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Dado Banatao: Founding Father of PC Hardware

PHILIPPINE POSTAL CORPORATION

(2nd of two parts)

The Science and Technology Advisory Council (STAC) Silicon Valley-San Francisco Chapter was formally organized months after the third run of the Department of Foreign Affairs (DFA) Dialogue on Science and Technology Projects. It was held at the University of San Francisco (USF) in April 1990 after similar events in the East Coast.

Diosdado “Dado” Banatao was initially hesitant in leading it, understandably because of his experience as a basic education student in Iguig, Cagayan (from barrio grade school to the Jesuit-led critical thinking city high school years) grappling with the political governance structure for lifting Filipinos from poverty.

Moreover, he had just been introduced at the USF April event to the long-term interest of the new government’s top leadership in STEM (science, technology, engineering, and mathematics).

A few months after the USF Dialogue, Dado eventually visited the DFA office in Manila “on a business trip.” He was thoroughly briefed by the DFA’s new office responsible for increasing diaspora assistance for economic recovery, partly through United Nations Development Programme funding of expatriate STEM experts. Discussions were arranged with representatives of Cabinet-level secretaries, including the Department of Science and Technology (DoST), other officials active in a Coordinating Council for S&T across economic sectors and government agencies, plus private sector representatives.

Dado must have been convinced about the serious interest of those leaders, including some in Philippine diplomatic posts, in pursuing his own path. On Nov. 16, 1991, a year after the Manila visit, Philippine Ambassador to the US Emmanuel Pelaez supported a STAC awareness and fund-raising dinner at the Atherton residence of the Banataos in California.

The August 1990 conversations were designed by the DFA with Dado’s guidance — that those discussions be with “less the politicians, and more of the academics, industrialists, and community leaders” seriously interested in the new direction of the economy. That, too, was Dado’s premise for his support to STAC’s role in rebuilding the country that matched his own sequential pathway: education, innovation, technopreneurship, and economic transformation.

PATHWAY TO NATION-BUILDING
During the same visit, Dado discussed potential business for his microelectronics firms established in the 1980s. That sealed his systemic, long-term view and interest in the initial two steps combined in this pathway — education before innovation.

These were executed through scholarships for Filipinos in the US and the Philippines, assistance in setting up of the Engineering Research and Development for Technology (ERDT) of the DoST in 2007 (to increase STEM grads with PhD and MS), training programs of Deans of Philippine engineering schools thereafter for practical applications (2011-15), and incubators in schools (including the AIM Banatao Incubator launched 2017).

These sparked more successful breakthrough startups in the country by the second decade of the new millennium — with lessons from his own 1980s experiences. These also spurred some Philippine business leaders to invest in his firms, building on the late 1980s successes of Chips and Technologies design of simpler chipset vs. complex IBM motherboards, and S3 Graphics accelerators.

These formed the last two steps of Dado’s pathway: “technopreneurship” and nation-building mission through economic transformation for poverty eradication.

The movers and shakers of the Philippine private sector took an active interest in his paradigm. A project of the US foundation of the Ayala group led to the Philippine Development Foundation (PhilDev) with Dado and Maria its helm as co-founders. PhilDev incorporated business and social concerns on disruptive technologies through STEM scholarships, training in technopreneurship, university innovation centers, startup support, and women in tech programs.

But Dado was always the first one to tell his mentees that tech success is built on failing early.

FAILURE AND LESSONS IN 1ST STARTUP
While designing a simpler calculator for schools and business with the first single-chip 16‑bit microprocessor, Dado developed a deep understanding of system bottlenecks and insight into IBM’s architectural constraints. He thrived in a network of engineers and future co-founders of his own enterprises, sensing where the PC market was heading.

His first startup, Mostron (1984/85), failed because of its focus on creating capital-intensive and highly competitive motherboards for IBM (money and ideas constraints). He discovered hardware manufacturing was a low-margin, high-risk venture. Moving to higher-value semiconductor design, he shifted from building complete boards to designing the chipsets that powered them.

Mostron provided him with a strategic lesson: before founding a company, master the system you want to disrupt, not just invent a product — and build the network that will help you do it. His earlier plans were realized by gathering around him the right people for both ideas and funds.

Mostron’s failure revealed the real opportunity of his long-term path towards the chipset market where he made history. He failed early, but in a way that revealed the real opportunity was toward the chipset market — where he would make history. Internet connectivity has been converted from a luxury to a standard for businesses and homes.

GLOBAL IMPACT OF DADO’S INVENTIONS
At Chips and Technologies, Dado invented the first system logic chipset compatible with IBM PC/XT (PC with extension hard drive) and PC/AT (PC with advanced processor, and high-density floppy drives). In this way, he enabled clones to be built faster and cheaper, thus helping break IBM’s monopoly in the PC market.

At S3 Graphics, he pioneered the first Graphical User Interface (GUI) that revolutionized PC performance and dominated the graphics acceleration market, by anticipating the shift toward multimedia/visual computing. This eventually led to his consumerization of the declassified Global Positioning System, with chipsets used in every car phone and car navigation system, and eventually paving the way for Google Maps and ride-sharing apps that are used around the world today.

Dado’s three breakthrough inventions became foundational technologies that reshaped multiple industries as they enabled cheaper computing, mass-market PCs, and the rise of modern graphics-driven applications. They were:

1.) The world’s first single-chip 16-bit microprocessor-based calculator which reshaped electronics manufacturing, semiconductors, education, and business;

2.) the first single-chip PC chipset which reshaped personal computing, enterprise IT, manufacturing and supply chains, telecommunications and networking; and,

3.) the early graphics accelerator chips for the computing industry applications which reshaped software and operating systems; gaming industry; design, engineering, and architecture; and digital media and creative industries.

