By Wilfredo G. Reyes, Editor-in-Chief
\n\u201cWe should grow up. First of all, it\u2019s time to realize and accept the fact that heightened uncertainty and instability are here to stay.\u201d
\nThis, the global boss of a consultancy giant said over lunch earlier this year, has been the gist of his message to clients as economies reopen, especially to those who dream of restoring pre-pandemic systems and practices lock, stock, and barrel.
\nThe once-in-a-century pandemic has spawned a host of challenges in the past three years, including mounting debt as countries and companies struggle to weather its impact, prolonged tight credit conditions and deep socioeconomic scars.
\nAdd to this changing consumption patterns and other structural shifts, not to mention problems such as supply chain disruptions and repercussions of the raging Ukraine-Russia war, China\u2019s slowing growth, a potential US and euro zone recession and economic and business risks from climate change.
\nThe picture varies across economies, with the Philippines now expected to outpace most in Asia and the Pacific region this year and next in terms of gross domestic product growth. At the same time, the country is expected to reel from the fastest inflation in the region amid income inequality that is the worst among its peers (and which apparently crimped consumption and weighed considerably on second-quarter growth).
\nThe central bank\u2019s surveys have shown that businesses have understandably remained cautious \u2014 despite improvement in overall confidence since much of last year \u2014 about prospects in succeeding quarters and the next 12 months. Consumers remained pessimistic in the second quarter and confident \u2014 though less than they were in previous surveys \u2014 for the next quarter and the succeeding 12 months since the middle of 2022.
\nBusinessWorld\u2019s economic fora since the pandemic struck at the start of 2020 have been providing insights on trends to watch, among them artificial intelligence (AI), automation and information technology and how they provide opportunities in areas like content generation, improving customer experience, financial inclusion and raising productivity even as companies and workers struggle with upskilling and even reskilling.
\nMeanwhile, social media has become a primary field of business competition, while increasingly perceptible climate change has made consumers more discerning in their choices, in turn making businesses more mindful of environmental, social and governance (ESG) imperatives, even as the impact of sustainable practices on bottom lines has not yet been that apparent. Of course, there is no turning back from hybrid and other alternative work arrangements despite productivity concerns among many employers.
\nThis anniversary report themed \u201cRisks and rebounds: Reframing business realities\u201d aims to provide an updated glimpse of how sectors have been factoring in the fast-changing environment into their plans. How has recovery unfolded in specific industries so far? What have companies learned and what have they changed to become more competitive? What technologies have they adopted to spur their rebound? What emerging risks and opportunities have they seen? We hope the reader will find answers to these and other important questions in the following pages.
\nTake note that this report just forms part of a bigger effort to track economic recovery, which has also been the main focus of our annual BusinessWorld Top 1000 Corporations in the Philippines, biannual fora, monthly \u201cInsights\u201d webinars, quarterly banking reports, etc. We encourage the reader to check out these other contents that are rolled out throughout the year to get the bigger picture.
\n", "content_text": "By Wilfredo G. Reyes, Editor-in-Chief\n\u201cWe should grow up. First of all, it\u2019s time to realize and accept the fact that heightened uncertainty and instability are here to stay.\u201d\nThis, the global boss of a consultancy giant said over lunch earlier this year, has been the gist of his message to clients as economies reopen, especially to those who dream of restoring pre-pandemic systems and practices lock, stock, and barrel.\nThe once-in-a-century pandemic has spawned a host of challenges in the past three years, including mounting debt as countries and companies struggle to weather its impact, prolonged tight credit conditions and deep socioeconomic scars.\nAdd to this changing consumption patterns and other structural shifts, not to mention problems such as supply chain disruptions and repercussions of the raging Ukraine-Russia war, China\u2019s slowing growth, a potential US and euro zone recession and economic and business risks from climate change.\nThe picture varies across economies, with the Philippines now expected to outpace most in Asia and the Pacific region this year and next in terms of gross domestic product growth. At the same time, the country is expected to reel from the fastest inflation in the region amid income inequality that is the worst among its peers (and which apparently crimped consumption and weighed considerably on second-quarter growth).\nThe central bank\u2019s surveys have shown that businesses have understandably remained cautious \u2014 despite improvement in overall confidence since much of last year \u2014 about prospects in succeeding quarters and the next 12 months. Consumers remained pessimistic in the second quarter and confident \u2014 though less than they were in previous surveys \u2014 for the next quarter and the succeeding 12 months since the middle of 2022.\nBusinessWorld\u2019s economic fora since the pandemic struck at the start of 2020 have been providing insights on trends to watch, among them artificial intelligence (AI), automation and information technology and how they provide opportunities in areas like content generation, improving customer experience, financial inclusion and raising productivity even as companies and workers struggle with upskilling and even reskilling.\nMeanwhile, social media has become a primary field of business competition, while increasingly perceptible climate change has made consumers more discerning in their choices, in turn making businesses more mindful of environmental, social and governance (ESG) imperatives, even as the impact of sustainable practices on bottom lines has not yet been that apparent. Of course, there is no turning back from hybrid and other alternative work arrangements despite productivity concerns among many employers.\nThis anniversary report themed \u201cRisks and rebounds: Reframing business realities\u201d aims to provide an updated glimpse of how sectors have been factoring in the fast-changing environment into their plans. How has recovery unfolded in specific industries so far? What have companies learned and what have they changed to become more competitive? What technologies have they adopted to spur their rebound? What emerging risks and opportunities have they seen? We hope the reader will find answers to these and other important questions in the following pages.\nTake note that this report just forms part of a bigger effort to track economic recovery, which has also been the main focus of our annual BusinessWorld Top 1000 Corporations in the Philippines, biannual fora, monthly \u201cInsights\u201d webinars, quarterly banking reports, etc. We encourage the reader to check out these other contents that are rolled out throughout the year to get the bigger picture.", "date_published": "2023-09-04T00:30:57+08:00", "date_modified": "2023-09-03T14:58:20+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/Arrow-up.jpg", "tags": [ "bw36", "Wilfredo G. Reyes", "Special Reports" ], "summary": "\u201cWe should grow up. First of all, it\u2019s time to realize and accept the fact that heightened uncertainty and instability are here to stay.\u201d" }, { "id": "https://www.bworldonline.com/?p=542924", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542924/pandemic-geopolitical-risks-force-agro-food-companies-to-innovate/", "title": "Pandemic, geopolitical risks force agro-food companies to innovate", "content_html": "By Kyle Aristophere T. Atienza, Reporter
\nTHE coronavirus pandemic exposed the world to unprecedented risks, affecting the agricultural sector and food security and prompting governments to impose protectionist policies.
\nBut the global health crisis, which also showed the weakness of other industries in the face of supply chain disruptions, spurred companies in the agro-food sector to innovate.
\n\u201cThe supply chain disruptions caused by the COVID-19 (coronavirus disease 2019) pandemic created a number of responses by both companies and countries,\u201d Christopher Ilagan, who heads the American Chamber of Commerce of the Philippines (AmCham) Agribusiness Committee, said in an e-mail.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/Agriculture-scaled.jpg\")
\u201cFrom a deep reliance on global trade flows, the shifts have come in various forms. There are those who have diversified supplier bases across borders and there are others who have sought to \u2018near-shore\u2019 or \u2018friend-shore\u2019 their supply chains.\u201d
\u201cThe most extreme has been the reshoring or onshoring of supply chains, driven further by growing nationalism, protectionism and geopolitical tensions,\u201d he added.
\nCargill Philippines, Inc. was among the companies in the Philippines that adapted to the \u201cchanging marketplace conditions and operational and logistical challenges.\u201d
\n\u201cOur interconnectedness and experience from 75 years in the Philippines allowed us to deal with the challenges that arose as a result of the pandemic \u2014 we could tap local sourcing options to reduce dependency on international supply routes and satisfy demand in vulnerable communities,\u201d it said in an e-mail.
\nDuring the pandemic, Cargill redirected poultry from restaurants in Asian countries like the Philippines to consumers, selling the equivalent of about 200,000 budget meals locally.
\nCargill provides food and agricultural services and products such as grain, oilseed, commercial feeds and sweeteners.
\n\u201cIn response to the shifting demands, it was important to take an agile approach and adjust swiftly,\u201d it said.
\nCargill said it has been using digital solutions to efficiently analyze data, improve decision-making and optimize farm operations, \u201cproviding our partners a competitive advantage in the market.\u201d
\n\u201cWith our expertise in precision nutrition, we can drive efficiencies and enable livestock farmers to do more with less,\u201d it said. \u201cWe provide customized formulations that minimize waste while maximizing nutrient absorption and raw material utilization.\u201d
\nThe company has adopted new methods and technologies to become more competitive, including a cloud-based farm management platform called Agriness, which provides real-time data and insights to improve productivity, enhance animal well-being and increase profitability.
\nThe company has also been using a poultry microbiome assessment tool called Galleon, which uses artificial intelligence (AI) and statistical analysis to help farmers assess the gut microbiome of their flock.
\nIt has also adopted Panorama, a flexible scenario planning system that helps broiler producers make confident decisions about their operations for the best economic results; Neopigg, a young animal nutrition solution that gives piglets a good start to boost their performance throughout their life cycle; and Truvisor, a broiler breeder offering that helps improve laying performance, hatchability and chick quality.
\n\u201cThe global health crisis taught us the value of agility and we continue to maintain a contingency plan to address potential issues promptly,\u201d Cargill said. \u201cWe continuously review and refine our business continuity strategies to better respond to future crises effectively.\u201d
\nThe same is true for Axelum Resources Corp., a Philippine manufacturer, exporter and retailer of globally in-demand consumer food essentials, including coconut products.
\n\u201cThe COVID-19 pandemic compelled us to innovate our ways without compromising productivity by embracing digitalization, streamlining our value chain and reinforcing contingency planning, in order to thrive in a renewed business landscape,\u201d it said in an e-mail.
\nThe company has capitalized on unprecedented opportunities to future-proof key areas of the business, \u201cwhich will serve as our growth anchor in the long term.\u201d
\nAxelum said it has continuously invested in cutting-edge technology to maximize scale and retain its competitive edge, citing its main production facility in Misamis Oriental in southern Philippines that features state-of-the\u2013art equipment \u201cattuned to world-class manufacturing and export standards.\u201d
\n\u2018TECH ADOPTION\u2019
\nAt the peak of community lockdowns, the company managed to fast-track its expansion programs, resulting in increased production capacity of up to 50%.
Mr. Ilagan of AmCham noted that in the food and agriculture space, there has been a growing focus on enhancing domestic food security with the help of emerging technologies, including precision agriculture, robotics and automation in the food manufacturing sector, artificial intelligence in digital applications and biotechnology to maximize yields/productivity for various crops and livestock species.
\n\u201cThis tech adoption trend is driven not only by the pressures of having to feed a growing and more prosperous nation, but also to react against those counter-productivity trends which have reduction impacts on productivity, such as climate change and human-induced air, water, soil and solid waste pollution,\u201d he said.
\nAside from the pandemic, geopolitical tensions and the ever-changing climate have also pushed food prices up, worsening food insecurity, according to McKinsey & Company.
\nIt noted that Russia\u2019s invasion of Ukraine, which is among the world\u2019s six breadbasket regions, was \u201ctilting global food security into a state of high risk.\u201d
\nRecently, Russia withdrew from a deal that allowed Ukraine to export grain through the Black Sea, raising fears over global food supplies.
\nCargill said it\u2019s working to mitigate external risks by helping boost the local food system \u201cto avoid disruptions.\u201d
\n\u201cWe firmly believe that by addressing global challenges head on and adopting forward-thinking strategies, we can turn these challenges into opportunities for a sustainable, resilient and thriving future,\u201d it said. \u201cAfter all, our mission is fueled by our drive to keep innovating and fostering collaboration with our partners and stakeholders.\u201d
\nThe company said it has been rehabilitating 700 hectares of coconut farms damaged by Super Typhoon Odette, helping 1,000 coconut farmers. \u201cThis is being done through farmer-led propagation of seed nuts in community-based seedbeds and nurseries, farmer training in sustainable agriculture, provision of alternative livelihoods while waiting for the coconut trees to bear fruit, and establishment of farmer cooperatives for improved access to markets and corporate buyers.\u201d
\nIt has also been helping corn farmers and cooperatives to boost agricultural yields, improve farmer livelihood and contribute to the country\u2019s food security.
\n\u201cBy integrating an inclusive business model and training on environmentally sound agricultural practices into the program, we aim to strengthen our commitment to support the local corn industry through full utilization of corn yields while creating an alternative corn supply for Cargill feed mills in the Philippines.\u201d
\nThe company said it\u2019s also committed to implementing sustainable practices, noting that it plans to reduce global greenhouse gas emissions from its global supply chain by 30% by 2030.
\nAxelum, meanwhile, said it has instituted an evolving sustainability agenda to address or mitigate various climate and environmental risks.
\n\u201cOur manufacturing operations make full use of the coconut, resulting in zero waste generated from raw materials,\u201d it said. \u201cWe constantly modernize our equipment and infrastructure, while optimizing logistical activities to further reduce our direct carbon footprint.\u201d
\nThe companies hope the government will boost the country\u2019s access to international markets through trade agreements and export incentives.
\nBy doing so, \u201cthe government can reduce trade barriers and create more opportunities for Filipino agri-food products in the global marketplace,\u201d Cargill said.
\nExport incentives would also harness the potential of the Philippine coconut industry on the global stage, Axelum said.
\nMr. Ilagan said the government needs to simplify and harmonize regulations across the agro-food sector, strengthen the push toward consolidation of operations in the agriculture sector and broad adoption of new technologies, and popularize sustainable or regenerative agriculture.
\n\u201cAll these are important areas of reform that must be pursued to set the country up to weather these longer-term challenges around food security.\u201d
\n", "content_text": "By Kyle Aristophere T. Atienza, Reporter\nTHE coronavirus pandemic exposed the world to unprecedented risks, affecting the agricultural sector and food security and prompting governments to impose protectionist policies.\nBut the global health crisis, which also showed the weakness of other industries in the face of supply chain disruptions, spurred companies in the agro-food sector to innovate.\n\u201cThe supply chain disruptions caused by the COVID-19 (coronavirus disease 2019) pandemic created a number of responses by both companies and countries,\u201d Christopher Ilagan, who heads the American Chamber of Commerce of the Philippines (AmCham) Agribusiness Committee, said in an e-mail. \n\u201cFrom a deep reliance on global trade flows, the shifts have come in various forms. There are those who have diversified supplier bases across borders and there are others who have sought to \u2018near-shore\u2019 or \u2018friend-shore\u2019 their supply chains.\u201d\n\u201cThe most extreme has been the reshoring or onshoring of supply chains, driven further by growing nationalism, protectionism and geopolitical tensions,\u201d he added.\nCargill Philippines, Inc. was among the companies in the Philippines that adapted to the \u201cchanging marketplace conditions and operational and logistical challenges.\u201d\n\u201cOur interconnectedness and experience from 75 years in the Philippines allowed us to deal with the challenges that arose as a result of the pandemic \u2014 we could tap local sourcing options to reduce dependency on international supply routes and satisfy demand in vulnerable communities,\u201d it said in an e-mail.\nDuring the pandemic, Cargill redirected poultry from restaurants in Asian countries like the Philippines to consumers, selling the equivalent of about 200,000 budget meals locally.\nCargill provides food and agricultural services and products such as grain, oilseed, commercial feeds and sweeteners.\n\u201cIn response to the shifting demands, it was important to take an agile approach and adjust swiftly,\u201d it said.\nCargill said it has been using digital solutions to efficiently analyze data, improve decision-making and optimize farm operations, \u201cproviding our partners a competitive advantage in the market.\u201d\n\u201cWith our expertise in precision nutrition, we can drive efficiencies and enable livestock farmers to do more with less,\u201d it said. \u201cWe provide customized formulations that minimize waste while maximizing nutrient absorption and raw material utilization.\u201d\nThe company has adopted new methods and technologies to become more competitive, including a cloud-based farm management platform called Agriness, which provides real-time data and insights to improve productivity, enhance animal well-being and increase profitability.\nThe company has also been using a poultry microbiome assessment tool called Galleon, which uses artificial intelligence (AI) and statistical analysis to help farmers assess the gut microbiome of their flock.\nIt has also adopted Panorama, a flexible scenario planning system that helps broiler producers make confident decisions about their operations for the best economic results; Neopigg, a young animal nutrition solution that gives piglets a good start to boost their performance throughout their life cycle; and Truvisor, a broiler breeder offering that helps improve laying performance, hatchability and chick quality.\n\u201cThe global health crisis taught us the value of agility and we continue to maintain a contingency plan to address potential issues promptly,\u201d Cargill said. \u201cWe continuously review and refine our business continuity strategies to better respond to future crises effectively.\u201d\nThe same is true for Axelum Resources Corp., a Philippine manufacturer, exporter and retailer of globally in-demand consumer food essentials, including coconut products.\n\u201cThe COVID-19 pandemic compelled us to innovate our ways without compromising productivity by embracing digitalization, streamlining our value chain and reinforcing contingency planning, in order to thrive in a renewed business landscape,\u201d it said in an e-mail.\nThe company has capitalized on unprecedented opportunities to future-proof key areas of the business, \u201cwhich will serve as our growth anchor in the long term.\u201d\nAxelum said it has continuously invested in cutting-edge technology to maximize scale and retain its competitive edge, citing its main production facility in Misamis Oriental in southern Philippines that features state-of-the\u2013art equipment \u201cattuned to world-class manufacturing and export standards.\u201d\n\u2018TECH ADOPTION\u2019\nAt the peak of community lockdowns, the company managed to fast-track its expansion programs, resulting in increased production capacity of up to 50%.\nMr. Ilagan of AmCham noted that in the food and agriculture space, there has been a growing focus on enhancing domestic food security with the help of emerging technologies, including precision agriculture, robotics and automation in the food manufacturing sector, artificial intelligence in digital applications and biotechnology to maximize yields/productivity for various crops and livestock species.\n\u201cThis tech adoption trend is driven not only by the pressures of having to feed a growing and more prosperous nation, but also to react against those counter-productivity trends which have reduction impacts on productivity, such as climate change and human-induced air, water, soil and solid waste pollution,\u201d he said. \nAside from the pandemic, geopolitical tensions and the ever-changing climate have also pushed food prices up, worsening food insecurity, according to McKinsey & Company.\nIt noted that Russia\u2019s invasion of Ukraine, which is among the world\u2019s six breadbasket regions, was \u201ctilting global food security into a state of high risk.\u201d\nRecently, Russia withdrew from a deal that allowed Ukraine to export grain through the Black Sea, raising fears over global food supplies.\nCargill said it\u2019s working to mitigate external risks by helping boost the local food system \u201cto avoid disruptions.\u201d\n\u201cWe firmly believe that by addressing global challenges head on and adopting forward-thinking strategies, we can turn these challenges into opportunities for a sustainable, resilient and thriving future,\u201d it said. \u201cAfter all, our mission is fueled by our drive to keep innovating and fostering collaboration with our partners and stakeholders.\u201d\nThe company said it has been rehabilitating 700 hectares of coconut farms damaged by Super Typhoon Odette, helping 1,000 coconut farmers. \u201cThis is being done through farmer-led propagation of seed nuts in community-based seedbeds and nurseries, farmer training in sustainable agriculture, provision of alternative livelihoods while waiting for the coconut trees to bear fruit, and establishment of farmer cooperatives for improved access to markets and corporate buyers.\u201d\nIt has also been helping corn farmers and cooperatives to boost agricultural yields, improve farmer livelihood and contribute to the country\u2019s food security.\n\u201cBy integrating an inclusive business model and training on environmentally sound agricultural practices into the program, we aim to strengthen our commitment to support the local corn industry through full utilization of corn yields while creating an alternative corn supply for Cargill feed mills in the Philippines.\u201d\nThe company said it\u2019s also committed to implementing sustainable practices, noting that it plans to reduce global greenhouse gas emissions from its global supply chain by 30% by 2030.\nAxelum, meanwhile, said it has instituted an evolving sustainability agenda to address or mitigate various climate and environmental risks.\n\u201cOur manufacturing operations make full use of the coconut, resulting in zero waste generated from raw materials,\u201d it said. \u201cWe constantly modernize our equipment and infrastructure, while optimizing logistical activities to further reduce our direct carbon footprint.\u201d\nThe companies hope the government will boost the country\u2019s access to international markets through trade agreements and export incentives.\nBy doing so, \u201cthe government can reduce trade barriers and create more opportunities for Filipino agri-food products in the global marketplace,\u201d Cargill said. \nExport incentives would also harness the potential of the Philippine coconut industry on the global stage, Axelum said.\nMr. Ilagan said the government needs to simplify and harmonize regulations across the agro-food sector, strengthen the push toward consolidation of operations in the agriculture sector and broad adoption of new technologies, and popularize sustainable or regenerative agriculture.\n\u201cAll these are important areas of reform that must be pursued to set the country up to weather these longer-term challenges around food security.\u201d", "date_published": "2023-09-04T00:29:56+08:00", "date_modified": "2023-09-03T14:58:16+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/smart-robotic-farmers-concept-robot-farmers-agriculture-technology-farm-automation.jpg", "tags": [ "bw36", "Kyle Aristophere T. Atienza", "Special Reports" ], "summary": "THE coronavirus pandemic exposed the world to unprecedented risks, affecting the agricultural sector and food security and prompting governments to impose protectionist policies." }, { "id": "https://www.bworldonline.com/?p=542923", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542923/more-support-needed-for-infrastructures-post-pandemic-recovery/", "title": "More support needed for infrastructure\u2019s post-pandemic recovery", "content_html": "By Luisa Maria Jacinta C. Jocson, Reporter
\nTHE government will need to create a more enabling environment for investments to support the infrastructure sector\u2019s post-pandemic recovery, analysts said.
\n\u201cOn the national front, hard-earned gains might still be lost and global opportunities missed. For instance, our failure to build the manufacturing sector, made worse by the government\u2019s inability to lower energy costs and cut the bureaucratic red tape, has made a lot of investors look elsewhere for opportunities,\u201d Megaworld Corp. First Vice-President for Marketing and Sales Noli D. Hernandez said in a Viber message.
\nInfrastructure development is one of the Marcos administration\u2019s priority areas. The government is targeting to spend 5-6% of gross domestic product (GDP) on infrastructure annually.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/GVA-Construction.jpg\")
This year, the government plans to spend 5.3% of GDP on infrastructure, equivalent to about P1.29 trillion.
\nFrom 2010 to 2018, developing countries used only about 70% of infrastructure investment budgets, according to the World Bank.
\nA recent note by Nomura Global Markets Research said Philippine infrastructure development is seen to accelerate in the medium term.
\u201cWe remain optimistic that infrastructure development in these countries will accelerate in the next few years. Despite the recent improvement, there remains substantial scope for more progress, and governments are setting more ambitious targets to narrow this gap, building on earlier successes,\u201d Nomura said.
\nColliers Philippines Research Director Joey Roi H. Bondoc said the construction sector has yet to return completely to pre-pandemic levels.
\n\u201cConstruction activities have yet to revert to pre-pandemic levels but we are definitely seeing glimmers of hope. In our view, return to pre-pandemic construction levels will likely hinge on interest rate movements, prices of construction materials,\u201d he said in an e-mail.
\nMr. Bondoc said that external headwinds will also continue to have an impact on the recovery of construction activities.
\n\u201cColliers also believes that overall recovery in demand will also partly rely on sustained business and consumer confidence across the Philippines. The country\u2019s growth trajectory presents enormous opportunities for developers with office, residential, retail, and leisure footprint,\u201d he added.
\nSUPPORT NEEDED
\nSustained growth in government spending will be crucial for the rebound for the sector.
\u201cThe most important underlying reason for the recovery of the infrastructure sector has been the sustained and broadening government spending on public infrastructure in the last few years,\u201d Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in an e-mail.
\nInfrastructure spending rose by an annual 7.8% to P507.2 billion in the first half. Overall infrastructure disbursements in the first six months were equivalent to 5.3% of GDP.
\n\u201cDespite the coronavirus pandemic and economic headwinds, the government has continued to spend on new roads, bridges and flood control projects in various parts of the country,\u201d he added.
\nUnder the proposed 2024 National Expenditure Plan, the \u201cBuild, Better, More\u201d program has been allocated P1.418 trillion. The bulk will go to physical connectivity infrastructure such as seaports, airports, and mass transport.
\nThe National Economic and Development Authority (NEDA) Board has approved 197 flagship infrastructure projects worth P8.71 trillion.
\n\u201cThe government\u2019s massive infrastructure program should benefit the Philippine property market and developers should seize opportunities by strategically launching more office projects, residential enclaves, and hotels in major growth areas,\u201d Mr. Bondoc said.
\nHowever, the government\u2019s massive infrastructure commitments are not enough to support the rest of the construction sector.
\nThere is still a need to expedite permitting processes, cut red tape, and create a more enabling environment for investments.
\n\u201cThe challenge of the government is not about allocating the budget, but I think it\u2019s implementation of projects. Some of the projects we are doing today were approved even during Marcos Sr.\u2019s time, and we\u2019re only doing it now,\u201d Phinma Corp. Executive Vice-President Eduardo A. Sahagun said in a Zoom call interview.
\n\u201cIf it takes the same amount of time to do it, we will lag behind. I hope that\u2019s where the bottlenecks must be addressed, how to speed up implementation of projects,\u201d he added.
\nMORE PPP PROJECTS
\nThe government should pursue more public-private partnerships (PPPs) and joint ventures (JVs) to accelerate the implementation of projects.
\u201cThe openness towards public-private partnerships has been an important reform in the infrastructure sector. It is bearing fruit today with the decision to implement a P170-billion solicited bidding for the rehabilitation of the Ninoy Aquino International Airport (NAIA),\u201d Mr. Ridon said.
\nThe government recently invited local and foreign investors to bid for the PPP project to upgrade and operate the NAIA. This will be under a rehabilitate-operate-expand-transfer arrangement, as provided for under the Build-Operate-Transfer Law.
\n\u201cLocal developers should explore firming up JVs with other homegrown players or even foreign property firms. In our view foreign players benefit from their partnership with local players given the latter\u2019s experience in tapping and catering to the preferences of the domestic market,\u201d Mr. Bondoc said.
\n\u201cWhat\u2019s notable is that these JVs are likely to result in a more competitive Philippine property landscape, eventually benefiting Filipino investors and end-users,\u201d he added.
\nThe government is hoping to attract more foreign investments after recent economic reforms allowed full foreign ownership in telecommunications, airlines, railways and renewable energy projects.
\nPOST-PANDEMIC STRATEGIES
\nMeanwhile, companies involved in infrastructure are looking to revamp their internal processes to integrate post-pandemic strategies.
\u201cOne of the lessons we\u2019ve learned coming out of the recent downturn, indeed coming out of all the previous downturns, is the primacy of a resilient, innovative, customer-centric and forward-thinking company culture, which fosters not just the aggressive seeking of opportunities but the creation of those opportunities where they seem nonexistent,\u201d Megaworld\u2019s Mr. Hernandez said.
\nPhinma\u2019s Mr. Sahagun said firms should decentralize their decisions.
\n\u201cWe have to develop internal capabilities. As a company, we have to be agile in adapting to change. The first thing we did was to delegate authorities in different areas so they could make decisions on their own. If you\u2019re just centralized in (one) office, you have no people on the ground, it will be difficult for you to continue doing business,\u201d he added.
\nThe shift to digitalization is also key in the post-pandemic recovery.
\n\u201cLike most companies, we believe that the only way forward is to leverage our strengths with more human innovation and technological adoption and advances, either by leaps or small increments,\u201d Mr. Hernandez said.
\n\u201cThe advent of artificial intelligence (AI) will definitely and definitively revolutionize and transform not just the way we do things, but ultimately determine exactly what things we are able to do and to what degree of sophistication. In the end however, AI or any other systems or technologies will only always be a tool. The key will always be the company\u2019s culture,\u201d he added.
\nCLIMATE RESILIENCE
\nThe impact of climate change should also be considered in infrastructure planning, according to Institute for Climate and Sustainable Cities Director for Urban Development Maria Golda P. Hilario.
\u201cThe Philippine infrastructure industry must proactively address the risks and projected impact of climate change in its entire supply and value chain. It is important to not only acknowledge the threats posed by extreme weather events \u2014 such as typhoons \u2014 but also to factor in the creeping impacts of slow onset events \u2014 such as sea level rise and increasing temperature,\u201d she said in an e-mail.
\nThe Philippines is among the most disaster-prone countries in the world, experiencing typhoons, flash floods, earthquakes and volcanic eruptions. The Philippines ranked first globally in terms of disaster risk, based on the World Risk Index 2022.
\nA study by the Asian Development Bank (ADB) showed that developing Asia will need to invest $26 trillion from 2016 to 2030, or $1.7 trillion annually in infrastructure to maintain its growth momentum, eradicate poverty, and adapt to climate change.
\n\u201cInfrastructure designs especially in urban areas must also be responsive to the risks and projected creeping impacts of slow onset events. Infrastructure development must already look at innovative and sustainable solutions such as green and energy efficient buildings and build around nature-based solutions, such as trees as temperature regulators to trap urban heat, and sinks to arrest flooding,\u201d Ms. Hilario added.
\nThe public, particularly the most at-risk and vulnerable to climate change, should also be included in the process of designing resilient infrastructure.
\n\u201cThe industry must also welcome the voice and participation of the public, especially the most vulnerable and most affected sector in the design, as well as be more responsive in ensuring that infrastructure projects contribute to the broader goal of connecting more people, rather than creating barriers,\u201d she said.
\n\u201cSustainability can only be fostered through partnerships not just between the industry, private sector, and the government, but with the buy-in of the Filipino public, who are the main users of infrastructure projects in the long-run,\u201d she added.
\n", "content_text": "By Luisa Maria Jacinta C. Jocson, Reporter\nTHE government will need to create a more enabling environment for investments to support the infrastructure sector\u2019s post-pandemic recovery, analysts said.\n\u201cOn the national front, hard-earned gains might still be lost and global opportunities missed. For instance, our failure to build the manufacturing sector, made worse by the government\u2019s inability to lower energy costs and cut the bureaucratic red tape, has made a lot of investors look elsewhere for opportunities,\u201d Megaworld Corp. First Vice-President for Marketing and Sales Noli D. Hernandez said in a Viber message.\nInfrastructure development is one of the Marcos administration\u2019s priority areas. The government is targeting to spend 5-6% of gross domestic product (GDP) on infrastructure annually.\n\nThis year, the government plans to spend 5.3% of GDP on infrastructure, equivalent to about P1.29 trillion.\nFrom 2010 to 2018, developing countries used only about 70% of infrastructure investment budgets, according to the World Bank.\nA recent note by Nomura Global Markets Research said Philippine infrastructure development is seen to accelerate in the medium term.\n\u201cWe remain optimistic that infrastructure development in these countries will accelerate in the next few years. Despite the recent improvement, there remains substantial scope for more progress, and governments are setting more ambitious targets to narrow this gap, building on earlier successes,\u201d Nomura said.\nColliers Philippines Research Director Joey Roi H. Bondoc said the construction sector has yet to return completely to pre-pandemic levels.\n\u201cConstruction activities have yet to revert to pre-pandemic levels but we are definitely seeing glimmers of hope. In our view, return to pre-pandemic construction levels will likely hinge on interest rate movements, prices of construction materials,\u201d he said in an e-mail.\nMr. Bondoc said that external headwinds will also continue to have an impact on the recovery of construction activities.\n\u201cColliers also believes that overall recovery in demand will also partly rely on sustained business and consumer confidence across the Philippines. The country\u2019s growth trajectory presents enormous opportunities for developers with office, residential, retail, and leisure footprint,\u201d he added.\nSUPPORT NEEDED\nSustained growth in government spending will be crucial for the rebound for the sector.\n\u201cThe most important underlying reason for the recovery of the infrastructure sector has been the sustained and broadening government spending on public infrastructure in the last few years,\u201d Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in an e-mail.\nInfrastructure spending rose by an annual 7.8% to P507.2 billion in the first half. Overall infrastructure disbursements in the first six months were equivalent to 5.3% of GDP.\n\u201cDespite the coronavirus pandemic and economic headwinds, the government has continued to spend on new roads, bridges and flood control projects in various parts of the country,\u201d he added.\nUnder the proposed 2024 National Expenditure Plan, the \u201cBuild, Better, More\u201d program has been allocated P1.418 trillion. The bulk will go to physical connectivity infrastructure such as seaports, airports, and mass transport.\nThe National Economic and Development Authority (NEDA) Board has approved 197 flagship infrastructure projects worth P8.71 trillion.\n\u201cThe government\u2019s massive infrastructure program should benefit the Philippine property market and developers should seize opportunities by strategically launching more office projects, residential enclaves, and hotels in major growth areas,\u201d Mr. Bondoc said.\nHowever, the government\u2019s massive infrastructure commitments are not enough to support the rest of the construction sector. \nThere is still a need to expedite permitting processes, cut red tape, and create a more enabling environment for investments.\n\u201cThe challenge of the government is not about allocating the budget, but I think it\u2019s implementation of projects. Some of the projects we are doing today were approved even during Marcos Sr.\u2019s time, and we\u2019re only doing it now,\u201d Phinma Corp. Executive Vice-President Eduardo A. Sahagun said in a Zoom call interview.\n\u201cIf it takes the same amount of time to do it, we will lag behind. I hope that\u2019s where the bottlenecks must be addressed, how to speed up implementation of projects,\u201d he added.\nMORE PPP PROJECTS\nThe government should pursue more public-private partnerships (PPPs) and joint ventures (JVs) to accelerate the implementation of projects.\n\u201cThe openness towards public-private partnerships has been an important reform in the infrastructure sector. It is bearing fruit today with the decision to implement a P170-billion solicited bidding for the rehabilitation of the Ninoy Aquino International Airport (NAIA),\u201d Mr. Ridon said.\nThe government recently invited local and foreign investors to bid for the PPP project to upgrade and operate the NAIA. This will be under a rehabilitate-operate-expand-transfer arrangement, as provided for under the Build-Operate-Transfer Law.\n\u201cLocal developers should explore firming up JVs with other homegrown players or even foreign property firms. In our view foreign players benefit from their partnership with local players given the latter\u2019s experience in tapping and catering to the preferences of the domestic market,\u201d Mr. Bondoc said.\n\u201cWhat\u2019s notable is that these JVs are likely to result in a more competitive Philippine property landscape, eventually benefiting Filipino investors and end-users,\u201d he added.\nThe government is hoping to attract more foreign investments after recent economic reforms allowed full foreign ownership in telecommunications, airlines, railways and renewable energy projects.\nPOST-PANDEMIC STRATEGIES\nMeanwhile, companies involved in infrastructure are looking to revamp their internal processes to integrate post-pandemic strategies.\n\u201cOne of the lessons we\u2019ve learned coming out of the recent downturn, indeed coming out of all the previous downturns, is the primacy of a resilient, innovative, customer-centric and forward-thinking company culture, which fosters not just the aggressive seeking of opportunities but the creation of those opportunities where they seem nonexistent,\u201d Megaworld\u2019s Mr. Hernandez said.\nPhinma\u2019s Mr. Sahagun said firms should decentralize their decisions.\n\u201cWe have to develop internal capabilities. As a company, we have to be agile in adapting to change. The first thing we did was to delegate authorities in different areas so they could make decisions on their own. If you\u2019re just centralized in (one) office, you have no people on the ground, it will be difficult for you to continue doing business,\u201d he added.\nThe shift to digitalization is also key in the post-pandemic recovery.\n\u201cLike most companies, we believe that the only way forward is to leverage our strengths with more human innovation and technological adoption and advances, either by leaps or small increments,\u201d Mr. Hernandez said.\n\u201cThe advent of artificial intelligence (AI) will definitely and definitively revolutionize and transform not just the way we do things, but ultimately determine exactly what things we are able to do and to what degree of sophistication. In the end however, AI or any other systems or technologies will only always be a tool. The key will always be the company\u2019s culture,\u201d he added.\nCLIMATE RESILIENCE\nThe impact of climate change should also be considered in infrastructure planning, according to Institute for Climate and Sustainable Cities Director for Urban Development Maria Golda P. Hilario.\n\u201cThe Philippine infrastructure industry must proactively address the risks and projected impact of climate change in its entire supply and value chain. It is important to not only acknowledge the threats posed by extreme weather events \u2014 such as typhoons \u2014 but also to factor in the creeping impacts of slow onset events \u2014 such as sea level rise and increasing temperature,\u201d she said in an e-mail.\nThe Philippines is among the most disaster-prone countries in the world, experiencing typhoons, flash floods, earthquakes and volcanic eruptions. The Philippines ranked first globally in terms of disaster risk, based on the World Risk Index 2022.\nA study by the Asian Development Bank (ADB) showed that developing Asia will need to invest $26 trillion from 2016 to 2030, or $1.7 trillion annually in infrastructure to maintain its growth momentum, eradicate poverty, and adapt to climate change.\n\u201cInfrastructure designs especially in urban areas must also be responsive to the risks and projected creeping impacts of slow onset events. Infrastructure development must already look at innovative and sustainable solutions such as green and energy efficient buildings and build around nature-based solutions, such as trees as temperature regulators to trap urban heat, and sinks to arrest flooding,\u201d Ms. Hilario added.\nThe public, particularly the most at-risk and vulnerable to climate change, should also be included in the process of designing resilient infrastructure.\n\u201cThe industry must also welcome the voice and participation of the public, especially the most vulnerable and most affected sector in the design, as well as be more responsive in ensuring that infrastructure projects contribute to the broader goal of connecting more people, rather than creating barriers,\u201d she said.\n\u201cSustainability can only be fostered through partnerships not just between the industry, private sector, and the government, but with the buy-in of the Filipino public, who are the main users of infrastructure projects in the long-run,\u201d she added.", "date_published": "2023-09-04T00:28:55+08:00", "date_modified": "2023-09-03T14:58:12+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/beautiful-view-construction-site-city-during-sunset.jpg", "tags": [ "bw36", "Luisa Maria Jacinta C. Jocson", "Special Reports" ], "summary": "THE government will need to create a more enabling environment for investments to support the infrastructure sector\u2019s post-pandemic recovery, analysts said." }, { "id": "https://www.bworldonline.com/?p=542922", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542922/transit-oriented-township-developments/", "title": "Transit-oriented township developments", "content_html": "By David Leechiu
\nWHEN I started in real estate about 28 years ago, the battle cry then was \u201cLocation, location, location.\u201d
\nMetro Manila was the hub of commercial activity, and the business districts that generated a significant commercial interest were the Makati and Ortigas central business districts (CBDs). At that time the primary locators were what we now consider as traditional tenants.
\nWorkers gravitated to Metro Manila where they had convenient access to higher-paying jobs. Generally, the focus in commercial real estate development was to acquire commercial lots in locations with road access, the nearer to a corner the better for the project. It was more of a passive approach, where it was considered advantageous for office or residential projects to be located near retail areas to add to marketability.
\nHowever, in the mid-1990s, more real estate developers started to adopt an active masterplanning approach for projects with larger land areas in greenfield locations. They conceptualized integrated townships that were intended to create communities whose stakeholders were attracted to the live, work, play, pray concept where all their needs are within a short walk away and all within the district. More importantly, these townships have carefully planned pedestrian and vehicular infrastructure strategically located near transport hubs or infrastructure developments.
\nThis wasn\u2019t a new idea, though; it just wasn\u2019t a prevalent approach. Makati CBD and Ortigas CBD were already established large-scale townships at the time. But even then, it was evident that transit-oriented township development was the future direction of real estate.
\nI was fortunate to see the birth of Bonifacio Global City (BGC), from when it was still being conceptualized to the execution of the masterplan. The designers of BGC envisioned carefully arranged development zoning for BGC, anticipating the types of land use complementing each other.
\nEven then, they already envisioned transport and people mover systems like a monorail and a bus system transporting workers, employees, residents, and visitors both within the district and into transport stations outside. Connectivity to roads and rails, with a multimodal station to transfer from the different transport types was already contemplated then.
\nAs part of a pedestrian-first approach to infrastructure, underground utilities, wide sidewalks and covered arcade walks or cantilevered building covers were included in the design guidelines of the future buildings. While not all plans envisioned for BGC materialized, I\u2019m happy that BGC has now claimed the spot as the premier business district of the country and a township in its own right.
\nI am a believer in township projects. If we do a comparative study of land and capital values of properties within townships versus those in the fringes or outside of these townships, the premium buyers and developers attach to townships becomes quickly apparent. The integrated development as well as the connectivity townships to other areas creates an ideal working ecosystem, where locators can live, socialize, create experiences, study, worship, shop, and work.
\nIn Metro Manila alone, there are approximately 45 townships scattered in the 17 cities that comprise the National Capital Region ranging in size from one hectare to 800 hectares. In the provinces, it is an even bigger trend with around 180 townships.
\nTo maximize property values, developers built vertically, with smaller residential units for sale and larger commercial spaces for lease. I remember when condominium units started shrinking in size. Some units were almost only big enough for a bed. These developments did provide retail floors where residents can dine, unwind, and entertain. Amenity areas did increase in size as shared living spaces.
\nBPO BOOM
\nRising land costs and limited availability of large plots of land also convinced developers to build township projects outside Metro Manila. These developments became possible because of the growth of business process outsourcing (BPO) companies.
The need for Grade B office spaces for these typically call center or voice company tenants, and the corresponding residential demand created made it possible for such townships and even mini cities to grow.
\nAs these townships started to be developed, this created an opportunity for the growing number of BPO companies to expand operations outside the National Capital Region.
\nProvincial locations offered cost savings for BPO companies from lower salary levels resulted in reduced operational costs. Some Manila-based employees found it attractive to return to their hometowns due to the lower cost of living. Provincial sites also enabled the BPOs to widen sources of talent or qualified employees.
\nWhen BPO firms came to the Philippines, their site selection was anchored on strategically located properties that had access to a large talent pool, sufficient support facilities for their operations and their employees. In the past, these office spaces were normally only found in Metro Manila, and only in the core CBDs.
\nWith the newer townships, support facilities for operations came in the form of BPO-ready developments, with redundant connectivity and standard fit-outs. Support for employees came in the form of retail establishments for food, drink, and recreation, as well as nearby residential developments for employees who want to minimize transportation costs, reduce travel delay risks and ensure security (as most BPOs operate 24/7).
\nAnd thus, township developments became highly attractive options for these locators since they checked all the boxes, and then some. Traditional locators also found the characteristics of townships convenient. After all, businesses would want to have operations where everything is within walking distance; it would motivate their employees to stay with them for the long haul.
\nIMPACT OF PANDEMIC
\nWhen the coronavirus disease 2019 (COVID-19) pandemic hit and the country underwent the world\u2019s longest lockdown period, people were limited to the claustrophobic confines of their homes for extended periods.
This meant taking school classes, doing office work, shopping \u2014 all online. This was extra challenging given that Filipinos commonly live with extended families under one roof. For those who lived in condominiums, units were usually space-efficient (read: small), so occupants felt restricted in such a small space with no open area. Residents felt the need for more space, more breathing room, more areas to recharge within the home.
\nWhen the lockdown was lifted, we saw the trend of potential home buyers moving out of the cities towards low-density developments within townships. The preferred choice was low-density residential subdivisions and homes outside of Metro Manila. Growth of townships offering these residential types accelerated. More pronounced were projects near transport hubs or major highways that let employees get to their offices with ease.
\nFUTURE OF TOWNSHIPS
\nWhat I foresee for townships in the future are the increased importance and prevalence of more transit-oriented developments. These townships will have the added advantage of high accessibility linking to an urban network of roads and rails to nodes of activity or other townships and major city centers like CBDs.
Transit-oriented townships sell the convenience, comfort, and lifestyle in a zone that is accessible to other cities or districts through major highways. These provide high mobility to future residents allowing them to traverse the connected network. These will also have the added benefit of decentralization, helping alleviate the heavy traffic and high daytime population the central business districts experience due to the daily commute of employees.
\nToday, a township project is a destination in and of itself where utilities are carefully laid out, locators can have access to jobs, homes, entertainment and shopping options, schools, places of worship, and guest accommodations, possibly closer to their hometown with lower cost of living.
\nAdd to that the connection to the urban network, transit-oriented townships are strategically positioned to spread out commercial activity to multiple nodes and decongest historically highly populated areas. For instance, in 2000, 9.8 million or 13% of the population was in Metro Manila.
\nIn Cavite-Laguna-Batangas (CALABA) \u2014 among the first areas that benefited from the spillover demand from Metro Manila \u2014 there were about five township developments 23 years ago, and their population was at 5.3 million.\u00a0 This year, there are approximately 35 township developments available in CALABA and the projected population is 11.75 million, 10.29% of the total population.
\nMeanwhile, the population in Metro Manila is projected at 14.2 million or 12.4% of total population in 2023. Transit-oriented township development seems to be effective in decentralizing development by providing opportunities outside Metro Manila.
\nTransit-oriented township development is a forward-looking strategy. It provides synergy through integrated living. It also spreads out economic growth by creating connected nodes of commercial activity.
\nThe Philippines has experienced development at a rapid pace over the last 25 years. Today, the country is likely one of the fastest-growing economies in Asia. And while the remittances of the overseas Filipino workers (OFWs) have been consistently growing and is now at $32 billion, the income from the BPO sector has already surpassed the OFW remittances and is expected to hit $35.9 billion this year.
\nThe value of real estate is not just in the physical development, but also in the relationships, experience, lifestyle, and connectivity that locators get to access in the community. We are lucky to have witnessed the rapid changes that brought development focus from just brick-and-mortar occupancy to include the overall experience and connections over such a short time.
\nWho knows, the next 10 years may bring even more changes that further expand the dimensions of real estate development. It may involve net zero impact or positive impact on a large-scale development strategy that looks to give a better world, not just in terms of technology but in working with nature so our resources are renewed and preserved for future generations.
\n\n
David Leechiu is the president and chief executive officer of Leechiu Property Consultants, Inc. (LPC). LPC is a premier real estate advisory firm that commits to deliver strategic real estate solutions to its clients and partners through its expertise in tenant and landlord representation, investment sales, general brokerage, research and consultancy, and property valuation.
