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Without Lionel Messi, Inter Miami seeks points at Orlando City

INTER Miami will be trying to pick up another crucial result in their pursuit of the playoffs without Lionel Messi when they travel a few hours north to visit Orlando City on Sunday evening.

Mr. Messi has played only 41 of Miami’s last 270 minutes in league play, first missing out due to international duty with Argentina and then because of fitness concerns.

The official explanation is not a new injury but the aggravation of a previous ailment due to fatigue. But it had the appearance of a player leaving the field injured when Messi exited with a slight limp in the first half of Miami’s 4-0 home win against Toronto FC on Wednesday.

“It’s bothersome,” said manager Tata Martino, via an interpretation from Goal.com. “I don’t know if it hurts. I can’t really explain as it’s more a medical topic. It’s probable it bothers (Messi) to the point, including mentally, that he isn’t able to play freely.”

The Herons (9-15-4, 31 points) entered the game five points beneath the playoff line and have recently fared OK without their star. They beat Sporting Kansas City at home and lost at Atlanta United in games Mr. Messi did not dress.

But a trip to second-place Orlando (14-7-8, 50 points) is a tougher assignment given how well the Lions have played of late.

A 2-0 loss at New York City FC in midweek halted an impressive six-match unbeaten run (5-0-1). The Lions clinched a playoff spot anyway thanks to results elsewhere later in the evening. They had needed until the final day to secure their postseason place a season ago.

Club scoring leader Facundo Torres has scored 10 of his 12 goals since the start of June and is just three off the pace of the league lead. He’s led an attack that has scored two or more in six consecutive home matches. — Reuters

Leaving the Sixers

If latest reports from the pro hoops grapevine are to be believed, James Harden is apparently still keen on leaving the Sixers. The extent of his desire is hardly earth-shaking in and of itself. After all, he felt aggrieved when he did not get the contract extension he expected in the offseason — a year after he agreed to lower terms in order to provide the red, white, and blue with the financial flexibility to shore up a top-heavy roster. With training camp about to open, however, his projected holdout is seen to put a severe crimp on title hopes in the City of Brotherly Love.

Not that compelling Harden to report to the Sixers’ practice facility in New Jersey this week will make things easier.  Since publicly branding general manager Daryl Morey “a liar” and pledging to “never be a part of an organization that he’s a part of,” the 10-time All-Star has cut off all communication with franchise officials. Which, in a nutshell, means they cannot expect him to play his best even if he is forced to suit up for them. It doesn’t even matter that the National Basketball Association fined him $100,000 for his public comments; if anything, it served to strengthen his resolve.

At this point, it’s fair to argue that Morey will want nothing more than to make Harden someone else’s headache. That said, he’s bent on getting a dollar-for-dollar value in any trade scenario. If nothing else, he needs to ensure that the Sixers stay competitive, lest reigning Most Valuable Player awardee Joel Embiid suddenly develop wanderlust. The problem is the lack of demand for the recalcitrant asset; around the league, the latter’s reputation has taken a significant hit following nasty separations with the Rockets and Nets. Who would want to take a chance in the face of uncertainty?

Logic dictates that the only way for Harden to get his wish is if he first proves his value to potential suitors. This means lacing up his sneakers for the Sixers and being at his best. He’s no spring chicken at 33, and the last thing he wants is to be viewed as requiring high maintenance while providing diminishing returns. As to whether he can let go of his anger enough to finally think straight, only time will tell.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

2022’s top-paid professionals: pilots, developers, mathematicians — PSA

PHILIPPINE Statistics Authority

AIRCRAFT pilots, software developers, and mathematicians were among the top-paying jobs in 2022, data from the Philippine Statistics Authority (PSA) showed.

In the 2022 Occupational Wages Survey by the PSA, aircraft pilots and related professionals had the highest average monthly wage at P135,363, which was twice as much as the top-paying jobs in 2020, held by mathematicians, actuaries, and statisticians at P63,368.

