STARTUP Packworks said it received P3.5 million in research funding from the Department of Science and Technology (DoST) to develop its artificial intelligence (AI)-powered inventory management tools for sari-sari stores.
In a media release on Thursday, Packworks said the funding from DoST- Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) will support its machine learning-powered marketing model.
The AI-powered capability will be launched as an in-app service on Packworks’ Sari.PH Pro app and is expected to benefit over 270,000 sari-sari stores nationwide.
Its app allows store owners to access pricing tools, inventory management, sales and revenue tracking, and working capital loans.
“Through this AI-powered model we will develop in partnership with DOST, we aim to equip small entrepreneurs with data-driven insights and targeted strategies for enhanced business success and expansion,” Packworks Chief Data Officer and project lead Andoy Montiel said.
Packworks said that sari-sari stores often struggle with financial management, a lack of actionable customer insights, and promotional campaigns, despite being the primary source of daily essentials for 94% of Filipinos.
“The current absence of a streamlined approach for receiving high-quality promotions, such as discounts or personalized item packages from FMCG manufacturers, restricts store owners from enticing and retaining customers effectively,” it said.
DOST-PCIEERD Executive Director Dr. Enrico Paringit said the collaboration shows the government’s commitment to fostering technological advancement and economic growth through strategic public-private partnerships, as outlined in the Innovative Startup Act.
The collaboration will run for 18 months and aims to reach more micro-retail stores across the country to boost their digital capabilities, entrepreneurial growth, and success.
In 2022, Sari IQ was a business intelligence tool providing real-time and historical consumer expenditure data to help retailers and brands gain visibility into sari-sari stores and expand their reach to more customers.
The analysis helps stores make data-driven decisions by understanding and predicting consumer demand within their area.
Sari-sari stores are part of micro-, small-, and medium-sized enterprises in the Philippines, accounting for 99.5% of all business establishments, of which 500,000 are in the wholesale and retail industry.
Packworks, launched in 2018, is an app that brings technology-based solutions to sari-sari stores. — Aubrey Rose A. Inosante
Corporate social responsibility (CSR) initiatives have long surpassed as a trend and now has become an essential component for businesses, as they are seen to carry the potential of delivering positive impact to communities.
An exemplary in such efforts, the MVP Group of Companies keeps breaking new ground in social impact. MVP Group’s dedication to social impact is essential to the group’s role not only as a leader in the business scene, but also in building a better future for its people and the planet.
For years, the MVP Group, and Manuel V. Pangilinan himself, has been well-known as a big supporter of positive and social change. The group emphasized the importance of conducting businesses for good through stewardship programs and CSR initiatives that reap national growth and development.
The MVP Group’s CSR footprint can be seen through organizations such as Metro Pacific Investments Foundation, Inc. (MPIF), Philippine Business for Social Progress (PBSP), the Philippine Disaster Resilience Foundation (PDRF), and the CSR arms of the companies under the MVP Group, where Mr. Pangilinan takes the lead in delivering the group’s contributions to sustainable development.
Conserving the environment
Photo from pbsp.org.ph
The group has been actively responding to the call for conserving the environment and mitigating the effects of climate change, as seen in its notable initiatives.
Leading the charge is MPIF, through its flagship program, Shore It Up!, which covers initiatives such as planting trees and mangroves and installing artificial reefs, among others.
More importantly, the foundation worked on marine projects, including sustaining the Tubbatha Reefs Natural Park, hosting multisectoral forums that tackles environmental issues, forming partnerships with the government for marine conservation programs, and rehabilitating the Mangrove Center in Del Carmen.
Recognizing the sustainable impact the project brought, Shore It Up! was then recognized at the 2024 CSR Guild Awards by the League of Corporate Foundations (LCF) as the Most Outstanding Corporate Social Responsibility Project in Environment.
Geared towards reforestation and protecting coastlines, the PBSP is in partnership with many conservation and protection programs that focus on tree-planting activities. Last year, a total of 5,000 mangrove trees were planted in Batangas aimed to fight climate crisis and reduce flooding and erosion.
