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Solar irrigation projects to be reviewed

PHILIPPINE INFORMATION AGENCY

THE Department of Agriculture (DA) said on Wednesday that it will review all solar-powered irrigation systems to determine the next steps in expanding solar irrigation for rice production.

In a statement, Agriculture Secretary Francisco P. Tiu Laurel, Jr. had ordered a review following reports that some systems have either been neglected or are non-operational.

Mr. Laurel said regional executive directors will validate whether the solar systems are fully functional and draft recommendations for improving the program.

President Ferdinand R. Marcos, Jr. has announced a solar irrigation program to help achieve rice self-sufficiency and mitigate the impact of El Niño.

The DA has allocated P17 billion for the project and P1.2 billion for the construction and improvement of smaller-scale irrigation facilities.

The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), has said that El Niño is projected to last until the second quarter, bringing dry spells or droughts to 63 provinces.

The DA is projecting that palay or unmilled rice harvest will likely be flat this year at 20 million metric tons.

The National Irrigation Administration has said that it will direct P1.72 billion to construct solar irrigation systems.

The funding will support 183 projects in the pipeline for 2024. They will eventually irrigate 2,168 hectares.

To date, more than 200 solar-powered irrigation systems have been constructed, the DA said. — Adrian H. Halili

ADB assisting PHL tax administration efforts

BW FILE PHOTO

THE Department of Finance (DoF) said that it is working with the Asian Development Bank (ADB) to improve tax administration and ramp up infrastructure investment.

“The ADB will provide support for Finance Secretary Ralph G. Recto’s core enhanced tax collection strategy of using digital technology for a more efficient and aggressive tax administration,” the DoF said in a statement.

Mr. Recto met with ADB officials on Tuesday, where he called for “more unified inter-agency coordination among national and local agencies to harmonize records of registered taxpayers and optimize tax collection efficiency.”

In November, the ADB approved a $400-million loan for the Domestic Resource Mobilization Program Subprogram 1, which is focused on reforms for revenue mobilization.

It aims to address the discrepancies in Philippine tax policy frameworks to improve tax compliance, reduce tax avoidance, and raise additional revenues from activities and products that impact the environment or contribute to climate change.

The DoF said that a second subprogram is slated for 2025.

The bank is also providing technical assistance for the Bureau of Internal Revenue as part of its digitalization program, in preparation of an investment project in 2025.

“The ADB affirmed its commitment to likewise strengthen cooperation with the Philippine government on infrastructure modernization, particularly on public-private partnerships (PPPs),” the DoF said.

The DoF also said that the ADB is working with the government to accelerate infrastructure projects through the Infrastructure Preparation and Innovation Facility, which is a technical assistance loan from the bank to help prepare and implement infrastructure investments under the Transportation and Public Works and Highways departments.

“Both sides also agreed to work on developing pipeline projects and programs, particularly in green infrastructure and clean energy, under the $10 billion climate financing commitment of the ADB for the period 2024 to 2029,” it added.

As of the end of September, the ADB committed $9.67 billion of official development assistance (ODA) to the Philippines, equivalent to 28% of the country’s ODA portfolio.

In 2022, the ADB was the country’s top provider of active ODA, accounting for 33.47% of the total or $10.85 billion. — Luisa Maria Jacinta C. Jocson

EV adoption growing, but analysts warn of limits to PHL market size

REUTERS

THE adoption of electric vehicles (EV) is growing with the launch of more models onto the market, the industry association said, though analysts fear the market will largely consist of high-end buyers.

“The EV industry is continuously growing with a lot of players are launching their different models that would suit to the needs of the consumer, from small cars to Big SUVs, from utilities to trucks and from e-scooters to e-big bikes,” Electric Vehicle Association of the Philippines President Edmund A. Araga said in a Viber message.

Citing the Land Transportation Office, Mr. Araga said EV registrations rose more than 15% in early 2023, with Mr. Araga expecting 2024 registrations to surpass 2023 levels.

According to the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), the Department of Energy (DoE) aims to raise the share of EVs in the Philippines to 10%, or in excess of the 5% required by Republic Act No. 11697, or the Electric Vehicle Industry Development Act.

By 2028, the DoE wants about 2.45 million EVs on the road, including cars, tricycles, motorcycles, and buses, with an installation target of 65,000 EV charging stations.

