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Innovation dev’t credit quota may cause banks’ bad loans to increase

By Luisa Maria Jacinta C. Jocson, Reporter

THE MANDATED lending quota for innovation development on banks may lead to a surge in nonperforming loans (NPLs) and to banks opting to incur penalties than meet the requirement, analysts said.

“I’m more concerned about the implications on NPLs, which has been trending higher in recent months. Micro, small, and medium enterprises (MSMEs), especially start-ups, have a certain risk profile that might lead to higher NPLs for the banks,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said.

Under the Philippine Innovation Act, all public and private banks are required to set aside at least 4% of their total loanable funds for innovation development credit.

The Bangko Sentral ng Pilipinas (BSP) recently released draft implementing rules for the law.

Based on the BSP’s draft rules, borrowers eligible for innovation development credit include “MSMEs, startups, innovation centers, business incubators and other entities that facilitate and support the development of new technologies, product innovation, process innovation, organizational innovation, and marketing innovation.”

Mr. Garcia noted the risk of higher NPLs if banks ramp up lending to small businesses.

Latest data from the BSP showed that the banking industry’s gross NPL ratio slipped to 3.47% in September from the over two-year high of 3.59% in August. However, it was still higher than 3.4% in the same period in 2023.

Bienvenido S. Oplas, Jr., president of a research consultancy and of the Minimal Government Thinkers think tank, said these kinds of mandates are the “bane of innovation and finance liberalization itself.” 

“Take the mandatory 25% of banks loanable amount to be allocated for agriculture via the Agri-Agra law. Banks would rather pay the penalty for not reaching that mandatory 25%,” he said in a Viber message.

Separate BSP data showed that loans extended by Philippine banks to MSMEs reached P488.13 billion as of end-June. This accounted for only 4.52% of their total loan portfolio of P10.8 trillion, well-below the required 10% quota.

Under the Magna Carta for MSMEs, banks must allot 10% of their loan portfolio for small businesses. Broken down, 8% must go to micro and small enterprises while the remaining 2% goes to medium-sized businesses.

However, banks have long opted to incur penalties for noncompliance instead of taking on the risks associated with lending to small businesses.

“This mandatory 4% of loanable amount for innovation is another bane. Some banks can easily fill that while others won’t be able to, so they will be fined by the BSP,” Mr. Oplas said.

He warned against similar mandates and overly regulating banks.

“The government does not need legislation to mandate that people should eat, should sleep, should take vacation. People do it on their own without government mandate because it’s the right thing to do for themselves,” he said.

“So, I do not think this law will achieve its goal without creating economic and (financial) distortion somewhere. The BSP can only minimize the distortions by liberalizing as many sectors as possible to be qualified as ‘innovation’ loans,” he added.

On the other hand, Mr. Garcia said although the 4% quota may be considered small, this is equivalent to more than P700 million.

He also said banks would likely be able to meet the lending quota.

“However, it’s a good thing that the definition of funding provided for innovation development is quite broad and includes investments in equities of startups so it shouldn’t be a problem for banks to meet the quota.”

Under the draft rules, the BSP identified the modes of compliance with the mandatory credit requirement, namely direct and alternative compliance.

Direct compliance covers loans granted to qualified borrowers after Aug. 6, 2019 for innovation development.

Meanwhile, the allowable alternative compliance include investments in bonds issued by the Development Bank of the Philippines and Land Bank of the Philippines with proceeds used exclusively for on-lending for innovation development, as well as in debt securities with proceeds going to innovation development, and loans to or investments in financial entities, excluding banks, that provide supply chain financing for MSMEs that promote innovation.

Investments in the equities of startups can also be counted as compliance with the credit quota, among others.

The draft rules also detail penalties for noncompliance or under compliance with the credit quota.

These penalties shall be computed at one half of 1% (0.5%) of the amount of noncompliance or under compliance and will be directed towards innovation development.

Megawide Construction Corp. announces Special Stockholders’ Meeting on Dec. 10 via remote communication

 

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CSB, Game Developer Association sign MoU to upskill students

TRUSTPAIR.COM

THE Game Developer Association of the Philippines (GDAP) and the De La Salle-College of Saint Benilde (DLS-CSB) recently signed a memorandum of understanding (MoU) to provide workshops and seminars for students looking to enter the gaming industry.

“This shared venture seeks to advocate for student internships, along with exposure and immersion trips for the faculty and associates,” GDAP said in a statement.

The partnership is also looking to endorse the micro-credentialing of Benilde courses are relevant to GDAP and the industry.

GDAP serves as the country’s premier digital game development trade association. It aims to support growth in the digital gaming industry by spreading awareness and engaging in academic linkages.

“With GDAP’s expertise in the field, the cooperation intends to provide cooperative workshops, seminars, and conferences for the Benildean community as well as the public,” it said.

GDAP President James Ronald Lo said this is the group’s first MoU with a school, which is expected to help in increasing digital gaming professionals in the country.

The partnership between GDAP and DLS-CSB is about building the future of game development in the Philippines, said DLS-CSB Chancellor Benhur A. Ong.

“We incorporated on a business journey to create the very first full game development education curriculum in the country,” Mr. Ong was quoted as saying.

The school’s game design and development program took 15 years to be finalized, Mr. Ong said.

In 2009, DLS-CSB first introduced gaming design as a program with its Bachelor of Science in Information Technology degree with specialization in Game Design and Development.

The revamped program, the Bachelor of Science in Interactive Entertainment and Multimedia Computing, was launched in 2015.

“We’re not only equipping our students with the skills they need. It’s also about helping them engage with real-world challenges,” Mr. Ong said.

“We hope that the aim is clear — to bring academia into the industry so that our students can be game changers.”

DLS-CSB ROLLS OUT ONLINE ENTRANCE EXAM
Meanwhile, DLS-CSB also announced the implementation of a fully online entrance examination with computer-aided proctoring.

The revamped Benilde Entrance Examination (BEE) aims to offer a flexible and accessible exam option, the school said. The online BEE will be rolled out for the application period for academic year 2025 to 2026.

“To ensure academic integrity and fair assessment, the system translates the traditional paper-and-pencil exam into a timed computerized test format that utilizes advanced technology for delivery and security. It likewise adopts facial and voice recognition technology to evaluate the environment, movement, and behavior of the candidates,” it said in a separate statement.

“Through this new modality, applicants may accomplish the exam remotely provided that they have a laptop or desktop and a stable internet connection. The technical requirements likewise include a webcam, external microphone or headset, and a mobile phone to be used as a secondary camera.”

Applicants will receive exam schedule confirmation and instructions via e-mail and will have to complete a pre-test check prior to the exam.

“For those who need specific assistance or accommodation, the college will offer in-campus examinations to be held at the designated computer laboratory on identified schedules,” DLS-CSB said. “Students are expected to accomplish the BEE without aids and tools, apart from plain bond paper and pencil during the Mathematics Exam.”

Both the online and on-site exams will still be monitored by a human proctor, it added. — Beatriz Marie D. Cruz

SMIC says logistics, RE to drive future expansion

PHILSTAR FILE PHOTO

THE LOGISTICS and renewable energy (RE) sectors will be key drivers for SM Investments Corp.’s (SMIC) future expansion, a company official said.

“The areas of logistics and renewable energy alone have a lot of potential,” SMIC Executive Vice-President for Treasury, Finance, and Planning Erwin G. Pato told reporters on the sidelines of the BusinessWorld Forecast 2025 forum on Tuesday.

“How we look at the investments is that we want to be good at it first before we continue expanding to others. We are at that stage where we understand the logistics business much better, and that is why we continue to invest in that business. It is the same with renewable energy. That’s why, as we understand steam production better, we engage with more concession sites,” he added.

SMIC operates in the logistics sector through 2GO Group, Inc. and in the renewable energy sector through Philippine Geothermal Production Co., Inc. (PGPC).

In June last year, PGPC announced plans to build five new geothermal projects in Luzon.

“Our aim is to essentially increase our steam output supply,” Mr. Pato said.

Mr. Pato said SMIC is open to other renewable energy technologies such as solar and wind projects.

“Clean energy is a space that we’re looking at and has a lot of potential,” he said.

He also said that SMIC’s capital expenditure (capex) budget for 2025 could match this year’s.

The conglomerate announced in April that it had allocated up to P115 billion in capex for this year.

“We have to look at it because with lower interest rates and easing funding, as the Bangko Sentral ng Pilipinas (BSP) has decreased the reserve requirements, there can be opportunities to expand. It will be around the same as we have this year,” he said.

The BSP previously reduced the reserve requirement ratio for big banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7% from 9.5%.

It also reduced the ratio for digital banks by 200 bps to 4%; thrift banks by 100 bps to 1%; and rural banks and cooperative banks by 100 bps to 0%.

“How we decide on funding is we ask ourselves which one is more efficient,” Mr. Pato said.

Meanwhile, 2GO Group, Inc. is expected to see growth in its passenger volume next year.

“2GO is already in expansion mode. As we grow our routes in Iloilo, Bacolod, Cagayan de Oro and Manila, it unlocks transfer of goods and services,” Mr. Pato told BusinessWorld.

“But more importantly, as you connect the tourist areas and industrial areas, then it will spur more economic activity, and as that happens 2GO would also be better in terms of financials.”

For now, he said the company will not be exploring new routes as it intends to further grow its services in its current operations.

“There is still a lot of potential within those routes. It is not fully served yet. We are happy with the results right now, but we will look and see how we can essentially grow within those routes,” he said.

In May, 2GO launched its newest roll-on, roll-off vessel — the MV Masigla sailing to Iloilo, Bacolod, and Cagayan.

For 2024, the company had announced it would allocate up to P2 billion for capex, focusing on new containers, material handling equipment, and service enhancements.

Mr. Pato said that for next year, 2GO’s capital expenditure budget will likely be around the same level.

2GO offers multimodal transportation, warehousing and inventory management, distribution, special containers, project logistics, and e-commerce logistics. It also provides sea travel, freight forwarding, import and export processing, and customs brokerage services.

On Wednesday, SMIC stocks fell by 2.44% or P22 to P879 apiece. — Revin Mikhael D. Ochave and Ashley Erika O. Jose

Dining In/Out (11/28/24)

Tatatito unveils new holiday menu

“PAGSASALO,” Tatatito’s holiday feast, encapsulates the flavors of Filipino heritage. The Lemon Garlic Scallops (P850) start the meal with a light and flavorful touch. For a bold twist on a local favorite, the Sizzling Sinigang Scallops (P980) serve up fresh scallops in a sizzling, tangy tamarind broth. Tatatito’s dishes feature locally sourced scallops from Roxas City in the Visayas. The Pinaputok na Chicken Galantina, available in both regular (P980) and sharing size (P1,680), is deboned chicken stuffed with vegetables, spices, and rich chicken mousse. It’s wrapped in fragrant pandan leaves and fired to infuse a smoky depth. Adding a touch of sweetness to the holiday table is the Blooming Hot Tsokolate (P200), made from rich cacao, served with a blooming marshmallow. Tatatito’s Ensaymada (P120) is a buttery fluffy pastry topped with a layer of cheese. Tatatito Home Kitchen is located at the OPL Bldg. along Dela Rosa St. corner Carlos Palanca in Makati. It is open from 7 a.m. to 10 p.m. on Mondays through Thursdays, and Saturdays and Sundays, and from 7 a.m. to 11 p.m. on Fridays. For reservations, book online at https://book.bistrochat.com/tatatito or call 0917-862-4000 or 8809-8055. For updates, visit tatatitoph.com or follow Tatatito on social media @tatatito.ph.

Hendrick’s offers holiday cocktails

No holiday celebration is complete without a lineup of exceptional cocktails, and Hendrick’s Gin offers just that. Hendrick’s gives a few suggestions on cocktail recipes designed to impress. Hendrick’s French 75 is a sophisticated blend of gin, zesty lemon juice, and a splash of champagne. Hendrick’s Cranberry Fizz features gin, tart cranberry juice, andthe drinker’s choice of soda or sparkling wine. Hendrick’s & Tonic showcases the unique botanicals of Hendrick’s Gin with crisp tonic water and a garnish of cucumber. Hendrick’s Gin is available at major retailers, including S&R, The Marketplace, Landmark, Shopwise, Boozeshop, and Boozy.

Eden Cheese, World Vision’s Noche Buena Project

EDEN CHEESE is helping Filipino families and children this holiday season by joining World Vision Philippines with their annual Noche Buena Project. The Noche Buena Project is the charity’s annual Christmas gift-giving campaign, to share hope and bring joy to children and their families by giving them a set of Christmas groceries they can cook and share on Christmas Eve. The project began in 2006 and has since been providing Filipino families with yearly Noche Buena sets. In 2023, World Vision Philippines gave Noche Buena packs to over 23,000 Filipino families. World Vision aims to again distribute Noche Buena packs to 23,000 families this year. Eden has partnered with World Vision to support the effort through a special promo. For every purchase of Bundle of Joy packs on Mondelez Philippines’ Shopee, Lazada, and TikTok Shop, Eden will complete a beneficiary’s Noche Buena package with Eden Cheese. A Bundle of Joy pack contains a two-pack bundle of 160g Eden Cheese. Eden has also been hosting a series of busking events, culminating at the Ayala Azuela Cove in Davao City on Nov. 30. For more information, visit the official Eden Cheese Facebook page at https://web.facebook.com/EdenCheesePH.

Tokyo Bubble Tea unwraps holiday bundles

THIS holiday season, Tokyo Bubble Tea is here to make every gathering a little brighter and a lot more bubbly. Bundle 1 (P800) is meant for two diners. It includes Maki and one main dish, like the Bibimbop, the Teriyaki Chicken Doria, or Gyudon. To complete the meal, each diner gets a drink: one Classic Milk Tea and one Fruit-C. For slightly larger gatherings, Bundle 2 (P1,200) serves three. It has a choice of a starter to share, then two main dishes from Tokyo Bubble Tea’s signature options, and a Classic Milk Tea and a Fruit-C, plus a creamy JCC (Japanese Cheesecake Cream). Bundle 3 (P1,500) serves four, and starts with a shared choice of starter, then three main dishes, and ends with two Classic Milk Teas, a Fruit-C, and a JCC. Tokyo Bubble Tea’s holiday bundles are available at the Banawe, Wilson, and Fort branches, and can also be delivered through Grab and foodpanda. Visit tokyobubbletea.com and follow Tokyo Bubble Tea on social media @tokyobubbletea for updates.

Chowking for holiday parties

CHOWKING’S #OohlalaLauriat Dance Challenge involves dancing to the Chowking jingle, and creating and sharing the dance video on social media. As for the Lauriat itself, it features six Chowking dishes all in one order. Available in Solo and Family Lauriat (good for four or six diners), it is ideal for gatherings. Each order comes with Chinese-style Fried Chicken, Pancit Canton, Siomai, Egg Fried Rice, Chicharap, and Buchi. For the Chowliday Handa promo, which runs from Dec. 1 to 12, customers can avail of a Buy 2 Get 1 Free Promo for Chinese-style Fried Chicken Lauriat and other Chowking products such as Braised Beef, Imperial Chicken Chops, Meaty Wonton-Chunky Asado Siopao Combo, and Halo-Halo Supreme. From Dec. 13 to 31, another Chowliday Handa offer involves buying any two platters, such as the fried chicken and Chao Fan platter, and get one free dimsum platter of the diner’s choice (Crispy Wonton, Lumpiang Shanghai, or Buchi Platter). For more information, visit www.facebook.com/ChowkingPH (Facebook) and @ChowkingPH (Instagram).

Mang Inasal has combo plates for parties

MANG INASAL spreads holiday cheer with its ChristmaSAYA Combo Deals, available nationwide from Nov. 15 to Dec. 31. The ChristmaSAYA Combo Deals involve a PM1 or PM2 Chicken Inasal Unli-Rice Value Meal paired with an Extra Creamy Halo-Halo or Crema de Leche Halo-Halo, made even sweeter with a ₱20 discount. Visit www.manginasal.ph for the latest news, https://manginasaldelivery.com.ph for delivery deals, and follow Mang Inasal on social media.

On gas power, Pacific Light, and coal

SINGAPORE — This small but very rich country is known for its bright lights at night, and huge indoor gardens and tall waterfalls featuring 24/7 lights and aircon like those at the Gardens by the Bay and the Jewell Changi airport, among others. The city-state has huge power generation per capita, about 10 times that of the Philippines.

Singapore is the most natural gas-intensive country in the world, with about 90% of its total power generated in liquified natural gas (LNG) plants, and another 10% generated from diesel. It has no coal or nuclear plants, no solar or wind farms. It is pure 100% fossil fuel power generation with competitive prices. It does not suffer from blackouts or power fluctuations.

Some Middle East Asia and North Africa countries — like Iran, Egypt, and the United Arab Emirates (UAE) — have gas to total generation shares of above 70%. In Asia, Thailand, and Taiwan follow Singapore in having high gas/total generation ratios (see Table 1).

Pacific Light Power (PLP) is one of the six generation companies (gencos) in Singapore that contribute to the country’s bright lights. It is the smallest among the six, with only about an 8% share of installed capacity, but it has a 10% consumer market share, meaning it is efficient and has competitive prices. It is jointly owned by Meralco Power Gen Corp. (MGen) with 58% share and First Pacific Co. Ltd. with 42%.

Singapore has no mandatory competitive selection process (CSP) — long-term supply contracts between gencos and consumers. Singapore’s retail competition and open access (RCOA) style service goes down to the household level, so households can choose their gencos for a contract of at least one year. With consumers’ ability to switch from one genco to another, each genco must be as price competitive as possible. And PLP is exactly doing that.

THE PHILIPPINE SITUATION
The Philippines has five gas plants that use either indigenous Malampaya natural gas or imported LNG. These gas plants supply between 14% to 16% of the total power generation yearly.

MGen is a potentially big player in the Philippines’ gas development, not only for its knowledge about gas power through PLP, but also through Chromite Holdings that will (hopefully) own two huge gas plants — Ilijan and Excellent Energy (EERI) — in a partnership between San Miguel Corp., Aboitiz Power, and MGen. The partnership is still subject to approval by the Philippine Competition Commission though.

Coal plants are the workhorses of the Philippines, they contribute between 60-62% of total power generation yearly. This ratio is similar to that of China, Indonesia, and Vietnam but lower than India’s 75%.

The average marginal increase in the Philippines’ power generation from 2019 to 2023 was about six terawatt-hours (TWh) a year. If the Philippines is to sustain an annual GDP growth of 6%, compounded, and avoid the frequent yellow-red alerts (low power) that we experienced until early this year, I estimate that we will need about seven to eight TWh/year from 2024-2026, then eight to 10 TWh/year from 2027-2032.

To achieve this, we will need new conventional power plants with a combined dependable capacity of 1,000 megawatts (MW) yearly. Since these are new, their projected capacity is up to 90%. To compute the potential output of a 1,000 MW conventional plant, we use this formula: (1,000 MW) x (0.90) x (24 hours/day) x (365 days/year) = 7.88 TWH/year

And to achieve this, gas, coal, or nuclear plants must be commissioned every year from 2028 onwards, and construction should start this year, not two or three years from now.

In the experience of many countries, those that shifted away from using coal experienced higher or flat inflation rates — Australia, Canada, Germany, the UK, and the US. Meanwhile, countries that increased their coal use experienced lower inflation rates — Taiwan, China, South Korea, Japan, India, Indonesia, Malaysia, the Philippines, Vietnam, Russia, and Turkey (see Table 2).

The numbers on total coal generation, population, and derivation of coal generation per capita were shown in this column’s previous article, “The Atimonan coal project, energy transition, and the ERC” (Sept. 19).

Despite the increase in the Philippines’ coal power capacity, our per capita coal generation remains the lowest in our neighborhood — it is, for instance, only one-half of Vietnam’s and only one-fourth of that of Malaysia.

We should not accede to the lobbying for the early shutdown of our coal plants unless there are huge gas or nuclear plants ready. If we do, we should be prepared for daily blackouts again like in 1990 and 1991. 

 

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

MPH partners with Intellicare and Avega to expand healthcare access

SIX METRO PACIFIC Health Corp. hospitals will participate in a preferred partnership program with Intellicare and Avega to offer healthcare services.

PANGILINAN-led Metro Pacific Health Corp. (MPH) has partnered with health maintenance organization Asalus Corp. (Intellicare) and Avega Managed Care, Inc., a provider of managed healthcare services, to expand healthcare access for Filipinos.

Under the partnership, six MPH hospitals will participate in a preferred partnership program with Intellicare and Avega to offer healthcare services, the company said in an e-mailed statement on Wednesday.

The participating hospitals include Asian Hospital and Medical Center in Muntinlupa; Calamba Medical Center in Laguna; Our Lady of Lourdes Hospital in Sta. Mesa, Manila; Riverside Medical Center, Inc. in Bacolod; De Los Santos Medical Center and Commonwealth Hospital and Medical Center in Quezon City.

“This strategic alliance combines MPH’s extensive network of top-tier hospitals nationwide, committed to high-quality, compassionate healthcare, Intellicare’s established expertise in managed healthcare, and Avega’s deep commitment to quality care to collectively offer Intellicare members a seamless, efficient, and affordable healthcare experience across the country,” MPH said.

Earlier in the month, MPH grew its portfolio to 27 hospitals with the acquisition of the City of General Trias Doctors Medical Center, Inc. in Cavite.

MPH is the healthcare arm of the Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC).

Aside from its hospital network, MPH also has 33 outpatient care centers, two allied health colleges, and a centralized laboratory.

MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT Inc.

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

In Zimbabwe, Starlink’s fast internet gives telehealth a boost

STARLINK.COM

NHEDZIWA, Zimbabwe — In early November, Precious Chinonzura went to a telehealth, or e-health, booth in the local shopping center in her village in Zimbabwe to see if she could get relief from bladder pains that had been bothering her for a month.

The 30-year-old consulted a doctor online and by evening the medication he prescribed had been delivered to her village of Nhedziwa from a telehealth booth in Chakohwa, some 22 km (14 miles) away.

“The doctor told me I had a bladder infection and needed treatment. I had privacy and I spoke freely to the doctor,” Ms. Chinonzura, who runs a small business at the shopping center, told the Thomson Reuters Foundation.

Telehealth — the use of technology to provide and access healthcare services remotely — has been growing around the world but is relatively new in Zimbabwe, where internet services are generally slow, unreliable and among Africa’s most expensive.

This could change after Elon Musk’s Starlink, the satellite unit of SpaceX, received the telecom regulator’s green light in May to operate its internet services in the country.

Starlink first launched in Africa last year as satellite-internet becomes an increasingly popular connectivity solution in the continent, but it has faced teething problems — from complaints about speed to regulatory challenges.

ZimSmart Villages, which has been setting up telehealth services in Zimbabwe since February, has already connected two of its 16 e-health centers to Starlink and plans to connect five more by the end of November, said ZimSmart Villages cofounder and chief operations officer Tawanda Njerere.

There is no countrywide data on how many companies offer telehealth services in Zimbabwe.

Mr. Njerere said Starlink enabled ZimSmart Villages to allow access to its online health platform BatsiHealth, especially in underserved regions where connectivity can be a problem.

“Starlink provides the fast, low-latency connectivity that virtual consultations need for real-time telepresence on BatsiHealth,” he said, adding it is cost-effective.

“Our doctors can conduct video consultations with near in-person clarity, seeing fine visual details essential for accurate diagnoses.”

Zimbabwe’s health sector has been deteriorating for years as the ailing economy has been hit by chronic corruption, mismanagement, economic sanctions, and southern Africa’s worst drought in decades.

There are shortages of basic drugs like paracetamol, public hospitals are struggling and there is a lack of doctors and nurses, forcing people to turn to private health facilities.

As of 2022, Zimbabwe had 1.7 doctors per 10,000 people, according to the World Health Organization, compared to Africa’s average of 2.6 per 10,000 people.

STARLINK KIT TOO COSTLY FOR MOST
After first launching in Nigeria last year, Starlink is now operating in 15 countries in the continent, with Chad becoming the latest to approve the technology.

Starlink’s expansion across Africa has not been without problems — from complaints about cost and speed to regulatory challenges and resistance from local mobile operators.

Admire Mare, head of the communication and media studies department at the University of Johannesburg, said Starlink kits were too expensive despite its services being more reliable and faster than those of local providers.

Starlink’s basic internet package consists of an $170 kit and $30 monthly subscription, while at the high-end, the kit costs $350 and the subscription $50 a month. That is very costly for many in a country like Zimbabwe where a teacher, for example, earns about $350 a month.

By comparison, local provider Liquid Intelligent Technologies sells an equivalent high-end kit for $225, while its monthly subscription costs about $173.

Mr. Mare said there was a risk that the high cost of innovation would reproduce existing inequalities, since only the wealthy would be able to afford the cost of the Starlink kit and therefore be able to benefit from the cheaper internet services it provides compared to local operators.

“The rest of us are unfortunately going to remain locked up in using expensive broadband internet,” he said.

“When we talk about making sure that we bridge the digital divide some of these technologies are often presented as saviors (but they) are not going to save us.”

Some Starlink users in Zimbabwe’s capital city Harare and second-largest city Bulawayo have complained about slow speeds, with some returning to their traditional providers. The kits have also sold out in these cities, meaning new users cannot sign up for now.

Starlink has also faced regulatory challenges and resistance from state monopolies in some countries.

Cameroon ordered the seizure of Starlink equipment at ports earlier this year as Starlink was not licensed to operate in the country.

In Kenya, the country’s biggest telecoms firm Safaricom has urged regulators to consider requiring satellite internet providers such as Starlink to partner with local mobile network operators.

TRANSFORMING LIVES
Starlink’s presence in Zimbabwe already appeared to be helping consumers by connecting remote areas that are not covered by traditional internet service and by pushing local providers to reduce prices, said Dr. Danford Zirugo, assistant professor of journalism at the University of Alabama.

In August, Zimbabwe’s largest mobile operator Econet slashed prices of its SmartBiz package, which offers internet via a portable MiFi or small router, by 25%. It cut the price of its five megabytes per second unlimited package to $45 per month from $70.

Willard Shoko, a Starlink researcher and consultant, said Starlink’s presence in Zimbabwe could revolutionize its health sector though more ground stations were needed to boost services.

“When you connect hospitals and clinics to high-speed internet, it means that doctors from anywhere in the world can collaborate. This can be the difference between a life being saved and a life being lost,” he told the Thomson Reuters Foundation.

Back in Nhedziwa, Chinonzura said the benefits of telehealth centers were already proving to be immense.

If she hadn’t had access to an online doctor, she would have had to close her business and travel to the city of Mutare, 83 km (51.5 miles) away, or to Harare, nearly 350 km (217 miles) away.

“I could not believe it. I did not know that it was possible,” said the mother-of-two. “I will come here whenever I feel sick for consultation and checkups.” — Thomson Reuters Foundation

London’s pie and mash makers say Cockney favorite needs special status

MANZE.CO.UK

LONDON — Rick Poole grew up in his family’s pie and mash shop in London, the oldest of its kind still in operation today. Now a campaign to give the traditional dish protected status is giving him hope his business will continue to flourish for years to come.

Pie with mashed potato and parsley liquor has been enjoyed by the Cockney natives of east London since the first shops appeared there in the 19th century.

Back then, the pies were filled with eels as they were cheap and plentiful in the River Thames.

The eels have long been replaced with minced beef but jellied eels are still available on the side.

“It gives you a good feeling knowing that you are keeping this tradition alive for over 120 years,” said 61-year-old Mr. Poole, director of M. Manze, who owns several shops including the flagship in Tower Bridge which retains its original green tiles and furniture. The family took it over in 1902.

Mr. Poole said protected status would give businesses like his some security as it would stop others from falsely claiming they were making the dish in the traditional way.

Britain, like the European Union, grants protected status to food and drink that come from a defined area or follow a specific recipe as a guarantee of authenticity. Cornish pasties, Melton Mowbray pork pies, and Blue Stilton cheese are well known examples.

Campaigners, including from the Modern Cockney Festival, are calling on the government to grant Traditional Speciality Guaranteed (TSG) status to the London meal.

Rather than being a geographic label, TSG means products must use traditional methods of production or follow a traditional recipe.

All pie shops have their own unique recipes. But environment minister Daniel Zeichner has said that all producers would need to agree on a common recipe in order to receive the status.

Andy Green, founder of the Modern Cockney Festival, said the label would not only give shop-owners a “sense of belief that they are guardians of a culture” but may also boost the dish’s global recognition.

He said he hoped a decision would be made next year.

Mr. Poole’s daughter Emma Harrington, who is also a company director, said generations of Londoners had been brought up on pie and mash. “It’s in their blood and their heritage,” she said. — Reuters

Ateneo mathematicians develop AI tools to forecast money market rates

MATHEMATICIANS from the Ateneo de Manila University have developed artificial intelligence (AI) deep learning tools for predicting secondary market interest rates.

The AI learning models can be used by both the government and businesses to help manage risks and reduce borrowing costs, Ateneo’s Office of the Assistant Vice-President for Research, Creative Work, Innovation said in a statement.

The research paper titled “Deep Learning Approaches in Interest Rate Forecasting” and authored by Ateneo’s Halle Megan L. Bata, Mark Jayson A. Victoria, Wyonna Chezska B. Alvarez, Elvira P. de Lara-Tuprio, and Armin Paul D. Allado was published in the journal AIP Conference Proceedings on Nov. 15.

“Interest rates are among the most important macroeconomic factors considered by both government and private entities when making investment and policy decisions. A reliable forecast is a requisite to sound management of exposure to different types of risk,” the Ateneo researchers were quoted as saying.

The researchers tested two deep learning models for rate forecasting: the Multi-layer Perceptrons (MLP) and Vanilla Generative Adversarial Networks (VGAN).

The MLP model is a type of artificial neural network that passes the data through a series of cells to find complex patterns in data.

Meanwhile, the VGAN is made up of two networks — a synthetic data generator and a discriminator that determines data authenticity — that work opposite each other for analysis.

“Both successfully anticipated changes in Philippine Benchmark Valuation (BVAL) rates before and during the pandemic, showcasing the models’ robust capability to potentially foresee economic fluctuations and market disruptions… The researchers found that both models produced reliable forecasts of one-, three-, six-month, and one-year BVAL rates within the limits of the datasets used. They successfully predicted key trends by incorporating as many as 16 domestic and global economic indicators, including inflation, exchange rates, and credit default swaps,” Ateneo said.

Based on the research, the MLP model performed well with fewer variables and simpler structures, while the VGAN model excelled in analyzing complex scenarios and working with larger datasets.

“The practical implications of these AI deep learning models are substantial, according to the researchers: financial institutions could potentially deploy them to manage market, credit, liquidity, and other risks; and governments could also potentially use these models to optimize debt issuance strategies by reducing borrowing costs,” Ateneo said.

“The study highlights the growing role of AI in financial decision-making and suggests exploring more advanced neural network designs to further enhance forecasting accuracy. It is hoped that businesses and policy makers will come to embrace these technologies in order to gain a competitive advantage in a rapidly evolving data-driven landscape.” — Aaron Michael C. Sy

Losing gracefully

FREEPIK

WHEN JOINING any contest, the objective is to win, no matter how the odds are stacked against you. All the effort and competitive skills are brought to bear towards success. The participant may not deem it necessary to craft a victory speech ahead of time, since this may bring bad luck, but does he even bother to think of a concession speech in case he loses? (Is he even going to be interviewed for his comments?) Still, the contestant must always consider the possibility, sometimes a big one, of losing.

Political contests are classic examples of the need to prepare for defeat.

A concession speech, after a loss, should contain the following — Gracious thanks to the supporters for the sacrifices made (including being with the defeated candidate rather than switching too quickly to the victor on the other side  — that will come a week later), a reminder of the public service already rendered, an expression of the willingness to offer one’s talent to the people (who already rejected it), and the gratitude for having met so many from different walks of life understanding their dreams and aspirations, and maybe congratulating the winner and hoping for his future success in the new position. (This last one can be skipped.)

A public congratulation to the winner (He won’t have time to chat with the loser, anyway) and an offer, no matter how insincere, to help without asking for any concession or position in return may be seen as a desperate attempt to share in the media limelight.

Unless the contest is just between two candidates, the attendance at a concession speech is expected to be thin, especially in terms of media attention. The bigger crowd is in another place, more crowded and jubilant.

Seldom is any graciousness and acceptance expected from defeat.

Too often, the loser lashes out at the process that put him in the dark side of the stage, away from the lights of the television cameras which are in another part of the building  — with the winner. There may even be hints of cheating.

There may be a protest march, a prayer rally, or, nowadays just as effective as a platform for whining, filing a case in court, or an invitation for an international investigation from election watchers, maybe a combination of these to give vent to the frustrations of losing.

And yet, losers may in fact have been truly robbed of their mandate, as is the case in a country in Latin America. International organizations may even be supporting this claim.

Chasing a big prize requires energy and monetary as well as emotional investment. The contest changes the contestants. Rules can be set aside, previously stated beliefs tweaked to conform to the prevailing sentiment from focus groups. Those formerly held in contempt may have been sought for alliances. And old friendships may need to be abandoned.

All losers carry the burden of humiliation. Will analysts of what went wrong be far behind?

Those who lose contests seldom concede. They prefer to fade away and lick their wounds in private. Their point of view is no longer objective. Bad procedures, unfair advantages, terrible officiating, uneven application of the rules are offered as explanations for defeat. Seldom does the loser grant or even allude to the superior ability and execution of the winner.

Even in a contest like sports which is attended by crowds, the interpretation of the outcome can vary depending on affiliation and team support. A close game that could have gone either way is seen as a lost opportunity by the loser  — if only he made those foul shots.

The art of losing has seldom been perfected. Why should it be? The focus of attention is on the winner. The loser is a sideshow undeserving of any public reaction. After all, one does not want to be too good at giving concession speeches. All the effort and practice go into trying to compete fiercely, and winning, and then preparing a victory speech before a big crowd.

But it is a fact of life that there are fewer winners than losers. It is the singular gold medalist that attracts cash prizes along with celebrity status. Brave efforts that almost got an athlete to the podium may be warmly extolled in private. A concession speech becomes unnecessary — even embarrassing.

 

Tony Samson is chairman and CEO of TOUCH xda.

ar.samson@yahoo.com

Huawei launches Mate 70 smartphone as new US chip curbs loom

REUTERS

SHENZHEN, China — Chinese tech giant Huawei Technologies unveiled its Mate 70 smartphone series on Tuesday, marking a significant step in its premium smartphone comeback while showcasing its own operating system in a clean break away from US technology.

The phone marks the “the most powerful Mate phone ever,” Richard Yu, chairman of Huawei’s Consumer Business Group, said at an event in the company’s hometown of Shenzhen.

The Mate 70 is the first mainstream smartphone to include a satellite paging system, has an improved processor and runs on Huawei’s own HarmonyOS Next operating system, which together boost performance by 40% compared to previous models, Mr. Yu said.

The launch comes as the US is expected to announce new export controls that could add up to 200 Chinese chip companies to a trade blacklist as soon as this week, restricting their access to US suppliers, Reuters reported on Saturday.

Huawei does not typically discuss its chip advancements at product launch events, with improvements usually discovered by teardown firms later.

The Mate 70 series is the first major commercial rollout of the HarmonyOS NEXT, a significant step in Huawei’s push for software independence since US curbs cut off its access to Google services in 2019.

While Huawei’s earlier versions of Harmony OS maintained Android compatibility, the HarmonyOS NEXT, which began public testing this year, represents a complete break from Android.

Last week, Huawei said it had secured more than 15,000 applications for its HarmonyOS ecosystem, with plans to expand to 100,000 apps in the coming months.

The patriotic sentiment surrounding Huawei’s technological breakthrough has helped fuel its market recovery and intensified competition with other players, including iPhone maker Apple, in China — the world’s largest smartphone market.

Huawei was ranked as China’s No.2 smartphone vendor in the third quarter of 2024, with deliveries exceeding 10 million units for the fourth straight quarter, according to research firm Canalys. This is a significant rebound from the second quarter of 2022 when it shipped just 4.1 million units.

The Mate 70 is the successor to the Mate 60 series released in August last year, widely seen as marking Huawei’s comeback to high-end smartphones.

Teardown analyzes revealed both the Mate 60 and the Pura 70 series — launched in April — feature advanced chips manufactured by China’s SMIC, underscoring the country’s growing semiconductor capabilities despite Western export controls. — Reuters

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