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US West scorches under heat wave, Death Valley reaches 130 degrees

PIXABAY
PIXABAY

DEATH VALLEY, Calif. — A brutal heat wave punishing the US West pushed temperatures toward all-time records for a third day on Sunday, as Death Valley in California, scorching at 54°C, was again one of the hottest spots on the planet. 

A thermometer outside Furnace Creek Visitors Center in the heart of Death Valley showed 56.67°C shortly before 4 p.m. (2000 GMT) on Sunday, although a National Park Service ranger said it typically measured higher than the official reading. 

The National Weather Service recorded the temperature on Saturday at 54.4°C, which if verified would be one of the highest ever recorded on Earth. A ranger measured the sidewalk temperature outside the visitors center at 81.1°C on Sunday afternoon. 

“I just came up here to see how hot it gets,” said Richard Rader of Scottsdale, Arizona, who said he had ridden his bike 10 miles across Death Valley on Sunday. 

Most tourists left their air-conditioned cars only long enough to pose for pictures with the thermometer. 

The National Weather Service issued excessive heat warnings across much of the region and cautioned residents that the high temperatures could be hazardous to their health, especially small children and the elderly. 

The sweltering heat, which extended across much of the Pacific Northwest, pressured power grids and fueled major wildfires, including a blaze burning in Southern Oregon that threatened 1,200 homes and other structures. 

The Bootleg Fire, which broke out on Tuesday, had blackened 144,000 acres, or 224 square miles in and around the Fremont-Winema National Forest as of Sunday afternoon with no containment. 

Conditions at the blaze were so severe that the 926 firefighters working the lines were forced in some cases to “disengage and move to predetermined safety zones,” managers said. No fatalities had been reported. 

The flames were burning along a high voltage power corridor connecting Oregon’s power grid with California’s, worrying officials in both states that electricity could be knocked out to thousands of homes and businesses. 

Residents in hundreds of homes were already under mandatory evacuation orders and the Klamath County Sheriffs Department said it would make arrests if necessary to keep people out of those areas. 

Residents in additional parts of southern Oregon were under “Go now” orders on Sunday while still more were told to “get set.” 

Governor Kate Brown declared a state of emergency on July 6. — Bridget Bennett/Reuters 

Toyota’s HEVs offer more sustainable automotive choices for Filipinos

Finely bundling efficient energy use and reliable performance, hybrid cars are starting to open the opportunity for a more sustainable future of mobility.

Toyota Motor Philippines (TMP), a pioneer of vehicle electrification in the country, is maximizing such opportunity by giving Filipinos broader and more sustainable car choices through its hybrid electric vehicles (HEVs).

“It’s the car technology for the future, readily available and perfectly functioning today,” Elijah Marcial, vice-president for marketing services at TMP, said. “No need for additional electric infrastructure or special roads. We can already make a difference for the environment and the way we look at transportation right now.”

Toyota’s lineup of hybrid vehicles currently consists of the Prius, Corolla Altis, and Corolla Cross.

Launched in 2009, the Prius has become the leading symbol for energy-efficient and more environment-friendly hybrid cars. The HEV variant of the long-running and highly popular Corolla Altis, unveiled in 2019, further introduced hybrid technology to a broader audience. With its sleek and sophisticated styling that appeals to urban dwellers and professionals, it is a fitting choice for a hybrid sedan.

This was followed by the brand’s first hybrid crossover in the local market, the Corolla Cross, launched just last year. This model is the current best-seller among the HEVs due to its appeal as a bigger, more spacious car with an SUV form, design, and versatility.

As HEVs, these models combine an efficient conventional gasoline engine with a powerful electric motor. These power sources seamlessly work together to maximize driving performance while minimizing emissions and fuel consumption.

“With its conventional fuel engine complemented by a self-charging battery that stores electric power as one drives the car, fewer trips to the gas station will surely be observed,” Ms.Marcial said.

Also, the self-generating electric motors remove the need to plug into outlets to store electricity from non-renewal energy sources. They also make very little noise while running, allowing for a calmer and quieter drive.

With reduced fuel consumption in using Toyota HEVs comes less carbon emissions when the electric motor is in use. This can contribute to the improvement of air quality and so makes one’s driving better for the environment.

“Overall, there is added pleasure in driving knowing that you save money, save energy, while helping save the Earth,” Ms.Marcial said.

Beyond the HEV system, the Corolla HEVs also carry Toyota’s latest automotive technological and engineering advancements. The Toyota New Global Architecture significantly improves movement, handling, and overall driving experience; while Toyota Safety Sense ensures safety on the road with technology-driven driver and passenger safety features.

In addition, Toyota’s HEVs do not require special maintenance as they can be kept running smoothly through the regular periodic maintenance service. “Toyota’s network of dealerships all over the country are actually trained and equipped to look after our customers’ HEVs as they would their conventional engine Toyota cars,” Ms.Marcial said.

The rollout of these vehicles is driven by the brand’s environmental road map, the Toyota Environmental Challenge. Globally, Toyota is also mastering other xEV technologies like Plug-In Hybrid Electric Vehicles and hydrogen-powered Fuel Cell Vehicles.

For more information about Toyota’s HEVs, visit toyota.com.ph/hybrid.