“While we are slower than other ASEAN countries, we are (focusing on) the implementation of RA 11697… to raise confidence in the industry among potential investors and consumers,” he said.

As of January, Energy Secretary Raphael P.M. Lotilla said there were 194 battery EVs, 19 plug-in hybrid EVs, 30 hybrid EVs, and 32 light EVs registered, while 96 commercial EV charging stations had been deployed as of December last year.

Transport analyst Rene S. Santiago said even if the Philippines were to have a 100% EV fleet, “the global needle would hardly move.”

“The main challenges is high cost of EV… majority of Filipinos cannot afford ICE (internal combustion engine) cars — much less, EV cars,” he said.

“The current mainstream product lineup (consists of) cars, which only the wealthy can afford,” he added.

Terry L. Ridon, a public investment analyst said that despite the “decreasing” prices of EVs, these will still be limited to “the upper end of the market due to its relatively higher prices compared to its (ICE) counterparts.”

“The infrastructure for EVs is also severely limited, as charging stations are limited and household charging is limited to those with actual garages. Condominium dwellers, even those with relatively higher incomes, do not have access to household charging stations,” he said.

The Energy Utilization Management Bureau (EUMB) said that the cost, availability, and access to EV charging need to be addressed.

“These are critical areas that require concerted efforts from both the government and private sectors, as outlined in the CREVI. At the end of the day, we want electric and social mobility for all Filipinos,” the EUMB said in a Viber response to a BusinessWorld query. — Sheldeen Joy Talavera

When the BIR says ‘mine’ to online sellers

Digital services have grown significantly in the past years especially during the pandemic when mobility was restricted. The growth was spurred by the rise of online marketplaces, which have given traditional brick and mortar stores a run for their money. Readers who are patrons of these digital marketplaces would be familiar with the practice of declaring “mine” to signify a buyer’s intent to purchase a product from an online seller.

Late last year, the Bureau of Internal Revenue (BIR) issued Revenue Regulations (RR) No. 16-2023, imposing withholding taxes (WHT) on online sellers. This RR was further clarified by Revenue Memorandum Circular (RMC) No. 8-2024, which was issued last month. This time around, it is BIR’s turn to say “mine” with regard to withholding taxes that the agency aims to collect on the transactions conducted through electronic marketplaces (e-marketplaces) and digital financial services platforms (DFSPs).

WHAT ARE E-MARKETPLACES AND DFSPS?
The RR defined e-marketplace as a digital service platform whose business is to connect online buyers with online sellers; facilitate and conclude the sales; process the payment of the products, goods or services through such digital platform, such as but not limited to the (a) marketplace for online shopping; (b) food delivery platform; (c) platform for booking of resort, hotel, and other similar lodging accommodations; and (d) other similar online marketplaces.

The RR covers all the items above, including the use of other modes of payment such as credit cards, e-wallets of the platforms, and other mobile payment services.

On another hand, a DFSP pertains to the financial technology provided by digital financial services providers which are capable of offering a wide array of services of a financial nature that are made available to the public through the internet, mobile application, or other similar means.

HOW WILL THE WHT APPLY?
Under the RR, remittances of e-marketplace operators and DFSP to online sellers/merchants are subject to 1% WHT. Such a rate applies to one-half of the gross remittances by the former to the latter.

Gross remittance refers to the total amount received by an e-marketplace operator or DFSP from a buyer for the sales paid to the seller through the platform or facility (i.e., e-wallet or other similar modes of payment and money transmission) of the former. Further, it excludes sales returns/discounts, shipping fees, value-added tax (VAT), and any consideration/fee for the use of the e-marketplace and/or digital platform.

However, the WHT obligation does not apply (1) if the annual total gross remittances for the past year has not exceeded P500,000; (2) if the cumulative gross remittances in a taxable year has not exceeded P500,000; or (3) if the seller/merchant is exempt from or subject to a lower tax rate pursuant to any existing law or treaty.

WHAT ARE THE OBLIGATIONS OF SELLERS/MERCHANTS?
First, sellers/merchants must register their business with the BIR and submit a copy of their Certificate of Registration (CoR) to the e-marketplace operator and DFSP prior to the use of the latter’s online facility.

