HONOR to launch Magic6 Pro phone in PHL next week

May 2, 2024 | 12:01 am

HONOR Philippines is set to launch next week the HONOR Magic6 Pro smartphone, which has a camera powered by artificial intelligence (AI) technologies, it said on Tuesday.

“We’re absolutely thrilled to unveil the HONOR Magic6 Pro, especially at a time when the demand for AI-driven solutions is soaring. This smartphone isn’t just about keeping up; it’s about setting the bar higher. With its award-winning features, it’s tailor-made for Filipinos who crave the latest in technology,” Stephen Cheng, Vice-President of HONOR Philippines, said in a statement.

The new 5G-enabled smartphone will be launched in the Philippines on May 8, the company said.

The HONOR Magic6 Pro features the HONOR Falcon Camera system at its rear, it said. It has a 50-megapixel (MP) wide camera, a 50-MP ultrawide lens, and a 180-MP periscope telephoto camera. It also has a 50-MP front camera.

“[This] device harnesses the power of AI to deliver unparalleled imaging experiences. With the ability to support up to 100x digital zoom, coupled with automatic detection of facial expressions and body movements, users can seize every moment with remarkable precision and clarity,” HONOR said.

Based on the brand’s website, the HONOR Magic6 Pro has a 6.8-inch quad-curved floating screen with an FHD+ 1280×2800 resolution, HDR peak brightness of 5,000 nits and global peak brightness of 6,000 nits.

It runs on Snapdragon 8 Gen 3 and MagicOS 8.0 based on Android 14.

The phone has 12GB RAM and 512GB of storage.

The new phone also has the Magic Capsule feature, which allows users to quickly access their notifications.

“Seamlessly integrated into the touch screen interface, the Magic Capsule enhances user experience by providing quick access to relevant information related to notifications. No more navigating through multiple apps — with a simple tap, users can expand the Magic Capsule to delve deeper into their notifications, making interaction more intuitive and efficient,” the brand said.

The HONOR Magic 6 Pro has a silicon-carbon battery that supports up to 66 watts of wireless fast charging.

“Integrated with the Power Enhanced Chip HONOR E1, this device ensures extended battery endurance even in extreme weather conditions. With a massive 5,600mAh capacity, users can enjoy uninterrupted usage, showcasing exceptional low-temperature performance that defies expectations. To illustrate its capabilities, users can play the YouTube video for 81 minutes at -20 °C with just 10% battery level remaining,” HONOR added.

The phone also has an AI Privacy Call feature and was made via a double-sided 3D Carving process with premium materials.

The HONOR Magic6 Pro is available in Black and Epi Green color options. — BVR

US Justice Department takes step to make marijuana use a less serious crime

May 2, 2024 | 12:01 am

THE US Justice Department on Tuesday moved to make marijuana use a less serious federal crime, taking a step to remove the drug from a category that includes heroin in a shift that could shake up cannabis policy nationwide.

Shares of cannabis firms including Tilray, Trulieve Cannabis Corp., and Green Thumb Industries surged.

The Justice Department, which oversees the Drug Enforcement Administration, said Attorney General Merrick Garland recommended that cannabis be classified as a so-called schedule three drug, with a moderate to low potential for physical and psychological dependence, instead of schedule one, which is reserved for drugs with a high potential for abuse.

Penalties for possession and use of schedule three drugs can be less severe under federal law.

The proposal goes from the Justice Department to the White House Office of Management and Budget for review and finalization. A public comment period will follow. President Joseph R. Biden, a Democrat who is running for re-election in November, initiated a review of the drug’s classification in 2022, fulfilling a campaign promise that was important to left-leaning members of his political base.

Currently, the drug falls under the DEA’s class that includes heroin and LSD. It would be moved to a group that contains ketamine and Tylenol with codeine.

GAP BETWEEN STATE, FEDERAL LAWS
Reclassifying marijuana represents a first step toward narrowing the chasm between state and federal cannabis laws. The drug is legal in some form in nearly 40 states.

