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Discovery World adds residential subdivisions to product portfolio

LISTED hotel and resort operator Discovery World Corp. has amended its corporate purpose in a bid to expand its product portfolio.

In a stock exchange disclosure on Wednesday, Discovery World said that it included the development of “residential subdivisions” on the company’s primary purpose under its articles of incorporation to expand its portfolio and boost revenue streams.

Aside from the primary purpose, Discovery World said amendments were also made under its secondary purpose to expand the means by which the company could raise new funds to meet financial requirements.

The secondary purpose also explicitly provides the power of the corporation to apply and own trademarks, and authorize others to use the same.

Discovery World said in a separate disclosure that the Securities and Exchange Commission (SEC) also approved amendments to its articles of incorporation to include Terra Spa as a business name. The spa is located within Discovery Shores Boracay.

The regulator also approved the conversion of 265 million common shares from the company’s unissued capital stock into preferred shares.

Discovery World said the conversation is being undertaken “in consideration of a possible capital raising exercise that will be conducted by the company in the future.”

Meanwhile, Discovery World said in another disclosure that it amended its articles of incorporation to include its secondary purpose of being engaged in the business of dealing in foreign exchange transactions. 

“The corporation wishes to include in its services the exchange of currencies for its hotel guests,” Discovery World said. 

The company said the SEC approved the various amendments on Aug. 23.

Discovery World has several facilities across the country including Discovery Shores Boracay, Club Paradise Palawan, Discovery Suites, Discovery Primea, Manami, and Discovery Samal.

Shares of Discovery World at the local bourse were last traded on Aug. 24 when they finished at P1.29 apiece. — Revin Mikhael D. Ochave

Gov’t fully awards reissued T-bonds

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THE GOVERNMENT made a full award of the reissued 10-year Treasury bonds (T-bonds) it auctioned off on Wednesday at a lower average rate as the Bangko Sentral ng Pilipinas (BSP) is expected to keep borrowing costs steady for the rest of the year.

The Bureau of the Treasury (BTr) raised P30 billion as planned from the reissued 10-year bonds on Wednesday, with total bids for the offer reaching P54.542 billion.

The bonds, which have a remaining life of five years and four months, were awarded at an average rate of 6.22%, with accepted yields ranging from 6.15% to 6.25%.

The average rate of the reissued bonds was 54 basis points (bps) lower than the 6.76% quoted for the papers when they were last offered on July 12, 2022. It was likewise 65.5 bps below the 6.875% coupon for the series.

The average rate was also 3.7 bps lower than the 6.257% quoted for the five-year bond and 3.4 bps below the 6.254% seen for the same bond series at the secondary market before Wednesday’s auction, based on PHP Bloomberg Valuation Service (BVAL) Reference Rates data provided by the Treasury.

“The Auction Committee fully awarded the reissued 10-year Treasury Bonds at today’s auction. With a remaining term of five years and four months, the reissued bonds (FXTN 10-64) fetched an average rate of 6.22%, lower than the original coupon rate of 6.875% set on its original issuance in January 2019 and current secondary market benchmark rates,” the BTr said in a statement on Wednesday.

“The auction attracted P54.5 billion in total tenders, 1.8 times the P30 billion offer. With its decision, the committee raised the full program of P30 billion, bringing the total outstanding volume for the series to P325 billion,” it added.

The bonds were awarded at a lower average rate amid “expectations of steady BSP policy rates in the near-term,” a trader said in an e-mail.

BSP Governor Eli M. Remolona, Jr. last week said the central bank’s stance remains hawkish, with rate cuts unlikely for the rest of the year, as inflation is still elevated.

The Monetary Board kept benchmark interest rates steady for a third straight meeting this month, but said it is prepared to resume tightening if needed amid risks to inflation.

The BSP this month left its overnight reverse repurchase rate unchanged at a near 16-year high of 6.25%. Interest rates on the overnight deposit and lending facilities were maintained at 5.75% and 6.75%, respectively. 

The central bank raised borrowing costs by 425 bps from May 2022 to March 2023 to tame inflation.

The Monetary Board will hold its next policy meeting on Sept. 21.

T-bond rates also tracked the drop in benchmark US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

US Treasury yields retreated after a sharp fall in US job openings increased the likelihood of a US Federal Reserve rate hike pause, Reuters reported.

Benchmark 10-year notes last rose 24/32 in price to yield 4.1178%, down from 4.212% late on Monday.

