Jasser June Cruz participates in Go Negosyo Tourism Summit 2024: Promoting economic empowerment and local development

June 21, 2024 | 11:30 am

Jasser June Cruz, a key advocate for livelihood program, attended the Go Negosyo Tourism Summit 2024. This summit brought together industry leaders, policy makers, and entrepreneurs to discuss tourism’s future and its impact on community development and economic growth.

Cruz participated in various sessions, gaining insights into sustainable tourism practices crucial for long-term economic benefits and preserving cultural and environmental heritage. He emphasized integrating these practices into local programs to ensure both profitability and sustainability.

He also highlighted the potential of digital platforms to promote local tourism. Using social media, online marketplaces, and virtual tours can help communities reach a broader audience and boost revenue. Cruz expressed enthusiasm for incorporating these tools into his efforts to empower local entrepreneurs.

Networking was a significant aspect of Cruz’s participation. He connected with potential partners, including eco-tourism organizations, digital marketing firms, and government agencies. A promising partnership with an eco-tourism organization is expected to bring new training programs and resources to local communities. Additionally, discussions with digital marketing experts will provide local entrepreneurs with the skills to promote their businesses online.

Cruz’s attendance at the summit underscores his commitment to fostering community growth through innovative and sustainable programs. By integrating the latest trends and forming strategic partnerships, the initiative aims to create lasting positive change.

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Japan has no right to meddle in China-Philippines maritime issues, says Chinese embassy in Japan

June 21, 2024 | 11:08 am

west-philippine-sea-south china — PHILEMBASSY.NO

BEIJING – Japan is not a party to the South China Sea issue and has no right to intervene in China–Philippines maritime matters, a spokesperson for China‘s embassy in Japan said on Friday.

Japan‘s foreign ministry said this week that it was seriously concerned over repeated actions that obstruct freedom of navigation and increase regional tensions, including recent dangerous actions that damaged a Filipino vessel and injured Filipinos onboard.

The Philippine foreign ministry has denounced as “illegal and aggressive” China‘s actions during a routine resupply mission on Monday, which the Philippine military said severely injured a navy sailor and damaged Manila’s vessels.

China denied the allegations as the two countries square off over the Second Thomas Shoal, a disputed atoll inside the Philippines‘ exclusive economic zone in the vast South China Sea.

“We express our strong dissatisfaction and resolute opposition to the fact that the Japanese side has once again made erroneous remarks on the South China Sea issue that manipulate right and wrong, and make unreasonable accusations against China,” the spokesperson said.

China claims almost all of the South China Sea as its own, infuriating neighboring countries. The Permanent Court of Arbitration in 2016 found China‘s sweeping claims have no legal basis, a ruling Beijing rejects.

Japan said it has consistently advocated upholding the rule of law at sea, and will continue to work with the international community, such as ASEAN member states and the United States.

“Japan‘s cooperation with the United States and the Philippines must not undermine China‘s territorial sovereignty and maritime rights and interests,” China‘s spokesperson said in a statement.

The US, Canada, Japan, and the Philippines recently wrapped up a two-day joint maritime exercise in Manila’s exclusive economic zone in the South China Sea. – Reuters

PHL posts $2-B BoP surplus for May

June 21, 2024 | 12:35 am

dollar currency — US one-hundred-dollar notes are seen in this picture illustration taken in Seoul Feb. 7, 2011. — REUTERS

By Luisa Maria Jacinta C. Jocson, Reporter

THE COUNTRY’S balance of payments (BoP) position swung to a surplus in May, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The central bank reported that the BoP position stood at a surplus of $1.997 billion, a turnaround from the $439-million deficit a year ago.

The country had a $639-million gap in April, while May saw the biggest monthly surplus since $3.081 billion in January 2023.

The BoP shows a glimpse of the country’s transactions with the rest of the world. A surplus shows that more funds came into the country, while a deficit means more money fled.

“The BoP surplus in May 2024 reflected inflows arising mainly from the National Government’s (NG) net foreign currency deposits with the BSP, which include proceeds from its issuance of Republic of the Philippines global bonds, and net income from the BSP’s investments abroad,” the central bank said.

The government raised $2 billion from its issuance of the dual-tranche, 10- and 25-year fixed-rate dollar bonds in May. It was the Philippines’ first global bond sale this year.

In the first five months, the BoP surplus shrank by 44.3% to $1.596 billion from $2.866 billion a year ago.

“Based on preliminary data, this cumulative BoP surplus reflected mainly the narrowing trade in goods deficit alongside the continued net inflows from personal remittances, net foreign borrowings by the NG, foreign direct investments, foreign portfolio investments, and trade in services,” the BSP said.

Latest data from the local statistics agency showed the trade deficit shrank by an annual 15.7% to $16.27 billion in the January-to-April period.

At its end-May position, the BoP reflects a gross international reserve (GIR) level of $105 billion, up by 2.3% from $102.6 billion as of end-April.

The level of dollar reserves was enough to cover 7.7 months of imports and payments of services and primary income. It was also about 6.1 times the country’s short-term external debt based on original maturity and 3.8 times based on residual maturity.

An ample level of foreign exchange buffers safeguards an economy from market volatility and is an assurance of the country’s capability to pay debts in the event of an economic downturn.

Security Bank Corp. Chief Economist Robert Dan J. Roces said the growth in cash remittances would help support the BoP position.

“This bodes well for the Philippine peso as it suggests a healthy balance of payments surplus. While the peso has weakened slightly so far this year, a potential rise in tourism and business process outsourcing (BPO) could help it recover,” he said in a Viber message.

Separate BSP data showed that cash remittances rose by 2.8% to $10.782 billion for January to April.