These are some reasons why billions of people continue to be affected by Dado Banatao today, including Bill Gates.

 

Dr. Federico “Poch” M. Macaranas, Ph.D. founded and led the Department of Foreign Affairs’ Science and Technology Advisory Council from 1988-1997. He was the chair of the Education Committee of the Management Association of the Philippines from 2023 to 2025. He is a board member of Bayan Innovation Group, Inc.

map@map.org.ph

fmmacaranas@gmail.com

GCash eyes sustained growth as payments, lending expand

PHILSTAR FILE PHOTO

GLOBE FINTECH Innovations, Inc. (Mynt), operator of GCash, eyes sustained growth as it works to expand access to financial services via its digital payments and lending products.

“Our growth momentum continues as digital finance becomes more embedded in daily life… We are doubling down on expanding financial access to the masses through everyday payments, fair lending, and inclusive wealth and insurance products,” Mynt President and Chief Executive Officer Martha M. Sazon said in a statement on Monday.

Mynt is a partnership between Globe Telecom, Inc., Ayala Corp., and digital payment, digitization, and financial technology provider Ant International.

The company said its core payments and lending businesses allowed it to deliver strong growth last year.

In 2025, Mynt’s attributable equity earnings to Globe reached P6.1 billion, marking a 64% increase and contributing around 22% of the Globe’s pre-tax income.

Globe said Mynt was a significant contributor to its earnings, describing the e-wallet giant as a cornerstone of its digital ecosystem.

Last year, G-Xchange, Inc., the operator of the GCash mobile wallet, expanded financial access through strategic partnerships, including those with the government that enabled online and QR-based payments across Metro Manila’s rail and bus systems.

The company also expanded its reach into underserved communities, GCash said, adding that 90% of its users come from lower socioeconomic segments, with 78% residing outside Metro Manila.

GCash also continues to strengthen its lending and wealth portfolio, the company said, citing its credit arm Fuse Financing, Inc.’s recent partnership with the Asian Development Bank for a P1.75-billion loan to boost micro, small, and medium enterprises’ credit access.

In 2025, Fuse Financing disbursed P362 billion worth of loans, up 65% year on year as the number of its unique borrowers reached 10.5 million, it said.

Juan Carlo C. Puno, Globe’s chief financial officer and treasurer, said Mynt will remain focused on growing its business amid the evolving macro and regulatory conditions before the anticipated initial public offering (IPO) of GCash.

“Mynt and its shareholders remain open to the various capital solutions including an IPO. There is no official decision that has been made regarding the timing,” he said in an online briefing on Monday.

For this year, the Philippine Stock Exchange expects four IPOs and to raise around P170 billion to P175 billion in capital. — Ashley Erika O. Jose

Bad Bunny turns Super Bowl halftime into Puerto Rican love letter with a Lady Gaga surprise

BAD BUNNY transformed the Levi’s Stadium in Santa Clara, California into a vibrant homage to Puerto Rico during the Super Bowl halftime show on Feb. 8, delivering a high-energy journey through the island’s culture complete with a surprise appearance by Lady Gaga and a tribute from reggaeton pioneer Daddy Yankee. — REUTERS/CARLOS BARRIA

SANTA CLARA, California — Bad Bunny transformed Levi’s Stadium into a vibrant homage to Puerto Rico during Sunday’s Super Bowl halftime show, delivering a high-energy journey through the island’s culture complete with a surprise appearance by Lady Gaga and a tribute from reggaeton pioneer Daddy Yankee.

The halftime spectacular marked a historic moment for Latin music on America’s biggest stage, following last year’s record-breaking Kendrick Lamar performance that drew more than 130 million viewers, with Bad Bunny using the platform to celebrate his heritage while cementing reggaeton’s place in mainstream American culture.

The choice of Bad Bunny, whose full name is Benito Antonio Martinez Ocasio, to feature in the halftime show drew a rebuke from President Donald J. Trump and other conservatives over the entertainer’s outspoken criticism of US immigration policy.

On Sunday, Mr. Trump said on social media that the Super Bowl halftime show fronted by the singer was “absolutely terrible.”

Clad in a white suit, the 31-year-old superstar opened with “Tití Me Preguntó” while walking through carefully crafted vignettes of Puerto Rican life — farmers in traditional pava hats, domino players, and boxers.

The performance hit its stride at a secondary stage dubbed La Casita (the little house), where he sang “Yo Perreo Sola,” “Safaera,” and “Party” as celebrities including Pedro Pascal, Karol G, Cardi B, and Jessica Alba were spotted dancing in the crowd.

In one of the show’s most theatrical moments, Bad Bunny crashed through the ceiling of La Casita while performing “Voy a Llevarte Pa’ PR,” then moved to a white truck where dancers grooved to a medley honoring reggaeton’s roots — Daddy Yankee’s “Gasolina,” Don Omar’s “Dale Don Dale” and his own hit “EoO.”

“If I’m here at the Super Bowl 60 it is because I’ve never stopped believing in myself,” he declared as violins swelled into “Monaco.”

A staged wedding featuring the iconic La Rana Concho that was shown on the stadium screens set the scene for Lady Gaga’s surprise entrance, with the pop superstar singing a salsa version of “If Tomorrow Never Comes” before dancing with him “BAILE INoLVIDABLE.”

