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Brainsparks Founders Circle explores growing Philippine startup ecosystem

Founder-focused incubator Brainsparks, together with event partners Shell Philippines and Pilipinas Shell Foundation, Inc., held “Founders Circle: Startup Secret Sauce,” last June 19 at the Draper House, Makati City.

The event featured a panel discussion that delves into the startup ecosystem in the Philippines and Southeast Asia. The discussion highlights the driving force behind the Philippine startup ecosystem’s growth and the key components to utilize to further develop its potential.

Panelists included representatives from the different players and stakeholders of the regional startup ecosystem, such as e27 Co-Founder and Programs Director Thaddeus Koh, 1Export Co-Founder and CEO Melissa Nava, Kaya Founders Investment Director Toby Floro, and Department of Trade and Industry (DTI)-Innovation and Collaboration Division Chief Karl Pacolor.

According to the panelists, Manila’s startup ecosystem recently doubled its valuation, a clear sign that the Philippine startup ecosystem is rapidly gaining traction. This also places the Philippines as the fastest emerging startup hub in the world. This is supported by the recently published 2024 Global Startup Ecosystem Report, which found that Manila’s startup ecosystem was valued at $6.4 billion, almost double the $3.5-billion valuation the year prior.

“This growth is a testament to the hard work and innovation of our startups through the support of the local startup community, and we are committed to supporting this journey,” Mr. Pacolor said.

Mr. Pacolor also highlighted the support from the government in nurturing the startup ecosystem, citing the Innovative Startup Act (ISA), which mandates the government to support startup companies and businesses in the Philippines.

In addition, Mr. Koh of e27 stated that the Philippines is becoming a prime market for startups, emphasizing its potential and funding opportunities.

“The Philippines is a thriving hub for tech companies. Its strategic location in Southeast Asia, coupled with a highly skilled and affordable workforce, grants access to a massive regional market and acts as a gateway to neighboring economies,” he said.

Mr. Floro shared that being a founder is no easy feat; and from what he witnessed and experienced as an investor, he learned that starting a company based on current trends is not the best way to go.

Ms. Nava further expounded on this point, saying that when starting a business or startup, thinking about major crisis points and making sure that your business is future-proof is very important.

More events from Brainsparks

Brainsparks aims to contribute more to the growth of the Philippine startup landscape by hosting events like the aforementioned that offer valuable insights.

The Brainsparks Founders Circle, particularly, is a set of events that bring together founders, entrepreneurs, and industry leaders from diverse fields, to share their extensive knowledge, insights, and experiences. The event aims to be a venue for participants to network, learn, explore, and discuss the most current trends, challenges, and opportunities in the thriving startup ecosystem.

“Startup Secret Sauce” is this year’s 4th installment of the series. Prior to this, Brainsparks first held “The New Paradigm of Startups,” which delved into the transformative role of artificial intelligence (AI) in lead generation and marketing strategies for startups, last May 8. This was followed by “Eco-Forward Entrepreneurs” last May 22, which highlighted the ways how businesses can seamlessly integrate inclusivity and sustainability into their core practices, and “Future of Sustainable Creativity” last June 5, which explored the dynamic landscape of the design and creative industry in the Philippines.

In addition to Founders Circle, Brainsparks has partnered with various local and international organizations to implement several programs designed to help startups reach their full potential. These include the Shell LiveWIRE Accelerator Program and Ecothon Philippines intensive boot camp.

More recently, e27 and Brainsparks join forces for Echelon Philippines 2024, a pioneering event bringing together the expertise of startup leaders, visionary entrepreneurs, and forward-thinking investors from the Philippines and Southeast Asia to propel the next growth phase. It serves as a platform for jump-starting regional partnerships for funding and investments through showcases and business matchings, sharing insights from thriving and emerging sectors to unveil new opportunities, inspiring entrepreneurship in emerging sectors, and fostering new talent entering existing markets to drive growth.

Echelon Philippines 2024 is happening on Sept. 26-27. To learn more, visit e27.co/echelon/philippines/.

Style (07/15/24)


Rustan’s rewards frequent shoppers

RUSTAN’S is celebrating its Frequent Shoppers Program (FSP) members with an exclusive gathering on Saturday, July 20. Designed to reward and honor patrons who have stood by the premier department store throughout its evolution, this exclusive FSP Day event will unfold across all five Rustan’s stores — Makati, Shangri-La, Alabang, Gateway and Cebu. There will also be surprises at rustans.com. On the day itself, guests will be welcomed with a drink, and 1000 FSP points upon registration, and another 10,000 for updating your member information. Loyal patrons can earn x10 FSP points for every purchase of select brands, available in-store and through Personal Shopper On Call. Plus, enjoy 10% off on all brands at Rustans.com. For the Kid’s Department, enjoy up to 25% off on trusted family brands like Keenz, Tiny Winks, BabyBjorn, and Stokke. Additionally, Rustan’s Home essentials are available up to 25% off, with notable French labels like Haviland, Daum, Bernardaud, and Christofle.

