The cybersecurity landscape of Web3

October 20, 2023 | 12:01 am

computer-laptop — GLENN CARSTENS PETERS-UNSPLASH

In the ever-evolving landscape of the internet, we’ve witnessed a remarkable journey, from its modest origins in the late 1960s to the dazzling Web3 we’re on the cusp of today.

Web3 represents a leap forward, underpinned by blockchain technology, into a world where decentralization and peer-to-peer interactions reign supreme. It’s a place where intermediaries become obsolete, and the data you hold becomes truly yours. This new web comes with promises and perils, and we are only beginning to fathom its profound implications. It is within this framework that we delve into the realm of Web3 and its impact on cybersecurity.

THE ESSENCE OF WEB3
Web3 is not just another iteration of the internet; it’s a revolution in the making. Unlike its predecessors, Web3 is decentralized, open-source, and poised to reshape the way we navigate the digital realm. This next evolution of the web finds its strength in blockchain technology, the very same technology that has driven the rise of cryptocurrencies.

Blockchain, a distributed ledger shared across a network of computers, offers secure and tamper-proof data storage. In the cryptocurrency arena, it enables transactions without the need for traditional intermediaries, such as banks or governments. This decentralization is a game-changer, enhancing security and transparency in a world where privacy and trust are paramount.

THE DUAL IMPACT ON CYBERSECURITY
Web3’s rise introduces a double-edged sword for cybersecurity. On one hand, the decentralized nature of Web3, with data stored across a distributed ledger, yields enhanced security and resilience against attacks. Traditional web applications pale in comparison to the robustness of Web3 applications in safeguarding data and thwarting threats.

However, the story does not end here. Enter smart contracts, and self-executing programs on a blockchain. While they hold immense potential, they also harbor vulnerabilities that can be exploited by cybercriminals. Furthermore, the pseudonymous nature of many Web3 applications makes tracking and prosecuting these digital wrongdoers a formidable challenge.

The transition to decentralized data holds promises and perils. In a centralized system, data resides under the guardianship of a single entity, like a government or a corporation. In the Web3 landscape, data is distributed across a network, fostering the democratization of control. But it also creates a vast, decentralized repository that could entice cybercriminals.

The growing number of devices connected to the internet expands the attack surface. Smartphones, laptops, and an ever-expanding universe of IoT devices have tipped the scales, with over 15 billion devices online. This proliferation provides a broader landscape for potential attacks, necessitating enhanced vigilance and fortified defenses.

While blockchain technology, known for its inherent security, brings optimism, it also attracts threats. Decentralized networks, with no central authority, pose a challenge in tracking and managing security vulnerabilities. These technologies often store sensitive data, making them prime targets for hackers.

THE BRIGHT SIDE OF WEB3
Amidst these cybersecurity challenges, Web3 offers a glimmer of hope:

Enhanced Security: Web3, with no central control, has the potential for unparalleled resistance to hacking and threats. It empowers individuals and entities to have greater control over their data and devices, fostering the development of robust technologies, including blockchain.

Cost Reduction: The elimination of intermediaries reduces costs for users and businesses. This transition from data monopolies to accessible information empowers people to access data and technology at lower costs.

Privacy Empowerment: Web3 platforms are designed with privacy in mind, employing encryption by default. They don’t share data with other users, reducing the chances of data leaks or unauthorized sharing.

User Control: In Web3, users interact directly with one another and the data they seek, minimizing dependence on intermediaries. This direct interaction offers individuals more control over their digital footprint.

THE OWNERSHIP REVOLUTION
The trend toward data ownership has gained momentum. In conventional platforms, the entities we engage with own and sometimes exploit our data. In a decentralized data landscape, control shifts to the users. Data is securely stored on devices that users control, and shared only with their consent, reducing the risk of data commercialization.

THE SHIFTING CONTROL PARADIGM
Web3 is dismantling the central control of data, a paradigm shift in progress. As blockchain and distributed ledger technology advance, users experience newfound freedom and autonomy over their data. This transition enhances digital resilience, reducing the specter of censorship and fostering a more open and free exchange of ideas.

Yet, Web3 presents a series of challenges that cannot be ignored. In this decentralized world, the lack of a central authority leaves questions about accountability and data access unanswered. Without a central entity, enforcing data protection measures and ensuring user privacy becomes a complex endeavor.

