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The future of money

STOCK PHOTO | Image from Freepik

You know you’re old — like me — if you have more years behind you than ahead of you; if at some point in your life you flew in or out of the old Manila International Airport (since NAIA Terminal 1 opened only in 1982); or if you knew what Traveler’s Checks (TCs) were, and maybe even used them.

Yes, I belong to that generation. And looking back now, I’m amazed at how much we’ve transitioned over the years: from using cash, mainly US dollars, and good-as-cash TCs, to credit and debit cards when traveling. Gone are the days when cash was king abroad.

Next year, that transition could become even more dramatic. Filipinos traveling across Southeast Asia may soon be able to pay for goods and services electronically, using mobile phones, QR codes, and Philippine e-wallets such as GCash and Maya, or mobile banking apps. These tools will allow payments in local currency, drawn from peso accounts, and settled in real time.

This shift could further reduce our reliance on cash abroad, and perhaps even dampen the use of credit and debit cards for overseas spending. With the implementation of Project Nexus, cross-border electronic payments within the Association of Southeast Asian Nations (ASEAN) may soon become seamless and widespread.

The planned regional payment system will rely on country-specific QR codes, or Quick Response codes. These are two-dimensional matrix barcodes that appear as square patterns and can store a wide range of encoded data. QR codes are machine-readable, or scannable by smartphones, and are already in widespread use domestically for payments.

As of today, eight ASEAN member states already have national QR payment systems: the Philippines, Indonesia, Malaysia, Thailand, Singapore, Cambodia, Laos, and Vietnam.

These systems are being integrated through the ASEAN Integrated QR Code Payment System initiative, aiming for full interoperability by 2026.

The goal is simple but ambitious: by next year, ASEAN travelers should be able to use their local e-wallets or bank apps to scan QR codes in any participating country, and pay in the local currency, debited from their local accounts or wallets, with real-time automatic currency conversion. No cash or card required.

This infrastructure will be powered by Project Nexus, which links ASEAN domestic fast payment systems into a multilateral hub-and-spoke platform based in Singapore. Developed by the BIS Innovation Hub Singapore Centre, Nexus is designed to connect each country’s Instant Payment System (IPS) — in our case, InstaPay — to a central hub, eliminating the need for individual bilateral links.

The Philippines is well-prepared for this integration. Our domestic QR system, QR Ph, is already widely used. The key remaining hurdles to full regional participation are regulatory: alignment on data privacy, anti-money laundering (AML) protocols, consumer protection, and cross-border merchant onboarding.

Instead of building custom bilateral pipelines, the Nexus model requires each national IPS operator to connect once to the hub. In the Philippines, that operator is BancNet, which runs InstaPay, the real-time clearing and settlement platform for domestic interbank and e-wallet transactions.

BancNet was nominated to connect the Philippines to Nexus as the national clearing switch operator. It already provides the backbone for banks and e-wallets to interoperate within the country. Through InstaPay, more than 120 financial institutions, including both traditional banks and e-money issuers, are technically enabled to participate in Nexus once it’s live.

Among these are GCash and Maya, both of which are InstaPay participants. This means they are automatically part of Nexus, via BancNet. Once cross-border QR interoperability is active, GCash and Maya users will be able to route international payments through the Nexus hub.

In practical terms, a Filipino traveler in Bangkok or Singapore could scan a local merchant’s QR code, pay using their Philippine wallet (GCash or Maya), and the merchant would receive the correct amount in their own currency, automatically converted, instantly settled.

The connection between InstaPay and Nexus will be enabled via secure, internet-based Application Programming Interfaces (APIs). All Nexus transactions will follow a very specific messaging standard to ensure uniformity and compatibility across systems. Data will be encrypted and transmitted through high-availability internet channels with strict security protocols.

Real-time foreign exchange (FX) conversion will be handled by pre-approved liquidity providers, which will maintain pre-funded pools or collateral accounts to minimize risk. Payments will settle instantly or near-instantly using each country’s domestic clearing systems.

Each transaction is expected to complete in under 10 seconds, with account holders identified by mobile numbers or wallet identifiers. Nexus itself will not hold funds. It will simply route instructions and facilitate confirmations.

Initially, to reduce risk, Nexus will support only low-value, retail-sized transactions. This mirrors existing practices in domestic QR and e-wallet ecosystems, and ensures safe scaling as the network matures.

