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AWS aims to support PHL startups through its Activate program

Image via Tony Webster/Flickr/CC BY 2.0

AMAZON Web Services’ (AWS) flagship program Activate aims to boost Filipino startups by helping democratize the cloud and building artificial intelligence (AI) applications.

“We have a substantial number of startups in the Philippines and the rest of Southeast Asia, and the Philippines is one of our fastest growing countries,” Lakshmi Priya, head of startups in the Association of Southeast Asian Nations at AWS, said at a briefing last week.

“We’re thrilled to be supporting startups in the Philippines,” she said, adding they have observed an increase in foundational startups in the country, especially in the e-commerce, logistics, and financial technology sectors.

Since 2013, the AWS Activate program has supported 2,800 startups globally. The program helps startups with credits from $1,000 to $100,000, based on the funding stage, to leverage technology tools.

Ms. Lakshmi said AWS has provided $6 billion in credits and promotional credits to startups.

As of April, AWS made Activate credits redeemable for third-party models on Bedrock, which allows startups to use the credits to build generative AI applications securely.

“AWS Activate has evolved into a one-stop shop for startups, offering comprehensive self-service business and technical content, whether it’s fundraising, legal guidance, technical documentation, and even about latest technologies like generative artificial intelligence,” Ms. Lakshmi said.

AWS in June also announced a $230-million commitment to support startups in building generative AI applications.

Roland de Ros, founder and chief executive officer of social network Kumu, which operates in 50 countries, was previously part of the Activate program. He said Kumu was one of the first startups to raise over $100 million in the country.

“We were saying ‘AWS, we need your help. Here’s the term sheet for a series A [funding round]; this is $4 million. Please help us. Can we get just a little bit more credits just to get to that next phase?,’” Mr. de Ros said.

AWS has helped democratize the cloud — which is viewed by most people to be expensive — and helped Kumu create a strong global community of users, he said.

“Now, we’ve become profitable again. AWS was critical to helping us optimize our costs and increasing the yield of our use of our tech resources so that we could be a sustainable business again,” he added. — A.R.A. Inosante

Pru Life UK launches tech feeder fund

PRU Life Insurance Corp. of UK Philippines (Pru Life UK) has launched an investment fund powered by ATRAM Trust Corp. that aims to take advantage of the growth of global technology companies.

The PRULink Global Tech Navigator Fund lets investors access the ATRAM Global Technology Feeder Fund, which targets Fidelity International’s Fidelity Funds-Global Technology Fund.

The company wants to have P30 million in assets under management (AUM) for the fund within the first year of its launch, Pru Life UK Chief Product Officer Garen U. Dee said at a media roundtable on Wednesday.

The Fidelity Funds-Global Technology Fund is one of the largest in the world with $23.9 billion in assets as of July. Meanwhile, the ATRAM Feeder Fund has P7 billion AUMs.

The PRULink Global Tech Navigator Fund invests in tech-driven companies such as Alphabet, Inc., Amazon.com, Apple, Inc., Microsoft Corp., Samsung Electronics Co. Ltd., and Taiwan Semiconductor Manufacturing Ltd.

“Aside from the growth in the tech sector, since the fund invests in dollar-denominated stocks, we’re able to invest in it using our peso. There are additional potential returns coming from the foreign exchange market. Of course, take note that while there’s a potential return, there is also a potential loss, depending on the performance of the peso,” Ms. Dee added.

The fund mostly invests in stocks, but up to 10% may also go to non-equity assets such as time deposits or any central bank-issued securities.

It is benchmarked to the Morgan Stanley Capital International, the All Country World Index, and the Information Technology Index.

ATRAM Chief Marketing Officer Andrew P. Caw said that while the ATRAM Feeder Fund cannot guarantee specific returns, it has performed strongly over the past five years, with an annualized return of 23.18% and a cumulative performance of 183.59%. In 2023, the fund had a return of 40.79%.

“We can’t put a return for that but based on the forecast, in the sense of the possibilities of the market, one can really say that definitely, one should have tech in their portfolio,” he said.

The fund is suitable for investors with aggressive appetites, or those who want long-term capital appreciation but can deal with high investment volatility, he added.

Mr. Caw said investors also benefit from the fund being actively managed, which protects them from the sector’s current volatility.

