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Shanghai’s ‘kitchen’ skyline

THE BUND SKYLINE — JUSTINE IRISH D. TABILE

SHANGHAI, the city most visited by tourists in Mainland China, is known for its iconic skyline and rich cultural heritage.

The Bund, Shanghai’s famous waterfront area along the western bank of the Huangpu River, is home to luxury hotels, restaurants, and high-end shops. It is also where one finds what is known as the Bund Skyline. Its distinct look comes from a number of skyscrapers that together look like a set of kitchen tools.

  One of these “kitchen tools” is one of the tallest buildings in the world, the Shanghai Tower.

Standing 2,073 feet tall, Shanghai Tower is currently the third-highest building in the world according to the Council on Tall Buildings and Urban Habitat. With its twisting structure that gradually narrows as it ascends the sky, the tower is called the “egg whisk.”

Known for its striking appearance, the tower’s spiral design was meant to enhance its structural stability and resistance to wind forces.

Next to the whisk is the “bottle opener,” or the mixed-used Shanghai World Financial Center.

With a height of 492 meters, or 1,614 feet, it is another prominent skyscraper, especially with its distinctive trapezoidal aperture at the peak.

The building serves as a financial hub with office spaces, conference facilities, hotels, and observation decks.

The third tool in Shanghai’s kitchen set is a cooking syringe, or the 1,380-foot Jin Mao Tower.

Completed in 1999, the building houses a five-star hotel, exhibition halls, banquet halls, an observation deck, and entertainment facilities.

The tower offers a “wander in the cloud” service wherein visitors can stroll along a glass skywalk — without rails! — on its 88th floor.

These three together are the tallest buildings in Shanghai and are among the many tourist destinations in the city.

SHOPPING
Located on the eastern coast of China, Shanghai is home to almost 29.87 million people, making it the third largest city by population in the world, according to the World Population Review.

To cater to the shopping needs of so many people, the city has the pedestrianized Nanjing Road, which spans approximately 5.5 kilometers. Known to be among the world’s longest shopping precincts, the street starts from the Bund facing the Huangpu River in the east to Jing’an Temple in the west.

The stores lining the street sell Chinese delicacies like candies, pastries, and teas; clothes and accessories; and cosmetics.

The street also has stalls for artists who do caricatures of tourists, with prices starting at 20 Chinese yuan, depending on the drawing style.

The road is also home to famous international brands housed inside the many department stores scattered along its length. One of these department stores focuses on collectibles for animé, manga, games, and manhua fans, and is easily recognized by the large inflatable animé character, Anya, on its rooftop.

Not every building along Nanjing Road is dedicated to shopping.

One of the buildings with a colorful history is the Fairmont Peace Hotel, first opened in 1929. Previously called the Cathay Hotel, it is located in the Sassoon House of Anglo-Jewish real estate tycoon Victor Sassoon. The hotel welcomed many distinguished guests through the years, including General George C. Marshall, actors Charlie Chaplin and Douglas Fairbanks, and playwrights Noel Coward and George Bernard Shaw. During World War II, the hotel was occupied by the Japanese army and later used as a social club for officers.

Nanjing Road is not the city’s only shopping area. Another is Tianzifang, a trendy area known for its boutiques, galleries, and vibrant nightlife.

Located in the French Concession area of Shanghai, Tianzifang is made up of narrow alleyways where visitors can browse through shops selling handicrafts, artwork, clothing, and souvenirs.

Originally filled with factories along its lanes, the area was renamed after the earliest recorded painter in China after it developed a thriving art scene. — Justine Irish D. Tabile

Prime Infra says P1-B Porac facility to address Pampanga’s waste challenges

PNA.GOV.PH

By Sheldeen Joy Talavera, Reporter

THE new waste processing facility of Razon-led Prime Infrastructure Capital, Inc.’s (Prime Infra) unit in Porac, Pampanga, will serve as an alternative solution amid the looming closure of sanitary landfill facilities that cater to Clark City, the company said on Wednesday.

“We’re a very different set of operations, so as you can see, we’re materials recovering facility, not landfill, so indeed we are an alternative for any other waste facility,” Cara T. Peralta, Prime Infra’s market sector lead for waste, told reporters.

The development follows the recent announcement from the Bases Conversion and Development Authority (BCDA) regarding the impending expiration of a contract for the Kalangitan sanitary landfill facilities in Capas, Tarlac.

