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Mexico’s planned judicial reform is ‘major risk’ to democracy, says US ambassador

STOCK PHOTO | Image by Jorge Carlos from Pixabay

MEXICO CITY – The proposed reform of Mexico’s judiciary threatens the country’s democracy and its vital trade relationship with the United States, the top US diplomat in Mexico said on Thursday, while his Canadian counterpart warned of investor worries.

The controversial reform, set for a congressional vote in September, proposes that judges, including all Supreme Court justices, be elected by popular vote.

“Based on my lifelong experience supporting the rule of law, I believe popular direct election of judges is a major risk to the functioning of Mexico’s democracy,” US Ambassador to Mexico Ken Salazar said in a statement.

Mr. Salazar said the reform could make Mexico’s judiciary more vulnerable to influence from organized crime and undermine confidence in the country’s judicial system.

“Direct elections would also make it easier for cartels and other bad actors to take advantage of politically motivated and inexperienced judges,” he said.

The comments are the strongest to date by Mexico’s largest trading partner and represent a significant ratcheting up of tensions between the two countries over the issue.

Canadian Ambassador Graeme Clark also criticized the reform at an event on Thursday.

“My investors are concerned, they want stability, they want a judicial system that works if there are problems,” he said.

Mr. Clark stipulated that the two nations’ governments have “excellent relations” and he was only transmitting investors’ concerns.

Mexico’s presidency and foreign ministry did not immediately respond to a request for comment.

Mexican ruling party Senator Ricardo Monreal told journalists on Thursday evening, though, that he thought Mr. Salazar had “not read the reform all the way through” and argued that judges were elected in several US states.

Incoming President Claudia Sheinbaum, who takes office in October, has defended outgoing President Andres Manuel Lopez Obrador’s judicial proposal, saying she agrees judges should be elected.

Mr. Salazar said the debate around the reform, and the politics of the process, were it to be approved, would threaten the US-Mexico trade relationship, “which relies on investors’ confidence in Mexico’s legal framework.”

“Any judicial reform should have the right kinds of safeguards that will ensure the judicial branch will be strengthened and not subject to the corruption of politics,” Mr. Salazar said.

Mr. Lopez Obrador argues the reform, which proposes that judges be elected via votes in 2025 and 2027, will help combat impunity and corruption.

But markets have been on edge since Mr. Lopez Obrador’s Morena party won more congressional seats than forecast in a June national election, effectively guaranteeing it the ability to pass constitutional reforms when the new Congress takes office in September.

Mexico’s stock market fell about 0.6% and the peso about 1 % on Thursday. – Reuters

Beyonce’s representative denies she will perform at Democratic convention, report says

By Raph_PH - BeyonceSpurs010623 (47 of 118), CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=133462482
By Raph_PH – BeyonceSpurs010623 (47 of 118), CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=133462482

A representative for Beyoncé has denied reports she will perform on the final night of the Democratic National Convention in Chicago on Thursday, the Hollywood Reporter reported.

There was no official confirmation or denial after the entertainment website TMZ and The Hill reported the singer would perform to cap off the night, when Vice President Kamala Harris formally accepts the Democratic Party nomination.

“Beyoncé was never scheduled to be there,” a representative for the singer told The Hollywood Reporter. “The report of a performance is untrue.”

Ms. Harris’ campaign has declined to comment on any special guests.

Ms. Harris has adopted Ms. Beyoncé’s “Freedom” as her campaign rally song, and took the stage in Chicago on Monday to the tune, increasing speculation that Beyoncé would perform.

Ms. Beyoncé has reportedly given Ms. Harris permission to use the song. She has previously backed Democrats, including US President Joe Biden in the last election.

In a post ahead of the 2020 presidential election, Ms. Beyoncé posted a photo of herself on Instagram wearing a Biden-Harris face mask and encouraged her millions of followers to vote. “Come thru, Texas! #VOTE,” she wrote.

Country band The Chicks performed the national anthem at the convention. The Chicks performed with Ms. Beyonce at the 2016 Country Music Awards.

Earlier this year, Ms. Beyoncé released Cowboy Carter, an album with a heavy country influence, that critics said had political undertones, speaking to the broader struggles of Black Americans and the fight for recognizing Black history.

Ms. Harris attended one of the megastar’s Washington, D.C., stops last year for her popular Renaissance tour.

Ms. Harris praised Ms. Beyoncé earlier this year on X, writing: “Thank you for reminding us to never feel confined to other people’s perspective of what our lane is. You have redefined a genre and reclaimed country music’s Black roots. Your music continues to inspire us all.” – Reuters

Chinese entities turn to Amazon cloud and its rivals to access high-end US chips, AI

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BEIJING/SINGAPORE/NEW YORK – State-linked Chinese entities are using cloud services provided by Amazon or its rivals to access advanced US chips and artificial intelligence capabilities that they cannot acquire otherwise, recent public tender documents showed.

The US government has restricted the export of high-end AI chips to China over the past two years, citing the need to limit the Chinese military’s capabilities.

