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ePLDT says 12th data center set to be largest; study to finish this year

STOCK PHOTO | Image by Wirestock from Freepik

By Ashley Erika O. Jose, Reporter

ePLDT Inc., the information and communications technology (ICT) arm of PLDT Inc., is aiming to finish the study for its 12th data center site in Cavite this year, which is targeted to double the capacity of its largest data center to date.

“We are checking the potential site. What we are doing now is what you call a vulnerability and risk assessment. It is a formal study that we are conducting,” ePLDT President and Chief Executive Officer Victor S. Genuino told reporters on the sidelines of the Pilipinas AI launch on Monday.

The 12th data center, expected to rise in General Trias, Cavite, will be ePLDT’s largest once completed, with a planned capacity of about 100 megawatts (MW), double the current 50-MW capacity of VITRO Sta. Rosa. VITRO Sta. Rosa, located on a five-hectare lot in Sta. Rosa, Laguna, is considered the country’s largest data center campus.

The company is optimistic construction for the planned site will start next year, once the study is completed, Mr. Genuino said.

“We are hopeful that with data sovereignty and everything we can accelerate and fill up our VITRO Sta. Rosa. Once it reaches a certain capacity of occupants and customers, then we can trigger the discussion on our data center 12,” he added.

Mr. Genuino also said the company is carefully evaluating trends for the new data center to ensure it uses the latest technology.

“We have to look at the site, obviously, the site location, and then we have to monitor the trends in technology. So that when we build something, we want to ensure that it is not old technology, it will be new technology,” he said.

In April, the company said construction for its next data center is scheduled to begin in 2026, with completion expected by 2028. The project will be scaled up in phases, starting at 20 MW.

VITRO, Inc., ePLDT’s data center arm and a PLDT group subsidiary, currently operates 11 data centers across the Philippines — including in Makati, Taguig, Pasig, Parañaque, Subic, Clark, Cebu, and Davao — with a combined capacity of nearly 100 MW, supporting enterprise and hyperscale demand.

Mr. Genuino said discussions to sell a stake in ePLDT’s data center assets are ongoing.

“We have an ongoing discussion. We are just trying to find the right partner for our data center assets. It is a very critical asset. We just want to find the right partner for it,” he said.

In August, PLDT Chairman Manuel V. Pangilinan said the company had resumed talks to sell a stake in its data center business.

ePLDT is currently negotiating with several companies to sell 49% of its data center business, valued at $1 billion.

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Converge tops download speeds, reliability in Philippine broadband — Opensignal

ONVERGE ICT SOLUTIONS, INC.

CONVERGE ICT Solutions, Inc. recorded the fastest download speeds and led in reliability experience among fixed broadband providers in the Philippines, according to the September 2025 Opensignal report.

The company posted average download speeds of 56 megabits per second (Mbps) and also topped the video experience category with a score of 70.8 out of 100, reflecting strong performance for streaming, gaming, and remote work.

It also led in reliability experience, scoring 510 out of 1,000 points, ahead of Globe Telecom, Inc.’s GFiber with 492 and PLDT Inc. with 489.

The report, authored by Robert Wyrzykowski, principal data analyst at Opensignal, noted that Converge has surpassed Globe in fixed broadband subscriber market share, becoming the country’s second-largest provider.

Converge expanded its fiber footprint from six million homes passed in 2020 to over 16 million in 2025.

Fiber-to-the-home (FTTH) now serves more than 80% of Filipino households, a major shift from LTE-based fixed wireless access, which dominated home internet in 2020, Opensignal said.

PLDT remains the market leader with a 42% share and the largest fiber network at 18.5 million homes passed.

Globe holds nearly 20% of the market and is upgrading its copper network to fiber, serving about 400,000 GFiber Prepaid subscribers, according to Opensignal.

Meanwhile, DITO Telecommunity Corp. is focusing on 5G fixed wireless access, targeting two million subscribers by the end of 2026, the report noted.

Opensignal assessed broadband performance using five metrics: consistent quality, download speed, upload speed, video experience, and reliability experience.

Converge led in download speed, video experience, and reliability; Globe GFiber scored highest in consistent quality with 68.1% of tests meeting performance thresholds; and PLDT led upload speeds at 42.3 Mbps.

Regionally, Converge won eight outright and four joint awards, performing strongest in Mindanao and Visayas.