In the area of solid waste management, PBSP, with its commitment to lead the business sector to environmental stewardship, has partnered with the Oriental and Motolite Marketing Corp. (OMMC) in a flagship program called the Balik Baterya Program. This program is designed to provide a platform for the private sector to responsibly dispose of used-lead acid batteries.
Sustainable power in remote areas
The Philippines is shifting towards renewable energy sources to reduce its reliance on coal power generation and move towards cleaner and eco-friendly options that lessens environmental impact.
In line with this transition, Manila Electric Company (Meralco) has developed an electrification program through One Meralco Foundation (OMF), the corporate social responsibility arm of Meralco. The program allows the company power and electrify thousands of Filipino households and businesses by adopting solar power technologies, providing them with more efficient and reliable electricity. According to the company’s annual report, Meralco has brought power to 75,000 low-income households and 300 remote public schools across the country.
Furthermore, as part of its commitment to bringing electricity to isolated communities, Meralco has also introduced solar rooftops and microgrid solutions. Because solar power produces lower fuel consumption, it is becoming the more eco-friendly and affordable option for both consumers and industries alike.
According to Meralco, these solar rooftops have been instrumental in powering up numerous establishments, including public, private, and educational institutions. In particular, Meralco focused on installing PV cells in 245 public schools located in remote areas of the country. These schools were then connected to the internet, equipping them with learning tools, including laptops and other multimedia learning tools. Recently, the program has powered 15 schools in Masbate and Samar, benefiting 175 teachers and 4,489 students.
Bringing greater value in educational programs
Moreover, Meralco believes that powering schools, alongside providing better educational tools and empowering students to grow and expand their skills and learning, is a crucial step towards achieving an energy-secured future.
With its commitment to create venues for learning in the electric power industry, Meralco’s Energy Education Program, developed in 2015, has continued equipping teachers with educational tools on energy conservation awareness and responsible energy consumption.
In the water sector, meanwhile, Maynilad, the largest water provider in the Philippines, is also doing its part to promote environmental practices, such as proper water management within schools.
Last year, Maynilad’s educational program and campaign has successfully taught 2,500 high school students and visited 36 high schools across different cities teaching students on proper wastewater management and sanitation practices. Since its development in 2016, Maynilad had produced modules on wastewater education for 166 schools. With this initiative, Maynilad is taking proactive steps in educating young people on the importance of environmental responsibility for a more sustainable future.
Also ensuring better quality of education, MPIF, in partnership with Mano Amiga, grants 30 student scholarships, covering school expenses, miscellaneous fees, and other activities. Established in 2011, this program, the Annual Excellence Fund, is designed to make a more significant impact on children and ensure they receive the quality education that they deserve.
With the goal of providing more educational opportunities to learners, the foundation has also worked to provide schools with inclusive and disaster-resilient classrooms. The Classroom Construction Support Program increased access to education by providing more classrooms for students. This program is a continuous collaborative effort between the government of Australia, Department of Foreign Affairs and Trade (DFAT) and the Department of Education (DepEd). Through this partnership, a total of 302 classrooms were built in disaster-prone locations, enhancing their capacity to accommodate more students.
Uplifting healthcare services
Photo from pbsp.org.ph
Providing better access to healthcare services among Filipinos is another key area where MVP takes initiative.
For instance, in many years, PBSP has been a key player in tuberculosis (TB) control management in the Philippines. Focusing on reducing TB cases, the ACCESS TB project, funded by the Global Fund, is offering comprehensive quality TB care to Filipinos. This project expands access to healthcare centers, providers, and treatment services.
Adding to the continued medical assistance for Filipinos, Alagang Kapatid Foundation, the CSR arm of MediaQuest-led TV5, seeks to provides more access to medical and social services to Filipinos. Among its initiatives includes blood donation drives across different cities, distribution of medicine supplies, and free doctor consultations, among others.
Disaster response and resilience
Photo from mpifoundation
Another notable effort by the MVP Group is their response to climate disasters, especially given the heavy toll of natural disasters in the Philippines. Particularly, the group’s telecom companies are stepping up to help individuals to stay connected.
PLDT is actively helping communities through its Disaster Resilience Advocacy, equipping communities with disaster preparedness and emergency skills, providing communication aid, and facilitating access to information for agencies and government units.
