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EastWest net profit falls 18% in H1 on weak loan activity

East West Banking Corp

East West Banking Corp. (EastWest Bank) booked lower net earnings in the first half of the year due to decline in both loan revenue and trading gains. 

Net profit fell 18% from a year earlier to P3.8 billion in the six months to June, the bank said in a statement. 

“The lower income was mainly due to lower loan revenue and trading gains,” it said. 

Net interest income declined 14% to P11.5 billion after it made fewer loans and realized weaker yields on both loans and fixed-income securities, the bank said. 

“This was partly cushioned by the decline in funding costs as the BSP maintained its accommodative monetary policy,” EastWest said. 

The return on equity was 13.3% at end of June, against the year-earlier 17.4%. 

The net interest margin was at 7.3%, down from 8.3% a year earlier. “(The bank’s) consumer-heavy loan portfolio allowed the Bank to maintain its industry-leading margins,” it said. 

Trading gains declined 49% year-on-year to P1.6 billion. 

Fee income rose 22% to P2.2 billion as the economy and banking transaction volume started to improve. 

Revenue in the first half declined 19% to P15 billion. 

Provisioning for loan losses fell 74% to P1.4 billion, after it had recognized a significant proportion of its loan losses last year. 

“Based on current economic trends and the expected acceleration of vaccination, we believe the worst is over and economic conditions should start to improve.  Provisions for loan losses this year should be lower from the abnormally high levels last year.  Nonetheless, we continue to monitor and manage our credit risk taking” EastWest Chief Lending Officer Jacqueline S. Fernandez said. 

Loan volume fell 12% to P225.8 billion, dragged down by weak demand and as the bank adopted a “prudent risk-taking” strategy. 

Deposits rose 6% to P317.8 billion, driven by the 21% growth in money held in current accounts and savings accounts (CASA) which offset a 20% decline in time deposits.  The CASA ratio improved to 72% at the end of June from 63% a year earlier. 

The capital adequacy ratio stood at 14.7% at the end of June, higher than the year-earlier 13%, while Tier-1 common equity came in at 13.6%, up from 11.9% previously. Both are well above minimum regulatory requirements. 

“We expect to sustain decent levels of profitability this year. We believe the economy is at the inflection point of recovery.  We expect to come out from this pandemic with higher capital buffers and in a good position to recover lost ground and resume our growth programs,” EastWest President and Chief Executive Officer Antonio C. Moncupa, Jr. said. 

Shares of the bank, controlled by the Gotianun family, closed at P9.33 Friday, down 0.74%. – Beatrice M. Laforga 

BSP raises P100 billion from issue of 28-day bills

BW FILE PHOTO

The central bank made a full award of the P100 billion worth of 28-day bills on offer Friday, with strong demand pushing down rates. 

The Bangko Sentral ng Pilipinas (BSP) said total tenders amounted to P183.25 billion, or 1.83 times the supply of bills. 

Demand rose 10.5% from the previous auction last week. 

The average yield was 1.749%, down from 1.762% a week earlier. 

Banks sought yields of between 1.74% and 1.753%, trending lower from the 1.7475%-1.78% range in the previous auction. 

“The auction results are in line with current market developments as financial system liquidity remains ample,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement. 

The Monetary Board of the BSP kept its key policy rates steady to support the economy’s recovery, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said via Viber. 

For the sixth straight meeting on Thursday, the central bank retained its key policy rate unchanged at a record low of 2%, as expected by the 18 analysts polled by Businessworld last week. – Beatrice M. Laforga 

The BSP also maintain the overnight deposit and lending rates at 1.5% and 2.5%, respectively. 

It cited the need to support economic recovery, especially after several parts of the country, including Metro Manila, was placed under the strictest form of lockdown again amid a resurgence in infections. 

“Moving forward, the BSP’s monetary operations will continue to be guided by its latest assessment of liquidity conditions and market developments,” Mr. Dakila said. 