\n", "content_text": "By David Leechiu\nWHEN I started in real estate about 28 years ago, the battle cry then was \u201cLocation, location, location.\u201d\nMetro Manila was the hub of commercial activity, and the business districts that generated a significant commercial interest were the Makati and Ortigas central business districts (CBDs). At that time the primary locators were what we now consider as traditional tenants.\nWorkers gravitated to Metro Manila where they had convenient access to higher-paying jobs. Generally, the focus in commercial real estate development was to acquire commercial lots in locations with road access, the nearer to a corner the better for the project. It was more of a passive approach, where it was considered advantageous for office or residential projects to be located near retail areas to add to marketability.\nHowever, in the mid-1990s, more real estate developers started to adopt an active masterplanning approach for projects with larger land areas in greenfield locations. They conceptualized integrated townships that were intended to create communities whose stakeholders were attracted to the live, work, play, pray concept where all their needs are within a short walk away and all within the district. More importantly, these townships have carefully planned pedestrian and vehicular infrastructure strategically located near transport hubs or infrastructure developments.\nThis wasn\u2019t a new idea, though; it just wasn\u2019t a prevalent approach. Makati CBD and Ortigas CBD were already established large-scale townships at the time. But even then, it was evident that transit-oriented township development was the future direction of real estate.\nI was fortunate to see the birth of Bonifacio Global City (BGC), from when it was still being conceptualized to the execution of the masterplan. The designers of BGC envisioned carefully arranged development zoning for BGC, anticipating the types of land use complementing each other.\nEven then, they already envisioned transport and people mover systems like a monorail and a bus system transporting workers, employees, residents, and visitors both within the district and into transport stations outside. Connectivity to roads and rails, with a multimodal station to transfer from the different transport types was already contemplated then. \nAs part of a pedestrian-first approach to infrastructure, underground utilities, wide sidewalks and covered arcade walks or cantilevered building covers were included in the design guidelines of the future buildings. While not all plans envisioned for BGC materialized, I\u2019m happy that BGC has now claimed the spot as the premier business district of the country and a township in its own right.\nI am a believer in township projects. If we do a comparative study of land and capital values of properties within townships versus those in the fringes or outside of these townships, the premium buyers and developers attach to townships becomes quickly apparent. The integrated development as well as the connectivity townships to other areas creates an ideal working ecosystem, where locators can live, socialize, create experiences, study, worship, shop, and work.\nIn Metro Manila alone, there are approximately 45 townships scattered in the 17 cities that comprise the National Capital Region ranging in size from one hectare to 800 hectares. In the provinces, it is an even bigger trend with around 180 townships.\nTo maximize property values, developers built vertically, with smaller residential units for sale and larger commercial spaces for lease. I remember when condominium units started shrinking in size. Some units were almost only big enough for a bed. These developments did provide retail floors where residents can dine, unwind, and entertain. Amenity areas did increase in size as shared living spaces.\nBPO BOOM\nRising land costs and limited availability of large plots of land also convinced developers to build township projects outside Metro Manila. These developments became possible because of the growth of business process outsourcing (BPO) companies.\nThe need for Grade B office spaces for these typically call center or voice company tenants, and the corresponding residential demand created made it possible for such townships and even mini cities to grow.\nAs these townships started to be developed, this created an opportunity for the growing number of BPO companies to expand operations outside the National Capital Region.\nProvincial locations offered cost savings for BPO companies from lower salary levels resulted in reduced operational costs. Some Manila-based employees found it attractive to return to their hometowns due to the lower cost of living. Provincial sites also enabled the BPOs to widen sources of talent or qualified employees. \nWhen BPO firms came to the Philippines, their site selection was anchored on strategically located properties that had access to a large talent pool, sufficient support facilities for their operations and their employees. In the past, these office spaces were normally only found in Metro Manila, and only in the core CBDs. \nWith the newer townships, support facilities for operations came in the form of BPO-ready developments, with redundant connectivity and standard fit-outs. Support for employees came in the form of retail establishments for food, drink, and recreation, as well as nearby residential developments for employees who want to minimize transportation costs, reduce travel delay risks and ensure security (as most BPOs operate 24/7).\nAnd thus, township developments became highly attractive options for these locators since they checked all the boxes, and then some. Traditional locators also found the characteristics of townships convenient. After all, businesses would want to have operations where everything is within walking distance; it would motivate their employees to stay with them for the long haul.\nIMPACT OF PANDEMIC\nWhen the coronavirus disease 2019 (COVID-19) pandemic hit and the country underwent the world\u2019s longest lockdown period, people were limited to the claustrophobic confines of their homes for extended periods.\nThis meant taking school classes, doing office work, shopping \u2014 all online. This was extra challenging given that Filipinos commonly live with extended families under one roof. For those who lived in condominiums, units were usually space-efficient (read: small), so occupants felt restricted in such a small space with no open area. Residents felt the need for more space, more breathing room, more areas to recharge within the home.\nWhen the lockdown was lifted, we saw the trend of potential home buyers moving out of the cities towards low-density developments within townships. The preferred choice was low-density residential subdivisions and homes outside of Metro Manila. Growth of townships offering these residential types accelerated. More pronounced were projects near transport hubs or major highways that let employees get to their offices with ease. \nFUTURE OF TOWNSHIPS\nWhat I foresee for townships in the future are the increased importance and prevalence of more transit-oriented developments. These townships will have the added advantage of high accessibility linking to an urban network of roads and rails to nodes of activity or other townships and major city centers like CBDs.\nTransit-oriented townships sell the convenience, comfort, and lifestyle in a zone that is accessible to other cities or districts through major highways. These provide high mobility to future residents allowing them to traverse the connected network. These will also have the added benefit of decentralization, helping alleviate the heavy traffic and high daytime population the central business districts experience due to the daily commute of employees.\nToday, a township project is a destination in and of itself where utilities are carefully laid out, locators can have access to jobs, homes, entertainment and shopping options, schools, places of worship, and guest accommodations, possibly closer to their hometown with lower cost of living. \nAdd to that the connection to the urban network, transit-oriented townships are strategically positioned to spread out commercial activity to multiple nodes and decongest historically highly populated areas. For instance, in 2000, 9.8 million or 13% of the population was in Metro Manila.\nIn Cavite-Laguna-Batangas (CALABA) \u2014 among the first areas that benefited from the spillover demand from Metro Manila \u2014 there were about five township developments 23 years ago, and their population was at 5.3 million.\u00a0 This year, there are approximately 35 township developments available in CALABA and the projected population is 11.75 million, 10.29% of the total population. \nMeanwhile, the population in Metro Manila is projected at 14.2 million or 12.4% of total population in 2023. Transit-oriented township development seems to be effective in decentralizing development by providing opportunities outside Metro Manila.\nTransit-oriented township development is a forward-looking strategy. It provides synergy through integrated living. It also spreads out economic growth by creating connected nodes of commercial activity.\nThe Philippines has experienced development at a rapid pace over the last 25 years. Today, the country is likely one of the fastest-growing economies in Asia. And while the remittances of the overseas Filipino workers (OFWs) have been consistently growing and is now at $32 billion, the income from the BPO sector has already surpassed the OFW remittances and is expected to hit $35.9 billion this year.\nThe value of real estate is not just in the physical development, but also in the relationships, experience, lifestyle, and connectivity that locators get to access in the community. We are lucky to have witnessed the rapid changes that brought development focus from just brick-and-mortar occupancy to include the overall experience and connections over such a short time.\nWho knows, the next 10 years may bring even more changes that further expand the dimensions of real estate development. It may involve net zero impact or positive impact on a large-scale development strategy that looks to give a better world, not just in terms of technology but in working with nature so our resources are renewed and preserved for future generations.\n \n David Leechiu is the president and chief executive officer of Leechiu Property Consultants, Inc. (LPC). LPC is a premier real estate advisory firm that commits to deliver strategic real estate solutions to its clients and partners through its expertise in tenant and landlord representation, investment sales, general brokerage, research and consultancy, and property valuation.", "date_published": "2023-09-04T00:27:54+08:00", "date_modified": "2023-09-03T14:58:07+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/BGC-buildings-skyline.jpg", "tags": [ "bw36", "David Leechiu", "Special Reports" ], "summary": "WHEN I started in real estate about 28 years ago, the battle cry then was \u201cLocation, location, location.\u201d" }, { "id": "https://www.bworldonline.com/?p=542921", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542921/the-key-to-office-sustainability/", "title": "The key to office sustainability", "content_html": "\r\n \r\n\r\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/230130_GH-PHASE_1_OFFICE-option1-new.jpg\")
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\r\n \r\n \r\n By Maricris Sarino-Joson
\nTHE pandemic has been disruptive to the Philippine economy. Many businesses closed, the economy suffered, and a lot of Filipinos lost their jobs. These factors adversely affected the office market starting in 2020. The vacancies increased across Metro Manila and as a result, rents corrected.
\nThe years 2020 and 2021 were indeed unsettling for the office market. The good news is that we are starting to see some positive trends, with the number of vacated spaces gradually declining and rents in major business hubs starting to recover as we have been recording sustained transactions across Metro Manila.
\nBut what the coronavirus disease 2019 (COVID-19) has ultimately taught us is to be more mindful of our health, whether in public spaces, at home or at work. The health crisis highlighted the need to be in a safe and healthy space, that we shouldn\u2019t let our guard down when it comes to health, and that being in a clean and constantly sanitized environment is a must in a post-COVID world.
\nFor office spaces, there is definitely no compromise. Companies must ensure that employees continue to enjoy the perks of a collaborative workspace, while maintaining their overall health.
\nThis only strengthens the argument for sustainable and healthy office spaces, especially that anti-COVID protocols have been lifted and we are all trying to thrive in a new, hopefully better, normal.
\nColliers has seen major occupants, including multinational corporations taking up space in these high-quality, sustainable and healthy office towers. Major information technology and business process management companies are also looking for these office spaces as they encourage employees to gradually return to the traditional office setup; and to heed global management\u2019s directive of occupying sustainable office spaces.
\nWith close contact amongst employees no longer an issue given the availability of healthy workstations and meeting rooms, Colliers believes that taking up spaces in these buildings contributes to fostering a more collaborative work environment.
\nENTICING COMPANIES TO LOCATE IN SUSTAINABLE BUILDINGS
\nColliers sees an estimated 57% of new office supply in Metro Manila from 2022 to 2024 likely secured Leadership in Energy Environmental Design (LEED), WELL or Building for Ecologically Responsive Design Excellence (BERDE) certifications.
In our view, benefits such as 35% lower carbon emissions, 40% lower water use, 50% lower energy use should encourage more companies to locate in a green or sustainable building. Practicing green architecture can translate into energy savings as well as lower construction costs. Colliers believes that these savings are likely to entice more firms to locate in high-quality and sustainable office towers across Metro Manila.
\nADOPTING THE SUSTAINABLE ROUTE TO OFFICE DEVELOPMENT
\nIn 2009, Quezon City implemented a Green Building Ordinance which required the design, construction and retrofitting of buildings, other structures and movable properties to meet minimum standards of green infrastructure that would be eligible for incentives.
Colliers is optimistic that other local government units (LGUs) will follow suit, as these would provide landlords with enough incentives to develop more green buildings.
\nIn our view, there should be a strong public-private partnership in promoting a more aggressive development and utilization of sustainable office spaces across the Philippines.
\nSUSTAINING DEMAND
\nOccupiers are now more discerning with design considerations. Sustainable features such as filtered air circulation, lowered density ratios, and high glass ratios for natural lighting are among occupiers\u2019 key considerations when choosing a new location.
Other long-term benefits of having sustainable workspaces include a 15% reduction in operational costs due to energy savings (which will likely outweigh the 15% increase in capital expenditure).
\nDIFFERENTIATING PROJECTS IN A COMPETITIVE OFFICE MARKET
\nColliers believes that product differentiation plays a crucial role in ensuring that buildings are appropriate to the needs of the tenants as more options are available in the market and as more landlords pursue sustainable developments.
Developers should be aggressive in highlighting their building certifications and should actively chase occupants that are on the lookout for these sustainable office towers. Aside from offering sustainable office spaces, landlords may consider bundling other concession such as fit-out allowance to entice new and long-term tenants.
\nNEW SUSTAINABLE OFFICE OPTIONS ACROSS METRO MANILA
\nAmong the sustainable buildings completed across Metro Manila from 2022 to the first half of 2023 include Studio 7, Makati Commerce Tower, and NEX 54.
From the second half of 2023 to 2026, we expect the completion of 1.1 million square meters (11.8 million square feet) of new and sustainable office space, providing enormous options to potential tenants. The additional supply will come from M3 Corporate Center, Hudspace (GH Tower), Pioneer House BGC, Camaro Square, and Columna.
\nOutside traditional office buildings, developers should ramp up construction of more sustainable office towers to capture demand from large occupiers that put a premium on sustainability.
\nAt present, most of these developments are concentrated in Metro Manila but developers outside the capital region have also started to take the sustainable route to office development.
\nBEING IN A SUSTAINABLE OFFICE SPACE IS A \u2018MUST\u2019
\nColliers Philippines believes that these healthy, sustainable office towers play an important role in reigniting interest in the Metro Manila office market post-pandemic. Tenants now see the need to be in these office spaces while developers are actively capturing demand in the market.
We definitely see the urgency to be in these office towers. Being in a sustainable office space used to be a \u201cnice-to-have,\u201d now it is a \u201cmust-have.\u201d
\nFor now, we can conclude that when it comes to office leasing and development, sustainability is everyone\u2019s responsibility.
\n\n
Maricris Sarino-Joson is the director for office services-landlord representation at Colliers Philippines.
\n", "content_text": "1 of 8\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n\r\n \r\n \nBy Maricris Sarino-Joson\nTHE pandemic has been disruptive to the Philippine economy. Many businesses closed, the economy suffered, and a lot of Filipinos lost their jobs. These factors adversely affected the office market starting in 2020. The vacancies increased across Metro Manila and as a result, rents corrected.\nThe years 2020 and 2021 were indeed unsettling for the office market. The good news is that we are starting to see some positive trends, with the number of vacated spaces gradually declining and rents in major business hubs starting to recover as we have been recording sustained transactions across Metro Manila.\nBut what the coronavirus disease 2019 (COVID-19) has ultimately taught us is to be more mindful of our health, whether in public spaces, at home or at work. The health crisis highlighted the need to be in a safe and healthy space, that we shouldn\u2019t let our guard down when it comes to health, and that being in a clean and constantly sanitized environment is a must in a post-COVID world.\nFor office spaces, there is definitely no compromise. Companies must ensure that employees continue to enjoy the perks of a collaborative workspace, while maintaining their overall health.\nThis only strengthens the argument for sustainable and healthy office spaces, especially that anti-COVID protocols have been lifted and we are all trying to thrive in a new, hopefully better, normal.\nColliers has seen major occupants, including multinational corporations taking up space in these high-quality, sustainable and healthy office towers. Major information technology and business process management companies are also looking for these office spaces as they encourage employees to gradually return to the traditional office setup; and to heed global management\u2019s directive of occupying sustainable office spaces.\nWith close contact amongst employees no longer an issue given the availability of healthy workstations and meeting rooms, Colliers believes that taking up spaces in these buildings contributes to fostering a more collaborative work environment.\nENTICING COMPANIES TO LOCATE IN SUSTAINABLE BUILDINGS\nColliers sees an estimated 57% of new office supply in Metro Manila from 2022 to 2024 likely secured Leadership in Energy Environmental Design (LEED), WELL or Building for Ecologically Responsive Design Excellence (BERDE) certifications.\nIn our view, benefits such as 35% lower carbon emissions, 40% lower water use, 50% lower energy use should encourage more companies to locate in a green or sustainable building. Practicing green architecture can translate into energy savings as well as lower construction costs. Colliers believes that these savings are likely to entice more firms to locate in high-quality and sustainable office towers across Metro Manila. \nADOPTING THE SUSTAINABLE ROUTE TO OFFICE DEVELOPMENT\nIn 2009, Quezon City implemented a Green Building Ordinance which required the design, construction and retrofitting of buildings, other structures and movable properties to meet minimum standards of green infrastructure that would be eligible for incentives. \nColliers is optimistic that other local government units (LGUs) will follow suit, as these would provide landlords with enough incentives to develop more green buildings.\nIn our view, there should be a strong public-private partnership in promoting a more aggressive development and utilization of sustainable office spaces across the Philippines.\nSUSTAINING DEMAND\nOccupiers are now more discerning with design considerations. Sustainable features such as filtered air circulation, lowered density ratios, and high glass ratios for natural lighting are among occupiers\u2019 key considerations when choosing a new location.\nOther long-term benefits of having sustainable workspaces include a 15% reduction in operational costs due to energy savings (which will likely outweigh the 15% increase in capital expenditure).\nDIFFERENTIATING PROJECTS IN A COMPETITIVE OFFICE MARKET\nColliers believes that product differentiation plays a crucial role in ensuring that buildings are appropriate to the needs of the tenants as more options are available in the market and as more landlords pursue sustainable developments.\nDevelopers should be aggressive in highlighting their building certifications and should actively chase occupants that are on the lookout for these sustainable office towers. Aside from offering sustainable office spaces, landlords may consider bundling other concession such as fit-out allowance to entice new and long-term tenants.\nNEW SUSTAINABLE OFFICE OPTIONS ACROSS METRO MANILA\nAmong the sustainable buildings completed across Metro Manila from 2022 to the first half of 2023 include Studio 7, Makati Commerce Tower, and NEX 54. \nFrom the second half of 2023 to 2026, we expect the completion of 1.1 million square meters (11.8 million square feet) of new and sustainable office space, providing enormous options to potential tenants. The additional supply will come from M3 Corporate Center, Hudspace (GH Tower), Pioneer House BGC, Camaro Square, and Columna.\nOutside traditional office buildings, developers should ramp up construction of more sustainable office towers to capture demand from large occupiers that put a premium on sustainability.\nAt present, most of these developments are concentrated in Metro Manila but developers outside the capital region have also started to take the sustainable route to office development.\nBEING IN A SUSTAINABLE OFFICE SPACE IS A \u2018MUST\u2019\nColliers Philippines believes that these healthy, sustainable office towers play an important role in reigniting interest in the Metro Manila office market post-pandemic. Tenants now see the need to be in these office spaces while developers are actively capturing demand in the market.\nWe definitely see the urgency to be in these office towers. Being in a sustainable office space used to be a \u201cnice-to-have,\u201d now it is a \u201cmust-have.\u201d\nFor now, we can conclude that when it comes to office leasing and development, sustainability is everyone\u2019s responsibility.\n \nMaricris Sarino-Joson is the director for office services-landlord representation at Colliers Philippines.", "date_published": "2023-09-04T00:26:54+08:00", "date_modified": "2023-09-04T10:07:21+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/230130_GH-PHASE_1_OFFICE-option1-new.jpg", "tags": [ "bw36", "Maricris Sarino-Joson", "Special Reports" ], "summary": "THE pandemic has been disruptive to the Philippine economy. Many businesses closed, the economy suffered, and a lot of Filipinos lost their jobs. These factors adversely affected the office market starting in 2020. The vacancies increased across Metro Manila and as a result, rents corrected." }, { "id": "https://www.bworldonline.com/?p=542943", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542943/digitalization-to-boost-philippine-banking-growth/", "title": "Digitalization to boost Philippine banking growth", "content_html": "THE continued adoption of digitalization and open finance in the Philippine banking industry is expected to transform the delivery of financial services, enhance lenders\u2019 revenue-generation capabilities and boost economic growth.
\nDigitalization in the sector was accelerated when banks were forced to find new ways of delivering financial services to the public amid the mobility restrictions imposed at the height of the coronavirus pandemic, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said.
\n\u201cThe increased digital transformation of BSP Supervised Financial Institutions (BSFIs) and the financial consumers\u2019 growing preference for digital payments and financial services brought about tremendous gains in terms of BSP\u2019s advocacy on financial inclusion and digital payments transformation roadmap,\u201d she said in a Viber message.\u00a0 \u00a0
\nOne of the central bank\u2019s priorities is to ensure the delivery of payment solutions aligned with consumers\u2019 needs, she said, and digitalization has enabled increased efficiency, stability and confidence in online payments.\u00a0 \u00a0
\n\u201cAs technological innovations become mainstream in financial services, financial consumers can avail of accessible, affordable and convenient digital financial services,\u201d Ms. Fonacier said. \u201cTo further cement this positive development, the BSP implemented regulatory and supervisory frameworks covering digital banking, open finance and regulatory sandbox, among others.\u201d
\nThe BSP wants 50% of retail payments done digitally and to onboard 70% of adult Filipinos into the formal financial system by the end of this year.\u00a0 \u00a0
\nLatest data from the central bank showed the share of digital payments in the total volume of retail transactions in the country rose to 42.1% in 2022 from 30.3% in 2021.\u00a0
\nMerchant payments, peer-to-peer remittances and business transactions of salaries and wages were the key contributors to the increase in digital payments.
\nMeanwhile, about 22 million Filipinos gained access to formal financial accounts between 2019 and 2021, bringing the country\u2019s banked population to about 56% of adults in 2021, up from just 29% in 2019.\u00a0 \u00a0
\nThe increase was driven by faster growth in digital payments, the central bank earlier said, as 36% of all Filipinos had e-money accounts in 2021, up from the 8% share in 2019.
\nHowever, the Philippine central bank is also aware of the risks associated with digitalization, Ms. Fonacier said, including cyberattacks.
\n\u201cThus, the BSP employed various regulatory and supervisory responses to manage such risks,\u201d she said, adding that they issued BSP Circular No. 1140 to mandate institutions to adopt fraud management systems to address increased cybercrime incidents.
\nThe circular issued in March 2022 amended risk management regulations to help strengthen cybersecurity and minimize losses from online fraud and illicit activities.
\nThe BSP has also issued several memoranda on application programming interface (API) security, security of retail electronic payments and financial services, and e-mail security to address emerging threats that affect BSFIs, Ms. Fonacier said.\u00a0 \u00a0
\nAmid the rapid digitalization of the sector, banks and financial institutions are tweaking their business and operational models to keep up with \u201cnew normal,\u201d she said.
\n\u201cBSFIs are increasingly migrating to the cloud to address capacity demands and scalability. We\u2019ve also noted growing interest in the areas of artificial intelligence (AI), including generative AI such as ChatGPT, digital marketplace and open finance, among others,\u201d she said.\u00a0 \u00a0
\nThe BSP launched the Open Finance PH Pilot in partnership with the World Bank and the International Finance Corp. The initiative aims to build financial profiles and credit histories for unbanked Filipinos.
\nThe pilot is a voluntary pledge of financial institutions to co-develop an interconnected ecosystem that would allow consumers to take more control over their financial data and to use various financial products and services from different providers.
\n\u201cMoving forward, we still see a lot of growth opportunities to deepen digital innovation and transformation in financial services delivery, to capture or retain customer base and maintain competitiveness while enhancing revenue-generation capabilities,\u201d Ms. Fonacier said.
\n\u201cNonetheless, the BSP and the industry players must continue to support the digital expansion by making sure that technologies and systems remain safe, robust, accessible and resilient against cyber and IT related risks,\u201d she added.\u00a0 \u00a0
\nMANAGING RISKS
\nUsing Threat Intelligence technology will help financial institutions strengthen cybersecurity, Siang Tiong Yeo, general manager for Southeast Asia at Kaspersky, said in an e-mail.
He added this technology can help allow internal cybersecurity departments to focus on objectives with higher priorities.\u00a0 \u00a0
\n\u201cAlso, having a Managed Detection and Response solution that allows a cybersecurity team to employ the help of external experts to detect and stop complex attacks on company infrastructure at an early stage would be a great defensive measure,\u201d he said.
\nMr. Yeo added that financial data sharing and open banking initiatives are not new concepts, with Singapore being among the early adopters in Southeast Asia.\u00a0 \u00a0
\n\u201cIn a study in 2022, 85% of professionals in Singapore agree that open finance is giving consumers access to a greater range of financial services,\u201d he said.
\n\u201cAdditionally, 76% agreed that open finance has the potential to bring about fairer and more equal financial services, while 90% agreed that open finance is already having a positive impact on the industry and making it more collaborative.\u201d
\nHowever, data and third-party security should be fully covered in any data-sharing business model, especially in the financial industry.\u00a0 \u00a0
\n\u201cAs there are potential opportunities for growth in the industry for both players and consumers with the adoption of open banking, our experts at Kaspersky are predicting that this may lead to more opportunities for cyberattacks,\u201d Mr. Yeo said.
\nHe said open banking is vulnerable to risks such as financial fraud and identity theft.
\n\u201cWe also predict that the continued adoption of open banking systems will result in API abuses shifting from an infrequent to the most frequent attack vector, resulting in data breaches for enterprise web applications,\u201d he said.\u00a0 \u00a0
\nThus, Kaspersky said banks should adopt a unified cybersecurity approach with process-based security implementation, employee and user/consumer awareness and education, and technologies created specifically for the industry.
\nDIGITALIZATION TO BOOST GDP
\nThe further adoption of digital platforms can boost the Philippines\u2019 gross domestic product (GDP) if done in a manner that provides equitable access to the internet access and digital services, Swarup Gupta, industry manager at the Economist Intelligence Unit, said in an e-mail.
\u201cDigital transformation of enterprises and governance processes has the potential to substantially boost GDP, and this is why the Marcos administration has rolled out several initiatives in this area,\u201d Mr. Gupta said.
\n\u201cA major positive is the fact that, according to recent statistics, the Philippines has some of the best internet speeds in the world, which is a crucial factor when it comes to aiding the process of digital transformation,\u201d he said.\u00a0 \u00a0
\nHowever, digitalization also makes data vulnerable to theft and other illicit activities if not monitored effectively.\u00a0 \u00a0
\n\u201cLate last year, the BSP launched a regulatory and supervisory solution in order to lighten the burden of regulatory compliance while automating the central bank\u2019s supervisory role on cybersecurity,\u201d Mr. Gupta said.\u00a0 \u00a0
\n\u201cThis solution catered to 150 supervised financial enterprises as of end 2022 and will soon be expanded to 600,\u201d he said.\u00a0 \u00a0
\nDespite having a young population and a relatively high internet penetration rate, the Philippines faces multiple challenges to digitalization, Mr. Gupta said.\u00a0 \u00a0
\n\u201cPhilippine banks have to launch and persevere with services which can cater to a population which remains relatively underbanked apart from being less fortunate economically,\u201d he said.\u00a0 \u00a0
\nBased on the central bank data, 34.3 million adults remained unbanked in the country. Farmers and agriculture workers were the least banked among all types of workers, with 73% having no accounts, the highest financial exclusion level seen in 2021.
\nOther segments that had a high percentage of unbanked adults were workers for private households (48%) and self-employed individuals (45%). Non-working adults without accounts stood at 52%, equivalent to 15.6 million adults.\u00a0
\nStill, the outlook for digitalization and open banking in the Philippines remains bright, Mr. Gupta said.\u00a0 \u00a0
\n\u201cThe opportunities are numerous in terms of a spurt in financial innovation, leading to higher economic growth, and the evolution of personalized products and services to cater to specific need sets,\u201d he said.
\n\u201cRisks include an increasing prevalence of cybercrime and the consequent need for regulators to strike a balance between helping to foster innovation and protecting customers,\u201d he added. \u2014 Keisha B. Ta-asan
\n", "content_text": "THE continued adoption of digitalization and open finance in the Philippine banking industry is expected to transform the delivery of financial services, enhance lenders\u2019 revenue-generation capabilities and boost economic growth.\nDigitalization in the sector was accelerated when banks were forced to find new ways of delivering financial services to the public amid the mobility restrictions imposed at the height of the coronavirus pandemic, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said. \n\u201cThe increased digital transformation of BSP Supervised Financial Institutions (BSFIs) and the financial consumers\u2019 growing preference for digital payments and financial services brought about tremendous gains in terms of BSP\u2019s advocacy on financial inclusion and digital payments transformation roadmap,\u201d she said in a Viber message.\u00a0 \u00a0\nOne of the central bank\u2019s priorities is to ensure the delivery of payment solutions aligned with consumers\u2019 needs, she said, and digitalization has enabled increased efficiency, stability and confidence in online payments.\u00a0 \u00a0\n\u201cAs technological innovations become mainstream in financial services, financial consumers can avail of accessible, affordable and convenient digital financial services,\u201d Ms. Fonacier said. \u201cTo further cement this positive development, the BSP implemented regulatory and supervisory frameworks covering digital banking, open finance and regulatory sandbox, among others.\u201d\nThe BSP wants 50% of retail payments done digitally and to onboard 70% of adult Filipinos into the formal financial system by the end of this year.\u00a0 \u00a0\nLatest data from the central bank showed the share of digital payments in the total volume of retail transactions in the country rose to 42.1% in 2022 from 30.3% in 2021.\u00a0\nMerchant payments, peer-to-peer remittances and business transactions of salaries and wages were the key contributors to the increase in digital payments.\nMeanwhile, about 22 million Filipinos gained access to formal financial accounts between 2019 and 2021, bringing the country\u2019s banked population to about 56% of adults in 2021, up from just 29% in 2019.\u00a0 \u00a0\nThe increase was driven by faster growth in digital payments, the central bank earlier said, as 36% of all Filipinos had e-money accounts in 2021, up from the 8% share in 2019.\nHowever, the Philippine central bank is also aware of the risks associated with digitalization, Ms. Fonacier said, including cyberattacks.\n\u201cThus, the BSP employed various regulatory and supervisory responses to manage such risks,\u201d she said, adding that they issued BSP Circular No. 1140 to mandate institutions to adopt fraud management systems to address increased cybercrime incidents.\nThe circular issued in March 2022 amended risk management regulations to help strengthen cybersecurity and minimize losses from online fraud and illicit activities.\nThe BSP has also issued several memoranda on application programming interface (API) security, security of retail electronic payments and financial services, and e-mail security to address emerging threats that affect BSFIs, Ms. Fonacier said.\u00a0 \u00a0\nAmid the rapid digitalization of the sector, banks and financial institutions are tweaking their business and operational models to keep up with \u201cnew normal,\u201d she said.\n\u201cBSFIs are increasingly migrating to the cloud to address capacity demands and scalability. We\u2019ve also noted growing interest in the areas of artificial intelligence (AI), including generative AI such as ChatGPT, digital marketplace and open finance, among others,\u201d she said.\u00a0 \u00a0\nThe BSP launched the Open Finance PH Pilot in partnership with the World Bank and the International Finance Corp. The initiative aims to build financial profiles and credit histories for unbanked Filipinos.\nThe pilot is a voluntary pledge of financial institutions to co-develop an interconnected ecosystem that would allow consumers to take more control over their financial data and to use various financial products and services from different providers.\n\u201cMoving forward, we still see a lot of growth opportunities to deepen digital innovation and transformation in financial services delivery, to capture or retain customer base and maintain competitiveness while enhancing revenue-generation capabilities,\u201d Ms. Fonacier said.\n\u201cNonetheless, the BSP and the industry players must continue to support the digital expansion by making sure that technologies and systems remain safe, robust, accessible and resilient against cyber and IT related risks,\u201d she added.\u00a0 \u00a0\nMANAGING RISKS\nUsing Threat Intelligence technology will help financial institutions strengthen cybersecurity, Siang Tiong Yeo, general manager for Southeast Asia at Kaspersky, said in an e-mail.\nHe added this technology can help allow internal cybersecurity departments to focus on objectives with higher priorities.\u00a0 \u00a0\n\u201cAlso, having a Managed Detection and Response solution that allows a cybersecurity team to employ the help of external experts to detect and stop complex attacks on company infrastructure at an early stage would be a great defensive measure,\u201d he said.\nMr. Yeo added that financial data sharing and open banking initiatives are not new concepts, with Singapore being among the early adopters in Southeast Asia.\u00a0 \u00a0\n\u201cIn a study in 2022, 85% of professionals in Singapore agree that open finance is giving consumers access to a greater range of financial services,\u201d he said.\n\u201cAdditionally, 76% agreed that open finance has the potential to bring about fairer and more equal financial services, while 90% agreed that open finance is already having a positive impact on the industry and making it more collaborative.\u201d\nHowever, data and third-party security should be fully covered in any data-sharing business model, especially in the financial industry.\u00a0 \u00a0\n\u201cAs there are potential opportunities for growth in the industry for both players and consumers with the adoption of open banking, our experts at Kaspersky are predicting that this may lead to more opportunities for cyberattacks,\u201d Mr. Yeo said.\nHe said open banking is vulnerable to risks such as financial fraud and identity theft.\n\u201cWe also predict that the continued adoption of open banking systems will result in API abuses shifting from an infrequent to the most frequent attack vector, resulting in data breaches for enterprise web applications,\u201d he said.\u00a0 \u00a0\nThus, Kaspersky said banks should adopt a unified cybersecurity approach with process-based security implementation, employee and user/consumer awareness and education, and technologies created specifically for the industry. \nDIGITALIZATION TO BOOST GDP\nThe further adoption of digital platforms can boost the Philippines\u2019 gross domestic product (GDP) if done in a manner that provides equitable access to the internet access and digital services, Swarup Gupta, industry manager at the Economist Intelligence Unit, said in an e-mail.\n\u201cDigital transformation of enterprises and governance processes has the potential to substantially boost GDP, and this is why the Marcos administration has rolled out several initiatives in this area,\u201d Mr. Gupta said.\n\u201cA major positive is the fact that, according to recent statistics, the Philippines has some of the best internet speeds in the world, which is a crucial factor when it comes to aiding the process of digital transformation,\u201d he said.\u00a0 \u00a0\nHowever, digitalization also makes data vulnerable to theft and other illicit activities if not monitored effectively.\u00a0 \u00a0\n\u201cLate last year, the BSP launched a regulatory and supervisory solution in order to lighten the burden of regulatory compliance while automating the central bank\u2019s supervisory role on cybersecurity,\u201d Mr. Gupta said.\u00a0 \u00a0\n\u201cThis solution catered to 150 supervised financial enterprises as of end 2022 and will soon be expanded to 600,\u201d he said.\u00a0 \u00a0\nDespite having a young population and a relatively high internet penetration rate, the Philippines faces multiple challenges to digitalization, Mr. Gupta said.\u00a0 \u00a0\n\u201cPhilippine banks have to launch and persevere with services which can cater to a population which remains relatively underbanked apart from being less fortunate economically,\u201d he said.\u00a0 \u00a0\nBased on the central bank data, 34.3 million adults remained unbanked in the country. Farmers and agriculture workers were the least banked among all types of workers, with 73% having no accounts, the highest financial exclusion level seen in 2021.\nOther segments that had a high percentage of unbanked adults were workers for private households (48%) and self-employed individuals (45%). Non-working adults without accounts stood at 52%, equivalent to 15.6 million adults.\u00a0\nStill, the outlook for digitalization and open banking in the Philippines remains bright, Mr. Gupta said.\u00a0 \u00a0\n\u201cThe opportunities are numerous in terms of a spurt in financial innovation, leading to higher economic growth, and the evolution of personalized products and services to cater to specific need sets,\u201d he said.\n\u201cRisks include an increasing prevalence of cybercrime and the consequent need for regulators to strike a balance between helping to foster innovation and protecting customers,\u201d he added. \u2014 Keisha B. Ta-asan", "date_published": "2023-09-04T00:25:53+08:00", "date_modified": "2023-09-03T14:57:55+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/hand-with-card-laptop.jpg", "tags": [ "bw36", "Keisha B. Ta-asan", "Special Reports" ] }, { "id": "https://www.bworldonline.com/?p=542942", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542942/five-principles-for-generative-ai-in-financial-services/", "title": "Five principles for generative AI in financial services", "content_html": "By Mohan Jayaraman, Philipp Rindler, Velu Sinha
\nand Maria Teresa Tejada
THANKS to recent technological advances in generative artificial intelligence (AI) foundation models and record-breaking rates of consumer adoption, it\u2019s no longer a question whether your company will use this technology. It\u2019s a question of when and how.
\nTrained on enormous volumes of data and adapted to many applications, foundation models are more sophisticated, complex and capable than prior AI tools, especially at handling unstructured data. Increasingly offered as a service, they are also much easier and economical to adopt. But concerns about unforeseen consequences and potential misuse of the technology make it urgent for business leaders to understand the privacy, fairness, ethical and social implications of generative AI, and to balance those risks against its promising commercial potential.
\nManaging and mitigating the new risks that come with technological advance is familiar terrain for financial service institutions. Generative AI will amplify some well-known concerns but will also present new ones. The risk faced by any individual company will depend on two things: first, where and how it applies generative AI, and second, the maturity of its AI governance. Whatever their level of risk, any company using generative AI must identify relevant and emerging risks; understand how their applications map to existing and new regulations; and enhance internal functions, such as machine learning engineering, technology and legal, in anticipation of new risks.
\nGenerative AI has the potential to significantly improve the productivity and quality of many types of knowledge work, increase revenue and reduce costs. Consequently, financial service organizations are likely to use it in a variety of ways. These may include augmenting the productivity of their workforces, personalizing content for consumers and, eventually, improving consumer self-service. Traditional AI has already been used extensively in financial services, typically with structured data for prediction and segmentation. Today\u2019s foundation models could be used for converting unstructured data like text, images and audio, as well as data sets such as communications, legal documents and written financial reports into structured data, which could then be used for strengthening these existing AI risk models.
\nThe breadth and scale of generative AI\u2019s likely uses combined with its evolving social and ethical risks make creating and managing a comprehensive governance program complex (see Figure 1).
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S4.1-8-2023-AR-09.04-FINAL-Fig.1.jpg\")
REGULATORY RISKS
\nRegulators are clearly still catching up to the rapid evolution of generative AI and foundation models. In the coming months, executives will have to watch out for upcoming regulations and proactively manage them. These will come from existing regulatory bodies that are forming their perspectives, as well as from new regulatory entities that may be created specifically for this technology, such as those envisioned in the European Union\u2019s AI Act.
Generative AI also exposes organizations to increased legal risk from inadvertent or unintentional exposure of customer data by employees experimenting on public or shared systems, uncertainties in the provenance of data used in training foundation models, and potential copyright risks on content generated using these technologies.
\nAdditionally, the economic risks from regulatory noncompliance must also be considered \u2014 the draft European regulations are suggesting stiff financial penalties, similar to fines for noncompliance with data privacy regulations.
\nOPERATIONAL RISKS
\nGiven the rapid pace of advances in generative AI, many features and capabilities are being launched to support experimentation. Until these solutions are hardened to support scaling, control privacy, monitor performance, manage security anomalies, follow data sovereignty, access regulations and meet enterprise service levels, their commercial use must be very carefully considered.
Excessive complexity can make these systems brittle and more vulnerable to new vectors of cybersecurity attack, like training data poisoning and prompt injection attacks. It is likely, too, that the technology\u2019s ease of use may enable generation of malicious e-mails, phishing attacks and \u201cdeepfakes\u201d of voices and images, among other issues. Vendor risk relates both to locking into a \u201cwalled garden,\u201d especially as the vendor ecosystem grows, and to the possibility that some vendors will not survive in this increasingly busy space. Open-source models may have their own complexity of maintenance and upgrades.
\nMODEL RISKS
\nThe financial service industry has well-developed policies of fairness, accuracy, explainability and transparency built in compliance with regulatory guidelines. Generative AI intensifies some existing risks associated with AI while requiring a different approach to others. Given the large amount of data that goes into creating foundation models, for example, it is likely that bias will creep into some aspects of the data. And with foundation models mostly available as a service, new and derivative applications will inherit their risk of bias. Earlier machine learning models produced structured output for specific tasks, while generative AI creates novel results whose fidelity and accuracy can be difficult to assess. One particular concern: It can \u201challucinate\u201d output that was not present in its training data. That\u2019s a desirable result when looking for innovative content, but unacceptable if presented without verification or qualification.
ECONOMIC RISKS
\nAs with any new technology, unless planned correctly, generative AI initiatives run the risk of becoming expensive experiments that don\u2019t deliver shareholder value. There is a risk of underestimating the extent to which an organization and its people will need to transform in order to realize the benefits of generative AI. Given the technology\u2019s evolving nature, companies risk investing in the wrong technology or failing to hit the right balance between what they choose to build in-house and what they buy from outside vendors. Ultimately, every executive worries they might lose out to a competitor that deploys the technology in a way that is so appealing to customers it renders their business model obsolete.
REPUTATION RISKS
\nThe tectonic shift generative AI is precipitating brings fear of automation and the potential impact on employment, employees and society at large. Stakeholders including customers, employees and investors have all demonstrated, as they have with ESG (environmental, social and governance), that they place a high level of emphasis on social responsibility, and this technology will be no exception.
5 DESIGN PRINCIPLES
\nBuilding the organizational capability to responsibly design and deploy generative AI will require an investment of significant resources. By focusing that investment on five principles, companies can begin to mitigate risk and achieve their responsible AI goals while delivering on their strategic ambitions (see Figure 2).
![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S4.1-8-2023-AR-09.04-FINAL-Fig.2.jpg\")
1. Be human-centric \u2014 design for transparency and explainability. Generative AI systems must be built with audit trails and monitoring that fit their end use. This will help ensure that the systems are accessible and fair, are not unfairly biased and do not discriminate. All stakeholders should be adequately informed when they interact with a machine and should be able to reach a human to escalate any issues they have with a decision made by the system.
\nFor AI to be trustworthy, it must be designed for human agency and oversight. It is critical that financial service institutions ensure that a human is in the generative AI loop, whether to review feedback or address an escalated problem. End-users or other subjects should always know when a decision, content, advice or outcome is the result of an algorithm.
\n2. Know where you stand \u2014ensure that data privacy and infrastructure are robust. With a growing choice of foundation models and providers, organizations will need to select the right service and vendor. Some companies will choose a fully cloud-hosted software-as-a-service approach, while others will opt for models with privately managed infrastructure. As with other cloud technologies, companies will need to balance the simplicity of single sourcing against the risk of becoming locked into one vendor, and be aware of their vendor\u2019s data security, privacy and data residency standards.
\nWhichever choice is made, companies can build their technical infrastructure to be foundation-model agnostic so that they have the flexibility to change with the evolution of the ecosystem. Financial service firms can specifically mitigate customer and organizational data privacy concerns as well as security and performance risks by opting for the right technology architecture and focusing on building capability in prompt engineering, embeddings and outputs.
\n3. Earn trust \u2014 prepare for regulation. Regulators are playing catch-up on generative AI, but organizations can prepare by proactively monitoring for, evaluating and addressing risks and taking a forward-looking approach to governance, risk management and compliance reporting.
\n4. Employ agility \u2014 ensure oversight and disclosure, before and after deployment. Given the fast-evolving nature of this technology and its scale, companies will have to keep monitoring their applications for new and developing risks after deployment and build a human override. They must also have explicit criteria for testing and evaluating the model. Tools that provide information about the AI, such as model cards, will need to evolve to ensure that foundation models can be quantitatively evaluated and tested at industrial scale before deployment.
\n5. Act with intention \u2014 consider organizational maturity and AI governance when selecting applications. When companies first develop generative AI, it makes sense to focus on uses with low risk. Later, as their responsible AI capabilities mature, companies can work up to those with higher risk. It may be ideal for organizations to start with internal applications, then move on to applications with a limited set of external users. Once those applications have built detailed feedback loops, they can expand to a wider audience.
\nGenerative AI is no longer futuristic but an imminent reality, one offering financial service leaders both unparalleled opportunities and new business and societal risks. Financial service firms can responsibly embrace this transformative technology by building robust governance frameworks and upskilling and reskilling employees to adapt to the AI-driven workplace.
\nThis starts with a conscious decision to prioritize responsible AI practices that are designed with their broader impact in mind and aligned with the organization\u2019s core values and long-term strategic objectives. By pioneering an appropriate model for deploying generative AI, financial service organizations have the opportunity to not only gain competitive advantage in an increasingly digital world, but also set an example of responsibility and foresight.
\n\n
Mohan Jayaraman is Bain & Company\u2019s expert partner based in Singapore; Philipp Rindler is an expert senior manager based in Zurich; Velu Sinha is an expert partner based in Amsterdam; and Maria Teresa Tejada is an expert partner based in Atlanta.