As of March 2024, in efforts to further prepare communities from disasters, the group distributed 56 Ligtas Kits to local government units (LGUs) that are prone to disasters and trained 52 LGUs on emergency communications. They have also put up 88 emergency calling stations, distributed 21, 615 relief aid to affected communities, and has partnered with the Philippine Disaster Resilience Foundation to improve the early warning system for tsunamis in the Philippines.
PLDT, alongside its mobile service subsidiary Smart Communications, Inc. (Smart), has journeyed to different typhoon-affected communities distributing emergency kits, hygiene and sleeping kits, food, relief packages, water, medical services, and communication tools.
Recognizing the importance of communication during disasters and emergencies, under its advocacy of #SafeandSmart Philippines, Smart has been leveraging network and technology to ensure continuous network resilience, availability of communication services, mobile solutions, and activities. In times of disasters, Smart provides emergency alerts, emergency services, including free calls, load, and charging services, and even satellite phones to help people stay safe and connected. This initiative is designed to help local communities and government units in providing swift response and relief assistance to help communities mitigate disaster risk.
Further strengthening disaster resiliency in the country, the Philippine Disaster Resilience Foundation (PDRF) is leading the private sector’s initiatives for disaster risk reduction and management in the country. It designs and implements programs related to community resilience and recovery, as well as promote education and progress in disaster management.
Some of the foundation’s recent accomplishments include receiving over US$2 million in grants and donations from various local and international partners in 2022. These funds were used to carry out disaster response initiatives, implement development programs, and provide assistance to more than 3.5 million people through emergency preparedness projects.
In addition to climate-resilient initiatives, MPIF is extending a helping hand to Filipinos affected by the calamities. MPIF’s recovery projects are focused on improving livelihoods, ensuring food security and climate resilience, and promoting environmental sustainability and disaster resilience.
Following the disastrous aftermath of Super-Typhoon Odette in 2021, the group, along with MVP and his other companies, has raised a total of P30 million, which was used for relief efforts to affected communities.
This year, the foundation is continuing its efforts to support post-Odette recovery programs, with the goal of complete recovery and rebuilding these affected communities. — Angela Kiara S. Brillantes
“Thank heaven for a man who makes up his mind,” says M to James Bond in Moonraker. Which isn’t prosaic at all. A lot hinges on knowing what one wants and in the realm of international policy, this could ultimately mean success or failure.
The same is true in what lies before us in the West Philippine Sea. The Marcos Administration, taking a firmer stand against China’s attempted encroachment of our territories, initiated “assertive transparency” towards the regional bully. It did attain some success, particularly in shedding light over the arrogant international law violations of the latter. But transparency is not a strategy but a tactic. And clearly, it’s not a goal. Of this Lucio Blanco Pitlo III made a cogent observation:
“Reaction to China’s behavior in the South China Sea defies Beijing’s desire to keep the hotspot under wraps. But between weathering reputational costs abroad and placating growing domestic nationalist expectations at home, Beijing [has] made clear who its primary audience is. Besides, China may calculate that international pressure will wax and wane and may peter out. For the Philippines, drawing attention to the flashpoint to gather international support comes at the expense of straining ties with its largest trade partner and the risk of engendering reliance on external support for its security.” (“Deep hazards for China as dispute goes global,” South China Morning Post, July 2, 2024).
This was echoed by RAND senior defense analyst Derek Grossman: “Manila recently adopted a strategy of ‘assertive transparency’ toward Chinese encroachments into its EEZ (exclusive economic zone). Philippine ship crews are now recording each incident of Chinese coercion and publicizing it for the world to see. The idea is that Beijing will no longer be able to deny its actions as it has done in the past — and perhaps be shamed into adhering to international law.” However, “none of these measures have been successful against gray-zone tactics so far, and any future success is likely to take more time as Beijing continues to eat away at Manila’s EEZ.” (“How to respond to China’s tactics in the South China Sea,” June 3, 2024).
Which leads us to asking what is the end we are seeking? What is our purpose in keeping up this struggle against China? For China, the answer has been made quite clear and that is to assert dominance over the entire South China Sea, including that of the West Philippine Sea. But for the Philippines?