 

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South Korea’s container squeeze throws exporters into costly gridlock

Image via Jean-Pierre Dalbéra/Flickr/CC BY 2.0

BUSAN — Unable to get a slot on a container vessel, Lee Sang-hoon is considering using fishing trawlers docked for repair in the South Korean port of Busan to meet surging export orders for the car engine oil he sells to Russia. 

“China is the black hole in this shipping crisis, all the carriers are headed there,” said Mr. Lee, owner of Dongkwang International Co. in Busan which makes about 20 billion won ($17.60 million) in annual revenue. 

“Those fishing boats out there could be an answer for us because we’re already one month behind schedule. That is, if we can iron out packaging issues,” Mr. Lee said, pointing out to empty fishing trawlers visible from his Busan office. 

Booking trawlers is one way businesses in the world’s seventh-largest exporting nation are trying to overcome critical bottlenecks caused by the pandemic, particularly a shortage of shipping containers. 

Thousands of exporters like Dongkwang are struggling to move their goods through Busan, the world’s 7th busiest container port, where terminals handle over 59,000 containers daily to process about 75% of all shipping for the country. 

As global carriers race to deliver everything from furniture to toys to US and European consumers, they prioritize much larger batches of cargo waiting to be picked up along China’s factory belt over Busan. That leaves fewer vessels in the Korean port and a glut of them in China, cargo managers at Busan’s terminals said. 

“As many (ships) depart from China where factories are mostly fully in operation, there’s little vessel space left by the time they stop in Busan,” said Lee Eung-hyuk, a marketing director at Busan Port Authority. 

Some do not stop in Busan at all. The number of incoming container ships in Busan fell almost 10% through May this year even as exports soared 23.4% from a year earlier, according to data from the port authority, resulting in a very uneven recovery for Asia’s fourth-largest economy. 

On a real-time map of the world’s major vessels at a control tower operated by HMM Co., the country’s biggest container carrier, most of the red and yellow dots show its alliance fleet concentrated around China and Singapore, not Korea. 

While the shipping squeeze caused by the pandemic is a global problem, the congestion at a transit hub like Busan has made things worse for smaller Korean exporters. 

When Yantian, one of China’s busiest ports, was partially shut down in June to control virus cases, some cargo was diverted to neighboring ports such as Busan, worsening the backlogs and periodic delays. 

“It’s a transit hub with so many in and outs. We need to ship 30 containers a month but have only been able to secure about 70% to 80% of that,” said Mr. Lee at Dongkwang International, adding that his company recently raised prices due to higher shipping costs. 

Carriers sometimes refuse to accept bookings at all, or force customers to accept much higher spot rates, according to Mr. Lee. 

The pain is most acutely felt on less-popular routes smaller firms often use, making shipping rates from Busan to Vladivostok rise faster than to the US West Coast, for example. 

Dongkwang currently pays $2,200 per twenty-foot equivalent units (TEU) for the route, up about six times from a year earlier. 

For South Korea’s larger industrials like Samsung and LG, the shipping squeeze isn’t as dire because carriers tend to prioritize orders from customers with deep pockets and a larger volume of goods to be shipped. 

To provide relief, the government has helped finance HMM orders for more containers and expanded cash handouts to support affected small-to-medium exporters. 

At Busan’s New Port, terminal congestion is clearly visible. 

At one of the five new terminals, outbound containers full of goods were stacked to their vertical limits. 

Transit vessels carrying thousands of containers were being unloaded by automated cranes, which use artificial intelligence to find space for the steel boxes. 

Every 10 seconds, a truck carrying a 20-foot or 40-foot container passes through the gate, taking them to warehouses which already seem bursting at the seams. 

“When port closures or other hiccups happen, it doesn’t just mean a detour for vessels, it leads to a huge pileup of cargo the ship was due to pick up for exports half a world away,” one field officer said, looking at “metal mountains” at the port. 

At the retail level, businesses are either cutting production volume or raising prices, or both. 

In June, South Korea’s top tire maker Hankook Tire & Technology Co. said it is suspending operations at key local factories for three days due to shipping space shortage. 

“We plan to raise prices by about 3% to 5% in Germany and other European countries in July, and something similar is in review for the U.S. market in August,” a Hankook official said. 

The bottleneck has also affected Korean consumers with fast-food chain Lotteria replacing french fries with cheese sticks due to issues bringing in potatoes. 

The squeeze has created some winners, with HMM shares jumping 12-fold from early 2020 and more growth expected. 

“Global container volume is growing. Our peak season usually is the third quarter but as exporters are squeezed, we expect the trend to last through the fourth quarter,” said an official at HMM. — Cynthia Kim/Reuters

vivo V21 enables productivity all thanks to its extended RAM feature

The vivo V21 is Maine Mendoza’s smartphone choice for the on-the-go digital lifestyle she has.

Fulfill tasks in less time so you can focus on the things that matter most

  • Smartphones have been an extension of work-from-home setups
  • vivo addresses lagging and crashing concerns in smartphones with the extended RAM feature
  • Aside from productivity, vivo V21 supports fun break times with its impressive camera

For many students and workers, smartphones have been a vital extension of their remote work setup. It enables them to have the mobility they need as they cater to their day-to-day tasks. But while it offers the benefit of flexibility, it’s pretty common that users experience lags and crashes on their smartphones — especially when they run multiple apps.

