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North Korea fires short-range missiles in first launch in two months

SEOUL – North Korea fired multiple short-range ballistic missiles off its east coast on Thursday, South Korea’s military said, the first such launch in more than two months.

The missiles lifted off from Pyongyang at around 7:10 a.m. (2210 GMT Wednesday) and travelled about 360 km (223.7 miles) before plunging into the sea, the Joint Chiefs of Staff said, without specifying how many were fired.

“We strongly condemn North Korea’s missile launch which is a clear provocation that seriously threatens peace and stability on the Korean peninsula,” it said in a statement.

Japan’s defense ministry said at least two ballistic missiles from North Korea flew more than 350 km, to an altitude of about 100 km.

Japanese Prime Minister Fumio Kishida, who last week visited Seoul to reconfirm ties with South Korea ahead of his upcoming resignation, said Tokyo strongly condemned the launch and lodged a protest against North Korea.

“We continue to make utmost efforts for monitoring and cooperate with the U.S. and South Korea,” Mr. Kishida said.

Nuclear envoys of South Korea, Japan and the United States talked by phone and called the launch a violation of U.N. resolutions, Seoul’s foreign ministry said in a statement. They also pledged to respond to any North Korean provocations.

North Korea last fired a missile on July 1, when it claimed to have successfully tested a new tactical ballistic missile capable of carrying a 4.5-ton super-large warhead.

The latest launch came days after North Korean leader Kim Jong Un pledged to produce “exponentially” more nuclear weapons and ensure they were ready for use “at any given time.”

Mr. Kim late last month oversaw a test of an upgraded 240 mm rocket launcher system which “proved its superiority in mobility and strike concentration”. He also inspected new “suicide drones” and called for the development of artificial intelligence for unmanned vehicles.

North Korea has also been sending balloons carrying trash across the border into the south over the last few days, a campaign kicked off in May in retaliation for anti-Pyongyang leaflets flown into the country using inflatables by South Korean activists.

Seoul’s Joint Chiefs of Staff said the North floated about 20 balloons late on Wednesday but none of them had been detected in the South so far.

Thursday’s launch might be aimed at responding to recent South Korea-US military drills or testing the missiles for export to Russia, a military spokesperson told a briefing.

North Korea faces accusations of supplying Russia with weapons including drones and ballistic missiles to be used in the war in Ukraine.

Ukraine and the United States, among other countries and independent analysts, say that Kim is helping Russia in the war by supplying rockets and missiles in return for economic and other military assistance from Moscow.

Moscow and Pyongyang have denied the accusations, but pledged to boost military cooperation and signed a comprehensive strategic partnership at a summit in June. – Reuters

Malaysian police rescue 400 minors from suspected sexual abuse at Islamic charity homes

STOCK IMAGE | Image by Gerd Altmann from Pixabay

KUALA LUMPUR – Malaysian authorities rescued more than 400 children on Wednesday suspected of being sexually abused at charity homes run by a prominent Islamic business organization with links to a banned religious sect, the top police official said.

Police arrested 171 adults, including ‘ustazs’ or Islamic religious teachers, during coordinated raids on 20 premises across two Malaysian states, Inspector-General of Police Razarudin Husain said.

Those rescued included 201 boys and 201 girls, aged between one and 17, after reports were filed this month that alleged neglect, abuse, sexual harassment and molestation, Mr. Razarudin told a press conference. He did not say who wrote the reports.

The homes were all run by Global Ikhwan Services and Business (GISB), Mr. Razarudin said.

In a statement late Wednesday, GISB denied the sexual abuse allegations and said it did not manage the charity homes. “It is not in our policy to plan and carry out actions that are against Islamic and national laws,” the company said, adding that it would file a police report and demand an investigation.

GISB, involved in businesses ranging from supermarkets to laundromats, operates in multiple countries, including Indonesia, Singapore, Egypt, Saudi Arabia, France, Australia and Thailand, according to its website.

Mr. Razarudin said preliminary police investigations had found that the rescued minors were children of Malaysian GISB employees, who were sent to the homes shortly after they were born, before being subjected to multiple forms of abuse.