The 25-year contract between Metro Clark Waste Management Corp. and Clark Development Corp. is set to expire in October.

BCDA has said that it will help find alternative solutions for the waste disposal requirements of affected stakeholders.

Prime Integrated Waste Solutions (PWS) on Wednesday inaugurated its automated materials recovery facility (MRF), which has an investment of over P1 billion. 

“The idea is to ensure segregation, storage, efficient processing, and the ultimate outcome is to minimize environmental impacts and the residue of the waste coming into the facility,” Prime Infra President and Chief Executive Officer Guillaume Lucci said.

The waste processing facility, with a site area of about 10 hectares, is capable of segregating and treating 5,000 tons of garbage per day, the company said.

It will handle the waste from north Luzon and the northern part of Metro Manila.

Ms. Peralta said the Pampanga facility can accommodate up to 80-90% of the total waste received.

The Pampanga MRF is PWS’s first greenfield development, and the company’s second operational facility after Cebu City.

Ms. Peralta said the company would enter into a joint venture within the next two to three years with US-based WasteFuel Global to convert the waste into energy.

PWS was established in response to the increasing demand for proper waste management and resource recovery solutions in industrialized and fast-growing cities in the Philippines.

Prime Infra said that its business model is based on the company’s overall objective of converting recovered resources into sustainable fuels.

Cybercrime, fraud may pose risks to digital economy, financial inclusion

FREEPIK

THE GOVERNMENT must prioritize measures to address the proliferation of cybercrime and online fraud as these could affect the digital economy and hamper financial inclusion efforts, analysts said.

“Cyber fraud and cybercrime create disincentives to participate in the digital economy, leading to loss of potential monetary gains and slower financial inclusion,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail.

Cybersecurity breaches result in losses for individuals and businesses, he said. These include financial losses from fraud and data breaches, operational and business activity disruption, intellectual property theft, and loss of customer trust and loyalty.

“Technological limitations in our country have enabled many to flagrantly defy the SIM Registration Law,” he said.

“It appears that loopholes in the institutional governance and implementation of the law have been exploited by cybercriminals,” Mr. Terosa added.

President Ferdinand R. Marcos, Jr. enacted Republic Act No. 11934 in 2022 to “aid law enforcers to track perpetrators of crimes committed through phones.”

Ronald B. Gustilo, national campaigner of Digital Pinoys, said the government must increase funding support for efforts to combat cybercrime and online threats.

“They should use these funds to hire experts and acquire the technology needed. The government also needs to craft a program to develop more cybersecurity, legal and digital forensics experts who will eventually aid its campaign to eradicate these criminals,” Mr. Gustilo said in a Viber message.

Fintech Alliance.PH Chairman and Rizal Commercial Banking Corp. Executive Vice-President and Chief Innovation and Inclusion Officer Angelito “Lito” M. Villanueva said in a speech last week that nearly a quarter of Filipinos fall prey to digital fraud.

“The detrimental impact of this issue is reflected in the 4.3% revenue loss experienced by e-commerce platforms [in the Asia-Pacific region] due to cybercrime,” he said, citing data from the Merchant Risk Council’s 2022 Global Payments and Fraud Report.

“Education is the cornerstone of our mission, and transparent discussions on all facets of the finance industry are imperative to enhance consumer awareness and resilience,” he said.

He noted the importance of digital and financial literacy to help combat cybercrime and fraud.

For their part, financial firms want to be “multiple steps ahead” in ensuring the security of their clients, Mr. Villanueva said.

“That’s the only thing that we have to protect: trust amongst our public, our consumers, our customers to make sure that they will have that faith in terms of the reliability and transparency of the system,” he added.

Mr. Gustilo also emphasized the need to include digital literacy in the country’s basic and secondary education curriculum.

“With the ongoing crisis in cyberspace, people are being driven away from the efforts of the government and the private sector to promote digitalization,” he said. — B.M.D. Cruz

Shifting jobs or losing jobs to EV?

MAKSYM KAHARLYTSKYI-UNSPLASH

When the European Union (EU) finally implements legislation that bans the sale of new fossil fuel-powered cars beginning 2035, many jobs in manufacturing parts and components as well as assembling gas- and diesel-fed vehicles will be lost. As for the United States, the US government will stop buying fossil fuel-powered vehicles also by 2035.

