Seagate Launches Nytro 1000 SATA SSD Series with Unique DuraWrite Technology

October 4, 2019 | 11:35 am

Expanding on its Nytro portfolio of enterprise flash products, Seagate announced the launch of its new Nytro 1000 Series SATA SSD drives.

The Seagate Nytro 1000 SATA SSD series (which includes the Nytro 1351 and Nytro 1551 SSDs) delivers ultra-fast, consistent performance for read-intensive workloads.

The Nytro SSD series is designed to serve as the backbone of the enterprise’s cloud infrastructure, making it ideal for data center managers looking to upgrade their existing systems.

Unique DuraWrite technology reduces cumulative amount of data written

Among the innovations behind the Nytro SSD is Seagate DuraWrite technology, a unique lossless data reduction technology which compresses data flowing through Seagate’s internally-developed controller. The NAND flash memory inside SSDs is sensitive to the cumulative amount of data written to it; the more data written to flash, the shorter the SSD’s service life and the sooner its performance will degrade.

Seagate’s DuraWrite technology uses intelligent lossless compression techniques to reduce the amount of data stored on the flash. That enables up to 3.5 times higher random-write performance than competitive offerings, along with greater power efficiency and cost savings.

“No other company offers this type of technology,” says YevKoup, enterprise SSD product marketing manager. “Having less data to write leads to better SSD endurance and performance.”

Suited for the most demanding database and cloud environments

The Nytro SSD offers impressive speeds, with random-write performance of 55,000 IOPS (input/output operations per second), making it well-suited for the most demanding database and cloud environments, Koup explains.

The Nytro 1000 SSD is available in several capacity options, from 240GB up to 3.84TB. The Nytro SSD line supports “tunable capacity,” Koup says, which means data center managers get the flexibility to optimize the drive for performance or capacity considerations. In addition, it comes with a range of Seagate Secure™ data-protection options for peace-of-mind security.

Revolutionizing impact: 4IR and humanitarian efforts

October 4, 2019 | 10:55 am

The world of work is gearing up for the Fourth Industrial Revolution (4IR), the era of high-speed internet, artificial intelligence (AI), big data analytics, and cloud technology. The impact of these new technologies go far beyond the production line. Experts have been discussing the impact of 4IR on the human workforce, considering aspects such as reskilling and the extent of automation.

While the importance of 4IR in the way we do business is unquestionable, there are other, equally meaningful ways that these new technologies are affecting lives. Institutions have been working on ways to use them for the greater good, coming up with humanitarian applications for various sectors.

A stronger culture

The documentation of human culture and history are constantly threatened by the erosion and destruction of artifacts. For instance, the fire that engulfed the Brazil National Museum in 2018 razed the country’s oldest human fossil and a 5.5-ton meteorite that was almost 300 years old. Through 4IR technologies, both preservative and preventive applications are being developed to protect these priceless treasures.

During the Huawei Asia-Pacific Innovation Day held last September 3, Li Huabiao, director of the data management and analysis center for the National Museum of China discussed their Smart National Museum Project. Using big data, the Internet of Things (IoT), and AI, they are able to create personalized environments for each specimen and even identify potential threats, such as fires, which can cause damage to the infrastructure.

Preservation of written tradition is also underway. For instance, one work being done under the Time Machine project is the digitization of physical manuscripts stored in archives and museums. In 2018, they even developed an algorithm which could outperform humans in transcribing ancient Venetian documents.

These technologies can also be used to build the past– or at least, a comprehensive, intelligent simulation of it. The Venice Time Machine project, a prototype of Time Machine, reconstructed the evolution of the Rialto district over 1000 years, the first of its kind in the world. Time Machine aims to create a simulation of 2000 years of European history.

“Any records that were kept before 2000 basically don’t exist, because we have no means of viewing them,” said Frédéric Kaplan, Director of EPFL’s Digital Humanities Laboratory, in a separate article. “We urgently need to bring our archives into the digital age. We mustn’t lose contact with the past.”

A smarter planet

While these efforts have only demonstrated the need to preserve the past, it is just as important to think about the future. Experts across various industries have been creating solutions for the different ways that the planet is being destroyed.