Decentralized data, while empowering individuals, can complicate decision-making for businesses. Centralized data acts as a single source of truth, facilitating informed decisions. Without it, the analysis becomes more intricate.

The decentralized nature of Web3 also introduces security concerns. Cybersecurity threats in this context demand innovative approaches, as the absence of a central authority makes managing vulnerabilities a formidable task. These technologies often store sensitive data, making them prime targets for hackers.

To navigate the Web3 landscape, we must fortify our cybersecurity strategies. Threat modeling, collaborative partnerships, and research and development are pivotal. With the absence of a playbook for this new frontier, proactive measures and collective vigilance are imperative.

PROTECTING YOUR WEB3 WORLD
As we embrace Web3, securing our digital presence becomes paramount:

Encryption: Encrypt your data to ensure only authorized users can access it. Explore additional layers of encryption to bolster your defenses, especially on unsecured networks.

Data Sharing: Limit the number of entities with whom you share data. Minimizing exposure reduces the risk of data leaks and unauthorized usage.

Authentication and Authorization: Employ robust authentication methods, like strong passwords and two-factor authentication, to safeguard your accounts. Secure accounts are a vital bulwark against unauthorized data access.

The recent Medusa ransomware attack on PhilHealth, affecting millions, serves as a stark reminder of the looming threats. Yet, Web3 has the potential to reshape how we interact with the digital world, providing the tools needed to combat the rising tide of cyber threats.

As we approach Web3, let us remember that this decentralized future carries the promise of cybersecurity solutions. With foresight and vigilance, we can harness the benefits of this decentralized future while mitigating the risks. This, ultimately, is the path forward in the age of Web3.

Dr. Donald Patrick Lim is the founding president of the Blockchain Council of the Philippines and the lead convenor of the Philippine Blockchain Week. He is also the Asian anchor of FintechTV.

LIMA Water sees lower energy costs via solar power source

October 20, 2023 | 12:01 am

LIMA Water Corp., a wholly owned subsidiary of Aboitiz InfraCapital, Inc. (AIC), has projected reduced energy costs after installing a solar panel in one of its sewage treatment plants.

The company said in a statement on Thursday that its 99.9-kilowatt solar power system, which was completed in April, could cut its energy costs through an estimated total power generation of 146 megawatt-hours annually.

Since its completion, the system has been generating 400 kilowatt-hours of “clean” and “green” energy daily, which is sufficient to power its second sewage treatment plant, or STP 2.

Aside from reducing the plant’s energy costs, the shift to renewable energy is expected to eliminate approximately 100 tons of carbon dioxide emissions each year, the company said.

“Harnessing the power of renewable energy is a fundamental part of LIMA Water’s commitment to protect the environment and promote sustainability through innovative technologies,” Hazele Manalo, general manager of LIMA Water, said in a media release on Thursday.

“Our solar project is a significant step towards addressing the pressing issue of carbon emissions to ensure a sustainable future for the next generations to come,” she added.

LIMA Water’s solar power initiative is said to have demonstrated AIC’s broader commitment to drive sustainability across its various sectors.

“At AIC, sustainability lies at the core of our operations. We ensure that we make use of our natural resources responsibly, and LIMA Water’s solar panel project is just one of the many sustainable practices and initiatives that we have,” said Eduardo Aboitiz, head of AIC’s water business and president of Apo Agua Infrastructura, Inc.

Mr. Aboitiz also mentioned the company’s pioneering innovation called “water-energy nexus” under AIC’s Apo Agua, which is a joint venture company between AIC and J.V. Angeles Construction Corp. based in Davao City.

The innovation allows the company to fully operate a water treatment plant solely on renewable energy generated from the natural flow of water from its primary surface water source.

LIMA Water said it is considering the possibility of transitioning one of its major facilities to renewable energy sources through the Green Energy Option Program of the Department of Energy. — Sheldeen Joy Talavera

Succession planning vs hiring ‘boomerang’ employees

October 20, 2023 | 12:01 am

We’re having trouble filling an important vacancy due to the resignation of a highly qualified and experienced person. Since he left us three years ago, we have tried nearly everything, including pirating from a competitor. The workers we poached can’t perform to our expectations. Now, we’re at a dead end. Is there a solution to this predicament? — Thunder Bolt.

There are short-term and long-term solutions. For the short term, I’m proposing that you explore the possibility of rehiring the person who resigned three years ago. It’s the fastest way to fill the gap. Who knows? You may be successful in attracting back a “boomerang employee” and solve your three-year old problem.

