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Recycling beverage cartons

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In May 2022, Congress passed Republic Act (RA) 11898 to amend the law on solid waste management and make producers responsible over their products’ packaging waste. This was in response to the issue of what to do with products at the end of their life cycle. The law made manufacturers or producers, and not just consumers, also responsible for this.

RA 11898 “institutionalize[s] the extended producer responsibility mechanism as a practical approach to efficient waste management, focusing on waste reduction, recovery, and recycling, and the development of environment-friendly products.” The law requires “producers to be environmentally responsible throughout the life cycle of a product, especially its post-consumer or end-of-life stage.” It is in this context that I now raise the issue of producers’ seemingly limited capacity to locally recycle, particularly used beverage cartons or multi-layer “paper bottles.” Consumers are inclined to think that beverage cartons, being paper-based, are more friendly to the environment than plastic bottles. While this may be true, paper bottles are still not easy to recycle since they contain not only paper layers but also plastic and aluminum layers.

Given this, how can local producers effectively comply with the mandate of RA 11898 if they have limited capacity to undertake the local recovery, recycling, reuse, and proper disposal particularly of used beverage cartons? Locally, is there actually a way to make paper bottles even more environment-friendly in terms of both carbon footprint and recycling?

Studies indicate that paper bottles with plastic and aluminum layers take less energy to make than other beverage packaging. They are also light and space-efficient to transport because of their material and shape. And they can better store perishable items like milk, juices, soups, and sauces. Beverage cartons are thus great packaging, but they are difficult to recycle.

It is in this line that Plastic Action (PACT), in a paper, recommends the calibration of policies with respect to the use of beverage cartons or paper bottles. And the recommendation, particularly in Singapore, is to limit the use of beverage cartons only “to highly perishable food products.” This is given the fact that Singapore has no local recycling facility for used beverage cartons.

PACT was started by World Wildlife Fund-Singapore and is based on WWF’s No Plastic in Nature Initiative. According to WWF-Singapore, PACT is a business initiative that aims to reduce waste and move towards a circular economy. It pushes for science-based decisions for responsible production and consumption.

In what PACT refers to as a “Guidance Pack on Used Beverage Cartons” for Singapore, it said beverage cartons have “debatable recyclability,” and should thus be “reserved for highly perishable liquid foods that require the preservation of flavor and nutrient value, and benefits from a lengthened shelf-life.” For drinking water, plastic bottles could be retained, PACT said, noting that “plastics with recycled content would have a lower environmental footprint than beverage cartons.”

PACT added, “Beverage cartons should not be used as a replacement for drinking water plastic bottles, simply to accommodate consumers’ demand for plastic removal. The disposal of the beverage carton will also be a problem especially in Singapore’s waste management context.”

Moreover, “the intended design of the beverage carton would not contribute significantly to the shelf life of drinking water. Neither does drinking water require the preservation of flavors or nutrients.” In short, why use paper bottles for water when plastic will do just fine, for now.

PACT added, “Although beverage cartons are theoretically recyclable, their actual recyclability is debatable. This is because: Firstly, a beverage carton cannot be 100% recycled back to a new beverage carton. Secondly, the recovered materials from recycling are either downcycled or made into products that are unrecyclable. [And], although advances in recycling technology can improve the recyclability of beverage cartons, there are very few facilities with such advanced technology, raising the question of the term ‘recyclable’ from a country’s waste management context.”

PACT noted that Singapore does not have its own recycling facility for used beverage cartons, and the nearest one is in neighboring Selangor, Malaysia. But the Malaysian facility “is only able to recover paper [from used beverage cartons], while the remaining plastic and aluminum are downcycled into a composite material (a material that is made from at least two very different materials).”

I believe the Philippines can take the lead of PACT on this given the country’s limited capacity to undertake the recycling of used beverage cartons. I know only of Nestlé Philippines, Tetra Pak Philippines, Green Antz Builders, and JunkNot collecting used beverage cartons and repurposing them into durable materials for making tables and chairs.

While other producers are also getting into recycling, capacity is still limited. In this sense, if more local and imported products come in paper bottles or beverage cartons, just so to save on freight and limit plastic use, then much of their discarded packaging will still end up in landfills. Consumers also need to do their part in collecting, cleaning, and turning over their used cartons.