\n", "content_text": "By Mohan Jayaraman, Philipp Rindler, Velu Sinha\nand Maria Teresa Tejada\nTHANKS to recent technological advances in generative artificial intelligence (AI) foundation models and record-breaking rates of consumer adoption, it\u2019s no longer a question whether your company will use this technology. It\u2019s a question of when and how.\nTrained on enormous volumes of data and adapted to many applications, foundation models are more sophisticated, complex and capable than prior AI tools, especially at handling unstructured data. Increasingly offered as a service, they are also much easier and economical to adopt. But concerns about unforeseen consequences and potential misuse of the technology make it urgent for business leaders to understand the privacy, fairness, ethical and social implications of generative AI, and to balance those risks against its promising commercial potential.\nManaging and mitigating the new risks that come with technological advance is familiar terrain for financial service institutions. Generative AI will amplify some well-known concerns but will also present new ones. The risk faced by any individual company will depend on two things: first, where and how it applies generative AI, and second, the maturity of its AI governance. Whatever their level of risk, any company using generative AI must identify relevant and emerging risks; understand how their applications map to existing and new regulations; and enhance internal functions, such as machine learning engineering, technology and legal, in anticipation of new risks.\nGenerative AI has the potential to significantly improve the productivity and quality of many types of knowledge work, increase revenue and reduce costs. Consequently, financial service organizations are likely to use it in a variety of ways. These may include augmenting the productivity of their workforces, personalizing content for consumers and, eventually, improving consumer self-service. Traditional AI has already been used extensively in financial services, typically with structured data for prediction and segmentation. Today\u2019s foundation models could be used for converting unstructured data like text, images and audio, as well as data sets such as communications, legal documents and written financial reports into structured data, which could then be used for strengthening these existing AI risk models.\nThe breadth and scale of generative AI\u2019s likely uses combined with its evolving social and ethical risks make creating and managing a comprehensive governance program complex (see Figure 1).\n\nREGULATORY RISKS\nRegulators are clearly still catching up to the rapid evolution of generative AI and foundation models. In the coming months, executives will have to watch out for upcoming regulations and proactively manage them. These will come from existing regulatory bodies that are forming their perspectives, as well as from new regulatory entities that may be created specifically for this technology, such as those envisioned in the European Union\u2019s AI Act. \nGenerative AI also exposes organizations to increased legal risk from inadvertent or unintentional exposure of customer data by employees experimenting on public or shared systems, uncertainties in the provenance of data used in training foundation models, and potential copyright risks on content generated using these technologies.\nAdditionally, the economic risks from regulatory noncompliance must also be considered \u2014 the draft European regulations are suggesting stiff financial penalties, similar to fines for noncompliance with data privacy regulations.\nOPERATIONAL RISKS\nGiven the rapid pace of advances in generative AI, many features and capabilities are being launched to support experimentation. Until these solutions are hardened to support scaling, control privacy, monitor performance, manage security anomalies, follow data sovereignty, access regulations and meet enterprise service levels, their commercial use must be very carefully considered.\nExcessive complexity can make these systems brittle and more vulnerable to new vectors of cybersecurity attack, like training data poisoning and prompt injection attacks. It is likely, too, that the technology\u2019s ease of use may enable generation of malicious e-mails, phishing attacks and \u201cdeepfakes\u201d of voices and images, among other issues. Vendor risk relates both to locking into a \u201cwalled garden,\u201d especially as the vendor ecosystem grows, and to the possibility that some vendors will not survive in this increasingly busy space. Open-source models may have their own complexity of maintenance and upgrades.\nMODEL RISKS\nThe financial service industry has well-developed policies of fairness, accuracy, explainability and transparency built in compliance with regulatory guidelines. Generative AI intensifies some existing risks associated with AI while requiring a different approach to others. Given the large amount of data that goes into creating foundation models, for example, it is likely that bias will creep into some aspects of the data. And with foundation models mostly available as a service, new and derivative applications will inherit their risk of bias. Earlier machine learning models produced structured output for specific tasks, while generative AI creates novel results whose fidelity and accuracy can be difficult to assess. One particular concern: It can \u201challucinate\u201d output that was not present in its training data. That\u2019s a desirable result when looking for innovative content, but unacceptable if presented without verification or qualification.\nECONOMIC RISKS\nAs with any new technology, unless planned correctly, generative AI initiatives run the risk of becoming expensive experiments that don\u2019t deliver shareholder value. There is a risk of underestimating the extent to which an organization and its people will need to transform in order to realize the benefits of generative AI. Given the technology\u2019s evolving nature, companies risk investing in the wrong technology or failing to hit the right balance between what they choose to build in-house and what they buy from outside vendors. Ultimately, every executive worries they might lose out to a competitor that deploys the technology in a way that is so appealing to customers it renders their business model obsolete.\nREPUTATION RISKS\nThe tectonic shift generative AI is precipitating brings fear of automation and the potential impact on employment, employees and society at large. Stakeholders including customers, employees and investors have all demonstrated, as they have with ESG (environmental, social and governance), that they place a high level of emphasis on social responsibility, and this technology will be no exception.\n5 DESIGN PRINCIPLES\nBuilding the organizational capability to responsibly design and deploy generative AI will require an investment of significant resources. By focusing that investment on five principles, companies can begin to mitigate risk and achieve their responsible AI goals while delivering on their strategic ambitions (see Figure 2).\n\n1. Be human-centric \u2014 design for transparency and explainability. Generative AI systems must be built with audit trails and monitoring that fit their end use. This will help ensure that the systems are accessible and fair, are not unfairly biased and do not discriminate. All stakeholders should be adequately informed when they interact with a machine and should be able to reach a human to escalate any issues they have with a decision made by the system.\nFor AI to be trustworthy, it must be designed for human agency and oversight. It is critical that financial service institutions ensure that a human is in the generative AI loop, whether to review feedback or address an escalated problem. End-users or other subjects should always know when a decision, content, advice or outcome is the result of an algorithm.\n2. Know where you stand \u2014ensure that data privacy and infrastructure are robust. With a growing choice of foundation models and providers, organizations will need to select the right service and vendor. Some companies will choose a fully cloud-hosted software-as-a-service approach, while others will opt for models with privately managed infrastructure. As with other cloud technologies, companies will need to balance the simplicity of single sourcing against the risk of becoming locked into one vendor, and be aware of their vendor\u2019s data security, privacy and data residency standards.\nWhichever choice is made, companies can build their technical infrastructure to be foundation-model agnostic so that they have the flexibility to change with the evolution of the ecosystem. Financial service firms can specifically mitigate customer and organizational data privacy concerns as well as security and performance risks by opting for the right technology architecture and focusing on building capability in prompt engineering, embeddings and outputs.\n3. Earn trust \u2014 prepare for regulation. Regulators are playing catch-up on generative AI, but organizations can prepare by proactively monitoring for, evaluating and addressing risks and taking a forward-looking approach to governance, risk management and compliance reporting.\n4. Employ agility \u2014 ensure oversight and disclosure, before and after deployment. Given the fast-evolving nature of this technology and its scale, companies will have to keep monitoring their applications for new and developing risks after deployment and build a human override. They must also have explicit criteria for testing and evaluating the model. Tools that provide information about the AI, such as model cards, will need to evolve to ensure that foundation models can be quantitatively evaluated and tested at industrial scale before deployment.\n5. Act with intention \u2014 consider organizational maturity and AI governance when selecting applications. When companies first develop generative AI, it makes sense to focus on uses with low risk. Later, as their responsible AI capabilities mature, companies can work up to those with higher risk. It may be ideal for organizations to start with internal applications, then move on to applications with a limited set of external users. Once those applications have built detailed feedback loops, they can expand to a wider audience.\nGenerative AI is no longer futuristic but an imminent reality, one offering financial service leaders both unparalleled opportunities and new business and societal risks. Financial service firms can responsibly embrace this transformative technology by building robust governance frameworks and upskilling and reskilling employees to adapt to the AI-driven workplace.\nThis starts with a conscious decision to prioritize responsible AI practices that are designed with their broader impact in mind and aligned with the organization\u2019s core values and long-term strategic objectives. By pioneering an appropriate model for deploying generative AI, financial service organizations have the opportunity to not only gain competitive advantage in an increasingly digital world, but also set an example of responsibility and foresight.\n \nMohan Jayaraman is Bain & Company\u2019s expert partner based in Singapore; Philipp Rindler is an expert senior manager based in Zurich; Velu Sinha is an expert partner based in Amsterdam; and Maria Teresa Tejada is an expert partner based in Atlanta.", "date_published": "2023-09-04T00:24:52+08:00", "date_modified": "2023-09-03T14:57:51+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/Big-Data-AI.jpg", "tags": [ "bw36", "Maria Teresa Tejada", "Mohan Jayaraman", "Philipp Rindler", "Velu Sinha", "Special Reports" ], "summary": "THANKS to recent technological advances in generative artificial intelligence (AI) foundation models and record-breaking rates of consumer adoption, it\u2019s no longer a question whether your company will use this technology. It\u2019s a question of when and how." }, { "id": "https://www.bworldonline.com/?p=542941", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542941/govt-digitalization-push-to-sustain-demand-for-fintech-services/", "title": "Gov\u2019t digitalization push to sustain demand for fintech services", "content_html": "DEMAND for financial technology (fintech) services is expected to be sustained following the increase seen during the coronavirus pandemic, driven by the government\u2019s digitalization initiatives.
\n\u201cWith the Philippine government prioritizing the digitalization of financial transactions and showing strong support for the fintech industry, we are highly optimistic that Filipinos will not only continue to embrace cashless payment methods but also emerge as one of the fastest adopters of financial technology in the region,\u201d Robin Wong, president and chief executive officer of fintech firm Mocasa, said in an e-mail.
\nThe industry\u2019s sustained growth will also be driven by digital payments, Rizal Commercial Banking Corp. (RCBC) Executive Vice-President and Chief Innovation and Inclusion Officer and Fintech Alliance PH Chairman Angelito \u201cLito\u201d M. Villanueva said.
\n\r\n \r\n\r\n\u201cThere will be no way by which Filipinos will be going back to the usual cash or manual means of payment transactions,\u201d he said.
\nA 2020 study by the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School, the World Bank Group and the World Economic Forum showed the global fintech industry saw an increase in demand during the coronavirus pandemic, making it an outlier as most sectors were hit by the health emergency.
\n\u201cIn 2020, firms saw an average rise of 13% compared to 11% growth in previous years. The expansion of transactions was noticeably higher in countries with strict COVID-19 lockdown measures, where growth was 50% higher compared with firms who were operating in countries with looser lockdown measures,\u201d according to the study.
\nFintechs related to digital asset exchanges, digital payments, digital savings and wealthtech saw significant growth.
\nIn the Philippines, digital lenders and e-wallets are leading the fintech industry\u2019s expansion, said Enrico P. Villanueva, senior lecturer of economics at the University of the Philippines Los Ba\u00f1os (UPLB).
\nAs of June, 40% of retail transactions in 2022 were done digitally, higher than 30.3% seen the prior year, according to central bank data.
\nMoving forward, the fintech industry will need to develop a sustainable credit scoring system, especially when rates begin to ease, UPLB\u2019s Mr. Villanueva said.
\n\u201cThere will always be room for platforms that allow cheaper and more convenient ways to remitting money or doing fund transfer. The fintech companies that can do better will likely enjoy fast growth,\u201d he added.
\nFintechs have recalibrated their long-term goals amid the increased demand and fast growth seen by the industry, RCBC\u2019s Mr. Villanueva said.
\n\u201cDigital now becomes at the forefront of any strategic corporate plan \u2014 in terms of having to scale your operations, scale your business and definitely how to ensure that you can make yourself relevant,\u201d he said.
\nDue to the pandemic, fintech firms had to tap new technologies to cope with demand, such as artificial intelligence (AI), he added.
\nHowever, he said AI is a double-edged sword as it could take over jobs done by humans, which means companies should help upskill and educate their employees.
\n\u201cGoing digital is not just about technology. It\u2019s also about culture\u2026 Technology is just a portion of the whole proposition. Because for any digital transformation to survive, to be successful or even thrive, you need to have a change in culture or a change in mindset in the whole organization,\u201d RCBC\u2019s Mr. Villanueva said.
\nHowever, fintech adoption could be hampered by the high costs of smartphones and internet connections, said Calixto V. Chikiamco, Foundation for Economic Freedom president.
\n\u201cThe cost of smartphones and of data connectivity will have to fall further before more C and D segments of the population can make use of fintech. Accessibility is also an issue as many parts of the country, particularly in the countryside, have spotty signals,\u201d he said. \u2014 A.M.C. Sy
\n", "content_text": "DEMAND for financial technology (fintech) services is expected to be sustained following the increase seen during the coronavirus pandemic, driven by the government\u2019s digitalization initiatives.\n\u201cWith the Philippine government prioritizing the digitalization of financial transactions and showing strong support for the fintech industry, we are highly optimistic that Filipinos will not only continue to embrace cashless payment methods but also emerge as one of the fastest adopters of financial technology in the region,\u201d Robin Wong, president and chief executive officer of fintech firm Mocasa, said in an e-mail.\nThe industry\u2019s sustained growth will also be driven by digital payments, Rizal Commercial Banking Corp. (RCBC) Executive Vice-President and Chief Innovation and Inclusion Officer and Fintech Alliance PH Chairman Angelito \u201cLito\u201d M. Villanueva said. \n\r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n 1 of 4\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n\r\n \r\n \n\u201cThere will be no way by which Filipinos will be going back to the usual cash or manual means of payment transactions,\u201d he said.\nA 2020 study by the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School, the World Bank Group and the World Economic Forum showed the global fintech industry saw an increase in demand during the coronavirus pandemic, making it an outlier as most sectors were hit by the health emergency.\n\u201cIn 2020, firms saw an average rise of 13% compared to 11% growth in previous years. The expansion of transactions was noticeably higher in countries with strict COVID-19 lockdown measures, where growth was 50% higher compared with firms who were operating in countries with looser lockdown measures,\u201d according to the study.\nFintechs related to digital asset exchanges, digital payments, digital savings and wealthtech saw significant growth.\nIn the Philippines, digital lenders and e-wallets are leading the fintech industry\u2019s expansion, said Enrico P. Villanueva, senior lecturer of economics at the University of the Philippines Los Ba\u00f1os (UPLB).\nAs of June, 40% of retail transactions in 2022 were done digitally, higher than 30.3% seen the prior year, according to central bank data.\nMoving forward, the fintech industry will need to develop a sustainable credit scoring system, especially when rates begin to ease, UPLB\u2019s Mr. Villanueva said.\n\u201cThere will always be room for platforms that allow cheaper and more convenient ways to remitting money or doing fund transfer. The fintech companies that can do better will likely enjoy fast growth,\u201d he added.\nFintechs have recalibrated their long-term goals amid the increased demand and fast growth seen by the industry, RCBC\u2019s Mr. Villanueva said.\n\u201cDigital now becomes at the forefront of any strategic corporate plan \u2014 in terms of having to scale your operations, scale your business and definitely how to ensure that you can make yourself relevant,\u201d he said. \nDue to the pandemic, fintech firms had to tap new technologies to cope with demand, such as artificial intelligence (AI), he added.\nHowever, he said AI is a double-edged sword as it could take over jobs done by humans, which means companies should help upskill and educate their employees.\n\u201cGoing digital is not just about technology. It\u2019s also about culture\u2026 Technology is just a portion of the whole proposition. Because for any digital transformation to survive, to be successful or even thrive, you need to have a change in culture or a change in mindset in the whole organization,\u201d RCBC\u2019s Mr. Villanueva said.\nHowever, fintech adoption could be hampered by the high costs of smartphones and internet connections, said Calixto V. Chikiamco, Foundation for Economic Freedom president.\n\u201cThe cost of smartphones and of data connectivity will have to fall further before more C and D segments of the population can make use of fintech. Accessibility is also an issue as many parts of the country, particularly in the countryside, have spotty signals,\u201d he said. \u2014 A.M.C. Sy", "date_published": "2023-09-04T00:23:51+08:00", "date_modified": "2023-09-03T14:57:47+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/close-up-hand-holding-smartphone.jpg", "tags": [ "Aaron Michael C. Sy", "bw36", "Special Reports" ] }, { "id": "https://www.bworldonline.com/?p=542940", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542940/public-policy-and-private-sector-participation/", "title": "Public policy and private sector participation\u00a0", "content_html": "By Diwa C. Guinigundo
\nFOURTEEN years ago, Robert B. Reich, professor of public policy at the University of California at Berkeley and former Cabinet member in several Democrat administrations in the US, published an extremely interesting paper titled \u201cGovernment in Your Business\u201d in the Harvard Business Review. He made the point, and it made perfect sense even before then and now, that \u201cmanagers in the private sector, accustomed to ducking behind corporate- and government-relations professionals, will need to develop a new mindset and skill set that will allow them to partner with government rather than fend it off.\u201d
\nIt is public trust that would define the dynamics between government and the private sector, that in the last century, it has swung from government to business, and then business to government. Reich cited the experience in the US at the end of World War I and the beginning of the Great Depression. Business was failing, and the capacity of the private sector to initiate economic recovery was clearly limited. Since public money was critical to jumpstart the economy from the time Franklin D. Roosevelt was elected president in 1932 until the late 1970s, public trust in government was the highest.
\nBut the regulatory framework started to get complicated and ubiquitous so that it evolved into sands in the wheels of economic progress. Even the public was repelled at the size of government and its extent of intervention in business. Too much of it started to pull in growth and excessive public spending abetted high price inflation. To finance higher public spending, taxes were raised, which undermined business innovation.
\nPresident Ronald Reagan had to absorb the pendulum of public trust against government. Business and finance regained public trust after the government committed some excesses in public policy against industry. At the time of Reich\u2019s publication, the transition reversed in favor of government again. Public policy began to shape business and investment again in the US, and might even have been in a bigger way in Europe and Japan. After all, Americans were usually litigious, more suspicious in fact of any form of meddling by public servants.\u00a0 \u00a0 \u00a0
\nThis was an ultimate expectation because no less than government action and public money were crucial in resolving the global financial crisis starting in 2008. In the US most especially, without the decisive action by financial authorities, the crisis could have been more prolonged and more debilitating for business and investment. As Reich admitted, the malfeasance in financial services triggered the erosion of public confidence in the Enrons, Adelphias, Global Crossings, Tycos, HealthSouths, Sunbeams, WorldComs, Waste Managements and ImClones of the world. Chartered accountants had admitted some negligence or paid substantial fines without admitting guilt. It cannot be denied that in the aftermath of the global financial crisis, it was reported that every major investment bank had some involvement in defrauding investors who were encouraged to invest in junk bonds.
\nAs Reich disclosed, public opinion stood against business at the time.
\nThe annual Trust Barometer in 2008 showed that only 38% of adult respondents trusted businesses, or a 20-percentage-point decline over a year, the lowest in a decade. Public Strategies and Politico showed that more than two-thirds of their respondents thought business regulations should be tightened.
\nIn the past 20 years, however, it has been observed that business interests and those of society are increasingly becoming more related and more intertwined. Pressing social challenges that range from reduction of carbon emissions in the greater context of climate change; digitalization, financial technology and artificial intelligence; mitigation of poverty, income inequality and justice; financial inclusion and education; credit availability and capital market development, have influenced how private businesses design their goods and services for public knowledge and consumption.
\nEven in the Philippines, the long-term Philippine vision and aspirations of the Filipino people as appropriately captured in the Ambisyon Natin 2040 blueprint must have served as a long-term template for business and industry. A picture of the future that addresses such question as \u201cWhere do we want to be?\u201d Ambisyon Natin 2040 anchors the government\u2019s plans and programs, guided by a group of experts and representatives of the government, private sector, academe and civil society.
\nIt would be most profitable for business and industry to similarly build their business plans around the direction of the general economy until 2040. To be sure, not everything in the blueprint will be put on stream; some will be deprioritized and some will be conveniently forgotten altogether. Some will not even be allocated the budget in favor of some fancy-sounding line items like confidential and intelligence funds, and most recently, the Maharlika Investment Fund.
\nWith the vision of Ambisyon shaped thus, \u201cFilipinos enjoy a strongly rooted, comfortable and secure life,\u201d the way one should grow his business in the next decade and a half should be anchored on the following sectors that are expected to have a direct impact on the fulfillment of the blueprint. They include housing and urban development, manufacturing, connectivity, education services, tourism and allied services, agriculture, health and wellness services and financial services.
\nIt is good that the national blueprint sounded the call not only for foundational literacies such as reading, arithmetic and science, but also for other types of personal competencies like critical thinking, problem-solving, creativity, communication and collaboration \u2014 skills many Filipinos today seem to be lacking. Character qualities are also desirable, and they include curiosity, initiative, persistence and grit, adaptability, leadership, social and cultural awareness.
\nWhat is key here is whether the requisite learning opportunities could be made accessible to as many Filipinos as possible given appropriate public policy and private sector initiative and support. Institutionalization is only possible when competencies are continuously upgraded, but this will require greater public goods. Incurring democracy deficit therefore subverts whatever learning opportunities are available given limited public funds.
\nThe Marcos politics will make sense only if it adheres both to its Medium-Term Development Plan 2023-2028 and the Eight-Point Socioeconomic Agenda. Perhaps even only substantial, not even complete, compliance with these national economic development blueprints should be strategic enough for the private sector to be motivated and be guided accordingly. The six-year plan is more than a complete program of development covering the areas for economic and social transformation in the context of health, economic, geopolitical, environmental and technology trends and developments.
\nWhat is different from the current plan is the inclusion of the legislative agenda, or what kind of legislative interventions will be required to institutionalize the proposed changes to promote health and social development, improve education, establish livable communities, ensure food security, strengthen social protection, increase income-earning ability, modernize agriculture and agribusiness, revitalize industry, reinvigorate services, advance research and development, promote trade and investments, promote competition and improve regulatory efficiency, promote an inclusive financial sector, ensure sound fiscal management, expand and upgrade infrastructure, ensure peace and security, enhance the administration of justice, practice good governance and bureaucratic efficiency, and accelerate climate action and strengthen disaster resilience.
\nThese are a mouthful, but required to advance economic growth on many fronts to make it sustainable and self-sustaining, high and inclusive. Being broad-based is critical to economic resiliency.
\nFor the private sector, the inclusion of result matrices of the development blueprint should make it plain and easy to pursue the implementation of these proposals. There is greater likelihood of success if government support is assured beyond the letters of the blueprint.
\nThe development plan could be meaningful only if the government succeeds in pursuing it within the new medium-term fiscal framework aimed at helping the Philippines attain \u201ca faster, greener and more inclusive growth that will benefit all Filipinos.\u201d In short, what is on the plate of the Philippines\u2019 political leaders is to be able to deliver on both strong and inclusive economic growth and fiscal sustainability \u2014 that rare combination of boosting the economy without impoverishing the Filipino people with more taxes and higher public borrowings.
\nOne way of looking at this public-private collaboration is in terms of the private business and industry following up on the government\u2019s success in enacting laws liberalizing the economy particularly through the amendments to the Public Service Act, Retail Trade Liberalization Act and Foreign Investment Act. If convinced, the private sector can respond with higher levels of capitalization and investments in specific economic and financial sectors consistent with public policy and vision.
\nThis synergy was demonstrated recently when industry groups welcomed the amendments to the implementing rules and regulations of the Corporate Recovery and Tax Incentive for Enterprises (CREATE) Act, which clarified once and for all that export-oriented companies, or those located in Philippine Economic Zone Authority or in any special zone, are exempted from paying the value-added tax. Unfortunately, some members of the House of Representatives have this wrong idea that once the CREATE law was enacted, a huge stream of investments would necessarily come. Even the implementing rules have to be thoughtfully and cleverly crafted.
\nLet the annual budget process also establish the platform for greater collaboration between the government and private sector, and public trust to grow. Private economists and analysts should try and drill down the slogans of the Budget department to find out whether the priorities in the development blueprints are carried over to the budget priorities, and properly budgeted. Civil society could only hope against hope that public spending is excised of unnecessary fat and of opportunities for corruption.
\nAlmost two years ago, we wrote that based on some estimates, corruption or for some, \u201crent seeking,\u201d could deny us a 6.6% increase in investment to GDP ratio or a 1.65% increase in annual per capita GDP (ES De Dios and RD Ferrer, \u201cCorruption in the Philippines: Framework and Context, January 2000). One year before this publication, we also cited then Deputy Ombudsman Cyril Ramos who computed that the Philippine government had lost about P1.4 trillion in the previous two years, or P700 billion a year, or about 20% of the national budget. With higher levels of corruption over the years and inflation, the numbers could only overwhelm. The cost of doing business in the Philippines is inflated by corruption.
\nThus, good governance is critical to restoring public trust and in soliciting private investment here and abroad. It\u2019s something that does not magically appear from slogans or foreign trips, but says a lot about return on investments.\u00a0 \u00a0
\nIt would also be useful for policy makers to be cognizant of the various global risks including the more volatile and more fragmented world economy. What we could expect from such setting is the wider amplitude of capital flows that is more destabilizing of emerging market economies like the Philippines. Their governments had resorted to different strategies and policy tools in the past. On this, the International Monetary Fund (IMF) in the past three years pioneered in developing both theoretical and empirical bases for what it calls \u201cintegrated policy framework.\u201d This is a systematic analytical approach in selecting the most appropriate policy mix for managing large and unsteady capital flows and preserve macroeconomic and financial stability. The role of monetary, exchange rate, macroprudential and capital flow management policies has to be reconciled with one another as to their impact and challenges.
\nOur economic managers are challenged to sharpen their analytical tools in making judgment on the nature of shocks, country characteristics and initial conditions. Research on these elements is quite in abundance. Those tools, according to the IMF, are no substitute for economic adjustments, development of deep capital markets, robust corporate and bank balance sheets and of course, strong institutions. Costs and benefits must be weighed, and the uncritical pursuit of new and untested approaches avoided.
\nAll that we are after in strengthening public and private partnerships and growing public trust is to ensure resilient and inclusive economic growth. We have a lot of development blueprints and a long list of tools of analysis and policy options. It\u2019s the human variable that makes those blueprints either workable or simply a pipe dream. It\u2019s the human variable that choosing among the better options becomes cryptic.
\nDidn\u2019t Sir Isaac Newton say: \u201cI can calculate the motion of heavenly bodies, but not the madness of people.\u201d
\n\n
Diwa C. Guinigundo is a former deputy governor for the Monetary and Economics Sector of the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, D.C. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.
\n", "content_text": "By Diwa C. Guinigundo\nFOURTEEN years ago, Robert B. Reich, professor of public policy at the University of California at Berkeley and former Cabinet member in several Democrat administrations in the US, published an extremely interesting paper titled \u201cGovernment in Your Business\u201d in the Harvard Business Review. He made the point, and it made perfect sense even before then and now, that \u201cmanagers in the private sector, accustomed to ducking behind corporate- and government-relations professionals, will need to develop a new mindset and skill set that will allow them to partner with government rather than fend it off.\u201d\nIt is public trust that would define the dynamics between government and the private sector, that in the last century, it has swung from government to business, and then business to government. Reich cited the experience in the US at the end of World War I and the beginning of the Great Depression. Business was failing, and the capacity of the private sector to initiate economic recovery was clearly limited. Since public money was critical to jumpstart the economy from the time Franklin D. Roosevelt was elected president in 1932 until the late 1970s, public trust in government was the highest.\nBut the regulatory framework started to get complicated and ubiquitous so that it evolved into sands in the wheels of economic progress. Even the public was repelled at the size of government and its extent of intervention in business. Too much of it started to pull in growth and excessive public spending abetted high price inflation. To finance higher public spending, taxes were raised, which undermined business innovation.\nPresident Ronald Reagan had to absorb the pendulum of public trust against government. Business and finance regained public trust after the government committed some excesses in public policy against industry. At the time of Reich\u2019s publication, the transition reversed in favor of government again. Public policy began to shape business and investment again in the US, and might even have been in a bigger way in Europe and Japan. After all, Americans were usually litigious, more suspicious in fact of any form of meddling by public servants.\u00a0 \u00a0 \u00a0\nThis was an ultimate expectation because no less than government action and public money were crucial in resolving the global financial crisis starting in 2008. In the US most especially, without the decisive action by financial authorities, the crisis could have been more prolonged and more debilitating for business and investment. As Reich admitted, the malfeasance in financial services triggered the erosion of public confidence in the Enrons, Adelphias, Global Crossings, Tycos, HealthSouths, Sunbeams, WorldComs, Waste Managements and ImClones of the world. Chartered accountants had admitted some negligence or paid substantial fines without admitting guilt. It cannot be denied that in the aftermath of the global financial crisis, it was reported that every major investment bank had some involvement in defrauding investors who were encouraged to invest in junk bonds.\nAs Reich disclosed, public opinion stood against business at the time.\nThe annual Trust Barometer in 2008 showed that only 38% of adult respondents trusted businesses, or a 20-percentage-point decline over a year, the lowest in a decade. Public Strategies and Politico showed that more than two-thirds of their respondents thought business regulations should be tightened.\nIn the past 20 years, however, it has been observed that business interests and those of society are increasingly becoming more related and more intertwined. Pressing social challenges that range from reduction of carbon emissions in the greater context of climate change; digitalization, financial technology and artificial intelligence; mitigation of poverty, income inequality and justice; financial inclusion and education; credit availability and capital market development, have influenced how private businesses design their goods and services for public knowledge and consumption. \nEven in the Philippines, the long-term Philippine vision and aspirations of the Filipino people as appropriately captured in the Ambisyon Natin 2040 blueprint must have served as a long-term template for business and industry. A picture of the future that addresses such question as \u201cWhere do we want to be?\u201d Ambisyon Natin 2040 anchors the government\u2019s plans and programs, guided by a group of experts and representatives of the government, private sector, academe and civil society.\nIt would be most profitable for business and industry to similarly build their business plans around the direction of the general economy until 2040. To be sure, not everything in the blueprint will be put on stream; some will be deprioritized and some will be conveniently forgotten altogether. Some will not even be allocated the budget in favor of some fancy-sounding line items like confidential and intelligence funds, and most recently, the Maharlika Investment Fund.\nWith the vision of Ambisyon shaped thus, \u201cFilipinos enjoy a strongly rooted, comfortable and secure life,\u201d the way one should grow his business in the next decade and a half should be anchored on the following sectors that are expected to have a direct impact on the fulfillment of the blueprint. They include housing and urban development, manufacturing, connectivity, education services, tourism and allied services, agriculture, health and wellness services and financial services.\nIt is good that the national blueprint sounded the call not only for foundational literacies such as reading, arithmetic and science, but also for other types of personal competencies like critical thinking, problem-solving, creativity, communication and collaboration \u2014 skills many Filipinos today seem to be lacking. Character qualities are also desirable, and they include curiosity, initiative, persistence and grit, adaptability, leadership, social and cultural awareness.\nWhat is key here is whether the requisite learning opportunities could be made accessible to as many Filipinos as possible given appropriate public policy and private sector initiative and support. Institutionalization is only possible when competencies are continuously upgraded, but this will require greater public goods. Incurring democracy deficit therefore subverts whatever learning opportunities are available given limited public funds.\nThe Marcos politics will make sense only if it adheres both to its Medium-Term Development Plan 2023-2028 and the Eight-Point Socioeconomic Agenda. Perhaps even only substantial, not even complete, compliance with these national economic development blueprints should be strategic enough for the private sector to be motivated and be guided accordingly. The six-year plan is more than a complete program of development covering the areas for economic and social transformation in the context of health, economic, geopolitical, environmental and technology trends and developments.\nWhat is different from the current plan is the inclusion of the legislative agenda, or what kind of legislative interventions will be required to institutionalize the proposed changes to promote health and social development, improve education, establish livable communities, ensure food security, strengthen social protection, increase income-earning ability, modernize agriculture and agribusiness, revitalize industry, reinvigorate services, advance research and development, promote trade and investments, promote competition and improve regulatory efficiency, promote an inclusive financial sector, ensure sound fiscal management, expand and upgrade infrastructure, ensure peace and security, enhance the administration of justice, practice good governance and bureaucratic efficiency, and accelerate climate action and strengthen disaster resilience.\nThese are a mouthful, but required to advance economic growth on many fronts to make it sustainable and self-sustaining, high and inclusive. Being broad-based is critical to economic resiliency. \nFor the private sector, the inclusion of result matrices of the development blueprint should make it plain and easy to pursue the implementation of these proposals. There is greater likelihood of success if government support is assured beyond the letters of the blueprint. \nThe development plan could be meaningful only if the government succeeds in pursuing it within the new medium-term fiscal framework aimed at helping the Philippines attain \u201ca faster, greener and more inclusive growth that will benefit all Filipinos.\u201d In short, what is on the plate of the Philippines\u2019 political leaders is to be able to deliver on both strong and inclusive economic growth and fiscal sustainability \u2014 that rare combination of boosting the economy without impoverishing the Filipino people with more taxes and higher public borrowings.\nOne way of looking at this public-private collaboration is in terms of the private business and industry following up on the government\u2019s success in enacting laws liberalizing the economy particularly through the amendments to the Public Service Act, Retail Trade Liberalization Act and Foreign Investment Act. If convinced, the private sector can respond with higher levels of capitalization and investments in specific economic and financial sectors consistent with public policy and vision.\nThis synergy was demonstrated recently when industry groups welcomed the amendments to the implementing rules and regulations of the Corporate Recovery and Tax Incentive for Enterprises (CREATE) Act, which clarified once and for all that export-oriented companies, or those located in Philippine Economic Zone Authority or in any special zone, are exempted from paying the value-added tax. Unfortunately, some members of the House of Representatives have this wrong idea that once the CREATE law was enacted, a huge stream of investments would necessarily come. Even the implementing rules have to be thoughtfully and cleverly crafted.\nLet the annual budget process also establish the platform for greater collaboration between the government and private sector, and public trust to grow. Private economists and analysts should try and drill down the slogans of the Budget department to find out whether the priorities in the development blueprints are carried over to the budget priorities, and properly budgeted. Civil society could only hope against hope that public spending is excised of unnecessary fat and of opportunities for corruption.\nAlmost two years ago, we wrote that based on some estimates, corruption or for some, \u201crent seeking,\u201d could deny us a 6.6% increase in investment to GDP ratio or a 1.65% increase in annual per capita GDP (ES De Dios and RD Ferrer, \u201cCorruption in the Philippines: Framework and Context, January 2000). One year before this publication, we also cited then Deputy Ombudsman Cyril Ramos who computed that the Philippine government had lost about P1.4 trillion in the previous two years, or P700 billion a year, or about 20% of the national budget. With higher levels of corruption over the years and inflation, the numbers could only overwhelm. The cost of doing business in the Philippines is inflated by corruption. \nThus, good governance is critical to restoring public trust and in soliciting private investment here and abroad. It\u2019s something that does not magically appear from slogans or foreign trips, but says a lot about return on investments.\u00a0 \u00a0\nIt would also be useful for policy makers to be cognizant of the various global risks including the more volatile and more fragmented world economy. What we could expect from such setting is the wider amplitude of capital flows that is more destabilizing of emerging market economies like the Philippines. Their governments had resorted to different strategies and policy tools in the past. On this, the International Monetary Fund (IMF) in the past three years pioneered in developing both theoretical and empirical bases for what it calls \u201cintegrated policy framework.\u201d This is a systematic analytical approach in selecting the most appropriate policy mix for managing large and unsteady capital flows and preserve macroeconomic and financial stability. The role of monetary, exchange rate, macroprudential and capital flow management policies has to be reconciled with one another as to their impact and challenges.\nOur economic managers are challenged to sharpen their analytical tools in making judgment on the nature of shocks, country characteristics and initial conditions. Research on these elements is quite in abundance. Those tools, according to the IMF, are no substitute for economic adjustments, development of deep capital markets, robust corporate and bank balance sheets and of course, strong institutions. Costs and benefits must be weighed, and the uncritical pursuit of new and untested approaches avoided.\nAll that we are after in strengthening public and private partnerships and growing public trust is to ensure resilient and inclusive economic growth. We have a lot of development blueprints and a long list of tools of analysis and policy options. It\u2019s the human variable that makes those blueprints either workable or simply a pipe dream. It\u2019s the human variable that choosing among the better options becomes cryptic. \nDidn\u2019t Sir Isaac Newton say: \u201cI can calculate the motion of heavenly bodies, but not the madness of people.\u201d\n \nDiwa C. Guinigundo is a former deputy governor for the Monetary and Economics Sector of the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, D.C. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.", "date_published": "2023-09-04T00:22:51+08:00", "date_modified": "2023-09-03T14:57:44+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/business-people-casual-meeting.jpg", "tags": [ "bw36", "Diwa C. Guinigundo", "Special Reports" ], "summary": "FOURTEEN years ago, Robert B. Reich, professor of public policy at the University of California at Berkeley and former Cabinet member in several Democrat administrations in the US, published an extremely interesting paper titled \u201cGovernment in Your Business\u201d in the Harvard Business Review." }, { "id": "https://www.bworldonline.com/?p=543046", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543046/listed-companies-consider-esg/", "title": "Listed companies consider ESG", "content_html": "COMPANIES are expected to pursue more environmental, social, and governance (ESG) initiatives amid rising climate risks and as the Philippines continues to recover from the coronavirus pandemic.
\nMore firms are integrating ESG principles into their operations, said Roderick de Castro, executive director for the Business for Sustainable Development.
\n\u201cWhat prompted this is the global call for a worldwide approach to climate change, the pandemic, and regulators adopting an ESG framework for due diligence and audit,\u201d Mr. De Castro said in an e-mail.
\nThe coronavirus pandemic showed companies how they can improve the social aspect of their operations, he added.
\n\u201cThe pandemic also revealed issues related to gender equality and livelihood programs which companies could further improve on,\u201d he said.
\nFor its part, Aboitiz Equity Ventures, Inc. (AEV) said in its 2022 annual report that it would be focusing on improving its sustainability initiatives through risk assessment and strategy development.
\nThe company has businesses in power generation, distribution and retail electricity supply, financial services, food manufacturing, real estate, and infrastructure.
\n\u201cAs the COVID-19 pandemic risks began to be managed, other risks emerged that shaped the global landscape, including geopolitical tensions that led to soaring inflation and supply chain disruptions. These underscored the importance of a commitment to sustainable business practices,\u201d Ana Margarita N. Hontiveros-Malvar, AEV first vice-president and chief reputation and sustainability officer, said in an e-mail.
\n\u201cAboitiz has made strides in making a robust process of group-wide business environmental scanning and scenario planning for risks and opportunities,\u201d she added.
\nThe company is also using data science and artificial intelligence to improve its operational efficiency and reduce carbon emissions by approximately 35,000 tons of carbon dioxide equivalent, she said.
\nOne of AEV\u2019s environmental initiatives is the implementation conservation efforts by preserving water in its communities through watersheds and rehabilitated rivers and estuaries, she said.
\nThe company also spent P521 million to plant 12.44 million trees in 2022, she added.
\n\u201cThe workflows adopted have been designed to keep people at the center of our initiatives, with environmental initiatives balanced to meet long-term social equitability,\u201d Ms. Hontiveros-Malvar said.
\nAEV also came up with supply chain management strategies for its core businesses.
\n\u201cESG risks critical to the supply chain are being reviewed based on supplier compliance requirements that may vary depending on the industry sector where our strategic business units belong,\u201d the company said in the report.
\nMeanwhile, Filinvest Development Corp., which has businesses in banking, utilities, real estate, and infrastructure, has invested in digitalization, as well as sustainable designs and building practices by creating \u201cpeople-centric and nature-sensitive\u201d spaces with water security solutions, Filinvest Chief Sustainability Officer Mark Tom Q. Mulingbayan said in an e-mail.
\n\u201cWe strive to operate our business with careful thought about our impact on the Filipino customer and community. Our focus is to strike a balance between serving our customers\u2019 needs and aspirations and supporting local economic development, while being mindful of the environment,\u201d he added.
\nAccording to the company\u2019s 2022 sustainability report, it has identified \u201cgreen, inclusive, and resilient\u201d action areas.
\nOne of Filinvest\u2019s green initiatives is to include energy, water, and resource efficiency in the designs of its buildings and townships.
\nThe company has also committed to allocating at least 60% of its projects for open spaces, with parks and natural waterways integrated into the designs.
\n\u201cThe Filinvest group pushes the envelope to being resilient as part of its strategy to ensure long-term ability to generate value, which defines sustainability,\u201d the company said.\u00a0
\n\u201cWe believe in continuous improvement and adaptation to remain competitive in the corporate ESG space. A significant step towards maintaining this mindset is enhancing our sustainability disclosures. Sharing our environmental, social, and governance practices and achievements allow us to build trust among our stakeholders,\u201d Mr. Mulingbayan added.
\nHowever, Sustainable Fitch, a specialist ESG unit of the Fitch Solutions group, said in a report that companies tend to highlight only positive things in their sustainability reports without acknowledging the challenges that could affect their plans.
\nIt said the Philippines remains unable to come out with clear details about its ESG and decarbonization strategies.
\n\u201cA large swathe of people in the Philippines live in poverty and depend on brown-industry jobs to survive, with effective strategies being critical to helping these groups keep up with transition efforts,\u201d the report said.
\nBusiness for Sustainable Development\u2019s Mr. De Castro said conglomerates \u201chave enough resources for ESG-related activities as they have economies of scale.\u201d
\n\u201cOther than that, transformation and change will be difficult because of diversity of interests. Add on to that the existing mental models of leaders and the organization that has to transform as well,\u201d he added.\u00a0
\nRegulators like the Securities and Exchange Commission (SEC) have been introducing policies and guidelines that promote responsible business practices and ESG reporting among companies.
\nThe SEC earlier said it is looking to update its sustainability reporting guidelines to make sustainability reports mandatory for listed companies. \u2014 AHH
\n", "content_text": "COMPANIES are expected to pursue more environmental, social, and governance (ESG) initiatives amid rising climate risks and as the Philippines continues to recover from the coronavirus pandemic.\nMore firms are integrating ESG principles into their operations, said Roderick de Castro, executive director for the Business for Sustainable Development.\n\u201cWhat prompted this is the global call for a worldwide approach to climate change, the pandemic, and regulators adopting an ESG framework for due diligence and audit,\u201d Mr. De Castro said in an e-mail.\nThe coronavirus pandemic showed companies how they can improve the social aspect of their operations, he added.\n\u201cThe pandemic also revealed issues related to gender equality and livelihood programs which companies could further improve on,\u201d he said.\nFor its part, Aboitiz Equity Ventures, Inc. (AEV) said in its 2022 annual report that it would be focusing on improving its sustainability initiatives through risk assessment and strategy development. \nThe company has businesses in power generation, distribution and retail electricity supply, financial services, food manufacturing, real estate, and infrastructure.\n\u201cAs the COVID-19 pandemic risks began to be managed, other risks emerged that shaped the global landscape, including geopolitical tensions that led to soaring inflation and supply chain disruptions. These underscored the importance of a commitment to sustainable business practices,\u201d Ana Margarita N. Hontiveros-Malvar, AEV first vice-president and chief reputation and sustainability officer, said in an e-mail.\n\u201cAboitiz has made strides in making a robust process of group-wide business environmental scanning and scenario planning for risks and opportunities,\u201d she added. \nThe company is also using data science and artificial intelligence to improve its operational efficiency and reduce carbon emissions by approximately 35,000 tons of carbon dioxide equivalent, she said.\nOne of AEV\u2019s environmental initiatives is the implementation conservation efforts by preserving water in its communities through watersheds and rehabilitated rivers and estuaries, she said.\nThe company also spent P521 million to plant 12.44 million trees in 2022, she added.\n\u201cThe workflows adopted have been designed to keep people at the center of our initiatives, with environmental initiatives balanced to meet long-term social equitability,\u201d Ms. Hontiveros-Malvar said. \nAEV also came up with supply chain management strategies for its core businesses.\n\u201cESG risks critical to the supply chain are being reviewed based on supplier compliance requirements that may vary depending on the industry sector where our strategic business units belong,\u201d the company said in the report.\nMeanwhile, Filinvest Development Corp., which has businesses in banking, utilities, real estate, and infrastructure, has invested in digitalization, as well as sustainable designs and building practices by creating \u201cpeople-centric and nature-sensitive\u201d spaces with water security solutions, Filinvest Chief Sustainability Officer Mark Tom Q. Mulingbayan said in an e-mail.\n\u201cWe strive to operate our business with careful thought about our impact on the Filipino customer and community. Our focus is to strike a balance between serving our customers\u2019 needs and aspirations and supporting local economic development, while being mindful of the environment,\u201d he added. \nAccording to the company\u2019s 2022 sustainability report, it has identified \u201cgreen, inclusive, and resilient\u201d action areas.\nOne of Filinvest\u2019s green initiatives is to include energy, water, and resource efficiency in the designs of its buildings and townships. \nThe company has also committed to allocating at least 60% of its projects for open spaces, with parks and natural waterways integrated into the designs.\n\u201cThe Filinvest group pushes the envelope to being resilient as part of its strategy to ensure long-term ability to generate value, which defines sustainability,\u201d the company said.\u00a0\n\u201cWe believe in continuous improvement and adaptation to remain competitive in the corporate ESG space. A significant step towards maintaining this mindset is enhancing our sustainability disclosures. Sharing our environmental, social, and governance practices and achievements allow us to build trust among our stakeholders,\u201d Mr. Mulingbayan added. \nHowever, Sustainable Fitch, a specialist ESG unit of the Fitch Solutions group, said in a report that companies tend to highlight only positive things in their sustainability reports without acknowledging the challenges that could affect their plans.\nIt said the Philippines remains unable to come out with clear details about its ESG and decarbonization strategies.\n\u201cA large swathe of people in the Philippines live in poverty and depend on brown-industry jobs to survive, with effective strategies being critical to helping these groups keep up with transition efforts,\u201d the report said.\nBusiness for Sustainable Development\u2019s Mr. De Castro said conglomerates \u201chave enough resources for ESG-related activities as they have economies of scale.\u201d\n\u201cOther than that, transformation and change will be difficult because of diversity of interests. Add on to that the existing mental models of leaders and the organization that has to transform as well,\u201d he added.\u00a0\nRegulators like the Securities and Exchange Commission (SEC) have been introducing policies and guidelines that promote responsible business practices and ESG reporting among companies.\nThe SEC earlier said it is looking to update its sustainability reporting guidelines to make sustainability reports mandatory for listed companies. \u2014 AHH", "date_published": "2023-09-04T00:21:57+08:00", "date_modified": "2023-09-03T15:01:32+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/vehicles-laptop-supply-chain-representation.jpg", "tags": [ "Adrian H. Halili", "bw36", "Special Reports" ] }, { "id": "https://www.bworldonline.com/?p=543045", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543045/lessons-not-from-the-classroom/", "title": "Lessons not from the classroom\u00a0", "content_html": "By Sherisa P. Nuesa
\nSTRATEGIC maneuvers during crisis times have been truly instructive, especially to boards and leadership teams. In the heat of the recent pandemic, landmark moves included ACEN Corp.\u2019s bold expansion in the renewable energy space (locally and abroad, supported partly and aptly by green financing), Manila Water Co., Inc.\u2019s $500-million sustainability bonds and a strategic alliance with Trident Water Co., as well as Ayala Land, Inc.\u2019s launch of AREIT, Inc., the country\u2019s first real estate investment trust.
\nWhile much has been said about large publicly listed corporations, it is equally worthwhile to delve into the story of a moderately sized listed company, Far Eastern University or FEU. This 95-year-old institution demonstrated resiliency and imagination, even as the whole education space, specifically private schools, faced sweeping challenges then that struck at the very core of their business model. Moreover, these began long before the era of COVID-19.
\nThe legislated transition to K-12 starting in 2016 triggered industry-wide, prolonged (five-year) dips in student enrollments. As bottom lines of affected private schools headed south, the law on free tuition for state colleges and universities quickly followed in 2017. These statutory stresses were compounded by the tidal wave impact of technologies and their concomitant methodologies and processes that schools in the country then were just starting to imbibe.
\nThus, when the pandemic and lockdowns hit, many private colleges and universities were simply caught off guard. In September 2020, the Coordinating Council of Private Educational Associations of the Philippines (COCOPEA) reported that of 756 schools surveyed nationwide, an overwhelming majority registered 20% to 60% declines in enrollment. A few closures happened. How FEU silently navigated through this backdrop has been an interesting learning journey, which can be dubbed as \u201clessons not from the classroom.\u201d \u00a0 \u00a0
\nThe following ideas are not necessarily novel, but in examining prescriptions for a recovery roadmap, a few applied learnings from the past could contribute to a simple refresher course.
\n1. Reinvent a relevant, compelling value proposition as a constant process\u00a0
\nA value proposition, defined by \u201cBlueprint to a Billion\u201d as the fundamental benefit delivered to customers, should outlast any financial crisis. Thus, companies should not freeze in a squeeze, and think as much of a rebound even as firefighting is going on. If an organization is starting to think only now about reigniting growth in this economic upswing, it is probably late. Companies should constantly think of staying ahead of the pack, especially as competitors within and outside most industry playgrounds have multiplied exponentially. Technology innovations, pandemic shocks and supply chain gaps have unleashed thousands of fresh or rehashed players, new entrepreneurs and product and service innovators, online or not. \u201cWork-from-home\u201d or \u201cwork-anywhere\u201d setups have expanded geographical markets. Industries are being reshaped everywhere and more transformations are likely forthcoming.
\nCompanies could reformulate, repackage, redistribute or even totally revamp their products and services, and those who understand their customers intimately will know the value, functional or emotional, as ascribed by the market. They should also be reading signals and readying for the next wave, the next frontier. More than ever, businesses should protect and enhance the current and potential value benefit \u2014 whether in the content or quality, the mode of delivery, the image proposition or the response time. Rethinking one\u2019s fundamental advantage does not stop.
\nEmbracing technology and addressing environmental threats, FEU launched at least three years before the pandemic a leading online learning management system, Canvas, and later added others, both in the academic and administrative spheres. It likewise trained its faculty and students on digital literacy, not without difficulty at first, and set up the support infrastructure as well for both online and blended learning systems.
\nWith keen awareness that students would eventually clamor for the campus experience, the university did not halt school renovations and campus additions either. A senior high school was added in four locations, while construction at FEU Filinvest-Alabang progressed. The Roosevelt schools, acquired in 2016, were also renovated and expanded, and this 90-year-old brand added three campuses to the FEU Group of Schools (now nine school campuses nationwide, plus three joint ventures). And right during the pandemic, key investments were made in the Good Samaritan Colleges in Cabanatuan City and in a nursing school in Brunei, the first foray outside the country.