There’s nothing wrong with rehiring a boomerang person. It’s for the overall benefit of the organization. He will surely bring in additional experience. That’s assuming that the boomerang person had a consistent and above-average performance when he was with you.

The challenge with rehiring former employees is the possibility that both of you may not agree on pay and perks. But you can always try. If you don’t negotiate, then the answer will always be no. Which brings you back to square one. On the other hand, you may be in luck if your candidate is no longer happy in his current employment.

You’ll know this when he talks to you about possibly returning to the fold. But before offering a package, do the following:

One, ask the boomerang person to send you an updated curriculum vitae to include the milestones with his current employer. The past three years can give you additional, if not fresh insights on his accomplishments.

Two, hire an external background investigator to check for any criminal records. There’s no need to check with the human resource (HR) department, his boss or anyone from that same organization. You wouldn’t want to jeopardize his relationship with his current employer.

Three, require the boomerang person to undergo a medical examination, including a drug test. You’ll want to be sure that he’s clean.

If everything appears to be in good order, require him to sign a job offer and an employment contract. Be firm about him needing to start all over again in terms of seniority rights.

LONG-TERM SOLUTION
The long-term solution is a dynamic succession plan. It’s an effective solution for any eventuality like a valued worker leaving, becoming physically incapacitated due to illness or accident, or even dying. The only thing you can foresee with any certainty is workers coming up to their retirement age.

A succession plan must be reviewed periodically to be effective. Also, to avoid giving off false expectations, its contents must be kept confidential as the list of possible replacements can change at any time, being subject to fluctuations in the performance of your candidates.

Preparing a succession plan will require taking the following steps:

One, identifying key positions in every department. That includes those positions that are difficult to develop and fill in case of an emergency resignation. In most cases, this includes department heads and managers who possess special (or unique) leadership skills and competencies.

Two, defining ‘must-have’ competencies. What specific knowledge, attitudes, skills and habits must a candidate possess to become a possible successor for a key position? The HR department must conduct a competency mapping evaluation to identify and rank people according to their current skills.

Three, establishing the management gaps among candidates. The candidate’s immediate boss should know all from conducting performance appraisals. What are these common management gaps? What is the number one gap? Is it about problem-solving or decision-making? What else?

Four, offering a management development program. Usually, this program requires one or two years of immersion in management and leadership. It can be patterned after an MBA program, except that almost all lessons are focused on the company’s business. This requires that coaches or teachers be incumbent company officials.

Last, reviewing the succession plan as needed. This ensures the effectiveness of the plan to account for the personal milestones achieved by every candidate, the results of their annual performance appraisal, or any extracurricular activities of theirs that could be beneficial to the organization.

Having a dynamic succession plan is the key to ensuring the continuity of leadership in any organization. More than that, allowing workers to take over any vacant post is the ultimate solution of motivating workers and building their morale.

At the core of a highly energized workforce is the quality of your HR policies and the one-on-one professional relationship between employees and their management. The key, of course, is their mutual trust and respect for one another.

Chat your feedback and workplace concerns with Rey Elbo via Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

How the Hollywood strike is scrambling film, TV schedules into next summer

October 20, 2023 | 12:01 am

LOS ANGELES — Santa Claus will not be coming to Hollywood this year.

Dear Santa, a comedy by the Farrelly brothers about a young boy who accidentally sends a letter to Satan instead of Santa, will not reach theaters this holiday season, one of many victims of a prolonged actors’ strike that has set the US entertainment industry reeling from one of the longest work stoppages in its history.

The strike, which has entered its 14th week, is scrambling next year’s film slate and delaying the return of primetime television comedies and dramas.

While film and television writers have ended their 148-day work stoppage, talks between actors and studios broke down last week and both sides said they remain far apart on many issues with no negotiations scheduled.

Major releases such as Mission: Impossible — Dead Reckoning Part 2, Gladiator 2, and Ghostbusters: Afterlife 2 have been delayed because of the walkout, as was Bob Marley: One Love, a biopic about the reggae musician that was receiving early Oscar buzz. Other films, such as the romantic comedy, Anybody But You, cling tenuously to the December release calendar, but could be postponed if its stars remain on strike and unavailable to help with promotion, sources with direct knowledge told Reuters.

“The whole release calendar is going to be tossed around,” said one studio executive, who identified two major movies and an animated sequel with release plans that have been tossed into the wind. “The whole thing is a giant Rubik’s Cube.”

