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PCC turns to AI to detect uncompetitive behavior

ARTIFICIAL INTELLIGENCE (AI) can help the government detect business activity that violates competition law, the Philippine Competition Commission (PCC) said.

“In terms of performing our mandate, I think the application of AI can help us monitor all possible business activity,” PCC Executive Director Kenneth V. Tanate told BusinessWorld on the sidelines of a forum on Tuesday.

AI can help monitor the production and entry of goods into the country and spot trends indicative of uncompetitive behavior, he said.

“If we see that there is a competition issue, through Generated AI information, we can easily investigate. We can pinpoint businesses that may commit violations of Philippine competition law.”

To accelerate the public’s adoption of AI, legislators must prioritize the passage of the Konektadong Pinoy bill, National Economic and Development Authority (NEDA) Undersecretary Krystal Lyn T. Uy said.

“AI needs internet to use. If many parts of the country are unconnected, then they will be unable to use the technology,” she said on the sidelines of the forum.

Previously called the proposed Open Access in Data Transmission Act, the measure seeks to provide affordable internet access by promoting fair competition and removing barriers to entry in the data transmission sector.

House legislators already approved the measure in December, while it awaits second reading at the Senate.

Only 33% of households have access to fixed broadband, with only 70% of the population with an active mobile broadband subscription, the World Bank said in a blog.

In the Philippines, the cost of fixed broadband charges represents 11% of per capita gross national income — double the ASEAN (Association of Southeast Asian Nations) average. 

The Philippines may unlock value estimated at P2.6 trillion annually if domestic business can introduce AI to their daily operations, NEDA Secretary Arsenio M. Balisacan said in July. — Beatriz Marie D. Cruz

ADB to invest in reducing Asia-Pacific lead exposure

PHILSTAR FILE PHOTO

THE Asian Development Bank (ADB) will increase its investments in reducing lead exposure in the Asia-Pacific, noting the health and economic costs it imposes on countries in the region.

In a statement, the Manila-based multilateral lender said it has entered into partnerships with various institutions to eliminate childhood lead exposure by 2040.

The Partnership for a Lead-Free Future, in collaboration with United Nations Children’s Fund and the US Agency for International Development, will target high-risk countries like Bangladesh, Indonesia, India, and Nepal.

The bank will also integrate lead elimination into its universal healthcare support programs, starting with the Philippines. 

“Lead exposure doesn’t just affect children’s health — it holds back entire economies,” ADB Vice-President for East and Southeast Asia and the Pacific Scott Morris was quoted as saying.

“We will dedicate ADB’s expertise and resources to help ensure that countries across Asia and the Pacific can mitigate lead exposure, enhance public health, and secure a healthier, more productive future for all.”

Lead is a strong neurological and cardiovascular toxicant, accounting for about 1.5% of global deaths yearly, UNICEF and nonprofit organization Pure Earth said in a 2020 report.

At least 400 million children in the region are affected by toxic lead exposure, causing major economic losses, health risks, and cognitive impairments, ADB said.

Lead-related cognitive underdevelopment costs $1 trillion in economic losses yearly, it added. 

The bank has also begun discussions on lead contamination with the governments of the Philippines, India, and Indonesia, it said.

The ADB is also looking to develop a Chemical and Wastes Financing Partnership Facility, which will focus on chemical management, especially on lead mitigation. This will be done in collaboration with the Global Environment Facility and the United Nations Industrial Development Organization.

“Through these programs, ADB has been working to ensure equitable access to health services, address gender-specific health needs, and mitigate the health impacts of climate change,” the bank said. — Beatriz Marie D. Cruz

UNDP, IBM tap AI tools to model equitable access to energy

REUTERS

INTERNATIONAL Business Machines Corp. (IBM) and the United Nations Development Programme (UNDP) have developed artificial intelligence (AI) tools bringing data-driven decision-making to the fore to facilitate a just energy transition.