Living an on-the-go digital lifestyle means relying on a device that performs at par with one’s level of productivity. This is why people choose a smartphone that is packed with all the features that can help one power through their workday.

One of the world’s leading smartphone manufacturers, vivo, introduces the V21 series which incorporates virtual RAM. RAM or Random Access Memory serves as data storage for the apps running on your phone. The vivo V21 series has a built-in 8GB RAM, but to allow for better productivity for its users, it also integrates a virtual 3GB RAM. This allows the device to “borrow” an extra 3GB from its internal storage when the 8GB is already used up by multiple apps. Think of the 8GB RAM as your bag, and the virtual 3GB as its compartments — it gives you more space to set things in without the need for another suitcase.

This extended RAM feature in the V21 series makes the smartphone work with a total memory of 11GB. So, even if you use multiple apps for work, it paves the way for a smooth and lag-free user experience. No need to worry about your device crashing when you’re working on a live doc while also tuned in on a virtual meeting.

While the vivo V21 series backs up productivity, it also has the best features for all the fun things one can do on a smartphone. Its front camera comes with an impressive 44MP display and Optical Image Stabilization (OIS) feature, so users can have the best well-lit selfies even if they shoot at night time. The rear camera, on the other hand, supports a 64MP resolution with an Electronic Image Stabilization (EIS) feature. This technology minimizes unnecessary motion so photos and videos are captured in a steady frame. Surely, with these stunning camera features in the vivo V21, users can take fun breaks between work and shoot ‘Gram-worthy snaps every time.

New Selfie Portrait Master Maine Mendoza shows that beyond work, the vivo V21 caters to your fun break moments.

Another factor that people can take pride in this flagship series is its battery’s ability to last for a long time. With a 4000mAh battery and 33W FlashCharge properties, they can perform their work throughout the whole day with just a single full charge.

These exciting features in the vivo V21 are all within the phone’s 7.29mm ultra-slim design. Its artistic look and feather-light weight can make a user feel that they got power and grip as they tend to their work tasks.

The vivo V21 is available in all vivo kiosks and stores, as well as the brand’s official Lazada and Shopee pages. It starts at an SRP of PHP 16,999. To know more about the V21 series, follow vivo’sFacebook, Twitter, and Instagram pages.

 

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Sovereign asset managers raise ESG focus in wake of COVID-19 — Invesco

PIXABAY

LONDON — Around a third of central banks and sovereign wealth funds have raised their focus on environmental, social, and governance (ESG) issues over the past year as the coronavirus disease 2019 (COVID-19) pandemic highlighted issues ranging from carbon emissions to inequality, an Invesco survey found. 

A total of 63% of central banks responding to the survey felt tackling climate change fell within their mandate, with nearly half believing that mitigating the consequences of climate change should be a monetary policy objective. 

In the latest step by a major central bank to curb carbon emissions, the European Central Bank said last week it will take greater account of climate change in its core policy decisions. 

More than half of central banks and sovereign funds responding to the Invesco Global Sovereign Asset Management Study said they had specific ESG policies, up from 44% in 2019’s survey. 

The asset manager surveyed 141 chief investment officers at a mix of sovereign wealth funds and central banks, managing around $19 trillion in assets in total on topics ranging from ESG to China and liquidity. 

The pandemic had accelerated underlying ESG-related issues as disruptions to economic activity lowered carbon emissions, while the health crisis and rise in unemployment shone a light on inequality. 

“The pandemic has definitely accelerated the ESG focus,” said Rod Ringrow, Invesco’s head of official institutions. 

“What we’re seeing is a greater social conscience and the need to incorporate it now as a matter of course and the pandemic may have been the catalyst to this ‘build back better’ approach.” 

More central banks are also keen to consider the climate when investing, with 64% of respondents agreeing that green bonds were a desirable foreign reserve investment. 

The People’s Bank of China has said it increased the share of green bonds in its foreign exchange reserve investments while controlling investments in high-pollution assets. 

Sovereign funds too are pushing on in scouting out sustainable investment opportunities. 

The survey showed 52% of sovereign fund respondents said improving returns was their current motivation for adopting ESG policy, marginally more than the number who cited reducing risk as the biggest driver. 

And 57% of sovereign funds responding said the market had not fully priced in the long-term implications of climate change, offering opportunities for higher returns. — Tom Arnold/Reuters 

Billionaire Branson soars to space aboard Virgin Galactic flight

Image via Virgin Galactic

TRUTH OR CONSEQUENCES, N.M. — British billionaire Richard Branson on Sunday soared more than 50 miles above the New Mexico desert aboard his Virgin Galactic rocket plane and safely returned in the vehicle’s first fully crewed test flight to space, a symbolic milestone for a venture he started 17 years ago. 

Mr. Branson, one of six Virgin Galactic Holding Inc. employees strapped in for the ride, touted the mission as a precursor to a new era of space tourism, with the company he founded in 2004 poised to begin commercial operations next year. 

“We’re here to make space more accessible to all,” an exuberant Mr. Branson, 70, said shortly after embracing his grandchildren following the flight. “Welcome to the dawn of a new space age.” 

The success of the flight also gave the flamboyant entrepreneur bragging rights in a highly publicized rivalry with fellow billionaire Jeff Bezos, the Amazon online retail mogul who had hoped to fly into space first aboard his own space company’s rocket. 