The US has also stated its intention to boost the number of electric vehicles (EVs) on its roads through policy and regulatory changes affecting consumers. The federal government aims to increase the EV share to 50% of all new vehicle sales in the US by 2030. This target includes battery electric, plug-in hybrid, and fuel cell electric vehicles.

Locally, the Electric Vehicle Industry Development Act of 2022 aims to accelerate the Philippine shift in the next 16 years. But the target is modest: 10% of all new vehicle sales by 2040. But the government also wants to convert a big part of the public transport fleet to electric by 2030. The objectives, of course, are mainly environmental protection and energy security.

However, as with any change, there are winners and losers. In terms of jobs, traditional work in the automotive industry may be lost. But new types of jobs directly and indirectly related to EV production and sales will be created. The same goes for the oil and gas industry, as global dependence on fossil fuel changes. Ditto for the environmental regulation industry, given the EV initiative’s implications on emissions.

With the EV shift, changes in the transportation and mobility industries are inevitable. This early the government and the private sector should already be planning and executing initiatives that can mitigate the repercussions of these changes. And while 10% is a modest target for EV share in total car sales, and 2040 is 16 years away, planning should already be underway.

Jobs will move, and not necessarily to the Philippines. Full-scale motor vehicle manufacturing never really took off here, despite all the various development programs initiated by the government since the 1970s. After 50 years of working on it, we have managed to achieve full assembly locally by using imported completely knocked down (CKD) vehicle kits made abroad.

A lot of our economic zones have also attracted local and foreign manufacturers of parts and components that are used in assembling operations here and abroad. But most of these manufacturers are catering to the fossil fuel-powered vehicle industry, rather than EV makers. And while there may be a lot of parts common to both industries, there are still many that are specific.

And this is where we should focus now: taking inventory of the jobs and suppliers that will be lost, and the jobs and suppliers to be gained from the shift to EV. To date, I have not seen numbers indicating net loss or net gain. And while the government moves to attract EV makers locally, including their suppliers, there are many external factors that can impact this initiative.

The Philippine market, I believe, is big enough at over 100 million people. But, relative to population size, vehicle sales are still low at over 400,000 units in 2023. Thailand has a smaller population of about 80 million people, but saw vehicle sales of over 650,000 units last year. Indonesia sold over one million vehicles in 2023, but that is with a population of 280 million.

Relative to manufacturing and assembly, the Philippines produced over 100,000 units locally last year, but sold about four times that. Imported units made up the difference. In comparison, Thailand produced over 1.8 million vehicles in 2023, while Indonesia produced over one million. In short, Thailand and Indonesia both produce more than what they sell locally.

Thailand and Indonesia are net exporters of vehicles, while the Philippines is a net importer. This is significant in relation to the intended shift to EV. Available data indicate that Thailand also produced 80,000 EVs in 2023, while Indonesia made 36,000 units. The Philippines? Zero, to date. China made 7.3 million units, the EU made 2.4 million units, while the US added another 2.4 million units.

The Philippines, at this point, is dust in the wind compared to these five giant EV producers. And with this, what is the likelihood of the Philippines attracting more investments locally into businesses that supply the EV industry? My fear is that with the EV age, the Philippines will lose more vehicle manufacturing-related jobs than it will gain.

With the EV shift, the demand for internal combustion engines will drop, and may become more specific to certain types of vehicles such as trucks, heavy equipment, and farm vehicles. Maybe heavy logistics. Demand from passenger cars will certainly drop. Perhaps even from makers of sports utility vehicles and pickup trucks.

Producing an electric engine for an EV may be considered easier than making a gas-fed or diesel-fed engine. For one, electric motors usually have fewer moving parts. Their manufacturing is relatively simpler, with no casting and machining and assembling of engine blocks and heads. And electric motors are more efficient in producing mechanical energy, doing away with fuel and cooling systems. More significantly, electric motors require less maintenance, may be more long lasting, and need no oil and fluid top ups or changes.

I cannot ascertain whether electric motors are cheaper to produce, but they can be simpler to make. As such, producing electric engines may not require the same number of jobs and resources as the production of gas or diesel engines. So, even assuming all other mechanical and electrical parts remain the same for EVs and regular cars except for the engine, it will still require fewer jobs to make an EV than a regular car.

We are currently equipped, tooled, and trained to assemble fossil fuel-powered vehicles, and to produce parts and components for this specific industry rather than the EV industry. And while an inventory of parts and components may indicate commonality, EVs also tend to be more reliant on high-technology, and require more components related to such.

