Home Blog Page 1231

Telcos, 2 agencies to build central data system for cyber, physical infra

FREEPIK

THE PHILIPPINE Chamber of Telecommunications Operators (PCTO) and its partner agencies in the government plan to establish a central data repository for the country’s cyber and physical infrastructure.

The PCTO, Cybercrime Investigation and Coordinating Center, and PNP Anti-Cybercrime Group have formed a multisectoral group, PROTECTA Pilipinas, aimed at protecting the Philippines’ technology assets.

One goal of the group is to build a central data system for the country’s cyber and physical infrastructure, Smart Communications, Inc. Head of Regulatory Affairs and PCTO Vice-President Roy D. Ibay told reporters on Thursday.

The Philippines does not have an initial assessment of its actual losses in terms of cable theft, he noted.

He said cable or copper theft has been identified as a major issue affecting utilities, telecommunications, and transportation industries.

For instance, South Africa is reportedly the most affected, with estimated losses ranging between $280 million and $370 million per year, he said.

“(For the Philippines), we have not estimated that yet, and that is why that is one objective of PROTECTA Pilipinas to come up with initially a repository of all this data. Because we do not have a central organization that makes a database of all this cyber and physical infrastructure,” Mr. Ibay said.

He said the group is also putting forward a concrete measure addressing cyber threats.

“It highlights the need for ongoing efforts to enhance our cybersecurity measures because cyberattacks can disrupt services like sensitive data and cause significant economic losses. Outside cybercrime, or cybersecurity issues, the threat to physical infrastructure,” Mr. Ibay said.

He noted that telecommunications infrastructure is a critical driver of economic growth.

“The digital economy in the Philippines is projected to [grow] by 2025. To realize this potential, we must ensure that our infrastructure is robust, secure, and accessible,” he said.

According to an earlier report issued by Google, Temasek Holdings, and Bain & Company, the country’s digital economy is projected to reach as high as $150 billion by 2030 as the e-commerce boom continues.

It projected that the Philippines’ internet economy will grow by an annual 20% to reach $35 billion by 2025.

The group, PROTECTA Pilipinas, will mainly work on safeguarding technology and digital infrastructures by helping develop and craft policies to address the issues hounding the sector.

“We really intend to gather the broadest consensus of thought leaders to be able to at least come up with certain policies that we can lobby to our lawmakers,” he added.

PROTECTA Pilipinas, composed of relevant government and private sectors, will facilitate collaboration between telecommunications operators, equipment manufacturers, and service providers to help ensure a secure infrastructure, Mr. Ibay said. — Ashley Erika O. Jose

A new wave of premium car models for discerning motorists in the Philippine market

Lexus LBX — www.lexus.com.ph

With the number of automobiles in the traffic-congested streets of the Philippines, it can be said that Filipino car buyers have a vast array of options from up and down the pricing spectrum. However, for those with a discerning eye and a taste for the finer things, the allure of luxury cars rests not only on the emotional fulfillment, comfort, and enjoyment that they provide but also on the status and prestige that comes along.

The Philippines fosters a competitive luxury car market. With an increasing number of affluent consumers, the industry is expected to generate around $16 million this year and an annual growth rate of 4.05% until 2028, resulting in a market volume of US$18 million, according to analytics platform Statista.

Leading the premium car market in the country is Lexus, the luxury arm of Japanese car manufacturer Toyota, with 1,843 units sold amounting to 41.92% of the market share in 2023. Due to an influx of new vehicles, Lexus more than doubled their sales in 2022 of only 861 units.

German car manufacturing company Bayerische Motoren Werke AG (BMW) followed with 1,144 units sold last year, a slight drop from 1,160 sales in 2022. Mercedes-Benz rounds out the top three after selling 871 units in 2023 compared to 738 the year prior. BMW and Mercedez-Benz corner a market share of 26.02% and 19.81%, respectively.

Overall performance of the car industry in the country shows growth as the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) reported an increase in vehicle sales of 265,610 units, a 10.9% increase from 239,501 units during the same period in 2023.

As luxury car manufacturers continue to penetrate the expanding Philippine market, new offerings are set to elevate the automotive experience for Filipino consumers. These latest models promise to enhance the driving experience with advancements such as state-of-the-art infotainment systems, superior safety features, and customization options.

Lexus Philippines, the current leader, debuted the Lexus LBX, the brand’s smallest hybrid crossover yet. The subcompact crossover possesses a minuscule yet stylish exterior that has a unified spindle body and combines familiar design elements from the Lexus RX and UX.