Various answers have been proffered, many revolving around variations of reverting to Filipino fishing rights as of 2016 or 2013. But that is neither here nor there. And a bit shortsighted. For the Philippines, in a game that is normally played out in centuries rather than merely a handful of years, complete and utter sovereign control by our country over every island, rock, and waters that it has claimed or claims should be the objective.
Hence, some initial recommendations:
1. Categorically declare China’s action as an “aggression” involving an “armed attack” in violation of international law.
2. In coordination with our security allies, raise the issue of China’s aggression in the West Philippine Sea before the UN General Assembly, as provided for under the “Uniting for Peace General Assembly resolution 377 (V).”
We should ask for a binding security resolution a.) demanding China stop its aggression in the West Philippine Sea, b.) that China abide by the Arbitral ruling, and, c.) demand that, in case China violates a.) and b.), that UN members take all necessary measures to compel China to comply with said resolutions.
3. File cases under the United Nations Convention on the Law of the Sea or UNCLOS for violation of environment provisions. Cases can be also filed under the World Trade Organization (WTO) Agreements for trade related cases, including trade related cases involving damage to the environment.
4. Shun any public announcement regarding upcoming Rotation and Resupply missions. The point is to publicly assert Philippine prerogative over our territory, without need of foreign permit.
5. Any event similar to what happened in Ayungin Shoal on June 17 should be met with proportionate countermeasures, including the summoning and severe reprimand of China’s ambassador, as well as the expulsion of core Chinese diplomatic officials, starting with their defense attache.
6. Legislate an effective government succession plan (see my column, “Presidential succession and the war cabinet,” May 24)
7. “Revise the US-Philippines treaty to reflect modern gray-zone threats. Rather than vaguely highlighting an ‘armed attack’ as the prompt for US military intervention, Manila and Washington could broadly note that gray-zone activities could or would count as armed attacks.” (See Grossman)
8.Order the Department of Justice to be more aggressive in the prosecution of illegal Chinese visitors or legal Chinese visitors engaged in unlawful activities, including activating the national security clauses in the Customs Modernization and Tariff Act, the WTO and ASEAN agreements, bilateral investment agreements, as well as the anti-money laundering law to confiscate, regulate, monitor, or stop investments, financing, or trade from foreign countries that are compromising our national security.
9. Prosecute Filipinos engaged in disseminating foreign propaganda compromising our national security or mitigates national resolve to defend our country, particularly those paid to do so by said foreign countries. This is with emphasis on propogandists in social or traditional media, universities, business associations, including government offices and especially the military. Presently there is Commonwealth Act No. 616, PD 79, and the Revised Penal Code on sedition. There is a need to legislate criminalizing treason during peacetime, as well as updating the said CA 616, to revive the anti-subversion law, and revive, expand, and enforce a national security act.
10. Institute massive investment and tax incentives for industries or businesses that will bolster our self-reliant defense posture, including tax write-offs for donations (in money or in kind) to the military, including donations from local industries of security allies.
11. Revive the Reserve Officers’ Training Corps or ROTC for all college age individuals and institute mandatory military service for all Filipinos aged between 23 and 35 years of age.
12. Legislate de-risking from China of our energy and water industries, including diversification thereof. A national security act should be legislated allowing for the immediate takeover and control of private businesses essential to uphold national security, including energy and fuel, water, media, essential food and other household commodities, and transportation.
We need to be confident that our constitutional system allows us the flexibility to protect ourselves. We should not be shackled by mistaken understandings of the freedoms of speech, liberty, and property so that such freedoms are not used against us by countries that do not respect those rights.
Ultimately, the right to defend ourselves is inherent. We should not constrain ourselves by tentativeness or insecurity in doing whatever needs to be done to protect our people, territory, and sovereignty.
The views expressed here are his own and not necessarily those of the institutions to which he belongs.
Jemy Gatdula is the dean of the Institute of Law of the University of Asia and the Pacific and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence. He read international law at the University of Cambridge.