\n2. Reprioritize strategic risks as paramount\u00a0
\n\u201cA car has brakes so it can run faster.\u201d Make risk analysis a strategic tool. There will always be opportunities even in downturns. Resist the urge to slash costs or alter the growth path simply to conserve cash, without balancing financials against the more impactful threat of eclipsing a hard-earned business advantage. A blemished brand value or one that is no longer as heavily differentiated will take time to recreate. A financial approach is a crucial leg of any strategy, but it is the business strategy, the overall business model, that drives or dictates the financial strategy, not the other way around. Even in the middle of uncertainties, a company can step on the business accelerator, provided the risk threshold boundaries are drawn. Knowing the danger zones (what is the worst that could happen?) and managing them can unlock game-changing, audacious ideas.
\nAt the height of the health crisis, the COCOPEA survey showed that as of September 2020, about 3 million students in the country had not returned to school. The industry saw layoffs and cutbacks in investments and other expenditures. FEU similarly tightened its cost watch, but understood risks beyond operational or financial, and set its course for a strategy-based expansionary response.\u00a0
\n3. Repower leadership through teams and teamwork
\n\u201cNone of us is as smart as all of us,\u201d goes a saying by global author Ken Blanchard. The big ideas and, more importantly, their coordinated and smooth execution can best happen through effective and motivated teams. The level of confidence also rises dramatically when the key functional units are fully in sync. The one at the helm should possess an ability and feel to choose the right leaders around him or her, to form a cohesive team that can execute well. Execution is key, because a vision stays on paper unless it is carried out in the market.
\nFEU attributes its mix of new learning modalities (asynchronous remote lessons, fully online or hybrid applications) to each school group designing and implementing its own system approach. From this empowering policy came experimentations, an Innovation Center and a mastery-based individualized learning enhancement system (called MILES) that was developed in-house. FEU continues to reap benefits from an aligned Board and management stewardship and a reinforced faculty and workforce.\u00a0
\n4. Revisit the organization\u2019s understanding of governance themes
\nCertain governance themes are pervasive and inescapable \u2014 artificial intelligence (AI) or machine learning, DEI (diversity, equity and inclusion), climate change and social missions. Make sure that the organization-wide know-how and articulated policies for these fields go beyond what are prescribed in governance manuals.
\nAI, especially generative AI, and data science, can and should work for us, far more than we can imagine right now. These should be part of boardroom discussions. Gender diversity has demonstrated in certain studies that it can enhance performance in measurable ways, and many have seen it work (including highly respected male champions). Climate impacts have been staring at all of us, with the recent months seeing the hottest temperatures globally, and sea divers witnessing the sad bleaching of valuable corals, even locally. Finally, citizenship duties and social governance must find their way in the business case \u2014 improvement only for the balance sheet is not sustainable for the long haul.
\nAmong the happy accolades for FEU, whose board has three female directors, are World Universities of Real Impact rankings (among the top 100 global innovative universities, for three years in a row); the first academic EDGE Green Building certification in the Philippines; and continuing Golden Arrow Corporate Governance awards. Its FEU Public Policy Center remains a haven for socially relevant topics. The university remained profitable all through the extended crisis years. As early as 2022 and continuing through June 2023, its system-wide enrollment, revenues and net income have already exceeded pre-pandemic levels, an unmistakable rebound.\u00a0
\nIn a wave of recurring volatility and dynamic movements, businesses should also be constantly reimagining and relearning \u2014 unlocking valuable insights, developing fresh knowledge and capabilities, and delivering lasting outcomes.
\n\n
Sherisa P. Nuesa is a board director of Far Eastern University, Manila Water Co., Integrated Micro-Electronics, Inc. and AREIT. She is also a board adviser of Metro Retail Stores Group and Vicsal Development Corp. and a trustee of the Nextgen Organization of Women Corporate Directors.\u00a0 \u00a0
\nHer past directorships include Ayala Land, Inc., ACEN Corp. and ALFM Mutual Funds Group. She also served as chairman and co-founder of the Justice Reform Initiative, and as director of the Institute of Corporate Directors and the Financial Executives Institute of the Philippines (Finex). She was awarded the ING-FINEX CFO of the Year for 2008.
\n", "content_text": "By Sherisa P. Nuesa\nSTRATEGIC maneuvers during crisis times have been truly instructive, especially to boards and leadership teams. In the heat of the recent pandemic, landmark moves included ACEN Corp.\u2019s bold expansion in the renewable energy space (locally and abroad, supported partly and aptly by green financing), Manila Water Co., Inc.\u2019s $500-million sustainability bonds and a strategic alliance with Trident Water Co., as well as Ayala Land, Inc.\u2019s launch of AREIT, Inc., the country\u2019s first real estate investment trust.\nWhile much has been said about large publicly listed corporations, it is equally worthwhile to delve into the story of a moderately sized listed company, Far Eastern University or FEU. This 95-year-old institution demonstrated resiliency and imagination, even as the whole education space, specifically private schools, faced sweeping challenges then that struck at the very core of their business model. Moreover, these began long before the era of COVID-19.\nThe legislated transition to K-12 starting in 2016 triggered industry-wide, prolonged (five-year) dips in student enrollments. As bottom lines of affected private schools headed south, the law on free tuition for state colleges and universities quickly followed in 2017. These statutory stresses were compounded by the tidal wave impact of technologies and their concomitant methodologies and processes that schools in the country then were just starting to imbibe.\nThus, when the pandemic and lockdowns hit, many private colleges and universities were simply caught off guard. In September 2020, the Coordinating Council of Private Educational Associations of the Philippines (COCOPEA) reported that of 756 schools surveyed nationwide, an overwhelming majority registered 20% to 60% declines in enrollment. A few closures happened. How FEU silently navigated through this backdrop has been an interesting learning journey, which can be dubbed as \u201clessons not from the classroom.\u201d \u00a0 \u00a0\nThe following ideas are not necessarily novel, but in examining prescriptions for a recovery roadmap, a few applied learnings from the past could contribute to a simple refresher course.\n1. Reinvent a relevant, compelling value proposition as a constant process\u00a0\nA value proposition, defined by \u201cBlueprint to a Billion\u201d as the fundamental benefit delivered to customers, should outlast any financial crisis. Thus, companies should not freeze in a squeeze, and think as much of a rebound even as firefighting is going on. If an organization is starting to think only now about reigniting growth in this economic upswing, it is probably late. Companies should constantly think of staying ahead of the pack, especially as competitors within and outside most industry playgrounds have multiplied exponentially. Technology innovations, pandemic shocks and supply chain gaps have unleashed thousands of fresh or rehashed players, new entrepreneurs and product and service innovators, online or not. \u201cWork-from-home\u201d or \u201cwork-anywhere\u201d setups have expanded geographical markets. Industries are being reshaped everywhere and more transformations are likely forthcoming.\nCompanies could reformulate, repackage, redistribute or even totally revamp their products and services, and those who understand their customers intimately will know the value, functional or emotional, as ascribed by the market. They should also be reading signals and readying for the next wave, the next frontier. More than ever, businesses should protect and enhance the current and potential value benefit \u2014 whether in the content or quality, the mode of delivery, the image proposition or the response time. Rethinking one\u2019s fundamental advantage does not stop.\nEmbracing technology and addressing environmental threats, FEU launched at least three years before the pandemic a leading online learning management system, Canvas, and later added others, both in the academic and administrative spheres. It likewise trained its faculty and students on digital literacy, not without difficulty at first, and set up the support infrastructure as well for both online and blended learning systems.\nWith keen awareness that students would eventually clamor for the campus experience, the university did not halt school renovations and campus additions either. A senior high school was added in four locations, while construction at FEU Filinvest-Alabang progressed. The Roosevelt schools, acquired in 2016, were also renovated and expanded, and this 90-year-old brand added three campuses to the FEU Group of Schools (now nine school campuses nationwide, plus three joint ventures). And right during the pandemic, key investments were made in the Good Samaritan Colleges in Cabanatuan City and in a nursing school in Brunei, the first foray outside the country.\n2. Reprioritize strategic risks as paramount\u00a0\n\u201cA car has brakes so it can run faster.\u201d Make risk analysis a strategic tool. There will always be opportunities even in downturns. Resist the urge to slash costs or alter the growth path simply to conserve cash, without balancing financials against the more impactful threat of eclipsing a hard-earned business advantage. A blemished brand value or one that is no longer as heavily differentiated will take time to recreate. A financial approach is a crucial leg of any strategy, but it is the business strategy, the overall business model, that drives or dictates the financial strategy, not the other way around. Even in the middle of uncertainties, a company can step on the business accelerator, provided the risk threshold boundaries are drawn. Knowing the danger zones (what is the worst that could happen?) and managing them can unlock game-changing, audacious ideas.\nAt the height of the health crisis, the COCOPEA survey showed that as of September 2020, about 3 million students in the country had not returned to school. The industry saw layoffs and cutbacks in investments and other expenditures. FEU similarly tightened its cost watch, but understood risks beyond operational or financial, and set its course for a strategy-based expansionary response.\u00a0\n3. Repower leadership through teams and teamwork\n\u201cNone of us is as smart as all of us,\u201d goes a saying by global author Ken Blanchard. The big ideas and, more importantly, their coordinated and smooth execution can best happen through effective and motivated teams. The level of confidence also rises dramatically when the key functional units are fully in sync. The one at the helm should possess an ability and feel to choose the right leaders around him or her, to form a cohesive team that can execute well. Execution is key, because a vision stays on paper unless it is carried out in the market.\nFEU attributes its mix of new learning modalities (asynchronous remote lessons, fully online or hybrid applications) to each school group designing and implementing its own system approach. From this empowering policy came experimentations, an Innovation Center and a mastery-based individualized learning enhancement system (called MILES) that was developed in-house. FEU continues to reap benefits from an aligned Board and management stewardship and a reinforced faculty and workforce.\u00a0\n4. Revisit the organization\u2019s understanding of governance themes\nCertain governance themes are pervasive and inescapable \u2014 artificial intelligence (AI) or machine learning, DEI (diversity, equity and inclusion), climate change and social missions. Make sure that the organization-wide know-how and articulated policies for these fields go beyond what are prescribed in governance manuals.\nAI, especially generative AI, and data science, can and should work for us, far more than we can imagine right now. These should be part of boardroom discussions. Gender diversity has demonstrated in certain studies that it can enhance performance in measurable ways, and many have seen it work (including highly respected male champions). Climate impacts have been staring at all of us, with the recent months seeing the hottest temperatures globally, and sea divers witnessing the sad bleaching of valuable corals, even locally. Finally, citizenship duties and social governance must find their way in the business case \u2014 improvement only for the balance sheet is not sustainable for the long haul.\nAmong the happy accolades for FEU, whose board has three female directors, are World Universities of Real Impact rankings (among the top 100 global innovative universities, for three years in a row); the first academic EDGE Green Building certification in the Philippines; and continuing Golden Arrow Corporate Governance awards. Its FEU Public Policy Center remains a haven for socially relevant topics. The university remained profitable all through the extended crisis years. As early as 2022 and continuing through June 2023, its system-wide enrollment, revenues and net income have already exceeded pre-pandemic levels, an unmistakable rebound.\u00a0\nIn a wave of recurring volatility and dynamic movements, businesses should also be constantly reimagining and relearning \u2014 unlocking valuable insights, developing fresh knowledge and capabilities, and delivering lasting outcomes.\n \nSherisa P. Nuesa is a board director of Far Eastern University, Manila Water Co., Integrated Micro-Electronics, Inc. and AREIT. She is also a board adviser of Metro Retail Stores Group and Vicsal Development Corp. and a trustee of the Nextgen Organization of Women Corporate Directors.\u00a0 \u00a0\nHer past directorships include Ayala Land, Inc., ACEN Corp. and ALFM Mutual Funds Group. She also served as chairman and co-founder of the Justice Reform Initiative, and as director of the Institute of Corporate Directors and the Financial Executives Institute of the Philippines (Finex). She was awarded the ING-FINEX CFO of the Year for 2008.", "date_published": "2023-09-04T00:20:56+08:00", "date_modified": "2023-09-03T15:01:38+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/men-riding-row-boat.jpg", "tags": [ "bw36", "Sherisa P. Nuesa", "Special Reports" ], "summary": "STRATEGIC maneuvers during crisis times have been truly instructive, especially to boards and leadership teams. In the heat of the recent pandemic, landmark moves included ACEN Corp.\u2019s bold expansion in the renewable energy space (locally and abroad, supported partly and aptly by green financing), Manila Water Co., Inc.\u2019s $500-million sustainability bonds and a strategic alliance with Trident Water Co., as well as Ayala Land, Inc.\u2019s launch of AREIT, Inc., the country\u2019s first real estate investment trust." }, { "id": "https://www.bworldonline.com/?p=543044", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543044/small-businesses-embrace-technology-to-stay-competitive-in-face-of-risks/", "title": "Small businesses embrace technology to stay competitive in face of risks", "content_html": "By Miguel Hanz L. Antivola
\nTHE micro, small, and medium enterprise (MSME) and startup ecosystem is becoming more attuned to the need for adaptability and sustainability by assigning more weight to lean, efficient operations, industry experts said, noting that the realignment of priorities is becoming more pronounced as tough times loom.
\n\u201cWith so much global uncertainty, everybody is back to their conservative stance,\u201d Dan I. Siazon, co-founder and senior vice-president of venture capital firm Kickstart Ventures, Inc., told BusinessWorld. \u201cThe challenge is to go beyond that and seek opportunity.\u201d
\nThe Asian Development Bank (ADB) \u00a0reported that 73.1% of Philippine MSMEs faced a sharp drop in domestic demand and operational standstills due to the quarantine imposed at the onset of COVID-19. While businesses continue to deal with the tail end of the crisis, new challenges have emerged in the form of supply chain disruptions caused by the Russia-Ukraine war, as well as surging oil and food prices.
\n\u201cMany businesses are under pressure to address cost management, pricing dynamics, supply chain diversification, and alternative ways to be creative and productive,\u201d according to Rosemarie B. Ong, chairman of the Philippine Retailers Association (PRA), who also cited the impact of the adverse inflationary environment.
\n\u201cThey don\u2019t want to pass on the costs to the price-sensitive consumer, while maintaining profitability,\u201d she added.
\nThese enterprises have recalibrated to recognize the need for transformation appropriate for the times, reimagining workflows and offerings to become more sustainably competitive. From leveraging e-commerce platforms to implementing automation, MSMEs have embraced technology as a key enabler of an efficient resurgence.
\n\u201cThere is an awakening,\u201d according to Jason Christian Gaguan, co-founder of market insights startup Agile Data Solutions, Inc. and assistant vice-president for commercial at SM Supermalls, referring to MSMEs and startups. \u201cI\u2019m excited about it because everyone now is starting to innovate, which is good for the ecosystem.\u201d
\n\u201cWhat we\u2019ve seen now is as we go back to normal and embrace new technology, it\u2019s really more of adapting,\u201d Ms. Ong said on the MSME recovery. \u201cSo they can leverage new avenues for their marketing and sales (to become more efficient).\u201d
\nMSMEs are the backbone of the economy \u2014 accounting for 99.58% of all business establishments, 63% of the workforce, and 40% of gross domestic product, according to the Philippine Statistics Authority (PSA) and the Department of Trade and Industry (DTI). Small businesses created 5,461,731 jobs and generated P2.09 billion in sales in 2021.
\nAccording to the 2023 World Competitiveness Yearbook of the International Institute for Management Development (IMD), the Philippines was 52nd out of 64 economies, down from 48th in 2022. This year marked the sixth straight time the Philippines was in 13th place out of 14 economies in the Asia-Pacific. The yearbook\u2019s ranking of business efficiency put the Philippines at 40th, from 39th last year.
The Philippines dropped two places to 59th out of 100 the countries in the 2023 edition of the Global Startup Ecosystem Index compiled by research house StartupBlink. With a score of 2.469, the Philippines remained the seventh-worst scoring country in the Asia-Pacific.
\nHow do MSMEs and startups innovate and compete while in survival mode? Where should their focus be directed while dealing with the dynamic environment?
\n
BACK TO BASICS
\nMs. Ong said MSMEs are starting to explore more local sourcing instead of relying on imports as a means of lowering costs.
\u201cMany domestic suppliers are being supported to create a resilient supply chain,\u201d Ms. Ong said. \u201c(MSMEs) are performing this balancing act of managing their expenses while continuing to grow revenue.\u201d
\nIn these conditions, scaling down has become a plausible option for some. The former growth mindset has had to be dialed down in favor of sustainability, according to social entertainment and livestreaming platform kumu.
\n\u201cWe had to adjust our growth expectations and ambitions to a timeline of three to five years instead of 12 to 18 months,\u201d according to Rexy Josh L. Dorado, co-founder and president of kumu. \u201cThis required focusing on cost optimization, scaling back infrastructure, and finding a pathway to profitability.\u201d
\nA reassessment of strategy becomes necessary to keep up with the market, as investment wanes in Southeast Asia after an uptick in 2021, according to Deal Street Asia and Kickstart Ventures. The first quarter of 2022 racked up about $5 billion in deals, down from a peak of $8 billion in the fourth quarter of 2021.
\n\u201cWe had record fundraisings in 2021, and things were looking good in the Philippines, \u201d Mr. Siazon said. \u201cThe next year, we were on our way down. And not just in the Philippines.\u201d
\n\u201cAs the threat of the recession looms, people put their money in safer investment vehicles,\u201d he added, as businesses rethink their core needs.
\n\u201cProfitability \u2014 that needs to be the goal right now, the true north,\u201d according to Brian P. Cu, chief executive officer and co-founder of hyperlocal e-grocery platform SariSuki. \u201cThe degree of freedom given to a startup today is much smaller than what was given last decade where money was cheap and interest rates were low.\u201d
Mr. Gaguan noted that incentive- and discount-driven business models have begun exiting the scene, due to the unsustainability of a pure focus on growth. Resiliency and self-sufficiency have become the hallmarks of successful businesses.
\n\u201cFor all the previous excitement generated by \u2018sexy metrics\u2019… startups now are becoming more proposition-oriented, which I think is a good direction,\u201d Mr. Gaguan said. \u201cAnd smaller startups have a chance at getting funded.\u201d
\n\u201cIt\u2019s no longer just a story of selling fantastic growth at the expense of basic financials,\u201d Mr. Siazon said. \u201cGenerally, growth used to be sustained by throwing money at things \u2014 the topline grows, but your margins don\u2019t make sense.\u201d
\n\u201cThat expectation has changed. The unit economics must make sense now,\u201d he said, adding that businesses need to go back to the basics like product-market fit and a realistic profitability and self-sufficiency time frame.
\n\u201cCompetitiveness is achieved by just getting the basics right. If you get the basics right, you\u2019re already far ahead of your peers,\u201d he said.
\nDIGITAL TRANSFORMATION
\nDigital transformation continues to open up new ways for MSMEs and startups to be viable, but they also raise some concerns.
With full implementation by 2030, digital technology could create up to P5 trillion in economic value, equivalent to about 27% of GDP in 2020, according to a study conducted by global tech advisory firm Access Partnership and commissioned by Google. This requires the Philippines to embrace digital skills training and education, accelerate digital adoption and innovation, and tap opportunities for digital trade.
\nThe pandemic \u201cforced everybody to learn how to use their mobile apps. Nothing like a life-death crisis to really burn things into your system,\u201d Mr. Siazon said, noting the increased adoption of e-commerce and e-wallets.
\nPresident Ferdinand R. Marcos, Jr. said in his second State of the Nation Address that digital payments accounted for 42% of retail payments made in 2022, putting the central bank in position to achieve its target of a 50% digital share of payments by this year.
\n\u201cAs digital wallet usage became much more prevalent, a strong base has been put forward,\u201d Mr. Siazon said. \u201cIt also helped B2C (business to consumer) businesses. Online businesses thrived.\u201d
\nAccording to the GoDaddy 2023 Data Observatory, 62% of Philippine small business respondents make up to half of their annual revenue from online sales channels.
\n\u201cIn just the past months of 2023, there has been a 117% year-on-year surge in the number of sellers joining our platform,\u201d TikTok Philippines said of the growth of its Shop feature. \u201cNotably, within the same timeframe, there was a 53% year-on-year increase in sellers achieving breakeven status, who are poised for more long-term success.\u201d
\nBuilding community viewership through more creative campaigns is being touted as a new sales model for businesses, especially those engaged in shoppertainment. The segment is projected to be worth over $1 trillion globally by 2025, according to the Boston Consulting Group.
\nSocial media algorithms and more democratized data analytics have also paved the way for making it easier to operate a small-scale businesses, which can move faster than larger competitors. \u201cData analytics empowers MSMEs to make well-informed decisions due to real-time insights and fast reactions,\u201d Ms. Ong said.
\n\u201cThe difference between a big company and a startup lies in execution. Even though they have the budget, big companies move a little slower,\u201d Mr. Gaguan said. \u201cAs a small team, we can immediately listen to our customers and change.\u201d
\nWhile e-commerce is all the rage, technology is often taken for granted or overestimated, according to SariSuki. \u201cA lot of the communities that we work with \u2014 simply pinning their address on a map, they don\u2019t know how,\u201d Mr. Cu said. \u201cSo we had to make it as simple as possible.\u201d
\nUnderstanding the user demographic and having a good product manager become key to leveraging technology while also making it easy to adopt by stakeholders. Digital literacy initiatives must be pursued to grow the channel.
\n\u201cIt\u2019s a hard thing to do \u2014 to have tech adoption be done by a startup,\u201d according to Manuel Florencio A. Mejia IV, chief commercial officer and co-founder of SariSuki. \u201cThere\u2019s desire. You just need to tap that desire.\u201d
\nThe ultimate technological hurdle might be artificial intelligence (AI), which presents both a threat and an opportunity.
\nThe global AI market is expected to top $407.0 billion by 2027, with a compound annual growth rate of 36.2% during the forecast period of 2022-2027, according to analytics firm MarketsandMarkets. \u201cThis large TAM (total addressable market) leads us to believe that there is significant opportunity for growth and profitability in AI technology,\u201d Brian Dy, head of research at Kickstart, said.
\nAnna Irmina B. Navarrete, co-founder and president of Kickstart, noted the importance of skepticism when assessing TAM, as there are many data providers available online for such information. \u201cIt is very easy to look and be impressed,\u201d she said.
\n\u201cWe must also look at the direction of growth and the trends surrounding the market,\u201d she added, noting that the technology tends to go through a \u201chype cycle\u201d during which the belief spreads in its potential to revolutionize the world.
\nMr. Siazon noted that AI should encourage more efficient business workflow and further exploration of its applicability beyond the initial \u201chyped\u201d fields to arrive at a more sustainable level of doing business.
\n\u201cOver the long run, there\u2019s also an opportunity to liberate people who may otherwise be stuck in that kind of role to explore other potential areas where human creativity cannot be matched by AI,\u201d he said.
\n\u201cWe hope that in a country full of creative talent like the Philippines, they can employ that to expanding their creative abilities. Maybe introduce new areas for people like us to invest in, as well as new industries where the country can excel.\u201d
\n", "content_text": "By Miguel Hanz L. Antivola\nTHE micro, small, and medium enterprise (MSME) and startup ecosystem is becoming more attuned to the need for adaptability and sustainability by assigning more weight to lean, efficient operations, industry experts said, noting that the realignment of priorities is becoming more pronounced as tough times loom.\n\u201cWith so much global uncertainty, everybody is back to their conservative stance,\u201d Dan I. Siazon, co-founder and senior vice-president of venture capital firm Kickstart Ventures, Inc., told BusinessWorld. \u201cThe challenge is to go beyond that and seek opportunity.\u201d\nThe Asian Development Bank (ADB) \u00a0reported that 73.1% of Philippine MSMEs faced a sharp drop in domestic demand and operational standstills due to the quarantine imposed at the onset of COVID-19. While businesses continue to deal with the tail end of the crisis, new challenges have emerged in the form of supply chain disruptions caused by the Russia-Ukraine war, as well as surging oil and food prices.\n\u201cMany businesses are under pressure to address cost management, pricing dynamics, supply chain diversification, and alternative ways to be creative and productive,\u201d according to Rosemarie B. Ong, chairman of the Philippine Retailers Association (PRA), who also cited the impact of the adverse inflationary environment.\n\u201cThey don\u2019t want to pass on the costs to the price-sensitive consumer, while maintaining profitability,\u201d she added.\nThese enterprises have recalibrated to recognize the need for transformation appropriate for the times, reimagining workflows and offerings to become more sustainably competitive. From leveraging e-commerce platforms to implementing automation, MSMEs have embraced technology as a key enabler of an efficient resurgence.\n\u201cThere is an awakening,\u201d according to Jason Christian Gaguan, co-founder of market insights startup Agile Data Solutions, Inc. and assistant vice-president for commercial at SM Supermalls, referring to MSMEs and startups. \u201cI\u2019m excited about it because everyone now is starting to innovate, which is good for the ecosystem.\u201d\n\u201cWhat we\u2019ve seen now is as we go back to normal and embrace new technology, it\u2019s really more of adapting,\u201d Ms. Ong said on the MSME recovery. \u201cSo they can leverage new avenues for their marketing and sales (to become more efficient).\u201d\nMSMEs are the backbone of the economy \u2014 accounting for 99.58% of all business establishments, 63% of the workforce, and 40% of gross domestic product, according to the Philippine Statistics Authority (PSA) and the Department of Trade and Industry (DTI). Small businesses created 5,461,731 jobs and generated P2.09 billion in sales in 2021.\nAccording to the 2023 World Competitiveness Yearbook of the International Institute for Management Development (IMD), the Philippines was 52nd out of 64 economies, down from 48th in 2022. This year marked the sixth straight time the Philippines was in 13th place out of 14 economies in the Asia-Pacific. The yearbook\u2019s ranking of business efficiency put the Philippines at 40th, from 39th last year.\nThe Philippines dropped two places to 59th out of 100 the countries in the 2023 edition of the Global Startup Ecosystem Index compiled by research house StartupBlink. With a score of 2.469, the Philippines remained the seventh-worst scoring country in the Asia-Pacific.\nHow do MSMEs and startups innovate and compete while in survival mode? Where should their focus be directed while dealing with the dynamic environment?\n\nBACK TO BASICS\nMs. Ong said MSMEs are starting to explore more local sourcing instead of relying on imports as a means of lowering costs.\n\u201cMany domestic suppliers are being supported to create a resilient supply chain,\u201d Ms. Ong said. \u201c(MSMEs) are performing this balancing act of managing their expenses while continuing to grow revenue.\u201d\nIn these conditions, scaling down has become a plausible option for some. The former growth mindset has had to be dialed down in favor of sustainability, according to social entertainment and livestreaming platform kumu.\n\u201cWe had to adjust our growth expectations and ambitions to a timeline of three to five years instead of 12 to 18 months,\u201d according to Rexy Josh L. Dorado, co-founder and president of kumu. \u201cThis required focusing on cost optimization, scaling back infrastructure, and finding a pathway to profitability.\u201d\nA reassessment of strategy becomes necessary to keep up with the market, as investment wanes in Southeast Asia after an uptick in 2021, according to Deal Street Asia and Kickstart Ventures. The first quarter of 2022 racked up about $5 billion in deals, down from a peak of $8 billion in the fourth quarter of 2021.\n\u201cWe had record fundraisings in 2021, and things were looking good in the Philippines, \u201d Mr. Siazon said. \u201cThe next year, we were on our way down. And not just in the Philippines.\u201d\n\u201cAs the threat of the recession looms, people put their money in safer investment vehicles,\u201d he added, as businesses rethink their core needs.\n\u201cProfitability \u2014 that needs to be the goal right now, the true north,\u201d according to Brian P. Cu, chief executive officer and co-founder of hyperlocal e-grocery platform SariSuki. \u201cThe degree of freedom given to a startup today is much smaller than what was given last decade where money was cheap and interest rates were low.\u201d\nMr. Gaguan noted that incentive- and discount-driven business models have begun exiting the scene, due to the unsustainability of a pure focus on growth. Resiliency and self-sufficiency have become the hallmarks of successful businesses.\n\u201cFor all the previous excitement generated by \u2018sexy metrics\u2019… startups now are becoming more proposition-oriented, which I think is a good direction,\u201d Mr. Gaguan said. \u201cAnd smaller startups have a chance at getting funded.\u201d\n\u201cIt\u2019s no longer just a story of selling fantastic growth at the expense of basic financials,\u201d Mr. Siazon said. \u201cGenerally, growth used to be sustained by throwing money at things \u2014 the topline grows, but your margins don\u2019t make sense.\u201d\n\u201cThat expectation has changed. The unit economics must make sense now,\u201d he said, adding that businesses need to go back to the basics like product-market fit and a realistic profitability and self-sufficiency time frame.\n\u201cCompetitiveness is achieved by just getting the basics right. If you get the basics right, you\u2019re already far ahead of your peers,\u201d he said.\nDIGITAL TRANSFORMATION\nDigital transformation continues to open up new ways for MSMEs and startups to be viable, but they also raise some concerns.\nWith full implementation by 2030, digital technology could create up to P5 trillion in economic value, equivalent to about 27% of GDP in 2020, according to a study conducted by global tech advisory firm Access Partnership and commissioned by Google. This requires the Philippines to embrace digital skills training and education, accelerate digital adoption and innovation, and tap opportunities for digital trade.\nThe pandemic \u201cforced everybody to learn how to use their mobile apps. Nothing like a life-death crisis to really burn things into your system,\u201d Mr. Siazon said, noting the increased adoption of e-commerce and e-wallets.\nPresident Ferdinand R. Marcos, Jr. said in his second State of the Nation Address that digital payments accounted for 42% of retail payments made in 2022, putting the central bank in position to achieve its target of a 50% digital share of payments by this year.\n\u201cAs digital wallet usage became much more prevalent, a strong base has been put forward,\u201d Mr. Siazon said. \u201cIt also helped B2C (business to consumer) businesses. Online businesses thrived.\u201d\nAccording to the GoDaddy 2023 Data Observatory, 62% of Philippine small business respondents make up to half of their annual revenue from online sales channels.\n\u201cIn just the past months of 2023, there has been a 117% year-on-year surge in the number of sellers joining our platform,\u201d TikTok Philippines said of the growth of its Shop feature. \u201cNotably, within the same timeframe, there was a 53% year-on-year increase in sellers achieving breakeven status, who are poised for more long-term success.\u201d\nBuilding community viewership through more creative campaigns is being touted as a new sales model for businesses, especially those engaged in shoppertainment. The segment is projected to be worth over $1 trillion globally by 2025, according to the Boston Consulting Group.\nSocial media algorithms and more democratized data analytics have also paved the way for making it easier to operate a small-scale businesses, which can move faster than larger competitors. \u201cData analytics empowers MSMEs to make well-informed decisions due to real-time insights and fast reactions,\u201d Ms. Ong said.\n\u201cThe difference between a big company and a startup lies in execution. Even though they have the budget, big companies move a little slower,\u201d Mr. Gaguan said. \u201cAs a small team, we can immediately listen to our customers and change.\u201d\nWhile e-commerce is all the rage, technology is often taken for granted or overestimated, according to SariSuki. \u201cA lot of the communities that we work with \u2014 simply pinning their address on a map, they don\u2019t know how,\u201d Mr. Cu said. \u201cSo we had to make it as simple as possible.\u201d\nUnderstanding the user demographic and having a good product manager become key to leveraging technology while also making it easy to adopt by stakeholders. Digital literacy initiatives must be pursued to grow the channel.\n\u201cIt\u2019s a hard thing to do \u2014 to have tech adoption be done by a startup,\u201d according to Manuel Florencio A. Mejia IV, chief commercial officer and co-founder of SariSuki. \u201cThere\u2019s desire. You just need to tap that desire.\u201d\nThe ultimate technological hurdle might be artificial intelligence (AI), which presents both a threat and an opportunity.\nThe global AI market is expected to top $407.0 billion by 2027, with a compound annual growth rate of 36.2% during the forecast period of 2022-2027, according to analytics firm MarketsandMarkets. \u201cThis large TAM (total addressable market) leads us to believe that there is significant opportunity for growth and profitability in AI technology,\u201d Brian Dy, head of research at Kickstart, said.\nAnna Irmina B. Navarrete, co-founder and president of Kickstart, noted the importance of skepticism when assessing TAM, as there are many data providers available online for such information. \u201cIt is very easy to look and be impressed,\u201d she said.\n\u201cWe must also look at the direction of growth and the trends surrounding the market,\u201d she added, noting that the technology tends to go through a \u201chype cycle\u201d during which the belief spreads in its potential to revolutionize the world.\nMr. Siazon noted that AI should encourage more efficient business workflow and further exploration of its applicability beyond the initial \u201chyped\u201d fields to arrive at a more sustainable level of doing business.\n\u201cOver the long run, there\u2019s also an opportunity to liberate people who may otherwise be stuck in that kind of role to explore other potential areas where human creativity cannot be matched by AI,\u201d he said.\n\u201cWe hope that in a country full of creative talent like the Philippines, they can employ that to expanding their creative abilities. Maybe introduce new areas for people like us to invest in, as well as new industries where the country can excel.\u201d", "date_published": "2023-09-04T00:19:56+08:00", "date_modified": "2023-09-03T15:01:42+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/small-business.jpg", "tags": [ "bw36", "Miguel Hanz L. Antivola", "Special Reports" ], "summary": "THE micro, small, and medium enterprise (MSME) and startup ecosystem is becoming more attuned to the need for adaptability and sustainability by assigning more weight to lean, efficient operations, industry experts said, noting that the realignment of priorities is becoming more pronounced as tough times loom." }, { "id": "https://www.bworldonline.com/?p=543020", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543020/jack-be-nimble-hoteliers-keep-best-practices-as-covid-wanes/", "title": "Jack be nimble: Hoteliers keep best practices as COVID wanes", "content_html": "By Joseph Emmanuel L. Garcia, Senior Reporter
\nAFTER stagnation throughout the years of the coronavirus disease 2019 (COVID-19) pandemic, hotels around the country are showing optimism for the hospitality industry, with some developers about to open, or have just opened, new properties. Meanwhile, established hotels are retaining pandemic-borne safety practices, as well as utilizing online and remote capabilities that became a necessity during the worst days of the pandemic.
\nWhen the first lockdowns were announced in March 2020, several hotels evacuated guests to conform to government lockdown policies. After the initial evacuation, some hotels were used as quarantine facilities for health workers and repatriated overseas Filipino workers (OFWs). The Chroma Hospitality group, under the Filinvest Hospitality Corp., offered its facilities for this purpose. The Chroma Hospitality group includes the Crimson Hotels in Mactan, Boracay, and Alabang, as well as the Quest Hotels in Clark, Tagaytay, and Cebu. They are slated to open a new property in Baguio either late in 2024 or early in 2025.
\n\u201cThe pandemic has taught us to be resilient,\u201d said Carmela Bocanegra, vice-president for Sales and Marketing for Chroma Hospitality in an interview with BusinessWorld. \u201cEven during the pandemic, all our hotels were open, actually, because we were serving the OWWA (Overseas Workers Welfare Administration),\u201d she said. \u201cWe had to be flexible with our rates, help each other, help the government. Iyon ang bumuhay sa amin eh (that\u2019s what enabled us to live).\u201d
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S6-4-2023-AR-09.04.23-FINAL-infog2.jpg\")
To this day, they still apply the sanitation practices made a necessity by the pandemic, such as the frequent handwashing (they have dispensed with masks). She said that they had internally published a cleaning manual that was different from their normal cleaning operations from before the pandemic. New rules include holding rooms for a few hours after their cleaning before handing the keys to the next guest, as a health and safety precaution.
George Reynoso, director of Rooms for Diamond Hotel Philippines (a hotel which was also used as a quarantine facility, according to the website of the Bureau of Quarantine) sees a vestige of the pandemic in the continued requests for quarantine accommodations. \u201cAt the start of this year, we no longer accommodated quarantine guests even if we still had a number of requests,\u201d he said in an e-mail to BusinessWorld.
\nTHINGS ARE LOOKING UP
\nBoth the Diamond Hotel and Chroma Hospitality use 2019, the last year before the lockdowns, to gauge their performance. Mr. Reynoso said, \u201cOccupancy, rates, and profits have not reached what we achieved in 2019 because international tourism is not the same as pre-pandemic times, but the hotel\u2019s performance is still better than what we expected.\u201d Ms. Bocanegra gave a similar answer, saying, \u201cThe international market is not yet 100% there, but slowly, it\u2019s coming in… We compare it to the last normal year before the pandemic, 2019. We\u2019re almost there. That\u2019s our gauge… of course, we\u2019re targeting bigger than that.\u201d
She added that the properties in resort locations (as opposed to the city-based hotels) are doing better at reaching their 2019 targets. \u201cThe domestic market is really full throttle. It\u2019s there; they\u2019re traveling, and they\u2019re going places.\u201d
\nThis can be seen in the Discovery Hospitality group\u2019s newly opened property in Samal Island in Mindanao, Discovery Samal. Situated on six hectares of land, the resort offers luxury accommodation as well as a convention center that can seat 1,200 people. \u201cFrom the point of view of sales, foreign travelers are now coming back, and also the revenge of the domestic travelers,\u201d said Dianne Santos, director of Sales for Discovery Samal.
\nMs. Santos noted that since the pandemic, they have used more video conferencing tools for practical reasons, such as touring the property virtually. \u201cNot a lot of people can go to Samal and the property… now we can do virtual tours,\u201d she said. \u201cBefore, it wasn\u2019t a thing.\u201d
\nMelco Resorts and Entertainment\u2019s property in Manila, City of Dreams, consists of three hotels: the Hyatt Regency Manila, Nobu Hotel, and N\u00fcwa Manila. Of these, N\u00fcwa is also on the Bureau of Quarantine\u2019s list of accredited quarantine facilities. Geoff Andres, property president of City of Dreams Manila told BusinessWorld in an e-mail, \u201cWith our operations in full swing, the occupancy of all City of Dreams Manila\u2019s three hotels are in the high 90s, back to pre-pandemic levels. Our F&B outlets, ballroom, and entertainment venues such as DreamPlay are also performing remarkably.\u201d
\nGOING ONLINE, UPGRADING
\nMr. Andres detailed the recognitions they received for the safety and health measures they had undertaken during the pandemic: \u201cWe instituted stringent sanitary measures during the pandemic. These efforts enabled us to be Safety Seal-certified by the Department of Tourism, which also presented us with the Safe Travels stamp of the World Travel and Tourism Council. Our three hotels were also recognized by international hygiene experts for the initiatives we undertook.\u201d
City of Dreams Manila also concentrated on placing many of their services and operations online. \u201cWe also focused on digitizing and streamlining processes in operations, harnessing technology in our supply chain procurement systems, and using technology to make our products, services, and reservations more accessible to our guests, such as the use of the dynamic Melco app,\u201d said Mr. Andres.
\nOther improvements to their operations include sourcing sustainable ingredients for their restaurants, a reduction in the use of single-use plastics (through the installation of a glass bottling and water filtration system and replacing food and beverage containers and utensils with sustainable alternatives). \u201cAs we sustain the initiative, we are currently reaching about 30-40% waste reduction and waste diversion,\u201d he said.
\nMeanwhile, The Diamond Hotel has implemented some structural changes: they have improved their heating, ventilation, and air-conditioning (HVAC) system (\u201calready installed so we have better ventilation and air exchange rates,\u201d said Mr. Reynoso). He added, \u201cWe installed vents in all bathroom doors so that the increased ventilation will cover the entire room.\u201d
\nThe Diamond Hotel has also retained the use of online facilities, which became necessities during the pandemic when person-to-person contact had to be reduced. These include contactless web check-in and check-out, and more options for online payments. \u201cThe hotel also continues to capitalize on its existing e-commerce website \u2014 Diamond Online Shopping Site, with offers to further expand the food take-out operations and by developing creative online marketing strategies to engage existing and potential customers,\u201d said Mr. Reynoso. He also pointed out that the website has been operating since 2015, \u201cwhich made it easier to transition to online selling of Diamond Hotel\u2019s culinary specialties since the restaurants (were) not allowed to operate on full capacity (during the lockdowns).\u201d
\nThese same practices extend internally, with Mr. Reynoso saying, \u201cOptions for meeting on-line/off-site instead of face to face are still valuable even if there is renewed interest in holding meetings face-to-face.\u201d
\nKEEPING EMPLOYEES
\nOn the subject of workers, Ms. Santos said that in her previous job (prior to joining the Discovery group), she performed the task of three people due to layoffs, resignations, and the like. \u201cNow, what I see, it\u2019s really hard to look for people now, because they have the option to work from home. People now are looking for that kind of arrangement. People are moving to a hybrid work arrangement, which is hard for hoteliers like us (who cannot) work from home. We really have to be onsite to be with our clients and guests.\u201d
As for City of Dreams Manila, the property won the Work Here, Work Happy award from the Forbes Travel Guide in 2022.\u00a0 Initiatives to help workers during the pandemic included giving financial assistance through paid leaves from April 2020 to December 2021 to those unable to work; giving bonuses and providing in-house accommodations, full meals, and vitamins to workers who were required to work during community quarantines; and providing assistance for colleagues\u2019 vaccination needs, including offering two-way limo services for pregnant employees.
\nMr. Andres added, \u201cWe took the pandemic as an opportunity to further train colleagues through our own learning academy called Melco Absorb, where various courses and programs are continuing and available non-stop. Qualified managers were also enrolled in ECornell courses for free. We promoted colleagues and prioritized internal over external hiring.\u201d
\n\u201cI think it\u2019s an industry problem, until now,\u201d said Chroma Hospitality\u2019s Ms. Bocanegra, reporting resignations and reshuffling at work. \u201cWe\u2019ve had some problems there, but I wouldn\u2019t say it\u2019s really that much.
\n\u201cThe way to do it is just really be more competitive. Instead of thinking of the negativities, we just have to move forward and look for more people. Encourage more fresh graduates, and training \u2014 in our properties, training and mentoring are very important. I think that\u2019s where we should move forward.\u201d
\n", "content_text": "By Joseph Emmanuel L. Garcia, Senior Reporter\nAFTER stagnation throughout the years of the coronavirus disease 2019 (COVID-19) pandemic, hotels around the country are showing optimism for the hospitality industry, with some developers about to open, or have just opened, new properties. Meanwhile, established hotels are retaining pandemic-borne safety practices, as well as utilizing online and remote capabilities that became a necessity during the worst days of the pandemic.\nWhen the first lockdowns were announced in March 2020, several hotels evacuated guests to conform to government lockdown policies. After the initial evacuation, some hotels were used as quarantine facilities for health workers and repatriated overseas Filipino workers (OFWs). The Chroma Hospitality group, under the Filinvest Hospitality Corp., offered its facilities for this purpose. The Chroma Hospitality group includes the Crimson Hotels in Mactan, Boracay, and Alabang, as well as the Quest Hotels in Clark, Tagaytay, and Cebu. They are slated to open a new property in Baguio either late in 2024 or early in 2025.\n\u201cThe pandemic has taught us to be resilient,\u201d said Carmela Bocanegra, vice-president for Sales and Marketing for Chroma Hospitality in an interview with BusinessWorld. \u201cEven during the pandemic, all our hotels were open, actually, because we were serving the OWWA (Overseas Workers Welfare Administration),\u201d she said. \u201cWe had to be flexible with our rates, help each other, help the government. Iyon ang bumuhay sa amin eh (that\u2019s what enabled us to live).\u201d\nTo this day, they still apply the sanitation practices made a necessity by the pandemic, such as the frequent handwashing (they have dispensed with masks). She said that they had internally published a cleaning manual that was different from their normal cleaning operations from before the pandemic. New rules include holding rooms for a few hours after their cleaning before handing the keys to the next guest, as a health and safety precaution.\nGeorge Reynoso, director of Rooms for Diamond Hotel Philippines (a hotel which was also used as a quarantine facility, according to the website of the Bureau of Quarantine) sees a vestige of the pandemic in the continued requests for quarantine accommodations. \u201cAt the start of this year, we no longer accommodated quarantine guests even if we still had a number of requests,\u201d he said in an e-mail to BusinessWorld.\nTHINGS ARE LOOKING UP\nBoth the Diamond Hotel and Chroma Hospitality use 2019, the last year before the lockdowns, to gauge their performance. Mr. Reynoso said, \u201cOccupancy, rates, and profits have not reached what we achieved in 2019 because international tourism is not the same as pre-pandemic times, but the hotel\u2019s performance is still better than what we expected.\u201d Ms. Bocanegra gave a similar answer, saying, \u201cThe international market is not yet 100% there, but slowly, it\u2019s coming in… We compare it to the last normal year before the pandemic, 2019. We\u2019re almost there. That\u2019s our gauge… of course, we\u2019re targeting bigger than that.\u201d\nShe added that the properties in resort locations (as opposed to the city-based hotels) are doing better at reaching their 2019 targets. \u201cThe domestic market is really full throttle. It\u2019s there; they\u2019re traveling, and they\u2019re going places.\u201d\nThis can be seen in the Discovery Hospitality group\u2019s newly opened property in Samal Island in Mindanao, Discovery Samal. Situated on six hectares of land, the resort offers luxury accommodation as well as a convention center that can seat 1,200 people. \u201cFrom the point of view of sales, foreign travelers are now coming back, and also the revenge of the domestic travelers,\u201d said Dianne Santos, director of Sales for Discovery Samal.\nMs. Santos noted that since the pandemic, they have used more video conferencing tools for practical reasons, such as touring the property virtually. \u201cNot a lot of people can go to Samal and the property… now we can do virtual tours,\u201d she said. \u201cBefore, it wasn\u2019t a thing.\u201d\nMelco Resorts and Entertainment\u2019s property in Manila, City of Dreams, consists of three hotels: the Hyatt Regency Manila, Nobu Hotel, and N\u00fcwa Manila. Of these, N\u00fcwa is also on the Bureau of Quarantine\u2019s list of accredited quarantine facilities. Geoff Andres, property president of City of Dreams Manila told BusinessWorld in an e-mail, \u201cWith our operations in full swing, the occupancy of all City of Dreams Manila\u2019s three hotels are in the high 90s, back to pre-pandemic levels. Our F&B outlets, ballroom, and entertainment venues such as DreamPlay are also performing remarkably.\u201d\nGOING ONLINE, UPGRADING\nMr. Andres detailed the recognitions they received for the safety and health measures they had undertaken during the pandemic: \u201cWe instituted stringent sanitary measures during the pandemic. These efforts enabled us to be Safety Seal-certified by the Department of Tourism, which also presented us with the Safe Travels stamp of the World Travel and Tourism Council. Our three hotels were also recognized by international hygiene experts for the initiatives we undertook.\u201d\nCity of Dreams Manila also concentrated on placing many of their services and operations online. \u201cWe also focused on digitizing and streamlining processes in operations, harnessing technology in our supply chain procurement systems, and using technology to make our products, services, and reservations more accessible to our guests, such as the use of the dynamic Melco app,\u201d said Mr. Andres. \nOther improvements to their operations include sourcing sustainable ingredients for their restaurants, a reduction in the use of single-use plastics (through the installation of a glass bottling and water filtration system and replacing food and beverage containers and utensils with sustainable alternatives). \u201cAs we sustain the initiative, we are currently reaching about 30-40% waste reduction and waste diversion,\u201d he said.\nMeanwhile, The Diamond Hotel has implemented some structural changes: they have improved their heating, ventilation, and air-conditioning (HVAC) system (\u201calready installed so we have better ventilation and air exchange rates,\u201d said Mr. Reynoso). He added, \u201cWe installed vents in all bathroom doors so that the increased ventilation will cover the entire room.\u201d\nThe Diamond Hotel has also retained the use of online facilities, which became necessities during the pandemic when person-to-person contact had to be reduced. These include contactless web check-in and check-out, and more options for online payments. \u201cThe hotel also continues to capitalize on its existing e-commerce website \u2014 Diamond Online Shopping Site, with offers to further expand the food take-out operations and by developing creative online marketing strategies to engage existing and potential customers,\u201d said Mr. Reynoso. He also pointed out that the website has been operating since 2015, \u201cwhich made it easier to transition to online selling of Diamond Hotel\u2019s culinary specialties since the restaurants (were) not allowed to operate on full capacity (during the lockdowns).\u201d\nThese same practices extend internally, with Mr. Reynoso saying, \u201cOptions for meeting on-line/off-site instead of face to face are still valuable even if there is renewed interest in holding meetings face-to-face.\u201d\nKEEPING EMPLOYEES\nOn the subject of workers, Ms. Santos said that in her previous job (prior to joining the Discovery group), she performed the task of three people due to layoffs, resignations, and the like. \u201cNow, what I see, it\u2019s really hard to look for people now, because they have the option to work from home. People now are looking for that kind of arrangement. People are moving to a hybrid work arrangement, which is hard for hoteliers like us (who cannot) work from home. We really have to be onsite to be with our clients and guests.\u201d\nAs for City of Dreams Manila, the property won the Work Here, Work Happy award from the Forbes Travel Guide in 2022.\u00a0 Initiatives to help workers during the pandemic included giving financial assistance through paid leaves from April 2020 to December 2021 to those unable to work; giving bonuses and providing in-house accommodations, full meals, and vitamins to workers who were required to work during community quarantines; and providing assistance for colleagues\u2019 vaccination needs, including offering two-way limo services for pregnant employees.\nMr. Andres added, \u201cWe took the pandemic as an opportunity to further train colleagues through our own learning academy called Melco Absorb, where various courses and programs are continuing and available non-stop. Qualified managers were also enrolled in ECornell courses for free. We promoted colleagues and prioritized internal over external hiring.\u201d\n\u201cI think it\u2019s an industry problem, until now,\u201d said Chroma Hospitality\u2019s Ms. Bocanegra, reporting resignations and reshuffling at work. \u201cWe\u2019ve had some problems there, but I wouldn\u2019t say it\u2019s really that much.\n\u201cThe way to do it is just really be more competitive. Instead of thinking of the negativities, we just have to move forward and look for more people. Encourage more fresh graduates, and training \u2014 in our properties, training and mentoring are very important. I think that\u2019s where we should move forward.\u201d", "date_published": "2023-09-04T00:18:36+08:00", "date_modified": "2023-09-03T14:49:02+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/Android-tablet-computer-hotel.jpg", "tags": [ "bw36", "Joseph Emmanuel L. Garcia", "Special Reports" ], "summary": "AFTER stagnation throughout the years of the coronavirus disease 2019 (COVID-19) pandemic, hotels around the country are showing optimism for the hospitality industry, with some developers about to open, or have just opened, new properties. Meanwhile, established hotels are retaining pandemic-borne safety practices, as well as utilizing online and remote capabilities that became a necessity during the worst days of the pandemic." }, { "id": "https://www.bworldonline.com/?p=543019", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543019/how-technology-helped-retailers-beyond-the-pandemic/", "title": "How technology helped retailers beyond the pandemic", "content_html": "By Revin Mikhael D. Ochave, Reporter
\nTECHNOLOGY has allowed retailers to survive the pandemic while boosting their operations to meet changing consumer behavior. From supermarkets to restaurants, the retail industry has embraced advances in e-commerce, positioning businesses for further growth.