“How we manage the product through Fidelity is more of a contrarian approach to what the market wants. We’re kind of avoiding the hype stocks… because we think there are some stocks that are very expensive and don’t really hold any value,” he said.

“Fluctuations happen. Volatility happens. Whenever there’s volatility, those are the opportunities for us to actually get in,” Mr. Caw added.

Interested clients can access the funds as an option by buying specific Pru Life UK variable life insurance products, namely PRULink Assurance Account Plus, PRULink Elite Protector Series, PRULink Exact Protector, PRULink Investor Account Plus, PRUHealth Prime, PRULife Your Term with Variable Rider, and PRUMillionaire.

ATRAM has P360 billion in AUMs as of June 2024.

Meanwhile, Pru Life UK has over 170 branches and general agency offices in the Philippines, with a life insurance agency force of more than 38,000 licensed agents.

It booked a premium income of P46.19 billion and a net income of P4.36 billion in 2023, data from the Insurance Commission showed. — Aaron Michael C. Sy

‘Ketamine queen,’ doctor to face March trial in Matthew Perry death

COMMONS.WIKIMEDIA.ORG

LOS ANGELES — A California doctor and a woman charged with illegally supplying the drug ketamine to Friends star Matthew Perry before his overdose death will face trial in March, according to court documents released on Tuesday.

Dr. Salvador Plasencia, and Jasveen Sangha, whom authorities said was a drug dealer known to customers as the “ketamine queen,” have pleaded not guilty to charges related to the October 2023 death of Mr. Perry.

An autopsy determined that the 54-year-old died from “acute effects” of ketamine and other factors that caused him to lose consciousness and drown in his hot tub.

Ketamine is a short-acting anesthetic with hallucinogenic properties, sometimes prescribed to treat depression and anxiety but also abused by recreational users.

Mr. Perry had publicly acknowledged decades of substance abuse, including during the years he starred as Chandler Bing on the hit 1990s television sitcom Friends.

Plasencia and Sangha are scheduled be tried together in federal court in Los Angeles starting on March 4.

Three other defendants have agreed to plead guilty in connection with Mr. Perry’s death. — Reuters

Tax and obesity

FREEPIK

I am obese, and have been so for most of my life. In turn, I have also been dealing with a lot of chronic illnesses that go along with being overweight. And now, as I make my way to the Age of 20% Discount, I also realize that perhaps Big Brother should be given some leeway in influencing my food choices. Simply put, I have changed my sentiments about taxing some food.

I used to oppose the sugar tax, or specifically, the tax imposed on sweetened beverages. In the same manner, I had opposed any effort by the State to control or regulate the amount of sugar, salt, and fat that people consume. My contention was that the government should not “regulate,” but “educate” and help people make informed decision about personal nutrition.

My other argument was that bad nutrition was better than malnutrition. And that any type of tax on food will just make food less affordable and less accessible, particularly to the poor. In short, it is better overall if people get to eat even unhealthy food, rather than not eat at all. Tax on food processing inputs like sugar, on top of value-added tax, will just make more food less affordable.

The change of heart comes from the realization that bad nutrition ends up eroding public health in general, perhaps just as bad as malnutrition. In that sense, it may be easier to deal with malnutrition rather than reversing the impact of bad nutrition. As such, I am now more inclined to support some degree of regulation through taxation.

In March, on World Obesity Day, the Department of Health (DoH) sounded the alarm yet again on the rising incidence of obesity in the country. The World Health Organization (WHO), in a statement, noted that the 2021 Expanded National Nutrition Survey showed that 14% of children five to 10 years old, 13% of those aged 10-19 years old, and 40.2% of Filipino adults were overweight and obese.

“Obesity, defined as abnormal or excessive fat accumulation that presents a risk to health, is one side of the double burden of malnutrition. It is a major risk factor for chronic diseases, including cardiovascular diseases such as heart disease and stroke,” the WHO said.

“It will not be feasible to eradicate malnutrition among children under the age of five or to reduce premature mortality from NCDs [noncommunicable diseases] without addressing obesity.”

Dr. Rui Paulo de Jesus, WHO Representative to the Philippines, added, “We must make the healthy choice the easy choice. There is a lot we can do, including restricting the marketing to children of foods high in fat, sugar, and salt, putting in place front-of-pack labeling, and promoting better access to affordable healthy foods. In our local government units, we need to make space for safe walking, cycling, and recreation. These steps we make will help us all to get healthy and stay healthy.”