Of course, such EV components — mainly electronics in nature — are produced by industries that are already giving up manual jobs in favor of robotics and artificial intelligence-assisted manufacturing. And many of these components tend to be replaceable and disposable. Thus, replacement work may be in, but repair and servicing work may be out.

When producers of gas- and diesel-fed engines close factories in favor of those making electric motors, the jobs lost will not necessarily shift. And the fewer jobs that remain will require a different set of skills. The same goes for other jobs in vehicle manufacturing and assembly. Many that will be lost will not be replaced. They may simply be lost for good.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Term deposit yields end mixed as PHL inflation picks up in May

BW FILE PHOTO

YIELDS on the central bank’s term deposit facility (TDF) ended mixed on Wednesday following the release of data showing Philippine headline inflation picked up for a fourth straight month in May.

The term deposits of the Bangko Sentral ng Pilipinas (BSP) fetched bids amounting to P293.309 billion on Wednesday, higher than P290 billion on the auction block and P226.658 billion in tenders for a P210-billion offer seen a week ago.

Broken down, tenders for the eight-day papers reached P139.331 billion, slightly below the P140 billion auctioned off by the central bank but above the P110.47 billion in bids for a P100-billion offering of seven-day deposits seen the previous week.

Banks asked for yields ranging from 6.5% to 6.55%, wider than the 6.51% to 6.5412% band seen a week ago. This caused the average rate of the one-week deposits to inch up by 0.09 basis point (bp) to 6.5345% from 6.5336% a week earlier.

The one-week tenor was adjusted from the regular seven-day maturity as its settlement date was moved to June 13 due to the Independence Day holiday on June 12, the BSP said.

Meanwhile, bids for the 14-day term deposits amounted to P153.978 billion this week, higher than the P150-billion offering and  P116.188 billion in tenders for the P110 billion worth of 15-day papers offered on May 29.

Accepted rates for the 14-day deposits were from 6.55% to 6.5895%, a tad wider lower than the 6.56% to 6.59% margin seen a week ago. With this, the average rate for the two-week tenor remained unchanged at 6.5761%.

The BSP has not auctioned off 28-day term deposits for more than three years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields were mixed following the release of May inflation data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Headline inflation quickened for a fourth straight month to 3.9% in May from 3.8% in April, the Philippine Statistics Authority reported on Wednesday.

Still, this was slower than the 6.1% print in the same month a year ago. The May consumer price index (CPI) was also within the BSP’s 3.7-4.5% forecast for the month and was a tad lower than the 4% median estimate in a BusinessWorld poll of 16 analysts conducted last week.

It also marked the sixth straight month that inflation settled within the central bank’s 2-4% annual target.

For the first five months, the CPI averaged 3.5%, within the BSP’s target range for the year.

The central bank expects inflation to average 3.5% this year.

“The inflation outturn is consistent with the BSP expectations that inflation could temporarily accelerate above the target range over the near term due to adverse weather conditions on domestic agricultural output and positive base effects. Nonetheless, the BSP expects average inflation to return to the target range for full-year 2024 and 2025,” the central bank said in a separate statement on Wednesday.

“The risks to the inflation outlook continue to lean toward the upside. Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and increase in global oil prices,” it added. “Looking ahead, the Monetary Board will consider the latest inflation outturn in its upcoming monetary policy meeting on June 27.”

Recent signals from BSP Governor Eli M. Remolona, Jr. that the Monetary Board could begin cutting rates before the US Federal Reserve also affected term deposit rates on Wednesday, Mr. Ricafort added.

Mr. Remolona earlier said the BSP could kick off its easing cycle with a 25-bp rate cut as early as the Monetary Board’s Aug. 15 meeting and could slash rates once or twice in the second semester as they are now “less hawkish than before.”

The Monetary Board last month kept its key rate steady at a 17-year high of 6.5%. The central bank raised borrowing costs by 450 bps from May 2022 to October 2023 to tame inflation. — Luisa Maria Jacinta C. Jocson

Dining In/Out (06/06/24)