“Congratulations on the flight,” Mr. Bezos said on Instagram. “Can’t wait to join the club!” 

Space industry executives, future customers and other well-wishers were on hand for a festive gathering to witness the launch, which was livestreamed in a presentation hosted by late-night television comedian Stephen Colbert. Joining the reception was another billionaire space industry pioneer, Elon Musk, who is also founder of electric carmaker Tesla Inc. 

Grammy-nominated R&B singer Khalid performed his forthcoming single “New Normal” after the flight. 

The gleaming white spaceplane was carried aloft attached to the underside of the dual-fuselage jet VMS Eve (named for Mr. Branson’s late mother) from Spaceport America, a state-owned facility near the aptly named town of Truth or Consequences. Virgin Galactic leases a large section of the facility. 

Reaching its high-altitude launch point at about 46,000 feet, the VSS Unity passenger rocket plane was released from the mothership and fell away as the crew ignited its rocket, sending it streaking straight upward at supersonic speed to the blackness of space some 53 miles (86 km) high. 

The spaceplane’s contrail was clearly visible from the ground as it soared through the upper atmosphere, to the cheers of the crowd below. 

At the apex of the climb with the rocket shut down, the crew then experienced a few minutes of microgravity, before the spaceplane shifted into re-entry mode, and began a gliding descent to a runway back at the spaceport. The entire flight lasted about an hour. 

“I was once a child with a dream looking up to the stars. Now I’m an adult in a spaceship looking down to our beautiful Earth,” Mr. Branson said in a video from space. 

Back at a celebration with supporters from a stage outside Virgin Galactic’s Gateway to Space complex at the spaceport, he and crewmates doused one another with champagne. 

Retired Canadian astronaut Chris Hadfield pinned Virgin-produced astronaut wings onto the blue flight suits worn by Mr. Branson and his team. Official wing pins from the Federal Aviation Administration will be presented later, a company spokesman said. 

HIGH-COST TICKETS 

Virgin Galactic has said it plans at least two further test flights of the spaceplane in the months ahead before beginning regular commercial operation in 2022. One of those flights will carry four Italian astronauts-in-training, according to company Chief Executive Officer Michael Colglazier. 

He said 600 wealthy would-be citizen astronauts have also booked reservations, priced at around $250,000 per ticket for the exhilaration of supersonic flight, weightlessness, and the spectacle of spaceflight. 

Mr. Branson has said he aims ultimately to lower the price to around $40,000 per seat as the company ramps up service, achieving greater economies of scale. Mr. Colglazier said he envisions eventually building a large enough fleet to accommodate roughly 400 flights annually at the spaceport. 

The Swiss-based investment bank UBS has estimated the potential value of the space tourism market reaching $3 billion annually by 2030. 

Proving rocket travel safe for the public is key. 

An earlier prototype of the Virgin Galactic rocket plane crashed during a test flight over California’s Mojave Desert in 2014, killing one pilot and seriously injuring another. 

SPACE RACE 

Mr. Branson’s participation in Sunday’s flight, announced just over a week ago, typified his persona as the daredevil executive whose various Virgin brands — from airlines to music companies — have long been associated with his ocean-crossing exploits in sailboats and hot-air balloons. 

His ride-along also upstaged rival astro-tourism venture Blue Origin and its founder, Bezos, in what has been popularized as the “billionaire space race.” Mr. Bezos has been planning to fly aboard his own suborbital rocketship, the New Shepard, later this month. 

Mr. Branson has insisted he and Mr. Bezos are friendly rivals and were not racing to beat one another into space. 

“We wish Jeff the absolute best and that he will get up and enjoy his flight,” Mr. Branson said at a post-flight press conference. 

Blue Origin, however, has disparaged Virgin Galactic as falling short of a true spaceflight experience, saying that unlike Unity, Mr. Bezos’s New Shepard tops the 62-mile-high-mark (100 km), called the Kármán line, set by an international aeronautics body as defining the boundary between Earth’s atmosphere and space. 

“New Shepard was designed to fly above the Kármán line so none of our astronauts have an asterisk next to their name,” Blue Origin said in a series of Twitter posts on Friday. 

However, US space agency NASA and the US Air Force both define an astronaut as anyone who has flown higher than 50 miles (80 km). 

A third player in the space tourism sector, Mr. Musk’s SpaceX, plans to send its first all-civilian crew (without Mr. Musk) into orbit in September, after having already launched numerous cargo payloads and astronauts to the International Space Station for NASA. 

The spaceplane’s two pilots were Dave Mackay and Michael Masucci. The three other mission specialists were Beth Moses, the company’s chief astronaut instructor; Virgin Galactic’s lead operations engineer Colin Bennett; and Sirisha Bandla, a research operations and government affairs vice president. 

All recounted afterward being mesmerized by the view through Unity’s windows. Mr. Mackay described the immense blackness of space against the brightness of Earth’s surface, “separated by the beautiful blue atmosphere, which is very complex and very thin.” 

“Cameras don’t do it justice,” he told reporters. “You have to see it with your own eyes.” — Steve Gorman/Reuters 

US repeats warning to China against attack on Philippine forces

US NAVY/HANDOUT VIA REUTERS/FILE PHOTO

WASHINGTON – The United States on Sunday repeated a warning to China that an attack on Philippine armed forces in the South China Sea would trigger a 1951 U.S.-Philippines mutual defense treaty.