In 2018, the Congress legislated a tax reform law that also included a tax on sugar-sweetened beverages or SSBs. The aim was to use the P6 per liter excise tax on sugared drinks to reduce their affordability and accessibility. The tax covered sodas, energy drinks, and sweetened teas, among others. The tax was seen as critical public health intervention targeting dietary risk factors.

Reports indicate that surveys conducted by the DoH and researchers revealed a 10-15% reduction in SSB sales within the first year of tax implementation in 2019. This decline was reportedly more pronounced among lower-income or poorer households, who are usually more affected by price increases. The tax seemed to have deterred the consumption of sweet beverages.

To date, there does not seem to be any available study on the full impact of the tax on obesity rates since 2019. It is presumed, however, that there has been a significant reduction in SSB consumption. But I have yet to encounter research or data indicating observable decreases in obesity, the incidence of type 2 diabetes, and dental cavities, or other improved health outcomes resulting from reduced sugar intake.

We have had five years of the SSB tax since 2019. Perhaps by now DoH will have some data on whether the tax on sweet drinks helped improved public health in general, or have resulted in lowering incidences of obesity particularly among children aged five to 10 years old. I believe that consumption of sweet drinks is also a matter of habit that must be curbed as early as possible.

Obviously, parents who indiscriminately consume sweet beverages will feel no particular urgency to curb the habit among their children. So, in addition to the tax, public education also plays a significant role in ensuring the success of the health intervention. Frankly, I am not aware of any public health communication initiative that pushes this agenda.

While the tax is designed to reduce the consumption of sugary drinks, there must be other interventions that encourage healthier food choices. The tax generates revenues, and part of this can be spent on other public health initiatives like information campaigns. The government cannot just rely on tax alone to reduce consumption and improve public health outcomes.

As of 2024, data available online indicates that over 50 countries have implemented some form of SSB tax. These include Mexico, the United Kingdom, South Africa, and several US cities. These countries all aim, in general, to reduce the consumption of sugary drinks, lower obesity rates, and encourage the reformulation of products to reduce sugar content.

Obviously, the tax has led to significant reductions in the consumption of sugary drinks. But there does not seem to be any clear indication as to its impact on obesity. In Mexico, for instance, there are reports that observed only a modest reduction in obesity prevalence. In short, the SSB tax contributes to reducing sugar intake, but their impact on obesity may be limited unless they are part of a broader set of public health interventions.

In this line, overall diet quality, physical activity levels, and the availability of alternative healthy food options play a significant role in determining the overall impact on obesity rates. The tax’s impact should also indicate lower rates of type 2 diabetes, cardiovascular diseases, and dental issues. Perhaps it is time that DoH go beyond the tax and consider other interventions to reduce obesity.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

inDrive plans to enter PHL motorcycle ride-hailing market

INDRIVE, a global ride-hailing app operated by RL Soft Corp., plans to enter the motorcycle ride-hailing market in the Philippines soon, according to a company official.

“In many countries in Southeast Asia, we have a big share of motorcycle rides. We have it in Thailand, and we have it in Laos as well. We are looking into launching motorcycle ride-hailing services in the Philippines,” inDrive Marketing Director for Asia-Pacific Natalia Makarenko told BusinessWorld on Tuesday. 

inDrive has operations in 750 cities in 46 countries. In the country, the mobility and urban services platform operates four-wheel services in Metro Manila, Bacolod, Baguio, Iloilo, Butuan, and Cagayan de Oro, with plans to expand its presence to more cities in the future. 

The company is working on introducing additional services in the Philippines, such as intercity transportation, freight delivery, and courier delivery, with a focus on entering the two-wheeler services market, she said.

“I can only hope for this to happen next year, but again, the exact plans will depend on many things primarily on the LTFRB (Land Transportation Franchising and Regulatory Board) and other regulatory compliance,” Ms. Makarenko said. 

Currently, ride hailing companies and accredited motorcycles-for-hire operate under a provisional authority, as Republic Act (RA) No. 4136, or the Land Transportation and Traffic Code, prohibits the use of two-wheeled vehicles for public transport.

In July, the proposed Motorcycles-For-Hire Act, aimed to amend RA 4136, was approved by the House of Representatives on third and final reading. 