Second, they need to submit a BIR-received Sworn Declaration (SD) to the operator/DFSP declaring that the total gross remittance to be received from the e-marketplace operators or DFSP does not exceed P500,000. Such SD must be submitted to the operators/DFSP upon application as a new seller (or within the 90 days from Jan. 15 in case of existing sellers). Thereafter, the SD must be submitted no later than Jan. 20 annually. However, should the gross remittance exceed P500,000 at any time during the year, the SD must immediately be submitted to e-marketplace operators or DFSPs.

Finally, if the seller/merchant is exempt from tax or subject to a lower rate pursuant to existing law or treaty, it must furnish the DFSP or e-marketplace operator with a certification as proof of the exemption or entitlement to lower rate.

WHAT ARE THE OBLIGATIONS OF E-MARKETPLACE OPERATORS AND DFSPs?
Aside from the obligation to withhold applicable taxes before remitting the payments to sellers, e-marketplace operators and DFSPs must ensure that all sellers are registered with the BIR by requiring the submission of their CoR (BIR Form 2303) prior to allowing them to use their facility.

They must also request certification of entitlement to exemption or lower tax rate for sellers who wish to avail of such incentives. They are also bound to require sellers to submit a copy of the BIR-received SD. Without the certification, they must automatically apply the withholding tax.

Last, they are required to provide withholding tax certificates (BIR Form 2307 using WI760 or WC760 as the Alphanumeric Tax Code or ATC) to sellers as proof of withholding.

COMMENCEMENT OF WITHHOLDING OBLIGATION
The RR provides three instances when the WHT obligation applies. First is upon receipt of the BIR-received SD indicating that the sellers have exceeded the P500,000 remittance threshold. Second is when the seller fails to submit the required BIR-received SD within the prescribed period. Third is when the e-marketplace operator or DFSP has determined that its total gross remittances to the seller have exceeded P500,000.

In the event that the gross remittances exceed P500,000 at any point during the year, the withholding automatically applies on the remittances which exceed the threshold.

TRANSITORY PERIOD
E-marketplace operators and DFSPs have 90 days from Jan. 15 to comply with the requirements under the RR prior to the actual imposition of the WHT.

WHAT’S NEXT FOR ONLINE SELLERS?
Contrary to popular belief, this tax on online sellers is not a new tax. Online vendors are subject to income tax on their taxable income. Transactions with domestic vendors are generally subject to creditable withholding tax depending on the nature of the income and classification of the payor based on existing rules. The RR merely implements the government’s right to collect a portion of these income taxes in advance by including the online retail industry in the withholding tax system.

However, online sellers may erroneously consider this as an additional cost. They may then opt to pass on this tax to the customers through a price increase. As such, it is the buying public who may ultimately bear the cost. Nonetheless, looking at the bigger picture, this withholding tax on online sellers will help the government amplify its revenue collection efforts. However, in order for these initiatives to really make a difference in the government collection efforts, it is crucial for online sellers to register their businesses with the BIR and pay their taxes properly.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Edmund James E. Opinio is an assistant manager at the Client Accounting Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

edmund.james.opinio@pwc.com

Lazada and PMAP’s partnership offers more income opportunities for young, tech-savvy Filipinos through the LazAffiliates Program

Partnership signing between Lazada Philippines and Professional Models Association of the Philippines, represented by Head of Affiliates, Mishie de la Cruz and PMAP President, Margarita Gutierrez

Lazada Philippines announces a partnership with the Professional Models Association of the Philippines (PMAP), enabling the organization of Filipino models to use their individual platforms to earn more creative income by becoming a LazAffiliates member. 

PMAP has been an institution for the country’s modeling industry since it was founded in February 1987. Their mission to uplift, protect, and professionalize the industry has paved the way for models to become more than just the face of a brand. With the rise of social media and e-commerce, models have evolved into personalities that inspire and influence their audiences. 

PMAP President Margarita Gutierrez believes that the LazAffiliates partnership is beneficial towards their goals. She shares, “Now that we live in a modern world, navigating the digital world to further market our modeling lineup has become very important. The LazAffiliates program is perfect for PMAP because we’ll be able to do marketing more efficiently for our clients in tandem with our models. While we get to promote products more effectively, it’s also great that our models also have an additional avenue for earning income.”