The Fed raised borrowing costs by 25 bps last month, bringing its target rate to a range between 5.25% and 5.5%.

It has hiked rates by a cumulative 525 bps since it began its tightening cycle in March last year.

The US central bank will hold its next policy review on Sept. 19-20.

Wednesday’s T-bond offering was the last for the month. The BTr raised P110.235 billion from the long tenors, short of the P150-billion program.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy with Reuters

Cybersecurity should be part of schools’ curriculum — Kaspersky

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CYBERSECURITY must be included in the Philippines’ basic education curriculum as a first line of defense, an official of global cybersecurity firm Kaspersky said.

This can also help improve the government’s prioritization and budget for cybersecurity amid increasing threats, Adrian Hia, Asia Pacific managing director at Kaspersky, said in an interview with BusinessWorld on the sidelines of the company’s Asia Pacific Cybersecurity Weekend in Bali, Indonesia last week.

“The better way to get the attention of the Philippines and its government is to start with education at the basic level,” Mr. Hia said. “In high school or lower, just have one module on cybersecurity.”

“To do many big things like SIM registration… whether you like it or not, it will take time,” he added. “Everybody will try, but if you choose to click on a malicious link, what can we do?”

Mr. Hia said basic cybersecurity education can increase government awareness and public understanding about emerging threats.

Kaspersky said the Philippines was the second most attacked country by web threats last year, with 39,387,052 internet-borne cyber threats detected. The country placed fourth in 2021.

The Philippines also saw 2,409,085 brute force attacks (trial and error) among remote workers, 52,914 financial phishing cases among business, 24,737 crypto-phishing cases, 15,732 mobile malware cases, and 50 mobile banking Trojan cases last year, according to data from Kaspersky.

Mr. Hia noted that companies’ spending for cybersecurity has not gone up despite them ramping up their digitization efforts.

“What we analyze as the problem is that bad people are thinking, ‘Why do we need to rob a bank? Just do cybercrime. I get the same amount of money,’” he said. “Nobody is bringing up their cyber defenses, so that’s the easiest way.”

“This is unfortunately something we need to be wary about.”

Less than 25% of mobile devices in the Philippines are protected, Mr. Hia said, citing data from Kaspersky.

Hackers and fraudsters have shifted to attacking mobile phones from personal computers via scams on messaging apps due to the vulnerability of those devices, he said.

“This is where the hackers are really intelligent nowadays, and we can see that shift,” he said.

“Educate to not click on links unless it is from a trusted channel,” Mr. Hia said. “It’s really that resilience to navigate the digital world safely and responsibly.”

Alongside protection software, good cyber hygiene habits at a young age can also help curb threats, he added.

Kaspersky will hold its Kids’ Cyber Resilience project in the country in partnership with the Department of Education on Sept. 15, which will involve public school teachers in Valenzuela City.

“We will be helping educators learn about the basics of cyber hygiene, get familiar with Kaspersky’s free tools and resources for teaching online safety in the classroom, and how to support kids to become cyber resilient,” Mr. Hia said. — Miguel Hanz L. Antivola

Leaving on a jet plane

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The Department of Justice released recently its updated list of requirements for people traveling abroad either for leisure or work. The “new” travel guidelines, which take effect Sept. 3, are obviously causing some ripples. The concern is that these requirements are unnecessary if not illegal “restrictions” on the right to travel.

Moreover, with travelers being made to disclose to immigration officers more information than they normally would, then the new guidelines also raise some concern regarding privacy. Among the requirements being questioned is the need to disclose proof of financial capacity either through an employment or bank deposit certificate, or other proof of income.

These are documents that an ordinary traveler, for tourism, would not normally carry on his person when leaving. In fact, going over the new list of travel requirements, they seem more like the type of information required for a visa application, and not from outbound passengers at immigration counters at the airport.

In my 45 years of travel, I do not recall my parents (when I was a minor) or myself (as an adult and a parent) ever having to prove financial capacity or proof or income at immigration counters during departure. Not even on arrival in destinations abroad, for that matter. It was required for all visa applications, but never at immigration counters either at departure or arrival.

I have traveled mainly for tourism or press work abroad, or to attend conventions and seminars. I have never departed as an immigrant or as an overseas Filipino worker. So, I may feel differently about being asked certain information by immigration officers. To date, I have never had any issue with Immigration at departure or arrival. So far.