He then transitioned to “NUEVAYol” as a child and his family were shown watching the Grammy Awards ceremony at which he won Album of the Year — the first time the award was given to a Spanish-language album.

Ricky Martin emerged for “LO QUE LE PASÓ A HAWAii” as Bad Bunny hoisted the Puerto Rican flag and performed “El Apagón,” with the stadium erupting in light before he delivered “CAFé CON RON” and yelled, “God bless America!” as he named all the countries on the continent while a parade of flags was held.

“The only thing more powerful than hate is love,” was shown in the stadium, as he told the audience closing with “DtMF,” the title track from his Grammy-winning album Debí Tirar Más Fotos.

The Seattle Seahawks beat the New England Patriots 29-13. — Reuters

Cities are for people

PHILIPPINE STAR/ MICHAEL VARCAS

RECENT social media reports about groups of young people gathering and causing disturbances in Bonifacio Global City should not be viewed only as isolated behavioral problems. They also reveal deeper structural and governance issues in how Philippine cities are planned, regulated, and shared. These groups — often arriving in clusters — have made visible use of BGC’s streets and open areas: skateboarding along walkways, congregating on High Street, and attending vehicle meetups. Videos circulating online show marshals escorting them out and discouraging their continued presence.

Urban concerns should not automatically be sensationalized. They deserve thoughtful examination through the lens of planning, management, and public policy. Cities are not static backdrops; they are living systems shaped by the rules, designs, and values of the communities that build and run them.

PRIVATELY CONTROLLED URBAN ENVIRONMENTS
Across many Philippine cities, a large portion of functional urban space has effectively been delivered by private developers, partly because the government has struggled to comprehensively manage and guide urban growth. As I once wrote in my term paper as a student at the University of the Philippines, “Development is not worthy of the name, unless it is spread evenly like butter on a piece of bread.” Business districts such as BGC, the Makati CBD, Rockwell, and major malls have gradually taken on the role of parks, plazas, and civic centers.

While these developments have undeniably improved urban quality in many areas, they also raise an important question: who truly has the right to occupy and enjoy these spaces?

In a genuine city, the young and old, workers and entrepreneurs, creatives and leaders all participate in the same shared public realm. When access is selectively filtered or tightly curated, economically marginalized groups — especially the youth — are usually the first to push against those limits. If the response is to exclude or disperse them outright, it suggests we are no longer building inclusive cities but controlled enclaves.

YOUNG PEOPLE AND URBAN LIFE
Youth gathering in prominent city spaces is not a new phenomenon. Throughout history, plazas, boulevards, sidewalks, and waterfronts have functioned as social stages where young people form identity, build friendships, and engage in civic life beyond home and school. Public space has always been part of youth culture and social development.

Labeling this entirely as misconduct overlooks the broader urban context. A better question to ask is: what draws young people to places like BGC in the first place?

The attraction is not simply rebellion — it is opportunity and environment. BGC provides what many districts in Metro Manila fail to deliver: continuous sidewalks, proper lighting, landscaped streets, perceived safety, attractive surroundings, and places where one can stay without necessarily spending money. For many young residents across the metropolis, it represents a model of what a city environment could be.

From a planning perspective, disorderly behavior often signals a shortage of suitable public venues. When cities lack sufficient parks, sports areas, cultural centers, and waterfront destinations, people — especially the youth — will appropriate whatever space is available for their social activities, sometimes creating friction with authorities.

Youth presence in public areas should not automatically be interpreted as danger; it is often evidence of urban energy. A more serious warning sign is a city where only affluent citizens feel comfortable staying outdoors.

Leading global cities have addressed this challenge not only through enforcement but through thoughtful design and programming. Copenhagen invested in skate facilities and accessible waterfronts. Singapore developed youth hubs and civic plazas. Barcelona emphasized human-scale neighborhoods. Seoul nurtured evening cultural districts. These examples show that youthful activity can be accommodated through well-planned third places that channel energy productively. When cities provide enough inclusive venues, social pressure on any single district is reduced.

A WAY FORWARD FOR METRO MANILA
Philippine regulations under Presidential Decree 957 count roads as part of the required 30% open space in new developments, with only about 8% typically reserved for genuine parkland or recreational open areas. In contrast, Singapore requires roughly 45% open space exclusive of roads, while Hong Kong’s standards reach about 71%, also excluding roads. This comparison highlights how local development frameworks tend to prioritize saleable land over generous shared environments.

True urban safety does not come from barriers and guards alone. Urban thinker Jane Jacobs emphasized that everyday activity and natural visibility — what she described as “eyes on the street” — are fundamental to security. Active sidewalks, mixed land uses, and engaged ground floors increase accountability and reduce opportunities for wrongdoing. Empty, sealed-off districts often produce the opposite effect.

Exclusivity is often mistaken for protection. In reality, cities become safer when they are lively, visible, and socially integrated.

We can respond to recent incidents either with alarm or with constructive reform. Practical steps include:

Reclaim and democratize public space.

Sidewalks, parks, plazas, waterfronts, and cultural venues must be treated as civic infrastructure, not luxuries.

1. Design for mixed use and continuous activity

A city of single-purpose districts becomes empty and vulnerable after hours.

2. Enable natural surveillance (“eyes on the street”)

Active ground floors, permeable buildings, and lively pedestrian environments are our best defenses.