Assets managed by trusts rebound in March

The assets under management (AUM) of 30 trust entities rose 41.3% year-on-year to P4.6 trillion in March, led by unit investment trust funds (UITFs), the Bangko Sentral ng Pilipinas (BSP) reported Friday. 

In briefing, BSP Governor Benjamin E. Diokno said the total was equivalent to one-fourth of the assets of the banking system, indicating high levels of liquidity in the sector. 

Some 43.8% of the assets were invested in debt securities, 23.5% in equities and 23.4% in bank deposits, he said. 

“The notable growth in UITFs is a welcome development,” he said. 

“The BSP recognizes the importance of UITFs as an avenue for small retail investors to participate in the securities markets. Certainly, the online accessibility of UITFs contributed to their growth,” he added. 

At the height of the lockdowns in March 2020, AUM fell following the decline in the stock market and as investor preferences shifted in light of the heightened uncertainty. 

“The stable growth of the trust industry reflects the deep-rooted relationship between clients and trust entities, and the continued confidence of investors in the fund and asset management business,” Mr. Diokno said. 

The BSP continues to improve its regulatory framework for trust entities, with more regulations to be issued under its “Trust Business Model Initiative.” 

In June, the central bank issued two draft circulars aiming to streamline the requirements for financial institutions’ creation of UITFs. 

Mr. Diokno said regulators are also scheduled to release rules that will set comprehensive investment guidelines for trust entities; enhancements to the onboarding and client suitability assessment process; guidelines for measuring the performance of UITFs; guidance to align the management of UITFs with the International Organization of Securities Commissions’ Principles; as well as amendments to Personal Management Trust regulations. – Beatrice M. Laforga 

DBP tapped as conduit for distributing Agriculture dep’t aid

THE Development Bank of the Philippines (DBP) has been appointed a distributor of financial assistance to farmers and fishing communities for funds disbursed by the Department of Agriculture (DA). 

In a statement Friday, DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bank will dispense cash or loan interest subsidies and other forms of assistance to qualified agri-fishery enterprises, agriculture cooperatives, farmers, fisherfolk, and farm workers.  

Under the agreement signed by DA and DBP, the funds will be downloaded directly to DBP accounts or those maintained in other banks, as well as electronic money issuers (EMIs) and other Bangko Sentral ng Pilipinas-supervised financial institutions. The bank will use electronic fund transfer channels such as the Philippine Payment and Settlement System (PhilPASS) and DBP-accredited payout outlets.  

Mr. Herbosa said the DBP will also be working with the Rural Bankers Association of the Philippines and various EMIs to implement the project.  

“The DA will also be introducing an ‘Interventions Monitoring Card’ that will serve as an identification card to access government assistance for farmers enrolled in the farmers’ registry, starting with the second round of the Rice Farmers’ Financial Assistance worth P5,000 each, that will be disbursed in the last quarter of the year,” Mr. Herbosa said. — Revin Mikhael D. Ochave   

Peso drops further on Delta surge fears

The peso weakened further Friday as the growing threat of the Delta variant of the coronavirud continued to weigh on financial markets. 

The peso closed at P50.48 to the dollar , against its Thursday close of P50.39, according to Bankers Association of the Philippines website. 

The peso opened at P50.43, rising to a high of P50.37. The low was P50.49. 

Dollars trading volume eased to $641.17 million from $723.3 million the day prior. 

Weekonweek, the currency shed eight centavos from its P50.40 finish the previous Friday. 

The peso also weakened after the stock market slipped to one-week lows amid growing concerns over the Delta variant, raising the prospect of an extended lockdown, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said via Viber. 

Health authorities reported 13,178 new coronavirus infections Friday to bring the total number of active cases to 96,395. There were also 299 deaths reported due to the virus that day, pushing the tally to 29,838. 

The benchmark Philippine Stock Exchange index (PSEi) fell 3.6% or 236.38 points to 6,320.19 Friday, while the broader all shares index declined 2.04% or 82.99 points to 3,976.94. 

The Philippine Chamber of Commerce and Industry (PCCI) in a statement Friday warned that extending the hard lockdown imposed in Metro Manila to five weeks could further hamper economic activity. 