The newly launched car is equipped with a hybrid powertrain that combines a 1.5-liter three-cylinder gasoline engine with an electric motor, generating a combined output of 134 horsepower and 185 Nm of torque. Other features of the LBX include a speaker audio setup, Lexus’ e-Latch system, and a 317-liter trunk at the rear.

BMW Philippines launched at the start of the year its first-ever fully electric vehicle in the Gran Coupé series, the BMW i4. Despite being an electric vehicle, the newly released model features fifth-generation BMW eDrive technology, enabling it to deliver 286 horsepower and a robust high-voltage battery that provides a range of up to 483 kilometers.

BMW i4 — www.bmw.com.ph

Similar to the classic BMW Coupé proportions, the BMW i4 has a long wheelbase with short overhangs and a flowing roofline. The luxury vehicle’s front is bannered by iconic vertically aligned kidneys which conceals state-of-the-art sensor technology that supplies the vehicle with real-time data.

Unlike other EVs, charging the BMW i4 is remarkably efficient. Depending on the charging power, the luxury vehicle’s battery can go from a 10% to 80% charge in just 32 minutes with up to 180 kW of charging power. With up to 11 kW, it brings the battery of the BMW i4 back to 100% charge in just 7 hours.

Just this June, IC Star Automotive, Inc., the official distributor of Mercedes-Benz vehicles in the Philippines, added the Mercedes-Benz EQE SUV at its dealership in Bonifacio Global City, Taguig. The EQE SUV is the latest EV offering of the German brand in the country joining previous models EQA, EQB, and EQS highlighting the company’s commitment to electrification, innovation, and sustainability.

Mercedes-Benz EQE SUV — www.mercedes-benz.ph

The vehicle’s reported single-charge range of 536 km to 628 km is made possible by the EQE SUV’s lithium-ion battery with a 96-kWh capacity. The EQE SUV’s exterior features a radiator grille, rear lamp elements in 3D helix designs, and the “lighting strike band” of the EQ series as headlamps.

Meanwhile, the car’s interior also screams luxury with specifications such as a 15-speaker Burmester 3D surround sound system dishing out up to 710W of sound, and Active Ambient Lighting allows for the customization of the light strips within. The EQE SUV is quite spacious as well boasting a cargo capacity of 580 liters growing to 1,675 liters with the seatbacks folded.

With leading luxury brands releasing new models of premium automobiles almost yearly, the luxury car market in the Philippines has experienced a dynamic growth that promises to continue amidst an expanding affluent consumer base. With these new arrivals promising cutting-edge technology, superior comfort, and stylish design, Filipino car buyers are set to enjoy an elevated automotive experience. — Jomarc Angelo M. Corpuz

EU lawmakers push for new ‘dynamic pricing’ rules after Oasis fans complain

OASISINET.COM

LONDON — European Union (EU) lawmakers are backing calls for new rules around the use of “dynamic pricing” when selling online goods, after Oasis fans complained about massively inflated ticket prices for a string of sell-out shows by the British band.

Last month, thousands of fans waited for hours in virtual queues to get their hands on tickets for Oasis reunion shows in the UK and Ireland next summer, only to find prices had jumped dramatically at checkout.

The resulting backlash sparked probes into Ticketmaster — the official ticketing partner for the concerts — among British, Irish, and European regulators.

Now eight of Ireland’s 14 MEPs (members of European Parliament) have backed calls for changes to the Digital Services Act (DSA), a sweeping set of tech regulations rolled out earlier this year, to avoid similar situations in the future.

“If we require further regulation to ensure dynamic pricing does not become the norm then I do think it will be necessary,” said Dublin MEP Regina Doherty, who previously called for Ireland’s Competition and Consumer Commission to investigate the issue.

Firms deemed to be in breach of the DSA face fines of up to 6% of their global turnover. Repeat offenders can be banned from operating in Europe altogether.

The EU has been conducting a broad “fitness check” of existing consumer protection laws over the past two years, with rules around ticket sales among those under review. A final report is due to be published later this year.

Ciaran Mullooly, MEP for Ireland’s Midlands–North-West constituency, told Reuters he would support new measures being added to the DSA.

“There’s no word to describe it other than ‘rip-off’,” he said. “It’s a real challenge for the Digital Services Act. The Commission is going to have to get involved in this — and if they don’t, it’ll make their legislation irrelevant.”

Another six of Ireland’s MEPs — Barry Cowen, Billy Kelleher, Cynthia Ni Murchu, Kathleen Funchion, Luke Ming Flanagan, and Lynn Boylan — told Reuters they would support the introduction of new rules to deal with the issue.