The models are Electricity Access Forecasting, which will contain data from countries including the Philippines and the statistical geospatial model, Clean Energy Equity Index, IBM said in a statement on Tuesday.

“Bringing together UNDP’s knowledge and global leadership in sustainable development and IBM’s breakthrough innovations in AI and hybrid cloud, we are proud to unveil solutions that demonstrate the power of technology to make a lasting, positive impact on our environment and in our communities,” Justina Nixon-Saintil, IBM vice-president and chief impact officer said.

She said making these accessible to the public will empower organizations and community members in making impactful energy decisions around the world.

“The Electricity Access Forecasting AI model uses the IBM watsonx AI and data platform, IBM Cloud, and an open-source machine learning library to provide future forecasts at scale of electricity access through 2030,” IBM said.

This evaluates factors such as population, infrastructure, urbanization, elevation, and satellite data in addition to land use data provided by IBM Environmental Intelligence.

The model will contain data from 102 countries from the Global South, including those in Africa, Asia-Pacific, Latin America, and the Middle East.

On the other hand, the Clean Energy Equity Index, developed by IBM and UNDP together with Stony Brook University, is a first-of-its-kind statistical geospatial model combining geospatial analytics with environmental, economic and social factors.

Education, greenhouse gas emissions, and relative wealth are factored in to generate a Clean Energy Equity score of 0-1.

This score reflects both opportunities for clean energy development as well as urgency, with a view towards achieving equity and a just transition. — Aubrey Rose A. Inosante

ASEAN ‘best economic opportunity’ over medium term, European businesses say

REUTERS

MORE than half of European businesses surveyed see ASEAN as providing the best economic opportunities over the next five years, the European Union-ASEAN Business Council (EU-ABC) said.

In EU-ABC’s 10th EU-ASEAN Business Sentiment Survey, 61% of the 399 respondents singled out the region as the source of the best economic opportunities.

“Over the 10 years that the Council has conducted the survey, our respondents regularly report that ASEAN is the region of best economic opportunity, and they see it as a region where they intend to increase investment and trade,” EU-ABC Chairman Jens Rübbert said in the report.

The survey found that 86% of respondents expect the level of their trade and investment in the ASEAN market to increase over the period and believe that ASEAN economic integration is important to the success of their business in the region.

“What is harkening is that many of our respondents are showing an inclination to expand their operations in the region, with high numbers reporting an intent to do so in Indonesia and Thailand in particular,” said Mr. Rübbert.

The survey showed that 76% of the European firms expressed a strong sentiment to expand in Indonesia, while 70% said that they might expand in Thailand.

In the Philippines, around 60% of the respondents said that they may expand, surpassing the results for Brunei, Cambodia, Laos, and Myanmar.

“While our respondents report a high level of importance for ASEAN’s regional economic integration plans to their business operations, it is also clear from the results that they have little or no faith in ASEAN’s ability to deliver fully on those plans,” the EU-ABC official said.

In the survey, 88% of the respondents said that there are too many barriers to the efficient use of the supply chain in the region, from only 72% of 599 respondents saying the same last year.

Some 40% of European businesses also cited increasing non-tariff barriers to trade in the region, a big jump from only 8% last year.

Meanwhile, only 2% of the respondents said that customs procedures in the ASEAN region are speedy and efficient.

In terms of trade agreements, 88% of the European businesses said that a region-to-region free trade agreement (FTA) will deliver more advantages than a series of bilateral FTAs. The same number said that they are at a disadvantage due to the lack of region-to-region FTAs.

“The continued absence of a region-to-region FTA between the EU and ASEAN is perceived as a disadvantage, emphasizing the importance of stronger, more proactive engagement from the EU to ensure that European businesses can thrive in ASEAN’s dynamic markets,” EU-ABC said.