A bond trader said the peso’s weakness was also due to upbeat US initial jobless claims data and strong producer inflation readings. 

The US producer price index increased by a record 7.8% in July, while initial claims for public jobless benefits fell by 12,000 to 375000 for the week ending Aug. 7, according to Reuters. —  Beatrice M. Laforga 

Budget Secretary Avisado resigns for health reasons

Budget Secretary Wendel E. Avisado resigned on Friday, citing health reasons, the President’s Spokesman Herminio L. Roque, Jr. said. 

In a Viber message, Mr. Roque said President Rodrigo R. Duterte accepted Mr. Avisado’s resignation on Friday, adding that Undersecretary Tina Rose Marie L. Canda will serve as officer-in-charge (OIC) of the Department of Budget and Management (DBM). 

Mr. Avisado filed for medical leave between Aug. 2 and 13 after contracting coronavirus disease 2019 (COVID-19). He was hospitalized for eight days and quarantined for more than a month. 

He was appointed Secretary in August 2019. 

“I am sad that our Secretary has to retire because of his health condition. I hope he recovers and will be well,” she said in a Viber message Friday. 

The executive department needs to meet a 30-day deadline under the Constitution to submit the budget to Congress following the State of the Nation Address, which was delivered this year on July 26. 

ACT-CIS Representative Eric G. Yap, who chairs the House committee on appropriations, said the resignation will not affect the 2022 budget’s timetable. 

Ms. Canda has said that Mr. Duterte approved the proposed P5.024-trillion National Expenditure Program (NEP) for 2022 even before Mr. Avisado went on medical leave. 

She said the DBM is finalizing the accompanying documentation required to submit the NEP to Congress, with a target date of Aug. 23. – Beatrice M. Laforga 

PHL working-hour losses in 2020 tops in ASEAN, ILO says

REUTERS

THE International Labour Organization (ILO) said Friday that the Philippines’ lost working hours due to the pandemic amounted to 13.6% of the hours that would have been worked had there been no crisis, the highest such figure in Southeast Asia.  

The regional average was 8.4%, with the Philippines’ outsized losses driven by the “stringency and duration of lockdown measures” and inability to contain the spread of the coronavirus.   

The ILO detailed its findings in its report, COVID-19 and the ASEAN labour market: Impact and policy response report, which was made public Friday.    

ILO Economist Christian Viegelahn, the report’s author, said in a news conference that the hardest hit sectors in the Philippine job market were retail, tourism, construction,, and manufacturing, consistent with global and regional trends.  

Mr. Viegelahn also said it is currently difficult to foresee the effects of the new enhanced community quarantine (ECQ), the strictest lockdown setting, on the job market in 2021. 

The report also noted that the labor market  in Southeast Asia is expected to “deteriorate further,” with the region estimated to lose 6.1% and 6.2% of its working hours in the first and second quarters, respectively.   

The ILO does not expect the region’s labor market to recover to pre-pandemic levels by 2022 as COVID-19 cases continue to rise. Its base-case estimate for lost hours is 7.4% this year.    

ILO Regional Director for Asia and the Pacific Chihoko Asada-Miyakawa urged countries in the region to “accelerate the policies and programs that will boost the resilience of enterprises, workers and households and set stronger foundations for decent work for all.”   

The report laid out solutions from the adoption of the ILO resolution, known as the Global Call to Action for a Human-centered Recovery from the COVID-19 Crisis that is Inclusive, Sustainable and Resilient, such as supporting small businesses, investing in skills development, protecting migrant workers, and gender-responsive approaches to employment.  - Russell Louis C. Ku 

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UNSPLASH

Brands should start creating a first-party data strategy to work with customers, said computer software company Adobe, in response to Google Chrome’s move to phase out third-party cookies (files created by third parties that are used by websites to remember user actions) by 2023. 

Third-party cookies, which power $100 billion in digital advertising, are used for targeted marketing, with 60% of all user experience personalization dependent on them, Adobe shared in a recent webinar. 