Offhand, the new travel guidelines appear to impose unnecessary bureaucratic hurdles on leisure travelers and those going on work-related short trips. Some quarters are likewise concerned that the new requirements just create new “corruption” opportunities for immigration officers or give corrupt officers the reason to ask for bigger bribes from syndicates.

Cagayan de Oro City Representative Rufus Rodriguez, a former Immigration commissioner, said the “more stringent rules will unduly interfere with the Filipinos’ right to travel.” He told media that requiring proof of financial capacity, like a bank statement or proof of income, would also violate a departing passenger’s right to privacy.

The Mindanao lawmaker added that the new requirements would also allow immigration officers “to exercise ‘subjective judgment, whims and discretion’ on departing passengers,” claiming that this is where “extortion, harassment and corruption will arise.” For Senator Risa Hontiveros, “Filipinos traveling out of the country should not be treated as second-class citizens within our own airports.”

In April, CNN Philippines reported that the Bureau of Immigration recorded about 6,000 cases of suspected human trafficking, illegal recruitment, and misrepresentation in January and February. The bureau’s spokesman also claimed that incidents of human trafficking and illegal recruitment occurred in a daily basis.

But as potential cases got flagged at immigration counters at various airports, the Immigration official also said only 0.6% of total departing passengers in January-February were “offloaded” due to suspicion of human trafficking, illegal recruitment, and misrepresentation. Meantime, a few immigration officers are also under investigation for suspicion of corruption.

However, according to Justice Assistant Secretary Mico Clavano, from Jan. 1-May 15, of over 39,000 referrals for secondary inspection at immigration counters, over 25,000 passengers were allowed to leave but about 14,000 were deferred or held back. If these figures are accurate, then it means about 35% of departing passengers were not allowed to leave and not just 0.6%.

I am uncertain as to which figures truly represent the current situation. However, without doubt, many Filipinos are being lured to apply for jobs abroad but end up in illegal activities. Not too long ago, about 200 Filipinos were reportedly recruited to work in Thailand but were later found being part of cybercurrency syndicates in Myanmar.

I believe all efforts to combat human trafficking should be supported. But such efforts, including the new travel guidelines, should be calibrated to be more effective. And they should be communicated clearly to the public. Perhaps this is where the Immigration bureau is falling short. It needs to clearly communicate the “red flags” for travelers.

In fairness to Immigration, it makes some distinction between those frequently traveling vs first-time travelers. Obviously, track record is important. It also makes the distinction between those traveling for leisure and for overseas work. Moving forward, it should clarify these distinctions and guide travelers accordingly.

The basic requirements for leisure travelers remain the same: a passport valid at least six months from date of departure; an appropriate valid visa whenever required; a boarding pass; and a confirmed return or roundtrip ticket when necessary. In the past, the return ticket was not usually presented at immigration counters. A passport and boarding pass and departure card were enough (prior to pre-submission of electronic embarkation card).

For self-funded tourists, the new guidelines now require the presentation of the confirmed return or roundtrip ticket; proof of hotel booking or accommodation; financial capacity or source of income consistent with the declared purpose of travel; proof of employment and other equivalent document. And, of course, embarkation details submitted through the eTravel portal.

And for minors traveling with parents, the parents will also need to present their children’s original Philippine Statistics Authority (PSA)-issued birth certificates or reports of birth; and, if the minor is traveling without the mother, the original copy of PSA-issued marriage certificate of the parents. Other conditions require other additional requirements, including clearances from the Department of Social Welfare and Development.

Given the many categories of travel, travelers are well-advised to check the new guidelines and to secure the necessary requirements ahead of time. This entails effort and resources, obviously, and possibly time off work to secure necessary documents. And given that these may have to be presented at initial or secondary inspection at immigration, then expect delays at the airport.

In a recent trip out, I recall having filled out a departure card online through the eTravel portal. If I recall, since May, Immigration has done away with paper-based departure cards. Although one still needs to go through Immigration counters before departure. The thing is, the eTravel portal already made travel easier. The electronic counters on arrival are also a big help.

With recent developments in air travel, it seems the new Immigration guidelines are out of sync as they make travelers bring along more “documents” instead of less. Worse, the new guidelines require additional trips to other government agencies or banks to secure requirements. All the hassle results in expenses that unnecessarily raise the cost of travel, not to mention time lost.

It is bad enough that airports still suffer from congestion. Good thing the X-rays at entrances have already been removed. And check-in and baggage drop-off processes are being streamlined. But final security check remains a hurdle with ever-changing rules regarding X-rays, shoes and belts, and electronic devices. For the sake of departing passengers, immigration should not be another sore point of travel.

