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Venezuela asks UN Security Council to say US strikes illegal

VENEZUELAN FLAG flutters outside the Torrejon de Ardoz Air Force Base outside Madrid, Spain, Sept. 8, 2024. — REUTERS

UNITED NATIONS — Venezuela has asked the United Nations Security Council to determine that deadly US strikes on vessels off its coast are illegal and issue a statement backing Venezuela’s sovereignty, according to a letter seen by Reuters on Thursday.

US President Donald Trump has ordered a large US military buildup in the southern Caribbean, and the troops have conducted at least five strikes on vessels the Trump administration has described as involved in drug trafficking, without providing evidence.

In a letter to the 15-member Security Council, dated Wednesday, Venezuela’s UN Ambassador Samuel Moncada accused Washington of killing at least 27 people in the strikes on “civilian vessels transiting international waters.”

He asked the council to “investigate” the strikes to “determine their illegal nature” and issue a statement “reaffirming the principle of unrestricted respect for the sovereignty, political independence, and territorial integrity of states,” including Venezuela.

In Caracas, Venezuelan President Nicolas Maduro said that while the CIA has long been linked to coups around the world, no previous government had publicly stated it ordered the CIA to “kill, overthrow, and destroy countries.”

Maduro accused the CIA of being authorized to conduct operations aimed against the peace of Venezuela.

“But our people are clear, united, and aware. They have the means to once again defeat this open conspiracy against the peace and stability of Venezuela,” the president said during an event broadcast on state television.

US HOLDS VETO POWER
However, the Security Council will be unable to take any action beyond holding meetings on the situation because the United States holds veto power. The council met for the first time last week over the tensions at the request of Venezuela, Russia, and China.

At that meeting, the United States justified its actions as consistent with Article 51 of the founding UN Charter, which requires the Security Council to be immediately informed of any action states take in self-defense against armed attack.

US Ambassador to the UN Mike Waltz said on Thursday Trump would use the intelligence community, the defense department, and diplomacy “to defend US sovereignty against actions that are actively killing Americans.”

“Venezuela can bring whatever they want to the UN. You know what’s also part of the UN is Article 51 of the UN Charter that enables a country to defend itself. And that’s what President Trump’s doing and is going to do,” he told Fox News.— Reuters

LRMC continues to support students’ English literacy

LRMC volunteer employees administering a pre-test to students of Baclaran Elementary School Central as part of the English literacy support program. - PR PHOTO

Light Rail Manila Corp. (LRMC), in partnership with Binhi English Literacy Foundation, Inc., on Thursday said it will sponsor 25 students from Baclaran Elementary School Central for the 2025-2026 school year to help improve their English literacy.  

 “We believe that a strong foundation in literacy is a building block for a brighter future,” LRMC Health, Safety, Environment, and Quality (HSEQ) Department Head Jason N. Magdaong said in a statement. 

 “By continuing our partnership with Binhi, we are not only helping these young students improve their reading skills but also empowering them to reach their full potential. This is our way of contributing to a more literate and prosperous nation,” he added.  

 In the 2024 edition of the English Proficiency Index (EPI) by international education company Education First (EF), the Philippines ranked 22nd out of 116 countries, two spots lower than a year earlier.  

 The country scored 570 out of 800, earning a “high” proficiency rating, which indicates Filipinos have sufficient English skills to give workplace presentations, understand TV shows, and read newspapers. 

 The Philippine Statistics Authority (PSA), in a separate report in July, revealed that more than one in five Filipinos aged 10 to 64 struggle to comprehend what they read despite being able to read, write, and compute. 

 The agency added that the basic literacy rate in the country stands at 93.1%, while the functional literacy rate is at 70.8%. 

 To equip the younger generation with strong foundations in English literacy, the LRMC noted that the partnership aims to help students aged five to eight in reading and comprehension.  

 Since its launch in School Year 2020-2021, the program has benefited over a hundred scholars. 

 The agency underscored that this initiative aligned with the United Nations Sustainable Development Goal (UN SDG) 4: Quality Education, which aims to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.  

 “LRMC’s support for the program is rooted in its dedication to the well-being of communities along the LRT-1 and its belief in the potential of Filipino children,” it said 

LRMC is a joint venture of Ayala Corp., Metro Pacific Light Rail Corp., and Macquarie Infrastructure Holdings (Philippines) Pte Ltd. Metro Pacific Light Rail is a unit of Metro Pacific Investments Corp., one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT Inc. and Philex Mining Corp. 

 Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group, which it controls. — Almira Louise S. Martinez

Magnitude 6.2 quake jolts Surigao del Norte

CREDIT: PHIVOLCS-DOST FB PAGE

A magnitude 6.2 earthquake struck off the coast of Surigao del Norte on Friday morning and was felt in several areas, according to the Philippine Institute of Volcanology and Seismology (PHIVOLCS).

The tremor, tectonic in origin, occurred at 7:03 a.m., with its epicenter located 13 kilometers south of General Luna, Surigao del Norte at a depth of 10 kilometers.

It was felt at Intensity IV in Cabadbaran City, Agusan del Norte; Hinunangan, San Francisco, Hinundayan, and Silago in Southern Leyte; and Surigao City, Surigao del Norte, PHIVOLCS said.

PHIVOLCS also said that damage and aftershocks are expected following the event.— Edg Adrian A. Eva

Growth goal still ‘attainable’ — DBM

A vendor sells Halloween decorations at a market in Quezon City, Oct. 13. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Aubrey Rose A. Inosante, Reporter

THE PHILIPPINE ECONOMY can still grow within the 5.5-6.5% target this year as spending is expected to “normalize” in the fourth quarter, Department of Budget and Management (DBM)Secretary Amenah F. Pangandaman said.

Ms. Pangandaman, who also chairs the Development Budget Coordination Committee (DBCC), said the gross domestic product (GDP) growth target of 5.5-6.5% for this year “remains attainable.”

“Spending is expected to catch up and normalize toward the latter part of the year,” she told BusinessWorld in a Viber message on Oct. 15.

“Momentary slowdown in public infrastructure spending is expected as agencies do due diligence, especially DPWH (Department of Public Works and Highways) as it reviews and evaluates its roster of projects,” she said.

Finance Secretary Ralph G. Recto earlier this week said economic growth likely cooled in the third quarter, adding that the slowdown may continue until early 2026 as heightened scrutiny over anomalous projects dampens government expenditure.

President Ferdinand R. Marcos, Jr. had flagged anomalous flood control projects during his State of the Nation Address in late July. This sparked several investigations into alleged corruption involving lawmakers, government officials, and private contractors.

Earlier, Economy Secretary Arsenio M. Balisacan said the DBCC will wait for third-quarter data to be released on Nov. 7 before revising growth targets.

However, he noted that achieving the full-year growth goal has “become harder” due to a likely slowdown in government spending.

In the first half, GDP growth averaged 5.4%, slower than 6.2% a year ago.

Ms. Pangandaman said the economic team remains “vigilant and proactive” in managing fiscal risks while staying aligned with the medium-term fiscal framework.

In June, the DBCC tempered its growth forecast to 5.5-6.5% for 2025 and 6-7% for 2026, mainly due to “heightened global uncertainties” arising from the Middle East conflict and US tariffs.

Ms. Pangandaman said the country’s growth momentum will be supported by key factors, including sound macroeconomic fundamentals, easing inflation, and a lower interest rate environment.

She also cited favorable credit and financial markets, stronger private sector momentum, and more efficient public spending as driving economic growth.

In a separate statement on Thursday, Mr. Recto said the economy is expected to post stronger economic growth ahead, citing improved governance and institutional reforms following the flood control mess.

“Growth is being supported by low inflation, easing policy rates, strong consumer spending, and a vibrant labor market,” he said.

Headline inflation averaged 1.7% in the first nine months of the year, matching the forecast of the Bangko Sentral ng Pilipinas.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the DBCC may need to revise its macroeconomic assumptions to reflect more realistic conditions amid persistent global headwinds, fragile consumer confidence, and fiscal constraints.

The economic managers should also prioritize targeted stimulus and institutional reforms to support resilience, he said.

“It will be challenging but not impossible, despite the third-quarter slowdown,” Mr. Rivera said in a Viber message on Thursday.

“Growth will depend on whether domestic consumption and investment rebound during the holiday season, if government spending accelerates, and if inflation remains within target,” he added.

Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said the DBCC should revise its growth targets in light of the corruption scandal over flood control projects.

“Corruption scandals have had a chilling effect on investor sentiment,” he said in a Viber message on Thursday.

Mr. Peña-Reyes said the economy likely expanded by 5.6% in the third quarter, accelerating from 5.2% growth in the same period a year earlier.