\n\u201cThe sector heavily leveraged various technologies. Retailers integrated user-friendly websites, mobile applications, and secure payment gateways to enhance the customer experience and facilitate seamless transactions,\u201d Rosemarie B. Ong, Philippine Retailers Association (PRA) chairperson, said.
\n\u201cThese adaptations have not only helped retailers survive during the pandemic but have also positioned them for long-term growth and success in the post-pandemic era,\u201d she added.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S6-4-2023-AR-09.04.23-FINAL-infog1.jpg\")
The shift to e-commerce channels ensured faster transactions and better customer experience. \u00a0 \u00a0
\n\u201cRetailers recognized the importance of reaching customers virtually and established robust online platforms to cater to the growing demand for digital shopping experiences,\u201d Ms. Ong said.\u00a0 \u00a0
\nBeyond the pandemic, retailers have moved forward by using technologies such as artificial intelligence (AI), virtual reality (VR), and the Internet of Things (IoT) to ensure profitability in the coming years.
\n\u201cLocal retailers are actively embracing cutting-edge technologies to enhance their business operations and improve efficiency. AI is used to analyze customer data and behavior, enabling personalized offerings and targeted marketing. VR, like virtual dressing rooms, is transforming the retail experience,\u201d Ms. Ong said.
\n\u201cAdditionally, IoT devices are modernizing supply chains and logistics, ensuring efficient product delivery. By staying at the forefront of technological advancements, retailers aim to remain competitive and drive innovation in the industry,\u201d she added. \u00a0 \u00a0
\nEric Teng, president of the Restaurant Owners of the Philippines or RestoPH, said the local restaurant industry turned to technology as a result of the pandemic.\u00a0 \u00a0
\n\u201cWe have new applications that restaurants use all the time like customer service apps and menu apps. There is also AI,\u201d he said. \u201cIt is a new way of doing business, a new way of getting information.\u201d
\n\u201cTechnology will affect many of the reasons why we travel since travel is one of the things that tell us where we eat because when you\u2019re out of [your] home, you eat in the restaurant. That is travel mobility. That is very important with regard to the food industry,\u201d he added.\u00a0 \u00a0
\nData from the Philippine Statistics Authority (PSA) showed that the gross value added in retail trade reached P713.40 billion in the first quarter, up 16% from P615.66 billion a year ago.\u00a0 \u00a0
\nCHANGING CONSUMER BEHAVIOR
\nDennis G. De Jesus, country head for the Philippines of global e-commerce solutions provider Anchanto, said the e-commerce sector has the potential to grow even after the pandemic following the change in consumer behavior.
\u201cThe potential for e-commerce growth is still there because in terms of our experience and consultation with the retail players, what they are saying is that there has been a change in the behavior for a lot of the consumers because they were exposed to the convenience of online shopping during the pandemic,\u201d Mr. De Jesus said.\u00a0 \u00a0
\n\u201cThat particular experience stuck with them and the behavior has suddenly shifted into an omnichannel type of buying behavior wherein they now have the decision and access to buy the things that they need at an online or a physical store. Customers have redefined their buying behavior and pattern before making a purchase decision,\u201d he added.\u00a0 \u00a0
\nMr. De Jesus added that the easiest entry for small businesses to e-commerce is via the leading online marketplaces.\u00a0 \u00a0
\n\u201cAnyone can sell in Lazada, Shopee, and Zalora. There is no hurdle at this point in time. Right now, there is no barrier to entry. I don\u2019t think it is a challenge for small businesses to embark on e-commerce initiatives,\u201d Mr. De Jesus said.\u00a0 \u00a0
\nThe Department of Trade and Industry, citing data from British consulting firm GlobalData, is expecting the e-commerce sector to sustain its growth with a projected annual increase of 15.8% in transaction value from 2022 to 2025.\u00a0 \u00a0
\nIt estimated e-commerce transactions to reach P495.2 billion or $9.7 billion by 2025, higher than nearly P270 billion recorded in 2021.\u00a0 \u00a0
\nLaurice Padlan-Obana, Kantar Philippines Worldpanel Division Consumer and Shopper Insight director, said in a media briefing that Filipinos still prioritize value and convenience when it comes to shopping, as shown in the company\u2019s Shopperscope 2023 report.
\nShe said it is important for shops to make their customers feel that they are spending their money wisely.
\n\u201cPromotions should be offered. The specific kind of promotion that tops their preference would be the price off/discounts,\u201d Ms. Padlan-Obana said.
\n\u201cNow that people are out and about, when they speak about convenience, they also talk about access,\u201d she said.
\nShe said people also talk about longer store hours and nearness to other facilities, which are not necessarily their home. The location should be accessible to public transport and near other stores they visit, she added.\u00a0 \u00a0
\nFilipino consumers are now prioritizing ease of shopping when buying in local shops, Ms. Padlan-Obana said, citing organized shelves and visible promotions.
\n\u201cShopping is already more purposive and [customers] don\u2019t want to waste a lot of time going around the store, at least for a majority of the Filipinos,\u201d she added.\u00a0 \u00a0
\nRECOVERY PROSPECTS
\nMeanwhile, PRA\u2019s Ms. Ong said local retailers are cautiously optimistic about the future of the retail sector.\u00a0 \u00a0
\u201cDespite facing challenges such as rising inflation and shifts in consumer spending patterns, the local retail industry remains focused on growth and aims to regain the momentum seen before the pandemic,\u201d Ms. Ong said.\u00a0 \u00a0
\n\u201cRetailers are open to adopting multiple strategies and leveraging different channels to navigate potential headwinds and seize emerging opportunities,\u201d she added. \u00a0 \u00a0
\nRestoPH\u2019s Mr. Teng added that the local restaurant industry is already back to normal following the effects of the pandemic.\u00a0 \u00a0
\n\u201cFor the restaurant [industry], it\u2019s actually back to normal. There is not much memory of the pandemic, although all the protocols became habits. People sanitize and wash their hands. As far as the comfort of people to go out, they are already back. We want normalcy back and we got normal back,\u201d Mr. Teng said. \u00a0 \u00a0
\nHe added that the government should push for stability in the food supply to avoid disruptions.\u00a0 \u00a0
\n\u201cGenerally, we need more stability in everything. If things keep changing left and right, that\u2019s very hard for businesses to grow. We hope that there is more stability with regard to the food supply,\u201d Mr. Teng said.\u00a0 \u00a0
\nThis year, there have been shortages of either vegetables or major commodities, which have caused disruption, but restaurants have remained focused on recovery, he said. \u00a0 \u00a0
\n\u201cWe just have to deal with it. The only important thing that we learned was that even through the worst crisis, the world survived, the food industry survived,\u201d Mr. Teng said.\u00a0 \u00a0
\n\u201cWe went through it and right now, just like any other crisis, after that, it is recovery,\u201d he said. \u201cWhen it happens, we hope we\u2019re prepared for it but we will focus on the normal.\u201d
\nSteven T. Cua, Philippine Amalgamated Supermarkets Association president, said supermarkets made adjustments after the effects of the pandemic.\u00a0 \u00a0
\n\u201cAs the pandemic slowly released its hold on the economy, supermarkets began sprucing up their merchandise, rationalized merchandise selection, worked on offline sales as online sales receded, and relied on innovative marketing to take the lead in enticing the market back into its doors,\u201d Mr. Cua said.\u00a0 \u00a0
\nHowever, supermarkets have been slow in employing the number of personnel they used to have before the pandemic.
\n\u201cJust visit your favorite supermarket and count the percentage of checkout counters existing compared to pre-COVID days, as well as the percentage of those retained open to service customers. To this day, I see retailers opening only 25% to 66% of retained counters even during rush hour,\u201d Mr. Cua said.\u00a0 \u00a0
\nMr. Cua urged the government to address the rising inflation as prices of grocery items have surged.\u00a0 \u00a0
\n\u201cInflation is one issue the government has to address before it leads to a state of stagflation, which is a deeper hole to get out of. Retail should find relief if prices become more stable and people have jobs and salaries to avail of commodities,\u201d Mr. Cua said.\u00a0 \u00a0
\n\u201cAdditional taxes, increase in salaries, higher power costs, low demand all add up to inflation. Opportunities will be plentiful once the economy relatively stabilizes,\u201d he added.\u00a0 \u00a0
\nBeyond the pandemic, local supermarkets should prepare for the \u201cThe Big One\u201d or a magnitude 7.2 earthquake on the West Valley Fault, he said.\u00a0 \u00a0
\n\u201cWhat we have to prepare for is \u2018The Big One\u2019 just in case it arrives even if it doesn\u2019t during our lifetime. Retain the lessons learned from COVID-19 and always be vigilant of future shocks like this tsunami of a pandemic,\u201d Mr. Cua said.\u00a0 \u00a0
\nMr. Cua added that the government should focus on assisting various industries to support the growth of the retail sector. \u00a0 \u00a0
\n\u201cThe government should provide incentives for the manufacturing industries to invest, reinvest, expand and flourish. This provides employment and fuels a consumer-driven economy. Look after the needs of industry for power and water, physical infrastructure. Get the farmers who supply fresh produce more informed, inclusive and empowered to enjoy the fruits of a growing economy,\u201d he added.
\n", "content_text": "By Revin Mikhael D. Ochave, Reporter\nTECHNOLOGY has allowed retailers to survive the pandemic while boosting their operations to meet changing consumer behavior. From supermarkets to restaurants, the retail industry has embraced advances in e-commerce, positioning businesses for further growth.\n\u201cThe sector heavily leveraged various technologies. Retailers integrated user-friendly websites, mobile applications, and secure payment gateways to enhance the customer experience and facilitate seamless transactions,\u201d Rosemarie B. Ong, Philippine Retailers Association (PRA) chairperson, said.\n\u201cThese adaptations have not only helped retailers survive during the pandemic but have also positioned them for long-term growth and success in the post-pandemic era,\u201d she added.\n\nThe shift to e-commerce channels ensured faster transactions and better customer experience. \u00a0 \u00a0\n\u201cRetailers recognized the importance of reaching customers virtually and established robust online platforms to cater to the growing demand for digital shopping experiences,\u201d Ms. Ong said.\u00a0 \u00a0\nBeyond the pandemic, retailers have moved forward by using technologies such as artificial intelligence (AI), virtual reality (VR), and the Internet of Things (IoT) to ensure profitability in the coming years.\n\u201cLocal retailers are actively embracing cutting-edge technologies to enhance their business operations and improve efficiency. AI is used to analyze customer data and behavior, enabling personalized offerings and targeted marketing. VR, like virtual dressing rooms, is transforming the retail experience,\u201d Ms. Ong said. \n\u201cAdditionally, IoT devices are modernizing supply chains and logistics, ensuring efficient product delivery. By staying at the forefront of technological advancements, retailers aim to remain competitive and drive innovation in the industry,\u201d she added. \u00a0 \u00a0\nEric Teng, president of the Restaurant Owners of the Philippines or RestoPH, said the local restaurant industry turned to technology as a result of the pandemic.\u00a0 \u00a0\n\u201cWe have new applications that restaurants use all the time like customer service apps and menu apps. There is also AI,\u201d he said. \u201cIt is a new way of doing business, a new way of getting information.\u201d\n\u201cTechnology will affect many of the reasons why we travel since travel is one of the things that tell us where we eat because when you\u2019re out of [your] home, you eat in the restaurant. That is travel mobility. That is very important with regard to the food industry,\u201d he added.\u00a0 \u00a0\nData from the Philippine Statistics Authority (PSA) showed that the gross value added in retail trade reached P713.40 billion in the first quarter, up 16% from P615.66 billion a year ago.\u00a0 \u00a0\nCHANGING CONSUMER BEHAVIOR\nDennis G. De Jesus, country head for the Philippines of global e-commerce solutions provider Anchanto, said the e-commerce sector has the potential to grow even after the pandemic following the change in consumer behavior.\n\u201cThe potential for e-commerce growth is still there because in terms of our experience and consultation with the retail players, what they are saying is that there has been a change in the behavior for a lot of the consumers because they were exposed to the convenience of online shopping during the pandemic,\u201d Mr. De Jesus said.\u00a0 \u00a0\n\u201cThat particular experience stuck with them and the behavior has suddenly shifted into an omnichannel type of buying behavior wherein they now have the decision and access to buy the things that they need at an online or a physical store. Customers have redefined their buying behavior and pattern before making a purchase decision,\u201d he added.\u00a0 \u00a0\nMr. De Jesus added that the easiest entry for small businesses to e-commerce is via the leading online marketplaces.\u00a0 \u00a0\n\u201cAnyone can sell in Lazada, Shopee, and Zalora. There is no hurdle at this point in time. Right now, there is no barrier to entry. I don\u2019t think it is a challenge for small businesses to embark on e-commerce initiatives,\u201d Mr. De Jesus said.\u00a0 \u00a0\nThe Department of Trade and Industry, citing data from British consulting firm GlobalData, is expecting the e-commerce sector to sustain its growth with a projected annual increase of 15.8% in transaction value from 2022 to 2025.\u00a0 \u00a0\nIt estimated e-commerce transactions to reach P495.2 billion or $9.7 billion by 2025, higher than nearly P270 billion recorded in 2021.\u00a0 \u00a0\nLaurice Padlan-Obana, Kantar Philippines Worldpanel Division Consumer and Shopper Insight director, said in a media briefing that Filipinos still prioritize value and convenience when it comes to shopping, as shown in the company\u2019s Shopperscope 2023 report. \nShe said it is important for shops to make their customers feel that they are spending their money wisely.\n\u201cPromotions should be offered. The specific kind of promotion that tops their preference would be the price off/discounts,\u201d Ms. Padlan-Obana said.\n\u201cNow that people are out and about, when they speak about convenience, they also talk about access,\u201d she said.\nShe said people also talk about longer store hours and nearness to other facilities, which are not necessarily their home. The location should be accessible to public transport and near other stores they visit, she added.\u00a0 \u00a0\nFilipino consumers are now prioritizing ease of shopping when buying in local shops, Ms. Padlan-Obana said, citing organized shelves and visible promotions.\n\u201cShopping is already more purposive and [customers] don\u2019t want to waste a lot of time going around the store, at least for a majority of the Filipinos,\u201d she added.\u00a0 \u00a0\nRECOVERY PROSPECTS\nMeanwhile, PRA\u2019s Ms. Ong said local retailers are cautiously optimistic about the future of the retail sector.\u00a0 \u00a0\n\u201cDespite facing challenges such as rising inflation and shifts in consumer spending patterns, the local retail industry remains focused on growth and aims to regain the momentum seen before the pandemic,\u201d Ms. Ong said.\u00a0 \u00a0\n\u201cRetailers are open to adopting multiple strategies and leveraging different channels to navigate potential headwinds and seize emerging opportunities,\u201d she added. \u00a0 \u00a0\nRestoPH\u2019s Mr. Teng added that the local restaurant industry is already back to normal following the effects of the pandemic.\u00a0 \u00a0\n\u201cFor the restaurant [industry], it\u2019s actually back to normal. There is not much memory of the pandemic, although all the protocols became habits. People sanitize and wash their hands. As far as the comfort of people to go out, they are already back. We want normalcy back and we got normal back,\u201d Mr. Teng said. \u00a0 \u00a0\nHe added that the government should push for stability in the food supply to avoid disruptions.\u00a0 \u00a0\n\u201cGenerally, we need more stability in everything. If things keep changing left and right, that\u2019s very hard for businesses to grow. We hope that there is more stability with regard to the food supply,\u201d Mr. Teng said.\u00a0 \u00a0\nThis year, there have been shortages of either vegetables or major commodities, which have caused disruption, but restaurants have remained focused on recovery, he said. \u00a0 \u00a0\n\u201cWe just have to deal with it. The only important thing that we learned was that even through the worst crisis, the world survived, the food industry survived,\u201d Mr. Teng said.\u00a0 \u00a0\n\u201cWe went through it and right now, just like any other crisis, after that, it is recovery,\u201d he said. \u201cWhen it happens, we hope we\u2019re prepared for it but we will focus on the normal.\u201d\nSteven T. Cua, Philippine Amalgamated Supermarkets Association president, said supermarkets made adjustments after the effects of the pandemic.\u00a0 \u00a0\n\u201cAs the pandemic slowly released its hold on the economy, supermarkets began sprucing up their merchandise, rationalized merchandise selection, worked on offline sales as online sales receded, and relied on innovative marketing to take the lead in enticing the market back into its doors,\u201d Mr. Cua said.\u00a0 \u00a0\nHowever, supermarkets have been slow in employing the number of personnel they used to have before the pandemic.\n\u201cJust visit your favorite supermarket and count the percentage of checkout counters existing compared to pre-COVID days, as well as the percentage of those retained open to service customers. To this day, I see retailers opening only 25% to 66% of retained counters even during rush hour,\u201d Mr. Cua said.\u00a0 \u00a0\nMr. Cua urged the government to address the rising inflation as prices of grocery items have surged.\u00a0 \u00a0\n\u201cInflation is one issue the government has to address before it leads to a state of stagflation, which is a deeper hole to get out of. Retail should find relief if prices become more stable and people have jobs and salaries to avail of commodities,\u201d Mr. Cua said.\u00a0 \u00a0\n\u201cAdditional taxes, increase in salaries, higher power costs, low demand all add up to inflation. Opportunities will be plentiful once the economy relatively stabilizes,\u201d he added.\u00a0 \u00a0\nBeyond the pandemic, local supermarkets should prepare for the \u201cThe Big One\u201d or a magnitude 7.2 earthquake on the West Valley Fault, he said.\u00a0 \u00a0\n\u201cWhat we have to prepare for is \u2018The Big One\u2019 just in case it arrives even if it doesn\u2019t during our lifetime. Retain the lessons learned from COVID-19 and always be vigilant of future shocks like this tsunami of a pandemic,\u201d Mr. Cua said.\u00a0 \u00a0\nMr. Cua added that the government should focus on assisting various industries to support the growth of the retail sector. \u00a0 \u00a0\n\u201cThe government should provide incentives for the manufacturing industries to invest, reinvest, expand and flourish. This provides employment and fuels a consumer-driven economy. Look after the needs of industry for power and water, physical infrastructure. Get the farmers who supply fresh produce more informed, inclusive and empowered to enjoy the fruits of a growing economy,\u201d he added.", "date_published": "2023-09-04T00:17:35+08:00", "date_modified": "2023-09-03T14:46:20+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/shoppersgrocery-stores.jpg", "tags": [ "bw36", "Revin Mikhael D. Ochave", "Special Reports" ], "summary": "TECHNOLOGY has allowed retailers to survive the pandemic while boosting their operations to meet changing consumer behavior. From supermarkets to restaurants, the retail industry has embraced advances in e-commerce, positioning businesses for further growth." }, { "id": "https://www.bworldonline.com/?p=543018", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543018/post-covid-opportunities-in-healthcare/", "title": "Post-COVID opportunities in healthcare", "content_html": "By Patricia Mirasol, Reporter
\nTHE post-COVID opportunities in healthcare are becoming apparent in fields like digital transformation and wellness, industry officials said, while at the same time highlighting the challenges posed by labor shortages and cybersecurity threats.
\nTECHNOLOGICAL CHANGE
\nThe Medical City (TMC) finds itself at various levels of digital transformation, according to Dr. Eugenio F. Ramos, president and chief executive officer (CEO) of TMC, which operates a flagship complex, four provincial hospitals, and over 50 clinics.\u00a0
\u201cWe are getting into AI (artificial intelligence) in ECGs (electrocardiograms) and in echocardiograms. We are doing AI in our mammograms,\u201d he said in Zoom call in July.\u00a0
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S7-4-2023-AR-09.04.23-FINAL-infog3.jpg\")
These facilitate the efficiency of the process, he said: \u201cThe machine and the radiologists concur… AI is based on numbers. If it has gone through millions, then you can see it becomes really accurate.\u201d
\nAmbulance company Lifeline 16-911, for its part, is likewise investing in AI-assisted dispatching systems.
\nThis \u201cwill allow for a zero-response time to emergency cases, by allowing us to guide the callers in providing effective first aid to patients while the ambulances are en route,\u201d Michael H. Deakin, president and CEO, said.
\n\u201cPost-pandemic, we have to prepare ourselves in terms of how to get the right data, and how to make use of that data in making decisions,\u201d Mr.\u00a0Ramos of TMC said. \u201cSometimes, the decisions may not be the best decisions, but those that are quick and helpful to the most number of people.\u201d\u00a0
\nPANDEMIC FINDINGS
\nDisaster preparedness and recovery planning served the company well during the pandemic, according to Lifeline 16-911\u2019s Mr. Deakin.
\u201c(We) regularly worked on various scenarios and an updating of skills \u2014 even before the pandemic,\u201d he said in an e-mail. \u201cWhen the pandemic hit, we were fully prepared to activate our protocols… without any downtime.\u201d
\nEmergency medical service companies can expand by offering home services, thereby reducing the need to go to hospitals, he pointed out.
\n\u201cLooking ahead, we are hoping to establish a national system that facilitates seamless interactions between the government and private sector for better crisis response in the future,\u201d Mr. Deakin added.
\nAmerican Bio-Clinical Laboratories, International (ABC Labs, Int\u2019l.), on the other hand, has found that not committing too heavily to a future of extensive coronavirus disease 2019 (COVID-19) testing turned out to be the right decision.
\nMalaca\u00f1ang lifted the COVID-19 test requirement for incoming visitors on Oct. 25, 2022. Earlier that year, local government units started lifting their test requirement for fully vaccinated travelers.
\nRiding on the trend would have been good for business, said Geoffrey L. Beldua, ABC Labs, Int\u2019l\u2019s general manager.
\n\u201cIn retrospect, ABC Labs Manila made the right call not to push Covid testing as we were still in the preparation stages during the peak of the pandemic,\u201d he told BusinessWorld.
\n\u201cPost-COVID recovery negatively affected diagnostic centers focused on COVID testing alone,\u201d he said in a July 27 e-mail. \u201cAn exit strategy should be in place as the trend is expected to die down eventually.\u201d
\nPREVENTIVE HEALTH
\nOne opportunity that has emerged from the wake of COVID-19 is the greater focus on preventive health and wellness, according to Cholo A. Tagaysay, CEO of KonsultaMD, a 24/7 health hotline service.
\u201cTwenty percent of Filipino consumers who care about wellness expressed intent to spend,\u201d he said in an e-mail, noting interest in supplements, health insurance, and preventive healthcare.
\n\u201cDespite price increases, the majority are still willing to pay a premium,\u201d he said.
\nMr. Tagaysay also noted that the proliferation of wearable devices will enable remote consultation and the monitoring of vital signs such as blood pressure and heart rate.
\n\u201cThe focus on wellness, lifestyle, and wellbeing is the bigger market, actually,\u201d Mr. Ramos said. \u201cPeople have become more health literate, have started to assume more responsibility over their own health.\u201d
\nThis requires the healthcare industry to take advantage of the shift from disease management to disease prevention, Mr. Ramos said.
\nThe Universal Health Care Act (Republic Act No. 11223), \u201cif successful, [would help] Filipinos be more productive,\u201d Mr. Beldua said.
\n\u201cHowever, this should also be supplemented by other programs, such as employment opportunities, so that the cycle of capability and contribution to society can be completed,\u201d he said.\u00a0
\nThe law, passed in February 2019, grants full health coverage and prescribes complementary reforms to the health system to minimize the financial hardship arising from health emergencies.
\nA December 2022 study by the Philippine Institute for Development Studies found that members of the national health insurance program still pay out-of-pocket for medical services despite the law on universal healthcare.
\nCYBERSECURITY CONCERNS
\nAn attendant challenge to any technology-driven enterprise is cybersecurity.
\u201cA lot of opportunities are present in connected healthcare through telehealth,\u201d Mr. Tagaysay said. \u201cOpportunities for data and remote monitoring by syncing outpatient and inpatient records are possible.\u201d
\n\u201cBut we also see challenges in cybersecurity, data ownership, and legislation,\u201d he added.
\nNearly half (47%) of Southeast Asian organizations succumbed to ransomware which held hostage crucial data, according to a report by IBM Corp.
\nThe average cost to recover sensitive information illegally obtained by hackers rose 6% to a record $3.05 million in 2023 in Southeast Asia, the report found.
\nHealthcare continues to experience the highest data breach costs of all industries, IBM said in its Cost of a Data Breach Report 2023. Such costs rose to $10.93 million in 2023, up 8.2% from a year earlier.
\nOn Aug. 1, President Ferdinand R. Marcos, Jr. said he was looking into improving the Philippines\u2019 cybersecurity defenses and digital connectivity.
\n\u201cWe have to keep up. We are always looking for additional capability when it comes to all these communications, especially with the problems of cybersecurity,\u201d the President said in a meeting with a satellite company.
\nLABOR SHORTAGES
\nLabor poses a major challenge in healthcare, health service providers said.
\u201cThe biggest risks for the emergency medical services these days is the shortage of nurses and EMTs (emergency medical technicians) who are leaving the country,\u201d Mr. Deakin said.
\n\u201cIf not addressed carefully, this trend could result in drastic increases in healthcare service prices locally and exacerbate the brain drain as talented nurses leave the country,\u201d he added.
\nBetween 2020 and 2022, 29% of Lifeline\u2019s staff were recruited overseas each year. Most have been moved to the Middle East, Europe, the UK, and Canada.
\nLifeline stems the flow by paying for the training and university courses of future employees at the high school level.
\n\u201cWe have to give them more reason to stay, other than giving them a decent salary,\u201d Mr. Ramos said. \u201cEmpower them with better chances of mobility as far as careers are concerned.\u201d
\n\u201cA lot want to stay,\u201d he added, even \u201cthe younger ones. They are excited to travel, but… they want to eventually come back.\u201d
\n", "content_text": "By Patricia Mirasol, Reporter\nTHE post-COVID opportunities in healthcare are becoming apparent in fields like digital transformation and wellness, industry officials said, while at the same time highlighting the challenges posed by labor shortages and cybersecurity threats.\nTECHNOLOGICAL CHANGE\nThe Medical City (TMC) finds itself at various levels of digital transformation, according to Dr. Eugenio F. Ramos, president and chief executive officer (CEO) of TMC, which operates a flagship complex, four provincial hospitals, and over 50 clinics.\u00a0\n\u201cWe are getting into AI (artificial intelligence) in ECGs (electrocardiograms) and in echocardiograms. We are doing AI in our mammograms,\u201d he said in Zoom call in July.\u00a0\n\nThese facilitate the efficiency of the process, he said: \u201cThe machine and the radiologists concur… AI is based on numbers. If it has gone through millions, then you can see it becomes really accurate.\u201d \nAmbulance company Lifeline 16-911, for its part, is likewise investing in AI-assisted dispatching systems. \nThis \u201cwill allow for a zero-response time to emergency cases, by allowing us to guide the callers in providing effective first aid to patients while the ambulances are en route,\u201d Michael H. Deakin, president and CEO, said.\n\u201cPost-pandemic, we have to prepare ourselves in terms of how to get the right data, and how to make use of that data in making decisions,\u201d Mr.\u00a0Ramos of TMC said. \u201cSometimes, the decisions may not be the best decisions, but those that are quick and helpful to the most number of people.\u201d\u00a0\nPANDEMIC FINDINGS\nDisaster preparedness and recovery planning served the company well during the pandemic, according to Lifeline 16-911\u2019s Mr. Deakin.\n\u201c(We) regularly worked on various scenarios and an updating of skills \u2014 even before the pandemic,\u201d he said in an e-mail. \u201cWhen the pandemic hit, we were fully prepared to activate our protocols… without any downtime.\u201d\nEmergency medical service companies can expand by offering home services, thereby reducing the need to go to hospitals, he pointed out.\n\u201cLooking ahead, we are hoping to establish a national system that facilitates seamless interactions between the government and private sector for better crisis response in the future,\u201d Mr. Deakin added.\nAmerican Bio-Clinical Laboratories, International (ABC Labs, Int\u2019l.), on the other hand, has found that not committing too heavily to a future of extensive coronavirus disease 2019 (COVID-19) testing turned out to be the right decision. \nMalaca\u00f1ang lifted the COVID-19 test requirement for incoming visitors on Oct. 25, 2022. Earlier that year, local government units started lifting their test requirement for fully vaccinated travelers.\nRiding on the trend would have been good for business, said Geoffrey L. Beldua, ABC Labs, Int\u2019l\u2019s general manager. \n\u201cIn retrospect, ABC Labs Manila made the right call not to push Covid testing as we were still in the preparation stages during the peak of the pandemic,\u201d he told BusinessWorld.\n\u201cPost-COVID recovery negatively affected diagnostic centers focused on COVID testing alone,\u201d he said in a July 27 e-mail. \u201cAn exit strategy should be in place as the trend is expected to die down eventually.\u201d\nPREVENTIVE HEALTH\nOne opportunity that has emerged from the wake of COVID-19 is the greater focus on preventive health and wellness, according to Cholo A. Tagaysay, CEO of KonsultaMD, a 24/7 health hotline service.\n\u201cTwenty percent of Filipino consumers who care about wellness expressed intent to spend,\u201d he said in an e-mail, noting interest in supplements, health insurance, and preventive healthcare.\n\u201cDespite price increases, the majority are still willing to pay a premium,\u201d he said.\nMr. Tagaysay also noted that the proliferation of wearable devices will enable remote consultation and the monitoring of vital signs such as blood pressure and heart rate.\n\u201cThe focus on wellness, lifestyle, and wellbeing is the bigger market, actually,\u201d Mr. Ramos said. \u201cPeople have become more health literate, have started to assume more responsibility over their own health.\u201d\nThis requires the healthcare industry to take advantage of the shift from disease management to disease prevention, Mr. Ramos said.\nThe Universal Health Care Act (Republic Act No. 11223), \u201cif successful, [would help] Filipinos be more productive,\u201d Mr. Beldua said.\n\u201cHowever, this should also be supplemented by other programs, such as employment opportunities, so that the cycle of capability and contribution to society can be completed,\u201d he said.\u00a0\nThe law, passed in February 2019, grants full health coverage and prescribes complementary reforms to the health system to minimize the financial hardship arising from health emergencies.\nA December 2022 study by the Philippine Institute for Development Studies found that members of the national health insurance program still pay out-of-pocket for medical services despite the law on universal healthcare. \nCYBERSECURITY CONCERNS\nAn attendant challenge to any technology-driven enterprise is cybersecurity. \n\u201cA lot of opportunities are present in connected healthcare through telehealth,\u201d Mr. Tagaysay said. \u201cOpportunities for data and remote monitoring by syncing outpatient and inpatient records are possible.\u201d\n\u201cBut we also see challenges in cybersecurity, data ownership, and legislation,\u201d he added.\nNearly half (47%) of Southeast Asian organizations succumbed to ransomware which held hostage crucial data, according to a report by IBM Corp.\nThe average cost to recover sensitive information illegally obtained by hackers rose 6% to a record $3.05 million in 2023 in Southeast Asia, the report found.\nHealthcare continues to experience the highest data breach costs of all industries, IBM said in its Cost of a Data Breach Report 2023. Such costs rose to $10.93 million in 2023, up 8.2% from a year earlier.\nOn Aug. 1, President Ferdinand R. Marcos, Jr. said he was looking into improving the Philippines\u2019 cybersecurity defenses and digital connectivity. \n\u201cWe have to keep up. We are always looking for additional capability when it comes to all these communications, especially with the problems of cybersecurity,\u201d the President said in a meeting with a satellite company.\nLABOR SHORTAGES\nLabor poses a major challenge in healthcare, health service providers said.\n\u201cThe biggest risks for the emergency medical services these days is the shortage of nurses and EMTs (emergency medical technicians) who are leaving the country,\u201d Mr. Deakin said.\n\u201cIf not addressed carefully, this trend could result in drastic increases in healthcare service prices locally and exacerbate the brain drain as talented nurses leave the country,\u201d he added.\nBetween 2020 and 2022, 29% of Lifeline\u2019s staff were recruited overseas each year. Most have been moved to the Middle East, Europe, the UK, and Canada.\nLifeline stems the flow by paying for the training and university courses of future employees at the high school level.\n\u201cWe have to give them more reason to stay, other than giving them a decent salary,\u201d Mr. Ramos said. \u201cEmpower them with better chances of mobility as far as careers are concerned.\u201d\n\u201cA lot want to stay,\u201d he added, even \u201cthe younger ones. They are excited to travel, but… they want to eventually come back.\u201d", "date_published": "2023-09-04T00:16:35+08:00", "date_modified": "2023-09-06T11:29:40+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/medical-testing.jpg", "tags": [ "Artificial intelligence", "bw36", "COVID-19", "healthcare", "labor management", "Patricia B. Mirasol", "Patricia Mirasol", "Philippines", "post-pandemic", "preventive care", "wellness", "Special Reports" ], "summary": "THE post-COVID opportunities in healthcare are becoming apparent in fields like digital transformation and wellness, industry officials said, while at the same time highlighting the challenges posed by labor shortages and cybersecurity threats." }, { "id": "https://www.bworldonline.com/?p=543017", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543017/philippine-schools-level-up-with-new-tech/", "title": "Philippine schools level up with new tech", "content_html": "By John Victor D. Ordo\u00f1ez, Reporter
\nUPSKILLING teachers and taking advantage of new technologies remain top priorities for the Philippine education sector as the country transitions out of the global coronavirus pandemic, according to education experts.
\nThe pandemic forced many schools to invest in up-to-date equipment to allow teachers and students to work more efficiently, said Maria Ella Calaor-Oplas, an economics professor who specializes in human capital development research at De La Salle University.
\n\u201cInvestment in online collaboration platforms is also important to facilitate online classes and efficient learning experiences for teachers, administrators and students,\u201d she said in a Viber message, citing the need for teachers to be trained on how to conduct classes online.
\n\r\n \r\n\r\nUniversities have adopted online platforms as one of the primary modes of learning even as schools returned to in-person classes.
\nMs. Oplas said the private sector and government need to upgrade the country\u2019s network infrastructure to ensure reliable and fast internet.
\nThe Philippines ranked 83rd out of 140 countries in June for mobile internet performance, with a download speed of 26.98 megabits per second (Mbps), according to global network testing firm Ookla. The speed was below the global average of 42.92 Mbps.
\nAs schools continue to introduce new online tools such as artificial intelligence (AI), it may also pose risks to the integrity of the learning process, Ms.\u00a0Oplas said.
\n\u201cAI may be dangerous especially when students at the primary and secondary levels start using it,\u201d she said. \u201cIt does not allow students to develop critical thinking,\u201d she added, citing new web-based applications teachers use to detect AI-generated inputs in schoolwork.
\n\u201cEducation institutions have learned a significant insight into the role of artificial intelligence as a catalyst for enhancing the efficiency and efficacy of the learning process,\u201d Ms.\u00a0Oplas said.
\nCrafting AI policies in education should help countries \u201censure inclusive and equitable quality education and promote lifelong learning opportunities for all,\u201d according to the United Nations Educational, Scientific and Cultural Organization.
\nTurnitin Philippines, an online plagiarism detection and educational feedback company, has partnered with local universities to upskill teachers in using AI to help them grade papers online.
\nIn a July report, the Asian Development Bank (ADB) said the Philippines should use education technology to bridge the skill gap or risk job losses due to rapid technological advancements.
\nIt said 20% of the Philippine workers face a \u201chigh risk of losing their jobs\u201d due to automation.
\nRaymond Basilio, secretary-general of the Alliance of Concerned Teachers (ACT), said the education sector needs to do something about the outdated skill training programs for public school teachers.
\n\u201cNothing much has been done to equip teachers to remedy the learning loss caused by the pandemic,\u201d he said in an e-mail. \u201cTo address the learning loss, the government must consider overhauling the curriculum because it is the major culprit of learning loss.\u201d
\nStudents in the Philippines and Indonesia are more than a year behind in their learning because of the pandemic, McKinsey & Co. said in a report published in April last year.
\nA quarter-million Filipino students moved from private to public schools in 2020 and 2021, as many parents lost their jobs, according to the Education department.
\nData from the ADB showed that 21% of children from middle-income countries who are of school age by 2030 will not learn basic primary-level skills.
\nIt cited the need for the Philippines to develop the technical and vocational education training sector to increase workers\u2019 competitiveness.
\n\u2018NO MAGIC WAND\u2019
\nThe Philippines had a learning poverty rate of 91% and a learning deprivation rate of 90.4%, among the highest in Southeast Asia, according to a 2022 report by the World Bank.
\u201cWe learned during the pandemic that our schools and systems must be ready with mitigating measures or alternative programs that can be used during times of calamities or emergencies,\u201d Mr. Basilio said.
\nThe Department of Education needs more than a trillion pesos ($17.6 billion) next year to pay for teachers\u2019 salaries, benefits and school supplies, ACT Teachers\u2019 Party-List Rep. France L. Castro said in June.
\nThe higher budget would allow the country to comply with a United Nations standard for education to account for at least 6% of economic output, she said.
\nUnder the proposed 2024 national budget, the education sector will get P924.7 billion, 3.3% higher than this year.
\n\u201cMore seminars, training programs for teachers and other forms of capacity building should be conducted and learning modules must be updated to make them more effective educational tools,\u201d Renato B. Magtubo, chairman of the Partido Manggagawa labor group, said in a Viber message. Schools should also invest in faster WiFi connectivity and tablets for students.
\nInternational Labour Organization (ILO) Director-General Gilbert F. Houngbo has urged the government and local employers to boost investments in education and equip teachers with modern skills to address youth unemployment.
\nThe World Bank said in February that millions of children around the world could lose up to 10% of their future average yearly earnings due to learning setbacks caused by the coronavirus pandemic.
\nGeorge T. Barcelon, president of the Philippine Chamber of Commerce and Industry, said improving Science, Technology, Engineering, and Mathematics (STEM) programs could help bridge the skill gap in the workforce.
\n\u201cWe encourage the use of new technologies to help our young develop new skills and for our students to go up the global value chain,\u201d he said by telephone. \u201cPlatforms such as YouTube could provide broad learning access to our young.\u201d
\nMr. Barcelon said improving proficiency in the English language should be prioritized to produce more employable students. \u201cThe command of English is important for our students since a lot of reading material is in that language.\u201d
\nLast year, the Philippines placed 22nd out of 111 countries in the 2022 English Proficiency Index by Education First.
\nThe country got a score of 578, which is considered high, second in the Asia-Pacific region after Singapore.
\nMr. Barcelon said the Philippines lacks good teachers who are proficient in STEM fields, adding that performance-based salary increases could attract more capable people to the profession.
\n\u201cThe country needs to have a program that provides proper training for teachers and wherein we rate them on standards based on meritocracy,\u201d he said. \u201cThere is no magic wand that we can wave to solve the losses we incurred in the education sector. The best we can do is address the gaps.\u201d
\n", "content_text": "By John Victor D. Ordo\u00f1ez, Reporter\nUPSKILLING teachers and taking advantage of new technologies remain top priorities for the Philippine education sector as the country transitions out of the global coronavirus pandemic, according to education experts.\nThe pandemic forced many schools to invest in up-to-date equipment to allow teachers and students to work more efficiently, said Maria Ella Calaor-Oplas, an economics professor who specializes in human capital development research at De La Salle University.\n\u201cInvestment in online collaboration platforms is also important to facilitate online classes and efficient learning experiences for teachers, administrators and students,\u201d she said in a Viber message, citing the need for teachers to be trained on how to conduct classes online.\n\r\n \r\n\r\n \r\n \r\n \r\n \r\n\r\n \r\n 1 of 3\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n\r\n \r\n \nUniversities have adopted online platforms as one of the primary modes of learning even as schools returned to in-person classes.\nMs. Oplas said the private sector and government need to upgrade the country\u2019s network infrastructure to ensure reliable and fast internet.\nThe Philippines ranked 83rd out of 140 countries in June for mobile internet performance, with a download speed of 26.98 megabits per second (Mbps), according to global network testing firm Ookla. The speed was below the global average of 42.92 Mbps.\nAs schools continue to introduce new online tools such as artificial intelligence (AI), it may also pose risks to the integrity of the learning process, Ms.\u00a0Oplas said.\n\u201cAI may be dangerous especially when students at the primary and secondary levels start using it,\u201d she said. \u201cIt does not allow students to develop critical thinking,\u201d she added, citing new web-based applications teachers use to detect AI-generated inputs in schoolwork.\n\u201cEducation institutions have learned a significant insight into the role of artificial intelligence as a catalyst for enhancing the efficiency and efficacy of the learning process,\u201d Ms.\u00a0Oplas said.\nCrafting AI policies in education should help countries \u201censure inclusive and equitable quality education and promote lifelong learning opportunities for all,\u201d according to the United Nations Educational, Scientific and Cultural Organization.\nTurnitin Philippines, an online plagiarism detection and educational feedback company, has partnered with local universities to upskill teachers in using AI to help them grade papers online.\nIn a July report, the Asian Development Bank (ADB) said the Philippines should use education technology to bridge the skill gap or risk job losses due to rapid technological advancements.\nIt said 20% of the Philippine workers face a \u201chigh risk of losing their jobs\u201d due to automation.\nRaymond Basilio, secretary-general of the Alliance of Concerned Teachers (ACT), said the education sector needs to do something about the outdated skill training programs for public school teachers.\n\u201cNothing much has been done to equip teachers to remedy the learning loss caused by the pandemic,\u201d he said in an e-mail. \u201cTo address the learning loss, the government must consider overhauling the curriculum because it is the major culprit of learning loss.\u201d\nStudents in the Philippines and Indonesia are more than a year behind in their learning because of the pandemic, McKinsey & Co. said in a report published in April last year.\nA quarter-million Filipino students moved from private to public schools in 2020 and 2021, as many parents lost their jobs, according to the Education department.\nData from the ADB showed that 21% of children from middle-income countries who are of school age by 2030 will not learn basic primary-level skills.\nIt cited the need for the Philippines to develop the technical and vocational education training sector to increase workers\u2019 competitiveness.\n\u2018NO MAGIC WAND\u2019\nThe Philippines had a learning poverty rate of 91% and a learning deprivation rate of 90.4%, among the highest in Southeast Asia, according to a 2022 report by the World Bank.\n\u201cWe learned during the pandemic that our schools and systems must be ready with mitigating measures or alternative programs that can be used during times of calamities or emergencies,\u201d Mr. Basilio said.\nThe Department of Education needs more than a trillion pesos ($17.6 billion) next year to pay for teachers\u2019 salaries, benefits and school supplies, ACT Teachers\u2019 Party-List Rep. France L. Castro said in June.\nThe higher budget would allow the country to comply with a United Nations standard for education to account for at least 6% of economic output, she said.\nUnder the proposed 2024 national budget, the education sector will get P924.7 billion, 3.3% higher than this year.\n\u201cMore seminars, training programs for teachers and other forms of capacity building should be conducted and learning modules must be updated to make them more effective educational tools,\u201d Renato B. Magtubo, chairman of the Partido Manggagawa labor group, said in a Viber message. Schools should also invest in faster WiFi connectivity and tablets for students.\nInternational Labour Organization (ILO) Director-General Gilbert F. Houngbo has urged the government and local employers to boost investments in education and equip teachers with modern skills to address youth unemployment.\nThe World Bank said in February that millions of children around the world could lose up to 10% of their future average yearly earnings due to learning setbacks caused by the coronavirus pandemic.\nGeorge T. Barcelon, president of the Philippine Chamber of Commerce and Industry, said improving Science, Technology, Engineering, and Mathematics (STEM) programs could help bridge the skill gap in the workforce.\n\u201cWe encourage the use of new technologies to help our young develop new skills and for our students to go up the global value chain,\u201d he said by telephone. \u201cPlatforms such as YouTube could provide broad learning access to our young.\u201d\nMr. Barcelon said improving proficiency in the English language should be prioritized to produce more employable students. \u201cThe command of English is important for our students since a lot of reading material is in that language.\u201d\nLast year, the Philippines placed 22nd out of 111 countries in the 2022 English Proficiency Index by Education First.\nThe country got a score of 578, which is considered high, second in the Asia-Pacific region after Singapore.\nMr. Barcelon said the Philippines lacks good teachers who are proficient in STEM fields, adding that performance-based salary increases could attract more capable people to the profession.\n\u201cThe country needs to have a program that provides proper training for teachers and wherein we rate them on standards based on meritocracy,\u201d he said. \u201cThere is no magic wand that we can wave to solve the losses we incurred in the education sector. The best we can do is address the gaps.\u201d", "date_published": "2023-09-04T00:15:34+08:00", "date_modified": "2023-09-03T14:37:18+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/classroom-students-teacher.jpg", "tags": [ "bw36", "John Victor D. Ordonez", "Special Reports" ], "summary": "UPSKILLING teachers and taking advantage of new technologies remain top priorities for the Philippine education sector as the country transitions out of the global coronavirus pandemic, according to education experts." }, { "id": "https://www.bworldonline.com/?p=543016", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543016/striking-a-balance-between-mining-development-and-environmental-protection/", "title": "Striking a balance between mining development and environmental protection", "content_html": "By Sheldeen Joy Talavera, Reporter
\nAMID the country\u2019s move towards the greater use of renewable energy is a need to strike a balance between maximizing the mining industry\u2019s contribution to the economy and minimizing the impact on the environment.