Globe followed with five sole and nine joint wins, particularly in North and Central Luzon. PLDT earned two outright and five joint awards, mainly in Metro Manila.

Converge has also partnered with satellite provider Starlink to expand connectivity in remote areas and is migrating Sky Cable subscribers to its fiber network.

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

Maynilad IPO delay seen as measured move to secure cornerstone support

MAYNILADWATER.COM.PH

MAYNILAD WATER SERVICES, Inc.’s decision to move its initial public offering (IPO) to a date no later than Nov. 7 gives cornerstone investors more time to participate and allows investors additional time to assess valuation and allocations, analysts said.

“Investors will naturally need more time to assess valuation attractiveness and determine their desired allocations,” Jarrod Leighton M. Tin, equity research analyst at DragonFi Securities, Inc., said in a Viber message on Monday.

Luis A. Limlingan, head of sales at Regina Capital Development Corp., said, “Cornerstone investors play a crucial role in establishing a solid foundation for an IPO by offering early backing and confirming the offering’s value.”

He added, “For Maynilad, delaying the listing provides additional time to lock in these key commitments, ensuring support for the IPO. At the same time, broader market conditions, such as economic trends, interest rates, and investor sentiment, can affect the timing and pricing.”

In a disclosure to the Philippine Dealing and Exchange Corp. last Thursday, Maynilad said the target listing date was moved from Oct. 30 to no later than Nov. 7 to accommodate cornerstone investors and allow potential investors to better understand its business model.

The IPO had initially been scheduled for Oct. 30, which itself was already a delay from the company’s July target.

In July, Maynilad Chairman Manuel V. Pangilinan said the company had secured a firm commitment from one of its two planned cornerstone investors.

Mr. Tin noted that cornerstone participation can help set a fair offer price and reassure the market, adding, “A key factor yet to be clarified is the implied dividend yield at the offer price — a critical metric that will likely anchor investor demand, particularly among income-focused buyers.”

He also said, “The participation of cornerstone investors can help establish pricing discipline, as their involvement often signals institutional confidence but also pressure to secure a fair entry point. In the current bearish market environment, pricing the offer toward the lower end of the indicative range would likely improve take-up and support aftermarket performance. That said, prolonged delays could weigh on sentiment.”

“An IPO delay can often pose concerns for investors, signaling uncertainty or last-minute adjustments. Although cornerstone investors can reassure the market about the offering, the postponement might still prompt questions about the company’s preparedness or external market factors. However, if handled efficiently, the delay could ultimately strengthen investor confidence, especially if it leads to more favorable terms or better long-term results for those involved,” Mr. Limlingan said.

Analysts also stressed the importance of clear communication. Mr. Tin said, “Timely communication and transparent pricing rationale will therefore be essential to sustaining investor confidence ahead of the final offering.”

Maynilad’s IPO will be the second this year, following Cebu-based fuel retailer Top Line Business Development Corp.’s P732.6-million offering in April.

Under its legislative franchise, Maynilad is required to offer at least 30% of its total capital stock to the public by January 2027.

The IPO will include up to 1.66 billion common shares, with up to 24.9 million primary shares and 249.05 million shares under an overallotment option, each priced up to P20.

Secondary shares will be offered by Maynilad Water Holding Company, Inc., the company’s principal shareholder, while funds from the primary shares will be used for capital expenditures and general corporate purposes.

Pangilinan-led conglomerate Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — Alexandria Grace C. Magno

SEC clears Damosa Land’s rental pool program

DAMOSALAND.COM

THE Securities and Exchange Commission (SEC) approved Damosa Land, Inc.’s rental pool program, the first registration under the recently implemented Securing and Expanding Capital in Real Estate Non-Traditional Securities (SEC RENT) guidelines, allowing the developer to offer units in its TRYP by Wyndham Samal condotel project as investment contracts while retaining ownership.

In a statement on Tuesday, the commission said the SEC en banc approved Damosa Land’s registration statement for 100 certificates of participation in the project during its meeting last Friday, subject to fulfilling the remaining requirements.

The certificates cover 94 standard units priced at P50,000 each, four deluxe units at P75,000 each, and two suite units at P100,000 each, and are valid for 20 years from the start of operations.