By 2026, ASEAN-wide interoperability is expected. Japan and South Korea have already expressed interest in joining Project Nexus, which could allow the use of QR Ph in both countries in the future.

The only ASEAN country currently not part of the QR integration is Brunei, which has yet to launch its own national QR standard. However, Brunei is developing a national instant payment system called tarus, with tarusQR in the works. A regulatory mandate requires QR compliance by 2027, making Brunei a likely latecomer to Nexus.

The Bangko Sentral ng Pilipinas (BSP) has full authority, under its charter and without the need for enabling legislation, to subscribe the Philippines to Project Nexus. The BSP has constitutional and statutory power to regulate payment systems, manage currency, and oversee financial system interoperability.

Private banks and e-money issuers like GCash and Maya do not need to sign separate agreements with Nexus. Their inclusion happens through their existing participation in InstaPay. BancNet will serve as the technical integration point for Philippine financial players.

This is more than just a payment convenience. The implementation of Nexus and QR interoperability signals a regional financial realignment. By allowing direct local-currency transactions (e.g., Philippine peso – Thai baht, Philippine peso – Singapore dollar), the system reduces dependency on the US dollar for intra-ASEAN trade and travel.

Fewer people will need to buy US dollars for travel. That means less pressure on local foreign exchange reserves and reduced transaction costs for consumers. Over time, this could contribute to greater regional monetary cooperation, and more resilient cross-border flows.

Additionally, as cash usage declines and digital payments rise, younger generations may hold less physical currency and rely increasingly on wallets and bank apps. Money becomes more borderless, more instant, and more adaptive.

As QR Ph and Project Nexus take shape, the way Filipinos use money abroad is about to change radically. The future of travel money is fast, digital, and integrated. And maybe, you won’t need US dollars to do it.

We’ve truly come a long way since the era of Traveler’s Checks.

 

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

matort@yahoo.com

AI won’t make us obsolete — it’ll make us superhuman

By David Irecki

ARTIFICIAL INTELLIGENCE (AI) is fast becoming one of the biggest growth engines in the Philippines. According to Access Partnership, it could unlock P2.8 trillion ($50.7 billion) in economic value by 2030. That’s a game-changing opportunity, but it also raises an age-old question: what does this mean for human jobs?

It’s a valid concern, but one that needs reframing. AI isn’t here to sideline people. It’s here to amplify what we can do. As Boomi Chief Executive Officer Steve Lucas puts it, “AI is meaningless without humans. AI won’t take away our jobs. It will make us superhuman.”

Instead of asking whether AI will replace us, the better question is, how do we harness it in ways that empower people while building a workforce ready to thrive alongside it?

AI IS CREATING NEW ROLES
The world of work is evolving faster than ever. In 2024, one in ten hires on LinkedIn held job titles that didn’t even exist at the turn of the millennium. Roles like AI Engineer, Data Scientist, and Customer Success Manager, once considered niche, have become mainstream. It’s a clear sign of a deeper shift sweeping across industries everywhere.

In the Philippines, this transformation is already well underway. According to the Information Technology and Business Process Association of the Philippines (IBPAP), 67% of IT and business process management (ITBPM) firms are currently using AI. Despite the automation narrative, however, only 8% of those companies have reported any reduction in headcount.

As AI takes over repetitive and time-consuming tasks, it frees people to focus on higher-value work such as creative problem-solving, strategic thinking, and collaboration. But to fully realize this potential, we must ensure the workforce is equipped with skills that AI cannot replicate.

UPSKILLING AS A NATIONAL IMPERATIVE
The good news is that the Philippines is already taking steps to future-proof its workforce. The government’s National AI Upskilling Plan for 2026 is setting aside P1.5 billion ($26.18 million) to prioritize AI education, starting as early as high school.

But preparing for an AI-driven future requires more than technical training alone. Effective upskilling must also prioritize soft skills such as adaptability, critical thinking, and emotional intelligence — uniquely human strengths that remain irreplaceable, even as automation accelerates.

According to the Philippine Institute for Development Studies, many Filipinos struggle in this area — highlighting the need for a renewed focus on digital literacy, resilience, and problem-solving in both academic and professional development programs.

If successful, the rewards will be significant. Access Partnership estimates that narrowing the digital skills gap could add P809 billion ($14.5 billion) to the Philippine economy annually by 2030.

A NEW MODEL FOR TALENT DEVELOPMENT
In the past, early-career employees often spent years on routine, manual tasks. Today, AI is handling much of that work. New talent must be prepared to contribute at a strategic level from day one.