It added that to realize the potential in the ASEAN market, ASEAN policymakers must work on removing existing barriers, enhancing economic integration, and forging stronger ties with the EU through comprehensive trade agreements. — Justine Irish D. Tabile

Philippines considering all deterrent options amid sea dispute with China

US ARMY PACIFIC

THE PHILIPPINES is considering all security options that would deter Chinese aggression in the South China Sea, after the US said it does not plan on pulling out its missile system it left in Manila, according to the country’s Defense chief.

“Whatever will serve our deterrent purpose for our national defense, of course that is open for consideration,” Defense Secretary Gilberto Eduardo Gerardo C. Teodoro, Jr. told reporters on the sidelines of a Senate hearing on his agency’s budget for 2025.

Washington has no plans to withdraw its Typhon missile system from the Philippines and is studying its use in a regional conflict, Reuters earlier reported.

China and Russia have criticized the move, saying it could fuel an arms race in the region.

“Why don’t they look at their own offensive missile capabilities and remove them, destroy their nuclear weapons and get out of the West Philippine Sea?” Mr. Teodoro said. “Why are they picking on a country which is seeking to strengthen its credible deterrent posture?”

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

The US Army flew the Typhon, which can launch missiles including SM-6 missiles and Tomahawks with a range exceeding 1,600 kilometers (994 miles), to the Philippines in April in what it called a “historic first” and a “significant step in our partnership with the Philippines.”

The Philippines is open to acquiring the Typhon midrange missile system, Agusan del Norte Rep. Jose “Joboy” S. Aquino II said last week, as he sponsored the 2025 budget of the Defense department.

But there was no offer yet from the Philippines to buy the missile system and it is not included in the Defense department’s military modernization wish list that will be funded by standby funds in the 2025 national budget, he told the House of Representatives plenary.

The Chinese Foreign Ministry has said Manila and its allies ganging up on Beijing would only worsen tensions and destabilize the region.

Manilla, Washington, Ottawa and Canberra held their first joint military exercises in the South China Sea on Aug. 7 and 8 amid Beijing’s increased military buildup in the waterway.

The United States, a treaty ally of the Philippines, has held similar exercises with other countries in the disputed water, having carried out drills with Manila and Tokyo in June.

The Philippines and China have resumed diplomatic talks on how to ease tensions, even as both sides insisted on upholding their sovereign rights over features in the South China Sea.

The two nations have traded accusations of intentional ramming of each other’s vessels in a series of clashes last month, just after reaching a pact on resupply missions to a beached Filipino naval ship at Second Thomas Shoal.

Philippine Foreign Affairs Secretary Enrique A. Manalo has said Manila does not want to gang up on China with the international community, as it considers bringing the sea dispute to the United Nations General Assembly.

“So, if they’re throwing stones right now, let them remove their nuclear arsenal, withdraw from places that they are not supposed to be,” Mr. Teodoro said.

“How can a country, which is seeking to protect its exclusive economic zone from unlawful aggression, be a cause of instability in the Indo-Pacific, [if it] does not have offensive nuclear weapon capabilities, has not reclaimed islands and has not claimed a non-dash line which is illegal and absurd?” he added.

Mr. Manalo in July assured his Chinese counterpart that the presence of the missile system in his country posed no threat to China and would not destabilize the region.

China has fully militarized at least three of several islands it built in the South China Sea, which it mostly claims in full despite a 2016 arbitral ruling that backed the Philippines, arming them with anti-ship and anti-aircraft missiles, the US has said.

China says its military facilities in the Spratly Islands are purely defensive, and that it can do what it likes in its own territory.

China claims almost the entire South China Sea, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam.

Portions of the waterway, where $3 trillion worth of trade passes yearly, are believed to be rich in oil and natural gas deposits, as well as fish stocks. — John Victor D. Ordoñez

PHL Senate to OK military pact with Japan by year-end

PHILIPPINE STAR/EDD GUMBAN

By John Victor D. Ordoñez, Reporter

THE SENATE plans to ratify the Philippines’ reciprocal access agreement with Japan by year-end despite being busy with next year’s national budget, according to the Senate president.