For the full-year, growth will likely settle at 5.5%, matching the lower end of the government’s target range but slower than the revised 5.7% in 2024.

Foundation for Economic Freedom President Calixto V. Chikiamco said the Philippine economy’s performance is likely to “disappoint” this year given the headwinds facing the Philippines.

“The picture could be worse next year when the Trump tariffs start to bite and global slowdown occurs,” he said in a Viber message.

RECTO REJECTS VAT REDUCTION
In addition, Mr. Recto warned against some lawmakers’ proposals to lower the value-added tax (VAT) rate to 10%, saying this move could result in “massive revenue losses” and force the government to borrow to fund basic operations.

“The entire VAT collection for 2025 of P1.39 trillion can only fund nine months’ worth of payroll, premium, and pension of active and retired government workers,” said Mr. Recto, who authored the measure that hike the VAT rate in 2005.

Several lawmakers have filed bills seeking to either scrap or cut the 12% VAT rate. VAT collections account for about a fifth of the Bureau of Internal Revenue’s total revenues.

Mr. Recto said excise tax collections, projected at P576 billion this year, would not be enough to cover the P965-billion budget for basic, tertiary, and technical-vocational education programs.

Philippines faces skill gap as green economy push gains pace

Solar panels are seen at this facility in Batangas. — PHILIPPINE STAR/NOEL B. PABALATE

By Patricia B. Mirasol, Multimedia Producer

BUSINESSES and policymakers face a widening gap between the demand for skilled labor and the workforce’s readiness to fill green jobs, as the Philippines accelerates its transition to a green economy.

Industry leaders and government officials warn that unless the country scales up training programs, the promise of economic growth from renewable energy, electric vehicles and sustainable construction could be undermined by the lack of qualified workers.

“Are we ready for these changes?” Francis A. Macatulad, program director at the Asia Society for Social Improvement and Sustainable Transformation (ASSIST), a nonprofit that promotes capacity-building and sustainable practices, told BusinessWorld in a virtual interview. “Unfortunately, we are not. We don’t have the technicians.”

His warning underscores a structural challenge for Southeast Asia’s second-most-populous nation.

As climate change reshapes economies worldwide, the Philippines is under pressure to retrofit aging infrastructure, decarbonize energy systems and adopt greener modes of transportation. But the country is still scrambling to align its workforce with those demands.

The World Economic Forum projects that green and energy-transition roles such as renewable energy engineers and electric vehicle specialists will be among the fastest-growing job categories in the coming years.

The International Labour Organization (ILO) estimates that the shift to a green economy could create 24 million jobs globally by 2030.

The Asia-Pacific region is particularly exposed, with 43% of its workforce considered vulnerable to climate-related shocks and the disruptions from decarbonization, according to the ILO. For the Philippines, where millions of workers remain in carbon-intensive or informal industries, the transition risks leaving many behind without targeted support.

Labor Undersecretary Carmela I. Torres said the government is working to balance the creation of green jobs with inevitable losses in traditional industries such as coal and fossil fuel-based transportation.

“The transition to a green economy should be just and inclusive, ensuring that workers in traditional industries are not left behind,” she said in an e-mailed reply to questions. “This aims to shift towards environmentally friendly practices while ensuring the creation of decent work opportunities and addressing social inequalities.”

Still, she acknowledged persistent challenges: gaps in training programs, limited funding, and the lack of awareness among workers and employers about opportunities in the green sector.

Some of the country’s biggest companies are trying to bridge the gap by embedding sustainability across their organizations.

Ayala Corp., one of the Philippines’ oldest business groups, ensures its sustainability agenda extends beyond dedicated teams.

“Our corporate strategy, business development, investor relations, and treasury teams, among others, are updated on the latest and most relevant thinking in sustainability to ensure that it is embedded into our long-term planning and investments,” Francisco R. Milan, Ayala’s chief human resources officer, said in an e-mailed reply to questions.

Ayala Land, Inc., the group’s property arm, hosts quarterly forums on topics such as decarbonization, regenerative design and water resource management. Globe Telecom, Inc., meanwhile, launched an online Sustainability Academy in 2021 to help its 8,000 employees adopt sustainable practices at home and at work.

“Across the group, sustainability and human resource teams are working closely to identify ways to more widely embed the value of sustainability among all employees,” Mr. Milan said.