The victims were allegedly sodomized by adult guardians and later taught to sodomize other children at the homes, he said.

GISB has been linked to the now-defunct Malaysia-based Al-Arqam religious sect, which was banned by the government in 1994. GISB has acknowledged the link but now describes itself as an Islamic conglomerate based on Muslim practices.

The firm previously made headlines for establishing the controversial Obedient Wives’ Club, a group that had called on women to submit to their husbands “like prostitutes”.

The children will be sent for health screening and documentation, Mr. Razarudin said, adding that the case was being investigated under laws covering sexual offences against children and human trafficking.

“The children and religious sentiments were also used to gain public sympathy and raise funds for the organization,” he said. “What we have seen is the indoctrination of children using religious tools in a harmful way.” – Reuters

Australia threatens fines for social media giants enabling misinformation

STOCK PHOTO

SYDNEY – Australia said it will fine internet platforms up to 5% of their global revenue for failing to prevent the spread of misinformation online, joining a worldwide push to rein in borderless tech giants but angering free speech advocates.

The government said it would make tech platforms set codes of conduct governing how they stop dangerous falsehoods spreading, to be approved by a regulator. The regulator would set its own standard if a platform failed to do so, then fine companies for non-compliance.

The legislation, to be introduced in parliament on Thursday, targets false content that hurts election integrity or public health, calls for denouncing a group or injuring a person, or risks disrupting key infrastructure or emergency services.

The bill is part of a wide-ranging regulatory crackdown by Australia, where leaders have complained that foreign-domiciled tech platforms are overriding the country’s sovereignty, and comes ahead of a federal election due within a year.

Already Facebook owner Meta has said it may block professional news content if it is forced to pay royalties, while X, formerly Twitter, has removed most content moderation since being bought by billionaire Elon Musk in 2022.

“Misinformation and disinformation pose a serious threat to the safety and wellbeing of Australians, as well as to our democracy, society and economy,” said Communications Minister Michelle Rowland in a statement.

“Doing nothing and allowing this problem to fester is not an option.”

An initial version of the bill was criticized in 2023 for giving the Australian Communications and Media Authority too much power to determine what constituted misinformation and disinformation, the term for intentionally spreading lies.

Ms. Rowland said the new bill specified the media regulator would not have power to force the takedown of individual pieces of content or user accounts. The new version of the bill protected professional news, artistic and religious content, while it did not protect government-authorized content.

Some four-fifths of Australians wanted the spread of misinformation addressed, the minister said, citing the Australian Media Literary Alliance.

Meta, which counts nearly nine in 10 Australians as Facebook users, declined to comment. Industry body DIGI, of which Meta is a member, said the new regime reinforced an anti-misinformation code it produced in 2022, but many questions remained.

X was not immediately available for comment.

Opposition home affairs spokesman James Paterson said that while he had yet to examine the revised bill, “Australians’ legitimately-held political beliefs should not be censored by either the government, or by foreign social media platforms”. – Reuters

Parts of Hanoi remain flooded as landslides hit northern Vietnam

STOCK PHOTO | Image by Hermann Traub from Pixabay

HANOI – Several Hanoi districts remained inundated on Thursday with the weather agency forecasting little change in the water levels of the Red River over the next 24 hours, as floods and landslides continued to affect areas in northern Vietnam.

Vietnam is still reeling from the impact of Typhoon Yagi, the strongest storm to hit Asia this year, which made landfall on Saturday. At least 197 people have been killed and 128 missing since the storm struck, according to the government’s disaster management agency. Some 800 people have been injured.

“High flooding water levels have flooded riverside and low-lying areas, eroded dykes and threatened parts of Hanoi and other northern provinces,” the agency said in a report.

The city had earlier evacuated thousands of people living near the swollen river as its waters rose to a 20-year high.

North of Hanoi, deadly landslides and severe floods are still affecting several areas, according to state media reports.

“I never thought my house would be under water this deep,” said Hoang Van Ty outside his home in Thai Nguyen province.

“My clothes and furniture are all under the water. Many things were floating around too but luckily I closed the doors so nothing was washed away.”