Providing access to such chips or advanced AI models through the cloud, however, is not a violation of US regulations since only exports or transfers of a commodity, software or technology are regulated.

A Reuters review of more than 50 tender documents posted over the past year on publicly available Chinese databases showed that at least 11 Chinese entities have sought access to restricted US technologies or cloud services.

Among those, four explicitly named Amazon Web Services (AWS) as a cloud service provider, though they accessed the services through Chinese intermediary companies rather than from AWS directly.

The tender documents, which Reuters is the first to report on, show the breadth of strategies Chinese entities are employing to secure advanced computing power and access generative AI models. They also underscore how US companies are capitalizing on China’s growing demand for computing power.

“AWS complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside of China,” a spokesperson for Amazon’s cloud business said.

AWS controls nearly a third of the global cloud infrastructure market, according to research firm Canalys. In China, AWS is the sixth-largest cloud service provider, according to research firm IDC.

Shenzhen University spent 200,000 yuan ($27,996) on an AWS account to gain access to cloud servers powered by Nvidia A100 and H100 chips for an unspecified project, according to a March tender document. It got this service via an intermediary, Yunda Technology Ltd Co, the document showed.

Exports to China of the two Nvidia chips, which are used to power large-language models (LLM) such as OpenAI’s ChatGPT, are banned by the US.

Shenzhen University and Yunda Technology did not respond to requests for comment. Nvidia declined to comment on Shenzhen University’s spending or on any of the other Chinese entities’ deals.

Zhejiang Lab, a research institute developing its own LLM, GeoGPT, said in a tender document in April that it intended to spend 184,000 yuan to purchase AWS cloud computing services as its AI model could not get enough computing power from homegrown Alibaba.

A spokesperson for Zhejiang Lab said that it did not follow through with the purchase but did not respond to questions about the reasoning behind this decision or how it met its LLM’s computing power requirements. Alibaba’s cloud unit, Alicloud, did not respond to a request for comment.

Reuters could not establish whether or not the purchase went ahead.

The US government is now trying to tighten regulations to restrict access through the cloud.

“This loophole has been a concern of mine for years, and we are long overdue to address it,” Michael McCaul, chair of the US House of Representatives Foreign Affairs Committee, told Reuters in a statement, referring to the remote access of advanced US computing through the cloud by foreign entities.

Legislation was introduced in Congress in April to empower the commerce department to regulate remote access of US technology, but it is not clear if and when it will be passed.

A department spokesperson said it was working closely with Congress and “seeking additional resources to strengthen our existing controls that restrict PRC companies from accessing advanced AI chips through remote access to cloud computing capability.”

The commerce department also proposed a rule in January that would require US cloud computing services to verify large AI model users and report to regulators when they use US cloud computing services to train large AI models capable of “malicious cyber-enabled activity”.

The rule, which has not been finalized, would also enable the commerce secretary to impose prohibitions on customers.

“We are aware the commerce department is considering new regulations, and we comply with all applicable laws in the countries in which we operate,” the AWS spokesperson said.

 

CLOUD DEMAND IN CHINA

The Chinese entities are also seeking access to Microsoft’s cloud services.

In April, Sichuan University said in a tender document it was building a generative AI platform and purchasing 40 million Microsoft Azure OpenAI tokens to support the delivery of this project. The university’s procurement document in May showed that Sichuan Province Xuedong Technology Co Ltd supplied the tokens.

Microsoft did not respond to requests for comment. Sichuan University and Sichuan Province Xuedong Technology did not respond to requests for comment on the purchase.

OpenAI said in a statement its own services are not supported in China and that Azure OpenAI operates under Microsoft’s policies. It did not comment on the tenders.

The University of Science and Technology of China’s (USTC) Suzhou Institute of Advanced Research said in a tender document in March that it wanted to rent 500 cloud servers, each powered by eight Nvidia A100 chips, for an unspecified purpose.

The tender was fulfilled by Hefei Advanced Computing Center Operation Management Co Ltd, a procurement document showed in April, but the document did not name the cloud service provider and Reuters could not determine its identity.

USTC was added to a US export control list known as the ‘Entity List’ in May for acquiring US technology for quantum computing that could help China’s military, and involvement in its nuclear program development.

USTC and Hefei Advanced Computing Center did not respond to requests for comment.

 

BEYOND RESTRICTED AI CHIPS

Amazon has offered Chinese organizations access not only to advanced AI chips but also to advanced AI models such as Anthropic’s Claude which they cannot otherwise access, according to public posts, tenders and marketing materials reviewed by Reuters.

“Bedrock provides a selection of leading LLMs including prominent closed-source models such as Anthropic’s Claude 3,” Chu Ruisong, President of AWS Greater China, told a generative AI-themed conference in Shanghai in May, referring to its cloud platform.

In various Chinese-language posts for AWS developers and clients, Amazon highlighted the opportunity to try out “world-class AI models” and mentioned Chinese gaming firm Source Technology as one of its clients using Claude.

