Boosting financial inclusion through satellite internet

September 15, 2022 | 9:05 am

Kacific can provide last mile connectivity solutions for banks and cash agents as well as local communities so they can access digital finance.

One of the fundamental characteristics of any modern developed economy is near-universal financial inclusion, where all citizens have access to a formal financial system. More than ever, banking depends on internet connectivity to support modern digital solutions.

Although the number of Filipinos with access to financial accounts has rapidly grown in recent years, the Bangko Sentral ng Pilipinas found that 44% of the adult population still did not own a financial account in 2021. That represents just over 34 million people who do not have a formal account to save money and receive interest; send or receive remittances, income, and benefits; and make day-to-day payments.

Satellite Broadband can enhance financial inclusion

With over 7,000 thousand islands and jungle-covered mountains, the Philippines is a stunning nation. It’s also a nation that’s difficult to connect with traditional telecommunications technology.

Fiber cables are expensive and difficult to lay in such small communities. Another challenge: monsoon season. Every year, this natural event damages cables and tower structures, cutting communities off. Satellite broadband is the fastest and most cost-efficient means to distribute bandwidth to rural and other underserved areas.

Using satellite technology, Kacific has been able to deliver an alternative to fiber connection that is dependable, high-speed, and affordable for rural and remote areas. The first Ka-band High-throughput Satellite, Kacific1, was launched in 2019 as a geostationary satellite. Kacific has concentrated spot beams that cover all the remote areas — from Batanes to Palawan and even all the way to Sulu. These spot beams are high power, resulting in availabilities between 99.5% and 99.9%.

Kacific’s Ka-band technology provides higher output in small 1.2-m antennas or terminal kits, making it simple and fast to install. This also means higher download and upload speeds that can provide better internet performance.

Additionally, Kacific can mitigate the effects of rain fade through diverse uplink availability, having two local teleports located in Subic Bay and Clark as its backup sites to ensure that connectivity remains available even in inclement weather.

Satellite connectivity has a proven track record for data security – a vital need in the financial sector. With connecting rural areas key to improved financial inclusion, the Government and private sector can both play a part.

Working in partnership with Kacific, Internet Service Providers (ISPs) can provide last mile connectivity solutions for banks and cash agents as well as local communities so they can access digital finance.

TBGI, a local ISP of Kacific, offers unlimited plans starting at ₱5,940 in the Philippines. Terminals are offered for a one-time terminal fee of ₱34,000 or ₱52,000 depending on the size of the plan. A one-time installation fee of ₱10,000 is charged by distributors to install the terminal kit in a specific area.

Safe banking for businesses

The Philippines is prone to natural disasters. This can cause massive disruption to communications by knocking out phone lines and cell towers and damaging fiber-optic infrastructure. But with satellite broadband access, communities can stay connected to essential banking and other services.

Kacific Enterprise Backup keeps business safe from disruptions to regular terrestrial and mobile broadband connectivity. Any financial institution can easily install Kacific’s satellite as a hot backup site in the event of fiber cuts or cable downtime, at a small fee. Acting like an insurance plan for the primary connectivity, the backup solution ensures that the bank will be fully operational 100% of the time. ATM withdrawals and POS systems should be available at least 99% of the time, especially during disaster scenarios, where preserving continuity becomes the top priority.

The Land Bank ATM of DepEd Compound in Jolo, Sulu is connected by TBGI powered by Kacific.

Satellite internet increases financial services’ reach

Kiram Irilis is a Schools Division Superintendent at DepEd Division, Sulu. Their office uses the satellite internet mainly to let Land Bank’s Automated Teller Machines communicate through a host computer en route to the bank’s nearest data center so the financial transaction will be processed. The ATM is situated inside the DepEd Compound in Jolo, Sulu.

“Before installing the internet of TBGI powered by Kacific for our ATM, we need to go to the nearest Land Bank ATM which is 8 kilometers away from our office just to withdraw our salary. In addition, the said machine is frequently in offline operation mode. Now, we don’t experience offline mode when using the ATM, we also don’t have to take long walks just to withdraw money, and we are eased from the long queue, especially during payday.”

Kacific’s Ka-band technology provides higher output in small 1.2-m antennas or terminal kits, making it simple and fast to install.

Better internet connectivity and greater financial inclusion

In March 2021, Philippines’ former President Duterte, signed an executive order EO127, allowing more entities to provide satellite broadband services to far-flung communities, with the specific goal of boosting financial inclusion. This is intended to work alongside the rollout of the country’s new National Identification system, and it has already seen over 5 million unbanked Filipinos open transaction accounts with Land Bank alone.

Meanwhile, President Ferdinand “Bongbong” Marcos Jr. noted in his first State of the Nation Address on July 27, the government’s effort to increase digital connectivity in the Philippines. Part of the plan is to connect the country’s Geographically Isolated and Disadvantaged Areas (GIDA) via his ‘Broad Band ng Masa’ project.