While rescheduling the drug does not make it legal, it would open up the doors to more research and medical use, lighter criminal penalties and increased private investment in the cannabis sector.

The Justice Department’s move came after the Health and Human Services Department in August recommended rescheduling cannabis as part of Mr. Biden’s ordered review.

Public support for marijuana legalization has risen from 25% of US adults in 1995 to 70% in 2023, according to polling group Gallup.

Colorado and Washington became the first states to allow recreational marijuana in 2012. Owen Bennett, an analyst at Jefferies investment banking group, said reclassification would increase the chances of full federal legalization within five years.

Colorado Governor Jared Polis said in a statement that he was “thrilled” that the Biden administration would be “correcting decades of outdated federal policy.”

Black Americans and communities of color have been disproportionately impacted by marijuana drug enforcement for decades. Black people are 3.6 times more likely than white people to be arrested for marijuana possession, despite similar usage rates, according to the American Civil Liberties Union.

According to the Pew Research Center, Black and white Americans used marijuana at roughly comparable rates in 2020. Yet Black people accounted for 39% of all marijuana possession arrests despite being only 12% of the US population then.

Mr. Biden and Vice President Kamala Harris are seeking to bolster support from Black voters for their re-election bid against former President Donald Trump, a Republican.

The change would also enable more medical research under the US Food and Drug Administration, which supports the reclassification. Cannabis has been successfully used to treat pain, spasticity and epilepsy, among other conditions.

Smart Approaches to Marijuana, a group against the “commercialization and normalization” of marijuana, said it would mount a legal challenge if the proposal is finalized. It said investors in the marijuana industry would be the biggest beneficiaries of the change.

“This industry, which has lobbied heavily to sell demonstrably harmful products, will now use this announcement to drive even more deliberate misinformation about these high-potency drugs to expand use and addiction,” Kevin Sabet, the group’s president, said in a statement.

While states have set a minimum age of 21 for legal recreational marijuana use, concerns are likely to be raised about whether the proposed change could affect youth.

Research has shown marijuana use in the teen years puts individuals at higher risk of not finishing high school, harm to brain development and later mental health disorders such as schizophrenia, according to the Centers for Disease Control.

A study published in March said there was no compelling evidence that legalizing marijuana sales to US adults increased consumption among young teens.

BOON TO CANNABIS BUSINESS
If marijuana’s classification were to ease at the federal level, cannabis companies could reap significant benefits.

Their shares could be eligible for listing on major stock exchanges, and the companies could receive more generous tax deductions.

Moreover, they could face fewer restrictions from banks. With marijuana illegal federally, most US banks do not lend to or serve cannabis companies, prompting many to rely on cash transactions. This has made some vulnerable to violent crime.

The National Cannabis Roundtable, which represents cannabis companies, said the move “is critical for state legal cannabis businesses to be treated with fairness … and to survive the threat the illicit market poses to the regulated market and public safety,” said Executive Director Saphira Galoob.

The Associated Press first reported the DEA’s reclassification recommendation on Tuesday. — Reuters

Manila lags in safety index list

May 2, 2024 | 12:00 am

The Philippine capital placed 152nd out of 181 cities in the Safety Index by Global Residence Index. Manila got a safety index score of 0.41 out of possible 1, the lowest in East and Southeast Asia. The index measures the overall safety of cities based on various risk factors such as homicide rates, political stability, personal security, and natural disasters.

EXPLAINER | Taking care of the workforce

May 1, 2024 | 10:10 pm

Rey Elbo, People Management Journalist and HR Coach, shares his expertise and opinions on how companies can provide better care for their employees.

Volatility may persist after ‘wild’ April for market

May 1, 2024 | 9:00 pm

VOLATILE TRADING is expected to continue this month after a rocky April for the Philippine stock market, analysts said.

On Tuesday, the Philippine Stock Exchange index (PSEi) dropped by 1.02% or 69.15 points from the previous day to end April at 6,700.49, while the broader all shares index went down by 0.48% or 17.34 points to end at 3,525.94.

Month on month, the PSEi declined by 2.9% or 203.04 points from its 6,903.53 close on March 27.