Kamuning Bakery’s machang

THIS YEAR, the annual global Dragon Boat Festival, which falls on the 5th day of the 5th month in the Chinese lunar calendar, is celebrated on June 10th. Machang (also known as zongzi; sticky rice stuffed dumplings wrapped in lotus or bamboo leaves) is a traditional delicacy eaten during this festival. The practice dates back 2300 years, honoring classical poet and statesman Qu Yuan. Machang is freshly cooked weekly at the 85-year-old Kamuning Bakery Cafe. Its traditional machang has been immortalized in the Netflix series Street Food Asia. Kamuning Bakery Cafe offers three flavors of machang, all prepared the old-fashioned way: Double Pork (pork belly and shiitake mushrooms), Chicken Pork & Shiitake Mushrooms (tender chicken, pork belly, and shiitake mushrooms), and Taochang (pork belly, shiitake mushrooms, and beans). The heirloom recipes were passed down by the late poet and educator Mary Young Siu Tin. Kamuning Bakery Cafe is located at No. 43 Judge Jimenez St. corner K-1st St., Barangay Kamuning, Quezon City. One can also order through Food Panda or Grab. Bulk orders are accepted via call, text, or Viber at 0917-848-1818, 0918-807-7777, 7757-1120, 8371-7058, or 7919-9105.

Venchi comes to PHL

ITALIAN chocolatier and gelato maker Venchi is coming to the country thanks to a partnership between the SSI Group, Inc. and Venchi S.p.A. As part of Venchi’s expansion into Asia, the first shop is set to be located in Central Square Mall in Bonifacio Global City, Taguig. Venchi Philippines will feature its original recipes including its hazelnut-based chocolate and gelato, its best-selling product, Chocoviar, as well as its low sugar varieties. Founded in 1878, Venchi uses the finest natural ingredients and traditional Italian techniques to make its wares.

Breville’s new colors

BREVILLE’S espresso machines now also come in the minimalist shades of Sea Salt and Black Truffle. These colors will be available for Bambino Plus and Barista Express Impress models. Priced at P41,999, Breville’s Bambino Plus is equipped with an Auto MilQ hands-free texturing function that allows effortless microfoaming, while the Barista Express Impress, at P69,999, has a reliable Impress Puck System that lets even coffee beginners achieve the perfect dose and precise tamp while also minimizing the grinds on the machine and bench top. The new colorways for the Breville Bambino Plus and Barista Express Impress are currently open for pre-orders. They are only available in select SM Home branches nationwide. Meanwhile, the brand is also running the Brew Buddies promo which lets customers enjoy 50% off the Breville Smart Grinder Pro when they buy the Bambino Plus Stainless Steel Model. The offer is available via Breville’s official e-commerce channels and home appliance partner stores and malls.

Get caffeinated at NWR

Newport World Resorts (NWR) has a slew of signature brews at its various restaurants. At the Garden Wing Cafe (GF Newport Garden Wing), Arabica beans are brewed with organic butter and coconut oil for its Brain Boost Coffee that is a twist on a latte for keto individuals. At Casa Buenas (GF Newport Grand Wing), espresso meets tablea (drinking chocolate) and ube (purple yam) to make a rich and creamy mocha drink that is unmistakably Filipino. At Hotel Okura Manila, order a Matcha Latte at Yawaragi. The new signature drink harmonizes the bold flavors of earthy matcha, silky red beans, and local Benguet-Sablan coffee blend. The Madison Lounge & Bar at Hilton Manila has the Madison Blend, a cup of coffee with hints of roasted nuts and milk chocolate, while the Manhattan Blend has hints of ripe fruits and dark chocolate. At the Sheraton Manila Hotel, The Lounge’s signature brewed coffee is made with Single-Origin beans, sourced from local farms. For something different, The Kitchen by Coffee Bean & Tea Leaf has new cold brew offers, with the Caramel Cold Brew being an especially sweet deal. A classic that is worth a revisit is the Cappuccino from Mary Grace Cafe (2F Newport Mall). For a quick pick me up there are the Thai Iced Coffee from Mango Tree (2F Newport Mall), and the Cafe con Panna from Parmigiano (2F Newport Mall). There are also multiple branches of standbys like McCafe and Starbucks all over NWR. Or when all else fails, there is a PICKUP COFFEE Truck outside the Eighty One Mall.

Taco Bell’s Father’s Day bundle

TACO BELL marks Father’s Day with the Nacho-Ordinary Dad Pack — two Beef Burritos, two Tacos (crunchy or soft), one Nachos Supreme, and four 12-oz servings of soda, all for P699. The Nacho-Ordinary Dad Pack is available until June 30 only. Available at all Taco Bell branches for dine-in and take-out orders, and also for delivery by calling the 8911-1111 hotline.