In May, the peso sank to the P58-per-dollar level for the first time since November 2022.

“We expect a BoP surplus for the year and a slightly stronger peso by yearend,” Mr. Roces added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the BoP position could improve and lead to an increase in gross international reserves in the coming months.

Mr. Ricafort said this could be due to global bond issuances this year, as well as official development assistance.

The government’s borrowing plan is set at P2.57 trillion this year, 25% of which will come from foreign sources.

Mr. Ricafort also cited the continued growth in OFW remittances, BPO revenues, foreign tourism receipts and other structural US dollar inflows as factors that will boost the BoP position.

The central bank projects a BoP surplus of $1.6 billion this year, equivalent to 0.3% of gross domestic product.

Employers seek delay in wage increase

June 21, 2024 | 12:34 am

Wage hike-protest-wc — Labor groups hold a rally calling for a P150 wage hike, as the Regional Tripartite Wages and Productivity Board - National Capital Region held a hearing in Quezon City, June 20. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Chloe Mari A. Hufana

A GROUP of Philippine textile exporters on Thursday asked the local wage board to delay a proposed wage increase in the National Capital Region (NCR) by a year, saying they have yet to fully recover from losses caused by the pandemic.

This as the Regional Tripartite Wages and Productivity Board – National Capital Region (RTWPB-NCR) on Thursday concluded its first and last public hearing for the proposed wage hikes, which ranged from P100-P750.

“The final part will be wage deliberations. Here, we will discuss the basis for a wage increase and what will justify the amount of the increase,” Board Chairperson Sarah Buena S. Mirasol told reporters after the public hearing.

The wage board is set to release its decision on or before July 20, the anniversary of the last wage order in the capital region.

The daily minimum wage in NCR is P610 for nonagriculture and P573 for agriculture, service/retail establishments with 15 workers or less, and manufacturing establishments regularly employing fewer than 10 workers.

At the hearing, the Confederation of Wearable Exporters of the Philippines (CONWEP) sought a one-year moratorium on wage hikes in NCR saying the garments export industry is still struggling.

A one-year moratorium would allow exporters to fully recover and preserve the jobs of factory workers until orders stabilize by 2025, CONWEP Associate Director Rosette D. Carillo said.

“Major global markets like the US and EU are buying less [and] this is expected until 2025. Orders are coming in less and lower prices are impacting our industry’s exports, with a downward trend since 2022. Based on our members’ survey, exports are projected to further decline by 11% this year,” she told BusinessWorld in a text message.

Ms. Carillo said any wage increases this year would drive up business costs, which may force manufacturers to shed jobs.

“Our members are challenged with fewer orders to maintain operations in the country… The migration of orders already experienced before might continue and lead to more job losses,” Ms. Carillo added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort told BusinessWorld the one-year moratorium on wage hikes could help ease inflationary pressures.

He noted there are second-round inflationary effects whenever there are wage hikes, as some businesses pass on these costs to consumers by raising selling prices.

Meanwhile, Renato B. Almeda, an Employers Confederation of the Philippines (ECoP) governor, told the same public hearing its members could only afford a P15-P16 increase in the daily minimum wage.

In an interview with BusinessWorld, Butch C. Guerrero, another ECoP governor, said a P15 hike in daily wages for agricultural workers and P16 for nonagricultural workers are the appropriate increases considering inflation.

“We need to align workers’ salaries with the consumer price index,” he said in Filipino.

The NCR wage board is expected to set the tone for the wage increases in other regions.

Calixto V. Chikiamco, president of the Foundation for Economic Freedom, warned that high minimum wages may drive foreign companies away.

“High minimum wages have already driven away many foreign companies, especially labor-intensive ones like garments and light manufacturing, which have fled to Vietnam and Bangladesh,” he told BusinessWorld in a Viber message.

“Evidence of this is that manufacturing as a percentage of GDP (gross domestic product) has been shrinking. However, aside from high minimum wages, unreasonable labor security regulations have also made climate of investments to investors, foreign or local, inhospitable,” he added.

However, labor groups called for wage hikes, slamming the claims of employers that it will stoke inflation.

“[We] blast the scaremongering excuse of employers and even no less than the Department of Labor and Employment that any wage hike will supposedly lead to massive inflation, unemployment, business closures, and economic slowdown — only because they do not want to pay the workers their fair share,” the National Wage Coalition said in a statement on Thursday.

Former lawmaker and chairman of Partido Manggagawa Renato B. Magtubo told BusinessWorld on the sidelines of the public hearing that foreign investors consider the overall cost of doing business, including the availability of skilled workers and raw materials.

“I don’t think wages are a significant factor for investors to come in. What they look at is the overall cost. When producing a product, the wage is just one factor in the unit cost. They also consider whether there is a market, and if there is stability. So, wages are not the main factor in attracting investors,” he said in Filipino.

Filomeno S. Sta. Ana, III, coordinator for Action for Economic Reforms, echoed the sentiment, emphasizing that companies look for skills rather than labor costs.

“In this day and age, investors will give premium to workers with skills and high productivity. China, Vietnam, are attracting investments not because of their cheap labor but because of the skills and productivity of their workforce,” he said in a Viber message.

“In some low-wage countries, workers are compensated with non-wage benefits in terms of cheaper food, cheaper housing, access to healthcare, and other social protection measures,” he added.

Philippines improved slightly in attaining SDGs — UN report

June 21, 2024 | 12:33 am

slum area-poverty — Informal settlers are seen in Manila, April 23, 2024. — PHILIPPINE STAR/EDD GUMBAN

THE PHILIPPINES jumped six spots to 92nd out of 167 countries in achieving 17 sustainable development goals (SDGs), but still grapples with significant challenges in addressing poverty, hunger and low-quality education, a United Nations (UN) body said in its latest report.