While AI can make decisions, draft reports, or analyze data at scale, it still can’t fully emulate the nuance of human judgment. It lacks context, compassion, and creativity, all of which are vital in business.

To support this, we need a new approach to career development — one that embeds mentorship, continuous learning, and hands-on experience with AI technologies. It also requires deeper alignment between academic institutions and industry to ensure education stays relevant to evolving business needs.

At the heart of this approach is a simple truth: there will always be humans in the loop. The future of work isn’t about choosing between humans or AI — it’s about equipping people to work smarter, together with AI.

BUILDING A FUTURE WHERE HUMANS THRIVE WITH AI
Technology should empower people. One of the most powerful manifestations of AI today is the rise of AI agents. These digital assistants automate tasks, provide intelligent recommendations, and even communicate with other systems in real time.

When designed and deployed thoughtfully, these agents can free people to focus on higher-value work that requires critical thinking, empathy, and creativity. But to harness their full potential, businesses need to build them responsibly. That means putting transparency, oversight, accountability, and clear guardrails from the start.

As AI continues to advance, it’s easy to be dazzled by what it can do. But even as it transforms how we work, qualities unique to humans will remain the cornerstone of truly future-ready organizations.

 

David Irecki is the Chief Technology Officer for APJ, Boomi

Manila last among neighbors in ISUI Smart City Index

MANILA continued its downward slide in the latest global index of “smart cities” by International Society for Urban Informatics (ISUI), even ranking last among select Asia-Pacific cities. Read the full story.

Manila last among neighbors in ISUI Smart City Index

Del Monte Pacific Limited’s 2025 Annual General Meeting to be held on Sept. 11 in Singapore

 

 

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Peso jumps before Fed minutes, symposium

BW FILE PHOTO

THE PESO rebounded against the dollar on Wednesday on expectations of a dovish tone from the minutes of the US Federal Reserve’s July meeting overnight and the much-awaited gathering of US central bankers later this week.

The local currency closed at P56.96 versus the greenback, climbing by 14 centavos from Tuesday’s finish of P57.10, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Wednesday’s session sharply weaker at P57.25 per dollar. Its intraday best was its closing level of P56.96, while its weakest showing was at P57.39 against the greenback.

Dollars traded dropped to $1.83 billion on Wednesday from $1.98 billion on Tuesday.

“The peso appreciated from dovish expectations ahead of the release of Fed policy minutes overnight,” a trader said in a Viber message.

The peso rose “ahead of the speech by Fed Chair Jerome H. Powell in view of the Fed’s Jackson Hole economic policy symposium… as a source of new leads on possible Fed rate cuts,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The trader said anticipation for Mr. Powell’s speech during the gathering could continue to support the peso when trading resumes on Friday. Philippine financial markets are closed on Aug. 21 (Thursday) for the Ninoy Aquino Day holiday.

The trader sees the peso moving between P56.80 and P57.05 versus the dollar on Friday, while Mr. Ricafort said the local unit could trade from P56.85 to P57.10.

The US dollar was little changed on Wednesday as traders awaited a speech from Mr. Powell at the annual Jackson Hole symposium later this week for clues on the monetary policy path, Reuters reported.

The dollar index, which measures the US currency against six others, was flat at 98.319, after earlier touching a more than one week high of 98.441.

Friday’s speech by Mr. Powell is the market’s main focus, as traders watch for any pushback against market pricing of a rate reduction at the Fed’s Sept. 16-17 meeting.

Traders now place odds of about 85% on a quarter-point cut next month and expect about 54 basis points of reductions by yearend.

Traders, who ramped up bets for Fed cuts after a surprisingly weak US payrolls report at the start of this month, were further encouraged after consumer price data showed limited upward pressure from tariffs.

However, a hotter-than-expected producer price reading last week complicated the policy picture.

Mr. Powell has said he is reluctant to cut rates because of expected tariff-driven price pressures this summer.

Later on Wednesday, the Fed was set to issue the minutes of its meeting on July 29-30, when it held rates steady, although they may offer limited insight as the meeting came before the weak jobs numbers. — ARAI with Reuters

Metro Pacific teams up with Mitsui, SteelAsia to study steel recycling system

STEELASIA.COM

PANGILINAN-LED conglomerate Metro Pacific Investments Corp. (MPIC) has teamed up with Mitsui & Co. (Asia Pacific) Pte. Ltd. Manila Branch (Mitsui) and SteelAsia Manufacturing Corp. to study the creation of a closed-loop steel recycling system.