Secretary of State Antony Blinken made the comment in a written statement marking the fifth anniversary of a ruling by an arbitration tribunal repudiating China’s vast territorial claims in the South China Sea.

China – which lays claim to most of the waters within a so-called Nine Dash Line, which is also contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam – reiterated on Friday that Beijing did not accept the ruling.

“The United States reaffirms its July 13, 2020 policy regarding maritime claims in the South China Sea,” Blinken said, referring to the rejection by former President Donald Trump’s administration of China’s claims to offshore resources in most of the South China Sea.

“We also reaffirm that an armed attack on Philippine armed forces, public vessels, or aircraft in the South China Sea would invoke U.S. mutual defense commitments under Article IV of the 1951 U.S.-Philippines Mutual Defense Treaty,” Blinken added.

That article of the treaty says in part that “each Party recognizes that an armed attack in the Pacific area on either of the Parties would be dangerous to its own peace and safety and declares that it would act to meet the common dangers in accordance with its constitutional processes.”

Blinken has made the point before, including during an April 8 conversation with the Philippine foreign minister in which the State Department said he “reaffirmed the applicability” of the treaty to the South China Sea. — Reuters

[B-SIDE Podcast] Three, two, one, blast off: the Philippines in space

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Jeff Bezos, Richard Branson, and Elon Musk are in the news for competing with each other in a space tourism race. Like these billionaires, the Philippines also has ambitions of exploring the final frontier — but for much more practical reasons, such as detecting illegal mining activities and measuring environmental parameters like air quality and soil moisture.   

The Philippine Space Agency (PhilSA), an attached agency of the Office of the President, is in charge of handling national issues and activities related to space science and technology applications.   

In this B-Side episode, PhilSA Director General Joel Joseph S. Marciano, Jr., and Deputy Director General Gay Jane P. Perez speak with BusinessWorld reporter Angelica Y. Yang about why a developing economy like the Philippines should set its sights on the stars.   

TAKEAWAYS 

Satellite imagery can be used to monitor the mining sector. 

“We can leverage space capabilities on the reset-rebound-recover thrust of government by helping provide timely and accurate information for monitoring and evaluating the big-ticket projects and economic initiatives of our government,” Mr. Marciano said, referring to the administration’s renewed thrust to open up the mining sector. 

Space data, in the form of satellite images, can be used to monitor mining compliance, among others. 

“With the advancement of space technology and ground technologies, we can (also) perform sustainability impact assessments of specific metals and minerals. We can also use these technologies from space to detect potential disasters in the area … and detect illegal mining activities,” he explained. 

Ms. Perez emphasized the value of historical data gathered satellites which provide a better understanding of the places where the mines are located. 

“It’s important to know this baseline information and satellite technology has been there for…more than four decades already. This wealth of data gives us this invaluable information related to whatever we want to do with our resources,” she said. 

Data from space delivers food to your doorstep.  

People enjoy the benefits of earth observation satellites when they use the Google Earth, navigation apps, or food delivery platforms. 

Some satellite images require analysis from experts, and eventually find their way into the public sphere. 

“Some of this will land into the hands of experts who will process them and derive the information from the data and, subsequently, an interpretation. It goes to a decision maker or maybe people in charge of governance and that’s how its cascaded to people,” Mr. Marciano said. 

Information, he added, gathered from satellites can warn the public about the hazards posed by certain areas during emergencies, while keeping an eye on the environment. 

Paired with on-the-ground observation, satellites orbiting our planet can provide valuable insights, Ms. Perez said. 

Goods that survive in space are worth more. 

Products that survive in extreme conditions become increasingly valuable. 

“If a cellphone screen works very well on Earth, but if you bring it to space and it continues working very well, then the value of that component increases several times. It becomes more valuable, because it has proved itself to be able to function in a harsh environment,” Mr. Marciano explained. 

With this mindset, the country can branch out to products that can withstand similar environments, including places where it would be impossible to return to. 

“By doing these things, we are learning as a country to build high-value, high technology products (which lead to) high-value industries and high-value jobs,” he said. 

The country needs to develop a highly skilled space workforce before embarking on big projects. 

PhilSA aims to build on the competencies of the workforce. Doing so brings the agency closer to its goal of launching spaceships and putting Filipinos into space. 

“By having our engineers and scientists acquire the necessary training (and) education on various fields in space technology and space science, we are positioning ourselves to better undertake activities in the future. It goes as far back as training our next generation of scientists,” Ms. Perez said. 

Ms. Perez recognized the importance of strengthening the science, technology, engineering and math (STEM) program to encourage young students to pursue careers leading to the space industry. 

Before launching a spaceship or rolling out an astronaut program, the country needs to first develop “high-value and highly skilled people” supported by meaningful science, Mr. Marciano said. 

“It all starts with building up our scientific capabilities and we must not lose sight of that,” he added. 

The Philippines has ideal locations for space ports. 

“I think in our country, there are very good areas where space ports can be located — close to ideal ones if we want to launch near the equator” Mr. Marciano said. 

He explained that the country can forge international partnerships that can expedite this. The PhilSA official added that they also needed to study the possibility of launching rockets in the country, build up a skilled workforce, and develop the infrastructure for it. 

Sought for comment on his outlook on the Philippine space sector, he said that he is optimistic about the development of the country’s “space ecosystem.” 

