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Honda batting for extension of Palace order cutting EV tariffs

BW FILE PHOTO

By Justine Irish D. Tabile, Reporter

HONDA MOTOR Co., Ltd. is seeking the extension of an executive order (EO) reducing tariffs and duties on all kinds of electric vehicles (EVs) beyond 2028, saying more time is needed to grow the market.

Toshio Kuwahara, Honda vice-president and head of Regional Operations in Asia and Oceania, did not propose a definite ending date for the EO’s effectivity.

“If the Philippine government will kindly consider extending this deadline, I think it will further be positive for the automotive industry to accelerate electrification,” Mr. Kuwahara said during the launch of the company’s EV lineup in the Philippines late Wednesday.

On June 20, President Ferdinand R. Marcos, Jr. signed EO 62, which modified the rates of import duty on various EV products.

The EO covered the expansion of the reduced Most Favored Nation tariff rates of the products covered under EO No. 12 to other battery EVs (BEVs), hybrid EVs (HEVs), plug-in HEVs (PHEVs), and certain parts and components.

Mr. Kuwahara said that the speed of the transition to EVs in the Philippines lags the progress made in other ASEAN countries like Thailand and Indonesia.

“In the Thai market, 23% of their passenger car sales are already BEVs,” he said.

He said the factors that make the Philippines a laggard include “the availability of charging stations, and the electricity cost itself.”

This year, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) is projecting the share of EVs at below 10% of the industry sales.

Honda has a global target for EVs or fuel cell EVs to constitute 40% of total sales by 2030, rising to 80% by 2035 and 100% by 2040.

Louie C. Soriano, senior vice-president at Honda Cars Philippines, Inc. (HCPI), said Honda Philippines will have to align with the company’s global targets.

“I don’t think it will be the same (progress) for the Philippines … maybe a little bit later,” Mr. Soriano said on the sidelines of the event.

“We have to understand that we’re just importing. So we have to push it in the Philippine market. Because in the future, that (may be) the only automobile we can sell … so we have to adapt,” he added.

He said Honda is also planning a partnership that will lead to the installation of more charging stations in the Philippines, which aims to address the reluctance of consumers to switch to EVs.

“Of course, we’re also going to support the government’s direction towards electrification. That’s why we’re starting with hybrids, and in the future, we’re going to have the BEV,” he said.

“On charging stations, we are still in the process of discussing it … because how could we introduce BEV fully to the market if we don’t address these issues? So we are also going to do our part,” he added.

Regarding the duration of the proposed extension, Mr. Soriano gave no timeline but said: “The objective of this EO is to lower the cost in order for the cars to be accessible to the market.”

Meanwhile, Mr. Soriano said that Honda is still confident that sales this year will surpass last year’s result after the industry target was upwardly adjusted last month.

“If the industry increases its target, of course you have to also aim to have the same growth as the industry,” he said.

“We are going to surpass (our sales last year). We still have the “ber” months, the introduction of the new model, and of course the promotions, which are all going to help,” he added.

Last month, CAMPI raised its sales target to 500,000, from 468,300 initially. If realized, this will be the industry’s highest level of annual sales to date and will represent a 16.3% increase from 2023.

In the first eight months, Honda Philippines was 7th in market share at 3.37%. Its sales declined 9.7% to 10,281 units in the eight months to August.

Last year, the company sold 16,645 units, accounting for 3.87% of industry sales.

On Wednesday, Honda introduced its new Honda Civic RS e:HEV which expands the company’s HEV lineup along with its first two-wheeler BEV EM1 e: and new battery-powered handled products.

Honda is targeting to add one dealership in Bacoor and end the year with a store network of 38.

It is targeting to start construction of three more dealerships in Paranaque, Talisay, Cebu, and Tacloban.

Jobs lost to AI overseas could mean more work for PHL, BPO industry says

WANGXINA-FREEPIK

THE PHILIPPINES could emerge as a beneficiary of job cuts overseas due to artificial intelligence (AI), an industry group said, noting that outsourcing might actually accelerate hand-in-hand with the AI trend.

Most reports about job losses in relation to AI adoption are written from a foreign perspective, Dominic Vincent D. Ligot, head of AI and research at the IT and Business Process Association of the Philippines, told BusinessWorld on Thursday.