The three groups will assess the feasibility of a model in which steel scraps from MPIC’s supply chain will be bought by Mitsui and recycled by SteelAsia, which will then be sold back to the market for potential use in infrastructure projects.

MPIC said the initiative seeks to maximize the value of steel, reduce reliance on newly mined materials, cut carbon emissions, and keep resources in continuous productive use.

“This initiative goes beyond just recycling, it represents a fundamental shift on how we approach sustainable growth,” MPIC Chief Finance, Risk, and Sustainability Officer June Cheryl A. Cabal-Revilla said in an e-mailed statement on Wednesday.

“A closed-loop system for steel means less extraction, fewer emissions, and stronger local supply chains. This model delivers lasting value for the economy, the environment and our communities,” she added.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Trump targets the Smithsonian again, says it focuses too much on how bad slavery was

WASHINGTON — US President Donald J. Trump suggested on Tuesday he will pressure the Smithsonian Institution — a premier museum, education, and research complex for US history and culture — to accept his demands, just like he did with colleges and universities by threatening to cut federal funding.

In a social media post, Mr. Trump complained about what he called excessive focus on “how bad Slavery was.”

“I have instructed my attorneys to go through the Museums, and start the exact same process that has been done with Colleges and Universities where tremendous progress has been made,” Mr. Trump said on Truth Social.

The Smithsonian, which was established in 1846 and includes 21 museums and galleries and the National Zoo, had no immediate comment. Most of its museums are in Washington, DC.

The White House said last week it will lead an internal review of some Smithsonian museums after Mr. Trump earlier this year accused it of spreading “anti-American ideology” and raised alarm among civil rights advocates.

When asked if Mr. Trump would threaten funding cuts to the Smithsonian based on the findings, a White House official said “President Trump will explore all options and avenues to get the Woke out of the Smithsonian and hold them accountable.”

Mr. Trump wrote: “The Smithsonian is OUT OF CONTROL, where everything discussed is how horrible our Country is, how bad Slavery was, and how unaccomplished the downtrodden have been — Nothing about Success, nothing about Brightness, nothing about the Future.”

The Smithsonian receives most of its budget from the US Congress but is independent of the government in decision-making. Civil rights advocates say Mr. Trump’s administration is undoing decades of social progress and undermining the acknowledgment of critical phases of American history.

Racial justice group Black Lives Matter said on X that Mr. Trump’s post showed that he wanted to lock the country in a “fairytale” and deny the atrocities of slavery.

Mr. Trump has made threats to cut federal funding of top US educational institutions, citing pro-Palestinian protests against US ally Israel’s war in Gaza, transgender policies, climate initiatives, and diversity, equity and inclusion programs.

Last month, the government settled its probes with Columbia University, which agreed to pay $221 million, and Brown University, which said it will pay $50 million. Both institutions accepted certain government demands. Talks to settle with Harvard University are ongoing. — Reuters

On the 2026 budget and the UPAA alumni awards

Last week the Department of Budget and Management (DBM) submitted the budget 2026 materials to Congress — the National Expenditure Program (NEP), the Budget of Expenditures and Sources of Financing (BESF), the Staffing Summary, and the Budget Priorities Framework.

And last Monday, Aug. 18, the Development Budget Coordination Committee (DBCC) — composed of DBM Secretary Amenah F. Pangandaman, Finance Secretary Ralph G. Recto, Secretary Arsenio M. Balisacan of the Department of Economy, Planning, and Development, and the Bangko Sentral ng Pilipinas Governor represented by Deputy Governor Zeno Abenoja — presented the budget and fiscal program to the House of Representatives’ Committee on Appropriations.

My favorite material is the BESF. Thick, all numbers, it contains not only spending programs but also revenues and borrowings, regular agencies and government corporations, and local government spending and revenues.

The first thing I checked was the fiscal program. There will be a nearly P600 billion increase in disbursements and spending next year from this year’s level, which is huge. That should reflect the various new freebies and expansion of subsidies that President Ferdinand Marcos, Jr. announced during the 2025 State of the Nation Address (SONA) on July 28.