By partnering with Lazada, PMAP models can maximize their potential as content creators and promote their favorite local fashion and beauty brands while earning extra income through the LazAffiliates program. This partnership not only strengthens ties between brands and audiences but also allows PMAP models to improve their content creation skills and learn from LazAffiliates best practices.

Mishie de la Cruz, Head of Affiliates at Lazada Philippines, shares that, “Through this mutually beneficial partnership, PMAP will be working together with Lazada to help the PMAP models have a stronger digital presence as LazAffiliates. Everyone has their own way of creating content, but LazAffiliates is a tool for them to also generate income. We want more and more people to know that absolutely anyone can sign up and benefit from the LazAffiliates program.” 

The LazAffiliates program by Lazada gives everyone the opportunity to earn commissions and generate income by promoting Lazada products through unique tracking links, and gain access to exclusive experiences and other perks and rewards.

By sharing their tried and tested product recommendations from Lazada, PMAP models can connect further with their audiences and inspire them to follow in their footsteps. With this partnership, the possibilities are endless, and PMAP models can continue to uplift the modeling industry in the Philippines.

You don’t need to be a model or a social media pro to maximize your income potential! Sign up as a LazAffiliates member, and build rapport with your audience by sharing your favorite products and honest reviews and recommendations, while earning commissions.  For more information and updates, follow @lazaffiliatesph on Facebook and Instagram.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld website. For more information, send an email to online@bworldonline.com.

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Beijing’s butchers a glum bunch as Lunar New Year meat sales slow

NATALIE NG-UNSPLASH

BEIJING — The butchers in the Xinfadi wholesale food market, Beijing’s largest, slouch on stools behind counters stacked with meat, occasionally looking up from their smartphone videos to call out to the few shoppers idly passing under the market’s Lunar New Year decorations.

“This time last year, this hall would be squeezed so full of people that you could not move,” said a pork seller named Li, who used to sell 20 pigs a day in the holiday run-up but this year is selling just five a day.

The lead up to the Lunar New Year should be Xinfadi’s busiest time of year but the sluggish sales reflect the deeper malaise that has settled over the Chinese economy, the world’s second-largest. This year, pensive consumers are tightening their belts amid uncertain employment prospects, especially for younger people, a plunging stock market and declining property values.

The holiday, also known as the Spring festival, should see people in the world’s largest pork consuming nation stock up as families reunite over feasts including fish, dumplings and cured sausages, but demand this year is lackluster, ten meat and seafood sellers inside Xinfadi told Reuters.

“It is getting worse year after year. There are fewer people shopping and people are buying less,” said Li, who only gave his surname.

China has struggled to mount a strong post-COVID pandemic recovery, with weak consumer and business confidence, mounting government debt and slowing global growth weighing on jobs, activity and investment.

The International Monetary Fund forecasts China’s economic growth to slow to 4.6% in 2024, from 5.2% in 2023, and decline further in the medium term.

“Shrinking meat consumption is a symptom of an economic downturn,” said Ma Wenfeng, senior analyst at Beijing Orient Agribusiness Consultancy.

Shanghai-based agro-consultancy JCI pegs China’s 2023 pork consumption at between 53 million to 54 million metric tons, lower than its 10-year average of between 54 million to 55 million tons. JCI analyst Rosa Wang said 2024 pork consumption is likely to remain around 54 million tons or lower.

Gro Intelligence predicts China’s meat consumption growth will slow in 2024 after increasing by 3.6% in 2023.

“As a result, China’s meat import volumes are facing downward pressure,” it said.

Data from the US Department of Agriculture estimates China’s pork and chicken consumption in 2024 to decline by 2.5% from a year ago, while beef and veal consumption is seen rising by 1.6%.

OVER-EXPANSION
Weak demand has put farmers and traders under pressure after aggressive expansion in recent years led to a surplus of pork and poultry, prompting Beijing late last year to buy tens of thousands of tons of pork for its state reserves to lift pork prices.

Wholesaler Jin Tao said narrowing margins have forced several vendors in Xinfadi to shutter.

“Five years ago, this market could sell up to 4,000 hogs a day during Spring Festival. Now, we can’t even sell 2,200 heads,” Jin said.