 

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

matort@yahoo.com

New law requires LGUs to do cultural mapping

OLD HOUSE located in Iloilo City —UPLOAD.WIKIMEDIA.ORG

ALL local government units (LGUs) are now required to survey and map out all the culturally important areas in their jurisdictions, according to the newly enacted Cultural Mapping Act.

Republic Act (RA) 11961, or the Cultural Mapping Act, which was enacted last week, mandates LGUs to conduct comprehensive cultural mapping of their areas of jurisdiction for both tangible and intangible, and natural and built heritage. It is an amendment of RA 10066, or the National Cultural Heritage Act of 2009, that places focus on the role of LGUs in promoting and preserving Filipino culture through cultural mapping and heritage education projects.

On Aug. 25, Malacañang released a copy of the new law, which aims to “strengthen the conservation and protection of Philippine cultural heritage through cultural mapping and an enhanced cultural heritage education program.”

“The institutionalization of cultural mapping was sought to make heritage an inclusive tool for local and national development,” said Senate President Pro-Tempore Lorna Regina “Loren” Legarda, who co-authored the measure, in a statement.

“[Cultural mapping] employs a grassroots approach that empowers local communities to identify and assign cultural value to properties that are important to them,” she said.

The Act was passed in the Senate and House of Representatives in May this year, and President Ferdinand R. Marcos, Jr. signed it into law in August.

ASSISTANCE AND COMPLIANCE
Under the Cultural Mapping Act, the National Commission for Culture and the Arts (NCCA) and other cultural agencies must provide technical and financial assistance to LGUs so that they can comply with the cultural mapping mandate.

Already in place are Local Cultural Inventories (LCI), one of the criteria for an LGU to qualify for a Seal of Local Good Governance. After completing this, they must also submit their cultural mapping reports.

According to NCCA Chairperson Victorino Manalo, 980 of the 1,715 LGUs around the country have complied with the submission of LCIs, but only 98 LGUs have submitted cultural mapping reports while 177 are currently in progress.

As of December 2022, the total number of properties registered with the Philippine Registry of Cultural Property (Precup), including those registered by the cultural agencies, was 10,385.

Many heritage advocates welcome the new law.

The act addresses one crucial part of the entire problem — the strategy on registry and proper mapping, Escuela Taller de Filipinas Foundation’s communications and special projects officer Philip Paraan told BusinessWorld. Escuela Taller trains young people in the specialized skills that are needed to restore and conserve heritage structures.

“There are a lot of issues in heritage conservation but at least it’s promising that the government has renewed attention to cultural heritage through this law,” he said via Facebook Messenger.

However, there has yet to be a general audit or impact assessment of the National Cultural Heritage Act of 2009, which could be more helpful than “approaching the issues in a piecemeal fashion,” said Mr. Paraan.

President Marcos Jr. signed RA 11961 into law on Aug. 24. — Brontë H. Lacsamana

The Big Dome gets bigger

Restaurants, shoe stores and a lot more opening in the new Gateway 2 mall

THE BIG Dome just got a little bit bigger with the addition of Gateway Mall 2 in Quezon City.

Gateway Mall 2 is Araneta City’s newest mall, connected to the Araneta Coliseum and Gateway Mall 1 (and its adjoining tower). It boasts of eight levels (three of them for parking) and more than 200,000 sqm. of retail space.

Other features of the mall include a church (which seats around 1,000) on the roof deck, a bowling alley with more than 20 lanes, 18 cinemas, and access to Araneta Coliseum. Of the church, Lorna Fabian, Vice-President for Leasing of the Araneta Group said that its design is inspired by the papal tiara. The church is located beside the Ibis Styles hotel, which has some of its floors adjoining the top of the mall.

The Araneta family developed the 35-hectare property in Cubao, Quezon City in the 1950s. Patriarch J. Amado Araneta’s vision led to the Araneta Coliseum, which once had the distinction of being the largest covered coliseum in the world. Other developments in the property — formerly called Araneta Center and renamed Araneta City a few years back — include Ali Mall, recognized as the country’s first modern shopping mall. The group has other interests in food franchising (holding the local franchises for Pizza Hut, Taco Bell, and Dairy Queen).

The branch of the Araneta family that developed Araneta Center has representation in various fields: Politician Manuel “Mar” Araneta Roxas II is a nephew of Araneta Group chair Jorge Araneta (through his sister Judy), while Asia’s Best Female Chef for 2016 and restaurateur Margarita “Gaita” Araneta Fores is his niece through his late sister, Maria Lourdes “Baby” Fores.