Amazon has dedicated sales teams serving Chinese clients domestically and overseas, according to two former company executives.

After Reuters contacted Amazon for comment, it updated dozens of posts on its Chinese-language channels with a note to say some of its services were not available in its China cloud regions. It also removed several promotional posts, including the one about Source Technology. Amazon did not give a reason for removing the posts and did not answer a Reuters query on that.

“Amazon Bedrock customers are subject to Anthropic’s end user license agreement, which prohibits access to Claude in China both via Amazon’s Bedrock API (application programming interface) and via Anthropic’s own API,” the AWS spokesperson said.

Anthropic said it does not support or allow customers or end-users within China to access Claude.

“However, subsidiaries or product divisions of Chinese-headquartered companies may use Claude if the subsidiary itself is located in a supported region outside of China,” an Anthropic spokesperson said.

Source Technology did not respond to a request for comment. – Reuters

China trials cargo drone with biggest payload capacity yet

BEIJING – Chinese aviation logged a new milestone with a test flight of an unmanned civilian drone capable of carrying up to 3.2 metric tons of cargo, as drone makers trial larger and larger drones in anticipation of future domestic demand.

The unmanned SA750U developed by a drone maker based in southern Hunan province completed a 40-minute test flight on Thursday morning, the official Hunan Daily reported on Friday, adding the aircraft can operate as high as 7,300 meters (24,000 feet) and fly as far as 2,200 kms (1,367 miles).

Manufacturers in the world’s top drone-making nation are ramping up test flights as China loosens airspace curbs and rolls out incentives to build up a low-altitude economy which authorities say could become a 2-trillion-yuan ($280 billion) industry by 2030, a four-fold gain from 2023.

The test flight of SA750U came quickly on the heels of the trial of a drone earlier this month by a Sichuan-based manufacturer that boasted a payload capacity of 2 tons. Two months ago, state-owned Aviation Industry Corp of China tested a drone with a capacity of just 700 kg.

Cargo drones promise shorter delivery times and lower transport costs, Chinese industry insiders say. They can also take off or land at sites that lack conventional aviation infrastructure, such as rooftop spaces in heavily built-up cities.

China has already begun commercial deliveries by drone. In May, a firm under delivery giant SF Express started delivering fresh fruit from the island of Hainan to Guangdong.

In a report this year, the government identified the low-altitude economy as a new growth engine for the first time, with vertical mobility seen as a “new productive force” in areas such as passenger and cargo transport. – Reuters

Inflation could further ease in Q4

Various dishes are on display at a food stall along Kalaw Extension in Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

PHILIPPINE headline inflation could ease to less than 2% in the fourth quarter of this year, Nomura Global Markets Research said in a report.

Nomura said it is “penciling in a trajectory in which headline inflation drops to less than 2% by fourth quarter 2024, a substantial decline from 4.4% in July, and thereafter hovering within a similar range for most of the first half of 2025.”

Nomura said it sees inflation settling at 2.8% this year and further easing to 2.3% in 2025.

These forecasts are lower than the Bangko Sentral ng Pilipinas’ (BSP) own projections. The central bank expects inflation to average 3.4% in 2024 and 3.1% next year.

Nomura said its inflation outlook is mainly driven by the recent cut in tariffs on rice imports.

In June, President Ferdinand R. Marcos, Jr. issued an executive order reducing the tariff on rice imports to 15% from 35%, until 2028 to tame rice prices.

Rice inflation, which accounts for nearly half of overall inflation, eased to 20.9% in July from 22.5% a month ago. This marked the fourth straight month of slower rice inflation.

Nomura said it sees the BSP further cutting rates for the rest of this year.

“Overall, we reiterate our forecasts that BSP will cut by 25 basis points (bps) each in the last two meetings of the year, i.e. in October and December,” it said.

The Monetary Board last week reduced the target reverse repurchase (RRP) rate by 25 bps to 6.25% from the over 17-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. said that the central bank could deliver one more 25-bp cut in the fourth quarter.

“Beyond that, we also expect BSP to cut in the first three meetings in 2025 before pausing from there. This would bring the RRP rate to 5% by May 2025, i.e. a total of 150-bp cuts in this cycle,” it added.

Nomura said the BSP’s next policy decisions will largely be driven by the inflation path in the coming months.

“If inflation continues on a downward path, BSP can look to further remove the restrictiveness in the monetary stance to support a recovery in domestic demand and overall growth.”

“Moreover, we continue to think the Fed turning dovish will play a role, and its easing cycle underway from September, as our US team expects, should support further BSP’s consecutive rate cuts in the coming months,” it added.

The US Federal Reserve appears to be very much on track for an interest rate cut in September after a “vast majority” of officials said such an action was likely, according to the minutes of the US central bank’s July 30-31 meeting, Reuters reported.

The minutes, which were released on Wednesday, even showed some policy makers would have been willing to reduce borrowing costs at last month’s gathering.

The policy-setting Federal Open Market Committee left its benchmark interest rate unchanged in the 5.25%-5.5% range on July 31 but opened the door to a cut at the Sept. 17-18 meeting.