Celebrate Father’s Day at Solaire

CELEBRATE Father’s Day with a wide selection of dining specials at Solaire Resort Entertainment City, from a brunch buffet to special set menus, or a relaxing afternoon tea. Have an Italian Sunday brunch at Finestra, with traditional beef tartare, roast leg of lamb, red wine-braised flat iron steak, and authentic carbonara. To make the day even more special, dads dining at Finestra will receive a gift. For a family feast, head to Red Lantern for their Eat-All-You-Can dim sum buffet and try their new set of ala carte specialties. Treat dad for a surprise brunch at Yakumi, which offers authentic Japanese dishes from eight live stations. Dads can also enjoy unlimited drinks, including Japanese shochu, sake, and a special Father’s Day cocktail featuring Japanese whisky Iwai and Horodoke Peach sake served in Highball. For a one-of-a-kind BBQ brunch experience with dad, visit the Butcher’s Block for a premium selection of meats, then visit the carving station for Cebu lechon or pork belly and whole roasted prime rib, paired with Waterside’s signature paella. Every dad receives a special gift to brighten his day. At Fresh, visit a variety of buffet stations showcasing seafood and meats from Filipino, Japanese, Korean, Italian, and Chinese cuisines, and indulge in unlimited lobster in Homard Tom Yum sauce by chef Goh Fukuyama of La Maison de la Nature Goh, a culinary haven in Fukuoka that boasts a Michelin Star. There will be a walking photo booth and a caricaturist, and diners will be serenaded by a live band and entertained by a magic show. Kids can join in the fun with games, arts and crafts, and visits to various food booths, including a popcorn and hotdog stand. Over at the Oasis Garden Café, watch out for the Whisky pop-up bar for a special toast to dad’s day. Reserve seats by calling 8888-8888 or e-mail restaurantevents@solaireresort.com.

Boracay’s OG Japanese restaurant turns 17

HAMA, Boracay’s top Japanese restaurant, celebrates its 17th birthday, as it continues to offer a unique blend of traditional and contemporary Japanese cuisine. Located at the center of the D’Mall, Station 2, Boracay, HAMA provides a Zen-like, casual ambiance that complements its beachfront location. The name hama, meaning “beach” in Japanese, is a fitting tribute to its close proximity to Boracay’s pristine white sands and gorgeous blue seas, which a three-minute walk can access. Owned by the Juan Elizalde and Paolo Occhionero, the same duo behind the island’s other popular dining establishments ARIA Cucina Italiana, Boracay Beach Truck, and Cafe Del Sol, HAMA continues to offer traditional Japanese dishes with innovative modern twists. Signature offerings include the sushi boat with 32 pieces of their bestsellers, teppanyaki udon, and hearty bowls of ramen.

Cebu Pacific to introduce direct flight from Cebu to Bangkok

CEBUPACIFICAIR.COM

BUDGET CARRIER Cebu Pacific (CEB) said it will launch two new destinations from its Cebu hub, including a direct flight to Bangkok.

The airline, operated by Cebu Air, Inc., will commence the Masbate route from its Cebu hub on October 25, consisting of three weekly flights (Monday, Wednesday, and Friday), Cebu Pacific said in an e-mailed statement on Wednesday.

Cebu Pacific will also begin the flights between Cebu and Don Mueang-Bangkok on Oct. 2, operating three times a week (Monday, Wednesday, and Friday).

“This expansion aligns with our mission to provide accessible and affordable air travel for every Juan. We are committed to connecting more destinations and offering our passengers more choices for their travel needs,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said.

Bangkok is one of Cebu Pacific’s first international destinations, with its maiden Manila-Bangkok service launched in 2006.

The airline also operates direct flights to Bangkok from Manila and Clark.

With the nearing launch of the Masbate route, Cebu Pacific said that travelers may now visit tourist destinations such as the white sand beaches of Ticao and Burias Islands as well as the marine life in Manta Bowl Shoal.

From Wednesday until June 13, Cebu Pacific announced that passengers can already book flights to Don Mueang-Bangkok and Masbate from Cebu for as low as P1 one-way base fare, exclusive of fees and surcharges.

The travel period for Don Mueang-Bangkok will be from Oct. 2 to 25, and Oct. 25 to March 29, 2025, for Masbate.

Cebu Pacific has 35 domestic and 25 international destinations across Asia, Australia, and Middle East.