When spending makes a big jump while revenues rise at normal level, then the budget deficit also jumps, from P1.56 trillion in 2025 to P1.65 trillion in 2026. A trillion pesos may look abstract for many people, so I computed the average deficit — it was P4.1 billion/day last year, P4.3 billion/day this year, and will be P4.5 billion/day next year.

Our interest payment alone was P2.1 billion/day last year, P2.3 billion/day this year, and will be P2.6 billion/day next year (see Table 1).

How big is P1 billion? Well, if one spends P100,000/day on partying and gambling, it will take 10,000 days or 27 years and four months to finish and lose that P1 billion. And we will be paying P2.3 billion/day this year on interest payment alone, with the principal amortization not included yet. That is the high cost of over-spending, even without any economic or finance crisis.

One thing that is seldom discussed publicly is the “sensitivity” or responsiveness in expenditures, revenues, and budget balance of changes in the interest rate, the inflation rate, the GDP growth rate, and the Peso/$ exchange rate.

Below is a “rule of thumb” summary of such sensitivity.

If the Treasury bill rate increases by one percentage point, say from 5% to 6%, it means that revenues can increase by P1.6 billion, disbursements can increase by P7.9 billion, and the budget deficit will further increase by P6.3 billion.

If the inflation rate increases by one percentage point, say from 2% to 3%, government revenues increase by P31 billion and the budget deficit will decline by the same amount as disbursement is not affected (see Table 2).

The Lesson: We really have to find ways to cut spending, especially of the seemingly forever subsidies and freebies which make our people become more state-dependent instead of becoming more self-reliant.

ALUMNI AWARDS
Last Saturday I attended the UP Alumni Association (UPAA) awards for Distinguished Alumni. The opening speakers were UP President Angelo “Jijil” Jimenez and UPAA President Robert Aranton. The Keynote speech was given towards the end by the star of the night, the 2025 UPAA Most Distinguished Alumnus Awardee Executive Secretary Lucas P. Bersamin, who is also a retired Supreme Court Chief Justice. He finished AB Political Science in 1968 but pursued law at another university.

Among the 64 Distinguished Alumni awardees were four of my batchmates from the UP School of Economics (UPSE) undergrad batch 1984: Lynette V. Ortiz, President and CEO of the Land Bank of the Philippines; Gladys Cruz-Sta. Rita, Vice-President of the Maharlika Investment Corp.; Jesse T. Andres, Undersecretary of the Department of Justice; and Kennedy B. Sarmiento, trade and investment lawyer. Congratulations, batchmates.

Another awardee was DBM Secretary Pangandaman. She was my classmate when I went back to UPSE for my graduate studies, Program in Development Economics (PDE) Batch 33, SY 1997-1999. Congratulations too, Secretary Mina.

Among our PDE classmates who came that night were: DBM Undersecretary Joselito Basilio, Tariff Commission Chairperson Louie Mendoza, Sorsogon RTC Judge Maliz Aragon, Campus Executive Officer Victor Balatico of the Cagayan State University-Lasam campus, and Ateneo Economics Prof. Joey Sescon. Retirees also attended: from the Supreme Court, Dory Yulo; from the National Statistics Office/Philippine Statistics Authority, Manny Rivera; and Arnel Cantilep.  I was the Class President of Batch 33 and our Adviser was Prof. Ruperto “Ruping” Alonzo (RIP).

Other contemporaries from UP Diliman 1983-85 that I saw that night were: from UPSE, Finance Undersecretary Joven Balbosa, Thad Alvizo, UP Legal Officer Marcel Meneses, and Dondi Alikpala; from the College of Arts and Science, Supreme Court Justice Jhosep Lopez who is a Lifetime Achievement awardee, SSS Commissioner Jojo Sale (who says he regularly reads my column in BusinessWorld and his wife) who is also an Awardee, former Energy Assistant Secretary Gerpy Erguiza,  Acel Papa, Prof. Jorge Tigno, my former teacher Prof. Doy Romero, Yolly Robles who is an awardee from UP Manila, and several other familiar faces.

On my way back home, I wished that UP alumni, awardees or not, would be part of a new movement for citizen self-reliance, not more state dependence. Then slowly we should be able to confront that ever-rising public debt from ever-rising public spending.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Nvidia working on new AI chip for China that outperforms the H20, sources say

FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo

BEIJING/SINGAPORE — Nvidia is developing a new artificial intelligence (AI) chip for China based on its latest Blackwell architecture that will be more powerful than the H20 model it is currently allowed to sell there, two people briefed on the matter said.

