5%, respectively. The Monetary Board will have its next rate-setting meeting on March 25.

“I do not think that the BSP will do anything drastic in the near term. Of course, they are still committed to an easing theme and any reversal of such stance, I think, is still very far from today,” Mr. Asuncion said.

Last year, the BSP slashed rates by 200 basis points to support the virus-stricken economy. However, lending growth remained tepid amid the crisis.

Mr. Diokno has said they will remain accommodative until the economy recovers its pre-pandemic growth trajectory. — Luz Wendy T. Noble

LEDAC identifies 25 priority bills for passage by yearend

THE government is pushing for the passage of 25 priority measures before the end of the year, including new taxes on digital platforms and offshore gaming operators, further liberalization of the retail trade sector and the last two remaining tax reform packages.

The Legislative-Executive Development Advisory Council (LEDAC) Executive Committee approved the common legislative agenda for the 18th Congress during a meeting on Feb. 18, according to the National Economic and Development Authority (NEDA).

“These bills are crucial in ensuring the country’s economic recovery and in regaining our development trajectory that was held back by the COVID-19 pandemic. We will continue working with Congress to move the legislative agenda forward and enact these priority legislations within 2021,” Acting Socioeconomic Planning Secretary and LEDAC Secretariat Head Karl Kendrick T. Chua said in a statement.

The 12 priority bills targeted to be passed by June include the last two packages under the Comprehensive Tax Reform Program — the Real Property Valuation and Assessment Reform Act and Passive Income and Financial Intermediary Taxation Act; and the last measure under the proposed recovery package: Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act.

Also included are revenue-generating measures such as amusement taxes on digital platforms and online cockfighting; establishing a tax regime for Philippine Offshore Gaming Operators (POGO); and increasing the share of local government units in the national internal revenue taxes.

Other priority measures include amendments to the Public Service Act, Retail Trade Liberalization Act and Foreign Investments Act, which aim to attract more investments by easing restrictions on foreign ownership on some sectors.

The list also includes the proposed Rural Agricultural and Fisheries Development Financing System Act (Agri-Agra), and creation of a Medical Reserve Corps and a Disease Prevention and Control Authority.

The LEDAC also identified another 13 priority bills to be approved by Congress by December.

These include:

• Creating a Unified System of Separation, Retirement and Pension of the Military and Uniformed Personnel Act;

• National Land Use and Management Act;

• Internet Transactions Act;

• Magna Carta for Barangay Health Workers Act;

• National Housing Development Act;

• Expanded Solo Parents Welfare Act;

• Modernizing the Bureau of Fire Protection (BFP) Act;

Modernizing the Bureau of Immigration Act;

• Amending/Repealing RA 10192, or the Continuing Professional Development Act of 2016; and

• Reviving the Death Penalty by Lethal Injection for Crimes specified under the Comprehensive Dangerous Drugs Act of 2002.

“As we safely reopen our economy and begin our vaccination program this year, we need to enact these bills to create an enabling economic environment and further strengthen our healthcare and fiscal system against future pandemics and other threats,” LEDAC ExCom Chairperson and Executive Secretary Salvador C. Medialdea said in a statement.

Sought for comment, Albay Representative Jose Ma. Clemente S. Salceda, who chairs the House Ways and Means Committee, said all the measures that will go through the committee “will be approved within deadline.”

“It’s also important that we get these reforms completed soon especially since we will be occupied by the budget season again after our March adjournment,” Mr. Salceda said via Viber on Tuesday.

“I am already working closely with the economic managers on the fiscal and economic reforms identified. After all, I am a principal author of almost the whole of the LEDAC list,” he added.

The LEDAC is made up of 20 members that include President Rodrigo R. Duterte, Vice-President Maria Leonor G. Robredo, Mr. Chua, Finance Secretary Carlos G. Dominguez III and three other Cabinet members, four senators, four congressmen and three members from local governments, the youth and private sector.

Economic managers are hoping these reform measures will help drive recovery. The government expects gross domestic product to grow by as much as 7.5% this year after a record 9.5% contraction in 2020. — Beatrice M. Laforga

PEZA renews push for defense economic zones

THE Philippine Economic Zone Authority (PEZA) is aiming to have military reservation areas declared as defense industrial economic zones before the end of the Duterte administration.

PEZA is planning to transform military reservation areas in Fort Bonifacio, Camp Evangelista, and Maguindanao into defense industrial complexes to manufacture military weapons and equipment.

PEZA Director-General Charito B. Plaza in a mobile message on Tuesday said that she is hoping Malacañang will issue the presidential proclamation as soon as possible, or at least before President Rodrigo R. Duterte ends his term by mid-2022.

“They’re now preparing the documents to have the proclamation for the new use as ecozones,” she said.

The Philippine Army, she said in a statement, manages almost 20,000 hectares of military reservation areas, spurring her agency’s plans to develop them into industrial complexes.

“We hope to invite investors and defense industries who will manufacture military aircraft, seacraft, weapons, equipment, software, hardware, uniforms, and all those that the military and police will be needing,” Ms. Plaza said.

All locators at PEZA ecozones receive tax incentives.

“We really need to locally produce our defense requirements and reduce our dependency to foreign suppliers,” Armed Forces of the Philippines Chief of Staff Lt. Gen. Cirilito E. Sobejana said in the same statement. “Of course, we need the technology that other countries have for us to establish [defense industries] here in our country.”

The House of Representatives last month approved on third and final reading House Bill No. 8212 or the Special Defense Economic Zone (SpeDEZ) Act, which establishes a defense industrial zone in Camp Gen. Antonio Luna in Bataan to be run by a new independent government body.

Drawing 197 affirmative votes, the bill saw the six Makabayan bloc members vote against as they casted doubts on the bill’s ability to reduce import dependence and criticized police and military operations against government critics. — Jenina P. Ibañez

Australia to invest P630M in disaster, climate resilience initiative in PHL

THE Australian government is investing around P630 million (A$18 million) in programs aimed at strengthening disaster and climate resilience capacity of local governments in the Philippines over the next six years.

In a statement, the United Nations Development Program (UNDP) in the Philippines said it signed the agreement with the Australian government for the new initiative called Strengthening Institutions and Empowering Localities against Disasters and Climate Change Program (SHIELD).

SHIELD will be implemented in 10 provinces that are most vulnerable to the impacts of disaster and climate change. The areas would be finalized after consultations with the government.

The initiative would also cover Metro Manila, because of its economic significance and vulnerability to earthquakes, and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) since its conflict-affected areas which were said to be “susceptible to increasing disaster and climate impacts.”

“Enhancing resilience remains a high priority for Australia, particularly in the Philippines, which is extremely vulnerable to disasters and the impacts of climate change. Through SHIELD, we will work with governments, private sector, civil society and academic institutions to enhance and sustain community resilience,” Australian Ambassador to the Philippines Steven J. Robinson AO said in a statement.

The UNDP will implement SHIELD together with its consortium partners UN-Habitat, Philippine Business for Social Progress, National Resilience Council, and the Consortium of Bangsamoro Civil Society.

“Through SHIELD, our ultimate aim is for our target communities to be safer and more resilient to the impacts of natural hazards and climate change, taking also into account the lessons brought about by the COVID-19 pandemic. It bears noting that the program also puts importance on gender equality, disability, and social inclusion in the context of resilience-building,” UNDP Philippines Resident Representative Selva Ramachandran said.

The Australian government’s foreign affairs and trade department estimated it had extended a total of $80 million in official development assistance (ODA) to the Philippines between 2020 to 2021. — Angelica Y. Yang

Meralco weighs foray into gas business

MR. PANGILINAN says Atimonan power plant project is a candidate for conversion into a gas facility. — BW FILE PHOTO

MANILA ELECTRIC Co. (Meralco) should look at participating in the gas business, its chairman said, as a separate company that he leads is set to develop an offshore area for its resources.

“We hope that (Service Contract) 72 could get developed as an oil field and once we start developing, we have to connect to Malampaya because we need the facilities to process the raw gas, then pipe it to Batangas,” Meralco Chairman Manuel V. Pangilinan said in a press briefing on Monday.

Mr. Pangilinan, who also chairs PXP Energy Corp., was referring to an area in Recto Bank that was previously banned for exploration but was opened last year by the Energy department. The Malampaya gas-to-power project is the country’s sole source of natural gas.

PXP Energy has operating interests in the West Philippine Sea through SC 72 and SC 75, both offshore blocks northwest of Palawan.

“I think we should get into the gas business,” he said, citing Batangas, Atimonan in Quezon, and Subic in Zambales as possible locations.

He made the comment in response to a question during the briefing about whether the investment of Metro Pacific Investments Corp. (MPIC) in Philippine Coastal Storage & Pipeline Corp. would tie into the investment in the SC 72 area. Mr. Pangilinan is chairman of MPIC.

Rogelio L. Singson, Meralco PowerGen Corp. (MGen) president and chief executive officer, said during the briefing that the company would continue exploring options for Atimonan One Energy, Inc. (A1E), the developer of the country’s first ultra supercritical coal-fired power plant in Quezon province.

“While we continue to explore options for our Atimonan site, we will continue to develop the site [in] preparation for the next opportunity,” he said.

A1E, which has been certified by the Department of Energy as an energy project of national significance, is a wholly owned subsidiary of MGen.

Mr. Pangilinan identified the A1E as a possible site for gas operations.

“If there’s a CSP (competitive selection process) this year… most likely, if Atimonan were available as a site, it certainly is a candidate to convert it into a gas plant. But we’re looking at other sites, whether we should locate in Batangas where all of the existing gas plants are located or should we build a new gas complex either in Atimonan itself in east coast of Luzon, or should we build one in west coast in Zambales or Bataan,” he said.

On Tuesday, Meralco shares at the local bourse improved 0.73% or P2 to finish at P276 apiece.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

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