Speaking of Gaita Fores, a whole block at one of the new mall’s floors will be occupied by restaurants of the Fores family. These include Ms. Fores’ own Grace Park, her son Amado’s a mano (which opened this week), and Malou Fores’ Mamou. Other upscale restaurants to open (on another floor) include Wolfgang’s and Tung Lok Seafood. The same floor occupied by Wolfgang’s may also host luxury retail shops soon, according to Ms. Fabian during a briefing and mall tour on Aug. 16.

A slew of athletic shoe stores has already opened on one of the floors, including Anta and Foot Locker (it’s no coincidence that they’re located near one of the access gates to the Araneta Coliseum, host as it is of various basketball games). The mall has space for 400 stores.

During the tour, we saw the 700-sqm. LED ceiling called the Quantum Skyview — which can be leased — flashing images of a cat. Araneta Group chair Mr. Araneta was also spotted during the tour, making a personal inspection of the mall. Another feature is a “lagoon” (actually a rectangular fountain) that could be covered up to become a stage or a runway which is not a surprising ability as the Araneta Group also holds the local franchise of Miss International and the local Bb. Pilipinas pageant (Mr. Araneta’s spouse is Stella Marquez Araneta, the world’s first Miss International).

Other restaurants that have opened in Gateway 2 include New York favorite Shake Shack, right outside the mall at the Coliseum Plaza, where it is accompanied by other restaurants. “The challenge for these restaurants is to offer wine, beer; so people can stay longer, up to 2 o’clock in the morning,” said Ms. Fabian. The plans are for the restaurants in the Coliseum Plaza to be open past mall hours, to accommodate Coliseum audiences.

Touch-ups to Gateway Mall 1 and nearby Farmer’s Market are also in the pipeline. Speaking of Farmer’s Market and Plaza, Ms. Fabian quipped, Magmumukha naman siyang kawawa kaharap ng Gateway Mall 2.” — Joseph L. Garcia

Holcim’s Davao City plant files strike notice amid stalled talks

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LISTED cement manufacturer Holcim Philippines, Inc. said workers in its Davao City plant could go on strike following a deadlock in collective bargaining agreement (CBA) negotiations. 

In a stock exchange disclosure on Wednesday, Holcim Philippines said the associate union in its Davao City plant — Davao Holcim Employees and Workers Union (DAHEWU)-SENTRO — filed a notice of strike on Aug. 25 amid issues on the CBA talks.   

According to the company, the notice signifies DAHEWU-SENTRO’s plan to go on strike but does not necessarily imply that the strike will officially push through as there is still a period for further negotiations, which are ongoing.

“The company is exerting efforts to resolve this issue in coordination with the Labor authorities,” Holcim Philippines said. 

The filing of the notice of strike in its Davao plant has no “material impact” on the company, it added.

Aside from its Davao plant, Holcim Philippines has cement manufacturing facilities in La Union, Bulacan, and Misamis Oriental, as well as aggregates and dry mix business and technical support facilities for building solutions.

In the first half, Holcim Philippines posted a 26.3% increase in its attributable net income to P834.72 million compared with P661.05 million a year ago. 

The company’s gross revenues for the first six months climbed by 6% to P12.9 billion versus P12.17 billion in the same period last year.

Trading of Holcim Philippines shares had been suspended by the Philippine Stock Exchange after its noncompliance with the required public ownership under the regulator’s existing rules and guidelines. — Revin Mikhael D. Ochave

Apple to host fall event on Sept. 12 for new iPhones

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APPLE said on Tuesday it would host its fall event on Sept. 12, setting the stage for what analysts believe will be the unveiling of a new line of iPhones and smartwatches.

The event will be hosted at the Steve Jobs Theater at its headquarters in Cupertino, California, according to invites from the world’s most valuable company.

Wall Street analysts have said Apple will try to entice shoppers with a range of new features for its flagship device, as the launch comes against the backdrop of a slump in smartphone demand globally.

Apple posted a 2.4% decline in iPhone sales for its fiscal third quarter — a rare drop for the product that has for years powered the company’s growth.

The most expensive variant of the new generation iPhone will have a periscope camera that could improve zoom capacity by five times or more, according TF International Securities analyst Ming-Chi Kuo.