In the UN Sustainable Development Solutions Network’s (SDSN) 2024 Sustainable Development Report, the Philippines received an SDG index score of 67.47 from 67.14 last year.

The difference between 100 and a country’s score represents how much it must overcome to reach optimum SDG performance.

The SDGs are targets set for participating countries to end rampant poverty, lessen inequality and address environmental degradation by 2030.

Out of the 17 SDGs, the Philippines saw eight “moderately improved” targets, eight “stagnated” and one “decreased,” the UN body said.

“Midway between the founding of the UN in 1945 and the year 2100, we cannot rely on business as usual,” Jeffrey D. Sachs, SDSN President and lead author of the report, said in a statement. “The world faces great global challenges, including dire ecological crises, widening inequalities, disruptive and potentially hazardous technologies and deadly conflicts; we are at a crossroads.”

Among ASEAN (Association of Southeast Asian Nations) members, the Philippines ranked sixth in attaining the SDGs, behind Thailand (74.7), Vietnam (73.3), Singapore (71.4), Indonesia (69.4) and Malaysia (69.3).

The Philippines was ahead of Brunei (67), Cambodia (64.9), Laos (63) and Myanmar (62.8). No score was given to Timor-Leste.

Based on the report, the Philippines is “moderately improving” towards achieving SDGs related to no poverty (SDG 1); zero hunger (SDG 2); decent work and economic growth (SDG 8); industry, innovation and infrastructure (SDG 9); reduced inequalities (SDG 10); life below water (SDG 14); life on land (SDG 15); and partnerships for goals (SDG 17).

However, the report showed the Philippines is “stagnating” in meeting targets on good health and well-being (SDG 3); quality education (SDG 4); gender equality (SDG 5); clean water and sanitation (SDG 6); affordable and clean energy (SDG 7); sustainable cities and communities (SDG 11); and achieving peace, justice and strong institutions (SDG 16).

Philippine efforts in climate action were also seen “decreasing,” given stagnant progress in eliminating emissions from fossil fuel combustion and cement production and decreasing efforts to lessen greenhouse gas emissions from imports, SDSN said.

So far, the country has only achieved SDG 12 or responsible consumption and production, but SDSN noted there is not much improvement.

The Philippines also faces “major challenges” in attaining good health and well-being, decent work and economic growth, reduced inequalities, and sustainable cities and communities, SDSN said.

“Significant challenges” are also seen in achieving zero poverty and hunger, quality education, gender equality, clean water and sanitation, affordable and clean energy, industry, innovation and infrastructure, and partnerships for goals.

The Philippines’ poverty incidence rate fell to 22.4% in the first half of 2023 from 23.7% two years earlier.

The Marcos administration aims to slash the poverty rate to 9% by the end of his term in mid-2028.

Filomeno S. Sta. Ana III, convenor at the Action for Economic Reforms, said the Philippines’ ability to meet the SDGs was hampered by the pandemic.

“One reason was that the pandemic set back the SDG goals. But that’s just part of the story. Post-pandemic, the government has underperformed, and targets are not being met,” he said in a Viber message.

The Philippines scored 95.6 in the International Spillover Index, the SDSN said. A higher score means a country causes less negative spillover effects to its peers.

Globally, around 16% of SDGs are “on track” to be achieved, while 84% exhibit slow or even a reversal of its progress, the UN body reported.

Most targets that are “off-track” relate to food systems, biodiversity, sustainable land use, and peace and strong institutions, SDSN said.

The report also noted that 600 million people are likely to experience hunger by 2030 amid rising cases of obesity and greenhouse gas emissions.

SDSN said there is a need for countries to avoid overconsumption and limit animal-based protein intake, increase productivity in areas with strong demand growth, and ensure inclusive, robust and transparent systems against deforestation. — Beatriz Marie D. Cruz

BSP official says restrictive policy stance appropriate

June 21, 2024 | 12:32 am

MANILA — The Philippine central bank will keep monetary policy settings restrictive as it works to keep inflation in check, as the peso currency weakens in line with global conditions, a senior official said on Thursday.

Despite external headwinds, the Bangko Sentral ng Pilipinas (BSP) remained optimistic that macroeconomic conditions would be favorable in 2024 and 2025, BSP Senior Assistant Governor Iluminada T. Sicat told a business forum.

Inflation would stay within the 2% to 4% target this year and the next, Ms. Sicat said.

The central bank’s key policy rate is at a 17-year high of 6.5% after a series of rate hikes last year to tame inflation, which hit a 14-year peak of 8.7% in January 2023.

Inflation fell to a low of 2.8% in January 2024 but has since risen to 3.9% in May. The average inflation for the first five months of the year was 3.5%.

Ms. Sicat said the peso remained influenced by the broad strength of the US dollar.

“The movement of the peso is not volatile,” she told reporters on the sidelines of the forum, adding the central bank has scope to intervene if it sees any signs of market stress.

The peso’s weakness is largely based on market expectations that the US Federal Reserve will keep interest rates higher for longer and due to stronger demand for US dollars from imports, Ms. Sicat said.

The peso closed at P58.78 a dollar on Thursday, inching down by 2.5 centavos from the previous day’s finish of P58.755. Year to date, the local unit is now down by P3.41 from its end-2023 close of P55.37 against the greenback. — Reuters

BoI says ‘green lane’ investments hit P2.3T

June 21, 2024 | 12:31 am

By Justine Irish D. Tabile, Reporter

ABOUT P2.32 trillion worth of projects, mostly in renewable energy (RE), have been approved to go through the “green lane” system as of June 20, the Board of Investments (BoI) said on Wednesday.

