Quoteworthy: "China cannot save the world but can save itself." –— David Gaud, Pictet Wealth Management’s Asia chief investment officer, on why he remains bullish on the world’s second largest economy.
Green finance is what the world needs, says MAS
Green finance is critical to drive economic growth and improve social issues such as climate change, said Monetary Authority of Singapore (MAS) deputy managing director Jacqueline Loh. Citing recent data, she says green finance is already making a difference to impoverished communities. For instance, lower-income families and small businesses were among the main beneficiaries of the US$24 billion ($33.35 billion) in social and sustainability bonds issued to support healthcare and pharmaceutical developments in 1QFY2020. The amount disbursed during this quarter is nearly double that of the same period last year, Loh adds.
Since the onset of Covid-19, 24 of 26 Morningstar sustainable index funds outperformed their closest conventional counterparts. Similarly, global sustainable open-ended funds registered net inflows of US$40 billion in 1QFY2020 — up 40% from the year before. To Loh, it seems the pandemic has provided “a prime opportunity for countries to build back better”.
“It is important now, more than ever that countries not only rebuild their economies and preserve jobs, but also in the process, intentionally build a more sustainable new economy,” notes Loh, speaking at the Asian Venture Philanthropy Network’s (AVPN) conference on June 8.
The World Bank’s pandemic bond facility is doing its part through US$195 million in emergency funding to 64 of the world’s poorest countries to support recovery. Back home, Loh says MAS’ green finance action plan has made “good progress” since its initiation last year. The plan comprises three key thrusts: Building resilience to environmental risks, developing green finance solutions as well as leveraging on innovation and technology.
The central bank is now looking to boost its green and sustainability linked lending initiatives through a new loan grant scheme. The move serves to defray the costs of external review and bank framework for loans with a green focus. “We encourage the financial sector and corporates to work in tandem with MAS’ green efforts,” she adds. — Amala Balakhrisner
Google data confirms gradual return to workplaces
You were not wrong if you thought you had to jostle for space on your way to work earlier this month. Following the end of the “circuit breaker” on June 2, trains and roads were busier.
According to Google’s Covid-19 Community Mobility Reports, the number of people who went back to work in Singapore on June 2 rose by 15%, while those who remained home dipped by 7%.
Throughout the circuit breaker period, the deepest plunge for workplaces — -83% compared to baseline — took place on the following dates: April 10, May 1, May 7 and May 25, due to the Good Friday, Labour Day, Vesak Day and Hari Raya Puasa public holidays in Singapore. Similarly, numbers for public transport ranged between -72% to -75% on the same days, as well as April 26, a Sunday.
In contrast, residential numbers for these public holidays were at their highest, with a range of 48% to 55% — including April 24, which fell on a Friday. For retail, the biggest drop from baseline stood at -70% in late April. Numbers for the grocery and pharmacy segment came in at -35% in late April. Parks also saw the least number of visitors in late April and on the first day of May, with some -73% below baseline.
In Singapore, Google used data that was logged from Feb 15 to June 5.
The report showed a significant slowdown in human traffic in retail and recreational areas and transit stations (or public transport) from February, before the circuit breaker measures were imposed.
This was probably due to the Ministry of Manpower’s advisory for offices to start practicing split-teamwork practices to minimise transmissions and work disruptions in early February.
The Singapore government also raised the Disease Outbreak Response System Condition (Dorscon) levels to orange from yellow in February, following the discovery of local cases with no links to previous confirmed cases.
The circuit breaker measures, which only allowed the opening of essential services, took effect from April 7 to May 4. The measures were subsequently extended to June 1 but lifted on June 2. — Felicia Tan
Khazanah considers providing up to RM5 billion Malaysia Airlines aid
Khazanah Nasional, Malaysia’s sovereign wealth fund, is considering providing as much as RM5 billion ($1.63 billion) to the national flag carrier Malaysian Airlines to see it through the Covid-19-induced slump in bookings, according to people familiar with the matter. The carrier would use the fresh capital to resume some operations it has suspended, the people said. If approved, the cash infusion could happen in the coming weeks, said the sources who asked not to be named as the information is private.
A Malaysia Airlines representative said that it is in ongoing discussions with Khazanah, which has been supportive of its efforts to cope with the impact of the Covid-19 pandemic, but that no specific amount of funds has been committed to the carrier. A Khazanah representative declined to comment.
Malaysia Airlines, which has been struggling to turn around since it was taken private by Khazanah in 2014, would join carriers around the world in receiving a lifeline from their respective shareholders. Governments worldwide have pledged more than US$85 billion to prop up airlines after the pandemic wiped out travel demand and grounded fleets. — Bloomberg