On Wednesday, Cebu Air shares rose by 1.14% or 30 centavos to P26.60 per share. — Revin Mikhael D. Ochave

Philippine Realty and Holdings Corp. to hold 2024 Annual Stockholders’ Meeting virtually on June 28

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Concentrix eyes operational efficiency boost from GenAI

WANGXINA-FREEPIK

OUTSOURCING firm Concentrix said integrating generative artificial intelligence (GenAI) improved the efficiency of its operations and workers, but they remain wary of the risks of using this technology.

Concentrix Philippines Country Leader and Senior Vice-President Amit Jagga said in a roundtable on Monday that the use of GenAI has presented opportunities and challenges for the company.

Still, despite the improved efficiency brought by the technology, the firm’s “base revenue will be on a relatively slower rate of growth versus the past,” Mr. Jagga said.

“A lot of our clients are not able to implement GenAI on their own and what they need is help from partners like us to implement that,” he said.

“One big example of how we’ve used this is for a large airline company, where initially we were physically answering about 90 to 95% of their interactions through calls,” Mr. Jagga said, adding that it reduced the volume to 50% when the company deployed GenAI technology.

Concentrix said they currently use GenAI in three broad areas, namely self-service, allowing interactions to be automated before somebody needs to talk to a consumer; the  empowerment of the workers; and big data analysis or analytics.

The reception of AI among workers has been positive, Mr. Jagga said, as AI-powered solutions such as Real Time Assist help them to find the right answers to consumer queries, making agents personable and accurate as they do not have to be reliant on searching for pages related to the concern of the consumer.

“When we look at our traditional AI models, they were made to do specific tasks, they were evolved algorithms,” Mr. Jagga said.

In contrast, Gen AI is self-learning and able to generate on its own, he said.

“It’s a new kind of field and it definitely needs regulations,” he added.

Governments across the world will look at the regulation of GenAI in terms of risks such as the propensity to commit fraud like deepfakes, he said.

“Those are areas which need to be regulated for the privacy as well as for the general fraud prevention and compliance postures of the country,” Mr. Jagga said.

Concentrix has over 100,000 workers in over 50 sites across 20 cities in the Philippines.

“We’ve got operations in 70 countries across the world. The Philippines continues to be our largest. In total, we have a little over 450,000 game changers across the globe,” Mr. Jagga said.

As Concentrix employees have a hybrid work setup, they use an in-house developed platform called Secure CX for cybersecurity, he said.

“That platform… is able to co-create the same level of compliance standards that we run in the site. [It] has been very beneficial in executing the right level of compliance posture within work-from-home arrangements,” Mr. Jagga said. — A.R.A. Inosante

Good riddance to El Niño, but La Niña won’t be much relief

PHILIPPINE STAR/EDD GUMBAN

THE record-smashing global heat of the past year has been driven partly by an El Niño weather pattern in the Pacific Ocean. The good news is that El Niño is rapidly giving way to his cooler sister, La Niña. The bad news is that she won’t necessarily be any kinder to humanity.

El Niño and La Niña are two phases of a local climate phenomenon, the El Niño-Southern Oscillation (ENSO), which influences conditions around the world. A strong El Niño in 2015-16 produced record high global temperatures, deadly droughts and floods, a spate of Pacific cyclones and the worst coral-reef bleaching event in history, to name just a few outcomes.

Though the now-dying El Niño of 2023-24 was one of the strongest on record, it was still notably weaker than that of 2015-16. But its global effects were even more alarming: 12 consecutive months and counting of global heat records, ocean water temperatures going to places where there are no charts, even more severe coral bleaching and more deadly droughts and floods. Why was this El Niño period so much more devastating, despite having less oomph? You get one guess, and the answer rhymes with “shlimate shange.”

Most simplistically, El Niño tends to make the world hotter, while La Niña tends to cool it. But the background temperature of the planet is now 1.3 degrees Celsius warmer than in preindustrial times, thanks to our enthusiasm for burning fossil fuels. That gives any El Niño a higher platform from which to wreak havoc.

Persistent global heating also makes it less likely that La Niña’s imminent arrival will bring much relief, if any. There is still a strong chance that 2024 will be the hottest year on record, even if half of it is spent under cooler La Niña conditions.

“The end of El Niño does not mean a pause in long-term climate change as our planet will continue to warm due to heat-trapping greenhouse gases,” World Meteorological Organization (WMO) Deputy Secretary-General Ko Barrett said in a release on Monday. The WMO noted the past nine years have been the world’s hottest despite several of them having been spent under La Niña conditions.