For isolated communities, satellite broadband bridges the gap and allows fintech to flourish. With the Government and private sector working together, it’s possible to connect rural clients and small-island economies.

To learn more about reliable, affordable, and high-speed satellite internet, contact TBGI at 0917 583 7971 or learn more on www.tbgi.net.ph.

For more information on Kacific’s satellite technology, visit www.kacific.com or contact sales@kacific.com.

Apply to be a Kacific Authorized Distributor today, visit https://kacific.com/distributor-network to know more.

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Experience Innovation Revolution with CHERY Auto PHL at PIMS 2022

September 15, 2022 | 9:00 am

CHERY Auto Philippines’ distributor, United Asia Automotive Group, Inc. (UAAGI), redefines Filipino motorists’ concept of automotive luxury, electrification, and performance, with its theme “Innovation Revolution” at the 8^th Philippine International Motor Show (PIMS) at the World Trade Center in Pasay City from Sept. 15 to 18, 2022.

CHERY has started the innovation movement that brings the experience of advanced automotive technologies previously available only to a few, now to a broader Filipino motoring public. The brand focuses on the fast-growing number of buyers who want value but desire more luxury, fuel-savings performance, and technology in a crossover.

“We are thrilled to showcase our new flagship with the all-new CHERY Tiggo 8 PRO at 2022 PIMS. Our participation this year at the prestigious PIMS is yet another milestone for the brand as we celebrate the entry of CHERY into the premiere industry organization, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI). With the aggressive local introduction of our crossovers, we are planting the seeds of an innovation movement that disrupts long-established customer beliefs on who can only enjoy the latest automotive technology,” says CHERY Auto Philippines/UAAGI President Erroll Dueñas.

In photo are executives from (top row) Toyota, Suzuki, Nissan, Mitsubishi, Mazda, Kia, Isuzu, (bottom row) BMW, Chery, Foton, CAMPI, Geely, Honda, and Hyundai.

“Today’s evolving automotive market is driven by several key areas, most notably connectivity and electrification. To this end, we are unveiling the third variant of our competitive flagship Tiggo 8 PRO lineup at 2022 PIMS — Tiggo 8 PRO 2.0 Turbo. Together with the luxurious Tiggo 8 PRO 1.6 Turbo, the electrified Tiggo 8 PRO Plug-in Hybrid Electric Vehicle (PHEV), and now with the powerful Tiggo 8 PRO 2.0 Turbo, we have a formidable stable of luxury, electrification, and performance,” Mr. Dueñas added.

CHERY Tiggo 8 PRO 1.6 Turbo and Tiggo 8 PRO PHEV have been receiving rave reviews, including awards from the respected C! Magazine that were bestowed during PIMS. The Tiggo 8 PRO 1.6 Turbo has been awarded the best mid-size crossover, while the Tiggo 8 PRO PHEV has been recognized as the best hybrid vehicle. This shows the brand’s commitment to bringing heightened driving experiences with memorable and worry-free customer journeys.

“We have started shifting gears by making your daily drive more memorable through the POWER of a luxurious design and advanced driver assistance technologies in the Tiggo 8 PRO 1.6T. Your journeys have become more sustainable through the POWER of electrification in the Tiggo 8 PRO PHEV. And now, we would like to introduce a new breed of POWER that will not only excite your senses but will increase your heart’s ‘BEATS per MINUTE’ even in your daily drive — the new Tiggo 8 PRO 2.0 Turbo All-Wheel Drive!,” exclaimed CHERY Auto Philippines/UAAGI Vice-President for Sales and Marketing Luigi Ignacio.

Part of the CHERY 4.0 Full-Field Power Architecture that harnesses the power of various forms of energy including fuel, hybrid, pure electric, and hydrogen, the new Tiggo 8 PRO 2.0 Turbo AWD features a state-of-the-art engine that has maximum power and torque outputs of 254 Hp and 390 Nm. It adopts CHERY’s second-generation i-HEC combustions system, the new generation thermal management system, and 350-bar ultra-high-pressure direct injection technologies.

Visit the CHERY booth at the 2022 PIMS in World Trade Center to take a closer look at the game-changing Tiggo 8 PRO lineup and test-drive activities.

For more info, follow CHERY Auto Philippines on social media: CHERY Auto Philippines (Facebook) and @cheryautophilippines (Instagram). You may also call the 24/7 CHERY Auto Philippines hotline at 0917-552-4379 or email chery@uaagi.com for more inquiries.

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Vehicle sales nearly double in Aug.

September 15, 2022 | 12:34 am

cars-vehicles-traffic — Motorists endure heavy traffic along the westbound lane of Commonwealth Avenue in Quezon City, July 28. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

SALES OF VEHICLES in the Philippines nearly doubled in August, driven by strong demand for commercial vehicles as Congress considers a measure removing the excise tax exemption for pickup trucks.