\nThe Department of Environment and Natural Resources (DENR), the agency responsible for the conservation and proper use of the country\u2019s environment and natural resources, said it wants mining companies to go beyond compliance.
\n\u201cWe have complete regulation but beyond regulations, what we are trying to do with this current administration is to go beyond compliance,\u201d DENR Undersecretary Carlos Primo C. David told BusinessWorld.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S8-3-2023-AR-09.04.23_FINAL-infog2.jpg\")
\u201cWhat if you can do better than what is prescribed by law? The improvement should be continuous, and this is what we want to commend some of the companies \u2014 if they are able to do that,\u201d he said.
Mr. David said that among the programs being implemented by the department is the monitoring of mining activities using its geospatial database office.
\nThe geospatial database allows the agency to map and monitor the country\u2019s natural resources, including ongoing mining activities and reforestation initiatives by using satellite imagery.
\n\u201cThe government has the responsibility for that,\u201d he said. \u201cDENR handles or manages both sides \u2014 environment and natural resources development. It seems that it\u2019s always in conflict with each other but it doesn\u2019t have to be.\u201d\u00a0
\nThe world\u2019s surging demand for renewable energy has enabled the mining industry to thrive even during the pandemic.
\nCritical minerals such as nickel, cobalt, and copper are seen as vital for creating electric vehicles (EVs), their large-scale batteries, as well as wind and solar farms.
\nAccording to the Mines and Geosciences Bureau (MGB), up to 470 applications are awaiting approval for the exploration of minerals such as copper, chromite, nickel, and cobalt, as of April 2023.
\n\u201cThe covid pandemic showed that the mining industry is one of the more resilient sectors and was in fact a key source of US dollar inflows for the country,\u201d said Martin Antonio G. Zamora, president and chief executive officer of Nickel Asia Corp.
\nNickel Asia is the Philippines\u2019 largest producer of lateric nickel ore and the only nickel company with processing plants.
\nThe mining industry\u2019s gains come as the Philippines aims to strengthen green initiatives to accelerate decarbonization.
\nThe country has committed to reduce greenhouse gas emissions by 75% by 2030 and has pledged to help limit global warming to less than two degrees Celsius under the Paris Agreement of the United Nations Framework Convention on Climate Change.
\nAt the same time, consumers\u2019 shifting attitudes towards mobility have propelled the growth in the demand for nickel, a key ingredient in lithium-ion batteries used in EVs.
\nGlobal EV sales increased by 43% to 3.24 million units in 2020, data published by Sweden-based consultancy EV-volumes.com showed.
\nFor 2023, it projected global EV sales to reach 14.3 million, up 36% from 10.52 million in 2022.
\n\u201cBy the end of 2023, we expect 40 million EVs in operation, counting light vehicles, 73% are BEVs (battery electric vehicles) and 27% PHEVs (plug-in hybrid electric vehicles),\u201d it said.
\nGlobal Ferronickel Holdings, Inc. President Dante R. Bravo said the outlook for nickel remains bright primarily because of the accelerating growth of the EV sector.
\n\u201cAlthough an oversupply in the nickel market will likely persist until 2026, deficits are expected from 2027 onwards,\u201d he said.
\nIntergovernmental organization International Nickel Study Group estimated the global demand for nickel to increase by 11% to 3.22 million tons in 2023.
\nThe Philippines saw a slight increase of 1.13% to P132.21 billion in metallic mineral production value in 2020, driven by improved nickel volumes, data from the MGB showed.
\nIn 2022, the value surged by 31.73% to P238.05 billion on the back of higher nickel prices and robust metal production.
\nThe nickel group accounted for 49.39% of the total output value at P117.58 billion. This came as the price of nickel went up to $11.86 per pound from $8.35 per pound.
\n\u201cThis strong performance can be attributed largely to the contribution of TVI Resources Development, Inc. (TVIRD) located in Zamboanga del Sur and OGPI in Nueva Ecija,\u201d the MGB said.
\nKaycee Crisostomo, communications and marketing director of TVIRD, said new technologies emerged as mining companies now use dry stacking technology to store filtered tailings \u2014 the silty and sand material left once the metals are extracted. This is an alternative to building tailings storage facilities.
\n\u201cThe country\u2019s vast natural resources provide opportunities for TVIRD to explore and harness renewable energy sources to support its decarbonization targets and pursue a climate-resilient future for its communities,\u201d he said.
\nThe company plans to build solar power plants to augment the power requirements of its mine sites in Surigao del Norte and Zamboanga del Sur.
\nGlobal Ferronickel\u2019s Mr. Bravo said nickel presents a compelling outlook due to the \u201cglobal shift to smart and sustainable cities, which require technology and materials made from minerals such as nickel.\u201d
\nIn the three months to March, EV sales in the country totaled 2,535, according to the Electric Vehicle Association of the Philippines (EVAP).
\nEVAP President Edmund A. Araga said the launch of new EVs by Audi, Porsche, Jaguar, and BYD in 2021 paved the way to get the interest of the high-end market.
\n\u201cWe believe that another roadmap for the mining industry is needed,\u201d he said, citing the \u201ctons of opportunity\u201d that can be gained.
\nHe said it is essential to work with the government to make sure that the plans will roll out along with standardized policies to protect the country.
\nThe opportunity ahead includes an estimated $1 trillion in untapped reserves of copper, gold, nickel, zinc, and silver.
\nThe Philippines has 30% of land area identified for potential mining resources, only 1.4% of which are active mining sites, the MGB said.
\nIn a bid to boost the industry, the DENR in 2021 lifted the four-year-old ban on open-pit mining for copper, gold, silver, and complex ores.
\nMeanwhile, Philippine mining companies have explored processing to transform mineral products into higher-grade materials.
\n\u201cTVIRD has learned from experience that precious metals like gold and base metals like copper can and should be processed in order for the industry to benefit from the added value of semi-finished products,\u201d Ms. Crisostomo said. Philippine mining companies have also explored processing to transform mineral products into higher-grade materials.
\n\u201cTVIRD has learned from experience that precious metals like gold and base metals like copper can and should be processed in order for the industry to benefit from the added value of semi-finished products,\u201d Ms. Crisostomo said.
\nFor Mr. Bravo, the industry needs support from the government to attract investments by simplifying the processing of permits and tax structure, and bringing down power costs, among others.
\n\u201cMining should be given the necessary support from the government to grow responsibly and sustainably,\u201d he said.
\n", "content_text": "By Sheldeen Joy Talavera, Reporter\nAMID the country\u2019s move towards the greater use of renewable energy is a need to strike a balance between maximizing the mining industry\u2019s contribution to the economy and minimizing the impact on the environment.\nThe Department of Environment and Natural Resources (DENR), the agency responsible for the conservation and proper use of the country\u2019s environment and natural resources, said it wants mining companies to go beyond compliance.\n\u201cWe have complete regulation but beyond regulations, what we are trying to do with this current administration is to go beyond compliance,\u201d DENR Undersecretary Carlos Primo C. David told BusinessWorld.\n\u201cWhat if you can do better than what is prescribed by law? The improvement should be continuous, and this is what we want to commend some of the companies \u2014 if they are able to do that,\u201d he said.\nMr. David said that among the programs being implemented by the department is the monitoring of mining activities using its geospatial database office.\nThe geospatial database allows the agency to map and monitor the country\u2019s natural resources, including ongoing mining activities and reforestation initiatives by using satellite imagery.\n\u201cThe government has the responsibility for that,\u201d he said. \u201cDENR handles or manages both sides \u2014 environment and natural resources development. It seems that it\u2019s always in conflict with each other but it doesn\u2019t have to be.\u201d\u00a0\nThe world\u2019s surging demand for renewable energy has enabled the mining industry to thrive even during the pandemic.\nCritical minerals such as nickel, cobalt, and copper are seen as vital for creating electric vehicles (EVs), their large-scale batteries, as well as wind and solar farms.\nAccording to the Mines and Geosciences Bureau (MGB), up to 470 applications are awaiting approval for the exploration of minerals such as copper, chromite, nickel, and cobalt, as of April 2023.\n\u201cThe covid pandemic showed that the mining industry is one of the more resilient sectors and was in fact a key source of US dollar inflows for the country,\u201d said Martin Antonio G. Zamora, president and chief executive officer of Nickel Asia Corp.\nNickel Asia is the Philippines\u2019 largest producer of lateric nickel ore and the only nickel company with processing plants.\nThe mining industry\u2019s gains come as the Philippines aims to strengthen green initiatives to accelerate decarbonization.\nThe country has committed to reduce greenhouse gas emissions by 75% by 2030 and has pledged to help limit global warming to less than two degrees Celsius under the Paris Agreement of the United Nations Framework Convention on Climate Change.\nAt the same time, consumers\u2019 shifting attitudes towards mobility have propelled the growth in the demand for nickel, a key ingredient in lithium-ion batteries used in EVs.\nGlobal EV sales increased by 43% to 3.24 million units in 2020, data published by Sweden-based consultancy EV-volumes.com showed.\nFor 2023, it projected global EV sales to reach 14.3 million, up 36% from 10.52 million in 2022.\n\u201cBy the end of 2023, we expect 40 million EVs in operation, counting light vehicles, 73% are BEVs (battery electric vehicles) and 27% PHEVs (plug-in hybrid electric vehicles),\u201d it said.\nGlobal Ferronickel Holdings, Inc. President Dante R. Bravo said the outlook for nickel remains bright primarily because of the accelerating growth of the EV sector.\n\u201cAlthough an oversupply in the nickel market will likely persist until 2026, deficits are expected from 2027 onwards,\u201d he said.\nIntergovernmental organization International Nickel Study Group estimated the global demand for nickel to increase by 11% to 3.22 million tons in 2023.\nThe Philippines saw a slight increase of 1.13% to P132.21 billion in metallic mineral production value in 2020, driven by improved nickel volumes, data from the MGB showed.\nIn 2022, the value surged by 31.73% to P238.05 billion on the back of higher nickel prices and robust metal production.\nThe nickel group accounted for 49.39% of the total output value at P117.58 billion. This came as the price of nickel went up to $11.86 per pound from $8.35 per pound.\n\u201cThis strong performance can be attributed largely to the contribution of TVI Resources Development, Inc. (TVIRD) located in Zamboanga del Sur and OGPI in Nueva Ecija,\u201d the MGB said.\nKaycee Crisostomo, communications and marketing director of TVIRD, said new technologies emerged as mining companies now use dry stacking technology to store filtered tailings \u2014 the silty and sand material left once the metals are extracted. This is an alternative to building tailings storage facilities.\n\u201cThe country\u2019s vast natural resources provide opportunities for TVIRD to explore and harness renewable energy sources to support its decarbonization targets and pursue a climate-resilient future for its communities,\u201d he said.\nThe company plans to build solar power plants to augment the power requirements of its mine sites in Surigao del Norte and Zamboanga del Sur.\nGlobal Ferronickel\u2019s Mr. Bravo said nickel presents a compelling outlook due to the \u201cglobal shift to smart and sustainable cities, which require technology and materials made from minerals such as nickel.\u201d\nIn the three months to March, EV sales in the country totaled 2,535, according to the Electric Vehicle Association of the Philippines (EVAP).\nEVAP President Edmund A. Araga said the launch of new EVs by Audi, Porsche, Jaguar, and BYD in 2021 paved the way to get the interest of the high-end market.\n\u201cWe believe that another roadmap for the mining industry is needed,\u201d he said, citing the \u201ctons of opportunity\u201d that can be gained.\nHe said it is essential to work with the government to make sure that the plans will roll out along with standardized policies to protect the country.\nThe opportunity ahead includes an estimated $1 trillion in untapped reserves of copper, gold, nickel, zinc, and silver.\nThe Philippines has 30% of land area identified for potential mining resources, only 1.4% of which are active mining sites, the MGB said.\nIn a bid to boost the industry, the DENR in 2021 lifted the four-year-old ban on open-pit mining for copper, gold, silver, and complex ores.\nMeanwhile, Philippine mining companies have explored processing to transform mineral products into higher-grade materials.\n\u201cTVIRD has learned from experience that precious metals like gold and base metals like copper can and should be processed in order for the industry to benefit from the added value of semi-finished products,\u201d Ms. Crisostomo said. Philippine mining companies have also explored processing to transform mineral products into higher-grade materials.\n\u201cTVIRD has learned from experience that precious metals like gold and base metals like copper can and should be processed in order for the industry to benefit from the added value of semi-finished products,\u201d Ms. Crisostomo said.\nFor Mr. Bravo, the industry needs support from the government to attract investments by simplifying the processing of permits and tax structure, and bringing down power costs, among others.\n\u201cMining should be given the necessary support from the government to grow responsibly and sustainably,\u201d he said.", "date_published": "2023-09-04T00:14:33+08:00", "date_modified": "2023-09-03T14:31:25+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/quarry-mining.jpg", "tags": [ "bw36", "Sheldeen Joy Talavera", "Special Reports" ], "summary": "AMID the country\u2019s move towards the greater use of renewable energy is a need to strike a balance between maximizing the mining industry\u2019s contribution to the economy and minimizing the impact on the environment." }, { "id": "https://www.bworldonline.com/?p=543015", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543015/why-renewable-energy-has-gained-more-support-from-power-generators/", "title": "Why renewable energy has gained more support from power generators", "content_html": "By Ashley Erika O. Jose, Reporter
\nTWO recent events \u2014 the pandemic and the Russia-Ukraine war \u2014 have forced the energy sector to look at renewables not just as a clean power source but as an indigenous resource less susceptible to logistical disruptions.
\nFor decades, conventional energy sources such as coal and natural gas have dominated the country\u2019s energy mix. But after the two disruptive events, the government had to reshape its strategy for the country\u2019s energy security.
\nThe Philippines\u2019 energy sector is now looking at renewable energy (RE) and new green technologies not just for power supply sufficiency but also to accelerate the country\u2019s target of a just energy transformation.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S8-3-2023-AR-09.04.23_FINAL-infog1-scaled.jpg\")
\u201cWhile the pandemic brought about a drop in demand for power, the Russia-Ukraine conflict, on the other hand, reminded us of the volatility of the commodities market that underpins our current energy system,\u201d said Joseph Lacson, chief investment officer of Aboitiz Power Corp. (AboitizPower).
\u201cThe spike in global prices on coal, as one example, compelled AboitizPower to seek means to run our plants at even greater efficiency so that we could continue delivering on our mandate of a secure, affordable energy supply,\u201d he added.
\nThe listed energy company of the Aboitiz group has set a goal of 50:50 renewable energy and thermal capacities by 2030. It has set a target of building an additional 3,700 megawatts (MW) of renewable energy that will grow its capacities to 4,600 MW by 2030.
\n\u201cAboitizPower is the largest, diversified RE platform in the Philippines and we have ambitious plans to invest even more in RE in the coming years. New technologies such as offshore wind, floating storage, battery systems, provide new means in which to achieve those activities but they come with corresponding risks and unknowns,\u201d Mr.\u00a0Lacson said.\u00a0
\nTo date, AboitizPower has around 3,962.25 MW of attributable net sellable capacity. The company placed its renewable attributable net sellable capacity at 928.42 MW.
\nINDIGENOUS RESOURCES
\nThe country\u2019s energy sector is seen to have abundant potential in the renewable energy field considering the vast untapped indigenous resources.
As of end-2022, renewable energy accounted for 22.13% of the country\u2019s power mix, with coal still dominating the power generation with a 59.57% share.
\nSince the pandemic, the government has set a target to increase the share of renewables to 35% by 2030 and 50% by 2040, which forces companies to rethink their strategies.\u00a0 \u00a0
\nThe strategy includes looking for energy sources and technologies to complement the fuel powering their plants. Those with ambitious RE targets are seeing the need to include battery energy storage systems.
\n\u201cWe have to ensure that renewable energy is complemented by energy storage systems as well as other sources of power and technology,\u201d Energy Secretary Raphael P.M. Lotilla said during the BusinessWorld Insights forum on July 26 at the Shangri-La hotel in Bonifacio Global City.
\nMr. Lotilla said the government is placing renewable energy as the key to attaining security, sustainability, and affordability of electricity prices.
\nFor clean energy provider First Gen Corp., other technologies are needed to support the intermittency of renewable energy.
\n\u201cTheir variable and intermittent nature though necessitates that we match them with more grid capacity and storage to account for the fact that they\u2019re not there when night falls or on cloudy and windless days,\u201d Federico R. Lopez, chief executive officer of First Gen, said.
\nFirst Gen is aiming for 13,000 MW by 2030, of which about 9,000 MW will be the share of renewables.
\nHe said renewable energy will not only help deliver the country\u2019s energy requirements but will also accelerate the country\u2019s sustainability goals by helping reduce greenhouse gas emissions.
\nFirst Gen, through its subsidiary FGEN LNG Corp. is one of the seven proponents of liquefied natural gas (LNG) terminals in the Philippines.
\nLNG, despite the volatility of prices in the market, is being put forward as a key to addressing the country\u2019s energy needs due to the expected depletion of the Malampaya gas field.
\n\u201cOur efforts remain focused largely on helping to reduce the carbon intensity of the electricity grid and then ultimately to decarbonize it.\u00a0 We\u2019re making it our mission to shepherd the energy transition to Net Zero,\u201d\u00a0 Mr. Lopez said.
\nThe Malampaya gas field is the Philippines\u2019 only indigenous source of natural gas. Its supply is expected to decrease next year. Currently, Malampaya gas is fully contracted to First Gen\u2019s natural gas power plants with a combined capacity of 2,011\u00a0MW or 20% of Luzon\u2019s energy requirements.\u00a0
\nAside from LNG and renewable energy, First Gen is also looking at other emerging technologies that can also offer baseload energy supply.
\n\u201cOf course, over time, we must look toward repowering our natural gas facilities with green fuels like hydrogen as these become more feasible, or they can be decommissioned outright before 2050,\u201d Mr. Lopez said.
\n\u201cAs such, there is a need for a low carbon emission fuel like natural gas to act as the bridge fuel that\u2019s technically more suited for complementing the variable nature of renewable energy,\u201d he said, adding that the company will also focus on setting a net-zero emissions target.
\nAboitizPower\u2019s Mr. Lacson said the company acknowledges that RE needed to be complemented by other technologies and traditional sources of power.
\n\u201cAboitizPower\u2019s overall targets remain the same. To deliver energy security, affordability and reliability in a sustainable manner, we aim to expand and have a 50-50 mix in our generation portfolio between thermal and renewable energy in the next 10 years,\u201d he added.\u00a0
\nMeanwhile, Manila Electric Co. (Meralco) said that it is looking at \u201clong-term\u201d solutions in reshaping the company\u2019s strategy from the impacts of the pandemic.
\nManuel V. Pangilinan, the company\u2019s chief executive officer and chairman, said the power distributor is eyeing nuclear power and gas to meet the country\u2019s energy demands.
\nHe said that while the company is also rolling out its plan to venture into other emerging green technologies, Meralco is setting its plan on nuclear power and conventional sources like gas because it can provide the country\u2019s needed supply.
\n", "content_text": "By Ashley Erika O. Jose, Reporter\nTWO recent events \u2014 the pandemic and the Russia-Ukraine war \u2014 have forced the energy sector to look at renewables not just as a clean power source but as an indigenous resource less susceptible to logistical disruptions.\nFor decades, conventional energy sources such as coal and natural gas have dominated the country\u2019s energy mix. But after the two disruptive events, the government had to reshape its strategy for the country\u2019s energy security.\nThe Philippines\u2019 energy sector is now looking at renewable energy (RE) and new green technologies not just for power supply sufficiency but also to accelerate the country\u2019s target of a just energy transformation.\n\u201cWhile the pandemic brought about a drop in demand for power, the Russia-Ukraine conflict, on the other hand, reminded us of the volatility of the commodities market that underpins our current energy system,\u201d said Joseph Lacson, chief investment officer of Aboitiz Power Corp. (AboitizPower).\n\u201cThe spike in global prices on coal, as one example, compelled AboitizPower to seek means to run our plants at even greater efficiency so that we could continue delivering on our mandate of a secure, affordable energy supply,\u201d he added.\nThe listed energy company of the Aboitiz group has set a goal of 50:50 renewable energy and thermal capacities by 2030. It has set a target of building an additional 3,700 megawatts (MW) of renewable energy that will grow its capacities to 4,600 MW by 2030.\n\u201cAboitizPower is the largest, diversified RE platform in the Philippines and we have ambitious plans to invest even more in RE in the coming years. New technologies such as offshore wind, floating storage, battery systems, provide new means in which to achieve those activities but they come with corresponding risks and unknowns,\u201d Mr.\u00a0Lacson said.\u00a0\nTo date, AboitizPower has around 3,962.25 MW of attributable net sellable capacity. The company placed its renewable attributable net sellable capacity at 928.42 MW.\nINDIGENOUS RESOURCES\nThe country\u2019s energy sector is seen to have abundant potential in the renewable energy field considering the vast untapped indigenous resources.\nAs of end-2022, renewable energy accounted for 22.13% of the country\u2019s power mix, with coal still dominating the power generation with a 59.57% share.\nSince the pandemic, the government has set a target to increase the share of renewables to 35% by 2030 and 50% by 2040, which forces companies to rethink their strategies.\u00a0 \u00a0\nThe strategy includes looking for energy sources and technologies to complement the fuel powering their plants. Those with ambitious RE targets are seeing the need to include battery energy storage systems.\n\u201cWe have to ensure that renewable energy is complemented by energy storage systems as well as other sources of power and technology,\u201d Energy Secretary Raphael P.M. Lotilla said during the BusinessWorld Insights forum on July 26 at the Shangri-La hotel in Bonifacio Global City.\nMr. Lotilla said the government is placing renewable energy as the key to attaining security, sustainability, and affordability of electricity prices.\nFor clean energy provider First Gen Corp., other technologies are needed to support the intermittency of renewable energy.\n\u201cTheir variable and intermittent nature though necessitates that we match them with more grid capacity and storage to account for the fact that they\u2019re not there when night falls or on cloudy and windless days,\u201d Federico R. Lopez, chief executive officer of First Gen, said.\nFirst Gen is aiming for 13,000 MW by 2030, of which about 9,000 MW will be the share of renewables.\nHe said renewable energy will not only help deliver the country\u2019s energy requirements but will also accelerate the country\u2019s sustainability goals by helping reduce greenhouse gas emissions.\nFirst Gen, through its subsidiary FGEN LNG Corp. is one of the seven proponents of liquefied natural gas (LNG) terminals in the Philippines.\nLNG, despite the volatility of prices in the market, is being put forward as a key to addressing the country\u2019s energy needs due to the expected depletion of the Malampaya gas field.\n\u201cOur efforts remain focused largely on helping to reduce the carbon intensity of the electricity grid and then ultimately to decarbonize it.\u00a0 We\u2019re making it our mission to shepherd the energy transition to Net Zero,\u201d\u00a0 Mr. Lopez said.\nThe Malampaya gas field is the Philippines\u2019 only indigenous source of natural gas. Its supply is expected to decrease next year. Currently, Malampaya gas is fully contracted to First Gen\u2019s natural gas power plants with a combined capacity of 2,011\u00a0MW or 20% of Luzon\u2019s energy requirements.\u00a0\nAside from LNG and renewable energy, First Gen is also looking at other emerging technologies that can also offer baseload energy supply.\n\u201cOf course, over time, we must look toward repowering our natural gas facilities with green fuels like hydrogen as these become more feasible, or they can be decommissioned outright before 2050,\u201d Mr. Lopez said.\n\u201cAs such, there is a need for a low carbon emission fuel like natural gas to act as the bridge fuel that\u2019s technically more suited for complementing the variable nature of renewable energy,\u201d he said, adding that the company will also focus on setting a net-zero emissions target.\nAboitizPower\u2019s Mr. Lacson said the company acknowledges that RE needed to be complemented by other technologies and traditional sources of power.\n\u201cAboitizPower\u2019s overall targets remain the same. To deliver energy security, affordability and reliability in a sustainable manner, we aim to expand and have a 50-50 mix in our generation portfolio between thermal and renewable energy in the next 10 years,\u201d he added.\u00a0\nMeanwhile, Manila Electric Co. (Meralco) said that it is looking at \u201clong-term\u201d solutions in reshaping the company\u2019s strategy from the impacts of the pandemic.\nManuel V. Pangilinan, the company\u2019s chief executive officer and chairman, said the power distributor is eyeing nuclear power and gas to meet the country\u2019s energy demands.\nHe said that while the company is also rolling out its plan to venture into other emerging green technologies, Meralco is setting its plan on nuclear power and conventional sources like gas because it can provide the country\u2019s needed supply.", "date_published": "2023-09-04T00:13:32+08:00", "date_modified": "2023-09-04T18:07:27+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/electricy-tower-pylons.jpg", "tags": [ "Ashley Erika O. Jose", "bw36", "Special Reports" ], "summary": "TWO recent events \u2014 the pandemic and the Russia-Ukraine war \u2014 have forced the energy sector to look at renewables not just as a clean power source but as an indigenous resource less susceptible to logistical disruptions." }, { "id": "https://www.bworldonline.com/?p=543014", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543014/call-center-industry-sets-sights-on-countryside-expansion/", "title": "Call center industry sets sights on countryside expansion", "content_html": "By Beatriz Marie D. Cruz, Reporter
\nTHE Philippine call center industry is aiming to grow in rural areas to support inclusive growth, according to industry leaders.
\n\u201cWith 70% of the workforce in Manila and 30% in the countryside, the vision for 2028 entails a minimum of 40% in rural areas and a maximum of 60% in Metro Manila,\u201d Rosario C. Bradbury, managing director of the Contact Center Association of the Philippines, said in an interview with BusinessWorld.
\nThe IT and Business Process Association of the Philippines (IBPAP), along with the Department of Information and Communications Technology and Leechiu Property Consultants, introduced the Digital Cities 2025 initiative in 2020.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S9-4-2023-AR-09.04.23-FINAL-table1.jpg\")
The program aims to transform rural areas into thriving business hubs and prime choices for international investments, according to IBPAP.
The 25 digital cities are scattered across Luzon, Visayas, and Mindanao.
\n\u201cAs an association, our goal is to help enable them to grow,\u201d Ms. Bradbury said. \u201cOur vision is to become the world\u2019s number one for digital enabled customer services.\u201d
\nThis is in line with the 2028 roadmap for the information technology (IT) and business process management industry, which seeks to grow at 2.5 million full-time workers and at P59 billion in revenue by 2028.
\nIn 2022, the industry generated P32.5 billion in revenue, up from P29.5 billion in 2021, and saw an increase in full-time workers from 1.44 million to 1.57 million.
\nThere have been significant countryside expansions in Cebu, Davao, Bacolod, Pampanga, and Laguna, according to IBPAP President and Chief Executive Officer Jack Madrid.
\nOver 70,000 new jobs were created outside of the capital region, marking a 17% increase from 2021. \u201cBy the end of 2022, 31% of the sector\u2019s total headcount, or 486,000 full-time workers, were in the countryside,\u201d Mr. Madrid said in an email interview.
\nFour \u201clevers\u201d would expedite the achievement of the industry\u2019s 2028 targets \u2014 policy support and ease of doing business, talent development, infrastructure, and marketing, Ms. Bradbury said.
\nEmerging from the coronavirus pandemic, the industry has embraced diverse workflows to enhance service quality, with a specific focus on remote work and new technologies, according to Mr. Madrid.
\n\u201cRemote work presented numerous advantages, but companies realized that, to make it successful for them, they had to invest in culture, training, and technology,\u201d he said.
\nAbout 30% to 40% of employees work remotely while 60% to 70% are onsite, he noted.
\nAmid changes brought about by the pandemic, it was necessary to maintain the quality of the workers\u2019 outputs, Concentrix Senior Vice-President and Country Leader Amit Jagga said.
\n\u201cAfter the pandemic, we realized all the more that staff experience and engagement make the difference in terms of organizational success, as the pool of available talent is also changing and expanding, and new types of work are created with phenomena like gig economy and freelancing adding to the competitive landscape in the war for talent,\u201d Mr. Jagga said in a Viber message.
\nSome companies have implemented innovative solutions that minimized internet usage.
\n\u201cWe also needed to reassess our collection of software and technology tools. If they operate online, they were designed not to consume excessive bandwidth,\u201d said Jenny R. Constantino, Country Manager of RealPage based in Texas.
\nShe also highlighted the importance of nurturing a positive work culture to elevate work quality.
\n\u201cThe work environment affects the way people work, and you really need to adapt to how they manage their personal lives and work within their homes. So, that, to me, is an adjustment we have learned in the process,\u201d she said.
\nGENERATIVE AI
\nContrary to popular belief, the industry considers the emergence of generative artificial intelligence (AI) a blessing rather than a curse, according to Ms. Constantino.
\u201cA tool can tell me if a call has a client that\u2019s frustrated,\u201d she said, noting how AI has even enhanced the services of her company.
\n\u201cAI is useful for us as we operate in areas of hire, how we manage our operations, productivity and performance\u2026[as well as] thinking of the right tools in order to support the clients that we have,\u201d she added.
\nShe said that AI assists call center workers in addressing numerous customer queries in a short span of time.
\nIn the past, a supervisor would listen to calls for quality assurance and feedback, but now AI can handle that task, Ms. Bradbury noted.
\n\u201cThis technology has been present in this industry for a long time… It\u2019s a matter of reallocating your personnel to roles where they can contribute greater value to the industry now,\u201d stated Ms. Constantino said.
\nResearch and advisory company Gartner said that by 2026, the call center industry will possibly cut costs by up to $80 billion by replacing humans with AI chatbots.
\nBy 2026, the call center industry will possibly cut costs by up to $80 billion by replacing humans with AI chatbots, according to research firm Gartner .
\nAI \u201cisn\u2019t about reducing headcount but upskilling and re-skilling teams to operate smarter and to deliver higher value work,\u201d Concentrix\u2019s Mr. Jagga said.
\nMoreover, employees working within the industry still grapple with wage and tenure-related problems, according to a labor group.
\n\u201cIt\u2019s actually the workers who are experiencing [the effects of] inflation more because of the higher prices,\u201d Emman D. David, co-convenor of Alliance of Call Center Workers, said via phone call. \u201cOur wages are indeed higher than minimum but it\u2019s really not enough.\u201d
\nWorkers are placed in floating status when companies need to downsize. \u201cOr worse, our performances are used against us,\u201d Mr. David said.
\nCall center workers need to be pushed to speak up against issues plaguing their sector, he added.
\n\u201cProblems are only addressed collectively if there\u2019s an issue that is urgent or pressing.\u201d
\nA proposed law that institutionalizes the Magna Carta for call center workers has been pending at the House Committee on Labor and Employment.
\n\u201cI think the challenge for us is to be able to renew our organization [to unionize] in order to convince to challenge our fellow workers that this is something that we should fight for,\u201d Mr. David said.
\n", "content_text": "By Beatriz Marie D. Cruz, Reporter\nTHE Philippine call center industry is aiming to grow in rural areas to support inclusive growth, according to industry leaders.\n\u201cWith 70% of the workforce in Manila and 30% in the countryside, the vision for 2028 entails a minimum of 40% in rural areas and a maximum of 60% in Metro Manila,\u201d Rosario C. Bradbury, managing director of the Contact Center Association of the Philippines, said in an interview with BusinessWorld.\nThe IT and Business Process Association of the Philippines (IBPAP), along with the Department of Information and Communications Technology and Leechiu Property Consultants, introduced the Digital Cities 2025 initiative in 2020.\nThe program aims to transform rural areas into thriving business hubs and prime choices for international investments, according to IBPAP.\nThe 25 digital cities are scattered across Luzon, Visayas, and Mindanao.\n\u201cAs an association, our goal is to help enable them to grow,\u201d Ms. Bradbury said. \u201cOur vision is to become the world\u2019s number one for digital enabled customer services.\u201d\nThis is in line with the 2028 roadmap for the information technology (IT) and business process management industry, which seeks to grow at 2.5 million full-time workers and at P59 billion in revenue by 2028.\nIn 2022, the industry generated P32.5 billion in revenue, up from P29.5 billion in 2021, and saw an increase in full-time workers from 1.44 million to 1.57 million.\nThere have been significant countryside expansions in Cebu, Davao, Bacolod, Pampanga, and Laguna, according to IBPAP President and Chief Executive Officer Jack Madrid.\nOver 70,000 new jobs were created outside of the capital region, marking a 17% increase from 2021. \u201cBy the end of 2022, 31% of the sector\u2019s total headcount, or 486,000 full-time workers, were in the countryside,\u201d Mr. Madrid said in an email interview.\nFour \u201clevers\u201d would expedite the achievement of the industry\u2019s 2028 targets \u2014 policy support and ease of doing business, talent development, infrastructure, and marketing, Ms. Bradbury said.\nEmerging from the coronavirus pandemic, the industry has embraced diverse workflows to enhance service quality, with a specific focus on remote work and new technologies, according to Mr. Madrid.\n\u201cRemote work presented numerous advantages, but companies realized that, to make it successful for them, they had to invest in culture, training, and technology,\u201d he said.\nAbout 30% to 40% of employees work remotely while 60% to 70% are onsite, he noted.\nAmid changes brought about by the pandemic, it was necessary to maintain the quality of the workers\u2019 outputs, Concentrix Senior Vice-President and Country Leader Amit Jagga said.\n\u201cAfter the pandemic, we realized all the more that staff experience and engagement make the difference in terms of organizational success, as the pool of available talent is also changing and expanding, and new types of work are created with phenomena like gig economy and freelancing adding to the competitive landscape in the war for talent,\u201d Mr. Jagga said in a Viber message.\nSome companies have implemented innovative solutions that minimized internet usage.\n\u201cWe also needed to reassess our collection of software and technology tools. If they operate online, they were designed not to consume excessive bandwidth,\u201d said Jenny R. Constantino, Country Manager of RealPage based in Texas.\nShe also highlighted the importance of nurturing a positive work culture to elevate work quality.\n\u201cThe work environment affects the way people work, and you really need to adapt to how they manage their personal lives and work within their homes. So, that, to me, is an adjustment we have learned in the process,\u201d she said.\nGENERATIVE AI\nContrary to popular belief, the industry considers the emergence of generative artificial intelligence (AI) a blessing rather than a curse, according to Ms. Constantino.\n\u201cA tool can tell me if a call has a client that\u2019s frustrated,\u201d she said, noting how AI has even enhanced the services of her company.\n\u201cAI is useful for us as we operate in areas of hire, how we manage our operations, productivity and performance\u2026[as well as] thinking of the right tools in order to support the clients that we have,\u201d she added.\nShe said that AI assists call center workers in addressing numerous customer queries in a short span of time.\nIn the past, a supervisor would listen to calls for quality assurance and feedback, but now AI can handle that task, Ms. Bradbury noted.\n\u201cThis technology has been present in this industry for a long time… It\u2019s a matter of reallocating your personnel to roles where they can contribute greater value to the industry now,\u201d stated Ms. Constantino said.\nResearch and advisory company Gartner said that by 2026, the call center industry will possibly cut costs by up to $80 billion by replacing humans with AI chatbots.\nBy 2026, the call center industry will possibly cut costs by up to $80 billion by replacing humans with AI chatbots, according to research firm Gartner .\nAI \u201cisn\u2019t about reducing headcount but upskilling and re-skilling teams to operate smarter and to deliver higher value work,\u201d Concentrix\u2019s Mr. Jagga said.\nMoreover, employees working within the industry still grapple with wage and tenure-related problems, according to a labor group.\n\u201cIt\u2019s actually the workers who are experiencing [the effects of] inflation more because of the higher prices,\u201d Emman D. David, co-convenor of Alliance of Call Center Workers, said via phone call. \u201cOur wages are indeed higher than minimum but it\u2019s really not enough.\u201d\nWorkers are placed in floating status when companies need to downsize. \u201cOr worse, our performances are used against us,\u201d Mr. David said.\nCall center workers need to be pushed to speak up against issues plaguing their sector, he added.\n\u201cProblems are only addressed collectively if there\u2019s an issue that is urgent or pressing.\u201d\nA proposed law that institutionalizes the Magna Carta for call center workers has been pending at the House Committee on Labor and Employment.\n\u201cI think the challenge for us is to be able to renew our organization [to unionize] in order to convince to challenge our fellow workers that this is something that we should fight for,\u201d Mr. David said.", "date_published": "2023-09-04T00:12:32+08:00", "date_modified": "2023-09-03T14:24:30+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/no-people-desk-with-multiple-computers-call-center-office-used-by-telemarketing-agents-answer-phone-calls-helpline-empty-space-with-technology-give-assistance-customer-care.jpg", "tags": [ "Beatriz Marie D. Cruz", "bw36", "Special Reports" ], "summary": "THE Philippine call center industry is aiming to grow in rural areas to support inclusive growth, according to industry leaders." }, { "id": "https://www.bworldonline.com/?p=543013", "url": "https://www.bworldonline.com/special-reports/2023/09/04/543013/advancing-diversity-equity-and-inclusion-in-the-workplace/", "title": "Advancing diversity, equity and inclusion in the workplace", "content_html": "By Sharon G. Dayoan
\nIN TODAY\u2019s dynamic and interconnected business landscape, the importance of diversity, equity and inclusion (DEI) cannot be overstated. Companies that prioritize DEI initiatives reap numerous benefits, from outperforming their competitors and attracting top talent to fostering a culture of creativity and collaboration. Beyond financial gains, DEI also plays a significant role in shaping a company\u2019s reputation, as consumers and investors increasingly seek ethical and socially responsible businesses to support.
\nBut how does DEI really look like in the workplace? In recent years, we have witnessed a remarkable shift in the work environment, particularly in regard to gender representation. As DEI initiatives have gained momentum, more women are breaking through the glass ceiling and taking up positions at the board level. The underrepresentation of women in leadership roles has long been a challenge, but now, progressive companies are actively working toward gender parity and promoting women\u2019s voices in the decision-making process. This shift not only leads to better corporate governance but also sets an inspiring example for future generations, demonstrating that diversity is key to success at all levels of an organization.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S9-4-2023-AR-09.04.23-FINAL-infog1-scaled.jpg\")
Organizations like the NextGen Organization of Women Corporate Directors (NOWCD) in the Philippines, a nonprofit organization that advocates gender diversity on corporate boards and executive positions, play a crucial role in advancing the DEI conversation. As a trustee at NOWCD, we build a community that provides a platform for women leaders in the corporate world to share insights, experiences and best practices with fellow Filipina leaders. More specifically, NOWCD is committed to engage with various stakeholders to advocate board diversity and inclusion, increase membership to build a pipeline of board-ready women directors and develop programs to support the transition of C-level women executives to the B-suite.
Championing DEI in the workplace has been increasingly becoming a focus for large corporations in the Philippines and across the globe. Board leaders should ensure their commitment to DEI, actively communicate their advocacy to their employees and hold themselves accountable in achieving them.
\nNow more than ever, businesses should integrate DEI practices into their organizational models and policies. Embedding DEI into policy by securing the senior leadership\u2019s commitment and creating a committee dedicated to DEI will drive not only conversations but concrete actions in achieving equity and women empowerment.
\nBy integrating diverse hiring practices, businesses can minimize unconscious bias and ensure fair evaluation among candidates joining the organization. Setting measurable goals in achieving DEI and properly monitoring and reporting its progress can help identify areas for improvement to adjust strategies accordingly.
\nOffering training as well as mentorship and sponsorship programs anchored on DEI can help raise awareness and break the bias surrounding gender equality. Board leaders should also promote equal policies and benefits to all employees, fostering a culture of inclusion and openness in the workplace.
\nAnother initiative is through Women\u2019s Empowerment Principles, of which KPMG in the Philippines is a signatory. As its chairman and CEO, our firm adopts this set of principles established by UN Women and UN Global Impact in advancing gender equality and women empowerment in the workplace, marketplace and community.
\nEfforts in pushing forward DEI comes in many forms, and companies are embracing various practices to foster an inclusive environment that celebrates diversity. From actively working to eliminate biases from the hiring process, ensuring that all candidates have an equal opportunity to showcase their skills and potential, to investing in employee training and education, business leaders, together with the government and regulatory bodies, have recognized the value of establishing a culture of care \u2014 driving systemic changes and ensuring that fair and inclusive practices are adhered to. Collaboration between the public and private sectors is crucial to accelerate DEI initiatives, leveraging collective efforts for greater impact.
\nThe importance of diversity, equity and inclusion in the workplace transcends mere corporate buzzwords; it is the key to unlocking the full potential of businesses and individuals alike. The journey will be challenging and will take time, but together, we can effect positive change and pave the way for a stronger and more equitable society.
\n\n
Sharon G. Dayoan is the chairman and CEO of KPMG in the Philippines.
\n", "content_text": "By Sharon G. Dayoan \nIN TODAY\u2019s dynamic and interconnected business landscape, the importance of diversity, equity and inclusion (DEI) cannot be overstated. Companies that prioritize DEI initiatives reap numerous benefits, from outperforming their competitors and attracting top talent to fostering a culture of creativity and collaboration. Beyond financial gains, DEI also plays a significant role in shaping a company\u2019s reputation, as consumers and investors increasingly seek ethical and socially responsible businesses to support.\nBut how does DEI really look like in the workplace? In recent years, we have witnessed a remarkable shift in the work environment, particularly in regard to gender representation. As DEI initiatives have gained momentum, more women are breaking through the glass ceiling and taking up positions at the board level. The underrepresentation of women in leadership roles has long been a challenge, but now, progressive companies are actively working toward gender parity and promoting women\u2019s voices in the decision-making process. This shift not only leads to better corporate governance but also sets an inspiring example for future generations, demonstrating that diversity is key to success at all levels of an organization.\nOrganizations like the NextGen Organization of Women Corporate Directors (NOWCD) in the Philippines, a nonprofit organization that advocates gender diversity on corporate boards and executive positions, play a crucial role in advancing the DEI conversation. As a trustee at NOWCD, we build a community that provides a platform for women leaders in the corporate world to share insights, experiences and best practices with fellow Filipina leaders. More specifically, NOWCD is committed to engage with various stakeholders to advocate board diversity and inclusion, increase membership to build a pipeline of board-ready women directors and develop programs to support the transition of C-level women executives to the B-suite.\nChampioning DEI in the workplace has been increasingly becoming a focus for large corporations in the Philippines and across the globe. Board leaders should ensure their commitment to DEI, actively communicate their advocacy to their employees and hold themselves accountable in achieving them.\nNow more than ever, businesses should integrate DEI practices into their organizational models and policies. Embedding DEI into policy by securing the senior leadership\u2019s commitment and creating a committee dedicated to DEI will drive not only conversations but concrete actions in achieving equity and women empowerment.\nBy integrating diverse hiring practices, businesses can minimize unconscious bias and ensure fair evaluation among candidates joining the organization. Setting measurable goals in achieving DEI and properly monitoring and reporting its progress can help identify areas for improvement to adjust strategies accordingly.\nOffering training as well as mentorship and sponsorship programs anchored on DEI can help raise awareness and break the bias surrounding gender equality. Board leaders should also promote equal policies and benefits to all employees, fostering a culture of inclusion and openness in the workplace.\nAnother initiative is through Women\u2019s Empowerment Principles, of which KPMG in the Philippines is a signatory. As its chairman and CEO, our firm adopts this set of principles established by UN Women and UN Global Impact in advancing gender equality and women empowerment in the workplace, marketplace and community.\nEfforts in pushing forward DEI comes in many forms, and companies are embracing various practices to foster an inclusive environment that celebrates diversity. From actively working to eliminate biases from the hiring process, ensuring that all candidates have an equal opportunity to showcase their skills and potential, to investing in employee training and education, business leaders, together with the government and regulatory bodies, have recognized the value of establishing a culture of care \u2014 driving systemic changes and ensuring that fair and inclusive practices are adhered to. Collaboration between the public and private sectors is crucial to accelerate DEI initiatives, leveraging collective efforts for greater impact.\nThe importance of diversity, equity and inclusion in the workplace transcends mere corporate buzzwords; it is the key to unlocking the full potential of businesses and individuals alike. The journey will be challenging and will take time, but together, we can effect positive change and pave the way for a stronger and more equitable society.\n \nSharon G. Dayoan is the chairman and CEO of KPMG in the Philippines.", "date_published": "2023-09-04T00:11:31+08:00", "date_modified": "2023-09-03T14:22:07+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/woman-man-standing-same-height.jpg", "tags": [ "bw36", "Sharon G. Dayoan", "Special Reports" ], "summary": "IN TODAY\u2019s dynamic and interconnected business landscape, the importance of diversity, equity and inclusion (DEI) cannot be overstated. Companies that prioritize DEI initiatives reap numerous benefits, from outperforming their competitors and attracting top talent to fostering a culture of creativity and collaboration." }, { "id": "https://www.bworldonline.com/?p=542987", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542987/philippine-telcos-strategize-to-leverage-ai-internet-of-things/", "title": "Philippine telcos strategize to leverage AI, Internet of Things", "content_html": "By Justine Irish D. Tabile, Reporter
\nTELECOMMUNICATIONS companies in the Philippines are getting ready to take advantage of the increasing adoption of advanced technologies, according to industry executives.