“On jobs, remember most reports about job losses are written from the perspective of Western countries like the US, UK, Canada, and Australia, which actually helps the outsourcing trend to countries like India and the Philippines,” Mr. Ligot, who founded Cirrolytix Research Services, said via Viber.

“We are usually the beneficiaries of these job losses abroad, and to maximize this, we should incorporate technologies like AI into our labor force skills to make the Philippines a more ideal destination for new work,” he added.

A report by the Institute for Management Development (IMD) World Competitiveness Center found that as AI systems become more adept at handling tasks performed by humans, such as data analysis and customer service, economies will experience job security disruptions.

“All in all, AI could drastically alter the workforce through its potential to replace it, a fact that raises important questions about the resulting social and economic effects and the repercussions on talent competitiveness,” said José Caballero, a senior economist at the IMD World Competitiveness Center.

“Additionally, incorporating AI into the workforce can introduce new forms of discrimination, such as biased algorithms, that may reinforce existing inequalities and have broader social impacts on marginalized communities,” he said.

He added that the increasing use of AI in hiring, promotions, and performance evaluations also raises concerns about fairness and accountability.

The report showed that 12% of the executives see AI is replacing existing tasks, leading to a reduction in the workforce, while 7% think AI is leading to employees quiet-quitting or opting for early retirement.

Citing International Labor Organization’s research, IMD said “that high-income economies are more likely to experience significant disruptions during the AI adoption phase than low-income economies, but they are also expected to obtain greater overall benefits.”

It said only 0.4% of jobs in low-income countries are at risk of AI-led automation, while the corresponding forecast is 5.5% in high-income countries.

It added that the concentration of AI-related job losses in female-dominated occupations could dampen the progress made in increasing women’s participation in the labor market.

Asked about the readiness of the Philippines to adopt AI, Mr. Caballero said that the Philippines is handicapped by a dearth of talent.

He said however that the percentage of graduates in sciences — ICT, engineering, math, and natural sciences — is improving, pointing to the easier adoption of AI in the future.

The report ranked the Philippines 52nd in terms of readiness by assessing the quality of the skills in a country’s talent pool, out of 67 countries.

Mr. Ligot said that these rankings contradict other findings. 

“The recent World Bank report puts the Philippines in 4th place in terms of AI traffic and corroborates reports by LinkedIn that say the Philippines is ahead of the global average in terms of AI adoption,” he said.

“The data is mixed, which suggests that despite the challenges, the Philippine workforce is very keen to adopt AI and that if the public and private sectors make the necessary investments, we can reap the potential of this new technology,” he added.

Jamil Paolo S. Francisco, executive director of the Asian Institute of Management Rizalino S. Navarro Policy Center for Competitiveness, said the country needs to improve the skills being developed in schools.

“The future workforce will need to learn how to work with advanced digital technologies,” Mr. Francisco said via e-mail.

“We haven’t even quite unlocked the full potential of the Fourth Industrial Revolution and digital automation, and now we are faced with some are calling the Fifth Industrial Revolution, that will require the workforce to collaborate with AI and machines,” he added.

He said that the way forward is to find out how people can do a better job while working with AI or robots.

“Being a largely service-sector-driven and labor-abundant economy, we need to invest in equipping our current workforce and preparing our future workforce for this type of human-machine collaboration to leverage the much-needed potential productivity gains,” he added. — Justine Irish D. Tabile

ERC’s Dimalanta warns some co-ops may be affected by delays

BW FILE PHOTO

DELAYS in the Energy Regulatory Commission’s (ERC) proceedings may affect power rates for some electric cooperatives (ECs) pending the appointment of an acting chair to lead the decision-making on pending power supply contracts, suspended chairperson Monalisa C. Dimalanta said.

Ten days after her suspension, Ms. Dimalanta said in a briefing on Thursday that around 23 ECs have at least 50% exposure to the Wholesale Electricity Spot Market (WESM), which is vulnerable to price volatility.

The WESM is the trading floor that such ECs turn to if their contracted power supply proves inadequate. Spot market commodities are typically more expensive than markets where delivery is arranged far in advance, as with the Power Supply Agreements (PSAs) used by the power industry.