Financial markets have been expecting the September meeting to kick off the Fed’s policy easing, with as much as a full percentage point worth of rate cuts expected by the end of this year.

PESO IMPACT
Meanwhile, Bank of America (BofA) Global Research in a separate report noted the recent impact of the BSP’s policy easing on the peso.

“The Philippine peso has strengthened versus the US dollar, but less so compared to peers in the region, taking cues from the BSP’s rate cut in the last meeting and dovish guidance for another possible cut this year,” it said.

BofA now expects the peso to average P56 against the greenback by yearend from its earlier forecast of P57 per dollar.

“With the Fed cutting cycle likely commencing soon, Philippine peso could still appreciate versus the US dollar over time, which would keep BSP relatively comfortable on FX (foreign exchange) moves,” it said.

However, BofA also noted that the peso may be sensitive to the Fed’s moves.

“Lower rates in the Philippines have raised the likelihood of even a narrower interest rate buffer against US dollar rates. That may gain importance as a factor for corporate hedging behavior once the US dollar stabilizes,” it said.

“This pressure could increase if the US dollar strength picks up or US yields move higher again, increasing Philippine peso sensitivity to the US policy outlook.”

The peso closed at P56.333 against the dollar on Thursday, strengthening by 16.7 centavos from its P56.50 finish on Wednesday. This was its strongest finish in more than four months or since its P56.315 close on April 2.

The local currency has been trading at the P57- or P58-a-dollar level in the past months.

“The Philippine peso has weakened against most Asian peers this year, partly as a result of BSP’s dovish bias. With the next policy meeting some time away, US dollar direction could be the key factor driving the peso in the near term,” it added.

InstaPay, PESONet transactions jump by 34.6%

DAVID DVORACEK-UNSPLASH

THE VALUE of transactions done through InstaPay and PESONet climbed by 34.6% in the first seven months, according to data from the Bangko Sentral ng Pilipinas (BSP).

Central bank data showed that transactions coursed through the automated clearing houses jumped to P9.45 trillion as of end-July from P7.02 trillion in the same period a year ago.

The combined volume of transactions done via InstaPay and PESONet surged by 64.6% to 786.2 million from 477.5 million year on year.

Broken down, the value of PESONet transactions rose by 28.4% to P5.56 trillion as of July from P4.33 trillion a year ago.

The volume of transactions that went through the payment gateway likewise went up by 8.4% to 56.84 million as of end-July from 52.43 million a year ago.

Meanwhile, the value of transactions done through InstaPay stood at P3.9 trillion at end-July, higher by 45% from P2.69 trillion in the same period in 2023.

The volume of transactions coursed through the clearing house soared by 71.6% to 729.3 million from 425.08 million a year ago.

PESONet and InstaPay are automated clearing houses launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks, while InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

The share of online payments in the total volume of monthly retail transactions rose to 52.8% in 2023 from 42.1% a year earlier, latest data from the BSP showed.

This surpassed the central bank’s target of digitalizing 50% of the volume of retail payments by end-2023.

The volume of digital payments stood at 2.62 billion in 2023, higher than the 2.35 billion non-digital transactions. Meanwhile, the value of online payments amounted to $110.5 billion in 2023, also higher than the $89.3-billion non-digital transactions.

The BSP said that the top contributor to the rise in digital payments was merchant payments, which accounted for the bulk or 64.9% of monthly digital payments volume.

The central bank is targeting to achieve a 60-70% share of digital payments over total retail payments volume by 2028, in line with the Philippine Development Plan. — Luisa Maria Jacinta C. Jocson

Quezon City plans to amend Incentives Code

The Quezon Memorial Shrine in Quezon City, Aug. 18, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Justine Irish D. Tabile, Reporter

THE QUEZON CITY government is looking to boost tax incentives for businesses that will invest in key priority sectors.

“Quezon City is enhancing its business environment through strategic policy reforms and infrastructure development aimed at medium and large businesses,” said Quezon City Mayor Maria Josefina “Joy” G. Belmonte-Alimurung at the Metro Manila Business Conference on Thursday.

“We are in the process of amending the Quezon City Incentives Code to align with the Board of Investments’ (BoI) Strategic Investment Priority Plan (SIPP),” she added.

The updated code, which is also aligned with the United Nations’ sustainable development goals and the National Economic and Development Authority’s Ambisyon Natin 2040 objectives, “aims to reduce business costs, streamline processes, and foster partnerships.”

“It will provide newly constructed buildings with a two-year exemption on business tax, amusement tax, franchise tax, and real property tax,” Ms. Belmonte-Alimurung said.

“Meanwhile, businesses participating in our city’s investment priorities plan will receive a three-year exemption on all of these taxes,” she added.

Margie S. Mejia, head of the Quezon City Business Permits and Licensing Department, said that the amendments to the QC Incentives Code aim to reflect the current business environment.

“The old Incentives Code was passed between 10 and 15 years ago, so we need it to be attuned to the times,” Ms. Mejia said in a panel discussion.