“We want to roll out as many services as we can to bring freedom of choice to as many people in the Philippines as possible,” she said, adding that inDrive is hoping to launch its planned services at least by 2025. 

For the year, the company is targeting to double its driver-base from the current 8,000 to at least 16,000 by end-2024.

“In many countries across the globe, we have many services within the mobility industry. We have two-wheelers, we have a cargo delivery, we have an Indrive Courier,” she said.

To recall, the company initially secured the approval of the LTFRB to offer its services in the Philippines in December 2023 but was suspended a month after due to alleged fare haggling violations. — Ashley Erika O. Jose

PSBank adds new security features to its mobile app

PHILIPPINE Savings Bank (PSBank) has added new cybersecurity features to its mobile banking application amid a surge in digital payments.

Clients can now control account access to restrict it to their preferred and regularly utilized channels, the lender said in a statement.

Users can also lock and unlock their ATM cards via the app, PSBank added.

The lender said it added the new features amid a rise in digital payments and demand for online banking services.

“However, this rapid shift towards digital banking brings its own set of challenges, particularly in the area of security… PSBank reinforces its commitment to security by empowering users with greater control over their online banking experience” the bank said.

Digital payments made up 52.8% of the volume of retail transactions in 2023, latest Bangko Sentral ng Pilipinas (BSP) data showed, up from the 42.1% share in 2022.

In terms of value, 55.3% of retail transactions last year were done online, also rising from 40.1% the year prior.

The BSP wanted at least 50% of the volume and value of retail transactions done online by end-2023 under its Digital Payments Transformation Roadmap.

The increase in digital payments was driven by wider use of online transaction channels among individuals and businesses, the central bank said, with the coronavirus pandemic accelerating this shift.

The central bank wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028, in line with the Philippine Development Plan.

PSBank’s net income grew by 14.13% year on year to P1.36 in the second quarter on the back of strong demand for consumer loans.

This brought its first-half earnings to P2.56 billion, up by 18.22% from a year ago.

PSBank shares climbed by P1.15 centavos or 2.10% to close at P55.95 apiece on Wednesday. — AMCS

Samsung launches entry-level Galaxy A06 in PHL

THE LOGO of Samsung Electronics is seen at its office building in Seoul, South Korea, March 23, 2018. — REUTERS

SAMSUNG last week launched in the Philippines its latest entry-level smartphone offering, the Galaxy A06.

The Samsung Galaxy A06’s price starts at P5,790, the company said in a statement. It comes in two colors: Blue Black and Light Blue.

“Featuring a sleek design, cutting-edge security, and cameras that capture every moment flawlessly, this phone is the perfect way to experience the Galaxy advantage,” it added.

The phone is powered by a MediaTek G85 processor and has a 5,000mAh battery.

It has a 6.7-inch PLS LCD display with a 720×1600 HD+ resolution.

The Galaxy A06 has a dual rear camera setup with digital zoom of up to 10 times, featuring a 50-megapixel (MP) main sensor and a 2-MP depth lens. It also has an 8-MP selfie camera.

The dual-sim phone has four gigabytes (GB) of memory and 128GB in storage, which is expandable to up to one terabyte via MicroSD.

“Unlocking is a breeze with the side fingerprint sensor, giving you quick and secure access. Plus, with Samsung Knox Vault, it’s like having a double layer of security — your PINs, passwords, and private info are safe from hackers and external threats,” Samsung added.

Customers can get P1,000 off the phone’s price when they trade in any J Series device. Samsung Members can also get an additional P500 discount plus a free travel adapter worth P1,190 when purchasing a Galaxy A06 until Dec. 31.

“Additionally, you can get up to 20% off on the Galaxy Buds3 series and 10% off on Galaxy Watch Ultra and Watch7 when you buy them with the Galaxy A06 until Sept. 30,” Samsung added.

The phone is now available at Samsung Experience Stores, online shops, and participating retail partners. — BVR

Waste not: Taiwan workshop turns trash into sunglasses

INSTAGRAM.COM/MINIWIZ.OFFICIAL

TAIPEI — Plastic bottle caps, food packaging, single-use utensils and scrapped toys are just some of the throw-away items that have been given a new life at a zero-waste workshop in Taipei.

Customers get hands-on experience in the recycling process, taking plastic waste brought from home, and melting and molding it into a pair of sunglasses within two hours.