One film financier shifted investment strategies as Hollywood’s work stoppage stalled several big-budget studio projects, backing productions outside of North America instead, including director Guy Ritchie’s next film starring Jake Gyllenhaal and Henry Cavill, which is shooting in Spain.

Media analyst Doug Creutz noted that the strikes “came at a very difficult time” for major media companies already contending with declines of the traditional cable TV business, weak ad performance and streaming services that mostly lose money. Add to those concerns a struggling movie business, whose holiday quarter box-office proceeds could fall 30% or more below pre-pandemic levels, as the actors’ strike forces the delayed release of several movies.

Warner Bros. Discovery, which pushed Dune: Part Two to March from November, reduced its adjusted earnings estimates for this year by $300 million to $500 million. Other studios are expected to provide an accounting of the strike’s financial toll on upcoming quarterly investor calls over the next few weeks.

WINTER IS COMING
Among the hardest hit are independent production companies, whose lifeblood comes from delivering movies and television shows. After taking a series of cost-cutting measures, like curtailing travel and entertainment, they are contemplating layoffs, say several executives at the companies. Some have sold rights to film and television libraries to keep the lights on, one buyer told Reuters.

Television executives hope to return to production in December, or by February or March at the latest, to produce a shortened season of primetime shows, with half-hour comedies returning to air more quickly than hour-long dramas. Writers are already drafting scripts, these executives said.

At the same time, programmers are embracing unorthodox backup plans to fill screens, such as a CSI-inspired reality show focused on local police forensic investigators, which is in the works for CBS, according to two sources familiar with the project.

Some major studio films scheduled for next year could slip into 2025 if the work stoppage continues, according to the studio executive, raising concern that audiences will get out of the habit of going to theaters. One exhibitor expressed concern about how to fill movie screens in the second half of 2024, remarking, “There’s nothing in production.” — Reuters

Mercer CFA Institute: Philippines’ pension system second worst in the world

October 20, 2023 | 12:01 am

In the 2023 edition of Mercer CFA Institute’s Global Pension Index, the overall score of the Philippines improved to 45.2 out of 100 from 42 recorded a year ago. However, this was below the 62.9 global average this year. The country’s retirement income system ranked the second worst among the 47 systems in the report. The index reviews the economies’ respective retirement income systems based on three weighted subindices*: adequacy, sustainability, and integrity.

How PSEi member stocks performed — October 19, 2023

October 20, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, October 19, 2023.

Black Swans, Grey Rhinos and Ugly Ducklings

October 20, 2023 | 12:00 am

Business leaders and experts led the discussions at the FINEX week sessions on Oct. 2-6 with the theme “Navigating Global Uncertainties Towards Sustainable Growth”. Former Bangko Sentral ng Pilipinas (BSP) Governor Say Tetangco, now SM Investments Corp. chair, was the keynote speaker. His topic was “Black Swans, Grey Rhinos and Ugly Ducklings.” Black swans are unexpected events with high impact such as the COVID-19 pandemic and the Ukraine war. Grey rhinos represent highly likely threats that are ignored, which can lead to business upsets and hurt economic growth, like climate change and technological disruptions. Lastly, ugly ducklings are hidden and overlooked opportunities that may seem unattractive but have the potential to transform and drive sustainable growth.

What are some global risks and challenges that may affect the Philippines? Governor Say named a few:

1. Higher for longer interest rates – Higher interest rates mean tighter credit conditions and higher borrowing costs, which could add pressure to debt servicing burdens, dampen aggregate demand and lead to a slowdown, lower profits, and greater unemployment. A widening interest rate differential with the US exposes the Philippines to higher capital flow reversal and currency depreciation pressures, resulting in increased volatility in financial markets.

2. Technological disruptions – While digitalization and technological innovations are beneficial, they have the potential to disrupt markets.

3. Climate change – Climate change and the transition to sustainable energy present risks that can affect the broader economy. The Nanyang Technological University and University of Glasgow estimates that ASEAN could potentially lose up to 35% of gross domestic product by 2050 if no remedial measures are taken to address climate-related risks.

How can the Philippines successfully navigate these global risks and the grey rhinos? Governor Say said the best strategy is to build resilience to preserve the business while investing for the future, as well as harnessing data and experience for better strategic decisions. How then do we build resilience?