“The target of the updated code is medium and large enterprises with the hopes of inviting them to establish themselves in Quezon City,” she added.

Ms. Mejia said businesses in Quezon City could tap its big population, which is estimated by the Philippine Statistics Authority at around 2.96 million as of May 1, 2020.

According to the World Population Review, Quezon City’s population may have gone up to 3.28 million in 2024.

BoI Investment Assistance Service and One-Stop Action Center for Strategic Investments Director Ernie Delos Reyes said that the Quezon City Local Economic Investment Promotions Office (LEIPO) is already reviewing the amendments to the Incentives Code.

“The focus is on strategic investments, but in relation to business and real property tax, we provided inputs on how they can be competitive with other local government units,” Mr. Delos Reyes said in a Viber message.

“We also told them about non-fiscal incentives like effective and efficient investment facilitation and alignment of its policies with national policies, especially the latest economic reforms,” he added.

Mr. Delos Reyes said that national incentives are already a standard under the Corporate Recovery and Tax Incentives for Enterprises law.

On April 18, the Quezon City LEIPO conducted a public consultation for the new Quezon City Incentives Code, which is meant “to cultivate a conducive business environment, stimulate investment inflow, and foster sustainable economic growth.”

Under the Quezon City Economic Development Incentives Code of 2013, qualified medium and large enterprises are entitled to a tax holiday on real property and exemption from franchise tax and amusement taxes for four years, among others.

Data from the Department of Trade and Industry showed that there are 129,477 business name registrations in the National Capital Region.

Most of these were wholesale and retail trade, food and beverage service activities, transportation and storage, real estate activities, and other service activities.

16M Filipinos facing medium-to-high risk of water stress — ADB

Residents wade through the flood caused by Typhoon Carina and the southwest monsoon on July 24, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

POOR FILIPINOS face a higher risk of experiencing floods and dry spells, the Asian Development Bank (ADB) said.

The ADB’s latest Key Indicators for Asia and the Pacific report showed that 16.1 million Filipinos experienced medium-to-high risk of water stress or experienced frequent droughts or intense flooding.

In comparison, 2.2 million people in Thailand experience the same level of water stress.

The report compared the Philippines and Thailand to show how countries with high poverty levels experience varying climate impacts depending on its geographical location. The data were measured using the Philippines’ 16.6% poverty incidence rate in 2018 and Thailand’s 7.8% poverty incidence rate in 2017.

“Poor communities are often disproportionately affected by climate change due to their limited financial resources to adapt or recover,” ADB Statistician Arturo M. Martinez, Jr. said in a virtual briefing on Thursday.

The report showed that all major parts of the Philippines faced medium-to-high risk of water stress.

The entire Metro Manila was exposed to this risk, followed by the rest of Luzon (76%), Mindanao (75%) and the Visayas (71%.) Meanwhile, all regions in Thailand experienced at least 76% of medium-to-high risk of water stress.

Geographic mapping showed that nearly two-thirds of the Philippines’ poor communities, which are spread out around the country, are exposed to medium-to-high risk of water stress

On the other hand, less than a fifth of Thailand’s land area was home to poor communities with high water risk, mostly in the northern region.

The report also showed that 12.7 million poor Filipinos lived in areas with medium-to-high flood risk, covering 59.6% and 51% of total land area susceptible to riverline and coastal flooding, respectively.

This compares to 400,000 poor Thai people in areas facing medium-to-high flood risk, where 33% of the land area is vulnerable to riverline flooding and 3.7% to coastal flooding.

Metro Manila and the Visayas showed 100% vulnerability to coastal and riverline flooding. In Thailand, poor people were susceptible to riverline flooding.

The data were shown using “geographically granular” data, which uses satellite-based maps and computer algorithms to help identify priority climate risk strategies.

“Granular data on vulnerability to climate change may reveal the unique environmental, economic, social, and political challenges faced by diverse places and populations. These data are crucial for targeting regions that require immediate intervention and assistance especially under budget constraints,” Mr. Martinez said.

However, 66% of statistics agencies from the Asia-Pacific reported constraints in the availability, timeliness, and granularity of climate-related data, ADB said.

The ADB noted that poorer countries have a higher level of climate risk. Low-income economies face the highest exposure to climate-related disasters but less coping capacity, while high-income economies are exposed less but have stronger coping strategies.

“Such disparities between income levels and capacity to cope are often mirrored within economies, where impoverished communities typically bear the brunt of climate risks and possess fewer resources to manage them,” according to the report.

The ADB said Asia-Pacific countries are now giving higher priority on environmental protection than economic growth.

“This preference tends to become more prevalent as an economy’s income level rises. In wealthier economies, a larger proportion of respondents favor environmental protection, even if it incurs potential economic costs,” it said.

According to the report, 56.5% of lower middle-income economies in the region said that protecting the environment is a priority even if it causes slower economic growth and some loss of jobs. This is also seen in 59.5% of upper middle-income economies and 61.8% high-income economies.