The commission noted that units under the TRYP by Wyndham Samal condotel project will be included in a mandatory rental pool program, where they can be rented out and managed like hotel rooms without transferring ownership.

Issued in July, the SEC RENT guidelines aim to streamline capital raising for developers offering investment returns through rental properties.

Rental pool agreements are investment contracts in which a developer sells or offers units in projects such as condominiums, hotels, resorts, or dormitories, with the condition that these units are placed in a rental pool managed by the developer or a third-party operator.

Damosa Land’s program aims to raise up to P5.2 million to cover pre-operating expenses and provide a financial buffer for the first three months of operations.

According to the company’s timeline submitted to the SEC, the project is scheduled to launch in the fourth quarter of 2025, with construction starting early the following year. Completion is expected by the third quarter of 2028, with operations set to begin in the fourth quarter of the same year.

The TRYP by Wyndham Samal condotel project is located in Barangay Limao, Samal, Davao del Norte. — Alexandria Grace C. Magno

Petron accredited as first LPG training hub in oil sector

PETRON.COM

LISTED oil company Petron Corp. has been certified by the Department of Energy (DoE) as a training institution in the liquefied petroleum gas (LPG) sector, the first oil company to receive the accreditation.

The DoE accreditation allows Petron to certify service personnel from its refinery, terminals, haulers, dealers, and retail outlets, the company said in a statement on Tuesday.

The accreditation aligns with the LPG Industry Regulation Act, which seeks to raise industry standards and enforce stricter penalties for violations in the LPG sector, according to the company.

Under the law, all individuals engaged in activities or facilities regulated by the DoE within the LPG industry must complete an approved training program conducted by DoE-accredited organizations.

“As more LPG personnel undergo proper training from qualified institutions, consumers can be more confident in the quality and reliability of the LPG products they receive,” DoE-Oil Industry Management Bureau Director Rino E. Abad said.

All LPG personnel trained by Petron will receive a DoE certificate, which will be submitted to the DoE as part of their licensing requirements.

Petron will begin its LPG training sessions with dealers and retailers in Ormoc, Leyte.

Petron remains the leading oil industry player, with a 24.9% market share as of June 2024, according to DoE data.

The company has a combined refining capacity of nearly 270,000 barrels a day, operates about 50 terminals in the region, and runs roughly 2,700 service stations selling gasoline and diesel. — Sheldeen Joy Talavera

Transactions done via InstaPay, PESONet grow to P15.4 trillion

STOCK PHOTO | Image Jannoon028 from Freepik

By Katherine K. Chan

THE COMBINED VALUE of transactions made via InstaPay and PESONet increased by nearly 47% year on year to over P15 trillion in the first eight months, data from the Bangko Sentral ng Pilipinas (BSP) showed, reflecting continued growth in online payments in the country.

Transactions coursed through the two automated clearing houses soared to P15.348 trillion in the eight months ended August from P10.441 trillion in the comparable year-ago period.

In terms of volume, InstaPay and PESONet transactions more than doubled (161.6%) to 2.398 billion in the period from 916.582 million a year ago.

Broken down, the total value of InstaPay transactions rose by 9.5% year on year to P6.988 trillion in the period from P6.379 trillion.

The volume of transactions made via the payment gateway ballooned by 172.9% to 2.322 billion from 851.025 million last year.

Meanwhile, the value of transactions done through PESONet doubled (105.8%) year on year to P8.36 trillion at end-August from P4.062 trillion.

The volume of transactions that went through the channel reached 75.833 million, a 15.7% increase from the 65.556 million seen a year earlier.

InstaPay and PESONet are automated clearing houses under the central bank’s National Retail Payment System framework.

InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

Meanwhile, PESONet is mainly used for high-value transactions and may be considered as an electronic alternative to paper-based checks.

The steady growth of InstaPay and PESONet transactions indicates the wider adoption of digital payments in the country, said John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies.

“It reflects stronger adoption of digital payments driven by fintech (financial technology) growth, wider e-commerce usage, and the push for financial inclusion,” he said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that more consumers and businesses are using electronic payment channels for convenience and efficiency.

“More people (are) also finding it more convenient, cheaper, faster, and safer to move funds from one bank to another using InstaPay and PESONet any time and from anywhere, instead of over-the-counter transactions,” he said.