The Aboitiz Group has also made sustainability central to its real estate and infrastructure ventures. Aboitiz InfraCapital, Inc.’s economic estates, including Lima Estate in Batangas, have earned a five-star Building for Ecologically Responsive Design Excellence (BERDE) district certification. It features a sustainability hub with a waste-to-eco brick facility, rainwater harvesting and compost-to-fertilizer systems.

“It’s about shifting how everyone in the organization thinks about placemaking and future-proofing for the new economy,” Monica L. Trajano, vice-president for business development at Aboitiz unit LIMA Land, Inc., told BusinessWorld in an interview.

“We must be able to integrate agility and innovation as we emphasize sustainability and best practices,” she added.

Working with urban planning consultants such as Singapore-based Surbana Jurong Pte Ltd., Aboitiz has identified specific workforce gaps in renewable energy and sustainable construction. “There is a skill gap in practical areas like installation, maintenance, repair and even the basic knowledge in sustainable construction,” Ms. Trajano said.

‘MINDSET SHIFT’
While infrastructure upgrades are critical, advocates stress that behavior change is just as important.

“Designing green is the easiest part,” Christopher C. de la Cruz, chief executive officer at the Philippine Green Building Council, said in an interview. “Staying green is the biggest problem.”

He noted that even the most energy-efficient systems are wasted if occupants use them improperly. “It’s a mindset shift.”

The council administers the BERDE green building rating system and partners with organizations such as the Philippine Business for Education to develop training programs. It also works with universities like the University of San Carlos in Cebu to update curricula so graduates are equipped with green skills from the outset.

Green jobs are for everyone — including janitors, messengers, and plumbers, Mr. De la Cruz said. “If you’re able to transition your work today into a cleaner kind of work that contributes [to mitigating] the climate crisis, then it’s a green job.”

Nonprofit groups are stepping in to address the training deficit. ASSIST, for example, works with technical-vocational associations in Mindanao and Metro Manila to give instructors updated training materials.

It has also established an advisory committee with the Technical Education and Skills Development Authority (TESDA) and chambers of commerce to identify skill gaps.

“We are upskilling the current tech-voc students, or in some cases reskilling technicians to be able to work with the new technologies,” Mr. Macatulad said.

The Philippines already has a legislative framework in place. The Green Jobs Act of 2016 seeks to identify skill needs, train and certify workers and provide financial support including tax deductions for green-skill programs.

The Labor department and TESDA have also issued a joint memo to strengthen career guidance and training alignment with industry needs.

“Efforts such as those by TESDA are crucial for developing a workforce capable of meeting these demands,” Ms. Torres said. “Both public and private sector investments are needed to support the development of a robust green job training ecosystem.”

For the private sector, investment in education is vital to long-term competitiveness.

“We recognize that no single institution or the private sector acting alone can produce the necessary talent at scale,” Mr. Milan said. Government investment in education is critical so Philippine schools can produce a workforce that supports the drive of industries for sustainability, he added.

Aboitiz’s Ms. Trajano called the skill gap both a challenge and an opportunity.

“Our biggest opportunity as a country is our labor force, and we really must focus on that, with the public and private sectors working together,” she said. “The skill gap is also our biggest opportunity in terms of influencing the quality of our educational institutions.”

As the Philippines braces for the impacts of climate change — rising sea levels, stronger typhoons, and disrupted agricultural cycles — building a workforce ready for the green economy has become more than an economic necessity.

The Philippines is in a race against time. “There are a lot of projects that will be coming on stream very soon, and they need technicians,” Mr. Macatulad said.

PHL ranks near bottom of Global Pension Index

PEOPLE inquire about their benefits at the Social Security System (SSS) Diliman branch in Quezon City, Jan. 3. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE PHILIPPINES’ pension system remained the third worst in the world, according to the 2025 edition of Mercer CFA Institute’s Global Pension Index.

The Philippines’ score, which is graded based on adequacy, sustainability, and integrity, improved to 47.1 in 2025 from 45.8 in 2024, primarily due to “clarification of regulations,” the report said.

However, the score was way below the 64.5 global average, and the third-lowest score among 52 retirement income systems in the index. Last year, the Philippines’ pension system was also the third worst out of 48 systems.

Mercer CFA Institute: Philippines’ pension system still third worst in the world

In the report, the pension systems in the Philippines, Turkey, Argentina and India, were given a “D” grade. This means the pension system has some “desirable” features but also has “major weaknesses” that should be addressed.

“Without these improvements, its efficacy and sustainability are in doubt,” the report said.