THE dramatic conclusion to a serialized story about a father who murders his daughter’s abusive partner is set to debut this month on Disney+. After captivating audiences with the series adaptation of the hit manga series, My Home Hero the Movie concludes the acclaimed crime thriller. It briefly topped box offices in Japan. Set seven years after the series, the movie follows businessman Tetsuo Tosu, who evades imprisonment after killing his daughter’s abusive boyfriend by throwing the police off his scent and dealing with gang leader Kyoichi Majima. It stars Kuranosuke Sasaki, Asuka Saito, Tae Kimura, and Kyohei Takahashi. The movie is on Disney+ starting July 12.
Ice Seguerra, Joey G, Noel Cabangon reunite
EARLY this year, Newport World Resorts gathered OPM stars Ice Seguerra, Joey G, and Noel Cabangon for their first collaborative concert. The talented acoustic trio will be back for Strings and Voices: The Repeat on July 20 at the Newport Performing Arts Theater. This time, their solo turns and collaborations will include new surprises. Strings and Voices: The Repeat tickets, ranging in price from P1,500 to P8,500, are now available at all TicketWorld outlets.
Royal Caribbean to be showcased at travel expos
TO cater to a growing demand for cruises, Royal Caribbean will be participating as a key exhibitor at two travel expos in the Philippines this July. From July 12 to 14, it will set up shop at the Travel Madness Expo at the SMX Convention Center, Pasay City. From July 19 to 21, it will have a booth at the Travel Tour Expo VisMin, at the Limketkai Mall, Cagayan de Oro City. Visitors can explore Royal Caribbean’s stalls at the expos to learn about their cruise offerings across the globe.
Felip releases album ahead of July concert
THE newest album of Filipino musician Felip, 7sins, has been released. While not religion-centric, the album is a journey of acknowledging human shortcomings. It is composed of nine songs, with “envy” as the title/focus track and “ache” as the final track. Despite being busy with SB19 engagements, shoots, and projects, Felip spent seven months writing, recording, and mixing the album, with late night sessions with Luke April of PLAYERTWO and Isagani Palabyab. It also features collaborations with artists like Belgian-Filipino Cyra Gwynth on the tracks “greed” and “lust.” Meanwhile, PLAYERTWO collaborated on the song “gluttony.” The album has been released ahead of Felip’s 7sins the Album Concert on July 27, to be held at the Space at One Ayala, Makati City. Tickets are available via felip.helixpay.ph.
Century Tuna awards Superbods 2024 winners
TUNA brand Century Tuna has named Jether Palomo and Justine Felizarta as the Grand Winners for Century Tuna Superbods 2024 #BestYouEver competition. Besting 36 finalists, fitness influencer and Mister Tourism World Philippines Mr. Palomo and the beauty and fitness enthusiast and Miss Tourism World 2022 1st runner-up Ms. Felizarta will each take home P500,000 tax-free.
Drag Race Philippines 3rd season set for August
THE third season of drag queen competition series Drag Race Philippines will be coming to HBO GO on Aug. 7. Paolo Ballesteros, multi-awarded Filipino actor, model, and drag artist, is returning as the series host. Following the success of seasons one and two, the showcase of Pinoy drag excellence returns with 11 more Filipino drag artists: Angel, John Fedellaga, JQuinn, Khianna, Maxie, Myx Channel, Popstar Bench, Tita Baby, Versex, Yudipota, and Zymba Ding.
Five of our newly hired workers resigned within three months after deployment. What’s wrong with our hiring practices? And what’s the cure? — Change Agent.
Let’s understand the context of your situation. How many new hires are similarly situated? My rule of thumb is — if the five resignees represent only 3% or less of the total number of new hires in the same period, then it’s not yet an alarming situation. At least not yet, unless it becomes repetitive over the long term.
If you’re asking me what’s wrong with your hiring process, I can only speculate since I’m not privy to your situation. On top of my mind is the compatibility of the new hires with your culture and management style. This can only be determined when you ask the right interview questions to applicants.
During the process, did you test the applicants for their comfort level working in your culture? Are the applicants likely to be accepted by the group and invited to participate in activities outside of work like socials, sports, and volunteer initiative?
Did you check whether the applicants are participating meaningfully and are not made to feel like outsiders struggling to fit in?
These aspects are often neglected because you are focused on testing the applicants’ competence, rather than their compatibility with the organization over the long term. This often results in the applicants’ estrangement after receiving little support from their colleagues.