Reinielle Matt M. Erece, economist at Oikonomia Advisory & Research, Inc., said the increase in InstaPay and PESONet transactions also reflects strong consumer sentiment.

“Improving consumer confidence for the second half of the year is a signal that households are now willing to spend more towards the latter part of 2025,” he said in a Viber message. “The improving consumer confidence is evident with the growth of transactions done through these channels.”

He said transactions will continue to grow in the coming months due to expectations of increased spending during the holiday season and amid lower borrowing costs.

“Transactions are likely to keep growing as more government, corporate, and MSME (micro, small, and medium enterprises) payments go digital, supported by the BSP’s continued efforts toward a cash-lite economy,” Mr. Rivera added.

The central bank wants digital payments to make up 60-70% of the total volume of retail payments by 2028 in line with the Philippine Development Plan.

The share of online payments in monthly retail transactions stood at 57.4% in terms of volume and 59% in value terms in 2024, according to the BSP’s 2024 Status of Digital Payments in the Philippines report. These are up from 52.8% and 55.3%, respectively, in 2023.

NLEX Corp. launches P200-million SCTEX upgrade program

NLEX.COM.PH

NLEX CORP. said it is investing P200 million in technology and infrastructure upgrades for the Subic-Clark-Tarlac Expressway (SCTEX).

“The system enhancement program in SCTEX is essential not only for ensuring faster and smoother travel, but also for enforcing stricter road discipline. These upgrades will significantly improve the safety and reliability of the road network, boosting motorists’ confidence,” NLEX President and General Manager Luis S. Reñon said in a media release on Tuesday.

The technology upgrade includes the installation of additional closed-circuit televisions (CCTVs) and speed cameras to strengthen expressway monitoring, as well as the modernization of computer systems and equipment for data processing.

NLEX, a unit of Metro Pacific Tollways Corp. (MPTC), is the builder-concessionaire and operator of major expressways including North Luzon Expressway, SCTEX, and NLEX Connector.

SCTEX is a 94-kilometer toll road linking Central Luzon’s Subic Bay Freeport Zone in Zambales, Clark Freeport Zone in Pampanga, and the Central Technopark in Tarlac.

Aside from technology upgrades, NLEX said it is also implementing infrastructure improvements and maintenance for the expressway.

The company said its annual pavement repair program for SCTEX began this month, adding that it has also partnered with SCTEX owner Bases Conversion and Development Authority (BCDA) for the repair and strengthening of the Pasig-Potrero Bridge.

MPTC is the tollway unit of Metro Pacific Investments Corp. (MPIC), one of the three key Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc.

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

Security Bank appoints Singaporean banker as next president and CEO

Victor Lee Meng Teck — SECURITY BANK CORP.

SECURITY BANK Corp. has appointed Victor Lee Meng Teck as its next president and chief executive officer (CEO) starting January.

Mr. Lee will take over the post now held by Sanjiv Vohra by next year following the completion of his work permit, visa, and other regulatory requirements, the bank said in a disclosure to the stock exchange on Tuesday.

Mr. Vohra, who was appointed to his post in July 2019 or just months before the coronavirus pandemic, will be a senior advisor to Security Bank’s board once he steps down.

“I’m honored to be entrusted with this responsibility. Security Bank has built a strong reputation for customer-centricity, innovation, and its distinct BetterBanking experience. I look forward to working with Sanjiv, the board, and all employees to continue building on this foundation and delivering sustainable growth for our stakeholders,” Mr. Lee said.

“Our journey over the past six years has been one of total transformation — reimagining Security Bank from front to back. We have strengthened our people, embraced new technology, modernized platforms, and, most importantly, embedded customer-centricity at the heart of everything we do… As I step aside, I am confident the bank is well-positioned to continue its momentum and achieve even greater success in the years ahead,” Mr. Vohra said.

Mr. Lee is from Singapore and has over 30 years of leadership experience across various companies in Asia. He most recently served as CEO of CIMB Singapore and CEO of Growth Markets for CIMB Bank Bhd.

“We’re grateful to Sanjiv for his steady leadership during one of the most challenging periods in recent history. His vision and dedication have left the bank stronger, more resilient, and well-prepared for the future. As we welcome Victor, we’re confident this seamless transition will allow us to sustain momentum and capture new opportunities,” Security Bank Chairman Cirilo P. Noel said.