US President Donald J. Trump last week opened the door to the possibility of more advanced Nvidia chips being sold in China. But the sources noted US regulatory approval is far from guaranteed amid deep-seated fears in Washington about giving China too much access to US AI technology.

The new chip, tentatively known as the B30A, will use a single-die design likely to deliver half the raw computing power of the more sophisticated dual-die configuration in Nvidia’s flagship B300 accelerator card, the sources said.

A single-die design has all the main parts of an integrated circuit on one continuous piece of silicon rather than split across multiple dies.

The new chip would have high-bandwidth memory and Nvidia’s NVLink technology for fast data transmission between processors, features that are also in the H20, a chip based on the company’s older Hopper architecture.

The new chip’s specifications are not completely finalized but Nvidia hopes to deliver samples to Chinese clients for testing as early as next month, said the sources who were not authorized to speak to media and declined to be identified.

“We evaluate a variety of products for our roadmap, so that we can be prepared to compete to the extent that governments allow,” Nvidia said in a statement.

“Everything we offer is with the full approval of the applicable authorities and designed solely for beneficial commercial use.”

“Of course (Chief Executive Officer Jensen Huang) would like to sell a new chip to China,” US Commerce Secretary Howard Lutnick said when asked about the Reuters story in a CNBC interview, repeatedly praising Huang. “I’m sure he’s pitching the president all the time.”

“I’ve listened to him pitch the president, and the president listens to our great technology companies, and he’ll decide how he wants to play it. But the fact Jensen is pitching a new chip shouldn’t surprise anybody.”

The US Department of Commerce did not respond to a request for comment.

FLASHPOINT
The extent to which China, which generated 13% of Nvidia’s revenue in the past financial year, can have access to cutting-edge AI chips is one of the biggest flashpoints in US-Sino trade tensions.

Nvidia only received permission in July to recommence sales of the H20. It was developed specifically for China after export restrictions were put in place in 2023, but the company was abruptly ordered to stop sales in April.

Trump said last week he might allow Nvidia to sell a scaled-down version of its next-generation chip in China after announcing an unprecedented deal that will see Nvidia and rival AMD give the US government 15% of revenue from sales of some advanced chips in China.

A new Nvidia chip for China might have “30% to 50% off,” he suggested in an apparent reference to the chip’s computing power, adding that the H20 was “obsolete.”

US legislators, both Democratic and Republican, have worried that access to even scaled-down versions of flagship AI chips will impede US efforts to maintain its lead in AI.

But Nvidia and others argue that it is important to retain Chinese interest in its chips — which work with Nvidia’s software tools — so that developers do not completely switch over to offerings from rivals like Huawei.

Huawei has made great strides in chip development, with its latest models said to be on par with Nvidia in some aspects like computing power, though analysts say it lags in key areas such as software ecosystem support and memory bandwidth capabilities.

Complicating Nvidia’s efforts to retain market share in China, Chinese state media have also in recent weeks alleged that the US company’s chips could pose security risks, and authorities have cautioned Chinese tech firms about purchasing the H20. Nvidia says its chips carry no backdoor risks.

Nvidia is also preparing to start delivering a separate new China-specific chip based on its Blackwell architecture and designed primarily for AI inference tasks, according to two other people familiar with those plans.

Reuters reported in May that this chip, dubbed the RTX6000D, will sell for less than the H20, reflecting weaker specifications and simpler manufacturing requirements.

The chip is designed to fall under US government thresholds. It uses conventional GDDR memory and features memory bandwidth of 1,398 gigabytes per second, just below the 1.4 terabyte threshold established under restrictions introduced in April that led to the initial H20 ban.

Nvidia is set to deliver small batches of RTX6000D to Chinese clients in September, said one of the people. — Reuters

Philippines: Balance of Payments (BoP) Position

THE PHILIPPINES’ balance of payments (BoP) position swung to a $167-million deficit in July as the government paid off external debt, the central bank said on Tuesday. Read the full story.

Philippines: Balance of Payments (BoP) Position

Bank Indonesia surprises with interest rate cut

REUTERS

JAKARTA — Indonesia’s central bank cut interest rates again in a surprise move on Wednesday, stepping up support for Southeast Asia’s largest economy against the backdrop of global uncertainties.

Bank Indonesia (BI) trimmed the benchmark 7-day reverse repurchase rate by 25 basis points (bps) to 5%, its fifth rate cut since September, taking it to its lowest level since late 2022.