The OWS focuses on establishments with a workforce of at least 20 employees to track wage rates of benchmark occupations (including accounting and bookkeeping clerks and unskilled workers) and up to 11 different monitored occupations from each of the preselected 55 out of the 71 industries.

The rest of the top five high-paying occupations were software developers (P70,595), mathematicians and actuaries (P69,654), production supervisors and general foremen (P63,017), and application programmers (P58,643).

In the industry level, four occupations that made it into the top 10 were engaged in the industry of insurances, reinsurance, and pensions (except compulsory social security). This included mathematicians and actuaries, applications programmers, statisticians, and accountants.

The healthcare industry was also recognized in the 2022 survey as healthcare workers, specifically specialist medical practitioners and medical doctors/generalist medical practitioners, which were not on the last OWS high-paying job list, are now positioned at ranks six and eight, respectively.

The following are the top six to 10 highest-paying occupations: specialist medical practitioners (P57,476), statisticians (P51,607), medical doctor/generalist medical practitioners (P51,251), geologists (P49,059), and accountants (P48,982).

As for benchmark occupations (jobs that are common and are often near or at the bottom of the wage scale) across the regions, the highest recorded average monthly wage rate was in the National Capital Region at P24,530. This was followed by Region III at P20,029 and Central Visayas at P18,989.

Across the 193 monitored occupations, the overall average monthly wage rate saw an increase of 11.7% to P18,423 in 2022 from P16,486 in 2020. This marked a turnaround from the contraction of almost 10% in 2020.

Similarly, the median monthly basic pay across all industries inched up by 6.9% to P13,588 in 2022 from P12,753 in 2020.

The highest median monthly basic pay was recorded in the electricity, gas, steam, and air conditioning supply industry, reaching up to P29,928 in 2022 from P27,253 in 2020, recording a growth of 6.9%.

The leading percent growth in median monthly basic pay was seen in workers in mining and quarrying, with a 21.5% growth, reaching P16,132 in 2022 from P13,272 in 2020. — Andrea C. Abestano

Crypto play-to-earn game craze highlights urgent need for awareness — expert

A NON-FUNGIBLE TOKEN (NFT) is displayed on the website of NFT marketplace OpenSea in this illustration picture taken on Feb. 28, 2022. — REUTERS

By Miguel Hanz L. AntivolaReporter

MANY FILIPINOS have fallen victim to the fanfare of play-to-earn games enabled by cryptocurrency due to a lack of awareness, according to an expert.

Consumers must be informed and empowered to handle any financial asset responsibly, Jeanifer C. Bilango, the country manager of the local crypto brand Coins.ph, said in an interview with BusinessWorld.

“It has shown how Filipino consumers are ready from an educational and tech standpoint,” Ms. Bilango said regarding crypto adoption in the country.

“Filipinos are quite sophisticated enough to be onboarded into Web3 because in order for you to play Axie, you need to have a Web3 wallet,” she added.

Ms. Bilango noted that most failed to understand the speculative nature—the promise of profit—surrounding such an opportunity.

“It’s just economics—you have a limited supply, and if demand is not properly addressed or funneled properly, it will lead to prices going up,” she said. “That’s the biggest learning.”

Axie Infinity, a Vietnam-based online video game powered by non-fungible tokens (NFTs), took the Philippines by storm during the pandemic and saw 35% of its traffic in the country, according to its creator Vietnamese studio Sky Mavis.

Players can collect, trade, and play with virtual creatures called Axies, which are traded in the form of NFTs and used to sell for hundreds of thousands of dollars.

The online video game had been losing about 50,000 players a month since January 2022, based on data from activeplayer.io, due to a supply-and-demand imbalance and volatile crypto assets, which Sky Mavis developers were trying to fix, BusinessWorld reported in March that year.

According to crypto insights company CoinGecko, the price of a single SLP token peaked at P19.97 on July 13, 2021. As of Friday, it is priced at P0.077954—barely a single Philippine peso.

“Most people ascribe crypto to scams because of the illegitimate players who affect the perspective of the space,” Ms. Bilango said regarding entities that are not bound to certain audits and regulations.