According to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA), local vehicle sales surged by 90.5% to 30,185 units in August, from 15,847 units sold in the same month last year.

Commercial vehicle sales more than doubled to 23,452 in August, accounting for 78% of the month’s sales. This was mainly due to the 106% rise in sales of light commercial vehicles to 17,973 units and 210% increase in sales of Asian utility vehicles (AUVs) to 4,589 units.

Sales of passenger cars also rose by 38% to 6,733 units, accounting for 22% of the total in August.

Month on month, total vehicle sales for August were also up by 8.5% from 27,813 units sold in July.

“The recovery of the industry is indeed on track as we reached monthly sales of above 30,000 units — a pre-pandemic monthly performance level last recorded in 2019. This year-on-year improvement of 90.5% in August brings us closer to achieving the industry sales target this year,” CAMPI President Rommel R. Gutierrez said in a separate statement.

For the first eight months of 2022, CAMPI-TMA members sold 212,872 units, up by 25% from 170,112 units during the same period last year.

Sales of commercial vehicles jumped by 39% to 160,790 units in the January to August period, which accounted for 75% of the industry’s total sales. Broken down, light commercial vehicle sales rose by 43% to 126,633 units, while AUVs went up by 31% to 27,874 units.

Passenger car sales, on the other hand, contracted by 4.3% to 52,082 units in the eight-month period but still made up 24% of total sales.

“With the return of the 8th Philippine International Motor Show this month, there are plenty of reasons to be optimistic of having a stronger year after a period of lower sales achievement because of the pandemic,” Mr. Gutierrez said.

Among CAMPI-TMA members, Toyota Motor Philippines Corp. had the highest sales in the first eight months with 108,746 units sold, equivalent to 51.09% market share.

Other top car manufacturers during the period include Mitsubishi Motors Philippines Corp. with 30,207 units sold (14.19% share), Nissan Philippines, Inc. with 14,487 (6.81% share), Ford Motor Co. Phils. Inc. with 13,348 (6.27% share), and Suzuki Phils., Inc. with 12,838 (6.03% share).

However, CAMPI earlier warned sales of commercial vehicles will take a hit if Congress approves a measure removing the excise tax exemption for pickup trucks.

In August, the House Ways and Means Committee approved the fourth package of the Comprehensive Tax Reform Program which included the elimination of the excise tax exemption for pickup trucks.

Under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion, pickup trucks are exempted from excise tax as part of efforts to assist small business owners and professionals.

According to the Finance department, the removal of the excise tax exemption is expected to generate P52.6 billion worth of additional revenues from 2022 to 2026.

“We are concerned about the addition of the taxes. As we know, the demand for vehicles is price sensitive. This will definitely impact prices. We are still recovering. We have not yet recovered fully to pre-pandemic levels,” Mr. Gutierrez previously said. — Revin Mikhael D. Ochave

Sugar prices to go down as imports expected to arrive by November

September 15, 2022 | 12:33 am

By Luisa Maria Jacinta C. Jocson, Reporter

SUGAR PRICES may soon drop as imports of refined sugar are expected to arrive by November.

This after the Sugar Regulatory Administration (SRA) issued Sugar Order (SO) No. 2 which authorized the import of 150,000 metric tons (MT) of refined sugar for the current crop year “to ensure domestic supply and manage sugar prices.”

“The import volume of 150,000 MT of refined sugar is good for now. This will satisfy the consumers and industrials, and (also) bring down retail prices,” United Sugar Producers Federation President Manuel R. Lamata said in a Viber message.

Federation of Free Farmers National Manager Raul Q. Montemayor said in a Viber message the sugar order is a “safe” decision by the government to “ensure the availability of stocks while waiting for new harvest to come in.”

Retail prices of sugar have surged in recent months amid a supply shortage. As of Sept. 2, the average retail price of refined sugar in wet markets nearly doubled to P97.43 per kilogram from P52.71 in the same period a year ago. The price of raw sugar also rose by 60% year on year to P72.43 now.

Under SO No. 2, the 150,000 MT of refined sugar imports will be equally allocated for industrial users and consumers.

Industrial users are defined as food and beverage manufacturers that use refined sugar in products that are for sale in the local market. Consumers, on the other hand, are defined as wholesalers and traders who sell sugar in bulk to retailers.

Under the order, sugar imports are expected to arrive not later than Nov. 15. Traders are given one month from Nov. 15 to fully distribute the allocations to industrial users and consumers.

Fermin D. Adriano, former Agriculture Undersecretary for Policy, Planning, and Research, said there may be a need for additional imports in order to further bring down prices.

“If they want prices to go down or meet demand of bottling companies, they will have to import more. If not, (we) will just have to spend more to buy sugar. Our sugar prices are three times more than the world market prices,” he said in a Viber message.