Men’s fashion features up to 20% off including Jack Nicklaus, Hackett, Parker, and Emporio Armani; while the Women’s division offers 10% off on Vendome, plus exclusive gifts with purchases from Anne Klein and Yoya. For fine jewelry, patrons can add to their collection with offers up to 15% off on Rustan’s Silver Vault brands. Furthermore, SSI is offering up to 25% off on globally renowned names, including Kate Spade, Kurt Geiger, Marc Jacobs, and Bally. Meanwhile, beauty lovers can elevate their routines with their favorite skincare, haircare, and make up products. With names like Stila, Anastasia Beverly Hills, Saturday Skin, Grown Alchemist, and Neal’s Yard Remedies, available at up to 25% off. Rustan’s Beauty is offering more pampering treats with Buy One Get One deals and Gifts with Purchase from Malin+Goetz, Clarins, Clarins Skin Spa, Murad, L’Occitane and Perricone. RSVP and register at https://rustanrsvp.rustans.com.ph/. Upon confirmation, you will receive a QR code via email, which may be presented on July 20 at the registration booth for full access.


Eyebrowdery introduces Nano Brows

EYEBROWDERY, a provider of eyebrow enhancement services in Manila, launched Nano Brows, a semi-permanent eyebrow procedure utilizing digital technology.

Nano Brows offers an alternative to traditional microblading techniques. Unlike microblading, which uses a manual blade to deposit pigment, Nano Brows employs an advanced digital machine to create hair-like eyebrow strokes. The service is a non-invasive procedure so no cutting or slicing of the skin is involved, minimizing discomfort and risk of infection. It uses a digital machine to ensure precise placement of pigment for a natural, flawless look. Nano Brows boasts of longer-lasting pigment than traditional microblading methods because the digital machine creates hair-like strokes for a realistic, undetectable enhancement. There is also minimal smudging and blurring over time. This service has no downtime and retouches can be done in just two weeks. Eyebrowdery has branches in SM Megamall, SM Cebu, Ayala Feliz, and Greenhills.


Beauty convention in Alabang

THE CHAMBER of Cosmetics Industry of the Philippines (CCIP) presents Cosmeticon 2024 on July 17 to 18 at Acacia Hotel in Alabang, Muntinlupa City. The two-day immersive conference will have talks on digitalization and sustainability, the twin trends shaping the future of beauty. Other topics involve latest regulatory updates, and market trends from industry leaders, as well as government input from the Food and Drug Administration, the Bureau of Customs, the Department of Trade and Industry, and other agencies. For inquiries, contact 0916-731-8850 or visit bit.ly/3XhlDAe.

Credit Suisse shuts down PHL representative office

CREDIT SUISSE AG’s representative office in the Philippines has ceased operations, the Bangko Sentral ng Pilipinas (BSP) said in a circular, marking the Swiss lender’s exit from the country.

“The Monetary Board (MB), in its Resolution No. 709 dated (June 20), noted the cessation of operations of Credit Suisse AG Representative Office, Philippines,” the BSP said in a circular letter dated July 8 and signed by BSP Deputy Governor Chuchi G. Fonacier.

The MB in 2018 granted Credit Suisse the authority to open a representative office in the Philippines for its wealth management business.

Credit Suisse’s representative office was registered with the Securities and Exchange Commission in February 2018 and began operations in June that year.

The bank in 2011 established its onshore stock brokerage Credit Suisse Securities (Philippines), Inc. The brokerage ceased its trading operations in March this year.

These developments came following the merger between Credit Suisse and UBS AG following the former’s failure.

UBS in May this year completed the merger of the main parent companies of the Swiss bank and Credit Suisse, which it acquired last year after its longtime rival collapsed, putting an end to one of the bastions of the country’s financial sector, Reuters reported.

The merger concluded within the planned timeline and was facilitated by strong support from global regulators, said UBS.

The parent merger is expected to allow the Swiss bank to get started with trickier stages of the integration such as combining IT systems, migrating clients from Credit Suisse and cutting the enlarged bank’s workforce of more than 110,000.

The UBS absorption of Credit Suisse has left Switzerland with a single global bank, one boasting a balance sheet around twice the size of the country’s annual economic output. — LMJCJ with Reuters

NGCP says hopeful for investment recovery decision amid long wait

By Sheldeen Joy Talavera, Reporter

THE National Grid Corp. of the Philippines (NGCP) said it hopes that the Energy Regulatory Commission (ERC) will issue a decision that ensures fair recovery of its investments.