ADB Chief Economist Albert F. Park said there is a need for more partnerships to make sure vulnerable countries are ready for climate-related disasters.

“To address climate change, we’re going to have a hard time to be effective if we don’t have good data,” he told the webinar.

“I would really emphasize the need to harmonize how we define things because if everyone’s collecting data in a different way, it does become difficult to link our understanding and to learn lessons across countries.”

POOR FLOOD MANAGEMENT
The Philippine government should focus on science-based long-term solutions and risk avoidance strategies like flood forecasting to address the flooding problem, GlobalSource Partners country analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac said in a brief.

In late July, massive floods caused by Typhoon Carina and enhanced southwest monsoon exposed the government’s ineffective flood management strategies over the past decade, they said.

“Careful studies show that the root of the perennial flooding problem is continuity, or specifically, the lack of it,” GlobalSource said. 

In 2013, then-Public Works Secretary Rogelio L. Singson proposed a P351-billion flood control masterplan for 11 target areas in the country. However, the plan has not even reached 30% completion a decade since its conception, the Department of Public Works and Highways (DPWH) told senators recently.

“Records show that disbursements for flood control and management projects have decreased even as the budget allocation for these projects has been constantly increasing in the last five years,” GlobalSource said, citing Senate findings.

Citing a Senate press release, GlobalSource said 20% of the DPWH budget between 2020 to 2023 was allocated to flood management. This was increased to 25% in the 2024 budget.

However, the DPWH disbursed only 68.26% of its budget in 2021, 73% in 2022, and 58% in 2023, it said. — B.M.D.Cruz

Real Life Fiction and the blurring of boundaries

Piolo Pascual and Jasmine Curtis-Smith worked on a psychological drama during the pandemic

REFLECTING the internal conflicts in an actor’s mind, conveying the sense of isolation felt during the pandemic, and opening doors for challenging psychological dramas in the Philippines all describe the film Real Life Fiction.

The film follows Paco, a renowned actor (played by real-life celebrity Piolo Pascual) who loses his sense of self after years of being one of the most famous personalities in his time. When he decides to write, direct, and act in his most personal project yet, his on-and-off-screen muse Paula (played by Jasmine Curtis-Smith) becomes his crutch in navigating both real and fictional worlds.

Speaking at a Quezon City press conference on Aug. 21, Mr. Pascual said that this role is a huge responsibility as it is something he hasn’t played before — but also a relatable one that faces an actor’s life and existence head-on.

The R-rated drama thriller, directed by Paul Soriano and shot during the height of the pandemic, also stars Epy Quizon as Paco’s stern yet considerate manager, and filmmaker Lav Diaz in a small role as the truth-speaking owner of an eclectic pawnshop.

Made at a time where no one knew what would happen the next day, director Mr. Soriano’s pitch to the two actors easily struck a chord. Mr. Pascual in particular saw himself in the character of Paco.

However, the main difference between the actor and the character is that Mr. Pascual has learned to be in tune with himself. “It’s hard to kind of distinguish who you are in front of a cam or off-cam. It happens all the time because, of course, sometimes you’re too tired and your defenses are down. There are a lot of blurry moments, but you have to live with it and deal with it as much as you can because you don’t have any choice but to be the person that people expect you to be,” he said.

For Ms. Curtis-Smith, who has been consistently active in film and television for over a decade, the intriguing script and the chance to act alongside Mr. Pascual made the project easy to take on. She described the challenge of Paula’s role as learning to “say no to your reality but, at the same time, give life to it as if it’s not you.”

“I learned from Paula’s journey. When it came to Paco and addressing her problems and boundaries with him, there are things that apply to me as an actor that I can also use,” she said.

A PANDEMIC PROJECT
The film makes a case for what can be achieved with limited resources, with much of it taking place in the interiors of a hotel where the characters are staying.

“We shot this for a couple of weeks during the pandemic. The whole hotel was locked up so we weren’t allowed to leave. It was actually so much fun because everything was limited, so we really had to focus on our characters,” said Mr. Pascual.

He added that, despite the small team, everyone was fueled by the excitement of having work in the midst of the pandemic.

Meanwhile, Ms. Curtis-Smith took the unique conditions they were working under as a chance to use method acting, something she hasn’t really done before.

“Previously, I’ve been able to use other techniques or not really have to believe that I am the character. But with this, it was so easy for me to allow myself to become Paula because it was so close to reality and the proximity allowed us to work so closely with the material,” she said.

With that said, neither of the actors found the job difficult, with the main challenge being “getting used to shooting everything indoors only.”

TAPPING DIFFERENT MARKETS
The film is but one of many in the current phase of Mr. Pascual’s career, where he now has more freedom to do a variety of challenging roles. Like his character in the film, method acting is his style but also something to be wary of.

“The best work takes us to a different place. I wake up wearing a different hat every day, so there’s no other way but to move on,” he said at the press conference. “After I did Mallari [a time-bending horror film revolving around a serial killer] my director kept telling me that you have to shake this off, do something, go on vacation. The next day, I was ready to rehearse for a concert.”