At a forum with foreign journalists, Senate President Francis “Chiz” G. Escudero said they have enough time to take up the military pact in between deliberations on the national spending plan.

“Personally, I don’t see any reason why this should not be (ratified by the Senate),” he said. “Given the long queue of departments that need to be scrutinized, there’s usually a lull and we usually, by traditional practice, take up topics of legislation to maximize the time of the Senate.”

He said he is confident senators would back the deal when the chamber takes it up in session.

The Philippines and Japan signed the military pact in July to ease the entry of equipment and troops for combat training from Japan and to ensure stability in the region amid growing tensions with China.

The agreement is the first of its kind to be signed by Japan in Asia and coincides with increased Chinese assertiveness in the South China Sea, where Beijing’s expansive claims conflict with those of several Southeast Asian nations.

The treaty will take effect after being ratified by both countries’ Parliaments.

“Hopefully, this is ratified soon so we can get the implementing rules and regulations,” Philippine Defense Secretary Gilberto Eduardo Gerardo C. Teodoro, Jr. told reporters.

The Philippines has a visiting forces agreement with the United States and Australia. Tokyo, which hosts the biggest concentration of US forces abroad, has a similar deal with Australia and Britain, and is negotiating another with France.

A United Nations-backed tribunal based in the Hague in 2016 voided China’s expansive claims in the South China Sea for being illegal.

Beijing insists it has sovereignty over most of the South China Sea based on its old maps and has deployed hundreds of coast guard vessels deep into Southeast Asia to assert its claims, disrupting offshore energy and fishing activities of its neighbors including Malaysia and Vietnam.

Japanese Foreign Minister Yoko Kamikawa earlier told a news briefing during her visit to Manila that the defense pact is not targeted against any country.

Tokyo is committed to providing the Philippines with more patrol vessels and surveillance radar systems that can be deployed in the South China Sea, she said.

“In any long-standing relationship there would be disagreements,” Mr. Escudero said, referring to Manila’s sea dispute with Beijing. “The challenge is how, without really changing your position, to concentrate on and to focus on what you agree on and what you can work on together.”

DA probing firm behind overstaying containers with rice

PHILIPPINE STAR/RYAN BALDEMOR

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES’  Department of Agriculture (DA) on Tuesday said it’s investigating one or two companies that were likely behind the overstaying of more than 800 container vans carrying rice imports at a Manila port.

“In two weeks, we would know the details of the company — whether it’s existing or not, and whether it still has offices and personnel,” Agriculture Secretary Francisco P. Tiu Laurel, Jr.  told a news briefing at the presidential palace. He declined to name the company.

Authorities at the weekend said 888 container vans carrying 23,000 metric tons (MT) of imported rice — or 0.75% of the total supply that has entered the country this year — had been sitting at the Manila International Container Terminal for months.

Mr. Laurel said most of the containers were still within the 30-day staying period allowed by ports.

He cited the Philippine Ports Authority’s (PPA) statement on Monday that more than 300 containers had been claimed by their consignees.

He added the Customs bureau has deemed abandoned shipments that had been sitting at the port since 2022 and 2023.

PPA General Manager Jay Santiago on Monday said that by Oct. 1, they would send a report to the Agriculture department on the overstaying shipments and would ask Customs to declare these abandoned.

They may be auctioned or donated to other agencies such as the Social Welfare department, he added.

The Customs bureau at the weekend said only 630 containers of rice remained at the port, with 492 containers having been cleared for release. None of the shipments had exceeded the 30-day period, it added.

Mr. Santiago said it’s possible that importers were awaiting higher rice prices in the market before taking their shipments out of the port.

Market conditions were not favorable to importers because of government efforts to lower rice prices including the reduction in tariffs, he said.

It’s also cheaper for importers to store rice supply at government ports than to lease private warehouses, he said, citing instances when containers have stayed at the port for as long as 275 days.

The government aims to reduce rice prices by P5 to P7.