Thai Nguyen province is home to Samsung Electronics’ largest smartphone manufacturing plant in Vietnam. Flood waters have receded in some parts of the province, where clean up efforts are now taking place.

The landslides and floods have inundated more than 200,000 hectares of rice and cash crop fields, according to the disaster management agency.

The typhoon has also disrupted power supplies and blown off roofs of several factories in Haiphong and Quang Ninh provinces, halting their production.

Several countries, including Australia, Japan and the United States, have announced that they were sending aid to Vietnam. – Reuters

Philippines stands firm on Sabina Shoal but looks to ease tension with China

PHILEMBASSY.NO

MANILA/BEIJING – The Philippines will stick to its position on Sabina Shoal, it said on Thursday, even while exploring ways to ease tension in the area during “frank and candid” talks with China on managing disputes in the key waterway of the South China Sea.

The Southeast Asian nation’s sustained presence at the feature, aiming to monitor what it suspects to be China’s small-scale reclamation activities has angered Beijing, turning the shoal into their latest flashpoint in the contested waters.

During Wednesday’s meeting of officials in Beijing, China vowed to “firmly uphold its sovereignty” and reiterated a demand for the immediate withdrawal of a Philippine coast guard ship anchored at the shoal since April.

“I reaffirmed the Philippines’ consistent position and explored ways to lower the tension,” Philippine Foreign Affairs Undersecretary Theresa Lazaro said on X, posting a picture of her handshake with Chinese Vice Foreign Minister Chen Xiaodong.

“We agreed to continue discussions on areas of co-operation, especially on hotline mechanism, coastguard cooperation, and marine scientific and technological co-operation.”

The two had a frank and candid exchange of views, the Philipine foreign ministry said in its statement.

The Sabina Shoal, which China refers to as Xianbin Reef, and Manila as Escoda Shoal, lies 150 km (93 miles) west of the Philippine province of Palawan, well within its exclusive economic zone.

The two nations have traded accusations of intentional ramming of each others’ vessels in a series of clashes last month, just after reaching a pact on resupply missions to a beached Filipino naval ship in the Second Thomas Shoal.

China claims sovereignty over most of the China Sea, overlapping into maritime zones of Brunei, Indonesia, Malaysia, the Philippines and Vietnam.

In 2016 the Hague arbitration tribunal voided China’s expansive and historical claims, a decision Beijing rejects.

The Philippine navy has said it has recently monitored 207 Chinese vessels, including ‘maritime militia boats’ within the country’s EEZ, with dozens observed near Sabina Shoal. – Reuters

Climate change impacts women disproportionately – Farhan

Screenshot from the Ramon Magsaysay Awards' Facebook Live

Women are disproportionately suffering from the effects of climate change as child marriages among young girls increase among vulnerable countries, according to an Indonesian environmental activist and 2024 Ramon Magsaysay Awardee. 

“There is an increase of child marriage in places like Bangladesh… It was largely because changing climate led to crop failures, (and could) lead to more disasters,” Farwiza Farhan, an Indonesian environmental activist said during the Ramon Magsaysay Awards video conference interview.  

Ms. Farhan highlighted that the impacts of climate change are pushing more families into poverty, forcing more young girls into marriage.  

“When the family is poor and they have many children, and they have to decide on the future of their children… they consider marrying off the girls… to someone who hopefully would be able to take care of them,” she said.  

These young girls are often married off to older men, some of whom are already married, and sometimes the marriages are non-consensual, Ms. Farhan said.  

“Often, we don’t necessarily link environmental destruction and climate change to how women and girls have lost opportunities in life,” she said.  

In the aftermath of major disasters in Bangladesh, one of the most vulnerable countries to climate change, reports reveal a 38.5% rise in child marriages, according to a 2023 study by the International Rescue Committee.  

Based on the study’s findings, economic constraints, societal perceptions, food price hikes, and financial crises are among the driving factors of child marriage in Bangladesh.  

On a global scale, the number of girls at extreme risk of both child marriage and climate change is expected to balloon by 33% to nearly 40 million by 2050, according to a 2023 statement from Save the Children.  

Two-thirds of these numbers happen in regions with higher-than-average climate risks, Save the Children said.  