3. Provide youth-oriented programming

Sports facilities, skate zones, music spaces, cultural events, and night-time economy reduce friction and diffuse tension.

4. Make safety a shared social function

Security must involve communities, not only guards and checkpoints.

What we are seeing in BGC is not merely a policing concern; it is an urban planning lesson. Order, safety, and belonging are outcomes of how we design and govern our cities. Urban environments reflect collective priorities. When we shape them around people — including the next generation — we build places that are more secure, more humane, and more socially cohesive.

 

Architect Felino “Jun” Palafox, Jr. founder – Palafox Associates and Palafox Architecture Group, Inc. He has 53 years of experience in architecture and 51 years in planning. He was educated at Christ the King Seminary, the University of Santo Tomas, the University of the Philippines, and Harvard University. He founded Palafox Associates and Palafox Architecture and has completed more than 2,000 projects in 41 countries. He has received over 200 awards, including the UAP Dubai Awards First Lifetime Achievement Award in 2023.

SEC warns vs JRL Kwarta Trading for alleged illegal investment solicitation

BW FILE PHOTO

THE SECURITIES and Exchange Commission (SEC) has issued an advisory against JRL Kwarta Trading Co., cautioning the public that the entity has been soliciting investments without the required registration or license.

In a Feb. 9 advisory, the corporate regulator said verification through Messenger on the flagged entity’s verified Facebook page showed it offering investments with a P30,000 minimum placement, a one-year lock-in period, and 10% monthly interest.

“In the said messenger communication, JRL KWARTA TRADING CO., has provided the name and bank account number of a certain representative wherein the investment money is to be deposited,” the SEC noted.

The commission said these arrangements fall under the definition of an investment contract, which must be registered and authorized under the Securities Regulation Code (SRC).

Under the SRC, an investment contract exists when money is placed in a common enterprise with the expectation of profits primarily from the efforts of others.

“The public is hereby informed that JRL Kwarta Trading Co., is not authorized to solicit investments from the public, not having secured prior registration and/or license to sell securities or solicit investments as prescribed under Section 8 of the SRC,” the SEC said.

It added that the company’s chief executive officer (CEO) also holds no certificate of registration as an associated person, compliance officer, salesman, or certified investment solicitor for relevant securities entities.

The regulator advised the public to avoid or stop investing in the scheme, warning that those acting as promoters, recruiters, or agents may face criminal liability under the Financial Products and Services Consumer Protection Act and the SRC, with penalties of up to P5 million or 21 years’ imprisonment, or both.

In May last year, operatives from the Philippine National Police Anti-Cybercrime Group and the SEC arrested five JRL Kwarta Trading Co. employees during an entrapment operation at their office in Pangasinan.

“In a 26 Aug. 2025 decision of the Pangasinan Regional Trial Court, Branch 56 upon submission of a Plea of Guilty, rendered judgment against the arrested employees of JRL Kwarta Trading Co., guilty for violation of the provisions of the SRC,” the advisory read.

In January this year, its chief executive officer was arrested under a warrant issued by Regional Trial Court Branch 77, First Judicial Region, San Carlos City, Pangasinan, for syndicated estafa and related charges under the Revised Penal Code, the Cybercrime Prevention Act, and the Financial Products and Services Consumer Protection Act.

“For those who have been victimized by the investment scheme being offered by JRL Kwarta Trading Co., and its CEO, you may file your formal complaint before the Commission’s Enforcement and Investors Protection Department (EIPD),” the commission noted.

JRL Kwarta Trading Co. did not immediately reply to a Facebook message seeking comment. — Alexandria Grace C. Magno

A board’s expectations on AI strategy and governance

STOCK PHOTO | Image by DC Studio from Freepik

By Erika Fille T. Legara

AS ARTIFICIAL INTELLIGENCE (AI) becomes increasingly embedded in everyday business tools, boards of directors face a subtle but critical governance challenge. AI is no longer confined to bespoke systems or advanced analytics platforms. Today, even commonly used applications, such as productivity software, enterprise systems, and customer platforms, come with AI-enabled capabilities by default.

This reality requires boards to recalibrate their perspective. AI should no longer be viewed solely as a stand-alone technology initiative, but as a capability layer increasingly woven into core business processes and decision-making. Consequently, AI governance is no longer about overseeing a few “AI  projects,” but about ensuring that AI-enabled decisions across the organization remain aligned with strategy, risk appetite, and ethical standards.

As with financial stewardship, effective AI oversight demands clarity, accountability, and proportionality. Boards must therefore shape their expectations
of management accordingly. A well-governed organization treats AI as both a strategic enabler and a governance concern. Management’s role then is twofold; that is, to leverage AI in pursuit of enterprise objectives, while acting as stewards of the risks that accompany automation, data-driven decisions, and algorithmic scale. Regardless of formal structure or title, those accountable for AI must be both strategist and steward, translating AI capabilities into business value, and governance principles into operational discipline.

Outlined below are key areas where boards should focus their oversight.

1. A clear definition of what constitutes an AI system.  Boards should be clear on what management considers an “AI system” for governance purposes. As AI capabilities are increasingly embedded in standard software, not all AI warrants the same level of oversight.

A practical approach distinguishes between embedded or low-risk AI features and material AI systems.
Embedded or low-risk AI features are typically bundled into commonly used tools and support routine tasks. Examples include AI-assisted spelling or document
summarization in productivity software, automated meeting transcription, e-mail prioritization, or basic chatbots that route customer inquiries without making
binding decisions. In the Philippine context, this might include AI-enabled language translation in customer service platforms or automated data entry in back-office operations. These features generally enhance efficiency and user experience and can often be governed through existing IT, procurement, and data policies.