1. Diversification – Never put all your eggs in one basket. Diversify your portfolio in terms of products and geographical location. At the national level, Governor Say said it will be good to advance trade and economic integration by aligning with the Regional Comprehensive Economic Partnership.

2. Agility in embracing technology – Respond fast in essential in times of uncertainty. Embracing technology is important in achieving modern agility. Technology can help enhance risk assessment exercises in times of heightened uncertainty. Leverage on big data applications for more comprehensive analysis. Rely on machine learning algorithms to identify market trends and patterns and enhance ability to identify potential risk factors on time and enhance productivity.

3. Resilience in collaboration – Collaboration brings diverse perspectives and also paves the way for shared capacity and resources when tackling resource-intensive challenges.

Another interesting topic during the conference was “Sustainable Cities: A Key Pillar for Nation Building.” Presenters were real estate developer Delfin Wenceslao, urban planner Paul Alcazaren, newly appointed first woman president of Ayala Land, Inc. Anna Margarita Dy and Makati Mayor Abigail Binay. Many of us now want to go to Iloilo to see the wonderful developments presented by Mr. Paul.

FINEX goes “beyond the bottom line.” So, there was a panel on “Protecting the Future, Preserving the Past: Built Heritage in the Philippines” with Ateneo Art curator Victoria Herrera, Old Manila Walks founder Ivan Dy and Galleria Duemila founder Silvana Diaz. We now appreciate old art works and their value.

There was also a discussion on “Generative Artificial Intelligence and Digitalization: Harnessing Emerging Technologies to Sustainably Increase Productivity” with SAP Philippines Management Director Rudy Abrahams, Mastercard Country Manager Simon Calasanz and Concentrix Vice-President Larah Sta. Maria.

The “Forging Alliances Towards Achieving Digital Inclusivity” panel was also informative. The panelists were Maya President Angelo Madrid, Ayala’s Managing Director for Data Science and AI Karl Chua and Google Cloud Philippines’ Ferdie Saputil. The conclusion is to welcome and utilize technology to make work easier and faster.

“Ethics in Technology” was presented by the FINEX ethics committee with Father Ben Teehankee of De la Salle, Dominic Ligot of Data Ethics PH and National Privacy Deputy Commissioner Leandro Aguirre. Ethics is ethics and it is always about “doing the right thing right all the time even when no one is looking”.

FINEX week successfully ended on Oct. 6 and FINEX executives unwound with a party. Little did we know that another black swan event was about to happen. Hamas attacked Israel the next day, with Israel immediately declaring a state of war.

The world is full of surprises and uncertainties. Let us be resilient and let us keep our faith up above. He is in control!

Flor G. Tarriela is former PNB chairman. She is lead independent director of Nickel Asia, director of LTG and FINEX, and a WomenBizPh member. A gardener and an environmentalist, she founded Flor’s Garden in Antipolo which practices natural farming technology.

Peso weakens due to worries over Middle East war

October 19, 2023 | 9:00 pm

THE PESO weakened anew against the dollar on Thursday due to lingering worries over the war in the Middle East.

The local currency closed at P56.87 versus the dollar on Thursday, weakening by 17 centavos from Wednesday’s P56.70 finish, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Thursday’s session weaker at P56.87 per dollar. Its intraday best was at P56.83, while its worst showing was at P56.90 against the greenback.

Dollars traded rose to $990.3 million on Thursday from the $877.5 million on Wednesday.

The peso dropped against the dollar on Thursday amid increased worries over the Israel-Hamas conflict and higher US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso weakened amid downbeat investor sentiment from the lingering worries due to the Israel-Hamas conflict,” a trader likewise said in an e-mail.

The peso also tracked the weakness seen in the region but was in the “middle of the pack,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa noted in a Viber message.

The dollar generally strengthened on Thursday after US Treasury yields gained overnight, he added.

For Friday, the trader said the peso could weaken further due to potentially hawkish remarks from US Federal Reserve Chair Jerome H. Powell overnight.

The trader sees the peso moving between P56.80 and P57 per dollar on Thursday, while Mr. Ricafort expects it to range from P56.75 to P56.95. — AMCS

Local shares drop further as conflict continues

October 19, 2023 | 9:00 pm

PHILIPPINE SHARES dropped further on Thursday as the conflict in the Middle East raged on and ahead of the speech of US Federal Reserve Chair Jerome H. Powell overnight.

The Philippine Stock Exchange index went down by 49.11 points or 0.78% to close at 6,219.16 on Thursday, while the broader all shares index declined by 19.61 points or 0.57% to end at 3,365.79.