My concern is not so much the recyclability of beverage cartons but the Philippine capacity to do so. With proper facilities in place, paper bottles can in fact be recycled, with the paper, plastic, and aluminum content separated. But, until more facilities or more producers collect and recycle discarded cartons, we need to consider alternatives.

My call is that importers and local producers, in determining packaging for their products, should steer clear of materials that cannot be commercially recycled, reused, or repurposed. Meantime, they should also consider investing in facilities that can locally recycle, reuse, or repurpose the very packaging materials they produce.

While the priority is for producers to always use fully reusable packaging, this is easier said than done. An option, particularly for beverage makers, is to use recycled PET, or at least collect and recycle most of their PET or plastic bottle. As for those using beverage cartons or paper bottles, they need to initiate more programs to collect and recycle their used packaging products.

 

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

matort@yahoo.com

Treasury bureau looking to issue tokenized bonds within the year

BW FILE PHOTO

THE BUREAU of the Treasury (BTr) is looking to conduct a pilot test of tokenized bonds among government securities eligible dealers (GSED) within the year.

The BTr has not decided on the issue size, Deputy Treasurer Erwin D. Sta. Ana told reporters on Wednesday, but is looking at offering smaller denominations.

He said the denominations for the tokenized bonds could be lower than the P5,000 minimum investment for retail Treasury bonds.

Tokenized bonds are exchanged digitally through a blockchain.

The tokenized bonds use a value known as a token to take the place of the securities’ sensitive data and secure them.

Mr. Sta. Ana said in a speech at the Advancing the Philippines Bond Market Conference 2023 held on Wednesday that the BTr is working on issuing a total of two tokenized bonds.

The BTr is conducting an internal study on the tokenized bonds with inputs from government financial institutions to potentially implement tokenization for retail bonds and attract more digital investors.

“We’re currently studying it. We did the study to initially pilot it with institutional investors, with our GSEDs, and possibly the government institutions. Later on, once the proof of concept is okay, then we can venture into retail,” Mr. Sta. Ana said.

“We’d like to roll it out first to the institutional investors and then later on, to harness what this technology offers, which is to further enable fractional shares in terms of onboarding more digital investors,” he added.

He said that the BTr will announce the pilot tokenized bond offering soon.

The BTr is also planning to issue a sukuk and a retail dollar bond before the end of the year, he added.

“The BTr is trying to introduce Sukuk bonds through the LGU (local government unit) bonds financing framework. We have launched this as well. We have been speaking with LGU executives. We have seen interest from at least three, five first-class cities, so efforts are on the way,” Mr. Sta. Ana said.

The Sukuk bond issue would mark the Philippines’ debut in the Islamic bond market.

National Treasurer Rosalia V. de Leon said last week that the securities could be issued before the end of the year or in the first quarter of 2024. — A.M.C. Sy

Fungus and May downpours ravage Italy’s wine production

MIKA BAUMEISTER-UNSPLASH

SAN PAOLO DI CIVITATE, Italy — As Italy’s autumn grape harvest begins, winemakers are braced for a sharp drop in output after a rampant fungus ruined vines, thriving on drought followed by torrential spring rain.

The plasmopara viticola fungus, which causes a disease named grape downy mildew, destroyed vines in many Italian regions and will result in a 12% production loss nationwide versus last year, according to wine lobbies UIV and Assoenologi and agriculture institute ISMEA.

That means Italy is set to lose its position as the world’s top wine producer to France, which had ceded the crown nine years ago.

First found in the Americas some 190 years ago, the fungus thrives in warm, humid conditions which were common in Italy this year due to unusual heat and heavy downpours during the key month of May, when the grapes are forming.

Worst hit were regions along the Adriatic coast, with Abruzzo, known for its Montepulciano d’Abruzzo red, and Molise, losing 40% and 45% of their output respectively. Further south Puglia, famous for its Primitivo red, is down by 25%.

Paolo Niro, a small-scale grape farmer who cultivates 14 hectares around the Puglia town of San Paolo di Civitate, lost his entire crop.

“Early in May we realized there would be no harvest, we cultivate organically and experienced the (fungus) attack sooner,” he told Reuters.

Italian output is forecast to fall to below 44 million hectoliters this year, according to the wine lobbies and ISMEA, from 50 million last year.

A hectoliter is 100 liters, or 133 standard wine bottles.