By contrast, material AI systems influence consequential decisions or outcomes. Examples include AI used in credit approval, pricing, fraud detection, hiring or performance evaluation, customer eligibility, underwriting, claims assessment, or predictive models that materially affect financial forecasts or risk exposure. For Philippine firms, this may also encompass AI systems used in remittance verification, know-your-customer (KYC) processes, or algorithmic lending decisions that affect financial inclusion outcomes. These systems introduce financial, regulatory, ethical, or reputational risk and therefore require stronger controls, clearer accountability, and board-level visibility. This keeps governance focused on what actually matters, without impeding operational efficiency or innovation.

2. AI strategy as a guide for technology, data, and capability investments. Boards should verify that AI initiatives, whether embedded or stand-alone, are explicitly linked to enterprise strategy, both in strategic intent and investment allocation. A clear AI strategy serves as a critical guide for technology and capital allocation decisions, so that investments are coherent rather than opportunistic.

Management should be able to explain how AI ambitions translate into concrete requirements for enterprise data platforms, system architecture, and enabling infrastructure. This includes clarity on data availability and quality, integration across core systems, architectural choices that allow AI systems to be scaled and governed, and decisions around cloud, on-premise, or hybrid environments.

Equally important, boards should look for alignment between AI strategy and capability development. This includes investments in talent, operating models, governance processes, and decision workflows necessary to use AI responsibly and effectively. AI value is realized not through tools alone, but through organizations prepared to absorb, trust, and act on AI-enabled insights.

Without a clear AI strategy, technology investments risk becoming fragmented, duplicative, or misaligned with business priorities. With it, boards gain confidence that data, platforms, and capabilities are being built deliberately to support both innovation and control.

3. Governance structures, accountability, and decision rights. Boards should satisfy themselves that AI-related decisions are clearly governed, escalated, and owned. This includes clear accountability for AI strategy, deployment, and ongoing oversight, regardless of formal titles or organizational design.

In practice, governance gaps often surface through unintended consequences. For example, an AI-enabled pricing or eligibility system may unintentionally disadvantage certain customer groups, triggering reputational or regulatory concerns without any explicit change in board-approved policy. Similarly, AI-supported hiring or performance evaluation tools may introduce bias into people decisions, despite being perceived as objective or neutral.

These outcomes rarely stem from malicious intent. More often, they reflect unclear decision rights, insufficient oversight, or assumptions that embedded AI tools fall outside formal governance.

Not all organizations require a dedicated AI governance council. For larger or more complex enterprises, a cross-functional council may help coordinate strategy, risk,
ethics, and compliance. For smaller organizations, existing structures, such as audit, risk, or technology committees, may be sufficient.

What matters is not the structure itself, but the clarity of decision rights, escalation paths, and accountability. Boards should be able to answer a simple question: When an AI-enabled decision produces unintended consequences, who is accountable, and how the issue reaches the board?

Equally important, boards should articulate the organization’s risk appetite for AI-enabled decisions. This includes defining acceptable levels of automation in critical processes, establishing thresholds for human oversight, and clarifying which types of decisions should remain subject to human judgment regardless of AI capability.

4. Risk management, assurance, and board oversight. In practice, boards need to understand how AI risks are identified, assessed, and managed with the same rigor applied to other model-driven and judgment-intensive systems. This includes governance frameworks covering data quality, assumptions, human oversight, third-party dependencies, bias and fairness, cybersecurity, and regulatory compliance.

A useful reference point for many boards is how Expected Credit Loss (ECL) models are governed. While ECL models are not AI systems, boards are familiar with the discipline applied to their oversight: clear ownership, documented assumptions, model validation, stress testing, management overlays, and regular challenge by audit and risk committees. For boards less familiar with ECL, comparable governance rigor can be seen in how organizations manage cybersecurity frameworks, third-party risk management programs, or business continuity planning — all areas requiring ongoing monitoring, independent
validation, and escalation protocols.

Similarly, material AI systems should be subject to defined approval processes, ongoing monitoring, and independent review. At board level, this means having visibility into how AI models are performing, what assumptions they rely on, how exceptions are handled, and how outcomes are tested against real-world results.

Internal audit, risk management, and compliance functions should be equipped to review AI controls and escalate concerns appropriately. As with ECL, complexity
should not reduce scrutiny; rather, it should increase the level of governance and assurance applied.

The path forward requires boards to balance innovation with appropriate oversight, by asking informed questions, establishing clear expectations, and ensuring management has the accountability frameworks needed to govern AI responsibly.

As AI becomes a pervasive feature of modern organizations, governance maturity, not technological sophistication, will distinguish responsible adopters from risky ones. Management may deploy AI capabilities and committees may oversee specific risks, but ultimate accountability remains with the board of directors. In an environment where AI is increasingly everywhere, informed and proportionate oversight is no longer optional. It is a core duty of good governance.

 

Erika Fille T. Legara is a scientist, educator, and data science and AI practitioner working across government, academia, and industry. She is the inaugural managing director and chief AI and data officer of the Philippine Center for AI Research, and an associate professor and Aboitiz chair in Data Science at the Asian Institute of Management, where she founded and led the country’s first MSc in Data Science program from 2017 to 2024. She serves on corporate boards, is a fellow of the Institute of Corporate Directors, an IAPP Certified AI Governance Professional, and a co-founder of a technology company.