“If we have 12–18 months [left], how many organizations will make this deadline?” asked Gabbi Stubbs, Adobe’s senior product marketing manager for Asia Pacific.  

She recommended that brands take immediate steps to ensure a first-party data mindset and a smooth transition to a cookie-less digital world by  

  • assessing where the brand is in terms of data management,  
  • streamlining domains into a single one, 
  • consolidating siloed pieces of data, 
  • capturing durable identifiers such as e-mail addresses and phone numbers,  
  • using publisher and contextual targeting to create new audiences, 
  • and following privacy regulations.  

“Streamlining disconnected domains makes personalization easier,” she added, “and keeping data in one place helps offer the best user experience.”   

Privacy is the motivating force for killing third-party cookies. In a Jan. 2020 post titled “Building a more private web,” Google announced its plan to downgrade third-party cookies from its Chrome browser.   

Users are demanding greater privacy — including transparency, choice, and control over how their data is used — and it’s clear the web ecosystem needs to evolve to meet these increasing demands,” the post said.  

Other browsers such as Firefox and Safari have already phased out third-party cookies.  

MARKETING 101 

The future is in first-party data (or data created and stored by websites that are visited directly by users), Adobe said. 

It all boils down to a thoughtful exchange of value between brands and customers, Ms. Stubbs said at the webinar. “In a future in which customer data will be a growing source of competitive advantage, gaining consumers’ confidence and trust will be key.”  

Brands can leverage first-party data by rewarding e-mail opt-ins with subscriber-only incentives, (such as L’occitane en Provence’s product discounts), exclusive content (such as The New York Times’ newsletters), and personalized recommendations (such as TEDx’s TED Recommends).  

“I think the issue people have is us sharing data to people they never consented to,” said Harold Janson, chief personalization officer of Helium, an Australia-based consultancy that helps businesses integrate data and experience for optimized marketing. “There’s a tension between personalization and privacy.” 

Businesses can get personalization right by going back to Marketing 101 and defining what the market needs, said Mr. Janson. He also advised getting better at mapping customer data and moving these pieces of data into experiences.  

“It goes back to value proposition and delivering that value,” he said. “We need to nurture customers better and lean on first-party systems like customer data platforms.” — Patricia B. Mirasol 

Taliban capture Afghanistan’s Kandahar, other cities; embassies get staff out

Airman 1st Class Alec Blackmon provides security overwatch as the sun goes down July 16, 2013, at Camp Oqab in Afghanistan. -- US Air Force photo by Master Sgt. Ben Bloker/Flickr

KABUL — The Taliban have captured Afghanistan’s second biggest city of Kandahar, officials said on Friday, fueling fears the US-backed government could fall to the insurgents as international forces complete their withdrawal after 20 years of war.  

The Taliban also captured the towns of Lashkar Gah in the south and Qala-e-Naw in the northwest, security officers said.  

The Taliban claimed to have captured the third-largest city of Herat in the west after days of clashes there but Reuters was unable to confirm that.  

Kandahar is the heartland of the Taliban, ethnic Pashtun fighters who emerged in the province in 1994 amid the chaos of civil war to sweep through most of the rest of the country over the next two years.  

“Following heavy clashes late last night the Taliban took control of Kandahar city,” a government official told Reuters.  

Government forces were still in control of Kandahar’s airport, which was the US military’s second biggest base in Afghanistan during their 20-year mission.  

Lashkar Gah is the capital of the southern opium-growing province of Helmand, where British, US and other foreign forces battled the insurgents for years.  

A police officer said officials and commanders had flown by helicopter out of the last government stronghold there at around midnight on Thursday and some 200 soldiers had surrendered to the Taliban after tribal elders intervened.  

The fall of major cities was a sign that Afghans welcomed the Taliban, a spokesperson for the group said, according to Al Jazeera TV.  

The speed of the offensive has sparked recriminations among many Afghans over President Joseph R. Biden, Jr.’s decision to withdraw US troops, 20 years after they ousted the Taliban in the wake of the Sept. 11 attacks on the United States.  