“April saw the year’s first major correction as the market quickly priced in the decreasing probability of interest rate cuts this year as well as the heightened risk of wider geopolitical conflicts,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“It was also a particularly volatile month, with the index posting its highest and lowest levels since the start of 2024, and for a time, all index gains for the year were erased.”

Iran on April 13 launched more than 300 drones and missiles against Israel, its first direct attack on the country, in retaliation for a suspected Israeli air strike on its embassy compound in Damascus on April 11 that killed elite military officers, Reuters reported.

The month’s worst close was logged on April 16, with the PSEi hitting 6,404.97, lower than the end-2023 finish of 6,450.04, amid fears that the conflict would escalate. Easing tensions have allowed the index to rebound.

“April has been a wild ride. We saw the market attempt to break above 7,000, only to drop back down to 6,400 on geopolitical and inflation concerns. Now we’re halfway back to 7,000 again as first quarter earnings start to trickle in,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

For this month, “market choppiness” is expected to persist as lingering inflation concerns are expected to keep central banks at home and abroad hawkish, Mr. Colet said.

The US Federal Reserve was set to announce its latest policy decision overnight, with markets expecting it to keep its target rate at 5.25%-5.5% for a sixth straight meeting amid sticky inflation.

The Bangko Sentral ng Pilipinas is expected to follow suit and keep its policy rate at a 17-year high of 6.5% for a fifth straight time at its own meeting on May 16 due to elevated prices of key commodities like rice due to the impact of El Niño.

“Hopefully, the market can sustain the momentum heading into May, although I’m a bit cautious because there’s a saying in the market to sell in May and go away,” Mr. Garcia said.

“Historically, May is not a good month for the stock market, but hopefully we’ll get a stream of good earnings… Based on what we have so far, it looks like this will be a good earnings season,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort put the PSEi’s major support at 6,360 and major resistance 6,800-6,820. — Revin Mikhael D. Ochave with Reuters

PHL trade talks with UAE expected next week

May 1, 2024 | 8:21 pm

THE PHILIPPINES is expected to start the first round of negotiations for a comprehensive economic partnership agreement with the United Arab Emirates (UAE) next week, with a target to wrap up talks within the year, the Trade department said.

Undersecretary Allan B. Gepty of the Department of Trade and Industry told reporters that the Philippines will start the first round of talks on May 6.

“That is, of course, a very important free trade agreement (FTA) for the Philippines given that we have a lot of professionals and also businesses in the UAE,” Mr. Gepty said.

“Definitely, an FTA will be a big help for them as far as a stable business environment is concerned, and of course, in the same manner, it’s also important for UAE investors here in the Philippines because, as always, a stable business environment would really encourage more investment in this country,” he added.

Mr. Gepty said that the agreement will cover market access, intellectual property, competition, digital trade, and government procurement.

“And given the importance of the FTA, we hope to finish the negotiations within the year in time for, if I’m not mistaken, the 50^th anniversary of our diplomatic relations with the UAE,” he said.

“So, if we can conclude that within the year, that would be a good milestone in our diplomatic relations, particularly economic relations,” he added.

He said that the negotiations will take place alternately in the UAE and in the Philippines, with the first round in Dubai.

“In the first round of negotiation, basically, it will focus on… the terms of reference. We’ll have to work within those terms of reference (in later sessions),” he said.

“In the first round, we’ll have to work and negotiate on the text of the FTA. We hope to conclude as many chapters as possible,” he added.

Asked if there are any potential stumbling blocks in the talks, he said: “I see a lot of alignment when it comes to the trade and investment policy direction of the Philippines and the UAE, so that’s why I’m confident that I think we can conclude the negotiation within the year.”

He said that the Philippines will negotiate market access for its agricultural and industrial products as well as services.

“We want to secure a preferential arrangement for all our products of interest, from agricultural products to industrial products,” he said. “What is interesting in the case of the UAE is that the Philippines is very strong in exporting aerospace parts to the UAE.”