Chicken seller Ma Huolu said Spring Festival sales have dropped by 30% from a year ago after restaurant closures hammered wholesale orders. A seafood seller, who declined to be named, said some days she is unable to sell even one fish.

Longer term, China’s falling population, down for a second consecutive year in 2023, has raised concerns about demand from the world’s top food importer and those repercussions on the global agriculture industries.

Total meat imports have plunged from a peak of 9.91 million tons in 2020 to 7.38 million tons in 2023 amid higher domestic production, according to customs data.

An expanding middle class and an aging population has also meant many health-conscious diners are switching from meat to alternatives such as tofu.

In Xinfadi, Li sighed as he weighed a pork belly slice for a shopper.

“Customers used to buy two or three pieces of belly. Now even the pork ribs are not moving, this is a really difficult year.” — Reuters

With solar industry in crisis, Europe in a bind over Chinese imports

DARMAU-UNSPLASH

STRASBOURG, France/LONDON — Europe’s green energy transition is stuck between a rock and a hard place. A flood of cheap Chinese solar panel imports is driving record solar energy installations. But those same imports are crushing Europe’s few local solar manufacturers.

Governments and industry are split over how to respond.

Europe just had a bumper year for green energy. European Union (EU) countries installed record levels of solar capacity, 40% more than in 2022. The vast majority of those panels and parts came from China — in some cases, 95%, International Energy Agency (IEA) data show.

Yet the green energy boom hasn’t helped Europe’s few local solar panel manufacturers, which have hit crisis point, crushed by cheaper imports and oversupply. Announcements of production closures are piling up, and the sector has warned half of its capacity could shut within weeks unless governments step in.

Policymakers are scrambling to respond, but are split over how to do so.

German Economy Minister Robert Habeck wrote to the European Commission in November, expressing concern that the EU executive was about to slap trade restrictions on Chinese solar imports, a letter seen by Reuters showed.

“I have heard that the Commission may be intending to impose safeguard measures against imports of photovoltaic (PV) modules from China. I have very strong concerns about this,” the letter said.

Mr. Habeck warned restricting Chinese imports could kill off Europe’s rapid expansion of green energy and make 90% of the PV market more expensive. It risked bankruptcies among EU companies that assemble and install solar panels using imported parts, he said.

A spokesperson for Germany’s economy ministry declined to comment on the letter.

Germany’s own planned support for the sector has been thrown into turmoil by a government budget crisis.

Elsewhere, Spain has not ruled out tariffs on imports of solar panel materials. The Netherlands wants to cover solar PV imports with the EU’s carbon border tax, a government official told Reuters. And Italy last week announced a 90-million euro ($97 million) investment in a PV panel factory in Sicily.

PRICE WAR
In a speech on Monday on the solar sector’s problems, EU Financial Services Commissioner Mairead McGuinness offered no new support. She pointed to EU measures already underway, including a law due to be finalized on Tuesday, which aims to fast-track permits for local manufacturing and to give products made in the EU, such as panels, an advantage in future clean tech tenders.

On trade restrictions, Ms. McGuinness struck a cautious tone. “Given that we currently rely to a very important degree on imports to reach EU solar deployment targets, any potential measure needs to be weighed against the objectives we have set ourselves when it comes to the energy transition,” she said.

Industry itself is divided over the solution. Solar manufacturers have urged governments to step in to buy up excess inventories of solar modules to ease the oversupply — and, if this cannot be done fast, consider trade barriers.

But the broader green energy industry is opposed to import curbs.

“You can’t reduce dependency on China in the short term or you don’t build the projects,” Miguel Stilwell d’Andrade, chief executive officer (CEO) of Portuguese utility EDP, told Reuters.

He noted that solar panel prices have climbed in the United States, which has duties on Chinese imports. “It is having an inflationary impact … the price of panels is more than double that of Europe,” he said.

Even local manufacturers say hopes of a competitive local industry are dim.

Europe is in a “price war” with China, said Gunter Erfurt, CEO of Swiss panel maker Meyer Burger, which plans to close its loss-making German solar module factory, citing an absence of supportive European policies.