To reduce the impact of climate change and promote environmental conservation, Ms. Farhan believes that it requires collective action.  

This begins with fostering a positive sphere of influence, especially among children, through practices such as waster separation, Ms. Farhan said. 

“Even the smallest things… it plants the seed of belief that each of us has the power to make a difference and I think that is more important than anything else,” she said.  – Edg Adrian A. Eva

Global Blockchain Congress: The Philippines’ gateway to blockchain excellence

Bataan province hosts 2-day premier event on Sept. 24-25

The Department of Information and Communications Technology (DICT) has announced plans for the Global Blockchain Congress: The Philippines’ Gateway to Blockchain Excellence, to be held in Bataan People’s Center, Balanga City, Bataan on Sept. 24-25. Set to redefine the future of blockchain innovation, the prestigious event is presented by the DICT, in collaboration with the Blockchain Council of the Philippines (BCP), the Provincial Government of Bataan, and organized by Philippine Blockchain Week (PBW) as part of their PBWx roadshow series.

The conference will convene local and international blockchain experts, industry leaders, government representatives, and other key stakeholders to foster collaboration and showcase the Philippines’ burgeoning potential as an emerging hub for blockchain technology. Over two days, attendees will delve into insightful discussions on the Philippine blockchain industry, its applications, challenges, and strategies for sustainable growth.

Why Bataan?

Bataan Capitol Center

Bataan, an economic zone in the Philippines, embodies the forefront of digital transformation. Due to recent legislation, Bataan has become a magnet for emerging digital economies, positioning itself as the nation’s hub for digital currency and blockchain technology. The new Act enables local regulators to actively oversee and support the burgeoning industry, making Bataan the perfect location for this ground-breaking event.

DICT Undersecretary for ICT Industry Development Jocelle Batapa-Sigue emphasizes the importance of the event in establishing a platform for industry experts, local leaders, and policy makers to collaborate on informed policy recommendations that will drive the adoption of blockchain technology in the Philippines. The goal is to position the country as a leader in the global blockchain space.

“This initiative goes beyond merely embracing blockchain technology. It is about crafting a policy framework that balances innovation with security, empowering individuals and industries alike, and driving sustainable economic growth for the nation,” she stated.

Reflecting the collaborative spirit and its broader implications, BCP President Donald Lim also commented: “This event is crucial in demonstrating the significant strides the Philippines is making in blockchain technology. It’s an honor to bring together such a diverse group of experts to discuss and develop the future of our industry.”

Governor Joet Garcia of Bataan also shared his insights: “Hosting the Global Blockchain Congress in Bataan highlights our commitment to becoming a leader in digital transformation. Our recent legislative efforts are just the beginning, and we look forward to welcoming innovators and stakeholders from around the world to our province.”

This exclusive event is by invitation only, with limited slots open to the public. Those interested to attend may register through this link: https://lu.ma/jy1jeu0t. You may also email info@pbw.ph for more information.

 

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.

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NEDA sees faster growth in 2nd half

People shop for school uniforms at a market in Marikina, July 17, 2024. — PHILIPPINE STAR/WALTER BOLLOZOS

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE gross domestic product (GDP) growth in the second semester could be faster than the 6% average in the first half amid easing inflation and lower policy rates, the National Economic and Development Authority (NEDA) said.

“Now, with inflation lower, with policy rates lower, with the labor market continuing to be robust, I think we would see an even better second half than in the first half,” NEDA Secretary Arsenio M. Balisacan told BusinessWorld on the sidelines of a Senate hearing on Wednesday. 

In the second quarter, GDP expanded by 6.3%, bringing the first-half growth to 6%.

“We are expecting 6-7% (GDP growth) for the full year, and I think that the likelihood that we’ll achieve that is now very high,” Mr. Balisacan said.

However, even as inflation eased to a seven-month low of 3.3% in August, Mr. Balisacan noted that the economy remains sensitive to inflationary pressures.

Year to date, inflation averaged 3.6%, settling within the 2-4% target range of the Bangko Sentral ng Pilipinas (BSP).

The inflation downtrend has allowed the BSP to begin its easing cycle with its first rate cut in nearly four years last August. The Monetary Board lowered the policy rate by 25 basis points (bps) to 6.25% from the over 17-year high of 6.25% previously.

Mr. Balisacan noted the impact of lower policy rates “is not almost instantaneous.”

Despite this, the Philippine and US central banks’ expected easing path should help boost investment activity and support growth, he said.

“Especially now that the expectations everywhere with the Fed expected to decrease (interest rates)… then, there is now greater stimulus for us to continue lowering the policy rates,” he said.

“With the business community hearing that, they are likely to rethink their investment plans.”

BSP Governor Eli M. Remolona, Jr. earlier signaled another 25-bp cut in the fourth quarter. The last two Monetary Board meetings for the year are scheduled on Oct. 17 and Dec. 19.

Meanwhile, GDP growth is expected to settle within the government’s target range this year, but may fall short of the growth goals in the next two years, according to the latest forecasts from the BSP’s Policy Analysis Model for the Philippines.

“The overall balance of demand and supply conditions, as captured by the output gap or the difference between actual and potential output, indicates limited demand-based inflation pressures over the policy horizon,” the central bank said in its August 2024 Monetary Policy Report.

The BSP said growth prospects are “relatively stable for the rest of the year, driven by robust construction spending and the timely implementation and expanded coverage of various government programs.”

The central bank said economy could miss the 6.5-7.5% and 6.5-8% targets for 2025 and 2026, respectively.

The BSP said that higher consumption, driven by remittances and wage hikes, could offset the impact of cumulative rate hikes.

“This will bring domestic output closer to its potential over the policy horizon,” it said.

The BSP also said that improvements in labor market conditions and continued investment growth could help drive growth.

“Productivity growth is also expected to improve further due to robust economic activity and stable infrastructure spending,” the BSP added. “Moreover, key reforms could shore up investments and business activity, and help accelerate the country’s potential output.” — with Aaron Michael C. Sy

Meralco rates climb in Sept.

A Meralco worker examines a transformer in Navotas City. — PHILIPPINE STAR/RYAN BALDEMOR

RESIDENTIAL CUSTOMERS in areas served by Manila Electric Co. (Meralco) will see higher electricity bills this month due to the increase in transmission charges.

In a statement on Wednesday, Meralco said that the overall rate will climb by P0.1543 per kilowatt-hour (kWh) to P11.7882 per kWh in September from P11.6339 per kWh last month.

Households consuming 200 kWh will see their monthly bills go up by around P31. Those consuming 300 kWh, 400 kWh, and 500 kWh will have to pay an additional P46, P62, and P77, respectively.

“Driving this month’s overall rate adjustment is the P0.2913 per kWh increase in the transmission charge for residential customers due to higher ancillary service charges following the resumption of commercial operations of the reserve market on Aug. 5, 2024,” the power distributor said.

Meralco said the total ancillary service charges from the reserve market were double the charges from the National Grid Corp. of the Philippines’ (NGCP) ancillary service procurement deals. The share of ancillary service charges to the NGCP’s transmission rate jumped to over 50%.

“If not for the increase in transmission charge, we could have had a reduction this month,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in Filipino during a briefing.

Meralco said that higher transmission charge had more than offset the lower generation charge, which fell by P0.1547 per kWh.

The company attributed the decline in generation charge to the peso’s recent strength. The local unit closed at P56.11 per dollar on Aug. 30, which Meralco claimed was the “strongest level” since December 2023.

Meralco said the peso appreciation affected 50% of the costs of power supply agreements (PSAs) and 97% of costs of independent power producers (IPPs) that were dollar denominated.

This led to the P0.2371 per kWh and P0.0529 per kWh reductions in PSA and IPP charges, respectively.

Charges from the Wholesale Electricity Spot Market (WESM) likewise went down by P0.0514 per kWh.

“This already factored in the final of four installments of deferred May 2024 WESM costs earlier ordered by the Energy Regulatory Commission (ERC),” the company said.

PSAs, WESM, and IPPs accounted for 46.2%, 27.3%, and 26.4% of the company’s total energy requirement for the period.

Taxes and other charges went up by P0.0177 per kWh.

“Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government,” Meralco said.

The distribution charge has remained unchanged at P0.0360 per kWh since August 2022. 

POSSIBLE RATE ADJUSTMENTS
Meralco said that the customers may seek relief from the generation charge in October as the collection of the deferred WESM amounts will end this month.

In June, the ERC directed to stagger the collection of charges related to WESM purchases over a four-month period to soften the impact of the high generation rates.

The power distributor said, however, that the Malampaya pricing under the new gas sale and purchase agreements (GSPA) of First Gas plants will be implemented starting the September supply month, which will be reflected in the October billing, under the directive of the ERC.

Lawrence S. Fernandez, Meralco’s vice-president and head of utility economics, said that implementation of the new GSPA will likely result in a 40-centavo-per-kilowatt increase in the power cost.

The company added that the cost differential between the old and new GSPAs up to the August supply month will be recovered over 12 months beginning in next month’s billing.

Meralco also anticipates the possible impact of the remaining 70% of the amount due on reserve market transactions for the March billing month.

Mr. Fernandez noted, however, that they have yet to know when the NGCP will start billing the remaining reserve market transaction. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Nearly 27,000 to be affected by POGO ban, says DoLE

PHILIPPINE STAR/RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

THE Department of Labor and Employment (DoLE) said on Wednesday it is preparing to help around 27,000 workers bound to lose their jobs once the total ban on Philippine Offshore Gaming Operators (POGOs) takes effect by end-December.

In a virtual briefing Labor chief Bienvenido E. Laguesma said the 26,996 workers are employed by 54 Internet Gaming Licenses (IGLs) companies and attached service providers, mostly in the National Capital Region (NCR) and Region 4-A.

“The total number of Filipino workers, including Region 4-A, is almost 27,000. To be exact, 26,996. In addition, there were also indirect Filipino workers totaling 2,549,” Mr. Laguesma said in Filipino.

Broken down, the DoLE had profiled 33 IGLs, 11 accredited providers, and 10 under the special class of business process outsourcing (BPO) firms.

Direct workers are employees hired directly by the IGLs, accredited providers, and special class of BPOs. Indirect workers include security staff, janitorial services, drivers, cooks, and household service workers.

“We hope that we’ll be able to provide the necessary services there to the best of their ability, maybe including their preferences where they will move to work or build their own livelihood program,” Mr. Laguesma said.

DoLE will organize a job fair specifically for affected IGL workers in the first week of October.

Mr. Laguesma said the agency is fast-tracking its profiling efforts to have a clearer picture of how many workers would be affected by the total ban ordered by President Ferdinand R. Marcos, Jr. last July.

“DoLE NCR is almost done with profiling. There are a few companies that did not submit the list, so DoLE went to them themselves and explained to them the reason why we are requesting the list of employees so that appropriate interventions could be provided come the closure of IGLs in our country,” he said in Filipino.

Mr. Laguesma said the DoLE is considering referring displaced POGO workers to existing vacancies and providing livelihood programs.

“We would also like to complement it with possible upskilling [and] retooling of affected IGL workers,” he added.

Meanwhile, the Philippine Amusement and Gaming Corp. (PAGCOR), the issuer of licenses to IGLs, said as many as 42,000 Filipino workers would be affected by the total ban.

Catalino B. Alano, Jr., PAGCOR’s external communications and corporate communications assistant vice-president, said the number is composed of IGL workers, service providers, and special BPOs.

He told BusinessWorld that as of July 1, there are only 41 legal IGLs in the country, coming from NCR, Laguna, and Cavite. Special BPOs are now at 14 and accredited providers at 20.

Leonardo A. Lanzona, Jr., a professor of economics at the Ateneo de Manila University, said the looming job losses from POGOs could worsen unemployment in the country.

“This will certainly affect the unemployment problem. This will exacerbate the existing quality of jobs problem as most of those displaced will be absorbed by the informal sector,” he told BusinessWorld in a Facebook Messenger chat.

The country’s unemployment rate rose to a one-year high of 4.7% in July as fresh graduates entered the workforce, the Philippine Statistics Authority (PSA) said.

This translated to 2.38 million unemployed Filipinos in July, up by 755,000 from 1.62 million in June. Year on year, this went up by 86,000 from 2.29 million in July 2023.

Federation of Free Workers President Jose Sonny G. Matula said the number of affected Filipinos is a “significant concern that could aggravate joblessness and poverty, especially for workers who may struggle to transition to other industries.”

“This large number of displaced workers requires immediate action from government agencies such as DoLE and Social Security System. Technical Education and Skills Development Authority  should be tapped to offer reskilling and retooling programs, equipping these workers with the skills needed to find employment in other sectors,” he said in a Viber message.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said it is important for workers to have safety nets.

“We need to make sure we can provide alternative livelihood or work that match[es] or even surpass what workers got when in their old jobs… Job fairs, job facilitation, and job reskilling are also important tools/interventions,” he told BusinessWorld in a Facebook Messenger chat, but noted the government’s murky track record with such actions.

Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said the government has to provide retraining for affected POGO workers.

“Overall, the Philippine jobs are low-productivity, low-wage jobs, including POGO jobs,” he said.

Bukluran ng Manggagawang Pilipino President Renecio “Luke” S. Espiritu, Jr. urged the government to take accountability for the social costs wrought by the entry of POGOs.

“The Marcos government should ensure a just transition toward decent, regular jobs for the workers victimized and exploited by POGOs,” he told BusinessWorld in a Facebook Messenger chat. “It is incumbent upon the Marcos government, through DoLE, to assist these workers to transition from working as gambling workers and be provided with dignified, regular jobs or alternative livelihoods.”

CEOs should take lead in AI adoption — expert

A survey conducted by PwC Philippines in partnership with MAP showed that 40% of the CEOs in the country said that they have already adopted generative artificial intelligence (GenAI). — REUTERS/DADO RUVIC/ILLUSTRATION

CHIEF EXECUTIVE OFFICERS (CEOs) should take the lead in the adoption of artificial intelligence (AI) in organizations, according to a PwC executive.

Scott Likens, global AI and innovation technology leader at PwC United States, said CEOs should show how AI is making operations better and “not taking their jobs.”

“CEOs are still pretty positive that they have to bring the whole workforce along… No matter what function in your business, AI could be an accelerator to what you do,” he said at the Management Association of the Philippines’ (MAP) 22nd International CEO Conference on Sept. 10.

However, the increasing use of AI has workers on the edge due to fears of job displacement, he said.

“But the more (workers) use it, and I can tell you this, we rolled this out to almost 200,000 of our employees around the world, the more people use it, the more they see this helps them every day,” Mr. Likens said.

Mr. Likens said developments in AI are not going to slow down in the future, and that CEOs should take the lead in the use of AI.

“If you’re waiting to see what happens, good luck with that strategy. If you’re not shaping your workforce, AI is now available to everyone. Don’t wait. Bring them along. Give them those superpowers. Show them that this is accretive to everything they do. And I think you’ll be shocked at what you see,” he said.

But before starting their AI journey, Mr. Likens said firms should come up with a responsible AI strategy first.

“The first step is responsible AI. Putting a strategy around how we’re going to do it responsibly and what parts of the business will have the most impact is the first step. Before you get any technology, you have to understand where it can accelerate or provide a solution,” he said.

Mr. Likens said AI is not “magic” and does not solve all problems.

To ensure that AI is used responsibly in the decision-making process without amplifying biases, humans should always be in the loop.

“The human expert should always be the one making the judgment. The AI should be supporting them with details and understanding,” Mr. Likens said.

For leaders to determine the appropriate level of investment in AI for their organization, Mr. Likens said it is contingent on the industry and the opportunities available but should always be guided by their business strategy.

“The investment should follow. I don’t think AI should be an investment on its own. I think it should be related to the business strategy. It’s not AI on its own,” he said.

A survey conducted by PwC Philippines in partnership with MAP showed that 40% of the CEOs in the country said that they have already adopted generative AI (GenAI).

The survey also showed 71% believe that GenAI will change how their companies create, deliver, and capture value.

TIKTOK’S AI-POWERED TOOLS
“As a technology platform and entertainment platform, we have been intentionally investing our time, energy, talent, and resources in this AI space in the past few years,” Matty Lin, general manager for Global Business Solutions for Southeast Asia at TikTok said during the MAP International CEO Conference.

To meet the demand for content, Mr. Lin said adopting GenAI solutions is key but human insight still plays a front-and-center role.

“Forty percent of TikTok users want to see AI-generated content on the platform. On the other hand, they also expect us, the platform, as well as all advertisers and brands to be transparent if what they see is AI-modified content,” he said.

Mr. Lin said the company plans to launch an AI media literacy campaign and begin adding Coalition for Content Provenance and Authenticity (C2PA) Content Credentials to TikTok content.

This technology attaches metadata to a piece of content that indicates it was created with AI. — Aubrey Rose A. Inosante

Possible Tampakan stake strategic for DMCI — analysts

THE BLAAN ancestral lands in the mineral-rich Tampakan town in South Cotabato. — JOHN FELIX M. UNSON

By Adrian H. Halili, Reporter

THE CONSUNJI family’s plan to inject its 10% stake in the Tampakan copper and gold project into DMCI Holdings, Inc.’s portfolio is seen as a strategic move to diversify the listed firm’s mining assets and reduce reliance on nickel, with the potential to enhance financial stability and asset value once the project becomes operational, according to analysts.

“If DMCI were to acquire this stake, it could diversify its mining assets, adding substantial value to its portfolio by entering the copper-gold market,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message on Wednesday.

He added that this diversification could also support the company’s financial stability.

The Tampakan project in South Cotabato is recognized as one of the largest untapped copper and gold reserves in Southeast Asia, with an estimated 15 million tons of copper and 17.6 million ounces of gold. The project spans 25,371 hectares. The development of the project was stalled due to the national ban on open pit mining in 2017.

The 10% stake is privately owned by the Consunji family’s Dacon Corp. The Tampakan project is operated by Sagittarius Mines, Inc. (SMI), a joint venture that includes global mining companies and local partners, operating under a financial and technical assistance agreement with the Philippine government.

Last year, SMI said that it was still on track to start operations of the gold and copper project by 2026.

“Their (DMCI Holdings’) current mines all produce nickel, which is currently facing oversupply due to surging output in Indonesia, so prices are quite low,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

According to the Mines and Geosciences Bureau, the average price of nickel ore fell 23.7% to $7.94 per pound in the first half of the year from $10.4 per pound a year earlier. Indonesia is among the top producers of Nickel in the world.

“Note that Tampakan is still far from operational, and they only hold a small 10% stake so the effect may not be immediately felt or significant,” AP Securities’ Mr. Garcia said.

Mr. Arce said that this could reduce the company’s dependency on a single mineral type and provides a buffer against price volatility.

“By adding a copper-gold project, the company would be diversifying its asset base beyond these metals, spreading its exposure across multiple commodities,” he said.

Nickel and copper are among the minerals critical for producing renewable energy products and electric vehicles.

“Gold is traditionally seen as a safe-haven asset, especially during times of economic uncertainty,” Mr. Arce also said.

Gold prices have increased during the first semester where it was seen averaging at $2,203.50 per troy ounce, up 13.9% from $1,933.95 per troy ounce a year ago. Copper prices went up to $4.02 per pound from $3.95 per pound.

Earlier, DMCI Chairman and President Isidro A. Consunji said that the company was looking to expand its mining business with new gold, copper, and coal assets.

The company operates nickel mining projects in Zambales and Palawan via its unit DMCI Mining Corp. It operates open-pit mines through Berong Nickel Corp. and Zambales Diversified Metals Corp.

In a regulatory filing on Tuesday, DMCI said that the potential injection of the 10% stake in the Tampakan project has not yet been discussed with the company’s board of directors.

It added that there is no definitive agreement concerning the transaction.

For the second quarter, DMCI Holdings’ net income declined by 32% to P5.5 billion from P8.1 billion the same period in 2023. This was attributed to the weaker performance of its energy, real estate, and mining segments.

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