Only five of 29 economists polled by Reuters had expected a cut on Wednesday. The rest expected rates to be kept steady.

The overnight deposit and lending rates were also cut by the same amount to 4.25% and 5.75%, respectively.

Governor Perry Warjiyo told a press conference that the decision was in line with expectations of low inflation and a stable rupiah, as well as the need to support growth.

The decision followed data earlier this month showing that economic growth accelerated to 5.12% in the second quarter, the fastest annual pace in two years, driven by robust investment and household spending.

Some economists questioned the strength of that data, pointing to indicators showing weakening domestic demand, while others have taken note of looming headwinds to growth caused by US tariffs.

Indonesia’s exports to the United States have been subject to a 19% tariff since Aug. 7, the same level as Thailand, Malaysia, the Philippines and Cambodia.

BI estimates the country’s 2025 economic growth will exceed the midpoint of the 4.6% to 5.4% range.

Wednesday’s rate cut was the fifth since BI last September, taking the total reduction to 125 bps. It was the first time during the easing cycle that it has made cuts at consecutive meetings.

Policymakers have said global uncertainties and their impact on the rupiah often affect the timing of their rate cuts. The rupiah is often more affected by changes in market sentiment than other emerging Asian currencies.

After Wednesday’s decision, the rupiah was largely unchanged.

Last week, President Prabowo Subianto proposed a $234-billion budget for 2026, with a large increase in spending for defense and his flagship food and nutrition programs. He is targeting economic growth of 5.4% in 2026. — Reuters

SM says it is broadening entertainment offerings to boost engagement

SM INVESTMENTS CORP.

SY-LED conglomerate SM Investments Corp. (SMIC) is expanding its entertainment offerings in malls, convention centers, and arenas to respond to growing consumer demand, particularly from younger Filipinos.

“At SM, we recognize the younger generation’s growing preference for experiences, and this shift opens new opportunities for growth across our businesses,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in an e-mailed statement on Wednesday.

“We are broadening our entertainment offerings to strengthen engagement and create long-term value across the SM ecosystem,” he added.

SMIC said it is transforming its malls, convention centers, and arenas into multi-dimensional experience hubs to cater to emerging demand.

SM Supermalls Executive Vice-President for Marketing Joaquin L. San Agustin said the malls have adjusted their marketing efforts since emerging segments, led by millennials and Gen Zs, now value experience, the feeling of inclusivity, community involvement, and sustainability.

“That is why our marketing efforts, including entertainment events, are now geared toward targeting communities, or what we call ‘tribes.’ These are your gamers, geeks, foodies, and the many fandoms sprouting, who like more interactive and personalized experiences. The mall has become their entertainment hub and their escape,” Mr. San Agustin said.

SM said its Mall of Asia (MOA) Arena in Pasay continues to host international acts and will soon be complemented by a larger area in Cebu.

“Production value is a whole lot better at the MOA Arena because the building is able to accommodate the creative demands of big events and top-tier acts, especially for multi-sensory experiences. We see the value in constructing world-class venues in key areas that would be able to support their economic growth,” MOA Arena Vice-President for Arena Operations Arnel C. Gonzales said.

SM added that entertainment drives consumer traffic across group businesses, strengthens partnerships with global content providers, and creates shared spaces for leisure and wellness.

Meanwhile, SMX Convention Center has seen higher attendance and bookings for fan meets, gaming expos, and pop culture conventions since late 2023.

“Over the past year, there’s been a remarkable increase in event bookings, ticket sales, and audience turnout at our venues, particularly for entertainment-driven events. This upward trend gathered momentum in late 2023 and continued to grow steadily through 2024 into this year,” SMX Convention Center Vice-President and General Manager Michael Jaey C. Albaña said.

“Even weekday events are seeing rising attendance, indicating that audiences are actively making time — and room in their budgets — for these experiences,” he added.

SM said its group is also positioned to tap the country’s P1.94-trillion creative economy. Through SMIC SG Holdings, SM became the first Philippine company to invest in Klook, the Asia-based travel and experiences platform.

One-stop logistics solutions provider 2GO features karaoke lounges and video arcades in its vessels, while BDO Unibank, Inc. and China Banking Corp. also integrate lifestyle and travel-related rewards into customer programs.

SMIC shares declined by 1.76% or P14 to P781 per share on Wednesday. — Revin Mikhael D. Ochave

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