“We should discuss whether or not we should amend the DSA to deal with dynamic pricing,” said Ni Murchi. “This issue is not new. Now is the time to discuss and take action.”

A representative for Oasis declined to comment. Ticketmaster did not immediately respond to requests for comment.

Last week, when Britain’s Competition and Markets Authority (CMA) opened a probe, a Ticketmaster spokesperson said the company was “committed to cooperating,” and Oasis issued a statement saying decisions on ticketing and pricing were the responsibility of promoters and management. — Reuters

SFA Semicon Philippines Corp. to hold Special Stockholders’ Meeting on Oct. 11 via Zoom

 

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Philippine hotels get tech boost with Converge Concierge

CONVERGE ICT Solutions, Inc. seeks to enhance guest experience and improve the operational efficiency of local hotels with the launch of the Converge Concierge platform in partnership with Sky Cable, Inc.

Converge Concierge with SkyTV Plus integrates with existing hotel property management systems, streamlining bookings, guest services, and billing processes.

“This is a new innovation for the hospitality solution for hotel guest experience, especially since this is new interactive,” Converge Chief Executive Officer Dennis Anthony H. Uy told reporters during the launch of Converge Concierge, adding that this is also aimed to be installed in resorts, hospitals, and service apartments.

The Manila Hotel is the first to deploy the product, he said.

Mr. Uy said the hotels can advertise their services shown on their smart televisions, powered by Converge Concierge, while customers are provided with access to live channels, cable TV, streaming platforms, and in-app games.

The product features an in-room entertainment and information hub, complete with IoT-enabled smart controls and the high-definition IPTV solution, SkyTV Plus.

Brian Kendrick Uy, technical manager at Converge, said the platform allows guests to book restaurants and services, and in-room dining.

The firm also said the platform is scalable and not only caters to big hotels but also to medium-sized and small hotels.

“We hope to help with the transformation of the hospitality industry in the country, so that our country is more competitive in world tourism, across the world,” Converge Executive Vice-President and Chief Commercial Officer Mr. Benjamin B. Azada said.

SKY CABLE PARTNERSHIP
The product is an expansion of its partnership with Sky Cable Corp. after it announced a commercial agreement to upgrade Sky Cable’s network and services. Under this partnership, Sky Cable will use Converge’s network to enhance its offerings.

“I think with the existing content, which is the Sky, with the other thing, with the platform, we’ll be eventually doing series and per region because we have a nationwide operation. So especially where it’s a strong area,” Mr. Uy said.

The growth from the Converge Concierge will be reflected in the balance sheet in the first quarter or second quarter of next year, he said.

“We don’t acquire. We help them to be transformed since Sky is still analog technology. We have already built a massive infrastructure, so what we extend to them is using our infrastructure,” Mr. Uy said.

He said Sky Cable migrated all their technology to fiber and the new technology IPTV and just have a commercial arrangement.

Converge will first target hotels with Sky Cable subscriptions and will upgrade it. — Aubrey Rose A. Inosante

TIFF 2024: Pharrell’s animated biopic populated by LEGOs

IMDB
IMDB

TORONTO — The flesh-and-blood Pharrell Williams walked the red carpet on Tuesday with the star of his new animated biopic — a Pharrell Williams made of LEGO blocks — as Piece by Piece made its international premiere in Toronto.

The animated feature, voiced by Pharrell and fellow pop stars Gwen Stefani, Kendrick Lamar, and Jay-Z, takes the audience on an unconventional journey through the musical virtuoso’s upbringing and vibrant career by casting LEGO pieces as the characters in his life story.

Pharrell, a renowned recording artist, producer, and songwriter, said LEGO characters, a favorite of children around the world, gave the picture a global appeal and enabled the film to sidestep cliches in telling his story.

“LEGO really helps to universalize the story so that it can be received by anyone that comes from a marginalized community,” Pharrell, who has won 13 Grammy Awards, including three for Producer of the Year, said on the red carpet at the Toronto International Film Festival.

“I didn’t want to tell a story that’s like poverty porn. That’s a usual Hollywood trope and that’s not what this is.”

Director Morgan Neville said one of the reasons he tackled the project was his long-standing interest in music producers, who he said often have a larger vision.

“Pharrell is famous for seeing the world a little differently and approaching music differently,” Neville said on the red carpet.

The film was not the first Neville focused on musical artists. His credits include the 2015 Keith Richards documentary and 2023’s Bono & The Edge: A Sort of Homecoming with Dave Letterman.

Neville said animation was an ideal media to tell the story of Pharrell’s life.