Data from the BoI showed that 74 projects worth P2.32 trillion have been endorsed to its One-Stop Action Center for Strategic Investments (OSACSI) since it was established last year.

The majority or 65 of the projects certified for green lane are RE projects with a combined cost of P1.95 trillion.

The Philippine government saw increased investments in RE projects after it allowed full foreign ownership in the sector starting in November 2022. Foreign ownership in RE projects used to be limited to 40%.

Foreign nationals and foreign-owned entities are now allowed to explore, develop and use RE resources such as solar, wind, biomass, ocean and tidal energy.

Five of the green lane-certified projects are digital infrastructure projects worth P338.23 billion, while two are food security projects worth P3.4 billion. There are also two manufacturing projects worth P29.61 billion that will get the green lane treatment.

For June alone, P265.47 billion worth of projects were certified to undergo green lane processing, including a P183.21-billion solar project in Luzon.

This brought the number of projects through the green lane system this year to 52, with total project cost of about P1.89 billion.

The government, through Executive Order (EO) No. 18, established the “green lane” in all government agencies to speed up the approval and registration process for priority or strategic investments.

“Out of the 74 projects (approved since last year), 32 are already registered with the BoI with a total project cost of P1.31 trillion, while 42 projects are still being eyed for registration or considered investment leads worth P1.02 trillion,” the BoI said.

On Monday, the BoI reported that it approved P27.41 billion worth of investment pledges last month, which brought approved investments in the first five months to P640.22 billion. During the five-month period, the RE sector accounted for P607.47 billion of the total investments.

Meanwhile, there are 59 projects worth P792.71 billion that have pending applications for green lane certification, according to BoI. Of the 59, 37 are RE projects worth P709.36 billion.

Ernesto C. Delos Reyes, Jr., BoI director for Investment Assistance Service and OSACSI, said these projects mainly lack requirements that are related to the financial capability of the investor.

“We put this as a requirement for green lane to avoid giving a green lane certificate to an investor who does not have the capacity to sustain the project,” Mr. Delos Reyes said in a Viber message.

“That is why we are looking at their projected cash flow and seeking commitment from their parent company that they are willing to put in additional investment capital to support the project,” he added.

To further improve ease of doing business, the BoI said that the OSACSI has been working with the Department of Environment and Natural Resources (DENR) and the National Grid Corp. of the Philippines (NGCP).

In its talks with the DENR, the OSACSI proposed that the Department of Energy issue a special power of attorney to RE developers to allow them to acquire tree-cutting permits without needing a land title.

Meanwhile, the OSACSI received a commitment from the NGCP that it “will prioritize and expedite the processing of system impact studies and applications for connectivity to the grid submitted by green lane projects.”

A steady energy-green transition for the Philippines

June 21, 2024 | 12:10 am

SF_2557982_freepik-OL — Photo from Freepik

By Angela Kiara S. Brillantes, Special Features and Content Writer

In a country facing grave risks from climate change, the shift towards clean and renewable electricity is more imperative than ever, forcing the power sector to put more focus in sustainability.

The clean energy transition is gaining momentum, and the Philippines is keeping up with the pace. According to the Bloomberg New Energy Finance (BNEF) Climatescope 2023 report, the Philippines is ranked fourth among the top emerging markets for renewable energy.

“Over the past two years, the Philippines’ significant progress in transitioning to renewable energy propelled the market into Climatescope’s top five,” the report said.

The Philippines was recognized as one of the countries with initiatives with strong goals for renewable energy. Among these initiatives is the country’s second green energy auction, where it awarded 3.4 gigawatts (GW) of renewable energy capacity with 1.2 GW allocated for ground-mounted and solar projects in 2024-2025, while 2.2 GW for 2026.

“The Philippines moved up six places to number four after India, China and Chile following the country’s significant progress in transitioning to renewable energy (RE) over the last two years,” the Department of Energy (DoE) said in a statement.

Moreover, investments in clean energy soared by 41% in 2022, reaching P1.34 billion. Growth was also marked in offshore wind investments, with 29% increase of installed capacity and 22% gross power generation from renewables were seen during the year.

While being on the right track, renewable energy adoption is still a work in progress, especially with demand for electricity changing over the years and the consistent use of coal as a primary energy source.

Currently, renewable energy generation stands at 22%, based on data from the DoE. In 2022, installed coal capacity increased by 14%, reaching 12,428 megawatts (MW).

In 2023, fossil fuel remains the main source of energy in the Philippines; and coal reliance gradually increased, from 39% in 2012 to 64% in 2023. Thus, the heavy reliance of coal power generation is hindering the country’s decarbonization efforts.

Nonetheless, clean energy transition is a significant answer to the climate puzzle, and major players in the industry are ramping up their efforts to speed up this transition.

Driven by tech and expansion goals

Marissa P. Cerezo, director of the Renewable Energy Management Bureau, noted that the increase of renewable shift has led the sector to diversify its energy sources, increasingly using RE sources, including solar, wind, hydro, geothermal, and biomass, decreasing reliance on fossil-based fuels.

“Shifting to renewable energy does not just address the country’s energy needs; it is also one of the key solutions in mitigating the impacts of climate change. Renewables produce little to no greenhouse gases during operation, significantly reducing the country’s overall carbon footprint and contributing to global climate goals,” Ms. Cerezo told BusinessWorld in an email.

With constant advancements in technology, the sector is seeing a remarkable shift towards cleaner and greener energy technologies. Among these technologies, green hydrogen and nuclear energy are found to be at the forefront of the green-energy transition, playing a crucial role in driving long-term sustainability.