With some Chinese solar firms able to sell even below production costs, Europe is playing catch up. “The solar industry in China has been strategically subsidized with hundreds of billions of dollars for years,” Mr. Erfurt told Reuters. — Reuters

Chile’s former president Sebastian Pinera dies in helicopter crash

CHILEAN EX-PRESIDENT SEBASTIAN PINERA -- WIKIPEDIA

SANTIAGO — Chilean ex-President Sebastian Pinera died in a helicopter crash on Tuesday, sending the country he led for two terms into mourning and prompting an outpouring of condolences from leaders across Latin America.

The helicopter carrying Mr. Pinera, 74, and three others plunged into a lake in southern Chile. The former president was pronounced dead shortly after rescue personnel arrived at the scene. The other three passengers survived.

Two sources told Reuters Mr. Pinera was the pilot, although officials have not confirmed that, nor the helicopter’s intended destination.

Mr. Pinera often spent the Southern Hemisphere summers near the picturesque lakes that dot Chile’s south, and frequently piloted his own helicopter.

President Gabriel Boric declared three days of national mourning, while preparations have begun for a state funeral on Friday for the former leader, who served two non-consecutive terms between 2010 and 2022.

Interior Minister Carolina Toha said the ex-president’s body had been recovered from the lake, near the town of Lago Ranco.

“We remember him for the way he dedicated his life to public service,” said Ms. Toha, who has been helping to lead efforts to battle deadly wildfires in recent days.

Mr. Pinera was perhaps best known abroad for his role overseeing the spectacular rescue in 2010 of 33 miners who were trapped underneath the Atacama desert. The event became a global media sensation and was the subject of a 2014 movie, The 33.

In Chile, he was known as a successful businessman whose first term was boosted by rapid economic growth but who was often seen as out-of-touch with the country’s fast-changing society.

Both his presidencies were marred by frequent protests — of students demanding education reform in the first term, and of wider and often violent protests against inequality in his second term that ended with the government promising to draft a new constitution.

After leaving the presidency, Mr. Pinera remained active in politics, speaking out on issues like the attempt to draft a new constitution — which ultimately failed — and backing conservative politicians in the region, including Argentine President Javier Milei.

Former Argentine President Mauricio Macri expressed his sadness at the news of Mr. Pinera’s death. “He was a good person, committed like no one else to Chile and to the values of freedom and democracy in Latin America,” he said.

BUSINESS SUCCESS
The son of a prominent centrist politician, Mr. Pinera was a Harvard-trained economist who made his fortune introducing credit cards to Chile in the 1980s.

He was also a major shareholder in the flagship airline formerly known as LAN, local soccer team Colo-Colo, and a television station, although he sold most of those holdings when he took over the presidency in March 2010. As of 2024, he was ranked 1,176 on Forbes’ global rich list, with a net worth of $2.7 billion.

Known for a driven and competitive personality, one friend described Mr. Pinera as someone who could be a bully, reluctant to delegate responsibility.

He was also a risk-taker who enjoyed deep-sea diving.

Running for election to the presidency after a spell as a center-right senator, he wooed moderate voters by portraying himself as the leader of a new right and an entrepreneur who made his fortune with hard work.

At the same time, he distanced himself from the 1973-1990 rule of General Augusto Pinochet, when more than 3,000 suspected leftists were killed or “disappeared.”

He lost his first attempt at the top job in 2005 to popular center-left leader Michelle Bachelet, but she was barred constitutionally from running for a second consecutive term and in 2009 he beat ex-president Eduardo Frei by a small margin.

That ended the 20-year rule of the center-left and fended off the bitter memories of Pinochet’s bloody dictatorship that had hurt the right in past elections.

His honeymoon with the electorate was short-lived, though, and his stiff manner contrasted with the more amiable Ms. Bachelet, who both preceded and succeeded him as president.

Despite plaudits for his government’s economic record, many Chileans felt he did not do enough to tackle deep inequality or address inadequacies in the country’s education system.

Mr. Pinera and his wife Cecilia Morel had four children. — Reuters

PHL vocational schools embrace edtech to improve student employability

PHILSTAR FILE PHOTO

Most Philippine institutions (97%) believe their use of technology in education played an important role in the improvement of a student’s success, according to a 2023 study by Instructure, an edtech provider.

The State of Vocational Education in the Philippines survey, covering 115 institutions, indicates a shift towards integrating edtech solutions such as a learning management system (LMS) to broaden students’ career opportunities post-graduation.