The Netherlands had the best pension system with a score of 85.4. Aside from the Netherlands, the pension systems in Iceland, Denmark, Singapore and Israel were also given an “A” grade, which meant they had robust and sustainable systems that deliver good benefits with a high level of integrity.

The Global Pension Index reviews an economy’s retirement income systems based on three weighted subindices: adequacy, sustainability, and integrity.

The Philippines’ adequacy score went down to 40.6 in 2025 from 41.7 in 2024. This was below the global average of 66.1 for adequacy.

Its sustainability score improved to 64.4 from 63.4, which was higher than the global average of 55.3.

For integrity, the Philippines’ score inched up to 33.2 from 27.7. However, this was significantly lower than the global average score of 74.7.

The Philippines was the only economy in the integrity sub-index that had an “E” grade, which indicates “a poor system that may be in the early stages of development or nonexistent.”

“The Philippines’ retirement income system comprises a small basic pension and an earnings-related social security pension,” the report said.

“Members can receive a lifetime pension if they have contributed for a minimum of 180 months for government and 120 months for nongovernment members. Both schemes provide calibrated benefits if the minimum number of contributions is not satisfied.”

The Mercer CFA Institute report said the Philippine pension systems could be improved if the minimum level of support for the poorest elderly is increased and the benefits are aligned with the country’s cost of living.

It also said the Philippines’ requirements for vesting in private sector plans should be improved.

The report said the local pension system lacks non-cashout options for retirement plan proceeds, so they are preserved for retirement purposes.

It also cited the need to improve governance requirements for the private pension system.

In the Philippines, there are two main pension funds — the Social Security System (SSS) for private workers and the Government Service Insurance System  for government workers.

Starting Jan. 1 this year, the SSS increased the contribution rate to 15%, up from 14%. Under Republic Act No. 11199 or the Social Security Act of 2018, the SSS implemented incremental contribution rate hikes of one percentage point every two years starting in 2019 from the original contribution rate of 11%.

All SSS pensioners as of Aug. 31, 2025 began receiving higher pensions starting September this year. Retirement and disability pensions will increase by 10% annually every September until 2027, while death or survivor pensions will rise by 5% each year. — A.M.C.Sy

Five firms express interest in North-South rail contract

The North-South Commuter Railway project will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. — PHILIPPINE STAR/MIGUEL DE GUZMAN

AROUND five local and foreign companies have expressed interest in bidding for the operations and maintenance (O&M) contract of the North-South Commuter Railway (NSCR) project, the Department of Transportation (DoTr) said.

“The original schedule is either the last week of October or first week of November (for the bidding) as suggested by our transaction advisor, the ADB (Asian Development Bank). So far, I think there were four or five companies (interested),” Transportation Acting Secretary Giovanni Z. Lopez told reporters on the sidelines of a transport conference on Wednesday.

These companies are a mix of local and foreign firms, Mr. Lopez said, adding that the names of these firms cannot be disclosed before the auction officially starts.

In September, the agency said it was working double time to secure an operator for the NSCR project. It was targeting early October for the release of bid documents following the conclusion of its final roadshow, which drew interest from foreign firms.

For Rene S. Santiago, an international consultant on transport development and former president of the Transportation Science Society of the Philippines, local companies are capable and well-suited to operate such a massive rail line like NSCR.

Philippine-based companies are also capable of operating and managing the NSCR, but foreign firms may have the advantage when it comes to channeling profits, Mr. Santiago said in a Viber message on Thursday.

“The dice are loaded against local firms. Foreign consultants wrote the specs; foreign bidders held the playbook; and local companies would play in dim light. The bidding rules are also pro-foreign, while locking the government into massive subsidies,” Mr. Santiago said. 

The agency has conducted roadshows in Japan, Singapore and France to promote the P229.32-billion O&M contract for the NSCR project.

Transportation Undersecretary Timothy John R. Batan said that the contract for the NSCR O&M will be for a period of 15 years.

The agency is fine-tuning the bidding documents for the concession to address the feedback and comments from roadshow participants which include investment returns, Mr. Batan said.

The ADB, which serves as the Transportation department’s technical advisory services provider for the project, previously said the DoTr aims to award the concession by March or April next year, with the formal bidding process expected to take around six months.

The 147-kilometer NSCR will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. The P873-billion project is co-financed by the Japan International Cooperation Agency and the ADB. It will have 35 stations and three depots.