PROBABLE CURE Before deciding on a cure, the probable root cause of the applicants’ estrangement must be determined. As I said, it often boils down to the absence of a compatibility assessment in the hiring process. This involves the human resources (HR) department and the requesting department joining hands in predicting whether the applicant is a good fit for the organization.
To do this, the two departments must do double validation to arrive at a reasonably accurate conclusion using various sets of interview questions, to be addressed only to the top two candidates in the short list. A number of topics need to be explained to the shortlisted candidates. These are:
One, corporate mission, vision, and value statements. This is imperative. Unfortunately, many incumbent managers don’t know them by heart. That’s why they are not usually covered during the interview and onboarding process. In extreme cases, they don’t know how to provide examples.
Even if they do, they struggle for words and come off as lousy managers. The interview questions to be asked is: How well do you accept our mission, vision, and value statements? How would you do your share in implementing them?
Two, measurement of individual and group success. This is about evaluating and recognizing workers’ performance. The interview questions to be asked include: How do you expect an individual contribution to be appreciated compared to group achievements?
How would you manage “groupthink?” How would you handle a workplace bully or a senior worker forcing you to do things his way? How would you describe an objective evaluation process?
Three, leadership skills and style. Managers vary in style.Some allow people to be empowered in problem-solving and decision-making. On the other hand, prefer to do the opposite, treating their direct reports like robots. The interview questions to ask are: How does an applicant manage a toxic and micromanaging boss? If a toxic boss doesn’t want to change their style, then what would be your course of action?
Four, nature of the operating environment. This covers ideal situations where people can be made to work effectively. The questions to be asked include: What factors would determine your success in our organization?
Conversely, what factors would make you fail in such environment? How would you do in managing the issues?
Five, change management philosophy. Even if the vacancy is for non-management workers, it would be best to determine their management aptitude as you’re preparing them for the long-term. The applicable questions are: What are the first things you plan to focus on in the first month of your employment?
If there are systems and procedures that are not to your liking, how do you intend to manage them?
As an interviewee, these basic questions will arm you with considerable understanding of the shortlisted applicants’ profile. Using them will help you predict the reactions of the new hires when they start working for your organization.
Bring Rey Elbo’s Kaizen Problem-Solving Workshop to your line leaders. Guaranteed to bring you millions of savings or you don’t pay. Contact him on Facebook, LinkedIn, X or e-mail elbonomics@gmail.com or via https://reyelbo.com
The Philippines’ overall score improved by 3.66 points to 67.15 (out of 100) in the latest edition of the Mobile Connectivity Index by nonprofit organization GSM Association (GSMA). The index assesses and tracks the performance of countries against the equally weighted key enablers of mobile internet adoption, namely, infrastructure, affordability, consumer readiness, and content and services. A higher score means a more enabling environment for delivering mobile internet. The country has also moved up to “advanced” cluster after performing well with three enablers.
THE MAIN INDEX surged to the 6,600 level on Thursday ahead of the release of June US consumer price index (CPI) inflation data, which could bolster bets of a September rate cut by the US Federal Reserve.
The benchmark Philippine Stock Exchange index (PSEi) went up by 1.84% or 119.89 points to end at 6,609.24 on Thursday, while the broader all shares index increased by 1.3% or 45.64 points to close at 3,555.68.
This was the PSEi’s best finish and marked its return to the 6,600 level for the first time in over a month, or since it closed at 6,619.89 on May 24.
“The local index rose strongly with Asian markets on the back of a record rally in US stocks, fueled by bets that US June inflation data will reinforce expectations of Federal Reserve interest rate cuts starting in September,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
“With the PSEi closing above 6,600 on healthy volume, we may see trading momentum and positive sentiment lift the market toward the 6,700 resistance in the coming sessions,” Mr. Colet added.
Markets are expecting June US CPI to be lower than the consensus estimate of 3.1%, AB Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.
“Recent economic data point toward weakness in demand, such as lower-than-expected PMI (purchasing managers’ index) numbers and a rise in the unemployment rate. These indicators suggest the possibility of easing monetary policy in the US, which has reduced pressures on the local market,” Mr. Vistan said.