“There are ways in which we have to work on teaching people how to use crypto responsibly,” she added.

“We’re still early, but it takes time for legitimate projects to build on top of the blockchain, but we are very optimistic because we see adoption albeit small.”

Ms. Bilango said that the government has been open-minded about crypto adoption in the country.

“What they want at the end of the day is consumer protection, and what we want is to innovate. So where can we meet in the middle?” she said.

There are 20 virtual asset service provider (VASP)-licensed firms listed by the Philippine central bank, following the recent approval of UnionBank on Tuesday.

Ms. Bilango noted that the local crypto market is seeing opportunities in remittances and stablecoin, which aims to stabilize its market value as a cryptocurrency to another currency or commodity.

First Atkins Group completes land purchase for its 8th cold storage

In photo, standing from left to right: Atty. Marlon Morada, First Atkins Vice Legal Counsel; Myk Gamora, First Atkins Group CFO; and Aldwin Dumago, Lima Land Industrial Business Operations Head. Seated: Gabriel J. Ang, First Atkins Group President & CEO; and Clifford Academia, Lima Land VP of Operations

The First Atkins Group continues its commitment to promoting food sufficiency as it unveils plans for its 8th cold storage facility. First Atkins Holdings Corp. (FAHC), through its subsidiary First Inland Kingdom Realty Corp. (FIKRC), has successfully acquired a 34,558-square-meter (3.46 hectares) industrial estate from Aboitiz Equity Ventures (AEV) subsidiary, Lima Land, Inc.

This new facility, to be situated within the industrial estate, is poised to become the largest of its kind in the country, boasting more than 20,020 pallet positions (PP) for frozen meat and a capacity of 5 million kilos for onions. It will incorporate state-of-the-art Japanese technology, particularly its Automated Storage and Retrieval Systems (ASRS), a robotics-aided system designed for efficient item retrieval and storage. This project represents one of FAHC’s multibillion-peso initiatives aimed at bolstering food security.

Cold storage facilities offer a range of valuable advantages, including the reduction of food wastage through extended shelf life, preservation of product quality, and optimization of supply chain management. These facilities also play a crucial role in disaster recovery by safeguarding food supplies during emergencies, ultimately enhancing economic stability in the agricultural sector.

President and CEO Gabriel J. Ang expressed, “We selected this Aboitiz property due to its strategic location near the Batangas Port and the reliable partnership offered by a well-developed industrial subdivision.” He also expressed hope about the potential positive outcomes that could be realized by both FAHC and the onion producers in Mindoro through their collaboration. Mindoro is known to be one of the three largest onion producers in the country.

FAHC reiterates its resolute commitment to collaborating with the government in achieving food sufficiency objectives. This commitment involves the construction and efficient operation of cold storage facilities, with the aim of reducing intermediary costs and ensuring direct access for consumers to affordable, high-quality food.

FAHC is the parent company of meat importation and distributor Atkins Import and Export Resources, Inc. and Prime Numbers Commodities, Inc., cold storage operator First Meycauayan Cold Storage and Leasing, Inc., real estate arm First Inland Kingdom Resources, Inc., logistics firm Trident Supply Chain Solutions, Inc., and ready-to-cook and packaged food manufacturer First Gablen Trading Corp.

 


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Philippines approves GSK anti-shingles vaccine

The Food and Drug Administration (FDA) has approved a vaccine for the prevention of shingles, a viral infection caused by the same virus that causes chickenpox, biopharmaceutical company GlaxoSmithKline (GSK) announced on Thursday.

The GSK shingles vaccine is administered intramuscularly in two doses and is intended for the prevention of shingles in adults aged 50 and above, as well as those aged 18 and above with immunocompromised conditions, according to the company.

“Shingles is a disease that can cause excruciating pain and is caused by the reactivation of the varicella-zoster virus,” Giovell P. Barangan, GSK Philippines medical director, said in an e-mailed statement.