On Ms. Curtis-Smith’s part, jumping from Real Life Fiction to the local K-drama adaptation of Descendants of the Sun was a welcome change. “I was really forced to cut off from playing this intense role of an actress and girlfriend caught up in a man’s emotions and existential problems,” she said.

Right now, she is starring in the teleserye Asawa ng Asawa Ko, which has been taping and airing for almost a year, allowing her to “easily separate from that role already.”

“The investment that you do as a character, sometimes it’s hard to shake off because your body doesn’t know that it’s not real. You have to consciously stop, put yourself into a mini therapy session, and say, ‘you know what, this is not you’,” she explained.

Both actors come from playing antagonists in horror movies — Mr. Pascual as the titular occult priest in Mallari and Ms. Curtis-Smith as the deceiving diwata in In My Mother’s Skin. Now taking on a psychological drama, they expressed their appreciation for “less mainstream roles.”

“The pandemic made me hungry for new roles and, with the emergence of streaming platforms, you have different markets you can tap,” Mr. Pascual said. “Some of the global access to content nowadays makes it easier for us to choose the right project. You’re not stuck anymore to one genre so we’re able to explore different genres.”

Produced by TEN17P, Viva Films, and Spring Films and distributed by Black Cap Pictures, the R-16-rated Real Life Fiction will open exclusively in SM Cinemas on Aug. 28. — Brontë H. Lacsamana

RFID system reliability needed before fines — senators

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Ashley Erika O. Jose, Reporter

THE radio frequency identification (RFID) system, which uses electronic tags to manage toll payments without physical contact, should be improved and made reliable before fines are imposed on motorists, two senators said on Thursday.

“Before imposing a penalty on our motorists, the RFID system must first pass the test of reliability, efficiency, and interoperability,” Senator Mary Grace Poe-Llamanzares said in a statement.

“As it is, motorists still complain — and we have personally experienced this — of devices that cannot read the RFID stickers,” she added.

The Toll Regulatory Board (TRB) has announced that starting Aug. 31, motorists without RFID tags will face fines of up to P5,000, while those with insufficient balances will be fined up to P2,500.

According to the TRB, motorists entering an access highway without an electronic toll collection (ETC) device will incur a fine of P1,000 for the first offense, P2,000 for the second offense, and P5,000 for subsequent offenses.

Motorists exiting toll expressways with insufficient account balances will be fined P500 for the first offense, P1,000 for the second offense, and P2,500 for subsequent offenses.

“The move to impose fines on motorists who do not have RFID or have insufficient load on tollways is anti-consumer and raises several important issues that must be addressed,” Senator Ana Theresia N. Hontiveros-Baraquel said in a statement.

“Kahit pwedeng irehistro ang Autosweep gamit ang Easytrip system at vice versa, walang full interoperability dahil kailangan pa rin na parehong may maintaining balance (Although it is possible to register Autosweep using the Easytrip system and vice versa, there is no full interoperability because both systems still require maintaining a balance),” she said.

“Iilan lang din ang loading stations at madalas, kailangan talagang puntahan sa expressways bago makapagpa-install o makapagpaload (There are also only a few loading stations, and often, one must physically visit expressways to install or reload),” she added.

Nigel Paul C. Villarete, senior adviser on public-private partnership at Libra Konsult, Inc., said that the public should be given sufficient time to comply with the new directive.

He said that the deadline for compliance could be extended to Sept. 15 or even Sept. 30.

Mr. Villarete also suggested retaining cash lanes for infrequent users of expressways.

“There will always be vehicle owners who wouldn’t want to acquire RFID devices because they are not regular users of tollways and may just need to pass through once,” he said.

He also proposed a system to remind users about their account balance to prevent fines and inconvenience.

Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said while imposing fines for motorists with insufficient funds is unnecessary, the penalty for non-RFID users is not surprising.

“That rule has always been there, since RFID was made mandatory for all toll users. Lopsided in favor of tollway operators, as it grants them free equity in hundreds of millions of pesos,” Mr. Santiago said.

“Also, the penalty is unnecessary because insufficiency can be recouped next time users reload,” he said.

Ms. Poe-Llamanzares noted that the congestion of vehicles at the expressway toll booths “manifests the unreliability of the system.”

“The regulator and the private entities running it must fix the current RFID woes and prove the technology of cashless payment will give our motorists a better travel experience than inconvenience,” she added.

From clothing to food: DTI trade fair offers original Filipino products

CELEBRITY HOST Issa Litton, DTI MSME Development Group Undersecretary Maria Cristina Roque, Special Guest Mrs. Winnie Chua-Go, and DTI Bureau of Market Development, Promotion and OTOP Director Marievic Bonoan.

HOME decor, food, jewelry, clothing: all Filipino, all under one roof. That’s what one can find at the Department of Trade and Industry’s (DTI) Bagong Pilipinas National Trade Fair (NTF).