The expected watch lineup may feature a new processor based on Apple’s A15 Bionic chip, already used in previous iPhone models, and will boost performance, according to a Bloomberg News report. — Reuters

IC places CAP Pension under receivership

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THE INSURANCE Commission (IC) has placed Comprehensive Annuity Plans and Pension Corp. (CAP Pension) under receivership effective Aug. 23, it said in a notice.

Richie Q. Caranto was appointed as the receiver of CAP Pension, the IC said in a notice posted on its website.

“Based on the evaluation of the company’s liquidity and solvency by Atty. Caranto, CAP Pension is, at this moment, not financially capable to pay in ordinary course of business its liabilities as they become due,” it said.

The regulator has issued a stay order, which means all payments of claims effective Aug. 23 are suspended until further notice.

These include “actions or proceedings, in court or otherwise, including those through the Claims Adjudication Division (CAD) of the Insurance Commission, for the enforcement of all claims, whether for money or otherwise, against CAP Pension,” the IC said.

“All actions to enforce any judgment, attachment, or other provisional remedies against CAP Pension, including judgments of the CAD, shall likewise be suspended,” it added.

The pre-need firm is also prohibited from “selling, encumbering, transferring or disposing in any manner whatsoever any of its properties except in the ordinary course of business and/or upon the favorable recommendation of the appointed Receiver of the company…,” it said.

CAP Pension is likewise not allowed to pay its liabilities as of Aug. 23, except for administrative expenses or those if approved by its appointed receiver and the IC.

“The duration of the Stay Order shall be temporary and may be revoked by the Insurance Commission as soon as CAP Pension is restored to a state wherein it is liquid and has sufficient assets, properties and/or means to satisfy the claims of its policyholders, planholders and creditors; or it goes into liquidation, as the case may be,” the IC said.

CAP Pension is a subsidiary of College Assurance Plans Philippines, Inc. (CAPPI).

The IC first placed CAP Pension under conservatorship in 2010 due to capital impairment and trust fund deficiencies, but this became the subject of cases as CAPPI wanted to include CAP Pension’s properties in its corporate rehabilitation proceedings.

In 2021, the Supreme Court allowed the IC to proceed with CAP Pension’s conservatorship after it ruled that CAP Pension is not liable for the obligations of CAPPI.

Embracing digital transformation

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In an era characterized by the omnipresence of technology, which has transcended its role as a mere tool to become a driving force of unprecedented change, the imperative for organizations to undergo digital transformation has become indisputable. This profound shift, instigated by the convergence of digital technologies, has not only revolutionized industries but also disrupted conventional business models and redefined the contours of competition. This transformation is particularly salient in Southeast Asia, where nations like the Philippines grapple with the multifaceted interplay of opportunities and challenges presented by the digital revolution.

Digital transformation entails more than a superficial overhaul of an organization’s technological infrastructure; it represents a comprehensive metamorphosis that permeates every facet of its operations, culture, and interactions with customers. At its essence, digital transformation empowers organizations to leverage the potential of technology to augment efficiency, agility, and innovation. This crucial imperative resonates across diverse sectors, encompassing fields ranging from manufacturing and finance to healthcare and retail. The fundamental objective is to ensure continued relevance and competitiveness within a swiftly evolving digital landscape.

In Southeast Asia, a region characterized by its diverse economies and cultures, the journey of digital transformation epitomizes a microcosm of the broader global narrative. Governments and enterprises within this region have come to recognize the transformative potency of technology, harnessing it as a driving force to foster growth, optimize services, and unlock novel prospects. The Philippines, an integral player within this dynamic landscape, serves as a compelling testament to the challenges encountered and victories achieved as it navigates through this epochal digital transformation.

NOT A LUXURY, BUT A NECESSITY
In the Philippines, the embrace of digital transformation extends beyond a strategic choice; it has emerged as an indispensable lifeline. The nation’s unique geographical landscape underscores the necessity for innovative solutions that bridge connectivity gaps and deliver essential services to remote areas.

The introduction of digital financial services, including mobile banking and e-wallets, has proven transformative for millions of previously unbanked Filipinos. These innovations have unlocked access to financial resources, transforming economic prospects in regions where traditional banking infrastructure remains constrained by geographical limitations. The adoption of mobile banking and electronic wallets underscores the empowering potential of digital transformation.

By facilitating financial transactions, these tools contribute to the progress towards Sustainable Development Goal 1 (No Poverty) and Sustainable Development Goal 8 (Decent Work and Economic Growth), ensuring that economic opportunities extend beyond urban centers to encompass even the most marginalized corners of the nation.