“As people age, the cells in the immune system lose the ability to mount a strong and effective response to infection, increasing the risk of developing shingles,” GSK Philippines said, citing a study from the British Journal of General Practice.

A paper from the BMC Public Health journal noted that shingles typically presents as an unbearably painful, isolated rash and can also lead to long-lasting nerve pain called post-herpetic neuralgia.

A study on the long-term protection provided by the vaccine, published in the Infectious Diseases journal, showed that the vaccine maintains an 89% efficacy rate at 9.6 years post-vaccination, one month after the second dose.

The vaccine was initially approved in the United States and Canada in 2017 for shingles prevention among those aged 50 and older, and it has since been adopted by over 40 other countries.

In December 2022, the FDA issued a public health warning against the unauthorized sale of the Shingrix shingles vaccine from GSK Philippines, which was under evaluation at the time.

The Quezon City government allocated P20 million to fund its free shingles vaccine program for senior citizens in 2018, using Zostavax, according to the Philippine News Agency.

However, the sale and use of Zostavax in the United States were discontinued as of November 2020, according to the Centers for Disease Control and Prevention.

The Advisory Committee on Immunization Practices has noted that GSK’s Shingrix recombinant zoster vaccine is the preferred shingles vaccine. — Miguel Hanz L. Antivola

PHL tourism’s carbon emissions jump amid travel resurgence

PHILSTAR

The Philippine tourism industry saw a substantial 75% increase in carbon dioxide (CO2) emissions from petroleum and electricity usage in 2022, coinciding with the post-pandemic resurgence of travel activities.

Preliminary data from the Philippine Statistics Agency (PSA) showed that CO2 emissions from petroleum and electricity usage reached 6,840.07 gigagrams (Gg) of CO2 in the past year, marking a 75% surge from the 3,907.80 Gg recorded in 2021.

In terms of the country’s total CO2 emissions arising from petroleum and electricity use, the tourism industry’s share for 2022 stood at 11.4%, surpassing the 6.2% recorded in 2021.

Experts have noted the far-reaching consequences of increasing carbon emissions on the environment, climate, and society.

This year, the Tourism department targets international tourist arrivals of 4.8 million. The country has logged over three million international visitors as of July 19, a development Tourism Secretary Maria Esperanza Christina G. Frasco attributed to the government’s efforts in revitalizing the tourism industry.

The Philippines had previously committed to a 75% reduction in greenhouse gas (GHG) emissions by 2030, with approximately 72.29% of this target contingent on support from developed countries in terms of climate finance, technologies, and capacity development. The remainder of the target is slated for implementation through domestic resources.

By sector, transportation services made up 3,868.40 Gg, or more than half of the sector’s total CO2 emissions. However, this is still lower than the 21,370.46 CO2 emissions in 2019 or before the coronavirus pandemic.

This was followed by accommodation services for visitors (1,532.66 Gg), travel agencies, and other reservation services (787.73 Gg), food and beverage services (433.98 Gg), and entertainment and creation services (217.30 Gg).

The International Transport Forum, a policy think tank for all modes of transport, has said that countries need a combination of complementary policies that successfully avoid unnecessary transport activities, shift more trips from fuel-burning to no-carbon transport, and improve the efficiency of transport generally.

Meanwhile, the tourism industry’s water consumption rose by 115% to 286.84 million cubic meters (cu.m.) in 2022, from 133.44 million cu.m. in 2021.

The tourism industry’s share in total Philippine water consumption stood at 5.4%, the highest in three months or the 17.6% share in 2019.

Hotels, resorts, and other tourist accommodations had the highest water consumption at 211.44 million cu.m., representing 73.7% of total tourism water consumption. However, this was way below the 557.72 water consumption in 2019 or before the COVID-19 pandemic.

This was followed by food and beverage services (18.4%), transport services (3.5%), entertainment and creation services (3.2%), travel agencies, and other reservation services (1.1%).

Also, the tourism industry’s energy consumption grew by 84.5% year on year to 5678.86 kilotons of oil equivalent (KTOE) in 2022.