The fair runs for four days from Aug. 21 to 25, at the Megatrade Halls 1 through 3 of SM Megamall in Mandaluyong.

During the opening ceremony on Ninoy Aquino Day, Aug. 21, DTI-Bureau of Marketing Development, Promotions, and OTOP Director Marievic Bonoan discussed this year’s theme: Go Green! Go Local! “This year’s theme… is more than just a tagline. It is a call to action, for all of us to support our local MSMEs (micro, small, and medium enterprises) who are committed to eco-friendly practices, and promote the use of sustainable materials,” she said in a speech.

Ms. Bonoan told BusinessWorld: “That’s the call of the times. We have to use our indigenous materials.”

There are 271 exhibitors offering items ranging from indigenous textiles from Abra through Namarabar Ethnic Products Shop, trophies and plaques made as you wait from Antipolo, woven handicrafts (and a giant sunhat) from Quezon, and bags encrusted with pearls from Batangas (and a set of shell-shaped minaudières crafted with capiz shells from Cebu). Other products we saw included hand-painted baro’t saya, clothes made from flour sacks, various bee-related products, Ifugao woodcraft, jewelry from Camarines Norte, and shoes from Marikina.

The fair also features halal products, coconut-based innovations for medical use and personal care, novelty items, holiday decor, and home furnishings.

They’re also quite affordable: only one of the items we bought cost over P1,000 (a bracelet); a packet of cacao tea cost P195, while a flour-sack kimono jacket cost P850.

“They were endorsed by the regional and provincial offices, and then there’s a screening committee represented by the private (sector) and the government,” said Ms. Bonoan about the selection of exhibitors.

The NTF will facilitate business matching and networking activities between MSMEs and institutional buyers, providing opportunities for collaboration and growth. The event will include the Philippine Sustainability Pavilion, the Coconut Philippines Pavilion, the KAPEtirya Coffee Pavilion, the RAPID Growth Project, and the Innovation and Services Cluster for government and private sector partners.

According to a statement, last year’s Hybrid National Trade Fair generated P42.06 million in sales. Last month’s National Food Fair brought in P61.3 million in cash sales, booked sales, and orders under negotiation, according to an announcement by the event’s host, Issa Litton.

DTI Acting Secretary Cristina Roque, the founder of the Kamiseta clothing brand, said in a speech, “Every product we support and every partnership we forge contributes to a larger movement: one that uplifts and builds a more vibrant economy. We will be opening nooks and areas in all Philippines embassies around the world to showcase and promote Philippine products for retail and wholesale buyers.

“For our MSMEs, remember: you are not alone in this journey,” she said. “The government, the private sector, and the entire nation stand with you.”

The NTF is open to the public and admission is free. Aspiring entrepreneurs can join future DTI-BMDPO fairs through their local DTI Office. They may also reach out to the Bureau of Market Development, Promotions, and OTOP by sending an e-mail to Ms. Bonoan at BDTP@dti.gov.ph. — Joseph L. Garcia

Malampaya group awards $180-M contract to support new well drilling

BW FILE PHOTO

THE MALAMPAYA consortium, led by Prime Energy Resources Development B.V., has awarded a contract worth approximately $180 million (about P10 billion) to a Netherlands-based offshore energy contractor.

The contract aims to support the execution of the planned drilling of new wells, Prime Energy said in a statement on Thursday.

Allseas Nederland (Brasil) B.V., a subsidiary of Allseas Group specializing in offshore pipeline installation, will be installing the pipeline and umbilicals to connect two new wells in the Camago and Malampaya East fields to the Malampaya Shallow Water Platform.

Prime Energy said that Project Sinagtala, an initiative to advance Phase 4 of the Malampaya deep-water gas-to-power project, aims to extend the life of the Malampaya gas field, which is expected to be depleted by 2027. 

“Project Sinagtala is expected to increase domestic gas supply and ensure consumers benefit from stable and reliable energy that is accessible to existing and new gas power plants, in line with the Philippine Energy Plan,” the company said.

The Malampaya consortium is composed of Prime Energy Resources Development B.V., which leads the project; UC38 LLC, an energy investment firm; Prime Oil & Gas, Inc., which focuses on upstream oil and gas operations; and the state-owned PNOC – Exploration Corp., a government entity responsible for the exploration and development of oil, gas, and coal resources in the Philippines.

It has secured a 15-year renewal of Service Contract No. 38 through 2039, paving the way for the exploration and development of additional gas reserves.

“As a service contractor to the government, we are committed to maintaining high standards of production and exploration that have defined the Malampaya project since its inception in 2001,” Prime Energy President and Chief Executive Officer Donnabel Kuizon Cruz said.

“By increasing our gas supply, we extend Malampaya’s life and sustain our own ‘sariling atin’ Filipino gas, always available and at a stable and predictable price,” she added.

In March, Prime Energy announced that it had awarded a $69.9-million contract to London-based Noble for the use of its deepwater drillship. The contract covers the drilling of two wells and a third exploration well, Bagong Pagasa. — Sheldeen Joy Talavera

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