Moreover, the Philippines’ robust Business Process Outsourcing (BPO) industry, a longstanding linchpin of its economy, stands as a vanguard of the nation’s digital transformation. Utilizing AI-driven chatbots, robotic process automation (RPA), and advanced analytics, the industry enhances the capabilities of its Filipino workforce. This fusion of human expertise and technological innovation is not synonymous with job displacement; instead, it propels the workforce to engage with tasks that demand higher-order skills, such as creativity, empathy, and critical thinking. By recalibrating its service offerings for the digital age, the BPO sector not only solidifies its global position as a provider of value-added services but also embraces the shifting landscape of employment in the digital era.

The healthcare landscape in the Philippines has also undergone a remarkable shift, with digital innovation steering it towards a future characterized by inclusivity and accessibility. The rise of telemedicine platforms, bolstered by artificial intelligence and mobile connectivity, transcends geographical limitations, offering remote consultations and diagnostics in areas previously bereft of adequate medical services. This innovation, aligned with the ethos of Sustainable Development Goal 3 (Good Health and Well-being), epitomizes the commitment to leave no individual behind. Across the Philippines, individuals can now access medical guidance and services, irrespective of their geographical location.

Furthermore, the amalgamation of technology within healthcare augments data-driven decision-making, an essential component of Sustainable Development Goal 9 (Industry, Innovation, and Infrastructure). The digitalization of health records, data analytics, and AI-assisted diagnostics streamlines medical processes while concurrently enhancing the quality of care. By harnessing the capabilities of technology to improve healthcare delivery, the Philippines paves the way for other nations striving to achieve universal health coverage.

Education, a cornerstone of societal development, occupies a pivotal position in the Philippines’ digital transformation journey. The rapid transition to online learning catalyzed by the COVID-19 pandemic accelerated the integration of digital tools and platforms into the education ecosystem. This swift pivot heralded an era of accessible and personalized education. The fusion of education and technology, consonant with Sustainable Development Goal 4 (Quality Education), extends educational opportunities beyond the confines of physical classrooms. As a result, learning remains uninterrupted even in the face of adversity.

E-learning platforms, imbued with artificial intelligence and data analytics, cater to diverse learning styles, enabling students to engage with educational content at their own pace. Adaptive learning algorithms identify areas where students require support, facilitating targeted interventions and personalized learning experiences. Such an approach not only augments educational outcomes but also imparts students with the critical thinking and digital skills essential for navigating a world characterized by rapid evolution.

DELICATE BALANCE BETWEEN GROWTH AND SUSTAINABILITY
As the Philippines embarks upon its journey of digital transformation, it does so cognizant of the imperative to maintain a delicate equilibrium between growth and sustainability. The nation’s commitment to environmental stewardship finds expression in its pursuit of Sustainable Development Goal 7 (Affordable and Clean Energy) and Sustainable Development Goal 13 (Climate Action). The integration of renewable energy sources, such as solar and wind power, within the energy matrix underscores this dedication. Digital technology-enabled smart grids optimize energy distribution, curbing wastage and contributing to a more sustainable and resilient energy ecosystem.

Furthermore, the Philippines’ initiatives to digitize agriculture harmonize with Sustainable Development Goal 2 (Zero Hunger) and Sustainable Development Goal 15 (Life on Land). Precision agriculture, propelled by the Internet of Things (IoT) devices and data analytics, amplifies crop management efficiency, minimizes resource consumption, and advances responsible land use. This paradigm shift not only enhances food security but also mitigates the environmental footprint of agricultural practices, thus fostering a more balanced ecological landscape.

The Philippines’ odyssey of digital transformation serves as a testament to the nation’s ingenuity, resilience, and commitment to sustainable development. By harnessing the potential of technology to reshape industries, enhance social inclusivity, and promote environmental stewardship, the Philippines stands as an exemplar for nations navigating uncharted territories in the digital age.

As the nation charts its course, it exemplifies the essence of the Sustainable Development Goals — global aspirations that transcend geographical, cultural, and socioeconomic boundaries. Through the purpose-driven embrace of digital transformation, synchronized with these objectives, the Philippines articulates a roadmap for sustainable progress that other nations can heed.

In its pursuit of this trajectory, the Philippines showcases the essence of holistic progress — an approach that encompasses people, planet, and prosperity. Amidst this journey, the Philippines does not merely adapt to change; it crafts a narrative that underscores the boundless potential stemming from the synergy between human ingenuity and the capabilities of technology.