“Pharrell has synesthesia, which means when he hears music, he sees color,” the director said. “The idea that … you could actually see the color and make all this stuff come alive and taking the beats he was writing and turn them into physical objects.”

Pharrell wrote an original song for the film, also titled “Piece by Piece,” about building a dream from the ground up.

He told Reuters the diversification of the LEGO characters was part of his dream.

“There’s all kinds of people on this planet,” he said. “All of this continues to be a gift,” he said. — Reuters

Capital flows and the Philippines’ growth forecasts

COLLAGE OF BWORLD PHOTO AND FREEPIK

Two days ago, the broadsheets reported that for June 2024, net inflows of foreign direct investment (FDI) stood at $394 million, a huge 29% drop from $555 million in June last year. Similarly, the June 2024 FDI level was more than 27.5% lower than the May level of $510 million. The decline was felt in all major FDI components.

Non-residents’ net investments in debt instruments, net investments in equity capital other than reinvestment of earnings, equity capital placements and reinvestments of earnings all retreated by double digits.

So, what happened to all those investment roadshows and global tours to bring in more foreign capital to augment domestic savings, help transfer technology and secure the growth momentum? Pledges are welcome, but the Philippines needs cash. Sustained growth is essential if we are to mitigate joblessness and poverty in this archipelago.

Yes, the June FDIs “might just be a data quirk and not a symptom of a broader slump.” In fact, for the first half of the year, net inflows of FDI actually rose, from $4.1 billion in the 1st half of 2023 to $4.4 billion in the 1st half of 2024, or an expansion of 7.9%.

But we rule out the explanation offered by some market players that the decline in FDIs in June was due to the uncertainty in the direction of policy rates of both the Bangko Sentral ng Pilipinas (BSP) and the US Fed. Philippine inflation rates on a monthly basis for the first six months of the year were already recorded at less than 4%, while the balance of risks moved to the downside as early as June. There was very little doubt the BSP would start easing last month. Inflation in the US was a narrative of sustained decline starting mid-2022. At least 25 basis points (bps) reduction is in the cards next week for the US Fed.

We don’t have to hammer it, but FDIs are for the long haul. They might be sensitive to changes in macroeconomic policy like the BSP’s policy rate, but they have been found to be more attentive to good governance, rule of law, quality of labor and infrastructure, as well as ease of doing business. Focus on these fundamentals, stay the course for the entire political cycle, and half of the battle for sustained growth should be won. Liberalizing markets and facilitating entry into various economic sectors can throw in bonuses. Since we have practically promoted the contestability of markets, short of amending the 1987 Philippine Constitution, it is our deficits in those fundamentals that continue to pull back our growth potential.

For instance, on the global good governance index in 2024, the Philippines’ ranking dropped four slots to 67th out of 113 countries, the worst in three years. This is based on the 4th edition of the Chandler Good Government Index. We scored lower in leadership and foresight, financial stewardship, and global influence and reputation. We lagged behind Malaysia, Indonesia, and Vietnam.

On rule of law, it is sad to note that based on the report of the World Justice Project, the Philippines’ Rule of Law Index in 2023 fell three ranks from 2022. Our score was lowest for criminal justice, fundamental rights, and corruption. We ended up 13th out of 15 countries in the East Asia and the Pacific region, and 100th out of 142 countries. These rankings are disturbing; they show we have one of the weakest rule of law. When the Alice Guos and Apollo Quiboloys of this world could be so blatant in their disregard of our legal and justice system, this is not surprising.

These two metrics alone were time and again among the subjects of foreign investors’ reservations. Based on past surveys of the World Economic Forum’s Global Competitiveness Report, while the Philippines was commended for inflation management and progress in credit rating, the following were the negatives: inefficient government bureaucracy, inadequate infrastructure, corruption, tax regulation, and tax rates.

In fact, the country’s National Competitiveness Council had alerted us that Brunei and Vietnam “have now overtaken the Philippines to take the 5th and 6th position in the region.”

If we go by the country’s savings rate, foreign capital continues to be indispensable. With a 24.4% savings rate in 2023, the country has not recovered from the economic scarring of the 2020 COVID-19 pandemic. It’s way below the three-year average of more than 30% prior to it.

The persistent current account deficit reflects this chronic savings-investment gap. External financing through foreign investments or foreign loans cannot be avoided if the National Government sustains its deficit spending policy while avoiding new or higher taxes in favor of intensified tax collection and remittances from government-owned and -controlled corporations (GOCCs).