Take this IoT rain gauge from James Cook University that throws climate data to the cloud. By providing an inexpensive way for farmers to access such information in real time, they are not only guiding them through farming cycles but also preventing harmful chemicals from flowing into the ocean. Fertilizer run-offs often create damage to marine ecosystems such as the Great Barrier Reef, which recently has been showing great signs of deterioration.

In India, the International Union for Conservation of Nature (IUCN) has created a centralized database of run-ins between humans and wild elephants. By analyzing trends such as hotspots and the average time of occurrence, appropriate authorities are able to formulate preventive measures for any more encounters.

“You have an area with many incidents where elephants break houses to get the grain stored in there,” said Dr. Aditya Gangadharan, subregional support officer for the South Asia IUCN, India Country Program. “Now you know that there’s this hotspot for this particular reason, it’s been happening over these years, and so this is where we can focus on improved storage facilities.”

A more hopeful future

4IR tech-driven humanitarian efforts span across different sectors. The Clooney Justice Foundation uses an app in their TrialWatch® project to help monitor for human rights violations in courtrooms all over the world, with the data being collected and analyzed to build a justice rank index.

StorySign analyzes photos of printed text and translates it into sign language through a kid-friendly avatar, helping deaf children develop vital reading skills.

With such powerful technology at our fingertips, the possibilities are truly endless. But ultimately, it is political will that will keep the ball rolling for efforts outside the realm of business.

“Technology is one thing, but it can’t solve everything,” said Professor Xiang Wei, foundation professor and head of discipline of IoT Engineering at James Cook University. “We’ve been using very powerful artificial intelligence and internet of things technology to collect useful information and provide a very powerful predictive engine. But so what?”

“Eventually, it comes down to impact… People like you and me have to take practice.”

DoTr to focus on railway dev’t in 2020

October 4, 2019 | 12:33 am

By Denise A. Valdez
Reporter

RAILWAY PROJECTS are taking center stage next year as the sector will account for bulk of the Department of Transportation’s (DoTr) proposed budget for 2020.

The department presented to the Senate on Thursday its P147-billion proposed spending plan for next year, where P108 billion will be spent on projects, of which 99% will be spent on railways.

The Senate Committee on Finance approved the budget, which will now be taken up at the plenary.

Approximately P106.7 billion of DoTr’s approved budget for projects will go to railways, followed by P507.5 million for the maritime sector, P346.5 million for the aviation sector and P101 million for roads. About P360.6 million of the budget will go to other projects.

“The reason for this budget is because we are aggressively expanding the railway network,” Transportation Undersecretary for Railways Timothy John R. Batan said at the hearing.

Railway projects to be undertaken next year include the North-South Commuter Railway (NSCR), Metro Manila Subway Project, Metro Rail Transit Line 3 (MRT-3) Rehabilitation, Mindanao Railway Project, Philippine National Railway (PNR) South Long Haul, Light Rail Transit Line 1 (LRT-1) Cavite Extension and Subic-Clark Railway. Mr. Batan said construction of each of the projects is part of a plan to expand the country’s railway system, which will have a total length of 1,144 kilometers in 2022 from 77 km in 2016, consisting especially of LRT-1, LRT-2, MRT-3, PNR At-Grade, MRT-7, Metro Manila Subway, Subic-Clark Railway, NSCR, PNR Bicol and Mindanao Railway.

Within the same six-year period, the number of stations across all railway systems is targeted to increase to 169 from 59, the number of trains to 1,425 from 221, and daily ridership to 3.26 million from 1.02 million.

“Itong 2016, 2017 and 2018, iginugol natin sa project approvals, procurement at pag-arrange ng mga loans [We spent 2016, 2017 and 2018 for project approvals, procurement and arranging loans]. ’Yung construction natin are mostly starting in 2019, 2020, continuing to 2021,” he said.

Senators also asked the DoTr on the MRT-3 rehabilitation and how soon commuters may expect ease in riding experience. Mr. Batan said repairs are scheduled for completion by July 2021, but at least nine of the 48 new trains from China will be gradually rolled out for regular operations starting the second half of 2020.

Meanwhile, Transportation OIC Undersecretary for Road Transport and Infrastructure Mark Richmund M. de Leon said the Public Utility Vehicle (PUV) Modernization Program may extend its deadline for jeepney phaseout beyond July 2020.

“’Yung target kasi, ’yun ’yung [That target was] when we started this modernization program last 2017… But having said that, meron tayong mga [we’re encountering] challenges on financing, on the cost of the units, we will evaluate again based on these challenges,” he said at the hearing.