“What we are trying to show in the Trash Kitchen is to let you see, feel, touch within minutes how this process can actually work without secondary pollution, and you can actually turn it into something of value directly in front of you,” Arthur Huang, founder of Miniwiz, the company that runs the workshop, told Reuters.

The Taiwan company also produces tiles, bricks, hangers, and other daily necessities from plastic and organic waste, using a “miniTrashpresso,” a machine it developed in 2017, Mr. Huang said.

Kora Hsieh, editor-in-chief for fashion magazine Harper’s Bazaar Taiwan, said the sunglasses project is a good initiative to promote sustainable fashion.

“I think environmental protection and fashion still have a long way to go. As for consumers, it is important for them to get first-hand experience, so a workshop like this is very helpful,” she said.

Participants said the workshop inspired them to think twice about producing trash and pay more attention to reusable items.

“I have two children. I need to think about their future,” said business owner Debbie Wu, 40.

“If you throw away trash without thinking, you kick the problem down the road. So if everyone can do their best, recycle and use less plastic, that will make a big difference,” Ms. Wu said.

Taiwan produced a record 11.58 million metric tons of waste in 2023, including 6.27 million tons of recyclable trash, according to data from the Ministry of Environment. — Reuters

Sectoral parochialism vs fiscal realism, the case of the PhilHealth idle funds

Sectoral parochialism is a limited outlook focused only on the favorite sector of certain groups of people. Only their sector is very important, the others are less important. Hence, more public resources should be poured into their sector and less funding be given to the others as much as possible.

Fiscal realism is having a broader outlook on the overall economic and social sectors of a country with a realistic view that fiscal resources are limited while public wants are unlimited. Thus, based on Constitutional provisions or dominant values of the people in a particular period, fiscal resources are reallocated accordingly.

I made up these definitions myself as I realized there are no existing definitions when I checked the search engines like Google, Bing and Yahoo.

So sectoral parochialism is present in all sectors and sub-sectors of the economy. Those in the education sector, police, and local governments sector, defense and military sector, social welfare sector, health sector, agriculture sector, and so on will argue that their sectors must get more of the budget every single year.

Department and agency’s annual budget preparation get inputs from local government units through the various regional development councils. Civil society organizations (CSO) and non-government organizations (NGO) input are also considered. For instance, there is a big NGO network called the Alternative Budget Initiative (ABI) with sectoral clusters. The Department of Health (DoH) holds an “Annual Consultative Meeting with CSOs on Budget Proposal” and this is participated by Health cluster NGOs and held usually in early February of each year.

Since it is nearly impossible that people will not insert their biases and sectoral or political interests when given the chance to propose budget spending, then it is safe to assume that there is “LGUs pork” by elected mayors and governors, and “NGOs pork” by self-appointed people’s representative CSOs. These leaders may not accept the term but that is part of the annual process of budget preparations before the proposed budget is submitted to Congress by late July to mid-August.

In a sense, Congress (the House and Senate) come in late with budget insertions or “Congressional pork,” but they do make the ultimate decision over which of the projects and programs funding submitted by agencies will be retained, increased, or cut.

PHILHEALTH IDLE FUNDS
A number of columnists continue to criticize the Department of Finance (DoF) for its decision to tap the P90 billion in so-called idle or excess funds of the Philippine Health Insurance Corp. (PhilHealth) to fund some unprogrammed appropriations like foreign-assisted projects, government infrastructure, and social programs, payment of personnel benefits, etc.

The usual arguments against this move by the DoF and the economic team (including the Department of Budget and Management and the National Economic and Development Authority) are the following:

1. If those projects are indeed vital and crucial for economic growth, Congress should have prioritized them and included them among the programmed appropriations with regular funding and not put them among the unprogrammed appropriations with unprogrammed funding.

2. The integrity of our social health insurance should be protected so its funding should not be diminished and used for other sectors. (This is the standard sectoral parochialism argument.)

3. Instead of including more of Congress’ pork projects in programmed appropriations that bump off funding for some important programs, the DoF should call out the legislators instead for diverting PhilHealth funds for unprogrammed appropriations.

4. PhilHealth’s excess funds will qualify only as “idle” funds once we have already achieved universal healthcare (UHC) in the country, implying 100% health insurance coverage and, by extension, having out-of-pocket expenditures (OOPE) for healthcare reduced to the minimum if not eliminated.

As discussed in this column last week, “PhilHealth’s idle funds and health spending in Asia” (Aug. 27), the four points and related arguments have become predictable, repetitive, and unconvincing. And here are the reasons why.

On point one, even excluding the unprogrammed appropriations, excluding Congressional pork, the programmed budget deficit as submitted to Congress is already big — it was P1.50 trillion in 2023 and P1.36 trillion in 2024 — because of sectoral parochialism plus LGU pork and NGO pork.

On point two, members’ contributions (from P106 billion to P158 billion from 2021 to 2023) will not be used elsewhere, they will go to members’ benefit claims (from P85 billion to P153 billion in 2021 to 2023). It is the money from gamblers and bettors (portions of the remittances from the Philippine Amusement and Gaming Corp. or PAGCOR and the Philippine Charity Sweepstakes Office or PCSO), plus money from drinkers and smokers of legal products (portions of the alcohol and tobacco tax revenues), which average around P80 billion/year over the same period, that are being tapped for the unprogrammed appropriations.

On point three, LGU pork, NGO pork, and Congressional pork have become realities in our annual budget. It is difficult to quantify how much the pork for each of these three groups is because they are embedded in each agency and department. And it is not good to single out one while giving the other pork a pass.

On point four, 100% UHC coverage is a pipedream, an illusion that even very rich countries like Singapore and Japan cannot attain until today. For instance, in 2021, OOPE per capita in Singapore was $893 in current or nominal values and $1,429 in purchasing power parity (PPP) values, which are already 10 times and 6.5 times larger than Philippines. Yet Singapore has a UHC service coverage index (SCI) of only 89, same as South Korea, never 100% (see the table).

Even in theory, UHC will never happen. Even if the UHC budget is P1 trillion or P2 trillion/year out of the P6-trillion total budget, it will not be enough. Why?

Because whenever a service is free, demand will always be larger than supply, 100%. Just a mild fever and some people will demand hospital confinement — anyway, the UHC fund has a trillion pesos. A patient that has recovered after two- or three-days confinement will demand to stay for several days more, anyway it is at zero cost to them. And hospitals, physicians and other professionals will accommodate this kind of patient and raise their fees — the UHC fund is in the trillions of pesos anyway.

What forced UHC and health socialism will achieve is not 100% coverage but 100% fiscal collapse. The government debt stock to fund very costly UHC will keep rising to the stratosphere and debt servicing for principal plus interest will be at the lower layer troposphere.

With the persistent opposition to the reallocation of PhilHealth’s “idle funds” for other sectors even for a single year, the health sector has shown itself as being addicted to the gambling fund, the alcohol and tobacco tax fund, while at the same time lambasting alcohol and tobacco products. This is double talk and lacking intellectual honesty.

I think the public health advocates and lobbyists should thank the DoF because it is helping them to wean themselves away from addiction of gambling tax, alcohol and tobacco tax money.

Finally, we should go back to assuming more personal responsibility in running our own lives. Healthcare, education, food are first and foremost a personal and parental responsibility, secondarily a government responsibility. And fiscal realism should prevail over sectoral parochialism.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

DMCI Holdings sees completion of Cemex acquisition by end-November

DMCI Holdings, Inc. expects to complete its acquisition of Cemex Holdings Philippines, Inc. (CHP) by the end of November, according to a company official.

DMCI Holdings Executive Vice-President and Chief Financial Officer Herbert M. Consunji told reporters at a media gathering in Makati City late Tuesday that the company is awaiting a fairness opinion on its acquisition of CHP, the country’s fourth-largest cement producer.

“We anticipate no problems. At least we have the Philippine Competition Commission’s (PCC) approval. That is the biggest hurdle,” Mr. Consunji said.

Last month, the PCC approved DMCI Holdings’ acquisition of CHP.

Mr. Consunji also confirmed that CHP will remain listed on the stock exchange even after the acquisition is completed.

“We want them (investors) to stay. It is better to be listed,” Mr. Consunji said.

In April, DMCI, Semirara Mining and Power Corp. (SMPC), and Dacon Corp. announced the acquisition of CHP for $305.6 million under a share purchase agreement to expand the conglomerate’s portfolio.

DMCI bought the entire shares of Cemex Asia B.V. in Cemex Asian South East Corp. (CASEC), the majority owner of CHP with an 89.96% equity interest. DMCI will acquire a 56.75% stake in CASEC, Dacon will secure 32.12%, and SMPC will purchase the remaining 11.13%.

Dacon has been appointed as the bidder for the mandatory tender offer to acquire the remaining 10.14% of the total issued and outstanding capital stock of CHP.

Mr. Consunji also confirmed to reporters that he will lead CHP as the company aims for a turnaround by next year.

“We believe in local talent,” Mr. Consunji said.

In May, DMCI Chairman and President Isidro A. Consunji said the financial performance of CHP is expected to rebound by next year, led by stronger demand and the government’s infrastructure program.

The acquisition of CHP is DMCI’s “largest investment to date and first acquisition in a decade.”

CHP operates two principal subsidiaries, APO Cement Corp. and Solid Cement Corp. Both companies are engaged in the manufacture, marketing, distribution, and sale of cement and other building materials in the Philippines.

On Wednesday, DMCI shares climbed by 0.86% or 10 centavos to P11.70 apiece while CHP stocks fell by 1.64% or three centavos to P1.80 per share. — Revin Mikhael D. Ochave

Global data center industry to emit 2.5 billion tons of CO2 through 2030, Morgan Stanley says

NEW YORK — A boom in data centers is expected to produce about 2.5 billion metric tons of carbon dioxide (CO2)-equivalent emissions globally through the end of the decade, and accelerate investments in decarbonization efforts, according to Morgan Stanley research.

Hyperscalers, which include Google, Microsoft, Meta, and Amazon are driving the swift proliferation of electricity-guzzling data centers to expand their artificial intelligence and cloud computing technologies. At the same time, the companies are holding onto pledges to slash global warming emissions from their centers by 2030.

“This creates a large market for decarbonization solutions,” according to Morgan Stanley’s research report on Monday, which said the greenhouse gas emissions by the global data center industry will amount to about 40% of what the entire US emits in a year.

The build-out of the giant computer warehouses will increase investments in clean power development; energy efficient equipment and so-called green building materials, Morgan Stanley said. Carbon capture, utilization, and sequestration technology and carbon dioxide removal processes are also expected to get a boost as tech companies try to keep their climate promises, the report said. — Reuters

Metrobank Foundation and GT Foundation award over P45M in development pledges, grants

The Metrobank Group led by Chairman Arthur V. Ty and their 30 development partners at the 2024 George S.K. Ty Grants Turnover held at the Grand Hyatt Hotel on Sept. 4. — METROBANK FOUNDATION, INC.

THE METROBANK Foundation, Inc. (MBFI) and GT Foundation, Inc. on Wednesday awarded over P45 million in development pledges and grants to 30 partners as part of Metropolitan Bank & Trust Co.’s 62nd anniversary celebration.

“Under the theme “Engaging Partnerships, Empowering Communities,” the George S.K. Ty Grants Turnover Ceremony underscores the collective commitment of development organizations to empower communities in addressing key societal challenges. This year’s ceremony celebrates collaborative efforts in areas such as health promotion, access to quality education, livelihood development, and disaster preparedness,” MBFI said in a statement on Wednesday.

MBFI was founded by Mr. Ty 16 years after he founded Metrobank.

“For 45 years, we have instilled the essence of a heart that serves by highlighting our commitment to the nation’s well-being beyond just economic growth. We recognize that in empowering an entire nation, we must engage in partnerships to nurture communities, support societal progress, and deepen the contribution we can make to the greater good,” MBFI President Aniceto M. Sobrepeña was quoted as saying.

In the area of health, the two foundations partnered with various organizations on programs related to nutrition, water source rehabilitation, vegetable exchange in rural areas, supporting in-patient services and in-house surgical procedures for indigent patients, and providing free eye checkups and prescription glasses to public elementary students, among others.

In the education sector, the two foundations will provide financial assistance and career opportunities for students, enhance technical-vocational education, support educational access for underprivileged students, and boost early childhood education in indigenous communities, among others.

They also aim to provide livelihood training and enterprise development to women and youth in a Mangyan indigenous community through one partnership. For disaster preparedness, MBFI will support a project that provides customized boat trailers and establishes a team to assist fisherfolk in safely transporting boats to secure areas ahead of typhoons.

MBFI’s other partnerships focus on reforestation and livelihood opportunities for indigenous communities and socio-civic initiatives for improved medical care, enhanced mental health services and academic excellence. — AMCS

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