Beverage manufacturers, including Coca-Cola Beverages Philippines, Inc., Pepsi-Cola Products Philippines, Inc., and ARC Refreshments Corp. earlier announced that they are facing a shortage of premium refined sugar.

Coca-Cola previously said the local food and beverage industry will require at least 450,000 MT of premium refined sugar for continued production.

However, Mr. Lamata said that the SRA must monitor the crop year’s output in order to determine if another importation order is necessary.

“We will know for sure come April to May next year. When the milling season ends, the SRA should do a private inventory of the whole industry as to how much sugar stocks are left. That’s the time we will know if we need to import or not,” he added.

Meanwhile, Kilusang Magbubukid ng Pilipinas (KMP) Chairman Rafael V. Mariano said that the import plan is ill-timed as it coincides with the start of the milling season.

“There is no need for imports. There is no need for that 150,000 MT of sugar because we have locally produced and locally milled sugar coming in. We have already started milling production,” he said in a phone call interview.

The crop year began on Sept. 1, 2022 and ends on Aug. 31, 2023.

The SRA board also issued SO No. 1, which allocates all sugar output for the crop year as class “B” or for domestic use.

“Planters themselves are saying that there is no shortage or lack of supply. We have enough. If the reason behind the import program is to lower prices, there is no need for that,” Mr. Mariano added.

Farmer-scientist group Magsasaka at Siyentipiko para sa Pag-unlad ng Agrikultura (MASIPAG) said in a statement that the government should focus on boosting local production instead of relying on importation.

“Importation is never the answer, transforming the current sugar production system and strengthening of local production anchored in genuine rural development is… Sugar importation, which is the entry point for fully liberalizing the sugar trade, would result in a 6.8% decrease in domestic output,” MASIPAG said.

MASIPAG pushed for sustainable and organic sugar farming, which can “re-localize the food system and pave the way for a pro-people sugar industry.”

Mr. Montemayor also called for the review of the Sugarcane Industry Development Act (SIDA).

“There are several billion pesos earmarked for the sugar sector under the SIDA, but only a small percentage is being spent. We need to study whether this is because of inefficiencies within the SRA or defects in the SIDA law itself,” he said.

SO No. 2 is the first sugar import plan issued under the new administration. It comes after the “illegal” release of SO No. 4, which would have allowed the import of 300,000 MT of refined sugar.

Nat’l budget seen to benefit from peso depreciation

September 15, 2022 | 12:32 am

THE CONTINUED WEAKNESS of the Philippine peso against the US dollar works for the benefit of the proposed 2023 national budget, Finance Secretary Benjamin E. Diokno said, as it would translate to higher revenues and a narrower fiscal gap.

“On the exchange rate, without saying that I favor the depreciation, the impact of the depreciation actually is favorable to the budget because a P1 depreciation would mean a higher revenue for the government,” Mr. Diokno told senators during a Senate Finance Committee hearing on Wednesday.

“It will involve, for example, P10-billion additional revenues with little adjustment on the disbursement side and that’s mainly on the debt servicing because we cannot spend what Congress has not authorized,” he added, noting that the net effect of a P1 depreciation is a P7.6-billion reduction in the budget deficit.

The peso closed at P57.11 against the US dollar on Wednesday. Year to date, the peso has depreciated by 11.98% or P6.11 versus the greenback.

Economic managers assume a foreign exchange rate of between P51 and P55 per dollar by next year.

Mr. Diokno said the economy has recovered from the coronavirus disease 2019 (COVID-19) pandemic, giving the Marcos administration the room to pursue targeted subsidies and other projects as opposed to “wasteful” ayuda (cash aid).

“At this time, the economy is now at the 2019 level,” he said.

The Philippine economy grew by 7.8% in the first half of 2022, above the full-year target of 6.5-7.5%.

“The pandemic-related ayuda at this time is a waste of funds… but the targeted assistance, say the 4Ps (Pantawid Pamilyang Pilipino Program) [and to] those affected by the increase in the price of oil, I think we should continue those,” Mr. Diokno said.

“It’s really giving away ayudas at this time in the same manner that we have given during the Bayanihan I and II. It’s really a waste of money because we have other important projects,” he added.

‘INEQUITY’
Meanwhile, Senator Maria Imelda “Imee” R. Marcos raised a concern from local government units (LGUs) that the P5.268-trillion national budget reflects inequity, as the funds allocated for LGUs are insufficient for their new responsibilities amid the devolution of functions due to the Mandanas-Garcia ruling.

“The regional allocations are all decreased once again: Luzon, Visayas, and Mindanao. With only (National Capital Region) and the central offices registering an increase. Once again, there’s a perceived inequity,” Ms. Marcos said.

Mr. Diokno said there is concern whether or not LGUs can absorb the funds that is allocated to them.