LMS emerged as the most used of all the technologies adopted, with 77% of institutions utilizing them. Digital assessment solutions (62%), and video/audio conferencing (59%) were also widely adopted.

“The widespread adoption of LMS and other digital learning tools speaks to a deeper understanding that integrating technology is crucial for preparing vocational students for the complexities of the modern workforce,” said Harrison Kelly, managing director at Instructure Asia Pacific, in a statement.

The report also found that 89% of vocational education institutions place great importance on the employment rates of recent graduates, while 81% value their students’ practical application of knowledge and skills.

All (100%) believe their programs effectively prepare students for the workplace.

More than half of the institutions (53%), however, admit they struggle with recent graduate employment rates.

“It’s vital that institutions continue to provide strong support to students as they complete their courses and advance in their lifelong learning journey,” Mr. Kelly said.

“This involves not only equipping them with the latest technological tools and skills but also overcoming inherent challenges in this rapidly changing educational landscape,” he added.

TECHNOLOGY ADOPTION
One key factor driving technology adoption in vocational education institutions is the heightened competition from universities. According to the report, 65% of institutions said they see a high increase in competition from universities offering nontraditional courses for students, such as short courses or micro-credentials.

Moreover, while 32% of vocational institutions have incorporated artificial intelligence (AI) tools in their operations, 38% have opted to ban them. About a quarter (23%) are familiar with these tools but choose not to use them, with a small fraction (6%) reporting a lack of knowledge about them.

Despite these apprehensions and outright bans, nearly all of the institutions included in the poll (91%) have established guidelines for using generative AI, with nearly eight-tenths (75%) of local vocational education institutions offering AI training. — P. B. M.

Hamas proposes three-stage ceasefire over 135 days, leading to end of war

A Palestinian man walks past the remains of a tower building which was destroyed by Israeli air strikes, amid a flare-up of Israeli-Palestinian violence, in Gaza City May 13, 2021. — REUTERS FILE PHOTO

DOHA — Hamas has proposed a ceasefire plan that would quiet the guns in Gaza for four-and-a-half months leading to an end to the war, in response to a proposal sent last week by Qatari and Egyptian mediators and backed by the United States and Israel.

According to a draft document seen by Reuters, the Hamas counterproposal envisions three phases lasting 45 days each.

The proposal would see militants exchange remaining Israeli hostages they captured on Oct. 7 for Palestinian prisoners. The reconstruction of Gaza would begin, Israeli forces would withdraw completely, and bodies and remains would be exchanged.

US Secretary of State Antony Blinken arrived overnight in Israel after meeting the leaders of mediators Qatar and Egypt in the most serious diplomatic push of the war so far aimed at reaching an extended truce. Details of Hamas’s counteroffer have not previously been reported.

According to the Hamas counterproposal, all Israeli women hostages, males under 19, the elderly and sick would be released during the first 45-day phase in exchange for the release of Palestinian women and children from Israeli jails.

Remaining male hostages would be released during the second phase, and remains exchanged in the third phase. By the end of the third phase, Hamas would expect the sides to have reached agreement on an end to the war.

The group, which governs Gaza, said in an addendum to the proposal that it wished for the release of 1500 prisoners, a third of whom it wanted to select from the a list of Palestinians handed life sentences by Israel.

The truce would also increase the flow of food and other aid to Gaza’s desperate civilians who are facing hunger and dire shortages of basic supplies.

Israel began its military offensive in Gaza after militants from Hamas-ruled Gaza killed 1,200 people and took 253 hostages in southern Israel on Oct. 7. Gaza’s Health Ministry says at least 27,585 Palestinians have been confirmed killed in Israel’s military campaign, with thousands more feared buried under rubble. — Reuters

Consumers turn to AI-driven shopping — IBM study

SNOWING-FREEPIK

More consumers are expressing interest in artificial intelligence (AI)-driven retail, saying they are unsatisfied with the current retail methods, according to a study.

IBM Institute for Business Value’s 2024 consumer study, “Revolutionize retail with AI everywhere: Customers won’t wait,” revealed only 9% of the 20,000 consumers polled said they were happy with their in-store shopping experience, while 14% of online shoppers said the same.

The study was conducted in 26 countries.