\nArtificial intelligence (AI) and the internet of things (IoT) continue to gain traction in the country, and telecom companies are capitalizing on their strength to cater to the rising demand for better connectivity, Converge ICT Solutions, Inc. Co-Founder and Chief Executive Officer Dennis Anthony H. Uy said.
\n\u201cAI will be a game changer in the industry for sure,\u201d he said in an e-mail interview.
\n\u201cWe\u2019re also seeing a more \u2018hyper-connected\u2019 or IoT approach in the country; this is not new of course, but being a broadband provider, this is where we want to leverage our strength.\u201d
\nTelcos may use AI to be more predictive and, eventually, prescriptive in how they operate, according to Roderick S. Santiago, network head at PLDT, Inc. and Smart Communications, Inc.
\n\u201cWe can double the capacity and speed of thinking of this AI by using a five-nanometer and later on three-nanometer (chips),\u201d he said in an interview.
\n\u201cThose are key innovations that we could see in the next few years to be able to help us to better serve our customers.\u201d
\nThe Philippines\u2019 Trade department has introduced an AI roadmap to steer technology use for local industries\u2019 regional and global competitiveness.
\nAI adoption could potentially elevate the Philippines\u2019 gross domestic product by 12% by 2030, amounting to around $92 billion, the department said in a statement.
\nMeanwhile, DITO Telecommunity Corp. is looking at the potential use cases of the fifth-generation (5G) technology in the Philippines, according to Adel A. Tamano, the company\u2019s chief administrative officer.
\n\u201cWe are looking at what is happening in our partners in China because they were the first ones who adopted 5G technology and are extensively using it in manufacturing, seaport and airport operations, and in fact even in agriculture. We wanted to see how it can be adopted in the Philippines,\u201d he said in an interview.
\nIn a report by S&P Global Ratings, 5G population coverage in the Philippines is still between 60% to 80%, on par with Malaysia and falling behind Australia, China, New Zealand, South Korea, Hong Kong, Japan, Singapore, Taiwan, and Thailand.
\nThe ICT industry landscape has been disrupted by the pandemic, policy changes, and the adoption of new technology, prompting companies to realign priorities.
\nThe public health crisis shut down businesses and transportation, impacting traditional brick-and-mortar establishments and goods transportation. However, telcos experienced increased demand, particularly for connectivity and data due to remote work and study.
\nAs for Globe Telecom, Inc., the pandemic caused a 2% decline in service revenues in 2020 compared to the previous year.
\n\u201cThis was due to the impact of quarantine restrictions on the overall economy,\u201d said Maria Yolanda C. Crisanto, chief sustainability and corporate communications officer at Globe, in an email interview.
\nMore Filipinos integrated their work, school, shopping, and other activities from home, leading to increased data consumption. This shift contributed to the rise in data revenue\u2019s share of Globe\u2019s total revenues, increasing from 71% in 2019 to 76% in 2020.
\n\u201cThe greater need for connectivity and digital solutions during the pandemic served as an impetus for the Globe group to more aggressively pursue innovations that will solve Filipinos\u2019 daily pain points,\u201d said Ms. Crisanto.
\nConverge\u2019s Mr. Uy said that instead of downsizing during the pandemic, the company opted to hire more individuals and expand its workforce to support the ambitious growth of its fiber broadband network.
\n\u201cWhat I can see in the industry is that it is in a very disruptive situation. Our first disruption was the pandemic \u2026 and then the next disruption was the SIM (subscriber identity module) registration law,\u201d he said.
\nThe SIM registration law pushes people to be now more attached to their numbers and phones and discourages single-use SIM cards, DITO\u2019s Mr. Tamano said.
\n\u201cI think what\u2019s good for us, and for the industry as a whole, is that we now know who our revenue-generating base is, and then we will just need to build on that,\u201d he said.
\nOUTLOOK
\nWhile there was moderated growth in home broadband, the expansion of fixed-line subscribers outpaced the contraction of fixed wireless subscribers, Unicapital Securities, Inc.\u2019s Senior Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message, referring to the telcos\u2019 first-quarter performance.
\u201cThis trend is likely to continue as mobility improves, offset by an increase in spending power due to easing inflation.\u201d
\nThere is sustained demand for data, playing a pivotal role in driving the mobile segment, despite a reduction in subscriber count due to inflation and SIM registration, Mr. Temporal also noted.
\n\u201cElevated inflation in the initial months affected prepaid subscriber count. With inflation easing, the mobile segment is expected to benefit.\u201d
\n\u201cNevertheless, we remain concerned about the potential impact of terminated SIM cards, accounting for 35% of total subscribers, following the expiry of the SIM registration period.\u201d
\nApart from the surging demand for data and the adoption of mobile internet, the government\u2019s initiatives to drive digital transformation will also contribute to industry growth, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.
\n\u201cThe Philippine government and businesses are increasingly embracing digital transformation to enhance efficiency and improve customer experiences,\u201d he said. \u201cICT companies can play a significant role in providing the necessary technology solutions and services.\u201d
\nMr. Temporal also highlighted potential opportunities for the sector, including the emergence of new use cases for 5G, hyperscale data centers, and the sustained value creation of fintech companies, particularly Globe and Smart.
\nExploring partnerships and collaborations will uncover new growth avenues, expand service offerings, and broaden market reach, according to Mr. Arce.
\nThe industry also faces significant risks, such as intense competition, regulatory changes, and cyber threats, he added.
\n\u201cOverall, while the Philippine telco and ICT industry offer considerable opportunities for growth, companies must navigate the challenges posed by competition, regulation, and technology disruptions to stay ahead in the market.\u201d
\n\u201cAs technology evolves rapidly, staying updated on emerging trends and consumer demands will be vital for sustained success,\u201d he also said.
\n", "content_text": "By Justine Irish D. Tabile, Reporter\nTELECOMMUNICATIONS companies in the Philippines are getting ready to take advantage of the increasing adoption of advanced technologies, according to industry executives.\nArtificial intelligence (AI) and the internet of things (IoT) continue to gain traction in the country, and telecom companies are capitalizing on their strength to cater to the rising demand for better connectivity, Converge ICT Solutions, Inc. Co-Founder and Chief Executive Officer Dennis Anthony H. Uy said.\n\u201cAI will be a game changer in the industry for sure,\u201d he said in an e-mail interview.\n\u201cWe\u2019re also seeing a more \u2018hyper-connected\u2019 or IoT approach in the country; this is not new of course, but being a broadband provider, this is where we want to leverage our strength.\u201d\nTelcos may use AI to be more predictive and, eventually, prescriptive in how they operate, according to Roderick S. Santiago, network head at PLDT, Inc. and Smart Communications, Inc.\n\u201cWe can double the capacity and speed of thinking of this AI by using a five-nanometer and later on three-nanometer (chips),\u201d he said in an interview.\n\u201cThose are key innovations that we could see in the next few years to be able to help us to better serve our customers.\u201d\nThe Philippines\u2019 Trade department has introduced an AI roadmap to steer technology use for local industries\u2019 regional and global competitiveness.\nAI adoption could potentially elevate the Philippines\u2019 gross domestic product by 12% by 2030, amounting to around $92 billion, the department said in a statement.\nMeanwhile, DITO Telecommunity Corp. is looking at the potential use cases of the fifth-generation (5G) technology in the Philippines, according to Adel A. Tamano, the company\u2019s chief administrative officer.\n\u201cWe are looking at what is happening in our partners in China because they were the first ones who adopted 5G technology and are extensively using it in manufacturing, seaport and airport operations, and in fact even in agriculture. We wanted to see how it can be adopted in the Philippines,\u201d he said in an interview.\nIn a report by S&P Global Ratings, 5G population coverage in the Philippines is still between 60% to 80%, on par with Malaysia and falling behind Australia, China, New Zealand, South Korea, Hong Kong, Japan, Singapore, Taiwan, and Thailand.\nThe ICT industry landscape has been disrupted by the pandemic, policy changes, and the adoption of new technology, prompting companies to realign priorities.\nThe public health crisis shut down businesses and transportation, impacting traditional brick-and-mortar establishments and goods transportation. However, telcos experienced increased demand, particularly for connectivity and data due to remote work and study.\nAs for Globe Telecom, Inc., the pandemic caused a 2% decline in service revenues in 2020 compared to the previous year.\n\u201cThis was due to the impact of quarantine restrictions on the overall economy,\u201d said Maria Yolanda C. Crisanto, chief sustainability and corporate communications officer at Globe, in an email interview.\nMore Filipinos integrated their work, school, shopping, and other activities from home, leading to increased data consumption. This shift contributed to the rise in data revenue\u2019s share of Globe\u2019s total revenues, increasing from 71% in 2019 to 76% in 2020.\n\u201cThe greater need for connectivity and digital solutions during the pandemic served as an impetus for the Globe group to more aggressively pursue innovations that will solve Filipinos\u2019 daily pain points,\u201d said Ms. Crisanto. \nConverge\u2019s Mr. Uy said that instead of downsizing during the pandemic, the company opted to hire more individuals and expand its workforce to support the ambitious growth of its fiber broadband network.\n\u201cWhat I can see in the industry is that it is in a very disruptive situation. Our first disruption was the pandemic \u2026 and then the next disruption was the SIM (subscriber identity module) registration law,\u201d he said.\nThe SIM registration law pushes people to be now more attached to their numbers and phones and discourages single-use SIM cards, DITO\u2019s Mr. Tamano said.\n\u201cI think what\u2019s good for us, and for the industry as a whole, is that we now know who our revenue-generating base is, and then we will just need to build on that,\u201d he said.\nOUTLOOK\nWhile there was moderated growth in home broadband, the expansion of fixed-line subscribers outpaced the contraction of fixed wireless subscribers, Unicapital Securities, Inc.\u2019s Senior Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message, referring to the telcos\u2019 first-quarter performance.\n\u201cThis trend is likely to continue as mobility improves, offset by an increase in spending power due to easing inflation.\u201d\nThere is sustained demand for data, playing a pivotal role in driving the mobile segment, despite a reduction in subscriber count due to inflation and SIM registration, Mr. Temporal also noted.\n\u201cElevated inflation in the initial months affected prepaid subscriber count. With inflation easing, the mobile segment is expected to benefit.\u201d\n\u201cNevertheless, we remain concerned about the potential impact of terminated SIM cards, accounting for 35% of total subscribers, following the expiry of the SIM registration period.\u201d\nApart from the surging demand for data and the adoption of mobile internet, the government\u2019s initiatives to drive digital transformation will also contribute to industry growth, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.\n\u201cThe Philippine government and businesses are increasingly embracing digital transformation to enhance efficiency and improve customer experiences,\u201d he said. \u201cICT companies can play a significant role in providing the necessary technology solutions and services.\u201d\nMr. Temporal also highlighted potential opportunities for the sector, including the emergence of new use cases for 5G, hyperscale data centers, and the sustained value creation of fintech companies, particularly Globe and Smart.\nExploring partnerships and collaborations will uncover new growth avenues, expand service offerings, and broaden market reach, according to Mr. Arce.\nThe industry also faces significant risks, such as intense competition, regulatory changes, and cyber threats, he added.\n\u201cOverall, while the Philippine telco and ICT industry offer considerable opportunities for growth, companies must navigate the challenges posed by competition, regulation, and technology disruptions to stay ahead in the market.\u201d\n\u201cAs technology evolves rapidly, staying updated on emerging trends and consumer demands will be vital for sustained success,\u201d he also said.", "date_published": "2023-09-04T00:10:58+08:00", "date_modified": "2023-09-03T14:18:30+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/04/LRT-Commuters-mobile-phones.jpg", "tags": [ "bw36", "Justine Irish D. Tabile", "Special Reports" ], "summary": "TELECOMMUNICATIONS companies in the Philippines are getting ready to take advantage of the increasing adoption of advanced technologies, according to industry executives." }, { "id": "https://www.bworldonline.com/?p=542986", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542986/the-future-of-art-bridging-the-traditional-and-the-digital/", "title": "The future of art: Bridging the traditional and the digital", "content_html": "By Bront\u00eb H. Lacsamana, Reporter
\nFOR a sector of society that takes inspiration from the world and channels it into creative output, the pandemic made everything seem smaller, darker, and bleaker. Movement was restricted, people stayed put, and physical spaces for sharing and showcasing art were limited.
\nBut somehow the world also became larger. Artists did online commissions, communities formed around digital art, and institutions utilized technologies like QR codes and hybrid displays to bring art to the people.
\nTrickie Colayco-Lopa, one of the founders of Art Fair Philippines, reports that art collecting shifted seamlessly to online and messaging platforms in the past few years.
\n![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S11.1-4-2023-AR-09.04.23-02-FINAL-Infog1-scaled.jpg\")
\u201cWith regards to commercial art activities, I think any interruptions occurred briefly, in the beginning of the lockdown, but recovered quickly once online platforms became available,\u201d she said in an e-mail to BusinessWorld.
Art Fair Philippines, a long-standing beacon of the local art scene, tapped into that very quickly and highlighted digital art in its 2021 online edition, its own adaptation to the lockdowns which made its regular onsite fairs in a Makati carpark and park unfeasible. In 2022, the online visitors to its hybrid online-onsite exhibition were triple the number of its physical visitors.
\n\u201cWe discovered that we have a sizeable digital art and crypto art community here in the Philippines, impervious to any of the developments in the cryptocurrency market. These artists, not cryptocurrency investors, work with technology as their medium to make art,\u201d Ms. Lopa said.
\nIn the 2023 fair, ArtFairPH/Digital was cemented as an official section, putting the spotlight on digital media work that incorporates and engages with computer technology, animation, virtual or augmented reality, the metaverse, or non-fungible tokens (NFTs). \u201cDigital artists are a strong community, and they will continue to make art,\u201d she said.
\nRicky Francisco, Fundacion Sanso gallery director and Modern and Contemporary Art Festival (MoCAF) chairman, said that the shift that the pandemic caused has ultimately paved the way for newer and younger artists. On the potential of the digital world as a breeding ground for talent, he told BusinessWorld in an interview, \u201cThe traditional art system is against newer artists. Most galleries, especially established ones, don\u2019t give chances, but there are a lot of younger people now who are into arts.\u201d
\nHence, many galleries and festivals have chosen to adjust to the times and go where the art community is. \u201cI think there\u2019s a real chance here to integrate the best features of technology into our existing art systems,\u201d said Mr. Francisco.
\nDIVING INTO THE TECH
\nFundacion Sanso is looking into blockchain, a technology that uses smart contracts to verify authenticity, as a way of combating art forgery.
\u201cIf we can document all the works on the blockchain, all provenance will be preserved every time an artwork transfers ownership,\u201d he explained.
\nThis year\u2019s MoCAF also welcomed artists and designers who utilize artificial intelligence (AI) tools like ChatGPT or Midjourney \u2014 within certain limits. \u201cBy feeding their artworks there, by putting in a database of their own works, they can generate new ideas and then execute one in the traditional way. In that sense, it becomes a valuable tool and I think it\u2019s here to stay,\u201d he said.
\nWithout such limits, however, these controversial AI tools can become a form of plagiarism, since they draw heavily from publicly available works despite the original artists not consenting to it.
\nMia Rocha-Lauchengco, a co-director of Galeria Paloma, which is holding its very first Paloma Digital Art Awards this year, agreed with Mr. Francisco\u2019s sentiment that AI tools are a useful supplement to an artist\u2019s work.
\n\u201cFor our awards, because we are aware of AI\u2019s copyright issues, we\u2019ll only allow artists who use AI provided that the data sets, which means the images or material fed into the tool, are also by the same artist,\u201d she said.
\nThe new platform, which they formed to \u201cget digital artists out of the woodwork,\u201d is one of their efforts to legitimize the community.
\n\u201cDigital art has been here for three decades. It\u2019s nothing new. But for the longest time, it wasn\u2019t considered fine art because it\u2019s usually for commercial purposes like designs and layouts. That was the way for digital artists to earn a living out of it. Now, it\u2019s different,\u201d said Ms. Lauchengco.
\nAt Art Fair Philippines, Galeria Paloma was one of the galleries that put up digital art, even holding discussions to educate those curious about what exactly it is.
\nGeorgia Rocha-Chu, one of the gallery\u2019s co-directors, explained that they initially got into the scene when they encouraged their painter-sculptor father, Carlos Rocha, to make digital art.
\n\u201cFrom there, we met a whole community of digital artists who are so talented. The well of talent is so deep here,\u201d she said. \u201cSure, when we started carrying digital art last year, we had apprehensions. But when we\u2019ve found that it was the right track.\u201d
\nShe added that 75% of collectors that come to them are first-time digital art collectors, indicating a new world in terms of art.
\nLET\u2019S GET PHYSICAL
\nAll the galleries and festivals interviewed by BusinessWorld for this piece echoed the sentiment that the traditional and digital art worlds can benefit each other and the greater art market if they exist and work in conjunction.
This means that physical spaces are still a major part of the equation, especially now that regular foot traffic has returned.
\nMs. Lopa of Art Fair Philippines said: \u201cWe realize how much more enjoyable it is to appreciate and peruse art live. Hence, the big comeback of our audience for 2023.\u201d
\nFor malls that transform their halls into exhibition spaces, displaying art was never discounted even during the pandemic.
\nBonifacio Global City (BGC) Estate Association executive director Jun Galvez said that the Van Gogh Alive interactive art exhibit in 2019 was very successful. While planning for the next AI-made multi-sensory experience, COVID-19 arrived and so did the restrictions meant to control its spread, halting their plans.
\n\u201cNow that we\u2019re back to normal, we want to continue providing immersive experiences because we don\u2019t have a lot of these kinds of shows in the Philippines. The result was overwhelming before and it proved that Filipinos are into art, especially digital art,\u201d Mr. Galvez said. This is why the One Bonifacio High Street mall will host a similar exhibit, called \u201cWisdom of Da Vinci,\u201d this August.
\nGeraldine \u201cDindin\u201d Araneta, one of the Art Fair Philippines founders, added that new galleries, exhibitions, and fairs have either continued despite the pandemic or cropped up over the last few years.
\n\u201cIt indicates an active art market, and artists are occupied with production for the market,\u201d she said in an e-mail.
\nMs. Chu of Galeria Paloma maintained that the bridging of traditional and digital art is simply inevitable, what with the demand for both in full swing.
\n\u201cGalleries are now more open. Collectors are also more curious. In terms of a trajectory, the only way is up,\u201d she said.
\n", "content_text": "By Bront\u00eb H. Lacsamana, Reporter\nFOR a sector of society that takes inspiration from the world and channels it into creative output, the pandemic made everything seem smaller, darker, and bleaker. Movement was restricted, people stayed put, and physical spaces for sharing and showcasing art were limited.\nBut somehow the world also became larger. Artists did online commissions, communities formed around digital art, and institutions utilized technologies like QR codes and hybrid displays to bring art to the people.\nTrickie Colayco-Lopa, one of the founders of Art Fair Philippines, reports that art collecting shifted seamlessly to online and messaging platforms in the past few years.\n\u201cWith regards to commercial art activities, I think any interruptions occurred briefly, in the beginning of the lockdown, but recovered quickly once online platforms became available,\u201d she said in an e-mail to BusinessWorld.\nArt Fair Philippines, a long-standing beacon of the local art scene, tapped into that very quickly and highlighted digital art in its 2021 online edition, its own adaptation to the lockdowns which made its regular onsite fairs in a Makati carpark and park unfeasible. In 2022, the online visitors to its hybrid online-onsite exhibition were triple the number of its physical visitors.\n\u201cWe discovered that we have a sizeable digital art and crypto art community here in the Philippines, impervious to any of the developments in the cryptocurrency market. These artists, not cryptocurrency investors, work with technology as their medium to make art,\u201d Ms. Lopa said.\nIn the 2023 fair, ArtFairPH/Digital was cemented as an official section, putting the spotlight on digital media work that incorporates and engages with computer technology, animation, virtual or augmented reality, the metaverse, or non-fungible tokens (NFTs). \u201cDigital artists are a strong community, and they will continue to make art,\u201d she said.\nRicky Francisco, Fundacion Sanso gallery director and Modern and Contemporary Art Festival (MoCAF) chairman, said that the shift that the pandemic caused has ultimately paved the way for newer and younger artists. On the potential of the digital world as a breeding ground for talent, he told BusinessWorld in an interview, \u201cThe traditional art system is against newer artists. Most galleries, especially established ones, don\u2019t give chances, but there are a lot of younger people now who are into arts.\u201d\nHence, many galleries and festivals have chosen to adjust to the times and go where the art community is. \u201cI think there\u2019s a real chance here to integrate the best features of technology into our existing art systems,\u201d said Mr. Francisco.\nDIVING INTO THE TECH\nFundacion Sanso is looking into blockchain, a technology that uses smart contracts to verify authenticity, as a way of combating art forgery.\n\u201cIf we can document all the works on the blockchain, all provenance will be preserved every time an artwork transfers ownership,\u201d he explained.\nThis year\u2019s MoCAF also welcomed artists and designers who utilize artificial intelligence (AI) tools like ChatGPT or Midjourney \u2014 within certain limits. \u201cBy feeding their artworks there, by putting in a database of their own works, they can generate new ideas and then execute one in the traditional way. In that sense, it becomes a valuable tool and I think it\u2019s here to stay,\u201d he said.\nWithout such limits, however, these controversial AI tools can become a form of plagiarism, since they draw heavily from publicly available works despite the original artists not consenting to it. \nMia Rocha-Lauchengco, a co-director of Galeria Paloma, which is holding its very first Paloma Digital Art Awards this year, agreed with Mr. Francisco\u2019s sentiment that AI tools are a useful supplement to an artist\u2019s work.\n\u201cFor our awards, because we are aware of AI\u2019s copyright issues, we\u2019ll only allow artists who use AI provided that the data sets, which means the images or material fed into the tool, are also by the same artist,\u201d she said.\nThe new platform, which they formed to \u201cget digital artists out of the woodwork,\u201d is one of their efforts to legitimize the community.\n\u201cDigital art has been here for three decades. It\u2019s nothing new. But for the longest time, it wasn\u2019t considered fine art because it\u2019s usually for commercial purposes like designs and layouts. That was the way for digital artists to earn a living out of it. Now, it\u2019s different,\u201d said Ms. Lauchengco.\nAt Art Fair Philippines, Galeria Paloma was one of the galleries that put up digital art, even holding discussions to educate those curious about what exactly it is.\nGeorgia Rocha-Chu, one of the gallery\u2019s co-directors, explained that they initially got into the scene when they encouraged their painter-sculptor father, Carlos Rocha, to make digital art.\n\u201cFrom there, we met a whole community of digital artists who are so talented. The well of talent is so deep here,\u201d she said. \u201cSure, when we started carrying digital art last year, we had apprehensions. But when we\u2019ve found that it was the right track.\u201d\nShe added that 75% of collectors that come to them are first-time digital art collectors, indicating a new world in terms of art.\nLET\u2019S GET PHYSICAL\nAll the galleries and festivals interviewed by BusinessWorld for this piece echoed the sentiment that the traditional and digital art worlds can benefit each other and the greater art market if they exist and work in conjunction.\nThis means that physical spaces are still a major part of the equation, especially now that regular foot traffic has returned.\nMs. Lopa of Art Fair Philippines said: \u201cWe realize how much more enjoyable it is to appreciate and peruse art live. Hence, the big comeback of our audience for 2023.\u201d\nFor malls that transform their halls into exhibition spaces, displaying art was never discounted even during the pandemic.\nBonifacio Global City (BGC) Estate Association executive director Jun Galvez said that the Van Gogh Alive interactive art exhibit in 2019 was very successful. While planning for the next AI-made multi-sensory experience, COVID-19 arrived and so did the restrictions meant to control its spread, halting their plans.\n\u201cNow that we\u2019re back to normal, we want to continue providing immersive experiences because we don\u2019t have a lot of these kinds of shows in the Philippines. The result was overwhelming before and it proved that Filipinos are into art, especially digital art,\u201d Mr. Galvez said. This is why the One Bonifacio High Street mall will host a similar exhibit, called \u201cWisdom of Da Vinci,\u201d this August. \nGeraldine \u201cDindin\u201d Araneta, one of the Art Fair Philippines founders, added that new galleries, exhibitions, and fairs have either continued despite the pandemic or cropped up over the last few years.\n\u201cIt indicates an active art market, and artists are occupied with production for the market,\u201d she said in an e-mail.\nMs. Chu of Galeria Paloma maintained that the bridging of traditional and digital art is simply inevitable, what with the demand for both in full swing.\n\u201cGalleries are now more open. Collectors are also more curious. In terms of a trajectory, the only way is up,\u201d she said.", "date_published": "2023-09-04T00:09:58+08:00", "date_modified": "2023-09-03T14:14:28+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/Image-A-Van-Gogh-The-Immersive-Experience-to-make-its-Southeast-Asia-Debut-at-Resorts-World-Sentosa.jpg", "tags": [ "Bront\u00eb H. Lacsamana", "bw36", "Special Reports" ], "summary": "FOR a sector of society that takes inspiration from the world and channels it into creative output, the pandemic made everything seem smaller, darker, and bleaker. Movement was restricted, people stayed put, and physical spaces for sharing and showcasing art were limited." }, { "id": "https://www.bworldonline.com/?p=542985", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542985/the-triumphant-return-of-theater/", "title": "The triumphant return of theater", "content_html": "By Giselle P. Kasilag
\nANAK DATU was Tanghalang Pilipino\u2019s (TP) first live production after emerging from the COVID-19 pandemic and the resulting lockdowns. A deeply political musical drama, it recounts the 1968 Jabbidah massacre and the birth of the Moro National Liberation Front using a short story by National Artist Abdul Mari Imao as the base material. It was staged in 2022, at the height of political tension from the presidential election, in an atmosphere of historical revisionism and disinformation. With a thorny subject matter and complicated health protocols, there was little expectation that the show would attract enough of an audience to break even. Yet after the first weekend, the company reported sold-out shows. Clad in face masks and armed with alcohol sprays, people came, raved about the show on social media, and encouraged others to see it.
\nIt was the return-to-live-theater scenario that TP artistic director Fernando \u201cNanding\u201d Josef dreamed of but never dared to hope for. Live performance was among the sectors that were worst hit by the lockdowns. Theater, by its very definition, is a community activity meant to be experienced in person. Shifting to online outlets is not the same.
\nBut they tried it anyway. TP streamed past performances and created new content for two years. While those activities did not bring much income, they led to invitations to conduct workshops and masterclasses for schools, non-governmental organizations, and local government units. That created new income streams that TP is continuing to pursue now that the pandemic restrictions have been lifted.
\nBut the company had been aggressively developing many different avenues to improve revenues even before the pandemic. Thus, when the lockdowns began, they were in a strong financial position to weather the storm.
\nThis was not always the case. In 2008 Mr. Josef, then a full-time actor, received an urgent phone call from businessman Antonio Cojuangco, a TP board member. Mr. Cojuangco wanted him to return to the company that they helped found to set things straight.
\nTP was in debt and no amount of belt-tightening could save it. Mr. Josef told the businessman to either give him the money or just close shop. He received the money and buckled down. Fifteen years later, he is still at the helm of Tanghalang Pilipino.
\nThat TP was in the red is not a surprise. Many artistic endeavors begin as passion projects and are fueled by the need to express oneself creatively. Financial stability is not always a priority \u2014 until the bills need to be paid.
\nWhat is impressive is the company\u2019s ability to stay in the black since the bail-out. Changes in budgeting and spending habits, coupled with creative marketing strategies prepared them for the rainy day \u2014 which arrived in 2020 with a virus.
\nAs a resident company of the Cultural Center of the Philippines (CCP), TP receives an annual stipend of P1 million and the use of the Center\u2019s theaters. That, along with ticket sales, grants, and sponsorships form the bulk of the company\u2019s income.
\nA season consists of four to five shows. Depending on the venue budgets range from P500,000 for a show at the CCP Little Theater to P1 million for a show at the Main Theater. The latter increases drastically if it is a musical, ranging from P1.5 to P2 million. But this is greenlighted only if they are able to get a grant to cover the additional cost. The idea is to use the CCP\u2019s smaller theaters and have more performances per show. A typical show can run for three to four weekends with a total of 12 to 16 performances.
\nThe average TP ticket ranges from P500 to P1,500. There have been discussions about raising ticket prices but given that their main audience are students, there is a conscious effort to stay affordable. A single show at the Little Theater has the potential to earn at least P240,000 while a show at the Main Theater can raise about P600,000. But as the company gives senior/student discounts and lower ticket rates for bulk orders, this eats into their revenues.
\nThe biggest expenditures are the talent fees of the actors and production team, sets and costumes, and rights paid to the playwright. But the show budgets are not the company\u2019s only expenses. TP has a working Board of Trustees, and a full-time administrative, promotions, and marketing staff. And they maintain the Actors\u2019 Company \u2013 the pool of artists who perform in their productions.
\nSo, pursuing other sources of revenue is crucial. An example was in 2018 when TP presented their season to the board of Okada Manila. The result was a P10-million grant as part of the casino hotel\u2019s program for corporate social responsibility. The amount represented financial stability that TP had not experienced in a long time.
\nBut no cash infusion would matter if the resources were not allocated efficiently. Mr. Josef credits company manager Carmela Millado for keeping them within budget. She, along with the members of the Artistic Committee, have managed to rein in Mr. Josef\u2019s extravagant ideas and offer more budget-friendly solutions.
\nAnd it is this same efficiency and resourcefulness that is driving the company\u2019s return to the stage. More than the pandemic, it was that dark chapter of being in debt that is fueling TP\u2019s creativity and encouraging more partnerships.
\nVIRGIN LABFEST: HITIK
\nOne such partnership is the Virgin Labfest (VLF). Jointly managed by TP, Writer\u2019s Bloc, and the CCP, the program was created in 2005 to develop and support new playwrights. One-act plays are staged in a three week-long festival, allowing \u201cvirgin\u201d writers to experience seeing what they have written come alive with professional actors, directors, and in an established theater.
In its current set-up, the CCP allocates funds to pay for the fees of the playwrights, directors, actors, designers, royalties, licenses, and other collaborative artists. TP makes its Actors\u2019 Company available to the program, along with its costumes, sets, and props. Writer\u2019s Bloc manages the submissions and sifts through the material for the screening committee.
\nVLF has grown to become one of the most important events in the Philippine theater calendar. It recently staged its 18th edition, returning to the theater for a 100% live festival after three years of online and hybrid set-ups. The relief is evident in production manager Sandie Molina Javier\u2019s demeanor.
\n\u201cOriginally, akala namin mawawala, o yung biglang titigil (we thought it would disappear or would suddenly be stopped),\u201d confessed Ms. Javier. \u201cKasi nga reliant ka na face-to-face (Because it is reliant on face-to-face performance). It went online. It was a challenge for everyone.\u201d
\nVLF grappled with the inadequacies of the technology being utilized for something it was never intended for. Rehearsals via video conferencing did not evoke the same collaborative energy, plus varying signal strengths led to delays that would halt rehearsals. Devices being used ranged from standard monitors to tiny phones. And attempts to make actors appear as if they were facing each other on screen were largely unsuccessful.
\nStill, a lockdown VLF took place.
\nIn 2022, the decision was made for VLF to return to the live stage. But given the strict health protocols and the infection surges, it was a hybrid version. During the first two weeks, all the performances were held live, recorded, edited, then uploaded for streaming.
\nBecause of the streaming, they discovered a previously untapped market: people who were unable to come to the theater for a variety of reasons. They were living in the provinces or abroad, had disabilities that made it difficult to attend shows physically, or did not have the time to watch on the show date. VLF employed a pay-per-view scheme to monetize the content.
\nThe live staging had its own challenges. Seating capacity was severely limited based on pandemic guidelines. All participants received antigen tests. Groups were segregated into bubbles and closely monitored.
\nThis year, with capacity limitations fully lifted, they chose to exercise an abundance of caution. Testing was still available. Masks and alcohol were provided for both participants and audience members. All these things added up.
\nDespite the many safety protocols in place, they wondered if the audience would return.
\nThey came.
\n\u201cFor this year, ang capacity ng Tanghalang Ignacio Gimenez (TIG, the CCP\u2019s blackbox theater) was 290,\u201d she explained, speaking in a mix of Filipino and English. \u201cFirst week, we hit more than 50% of that. Second week we were hitting more than 200 persons. By the third week, we were sold out. We had to turn people away.\u201d
\nBut is VLF making money? \u201cIt depends on who you are talking to. If you base it on the amount that we spend versus what comes in from ticket sales or from merchandising…. It\u2019s not even break even,\u201d Ms. Javier admitted.
\nBut VLF is not a commercial endeavor. It is a program whose objective is to develop new playwrights and it is highly successful. Good ticket sales are just the cherry on top. On its 18th installment, practically every single production was lauded and garnered critical acclaim. When these plays are picked up by theater groups and even film companies, that\u2019s when the commercial success may come.
\nREPERTORY PHILIPPINES: CAROUSEL
\nBut critical acclaim is always sweeter when coupled with commercial success. Repertory Philippines (Rep) claimed both crowns with its first post lockdown production: Rodgers and Hammerstein\u2019s Carousel \u2014 a success that surprised even the company\u2019s artistic director, Liesl Batucan.
Every single show was sold out. The feedback from critics on this fresh take on a classic was largely positive as well. But the road to this sold-out sweep was long and hard.
\nRep\u2019s 2019-2020 season consisted of Stage Kiss, Anna and the Tropics, Carousel, Rep Unplugged, and Snow White and the Prince. Only Stage Kiss pushed through. On the day that the curtain was supposed to rise for Anna and the Tropics, the government announced the lockdown. Everything was cancelled.
\n\u201cIt was a very phenomenally tough time for theater, for the world, for everyone,\u201d Ms. Batucan confessed. \u201cThere was a brief moment where everyone was in shock because this was unprecedented. So we needed to quickly recalibrate so we could stay connected to our audiences and our communities. This, we did online.\u201d
\nStuck at home, many parents were searching for activities for their kids. Rep\u2019s Workshop for the Performing Arts was immediately redesigned for a video-conferencing format and became one of the more popular options. It was expanded to include voice, costume design, and other aspects of theater.
\nThey developed original virtual content called \u201cRepisodes\u201d that were streamed online for free. Like VLF, Rep discovered new audiences since the content could reach the provinces and abroad.
\nBut since Anna and the Tropics was a completed production even though it could not open, everyone still needed to be paid. As a private foundation, Rep does not receive financial support from the government. The company funds itself so every peso needs to be spent wisely.
\n\u201cI would call us internally funded,\u201d said Ms. Batucan, \u201cbecause we do have a working amount that we can tap into, but our income is generated predominantly from ticket sales, and sponsorships, and kind souls donating. That\u2019s still something we are working also on, fostering all these partnerships. And production costs are buffered when we are able to get sponsorships in kind.
\n\u201cWe are PCNC (Philippine Council for NGO Certification) accredited which means the donations that come to us can have a tax write-off. That\u2019s one thing we worked on in recent years. This is also a viable source of funding,\u201d she added.
\nRep\u2019s Theater for Young Audiences was another important financial pillar for the company. It would bring busloads of students to Rep\u2019s 800-seat home theater, Onstage Greenbelt (which was closed this year with the redevelopment of Greenbelt 1).
\nWhile it seems that Rep has many sources of income, the company is known for high production values. Like TP, the biggest expenditure is the artists\u2019 fees for the actors, designers, and production crew. But unlike TP, Rep needs to pay rent for the theater. A substantial part of the budget is allocated for sets, costumes, props, lighting, and music. And because they acquire material from foreign sources, royalties \u2013 often quoted in dollars \u2013 also account for a show\u2019s higher cost. Thus, the budget for a typical Rep production is larger, at least P4 million. That was the cost of Carousel.
\n\u201cIt was such a risk but we needed to take that risk already at that time because I was able to get a venue grant for the CCP,\u201d Ms. Batucan said. \u201cWe were at the Tanghalang Ignacio Gimenez. That was a blessing from God! Maybe, without that venue grant, we might not have been able to mount Carousel. [We were] reeling from the losses of the pandemic \u2014 two years of that with no revenue. We were putting out material like \u2018Repisodes.\u2019 We had online material but nothing significantly revenue-generating. We had to dip into our existing funds. It was very difficult.\u201d
\nWith a smaller budget, the original vision for Carousel \u2014 a cast of over 30 with a 16-piece orchestra \u2014 had to be scrapped. It was downsized to 14 performers and no orchestra, instead they used a two-piano score.
\nCarousel sold out 17 shows. With ticket prices ranging from P1,000 to P3,000 and a seating capacity of about 280, the production expense was recovered after just one performance. The rest was much-needed replenishment of Repertory\u2019s coffers that were severely depleted during the lockdowns. Indeed, it was revenge theater at its finest when it was needed the most.
\n9 WORKS THEATRICAL: TICK\u2026TICK\u2026BOOM!
\nAs the last to reopen among the major theater companies, 9 Works Theatrical\u2019s executive director Santi Santamaria admitted being worried that they may have missed out on revenge theater.
While the successes of Anak Datu, VLF, Carousel, and Full House Theater Company\u2019s Ang Huling El Bimbo were encouraging, he was afraid that the appetite of the audience had been sated. So, the company opted to be conservative and return to material that they already knew: tick\u2026tick\u2026Boom!
\nJonathan Larson\u2019s musical is about a composer pressured to choose between passion or stability \u2014 a dilemma artists contend with every day of their lives, but more so during the pandemic. It was a fitting piece to reopen the company which chose to shut down during the lockdown. Shutting down made the most sense for them given their unusual situation.
\nUnlike other theater companies, 9 Works has a unique approach in the way they plan their year. There is no specific structure to their season, no set number of shows that they are required to produce, and no specific content that they need to focus on.
\n\u201cWe don\u2019t want to be boxed in,\u201d Mr. Santamaria explained. \u201cSo whatever is available to us, and at the same time [if] it\u2019s something we\u2019re passionate about or we love at that specific moment, then we\u2019re very open to it.\u201d
\nIt does not maintain a pool of actors. It does not have a home theater either, a venue is chosen depending on the requirements of the production. They do not have a set budget per show either. The price tag swings wildly depending on the size of the cast, the royalties, and the venue, among other costs.
\nIt is the material that they choose to produce that dictates all the variables that are often set in stone in other companies. This approach provides unprecedented flexibility and helps keep the company sustainable. They are able to keep overhead low and allot more funds directly into the productions.
\n\u201cThe strategy is very simple,\u201d said Mr. Santamaria. \u201cYou do the math… We need to make a profit because we need to prepare for the next show, and the next show.\u201d
\nBut their math leans towards generosity, providing higher than standard pay for their actors and staff. Thus, the budget per show can be three or four times that of Rep\u2019s. At one point, they breached the P20 million mark. They do whatever it takes as long as the math computes.
\nThe year 2020 was expected to be a big one for 9 Works. The year before they produced the Apo Musical and Himala, winning many awards for their efforts. They were preparing to build on those successes with two major shows when the pandemic hit.
\nThe math told them to stop.
\n\u201cNothing. I decided that the best way to deal with this was just to don\u2019t do anything. Don\u2019t move.\u201d
\nThey were approached about streaming their material online but no assurances could be made guaranteeing that it wouldn\u2019t get copied so they declined. When other companies started to re-open even with the threat of infection surges, they opted to wait, unwilling to risk show cancellations should actors get sick.
\nReopening later than everyone else had its advantages. They were able to observe others and formulate a safer plan to return to the stage. Mr. Santamaria was adamant about starting small so tick\u2026tick…Boom!\u2019s cast of three actors made sense. But they decided to double the cast to make sure that there would be someone to step in should an actor get sick.
\nThe nagging fear though was if they were too late to take advantage of revenge theater. But they were not. Tick\u2026tick\u2026Boom!\u2019s original run was extended from 11 shows to 14. The critics have been raving about the restaging. Interest is high and tickets are selling. The last show is set for Sept. 3.
\nIt appears that Philippine theater is truly on the mend. New material is being staged for an appreciative audience including The Reconciliation Dinner and Ibarra. Not everything is a blockbuster like Carousel, but people have been going out and buying tickets.
\nDespite these success stories, Philippine theater is still grappling with many challenges that are keeping it from achieving its full potential. Infrastructure is now a major concern. With the closure of the CCP (the main building will be closed for five years while undergoing major rehab), all performing arts groups are competing to book a handful of theaters.
\nAs Mr. Santamaria pointed out, there is a dearth of medium-sized theaters: seating capacity jumps from TIG\u2019s 290 to Newport Theater\u2019s 1,500. Those in the 500 to 800 seat range are few and not all have modern equipment, good locations, and ample parking.
\nDecades of economic challenges have made it difficult to develop a culture of institutionalized patronage for the arts. According to Ms. Batucan, very few companies give cash outright, with most preferring to give in kind. Thus, Rep\u2019s PCNC accreditation is a crucial first step to encouraging companies to donate.
\nAnd with theater being a favored form of dissent, Mr. Josef is steeling himself for possible repercussions for being vocal about criticizing the government. He is not afraid, he said. But he does recognize that the political situation will have an effect on TP\u2019s future.
\nBut the biggest challenge for the theater is also the biggest challenge that the metropolis is facing today: traffic. It literally keeps people away from the theater.
\nBut still, they are all optimistic.