“The truth of the matter is that the local governments have a surplus position consistently. They are not spending their money. Whereas the [National] Government (NG) is in a deficit position. In fact, it is the National Government who pays for our national debt, not [the] LGUs,”the Finance chief said.

The national tax allocation (NTA) for LGUs in 2023 amounts to P820.27 billion, lower by 14.47% than this year’s allocation as there were lower revenue collections in 2020 amid the COVID-19 pandemic.

“Looking back, in hindsight, we should not have devolved health given this pandemic. I think any citizen, regardless of where he lives, should get the same care,” Mr. Diokno said. “I think health should really be a responsibility of the National Government rather than the local government.”

AMENDMENTS TO EO
Budget Secretary Amenah F. Pangandaman said President Ferdinand R. Marcos, Jr. ordered them to prepare amendments to Executive Order (EO) 138, an outline to the Mandanas ruling that was issued by the Duterte administration in June 2021.

“We have a draft already and, I think in 2 weeks’ time, we will convene with the LGUs,” she said.

The debt-to-gross domestic product (GDP) ratio swelled to 62.1% in the second quarter from the pre-pandemic ratio of 39.6% in 2019, mostly exacerbated by the need to borrow in responding to the pandemic.

The National Government’s outstanding debt is expected to reach P13.43 trillion by the end of the year. As of end-July, the debt stood at P12.89 trillion.

National Treasurer Rosalia V. de Leon told senators that the estimated debt stock by 2028 will be at P19.2 trillion.

Mr. Diokno reiterated the government’s plan to outgrow the debt, referring to its growth targets of 6.5% to 8% for 2023 to 2028.

When asked what will drive this growth, Mr. Diokno identified the mining and agriculture sectors.

Mr. Balisacan said that growing the agriculture sector depends on improving productivity through research and development.

“We focused so much then on improving productivity through research and development… Biotechnology was very high on our agenda at that time,” said Mr. Balisacan, referring to his tenure in the Department of Agriculture in the early 2000s.

“Twenty years later, there’s none. The efforts were not sustained. Biotechnology has not gone far and wide in this country when it’s already driving productivity in Vietnam, Thailand, and Indonesia. So, adapting, using new science, [and] investing in these new technologies is the only way to go,” Mr. Balisacan added.

Manufacturing is also seen as a growth driver, the economic managers concurred, with food processing as a potential significant contributor if only the costs of agricultural inputs can be lowered. — Diego Gabriel C. Robles

BIR aims to have 100% of tax payments done online

September 15, 2022 | 12:31 am

BIR-taxpayers — PHILIPPINE STAR/ RUSSELL A. PALMA

THE BUREAU of Internal Revenue (BIR) is aiming to have all taxpayers file their returns and pay their taxes through electronic means.

“Our objective is to make that a hundred percent — all taxpayers electronically filing and paying (taxes),” BIR Commissioner Lilia C. Guillermo said during a Senate Finance Committee hearing on Wednesday.

As of end-August, around 98% of taxpayers already use the BIR’s digital platforms. The BIR already has an Electronic Filing and Payment System, Electronic Fund Transfer Instructions System, and other e-payment channels.

“We are mandating our large taxpayers, as well as our medium taxpayers, to do electronic filing and paying with us. No option, because some of them would still like manual filing because they know that if they manually file, it will not be easy for us to automate our LoAs (Letter of Authority) on them,” Ms. Guillermo said.

An LoA authorizes a BIR officer to examine a taxpayer’s books to ensure proper taxes are paid.

The digital transformation programs of the BIR and the Bureau of Customs (BoC) have been allocated P3.56 billion under the 2023 proposed national budget.

“In so far as infrastructure is concerned, we thank the Budget department [for] giving us [funds] to upgrade our infrastructure, especially [since] we are after online sellers [and] online services in the Philippines and foreign based ones, once [the Internet Transactions] bill is turned into law,” Ms. Guillermo said.

Last month, Ms. Guillermo said that only 15 out of 100 large taxpayers have responded to the BIR’s invitation for digitalization through its e-receipts and e-invoicing system.

“The BIR shouldn’t be the only one undergoing digital transformation… [for] audits to be done very conveniently,” Ms. Guillermo said then in the vernacular.

In August, the bureau also announced its launch of an Online Registration and Update System in 2022 or 2023, in compliance with its Digital Transformation Roadmap.

The BIR is expected to generate P2.39 trillion in revenues this year and P2.67 trillion next year.

The BIR has been transitioning into digital operations after adopting a 10-year digitalization roadmap in 2019. — D.G.C.Robles

Consistent application sought for key ERC ruling

September 15, 2022 | 12:11 am

AC Energy’s call comes ahead of decision on joint SMC-Meralco rate hike petition

ACEN Corp. has joined participants in the energy sector that have called on the regulator to decide on a joint plea by the country’s dominant power distributor and its energy supplier to hike their previously approved electricity rate to reflect unforeseen events.