Luq Niazi, Global Managing Director at IBM, said the multitude of choices given to today’s consumers presents them with more options than ever before.

“We are seeing that today’s consumers, faced with more choices and channels than ever, are increasingly making their purchasing decisions based on the cost and the quality of experiences that retailers provide,” he said in a statement.

Instead of being discouraged by the results of the study, Mr. Naziq said retailers should view it as an opportunity.

“Leveraging advances in AI technologies, retailers can forge ahead into a new era of commerce and fulfilment, leading with innovation to create shopping experiences that are as intuitive, unified, personalized and efficient,” he added.

Additionally, consumers are aware that brands and retailers are capable of delivering the services their clients need, but that they need to step up and do so.

Around 80% of consumers who have yet to encounter AI in their shopping activities say they want to use the technology for researching products and look for deals, among other concerns.

“More than half say they would like to use virtual assistants (55%), augmented or virtual reality (55%), and AI applications (59%) as they shop,” the study said.

Adapting these changes would benefit consumers, as 23% use technology and are open to try new digital shopping experiences.

Among the other takeaways from the study include that over half (52%) of respondents want to receive information and offers from stores that pique their interest, but 40% are concerned and want more control over the data they share with companies.

Customers want digital integration, said the study.

“Consumers surveyed showed a strong interest in using AI technology to enhance various aspects of their shopping. Most consumers (59%) said they would like to use AI applications as they shop and 4 in 5 consumers who haven’t used the technology for shopping reported an interest in trying it,” said the IBM study, but those polled said they want the experience to be personalized for a more satisfying result.

The study also showed that consumers want more flexible payment options, owing to economic challenges.

“Consumers surveyed are seeking flexible payment options, with 55% desiring more varied payment options and 46% reporting they would like to pay for their purchase in installments,” it said. — P. D. Garcia

Pakistan approves plan to sell PIA airline on eve of election

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ISLAMABAD — Pakistan’s caretaker cabinet approved a privatization plan for loss-making Pakistan International Airlines on Tuesday, days after the country’s election panel directed it to refrain from making any final deal.

The cabinet’s approval is a crucial pre-requisite to taking the airline to market for a sale, which the election panel said should be put on hold until it has reviewed the plan.

The interim government recently sealed the plan to put the national carrier up for sale, Reuters reported last week.

“These steps will help attract the investors toward PIA,” the prime minister’s office said in a statement, adding that the transaction adviser Ernst & Young had completed a plan for the financial restructuring of the loss-making airline.

The statement did not refer to the directive from the election panel. But Prime Minister Anwaar ul Haq Kakar has previously said the process will be handed to the incoming government for further implementation, including carrying out the sale, after the cabinet approval of the restructuring of the airline for privatization.

The plan to tie an incoming government’s hands on privatization underscores the economic challenges a new administration will face under tough conditions imposed by an International Monetary Fund bailout, with the South Asian nation of 241 million people reeling from decades-high inflation.

The cabinet gave its approval on the recommendation of Pakistan’s privatization commission, a body assigned to sell off all loss-making state-owned enterprises (SOEs).

The restructuring plan has split PIA into two entities.

One ‘clean’ one will be offered up for sale and the other will be parked in a holding company with legacy debt, which includes negative equity of 825 billion rupees ($2.95 billion) in loans, creditors’ money and losses.

The statement from the prime minister’s office said the plan which had been approved would “divide the PIA into two companies, TopCo and HoldCo”.

It said PIA’s core operations, engineering, ground handling, cargo, flight kitchen, and training will be part of TopCo, while its precision engineering complex, PIA investment Ltd and other departments and properties will be included in HoldCo.

Pakistan agreed with the IMF last June to overhaul the SOEs under a deal for a $3 billion bailout and the outgoing government decided to privatize PIA just weeks after signing it.

The caretaker cabinet, which took office in August to oversee this week’s election, was empowered by the outgoing parliament to take any steps needed to meet the budgetary targets agreed with the IMF.

PIA has liabilities of 785 billion Pakistani rupees ($2.8 billion) and accumulated losses of 713 billion rupees ($2.55 billion) as of June last year.

Progress on privatization will be a key issue if the new government goes back to the IMF once the current bailout programme expires in March, analysts say. — Reuters

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