Nonbanks’ domestic claims rise

NONBANK FINANCIAL FIRMS’ domestic claims rose as of the third quarter of 2025 amid higher claims from depository firms, the central government, and other sectors, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Based on the BSP’s Other Financial Corporations Survey (OFCS), domestic claims of nonbanks reached P11.024 trillion at end-September, up 11.62% from P9.876 trillion a year prior. Quarter on quarter, this was up by 2.59% from P10.746 trillion at end-June.

“The year‑on‑year increase in total claims was driven by higher claims on depository corporations, the central government, and other resident sectors,” the BSP said in a statement.

The OFCS is an analytical survey that covers data on non-money market investment funds, other financial intermediaries, financial auxiliaries, captive financial institutions and money lenders, insurance corporations, and pension funds.

Claims on other sectors made up most of nonbanks’ domestic claims in the nine months to September, followed by claims on depository corporations and the central government, according to the data.

Nonbanks’ claims on depository corporations rose by 18.63% year on year to P3.071 trillion at end-September from P2.589 trillion. This also grew by 2.24% from the P3.004 trillion logged at end-June.

OFCs’ net claims on the central government stood at P2.949 trillion during the period, climbing by 16.71% year on year from P2.527 trillion. Quarter on quarter, it went up by 5.04% from P2.808 trillion.

Meanwhile, claims on other sectors grew by 5.11% to P5.003 trillion as of end-September from P4.76 trillion a year earlier and by 1.4% from P4.934 trillion the previous quarter.

​​Other sectors include the state and local government, public nonfinancial corporations, and the private sector.

BSP data also showed that nonbanks’ net foreign assets surged by 61.07% to P782.009 billion in the nine-month period from P485.502 billion in the previous year and by 14.1% from P685.376 billion as of June.

Net foreign assets, which account for claims on nonresidents minus liabilities to nonresidents, are nonbanks’ net position in its transactions with nonresidents.

Broken down, claims on nonresidents jumped by 48.5% year on year to P944.384 billion from P635.945 billion, while liabilities to nonresidents climbed by 7.93% to P150.443 billion.

On the other hand, the sector’s other liabilities amounted to P11.806 trillion at end-September, rising by an annual 13.94% from P10.362 trillion. Quarter on quarter, it went up by 3.28% from P11.431 trillion.

“In terms of liabilities, the growth was due primarily to larger equity issuances and higher insurance technical reserves,” the central bank said. — Katherine K. Chan

Margot Robbie delves into the rollercoaster romance of Wuthering Heights

LOS ANGELES — Actor Margot Robbie says her romance film Wuthering Heights sinks into a love dark enough to wound, describing her Cathy and Jacob Elordi’s Heathcliff as doomed lovers whose dynamic makes the brooding new adaptation both “sadomasochistic and desperately sweet.”

“I think they’re just a couple who are destined to be doomed,” the Barbie actor told Reuters in an interview.

Warner Bros Pictures will roll out British director Emerald Fennell’s film globally in theaters on Feb. 11 to coincide with Valentine’s Day week. (It opens in the Philippines on Feb. 11, with an MTRCB rating of R-13.) The film revisits one of literature’s most enduring and reinterpreted love stories.

Since Emily Brontë published the book Wuthering Heights in 1847, its convoluted tale of Cathy and Heathcliff — bound by childhood devotion yet divided by class, privilege, and their own self‑sabotaging impulses — has inspired generations of filmmakers, playwrights, musicians, and directors.

Ms. Robbie and Mr. Elordi are both Australians.

“It is ironic that we’re Queenslanders playing two very iconic, you know, English characters but here we are,” Ms. Robbie said, referring to Australia’s northeastern state.

The story begins with Cathy’s father deciding to adopt Heathcliff into their household when both are children. While the two are infatuated with each other, they are divided by both class and privilege.

Ms. Fennell aims to capture the same sensuousness she has brought to her previous productions, including numerous shots of intimate touch in the film.

“We had a wonderful little gremlin present with us all the time,” Mr. Elordi said in an interview.

“It was Emerald Fennell in a raincoat in the bushes near where we’d be doing a scene and she’d be like, ‘Now stroke her hair, now pull her leg up, yes, yes, yes, yes, now, kiss her on the neck if you’re comfortable with that.’”

Ms. Fennell, the director of Saltburn, also starring Mr. Elordi, said in an interview that she sought to depict the nuances of Cathy and Heathcliff, including their imperfections as people and how they often sabotage each other.

“All of the people that I love have things about them that are terrible and I have things about me that are terrible. And I think that’s all part of what makes love so extraordinary is that we forgive and we accept,” Ms. Fennell said. — Reuters

Alveo to launch first residential village in Negros Occidental

AYALA LAND, INC.

ALVEO LAND CORP., the upscale residential arm of Ayala Land, Inc. (ALI), is expanding its presence in the Visayas with its first residential village in Negros Occidental.

The development will be located within Northpoint, ALI’s 215-hectare mixed-use estate in Talisay City, the property developer said in a statement on Monday.

“This milestone signals Alveo’s confidence in the province’s long-term potential and its commitment to delivering communities that endure,” it said.

The property will be designed with a mix of lifestyle-led amenities while balancing residents’ privacy. Alveo Land has yet to provide further details on its upcoming Northpoint village project.

