Construction of the world’s biggest radio astronomy facility, the SKA Observatory, begins today. The observatory is a global project 30 years in the making.
With two huge two telescopes, one in Australia and the other in South Africa, the project will see further into the history of the Universe than ever before.
Astronomers like me will use the telescopes to trace hydrogen over cosmic time and make precise measurements of gravity in extreme environments. What’s more, we hope to uncover the existence of complex molecules in planet-forming clouds around distant stars, which could be the early signs of life elsewhere in the Universe.
I have been involved in the SKA and its precursor telescopes for the past ten years, and as the chief operations scientist of the Australian telescope since July. I am helping to build the team of scientists, engineers and technicians who will construct and operate the telescope, along with undertaking science to map primordial hydrogen in the infant universe.
The SKA Observatory is an intergovernmental organization with dozens of countries involved. The observatory is much more than the two physical telescopes, with headquarters in the UK and collaborators around the world harnessing advanced computers and software to tailor the telescope signals to the precise science being undertaken.
The telescope in South Africa (called SKA-Mid) will use 197 radio dishes to observe middle-frequency radio waves from 350 MHz to more than 15 GHz. It will study the extreme environments of neutron stars, organic molecules around newly forming planets, and the structure of the Universe on the largest scales.
The Australian telescope (SKA-Low), in Western Australia, will observe lower frequencies with 512 stations of radio antennas spread out over a 74-kilometre span of outback.
The site is located within Inyarrimanha Ilgari Bundara, the CSIRO Murchison Radio-astronomy Observatory. This name, which means “sharing sky and stars”, was given to the observatory by the Wajarri Yamaji, the traditional owners and native title holders of the observatory site.
After decades of planning, developing precursor telescopes and testing, today we are holding a ceremony to mark the start of on-site construction. We expect both telescopes will be fully operational late this decade.
Each of the 512 stations of SKA-Low is made up of 256 wide-band dipole antennas, spread over a diameter of 35 meters. The signals from these Christmas-tree-shaped antennas in each station are electronically combined to point to different parts of the sky, forming a single view.
These antennas are designed to tune in to low radio frequencies of 50 to 350 MHz. At these frequencies, the radio waves are very long – comparable to the height of a person – which means more familiar-looking dishes are an inefficient way to catch them. Instead the dipole antennas operate much like TV antennas, with the radio waves from the Universe exciting electrons within their metal arms.
Collectively, the 131,072 dipoles in the completed array will provide the deepest and widest view of the Universe to date.
They will allow us to see out and back to the very beginning of the Universe, when the first stars and galaxies formed.
This key period, more than 13 billion years in our past, is termed the “cosmic dawn”: when stars and galaxies began to form, lighting up the cosmos for the first time.
The cosmic dawn marks the end of the cosmic dark ages, a period after the Big Bang when the Universe had cooled down through expansion. All that remained was the ubiquitous background glow of the early Universe light, and a cosmos filled with dark matter and neutral atoms of hydrogen and helium.
The light from the first stars transformed the Universe, tearing apart the electrons and protons in neutral hydrogen atoms. The Universe went from dark and neutral to bright and ionized.
The SKA Observatory will map this fog of neutral hydrogen at low radio frequencies, which will allow scientists to explore the births and deaths of the earliest stars and galaxies. Exploration of this key period is the final missing piece in our understanding of the life story of the Universe.
Closer to home, the low-frequency telescope will time the revolutions of pulsars. These rapidly spinning neutron stars, which fire out sweeping beams of radiation like lighthouses, are the Universe’s ultra-precise clocks.
Changes to the ticking of these clocks can indicate the passage of gravitational waves through the Universe, allowing us to map these deformations of spacetime with radio waves.
It will also help us to understand the Sun, our own star, and the space environment that we on Earth live within.
These are the things we expect to find with the SKA Observatory. But the unexpected discoveries will most likely be the most exciting. With an observatory of this size and power, we are bound to uncover as-yet-unimagined mysteries of the Universe. – Reuters
TAIPEI – The chair of the British parliament‘s defense select committee said there is “much to explore” in boosting military help for Taiwan and that he had discussed the island’s submarine program while visiting Taipei last week.
Britain, like most countries, has no formal diplomatic ties with democratically governed and Chinese-claimed Taiwan but has stepped up its support for the island in the face of a rising military threat from Beijing, as have other Western nations.
While the United States is Taiwan‘s most important foreign source of weapons, British companies have been helping develop Taiwan‘s new fleet of domestically built submarines.
Asked whether Britain should help support Taiwan militarily, whether with weapons or intelligence sharing, Tobias Ellwood said: “Yes – very much so”.
Referencing British Prime Minister Rishi Sunak’s comments last month that the “golden era” of relations with China was over, Ellwood added: “There is much to explore here”.
“I will endeavor to bring my Committee back in May to look at this in more detail,” he said in response to emailed questions.
Ellwood, who is a senior lawmaker from the ruling Conservative Party and a former defense minister, said he had also discussed Taiwan‘s indigenous submarine program on his trip, but added he needed to learn a little more about it before saying anything publicly.
While in Taipei, Ellwood met President Tsai Ing-wen, Foreign Minister Joseph Wu and Wellington Koo, head of Taiwan‘s National Security Council.
He said Britain should have greater military and security interaction with Taiwan, which security sources have said largely happens behind closed doors, and should be braver in supporting Taiwan internationally.
“Britain has stepped forward, more so than other nations, in helping Ukraine. Other nations then followed. There should be nothing preventing us doing the same again with Taiwan,” Ellwood said.
“There are so many lessons to be drawn from our timidity in Ukraine. The economic and security fallout is privately making many Western leaders realize the folly of not preventing the invasion in the first place.” – Reuters
US Secretary of State Antony Blinken. Official White House — CAMERON SMITH VIA FLICKR
WASHINGTON – The US plans to work closely with Israel‘s new government, Secretary of State Antony Blinken told a left-leaning Jewish group in Washington on Sunday, and continues to support a two–state solution to end the decades-long conflict with Palestinians.
The US administration expects “the new Israeli Government to continue to work with us to advance our shared values, just as we have previous governments,” Blinken told the nonprofit J Street liberal advocacy group. “We will gauge the government by the policies it pursues rather than individual personalities,” he said.
“Security assistance to Israel is sacrosanct,” Mr. Blinken said, noting the more than $3 billion the US provides to Israel in foreign military funding.
Last week, Israeli Prime Minister-designate Benjamin Netanyahu reached a coalition deal with the far-right Religious Zionism party, which opposes Palestinian statehood and supports extending Israeli sovereignty into the West Bank.
Itamar Ben-Gvir, who was convicted in 2007 of racist incitement against Arabs and backing a group considered by Israel and the United States to be a terrorist organization, is Israel‘s new security minister, with responsibility for Border Police in the occupied West Bank.
President Joe Biden remains committed to “realizing the enduring goal of two states,” Mr. Blinken said. “We believe Palestinians and Israelis, like people everywhere, are entitled to the same rights and the same opportunities.”
The US “will also continue to unequivocally oppose any acts that undermine the prospects of a two–state solution,” Mr. Blinken said, including settlement expansion, moves toward annexation of the West Bank, disruption to the historic status quo at holy sites, demolitions and evictions, and incitement to violence. – Reuters
LONDON/DUBAI – OPEC+ agreed to stick to its oil output targets at a meeting on Sunday as the oil markets struggle to assess the impact of a slowing Chinese economy on demand and a G7 price cap on Russian oil on supply.
The decision comes two days after the Group of Seven (G7) nations agreed a price cap on Russian oil.
OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, angered the United States and other Western nations in October when it agreed to cut output by 2 million barrels per day (bpd), about 2% of world demand, from November until the end of 2023.
Washington accused the group and one of its leaders, Saudi Arabia, of siding with Russia despite Moscow’s war in Ukraine.
OPEC+ argued it had cut output because of a weaker economic outlook. Oil prices have declined since October due to slower Chinese and global growth and higher interest rates, prompting market speculation the group could cut output again. O/R
But on Sunday the group of oil producers decided to keep the policy unchanged. Its key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.
On Friday, G7 nations and Australia agreed a $60 per barrel price cap on Russian seaborne crude oil in a move to deprive President Vladimir Putin of revenue while keeping Russian oil flowing to global markets.
Many analysts and OPEC ministers have said the price cap is confusing and probably inefficient as Moscow has been selling most of its oil to countries like China and India, which have refused to condemn the war in Ukraine.
Neither an OPEC meeting on Saturday nor the OPEC+ meeting on Sunday discussed the Russian price cap, sources said.
Russia’s Deputy Prime Minister Alexander Novak said on Sunday Russia would rather cut production than supply oil under the price cap and said the cap may affect other producers.
Sources have told Reuters several OPEC+ members have expressed frustration at the cap saying the anti-market measure could ultimately be used by the West against any producer.
JP Morgan said on Friday that OPEC+ could review production in the new year based on fresh data on Chinese demand trends and consumer compliance with price caps on Russia crude output and tanker flow. – Reuters
From left to right: Magellan Fetalino III, head of Alternative Finance and Innovation Garage, UBX Philippines Corp. and Trustee of Fintech Alliance.PH; Martha Borja, country head, Grab Financial Group-Philippines and Trustee of Fintech Alliance.PH; Edison Tsai, executive director, SeedIn Technology and Trustee of Fintech Alliance.PH; Obaid Alshehi, first secretary, UAE Embassy to the Philippines; His Excellency Tull Traisorat, Ambassador of the Kingdom of Thailand to the Philippines; Lito Villanueva, founding chairman, Fintech Alliance.PH, EVP & Chief Innovation and Inclusion Officer, RCBC Chief Digital Transformation Advisor, YGC, chairman, Alliance of Digital Finance Associations; Her Excellency Titanilla Tóth, Ambassador of Hungary to the Philippines; His Excellency Gerard Ho Wei Hong, Ambassador of Singapore to the Philippines; His Excellency Peter Kell, Ambassador of New Zealand to the Philippines; His Excellency Ilan Fluss, Ambassador of Israel to the Philippines; Victor Aliwalas, CEO, Multisys Technologies Corp.; Allen Guo, country head of Philippines, Alibaba Cloud Intelligence; Imelda Tiongson, chairperson, Pru Life UK & Trustee, Fintech Alliance.PH; and Christina Stieber, commercial counsellor, Austrian Embassy to the Philippines
Fintech Alliance.PH, in cooperation with Enderun Conferences, recently hosted the second edition of Inclusion and Digital Transformation (INDX) Summit last Nov. 22-23, 2022 at the Enderun Tent in McKinley Hill, Taguig City. The event was attended by hundreds of industry practitioners involved in finance and technology locally and internationally, and was participated by some of the country’s highly-esteemed regulators, government officials, economic policy makers, thought leaders, and members of the diplomatic corps.
The goal of the INDX Summit 2.0 was to discuss challenges concerning the digital divide between standards and regulations in e-commerce, health, agriculture, education, MSMEs, open banking, insurance, AI, and the new technologies, among others. It also discussed how Filipino consumers and businesses can use digital technology and digital transformation to deal with the current environment, advance economic recovery, and get back on track in achieving long-term financial goals.
“This monumental event is the gathering of the Philippines’ visionaries and trailblazers. The past two years have been golden for the fintech industry in the Philippines and throughout Southeast Asia. It is only fitting that we reflect on our successes and welcome promising years to come,” said Lito Villanueva, founding chairman of the FinTech Alliance.PH and the executive vice-president and chief innovation and inclusion officer of RCBC.
Statistical Review
According to the Philippine Statistics Authority, the value of the digital economy in the Philippines increased by 7.8% and reached P1.87 trillion in 2021. E-commerce erupted through the pandemic and continued to grow post-lockdown. Online selling transformed from being a side job to becoming a primary source of income. The main drivers of the digital economy, which contributed to 9.6% of the nation’s GDP of the same year, includes digital infrastructure, e-commerce, and digital content.
Figure 1. Gross Value Added (GVA) and Percent Share of Digital Economy to GDP at Current Prices, 2018-2021 — Source: Philippine Statistics Authority
In addition, the ASEAN digital economy has expanded more quickly as a result of the digital boom. According to Google, Temasek Holdings Pte., and Bain & Co., it is anticipated that the internet space will receive US$200 billion and a total value of transactions this year, exceeding the projected target three years earlier than anticipated. However, given these outstanding outcomes, it’s important to keep an eye out for early indications of concerns. As a result, fewer people are using the internet from 10% in the preceding year to only 4% in 2022.
There are also numerous challenges and societal deficits associated with the digital divide. One example is the lack of proper infrastructure. Affordability is also a challenge, owing to a lack of competition and investment. There is also the issue of intimidation, the presence of loan sharks, and a lack of trust in the system, which has prevented businesses from fully embracing a more digitized economy.
The Philippine Economic and Digital Roadmap
From looking at the macro point-of-view, the Bangko Sentral ng Pilipinas (BSP) specifically observed significant progress towards achieving its targets under the Digital Payments Transformation Roadmap 2023 where moving out of cash results in greater efficiency. BSP Governor Felipe M. Medalla stated that “in order to digitize more peer-to-business and business-to-business payments, the BSP collaborates with the payments industry to launch new innovative payment streams.” These are anchored into three pillars such as digital payment streams, digital finance infrastructure, and digital governance and standards. The goal is to make 50% of total retail volume become digital and 70% of Filipino adults become financially included. “To go digital, you will become more efficient. It’s going to be beautiful in the coming years,” he added.
For Finance Secretary Benjamin E. Diokno, “The COVID-19 pandemic has redefined what we considered to be ‘business as usual’ [and] it also presented an opportunity for economists around the world to quicken the pace towards a more digital economy. Although there are strides to adapt to the new normal, there is still much to be done before it is able to reach the goals.”
It is critical to expertly navigate through the pressing global challenges posed by the volatile political landscape. To address these issues, the government developed a set of strategic interventions known as the 8-Point Socioeconomic Agenda. “We will address the impact of inflation and the vulnerable sectors, reduce economic scarring from the pandemic, and ensure some macroeconomic fundamentals,” Mr. Diokno explained.
Philippines Through Digital Transformation and Inclusion
Both the government and the private sector should build a rapport in leading the digital transformation in the country. Leaving it solely to the government wouldn’t be economically feasible. GCash President & CEO Martha Sazon justified that “Digitalization or digital economy is a very complicated value chain. It starts from internet connectivity, device availability, and the various regulators around it, and into our space — fintech, e-commerce, and the various economic services. In the complete value chain, you have the government in each and every step. But you have different private sectors participating in it. While we may provide advanced technology, best practices from our partners and execution, we need the partnership from the government to make it easy for us to participate and to increase the penetration.”
Indeed, as the Philippines transitions to a new digital economy, the government highly supports the fintech industry and is moving in a positive direction by imposing standards and regulations. During the speech of Senator Mark A. Villar in the INDX Summit, he stated that “[although] the pandemic has revealed and brought urgency to necessary reforms in public health, social safety nets, disaster response, and rural development, among others, what reinforces all these reforms is the digital imperative. Going digital is the way and the key.”
Mr. Villar, who also acts as the chairman of the Senate Committee on Banks, Financial Institutions and Currencies, has filed Senate Bill No. 1128 or An Act Promoting the Adoption of Digital Payments for Financial Transactions of the Government and All Merchants, and Resolution No. 126 directing the appropriate Senate committee to conduct an inquiry in aid of legislation on the status of regulations by the Banko Sentral ng Pilipinas and other relevant government agencies concerning cryptocurrencies and other digital currencies in the Philippines.
“We are ready to support further innovations for the more efficient, convenient, and secured use of digital assets, as well as to legislate to ensure that digital transactions are duly protected. Our hopes for a more equitable and successful post-COVID society involve the establishment of crucial digital economy pillars such as robust digital infrastructure, digital skills, e-government, e-commerce, and an enabling legislative and regulatory environment,” said Mr. Villar.
Conclusion
The INDX Summit 2.0 was capped by the Fintech Alliance Ambassador’s Gala, which brought together key heads of missions and other international development agencies as well as regional and global partners. Albay Second District Rep. Joey Salceda, who is also the committee chair for Ways and Mean, culminated the event with a keynote speech where he addressed how “Technology has always been at the heart of finance.”
As the first champion in Congress of the Virtual Banking Act, the Fair and Inclusive Credit Act, the Financial Technology Development Act, the Blockchain Technology Development Act, as well as the parametric insurance for government assets which equalizes risk among LGUs, among others, Mr. Salceda explained, “Digital financial technology must be trustworthy. With more digitalization of finance comes the digitalization of the most predatory practices in the sector, and its underground mutations. Technology can do so much, but its aim must be to create value and virtue in society. The Philippines abounds in problems that the fintech sector can solve. If anything, that makes it a promising market for you.”
Even though the Philippines is lagging behind many of its regional neighbors in terms of digital implementation, there is hope in the adoption, and fintech turns all of these problems into the silver lining. Every Filipino has a fair share of the technology that is currently available, which has the positive effect of empowering everyone digitally by providing access to everything they need for their finances as well as the data they require to expand sustainably. Furthermore, financial literacy is essential when utilizing digital technology. Everyone can benefit from it by learning and understanding its ethics, discipline, and standards.
A number of pioneering initiatives have also been launched during the first FinTech Alliance Ambassadors Gala. These include the first off-campus Fintech and Regulatory Innovations Technology Program in the ASEAN region by the Cambridge Centre for Alternative Finance by the Judge Business School of the University of Cambridge in the United Kingdom in partnership with the Mapua University and the FinTech Alliance; the launching of the BSP Governor Nestor A. Espenilla, Jr. FinTech and Inclusive Finance Grants Matching Program; and the collaboration with the Ant Group’s 10 x 1000 Tech for Inclusion. The event also saw the oath taking of additional members of the Board of Trustees as well as incoming new members.
The INDX Summit is a flagship event of Fintech Alliance.PH and has been running since 2019. It is an excellent learning and networking platform for professionals and stakeholders striving for sustainable digital transformation success.
The INDX Summit 2.0 — Accelerating the Digital Economy: Issues, Impacts, and Innovations was co-presented by Binance Academy and was made possible by the following sponsors: RCBC, Maya, Pru Life UK, InvestHK, Brankas, Grover, Clari5, M2P, Uniphore, Saviynt, CYFIRMA, Ion Management Solutions, Netcore Cloud, Pera Hub, Coins.ph, GSIS, CIBI, UNO Digital Bank, Tala, and ANT Group; government partners: Department of Finance, Banko Sentral ng Pilipinas, Department of Information and Communications Technology, Securities & Exchange Commission, Insurance Commission, Department of Trade & Industry, Credit Information Corp., and National Privacy Commission; and industry organization partners: JCI Manila, Management Association of the Philippines, Women’s Business Council, FINEX,Institute of Corporate Directors, Global Impact FinTech, Mapúa University, 10×1000 Tech for Inclusion, ANT Group, and the University of Cambridge Center for Alternative Finance.
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 Web site. For more information, send an email to online@bworldonline.com.
Homegrown business-to-business (B2B) software-as-a-service (SaaS) company and HR tech leader Sprout Solutions launches “IMPACT ’23: The PH SaaS Challenge” in partnership with Kaya Founders, an early-stage investment firm in the country that backs visionary entrepreneurs in the Philippines and Southeast Asia.
IMPACT ’23: The PH B2B SaaS Challenge is a startup accelerator challenge designed to uncover the next wave of innovative B2B solutions from local and international early-stage startups. The program is jointly organized by Sprout, Kaya Founders, and in partnership with companies including Amazon Web Services (AWS) and Beeline.
With the power of digital transformation, Sprout and Kaya acknowledge that the accelerator program will be an opportunity to fast-track startup growth in the rapidly growing B2B SaaS market. The program will also provide startups an avenue for fresh ideas, narrow focus, and ambitions to scale up.
“In line with our North Star to impact the lives of every Filipino by improving business in the Philippines, this program provides an avenue where you can market your products or solutions, and drive transformational impact,” Patrick Gentry, chief executive officer and co-founder of Sprout, shared.
The program is open to innovative SaaS founders and startups that are either based in the Philippines with ambitions to expand internationally or international companies seeking to expand into the Philippines. Whether the team is in the pre-launch, pre-seed, or seed stages of your startup, they are welcome to join as long as their company does not exceed US$3,000,000 funding raised cumulatively since inception.
Interested participants can sign up until Dec. 9. Short-listed applicants will go through an eight-week program and receive mentorship, technical training, and platform access from Sprout, Kaya Founders, and other industry partners. The top three finalists will have the opportunity to share their ideas at SaaScon PH, the leading B2B SaaS conference in the Philippines.
Participants will get the rare chance to position their solutions for any of the three program categories: From Hire to Retire: Managing the Employee Life Cycle, which is open to solutions that help streamline the employee life cycle; The Future of SaaS: Enabling a Fintech-powered Landscape, which is the category for solutions that automate or take away barriers to financial transactions; and The Post-ERP Era is Here: What’s Next?,for solutions that automate or make key business processes more efficient.
“As disruptive technologies display unabated growth, SaaS-driven applications lie at the heart of digital transformation. Along with Sprout, we believe that B2B SaaS startups with best-in-class solutions will bring the next wave of digital transformation,” Paulo Campos, managing general partner at Kaya, said.
All short-listed participants will receive the following benefits: high-quality mentorship, cloud platform access, up to $5,000 AWS Credits, and high-impact media and networking visibility from Sprout, Kaya Founders, and B2B SaaS experts.
Meanwhile, the top three winners will receive stage time and booth space at SaaScon, a professionally produced demo video, up to $10,000 AWS Credits, and full flight payment and accommodations coverage in the Philippines.
Finally, the grand winner will be fast-tracked to Kaya Founders’ venture studio or fund, including up to US$100,000 in equity capital and strategic support, based on the last qualified fund-raising round (acceptance is optional).
Winners will also get the opportunity to present their solutions at the upcoming SaaScon PH on March 28, 2023, at the Manila Marriott Hotel, to an audience of 700 potential clients, investors, startups, and industry influencers. The event, also co-organized by Sprout and Kaya, promises to be the must-attend B2B SaaS event of 2023.
To join or know more details about Impact ’23, visit their website at www.saaschallenge.ph.
Yield Guild Games Co-Founder Gabby Dizon talks about the metaverse during the Philippine Web3 Festival.
New income stream for ‘MFWs,’ growth areas for startups
Web3, considered the next, decentralized form of the World Wide Web powered by blockchains, cryptocurrencies, and non-fungible tokens (NFTs), is giving way to the emergence of a new kind of profession and a new kind of business model in the Philippines, executives from Web3- and blockchain-based startups said.
Gabby Dizon, co-founder of play-to-earn (P2E) gaming guild Yield Guild Games (YGG), observed that as Web3 has given Filipinos new income opportunities by allowing them “to own a piece of the online economy” — as exemplified by owning an NFT in popular P2E game Axie Infinity — Web3 is initially driving the rise of what he calls the “metaverse Filipino worker” (MFW).
“What we’ve seen in opportunities with Web3, NFTs, and games like Axie, people can go into these virtual worlds, be a top player, a scholar manager, or even a content creator. Basically, you can find a way to earn a living there [in the metaverse] and help sustain your family without having to be physically separated from them,” Mr. Dizon explained during the Philippine Web3 Festival held earlier in November.
The Web3 space is also seen bringing a new, digitally-native business model in the form of gaming guilds.
Peter Ing, chief executive officer of BlockchainSpace, a one-stop shop for gaming guild needs, said that guilds have emerged like cooperatives, with members navigating a new industry and trying to monetize and generate revenue together.
“We realized that over 20,000 of those micro-communities suddenly came together… [Their numbers are] usually anywhere between 50 to 100 people online; but in person, they might only be five to 10 people running that. And we realized that these people were running their own businesses. They held these assets, rented them, leased them to someone else, and at the end of the month, they [get their share]. And now they’re looking for more business opportunities,” Mr. Ing said during a press conference prior to the Web3 Festival.
“We’ve already seen version 1 of the business model, and I think there’s going to be a lot more business models coming out. We’ll definitely see these skills as the new business model for the new digital economy,” he added.
Philippine startups
Mr. Dizon also observed that the Philippine startup scene has largely contributed to the growth of the Web3 space.
He said that after YGG started and was able to raise funding from international investors, other startups emerged, such as BlockchainSpace and BreederDAO, a startup specializing in breeding and crafting NFT characters and game items to be used in P2E games.
“What’s exciting, not just on the usage front, is that a lot of talented Filipino entrepreneurs who might have been employees of growth-scale startups… are now striking out, becoming founders of their own, getting VC (venture capital) funding, and basically competing with the best in the world in Web3,” Mr. Dizon added during the aforementioned press conference.
Such talents are given a great opportunity to propel their startups to further grow the Web3 space, he continued.
“They now have a much larger opportunity because the funding is open. You can get VC funding from anyone around the world, including the best VCs like Andreessen Horowitz, for example; and this is open to anyone who has a good idea and can refine it into a pitch and gain traction,” Mr. Dizon explained.
Mr. Ing said the future looks optimistic for Web3 the Philippines, and the rest of the world is watching.
“Education and regulation are important aspects of Web3 adoption in the Philippines. Education erases the stigma, enables Filipinos to understand what they are getting into, and builds on that community that they have surrounded themselves with. Regulation, on the other hand, legitimizes the players in the Web3 space. It is a good thing that government institutions here in the Philippines are very open-minded and forward-thinking when it comes to innovations like Web3,” he said.
Held last Nov. 14-18 in Bonifacio Global City, Taguig, the Philippine Web3 Festival, gathered global leaders from the world of cryptocurrency and Web3 to discuss the future of Web3 and learn from Filipino founders, investors, artists, content creators, and blockchain gamers on how they are advancing the industry in the country. — Adrian Paul B. Conoza
Y-Combinator-backed startup Tablevibe has partnered with Philippine payment gateway Xendit to launch its commission-free online ordering system in the country. The restaurant tech venture successfully launched in Metro Manila following a surge in demand for its solutions in Singapore and Australia.
The move empowers any restaurant to set up a free webshop and accept pickup and delivery orders directly from its customers. On-demand drivers are sourced automatically and deliver food in a 10-kilometer radius for a P60 flat fee. As a result, restaurants can save up to 70% in online food ordering costs.
Restaurants typically use their cost savings to partially cover delivery fees, resulting in lower prices for consumers. Tablevibe’s deep integration with last-mile delivery services allows restaurants to deliver orders instantly without hiring their own drivers.
One of Tablevibe’s launch partners is CloudEats, a rapidly expanding cloud kitchen group with operations in both the Philippines and Vietnam. “Tablevibe helps us engage directly with our loyal customers, creates seamless commerce experiences, and offers great delivery fulfillment rates. It’s an exciting new channel for us,” CloudEats CEO Kimberly Yao said.
Xendit Managing Director Yang Yang Zhang said that its partnership with Tablevibe marks an essential step on its mission to build the digital infrastructure for Philippine-based businesses. “It enables restaurants to accept payments via credit cards, debit cards, and e-wallets like GCash through a single integration. Together, we’re excited to support eateries and boost their online sales across the country,” he said.
“We saw our global revenue surge more than 500% year over year. Together with our strong local partners, we are incredibly excited about supporting local restaurants and making their offerings even more accessible to food lovers across the Philippines,” Tablevibe Chief Operation Officer Mathieu Sneep said.
Trade Undersecretary Ruth B. Castelo checks the prices of noche buena products in a supermarket in Manila, Dec. 2. — PHILIPPINE STAR/EDD GUMBAN
By Keisha B. Ta-asan, Reporter
INFLATION likely quickened beyond the Bangko Sentral ng Pilipinas’ (BSP) target for an eighth straight month in November, mainly due to costlier food items and higher electricity rates, analysts said.
A BusinessWorld poll of 15 analysts last week yielded a median estimate of 7.8% for the consumer price index (CPI) in November, faster than the 3.7% print a year earlier and the 7.7% print in October.
If realized, November would mark eight straight months that inflation has breached the BSP’s 2-4% annual target range, and the fastest in 14 years or since the 9.1% print in November 2008.
The headline inflation figure will also match the 7.8% midpoint of the BSP’s 7.4-8.2% forecast for the month.
The Philippine Statistics Authority will release inflation data on Dec. 6.
“For November, our inflation view is 7.8% as we still see elevated food price levels owing to the food supply tightness stemming from the weather disturbances in October and early November,” Sun Life Investment Management and Trust Corp. economist Patrick M. Ella said in an e-mail.
The agriculture sector bore the brunt of several weather disturbances this year. Severe Tropical Storm Paeng (international name: Nalgae) caused over P6.4 billion in agricultural damage, and prompting the declaration of a six-month “state of calamity” in Calabarzon, Bicol, Western Visayas and the Bangsamoro Autonomous Region in Muslim Mindanao.
Philippine National Bank economist Alvin Joseph A. Arogo, who gave a 7.9% forecast, noted these four regions contribute a combined 27% to the country’s agriculture, forestry, and fishing industry.
“As such, we budgeted for higher food and non-alcoholic beverages price growth in November and December. Meanwhile, we continue to reflect in our forecasts our view that the second-round impact of the global commodities spike and impact of peso depreciation will likely still be felt in the near term,” Mr. Arogo said.
Standard Chartered Bank economist Jonathan Koh said in an e-mail that utilities inflation likely went up in November after Manila Electric Co. (Meralco) raised electricity rates.
Meralco raised the overall rate for a typical household by P0.0844 to P9.8628 per kilowatt-hour (kWh) in November.
“Offsetting these upward pressures are the reduction in petroleum and pork prices, the peso appreciation, and base effects,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail.
In November alone, pump price adjustments stood at a net decrease of P7.5 a liter for diesel and P4 a liter for kerosene. Meanwhile, gasoline prices had a net increase of P0.8 per liter for the month.
The peso also rebounded to the P56-a-dollar mark in November, closing the month at P56.56 on Nov. 29, up by P1.41 or 2.5% from its P57.97 finish on Oct. 28.
However, China Banking Corp. Chief Economist Domini S. Velasquez said that core inflation is still on an uptrend, and may peak in the first quarter of 2023.
“Our latest estimate shows core inflation might have jumped to 6.1% in November from 5.9% in October. This means that secondary round effects continue to drive higher prices overall,” she said.
Mr. Roces also said strong local consumption may have pushed core inflation higher in November.
Core inflation, which excludes food and fuel prices, quickened to 5.9% in October from 5% in September.
PEAK IN DECEMBER? Meanwhile, headline inflation will likely peak in December before slowing down in 2023, analysts said.
“We think the inflation has yet to peak, and see December inflation picking up to around 8% and average 5.8% for 2022,” Oxford Economics assistant economist Makoto Tsuchiya said in an e-mail.
Ms. Velasquez said prices of holiday goods “are at risk of further peaking.” “We hope the government can monitor and prevent unnecessary price increases this December,” she added.
Ms. Velasquez said inflation may settle within her forecast range of 7.7-7.9% in December before easing in 2023.
The Department of Trade and Industry (DTI) last month said prices of many food products considered as Christmas staples by Filipinos have increased by 1% to over 10% ahead of the holiday season. These products include ham, spaghetti noodles and sauce, quezo de bola and fruit cocktail.
“We think inflation will peak in December at 8.1% and this should start going down starting January next year. We continue to watch the factors that will likely push inflation, especially the increase in the prices of food products brought about by higher fertilizer prices and typhoon damage,” Mr. Arogo said.
Meanwhile, Mr. Roces said he expects the BSP to raise policy rates by 50 basis points (bps) at its Dec. 15 meeting, “with scope to do more in (first quarter of 2023) until inflation cools.”
BSP Governor Felipe M. Medalla said in an interview with Bloomberg TV that the Monetary Board is likely to be split whether the policy rate would be raised by 25 or 50 bps.
“Certainly, we will not do zero and I cannot speak for the rest of the board. But I think the board members will probably be split between whether doing 25 or 50,” he said.
US Federal Reserve Chair Jerome H. Powell last week signaled it was time to slow the pace of coming rate increases. The Fed is now widely expected to increase rates by 50 bps at its Dec. 13-14 meetings, adding to the cumulative 375 bps it has delivered since March to tame inflation.
“With the holiday season, prices of seasonal products are seen to increase but overall inflation is seen to slow down towards the end of the year with the tighter monetary policy controls set by the BSP,” De La Salle University economist Mitzie Irene P. Conchada said in an e-mail.
The BSP has raised its benchmark interest rate by a total of 300 bps to 5% since May to curb inflation.
“Looking ahead, we expect inflation to decelerate amid dissipation of supply-side shocks and non-monetary measures to contain price increases,” Mr. Koh said.
He added that the effectiveness of non-monetary measures will have to be observed moving forward.
A Philippines peso note is seen in this picture illustration on June 2, 2017. — REUTERS
By Luisa Maria Jacinta C. Jocson, Reporter
THE PHILIPPINES is not ready for a sovereign wealth fund amid the lack of fiscal space and high debt levels, as well as concerns over possible mishandling of public funds, analysts said.
“At this point in time, the country is not in a position to set up a sovereign wealth fund given the government’s tight fiscal position and large debt-to-gross-domestic product (GDP) ratio. Furthermore, the government doesn’t enjoy any fiscal bonanza from a commodity price boom, such as minerals or oil,” Calixto V. Chikiamco, Foundation for Economic Freedom (FEF) president, said in a Viber message.
Several lawmakers led by House Speaker Ferdinand Martin G. Romualdez, a cousin of President Ferdinand R. Marcos, Jr., and Deputy Majority Leader Ferdinand Alexander Marcos, the President’s son, recently filed a bill seeking to create a sovereign wealth fund.
The proposed Maharlika Wealth Fund will make investments by utilizing funds from the Government Service Insurance System (GSIS), the Social Security System (SSS), Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP).
The sovereign wealth fund will get an initial investment of P250 billion from these state pension funds and banks.
Mr. Chikiamco said it will be risky to use pension funds, which are typically managed conservatively, for a sovereign wealth fund.
“There is no value added to create another separate entity to invest the funds of SSS and GSIS. The pension funds have investment committees that invest the money prudently on behalf of its members. If the idea is to generate higher returns, it may come at higher risk, which is not within the investment guidelines for the investment of pension funds,” he said.
“It may also be politically reckless for them to touch SSS funds, which are owned by its members and not the government,” he added.
Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in an e-mail that pension funds are held in trust for the benefit of its members, not the government.
“Relying mainly on pension funds and government banks which already have their own investment objectives, timelines and risk tolerances subjects the pensions and deposits of ordinary families to extraordinary risk. Retirees and depositors did not sign up to subject their money to this new type of risk,” he added.
A sovereign wealth fund is typically funded by a government’s oil or other commodity export revenue or excess foreign exchange reserves.
“We have no oil, we have limited natural gas and the current revenue-sharing framework on mining does not favor the government,” Mr. Ridon said, adding that the Philippines does not have any surplus government funds.
The National Government’s (NG) budget deficit stood at P1.11 trillion in the January-to-October period, accounting for just 67% of the P1.7-trillion deficit program for the full year. The government borrows from local and external sources to help fund a budget deficit.
The NG outstanding debt hit a record P13.52 trillion as of end-September, bringing the debt-to-GDP ratio to a 17-year high of 63.7%.
OBJECTIONS Under the proposed bill, subsequent contributions to the Maharlika Investment Fund (MIF) would come from other government institutions, including the BSP. The bill requires the BSP to provide funds equivalent to 10% of remittances from overseas Filipino workers (OFWs), 10% coming from the annual contribution of the business processing outsourcing (BPO) sector.
“If they say we will take the central bank’s dollars…we will have less ammunition the next time there is international volatility,” BSP Governor Felipe M. Medalla said in an interview with Bloomberg TV on Friday.
BSP data showed gross international reserves, which serves as a buffer for liquidity shocks, stood at $94.1 billion as of end-October — the lowest in two years.
Mr. Medalla also said transparency over the governance of the MIF will be crucial, citing the experience of 1Malaysia Development Berhad (1MDB).
Malaysia’s 1MDB raised billions of dollars from bond issuances to be spent for projects, but over $4.5 billion were allegedly misappropriated by key officials.
Analysts also noted widespread opposition to the MIF is due to a lack of trust in the government, which has been hounded by corruption issues in recent years.
“My bigger objection is that no amount of so-called ‘good governance’ principles or independent directors can insulate the MIF from being mismanaged or pillaged given the lack of a rule of law in this country. If big-time crooks aren’t sent to jail, there is a risk that those managing the fund may think they can get away with it,” Mr. Chikiamco said.
Maria Ela L. Atienza, who teaches political science at the University of the Philippines, said a sovereign fund requires “clear and democratic decision making, transparency and accountability.”
“The people who will be responsible for the funds need to be both good managers and accountable,” she said.
Under the bill, the Maharlika Wealth Fund Corp., the state corporation that will manage the fund, will be chaired by Mr. Marcos.
“It is imperative that there are sufficient guarantees through strong mechanisms of transparency and oversight in efforts to push for the use of public funds for investment purposes,” Francisco A. Magno, who teaches political science and development studies at the De La Salle University, said in a Messenger chat.