The bank’s net income grew by 7.85% year on year to P3.04 billion in the second quarter on the back of double-digit revenue growth.

This brought its first-half net profit to P5.86 billion, up by 7.59% year on year.

Security Bank’s shares rose by P1.30 or 1.85% to close at P71.40 apiece on Tuesday. — A.M.C. Sy

Safeguarding heritage a focus as NCCA kicks off Museums and Galleries Month

NATIONAL MUSEUM OF FINE ARTS — COMMONS.WIKIMEDIA.ORG

TO HIGHLIGHT the importance of art galleries and museums in promoting Filipino culture, the National Commission for Culture and the Arts (NCCA) has revealed the lineup of events to be held during Museum and Galleries Month.

Held every October since 1991 by virtue of Presidential Proclamation No. 798, the celebrations focus on the preservation of artistic heritage, the promotion of artistic expression, and the fostering of a deeper understanding of Philippine history and identity.

“Museums and galleries are more than just four-walled spaces that house objects. They are vessels of our nation’s identity,” said Bernan Joseph Cruz, NCCA deputy executive director for operations, at the press launch held on Sept. 24 at the Museo ng Muntinlupa in Muntinlupa City.

“They carry the stories that give voice to the richness of our history, our arts, our culture,” he added.

With the theme “Resilient Museums and Galleries: Educating for Preparedness and Recovery,” the NCCA and the National Museum take on the challenge of safeguarding heritage amid unexpected crises.

“This theme emphasizes the vital role of these institutions in protecting our heritage while also serving as centers of learning and education that prepare communities for disruptions, such as natural disasters, health crises, and social unrest,” said Mr. Corpuz

EVENTS
Arts Month will kick off on Oct. 7, 9 a.m., at the Museo Kordilyera of the University of the Philippines Baguio. It will feature an art fair and workshops.

Throughout the month, private and public museums nationwide will participate in the celebration through exhibits, fairs, workshops, and events that aim to reach students and communities.

The Mindanao Art Fair started even before the official Museum Month started, wrapping up its exhibit at SM Lanang in Davao City today.

There will be an NCCA Gallery Opening on Oct. 7 and 8 in Intramuros, Manila.

Over in Tarlac City, the Luzon Art Fair will be held from Oct. 9 to 12 at the Bulwagang Kanlahi, with the goal to revitalize Central Luzon’s art and culture scene. Meanwhile, artworks inspired by the social, cultural, and community environments of the Northern Luzon region will be on view at the Tam-Awan International Arts Festival in Tam-Awan Village, Baguio, from Oct. 10 to 12.

Finally, the ManilART fair will take place at the SMX Aura Convention Center in Taguig City, from Oct. 15 to 19.

The NCCA will launch the MGM 2025 Microsite Calendar on Oct. 2. It will offer a comprehensive list of activities slated to be held around the country for the entire month.

There will also be a summit in Baguio City where museums and galleries will be able to discuss heritage preservation.

A closing event will be held on Oct. 25 at the Museo ng Muntinlupa.

Renee C. Talavera, NCCA chief of the program management division said that museums are “spaces that nurture strength, inspire recovery, and remind us that resilience is deeply cultural, rooted in identity.

“They teach us not only to appreciate culture, but also to prepare for challenges,” she said. “They provide comfort and emotional strength during times of uncertainty, and they design programs that help rebuild and empower communities — showing us that resilience is not just survival, but a way of living with hope, purpose, and solidarity.” — Brontë H. Lacsamana

The Papal guidelines on artificial intelligence: Looking at the dangers

STOCK PHOTO | Image by DC Studio from Freepik

(Part 2)

It should be no surprise that despite all the numerous benefits to society we enumerated, there are also numerous social costs that Artificial Intelligence (AI) brings with it. It was no different during the First Industrial Revolution that brought with it many serious harms to society (e.g., inhuman treatment of workers, monopoly practices, cutthroat competition, environmental pollution, moral decadence, etc.). Different political systems tried to address the social harms brought about by the First Industrial Revolution and the subsequent ones through appropriate controls and regulations.

A good number of political leaders turned for moral guidelines to the social teachings found in the papal encyclicals that were addressed, not only to Catholics or Christians, but to all “men and women of goodwill.” We can assume that the same learning process can be expected as the world confronts the possible harms that AI and other technologies associated with Industrial Revolution 4.0 will bring with them.