Asian stocks rallied to record peaks on Thursday as traders counted down to US data that is expected to show inflation easing and pave the way for rate cuts as soon as September, Reuters reported.
Japan’s Nikkei rose 1% to a record high of 42,426.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.2% to a two-year high. Taiwan stocks hit a record peak and Australia’s ASX 200 closed within a whisker of its all-time top.
Fed Chair Jerome H. Powell told lawmakers on Capitol Hill overnight that “more good data” would build the case for the US central bank to cut interest rates. Futures pricing implies about a 75% chance of a cut in September.
All sectoral indices closed higher on Thursday. Holding firms jumped by 2.34% or 129.74 points to 5,661.28; industrials rose by 1.85% or 166.96 points to 9,188.81; property went up by 1.66% or 42.42 to 2,584.08; mining and oil gained 1.30% or 110.61 points to end at 8,572.60; services climbed by 1.22% or 24.62 points to 2,035.43; and financials increased by 1.1% or 21.97 points to 2,014.96.
Value turnover rose to P6.8 billion on Thursday with 427.66 million shares changing hands from the P6.22 billion with 413.15 million issues traded on Wednesday.
Advancers overwhelmed decliners, 117 versus 68, while 60 names closed unchanged.
Net foreign buying stood at P68.47 million on Thursday versus the P202.79 million in net selling recorded on Wednesday. — S.J. Talavera with Reuters
THE Board of Investments (BoI) said on Thursday that it approved P950 billion worth of proposed projects in the first six months.
The first half total is up 36.1% from a year earlier, the BoI said in a statement.
The bulk of the investments approved in the six months to June were from domestic sources, while 30%, or P286 billion, originated from overseas.
Trade Secretary and BoI Chairman Alfredo E. Pascual said that despite a 37% drop in foreign direct investment (FDI) for the period, he remains optimistic with the investment pipeline continuing to build up.
“Our confidence in the Philippine economy remains unshaken, supported by a 19% increase in FDI over the first four months of the year compared to last year,” Mr. Pascual said.
“We are also banking on the investment pipeline built from the BoI’s high level of foreign investment approvals,” he added.
The central bank reported on Wednesday that FDI net inflows slumped to a 10-month low in April to $556 million from $881 million a year earlier.
Meanwhile, four months to April FDI net inflows rose 18.7% to $3.53 billion.
Renewable energy investments continued to account for the biggest portion of the approvals, with the electricity, gas, steam, and air conditioning supply sectors making up 96.3% of the total.
The agriculture, forestry, fishing, and real estate industries also saw growth in potential investments during the period.
Region IV-A (Calabarzon) accounted for P592 billion of the approvals. Other top destinations were Region VI (Western Visayas) and Region III (Central Luzon).
For the Philippines to keep attracting global investments, Mr. Pascual cited the need for continuous promotion and streamlining of administrative processes.
“Our strategic focus on enhancing the ease of doing business and providing robust support for high-potential sectors is more crucial than ever,” he said.
“These efforts are pivotal in ensuring the Philippines remains a top-tier investment hub in Asia,” he added. — Justine Irish D. Tabile
THE Israeli ambassador said 10 companies from his country are currently considering agriculture technology ventures in the Philippines, noting the opportunity to raise production in rice, which the Philippines currently needs to import, and in high-value crops, where export potential is limited due to inadequate volumes.
“The challenge here is more about identifying resources in order to have the joint ventures, or co-investments,” Ambassador Ilan Fluss said on the sidelines of an agriculture forum on Thursday.
He added that Israeli companies have taken note of the challenges the Philippines is experiencing in rice and various high-value crops, to the extent that farmers cannot meet domestic demand.
The Philippines imports 20% of its rice requirement. It also imports, among others dairy, meat, and corn, where domestic production falls short of demand.
“Through implementing innovative technologies, productivity can grow,” he said.
He described the potential investors as representing “a wide range,” though some of them “are really new to the market and looking for new opportunities as part of their global expansion.”
He said Israeli companies can supply agricultural technology or services with the help of local partners.
He noted that the rate of technological adoption by small-scale farmers has been slow.