The government initially required jeepney drivers and operators to change their fleet of 15-year-old jeepneys into “environment friendly” units by 2020.

Mr. de Leon said there are 170,000 old jeepney units across the country today, and the goal is to have about 85,000 modern units to replace them by next year.

However, there are only 2,595 modern jeepneys operational today — more than two years since the launch of the PUV Modernization program.

“We support in general this modernization program. But I am not very encouraged by the answers that I hear today… In a week’s time, submit to us a revised target… what are your targets for the phaseout, and up to the end of this administration,” Senator Franklin M. Drilon told the DoTr.

Study cites PHL’s digital economy potential

October 4, 2019 | 12:32 am

POTENTIAL for developing the Internet economy in the Philippines remains the biggest in Southeast Asia, according to an annual Google-led report that said the region can be expected to breach the $100-billion mark in gross merchandise value (GMV) this year.

The 2019 e-Conomy report released on Thursday, which Google conducted in partnership with Temasek Holdings Pte. and Bain & Co., said Southeast Asia’s Internet economy shot up almost 40% to break the $100-billion mark this year. Growth was fueled by online travel, e-commerce, online media and ride hailing sectors. “This pace of growth has exceeded all expectations. At this rate, the Southeast Asian Internet economy is on track to hit $300 billion by 2025, topping our initial projection in 2016 by $100 billion,” it said.

The report also showed that in the Philippines, the Internet economy now makes up 2.1% of gross domestic product (GDP), and could be equivalent to 5.3% of GDP by 2025.

“Of the six Southeast Asian countries, the Philippines has the most room for growth,” the report said, comparing the country to Vietnam, Thailand, Malaysia, Singapore and Indonesia.

While Indonesia and Vietnam were found to be the leaders in Southeast Asia’s robust Internet economy in terms of proportion to GDP, the Philippines’ young and English-speaking population buoys the country’s potential.

It said there is a “growth surge” in the country’s online media sector, which recorded a compound annual growth rate of 42% to $2 billion this year from in 2015. “Subscription Music and Video Streaming services are especially popular among young Filipinos who are well-acquainted with English content,” it said.

E-commerce also drove the increase in value of the country’s Internet economy, growing 47% to $3 billion in the same four-year period.

The report noted investments in the Philippines’ digital financial services grew sixfold to more than $300 million last year from $50 million in 2017, largely due to fund raising by Voyager Innovations, Inc., Coins.ph and First Circle Growth Finance Corp.

Ride hailing grew 35% to $1 billion in 2019 from in 2015, despite regulatory constraints, limited driver supply and lack of competition in the country.

The value of online travel likewise grew 16% to $2 billion.

However, the report noted growth of the Internet economy is still largely limited to Southeast Asia’s capital cities.

In the Philippines, for example, the Internet economy is valued at $273 per capita in Metro Manila, but is $39 per capita for cities beyond the National Capital Region.

The report said this only shows the “wider gap in living standards and infrastructure between those living in metros and elsewhere.”

But the Internet is seen to also drive opportunities for less developed regions. The report explained that as technology’s impact spills over to ride hailing and food delivery, the Internet economy can become a “powerful lever” to drive growth in regions outside major cities. “Central and regional administrations are taking notice and working to make the Internet economy a key plank of their policies, with the aim of promoting inclusion,” it said. — Denise A. Valdez

Water firms appeal SC ruling on P1.8-B fine

October 4, 2019 | 12:31 am

METRO MANILA’s water service concessionaires have asked the Supreme Court to reverse its ruling imposing fines totalling close to P2 billion against them and Metropolitan Waterworks and Sewerage Systems (MWSS) for violations of Republic Act No. 9275, or the Philippine Clean Water Act of 2004.

The high court on Aug. 6 upheld the decision of the Court of Appeals that found the regulator and the concessionaires liable for violating Section 8 of the law.

Maynilad Water Services, Inc. and Manila Water Company, Inc. are each jointly liable with MWSS to pay P921.5 million covering the period May 7, 2009 to Aug. 6, the date of promulgation of the Supreme Court decision. They are also fined the initial amount of P322,102 per day subject to 10% increase every two years until full compliance with the law.