“We know that the UAE is also strong in the aerospace industry, as they have big airlines, so more than the parts, we are also eyeing services,” he added.

According to Tradeline Philippines, total trade between the Philippines and UAE grew over 5% to $1.9 billion in 2023. — Justine Irish D. Tabile

Sugar farmers proposing safety nets to go with easing of import process

May 1, 2024 | 8:21 pm

grocery-sugar — PHILIPPINE STAR/MIGUEL DE GUZMAN

SUGAR producers are calling for “appropriate safety nets” as the government eases entry requirements for agricultural imports.

In a statement, the Sugar Council — composed of three planter federations — urged the government to pursue programs to raise the competitiveness of the sugar industry and the rest of Philippine agriculture.

“The removal of the (Sugar Regulatory Administration’s) import rules, including its (power to set) fees and charges, would amount to loss of regulatory authority and SRA revenue,” it said.

Administrative Order No. 20 (AO 20) instructed the Department of Agriculture, the Department of Finance, and Department of Trade and Industry to simplify the administrative procedures for agricultural imports, while removing non-tariff barriers.

Under AO 20, the SRA was instructed to streamline and standardize sugar import rules. It was also ordered to admit more traders into the sugar import program.

In a position paper, the council said the current rules of the SRA cannot be considered barriers to be removed.

“The integrity of SRA and its ability to perform its mandate must be preserved,” it said.

It added that AO 20 can open the floodgates to sugar imports “that will kill the domestic industry.”

The Sugar Council had recommended a sugar import program based on the SRA’s analysis of market conditions prior to the start of the milling season. Industry stakeholders must also be consulted.

It added that imports should be subject to a so-called “trigger point” for bringing supply and demand into balance via imports.

The council is composed of the Confederation of Sugar Producers Associations, Inc., the National Federation of Sugarcane Planters, Inc., and the Panay Federation of Sugarcane Farmers, Inc. — Adrian H. Halili

Chipmakers see opportunity in growth of EVs, hybrids as gov’t weighs tariff changes

May 1, 2024 | 8:21 pm

By Justine Irish D. Tabile, Reporter

THE semiconductor industry will be among the industries that expect to benefit from growing electric vehicle (EV) and hybrid electric vehicle (HEV) adoption, the chip industry association said.

Danilo C. Lachica, president of Semiconductor and Electronics Industries in the Philippines Foundation, Inc., told reporters on the sidelines of a briefing on Tuesday that electronics account for 90% of the components of both EVs and HEVs.

“So, yes, it does open up opportunities. But the thing is, until we have the infrastructure for EVs, like more charging stations and fast charging stations, personally, I’d rather go with hybrids first,” Mr. Lachica said.

“Eventually, EV will be the way to go. It’s hard to persuade jeepney drivers or even bus operators to wait 10 hours to charge an EV. We have to make sure that we have abundant fast charging stations for commercial use,” he added.

In March, the Tariff Commission held a public consultation to discuss the possible expansion of the coverage of Executive Order (EO) 12, which imposed zero tariffs on various types of EVs in order to promote green transport and cut carbon emissions.

The National Economic and Development Authority has proposed to add e-motorcycles and HEVs to the EO’s coverage.

The Department of Energy has said that the expanded coverage will help meet the targets of the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), while the Department of Trade and Industry has taken the position that expanded coverage will hinder efforts to rapidly expand the charging station network.

The coverage expansion is supported by the Chamber of Automotive Manufacturers of the Philippines, Inc., which said that the Philippines is recording growth in hybrid adoption, although the CREVI targets remain out of reach.

Trade Secretary Alfredo E. Pascual said a committee will meet on Friday to discuss the proposed expansion.

“We will consider their arguments, of course. But as we explained, the motivation for the lifting of the tariff on EVs is very clear: to increase the car population with electric engines for purposes of encouraging the setting up of charging stations,” Mr. Pascual told reporters on Monday.

“Hybrids do not need charging stations, and to be able to boost EV population, we need charging stations. And charging stations will only be set up if there are enough EVs to patronize them; that is why we are prioritizing EVs first,” he added.

For the meeting on Friday, Mr. Pascual said the committee will discuss whether there is room to broaden the scope of the EO.

“When the decision was reached to (remove) the tariff on EVs, it was very clear in our minds why we did it: to encourage the setting up of charging stations,” he said.

“Now we are going to broaden our scope… but I cannot speculate now because this is committee work,” he added.

Palay production drops 2% in Q1

May 1, 2024 | 8:20 pm

palay-rice farmer — A farmer threshes newly harvested palay grains at a ricefield in Mogpog, Marinduque in central Philippines, March 22, 2016. — REUTERS

PRODUCTION of palay, or unmilled rice, fell 2% year on year to 4.69 million metric tons (MT) in the first quarter, according to the Philippine Statistics Authority (PSA).

The PSA said first quarter output missed its projection of 4.82 million MT, based on the standing crop as of March 1.

It added that the harvest from irrigated areas was 3.6 million MT, while rainfed palay production was 1.09 million MT.

The region with the top palay production was Central Luzon with 775 thousand MT, followed by the Cagayan Valley with 754 thousand MT.

The Central Luzon and Western Visayas palay harvests during the quarter fell 11% and 3%, respectively. Palay production in the Cagayan Valley rose 15%.

The Department of Agriculture’s official view of palay output this year is that it should not fall below 20 million MT. In 2023, palay production was 20.06 million MT.

Corn production was 2.53 million MT in the quarter, up 1% from the same period last year.

Yellow corn production rose 2% to 2.08 million MT.

It added that white corn output slipped 5% to 445 thousand MT for the period. — Adrian H. Halili

Imports necessary to ensure adequate supply during closure of key fishing grounds — DA

May 1, 2024 | 8:18 pm

By Adrian H. Halili, Reporter

THE Department of Agriculture (DA) said fish imports are calibrated to ensure adequate supply when certain fishing grounds are closed to allow fish species to regenerate.

“Preparations are made prior to the start of the closed fishing season, there is transparency immediately as to how big (the import volumes will be),” Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa told BusinessWorld.

Last week, the DA approved the import of 25,000 metric tons (MT) of pelagic fish in anticipation of the three-month closed season in key fisheries.

“Kumbaga, hindi ’yung kung kailan may problema na at saka ka pa lang mag-announce ng imports (We don’t wait until the problem is here before announcing imports),” he added.

Under Memorandum Order No. 17, commercial fishing operations are allocated 80% or 20,000 MT, with the remaining 20% or 5,000 MT going to fisheries associations or cooperatives.

“The only good thing about it now is that it can be programmed right away. Because fisheries will close again by Nov. 1 in North East Palawan, and by Nov. 15 in the Visayas,” Mr. De Mesa said.

The fisheries where closed seasons are declared late in the year include northern Palawan, Ilocos, Negros Occidental, Capiz, and Cebu.

Sardine fishing is not allowed in northern Palawan between Nov. 1 and Jan. 31. Herring and mackerel cannot be caught in the Visayan Sea between Nov. 15 and Feb. 15.

Closed seasons are authorized by Republic Act No. 8550 or the Fisheries Code.

Last year, the department approved fish imports of 35,000 MT for sale in wet markets.

David B. Villaluz, chairman of the Philippine Association of Fish Producers, Inc. said that the DA’s importation plan may end up competing with aquaculture products.

“This is disadvantageous to aquaculture during the latter parts of the year. Duon kami bumabawi, dun magpro-produce ang aquaculture to offset supply during the closed fishing season, (That’s when we make up for the slower parts of the year. That’s when we hope to produce more when closed fishing season brings down supply),” Mr. Villaluz told BusinessWorld by phone.

In 2023, fisheries production dropped 6.5%, accelerating the 5% decline recorded in the prior year, according to the Philippine Statistics Authority.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. has said that fish imports must arrive before Jan. 15.