In fact, the Pacific Ocean’s ENSO pattern has been in a neutral or La Niña phase for more than 17 of the past 30 years, which has done little more than temporarily slow the inexorable rise in global temperatures.

Adding injury to insult, La Niña phases also tend to crank up the frequency of Atlantic hurricanes by dampening “wind shear,” or the change in air temperature as it rises or falls. Between a nascent La Niña and ocean temperatures that continue to be jaw-droppingly hot, scientists expect a summer and fall chock full of Atlantic hurricanes.

The National Oceanic and Atmospheric Administration recently predicted there could be up to 25 named storms and up to seven “major” hurricanes this season, which began on June 1 and continues until Nov. 30. Unfortunately, forecasters in recent years have tended to underestimate the number of storms that actually happen. And the hotter ocean water and higher sea levels produced by climate change tend to make hurricanes more intense and destructive.

It was bad enough during the centuries when El Niño and La Niña simply batted the global climate back and forth like a badminton birdie. Once humans got involved in manipulating the climate, they proved to be even more powerful and destructive, just on a longer time scale. The upside is that humans also have the power to change their impact, by transitioning away from the fossil fuels that are making the planet hotter. In the meantime, we must keep adapting to weather that keeps growing more chaotic no matter which side of the net the birdie is on.

BLOOMBERG OPINION

BSP approves consumer redress standards for online transactions

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas’ (BSP) policy-setting Monetary Board has approved consumer redress mechanism standards for electronic payments to ensure the timely resolution of issues encountered in the use of online transactions, such as failed fund transfers.

BSP Circular 1195 Series of 2024, dated June 1, said the standards will cover account-to-account electronic fund transfers under the National Retail Payment System framework.

“The use of electronic payments continues to expand and is expected to steadily grow. With the increased adoption of digital payment services, the Bangko Sentral recognizes the need to ensure that Bangko Sentral-Supervised Institutions (BSIs) that offer electronic fund transfers (EFTs) through their participation in the Automated Clearing House/s (ACH) provide appropriate and timely consumer recourse mechanisms on issues lodged by consumers,” the central bank said in the circular, which amends the Manual of Regulations for Payment Systems to add a section on end-user protection as well as a glossary of terms.

“Defined industry-wide actions and expectations on clearing switch operators (CSOs) and ACH participants for the timely resolution of consumer concerns relating to EFTs build trust and confidence in the use of digital payments,” the BSP said.

The consumer redress mechanism standards shall apply to all CSOs and ACH participants that provide domestic account-to-account electronic fund transfers, including person-to-person, person-to-merchant, and person-to-biller payments.

“This regulation does not cover dispute resolution involving the delivery of products and/or services underlying the payment transaction,” the BSP said.

The standards include guidelines on necessary notifications for real-time or batched electronic fund transfers, the return of funds, collection and return of electronic fund transfer fees, the disruption of services and operations, and consumer protection.

“For instant retail payments and corresponding use cases, the amount debited from the sender’s account shall be returned to the sender’s account within one (1) hour from receipt of sender instruction. This shall apply to rejected transactions, returned transactions, and timed-out transactions,” the BSP said.

“For batch clearing and settlement of electronic payments and corresponding use cases, the amount debited from the sender’s account shall be returned to the sender’s account within two (2) hours from receipt of settlement report from the CSO for rejected transactions and returned transactions,” it said.

The central bank noted, however, that these rules will not apply to unauthorized or erroneous transactions.

Meanwhile, for service disruptions, CSO and ACH participants must notify the BSP and consumers on the occurrence of scheduled and unscheduled downtime, which must include information and updates on the status, the reason for the issue, as well as the expected period for the resumption of service.

The central bank added that financial institutions have the “primary responsibility of communicating to the sender, as their own accountholders, the status and updates on investigations, and resolution of unauthorized and/or erroneous transactions” as part of its consumer protection standards.

“The ACH operating guidelines shall provide industry-level standards, procedures, and information sharing mechanism, as applicable, from relevant stakeholders, in handling possible root causes of unauthorized transactions (e.g., social engineering, phishing, among others),” it said.

All BSP-supervised firms covered by the circular must comply with its provisions by Dec. 31.

“The same period is afforded for the necessary coordination and/or approvals among the respective ACHs and/or the Philippine Payments Management. Inc., and the issuance of the revised ACH operating guidelines,” it added. — L.M.J.C. Jocson

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