This stemmed from the fine imposed by the Department of Environment and Natural Resources (DENR) against them for failure within five years after the law took effect in early 2004 to install and maintain wastewater treatment facilities.

The water concessionaires elevated their cases to the appellate court in 2012, which dismissed their appeals.

In its 56-page motion for reconsideration, Manila Water said it complied with the law as its obligation is “simply to connect sewage lines existing at the time of the effectivity of the law to then-available sewerage systems” within five years from the law’s coming into force.

Manila Water asked that the case be referred to Court of Appeals or the DENR for determination of factual issues.

It noted that under, its concession agreement with MWSS in 1997, it is required to offer supply sewerage services and make new connections within a period of 40 years. “However, the decision interprets Section 8 of the Clean Water Act to mean that petitioner Manila Water must unconditionally comply with all its obligations under the concession agreement within five years from the law’s effectivity,” Manila Water said. “In other words, the decision folded-in the 40-year period for petitioner Manila Water to comply with its obligations under the concession agreement to a mere five (5) years, when the said period under Section 8 of the Clean Water Act was only intended for the interconnection of sewage lines to sewerage systems existing and available in 2004.”

It said that by 2009, it connected existing sewage lines of 61,166 out of 62,833 establishments, equivalent to 97% interconnection.

Maynilad, in its 158-page motion for reconsideration, said that the court failed to reconcile its ruling with its 2008 decision on the rehabilitation of Manila Bay which gave MWSS and the concessionaires until 2037 to perform its obligations under Section 8 of the law.

“Maynilad respectfully submits that this Honorable Court could not, and should not, shy away from its duty of obeying the Manila Bay Judgment (insofar as it gives the MWSS and the concessionaires until 2037 to complete the obligations under Section 8 of the CWA) or, at the very least, of harmonizing the same with this Honorable Court’s finding,” it said.

It also said that it did not violate Section 8 of the law for not being able to comply within five years, saying the “inevitable conclusion would still be that the law only requires a continuing obligation” on the part of concessionaires to interconnect existing lines, but not that it shall be completed within the five-year period provided.

The concessionaire also said that the resolution in Manila Bay affirmed that the obligation to install wastewater treatment facilities is a “continuing one” and is not expected to have been fully completed in five years.

It asked the court to conduct an oral argument and reverse its decision, and to remand the case to the DENR-Pollution Adjudication Board for reception of evidence on factual and technical issues.

It also said that it should not be held liable to pay fines as the Philippine Clean Water Act punishes polluters, and assuming that it failed to comply with installment of treatment facilities, it still does not constitute active pollution.

Maynilad said that the fine, which it claimed is intended to be applied to polluters and not to concessionaires, is “so confiscatory and punitive” and amounts to a criminal penalty.

The company’s right to due process was also violated as it was deprived of the opportunity to address the basis of the charges and liabilities against it.

Maynilad also said that to put up sufficient wastewater facilities to hit 100% coverage by 2022, it would have to spend more than P149 billion and would result in an increase in tariff by P11.47 per cubic meter, “which is more than twice the tariff increase of P5.37 for 2018 to 2022,” or almost P49 per cubic meter.

“This sudden increase would cripple common Filipinos’ access to water, as many would be unable to shoulder such high financial burden, especially in these difficult times where they are already dealing with skyrocketing prices of other equally important necessities like food, electricity, and gasoline,” it said. — Vann Marlo M. Villegas

From reluctant entrepreneur to a seasoned risk-taker

October 4, 2019 | 12:30 am

The Entrepreneur Of The Year Philippines 2019 has concluded its search for the country’s most successful and inspiring entrepreneurs. Entrepreneur Of The Year Philippines is a program of the SGV Foundation, Inc. with the participation of co-presenters Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each of the finalists for the Entrepreneur Of The Year Philippines 2019.

Necisto U. Sytengco
Chairman
SBS Philippines Corp.

DEVELOPING and managing a successful business is a long, arduous process that requires patience, determination, hard work, and business acumen.

For someone who is about to celebrate 50 years in the business, Necisto Sytengco is no stranger to the demands of entrepreneurship. He was only 16 years old when he took over the family insurance business after his father passed away. Young and inexperienced, he struggled to keep the company afloat because it was earning very low premiums at the time. To make matters worse, customers also doubted his ability to run the company.

He recalls, “People told me, “Who will buy insurance from you? You are only 16 years old? Nobody will trust you.”

Fortunately, he was able to maintain the business with the support of his father’s friend, the late Nicasio G. Co.

While working, he continued his education at the Mapua Institute of Technology and graduated with a BS Mechanical Engineering degree in just three and a half years. Armed with his experience in the insurance industry and a newly acquired degree, he ventured into electronic spare parts and chemical trading. In the early 1970s, he opened Sytengco Merchandising, a single proprietorship, in Sta. Cruz, Manila which initially focused on distributing electronic spare parts imported from Singapore.

The early years were financially challenging for Mr. Sytengco.

He recalls, “I had to save whatever I could save. There were times when I had to walk from my office in Sta. Cruz to Caloocan.”

Unbothered by his financial difficulties, he continued with his venture, determined to learn about the tricks of the trade. He would eventually become adept at identifying business opportunities and acquired loyal clients who helped him sustain and build SBS to what it is today.

Sensing the market’s growing need for raw chemical products, he shifted to the importation and trade of chemicals. He traveled to different countries in search of producers who could supply him with high-quality products at a competitive price. Encouraged by their wide range of products, companies from various industries began sourcing their chemical requirements from SBS.

As the company’s market share grew, it became difficult for SBS to meet its clients’ demands given their volume and time requirements. As a small company, SBS did not have the financial capability and storage capacity to supply clients with large volumes of chemicals within a limited amount of time.

But Mr. Sytengco knew that he had to deliver on his promises. He took out a loan with the help of a friend and invested in a strategic warehousing and distribution facility. This facility streamlined the movement of products, giving SBS the flexibility to provide their clients with chemicals in large volumes.

This move was instrumental in building the company’s good reputation and assuring their clients of their capabilities. He shares, “At SBS, we know what we’re doing. The best thing about us is our reputation. Whenever we commit to something, we do it. We don’t make promises that we cannot perform.”

A calculated risk-taker, Mr. Sytengco steered SBS through the national political and economic instability of the 1980s and the Asian financial crisis in 1997. Unlike his competitors who took conservative stances, he saw these events as opportunities to increase the volume of their products and expand and diversify their portfolio. He calculated the probability of his plan and foresaw a favorable return on investment. Immediately grabbing the opportunity, he ordered an increase on their imports. Although a significant risk, he explains, “In any business, there’s always a risk, but in trading, there’s always opportunity. I calculate the risk to check if the probability is above 60%, then I continue. You just have to ensure your strength as a trader and the reliability of your source so that you can deliver products to your client at an acceptable price range.”

His calculations proved correct as the company’s inventory flew off the shelves. He recounts, “We became one of the biggest companies in the industry. By then, my clients were convinced that only Nestor Sytengco could provide them with chemicals at that kind of volume even in times of crisis and shortage.”

Mr. Sytengco attributes his company’s success to its commitment to provide better value for clients’ investments. They constantly search for suppliers who provide high-quality products at reasonable and competitive prices. Through this strategy, clients reduce their cost, increase their market share and grow their business, leading SBS to achieve customer satisfaction and acquire long-term supply contracts.

Going beyond its role as chemical suppliers, SBS also studies its clients’ industries, goods and services to determine what they can do to further improve their operations. The company encourages clients to innovate by substituting their existing chemical materials with better ones.

SBS Philippines Corp. (formerly Sytengco Philippines Corp.) was established in 2001. SBS continues to expand its portfolio with a wide range of over 3,000 products to meet the requirements of various industries. It has also developed its operations through several key distribution warehouses with a combined storage capacity of 18,000 metric tons.

Its growth quickly attracted investors and, by August 2015, SBS was listed on the main board of the Philippine Stock Exchange with a total of 1.2 billion common shares with par value of P1.00 per share. Today, SBS stock has climbed to an estimated price of P9 per share. The company was named the 2015 Best Small Cap Equity Deal Of The Year in Alpha Southeast Asia’s 9th Annual Best Deal and Solutions Awards.

Mr. Sytengco’s ability to identify business opportunities extends to his corporate social responsibility endeavors. He established the Sytengco Foundation, Inc. which subsidizes education for priests, provides scholarships to students in Mapua University, and conducts regular charity clinics and medical missions in underprivileged areas. He also donates to the Philippine Cancer Society and various government hospitals and orphanages.

Through his penchant for calculated risk-taking, Mr. Sytengco was able to grow SBS Philippines Corp. from a humble merchandising firm to one of the leading chemical distributors in the country. In recognition of his outstanding career, he was named the 2018 Entrepreneur of the Year at the Asia Pacific Entrepreneurship Awards and has also received The Outstanding Mapuan Award for Entrepreneurship from Mapua University in 1994.

Having leveraged many opportunities to get where he is today, he gives one key advice to aspiring entrepreneurs, “Learn to seize the right opportunities at the right time. Not all ventures will end up successful so know how to mitigate risk. Be ready to encounter losses and learn from them. Build your credibility by delivering on your commitments to ensure long-term sustainability. Whatever we learn is our asset for life.”

The official airline of the Entrepreneur of the Year Philippines 2019 is Philippine Airlines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. Banquet sponsors are Global Ferronickel Holdings, Inc., Jollibee, and Uratex.

The winners of the Entrepreneur Of The Year Philippines 2019 will be announced on Oct. 15 in an awards banquet at the Makati Shangri-La Hotel. The Entrepreneur Of The Year Philippines will represent the country in the World Entrepreneur Of The Year 2020 in Monte Carlo, Monaco in June 2020.

The Entrepreneur Of The Year program is produced globally by Ernst & Young.

The internet economy in Southeast Asia

October 4, 2019 | 12:30 am

Filinvest, Mitsubishi to develop P15-billion project in Alabang

October 4, 2019 | 12:11 am

A UNIT of Filinvest Development Corp. (FDC) is partnering with Japanese firm Mitsubishi Corp. for the development of a P15-billion mixed-use project in Alabang.

In a statement issued Thursday, FDC said Mitsubishi will acquire a 40% stake in almost 17,000 square meters (sq.m.) of land held by its unit Filinvest Alabang, Inc. (FAI). The property is located in Filinvest City, the company’s 244-hectare mixed-use estate in Alabang.

Through a joint venture company, the two firms will develop a multi-tower complex featuring office spaces and retail concepts. The deal is seen to add about 183,000 sq.m. of mixed-use gross leasable area to Alabang.

The partnership requires approval from the Philippine Competition Commission.

“We are very pleased to enter into an agreement with Mitsubishi Corporation and we are looking forward to this partnership. We are optimistic that our synergy will bring forth another first-of-its-kind development that will complement the growth and vision of Filinvest City,” FAI President Catherine A. Ilagan said in a statement.

The joint venture project will be located across Festival Mall in Filinvest City, and will stand next to residential strip Parkway Avenue. It will also have direct access to the Central Park, which is currently being developed.

Other components of Filinvest City include a Spectrum Linear Park which spans across the northern to southern ends of the township, as well as a Riverside Park, that will house retail and dining establishments.

The township’s business locators are mostly tech companies such as business process outsourcing and knowledge process outsourcing firms. It is also home to several residential projects such as Studio City, Vivant Flats, West Parc, Aspen Tower, and Botanika Nature Residences.

FDC said the partnership will bring together FAI and Mitsubishi’s expertise in the fields of construction, operations and management, and urban development.

Mitsubishi earlier partnered with Antonio-led Century Properties Group, Inc. for the rollout of affordable residential units in provincial areas.

FDC reported a 19% increase in net income attributable to the parent to P6.13 billion in the first half of 2019, following a 14% increase in gross revenues to P37.23 billion.

Shares in FDC were unchanged at P13.40 each at the stock exchange on Thursday. — Arra B. Francia

Financial reporting rules amended

October 4, 2019 | 12:10 am

THE Securities and Exchange Commission (SEC) has amended financial reporting guidelines in line with the Revised Corporation Code, as well as in preparation for capital market integration with member countries of the Association of Southeast Asian Nations (ASEAN).

“Among the reasons is to incorporate interpretations and clarifications issued thru Financial Reporting Bulletins (and) adjust requirements for issuers and securities registration in preparation for ASEAN capital market integration,” according to a SEC representative.

The amended rules, titled Revised Securities Regulation Code (SRC) Rule 68, were published in a national daily on Thursday.

Salient changes in Rule 68 include the Test of Materiality under Part III, which states that “omissions or misstatements of items shall be material if they could individually or collectively, influence the economic decisions that users make on the basis of the financial statements.”