 

Ron F. Jabal, DBA, APR, is the chairman and CEO of PAGEONE Group (www.pageonegroup.ph) and founder of Advocacy Partners Asia (www.advocacy.ph).

ron.jabal@pageone.ph

rfjabal@gmail.com

PLDT partners with Cartrack Technologies for IoP platform

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PLDT Inc., through its business-to-business arm PLDT Enterprise, has partnered with Cartrack Technologies Philippines, Inc. to provide the latter with its Internet of Possibilities (IoP) platform to help in fleet management.

The IoP platform of PLDT and Smart Communications, Inc. is a unified management of connectivity and usage of connected Internet of Things (IoT) devices within enterprises.

“With the IoP platform in place, Cartrack can leverage thousands of IoT sims for its asset and vehicle tracking business, increasing the reliability of its customers to efficiently manage their fleets and monitor their vehicles digitally through strong data connectivity,” PLDT said.

According to its website, Cartrack is a global provider of vehicle telematics, which is a combined GPS system, onboard vehicle diagnostics, and black box technologies.

“With the IoT Portal, we are able to manage and monitor hundreds to thousands of our assets in real time, gather data-based insights to optimize fleet operations, and provide real-time security to our assets and vehicles remotely,” Matthew Barry, country manager of Cartrack in the Philippines, said in a media release.

PLDT said this technology will help advance Cartrack’s deployment and troubleshooting of its IoT devices on vehicles while also allowing it to expand its reach.

“The IoP platform plays a vital role in empowering our customers to effectively manage their mobile assets, make informed decisions, and stay at the forefront of the IoT ecosystem. Its Troubleshooting capabilities offer scalability, flexibility, and enhanced decision-making capabilities to Cartrack,” Smart Internet of Things Category Head at PLDT Enterprise Jay Sumulong said.

At the local bourse on Wednesday, shares in the company gained P21 or 1.78% to end at P1,203 apiece.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Google announces enterprise AI tools, new custom AI chip

REUTERS

SAN FRANCISCO — Google unveiled a swath of fresh artificial intelligence (AI) technology and partnerships on Tuesday that were geared toward bringing more of the growing technology to large businesses.

The batch of announcements from its Google Next conference in San Francisco included new customers for its cloud software such as General Motors and Estée Lauder Companies.

The Alphabet subsidiary made public a new version of its custom-built AI chips, unveiled an enterprise-scale tool to watermark and identify images generated with AI — plus tools for security and its office suite.

The flurry of announcements is part of Google’s recent effort to showcase its AI plans, after Microsoft caught the company off guard with an ambitious AI strategy it has been rolling out since last year.

But its big business customers need to be deliberate and move at a different pace, Google Cloud chief Thomas Kurian said in an interview with Reuters.

“We’ve generally told enterprise customers, ‘Go slowly and methodically because it’s important that you treat this as a strategic software development,’” he said. “There’s been this sort of FOMO of, ‘I need to be in generative AI for generative AI’s sake.’”

FOMO refers to fear of missing out, a common refrain in AI in recent months.

To bolster Google’s enterprise cloud service it added 20 AI models to its collection, bringing the total to 100. The AI infrastructure includes deals to bring Google Cloud customers access to Meta Platforms’ AI model LLaMa 2, and to the startup Anthropic’s Claude 2.

Google announced new versions of its own foundation AI infrastructure that improve performance and add features. The new version of its text model called PaLM, for example, increased the amount of text users can input to make it easier to process longer documents such as legal briefs and books.

Google discussed a tool that adds the capability to watermark AI-generated images. Called SynthID, the technology alters a digital image file in a way invisible to human eyes. It is designed to remain intact after an image is altered or tampered with.

Google also rolled out AI updates to its suite of office software and security tools. The company unveiled an AI-powered tool that can port databases from Oracle to an open-source version, a notoriously difficult task.

CUSTOM AI CHIPS
Ahead of the announcement of its full-fledged fifth-generation tensor processing unit (TPU), Google has opened access to a version that is optimized for genAI and large language models.

The new chip, called TPU v5e, is designed to train large models but also efficiently serve content from those models. It is not as powerful as the as yet unlaunched flagship fifth AI generation chip.

Google has stitched together the TPU v5e chips into batches of 256 that it describes as a “supercomputer.” Cloud customers can connect several pods together in order to tackle more complex computing problems. — Reuters