Some of the emerging technologies, such as solar PV, wind turbines, and batteries, have become more accessible and affordable, resulting in widespread use.

Aboitiz Power Corp. (AboitizPower) shared to BusinessWorld that wind and solar power are now being widely used for rooftops of homes and businesses. These renewable energy sources are currently more efficient, cost-effective, and have higher capacity factors, making them generate cleaner electricity.

For them, to advance the energy-green transition means expanding renewable energy capacity to 4,600 MW by 2030. This expansion will include solar, wind, geothermal, hydro, and battery energy systems that will continuously strengthen renewable energy sources and increase its share of the country’s power generation mix.

Additionally, this expansion will cover 1,200 MW of new capacities, while the next phase will include 1,700 MW of new solar and wind power.

“Our resolve is to continue and develop a balanced approach to our capacity expansion so that baseload, intermediate, and peaking demands, as well as regulating reserve requirements, are met at the least cost possible and at less risk to the environment and surrounding communities,” AboitizPower said.

Also, natural gas is seen to become the next alternative power source as coal phases out. Natural gas is less carbon intensive, meaning it produces less greenhouse gas emissions and it is more flexible, gradually contributing to a more sustainable energy pathway for the country.

Recently, AboitizPower has acquired a share in Chromite Gas Holdings, allowing them to invest in two gas power plants, which has a combined capacity of over 2,500 MW and a terminal for importing liquified natural gas (LNG).

“We welcome the development of natural gas facilities, which emits less carbon and cycles more quickly to accommodate the intermittencies that come with more variable renewable energy,” AboitizPower shared. “With a more diverse energy supply mix that relies less on coal and more on renewable energy with LNG, overall power generation will become less carbon intensive, contributing to a more sustainable energy pathway for a developing, energy-hungry country like the Philippines.”

Financing the transition

Further on the financing side, it can be recalled that the Bank of the Philippine Islands (BPI) served as the lead arranger for Energy Transition Mechanism (ETM) in 2022, which consisted of a P7.2 billion investment for renewable technologies and P17.4 billion investment for enabling the early retirement and full divestment of the 246-megawatt coal plant of South Luzon Thermal Energy Corp. (SLTEC). This coal plant is the first ever to use ETM that will transition the plant to cleaner technology by 2040.

“We are going all out in looking for greener sources of energy, and we are simultaneously tying this with bringing down energy demand and energy use,” Jo Ann Eala, vice-president at BPI and head of its sustainability office, said in a statement. “We need to educate both businesses and households, who account for a significant portion of energy consumed. At the same time, we need to support businesses in improving the energy efficiency of their operations, and help them shift to more efficient equipment and technologies.”

Making the transition seamless

To ensure a seamless transition to clean energy and security key policy mechanisms and programs were set into place, Ms. Cerezo of DoE added.

These efforts and initiatives include renewable portfolio standards, renewable energy market, feed-in tariffs green energy option program, net-metering program, expanded roof-mounted solar program, and green energy auction program.

These initiatives are DoE’s way to build and promote cleaner electricity in the country. Further, it aims to speed up renewable energy goals of achieving 35% renewable energy share and 75% reduction of greenhouse gas emissions by 2030, and 50% renewable energy share by 2040.

“The DoE is embarking on initiatives that would propel investment in the energy sector in different technologies and required capacities in the power generation mix by 2030 to 2050, underscoring its commitment to the global energy transition,” the department said in another statement.

Transforming the Philippines into both an energy-secured and energy-sustainable country significantly requires the leveraging of opportunities and investments, especially in technology, innovation, and competent and skilled individuals.

Energy-green transition, AboitizPower emphasized, demands both the expansion of energy capacity, increasing the amount of renewable energy sources and energy transmission used in the country, which are said to minimize environmental impacts and risks within communities and ensure energy security.

SM Mega Tower: A premier headquarters for multinational firms

June 21, 2024 | 12:10 am

SM-Mega-Tower-for-rev4-OL — Left photo: SM Mega Tower welcomes digital infrastructure and continuity solutions provider Vertiv. Pictured from left to right are the people behind this inspiring venture: SM Offices Regional Accounts Manager Maricris Cruz; Vertiv VP of Global Business Services Felix Bailer; Vertiv Chief Human Resources Officer Cheryl Lim; Vertiv Chief Financial Officer David Fallon; Vertiv Manila Hub General Manager David Yao; and SM Prime Holdings Vice-President and SM Offices Head Alexis Ortiga

The Philippines has become an important hub for multinational companies because of its favorable business environment, which offers cultural affinity, cost efficiency, skilled talents, and a well-established infrastructure.

The rise of modern buildings and towers also meets the needs of these companies, providing high-speed internet, a redundant power supply that includes renewable energy, and enhanced security.

Among skyscrapers that define the stretches of the Ortigas Central Business District, SM Mega Tower continues to embody sustainability, convenience, and cutting-edge amenities that redefine the future of office spaces for businesses in the Philippines.

Because of these factors, the 50-storey S-shaped skyscraper has rapidly become the preferred headquarters for prominent local and multinational firms, as supported by Vertiv’s recent relocation to the building.

Vertiv, a global provider of critical digital infrastructure and continuity solutions, has announced the opening of its new offices in Manila, located at the SM Mega Tower in Mandaluyong City’s central business district.

The new Vertiv offices span over 8,000 square meters across four floors and offer modern amenities, flexible and collaborative workspaces, focus areas, wellness rooms, and an open office concept. These features are tailored to create a conducive environment that fosters productivity and collaboration among its over 1,200 employees.

Understanding how taxing the daily grind can be to its staff, Vertiv Manila has designed the offices with open and dynamic features to inspire Vertiv employees and encourage them to be at their best when at work. Overall, it is hoped the offices will give employees a positive environment where they can grow both at a professional and personal level.

Vertiv’s facility also features a Customer Experience Center (CEC) and the Vertiv Academy. These spaces provide customers with hands-on experiences using Vertiv’s products and technologies that aligns perfectly with the advanced infrastructure offered by SM Mega Tower.

Furthermore, Vertiv’s focus on establishing a multinational environment showcases the ability of the building to support the operations of global enterprises.

As SM Mega Tower welcomes Vertiv, SM Prime’s Vice-President for Commercial Properties Group and SM Offices Head Alexis L. Ortiga expressed how proud SM Offices is to have Vertiv call the said tower their home.

“This new facility is a testament to our shared vision of pioneering ecosystems that are functional and conducive to the modern demands of convenience and collaboration, with a human-centric approach to workplace design,” said Mr. Ortiga.

SM Mega Tower’s advanced features, prime location, and flexible office spaces make it the ideal choice for multinational firms looking to establish a significant presence in the Philippines.

One of the key features that make SM Mega Tower an attractive headquarters option is its strategic location. Adjacent to SM Megamall, one of the largest and most popular shopping destinations in the Philippines, the tower offers unparalleled convenience with access to food options, services, retail, and, most importantly, various modes of public transport, due to the complex’s proximity to two MRT Stations.

Designed by the renowned global architectural firm Arquitectonica, the skyscraper promotes natural daylight and offers expansive 360-degree stunning view options, from a golf course, the mountain range spanning from north to east, the sunrise at Laguna de Bay, and the famous Manila sunset in the west, creating an inspiring and vibrant work environment.

SM Mega Tower’s floor plans are designed with flexibility in mind, accommodating layouts that cater to diverse tenant requirements. Each floor spans approximately 2,000 square meters, allowing businesses to customize their office space to fit their specific needs.

Furthermore, the building is equipped with 29 elevators, divided into three zones to maximize productivity and efficiency, along with service lifts for podium and basement access.

In addition to its visual appeal, the LEED Gold-certified property incorporates various green building strategies to improve its sustainability and resilience. For instance, the building features an advanced chilled water air conditioning system, an energy recovery wheel to maximize cooling, and 100% backup power to ensure operational efficiency and reliability, which are crucial for businesses requiring uninterrupted services. Furthermore, tenants have the option to utilize renewable energy sources, contributing to a lower carbon footprint and supporting environmental stewardship.

According to Mr. Ortiga, by integrating advanced solutions within its properties, SM Offices is reimagining the development and management of office spaces. This initiative also sets new benchmarks for environmental stewardship and operational excellence.

“Our focus is on the long-term impact, setting new standards, and inspiring a shift across the industry. Through strategic proptech integration, we aim to create spaces that not only serve our current tenants but also pave the way for future generations,” he added.

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Converge ICT partners with HPE Zerto to launch Disaster Recovery Service

June 21, 2024 | 12:10 am

06-OL — In photo are (L-R) Converge Vice-President and Brand & Marketing Head Orange Ramirez, Converge Senior Executive Vice-President and Chief Operations Officer Jesus C. Romero, Hewlett Packard Enterprise Asia-Pacific Service Leader & Philippines Managing Director Chew Weng Keng, and Hewlett Packard Enterprise Channels, Partner Ecosystem & Commercial Sales Country Manager Jessica Powell-Bragas. — Photo by Manuel Sagun Jr.

By Bjorn Biel Beltran

Seeking to democratize business continuity solutions in the Philippines, Converge ICT has introduced its Disaster Recovery as a Service (DRaaS), in collaboration with Zerto, a subsidiary of Hewlett Packard Enterprise (HPE).

The strategic partnership aims to bolster the Philippines’ efforts towards data security, protecting businesses from disruptions borne from natural disasters and human error, and providing a robust shield against potential cyberattacks.

“Today when you talk of disaster, it comes in many forms. Physical, virtual, it could be something local or even something global,” Jesus C. Romero, Senior Executive Vice-President & Chief Operations Officer of Converge ICT Solutions, Inc., said in a presentation. “You’ve heard of many companies getting their data compromised. Sometimes, the data is actually taken away from them. That’s something that we are very conscious of, because it doesn’t matter if you have a disaster recovery site when all of your data has been taken away.”

Unlike traditional backup solutions that only focus on data recovery, DRaaS uses Zerto’s cutting-edge Continuous Data Protection (CDP) technology to offer a holistic approach to safeguard businesses against a variety of disruptions, including natural disasters, power outages, and cyber-attacks.

Key features of Converge ICT DRaaS include always-on replication, near-synchronous replication ensuring thousands of recovery points, delivering the lowest Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs). There are also journal-based recovery logs that records every change into a journal with second-level granularity, allowing swift recovery to just before an incident.

Meanwhile, application-centric recovery protects multi-VM applications as a single unit for consistent and straightforward recovery.

“With an effective disaster recovery or DR plan and solution in place, your organization becomes resilient and able to easily resume operations with minimal downtime and data loss,” Jessica Powell-Bragas, Channels, Partner Ecosystem & Commercial Sales country leader, HPE, said.

“With Converge ICT and HPE Disaster Recovery as a Service or DRaaS, an organization can back up its data and infrastructure to a third-party cloud computing environment that restores access and functionality after a disaster. You simultaneously gain the power of simplicity. And the freedom of flexibility, all while dramatically limiting your risk of data loss and downtime.”

As more businesses expand their operations online, the more critical data security becomes. For instance, the Philippines has seen a dramatic surge in ransomware attacks, with incidents doubling in 2023. A single disruption from cyberattacks can have a direct impact to many businesses, from loss of revenues, productivity, and compliance issues, as well as indirect consequences like brand damage, customer loss, and reputational harm.

Jesus C. Romero, Converge ICT Solutions, Inc. Senior Executive Vice-President & Chief Operations Officer — Photo by Manuel Sagun Jr.

Most large corporations have the necessary contingencies to prevent such incidents, but Mr. Romero noted that many medium-sized enterprises don’t have the ability for various reasons. DRaaS seeks to solve this.

“I think money is always a reason. Remember, you have to set it up. You have to buy servers, storage, software, the application, or subscribe to a service. But today the available services are mainly outside of the country, so there is additional cost,” he said.

“Instead of doing that, if you can subscribe on a monthly basis only for what you need, then there’s no upfront cost. There are no maintenance costs, just one monthly bill. And then you don’t even need to have the expertise. The expertise is provided by our ecosystem.”

Converge ICT’s DRaaS offers three service models to cater to varying levels of customer involvement: Self-Service DRaaS, where customers manage the setup and ongoing maintenance, while Converge ICT provides the infrastructure and tools; Assisted or Partially Managed DRaaS, where management responsibilities are shared between the customer and Converge ICT; and Fully Managed DRaaS, where Converge ICT handles the entire disaster recovery solution, offering complete peace of mind.

The ‘pay-as-you-grow’ model, Converge ICT noted, ensures that the solutions are scalable for businesses of any size and can evolve with your business needs. The service maintains data privacy and sovereignty, ensuring that data remains within the country, complying with local regulations. There is no need for hardware or software maintenance, eliminating the management of physical infrastructure, and there are no egress charges, avoiding costly international private lines and unexpected expenses.

In addition to DRaaS, Converge ICT offers a private infrastructure service known as Converge Lake. This includes Compute Lake, providing enterprise-grade compute resources with a flexible subscription model, offering secure, private, and reliable virtual instances or physical machines. Storage Lake offers secure, private storage infrastructure supporting object, block, and file storages, tailored to enterprise workloads with flexible subscription options.

With the launch of DRaaS, Converge ICT and HPE Zerto aims to bring a world-class business continuity solutions to the Philippines, removing much of the complexity that is needed for them to secure their data.

“Before, you cannot even think of doing this. It’s too expensive. It’s too complex and you don’t have the right people. So you have to live with a situation where, any day now, you can be attacked and can lose your data. You’ll be down for one day, two days, three days, a month. Who knows?” Mr. Romero said, adding that they hope to educate more businesses about the value of data security solutions like DRaaS, particularly those that have not had the opportunity to avail of such services due to its prior cost.

“There’s a lot of them. They’re the ones who are getting left behind,” he said.

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Accelerating the transition: Key trends in clean energy deployment

June 21, 2024 | 12:08 am

SF_business-person-planning-alternative-energies_FREEPIK-OL — Photo from Freepik

More than fifteen years ago now, Republic Act No. 9513 — otherwise known as the Renewable Energy Act of 2008 — paved the way towards a vision of a Philippines with an equitable and inclusive prosperity powered by its abundant sustainable energy resources. Shortly before that landmark piece of legislation was passed, in a different part of the world, Apple unveiled the first ever iPhone, changing the world and the way we interact with it forever.

Since that time, smartphones and digital technology has accelerated to what seemingly is lightspeed. Today, the newest phones are as powerful as a mid-range desktop computer and are even equipped with capabilities like artificial intelligence.

Similarly, clean energy technology has grown by leaps and bounds in that timespan. According to the International Energy Agency (IEA), in 2023 global clean energy deployment reached new heights, with annual additions of solar PV (photovoltaic) and wind growing 85% and 60% respectively, and capacity additions for these two technologies reaching almost 540 gigawatts (GW).

Electric car sales grew around 35% in 2023, reaching 14 million vehicles or one-in-five sales globally. Majority of these sales were led again by China, wherein one-in-three cars sold was electric. In the European Union, this figure was one-in-four.

And yet, as proliferous as smartphones are today as compared to 2008, clean energy technologies unfortunately remain concentrated in advanced economies and China, with the rest of the world continuing to lag well behind.

“In 2023, China and advanced economies accounted for 90% of capacity additions for wind and solar PV, and more than 95% of global sales of electric cars,” the IEA wrote in its Clean Energy Market Monitor for March 2024.

The IEA considers the deployment of five clean energy technologies — solar PV, wind power, nuclear power, electric cars, and heat pumps — to be the key towards avoiding annual fossil fuel energy demand. From 2019 to 2023, these technologies helped countries around the world avoid around 25 exajoules (EJ) of fossil fuel energy.

“This is equivalent to 5% of total global fossil fuel demand in all sectors in 2023, or almost the combined total energy demand of Japan and Korea from all sources last year,” the IEA noted.

Not all of the technologies are receiving attention, however. Heat pump sales have declined globally from the record levels of 2022, “as squeezed consumers avoided spending on big ticket items and concerns around high gas prices eased somewhat. The slowdown of heat pump sales highlights the importance of supportive policies to help cash-strapped consumers and reduce the gap between electricity and gas prices.”

Meanwhile, nuclear capacity additions dropped to 5.5 GW in 2023, though this is less meaningful due to the technology’s long project development and execution timelines. Just five new nuclear reactor projects began construction in 2023. The IEA noted that world’s reactor construction count was at 58 units, with a combined capacity of more over 60 GW, as of the beginning of 2024.

Interest in hydrogen electrolysers — which are essential for producing low-emission hydrogen and can play a key role in decarbonizing hard-to-abate sectors like heavy industry and transportation — is growing, as demand for them grew by 360% in 2023 from a very low base.

“This increase was due largely to China, as the European Union ceded its leading position. The United States also increased the speed of deployment, but annual additions remained modest in absolute terms,” the IEA wrote.

“Energy efficiency is lagging behind, however. Our latest assessment shows an energy intensity improvement of around 1% in 2023, four times lower than the COP28 pledge to double the long-run rate of energy intensity improvement by 2030,” the agency further explained.

IEA’s report further noted that the deployment of the five key technologies: solar PV, wind power, nuclear power, electric cars, and heat pumps from 2019 to 2023 avoids around 2.2 billion tonnes (Gt) of emissions annually. “Without them, the increase in CO2 (carbon dioxide) emissions globally over the same period would have been more than three times larger,” it added.

Globally, the deployment of solar PV over the past five years has cut around 1.1 Gt of emissions annually, which is roughly equivalent to the annual emissions of Japan’s entire energy sector. In markets like Australia and New Zealand, the impact is even more pronounced, with solar PV reducing CO2 emissions by nearly 10% of the region’s total energy-related emissions in 2023.

Wind power has avoided about 830 metric tons (Mt) of CO2 emissions annually, while nuclear energy has prevented 160 Mt of CO2. Electric cars and heat pumps have avoided 60 Mt and 50 Mt of CO2 emissions respectively. Though the reductions from electric cars and heat pumps are currently smaller compared to other technologies, they are expected to grow as the stock of these technologies expands, increasing their share in new sales and the overall equipment in use.

Overall, the trend is positive. IEA Executive Director Fatih Birol said in a separate report that, “For every dollar going to fossil fuels today, almost two dollars are invested in clean energy.”

“The rise in clean energy spending is underpinned by strong economics, continued cost reductions and by considerations of energy security,” he added.

The IEA found that global investment in the manufacturing of the five key clean energy technologies rose to USD 200 billion in 2023, an increase of more than 70% from 2022 that accounted for around 4% of global GDP growth. And it is expected to rise even further.

The organization expects global investment in clean energy technology and infrastructure to reach $2 trillion this year. This is twice the amount that is going into fossil fuels, with total energy investments expected to exceed $3 trillion for the first time in 2024.

Around $2 trillion is earmarked for clean technologies — including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps — with the rest directed towards gas, oil and coal. The total investment in renewables overtook the amount spent on fossil fuels for the first time in 2023.

“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy,” Mr. Birol said. “But there is a strong element of industrial policy, too, as major economies compete for advantage in new clean energy supply chains.”

“More must be done to ensure that investment reaches the places where it is needed most, in particular the developing economies where access to affordable, sustainable and secure energy is severely lacking today.” — Bjorn Biel M. Beltran

Netflix uses Squid Game playbook for untapped Southeast Asia

June 21, 2024 | 12:08 am

NETFLIX, INC. is ramping up local production in Southeast Asia, aiming to boost its subscriber base in the populous region even as US rivals are pulling back.

The world’s largest streaming TV service is increasing the number of titles available and the number of shows it produces in the region in an effort to reach more viewers, Minyoung Kim, vice-president of content for Asia excluding India, said at a company event in Jakarta.

“It is on us to make sure that these stories find audiences not only within their home country but also beyond domestic markets, enabling audiences around the world to discover the stories that they will love,” Ms. Kim said.

Asia Pacific is currently the smallest market for Netflix, accounting for about 11% of revenue in 2023. But a large, young demographic also presents a significant opportunity for growth.

Following the success of original shows from South Korea, such as Squid Game, and Japan’s pirate series One Piece, Netflix is adopting the playbook in Thailand, Indonesia, and the Philippines. In Thailand, the company plans to release 10 original titles this year, up from six in 2023. That’s the most of any country in the region. Indonesia will also see an increase in original titles and a bigger production budget.

Localized content is especially crucial in Asia, since about 80% of premium video engagement is powered by such titles, according to Media Partners Asia.

Netflix’s push in Southeast Asia contrasts with major rivals that are pulling back amid shareholder pressure to stop chasing subscriber growth at the expense of profitability. Walt Disney Co. has paused original content creation and increased subscription prices in the market. Amazon.com, Inc.’s Prime Video has also retrenched.

Netflix only recently started to pump out original series and films in the region, after launching in some Southeast Asian countries in 2016. Its Thai thriller Hunger and Indonesian series Cigarette Girl, both released last year, were global hits and rare successes for Southeast Asian programming created by one of the global streaming services. The company wants to make that a more regular occurrence.

In Indonesia, Netflix is betting on big-budget shows that would be distinctly different from local streaming service Vidio, which is focused on sports and shorter dramas. Supernatural sci-fi series Nightmares and Daydreams, which debuted this month, and upcoming action film The Shadow Strays, starring a 17-year-old female assassin, are two recent examples. Netflix is also producing Indonesia’s first large scale zombie horror series, Abadi Nan Jaya (working title), which is set to be unveiled in 2025.

While horror and crime thrillers play well in Indonesia, Thailand is open to programming on a wider variety of topics — ranging from comedy to sexual genres, reflecting the cultural background of a nation that’s set to become the first Southeast Asian country to legalize same-sex marriage.

Thai creators working for foreign platforms have more freedom than those in neighboring countries because they submit their projects for approval to tourism officials, rather than the culture ministry, which has stricter guidelines, said Kongdej Jaturanrasamee, director of Doctor Climax, a Netflix original drama about a skin doctor who turns into a sex columnist.

“Indonesia still tends to have more conservative themes as it’s a Muslim country,” said Dhivya T, lead analyst at Media Partners Asia. “Thai content is more accessible and travels bit more in the Southeast Asia region with its universal story lines as well as production values.” — Bloomberg

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