Again, we turned to ChatGPT for a summary of AI’s potential harms to society:

1. Job Displacement and Economic Inequality. Automation replaces human labor, especially in repetitive or low-skill jobs (e.g., factory work, data entry, call centers); widening inequality as high-tech industries grow while others shrink; and skills gaps develop as many workers are unprepared for the more knowledge-intensive jobs that AI creates. Specific example: Self-checkout machines and delivery drones reduce the need for cashiers and drivers.

2. Bias and Discrimination. AI models trained on biased data can produce racist, sexist, or unfair outcomes; there can be discrimination in hiring, lending, policing, and healthcare. Specific example: Facial recognition systems have been shown at times to misidentify black and Asian faces more often than white faces.

3. Loss of Privacy and Mass Surveillance. AI enables real-time facial recognition, location tracking, and data profiling; governments (as in China) and corporations can use AI to monitor behavior without consent. Specific example: China’s social credit system uses AI to track citizens’ activities and behavior.

4. Autonomous Weapons and Warfare. AI is being integrated into lethal autonomous weapons (drones, robots) without human oversight; this raises concerns about war crimes, escalation, and lack of accountability. Specific example: “Killer robots” could make life-and-death decisions without human intervention.

5. Misinformation and Manipulation. AI can generate deepfakes, fake news, and propaganda at scale; it can be used to manipulate public opinion during elections or social movements (this was already rampant during the last Philippine elections). Specific example: AI-generated political videos or fake voices can mislead the public.

6. Loss of Human Agency and Autonomy. An over-reliance on AI can erode critical thinking, decision-making, and freedom of choice; people may defer to algorithms even when they are wrong or harmful. Specific example: Social media algorithms influence what you see, think, and believe — without your realizing it.

7. Legal and Ethical Uncertainty. AI decisions (e.g., in hiring, insurance, or criminal justice) are often non-transparent. Who is responsible when an AI system makes a harmful mistake? Specific example: An AI-driven car crashes — who is liable: the company, the programmer, or the user?

8. Environmental Impact. Training large AI models consumes huge amounts of energy. It contributes to carbon emissions and environmental degradation. Specific example: Training GPT-3 was estimated to emit as much CO2 as five cars over their lifetime.

9. Social Fragmentation and Polarization. AI-curated content (e.g., on TikTok or Facebook) can amplify echo chambers, hate speech, and extremism; it can make societies more divided and distrustful. Specific example: Social media algorithms prioritize content that triggers strong emotional responses — often outrage.

To summarize, societal harms of AI can include jobs losses, economic equality, and skills gap for the economy; unfair treatment biased on race, gender, or class; loss of privacy through surveillance, data misuse, and loss of consent; autonomous weapons, AI in military applications; deepfakes, fake news, and election interferences; reduced critical thinking as a result of overdependence on algorithms; unclear personal responsibility or lack of legal accountability; high energy use and carbon emissions from AI training; breakdown of social cohesion because of echo chambers, polarization, and extremism.

These social harms that can be inflicted by AI are not inevitable if the appropriate controls and regulations are in force. It will be necessary to have general moral and ethical guidelines that will be the bases for such controls and regulations coming from the State and from private initiatives of industry and business organizations themselves.

As was the case with the First Industrial Revolution, a good number of the laws, controls, and regulations that prevented or at least minimized the social costs were inspired by the moral guidelines that were contained in Rerum Novarum of Pope Leo XIII, such as those related to the setting of minimum wages, the role of labor unions, the prevention of child labor, etc.

It is, therefore, providential that from the very beginning of his papacy, Pope Leo XIV has already announced that the Magisterium of the Catholic Church under his care will be pro-active in giving moral and ethical guidelines related to the new technologies introduced by the Fourth Industrial Revolution.

True to his promise on the day of his election, Pope Leo XIV wasted no time in coming out with clear ethical guidelines on the use of Artificial Intelligence. The following is a summary of his key guidelines issued between May and July this year:

1. AI as a tool, not a substitute for humanity. He emphasizes that despite AI being a “exceptional product of human genius,” it must always remain a tool and never replace or diminish human dignity or fundamental freedoms (from Vatican News). Notably, he told world leaders: “Artificial Intelligence functions as a tool for the good of human beings — not to diminish them, not to replace them (Catholic News Agency).