Mr. Ridon also noted the fund’s leadership structure can potentially allow “political interference” by various financial institutions to lobby for politicians and investment priorities.
“In its place, a Philippine sovereign wealth fund should institute a leadership structure composed of independent finance professionals compensated based on fund performance. This ensures that the fund is free from political interference and fund performance is the most important bottom line,” Mr. Ridon added.
Antonio A. Ligon, a law and business professor at De La Salle University, said that safeguards must be put in place to prevent mismanagement.
“Strict accounting internal control should be set in place,” he said, adding that caution should be exercised before putting resources in the MIF.
Mr. Ligon also recommended that a trial period be implemented to evaluate the viability and profitability of the fund to its beneficiaries.
Under the bill, the proposed fund shall adhere to the Santiago Principles to “ensure transparency and accountability.”
The Santiago Principles are a set of 24 best practices for sovereign wealth funds established by the International Forum of Sovereign Wealth Funds.
John Paolo R. Rivera, an economist at the Asian Institute of Management, said that the government should focus on raising funds through the private sector instead of a sovereign wealth fund.
“The role of the private sector is also critical because they’re the ones that have surplus funds. Like I mentioned earlier, most economies invest their surplus funds into their sovereign fund because they want to expand their liquidity further and faster, so the role of the private sector is very important because they are the ones who have surplus funds,” Mr. Rivera told BusinessWorld Live on Thursday. — with Kyle Aristophere T. Atienza
GROSS BORROWINGS by the National Government (NG) declined by 32.7% year on year as of end-October, preliminary data from the Bureau of the Treasury (BTr) showed.
According to the BTr, total gross borrowings in the 10-month period stood at P1.85 trillion, lower than the P2.75 trillion seen in the same period last year.
For October alone, gross borrowings increased by 25.4% to P176.56 billion year on year.
For the first 10 months of the year, gross domestic borrowings dropped by 31% to P1.58 trillion from P2.29 trillion a year ago.
In October, gross domestic borrowings plunged by 57.6% to P56.73 billion from P133.73 billion a year ago. The month saw a net redemption of Treasury bills (T-bills) amounting to P51.38 billion, which was offset by the P108.11 billion raised through fixed-rate Treasury bonds (T-bonds).
Meanwhile, external gross borrowings fell by 9.07% to P471.66 billion in the 10-month period from P518.71 billion a year earlier.
Foreign gross borrowings surged by 943.2% to P125.7 billion for the month of October from P12.049 billion posted last year.
This included global bonds, which amounted to P116.93 billion, and project loans, which totaled P8.76 billion.
In October, the Marcos administration raised $2 billion (P118 billion) from its first dollar bond issuance, reflecting “strong investor appetite globally for the republic.”
The government also repaid P5.74 billion to foreign creditors in October.
The government borrows from domestic and foreign sources in order to fund a budget deficit capped at P1.65 trillion this year, equivalent to 7.6% of gross domestic product (GDP).
The NG outstanding debt hit a record P13.52 trillion as of end-September.
As a share of GDP, outstanding debt rose to 63.7% at the end of September, the highest in 17 years. — Luisa Maria Jacinta C. Jocson
A SUBSIDIARY of Villar-led Prime Asset Ventures, Inc. is set to launch an 80-hectare casino and entertainment complex in the Las Piñas-Parañaque area by 2023.
Villar Group Chairman Manuel B. Villar, Jr. said around $1 billion has been committed to the project.
“We will be launching it early next year since the casino has already been built,” he told reporters on Friday last week.
The project called Gold Coast Entertainment City will be under Vertex Entertainment and Resort Corp., which is a subsidiary of Manuel Paolo A. Villar’s Prime Asset Ventures.
According to the chairman, the complex will house hotels, condominiums, a mall, a casino and a theme park and will be near the Ninoy Aquino International Airport.
He said the complex will be similar to Disney’s developments.
“We will be putting up a lot of hotels, some condotels,” Mr. Villar said. “Meron na ako ngayon, ‘yong Mella Hotel (We already have one hotel, the Mella Hotel).”
The casino, which is nearly finished, will have roughly 18,000 square meters of floor area and will be in partnership with foreign partners whose names and nationality he did not disclose.
“Pumipili pa kami ng isa doon sa dalawa (We are still choosing from the two choices we have),” Mr. Villar said.
“I look at it more as a resort … This is the biggest in terms of land area,” Mr. Villar said, noting that 98% of the complex will be like a resort.
Meanwhile, Mr. Villar said that his real estate firm Vista Land & Lifescapes, Inc. will be more aggressive in launching residential projects in 2023 after slowing down operations during the pandemic.
“We will be more active in housing this year. We have been holding back for three years. While we remained active in the market, we did not pursue it as much,” he noted.
“Basta next year, mostly in the first half, makaka-41 kami na launches (Next year, in the first half, we will have 41 launches),” Mr. Villar said.
According to Mr. Villar, the company will have a 45-65 horizontal to vertical ratio by next year.
“Kasi kapag vertical mas napre-preserve mo ang land mokasi marami kang nabi-build. Tsaka baka ‘yon na ang future kasi sobrang mahal na ng lupa, (When you build a vertical project, you preserve the land more because you can build more. And I think that will be the future, because land is getting more expensive),” Mr. Villar said.
He also said that he expects Vista Land to end the year with 50-50 mix of horizontal and vertical projects. — Justine Irish D. Tabile