She had given instructions to the commission’s technical staff to check whether the ECs with high exposure have pending PSAs for approval “so we could bump up the approval to limit or avoid WESM exposure of the ECs.”

“If they continue to be exposed, there is risk that their rates will be higher,” she said.

In an order dated Aug. 27, the Ombudsman suspended Ms. Dimalanta for six months without pay over a complaint filed by the National Association of Electricity Consumers for Reforms, Inc. (Nasecore).

The allegations involve grave misconduct, grave abuse of authority, and conduct prejudicial to public service.

Nasecore claims that the ERC “failed to recalculate the rate of Meralco (Manila Electric Co.) that protects the interest of the public and runs counter to the objective of the ERC’s Performance Based Regulation.”

Ms. Dimalanta said she was expecting to receive a resolution from the Ombudsman on her motion for reconsideration within the week, or five days from filing.

She said that the grounds for her suspension are moot as the commission has decided on the matter raised in the complaint against her.

She said that the ERC decided to dismiss the rate application and “consider the fifth regulatory period (5RP) as a lapsed period.”

This means that Meralco’s rate will remain unchanged until the end of the years covered by the rate reset.

“On Aug. 21, the Commission voted, 3-2, and I was part of the two that dissented, along with Commissioner Maceda. Our dissent vote was that there needs to be a proper reset for the fifth regulatory period, which is the 2022 to 2026 period of Meralco,” Dimalanta said.

“My point was it is the job of the regulator to do the reset. There hasn’t been a reset in 10 years, so why should we let go of our job to reset for a period that is yet to lapse,” she added.

Asked to comment, Meralco said it has yet to receive the copy of the decision.

It added however that “based on ERC Rules, which require that the rate application of distribution utilities must be based on the forecast of their annual revenue requirements in the next four years, the 5th RP Application of Meralco should have been decided by ERC before the start of the 5RP on July 1, 2022,” the power distributor said. — Sheldeen Joy Talavera

DBP rice farmer credit program focused on Nueva Ecija, CAR, Pangasinan, Isabela

COURTESY OF DBP FACEBOOK PAGE

THE Development Bank of the Philippines (DBP) said it launched new agricultural credit programs targeting rice farmers in key growing areas in northern and Central Luzon.

“Our instructions are (to tap farmers) from Nueva Ecija, Cordillera Autonomous Region (CAR), Pangasinan, and Isabela,” DBP Director Roberto V. Antonio told reporters at a briefing.

The Agri-Puhunan at Pantawid (APP) program focuses on rice farmers holding less than a hectare, who are deemed eligible to receive on credit P60,000 worth of inputs and allowances from the DA’s partner banks during the 2024 to 2025 crop year. The interest rate is 2%.

“We want to stick to one farmer, one hectare — or at a maximum of two hectares. We want to make the beneficiaries easily monitored by both the DA and the DBP,” Mr. Antonio said.

The program was initially launched in Guimba, Nueva Ecija with around 5,000 rice farmers as initial enrollees. Funding of about P3 billion was allocated for the APP program.

Another eligibility requirement is that the farmer must be signed up with the DA’s Registry System for the Basic Sectors in Agriculture. The DBP is looking to enroll an initial 50,000 farmers for the program.

Farmers taking the DBP funding are also required to sell a portion of their harvest to the National Food Authority at a farmgate price of P21 per kilogram.

“We have to get everything in order before the planting season (that will produce) the main harvest,” he added.

Mr. Antonio said that P32,000 will also be given to beneficiary farmers as a subsistence allowance, amounting to P8,000 for four months.

The remaining P28,000 will cover the purchase of farm inputs like seed and fertilizer in DA accredited stores. The program will add to the inputs they already receive from the DA.

Mr. Antonio added that the bank is considering whether farmers growing other crops can join APP.

“Our mandate is to focus on rice, but at the same time, we’re asked to study the possibility of implementing the program with other crops…when we’re ready to present, we will present it to the Secretary (of Agriculture),” he added. — Adrian H. Halili

Agricultural damage from recent storms tops P107 million

MAFAR BARMM

AGRICULTURAL DAMAGE from recent tropical cyclones working in tandem with the effects of the southwest monsoon was estimated at P107.42 million, according to the Department of Agriculture (DA).

Citing initial reports, the DA said Tropical Cyclones Ferdie, Gener, and Helen affected 1,372 farmers and fisherfolk.

The initial reports were filed at DA regional field offices in Mimaropa and the Western Visayas. Volume losses were estimated at 4,749 metric tons (MT) across 1,547 hectares of farm area.

Rice sustained most of the damage at 91.5% of the total. Lost volume was estimated at 4,340 MT valued at P98.3 million, with the damaged areas spanning 1,536 hectares.

“Most of the damage and losses were to rice in the reproductive and maturity stages,” the DA said, noting that the reports are subject to validation.

Lost corn volume was 336 MT, with most of the crops in the reproductive and maturity stage. The losses were valued at P6.06 million, affecting 91 hectares of farmland.

Damage to high-value crops was valued at P2.99 million, with lost volume of 74 MT, spanning 19 hectares.

The recent tropical cyclones also resulted in the loss of 14 head of livestock, including chicken, swine, and goat, valued at P29,000.

Agriculture Secretary Francisco P. Tiu-Laurel, Jr. has said that overall farm production could be affected by the increased number of storms expected to enter the Philippines during La Niña.

The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), reported a 55% probability that La Niña will occur during the fourth quarter, lasting until early 2025. 

The climate event is expected to increase the likelihood of tropical cyclone activity in the coming months. — Adrian H. Halili

South Africa studying PHL model in globalizing maritime labor force

PIXABAY

SOUTH AFRICA is looking at Philippine maritime industry practices to globalize its own maritime workforce, according to a South African academic.

“The state is often an active agent of globalization, it can influence the trajectories and the directions in which globalization takes,” said Shaun Ruggunan, professor in the School of Management, IT, and Governance, College of Law and Management at the University of KwaZulu-Natal in South Africa.

“We see with the Filipino state, that it has successfully managed to make Filipino seafarers dominant in the seafaring labor market, thereby shaping some of the trajectory of globalization,” he said during a University of the Philippines Diliman School of Labor and Industrial Relations event late Wednesday.

He said South Africa is “really” interested in the Philippine model, specifically the labor-for-export approach.

He noted South African unemployment is close to 50%. In his province of KwaZulu-Nata, one out of three are unemployed.

Mr. Ruggunan said this problem is what drove the South African government to follow the Philippines’ lead in maritime labor.

There are around 7,000 South African seafarers, which he said “is not a lot” compared to the 400,000 to 600,000 Filipino seafarers. His reaching the Filipino level of employment in the industry is the “vision” of the South African government.

South African shipping companies are often the “losers” in terms of international shipping labor markets, he added.

“We simply haven’t been able to engage with globalization or emulate the policies as the Philippines has,” he said.

He said the need for racial equity has shaped South African policy since the end of apartheid.

“The state was more interested in ‘we need racial equity in the seafarers that we produce,’” he said.

“Historically, you can only be an officer if you were a white South African,” he added. “The state was very interested in trying to get black South Africans to be seafarers and more women to train as seafarers.”

However, he said, the global labor market does not care about South Africa’s issues. It is more interested in a trained and equipped labor force.

“In South Africa, we take more pride in having a diverse seafaring market,” he said.

Mr. Ruggunan noted that technology “may require fewer people to work and there may be certain jobs that are not needed because they are now automated.”

“The shipping industry shows how quickly work and labor markets can be restructured, even for highly skilled people.” — Chloe Mari A. Hufana

Gov’t agencies’ cash utilization hits 95%

BW FILE PHOTO

THE cash utilization rate posted by government agencies hit 95% in the first eight months of the year, the Department of Budget and Management (DBM) said.

The National Government, local governments and government-owned companies used P2.96 trillion of the P3.12 trillion worth of notices of cash allocation (NCAs) issued as of the end of August. Unused NCAs amounted to P161.97 billion.

The NCA utilization rate was ahead of the pace compared with the 93% posted a year earlier, DBM said.

In August, the utilization rate was 99% or P378.48 billion of NCAs. Line departments used P285.87 billion, the DBM said.

NCAs are a quarterly disbursement authority that the DBM issues to agencies. This is needed to withdraw funds from the Treasury to support their spending needs.

At the end of August, line departments had used P2.19 trillion or 93% of their total allocations.

Only the Commission on Audit posted a 100% utilization rate at the end of August. This was followed by the Commission on Human Rights at 99% and the Department of Social Welfare and Development at 96%.

Agencies that posted 95% usage rates were the departments of Education, Foreign Affairs, Interior and Local Government, and Public Works and Highways.

The DBM had the lowest rate of 73%.

The DBM has said it released P5.59 trillion or 96.9% of this year’s national budget as of the end of August. — Beatriz Marie D. Cruz

Philippine women’s team stuns Argentina, joins 15th place logjam

RUELLE CANINO (left) and GM Janelle Mae Frayna (right) — PHILSTAR FILE PHOTO

BUDAPEST, Hungary — GM Janelle Mae Frayna and wonder girl Ruelle Canino pulled off impressive victories to lift the Philippines and made Argentina weep with a shock 2.5-1.5 win that catapulted it straight to big group in the top 15 after seven rounds of the 45th FIDE Chess Olympiad.

Ms. Frayna, the country’s first and only Woman Grandmaster, downed Maria Jose Campos in 66 moves of an English Opening at board two while Ms. Canino stunned WGM Claudia Amura, the Argentines former board chesser, in 39 moves of yet another English duel at board four that helped seal the upset.

Shania Mendoza dug her way out of a losing position and turned it into a winning one before missing his winning chances and settling for a 74-move draw of a razor-sharp Sicilian.

The country’s lone casualty was Shania Mae Mendoza, who blundered away her winning chances and succumbed to Candela Francisco Guecamburu in 46 moves of a London System at board one.

The result sent the Filipinas, whose trip is financed by the PSC through chair Richard Bacghmann and commissioner Ed Hayco and backed by NCFP head Butch Pichay, a 14-country logjam at No. 15 with 10 match points each and were battling the 16th seeded Turkey in the eighth round of this 11-round tournament.

In contrast, the Filipinos stumbled to Croatia, 3.5-.5, in the men’s side with GM Julio Catalino Sadorra providing the only light to what had been a dark performance for the country with his 31-move draw with super GM Ante Brkic on board one.

The painful defeat sent the country skidding down to a share of No. 44 with eight points and will tangle with South Africa where the former is expected to vent its ire on. — Joey Villar

Jerusalem defends his WBC minimumweight title against Castillo

ARISA CHATTASA/UNSPLASH

THERE will be no retreat — and definitely no surrender — for Melvin Jerusalem, one of the only two reigning Filipino world champions, in a bid to retain his belt in front of no less than the boxing-crazed home crowd.

Mr. Jerusalem vowed to hold the fort and defend his crown even at the jaws of unbeaten Mexican challenger Luis Castillo’s knockout warning in the WBC world minimumweight title fight to headline Manny Pacquiao Promotions’ Blow-by-Blow this Sunday in Mandaluyong.

His anticipated tough defense against Mr. Castillo, from the country’s forever boxing archrival Mexico, will be the first world title fight here in seven years.

But more than that, it’s the first title defense by a Filipino at home, particularly for a WBC belt, since Mr. Pacquiao himself retained the WBC flyweight crown against Mexico’s Gabriel Mira at the Araneta Coliseum in 1999.

Blow-by-Blow, backed by San Miguel Corp’s Petron and will air on One Sports, will have 14 undercards starting at 1 p.m. before the Jerusalem-Castillo main event at 7 p.m. at the Mandaluyong City College.

The 30-year-old Mr. Jerusalem (22 wins with 12 knockouts) nabbed the WBC belt last March from Japanese Yudai Shigeoka on the road in Nagoya, Japan via split decision. This time, M. Castillo is out to flip the script and return the favor on Mr. Jerusalem, vowing to bring home the title to Mexico and spoil the Philippine party with a knockout victory.

“I’m ready and confident. This is the first time I’m fighting in the Philippines but I like it. We know that it’s always a battle between Filipinos and Mexicans but this will not be a battle. This will be a war. And I will go for a knockout,” said the 27-year-old Mr. Castillo (27-0-1, 13 KO), who has no problems acclimating with the Philippine weather that’s almost similar with Mexico’s.

Mr. Castillo, with trainer Eduardo Montiel, actually insisted for the mandatory title fight in Mexico before Mr. Pacquiao made it happen for Mr. Jerusalem under the Sanman Promotions led by JC Mananquil to defend it at home instead through the iconic Blow-by-Blow.

Meanwhile, also in the Blow-by-Blow card is former world super flyweight champion Jerwin Ancajas in a crucial comeback against Sukpraserd Ponpitak of Thailand on the heels of a tough sixth-round bantamweight bout defeat against Takuma Inoue in Tokyo. — John Bryan Ulanday

Mapua Cardinals, Letran Knights clash for solo second place in NCAA S100

Games on Friday
(Filoil EcoOil Arena)
12 p.m. – AU vs LPU
2:30 p.m. – Letran vs Mapua

LAST YEAR’S runner-up Mapua University and resurgent Colegio de San Juan de Letran face off for solo second spot in a showdown between two of the league’s big guns Friday in NCAA Season 100 at the Filoil EcoOil Arena.

Both teams own identical 2-1 records and riding the crest of their impressive wins with the Mapua Cardinals outlasting the University of Perpetual Help Altas, 71-65, on Sunday and the Letran Knights escaping past the Arellano University Chiefs, 86-79, on Tuesday.

The winner in their 2:30 clash will move up to solo No. 2 and closer to College of St. Benilde, which remained immovable at the helm with an immaculate 4-0 slate.

The Mapua Cardinals should rely on reigning MVP Clint Escamis, who came through in the clutch in finishing with his career-high effort of 28 points, while the Letran Knights riding on Paolo Javillonar’s back after their team captain likewise played the game of his life with 28 points.

It will be a little special for Mr. Javillonar as this will be only his second game after he sat out the first two due to suspension slapped on him for playing in unsanctioned leagues.

Mr. Javillonar also appeared as a man on a mission after undergoing a rigid weight-loss program and came into the last game in full strength and in the pink of health.

Meanwhile, Arellano University (0-3) and Lyceum of the Philippines University (1-2) tackle each other at 12 p.m. hoping to pump some muscles into their sagging Final Four bids. — Joey Villar

Mimosa Plus Golf is first PHL GEO Certified golf course 

MIMOSA Plus Golf Course has become the first course in the Philippines to achieve GEO Certified status.

The GEO certification is a comprehensive modern certification, presented by the GEO Foundation for Sustainable golf. Currently, there are only 17 GEO Certified Golf Courses in Asia, with about 40 courses registered on their platform. It is considered the sport’s most credible and widely endorsed international certification for golf facility operations, new golf developments and tournament staging. 

Located within the 201-hectare Filinvest Mimosa Plus Leisure City with two 18-hole, par 72 courses.

The certification demonstrates Mimosa Plus Golf management’s commitment towards protecting the future of the golf course and the surrounding environment through long-term sustainability initiatives. Key initiatives include selecting grasses such as Zoysia Zeon and Trinity, which require less water, propagating plant nurseries rather than sourcing externally and using tree-tagging to monitor the health of trees. In addition, the golf course also utilizes the Rainbird IC system which allows management to remotely and precisely control water consumption.

Additionally, this achievement reflects the dedication of Mimosa Plus Golf towards collaborating with local communities for programs such as reforestation.

Filinvest’s Mimosa Plus Golf Course significantly impacts the local community through its sustainable efforts to promote tourism, provide employment, and support the Aeta community. These contributions help enhance Clark’s reputation as a golf destination, support local economic growth, and promote environmental stewardship.

As an open golf course is dedicated to the stewardship of golf education and the future of sport in the country.

WNBA awards Portland expansion team that will start play in 2026

PORTLAND, Oregon, has become the latest city to benefit from the Women’s National Basketball Association’s (WNBA) rapid expansion plans after being awarded a franchise on Wednesday that will begin play in 2026.

Portland will be the third expansion franchise the WNBA adds over the next two years with Golden State and Toronto having previously been awarded teams.

The new team will be owned and operated by Raj Sports and led by Lisa Bhathal Merage and Alex Bhathal. It also marks the WNBA’s return to Portland, which was home to the Portland Fire from 2000-02.

Portland will be the WNBA’s 15th franchise.

“The business potential in women’s sports is undeniable,” Bhathal Merage said at a press conference. — Reuters

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