2. Protecting youth and nurturing true wisdom. In a message to the AI and Ethics conference in Rome (held last June), he warned about AI’s possible negative effects on the intellectual, neurological, and spiritual development of children and young people (Catholic News Agency). He asserted that access to extensive data should not be mistaken for intelligence, which is grounded on openness to life’s deeper questions and commitment to truth and goodness. (Catholic News). He urged that “Our youth must be helped, and not hindered, in their journey toward maturity and true responsibility.”

3. Fostering ethical governance and the common good. Addressing a summit in Geneva (last July), he pointed out that ethical responsibility lies both with developers and users: “Although responsibility for the ethical use of AI begins with those who develop, manage, and oversee them, those who use them also share in this responsibility.” He underlined the need for regulatory frameworks and ethical management centered on the human person, beyond mere efficiency or utility. (Vatican News)

4. Advancing peace, dialogue, and integral human development. In a message tied to the World Summit on AI (Geneva), he conveyed that AI must help build “more human order of social relations,” “peaceful and just societies,” integral human development, and fraternity rather than fostering conflict. He warned that AI lacks moral discernment and cannot form genuine relationships, so its development must be accompanied by discernment, respect for human values, and conscience-based judgment.

5. Evaluating AI via a “Superior Ethical Criterion.” He insisted that the benefits or risks of AI should be assessed by how well it supports the integral development of the human person and society, including material, intellectual, and spiritual well-being. He further warned of a societal “loss — or at least an eclipse — of the sense of what is human,” urging deeper reflection on our shared human dignity.

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

Lorenzo Shipping seeks SEC nod to raise capital stock

LORENZOSHIPPING.COM

LISTED Lorenzo Shipping Corp. (LSC) has filed an application with the Securities and Exchange Commission (SEC) to increase its authorized capital stock, after securing approval from its board of directors and stockholders.

In a disclosure to the exchange, the company said shareholders approved amendments to its articles of incorporation to raise its capital stock to P2 billion from P991.2 million, with a par value of P1 apiece.

“Out of the increase of P1.01 billion, the amount of P252.2 million has been subscribed,” the company said.

It added that National Marine Corp. paid P151.5 million, which is part of the subscribed amount.

LSC, established in 1972 to handle domestic inter-island cargo, has shifted from break-bulk to containerized shipping.

It operates a fleet of vessels serving major ports in the Philippines and manages equipment, container yards, and warehouses. — Alexandria Grace C. Magno

Peso continues to depreciate vs dollar

PHILIPPINE STAR/ WALTER BOLLOZOS

THE PESO continued to depreciate against the dollar on Tuesday to log a new two-month low, with market sentiment remaining negative due to concerns over corruption involving state infrastructure projects and a potential US government shutdown.

The local unit dropped by 5.1 centavos to close at P58.196 versus the greenback from its P58.145 finish on Monday, Bankers Association of the Philippines data showed.

This was its weakest close in two months or since its P58.32-per-dollar finish on July 31.

The peso opened Tuesday’s session stronger at P58.05 versus the dollar. It climbed to a high of P58.03, while its worst showing was at P58.37 against the greenback.

Dollars exchanged increased to $1.69 billion on Tuesday from $1.47 billion on Monday.

“The dollar-peso remained relatively weak due to the ongoing investigation on alleged corruption in the Philippine government,” the first trader said in a phone interview.

The government is currently investigating alleged corruption in state infrastructure projects, with some lawmakers and Public Works department officials being accused of receiving payoffs.

“The peso continued to weaken on market concerns from the looming US government shutdown as Republican and Democrat congressmen still failed to reach a budget bill,” the second trader said in an e-mail.

For Wednesday, the first trader expects the peso to move between P57.90 and P58.30 per dollar, while the second trader said it could range P58.10 to P58.35.

The US dollar held steady on Tuesday ahead of a possible US government shutdown that could disrupt the release of the monthly jobs report this week, Reuters reported.

Government funding was set to expire at midnight on Tuesday (0400 GMT) unless Republicans and Democrats agree to a last-minute temporary spending deal.

The dollar index, which has already fallen nearly 10% this year, was last down 0.1% on the day at 97.785. — A.M.C. Sy with Reuters

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