The call from the Ayala-led renewable energy platform came days after the Energy Regulatory Commission (ERC) heard the petition jointly filed by Manila Electric Co. (Meralco) and a unit of San Miguel Corp. (SMC).

“Whatever the decision will be, we hope that our regulator as well as Meralco, will treat all suppliers fairly and consistently,” ACEN President and Chief Executive Officer Eric T. Francia said in a statement sent via Viber.

“We have the same contract and similar set of circumstances, so if there is a change in circumstance in one supplier, the same should apply to others,” he added.

The change in circumstance was previously described by SMC President Ramon S. Ang as extraordinary and unprecedented, caused by commodity supply disruptions brought about by Indonesia’s coal export ban, Russia’s war on Ukraine, and the pandemic’s value chain issues.

Mr. Ang said that SMC’s power unit SMC Global Power Holdings Corp.’s power facilities in Sual, Pangasinan and Ilijan, Batangas had incurred a combined loss of P15 billion, prompting the group to seek temporary relief to allow it to continue supplying power.

SMC decided to absorb more than P10 billion of the losses, which were incurred last year and traced to a surge in the average coal price to $176 per metric ton (MT) in the second half of last year from just $99 per MT in the first half. It said the average coal price in 2019 and 2020 was only at $69 per MT. The Sual plant runs on coal.

The company also cited the unilateral natural gas supply restrictions from Malampaya for the Ilijan power plant.

SMC earlier said that coal prices in the global commodities markets had breached $400 per MT or way above the $60-$65 per MT price range that was factored in during the execution of its power supply agreements (PSA) with Meralco in 2019.

SMC Global Power is seeking temporary and partial cost recovery relief only for the losses it incurred from January to May 2022 through a rate increase on its contract capacity under the PSAs to be amortized over a period of six months.

Up for ERC resolution is the joint petition for a rate increase covering the first five months of this year of P0.80 per kilowatt-hour (kWh) from P4.3-P5.1 per kWh for the SMC group’s 670 megawatts (MW) of contracted baseload capacity from the Ilijan plant, and an average of P4 per kWh from P4.3-P8.3 per kWh for the 330-MW contracted baseload capacity from the Sual plant.

SMC is looking to recover from P5.2 billion in losses for the five-month period.

ACEN did not give details on its PSA with Meralco but based on ERC documents, the company under its previous name was issued a notice of award by Meralco after a competitive selection process (CSP) for its bid to supply 200 MW at P4.8849 per kWh.

In a media statement on Aug. 23, Mr. Ang called on the ERC for a fair and objective assessment of the joint petition, which was filed in May, seeking a temporary rate increase for six months.

He also said that the administrators of the Ilijan and Sual plants had issued notices of termination to Meralco of their PSAs, citing unexpected and unprecedented “change in circumstance.” He added that the termination is effective starting Oct. 4, if relief is not given.

Consumer groups such as Kuryente.org challenged the ERC to decide on the joint petition. In a statement last month, it said that if a company cannot respect its contractual obligations and the CSP, “it must close shop and allow those who could deliver these obligations as it does not have any moral ascendancy in staying in the industry.”

Separately, Greenpeace called on the ERC last month to “remain firm in prioritizing the welfare of consumers, by ensuring that electricity prices will not drastically increase to compensate for companies’ dirty, destructive, and expensive energy generation.”

On Aug. 30, the ERC held a hearing attended by the joint petitioners. It has yet to decide on the matter. — Victor V. Saulon

Israeli companies seek ICT cooperation with Philippine counterparts

September 15, 2022 | 12:10 am

programming-code — CHARLESDELUVIO-UNSPLASH

ISRAEL has vowed to connect Israeli information communications technology (ICT) firms with Philippine stakeholders to strengthen trade relations and boost technological innovation between the two countries, the Israeli embassy said on Wednesday.

During a business-to-business networking event organized by the embassy at the New World Hotel in Makati City, Israeli Ambassador Ilan Fluss said the delegation of Israeli ICT firms that participated in the networking opportunity was the largest since the start of the coronavirus pandemic.

“I call our companies and the local partners, we should bring not only the very best of technologies but also aspects of knowledge transfer and job creation,” he said at the event. “This will make our long-term partnership beneficial for all parties.”

The companies that participated in the event were primarily engaged in cybersecurity, 5G network development, and user prediction.

Appnext, an independent application discovery platform, was one of the several firms that pitched services to local stakeholders.

Alon Benami, the director of strategic partnerships for Appnext, said his firm has been working with local application developers for the past two years.

“We are working with 3,000 applications every day, and we partner with the world’s top original equipment manufacturer (OEM) and telecommunications companies,” he said.

Artificial Intelligence and big data prediction platform Talamoos also presented how its service that anticipates a user’s interests and preferences based on online behavior could increase a firm’s revenues and engagements.

