Category: Trading

Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla (above) said banking regulations are accompanied by initiatives that support the country’s shift from a cash-heavy to a cash-lite economy. During a recent conference by “The Asian Banker,” the Governor explained that the BSP is pursuing these initiatives under its Digital Payments Transformation Roadmap. The Roadmap aims to digitalize at least 50 percent of retail transactions volume, and onboard at least 70 percent of Filipino adults into the formal financial system by 2023. During the forum, the Governor also underscored that digitalization is crucial in promoting financial inclusion and economic growth.

 

 

Source: Bangko Sentral ng Pilipinas (BSP)

NEW DELHI, INDIA (4 October 2022) — The Asian Development Bank (ADB) signed a $30 million loan with Smartchem Technologies Limited (STL) to finance capital expenditure and research and development of enhanced-efficiency specialty fertilizers as well as investments to promote energy efficiency, health, and safety.

 

In addition, an accompanying technical assistance grant will focus on improving the climate resilience of up to 4,000 smallholder farmers through building their soil management and financial literacy skills.

 

“Private sector investment in agriculture is critical to help farmers adapt to climate change. Fertilizer companies need to be at the forefront of climate adaptation as their products can increase productivity and improve resilience to the impacts of climate change,” said ADB’s Director General for Private Sector Operations Suzanne Gaboury. “The private sector can play an important role in bringing more advanced fertilizer products to the market, investing in local manufacturing to reduce reliance on imports, and training farmers in proper usage and soil management.”

 

Fertilizer-related runoff is a primary contributor to the pollution of India’s inland waterways. Excessive and improper use of single-nutrient fertilizers such as urea has led to eutrophication, which is when bodies of water are saturated with nutrients, which leads to algal blooms that result in waterway hypoxia that kills fish. The indiscriminate use of urea has also led to significant deterioration of soil health, which is affecting crop productivity. Enhanced-efficiency specialty fertilizers are tailored to specific crops and soils and have unique features to ensure a controlled release. Using enhanced-efficiency fertilizer can reduce fertilizer-related water pollution by 60%, as well as support the transition to more natural farming practices while maintaining productivity and food security.

 

“ADB’s financial assistance will help us to further improve our enhanced efficiency specialty fertilizer business including applied R&D and grass-root farmer training initiatives. It is encouraging to have our efforts towards crop and soil specific fertilizer systems and improvements to nutrient use efficiency and balanced soil nutrition, validated by international partners like ADB,” said STL Chairman and Managing Director S. C. Mehta. “We will continue to strive to deliver our vision of raising the yield and quality of Indian agriculture to the global best. We look forward to growing this partnership with ADB.”

 

Food security is a priority for ADB, which recently announced plans to provide at least $14 billion over 2022–2025 to ease a worsening food crisis in Asia and the Pacific and improve long-term food security by strengthening food systems against the impacts of climate change and biodiversity loss. Direct support to farmers and agribusinesses is key to this initiative, with an expected $3.5 billion from ADB and $5 billion in cofinancing to be provided to the private sector. The loan to STL is part of this direct support to the private sector.

 

Formed in 2015, STL is a subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited, one of India’s leading fertilizer and chemical businesses. The group is headquartered in Pune, Maharashtra, and has four manufacturing facilities across the country.

 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

Source: Asian Development Bank

KUALA LUMPUR– The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI), moved back to under the 50 mark in Sept, posting 49.1 from 50.3 in Aug.

 

The latest reading was the lowest for a year, according to an S&P statement today.

 

Averaging 50.0 over the third quarter of the year, the PMI represents a just over five percent year-on-year growth of gross domestic product (GDP) in Malaysia, indicating some loss of momentum, compared to the second quarter.

 

Similarly, the latest data suggested a softening in the rate of expansion signalled by the official manufacturing data.

 

Central to the loss of momentum in the latest survey period were reports of waning customer demand. This resulted in a moderation in new orders in Sept, ending a five-month sequence of expansion.

 

Similarly, new export orders slowed amid weakness in international demand conditions.

 

S&P Global Market Intelligence economics director, Andrew Harker, said, there were further signs in Sept that, the rebound in growth in Malaysia’s economy, seen earlier in the year, could be losing steam as challenging conditions across the global manufacturing sector limit demand and production at Malaysian firms as well.

 

“That said, the latest PMI data are still indicative of growth in official data across the third quarter of the year,” he said.

 

 

Source: NAM NEWS NETWORK

SUVA, FIJI (3 October 2022) — The Asian Development Bank (ADB) has approved a $30 million grant to boost regional connectivity of Tuvalu’s outer islands.

The grant agreement was signed today at ADB’s Pacific Subregional Office in Suva by Tuvalu’s Minister of Finance Seve Paeniu and ADB’s Pacific Subregional Office Regional Director Aaron Batten.

“By replacing Tuvalu’s existing passenger and cargo domestic ship with a safer, more reliable vessel, Tuvalu will be better connected to its outer islands and neighboring countries of Fiji and Kiribati,” said Mr. Batten. “The new vessel’s energy-efficient design will reduce its carbon footprint, which will lower operating costs and lessen Tuvalu’s reliance on imported fuel.”

“Ship services are essential for Tuvalu as the only means of transport between our capital Funafuti and the outer islands is by sea,” said Mr. Paeniu. “This project will better connect the outer islands of Tuvalu to each other and Funafuti, improving livelihoods and opening up economic opportunities.”

The Tuvalu Strengthening Domestic Shipping Project will replace the Manu Folau, the existing passenger and cargo ship, with a new ship certified to international standards. The project will also rehabilitate the existing damaged port fenders at the Funafuti International Port to improve ship berthing safety, preventing damage to the wharf and ships calling at the port.

The capacity of staff at the Ministry of Transport, Energy, and Tourism will be strengthened through training programs focused on ship maintenance, ship scheduling, record keeping, and budgeting. Given the low numbers of women working in the maritime industry, the project will also focus on supporting the skill development and employment of women. The project will utilize ADB’s extensive experience with Tuvalu’s maritime transport sector to help address gender and social issues related to domestic connectivity.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

Source: Asian Development Bank

An Economist Group editor and four panelists examined how to finance the transition to net zero and build resilient economies. The panelists also discussed how to shape policy to create the right enabling environment for investments and appropriately skill the workforce.

Financial institutions have a paramount role to play in scaling up investments in climate solutions. They can help provide the financing necessary for the net-zero transition through decarbonization and building climate-resilient economies. But is the financial system in its current form able to support a transition to net zero and build resilient economies and societies? The capital is there, but it needs to be channeled at scale to climate-informed investments aligned with long-term climate goals.

The event, delivered in conjunction with the Economist Group, was held on the sidelines of the 55th Annual Meeting of the ADB Board of Governors.

 

 

 

Source: Asian Development Bank

MANILA, PHILIPPINES— The Asian Development Bank (ADB) this week approved $3.8 million to support the restoration, conservation, and management of coral reefs in four countries in Southeast Asia and the Pacific.

The project, financed by the Asia-Pacific Climate Finance Fund (ACliFF) and the Global Environment Facility (GEF) will develop climate risk financing and insurance solutions to protect coral reef ecosystems in Fiji, Indonesia, the Philippines, and Solomon Islands.

“The development of innovative coral reef financing and insurance models under this project will not only enhance and support the effective management of risks coral reefs are exposed to, but also improve the climate resilience and insurability of coastal assets and communities,” said Chief of ADB’s Financial Sector Group Junkyu Lee. “Many of these coastal communities also depend on the ongoing health of the ocean and its ecosystems for their livelihoods.”

Rising sea levels and the increasing frequency and severity of natural hazards have devastating effects on the coastal cities, communities, and island nations of Asia and the Pacific.  Healthy coastal ecosystems, such as coral reefs, are a hotspot of ocean biodiversity and a natural buffer that provide a first line of defense to protect coastal shores, assets, infrastructure, and livelihoods, as well as providing valuable ecosystem services. The Coral Triangle, which covers a vast marine region in Asia and the Pacific, is home to the highest coral diversity in the world.

ACliFF is providing $2.5 million to the project, boosted by an additional $1.3 million from the GEF through its “Challenge Program for Adaptation Innovation.” ACliFF supports the development and implementation of financial risk management products, such as coral reef insurance, that help provide capital for climate investments and improve resilience to the impact of climate change.

ACliFF is a multidonor trust fund managed by the ADB, established with financial support from the Government of Germany’s Federal Ministry of Economic Cooperation and Development (BMZ).

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

 

 

 

 

Source: Asian Development Bank