Tourist accommodations accounted for the highest energy consumption in 2022, with 2,466.29 KTOE or 43.4% of the total energy consumption.

Oikonomia Advisory & Research, Inc. President and Chief Economist John Paolo R. Rivera said in an email that the growth in these sectors is due to the resumption of tourism activities to pre-pandemic levels.

“The increased activities driven by revenge travel and the natural inclination of people to travel. The promos on travel, airfare, accommodation help in boosting this increase,” said Mr. Rivera.

“This will continue and may exceed pre pandemic levels as destinations open. This is just slowed down by high fuel prices that hamper further travel,” added Mr. Rivera

In 2022, the tourism sector’s direct gross value-added to the economy as measured by the gross domestic product was estimated at 6.2%, a notch higher than 2021’s 5.2%. — Lourdes O. Pilar

Teeing off to success: OA Global Dominion Cup 2023

Photo from the OA Global Dominion Golf Cup 2023 on Aug. 17, 2023

The first-ever golf event organized by Global Dominion Financing, Inc., the “OA Global Dominion Cup 2023!” was held at Valley Golf Antipolo in Rizal. Beyond the captivating greens and serene landscapes, this event was a tribute to partnerships and shared passions. With the added allure of celebrity presence, business liaisons, thrilling raffles, and a heartfelt birthday tribute to Global Dominion’s Brand Ambassador, Singer-Songwriter Ogie Alcasid, the day was etched into the memories of all who were part of it.

“Welcome to the very first OA Global Dominion Cup! We are blessed with wonderful weather and, of course, they’re so excited to spend this very first OA Global Dominion,” said Ogie Alcasid, birthday celebrant and Global Dominion Brand Ambassador, while welcoming the event’s guests.

The Global Dominion team with Ogie Alcasid

The OA Global Dominion Cup 2023 unfolded as a meeting ground for visionaries and entrepreneurs. More than a sports event, it served as a crucible of innovation, where thought leaders came together to exchange insights and discover pathways to mutual growth, with the support of sponsors who believed in the event’s vision. Their contributions made the day an unforgettable spectacle.

“I’d like to thank all our guests and our sponsors for coming here today. I wish Ogie the happiest birthday, and I’d like to greet Global Dominion on its 20th anniversary!” exclaimed Robert B. Jordan, Jr., Global Dominion Chief Executive Officer.

Spotted during the event are Michael V. and his wife, Boboy Garrovillo, Ella Nympha, Kiara Montebon, Daniela Uy, Emilio Garcia, Epi Quezon, Ronnie Henares, Bearwin Meily, Jong Cuenco, Monsour Del Rosario, Tonton Gutierez, Glydel Mercado, Shie Lanuza, Samantha Lopez, Mylene Salonga, and Nani Pazcoguin among the flock of celebrities who attended.

“I’d like to greet a warm happy birthday to my brother, dear friend, our ambassador Ogie Alcasid, pare happy birthday! Happy, happy 20th Anniversary of course to Global Dominion — 20 years na tayong tumutulong sa marami nating mga kababayan sa kanilang pag-angat,” said Ruben Y. Lugtu II, Global Dominion Chairman of the Board.

Ogie Alcasid with some of his friends during the OA Global Dominion Golf Cup 2023

As participants left with trophies, memories, and newfound friendships, the event’s impact continued to reverberate. Leaving as winners are as follows:

  • Nearest to the Pin, 8ft — Bong Fernando
  • Longest Drive, 235 yards — Kiara Montebon
  • Most Accurate Drive — Bong Fernando and Paolo Martinez
  • Guest Division Champion Class A: with gross score 70, handicap 3 and net score 67 — Juanito Chua
  • Guest Division Champion Class B: with gross score 91, handicap 19 and net score 72 — Michelle Packing
  • Team Division Champion with 273 points — White Team
Global Dominion Chairman Ruben Lugtu II and Global Dominion Brand Ambassador Ogie Alcasid

Global Dominion team’s dedication and commitment to the event are at the core of its success. With the spirit of this year’s celebration in mind, everyone eagerly awaits the next chapter of the OA Global Dominion Golf Cup.

“Congratulations to all the winners of the OA Global Dominion Cup, the first in history. We do hope you enjoyed it. It was a fun and perfect day; even the weather cooperated, and we hope to see you again in all future projects and events of Global Dominion Financing,” Global Dominion President and COO Patricia Poco-Palacios stated in an interview.

Global Dominion has been empowering families in achieving their goals and dreams for 20 years now through car collateral loan (Sangla OR/CR), car and truck financing, doctors’ loan, and real estate mortgage loan for business owners, with competitive interest rates and convenient payment options. — Jay Ann Bonghanoy

 


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Australia posts first budget surplus in 15 years as tax revenues soar

REUTERS

SYDNEY – Australia on Friday recorded a final budget surplus of A$22.1 billion ($14.2 billion) for the year to June 2023, five times earlier estimates, as strong jobs growth and bumper mining profits helped the country post the first surplus in 15 years.

Figures from the Treasury showed the surplus was around 0.9% of gross domestic product, and the government will return 95% of revenue upgrades to the budget bottom line in a bid to avoid adding to inflation.

In its May budget, the Labor government had projected a surplus of A$4.2 billion, a huge turnaround from the pandemic-driven deficits of the two previous years.

However, the budget is projected to return to deficit this year amid intensifying spending pressures on healthcare, energy and defense. Higher interest rates and a slower global economy are set to slow the domestic labor market.

“It’s not our expectation at the moment… that there will be a second one,” Treasurer Jim Chalmers said in an interview with ABC News Breakfast.

“We know that it’s not an end in itself, but it’s a really important, much stronger foundation from which to face the uncertainties ahead, and the pressures on the budget are intensifying rather than easing.”

By banking revenue upgrades, the government lowered gross debt by A$87.2  billion and will avoid around A$12 billion in interest payments over the five years to 2026-27.

Chalmers said in July the budget surplus was likely to be a little over A$20 billion for the past financial year. — Reuters

Indonesia’s rainforest seen at risk from 2024 election handouts

JAKARTA SKYLINE — the view from the top of the National Monument. — JOHN VICTOR D. ORDOÑEZ

KUALA LUMPUR – Indonesia’s elections next year are likely to spur deforestation as politicians seek campaign funds from businesses in return for easier access to rich natural resources, environmentalists say.

The Southeast Asian nation, the world’s third-largest democracy, will hold a general election on Feb. 14, with regional polls planned for later in 2024.

“Next year’s election is pivotal for Indonesia to determine the fate of the richest and most biodiverse forests in the world,” said Annisa Rahmawati, a board member at Indonesian conservation group Satya Bumi.

She and other experts fear the soaring costs of campaigns – and little oversight of spending – will undercut rainforest protection.

Ward Berenschot, a professor in comparative political anthropology at the University of Amsterdam, said election campaigns in Indonesia are so expensive that politicians from local to national levels have developed “very close ties” with natural resource companies to help finance their ambitions.

“Measures to protect forests have been under pressure because helping campaign donors, or sometimes even family companies, to sidestep or circumvent (them) has been a way to fund campaigns,” said Berenschot, who has researched the issue.

Nature-rich Indonesia has a third of the world’s rainforests but large areas have been cleared in recent decades due to the expansion of crops like palm oil, as well as mining, pulp and paper expansion, and urbanisation.

Trees suck up planet-warming carbon dioxide to grow, but release it when they rot or are burned. Land use change, mainly deforestation, accounts for about 10-20% of global greenhouse gas emissions.

Indonesia’s deforestation rates have slowed in recent years – helped by stricter policies and forest fire controls – but the Southeast Asian nation was still ranked fourth globally for primary tropical forest loss in 2022 by the nonprofit World Resources Institute.

VOTE-BUYING WIDESPREAD DESPITE CRACKDOWNS

Vote-buying has become common in Indonesia’s national elections over the last 25 years, despite crackdowns by the state corruption watchdog. A 2017 poll estimated that a third of voters are impacted by the practice.

After the presidential election in 2019, runner-up Prabowo Subianto – now the defence minister – initially refused to accept the result, with his party citing fraud that included vote-buying. The Constitutional Court dismissed his objections.

With current President Joko Widodo’s second and final term due to end, candidates for next year’s presidential elections include Prabowo, Central Java governor Ganjar Pranowo and former Jakarta governor Anies Baswedan.

Key voter issues include jobs, the economy, health care access, the cost of living, corruption, pollution and climate change.

Conservationists will be hopeful that Widodo’s successor will build on the results his government has achieved in tackling deforestation and restoring mangroves, including making permanent a moratorium on primary forest clearing.

With a growing population of 270 million, Indonesia’s elections are becoming increasingly expensive – leading to forests being used as an “ATM” cash dispenser by many parties seeking campaign finance, said Rahmawati of Satya Bumi.

This practice should stop “because it humiliates and ruins our progress in democracy … destroying our environment and our economy”, she said, adding that electoral candidates should be forced to publish the source of all their campaign funds.

Marcus Colchester, a senior policy advisor at the UK-based Forest Peoples Programme, said Indonesian politicians are often unwilling to regulate corporations because they depend on them for funds.

Those links often harm local and Indigenous peoples, whose land is sometimes granted to companies without their consent, he added.

“(The) double whammy – impunity and graft – becomes the main obstacle to social justice and environmental prudence,” Colchester said.

“Accountability and democracy are undermined, and natural resource governance made impossible.”

BIG BUSINESS RULES IN INDONESIAN POLITICS

Berenschot at the University of Amsterdam said changes to legislation have often favoured big business. A 2023 decree seeking to boost jobs and investment, for instance, was criticised by green groups as weakening environmental protections.

“That close connection between business and politics also enabled certain policies and laws … to be adopted, which risks accelerating deforestation,” Berenschot said.

In addition, Indonesia’s major political parties are often led by wealthy individuals and business owners, who may prioritise the economy over issues like the environment.

Politicians’ campaign spending is hard to track and often lacks transparency.

Ten years ago, an expert survey among 500 local political observers found that a successful candidate for district head spent on average $1.5 million on campaigning, while an elected governor spent about $10 million, he added.

“For an economy where the minimum wage is about $300 per month, these are very big amounts of money,” Berenschot noted.

AFTER AN ELECTION, FORESTS FACE PRESSURE

In election years, deforestation rates have slowed but then usually increased the following year, said Toerris Jaeger, director of the Oslo-based NGO Rainforest Foundation Norway.

“In the past we have seen that before the end of a government period, licences and permits in the forest and peatland area were being given to companies that provided or backed up campaign funding or that were tied into political parties that are running in the election,” said Jaeger.

Failure to tackle the link between elections and deforestation will make it harder for Indonesia to reach its own climate goals related to reducing emissions from deforestation – and lead to more frequent natural disasters, he added.

“Transparency and accountability are necessary to break the link between deforestation and funding for political campaigns,” Jaeger said. — Reuters

China’s AI ‘war of a hundred models’ heads for a shakeout

STOCK PHOTO | Image by Gerd Altmann from Pixabay

HONG KONG – China’s craze over generative artificial intelligence has triggered a flurry of product announcements from startups and tech giants on an almost daily basis, but investors are warning a shakeout is imminent as cost and profit pressures grow.

The buzz in China, first ignited by the success of OpenAI’s ChatGPT almost a year ago, has given rise to what a senior Tencent executive described this month as “war of a hundred models”, as it and rivals from Baidu to Alibaba to Huawei promote their offerings.

China now has at least 130 large language models (LLMs), accounting for 40% of the global total and just behind the United States’ 50% share, according to brokerage CLSA. Additionally, companies have also announced dozens of “industry-specific LLMs” that link to their core model.

However, investors and analysts say that most were yet to find viable business models, were too similar to each other and were now grappling with surging costs.

Tensions between Beijing and Washington have also weighed on the sector, as U.S. dollar funds invest less in early-stage projects and difficulties obtaining AI chips made by the likes of Nvidia start to bite.

“Only those with the strongest capabilities will survive,” said Esme Pau, head of China internet and digital asset research at Macquarie Group, who expects consolidation and a price war as players compete for users.

She added that several leading companies have signaled they will compete on price to gain market share, just as cloud services such as those belonging to Alibaba and Tencent have done.

“In the next six-12 months, LLMs with lower capacities will gradually be eliminated due to chip restrictions, high costs and intensifying competition,” Pau said.

FOUNDERS AND INCUMBENTS

Opinions on which firms will last vary widely.

Yuan Hongwei, chair of Shenzhen-based venture capital Z&Y Capital, said she believed that only two to three general-purpose LLMs will end up dominating the market.

That is why her firm looks for experienced founders when deciding on which startups to invest in.

Z&Y, whose past investments include drone maker DJI and autonomous driving startup Pony.ai, eventually decided to back Baichuan Intelligence, a five-month-old firm looking to build an open-source AI model to rival Meta Platform’s Llama 2.

Baichuan was started by Wang Xiaochuan, founder of China’s No.2 internet search engine Sogou Inc, and became one of the first five companies to receive Beijing’s approval to release a public chatbot in late August. The company is on track to close a second round that will value it at $1 billion, Wang said.

“We see an opportunity here,” Yuan said. “Wang himself is leading this project. Given his understanding of the digital business, his success with Sogou and how he commands attention industry-wide, we think it is our best bet.”

Several other big name entrepreneurs and tech executives are behind new Chinese AI startups, such as Google China’s former chief Kai-Fu Lee and Yan Juejie, a former vice-president of SenseTime.

Others said that China’s largest tech companies Alibaba, Tencent and Baidu ultimately had the biggest headstart and deep pockets to succeed, given their large user bases and wide range of services. For instance, they could easily offer generative AI services as an additional plug-in to their cloud users.

“The incumbent tech giants have inherited an unfair advantage of a majority of low-hanging fruit business scenarios from their established ecosystems,” said Tony Tung, managing director at Gobi Partners GBA.

Tung added that some investors regret prematurely investing in LLM firms at the peak of the hype earlier this year with many such startups struggling to build strong business cases and now looking to partner with tech giants to find use cases or be potentially sold to them.

“Many people end up developing similar LLMs, that are looking for similar problems to solve, with micro innovation in the data processing technique or model architecture,” he said.

“At this particular moment, investors have certainly sobered up quite a bit compared to early this year.” — Reuters

Warner Bros to expand British studios’ production capacity by over 50%

Warner Bros Discovery on Thursday said it planned to expand production capacity at its Leavesden studios near London by more than 50%, adding 10 new sound stages to the facility where much of the “Barbie” blockbuster and HBO’s “House of the Dragon” were filmed.

The project, announced during a visit to Los Angeles by British Finance Minister Jeremy Hunt, is expected to create some 4,000 direct and indirect jobs, the company said in a statement.

Hunt told Reuters in a telephone interview that the investment would total 245 million pounds ($301 million).

Warner Bros said it would increase the value of Leavesden’s annual film and television production by 200 million pounds ($245.9 million), bringing it to 600 million pounds ($737.6 million a year, Warner Bros Discovery said.

The investment comes as Warner Bros Discovery’s California production has been hit with the first joint writers’ and actors’ strikes in 63 years, delaying major projects and prompting it to slash revenue forecasts for the rest of this year.

The Leavesden project’s construction is due to start in the second quarter of 2024, with completion in 2027 and will bring the facility’s total stages to 29 from 19 currently.

Hunt said the Leavesden project “is a huge vote of confidence in the UK” and will benefit from longstanding British tax breaks for local film and television production.

“The UK ambition is to be the world’s next Silicon Valley, and we think we’re already Europe’s technology and entertainment hub. And this is another step towards that,” he said. — Reuters