The networking event was a collaboration between the Israel Embassy and the Philippine Chamber of Commerce and Industry. Representatives from the Department of Information and Communications Technology, local investors, and other government representatives participated in the ICT roadshow event.

“Today technology and innovation is one of the key pillars in our relations with the Philippines,” Mr. Fluss said. “Our priority and main effort is promoting the establishment of bridges of innovation and technology between our two countries.” — John Victor D. Ordoñez

Tan-led firm expects leasing recovery on re-emerging POGO

September 15, 2022 | 12:09 am

LUCIO C. TAN group’s Eton Properties Philippines, Inc. said that demand for its office developments has shown recovery in the second half of the year on the re-emergence of Philippine Offshore Gaming Operators (POGOs).

“With the perceived stability and confidence of a new administration and the market starting to normalize, Eton Properties gradually felt an increase in the demand for leasing spaces this second half of the year,” Eton Properties Executive Director Kyle Tan said.

“One of the primary effects we see is the confidence of POGOs to return to the Philippines. These operators are not just from China, but within our neighboring countries in Southeast Asia as well,” he added.

The company said that it sealed a deal with “one of the biggest POGO companies from Southeast Asia” to lease more than 6,000 square meters of office space, eWestPod, in its Eton WestEnd Square near the Makati central business district (CBD).

The eWestPod space was developed “to create a particular built-to-suit concept that allows the user or tenant to design and customize the space according to their unique preference.”

The office building has four floors of offices that have direct access to the amenities and are close to the modern conveniences of the Makati CBD.

“[T]he whole master-planned development features eWestMall, which houses two floors of retail spaces, assuring no shortage of different lifestyle options,” the company said.

Last month, the company signed a three-year contract with a triple A construction firm to lease a whole floor of its other office project, Blakes Tower.

“Eton also sees the positive ripple effect of POGO in our leasing business because some of them are also looking for residential and commercial spaces, which are a good indicator of our overall growth in occupancy rate,” Mr. Tan said.

Eton Properties specializes in office projects, commercial centers, and mixed-use township developments as well as high-end and mid-income high-rise and horizontal residential developments.

Eton Properties is the real estate brand of the Lucio Tan group, one of the business conglomerates in the Philippines. Its foreign counterpart, Eton Properties Ltd., is a real estate brand in Hong Kong and mainland China. — Justine Irish D. Tabile

FEU reports surpassing pre-pandemic student population for 2022-23

September 15, 2022 | 12:08 am

FAR EASTERN UNIVERSITY, Inc. (FEU) said in a report on Wednesday that its student population for the school year 2022-2023 exceeded pre-pandemic levels on eased mobility restrictions.

“The easing of quarantine restrictions and normalized economic activities, including the return to in-campus learning under a face-to-face class set-up, together with in-person onsite reporting by administrative staff, is expected to lessen the uncertainties in the group’s business environment,” the company said in its annual report.

It added that it remains positive with the relaxation of business activity and people mobility restrictions amid global logistic challenges.

“Nonetheless, the group believes that it is an opportune time to engage in expansion opportunities,” it said.

Recently, the company announced its acquisition of Good Samaritan Colleges in Nueva Ecija and JPMC College of Health Sciences (JPMC-CHS) in Brunei.

Last month, the company disclosed that it signed an investment agreement with Good Samaritan Colleges for the acquisition of 77,273 shares or 34% of the outstanding capital stock of the institution.

Back in July, FEU entered its first private nursing school venture in Brunei after it signed an agreement with Jerudong Park Medical Centre and Darussalam Assets on the establishment of JPMC-CHS.

“Overall, the Group’s management is optimistic that it can maintain excellent results of operations in the next fiscal year but remains conservative with its outlook on the financial market and the overall economy,” it said.

FEU is a majority shareholder of East Asia Computer Center, Inc., FEU Alabang, Inc., Far Eastern College Silang, Inc., FEU High School, Inc., and Roosevelt College, Inc.

It is a major shareholder of Fern Realty Corp., which helps FEU schools in their real estate requirements.

FEU also owns 51% of Edustria, Inc., a joint venture with the Technological Institute of the Philippines. The joint venture operates a high school under the same name in Lipa City and Malvar, Batangas. — Justine Irish D. Tabile

Taking on the all-you-can-eat pasta challenge

September 15, 2022 | 12:07 am

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By Joseph L. Garcia, Reporter

WE like to think we have a very expandable stomach, so when we found out through a Facebook announcement that Mama Lou’s Italian Kitchen was having a 12^th anniversary Endless Pasta promo, we knew we had to at least try to climb an Everest of unlimited pasta.

Mama Lou’s was founded in 2010, and operated by the Tremblay family in BF Homes, Parañaque. It still maintains a BF Homes branch, but has opened several branches since: these include restaurants in Nuvali, Evia, UP Town Center, Ayala Malls The 30^th, Feliz, Manila Bay, Circuit Makati, North Exchange, and Venice Grand Canal Mall. It had opened a sister chain as well, called Nonna’s. The restaurant was named after its co-founder, the Tremblay matriarch Marilou (who unfortunately passed away due to cancer, according to the Philippine Daily Inquirer).