“The index fell in today’s session due to heightened cautiousness and risk-off sentiment among investors following fresh developments in the Middle East, as well as the resurgence of the sell-off in bond markets overnight,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail on Thursday.

“Trading opened and stayed in the red territory for the whole session as the aforementioned headwinds weighed on sentiment. The ongoing tension in the Middle East kept many on the sidelines as well,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio likewise said in a Viber message.

Egypt agreed to reopen its border crossing with the Gaza Strip to allow aid to reach Palestinians, the US said, as the humanitarian crisis worsened for the 2.3 million people trapped in the enclave and anti-Israel protests flared across the Middle East, Reuters reported.

Selling pressure continued amid a rise in US Treasury yields and as oil prices exceeded the $90-per-barrel mark again amid the war in the Middle East, Unicapital Securities, Inc. Senior Equity Research Analyst Carlos Angelo O. Temporal said.

The yield on 10-year Treasury notes was up 6.4 basis points to 4.966%, touching its highest since mid-2007, Reuters reported.

US crude eased 0.16% to $88.18 per barrel and Brent was at $91.11, down 0.43% on the day.

“Selling pressure ramped up through the day, as investors likely trimmed exposures ahead of a speech by Fed chair Powell later tonight. For tomorrow, we are likely to see reactive moves to overnight developments,” Mr. Mercado added.

Fed Chair Jerome Powell will take the podium in New York on Thursday with his colleagues at the US central bank in apparent agreement to hold interest rates unchanged at their next meeting in two weeks.

At home, almost all sectoral indices dropped on Thursday. Financials went down by 28.47 points or 1.58% to 1,770.99; services fell by 20.84 points or 1.35% to 1,520.26; industrials dropped by 91.34 points or 1.02% to 8,824.68; mining and oil declined by 22.80 points or 0.21% to 10,830.69; and holding firms decreased by 10.41 points or 0.17% to 5,897.06.

Meanwhile, property climbed by 3.81 points or 0.14% to 2,656.40.

Value turnover went down to P4.24 billion on Thursday with 575.68 million shares changing hands from the P5.12 billion with 1.12 billion issues seen on Wednesday.

Decliners outnumbered advancers, 117 versus 50, while 53 shares closed unchanged.

Net foreign selling climbed to P524.69 million on Thursday from P32.59 million the previous day. — SJT with Reuters

Energy-efficiency projects eligible for more incentives

October 19, 2023 | 8:58 pm

THE Board of Investments (BoI) has issued a memorandum circular (MC) that will allow self-financed energy-efficiency projects (EEPs) to avail of duty-free equipment imports and other incentives.

In an online briefing on Thursday, Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said MC 2023-006 was signed on Monday.

The new MC amends the BoI’s MC 2022-008, which BoI Director Sandra Marie Recolizado said only offered renewable energy projects for the proponent’s own use the incentive of “duty-free importation of capital equipment.”

Citing Executive Order 226 or the Omnibus Investments Code of 1987, the BoI said it holds the authority to attract investment in desirable activities through an investment incentives scheme.

Under MC 2023-006, the self-financed EEP will also be entitled to an income tax holiday (ITH) and a duty exemption on imported raw materials, spare parts and accessories.

“The ITH incentive shall be limited to the prescribed ITH entitlement period under the CREATE Act or until the recovery of 50% of its capital investment, whichever comes first,” according to the MC, referring to the Corporate Recovery and Tax Incentives for Enterprises Act.

The new MC will take effect after publication in a newspaper of general circulation.

During the briefing, Mr. Rodolfo said that Japan’s MinibeaMitsumi will be the first private entity to avail of the additional incentives.

On Thursday, the Japanese electronics manufacturer inaugurated a P500-million solar power farm in Danao City, Cebu.

The project is located on a 6.8-hectare site and is expected to generate 12.8 gigawatts of energy annually, equivalent to 6,833 tons of carbon dioxide reduction per year.

“Even though this is a very big solar farm, it can cover only 8% of our total consumption here in the Danao factory. The savings amount will fully depend on the costs of the power which is fluctuating,” Minibea President Tatsuya Mori said.

Minibea Group Executive Officer Caesar Augusto said that the company spends close to P8 billion a year on energy costs.

According to Mr. Rodolfo, the Japanese company is considered a major investor, employing 18,500 at its facility in Danao, 3,000 in Bataan and 1,000 in Batangas.

“We are now studying solar panels on the roof of our factory in Bataan … It is the direction of the group, to be more renewable and to be more carbon-neutral towards 2030,” Mr. Mori said. — Justine Irish D. Tabile

PHL pinning hopes on Indian rice to help plug deficit in early 2024

October 19, 2023 | 8:57 pm

THE rice export quota assigned to the Philippines by India could be tapped to address the expected shortage in January, when the supply of grain typically diminishes as planting season starts, an agriculture official said.

“If (the Indian rice) comes in, that will definitely provide us with the supply that we will be needing at the end of the harvest,” Agriculture Undersecretary Mercedita A. Sombilla told reporters on the sidelines of the International Rice Congress.

Ms. Sombilla said Indian shipments will add to the supply during January and February, when planting season begins.

“Hopefully the impact of El Niño will not be severe; that volume will be very important and necessary for us to be able to get through,” she added.

India’s Director of Foreign Trade announced on Wednesday a rice export quota for the Philippines of 250,000 metric tons (MT). It also approved smaller quotas for Nepal, Cameroon, the Ivory Coast, Guinea, Malaysia, and the Seychelles.

Earlier, India had banned the export of non-basmati white rice to ensure adequate domestic supply. Basmati is the preferred domestic variety in India, while non-basmati white rice is the most-traded international variety.

India is the world’s largest rice exporter, and its export ban had exerted upward pressure on international rice prices. The Philippines is the world’s largest rice importer.

Philippine rice imports totaled 2.49 million MT as of Sept. 21, according to the Bureau of Plant Industry, with India accounting for 13,493.39 MT, equivalent to 0.6% of the total.

Vietnam remained the Philippines’ top source of rice, shipping 2.24 million MT or 89.96% of Philippine imports for the period.

The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), expects El Niño to strengthen towards late 2023, persisting until the first quarter of 2024.

Ms. Sombilla said imports will help curb surging retail prices of the staple grain.

High retail prices of rice prompted President Ferdinand R. Marcos, Jr. to order price controls on Sept. 5. This fixed the maximum price at P41 per kilogram for regular-milled rice and P45 for well-milled rice, caps which have since been withdrawn.

The Samahang Industriya ng Agrikultura (SINAG) cited the need to re-impose the P45 per kg price cap on well-milled rice in November, alleging that traders are creating “artificial” supply conditions to justify high prices.

“Rice farmers and millers have reported to us that some millers and traders are offering to buy palay between P21-23.50 per kilo of fresh palay (unmilled rice) and between P26-29 per kilo of dry palay,” SINAG Chairman Rosendo O. So said.

“While this is positive for our farmers, we are all worried about a possible repeat of the rice price spikes last August,” Mr. So added.

Asked to comment, Ms. Sombilla said that there are other measures available to curb any increases in rice prices.

“The price cap should really be a short-term (measure). I don’t think we will resort to that… Napilitan lang talaga mag-price cap noon (we were forced to impose price controls at the time),” she added. — Adrian H. Halili

Adjustments to next PHL Energy Plan expected to reflect rapid developments in renewables

October 19, 2023 | 8:57 pm

POSSIBLE adjustments to the Philippine Energy Plan are in the works, with the Department of Energy (DoE) acknowledging that developments in the power industry are taking place faster than anticipated.

Patrick T. Aquino, director of the DoE’s Energy Utilization Management Bureau, made the remarks to reporters on the sidelines of Philippine Electric Vehicle Summit on Thursday, after being asked whether the new plan will include higher renewable energy (RE) targets.

“As mentioned by (Secretary Raphael P.M. Lotilla), there might be slight adjustments, tweaks… I would like to reiterate the developments (in the energy sector) are happening faster than we envisioned,” Mr. Aquino said.

The current share of RE in the power generation mix is 29.3%, Mr. Aquino said, adding that the DoE is optimistic of achieving its RE growth targets.

The latest edition of the Philippine Energy Plan has a 35% target for RE share by 2030, with a 50% target set for 2040.

“We will do the necessary revisions, and work with private sector partners to reflect what is really happening. There are consultations ongoing,” he added.

The upcoming Philippine Energy Plan will seek to cover the years to 2050. The current plan only runs until 2040.

The DoE has said that it is considering a target of 2,400 megawatts for nuclear power capacity by 2035 when it issues the next energy roadmap. — Ashley Erika O. Jose

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