“We are now able to access space with our satellites whereas decades before, perhaps it’s much harder so that presents an opportunity for us to create and add even more value to our economy by building higher value industries and efficiently utilizing space-enabled or space borne data,” he said. 

 

This episode was recorded remotely on June 25, 2021. Produced by Paolo L. Lopez and Sam L. Marcelo.

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Learning beyond the classroom with Huawei ICT Academy and STI College

STI College at present has the highest number of students passing the Huawei certifications.

True to its word of creating “New Value Together, Win Together,” Huawei has recently recognized the significant contributions and exemplary performance of its industry and academic partners, conferring the ICT Talent Partner of the Year 2020 award to STI College, which has the highest number of students passing the Huawei certifications offered by Huawei ICT Academy.

Cultivating Filipino ICT Talents at the Early Stage

As a tech-driven educational institution with a large network of schools in the Philippines, STI College understands the difficulties faced by students who are pursuing ICT-related courses. Despite the increased adoption and use of digital technologies in the country, digitalization efforts in the education sector remain impacted by the broadband penetration and access to advanced technologies. Students oftenfall short of meeting the industry’s talent requirements, struggling toacquire up-to-date knowledge and credentials, such as virtual training and certification.

STI College took on the challenge by nurturing students to become job-ready, future-ready, and life-ready. To achieve this, STI introduced its Enrollment to Employment System, wherein students get applicable education, job market skills, job preparedness, and job placement assistance.

The first step is the Learning Systems Development, which ensures that the curriculum content is up-to-date and job market-oriented. To complement this, STI implements the Academic Delivery System to guarantee that highly-qualified and certified faculty members, and state-of-the-art facilities of campuses are at par with the standardized courseware and curriculum. STI integrates in-demand ICT technologies into its courseware materials to prepare students for their dream careers.

The third step, Student Certification, assures that students are prepared for employment through rigid assessment, evaluation, and certificate programs. Before the students leave the security of their four-walled classrooms, they are given the opportunity to undergo on-the-job training with STI’s reputable partner companies.

Connecting Students with Future Employers

With its partnership with Huawei ICT Academy, STI College delivers Huawei ICT technologies training, encourages students to get Huawei certifications, and develops talents with practical skills for the ICT industry and the community. Huawei helps STI College integrate in-demand ICT technologies into its programs to better prepare the students for future certifications. The Academy offers more than 100 certification exams and 22 technical fields to pave clear career development paths for STI students.

Huawei ICT Academy will equip more students with needed knowledge and skills to prepare their career in ICT industry.

STI College has so far produced 299 students certified in five technology domains: cloud computing, Big Data, artificial intelligence, routing and switching, and storage. Huawei ensures that its courses match the needs of the ICT industry in general and its partner enterprises in particular to guarantee employment for students.

An industry certification validates the skills and readiness of the students to join the ICT workforce. Every certification is valid for three years, and the students’ names appear on Huawei’s online database as Huawei Certified ICT Associates (HCIA). This improves students’ competitiveness in the job market as well as schools’ employment rate.

Regine Gila Cabeltes, a Bachelor of Science in Computer Engineering graduate of STI College, realized the benefits of being Huawei-certified soon after she finished her course. “Being a Huawei Certified ICT Associate made it easier for me to land the job I aspired. The technologies covered in the HCIA courses are prevalent in the company where I work. When I was answering the technical questions during my job interview, it was like answering a certification exam,” Cabeltes shared.

Prof. Beronika Peña, STI College’s ICT and Engineering Courseware Development Head, is one of the teachers at Huawei ICT Academy. Peña received an Excellent Instructor with a Level A Award from the Academy in 2020. “We are grateful to be an ICT Academy. Huawei has provided us the means to promote ICT talent development to our teachers and students. Through this partnership, we look forward to producing more competent and industry-ready graduates,” she said.

Contributing to the Development of the ICT Industry

Establishing one’s career in today’s competitive industries has become a challenging pursuit to most job seekers. Employers, too, are increasingly having difficulty finding the right person for the job. Too often, there remains a huge gap between the skills required by the industry and what a graduate has to offer.

Given the current state of ICT talent development in the Philippines, Huawei ICT Academy and STI College have committed to equipping Filipino students with the needed knowledge and skills to prepare them for their future career in the ICT industry. In the long term, the partnership aims to bridge the gap in talent supply and demand toward the sustainable development of the Philippine ICT industry said Mr. Todd Liu, President of Enterprise Business Group, Huawei Philippines.

 

Beyond number crunching: Making accounting matter in the new normal

By Marivic C. Españo
P&A Grant Thornton Chairperson and CEO

For many years now, innovation has been revolutionizing the accounting profession and expanded the role of accountants. Modern technology has led to significant improvements in accounting software, platforms for mobile accounting, and cloud-based systems. This not only make accountants more accurate and thorough in their craft, it also enables them to go beyond number crunching and add more value to their clients’ business.

While these innovations have been available to accountants for quite some time now, not all made the digital pivot. Some local businesses were still using programs and systems that required their accountant to be in-person and on-site to do manual tasks. This proved to be a challenge when the COVID-19 global pandemic led to the enforcement of strict lockdowns and social distancing protocols. All the data and paper-based files suddenly became completely inaccessible, and business owners and accountants had to work from home for health and safety reasons.