The amendment states that a misstatement in the financial statement, resulting from a deviation from the prescribed policy, misrepresentation, fraud, or error, will only be material if it “represents 10% or more of the total of related accounts or transactions.”

The previous rule delegated the Test of Materiality to SEC Memorandum Circular No. 8, Series of 2009, titled “Scale of Fines for Non-compliance with the Financial Reporting Requirements of the Commission.”

The new guidelines also changed the application documents for initial accreditations, where a notarized application form must be submitted by the applicant to the commission together with prescribed supporting documents.

“In cases where the applicant previously served as a manager for the audit of the selected AFS (audited financial statement) for evaluation, the applicant shall also submit a certification from the signing partner of the selected AFS that the applicant was part of the audit management team.”

The amended rule added a section for the Registration of Securities Pursuant to the ASEAN Capital Market Integration (ACMI). This states that the registration of securities pursuant to the ACMI Framework will follow Rule 68, subject to the adoption of the International Financial Reporting Standard for the basis of financial statements of foreign companies that look to pursue crossborder offerings or listings in the Philippines.

The SEC also made changes in the Mutual Recognition Policy to recognize the Memorandum of Agreement between and among the commission, Board of Accountancy, Bangko Sentral ng Pilipinas (BSP), and Insurance Commission. This covers auditors supervised by the BSP.

For the section on Operational Requirements, the SEC highlighted the auditor’s responsibility in obtaining information on a client’s compliance or noncompliance with laws or regulations.

The commission added a provision saying: “They shall inquire with the management as to whether there is an ongoing investigation against the company and require the client corporation to inform them.”

Changes in the section on Scope and Limitation of Accreditation state that the commission will subject to the SEC Oversight Assurance Review Inspection Program the accredited auditing firms hired by listed companies, and review portions of the firms’ audit work. It may also subject to the same standards the independent auditors of other companies, as required by the circumstances.

The amended rules also separated the definition of large entities versus public interest entities, whereas the former are those with total assets of more than P350 million, or total liabilities of more than P250 million.

In contrast, public interest entities are those that hold secondary licenses issued by regulatory agencies, and are in the process of filing their financial statements in preparation for the issuance of any class of instruments to the public market.

Other changes include the removal of a provision that directed companies with bank loans of more than P250 million to have an SEC-accredited external auditor; the requirement for entities listed under the SEC’s top 1000 corporations to have SEC-accredited external auditors; and the shortening of the period of reapplication for denied accreditation applications. — Arra B. Francia

DoE probes mudslide at Semirara facility

October 4, 2019 | 12:09 am

THE Department of Energy (DoE) is investigating a mudslide at the facility in Antique of listed Semirara Mining and Power Corp. (SMPC), the agency said on Thursday, as rescue operations continue for a missing employee after the incident.

“We are thoroughly investigating the matter to determine the cause of the incident, and ensure that all safety standards and protocols were strictly upheld,” Energy Secretary Alfonso G. Cusi said in a statement.

Mr. Cusi said SMPC had assured its “full cooperation” with the investigation. The DoE said the investigation has launched on Wednesday and that it would continue to issue updates.

The DoE said its Energy Resource Development Bureau (ERDB) deployed a team of geologists and mining engineers to conduct an on-site assessment.

It said based on the aerial and ground inspections of the technical team, the presence of mudflow was confirmed at the location of the incident.

According to the mining firm’s initial report to the department, regular mining operations were ongoing with heavy machinery, PS27, working on the drainage canal at the Molave pit of the site’s south wall, when an irregularity was detected at 1 a.m.

The mudslide occurred five minutes later, at 1:05 a.m., hitting the PS27 equipment and its operator, it added.

Sought for comment, SMPC confirmed the occurrence of a mudslide at around 1:05 a.m. on Oct. 2 in Southwest Tungao, Semirara Island.

“The operator of a power shovel that was swept by the mudslide remains missing. We have notified his next of kin and have assured them of our full support to them during this difficult time,” the company said in a statement.

SMPC said it was fully cooperating with the DoE in the investigation of the incident.

On Thursday, shares in the company closed higher by 1.36% at P22.35 each. — Victor V. Saulon

New telco player partners with SkyCable, Chavit Singson-led firm

October 4, 2019 | 12:08 am

Dito Telecommunity

NEW major telecommunications player Dito Telecommunity Corp. has forged deals with businessman Luis “Chavit” C. Singson’s LCS Holdings, Inc. and ABS-CBN Corp.’s Sky Cable Corp. covering the use of the two companies’ infrastructure assets.