According to the DoTr, the NSCR can begin partial operations of the Valenzuela to Malolos line by 2027; while the Malolos to Clark segment can start operations by 2028. — Ashley Erika O. Jose

‘AI-nabled’ marketing in focus on 54th National Marketing Conference

With the evolving digital landscape, the demand for artificial intelligence (AI) has never been more apparent. AI has redefined how Filipino lives are operating — from daily household chores to office tasks, it gives not just information but also convenience.

The same potentials are starting to be explored as well in the marketing field, and so the Philippine Marketing Association (PMA) will host the 54th National Marketing Conference (NMC) with the theme “AI-NABLED MARKETING: Artificial Intelligence Inside Out” on Oct. 23 at Hilton Manila, Newport World Resorts in Pasay City.

AI’s potential as an agent for progress has been overshadowed by confusion and being a potential threat to human capability. Hence, the forum aims to help Filipino marketers discover and understand AI’s potential while remaining human-centric.

“It is a call to action. We’re at a pivotal moment where technology and human creativity are converging in unprecedented ways.” Faye Arellano-Martinez, executive vice-president and director for NMC, said during the launch of this year’s conference. “The goal of this event is to really demystify AI and how it can be a powerful tool for enhancing and adapting our marketing strategies.”

For businesses, AI has become integral to their survival and growth. “The role of marketers today is no longer confined to creativity alone — it now requires mastery of data, technology, and consumer psychology,” the NMC’s Overall Chair Lucien Dy Tioco emphasized. “[AI] will not replace our creativity nor empathy. It will supercharge them and make things faster and easier for us, so we can focus on other strategic tasks.”

Bringing together entrepreneurs, marketers, and academics — the forum will feature international and local keynote speakers. Key conference sessions will cover: real-world applications for improving reach, personalization, and efficiency; leveraging neuroscience to decode Filipino consumer behavior and decision-making; and strategies that help brands stay ahead amidst disruption.

The 54th NMC will also include panel discussions, workshops, and interactive sessions that will focus on empowering Filipino businesses with tools, strategies, and insights to keep pace with the AI-driven economy.

“While the challenge of embracing AI is still there, it is our responsibility to impart wisdom and knowledge not only to our people, but also to our business partners, fellow marketers, and most especially, to our customer,” 2025 PMA President Ma. Cristina Llacer Oreta explained. “Hence, this year’s conference will be highlighted by our invited select key leaders who has the experience and ability to discuss the latest trends in AI marketing and how we can help our fellow Filipinos separate reality from virtual reality.”

Furthermore, the conference will also explore on how AI is redefining innovation and competition in marketing with confessionals from business owners who gained feat by using the technology.

Participants are expected to learn AI-driven neuromarketing strategies to enhance content, commerce, and customer experience.

For registration, inquiries, and partnerships, you can contact PMA Secretariat Lira Ligero through 0917-308-7877 or email at lira@philippinemarketing.net.ph.

 

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DoE clarifies coal moratorium rules; allows new capacity only in exceptional cases

PIXABAY

THE Department of Energy (DoE) has clarified the implementation of its coal moratorium policy, saying that new capacity from on-grid coal-fired power plants may be allowed only under “exceptional circumstances.”

In an Oct. 14 advisory signed by Energy Secretary Sharon S. Garin, the agency laid out additional conditions and exemptions governing the processing of applications for endorsements for new coal-fired power projects.

The advisory was issued pursuant to guidance from the Office of the President and addresses inquiries about the moratorium’s applicability to self-generating or own-use facilities, as well as to new capacities in both on-grid and off-grid areas.

The DoE said the 2020 moratorium halted the processing of applications for new or “greenfield” coal projects, except for those “falling under the conditions for non-coverage,” noting that increased requests for clarification prompted the formal advisory.

EXCEPTIONAL CASES, EXEMPTIONS
Under the updated policy, the DoE said new capacity from on-grid coal plants may be allowed “solely under exceptional circumstances, such as during a declared or imminent power crisis, or when there is an imminent shortage of electricity supply that, if unaddressed, may lead to severe impacts in specific areas or regions.”

The agency also identified other categories of coal projects that may qualify for non-coverage under the moratorium. These include industrial parks planning to develop and use coal-fired power plants for their own operations, “provided that locators registered as Philippine Economic Zone Authority (PEZA) industrial park locators secure endorsement from the PEZA,” according to the advisory.