Philippine inflation eased to 3.3% last month from 4.4% in July, due to a moderate rise in food prices and a decline in transport costs, according to the local statistics agency.

The price increase of nonalcoholic beverages slowed to 3.9% from 6.4% in July, while transport prices declined by 0.2%.

Rice inflation slowed to 14.7% from 20.9%. Still, it remained the top contributor to August’s 3.3% inflation, which was within the government’s 2-4% target for the year.

Guo to reveal POGO mastermind in executive session

ALICE L. GUO — SENATOR RISA HONTIVEROS FACEBOOK PAGE

DISMISSED Bamban Mayor Alice L. Guo told senators on Tuesday she would be willing to reveal the supposed international crime syndicate pulling the strings behind the offshore gaming operations in Tarlac province in an executive session.

“I am not the mastermind, you can say that I am a victim,” she said in Filipino before a senate committee, looking into her involvement in crimes linked to Philippine Offshore Gaming Operations (POGOs).

“The committee probably figured out who is behind everything over the course of the investigation.”

The senators and Ms. Guo met in a closed-door session right after the hearing ended.

In the same hearing, Senator Ana Theresia N. Hontiveros-Baraquel lifted the contempt order against Shiela Guo, Alice’s sister, and transferred her to the custody of the Bureau of Immigration from the Senate.

The dismissed Mayor and her siblings were cited in contempt in July for failing to show up in several Senate hearings investigating their involvement in POGO-linked crimes.

Authorities are also looking into a former national police chief who had been allegedly bribed by Ms. Guo to help her escape the country.

The dismissed mayor, who was arrested in Jakarta on Sept. 4, earlier told senators that she fled the country via a yacht.

She has been accused of coddling an illegal POGO in Bamban, Tarlac, where she ran and won for the first time as mayor in 2022. Raided by authorities in March, an illegal hub on land she partially owned had been linked to scamming operations.

In his third State of the Nation Address, Philippine President Ferdinand R. Marcos, Jr.  ordered the Philippine Amusement and Gaming Corp. to shut all POGO companies by the end of the year, citing their links to organized crime.

“This blatant abuse of our institutions must stop, these human trafficking activities must stop,” Ms. Hontiveros said. “We must eradicate these syndicates.” — John Victor D. Ordoñez

VP Sara resignation sought

VICE-PRESIDENT Sara Duterte-Carpio, in this Aug. 27, 2024 photo, attended the deliberations on the proposed 2025 budget for the Office of the Vice-President at the House of Representatives in Quezon City. — PHILIPPINE STAR FILE PHOTO/MIGUEL DE GUZMAN

VICE-PRESIDENT Sara Z. Duterte-Carpio should resign from public office if she has no interest in defending the Office of the Vice President’s (OVP) proposed budget for next year before the House of Representatives, a lawmaker said on Tuesday.

“Our Vice President is consistent… in the sense that she didn’t attend the [House] committee on appropriations budget hearing, and she didn’t attend the plenary session either,” Party-list Rep. Raul Angelo D. Bongalon said in a press briefing.

“If that’s the case, it shows that she’s not interested in her duties as the Vice President of the Philippines. If she’s not interested…, we can ask the Vice President to step down,” he added.

The OVP did not immediately reply to an e-mail seeking comment.

Ms. Carpio has snubbed the House’s deliberations on the OVP’s proposed P2.03- billion budget for next year, drawing the ire of congressmen. This led to a 64% cut to her budget, as lawmakers argued social development projects of the OVP were redundant with the Health and Social Welfare departments.

She also refused to meet Lanao del Sur Rep. Ziaur-Rahman Alonto Adiong, who is the designated sponsor of the OVP budget during plenary debates.