The pandemic demanded swift action and for businesses to keep their lights on. To meet the challenge of a constantly evolving business landscape, companies were forced to embrace digital transformation. Some of these digital initiatives include enabling remote work, providing high-capacity laptops and tools for the workforce, shifting to cloud-based technology, and giving staff training in cybersecurity. A number of firms also provided clients easy access to information through digital portals, making communication between auditors and clients more convenient.

Addressing challenges
As the pandemic is ongoing and health and safety protocols are still in place, these digital transformation initiatives are rapidly gaining wider acceptance and forming part of the “new normal” in Philippine accounting. Artificial intelligence, automation, and data analytics are also playing a huge role in enabling accountants to become more efficient by eliminating the need for leg work.

Digitalization has also changed client relations and onboarding. With firms doing away with face-to-face meetings, communication channels such as video call platforms, livestreaming, and email marketing tools have become a must-have in client relations. These tools are used to introduce advisory content, from awareness building and tax and accounting alerts, to new regulatory issuances and financial training.

P&A Grant Thornton Vertis North office

If there is one certainty in the pandemic and beyond, it is that digitalization is here to stay, as it becomes part of standard accounting processes — from online client onboarding to cloud-based project management and electronic submission of regulatory requirements. As such, the accountant has to adapt to meet the challenges post-pandemic.

The Philippine accounting industry is also addressing issues brought about by new laws and regulations. The recent passage into law of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act paved the way for adjustments in tax practice, as it contains provisions which will affect the 2020 income tax payable of most corporations. The new law affects the corporate income tax (CIT) rates of domestic corporations and resident foreign corporations and those of proprietary educational institutions, hospitals, and nonresident foreign corporations. The new law will also have an impact on minimum corporate income tax (MCIT) and percentage tax.

With the introduction of changes in rates effective July 1, 2020, tax professionals will have to compute their clients’ corporate income tax payable differently. The current Tax Code already prescribes the rules on how to compute income tax if there has been a change in rates — taxable income will be computed regardless of the date when specific sales, purchases, and other transactions occur. The income and expenses for the fiscal year shall be deemed to have been earned and spent equally for each month of the period.

These regulatory changes will bring about more detailed exchanges between firms and their clients and routine tasks will be disrupted to make way for the new CIT adjustments.

Accounting beyond the new normal
At P&A Grant Thornton, we view our clients’ needs beyond the context of the pandemic. Since the Firm started in 1988 as Punongbayan & Araullo, we have always gone beyond and above our traditional role and standards to deliver quality service that is personal, agile, and proactive. We have deep insights into global industries and markets, thanks to our alliance with Grant Thornton, which has a global network of member firms across 130 countries. With these connections, we combine global scale and capability tailored to the Philippine landscape.

Even amidst the pandemic, most of our staff were working from home, we continued to enable our clients’ business continuity and meet the demands of their dynamic operating environment through our digital innovations.

Through our Client Portal, clients can receive direct, real-time notifications on the status of their engagement and billings. This also allows them to track new business insights, as well as accounting and tax alerts released by government regulators.

P&A Grant Thornton is also offering its Vigil@nt training platform to help clients educate their staff on best practices to protect sensitive client information, with cybersecurity threats becoming more rampant during the pandemic.

The Firm has also been holding webinars and has ventured into the education technology (edutech) space through GT Academy X. Clients interested in offering digital learning and development programs partner with us for GT Academy X, which we are also bringing to other GT partners in the region.

Going beyond clients’ expectations forces us to take on a new mindset and embark on innovations. We meticulously train our teams in client management, prioritize work-life balance, and schedule educational webinars to constantly keep our staff abreast of developments and raise the bar in the accounting industry. Going beyond also means humanizing the accounting process and thinking outside the box to offer even more relevant and targeted solutions.

With this go-beyond mindset in place, our clients can expect to receive quality service, fresh perspectives and practical solutions, enabled by technology, through a more agile and proactive approach.

Monitoring of property deals tightened

REUTERS

By Luz Wendy T. Noble, Reporter

THE government further tightened its anti-money laundering rules, particularly in monitoring real estate transactions. This comes after the Financial Action Task Force (FATF) on June 25 placed the Philippines on its so-called “gray list,” reflecting the deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) framework.   

Under the new registration and reporting guidelines issued by the Anti-Money Laundering Council (AMLC), covered real estate brokers and developers are told to watch out for transactions where there is certainty or a sign that parties seem to be hiding the identity of the real customer buying the property. One of the telling signs is if there is a change in ownership when the property has not yet even been handed to an owner.

The AMLC also flagged those transactions done in behalf of third parties of intermediaries should be scrutinized, particularly when these are done in behalf of family or business ties, shared nationality or someone living in the same residence.

The “dirty money” watchdog also warned that transactions done through foreign intermediaries for tax purposes could be considered suspicious.

Red flags should also be raised if the payment for real estate transactions comes from high-risk jurisdictions that are considered tax havens, regardless of whether the customer is a resident of the specific country or territory.

Covered entities should also be suspicious if buyers appear to be interested in forming a private contract and seemingly not interested to notarize a contract or when they fail to have it notarized.

The AMLC warned that rapid succession or immediate sale of a property after purchasing, with prices that have a significant increase or decrease from the initial value of a property is another red flag.