Coal-fired power projects in off-grid areas are also explicitly exempt, as are own-use coal plants supplying power for mining and processing of critical minerals essential to energy transition projects.

Developers of projects that fall under these instances are required to apply with the DoE for a “letter of acknowledgment of non-coverage,” the advisory said.

Proponents of coal-fired projects with existing letters of acknowledgment of non-coverage must commit to a guaranteed delivery or commercial operations date (COD), with any changes subject to DoE review and approval.

“All coal-fired power plants with a letter of acknowledgment of non-coverage shall have a time-bound transition plan to renewable or clean energy sources, with retirement or conversion to clean fuel alternatives not later than Dec. 31, 2060, whichever comes earlier,” the advisory read.

“This does not preclude such power plants from being retrofitted or converted for continued operation using clean fuel alternatives to coal.”

The DoE said the updated advisory supports the Philippines’ energy transition goals while maintaining energy security.

It will also study and determine a specific timeline for the retirement or transition of all existing coal-fired power plants, taking into account “the economic life span of the power plants, access to financing mechanisms, and the need to ensure sufficient and stable energy sources to replace coal.”

EFFECTIVITY
The advisory, addressed to all concerned stakeholders including the Energy Regulatory Commission (ERC) and PEZA, took effect immediately upon posting on the DoE website.

“The Department of Energy remains committed to balancing energy security, affordability, and sustainability in line with the country’s clean energy transition,” the agency said. — Sheldeen Joy Talavera

CNPF boosts coconut processing capacity with P2.6-B Mindanao facility acquisition

CENTURYPACIFIC.COM.PH

LISTED food and beverage manufacturer Century Pacific Food, Inc. (CNPF) is expanding its coconut processing capacity with a $45-million (around P2.6 billion) investment to acquire and upgrade a fully integrated facility in Tupi, South Cotabato, from Roxas Sigma Agriventures, Inc. (RSAI) through its subsidiary Coco Harvest, Inc. (CHI).

In a statement on Thursday, the company said the transaction marks its third coconut processing facility in the Philippines, following its existing plants in General Santos and Misamis Occidental, the latter acquired in 2024.

It said the investment will be funded through internally generated cash flows.

The plant produces high-value coconut products such as coconut cream, coconut milk, virgin coconut oil, and coconut water concentrate.

Planned upgrades, the company said, will expand its capabilities to serve both domestic and export markets, add new product lines, and improve overall efficiency.

CNPF also said the acquisition is expected to create around 800 manufacturing jobs in Mindanao and support local coconut farmers through its supply chain network.

“This acquisition is a milestone for our coconut business and a testament to our commitment to inclusive growth,” said Noel M. Tempongko, Jr., CNPF vice-president and general manager for OEM Coconut Exports.

“By expanding our capacity in coconuts, we enhance our competitiveness in the global coconut industry and create meaningful economic opportunities for local communities in Mindanao.”

CNPF began manufacturing coconut water for export in 2012 and has since expanded into producing a range of coconut-based products for domestic and overseas markets.

It also partners with regional players such as Linaco Manufacturing in Southeast Asia.

In 2019, the company launched its own branded coconut line in the local market. It recently renewed a five-year supply contract with The Vita Coco Company, Inc., valued at about P14 billion, which will take effect in January 2026.

In a separate disclosure, Roxas and Company, Inc. (RCI) said its subsidiary RSAI sold the 2.2-hectare integrated processing facility to reduce debt and focus on the development of its landholdings in Nasugbu, Batangas.

“We are confident that Century’s plans to upgrade the facility will usher in a new phase of growth and expanded product offerings,” RSAI Business Development Manager Antonio T. Roxas said.

On Thursday, CNPF rose by P1.25 or 3.42% to close at P37.75 apiece, while RCI slipped by one centavo or 0.36% to P2.79 each. — Alexandria Grace C. Magno

PAL to pilot GenAI voice agent to handle 80% of live agent tasks

AN AIRPLANE is seen landing at the Ninoy Aquino International Airport, March 7, 2024. — PHILIPPINE STAR/RUSSELL PALMA

By Beatriz Marie D. Cruz, Reporter

SYDNEY, AUSTRALIA — Flag carrier Philippine Airlines (PAL) is investing in artificial intelligence (AI) technology to improve customer experience and operational efficiency, starting with AI-driven voice bots and a unified data platform that aims to deliver more personalized engagement.