Philippines lagging other jurisdictions in taxing digital transactions

May 1, 2024 | 8:17 pm

online-ecommerce-shopping-cart — STOCK PHOTO | Image by andrespradagarcia from Pixabay

By John Victor D. Ordoñez, Reporter

A 12% VALUE-ADDED TAX (VAT) on digital transactions is long overdue, with the Philippines lagging many countries in implementing one, a tax professional said.

“We are actually late in the game in taxing foreign digital service providers,” Eleanor L. Roque, tax principal of P&A Grant Thornton, said in a Viber message.

“If the government does not tax digital transactions, it is ignoring a good source of taxes.”

Senate Bill No. 2528, which seeks to require foreign online streaming platforms with subscribers in the Philippines to pay 12% VAT, is set for floor debate at the chamber.

Under the measure, nonresident electronic marketplaces will be required to withhold and remit VAT on transactions that are coursed through their platforms, if the buyer is in the Philippines.

The House of Representatives approved a similar measure in November 2022.

At least 15 countries, including France, Italy, Spain and the UK have laws on digital service taxes, according to PwC.

Calixto V. Chikiamco, Foundation for Economic Freedom president, said digital taxes would “level the playing field” between online businesses and conventional businesses.

The government should earn hefty revenue as many transactions are now occurring in the digital space on nonresident platforms.

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila, said such a measure would make these digital services more expensive for consumers.

“The large online companies will naturally transfer the taxes to the consumers, thus resulting in a greater wedge between buying and selling prices, which in turn raises prices and reduces the amount of online transactions,” he said via Messenger chat.

Last month, the Asian Development Bank said the government should consider expanding taxes for digital services and enhance revenue collection efforts.

The Department of Finance has said it “seeks to level the playing field between local and foreign digital service providers by clarifying that services provided by the latter in the country are subject to VAT.”

It said the measure is expected to bring in P83.3 billion in revenue from 2024 to 2028.

“This measure should obviously increase revenue, but it (Senate) should first figure out how to enforce the measure on nonresident personalities,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said via chat.

Gov’t urged to remove obstacles to extraction of ‘green’ minerals

May 1, 2024 | 8:16 pm

POLICIES hindering the extraction of “green” minerals must be removed to facilitate the transition to renewable energy, an analyst said.

“Though the Philippines is known to have virtually untapped reserves for critical minerals such as copper and nickel, there is an urgency to expand capacity to harness these resources to supply the surging demand driven by the global transition to clean energy technologies,” Victor Andres C. Manhit, president of Stratbase ADR Institute, said in a Viber message.

The Philippines is under pressure to transition to more renewable sources of power as its sole commercial source of indigenous gas, the Malampaya field, is expected to be effectively depleted by 2027.

“To fully unlock the potential of the mining industry and effectively capitalize on the opportunities at hand, it’s crucial to ensure a stable and conducive policy environment,” Mr. Manhit said.

“This involves addressing regulatory roadblocks, streamlining permitting and regulation procedures for mining projects, enacting progressive and competitive mining fiscal regimes, harmonizing national and local mining taxation, and fostering an environment that attracts investors, among others,” he added.

The United Nations Conference on Trade and Development (UNCTAD) said that global production levels of critical minerals are insufficient to limit global warming to 1.5°C under the Paris Agreement.

“Global investment in critical energy transition minerals is not keeping pace with escalating demand,” UNCTAD said in a study.

The Philippines seeks to expand its share of renewables in the power generation mix to 35% by 2030 and to 50% by 2040.

Nickel, cobalt, and copper are deemed essential for electric vehicles solar panels, and lithium-ion batteries.

“I am sure the market will adjust when they see the need for more raw materials, i.e., produce more when they see the market needs more,” Jose M. Layug, Jr., president of the Developers of Renewable Energy for Advancement, Inc., said via Viber.

However, Philippine resource extraction should not come at the expense of the environment or communities near mining sites, Green Thumb Coalition convener Jaybee Garganera said.

“We caution both the government and the industry that this push for the transition minerals does not create more ‘sacrifice zones’” — where communities and ecosystems are destroyed for private profit and government revenue in the name of meeting global demand for nickel, Mr. Garganera said in an e-mail. — Beatriz Marie D. Cruz