“We have faith that the ERC will come out with the decision soon,” NGCP Spokesperson Cynthia P. Alabanza told reporters on Friday last week.

“(It) has been quite a while, but we are still hoping that (the rate reset) will come out, and whatever comes out will be fair and will encourage investors to (invest in) NGCP,” she said in Filipino.

Ms. Alabanza said that NGCP needs the support of the government and other external stakeholders.

The grid operator is hoping to recover the costs it incurred in building some transmission projects.

Sought for comment, ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said that the commission seemed to have demonstrated “clearly” its commitment to “diligently” complete the NGCP reset.

“There have been several roadblocks along the way that constrained us from meeting our self-imposed deadlines, but with the receipt of all consultant reports two weeks ago, we have dedicated days for Commission deliberation to complete the final determination,” she said in a Viber message.

The rate reset process is usually a “forward-looking” exercise that requires the regulated entity to submit forecasted expenditures and proposed projects over a five-year regulatory period.

The fourth regulatory period covers the years 2016 to 2020, while the fifth regulatory period covers the years 2021 to 2025.

Ms. Dimalanta said that the ERC is targeting to complete the rate reset for the fourth regulatory period by the end of the month.

This year, the NGCP completed transmission projects that will accommodate additional generation capacity to meet the growing demand.

The NGCP recently fully energized the Mariveles-Hermosa-San Jose (MHSJ) 500-kilovolt (kV) transmission line at its full 8,000-megawatt (MW) capacity.

The P20.94-billion MHSJ transmission line will accommodate an additional 2,200 MW of supply from new power plants in Bataan and Zambales to the rest of the Luzon grid.

The grid operator also fully energized the P67.98-billion Cebu-Negros-Panay 230-kV Transmission Backbone in April, thereby strengthening the link among three major islands in the Visayas.

The P51.3-billion Mindanao-Visayas Interconnection achieved full operational status in January, enabling power sharing between Mindanao and Visayas with a capacity of up to 450 MW, expandable by another 450 MW.

“We appreciate NGCP’s aggressive push to complete all these projects, especially with the need of the country for more capacity,” Jose M. Layug, Jr., president of the Developers of Renewable Energy for Advancement, Inc., said in a Viber message.

Mr. Layug has encouraged the NGCP and all government agencies, such as the Department of Energy, ERC, and National Transmission Corp., “to continue to work together and ensure alignment between the generation and transmission plans to avoid past experience.”

Noel M. Baga, convenor of the think tank Center for Energy Research and Policy, said that the Philippines is “making significant progress in the development of its grid system.”

“These developments enhance the country’s ability to share power between regions connected by the grid, reducing the likelihood of blackouts and improving overall system stability. But so much more needs to be done,” he said in a social media message.

Mr. Baga said that the government and the NGCP must increase the number of grid interconnection projects and accelerate their completion.

Vanilla pilot farm planned using Israeli technology

REUTERS

THE Department of Agriculture said that it is planning to set up a vanilla pilot project in partnership with an Israeli agri-technology company.

The project will involve training for interested farmer cooperatives, Undersecretary Jerome V. Oliveros told BusinessWorld.

He identified the Israeli partner as LR Group, which runs a vanilla farm in Papua New Guinea.

“The LR Group has a very ambitious and productive vanilla project in Papua New Guinea,” he said.

“We can bring (the technology) here, and we can probably provide our farmers this technology, subsidize part of it, and then tap the private sector,” he said.

He added that LR Group has managed to shorten the growing time for vanilla to three years from the normal five years.

“We have to (evaluate) the return on investment on that technology also, because, at the end of the day, you have to make a profit… that’s what the farmers need to see,” he said.

Mr. Oliveros added that the department will also provide interested cooperatives with technical support should they seek to join the vanilla project.

“Their best practices there, I think we can adopt,” he said.

He added that vanilla producers here typically grow their crop alongside cacao. — Adrian H. Halili

Raising the quality of education

PHILIPPINE STAR/MICHAEL VARCAS

In the column “PISA and quality education” (BusinessWorld, July 8, 2024, https://tinyurl.com/26cfz8dg), I wrote that high economic growth predicts high performance in education. Specifically, the report of the Organization for Economic Co-operation and Development (OECD) on PISA (Programme for International Student Assessment) points out that “some 62% of the difference in countries’/economies’ mean scores is related to per capita GDP.”

At the same time, says the OECD, “some 31% of differences in student performance are due to differences in countries’ education systems — mainly in how they are organized, financed and use their resources.” So even as economic policy or growth policy does the heavy lifting, the education system, including the Department of Education (DepEd), must contribute a significant share to attain quality education.