“In the mind of people any food establishment based on ‘Mama’ [h]as to be homey, friendly, and good. We named it after my wife Malou who was an excellent cook,” said Richard Tremblay in an old website for Mama Lou’s.

The announcement on Facebook said that guests may refill their plate with any flavor of pasta from the available choices (Carbonara, Bucatini Amatriciana, Mama’s Pesto al Pollo, Lucio’s Truffle, Spaghetti Bolognese, Vongole Olio, Spaghetti and Meatballs, Lasagna, Spaghetti Con Tuyo, Arabbiata, and Truffle Mac and Cheese). Guests may refill their plate an unlimited number of times, but they must finish their last serving of pasta before requesting a refill. Guests cannot leave any leftover pasta, or take it out, or share. The server told us that the first plate would be at 200 grams, and succeeding servings would be 100 grams. At a sum of P550 (when a plate costs upward of P300) per person, we figured we’d get our money’s worth after two plates. Deal!

Friends refused to come because they were afraid of what too much pasta may do to a person. A loyal nephew decided to come with me to the UP Town Center branch, but unfortunately quit after just one plate. I had to do this quite alone.

We opened with the Vongole Olio, pasta cooked with clams in a light sauce. It had a rich clam broth pooling at the bottom of the plate; and the pasta looked glossy and appealing. It had that briny taste of the sea, and tasted almost like I ordered it at a seaside restaurant. So far, so good.

Lucio’s Truffle Pasta, the one that defeated my nephew, had a truffle taste that felt only like a suggestion (the scent of truffle was strong but faded easily), but the sauce was at least satisfyingly creamy.

The Bolognese (a tomato-meat sauce) was delightfully chunky, but comparable to other mid-priced Bolognese sauces found in the city. Mindful that Bolognese sauce takes several steps to make, it did have a quality that it had been stewed for at least a few hours.

We felt that the Spaghetti and Meatballs dish, with an acidic tomato sauce (which was felt on our tongue) did not add much to the experience, and took up valuable pasta real estate in the stomach. By then, the line of tomato-based sauces left us feeling a bit tired, so when the Bucatini Amatriciana arrived on our table, we had low expectations for it — and we were gladly mistaken. The sauce is traditionally made with guanciale (cured pork cheek), but we accepted the smoky bacon on our plates (but then, we could be wrong; and we really did strike out that day). Other ingredients in traditional Italian cuisine include tomato and pecorino Romano, but we weren’t picky. This was served with Bucatini, a long and hollow noodle. This shone with the sauce, for the thicker, heavier noodle slid silkily into the mouth (perhaps the noodle was made aerodynamic by its structure) and added good-natured heft to the dish.

At that point, we felt our eyes drooping (from a carbohydrates crash, no doubt) but we felt that we could eat more. We settled for the Spaghetti con Tuyo. This was a pleasant, deceptively simple, and well-balanced ending, with the spare slices of tuyo (dried and salted fish), arugula, and tomatoes singing together.

We had six plates of pasta all together, and had a good night’s sleep after. Did I get my P550’s worth? Yes, and then some. Will I do it again? Maybe. Should you try it? Yes, just so you could say you could (and the Vongole, Spaghetti con Tuyo, and the Bucatini were really good).

The Mama Lou’s Italian Kitchen Endless Pasta promo is available on the following dates: Sept. 19, 20, 21, 26, 27, and 28.

Smart aids law enforcers amid worsening text scams

September 15, 2022 | 12:07 am

SMART Communications, Inc. said on Wednesday that it is working with the Philippine National Police (PNP) and the coordinating council of the Department of Information and Communications Technology (DICT) to track down the people behind text scams.

From June to August, Smart said that it had blocked a total of 167,000 numbers that were identified or have a connection to fraud activities, while it had also blocked around 342 million “smishing” messages in the same period.

“We are supporting government-led efforts to identify the scammers and to pin down where they’re getting the SIMs that they’re using to run their modus,” PLDT, Inc. and Smart’s First Vice-President and Chief Information Security Officer Angel T. Redoble said in a media release.

Mr. Redoble said that Smart is investigating suspicious subscriber identity module (SIM) card purchases that might be related to illegal activities.

“Our initial investigation has shown that the fraudulent messages are being sent phone-to-phone. They don’t pass through aggregators. Most likely, the perpetrators have bought the SIMs in bulk. But through our blocking efforts, we are making it expensive for them to use this method,” Mr. Redoble said.

The National Telecommunications Commission (NTC) has directed telecommunication companies to block or deactivate domains and uniform resource locators (URLs) in text messages, amid worsening text scams.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose