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Entry of Indonesia’s Go-Jek on hold, says LTFRB

THE Land Transportation Franchising and Regulatory Board (LTFRB) said Indonesian ride-hailing company Go-Jek filed an application to operate in the Philippines, but it was not entertained as the government issued a moratorium on accrediting transport network company (TNC) last month.
“The moratorium came out before they filed their application for accreditation,” said the office of LTFRB Chairman Martin B. Delgra III in a message to reporters on Wednesday.
The company filed its application on Aug. 13. In May, the LTFRB said it met with representatives of Go-Jek to discuss the possibility of its entry to the Philippines after Uber Philippines exited the scene.
LTFRB Board Member Aileen Lourdes A. Lizada said then the officials of Go-Jek had to review the regulatory policies in the Philippines, particularly its limits to surge pricing.
“Go-Jek can surge up to x5 in Indonesia, I told them, [in the Philippines it’s] up to x2 [only]. Then I asked them if [it’s only] x2, will you survive? They said they need to study,” Ms. Lizada said in May.
LTFRB Memorandum Circular (MC) 2018-016, which was signed by the board on Aug. 9, barred the government from accepting new applications for TNCs that intend to operate transport network vehicle service (TNVS) units.
It said the move was meant to “closely monitor the existing accredited TNCs for TNVS and those subject for renewal and/or evaluation.”
Ms. Lizada said in June the LTFRB was challenged with the regulation of TNCs. The plan to issue a moratorium was being deliberated at the time, but she had hinted about the move towards issuing the ban.
“Kasi kailangan namin (We need to). There’s a new DO (department order). We have to come up with new MCs, and we have a lot of TNCs. Baka magkakalat na naman tayo dito, hindi mo pa alam (We might mess this up, you don’t know). And then we also need to protect our local companies as well,” she said then.
The DO she pertained to is DO No. 2018-013 of the Department of Transportation (DoTr), which mandated the LTFRB to regulate TNVS.
At present, the government has six TNCs with accreditation to operate: Hype Transport Systems, Inc.; GoLag, Inc.; iPara Technologies and Solutions, Inc. (Owto); E-Pick Me Up, Inc.; Hirna Mobility Solutions, Inc.; and Micab Systems Corp.
Of the six, only the first four field TNVS or private cars, while Hirna and Micab run a fleet of taxis.
Older TNCs Grab Philippines (MyTaxi.PH, Inc.) and U-Hop Transportation Network Vehicle System, Inc. have pending cases for renewal of accreditation with the LTFRB. No decision has been made on their extensions yet.
MC 2018-016 also identified other TNC applicants that have not been granted accreditation. Pending for resolution at the pre-accreditation committee level is Ryd Global, Inc., while pending for evaluation at the same committee level are Citimuber Corp.; Aztech Solutions International Corp.; Unified Transport Operations League (U.T.O.L.) SMESOFT, Inc.; and iHitchonline, Inc. — Denise A. Valdez

Restaurant Row (09/27/18)

Local flair, global dishes

THE Chef’s Specials of Eastwood Richmonde Hotel’s Eastwood Café+Bar are back this month. The theme is “Mundial (or global) Cuisine” which, according to Executive Chef Vic Barangan, combines local and international cooking styles and ingredients to create original gourmet dishes. For this period, The Chef’ Specials’ main dishes are US short ribs braised in Mr. Apo coffee (P995); Abra organic chicken a la kiev with salted egg butter (P995); parrotfish fillet with tamarind, cilantro, jicama, and Zambales mangoes (P895); and, Australian lamb shank cooked adobar-style with garlic and hollandaise (P985). These come with artisan bread with flavored butter and tomato jam; compressed watermelon salad with basil, olives, goat’s cheese, rocket leaves, and radish; and Tortellini Royale soup made of consommé with adlai, tortellini of chicken, and mushroom dexelles. The “Dessert Mélange” includes pistachio bark, spiced walnuts, cured egg yolk, basil oil, coral sponge cake, cream cheese and vanilla ice cream. The Mundial Cuisine is available from September to November. For inquiries and table reservations, call 570-7777.

Pumpkin Spiced Cake

CAFÉ ROMANÇON is ready to usher in the celebration of Halloween with its featured dessert, Pumpkin Spiced Cake. Crafted from naturally grown fresh pumpkins, this rich decadent cake is infused with spices and features a cream cheese frosting coat topped with chocolate slices and crisp bits of pistachios, pecan nuts, walnuts, and almonds. Café Romançon is located at the Hotel Benilde Maison De La Salle corner of Arellano Ave. and Estrada St., Malate, Manila. It is open daily from 6 a.m. to 10 p.m.

Oktoberfest at Vu’s Sky Bar and Lounge

CELEBRATE Germany’s annual festival at Marco Polo Ortigas’ Vu’s Sky Bar and Lounge with authentic Bavarian sausages and staple beer beginning Sept. 26. Order a platter of Bavarian sausages grilled fresh on live cooking stations for the promotional price of P999 which includes a half-liter of Paulaner Beer from tap. This craft Munich beer will also be available for P340. This special offer is available until Oct. 13. For reservations, call 720-7777 or e-mail restaurant.mnl@marcopolohotels.com.

McDo’s ‘Chairman’s Treat’

TO CELEBRATE the birthday of McDonald’s Philippines Chairman and Founder, Dr. George T. Yang, and the anniversary of the opening of the first McDonald’s store in the country, McDonald’s is offering the “Chairman’s Treat” today, Sept. 27 — buy one McSpaghetti McSaver meal and get one Burger McDo free from 2 to 4 p.m. The “Chairman’s Treat” puts the spotlight on McSpaghetti and Burger McDo, two local products exclusive only in the McDonald’s Philippines menu, which Yang championed. The promo is available across all McDonald’s restaurants for dine-in, take out, and drive through customers.

World of Wine Fair

MARKETPLACE by Rustan’s is holding the World of Wine Fair from Sept. 28 to 30 at the Shangri-La Plaza Grand Atrium. Featuring premium wines sourced directly from estates and sold at exclusive rates, the event boasts selections from eight different wine making countries, including Italy, France, USA, Chile, and Argentina. Shoppers will also have the opportunity to learn more about wine culture from 15 respected international wine makers and wine experts. At the Straight from the Vineyard sessions, nine wine makers will be discussing topics ranging from the history and heritage of the Rioja wine region to the complex wine classification of Bordeaux. To register for a session, present a Fresh, Marketplace, or Sapphire card at any Marketplace by Rustan’s branch in Shang, Rockwell, or Makati and pay P299 a session. Non-cardholders may enroll for P500. All participants in the sessions will receive a free bottle of wine. Customers will receive a discount of 10% on all bottles purchased at the fair, and 15% off for a purchase of six or more bottles. Those who spend P5,000 or more will also be entitled to free delivery. A minimum spend of P1,000 gains one entry to the World of Wine Raffle Promo with prizes like Swarovski Gift Certificates worth P20,000, Apple iPads (32GB), a trip for two to Napa Valley with a private vineyard tour of Beringer, and the grand prize — a trip for two to France, with a two-night stay at the Lamouthe Mansion and Vineyard. For details visit www.rustansfresh.com.

Qualcomm says Apple stole, gave chip secrets to rival firm Intel

SAN FRANCISCO — Qualcomm escalated a legal war with Apple, accusing the iPhone maker of stealing secrets and sharing them with mobile chip rival Intel, according to court documents.
The California mobile chipmaker on Monday added the sizzling accusation in an amendment to a lawsuit filed against Apple last year in California state court in Qualcomm’s home city of San Diego.
The modified filing contends that Apple “engaged in a years-long campaign of false promises, stealth, and subterfuge designed to steal Qualcomm’s confidential information and trade secrets” in order to help Intel and other rivals field competing mobile chips,
Apple’s goal was to buy mobile chips from Intel instead of depending on Qualcomm, the dominant maker of mobile phone processors, the court document claimed.
Qualcomm general counsel Don Rosenberg said in response to an AFP inquiry that the latest filing showed that “Apple has flouted its contractual commitments and misappropriated Qualcomm’s property rights in an effort to improve its performance and increase its profits.”
In response to a request for comment, Apple directed AFP to a comment the Silicon Valley company made in June of last year regarding its clash with Qualcomm.
“Qualcomm’s illegal business practices are harming Apple and the entire industry,” Apple said.
“They supply us with a single connectivity component, but for years have been demanding a percentage of the total cost of our products — effectively taxing Apple’s innovation.”
Apple’s ongoing legal battle with Qualcomm includes accusations that the chipmaker has been charging for invalid patents. Apple had long relied on Qualcomm for chips for iPhones, but turned to Intel after the onset of legal wrangling.
Early last year the iPhone maker filed a lawsuit complaining that Qualcomm — which produces chips widely used in smartphones and tablets around the world — abused its market power to demand unfair royalties, and demanded billions of dollars in compensation.
Apple filed similar complaints against Qualcomm in China.
Qualcomm counter sued, claiming that Apple breached agreements and encouraged regulatory attacks worldwide on the chip firm.
Last month, Qualcomm settled a long-running antitrust investigation in Taiwan for around $90 million.
Qualcomm still faces huge fines linked to similar probes in South Korea, the European Union, and the United States, while it is also involved in a long-running licensing dispute with tech titan Apple.
Qualcomm in 2015 agreed to pay $975 million to settle antitrust charges in China. — AFP

China unlikely to follow Fed hike

CHINA’S central bank is expected to keep borrowing costs on hold through the end of this year despite further Federal Reserve rate hikes from this week, as economic growth slows and the trade war with the US gets worse.
The interest rate on People’s Bank of China (PBoC) seven-day reverse-repurchase agreements will stay at the current level of 2.55% through the end of the year, according to the median estimate in a Bloomberg survey of more than 40 traders and analysts conducted from Sept. 18-20.
Fed policy makers are widely expected to authorize a quarter-point hike in their benchmark overnight interest rate in Washington on Wednesday and signal they are on track to complete another increase before the end of the year.
“There is no need to follow,” said Meng Xiangjuan, chief bond analyst at SWS Research Co. in Shanghai, adding that the stabilizing yuan-dollar exchange rate also reduces the pressure on the PBoC.
The escalating trade war with the US and slowing economic growth are weighing on monetary policy decisions. China’s government is cutting some taxes, boosting spending, and loosening the monetary stance to ensure ample market liquidity.
“The trade uncertainty has prompted the central bank to maintain an accommodative bias,” Raymond Yeung, chief greater China economist for Australia & New Zealand Banking Group Ltd. in Hong Kong, said in the survey, adding that the central bank will likely stay put as it did in June after the Fed raised rates.
Zhu Jianfang, chief economist at Citic Securities Co., also said in a research note that China is not likely to keep up with the Fed in the fourth quarter, citing the downward pressure on the real economy.
About 90% of the survey respondents said the central bank will inject more liquidity into the market in the fourth quarter. The medium-term lending facility tool is seen as being the most likely method for over 87% of respondents, with injections via a lowering of the reserve requirement ratio or open market operations also seen as possible for over 70%.
The PBoC will “try and maintain sufficient liquidity in the system,” Jeremy Stevens, a Beijing-based economist at Standard Bank Group Ltd. said in response to the survey. The measures won’t translate into effective lending in the short term, but “that is better for the longer term outlook for the Chinese economy,” he added. — Bloomberg

US water technology company keen on local projects

US-based water technology company Xylem, Inc. aims to boost its presence in the Philippines by participating in a number of projects, including those in the mining sector, to help them become responsible stewards of water, company officials said.
“Philippines is one of the fastest-growing markets in Southeast Asia. We already started to see a number of projects, on flood control, on non-revenue water, investing in water losses,” Koh Ching Hin, Xylem’s managing director for Southeast Asia, in a press conference in Mandaluyong on Wednesday.
“The other market we are developing now is for the mining sector,” Mr. Koh added.
According to the company’s website, New York Stock Exchange-listed Xylem offers different projects for the mining industry namely: submersible slurry pumps, packaged biological treatment system, leaching, open pit dewatering, grinding mill, fire suppression system, floating water monitoring stations, environmental monitoring stations, source water pontoon, and underground dewatering.
Mr. Koh said that Xylem seeks to partner with water concessionaires in the country.
Patrick K. Decker, Xylem’s president and chief executive officer, said the company is cautious about the mining sector in the Philippines due to its sensitivity, as lawmakers look at banning open-pit mining, as well as raising the excise tax for minerals to 5%.
“There’s more money spent on water management that there is on the actual mining operations itself. This is just a very intensive aspect of the mining processes,” he said.
“Our angle is to try to help the mining companies themselves be better stewards with the water that they are generating in a day. Our view is somebody has to be there as a responsible water steward to help them with water displacement,” he added.
Last year, former Environment Secretary Regina Paz L. Lopez ordered the cancellation of 75 mineral production share agreements, which cover watershed areas, but many of which were still in the exploration stage.
“I would say that the Philippines is no further behind than other members of Southeast Asia but still has a lot of work to be dine, but I would also say there seems to be a real commitment on the part of your government to be investing in wastewater infrastructure and clean water infrastructure in the next five years … It’s a big investment plan,” Mr. Decker said.
Xylem, which reported revenues of $4.7 billion in 2017, does business in more than 150 countries. — Reicelene Joy N. Ignacio

Sirius enters lion’s den of Silicon Valley with Pandora deal

SIRIUS XM Holdings Inc. is so eager to reach listeners outside the car that it’s willing to take on some of the world’s largest technology companies.
Sirius, controlled by cable TV billionaire John Malone, announced an all-stock deal to buy Pandora Media Inc. on Monday, uniting the largest satellite radio service in the US with the largest online radio company. Sirius was already a minority shareholder in Pandora, which it tried to acquire at least twice before.
The marriage immediately would give Sirius a large customer base outside the car, a priority for a company that uses satellites to deliver its programming. Pandora, for all its struggles, has more than 70 million customers. The combined sales of the two should surpass $7 billion this year, eclipsing even Spotify Technology SA, the world’s largest paid online music service.
But the deal also pits Sirius against technology’s fiercest competitors: Apple, Spotify, Amazon.com Inc. and Alphabet Inc.’s YouTube. They’re all racing to grab a bigger piece of the resurgent music market, which is growing again after years of declines as more consumers pay for music services they can access on their phones and via internet-connected speakers.
Pandora was struggling to keep up, and now Sirius is betting it can do better. Investors are less certain. Sirius shares fell 10% Monday, cutting the value of the all-stock deal to less than $2.5 billion for Pandora shareholders. They didn’t recover on Tuesday, when they dipped less than 1% to $6.25.
COMPETITION RISES
“Competitive intensity is rising,” said Mark Mahaney, an analyst with RBC Capital Markets. For Pandora, “It may be better to sell now while you can.”
Analysts at Wedbush, meanwhile, said the slide in Sirius shares means Pandora investors probably will vote against the transaction.
Pandora was once an internet darling. The company promised to bring the anachronistic radio industry online, delivering stations personalized to the taste of every user. Founded by former musician Tim Westergren, Pandora said it would help expose undiscovered musicians to millions of new fans using software the company dubbed the music genome project.
The company attracted millions of customers, slowly lured advertisers online, and its market value approached $8 billion in 2014. Yet what was once a fast-rising startup, and then an early online media success story, is now a company in decline.
Advertisers remained stubbornly loyal to conventional radio, and Pandora’s leaders missed the next revolution in online audio: on-demand streaming. First YouTube, and then Spotify began offering users catalogs of all the music in the world, delivered not just on radio stations but via playlists, videos and full albums.
Pandora’s management resisted a sale for a couple years and shuffled through a couple of chief executive officers, including Westergren twice. In his second go-round, Westergren tried to compete with Spotify and Apple Music head-to-head, building an on-demand product to complement Pandora’s radio service. But the company was six months late in launching the system and royalty payments to the record industry led to continued losses.
“There was the expectation the company would launch the premium services earlier than it did,’’ CEO Roger Lynch said in an interview a couple weeks ago, while denying the company was in sale talks. Pandora is in the process of negotiating new record company deals now and expects to reduce its losses, he said.
SLING TV
Lynch took over after Pandora agreed finally gave in to Sirius’s entreaties, selling a minority stake and handing over three seats on the board. Lynch came to Pandora from Sling TV, the online video service from satellite TV provider Dish Network Corp.
Neither Lynch nor Sirius provided much detail about how the companies would complement one another, except to say they plan to share programming and marketing opportunities. Sirius said the two services would remain the same for the time being, but analysts are already speculating about how the combined companies could work together.
Pandora has been expanding into non-music programming like podcasts and could add popular shock jock Howard Stern and sports talk from Sirius. Pandora, meanwhile, could use Sirius’s relationships with automakers to get better placement in cars.
It all depends on Sirius executing, Macquarie Capital analyst Amy Yong said in a note. “If successful, the long-term growth profile is attractive.” — Bloomberg

How PSEi member stocks performed — September 26, 2018

Here’s a quick glance at how PSEi stocks fared on Wednesday, September 26, 2018.

Philippine Stock Exchange’s most active stocks by value turnover — September 26, 2018

UK briefing touts PHL growth, admits headwinds

ECONOMIC managers pitched British investors in London by citing the Philippines’ strong economic outlook and pace of reforms, despite recent difficulties with inflation.
“Our growth performance for the first semester of this year was below expectations, hampered by elevated inflation and supply issues. Like the rest of the economies in the world, the Philippines is not exempted from challenges,” Finance Secretary Carlos G. Dominguez III said in a speech before about 300 British executives on Tuesday during the London leg of the Philippine Economic Briefing, a copy of which was distributed to reporters.
“But what differentiates our economy from many is the decisiveness, the extent, and the pace by which we are implementing policy and infrastructure reforms. We remain one of the best-performing economies in the region and our outlook is strong,” he added.
He also noted the government’s “decisiveness” to push medium to long-term reforms such as the Tax Reform for Acceleration and Inclusion (TRAIN) law that lowered personal income taxes while raising and adding levies on fuel, tobacco, automobiles, minerals, and sugary drinks, among others.
He also noted complementary anti-red tape measures such as the Ease of Doing Business act, which requires government offices to shorten their processing times, as well as the national ID system. He also noted the “continued liberalization of foreign ownership in business,” as embodied in the upcoming Foreign Investments Negative List being reviewed by the President, which is expected to be more welcoming to foreign ownership.
Gross domestic product (GDP) grew 6% in the second quarter from 6.6% a year ago and in the first quarter this year, closing at a 6.3% growth in the first semester versus 6.6% in the comparable period in 2017 — below the government’s 7-8% target range.
“At the moment, the Philippine economy is experiencing elevated inflation rates. We have determined that the sources of inflationary pressure have been the spike in food prices, sharp rise in international oil prices and an adjustment in the peso’s exchange rate,” he added.
Inflation in August accelerated to 6.4% from 5.7% a month earlier and 2.6% a year earlier. In the eight months to August inflation averaged 4.8%, well above the central bank’s 2-4% target range.
This week, the peso also depreciated to a fresh 12-year low ahead of expected rate hikes from the Federal Reserve and the Bangko Sentral ng Pilipinas.
Mr. Dominguez also said that the government remains “on course” towards reaching its medium-term goals, which include reducing poverty incidence to 14% by 2022, from 21.6% in 2015. It also aims to ramp up infrastructure spending to 7.4% of GDP over the next four years from 5.6% last year.
“Our growth target is consistent with projections of multilateral institutions and global think tanks. With higher public investment, we are confident our growth target is achievable,” Budget Secretary Benjamin E. Diokno said at the same event.
“Government spending will remain sustainable, and supportive of economic growth and development,” he added, noting that the country’s “sound, prudent and sustainable economic blueprint” will ensure that UK firms invest in a “bright spot.”
He said the debt ratio to gross domestic product was 36.6% in 2017, well below the 60% threshold deemed “fiscally sound.”
Mr. Dominguez also touted the government’s second package of tax reforms reducing corporate income tax rates and streamlining fiscal incentives
“The rationalization of our fiscal incentives, in turn, will create a level playing field for our enterprises and attract new players to compete. The accretion of so many incentive schemes through the uncoordinated action of legislators and economic zones in the past has produced something near chaos,” he said.
“While other countries give incentives for a limited period, the tax incentives handed out now by law in the Philippines are in lieu of all taxes, both national and local, and apply forever, even if the firm no longer produces a net positive benefit for the country,” he said, noting some $5.6 billion worth of incentives were awarded, with some $800 million possibly lost due to transfer pricing abuse.”
The House of Representatives approved on final reading House Bill 8083 on Sept. 10, which seeks to cut the corporate income tax rate gradually from 30% currently to 20% by 2029, via a two-percentage-point reductions every other year starting 2021.
Fiscal incentives will be limited to industries identified in the Strategic Investments Priority Plan (SIPP) that meet performance standards. Redundant incentives will be repealed, but the government will retain and harmonize some perks in a single menu, including: a three-year income tax holiday, after which applies a special income tax rate of 18% starting 2021, and possibly 13% by 2029; deductions for labor, research and development, training, and infrastructure development costs; and some customs duties exemptions.
Also at the briefing were Socioeconomic Planning Secretary Ernesto M. Pernia, Trade Secretary Ramon M. Lopez, Transportation Secretary Arthur P. Tugade, Public Works and Highways Secretary Mark A. Villar, Tourism Secretary Bernadette Romulo-Puyat, Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo, and Bases Conversion and Development Authority President and Chief Executive Officer Vivencio B. Dizon. — Elijah Joseph C. Tubayan

House suspends mining tax hearing pending further talks

THE House Committee on Ways and Means on Wednesday deferred consideration of the proposed mining tax reform as the positions of the Department of Finance (DoF) and the mining industry are currently irreconcilable.
The committee was due to consider approval of the unnumbered substitute bill that will increase the current effective tax rate imposed on mining firms to 21% from 11%, much higher than the industry proposal for a rate of 13%.
“It seems there is a deadlock now. The mining industry is submitting a proposal which is different from the stand of the DoF,” Rep. Johnny Ty Pimentel of the second district of Surigao del Sur, a committee member, said during the deliberations.
The bill, “An Act Establishing the Fiscal Regime For Mining Industry,” in its latest version, proposes a 5% royalty for all mining operations, regardless of the mineral product.
The 5% royalty is currently levied only on mining operations within Mineral Reserves; but, as proposed, will be applied outside Mineral Reserves, in increments from 3 to 5% within five years of enactment.
Chamber of Mines of the Philippines (CoMP) Chairman Gerard H. Brimo said the 5% royalty on top of all other taxes, such as the 4% excise tax, average 1.7% local business tax, among others is “very punishing.”
“That brings a total imposition on gross revenues, payable whether a mining company makes money or not, to close to 12%, and I can categorically say without any doubt that is the highest in the world,” Mr. Brimo said.
The CoMP proposed to instead impose varying rates depending on the type of mineral product and to distinguish between those operating in and out of mineral reserves.
The DoF said it has reservations about such a scheme, but signalled that it is willing to accept an effective rate close to its own number.
“What we’re looking at is an effective tax rate which is approximate to what we have proposed. If it’s not as high, something very close to that,” Finance Assistant Secretary Teresa S. Habitan told BusinessWorld.
Since the two sides are not “close” she asked the committee for time to find common ground in the form of a taxation rate that “more or less” represents a “common unhappiness level.”
Given the distance between both sides’ positions, Mr. Pimentel recommended that the panel hold another meeting to accordingly find a compromise between the government and the mining industry.
The committee had earlier set an ultimatum for the DoF to submit a new draft with inputs from the mining sector and threatened to proceed with its own draft. — Charmaine A. Tadalan

Gov’t support seen needed to help education system adjust to AI, IBM executive says

By Denise A. Valdez
DEALING with the emergence of artificial intelligence (AI) and the threat of job losses should be a greater concern for the government in addressing key reforms to the education system, an executive from IBM Philippines, Inc. said.
In a P&A Grant Thornton forum on AI impact on businesses in Makati City, IBM Philippines Chief Technology Officer Lope A. Doromal, Jr. said students need to be trained as early as possible to adapt to the evolving industry which itself is adjusting to AI.
“Obviously there’s a lot of mathematics and science involved in AI, and I think there is some way to go in terms of getting our students some of the skills needed to help them in their AI journey,” he said.
Mr. Doromal said he believes any job that focuses on memorization is in danger of becoming obsolete.
“The problem with that statement is our education system is still geared toward memorizing things. We need to teach our students to become creative. It’s easy to research things nowadays. You don’t need to memorize many things as long as you know how to find those pieces of information. What’s important is critical thinking, putting these pieces of information together,” he added.
In an interview after the forum, Mr. Doromal said the growing penetration of AI in various companies and industries has started to appear threatening to some business leaders and workers. He said their impression was of “man versus machine” because of the tendency to represent the phenomenon as a process of replacing human resources.
He said this should not be the case, and that AI should be seen as an aid in improving the work processes across industries and a driver for the enhancement of human talent.
“As we automate things, we need to start looking for people to move up the value chain and make them more productive in other parts of the organization. It doesn’t mean that people will lose their jobs, it just means that their jobs will transform into something more productive,” he said.
He said since an AI-dominated work environment is “probably inevitable,” the government must begin looking at how it educates people to allow them to move up the value chain.
“The threat that AI poses is that it can potentially displace some of the jobs that are sort of repetitive, that don’t really require creativity, critical thinking…. To anticipate that, the government also needs to start looking at how do we now train our people so that they can move up the value chain,” he said.
Mr. Doromal said computers, mobile phones and the Internet were once seen as threats as well, but simply displaced technologies like typewriters and landline telephones and were eventually perceived as more helpful than harmful.
“I think the same thing will also happen with AI. It will make us more productive. It will allow us to do our jobs faster, better. And hopefully it will give us more time to enjoy other things rather than just working,” he said.

NIA completes irrigation project in Davao region

THE National Irrigation (NIA) Authority said it inaugurated the newly-rehabilitated and Japan-funded P104.294 million Mal River Irrigation System (Mal RIS) in Davao del Sur.
“Mal RIS, whose water sources come from Mal River in Matanao, is expected to provide timely and reliable irrigation service to 2,635 hectares of agricultural land in the municipalities of Matanao, Kiblawan, and Hagonoy in Davao del Sur, benefiting 3,720 farmers and their families,” NIA said in a statement.
NIA Deputy Administrator Romeo G. Gan said: “The rehabilitation of Mal RIS will translate into efficient operation and maintenance, and eventually optimization of the benefits derived from this irrigation system.”
The NIA also turned over Irrigators Association (IA) Buildings and Support Facilities in the municipalities of Matanao and Kiblawan, respectively.
“The new building which will house the IA Office will serve as a conducive workplace where meetings can be held, records and documents can be secured, and a place where different agencies can coordinate with the IA. The post-harvest facilities will ensure quality of rice produced, thus, gaining a higher price for the commodity and eventually increasing the farmers’ income,” Mr. Gan said.
Meanwhile, the NIA said that it is hoping to venture beyond its core mission to develop hydroelectric and floating solar power projects and reposition large dams as agri-tourism destinations. — Reicelene Joy N. Ignacio

Senator warns quarrying ban may make inflation worse

THE suspension of quarrying operations in eight regions may worsen inflation, Senator Francis G. Escudero warned on Wednesday.
In a statement, Mr. Escudero said the Department of Environment and Natural Resources’ (DENR) policy may increase the prices of construction materials, such as cement and aggregates, which could hinder the government’s Build, Build, Build infrastructure program.
He warned of possible shortages in construction materials as well.
“Amid the government’s efforts to control inflation, here is a policy decision from one agency that will erase whatever few gains they have made at reining it in,” he said.
“The basic problem is this will have inflationary tendencies on cement and aggregates, and will impinge upon the administration’s ‘Build, Build, Build’ project, not to mention that [the ban is] sweeping and clearly arbitrary,” he added.
He said the DENR should have conducted instead the safety and geohazard evaluation first given that the mining and quarrying firms hold operating permits issued by the department.
The DENR on Sept. 21 released a memorandum suspending quarrying operations in the Ilocos region, Cagayan Valley, Central Luzon, Calabarzon, Bicol region, Central Visayas, Northern Mindanao, Davao region, and Caraga.
Environment Secretary Roy A. Cimatu has said the suspension will be enforced until the review and assessment of quarry operations are completed.
Mr. Escudero also called on the DENR to address the problem soon by adding more teams that will inspect hundreds of quarries all over the country.
He also said that while he fully understood Mr. Cimatu’s decision to prioritize the safety of communities near quarries, a balance must be struck to mitigate the economic implications of the policy as well.
“They should form 50, 80, 100, 200 inspection teams. They should inspect within one week. If someone has violations, close them down. But don’t close [everything] immediately while inspections have not yet started. That seems to be a wrong policy,” Mr. Escudero said.
“Everyone knows that when prices increase in this country, it is difficult to bring back the previous level of prices even if you [increase] supply,” he added. — Camille A. Aguinaldo

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