Wine production in France is expected to fall 2% this year to just below 45 million hectoliters, with major disparities between regions after some vineyards were severely hit by fungal diseases while good weather in other regions boosted potential output, the French farm ministry said last week.

SOUTH BEARS BRUNT
Plasmopara viticola, which attacks the vines’ leaves and the fruit, is historically more prevalent in the rainy regions of northern Italy. This year, however, the north emerged almost unscathed, losing just 0.8% of output.

The center and south, on the other hand, were hit hard as prolonged periods of drought were interspersed with intense rain, particularly during May, damaging crops and agricultural infrastructures, and favoring the fungus.

“The plants are the most vulnerable during the pre-flowering, flowering, and early fruiting stages,” said Andrea Luvisi, professor of phytopathology at the University of Salento in Puglia.

Thanks to heavy rains and humidity, the fungus was able to attack the vines during these vulnerable periods, he added.

The Italian government last month allocated a modest one million euros to help grape producers hurt by downy mildew. The Puglia farmer Mr. Niro, who employs 25 permanent workers, said he alone expected lost income of 110,000 euros ($117,128.00).

Fazil Dusunceli, agriculture officer at the United Nations Food and Agriculture Organization (FAO), based in Rome, said global warming was causing more frequent extreme climate events that threaten vineyards, and contingency plans were needed.

Italy has already registered 2,664 extreme events so far this year, including heavy rain and large hail, according to the European Severe Weather Database (ESWD) — against 3,192 for the whole of 2022 and just 787 recorded 10 years ago.

Mr. Dusunceli called for more investment in new, disease-resistant strains of grape, saying he was sure this year’s plasmopara attack “will force many farmers to look for other types of varieties.” — Reuters

Century Pacific Food’s plant-based brand expands reach and offerings

CENTURY PACIFIC Food, Inc. (CNPF) continues to boost its global presence as its plant-based food brand recently entered Australia and launched new offerings in the United States.

In a stock exchange disclosure on Wednesday, the listed food and beverage firm said its unMEAT brand is now available in Australia via supermarket chain Woolworths.

“Woolworths, Australia’s largest supermarket chain, now carries unMEAT in 960 stores nationwide. The brand is likewise available on the retail giant’s e-commerce platform. unMEAT entered the chain with its range of plant-based luncheon meat in shelf-stable format, all priced at parity to luncheon meat analogs,” it said. 

CNPF Executive Vice-President and Chief Operating Officer Gregory Francis H. Banzon said plant-based food consumption in Australia is increasing, with one in three Australians “consciously reducing meat consumption.”

In the US, CNPF is now offering more unMEAT products as Walmart added meat-free chili with beans, chicken-style chunks, and roast beef to the items being sold on the retailer’s shelves.

Earlier in the year, CNPF’s unMEAT luncheon meat debuted in about 1,800 Walmart stores. 

“The thesis behind plant-based alternatives remains. Consumers want healthier and more planet-forward food choices. As a food company, we need to address these needs through innovation and reduce friction by making options more affordable and accessible,” Mr. Banzon said.

Currently, CNPF’s unMEAT brand is carried by retailers such as Walmart, Albertsons, Harris Teeter, HEB, and Meijer in the US; Carrefour in the UAE; and FairPrice in Singapore.

“Developing the plant-based alternatives category requires innovation, not just of the protein source but also the variety. Apart from reducing the price friction, we need to give consumers more points of entry through a wider select,” Mr. Banzon said. 

CNPF entered the plant-based sector in 2020 with the institutional launch of unMEAT via its affiliate company, Shakey’s Pizza Asia Ventures, Inc., which was then followed by the launch of its frozen range in the local retail market in 2021. 

The brand also began its international rollout in 2021 as it expanded to the United Arab Emirates, the United States, Singapore, and China.

In the first half of the year, CNPF’s net income climbed 8% to P3.19 billion as its revenues improved 7% to P33.44 billion. 

On Wednesday, shares of CNPF at the local bourse rose P1.40 or 4.83% to finish at P30.40 apiece. — Revin Mikhael D. Ochave

Transformation of the mind

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(This piece is in commemoration of International Peace Day on Sept. 21.)