The upcoming village will “reflect Alveo’s hallmark principles of sustainability, design excellence, and community-centric living — carefully attuned to the natural landscape, pace and character of Negros,” it added.

The estate is also home to The Enclaves at Northpoint, a 33-hectare development by ALI’s flagship luxury brand, Ayala Land Premier (ALP).

The company’s expansion in Northpoint aligns with its push to support the province’s economic growth and enhance everyday living, ALI said.

“This deep familiarity with the province’s character and potential has laid a strong foundation for thoughtfully planned communities that are both sustainable and responsive to local context,” the company added.

The Negros Island Region posted 5.9% gross domestic product growth in 2024, with Negros Occidental’s economy expanding by 5.1%.

Alveo Land’s portfolio includes 70 residential and mixed-use communities across 13 locations. Its properties include high-rise condominiums, residential lots, and township developments in Nuvali, Laguna; Quezon City; Bonifacio Global City; Makati City; and Alabang, Muntinlupa City.

ALI’s premium residential segment, which includes Alveo and ALP, recorded a 5% increase in its nine-month revenues in 2025 to P36.7 billion, according to the company’s latest quarterly report.

At the local bourse on Monday, ALI shares declined by 0.23% or five centavos to close at P21.25 each. — Beatriz Marie D. Cruz

SEC upholds fine vs NOW Corp. over disclosure issue

NOW-CORP.COM

THE SECURITIES and Exchange Commission (SEC) En Banc has denied the appeal of NOW Corp., upholding an earlier P1-million fine for a securities law violation related to market disclosure.

In a regulatory filing on Monday, NOW Corp. said the SEC En Banc had issued a resolution denying its petition to reverse the regulator’s order over its disclosure, which the commission found to be misleading in relation to the alleged liability of the company’s affiliate to the government.

NOW Corp. said it intends to appeal the SEC En Banc’s decision before the Court of Appeals, adding that it is contesting the commission’s ruling.

“The foregoing incident has no impact on the financial condition and business operations of the Company since the Company intends to further appeal the decision to the appropriate appellate court,” the company said.

The issue stemmed from NOW Corp.’s regulatory filing in 2021 following a report that the government, through the National Telecommunications Commission (NTC), was seeking resolution of NOW Telecom Co., Inc.’s alleged P2.6-billion unpaid fees.

“The Securities and Exchange Commission En Banc has denied the appeal of NOW Corp. and its chairman, Mel V. Velarde, and affirmed P1-million fines each for violating securities law over a market disclosure the regulator found misleading,” the SEC said.

The company had earlier told the stock exchange that it was not a party to the Supreme Court case and had invoked the sub judice rule. NOW Corp. said it had “no knowledge of the specific details surrounding the alleged motion.”

The commission rejected NOW Corp.’s defense, saying the company’s disclosure was untenable and misleading.

“The Commission ruled that the appeal was ‘bereft of merit,’ upholding two earlier orders of its Enforcement and Investor Protection Department (EIPD) and ordering NOW Corp. and Velarde to pay the penalties,” the SEC said in a statement.

The SEC also directed the EIPD to investigate any possible liability of NOW Corp.’s other board directors to determine whether they may be held accountable in their personal capacities.

The commission noted that although the statement might have been narrowly true, it was “nonetheless delusive and calculated to be misunderstood.”

“Certainly, the public was not concerned with the procedural filing of the NTC Motion; but was concerned with the alleged P 2.6-billion liability,” it said. — Ashley Erika O. Jose

LGU consolidation and declining unemployment

Last Friday, Feb. 6, the 4th Ruperto P. Alonzo UP School of Economics – Program in Development Economics annual memorial lecture was held at the UP School of Economics (UPSE) in Diliman, Quezon City. The main speaker was Department of Budget and Management (DBM) Acting Secretary Rolando Toledo and the two discussants were UPSE Prof. Cielo Magno and Congressional Policy and Budget Research Department (CPRBD) head Romulo Emmanuel “Jun” Miral, Jr.

Mr. Toledo discussed the various reforms that the DBM has started and is continuing so that there will be more transparency and accountability in budget planning to disbursement, including the use of blockchain to control corruption and help achieve fiscal consolidation.

Ms. Magno mentioned the big increase in unprogrammed appropriations under the current administration that even bumped off counterpart funding for foreign assisted projects.

Mr. Miral discussed the Philippines’ high number of local government units (LGUs) and their overlapping functions with National Government agencies, leading to legislators raiding national revenues for local projects that contributed to the flood control corruption and related scandals.

I particularly like the two slides he showed, which I integrated into one of the tables accompanying this piece. The Philippines has the greatest number of first-tier LGUs, meaning there are many local politicians (governors, city mayors, vice-governors, vice-mayors, and provincial and city councilors).

Consider the scope of the land they control. Indonesia has 47,700 sq.km. of land per province or independent city, Malaysia has 20,300 sq.km., Vietnam has 9,200 sq.km., Thailand has 6,600 sq.km., meanwhile the Philippines has only 2,500 sq.km. per province or independent city.

Our three industrialized neighbors have reduced and consolidated their LGUs. Japan cut their municipalities from 15,900 to only 1,700. China cut their counties from 2,000 to 1,300 (see Table 1).

Retired faculty member Winnie Monsod spoke during the open forum and castigated UPSE alumni who were in high government positions when the infrastructure corruption was building and blew up. Retired faculty and former Finance Secretary Ben Diokno also spoke, and he explained the budget-bloating role of legislators which is outside the control of the Executive. Both Monsod and Diokno were my teachers at UPSE, as was Ruping Alonzo.