PAL Vice-President for Customer Experience Mark Anthony C. Munsayac said the company is piloting a proof of concept for its Generative AI-powered voice agent this quarter, which is designed to handle up to 80% of the tasks performed by live agents.

“The tool will use a natural-sounding bot powered by GenAI and will be able to perform up to 80% of the tasks that a [PAL] live agent can perform,” he told BusinessWorld on Oct. 15 here.

The AI voice agent will assist customers in checking flight status, rebooking, or canceling tickets. PAL expects the technology to automate 50-70% of inquiries, with the remainder handled by human agents.

“For PAL, by March 2026, we should be achieving the super AI agent status — that’s for e-mail, chat, and voice,” he said, noting that the transformation will allow AI to both answer queries and execute service tasks.

Since launching its GenAI chatbot in June, PAL has recorded a 45% deflection rate, indicating that nearly half of customer concerns are being resolved without human intervention.

Despite this, Mr. Munsayac said PAL will continue to maintain live agents to cater to passengers who prefer personal interaction, particularly from older demographics.

“Our strategy is human plus the AI agent working together. In the foreseeable future, I don’t expect PAL to get rid of live agents. We always want to give that option to passengers,” he said.

PAL currently receives up to 8,000 customer concerns daily, he added.

Beyond AI voice and chat, the airline is developing a unified communication platform that will consolidate customer-related data from marketing, services, and sales. The system will use machine learning to analyze customer behavior and generate targeted offers.

“It’s integrating and unifying all the customer engagement data that we have so we can get to know our customers on a personal level,” Mr. Munsayac said. “That can help improve customer experience and drive revenue for us.”

He said the system will also address data silos and ensure compliance with data privacy laws.

“When we offer you something, it’s not random — it has to be something relevant to your trip or to you as a person,” he said.

According to the 2025 State of Customer Engagement Report by US-based cloud communications firm Twilio, 71% of Philippine consumers are willing to spend more when a brand’s engagement is personalized in real time.

TV5’s Vibe PH now hosts Awit Awards

ON OCT. 15, Mquest Ventures and the Philippine Association of the Record Industry (PARI) signed a partnership that would let the 38th Awit Awards — the country’s longest-running music award-giving body — hold its awards show within TV5’s Vibe PH, an OPM (Original Pilipino Music) countdown show. The awards show will be held on Nov. 16.

“They’re going to do the awards in the Vibe program,” said Jane Basas, MediaQuest Holdings Inc. president and chief executive officer. Mquest Ventures is the content creation hub of the MediaQuest Group, which also includes BusinessWorld.

The Awit Awards will be held on Nov. 16 at the Meralco Theater, directed by Johnny “Mr. M” Manahan. It has five categories: Performance Awards, Genre Recording Awards, Special Recording Awards, Technical Achievement Awards, and Grand Awards.

Vibe jocks Ana Ramsey, Maxie, Joao Constancia, Elijah Canlas, Dylan Menor, Ryle Santiago, Paolo Angeles, Kych Minemoto, and Queenay will host the awards night and kick it off with a special performance. Joining them will be Vibe’s young Gen Vs, who will interview the nominees and bring exclusive behind-the-scenes moments. Performers for that evening include Ben&Ben, Over October, Lola Amour, and Dionela.

“From a format standpoint, it actually makes sense,” she told BusinessWorld after the contract signing at the PLDT Ramon Cojuangco Building in Makati. “They give recognition to Filipino music and artists. That’s the same thing that we celebrate in Vibe.

“The objective of Awit’s management is to attract the young listeners and the young viewers, and that’s precisely the target market for Vibe.”

This comes on the heels of recent activity within Mquest Ventures’ music publishing and label, MQuest Music, which has published two new releases since its inception a month and a half ago, by Ms. Basas’ count. These include Kit Inciong’s “Sukob Na” and “Tayo na Lang” by Carmela Lorzano, along with a partnership with songwriter Vehnee Saturno.

“I see it as a pillar in an ecosystem of entertainment platforms I’m building,” she said. “The big vision for MediaQuest is to make sure that we’re able to build an ecosystem of content and platforms. Part of that content is actually music.”

The 38th Awit Awards will be broadcast nationwide via Vibe on TV5. Audiences can also catch the event via livestream on the official social media platforms of Vibe PH, TV5, MQuest Ventures, and Awit Awards. Lists of the nominees can be found on the Awit Awards Facebook page (facebook.com/AwitAwards/). — Joseph L. Garcia

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