Mr. Biden said this week he did not regret his decision, noting Washington has spent more than $1 trillion in America’s longest war and lost thousands of troops.  

US Senate Republican leader Mitch McConnell said the exit strategy was sending the United States “hurtling toward an even worse sequel to the humiliating fall of Saigon in 1975,” urging Mr. Biden to commit to providing more support to Afghan forces.  

“Without it, al Qaeda and the Taliban may celebrate the 20th anniversary of the Sept. 11 attacks by burning down our Embassy in Kabul.”  

The US State Department said Secretary of State Antony Blinken and Defense Secretary Lloyd Austin spoke to President Ashraf Ghani on Thursday and told him the United States “remains invested in the security and stability of Afghanistan.” They also said the United States was committed to supporting a political solution.  

GETTING OUT  

In response to the Taliban advances, the Pentagon said it would send about 3,000 extra troops within 48 hours to help evacuate US embassy staff.  

Britain said it would deploy about 600 troops to help its citizens leave while other embassies and aid groups said they too were getting their people out.  

The Taliban had until recent days focused their offensive on the north, a region they never fully controlled during their rule and the heartland of Northern Alliance forces who marched into Kabul with US support in 2001.  

On Thursday, the Taliban also seized the historic central city of Ghazni, 150 km (90 miles) southwest of Kabul.  

Security sources said Firuz Koh, capital of Ghor province, was handed over to the Taliban on Thursday night without a fight.  

The government still holds the main city in the north — Mazar-i-Sharif — and Jalalabad, near the Pakistani border in the east, as well as Kabul.  

On Wednesday, a US defense official cited US intelligence as saying the Taliban could isolate Kabul in 30 days and possibly take it within 90.  

‘GREAT URGENCY’  

The United Nations has warned that a Taliban offensive reaching the capital would have a “catastrophic impact on civilians” but there is little hope for negotiations to end the fighting with the Taliban apparently set on a military victory. 

In the deal struck with former US President Donald J. Trump’s administration last year, the insurgents agreed not to attack US-led foreign forces as they withdrew.  

They also made a commitment to discuss peace but intermittent meetings with government representatives have proved fruitless. International envoys to Afghan negotiations in Qatar called for an accelerated peace process as a “matter of great urgency” and for a halt to attacks on cities.  

A Taliban spokesman told Al Jazeera: “We will not close the door to the political track.”  

Pakistani Prime Minister Imran Khan said this week the Taliban had refused to negotiate unless Ghani resigned from the presidency. Many people on both sides would view that as tantamount to the government’s surrender, leaving little to discuss but terms.  

Pakistan officially denies backing the Taliban but it has been an open secret that Taliban leaders live in Pakistan and recruit fighters from a network of religious schools in Pakistan.  

Pakistan’s military has long seen the Taliban as the best option to block the influence of arch rival India in Afghanistan and to neutralise Pashtun nationalism on both sides of a border that Afghanistan has never recognised.  

Afghans, including many who have come of age enjoying freedoms since the Taliban were ousted, have vented their anger on social media, tagging posts #sanctionpakistan, but there has been little criticism from Western capitals of Pakistan’s role. — Reuters 

Ayala Group looks back at its almost two centuries of nation-building and serving Filipinos

Last July, the country’s oldest conglomerate launched #BrigadangAyala to address the needs of the diversified communities they serve.

According to the group, #BrigadangAyala is Ayala Group’s united response and action to serving people and communities nationwide. It is Ayala Group’s integrated response to its almost two-century-old commitment to national development by doing various social development and corporate social responsibility initiatives—ranging from disaster relief and response, assistance for public education, championing of social enterprises, and public health advocacy, among others. #AyalaForPH

‘Ticket to work’: Indian state brings vaccines to migrant workers’ doorstep

Sumita Roy Dutta/CC BY-SA 4.0/Wikimedia Commons

MUMBAI — As the health worker swabbed the skin on his arm with an alcohol wipe and prepared the syringe, Kartik Biswas felt an overwhelming sense of relief.  