And naturally, the fiscal space could only shrink. The fiscal deficit remains substantial as a percent of GDP while National Government (NG) debt has exceeded the P15 trillion mark at P15.7 trillion now, presumably close to 61% of GDP. For the first seven months of 2024 alone, NG debt servicing stood at P851 billion, more than double the P411 billion of a year ago.

Therefore, the least we should be doing is hope and pray that the National Economic and Development Authority’s (NEDA) fearless forecast of faster growth in the 2nd half of 2024 comes to pass. NEDA believes its likelihood is “very high” considering that inflation has trended down and within the target to 2-4%, allowing the BSP to start on its easing cycle. Lower interest rates are expected to affect the macroeconomy by motivating higher investment activity and economic growth. The challenge here is for the banks to follow the price lead of the monetary authorities as soon as possible, and carefully ease on their lending policy. Unless we see these happening, the BSP’s decision to be less cautious in August, and perhaps next month, would be of very little use.

More pro-active actions by the financial institutions are crucial if we want to see the contraction in the Philippines’ overall Purchasing Managers’ Index (PMI) for July reversed. All the covered sectors of manufacturing, services, retail and wholesale trade registered a retreat from expansion. The PMI has been a good leading indicator of economic growth.

All up, the BSP’s growth forecasts appear more firmly anchored, indicating a possible performance of within 6-7% this year, but the momentum may not hold for 2025 and 2026. Now using the Policy Analysis Model for the Philippines, the central bank pins its hopes on the positive impact of its recent shift in monetary stance in terms of higher consumption, supported by gains in real wages and sustained OFW remittances. The BSP is also sanguine about the improving labor market conditions and, of course, higher inflows of foreign capital.

The latest assessment of Singapore-based AMRO coincides with both the NEDA and BSP’s projections. AMRO places the country’s 2024 growth at 6.1% and 6.3% in 2025 on the strength of public spending, despite the limited fiscal space, private consumption, due to lower inflation, more jobs and robust OFW remittances. Considering the risks of price resurgence, AMRO’s 2025 forecast is slightly below the Government’s 6.5-7.5% target for next year.

Back to capital flows, the IMF recently proposed that the Fed Rate cuts “may help revive bond flows to emerging, developing economies.” Observing that the recent tight monetary policies across the globe sent borrowing costs for the smaller economies through the roof, there was a sharp slowdown in their Eurobond issuances. The Fund was quick to add that in addition to high borrowing cost, emerging and developing economies’ pre-existing vulnerabilities, including weak policy frameworks and governance, prevented them from tapping global capital markets. As a result, lower investment produced lower economic growth. Those with stronger fundamentals succeeded in tapping their own domestic capital markets.

The Philippines should therefore maximize the forthcoming inflows of foreign capital, both direct and portfolio, not only by persuading the BSP to sustain its easing cycle but also to address in a very decisive, singular manner our persisting vulnerabilities. And remember, they are numerous and rather interlinked with one another, with politics and vested interests.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Peso down as CPI data dash hopes of big Fed cut

BW FILE PHOTO

THE PESO depreciated against the dollar on Thursday after a surprise uptick in core US inflation for August dampened hopes for a big rate cut from the US Federal Reserve next week.

The local unit closed at P56.20 per dollar on Thursday, weakening by 22.5 centavos from its P55.975 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session weaker at P56.08 against the dollar. Its worst showing was at its close of P56.20, while its intraday best was at P55.96.

Dollars exchanged went down to $1.696 billion on Thursday from $1.71 billion on Wednesday.

“The peso [closed at] the P56 level after the surprise uptick in the monthly growth in US core inflation tempered expectations of a strong Fed policy rate cut next week,” a trader said in an e-mail.

US consumer prices rose slightly in August, but underlying inflation showed some stickiness amid higher costs for housing and other services, further dashing hopes of a half-point interest rate cut from the Federal Reserve next week, Reuters reported.

The mixed inflation report from the Labor department on Wednesday followed data last week showing the labor market still cooling in an orderly fashion in August, defying fears of a sharp deterioration, with the unemployment rate retreating from a near three-year high touched in July.

The consumer price index (CPI) increased 0.2% last month after rising by a similar margin in July, the Labor department’s Bureau of Labor Statistics said. The rise in the CPI was in line with economists’ expectations.

In the 12 months through August, the CPI advanced 2.5%. That was the smallest year-on-year rise since February 2021 and followed a 2.9% increase in July.

Financial markets saw a roughly 15% probability of a 50-basis-point (bp) rate cut at the Fed’s Sept. 17-18 policy meeting, down from 29% before the CPI data were published, according to CME Group’s FedWatch Tool. The odds of a quarter-point rate reduction were around 85%, up from 71% earlier.

The central bank has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range for a year, having raised it by 525 bps in 2022 and 2023.

Excluding the volatile food and energy components, the CPI climbed 0.3% in August after rising 0.2% in July. The so-called core CPI, seen as a measure of underlying inflation, was boosted by a 0.5% rise in shelter, which includes rents and hotel and motel accommodation, after advancing 0.4% in July.

In the 12 months through August, the core CPI increased 3.2%. Core inflation rose by the same margin in July. It increased at a 2.1% rate in the last three months.

The peso was also dragged down by demand for the dollar amid the seasonal increase in imports, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added.

For Friday, the trader said the peso could rebound against the greenback amid a potentially weaker US producer inflation report.

The trader sees the peso moving between P56 and P56.25 per dollar on Friday, while Mr. Ricafort expects it to range from P56.10 to P56.30. — AMCS with Reuters

TeaM Energy, Mariwasa expand solar partnership in Batangas

TEAM Philippines Energy Corp. (TPEC), the retail electricity arm of TeaM Energy Corp., has energized a 1.3-megawatt (MW) solar photovoltaic rooftop system for a tile manufacturing plant in Sto. Tomas, Batangas.

The new solar rooftop system has increased the company’s total supplied renewable energy to Mariwasa Siam Ceramics, Inc. (MSCI) to 4.4 MW, the company said in a statement on Thursday.

“We began supplying an additional 1.3 MW of electricity to Mariwasa Siam Ceramics, Inc. last July. This is on top of the 3.1 MW that we have already been generating for them since last year,” TPEC President Tristan Taghoy said.

The company said the completion of the new rooftop solar system involved installing 2,340 units of 550-watt-peak solar panels.

This is on top of the existing 5,702 units for the 3.1 MW representing the project’s first phase that TPEC installed in May 2023.

“Our partnership with MSCI will enable us to supply their plant in Batangas with clean, reliable, and cost-effective energy. We are fully committed to providing energy solutions that support the growth and development of Philippine industries,” Mr. Taghoy said.

“This partnership with an industry leader and manufacturer of world-class products is something we are very excited about,” he added.

TPEC said that Phase 2 of the solar rooftop project was done under a 25-year solar supply agreement between TPEC and MSCI.

The power supplier will be responsible for system operation and maintenance throughout the cooperation period.

TeaM Energy is one of the largest independent producers in the Philippines. It has a total installed generating capacity of over 2,000 MW from its power facilities.

It operates two coal-fired power facilities, namely the 735-MW Pagbilao Power Station in Quezon and the 1,200-MW Sual Power Station in Pangasinan. It also has a 50% stake in the 420-MW Pagbilao Unit 3 Power Project in Quezon. — Sheldeen Joy Talavera

TIFF 2024: Bruce Springsteen takes fans backstage, talks mortality in new film

IMDB
IMDB

TORONTO — Road Diary: Bruce Springsteen and The E Street Band, which made its premiere in Toronto this week, gives fans a glimpse at the band’s creative process against the backdrop of the current world tour, which had to be interrupted because of the nearly 75-year-old rock star’s health.

The documentary, directed by Thom Zimny and narrated by “The Boss” himself, captures conversations and the band’s bond that resonates in their music, while Springsteen touches upon age, the present, and mortality. In the film, Springsteen’s wife and E Street bandmate, Patti Scialfa, reveals that she was diagnosed with multiple myeloma, a form of blood cancer.

“There’s a philosophical thing about a person who’s going to be 75 in two weeks — mortality. The film captures that… It’s not a genre film. It’s a Bruce film,” longtime manager Jon Landau said.

“Every night is real. He gets out there and he tries to put his mind, body and soul right in the moment… And he feels like if he’s experiencing it, then the audience will experience it,” Landau added.

The film begins with rare images of the band members barely out of boyhood, then contrasts that immediately with a present day challenge, their first tour in six years as they entertain thousands of fans across continents.

The ongoing tour across North America and Europe is scheduled to go on until July 2025 after dates were postponed as Springsteen dealt with a peptic ulcer that took him off the road for a while.

The New Jersey-born rocker, who turns 75 on Sept. 23, released his first studio album — Greetings From Asbury Park — in 1973 and since has sold more than 140 million records worldwide, and collected 20 Grammy Awards, two Golden Globes, a Best Original Song Oscar, as well as a special Tony for the Broadway show about his life and career.

Road Diary is the latest in a longtime collaboration as Zimny has directed about a dozen films with Springsteen in 24 years, in addition to some 40 music videos.