Signed into law on Jan. 29, Republic Act 11521 further strengthens the Anti-Money Laundering Act (AMLA) of 2001. It expanded covered transactions to include cash deals involving real estate developers and brokers exceeding P7.5 million.

The move was done to increase monitoring of the real estate industry due to earlier findings that criminals are using property deals to launder dirty money.

Chamber of Real Estate and Builders’ Association National Chairman Charlie V. Gorayeb questioned the implementation of tighter rules following the amendments to the AMLA, saying it should have been done alongside the relaxation of the Bank Secrecy Law.

“We have so many laws and implementation has become a big challenge specifically given the corruption issues in our country,” Mr. Gorayeb said in a text message.

House Bill 8991 seeks to ease the Bank Secrecy Law by allowing the central bank to look into the accounts of bank officials and employees when there are sufficient grounds for fraud, subject to approval from the Monetary Board. It is still pending at the House committee level.

Authorities have said easing the Bank Secrecy Law will be a “welcome development” but is not among the key indicators being monitored by the FATF.

Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said the country has already addressed its technical deficiencies through the passage of Republic Act 11479 or the Anti-Terrorism Act and the AMLA amendments.

The AMLC’s new rules also expanded the types of designated nonfinancial businesses and professions. It has also authorized AMLC Executive Director Mel Georgie B. Racela to require submission of all, including low-risk covered transactions subject to AMLC investigation, among others. The rules likewise include provisions on compliance checking and new administrative sanctions.

Guidelines on suspicious transaction reporting on per account basis as well as requiring covered institutions to cite trigger events that led to the report are also included in the implementing rules and regulations. It likewise clarified rules regarding timing of submission for suspicious transaction reports.

The country will submit its first progress report to the FATF in September. Mr. Diokno expressed hope the Philippines will be able to effectively address the action plans monitored by the FATF to be able to exit the gray list by January 2023.

Weaker peso may provide reprieve for struggling exporters

BW FILE PHOTO

By Beatrice M. Laforga, Reporter

THE PESO’S recent depreciation to P50-per-dollar rate could provide a mild boost to the pandemic-stricken exports sector still struggling with high shipping costs and additional taxes, according to an industry group.

A weaker local currency versus the US dollar should be good for exporters as it can lift their sales revenues, George T. Barcelon, chairman of the Philippine Exporters Confederation, Inc. (Philexport), said in a phone interview on Sunday.

However, this will be partially offset by the higher input costs as imported raw materials become slightly more expensive.

“Overall, I think this (weaker peso) will help the economy both for the exporters and remittances. On the cost of goods (imports), that has to be really monitored,” he said.

The peso depreciated to P50.08 against the greenback on Friday from its P49.875 close on Thursday, its weakest in more than a year or since its P50.19-per-dollar close on June 23, 2020.

Week on week, the local unit weakened by 88 centavos from P49.20 per dollar on July 2.

Mr. Barcelon said the P49-P50 per dollar rate is a comfortable level for exporters still struggling to recover while facing high shipping costs, rising global oil prices and increased local taxes.

“I think it would hold around P50 per dollar for some time, but uncertainty remains high. Exporters generally want weaker peso, but not to a point where it affects their capacity to buy,” he said in a mix of English and Filipino.

Tight supply of shipping containers globally has pushed shipping rates even higher. Mr. Barcelon said local exporters saw their shipping expenses jump by three to four times recently.

Global oil prices continued to increase as demand picks up while inventories remain constrained. A report by Reuters showed the benchmark Brent crude oil increased by 2% to $75.55 per barrel on Saturday.

Back home, Filipino exporters are also trying to cope with the change in tax rules by the Bureau of Internal Revenue (BIR), which began imposing the 12% value-added tax (VAT) on inputs sourced locally that were previously taxed at zero percent.

The BIR instead gave the option for companies to apply for a refund to avail the incentives, which exporters said may force some firms to shift to importation.

Latest data showed goods export continued its uptrend in May after growing by 30% year on year to $5.89 billion.

Moving forward, the peso will likely continue to weaken against the greenback in the second half of the year, Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said in an e-mail on Sunday.

“Economic activity has seen its previous bullish activity to have returned lately in the western region as well as European market. Locally, the gradual opening of the local economy pushed demand to its pre-COVID form [and] is expected to be sustained until the end of the year. Such event is accompanied by massive election spending which will further erode the value of the Philippine peso against the US dollar,” Mr. Lopez said.

Aside from the exports sector, he said the weaker peso will also give a boost to remittances sent home by overseas Filipino workers (OFWs).

Finance Undersecretary Gil S. Beltran said the weaker peso could also boost the taxes and duties collected by Customs.

“The depreciation follows the trend in all ASEAN/global currencies,” he said in a text message on Sunday.

Overall, Philexport’s Mr. Barcelon said the economy should be comfortable with the exchange rate of P50 per dollar over the long term.

Economic managers estimated the peso will range from P48 to P53 per dollar until 2024.

The Department of Finance (DoF), in an economic bulletin on Sunday, stressed the need to effectively contain the spread of the coronavirus to sustain the economy’s recovery, especially as new variants are becoming more contagious and deadly.

“Otherwise, government will be forced to transition from risk management stance to risk avoidance posture and make the difficult and painful decision of imposing much stricter quarantine measures,” the DoF said.

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