He was finally about to receive his first dose of the coronavirus disease 2019 (COVID-19) vaccine, as part of a drive by the southern Indian state of Kerala to inoculate some of the country’s most marginalized people — migrant workers.  

It is rare for migrant workers, who make up one-fifth of India’s 100 million workforce, to be specifically targeted for state help.  

Yet in recent weeks, officials in the southern coastal state have been taking jabs to work sites, setting up vaccination camps and putting up public health posters in local languages, urging migrant workers to get protected against the virus.  

“I was home for a year during the lockdown and I got my job back with great difficulty. If my health suffers now, who will take care of my family? I was determined to get vaccinated,” said Mr. Biswas, 44, a supervisor at a construction site.  

Repeated lockdowns shuttered industries, leading to millions of job losses, while a brutal second wave in May overwhelmed the health care system in India, the second-worst affected country globally after the United States.  

Mr. Biswas, who moved to Kerala from Kolkata four years ago, was among 500 workers vaccinated at a three-day camp held at his work site last week by the labor department amid rising cases in Kerala.  

The state has given some 34,000 workers a first dose and about 1,000 a second dose, out of 300,000 on official records.  

“I feel relieved. Five of my six flatmates contracted COVID-19 at the peak of the second wave. I had started trying to get vaccinated ever since but could not,” Mr. Biswas told the Thomson Reuters Foundation by telephone.  

“Vaccination is critical for us to protect our lives and our future.”  

India aims to vaccinate all willing and eligible citizens by the end of the year, but the vaccination drive has been hit by shortages, hesitancy, and a digital divide.  

MIGRANTS RETURN TO SEEK WORK  

Migrant workers were among the worst hit by the pandemic. As many as 11.4 million returned to their home states during lockdown, government data shows, as jobs dried up.  

However, most economic activities have resumed as state governments eased restrictions with declining infections. Unemployment rates are gradually dropping, data from an independent think-tank shows.  

States like Kerala, a migrant magnet for the past decade, have seen migrants from across India returning to look for jobs in hospitality, factories and at construction sites.  

“We have a huge population of migrant workers and they should all be vaccinated. We have been getting limited doses but we are dividing what we get and holding separate vaccination camps for migrant workers,” said S. Chithra, Kerala’s labor commissioner.  

“We are trying to bring about awareness that vaccines are harmless. We have posters in Assamese, Bengali, Hindi and Odia languages that we are putting out on social media,” she told the Thomson Reuters Foundation.  

About 12% of India’s 940 million adults are fully vaccinated, and more than 40% have received a first dose, federal health ministry data shows.  

Vaccination is seen as key to unlocking more jobs and easier movement between states, several of which require people to take a COVID-19 test that can cost 800 rupees ($10.78) — a couple of days’ wages for many — or proof of double vaccination to enter.  

On the other side of India, in northeastern Assam state’s Tarinipur village, Tahir Hussain Talukdar said he had looked for the vaccine in local healthcare facilities three times but had no luck.  

Mr. Talukdar, 25, who lost his housekeeping job at a multiplex in southeastern Andhra Pradesh, said he had survived on aid over the past year.  

“There is no work in my village. The labor contractor I have been calling tells me to get vaccinated before I come. I need the vaccine because that’s the only way I can get work,” Mr. Talukdar said.  

MOST VULNERABLE  

India has redoubled its efforts amid fears of a third wave.  

Several construction firms and major businesses have arranged for their staff — both on payroll and informal workers — to get vaccinated.  

State health workers are climbing hills and sailing through rivers and lakes to reach the vast country’s remotest parts. But the pace of vaccination remains slow and many are still falling through the cracks, campaigners and migration experts warn.  

Migrants often remain invisible, even though their skills are desperately needed in manufacturing, construction and the hospitality industry.  