The OECD findings give us a distinct frame to re-examine the education system.  My own reflections follow.

1. Dramatic outcomes don’t happen instantly.  Have clear and realistic targets.

That means achieving rapid high growth that translates into higher incomes for the people explains vastly improved education outcomes.

Given education quality’s highly dependent relationship with the country’s economic performance, DepEd by itself cannot catapult education quality so high overnight. But there can be ambitious yet clear and realistic targets to accelerate quality improvements that can substantially outpace economic growth and development.

Improvements in quality outcomes must be a centerpiece of the targeting, monitoring and evaluation of performance. If we look at the historical planning and monitoring parameters of DepEd, they are heavy on physical input targets, such as the number of classrooms built, the number of teachers covered by professional development programs, the number of computer units provided, and so on. Their impact on quality outcomes is assumed to follow automatically, and there are no measurable links between education inputs and target quality outcomes.

Results of large-scale assessments, both national and international, should be an integral component of the planning, monitoring and evaluation standards of DepEd. National targets must be understood and brought down to the operational levels, at the level of regions, divisions and ultimately, the schools.

In terms of timeline, one full cohort corresponding to the rollout of the updated Matatag curriculum, from Grade 1 to Grade 12, will be a good planning horizon for decisive quality improvements, with the current baseline clearly set and fighting targets set and monitored for the key stages of this cohort and succeeding cohorts. The Matatag curriculum is the revised K to 10 curriculum resulting from a review, and introduces changes including decongestion, focus on foundational skills, balanced cognitive demands, clearer articulation of 21st century skills, reduced learning areas, intensified values and peace education, and parity with international standards. Of course, this does not mean that the present older student population will be ignored. There must be a catch-up plan for them as well.

2. Strategic and monitored decentralization is indispensable.

As targets are brought down and monitored at the level of regions, divisions and schools, so too must they be empowered to find solutions. Regional, divisional and school-based approaches and interventions are as important as centralized evidenced-based policies.

The problems and capabilities at the frontlines are highly contextualized, and there is no one-size-fits-all solution.

In this connection, I believe that the DepEd practice of periodically rotating regional directors and division superintendents is better abandoned.  It must give way to assignment movements that are for clear causes. Stability in local leadership will be needed for program continuity and better monitoring, evaluation and cross-comparison of approaches, best practices and outcomes. School-based management will be a decisive component to how successful the quality drive will be.

Greater local reliance will require reviewing the distribution of general appropriations between centrally and locally managed funds, towards making sure that local units are given a commensurate increase in resources. Caution should be taken, however, that redistribution will have administrative consequences such as new challenges in procurement and fiscal management and accountability.

3. Quality outcomes will need quality inputs.

A great transformation in quality outcomes will not be realized without a great transformation in the quality of inputs. While new resources for education will be much needed but which we also know will be highly constrained, much can be done to improve the quality of inputs all around. Internal efficiencies will have to be generated from better planning, targeting, operations, monitoring and evaluation. Two inputs where transformation must be palpable are in the quality of learning resources, particularly textbooks, and teaching, particularly through teacher professional development.

4. Mitigating internal inequalities will unlock rigidities.

The international economic disparity as it relates to PISA results is as much reflected in national socioeconomic disparity as it relates to student performance.

The OECD report derives a composite indicator for economic, social and cultural status (ESCS) from three variables related to family background of the learners — parents’ highest level of education in years, their highest occupational status, and home possessions. Within countries, 25% of students with the lowest values on the ESCS are categorized as socioeconomically disadvantaged students, while 25% of students with the highest values on ESCS are categorized as socioeconomically advantaged students. Generally, the mean score of socioeconomically advantaged students is significantly higher than socioeconomically disadvantaged students in varying degrees across participating countries and economies.

For the Philippines, the disadvantaged students scored an average of 339 in mathematics versus 375 for advantaged students, 324 versus 376 in reading, and 335 versus 386 in science. The internal disparity is also visible in the regional distribution of results, with the National Capital Region (NCR) being the best performer, and Regions IVA and III performing above the national average. There is a region, however, that defied the trend — the Cordillera Autonomous Region, whose performance was close to NCR’s. The internal disparity is likewise manifested in the significantly better performance of private schools over public schools.

Thus, targeted internal redistribution of resources for more support to disadvantaged areas will lift performance and give our disadvantaged learners fairer education opportunities. The interventions will have to address multiple underlying dimensions of inequality, including equity in home and community resources, equity in school resources, equity in instruction and equity in nutrition.

5. Leverage private and other non-DepEd resources for the public good.

The acceleration of quality improvements will require more resources than the economy can afford through government appropriations. There is a high level of goodwill and broad support for education that can be further harnessed through existing partnership programs, such as Brigada Eskwela, the annual community and multi-stakeholder effort to assist schools in their pre-school opening preparations.

But bolder and more innovative initiatives are needed. One untapped big potential is leveraging DepEd’s prime real properties for development projects that directly serve its needs and programs (such as teacher professional development facilities) while allowing commercial purposes to attract private investments. Viable options may be explored under the various arrangements allowed by Republic Act No. 11966 or the Public-Private Partnership Code of the Philippines. While this may invite controversy and opposition from some quarters, the key will be in providing a compelling case for proposed projects.

6. Embrace lessons, continuity and further reforms.

Learning lessons from trailblazing education programs and initiatives both here and abroad should be a feature of the quality transformation. Also, while any new leadership can be expected to introduce reforms with a unique stamp, there is also value in the continuity of programs that are shown to be working.

DepEd is a resilient institution. For all the criticisms leveled against it, it is still the institution that the country relies on for support during natural calamities, public health emergencies and elections.

With open, inclusive and visionary leadership, the great transformation of education quality can be done. We wish incoming Secretary Angara, his team and the DepEd family all the best, for our learners’ and country’s present and future.

 

Nepomuceno Malaluan is a founding trustee of Action for Economic Reforms and a former DepEd undersecretary.

BAIC Philippines opens first dealership

Cutting the ribbon at the inauguration of BAIC Alabang are (from left) Auto Icon Vice-President Cris Bofill; Auto Icon Vice-President for Finance Joyce Ng Co; United Asia Automotive Group, Inc. (UAAGI) Chairman Rommel L. Sytin; Muntinlupa City Mayor Ruffy Biazon; Auto Icon Chairman Dexter Co; UAAGI Vice-Chairman Kenneth L. Sytin; and UAAGI Group Managing Director Froilan Dytianquin. — PHOTO FROM BAIC PHILIPPINES

BAIC PHILIPPINES is now ready to welcome customers with the inauguration of its first dealership. Located in Alabang, the newly opened showroom is said to be “strategically located within the central business district of Filinvest City along Alabang-Zapote Road, Muntinlupa City.”

The ribbon-cutting ceremony for the dealership owned and managed by Automotive Icon, Inc. was held last June 20 — graced by executives from the United Asia Automotive Group, Inc. (UAAGI) led by Chairman Rommel Sytin, and leaders of Auto Icon, Inc. headed by Chairman Dexter Co.

“Filinvest City’s vibrant community will now have the opportunity to experience BAIC firsthand and discover this new contender in one of the fastest-growing car segments in the country. Aside from boldly designed and versatile vehicles, clients are also in for a first-class customer experience that highlights the brand’s innovative approach to automotive excellence,” said UAAGI Group Managing Director Froilan Dytianquin. UAAGI is the official distributor of BAIC in the Philippines.

BAIC Alabang features a 250-sq.m. showroom with a five-car display area, fully equipped service center, and a dedicated team of experts to provide “top-notch” technical support.

Customers can explore BAIC Philippines’ initial vehicle model lineup comprised of the X55 Verve and X7 Grandeza crossovers, as well as body-on-frame SUVs B40 Ragnar (Diesel), B60 Beaumont (Diesel Hybrid), and B80 Wagon. Complementing the BAIC lineup is its 150,000-km/five-year vehicle warranty (whichever comes first) to further enhance BAIC ownership experience.

The inauguration of BAIC Alabang marks the beginning of an “expansive growth strategy” of the brand in the Philippines, with plans to establish eight more dealerships by the end of 2024.

BAIC Alabang is located at Block 42 Filinvest Corporate City, Alabang-Zapote Road in Muntinlupa. It is open from Mondays to Saturdays, 8:30 a.m. to 7 p.m. On Sundays and holidays, BAIC Alabang will also cater to customers from 9 a.m. to 6 p.m.

South Korean beauty buffs can now thank AI for the perfect foundation shade

CUSTOMERS have booked out South Korean cosmetics giant AmorePacific’s new artificial intelligence (AI) beauty lab, where robots custom mix face products and the latest technology recommends the most suitable lipstick colors.

“Everyone has their own specific skin tone, but usually they buy the most common color available over-the-counter,” said Kwon You-jin, a 32-year-old customer at the firm’s bespoke skin cosmetics service.

“Knowing more data about my own skin, and seeing the before-and-after firsthand, is a very good experience,” she said, after receiving an AI-generated report on the condition of her skin.

A robot then mixed a foundation that perfectly matched her skin tone.

More cosmetics firms are embracing AI to boost sales, with global brands such as L’Oréal S.A.  and LVMH-owned Sephora using it to tailor products to customers’ needs.

Global beauty industry sales including cosmetics hit $625.6 billion in 2023, climbing steadily annually since dipping in 2020 during COVID-19 according to Statista Market Insights.

AmorePacific said it uses AI to recommend the best choices for a customer from 205 different skin foundations or 366 different lip product colors. “We used deep learning, machine learning techniques to take the process that experts use to evaluate data from many peoples’ skins into an (automated) service,” said engineer Lee Young-jin, an adviser for AmorePacific’s custom beauty business.

Analysts said using AI instead of human consultants could speed up product development and reduce variables.

“No matter how professional an expert is, individual deviations can be large, and evaluating cosmetics by consulting 30 to 40 experts all the time is difficult,” said Yang Yong Suk, principal researcher at South Korea’s Electronics and Telecommunications Research Institute (ETRI) who co-developed a deep learning model for a cosmetic product’s texture.

“These days, product development time has shortened, and an ever-larger amount of new products are launched faster,” Mr. Yang added. “Combining AI technologies could lower hurdles further.”

The market for using AI in beauty and cosmetics industries is forecast to more than double from $3.27 billion in 2023 to $8.1 billion in 2028 as services such as personalized beauty recommendations, skin analysis and diagnostics, and virtual makeup artists expand, analysis provider Business Research Company said in January. — Reuters

Wassmer appointment to diversify Monetary Board

THE MONETARY BOARD will benefit from private sector representation as this would bring diversity to its current composition, analysts said,

This, after President Ferdinand R. Marcos, Jr. last week appointed banker Walter C. Wassmer to the Bangko Sentral ng Pilipinas’ (BSP) policy-making body.

Mr. Wassmer previously served as a consultant and non-executive director of BDO Unibank, Inc. He also held positions at Far East Bank and Trust Co. and Union Bank of the Philippines, Inc.), among others.

BSP Governor Eli M. Remolona, Jr. said in a statement on Friday that Mr. Wassmer “brings with him decades of banking experience which will prove invaluable to the policy-making body and the decisions of the Monetary Board.”

The seven-member Monetary Board is headed by the BSP chief. Aside from Mr. Wassmer, its other members are Finance Secretary Ralph G. Recto, former BSP Governor and Finance Secretary Benjamin E. Diokno, former Finance Undersecretary Romeo L. Bernardo, and former National Treasurer Rosalia V. de Leon.

“As part of the monetary authority, the standard goals of macroeconomy have to be achieved. Such goals include price stability by managing inflation through effective monetary policy and economic growth that is faster than population growth through monetary tools,” John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said.

Mr. Rivera said Mr. Wassmer’s experience as a banker “may be complementary in achieving these macroeconomic goals.”

Security Bank Corp. Chief Economist Robert Dan J. Roces said that the appointment “underscores the importance of maintaining a balanced board composition that combines academic, policy, and industry expertise while prioritizing national economic interests.” 

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that Mr. Wassmer’s private sector experience makes him an “outstanding choice” for the Monetary Board.

“It would be good if President Marcos would again appoint someone from the financial industry for the remaining open seat in the Monetary Board to provide a better blend of backgrounds and viewpoints,” Mr. Colet said. “A more diverse membership can help enhance the quality of decision making.”

On the other hand, Leonardo A. Lanzona, Jr., an economics professor at the Ateneo de Manila University, said an economist might be a better fit for the Monetary Board than another banker.

“Economists can provide the necessary insights and recommendations to navigate through crises, whereas a Board member with banking or political experience but without such expertise may be slow to react or implement ineffective measures,” Mr. Lanzona said in an e-mail.

“Economists are often at the forefront of developing new monetary policy frameworks and tools. Without them, a Board member might lack the capacity to innovate and adapt to new economic challenges or shifts in the global economy,” he added. — Luisa Maria Jacinta C. Jocson

Philippines’ tax effort increased in 2022

The Philippines’ tax effort expanded to 18.4% in 2022, according to the Revenue Statistics in Asia and the Pacific 2024 by the Organization for Economic Cooperation and Development (OECD). Tax effort refers to total tax revenue, including social security contributions, as a share of an economy’s gross domestic product (GDP). The country’s tax effort remained below the Asia and the Pacific average of 19.3%. The bulk of the Philippines’ tax revenue came from taxes on goods and services (43.8%), followed by taxes on income and profits at 33.3%.

Philippines’ Tax Effort Increased in 2022

Michigan bird flu response sparks COVID-style worries

REUTERS

MARTIN, Michigan — Some dairy farmers are resisting Michigan’s nation-leading efforts to stop the spread of bird flu for fear their incomes will suffer from added costs and hurt rural America.

The government’s restrictions, which include tracking who comes and goes from farms, are rekindling unwanted memories of coronavirus disease 2019 (COVID-19) in Martin and other small towns in central Michigan.

The state has two of the four known cases in humans, all dairy workers, since federal authorities confirmed the world’s first case in US cattle in late March. The state has tested more people than any of the 12 states with confirmed cases in cows, according to a Reuters survey of state health departments.

Testing policies vary by state. Public health experts fear the disease has the potential to turn into another pandemic just a few years after COVID-19.

As those worries mount, the acceptance and success or failure of Michigan’s proactive response is being watched by other states looking for a roadmap that goes beyond federal containment recommendations.

More than a dozen interviews with Michigan producers, state health officials, researchers and industry groups, along with preliminary data, so far show limited dairy farmer participation in efforts to stem and study the virus.

In some cases, calls from local health officials go unanswered, money for dairy farm research is left unclaimed, and workers still milk cows without extra protective gear.

Brian DeMann, a dairy farmer from Martin, Michigan, said the outbreak and state’s response recalls COVID-19. The 37-year-old believes Michigan’s rules to contain bird flu would be more widely accepted if they came as recommendations rather than requirements for farmers.

“Nobody knows if these things that we’re being told to do are going to stop it,” said Mr. DeMann, who echoed an uncertain view shared by other farmers. “Just like 2020, people didn’t like to be told what to do.”

This spring many US dairy owners did not heed federal recommendations to offer more protective equipment to employees, according to farmers and workers.

Mr. DeMann said he did not invest in new protective gear, such as masks, for his workers because it is unclear how the virus is spreading.

About 900 permitted dairy farms dot Michigan’s countryside, with cows in open-air barns and piles of feed covered with protective tarps and old tires used as weights.

Tim Boring, Michigan’s agriculture director, said social stigma and economic concerns around infections have discouraged farmers from testing cows for bird flu in the nation’s sixth biggest milk producer.

“There’s a lot of factors that go into the concerns about farms coming forward with positive operations,” he said. “We know this has been a challenge in Michigan.”

The state last reported an infected dairy herd on July 9, its 26th to test positive. Five other states have also confirmed cases in the past month, and about 140 herds have been infected nationally since March, according to US Department of Agriculture (USDA) data. Michigan is offering farms up to $28,000 to entice those with infected herds to participate in research. More than a dozen farms have so far expressed interest, the state said.

Separately, the federal government is offering financial assistance. Twelve of 21 herds enrolled in financial support from USDA are from Michigan, according to the agency.

To boost testing, the USDA launched a voluntary program in which US farmers can test tanks of milk weekly for bird flu. Six farmers in six states have enrolled one herd each, but a Michigan farmer is not among them yet.

“I really would like to see that in every single herd,” said Zelmar Rodriguez, a Michigan State University dairy veterinarian studying infections.

Michigan’s Agriculture department said it has up to 200 people responding to bird flu cases in poultry and cattle, including coordinating with USDA on outbreak investigations.

Veterinarians in other states said they tracked Michigan’s cases to assess the risks for transmission.

“Michigan is doing a good job with their diagnostics and trying to identify where the disease is,” said Mike Martin, North Carolina’s state veterinarian.

Michigan’s outbreak in cows began after an infected Texas farm shipped cattle to Michigan in March before the virus was detected, according to USDA.

Weeks later, a Michigan poultry farm also reported symptoms and tested positive. Whole genome sequencing suggested the virus spilled over from the dairy farm to the poultry flock.

USDA now thinks the virus has spread indirectly through people and vehicles moving on and off infected farms.

Chickens owned by Michigan’s largest egg producer, Herbruck’s Poultry Ranch, were infected because the virus spread from cattle, said Nancy Barr, executive director of Michigan Allied Poultry Industries, an industry group.

Reuters was first to report the link to Herbruck’s from dairy cow transmission. “It’s a new threat to us,” Ms. Barr said.

Herbruck’s told the state in May it was laying off about 400 workers after bird flu decimated flocks in Ionia County. The company said in a public notice it planned to rehire employees as it rebuilds its flocks, a process that can take six months.

As of late June, Ionia County poultry farmers received $73.2 million in indemnity payments from the US government for bird-flu losses, the most of any county in the country that had to cull infected flocks since February 2022, according to data Reuters obtained from the USDA.

The layoffs struck fear in Ionia, a city of about 13,000 people in central Michigan with a brick-paved Main Street and mural of the Mona Lisa. Business owners said unemployed workers have less money to spend at time when local stores already struggle to compete with Walmart and Meijer.

“I just thought, ‘Oh great, here goes the store,’” said Jennifer Loudenbeck, owner of the Downtown Vintage Resale shop. Alex Hanulcik, who owns a fresh fruit stand, said he knows a Herbruck’s employee who left town to find work in the southern US after being terminated.

“I really feel for the employees,” Mr. Hanulcik said. “They were blindsided.” Herbruck’s declined to comment.

Dairy farmers said they are constantly worrying their cows may be the next to become infected, yet they are unsure exactly how to protect them. Doug Chapin, a dairy farmer in Remus, Michigan, said he held meetings with employees to inform them of the risks of the virus. He is trying to make workers wear protective eye gear, though they objected in the past because glasses must be cleaned if milk sprays on them.

“You’re thinking about it all the time,” he said about the virus.

Michigan has plans to test dairy workers for signs of prior infections with first-in-the-nation blood testing. The state has already monitored thousands of people for bird flu symptoms using a complex contact tracing system that texts them three times daily, said Chad Shaw, health officer for the Ionia County Health Department.

Some farmers remain reluctant to engage with local health authorities, though. The Branch-Hillsdale-St. Joseph Community Health Agency began reaching out to farms generally to offer medical care for seasonal workers because of bird flu cases, said health officer Rebecca Burns. There has been little interest, she said. “These guys aren’t used to us calling them,” Ms. Burns said.

Michigan has detected the third most infected dairy herds of any state, after Idaho and Colorado, and lost 6.5 million chickens in April alone from outbreaks on poultry farms, USDA data show.

The Biden administration in late April began requiring lactating cows to test negative before being shipped over state lines. Michigan went further and in May started requiring farms to keep logs of visitors, disinfect delivery trucks that could carry the virus, and take other safety steps.

The state this month began requiring negative tests for non-lactating cows to be shown at fairs. Colorado reported the nation’s fourth human case on July 3.

The US government awarded $176 million to Moderna to advance development of its bird flu vaccine for humans. Two dozen companies are working on a vaccine for cattle, US Agriculture Secretary Tom Vilsack said, as about 140 herds nationally have tested positive.

“Michigan’s been the forefront on providing information, providing access to information that really is helpful,” Mr. Vilsack told Reuters. — Reuters

PAGCOR says income jumped to P6.56 billion in first half

THE Philippine Amusement and Gaming Corp. (PAGCOR) said its net income doubled in the first half of the year, driven by an increase in gross revenues.

In a statement on Sunday, the state gaming regulator reported that its net income from January to June climbed by 121.48% to P6.56 billion from P2.96 billion a year earlier.

“We were able to remit P31.82 billion to the Treasury in the first six months, compared to P22.62 billion in the same period last year,” PAGCOR chairman and chief executive officer Alejandro H. Tengco said.

PAGCOR said its doubled income growth could be attributed to its gross revenues in the first six months of the year, which increased by 42.92% to P51.76 billion from P36.21 billion in the same period last year.

This puts the state gaming regulator “on track” to surpass the P100-billion annual gross revenue threshold this year, it said.

PAGCOR said that gaming operations accounted for the majority of revenues, totaling P45.39 billion.

Around 45.53% or P20.66 billion came from the online gaming sector, namely, electronic games (e-Games), electronic bingo (e-Bingo), and bingo grantees.

“Given the phenomenal revenue increase in the e-games sector, and with more players and investors signifying their intent to enter the Philippine market, we are confident that the year 2024 will be truly a banner year for PAGCOR,” Mr. Tengco said.

Integrated resorts or licensed casinos accounted for 35.44% or P16.06 billion to PAGCOR’s gaming revenues, it said. PAGCOR-operated casinos under the Casino Filipino brand generated P6.93 billion, contributing 15.27% to gaming revenue.

The Philippine gaming industry’s total gross gaming revenue (GGR) jumped 19.21% to P194.74 billion from P163.36 billion in the first half of 2023.

Licensed casinos were the biggest contributors to GGR in the first semester of the year, generating P99.16 billion.

This was followed by e-Games at P63.01 billion in revenues in the first half of 2024, which doubled (208.42%) from P20.43 billion a year ago.

On the other hand, GGR from PAGCOR-operated casinos declined by 11.6% to P8.89 billion from P10.06 billion in the first half of 2023.

Under PAGCOR’s Charter and other governing laws, 5% of its winnings goes to the Bureau of Internal Revenue as franchise tax, while 50% of the remaining 95% goes to the National Treasury as the government’s mandated income share.

PAGCOR generates revenues from its gaming operations to support the government’s development projects. It also serves as a gaming regulator to help prevent the proliferation of illegal gambling in the country. — Beatriz Marie D. Cruz

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