SUSTAINABLE PEACE and “dividends of peace,” particularly in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), are key for growth and development. Among the key actions that have significantly aided in setting the region’s trajectory towards peace and growth are the signing of a peace deal between the government of the Philippines and the Moro Islamic Liberation Front (MILF) in 2014, the subsequent approval of the Bangsamoro Organic Law by the Congress in 2018, and the establishment of the Bangsamoro Transition Authority (BTA) in 2019.

But while these important agreements are pivotal, the region’s full potential can only be fully realized when its key leaders, some of whom were former revolutionaries, are able to implement an inclusive vision for peace and sustainable development — one that is rooted in the pursuit of moral governance and sustainable development.

In March 2020, the School of Peace and Democracy-Bangsamoro or SPD-Bangsamoro was launched through the collaboration of the Bangsamoro Government, the United Nations Development Program (UNDP) Philippines, and the Australian Embassy in the Philippines. SPD-Bangsamoro was founded on the belief that one of the most important transformations for peace is that of the mind. Under this belief, the program provided MILF commanders and community leaders an opportunity to play civilian leadership roles. The SPD-Bangsamoro sought to support the Bangsamoro Government and accompany the transformation from armed struggle to civilian socio-political leadership and to mainstream the transitioning combatants into socio-political inclusion and participation.

The SPD-Bangsamoro continued its implementation from 2022 to 2023, under the leadership of the Peace, Security and Reconciliation Office (PSRO) and the Development Academy of the Bangsamoro (DAB), with an enhanced curriculum composed of three phases focused on personal and community resilience, conflict resolution and mediation, leadership and social movement building.

Recently, close to 200 top leaders of the MILF completed the SPD-Bangsamoro and have now been organized into four tracks according to their specialization. The SPD-Bangsamoro fully supports the implementation of the Comprehensive Agreement on the Bangsamoro (CAB) and under this stage, strongly featured the meaningful and substantive participation of women leaders. Out of those who graduated from the program, there were a total of 44 women leaders from the MILF. UNDP Philippines is honored to able to accompany former MILF combatants and community leaders in this journey through the SPD-Bangsamoro.

Testimonials from those who graduated from the program show that the experience equipped participants to value their past efforts for social justice and empowerment, and to envision themselves continuing these struggles through peaceful means. They feel empowered in a new way to continue the struggle for peace and development.

The message of SPD-Bangsamoro is clear: that lasting peace and sustainable development cannot be achieved without addressing the intangible factors that contribute to conflict and instability. Hope, resilience, empowerment and social cohesion are factors that are all interrelated, and they all play a role in creating a sense of belonging and purpose, which is essential for peace and development.

While the agreements in the past decade are pivotal, it is ultimately the personal and social transformation that will determine the strength of our joint commitment for peace.

 

Dr. Selva Ramachandran is the UNDP Philippines resident representative.

Multi-country initiative seen to boost cybersecurity practices, infrastructure

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A MULTI-COUNTRY initiative is expected to boost cybersecurity infrastructure and practices in the Philippines, according to experts.

The ASEAN-Japan Cybersecurity Community (AJCC), which the Philippines is a member of, aims to leverage regional partnerships through international conferences to sustain an information security and cybersecurity community of practices.

“It is about time that a multi-country approach spearheaded by communities of practice will join hands to fight against cybercriminals,” Sam Jacoba, founding president of the National Association of Data Protection Officers of the Philippines and conference chair of the CyberSecConPH, said during a press conference.

“We can only strengthen the cybersecurity community if it is built on collaboration, cooperation, communication, and contribution,” said Angel “Lito” S. Averia, Jr., president of the Philippine Computer Emergency Response Team (PhCERT).

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

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

The Philippines will be represented by 20 cybersecurity experts and entrepreneurs at the International Conference on the AJCC in Tokyo, Japan on Oct. 5-6.

Rudi Lumanto, founder and advisor of the Indonesia Network Security Association, said a strong government mandate and increased public education are pillars of best cybersecurity practices.

“Everybody has a responsibility to educate themselves and the people around them,” Mr. Lumanto said.

Seiichi Ito, chair of the international relations committee at the Japan Network Security Association, said governments must focus on enhancing the power to develop and protect critical infrastructure for cybersecurity.

“The gap between the government and communities is quite high,” Mr. Ito said on the primary challenge of cybersecurity, citing the need for capacity building and information sharing at the national level.

Mr. Jacoba suggested benchmarks for industry best practices, like how much should be spent on infrastructure and what kind of training must be done to manage protection, among others.

NATIONAL CYBERSECURITY
Meanwhile, Mr. Averia pushed for the implementation of minimum information security standards for both the public and private sector, in response to the resurgence of text message scams.

“The problem is that the adoption of ISO (International Organization for Standardization) 27001 or any other ISO standards is very expensive,” he said on implementing ISO-certified standards for information security management systems.

He noted that it will take the Philippines a long time to comply with international standards and frameworks.

Mr. Jacoba said the Philippines needs at least about 108,000 chief information security officers (CISOs) among registered establishments, assuming that only 10% of the 1.08 million businesses listed by the national statistics agency are critical to the lives of Filipinos.

“Actually, you don’t just need one (CISO),” he said on the urgency of collaborative cybersecurity solutions in the country. “You need a team to look after your infrastructure, ecosystem, and solutions.”

Mr. Averia said mandatory reporting mechanisms for companies must be strengthened.

“We have been pushing for them to share breaches at the technical level so we can learn,” he said.

“Cybersecurity used to be an IT issue,” he added. “We have to go beyond that mindset,” he added. “Cybersecurity is now everybody’s responsibility, cutting across organizations — from senior management all the way down to the smallest user.” — Miguel Hanz L. Antivola

CIMB sees revenues rise by 240% in the first half

CIMB.COM

CIMB BANK Philippines, Inc. (CIMB Bank PH) saw its revenues grow by 240% in the first six months of the year, driven by an increase in loan disbursements.

The bank’s loan portfolio went up by 150% year on year in the first half, CIMB Bank PH said in a statement on Wednesday.

“This sustained growth puts CIMB in a stronger position to support our customers by helping them achieve their life purpose and goals. We would like to thank them for their unwavering support, and rest assured that we have more exciting products and services in the pipeline, as well as new areas and segments to serve in the near horizon,” CIMB Bank PH Chief Executive Officer Vijay Manoharan said.

The bank’s customer base grew to 7.13 million at end-June from 6.47 million, with the deposit customer count rising to 6.02 million from 5.7 million.

Meanwhile, loan customers grew by 40% year on year at end-June, breaching 2.56 million, CIMB Bank PH said.

“CIMB also saw an increase in debit card transactions and usage, due to the launch of the CIMB Virtual Debit Card,” the bank said.

“The virtual cards reinforce the bank’s embedded banking business model in providing accessible financial solutions to Filipinos and are in alignment with the Bangko Sentral ng Pilipinas (BSP) in strengthening customer preference for digital payments,” it added.

The BSP wants to digitize 50% of the volume and value of retail transactions and to have 70% of Filipino adults be part of the formal financial system by the end of this year.

CIMB Bank PH said it currently has close to 500,000 virtual and physical Visa card customers. 

The bank added that it will be announcing new partnerships “soon” in addition to its current partnerships with GCash and Visa, and will also announce plans to expand to new customer segments. — AMCS

China’s Moutai launches boozy chocolates with Dove in diversification drive

MAOXIAOLING liquor-filled chocolate, made by China’s luxury liquor brand Kweichow Moutai in collaboration with Mars, Inc.-owned Dove, is officially launched in Shanghai, China on Sept. 16, 2023. — REUTERS

SHANGHAI — Chinese luxury liquor-maker Kweichow Moutai is again looking to diversify from its fiery baijiu spirit core business to attract a new generation of consumers via a sweet collaboration with Mars, Inc.-owned Dove.

The companies jointly announced last week that they would release limited edition alcohol-infused chocolates, available starting last weekend.

Within an hour, a hashtag about the collaboration had leapt to the top of the trending topics list on China’s Weibo social media platform.

This announcement comes only 10 days after the launch of a baijiu-infused latte from Moutai and domestic Starbucks rival, Luckin Coffee, which generated enormous interest online and sold out in cities around China.

“This demonstrates Moutai’s desire to broaden their appeal more to younger consumers,” said Jason Yu, greater China managing director of market research firm Kantar Worldpanel. “They fear their current base is too concentrated on older consumers and that makes them worry about the future of the brand.”

Moutai, known as the national liquor of China, is a potent, colorless spirit that is usually served at banquets.

The company, based in China’s southwestern Guizhou province, began its run of collaborations last year with domestic dairy Mengniu. The resulting series of alcohol-infused ice-creams also caused a stir among Chinese consumers.

In part, the attraction for younger Chinese of these quirky product tie ups lies in the novelty of buying into the Moutai brand for a small fraction of the cost of buying a bottle of its liquor, which has an average market price of 1,499 yuan ($206) for 500 mls. — Reuters

Filinvest Land begins construction of Futura One n Dagupan 

FILINVEST LAND, Inc. (FLI) has started the construction of its Futura One residential project in Dagupan City as part of the property developer’s plan to boost its presence in Northern Luzon.

In a statement on Wednesday, FLI said Futura One is a 2.3-hectare low-density condominium community under the Futura by Filinvest brand. The development will have seven medium-rise buildings each at eight storeys high.

Futura One’s unit range consists of studio (22 square meters) and two-bedroom (32 square meters) layouts, priced as low as P3.09 million and P4.33 million, respectively.

The development is located within the Fora Dagupan business hub along the Dagupan-Binmaley Road.

“We are thrilled to kick-start construction on Futura One, our first project in North Luzon, right here in Dagupan City — ‘The Diamond City of the North.’ With Futura One, we reaffirm our commitment to provide exceptional living spaces and create communities that reflect our ‘Dreams Built Green’ vision,” said Aven D. Valderrama, FLI first vice-president, medium-rise buildings brand and product head.

“Together with the local government and the community, we look forward to fostering a prosperous and sustainable future for Dagupan City,” she added.

According to FLI, the residents of Futura One will have access to various institutions and establishments such as CSI Mall Dagupan, Rufina Square, Dagupan Orthopedic Center, Dominican School, Lyceum-Northwestern University, Akia Superstore, and Luzon Medical Center.

FLI said 69% of Futura One is dedicated to open spaces, one of the highest among its properties, and “refreshing” amenities such as a clubhouse, adult and kiddie pool, fitness center, and children’s play areas.

In the first half of the year, FLI posted a 15% jump in its attributable net income to P1.39 billion amid higher revenues.

On Wednesday, FLI shares fell one centavo or 1.54% to end at 64 centavos apiece. — Revin Mikhael D. Ochave

Philippines slips in Global Attractiveness Index

The Philippines slid a notch to 74th out of 146 countries in the Global Attractiveness Index (GAI) 2023, produced by The European House – Ambrosetti. The index measures the attractiveness of countries using four indicators: dynamicity, sustainability, growth expectations, and conflict exposure. The country got an overall GAI score of 37.4 with an attractiveness category of “medium-low.”

Philippines slips in Global Attractiveness Index

Power generation mix and fiscal irresponsibility

ANDREY METELEV-UNSPLASH

Last week the Independent Electricity Market Operator of the Philippines (IEMOP) released the market operations highlights for the August 2023 Wholesale electricity spot market (WESM) results. The power supply in the Luzon grid was rising while demand was falling that month, leading to high reserve margins and hence, lower prices — only P4.12/kWh for the September billing from an average of P5.54/kWh in June and July. Good.

POWER GENERATION MIX
The generation mix shows the continued important role of coal power to avoid blackouts nationwide. The average coal use for June to August was about 61% of total power generation, while the favored intermittent solar and wind combined contributed only about 2.8% of total generation (see Table 1).

Among the recent developments in the energy sector as published in BusinessWorld and reported by Sheldeen Joy Talavera were: “Electricity spot prices fall in Luzon, Visayas in early September” (Sept. 14); “DoE signals annual review of power firms’ use of energy storage systems” (Sept. 14); “Meralco plans to invest in electric cooperatives” (Sept. 15); “NGCP secures regulatory nod on ancillary services” (Sept. 15); “DoE wants reserve power spot market to start commercial operations by Dec.” (Sept. 17); “Energy dep’t preparing airlines for sustainable fuel phase-in by 2027” (Sept. 18); and, “DoE floats scheme allowing proponents to identify potential biomass, WTE sites” (Sept. 19).

The good news is that private distribution utilities (DUs) like Meralco will invest in, and I hope someday will take over, the operation of electricity distribution in many provinces. Electric cooperatives are non-corporate entities monitored and even pampered by a political body, the National Electrification Administration (NEA). Private corporate DUs on the other hand are strictly monitored by the Securities and Exchange Commission (SEC).

RICE PRICES AND SOLAR FARMS
About high rice prices, not yet on the radar of public discourse is the role of many solar farms. Currently, thousands of hectares of agricultural lands — including rice farms — have been converted or are soon to be converted into solar farms. The average yield or productivity of Philippine rice is 4.1 tons/hectare per year, 4.5 tons/hectare for irrigated lands, and 3.3 tons/hectare for non-irrigated lands.

Solar land requirements on average are around 1.3 hectares/MW. So, a 200-MW solar plant will require about 260 hectares of land, or about 1,066 tons (4.1 tons/hectare x 260 hectares) of rice which will be gone from Philippine annual production, permanently.

To lower rice prices, our rice land should expand and/or yield per hectare must rise significantly. With the continued reduction of rice land partly due to conversion to solar farms, we can expect that future rice prices will remain elevated.

FISCAL IRRESPONSIBILITY AND RISING 10-YEAR GOVERNMENT BONDS
Meanwhile, the US and industrial West continue with their fiscal irresponsibility through profligate overspending and high borrowings. US 10-year government bonds are now at a 16-year high while Japan’s are at a 10-year high. China so far is avoiding this trend (see Table 2).

High government bond rates mean high annual interest payment for those borrowings. We should rein in public spending and borrowings whenever possible while encouraging more businesses and job creation that pay various taxes to the government.

The military and uniformed personnel (MUP) pension reform bill passed by the House of Representatives has institutionalized that system as a major deficit generator yearly, a big and burdensome cost for taxpayers yearly. No thanks to the hard lobbying by the MUP camps, and no thanks to various professional and business organizations that were so brave to publicly criticize the Maharlika Fund as a public finance issue, but which are so silent or too cowardly to speak up on the MUP pension which is a much, much bigger public finance issue. I have little respect for them.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers

minimalgovernment@gmail.com

Philippines hit by most cyberattacks in Southeast Asia

PHILSTAR FILE PHOTO

THE PHILIPPINES has been hit by the highest number of cyberattacks in Southeast Asia this year, prompting organizations to automate and prevent future incidents, according to a report.

Businesses have had to double down on their operational technology security for critical infrastructure amid an increase in attacks, Steven Scheurmann, ASEAN vice-president at Palo Alto Networks (PANW), said in a press briefing on Wednesday.

The PANW 2023 State of Cybersecurity ASEAN report said 29% of Filipino organizations experienced an increase in cybersecurity-related incidents of 50% or more, with 51% feeling that they are at high risk from threats.

The cyberattacks affecting businesses in the country included malware (66%), phishing and spear phishing attacks (63%), and password attacks (56%), the report said.

Organizations now need to find more extensive cybersecurity solutions due to the growth in digital transactions, which could expose their corporate network, PANW said.

“We have to be in a position to prevent a cyber incident,” Mr. Scheurmann said. “Automation allows us to deal with all of the data being collected and all the potential risks out there.”

“This allows security analysts to be proactive by creating black swan events to prepare for the incidents before it happens.”

The report noted that 90% of Filipino organizations said they are confident about their adopted security measures, but small and medium businesses have limited and relatively weaker resources to improve their cyber defenses.

Cloud security adoption (44%), identity and access management (44%), and a security orchestration, automation, and response strategy (41%) were among the top strategies used by Philippine organizations to boost their defenses.

Companies also implement a unified operational technology and information technology strategy (75%).

Large businesses in the country are including cybersecurity in monthly boardroom discussions (56%), steady from last year, with 68% also increasing their cybersecurity budget.

Increasing digitalization (53%), adapting to new regulations on stricter data privacy (48%) and optimizing operations (44%) were seen as main drivers of the budget increases.

Artificial intelligence (AI) integration is seen as the leading security technology that businesses consider, with 54% looking at the potential of machine learning, predictive analytics, voice recognition, and sentiment analytics in strengthening security measures in the next one to two years.

“AI is important for us to secure the Philippines and have a better security posture,” said Oscar Visaya, Philippine country manager at PANW. “We need to relook at our cybersecurity strategies — as companies, as a country, and as individuals.”

“Companies, specifically those aggressively digitalizing, have to sit down all their teams and talk about how they can go about cloud security in a more automated and orchestrated way,” Mr. Visaya said. “Taking a proactive approach to cybersecurity is the need of the hour, which will need an all-hands-on-deck initiative with active participation from everyone within the organization.” — M.H.L. Antivola