“People seeking daily wage work are being asked if they are vaccinated,” said Benoy Peter, head of the Centre for Migration and Inclusive Development, which runs a mobile vaccination unit for migrants in Kerala in partnership with the state.  

Mr. Peter said Kerala’s vaccination drive must be “sensitive to the challenges of migrants” and suggested more camps on Sundays and in the evenings to reach workers likely to be overlooked, such as day laborers, scrap collectors and women.  

Most migrant workers are in the informal sector. With no steady employer, they cannot afford to take time off for the jab and are less likely to be invited to a vaccination camp, campaigners said.  

“This section is most vulnerable in the challenges they face in accessing the vaccine,” said Sanjay Awasthi, head of the International Organization for Migration’s office in India. “It is imperative their coverage is factored in.”  

Migrants in Kerala who received the shot hope to return to their pre-pandemic lives.  

Samir Kuanar, 37, who lost his plumber’s job in Kuwait when the pandemic struck last year, managed to land an interview in July with a Qatar-based agency that supplies domestic labor.  

“They gave me an offer letter but I hit a roadblock — I wasn’t vaccinated,” Mr. Kuanar said.  

As luck would have it, he received his first dose last week.  

“I hope to fly soon. Vaccination is my ticket to work,” he said. — Roli Srivastava/Thomson Reuters Foundation 

Asian Institute of Management and Manila Water to roll out AI models for better water supply management

The Asian Institute of Management (AIM), through its Analytics, Computing, and Complex Systems Laboratory (ACCeSs@AIM), has deployed and operationalized its joint project with the Department of Science and Technology (DoST) and the Manila Water Co., Inc. (MWCI).

The collaborative endeavor aims to enhance the distribution of water supply in the East Zone of Metro Manila and will be utilized to forecast dam levels in Angat, La Mesa, and Ipo to cater to the needs of households, businesses, and other industries.

The Artificial Intelligence (AI)-powered software developed by ACCeSs@AIM employs historical water levels, volume of rainfall, and indicators of El Niño or La Niña to predict dam levels.

“Thanks to this collaboration with AIM and support from DoST, we can now develop and advocate for data-driven policies towards effective allocation and management of our water supply. Coupled with the continued good cooperation with key government agencies, this will help mitigate the risks associated with water supply fluctuations brought about by climate change,” said Mark Orbos, MWCI’s director for Corporate Strategy & Investor Relations.

This project was made possible with support from the DoST’s Collaborative Research and Development to Leverage Philippine Economy (CRADLE) Program, and monitoring efforts from the DoST-Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD).

“With much data that is already out there, it is high time that we maximize the power of emerging technologies like AI and machine learning to improve and affect the daily lives of Filipinos. AIM’s forecast modeling fulfills this by seamlessly providing apt agencies with helpful data as basis for decision and policy making on water supply to avoid shortages. Partnering with institutions like AIM and MWCI allows us to leverage on our combined resources and expertise to fulfill a common objective — to support the growth of the Philippine Innovation ecosystem,” said DoST-PCIEERD Executive Director Dr. Enrico C. Paringit.

ACCeSs@AIM actively engages the private and public sector to innovate through research and development projects in advanced analytics. It is AIM’s first corporate laboratory and the first of its kind in the Philippines.

“The impact of AI and Data Science projects like these goes beyond just solving the immediate needs of consumers,” said Prof. Christopher Monterola, PhD, project lead and ACCeSs@AIM executive managing director. “At ACCeSs@AIM, our goal is to bridge the gap between theory and practice by creating effective and practical solutions to real-world problems through data-driven support tools. We have a multidisciplinary team of experienced and highly trained data scientists with access to AIM’s world-class resources and facilities, including a 1.2 petaflop supercomputer — the fastest in the Philippines — enabling us to collaborate and operationalize solutions with different industries, government agencies and various organizations, and help innovate through R&D initiatives.”

To date, ACCeSs@AIM has completed 4 industry projects and mentored 35 MSc Data Science Capstone Projects from 25 companies and agencies.

To know more about ACCeSs@AIM, visit asite.aim.edu/access-lab/.