“They’re a garage band, but at the same time they’re getting ready to conquer the world with this new tour… it’s very exciting to be a fly on the wall with it all,” said Zimny, who won an Emmy for Outstanding Directing for a Variety Special for Springsteen on Broadway streamed by Netflix.

The new documentary is distributed by Disney. — Reuters

The race for dependability: Missed opportunities in the Philippines’ oil and gas industry

WIKIPEDIA.ORG

AS GLOBAL ATTENTION shifts towards renewable energy and achieving net-zero emissions, the oil and gas industry’s potential to improve operational efficiency in meeting demand often gets sidelined. In the Philippines, where the goal is to achieve net-zero emissions by 2050, oil and gas will remain essential to the energy mix for the foreseeable future.

Pressure is already high; for electricity, the Philippines relies heavily on coal and natural gas acquired from the Malampaya gas field, which is expected to run dry in 2027. Yet, in the short-term, renewable energy is unlikely to bridge the intermittency gap. Balancing energy supply with emission reduction is a significant challenge, but with the added pressure of exponentially increasing electricity demand, enhancing the efficiency and dependability of existing infrastructure is equally critical.

NEW AVENUE FOR REGIONAL LEADERSHIP
The Philippines continues to play a strategic role in the regional oil and gas industry, particularly in downstream activities such as refinery and distribution. The country’s focus on modernizing its refineries includes significant upgrades to the Bataan refinery, the country’s largest.

However, the nation struggles with aging infrastructure and maintenance issues, particularly in the downstream sector. Challenges in modernizing and maintaining its refineries and petrochemical plants to increase reliability and efficiency are significant. To deal with the need for constantly increasing demand, further efficiencies need to be unlocked — particularly in dealing with extending the service life of aging equipment amid supply chain delays, the lack of original equipment manufacturer (OEM) repair services, and long lead times for spare parts.

MAXIMIZING EFFICIENCY AND EXTENDING RELIABILITY OF EXISTING EQUIPMENT
In offshore and onshore operations, instead of only focusing on capacity, operators should prioritize enhancing productivity and maximizing profits through better management of current rotating equipment such as pumps, turbomachinery, and electric-driven drives such as generators. This involves addressing short mean time between failures (MTBF) to minimize downtime and achieve substantial cost and energy savings. There are several strategies that can be adopted to capture opportunities here with the support of an experienced OEM-agnostic independent service provider.

In a recent Sulzer case in Southeast Asia, a flare knockout pump on an offshore platform was experiencing reduced reliability due to abrasive sand causing excessive wear, reducing the MTBF to 12-18 months. This posed a significant risk of costly shutdowns if both pumps failed. A turnkey retrofit solution, with a tight deadline of 26 weeks, involved applying tungsten carbide coating to the impellers, upgrading bushings to ceramic, and refurbishing the motors. The retrofit not only matched the original pump footprint but also extended the MTBF, improved reliability, and reduced costs.

In another instance, a deteriorating 10-year-old 10.7-megawatt (MW) motor on a vessel, requiring urgent attention, was transported to a service center where it was refurbished with new stator coils, effectively extending its life by at least another decade. This work required precision and specialized expertise, demonstrating the importance of timely and expert intervention in extending equipment service life.

UNLOCKING OPPORTUNITIES VIA RE-RATES, RETROFITS, AND REVERSE ENGINEERING
The transition to renewable energy sources often leads to underestimating the value of optimizing existing oil and gas infrastructure as a means to reduce the carbon footprint. Investing in equipment retrofits, re-rates, and reverse engineering can yield benefits that last for years, in terms of ensuring equipment longevity, and extending their operational lifecycle despite the relatively short turnaround. Meanwhile, this sets the stage for more extensive overhauls during planned downtime.

In the Philippines, scattered island groups make equipment longevity and reliability even more crucial. Expert field services and specialized tools and equipment to deal with maintenance of ageing assets could make the difference in enhancing performance, minimizing downtime and excessive loss of capital. In cases where offshore platforms face issues with water injection pumps experiencing rapid wear, vibration, and downtime, effective fixes implemented with a hybrid cartridge to improve performance and energy efficiency through a hydraulic re-rate could lead to significant energy savings and CO2 reductions. In a Sulzer retrofit case study, this led to one pump saving 2 MW of power, cutting 5,536 tons of CO2 annually, while the other saved 1 MW, reducing CO2 emissions by 2,768 tons per year. In another example, a refinery needing repairs on a 22-year-old naphtha compressor that had been condemned by the OEM and stored without preservation saw a quick turnaround with reverse engineering. Rather than waiting 18 months for new parts, applying reverse-engineering to components, anti-fouling coating, and performing precise repairs, saw 50% of cost savings, compared to the cost of purchasing a new compressor. The refurbished compressor is now expected to last another 20-25 years, illustrating the value of reverse engineering in extending equipment life under tight deadlines.