In a letter dated Sept. 11 addressed to Mr. Adiong’s office, published online on Sept. 23, the OVP reiterated that it “leaves the deliberation of our budget proposal in the plenary entirely to the pleasure of the House of Representatives.” — Kenneth Christiane L. Basilio

Budget in line with gov’t agenda

A VIEW of residential condominium buildings in Mandaluyong, Metro Manila, Aug. 22, 2016 — REUTERS

THE PROPOSED P6.352-trillion national budget for next year is still consistent with the Marcos administration’s socioeconomic development plan despite budget cuts to several socioeconomic agencies, a congressman said, citing convergence programs among them.

The 2025 national budget was crafted with the goal of achieving “economic and social transformation” by meeting the objectives set under the Philippine Development Plan 2023-2028, according to a summary from the Department of Budget and Management (DBM).

Under the 2025 National Expenditure Program, the DBM slashed the proposed budgets for agriculture, health, and social welfare by 4.7%, 7.6%, and 3.4%, respectively. Allocations for labor were also decreased by 26.1%, with trade and industry receiving a 3.9% cut.

“We have a lot of interrelated projects. While you may see a slash in a certain department, sometimes they’re boosted by programs which fall under other departments,” Party-list Rep. Ramon Rodrigo L. Gutierrez said in a media briefing on Tuesday.

“For example, we’re talking about the Department of Agriculture and the Department of Public Works and Highways, the component of the flood control projects now also includes rainwater catchment so that actually comes into irrigation,” he added. — Kenneth Christiane L. Basilio

More MSU teaching positions OKd

THE Budget department has greenlit the creation of 175 teaching positions at the Mindanao State University (MSU).

The new teaching positions will help strengthen the quality of education and human capital development in the Mindanao island, Budget Secretary Amenah F. Pangandaman said in a statement.

“We are not only simply filling the staffing gaps in MSU but elevating the quality of education across the region so that our students have access to top tier learning opportunities,” she was quoted as saying.

Of the total, 100 teaching positions for Assistant Professor IV were created for MSU-Iligan Institute of Technology. Its Personal Services (PS) requirements, which cover the payment of salaries, wages, honoraria and other types of compensation, are estimated at P81.11 million, according to the department.

Likewise, 75 plantilla positions for Instructor I will be assigned to 12 secondary MSU schools, DBM said. It has an estimated PS requirement of P39.22 million.

The additional teaching staff will address the demand for qualified faculty and increase the university’s enrollment count, the Budget department said.

The department has issued the Notice of Organization, Staffing, and Compensation Action for authorizing the new positions on Sept. 17.

Alongside its main campus in Marawi City, the MSU System operates seven other schools in Mindanao. These are located at Iligan City, Tawi-Tawi, Misamis Oriental, Maguindanao, General Santos, Jolo, and Zamboanga Sibugay. — Beatriz Marie D. Cruz

PEZA-IEK HQ to power Baguio ecozone

THE Philippine Economic Zone Authority (PEZA) tapped IEK HQ Special Energy Philippines, Inc. to partner in powering the Baguio City Economic Zone (BCEZ) with renewable energy (RE).

In a statement on Tuesday, PEZA said that it signed a memorandum of understanding with the power company to formalize their partnership for a rooftop solar installation project within the BCEZ.

Slated to be one of the largest solar energy installations in the region, the project aims to transform unused rooftop spaces into energy-generating assets to supply clean and RE power to the locators.

“The project will likely be implemented in phases, with the first phase targeting key industrial buildings within BCEZ. As more rooftops are outfitted with solar panels, the total capacity will grow incrementally,” the company said in a press release.

Meanwhile, PEZA said that the company presented plans for multiple solar power plants in the country, which have a total installed capacity of seven megawatts-peak.

“These solar facilities are set to power the Baguio City Economic Zone, based on initial assessments and site information provided by PEZA Pampanga,” the investment promotion agency said.

According to the company, the project aims to position the BCEZ as a model for other economic zones looking to adopt green technology.

The Department of Energy plans to increase the share of RE in the country’s power generation mix to 35% by 2030 and 50% by 2040. — Justine Irish D. Tabile