“I do recognize that really small-scale farmers, especially in the rice sector, have difficulty engaging in modern or commercial farming,” he said, noting the broader difficulties in integrating such farmers into the mainstream economy.
THE Sugar Regulatory Administration (SRA) said it plans to allow exporters to start deliveries of raw sugar by August to meet the US quota.
SRA Administrator Pablo Luis S. Azcona quoted the sugar industry as saying that increased production will allow it to meet the US quota of 25,000 metric tons (MT).
According to the SRA, raw sugar production was 1.92 million metric tons (MMT) as of May 12, exceeding the 1.799 MMT brought in a year earlier.
“Sugar exports need to arrive (in the US) by September… they should start shipping out by August,” he said in a briefing on Thursday.
Mr. Azcona added that the SRA had sent out a draft sugar order (SO) to the industry for comment.
“After that, the board will deliberate on all the comments and suggestions, and we will come up with an SO for it,” he said.
The US grants the Philippines an export quota of 25,300 metric tons raw value of raw sugar at a favorable tariff. The Philippines has until Sept. 30 to fill the quota.
Exports of raw sugar to the US are optimized to stabilize prices during times of overproduction.
“This year, we didn’t do it in January-February because the US quota was issued in April. For now, so that we will not be a default of our commitment to them, we will export,” Mr. Azcona added.
During crop year 2023-2024, all raw sugar was classified “B” sugar or for domestic consumption, according to SO No. 1.
The Philippines last shipped raw sugar to the US during the 2020-2021 crop year, amounting to 112,008 MT of commercial weight raw sugar. The country has not exported sugar to the US since then due to domestic supply concerns.
The SRA has said that exporters have prequalified for the planned export program after participating in the voluntary purchase program authorized by SO No. 2.
The order called for the voluntary purchase of domestically produced sugar in order to stabilize farmgate prices. Participants were also eligible for an allocation in a future import program.
He said that about 20 exporters have volunteered to meet the US export quota, but cited the need for a replenishment program through imports.
The SRA’s replenishment program allows exporters of raw sugar to the US to import refined sugar in approved volumes.
Last month, the Department of Agriculture said it was planning to allow imports of about 200,000 MT of refined sugar to plug a possible supply gap before the start of the milling season on Sept. 15. — Adrian H. Halili
ILOILO CITY — US-based energy storage firm Amber Kinetics said that it is looking to invest at least $300 million for its expansion, including a $100-million capacity expansion for the Philippines.
At the US Embassy’s 16th Media Seminar on Tuesday, Amber Kinetics Chief Executive Officer Edgar O. Chua said that a further $200-300 million in investments will be made in the US.
“We are currently (fund-raising) both in the US and in the UK – London and New York, essentially,” he said, adding that it is seeking to tap sovereign wealth funds and investment companies.
Asked about plans to list, he said: “The initial public offering may come three to five years down the road once the company has demonstrated sustained profitability and growth because then we will have good pricing.”
Amber Kinetics’ expansion in the Philippines involves a four-and-a-half-hectare site where the company’s third plant will rise. It is targeted for completion by 2025.
“That plant will have a capacity of maybe 30,000 units, so together with our existing facility, which has a capacity of about 10,000 units, the Philippines will have a capacity of about 40,000 units,” he said.
However, he said that the expansion is still at the due diligence stage, with negotiations ongoing with the site owner, adding that the site used to be operated by a South Korean manufacturer.
For its expansion in the US, Mr. Chua said that the target is for its plant there to be operational in 12–18 months.
“We have prioritized about five to 10 areas in the US, and we are looking at putting up maybe two or three plants,” he said.
He said that the number of plants that it will put up in the US will depend on the company’s profits but noted that each plant in the US will have a capacity of 40,000 to 50,000 units.
Meanwhile, he said that there are also plans to put up a plant in Australia.
Amber Kinetics currently operates two manufacturing plants in economic zones in Batangas. — Justine Irish D. Tabile
The Philippines is shifting towards renewable energy sources to reduce its reliance on coal power generation and move towards cleaner and eco-friendly options that lessens environmental impact.
Moreover, Meralco believes that powering schools, alongside providing better educational tools and empowering students to grow and expand their skills and learning, is a crucial step towards achieving an energy-secured future.