OPPORTUNITIES IN MATURE OIL AND GAS ASSETS
To maximize oil recovery in mature sites, sustainable practices can also maximize output significantly. Enhanced Oil Recovery (EOR), where CO2 is injected into oil reservoirs to increase crude oil extraction from mature fields, can be applied where traditional methods are no longer economically viable. This involves high-pressure pumps and compressors to transport and inject CO2 into reservoirs that are designed to handle the corrosive nature of the process, particularly when combined with water and the high pressure required for injection.

For assets like the Malampaya Gas Field, injecting CO2 into mature gas reservoirs to maintain pressure and boost gas production can support enhanced gas recovery. Additionally, depleted gas fields are often utilized for CO2 sequestration, sometimes aiding in the recovery of residual hydrocarbons. Working with experts that can not only provide high-pressure compressors for CO2 injection and advanced gas processing technologies for CO2 removal, but can also offer gas processing technologies to ensure quality and marketability are vital.

Retrofitting pumps can also enhance the sustainability of EOR processes. Retrofits can be engineered to upgrade materials to resist water corrosion and erosion caused by sand content. Adjusting the capacity requirements for water injection as platforms age can also be achieved through specially engineered hydraulic re-rates.

EMBRACING EFFICIENCY FOR OIL AND GAS TO SUPPORT DEPENDABILITY
It’s important to recognize and act upon opportunities to improve the reliability and efficiency of existing rotating equipment within the oil and gas industry to increase dependability to meet demand. With sustainable methods of recovery from mature fields and retrofitting to support production changes due to market requirements such as new petrochemical products — it’s time to shift attention to these overlooked opportunities and leverage them to support the broader energy transition. In doing so, working with an OEM-agnostic independent service provider with deep application and industry expertise and timely project completion is essential.

 

Wong Chin Hean is the head of Services for Southeast Asia of Sulzer, a global leader in fluid engineering and chemical processing applications. The company specializes in energy-efficient pumping, agitation, mixing, separation, purification, crystallization and polymerization technologies for fluids of all types.

DoLE grants don’t provide pathway to sustainable work — UP academic

THE Department of Labor and Employment’s (DoLE) various livelihood grants exacerbate underemployment instead of providing a path to sustainable, quality jobs, a University of the Philippines academic said.

University of the Philippines Diliman School of Labor and Industrial Relations (UP SOLAIR) Assistant Professor Benjamin B. Velasco said the program, known as TUPAD, is “broken” and “dysfunctional.”

The Tulong Panghanapbuhay sa Ating Disadvantaged Workers (TUPAD) also “enables patronage politics and exacerbates underemployment instead of providing sustainable work for informal workers and the long-term unemployed,” he told BusinessWorld via Messenger chat.

He urged government entities to delink public employment from patronage politics.

He cited the need “to establish a central registry of people outside the labor force, unemployed and underemployed. Cross-reference with the Social Security System registry of laid-off workers. Beneficiaries should be picked from a central registry and kept out of the hands of politicians.”

TUPAD, a cash-for-work program that has disbursed over P5.65 billion in wages, aided over one million workers from April to June 2024, DoLE said in a statement Thursday.

The temporary jobs offered under the TUPAD program include maintenance and roadside cleaning of public facilities and infrastructure, community vegetable gardening under Project LAWA at BINHI, setting up and maintening KADIWA sites, beautification of public roads, dredging of canals, tree planting, and coastal clean-up.

TUPAD is  compenent of the DoLE Integrated Livelihood and Emergency Employment Program (DILEEP), which provides livelihood assistance and emergency employment. DILEEP beneficiaries have received over P6.36 billion in grants.

Beneficiaries in the Bicol Region topped 141,000, followed by CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon) with over 83,000, and Central Luzon with over 83,000.

“If about P6 billion was spent for one million TUPAD beneficiaries, it means just P6,000 was given per beneficiary. This implies short-term work of 10 days to sweep the streets,” Mr. Velasco added.

“Public employment must be for a minimum of 100 days in a year. Don’t create more underemployed. Provide gainful and decent employment. Prioritize climate jobs, not roadside sweeping,” he said.

The DoLE Integrated Livelihood Program or the Kabuhayan Program component under DILEEP provides grant assistance for the startup, enhancement, or restoration of lost livelihood for disadvantaged people or groups in the informal sector. — Chloe Mari A. Hufana