In a statement yesterday, the China-backed firm said it has signed a memorandum of agreement (MoA) with LCS for the rollout of shareable telecommunications towers in key areas around the country.

LCS and Dito (formerly Mislatel) had both joined the government’s bidding for a new major telco player last year. Mr. Singson said despite losing to Dito, the company is “still very passionate in fulfilling its commitment to the public in improving the quality of telecommunication services.”

“Together with our partners, we will go full blast on manufacturing and rolling out common towers and other telecommunication infrastructure in the country,” the LCS chairman was quoted as saying in the statement.

For its partnership with SkyCable, Dito is seeking to use the company’s unused fiber optic cables located in Metro Manila. While fiber optic cables are used by television networks to transmit cable television signals, telcos may use the same asset to transmit phone signals and internet.

“These two deals allow Dito to tap reliable local partners and their existing telecommunication infrastructure assets to support our network rollout, without having to build everything from scratch,” Dito Chief Administrative Officer Adel A. Tamano said in the statement.

Dito is scheduled to launch its services in the second quarter of 2020, with a government commitment to deliver a minimum broadband speed of 27 Megabits per second (Mbps) to 37.03% of the national population by July.

“We are serious in our commitment and will be breaking ground within the next few days for the first of many cellular sites for Dito Telecommunications in cooperation with the LCS Group,” Mr. Tamano said.

Dito is owned and controlled by Dennis A. Uy’s Udenna Corp. and Chelsea Logistics and Infrastructure Holdings Corp., and China Telecommunications Corp.

The government is hoping the entry of Dito will bring faster and cheaper telecommunications services for consumers. — Denise A. Valdez

Meet the ex-banker tackling world’s worst traffic with motorcycle taxi app

October 4, 2019 | 12:07 am

A FORMER Singaporean banker’s motorcycle taxi app is emerging as a key rival to Grab — and a test case for Manila’s resolve in unclogging the world’s most congested streets.

Founder Angeline Tham’s Angkas — the Filipino word for “hitching a ride” — has in three years become one of the Philippines’ most popular ride-hailing services with 3 million downloads and 27,000 registered drivers. That’s despite getting shut down twice since its inception because of a five-decade-old law against the use of motorcycles for public transport, a ban intended to enhance road safety. The 37-year-old chief executive’s app is now operating on a temporary license but hopes to secure full legality when regulators review the prohibition in December.

Ms. Tham founded Angkas in 2016 after experiencing the world’s worst traffic first-hand, spending six hours in one day just traveling across Manila. She argues that the view of motorbikes being deadly is outmoded and has in past months enacted a number of measures to try and increase safety, including setting up two training centers offering free driving courses and campaigning for proper helmet use.

“We’ve been able to maintain our safety record at 99.997%,” Ms. Tham, previously a JPMorgan Chase & Co. associate and vice-president at a Softbank Group Corp. venture capital fund, said in an interview. “We’re even safer than condoms.”

Angkas is challenging Southeast Asian ride-hailing giant Grab by promising faster commutes starting at P50 ($1) a trip. But it’s currently operating in a gray area, impeding efforts to secure funding. After Angkas’ closures provoked a strong public outcry, regulators in June allowed Angkas to operate over a six-month trial period. If Manila decides to green-light the service, that could open the door to a clutch of new competitors to Grab, including potentially Indonesia’s Gojek.

For the pilot run, Ms. Tham is focusing on the main concern of policy makers and first-time users: crashes. More than half of vehicular deaths in the Philippines involve motorbikes, she said. But her start-up imposes some of the region’s strictest safety standards for motorcycle taxis, she said. Only one in four drivers pass a written exam and driving course that Angkas mandates on top of the usual government requirements for a professional license.

Ms. Tham, who in August drew condemnation for a marketing promo that likened the app’s services to sex, is confident her start-up has performed well enough to rally both public and political support to amend the Philippines’ transport law. She said Angkas could expand to more cities given strong interest from regional VC funds to invest in myriad solutions for Southeast Asia’s clogged cities.

“The goal is to give time and power back to the people,” she said. “So much of our life is chained to traffic.” — Bloomberg

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