The closing remarks were made by Mel Alonzo, Ruping’s widow (the couple were my wedding godparents). Ninang Mel thanked the UPSE and the Program in Development Economics Alumni Association for continuing the memorial lectures in honor of Ruping, now the fourth year in a row.

A yummy reception was prepared by the Philippine Center for Economic Development for the speakers, UPSE officials and faculty, PDE alumni, and friends. San Miguel Corp. donated a few cases of canned beer. My special thanks to Ferdie Constantino, the former CFO of San Miguel, for endorsing my request for a quick donation as I wrote to him only three days before the lecture.

LABOR DATA
This week the Philippine Statistics Authority released the country’s labor data for December 2025, and we see that unemployment was at 4.4% and the full year unemployment was 4.2%. This is higher than in 2024 but lower than the levels in 2022-2023.

I checked the unemployment numbers of other countries in 2025, and ours was the second highest in the ASEAN-6 but lower than India and China, and lower than many North American and European countries.

While most Asian nations have seen declining or flat unemployment rates from 2022 to 2025, the US and many European countries have had high or rising unemployment over the same period, especially Austria, Poland, Germany, and the UK (see Table 2).

Consistent with the decline in Philippines unemployment, the Philippines Stock Market recently rebounded from a low of 5,600 last November, to 6,400 recently. Some things were put in good order by the administration led by the Executive Secretary, Ralph Recto.

A good observation was also made by Jesus L. Arranza, Chairman Emeritus of the Federation of Philippine Industries (FPI). He said, “President Marcos is doing the right thing by staying focused on the work. His calm, steady demeanor signals that he’s in control and well on top of the situation, and markets respond to that kind of leadership. Calmness begets calmness.

“For the business community, the message is simple: keep building, keep investing, keep doing our part in growing the economy. We condemn those behind the flood control anomalies and want swift accountability. But we also have to stay anchored on the country’s economic goals. You rarely go wrong when you respect duly constituted authority and keep the focus where it belongs — on progress.”

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an internationa fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Peso weakness may persist as slowing exports put pressure on external position

BW FILE PHOTO

FITCH SOLUTIONS unit BMI expects the peso to weaken to the P59.50 level against the dollar by the end of the year due to weaker export growth, further monetary easing from both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve, and faster inflation.

Still, it sees the central bank defending the currency to prevent it from surpassing the P60 level to curb imported inflation, it said in a report dated Feb. 6.

BMI expects the peso to trade sideways at the P59 range in the next three to six months as weak economic prospects have reinforced expectations of further rate cuts from the BSP.

“The recent appreciation stems mainly from broad-based softness in the USD (US dollar), with the dollar index down 1.5% from its peak on Jan. 19. Even with the recent rebound, the peso continues to underperform relative to the 100-day and 200-day moving averages, reflecting persistent depreciation pressure,” it said.

“We think expectations of a 25-basis-point (bp) rate cut by Bangko Sentral ng Pilipinas in February are already priced in. The weak second-half 2025 growth reinforces this narrative, which will bring the Philippines-US policy rate differential back to its narrowest at 50 bps.

We expect the countervailing forces of a weaker dollar and the BSP cutting rates ahead of the US Fed to keep the peso range-bound over the next few months.”

Philippine gross domestic product (GDP) growth slowed to 3% in the fourth quarter of 2025 from 5.3% in the same period a year prior and the revised 3.9% in the third quarter. This brought the full-year average to a five-year low of 4.4%, well below the government’s 5.5%-6.5% goal.

BSP Governor Eli M. Remolona, Jr. earlier said that a rate cut is possible at the Monetary Board’s Feb. 19 meeting, depending on whether the slowdown in economic growth last year was caused by weak demand.

However, the central bank last week reaffirmed that it was nearing the end of its current easing cycle. The Monetary Board has lowered benchmark borrowing costs by 200 bps since August 2024, bringing the policy rate to 4.5%.

BMI said the BSP is likely to follow up the expected 25-bp cut this month with another quarter-point reduction within the year to support growth and as inflation is expected to remain within their 2%-4% annual target.

“We expect the US-Philippines policy rate differential to remain narrow at 75 bps by end-2026, which is tighter compared to historical levels… Our Americas team also forecasts the Fed to cut rates by 50 bps in 2026, as it approaches the end of an easing cycle, which means there will be little relief to the peso on this front,” it said.

An expected pickup in Philippine inflation this year following last year’s low prints could also be a source of weakness for the currency towards the end of the year, it added.

The peso will remain weak as the country’s external position could also come under pressure this year as exports could begin to slow down due to the higher tariffs imposed by the US.

“In 2025, merchandise exports rose by 15.2% y-o-y (year on year), supported by export frontloading and AI (artificial intelligence)-driven tech exports, which also drove a narrowing of the current account deficit from 4.0% in 2024 to an estimated 3.4% in 2025. Even so, the peso depreciated by 1.5% y-o-y in 2025 as corruption concerns weighed on investor confidence,” BMI said.

“Looking ahead to 2026, the tailwind from exports on the peso will fade. While the AI boom should provide support to exports, we expect export frontloading to fade. The 19% ‘reciprocal’ tariff levied on Philippine exports to the US since August 2025 will start feeding through and dampen trade with the US — the Philippines’ largest export market. Against this backdrop, we maintain that export growth will moderate in 2026, which will weigh on the peso.” — Aaron Michael C. Sy

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