\n\u201cWe\u2019re working on it,\u201d said Ms. Batucan. \u201cWe\u2019re working on getting the government support that we need. But meantime, we just have to rise up to the challenge.\u201d
\n", "content_text": "By Giselle P. Kasilag\nANAK DATU was Tanghalang Pilipino\u2019s (TP) first live production after emerging from the COVID-19 pandemic and the resulting lockdowns. A deeply political musical drama, it recounts the 1968 Jabbidah massacre and the birth of the Moro National Liberation Front using a short story by National Artist Abdul Mari Imao as the base material. It was staged in 2022, at the height of political tension from the presidential election, in an atmosphere of historical revisionism and disinformation. With a thorny subject matter and complicated health protocols, there was little expectation that the show would attract enough of an audience to break even. Yet after the first weekend, the company reported sold-out shows. Clad in face masks and armed with alcohol sprays, people came, raved about the show on social media, and encouraged others to see it.\nIt was the return-to-live-theater scenario that TP artistic director Fernando \u201cNanding\u201d Josef dreamed of but never dared to hope for. Live performance was among the sectors that were worst hit by the lockdowns. Theater, by its very definition, is a community activity meant to be experienced in person. Shifting to online outlets is not the same.\nBut they tried it anyway. TP streamed past performances and created new content for two years. While those activities did not bring much income, they led to invitations to conduct workshops and masterclasses for schools, non-governmental organizations, and local government units. That created new income streams that TP is continuing to pursue now that the pandemic restrictions have been lifted.\nBut the company had been aggressively developing many different avenues to improve revenues even before the pandemic. Thus, when the lockdowns began, they were in a strong financial position to weather the storm.\nThis was not always the case. In 2008 Mr. Josef, then a full-time actor, received an urgent phone call from businessman Antonio Cojuangco, a TP board member. Mr. Cojuangco wanted him to return to the company that they helped found to set things straight.\nTP was in debt and no amount of belt-tightening could save it. Mr. Josef told the businessman to either give him the money or just close shop. He received the money and buckled down. Fifteen years later, he is still at the helm of Tanghalang Pilipino.\nThat TP was in the red is not a surprise. Many artistic endeavors begin as passion projects and are fueled by the need to express oneself creatively. Financial stability is not always a priority \u2014 until the bills need to be paid.\nWhat is impressive is the company\u2019s ability to stay in the black since the bail-out. Changes in budgeting and spending habits, coupled with creative marketing strategies prepared them for the rainy day \u2014 which arrived in 2020 with a virus.\nAs a resident company of the Cultural Center of the Philippines (CCP), TP receives an annual stipend of P1 million and the use of the Center\u2019s theaters. That, along with ticket sales, grants, and sponsorships form the bulk of the company\u2019s income.\nA season consists of four to five shows. Depending on the venue budgets range from P500,000 for a show at the CCP Little Theater to P1 million for a show at the Main Theater. The latter increases drastically if it is a musical, ranging from P1.5 to P2 million. But this is greenlighted only if they are able to get a grant to cover the additional cost. The idea is to use the CCP\u2019s smaller theaters and have more performances per show. A typical show can run for three to four weekends with a total of 12 to 16 performances.\nThe average TP ticket ranges from P500 to P1,500. There have been discussions about raising ticket prices but given that their main audience are students, there is a conscious effort to stay affordable. A single show at the Little Theater has the potential to earn at least P240,000 while a show at the Main Theater can raise about P600,000. But as the company gives senior/student discounts and lower ticket rates for bulk orders, this eats into their revenues.\nThe biggest expenditures are the talent fees of the actors and production team, sets and costumes, and rights paid to the playwright. But the show budgets are not the company\u2019s only expenses. TP has a working Board of Trustees, and a full-time administrative, promotions, and marketing staff. And they maintain the Actors\u2019 Company \u2013 the pool of artists who perform in their productions.\nSo, pursuing other sources of revenue is crucial. An example was in 2018 when TP presented their season to the board of Okada Manila. The result was a P10-million grant as part of the casino hotel\u2019s program for corporate social responsibility. The amount represented financial stability that TP had not experienced in a long time.\nBut no cash infusion would matter if the resources were not allocated efficiently. Mr. Josef credits company manager Carmela Millado for keeping them within budget. She, along with the members of the Artistic Committee, have managed to rein in Mr. Josef\u2019s extravagant ideas and offer more budget-friendly solutions.\nAnd it is this same efficiency and resourcefulness that is driving the company\u2019s return to the stage. More than the pandemic, it was that dark chapter of being in debt that is fueling TP\u2019s creativity and encouraging more partnerships.\nVIRGIN LABFEST: HITIK\nOne such partnership is the Virgin Labfest (VLF). Jointly managed by TP, Writer\u2019s Bloc, and the CCP, the program was created in 2005 to develop and support new playwrights. One-act plays are staged in a three week-long festival, allowing \u201cvirgin\u201d writers to experience seeing what they have written come alive with professional actors, directors, and in an established theater.\nIn its current set-up, the CCP allocates funds to pay for the fees of the playwrights, directors, actors, designers, royalties, licenses, and other collaborative artists. TP makes its Actors\u2019 Company available to the program, along with its costumes, sets, and props. Writer\u2019s Bloc manages the submissions and sifts through the material for the screening committee.\nVLF has grown to become one of the most important events in the Philippine theater calendar. It recently staged its 18th edition, returning to the theater for a 100% live festival after three years of online and hybrid set-ups. The relief is evident in production manager Sandie Molina Javier\u2019s demeanor.\n\u201cOriginally, akala namin mawawala, o yung biglang titigil (we thought it would disappear or would suddenly be stopped),\u201d confessed Ms. Javier. \u201cKasi nga reliant ka na face-to-face (Because it is reliant on face-to-face performance). It went online. It was a challenge for everyone.\u201d\nVLF grappled with the inadequacies of the technology being utilized for something it was never intended for. Rehearsals via video conferencing did not evoke the same collaborative energy, plus varying signal strengths led to delays that would halt rehearsals. Devices being used ranged from standard monitors to tiny phones. And attempts to make actors appear as if they were facing each other on screen were largely unsuccessful.\nStill, a lockdown VLF took place.\nIn 2022, the decision was made for VLF to return to the live stage. But given the strict health protocols and the infection surges, it was a hybrid version. During the first two weeks, all the performances were held live, recorded, edited, then uploaded for streaming.\nBecause of the streaming, they discovered a previously untapped market: people who were unable to come to the theater for a variety of reasons. They were living in the provinces or abroad, had disabilities that made it difficult to attend shows physically, or did not have the time to watch on the show date. VLF employed a pay-per-view scheme to monetize the content.\nThe live staging had its own challenges. Seating capacity was severely limited based on pandemic guidelines. All participants received antigen tests. Groups were segregated into bubbles and closely monitored.\nThis year, with capacity limitations fully lifted, they chose to exercise an abundance of caution. Testing was still available. Masks and alcohol were provided for both participants and audience members. All these things added up.\nDespite the many safety protocols in place, they wondered if the audience would return.\nThey came.\n\u201cFor this year, ang capacity ng Tanghalang Ignacio Gimenez (TIG, the CCP\u2019s blackbox theater) was 290,\u201d she explained, speaking in a mix of Filipino and English. \u201cFirst week, we hit more than 50% of that. Second week we were hitting more than 200 persons. By the third week, we were sold out. We had to turn people away.\u201d\nBut is VLF making money? \u201cIt depends on who you are talking to. If you base it on the amount that we spend versus what comes in from ticket sales or from merchandising…. It\u2019s not even break even,\u201d Ms. Javier admitted.\nBut VLF is not a commercial endeavor. It is a program whose objective is to develop new playwrights and it is highly successful. Good ticket sales are just the cherry on top. On its 18th installment, practically every single production was lauded and garnered critical acclaim. When these plays are picked up by theater groups and even film companies, that\u2019s when the commercial success may come.\nREPERTORY PHILIPPINES: CAROUSEL\nBut critical acclaim is always sweeter when coupled with commercial success. Repertory Philippines (Rep) claimed both crowns with its first post lockdown production: Rodgers and Hammerstein\u2019s Carousel \u2014 a success that surprised even the company\u2019s artistic director, Liesl Batucan.\nEvery single show was sold out. The feedback from critics on this fresh take on a classic was largely positive as well. But the road to this sold-out sweep was long and hard.\nRep\u2019s 2019-2020 season consisted of Stage Kiss, Anna and the Tropics, Carousel, Rep Unplugged, and Snow White and the Prince. Only Stage Kiss pushed through. On the day that the curtain was supposed to rise for Anna and the Tropics, the government announced the lockdown. Everything was cancelled.\n\u201cIt was a very phenomenally tough time for theater, for the world, for everyone,\u201d Ms. Batucan confessed. \u201cThere was a brief moment where everyone was in shock because this was unprecedented. So we needed to quickly recalibrate so we could stay connected to our audiences and our communities. This, we did online.\u201d\nStuck at home, many parents were searching for activities for their kids. Rep\u2019s Workshop for the Performing Arts was immediately redesigned for a video-conferencing format and became one of the more popular options. It was expanded to include voice, costume design, and other aspects of theater.\nThey developed original virtual content called \u201cRepisodes\u201d that were streamed online for free. Like VLF, Rep discovered new audiences since the content could reach the provinces and abroad.\nBut since Anna and the Tropics was a completed production even though it could not open, everyone still needed to be paid. As a private foundation, Rep does not receive financial support from the government. The company funds itself so every peso needs to be spent wisely.\n\u201cI would call us internally funded,\u201d said Ms. Batucan, \u201cbecause we do have a working amount that we can tap into, but our income is generated predominantly from ticket sales, and sponsorships, and kind souls donating. That\u2019s still something we are working also on, fostering all these partnerships. And production costs are buffered when we are able to get sponsorships in kind.\n\u201cWe are PCNC (Philippine Council for NGO Certification) accredited which means the donations that come to us can have a tax write-off. That\u2019s one thing we worked on in recent years. This is also a viable source of funding,\u201d she added.\nRep\u2019s Theater for Young Audiences was another important financial pillar for the company. It would bring busloads of students to Rep\u2019s 800-seat home theater, Onstage Greenbelt (which was closed this year with the redevelopment of Greenbelt 1).\nWhile it seems that Rep has many sources of income, the company is known for high production values. Like TP, the biggest expenditure is the artists\u2019 fees for the actors, designers, and production crew. But unlike TP, Rep needs to pay rent for the theater. A substantial part of the budget is allocated for sets, costumes, props, lighting, and music. And because they acquire material from foreign sources, royalties \u2013 often quoted in dollars \u2013 also account for a show\u2019s higher cost. Thus, the budget for a typical Rep production is larger, at least P4 million. That was the cost of Carousel.\n\u201cIt was such a risk but we needed to take that risk already at that time because I was able to get a venue grant for the CCP,\u201d Ms. Batucan said. \u201cWe were at the Tanghalang Ignacio Gimenez. That was a blessing from God! Maybe, without that venue grant, we might not have been able to mount Carousel. [We were] reeling from the losses of the pandemic \u2014 two years of that with no revenue. We were putting out material like \u2018Repisodes.\u2019 We had online material but nothing significantly revenue-generating. We had to dip into our existing funds. It was very difficult.\u201d\nWith a smaller budget, the original vision for Carousel \u2014 a cast of over 30 with a 16-piece orchestra \u2014 had to be scrapped. It was downsized to 14 performers and no orchestra, instead they used a two-piano score.\nCarousel sold out 17 shows. With ticket prices ranging from P1,000 to P3,000 and a seating capacity of about 280, the production expense was recovered after just one performance. The rest was much-needed replenishment of Repertory\u2019s coffers that were severely depleted during the lockdowns. Indeed, it was revenge theater at its finest when it was needed the most.\n9 WORKS THEATRICAL: TICK\u2026TICK\u2026BOOM!\nAs the last to reopen among the major theater companies, 9 Works Theatrical\u2019s executive director Santi Santamaria admitted being worried that they may have missed out on revenge theater. \nWhile the successes of Anak Datu, VLF, Carousel, and Full House Theater Company\u2019s Ang Huling El Bimbo were encouraging, he was afraid that the appetite of the audience had been sated. So, the company opted to be conservative and return to material that they already knew: tick\u2026tick\u2026Boom!\nJonathan Larson\u2019s musical is about a composer pressured to choose between passion or stability \u2014 a dilemma artists contend with every day of their lives, but more so during the pandemic. It was a fitting piece to reopen the company which chose to shut down during the lockdown. Shutting down made the most sense for them given their unusual situation.\nUnlike other theater companies, 9 Works has a unique approach in the way they plan their year. There is no specific structure to their season, no set number of shows that they are required to produce, and no specific content that they need to focus on.\n\u201cWe don\u2019t want to be boxed in,\u201d Mr. Santamaria explained. \u201cSo whatever is available to us, and at the same time [if] it\u2019s something we\u2019re passionate about or we love at that specific moment, then we\u2019re very open to it.\u201d\nIt does not maintain a pool of actors. It does not have a home theater either, a venue is chosen depending on the requirements of the production. They do not have a set budget per show either. The price tag swings wildly depending on the size of the cast, the royalties, and the venue, among other costs.\nIt is the material that they choose to produce that dictates all the variables that are often set in stone in other companies. This approach provides unprecedented flexibility and helps keep the company sustainable. They are able to keep overhead low and allot more funds directly into the productions.\n\u201cThe strategy is very simple,\u201d said Mr. Santamaria. \u201cYou do the math… We need to make a profit because we need to prepare for the next show, and the next show.\u201d\nBut their math leans towards generosity, providing higher than standard pay for their actors and staff. Thus, the budget per show can be three or four times that of Rep\u2019s. At one point, they breached the P20 million mark. They do whatever it takes as long as the math computes.\nThe year 2020 was expected to be a big one for 9 Works. The year before they produced the Apo Musical and Himala, winning many awards for their efforts. They were preparing to build on those successes with two major shows when the pandemic hit.\nThe math told them to stop.\n\u201cNothing. I decided that the best way to deal with this was just to don\u2019t do anything. Don\u2019t move.\u201d\nThey were approached about streaming their material online but no assurances could be made guaranteeing that it wouldn\u2019t get copied so they declined. When other companies started to re-open even with the threat of infection surges, they opted to wait, unwilling to risk show cancellations should actors get sick.\nReopening later than everyone else had its advantages. They were able to observe others and formulate a safer plan to return to the stage. Mr. Santamaria was adamant about starting small so tick\u2026tick…Boom!\u2019s cast of three actors made sense. But they decided to double the cast to make sure that there would be someone to step in should an actor get sick.\nThe nagging fear though was if they were too late to take advantage of revenge theater. But they were not. Tick\u2026tick\u2026Boom!\u2019s original run was extended from 11 shows to 14. The critics have been raving about the restaging. Interest is high and tickets are selling. The last show is set for Sept. 3.\nIt appears that Philippine theater is truly on the mend. New material is being staged for an appreciative audience including The Reconciliation Dinner and Ibarra. Not everything is a blockbuster like Carousel, but people have been going out and buying tickets.\nDespite these success stories, Philippine theater is still grappling with many challenges that are keeping it from achieving its full potential. Infrastructure is now a major concern. With the closure of the CCP (the main building will be closed for five years while undergoing major rehab), all performing arts groups are competing to book a handful of theaters.\nAs Mr. Santamaria pointed out, there is a dearth of medium-sized theaters: seating capacity jumps from TIG\u2019s 290 to Newport Theater\u2019s 1,500. Those in the 500 to 800 seat range are few and not all have modern equipment, good locations, and ample parking.\nDecades of economic challenges have made it difficult to develop a culture of institutionalized patronage for the arts. According to Ms. Batucan, very few companies give cash outright, with most preferring to give in kind. Thus, Rep\u2019s PCNC accreditation is a crucial first step to encouraging companies to donate.\nAnd with theater being a favored form of dissent, Mr. Josef is steeling himself for possible repercussions for being vocal about criticizing the government. He is not afraid, he said. But he does recognize that the political situation will have an effect on TP\u2019s future.\nBut the biggest challenge for the theater is also the biggest challenge that the metropolis is facing today: traffic. It literally keeps people away from the theater.\nBut still, they are all optimistic.\n\u201cWe\u2019re working on it,\u201d said Ms. Batucan. \u201cWe\u2019re working on getting the government support that we need. But meantime, we just have to rise up to the challenge.\u201d", "date_published": "2023-09-04T00:08:57+08:00", "date_modified": "2023-09-03T14:12:01+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/Anak-Datu-by-Rody-Vera-at-Tanghalang-Pilipino.-Music-Press-Asia.jpg", "tags": [ "bw36", "Giselle P. Kasilag", "Special Reports" ], "summary": "ANAK DATU was Tanghalang Pilipino\u2019s (TP) first live production after emerging from the COVID-19 pandemic and the resulting lockdowns. A deeply political musical drama, it recounts the 1968 Jabbidah massacre and the birth of the Moro National Liberation Front using a short story by National Artist Abdul Mari Imao as the base material." }, { "id": "https://www.bworldonline.com/?p=542984", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542984/businessworld-at-36-at-the-forefront-of-changing-business-realities/", "title": "BusinessWorld at 36: At the forefront of changing business realities", "content_html": "\r\n \r\n\r\nBy Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
\nIT WOULD not be too much of an overstatement to say that the state of the journalism and media industry is in complete upheaval.
\nOver the past decade alone, serious issues such as the changing preferences of audiences, the proliferation of misinformation on social media platforms like Facebook and Twitter, and now the threat of artificial intelligence (AI) large language models like ChatGPT replacing man-made content generation, are challenging the foundations of the industry itself.
\n\u201cTechnology and the speed at which it is advancing is definitely reshaping the business landscape in all parts of the globe. Everything, as you know, is moving too fast,\u201d Miguel G. Belmonte, president and CEO of The Philippine Star and BusinessWorld, said in an interview.
\n\u201cSpeaking in the context of media, technology is helping us in many ways on the one hand but it is also making aspects of our business more challenging on the other. It\u2019s really a double-edged sword and it depends now how companies can harness the advantages to benefit their businesses in the long term.\u201d
\nMr. Belmonte noted that the emergence of ChatGPT and other generative large language models have been \u201creal game-changers\u201d with regard to how it can affect journalism and media moving forward.
\n\u201cWith AI and Web 3.0, things will get a bit more complex again, but that\u2019s the world we live in right now, and businesses really have to be agile and to adapt to these evolutions.\u201d
\nIn fact, the World Economic Forum early this year outlined the risks of such technologies such as their ability to generate false and misleading content, to displace workers like writers and artists, or even to create a flood of fake news and disinformation across platforms and ecosystems.
\n\u201cThese are major changes, not only for media. I think this will affect all industries across the board. But we can only speak for ourselves. There are already changes we are seeing today, and there will be more,\u201d he said.
\nBusinessWorld, when it was founded as Business Day in 1967, was Southeast Asia\u2019s first business daily. It was founded on the promise of providing \u201ccompetent and responsible reporting of the news\u201d under Raul L. Locsin, who served as its first president and editor-in-chief.
\nBusiness Day has established itself as a leader in professional economic journalism in the Philippines and has established a tradition of excellence that continues to this day.
\nThe paper celebrates its 36th year since its reformation under its new name in July 1987. With the ever-growing threats to truthful and responsible journalism, BusinessWorld now represents more than five decades of commitment to that vision, guided by Mr. Locsin\u2019s ever-enduring belief that \u201cA Newspaper is a Public Trust.\u201d
\nMr. Belmonte \u2014 who took the helm since the paper was acquired by MediaQuest Holdings, Inc. in 2015 through the Philstar Media Group \u2014 is confident that holding fast to these core values will see the newspaper to even higher strengths in spite of all the challenges. \u201cIt\u2019s gotten more challenging, no doubt, what with having to bridge generational shifts and mindsets and even expertise since the younger generation are definitely more digital-savvy, but I would say that leadership style and qualities will remain the same regardless of how businesses evolve,\u201d he said.
\n\u201cNowadays, change management is very critical; we need to ensure that people are coping with the pace of change so that it does not overwhelm anyone. Leaders also need to step back and listen more to ensure that the young ones are heard and that they have a stake in how the business is run.\u201d
\nCHAMPIONING BUSINESS JOURNALISM AMID INDUSTRIAL REVOLUTION
\nWilfredo G. Reyes, BusinessWorld\u2019s editor-in-chief, previously noted that every challenge that emerges is an opportunity to not only improve, but become more in tune with the readers that the paper is trying to serve.
\u201cHow such challenges will affect the way we do things is something all of us in the company will have to discern and agree on as we beat the path ahead. There will always be a need for verified, accurate information, especially during emergencies and crises \u2014 more so for BusinessWorld\u2019s public \u2014 but the question is in the form and mode of delivery,\u201d he had said.
\n\u201cPeople have been saying since at least the early 2000s that \u2018print is dead\u2019. I think that every medium has its use and it is up to us to find out what that is amid changing needs and preferences, and how to maximize each platform.\u201d
\nMr. Reyes further noted that past challenges like the coronavirus disease 2019 (COVID-19) pandemic opened a door for BusinessWorld to explore and fully commit to digital initiatives.
\n\u201cDigital initiatives have been accounting for more of our products and revenues; that I now always refer to BusinessWorld more generally as a publication, rather than just a newspaper,\u201d he said.
\n\u201cIf anything, this crisis has shown that, more than specific actions, we have the right mindset [to begin with] and processes to promptly tap emerging opportunities when and however they come.\u201d
\nCathy Rose A. Garcia, BusinessWorld\u2019s managing editor, echoed the sentiment, noting in an interview that \u201cthe COVID-19 pandemic has brought significant changes to the business environment not just in the Philippines but around the world. Companies have had to rethink their business models and implement changes to ensure their survival.\u201d
\n\u201cNews organizations have to fully embrace digital in order to meet the evolving expectations of the audience. BusinessWorld has adapted to this changing media landscape by expanding into multimedia news, podcasts, videos, as well as organizing webinars and economic forums,\u201d she added.
\nShe also noted that journalists also have to prepare for the next wave of disruption with the growing popularity of artificial intelligence technologies.
\nCompanies are still facing many challenges as well, such as those of an economic slowdown, elevated inflation, high interest rates, supply chain disruptions, accelerated digital transformation, cybersecurity, sustainability and job-skills mismatch.
\nMs. Garcia believes that organizations like BusinessWorld play a vital role in chronicling such issues and in \u201craising the public trust and preventing the spread of disinformation.\u201d
\n\u201cPublic-service oriented media organizations should be instrumental in upholding standards for objectivity, fact-finding, reasonable arguments and ethics,\u201d she said.
\nMr. Belmonte holds firm that, even beset by challenges itself, it is still BusinessWorld\u2019s responsibility to inform and educate the general public about issues posing risks to the Philippine business community.
\n\u201cWhether we welcome it or now, change will affect industries across the board. It is inevitable, and no one is exempt from it. We have seen how the pace of change accelerated in the past two decades, and how it impacted the fortunes of companies and economies all over the world,\u201d he said.
\n\u201cFor us at BusinessWorld, the only thing that is certain is that we will continue to invest in quality business journalism, which is the foundation of our company and has been our hallmark for decades. This is our way of taking to heart our responsibility to readers who consider us their most credible source of news and trends on business and the economy,\u201d Mr. Belmonte added.
\n\u201cBy going back to our core values, best described by the overall principle that what we do here is a public trust. That informs all of our initiatives and efforts, and everything else flows from that conviction. One can think of a whole list of initiatives we can explore \u2014 of which there are many, to be sure \u2014 but forget that foundation and you are lost,\u201d Mr. Reyes had said.
\nFROM STRENGTH TO STRENGTH
\nAll things considered, BusinessWorld has emerged from the devastation caused by COVID-19 better than most. For PhilStar Media Group Executive Vice-President Lucien C. Dy Tioco, BusinessWorld greatly benefits from the reputation and respect it has garnered as a news organization for the past 36 years.
He cited the brand\u2019s line of conferences and fora, such as the BusinessWorld Economic Forum and BusinessWorld Insights, which \u201cprovides a sharp lens to the issues and insights from our editorial expertise and its clout of influence\u201d within the Philippine business landscape.
\nMr. Reyes noted that it is this close proximity with the Philippine business community that has a symbiotic relationship with its growth.
\n\u201cConstantly keeping in close contact with our market dictates BusinessWorld\u2019s evolution as a platform for business content. So, this has lately been an increasingly fluid situation for us and that\u2019s good, because it keeps us on our toes,\u201d he had said.
\n\u201cIt has been quite a struggle to preserve core values through a fast-changing environment, but I think we have been doing just that and every challenge we have faced has made us more flexible, stronger and more relevant.\u201d
\nAs such, Mr. Dy Tioco said that it is BusinessWorld\u2019s prerogative to stay on top of the latest trends and issues in the community.
\n\u201cBusinessWorld continues to trailblaze into the future of business because of its unmatched acumen on how business behaves and the forces that impact its nature. That\u2019s why this early we are already introducing the content subscription market with BWorldX and the soon to be launched Top 1000 Premium,\u201d he said.
\nAs for the future, Mr. Belmonte is not worried as much.
\n\u201cI\u2019m very happy with the progress BusinessWorld has made, and I\u2019m especially proud that we have managed to outdo even other established media companies. Although we remain focused on our core business, which is publishing, we\u2019ve been quite successful in leveraging on the strong brand of BusinessWorld to expand into events, business analysis and insight, as well as other multimedia efforts that amplify our strength as the country\u2019s leading business title,\u201d he said.
\nBusinessWorld has transformed into a fully multimedia company, and Mr. Belmonte is optimistic that the company can overcome the challenges that seem to beset the industry.
\n\u201cConsidering how we managed to weather one crisis after another, especially the pandemic which brought so many companies to their knees, I am confident that BusinessWorld will continue to be forward-thinking and innovative in dealing with whatever challenges may come in the future,\u201d he concluded.
\n", "content_text": "1 of 6\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n BusinessWorld President and CEO Miguel G. Belmonte \u2014 \n BW FILE PHOTO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n BusinessWorld Editor-in-Chief Wilfredo G. Reyes \u2014 PHOTO BY EARL STATE R. LAGUNDINO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n PhilStar Media Group Executive Vice-President Lucien C. Dy Tioco \u2014 PHOTO BY EARL STATE R. LAGUNDINO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n BusinessWorld\u2019s current office in New Manila, Quezon City \u2014 THEA MAIRI A.CASTILLO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n BusinessWorld\u2019s first office in Diamond Motors building in Ortigas \u2014 BW FILE PHOTO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n The editorial office at BusinessWorld\u2019s current building in Quezon City. \u2014 EARL STATE R. LAGUNDINO\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n\r\n \r\n \nBy Bjorn Biel M. Beltran, Special Features and Content Assistant Editor\nIT WOULD not be too much of an overstatement to say that the state of the journalism and media industry is in complete upheaval.\nOver the past decade alone, serious issues such as the changing preferences of audiences, the proliferation of misinformation on social media platforms like Facebook and Twitter, and now the threat of artificial intelligence (AI) large language models like ChatGPT replacing man-made content generation, are challenging the foundations of the industry itself.\n\u201cTechnology and the speed at which it is advancing is definitely reshaping the business landscape in all parts of the globe. Everything, as you know, is moving too fast,\u201d Miguel G. Belmonte, president and CEO of The Philippine Star and BusinessWorld, said in an interview.\n\u201cSpeaking in the context of media, technology is helping us in many ways on the one hand but it is also making aspects of our business more challenging on the other. It\u2019s really a double-edged sword and it depends now how companies can harness the advantages to benefit their businesses in the long term.\u201d\nMr. Belmonte noted that the emergence of ChatGPT and other generative large language models have been \u201creal game-changers\u201d with regard to how it can affect journalism and media moving forward.\n\u201cWith AI and Web 3.0, things will get a bit more complex again, but that\u2019s the world we live in right now, and businesses really have to be agile and to adapt to these evolutions.\u201d\nIn fact, the World Economic Forum early this year outlined the risks of such technologies such as their ability to generate false and misleading content, to displace workers like writers and artists, or even to create a flood of fake news and disinformation across platforms and ecosystems.\n\u201cThese are major changes, not only for media. I think this will affect all industries across the board. But we can only speak for ourselves. There are already changes we are seeing today, and there will be more,\u201d he said.\nBusinessWorld, when it was founded as Business Day in 1967, was Southeast Asia\u2019s first business daily. It was founded on the promise of providing \u201ccompetent and responsible reporting of the news\u201d under Raul L. Locsin, who served as its first president and editor-in-chief.\nBusiness Day has established itself as a leader in professional economic journalism in the Philippines and has established a tradition of excellence that continues to this day.\nThe paper celebrates its 36th year since its reformation under its new name in July 1987. With the ever-growing threats to truthful and responsible journalism, BusinessWorld now represents more than five decades of commitment to that vision, guided by Mr. Locsin\u2019s ever-enduring belief that \u201cA Newspaper is a Public Trust.\u201d\nMr. Belmonte \u2014 who took the helm since the paper was acquired by MediaQuest Holdings, Inc. in 2015 through the Philstar Media Group \u2014 is confident that holding fast to these core values will see the newspaper to even higher strengths in spite of all the challenges. \u201cIt\u2019s gotten more challenging, no doubt, what with having to bridge generational shifts and mindsets and even expertise since the younger generation are definitely more digital-savvy, but I would say that leadership style and qualities will remain the same regardless of how businesses evolve,\u201d he said.\n\u201cNowadays, change management is very critical; we need to ensure that people are coping with the pace of change so that it does not overwhelm anyone. Leaders also need to step back and listen more to ensure that the young ones are heard and that they have a stake in how the business is run.\u201d\nCHAMPIONING BUSINESS JOURNALISM AMID INDUSTRIAL REVOLUTION\nWilfredo G. Reyes, BusinessWorld\u2019s editor-in-chief, previously noted that every challenge that emerges is an opportunity to not only improve, but become more in tune with the readers that the paper is trying to serve.\n\u201cHow such challenges will affect the way we do things is something all of us in the company will have to discern and agree on as we beat the path ahead. There will always be a need for verified, accurate information, especially during emergencies and crises \u2014 more so for BusinessWorld\u2019s public \u2014 but the question is in the form and mode of delivery,\u201d he had said.\n\u201cPeople have been saying since at least the early 2000s that \u2018print is dead\u2019. I think that every medium has its use and it is up to us to find out what that is amid changing needs and preferences, and how to maximize each platform.\u201d\nMr. Reyes further noted that past challenges like the coronavirus disease 2019 (COVID-19) pandemic opened a door for BusinessWorld to explore and fully commit to digital initiatives.\n\u201cDigital initiatives have been accounting for more of our products and revenues; that I now always refer to BusinessWorld more generally as a publication, rather than just a newspaper,\u201d he said.\n\u201cIf anything, this crisis has shown that, more than specific actions, we have the right mindset [to begin with] and processes to promptly tap emerging opportunities when and however they come.\u201d\nCathy Rose A. Garcia, BusinessWorld\u2019s managing editor, echoed the sentiment, noting in an interview that \u201cthe COVID-19 pandemic has brought significant changes to the business environment not just in the Philippines but around the world. Companies have had to rethink their business models and implement changes to ensure their survival.\u201d\n\u201cNews organizations have to fully embrace digital in order to meet the evolving expectations of the audience. BusinessWorld has adapted to this changing media landscape by expanding into multimedia news, podcasts, videos, as well as organizing webinars and economic forums,\u201d she added.\nShe also noted that journalists also have to prepare for the next wave of disruption with the growing popularity of artificial intelligence technologies.\nCompanies are still facing many challenges as well, such as those of an economic slowdown, elevated inflation, high interest rates, supply chain disruptions, accelerated digital transformation, cybersecurity, sustainability and job-skills mismatch.\nMs. Garcia believes that organizations like BusinessWorld play a vital role in chronicling such issues and in \u201craising the public trust and preventing the spread of disinformation.\u201d\n\u201cPublic-service oriented media organizations should be instrumental in upholding standards for objectivity, fact-finding, reasonable arguments and ethics,\u201d she said.\nMr. Belmonte holds firm that, even beset by challenges itself, it is still BusinessWorld\u2019s responsibility to inform and educate the general public about issues posing risks to the Philippine business community.\n\u201cWhether we welcome it or now, change will affect industries across the board. It is inevitable, and no one is exempt from it. We have seen how the pace of change accelerated in the past two decades, and how it impacted the fortunes of companies and economies all over the world,\u201d he said.\n\u201cFor us at BusinessWorld, the only thing that is certain is that we will continue to invest in quality business journalism, which is the foundation of our company and has been our hallmark for decades. This is our way of taking to heart our responsibility to readers who consider us their most credible source of news and trends on business and the economy,\u201d Mr. Belmonte added.\n\u201cBy going back to our core values, best described by the overall principle that what we do here is a public trust. That informs all of our initiatives and efforts, and everything else flows from that conviction. One can think of a whole list of initiatives we can explore \u2014 of which there are many, to be sure \u2014 but forget that foundation and you are lost,\u201d Mr. Reyes had said.\nFROM STRENGTH TO STRENGTH\nAll things considered, BusinessWorld has emerged from the devastation caused by COVID-19 better than most. For PhilStar Media Group Executive Vice-President Lucien C. Dy Tioco, BusinessWorld greatly benefits from the reputation and respect it has garnered as a news organization for the past 36 years.\nHe cited the brand\u2019s line of conferences and fora, such as the BusinessWorld Economic Forum and BusinessWorld Insights, which \u201cprovides a sharp lens to the issues and insights from our editorial expertise and its clout of influence\u201d within the Philippine business landscape.\nMr. Reyes noted that it is this close proximity with the Philippine business community that has a symbiotic relationship with its growth.\n\u201cConstantly keeping in close contact with our market dictates BusinessWorld\u2019s evolution as a platform for business content. So, this has lately been an increasingly fluid situation for us and that\u2019s good, because it keeps us on our toes,\u201d he had said.\n\u201cIt has been quite a struggle to preserve core values through a fast-changing environment, but I think we have been doing just that and every challenge we have faced has made us more flexible, stronger and more relevant.\u201d\nAs such, Mr. Dy Tioco said that it is BusinessWorld\u2019s prerogative to stay on top of the latest trends and issues in the community.\n\u201cBusinessWorld continues to trailblaze into the future of business because of its unmatched acumen on how business behaves and the forces that impact its nature. That\u2019s why this early we are already introducing the content subscription market with BWorldX and the soon to be launched Top 1000 Premium,\u201d he said.\nAs for the future, Mr. Belmonte is not worried as much.\n\u201cI\u2019m very happy with the progress BusinessWorld has made, and I\u2019m especially proud that we have managed to outdo even other established media companies. Although we remain focused on our core business, which is publishing, we\u2019ve been quite successful in leveraging on the strong brand of BusinessWorld to expand into events, business analysis and insight, as well as other multimedia efforts that amplify our strength as the country\u2019s leading business title,\u201d he said.\nBusinessWorld has transformed into a fully multimedia company, and Mr. Belmonte is optimistic that the company can overcome the challenges that seem to beset the industry.\n\u201cConsidering how we managed to weather one crisis after another, especially the pandemic which brought so many companies to their knees, I am confident that BusinessWorld will continue to be forward-thinking and innovative in dealing with whatever challenges may come in the future,\u201d he concluded.", "date_published": "2023-09-04T00:07:57+08:00", "date_modified": "2023-09-03T14:07:48+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/SF_MGB-at-ECOFORUM.jpg", "tags": [ "Bjorn Biel M. Beltran", "bw36", "Special Reports" ], "summary": "IT WOULD not be too much of an overstatement to say that the state of the journalism and media industry is in complete upheaval." }, { "id": "https://www.bworldonline.com/?p=542983", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542983/bringing-the-businessworld-platform-on-ground/", "title": "Bringing the BusinessWorld platform on-ground", "content_html": "\r\n \r\n\r\nBy Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
\nEVEN GOING BACK to its roots as Business Day more than fifty years ago, BusinessWorld\u2019s purpose was to become a public trust. As such, the strict adherence to truth, integrity, and public service had become the company\u2019s guiding star ever since.
\nIt is a natural evolution then, that now as a fully multimedia company, BusinessWorld has become known for a platform for expert analysis and engaging discussion about the development of the Philippine business community.
\nThe BusinessWorld Economic Forum, one of the media company\u2019s yearly events, has become one of the most anticipated gatherings of the Philippine business sector.
\nBack in 2016, the company recognized the opportunity to create a new revenue stream and content platform by holding an annual on-site large-scale event. By that point, print advertising revenue had already begun to fall steadily for newspapers.
\nKeynote speakers at the time included Manuel V Pangilinan, chairman of the MVP Group of Companies; former Finance Secretary Carlos G. Dominguez III; and former Vice-President Maria Leonor G. Robredo. Other speakers included public and private sector representatives. About 850 of the country\u2019s most influential CEOs, business owners, and policy makers came together for the forum, marking the start of a new era for BusinessWorld.
\nSuccessive editions of the Economic Forum have cemented its status as a must-attend gathering for the country\u2019s leaders and newsmakers, as they have shed light on the most pressing trends, challenges, and opportunities currently impacting the global economy.
\nThis year\u2019s forum centered on how the Philippines is faring in the global sustainability transformation, on the theme titled \u201cThe Digital Future: Accelerating Business and Sustainability,\u201d held at the Grand Ballroom of Grand Hyatt Manila in Bonifacio Global City, Taguig City on May 25.
\n\u201cOver the past decade, two key transformations have dominated these sorts of discussions in the business community, namely, digitalization and sustainability,\u201d Miguel G. Belmonte, president and chief executive officer of BusinessWorld, said in his opening remarks at the event.
\n\u201cThe COVID-19 pandemic, which thankfully is now behind us, has served as a catalyst for many such conversations. It accelerated the adoption of new and emerging technology for many businesses, ours included, and have pushed consumers into thinking about broader concepts of sustainability,\u201d he added.
\nKey speakers at the event included Ivan John E. Uy, secretary of the Department of Information and Communications Technology; and Riccardo Puliti, regional vice-president for Asia and the Pacific at the International Finance Corp.
\n\u201cIt\u2019s really important to underline the role of the newspaper in providing credible and factual news. That\u2019s what people need to realize,\u201d Lucien C. Dy Tioco, executive vice-president of BusinessWorld and its umbrella brand PhilStar Media Group (PMG), had said.
\n\u201cFor newspapers, it\u2019s important to fight for our role in this space, especially since there\u2019s a need for us to level things in providing accurate and truthful information. With BusinessWorld, it\u2019s more important to provide confidence to the business community, giving them information on what is going on with the economy and what are the developments happening around the globe,\u201d Mr. Dy Tioco added.
\nWhen the pandemic was in full swing, this responsibility had become of prime importance, not only to the larger business community, but to the company\u2019s survival. And at a time when COVID-19 was wreaking havoc on every industry, BusinessWorld pulled through.
\nThe BusinessWorld Virtual Economic Forum (BW VEF) has distinguished the BusinessWorld brand by hosting in-depth discussions with prominent figures from around the world completely online. The forum, in tandem with other digitally-focused initiatives, has helped the firm weather the disruptive waves of the pandemic.
\nIn 2020, the BW VEF attracted 1,200 people, 40% of whom were C-suite executives or department heads. With 538 people, BW VEF 2021 surpassed its attendance goal by 108%; 66% of these attendees were presidents, vice-presidents, C-level executives, directors, and regional heads. However, there are 651 people that signed up to attend BWVEF 2022.
\nJay R. Sarmiento, sales and marketing director at BusinessWorld, said that the forum\u2019s success can be seen in the positive comments left by attendees, the positive responses from speakers, and the willingness of existing sponsors to continue supporting the forum as it transitions from physical to digital form.
\nMeanwhile, BusinessWorld Insights, a series of online video conferences hosted by the publication during the pandemic, aimed to bring its brand of quality professional journalism to the digital platform by convening some of the country\u2019s movers and shakers to discuss the dynamic nature of the Philippine business landscape, the opportunities and threats it faces, and the trends that will shape its future.
\n\u201cI\u2019m proud of the fact that when the pandemic happened, BusinessWorld was able to adapt well. It was easy for us to shift online, especially for our editorial team,\u201d Mr. Dy Tioco had said.
\nHe also noted that BusinessWorld Insights, as a fresh online news and analysis platform, has successfully transferred the company\u2019s decades-long reputation for accuracy and reliability into the digital realm.
\n\u201cThat was really helpful for the business community, especially when everybody was in crisis and were looking for advice on how to navigate the situation. I think BusinessWorld is poised to continue to provide the information on trends and analyses that the business community is looking for,\u201d Mr. Dy Tioco said.
\n\u201cI\u2019ve been hearing a lot of good feedback from the business community, especially during the pandemic. We were given praises for what we have been providing with BusinessWorld Insights and the BusinessWorld Virtual Economic Forum. That gives us the incentive to adapt to the times, to be of service to businesses, informing them of what to do during crises,\u201d he added.
\nRecent accolades for BusinessWorld from prestigious award-giving agencies also attest to the Economic Forum\u2019s and BusinessWorld Insights\u2019 continuing relevance.
\nThe 19th Philippine Quill Awards, given to the year\u2019s top communication programs, tools, and research initiatives, included the inaugural BW VEF as a winning entry. Additionally, in the awards program\u2019s Communication Skills category for last year, BusinessWorld won for both its BW VEF and the new Forecasts forum.
\nMeanwhile, BW VEF 2021 was recognized with a special prize at the 21st Asian Media Awards (AMA) presented by the World Association of News Publishers.
\nBusinessWorld now joins the distinguished group of recipients of the AMA\u2019s special prize, alongside Nikkei Asia from Japan, the South China Morning Post from Hong Kong, SPH Media from Singapore, and Media Indonesia from Indonesia.
\n\u201cI just feel that our win on the Asian stage is just one step over being recognized globally,\u201d Mr. Dy Tioco had said.
\nIn addition, BW VEF 2022 has also been recognized at The 58th Anvil Awards 2023, bagging a silver award for Events and Exhibit \u2014 Conference/Convention. The BusinessWorld Economic Forum had previously been recognized by award-giving bodies like the Philippine Quill Awards, The Media Specialists Association of the Philippines ICE Awards, and the Anvil Awards every year since its inception in 2016.
\nMs. Sarmiento agreed. \u201cBusinessWorld Insights has been recognized by both Anvil Awards and Quill Awards for excellence in communication programs and special events. These awards are validations that our efforts are indeed worth-taking and valuable,\u201d she had said.
\n\u201cI think that BusinessWorld Insights has owned the digital space in terms of online forum and discussion. From our very first once-a-month run in April 2020, BusinessWorld Insights has become synonymous to relevant online discussions on business matters that, at present, we are able to mount almost weekly public and private online fora. This initiative has not only given us growth in online audience but has also earned us the trust of advertisers as they continue to support BusinessWorld Insights through sponsorships, thereby, significantly contributing to our bottom lines.\u201d
\nMs. Sarmiento added that the resuming of on-ground discussions, alongside the digital initiatives, can only add to the BusinessWorld\u2019s growing repertoire of outstanding event offerings.
\nAfter several fora held online, BusinessWorld Insights has been brought on the ground last Feb. 28 with a forum that looked into the prospects and outlook for the stock market this year at Sheraton Hotel in Pasay City. Speakers included April Lynn Lee-Tan, first vice-president of COL Financial Group, Inc.; Michael Gerard D. Enriquez, president and chief investment officer of Sun Life Investment Management and Trust Corp.; Luis Gerardo A. Limlingan, currently head of sales at Regina Capital Development Corp., and Jong Layug, vice-president and head of wealth management at GCash.
\n\u201cFor me the most rewarding part of BusinessWorld\u2019s offerings like the Economic Forum and Insights is that we are able to actually make our business stories from our newspapers come alive and become more dynamic and interactive through actual face-to-face, on-ground discussions and idea-sharing,\u201d Ms. Sarmiento said in a more recent interview.
\n\u201cThe most difficult part, or may I say the most challenging part, would be putting together the agenda and speakers\u2019 lineup of the forum to make it most interesting and relevant to the business community,\u201d she added.
\nThese events, she also pointed out, continue to build on BusinessWorld\u2019s reputation among the country\u2019s business leaders and policy makers, and essentially embody the principles that BusinessWorld was founded on.
\n\u201cOf course, this helps us extend the life of print and it promotes our brand as a business paper. But more than that, when we are able to engage people through a lively discussion, elicit them to share their thoughts and ideas, and from these discussions to be able to elevate and contribute to empowering businesses to thrive and flourish for the benefit of the people, then I guess that is most rewarding for us.\u201d
\nMore recently, Mr. Dy Tioco remarked on the significance of BusinessWorld\u2019s ever-growing reputation to the overall influence of the PhilStar Media Group, especially with their more community-focused initiatives.
\nAmong these is the advocacy initiative \u201cNakakalocal: Love Local, Grow Global,\u201d which began last year with the intention of encouraging consumers to shop at local establishments, especially small and medium-sized businesses (SMEs), that make quality goods.
\nTo make a significant advocacy statement, \u201cNakakalocal\u201d makes use of all of PMG\u2019s resources, including BusinessWorld. The plan has the backing of the country\u2019s largest business institutions, which will allow for the development of a comprehensive infrastructure to aid SMEs in the Philippines.
\nAnother new initiative is Project KaLIKHAsan, PMG\u2019s newest initiative that converges print, digital, and on-ground platforms to raise the cause of meaningful and concrete sustainability in industries and communities.
\nBusinessWorld mounted its first three BusinessWorld Insights fora under the said initiative. The first one, themed \u201cMaking Way for Sustainable Mobility,\u201d gathered Electric Vehicle Association of the Philippines President Edmund A. Araga, National Bicycle Association Director and Founder Benedict L. Camara, Toyota Mobility Solutions Philippines, Inc. President and CEO Ma. Cristina Fe N. Arevalo, and Aboitiz InfraCapital Economic Estates Vice-President for Inventory Generation Jolan Formalejo to discuss initial steps and potential next ones towards getting to places more sustainably. It was held online last June 29.
\nThis was followed by an on-ground forum carrying the theme \u201cSustaining the Future of Energy\u201d last July 26 at Shangri-La the Fort, Manila in Bonifacio Global City, Taguig. It featured keynote speeches from Independent Electricity Market Operator of the Philippines President and CEO Atty. Richard J. Nethercott and Energy Secretary Raphael Perpetuo M. Lotilla, and panel discussions with several experts and executives from energy generation, regulation, distribution, and efficiency fronts.
\nMore recently, last Aug. 30, an online forum themed \u201cESG, A Bridge to A Greener Environment\u201d tackled the potentials of the environment, social, and governance standard in propelling businesses to help addressing the country\u2019s pressing environmental issues. Comprising the panel were Floradema Eleazar, Outcome Leader of the United Nations Development Programme Climate Action Team in the Philippines; Chaye Cabal-Revilla, chief finance officer and chief sustainability officer of Metro Pacific Investments Corp.; and Mr. Formalejo of Aboitiz InfraCapital Economic Estates.
\n\u201cThe value that BusinessWorld lends from its business fora offerings is that it provides a sharp lens to the issues and insights from our editorial expertise and its clout of influence not only within our business community but also its ability to reach out to global economic leaders and experts. This is because of the high regard and respect for our news organization for the past 36 years,\u201d BusinessWorld\u2019s Mr. Dy Tioco shared.
\n\u201cThis is why the PhilStar Group has relied on BusinessWorld on its contribution to its latest advocacy projects, Nakakalocal and Project KaLIKHAsan to be able to share its economic expertise in helping our MSMEs and help break ground for innovative solutions that will pursue sustainability.\u201d
\n", "content_text": "1 of 5\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n MediaQuest Holdings, Inc. Chairman Mr. Pangilinan delivers a keynote speech during the BusinessWorld Economic Forum in 2019. \u2014 BW FILE PHOTO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n An on-ground BusinessWorld Insights forum on \u201cSustaining the Future of Energy\u201d was held last July in Shangri-La the Fort, Manila. \u2014 EARL STATE R. LAGUNDINO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n The most recent BusinessWorld Economic Forum was held last May in Grand Hyatt Manila. \u2014 BW FILE PHOTO\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n A panel discussion during an on-ground BusinessWorld Insights forum last July\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n A panel discussion during the BusinessWorld Economic Forum last May\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n\r\n \r\n \nBy Bjorn Biel M. Beltran, Special Features and Content Assistant Editor\nEVEN GOING BACK to its roots as Business Day more than fifty years ago, BusinessWorld\u2019s purpose was to become a public trust. As such, the strict adherence to truth, integrity, and public service had become the company\u2019s guiding star ever since.\nIt is a natural evolution then, that now as a fully multimedia company, BusinessWorld has become known for a platform for expert analysis and engaging discussion about the development of the Philippine business community.\nThe BusinessWorld Economic Forum, one of the media company\u2019s yearly events, has become one of the most anticipated gatherings of the Philippine business sector.\nBack in 2016, the company recognized the opportunity to create a new revenue stream and content platform by holding an annual on-site large-scale event. By that point, print advertising revenue had already begun to fall steadily for newspapers.\nKeynote speakers at the time included Manuel V Pangilinan, chairman of the MVP Group of Companies; former Finance Secretary Carlos G. Dominguez III; and former Vice-President Maria Leonor G. Robredo. Other speakers included public and private sector representatives. About 850 of the country\u2019s most influential CEOs, business owners, and policy makers came together for the forum, marking the start of a new era for BusinessWorld.\nSuccessive editions of the Economic Forum have cemented its status as a must-attend gathering for the country\u2019s leaders and newsmakers, as they have shed light on the most pressing trends, challenges, and opportunities currently impacting the global economy.\nThis year\u2019s forum centered on how the Philippines is faring in the global sustainability transformation, on the theme titled \u201cThe Digital Future: Accelerating Business and Sustainability,\u201d held at the Grand Ballroom of Grand Hyatt Manila in Bonifacio Global City, Taguig City on May 25.\n\u201cOver the past decade, two key transformations have dominated these sorts of discussions in the business community, namely, digitalization and sustainability,\u201d Miguel G. Belmonte, president and chief executive officer of BusinessWorld, said in his opening remarks at the event.\n\u201cThe COVID-19 pandemic, which thankfully is now behind us, has served as a catalyst for many such conversations. It accelerated the adoption of new and emerging technology for many businesses, ours included, and have pushed consumers into thinking about broader concepts of sustainability,\u201d he added.\nKey speakers at the event included Ivan John E. Uy, secretary of the Department of Information and Communications Technology; and Riccardo Puliti, regional vice-president for Asia and the Pacific at the International Finance Corp.\n\u201cIt\u2019s really important to underline the role of the newspaper in providing credible and factual news. That\u2019s what people need to realize,\u201d Lucien C. Dy Tioco, executive vice-president of BusinessWorld and its umbrella brand PhilStar Media Group (PMG), had said.\n\u201cFor newspapers, it\u2019s important to fight for our role in this space, especially since there\u2019s a need for us to level things in providing accurate and truthful information. With BusinessWorld, it\u2019s more important to provide confidence to the business community, giving them information on what is going on with the economy and what are the developments happening around the globe,\u201d Mr. Dy Tioco added.\nWhen the pandemic was in full swing, this responsibility had become of prime importance, not only to the larger business community, but to the company\u2019s survival. And at a time when COVID-19 was wreaking havoc on every industry, BusinessWorld pulled through.\nThe BusinessWorld Virtual Economic Forum (BW VEF) has distinguished the BusinessWorld brand by hosting in-depth discussions with prominent figures from around the world completely online. The forum, in tandem with other digitally-focused initiatives, has helped the firm weather the disruptive waves of the pandemic.\nIn 2020, the BW VEF attracted 1,200 people, 40% of whom were C-suite executives or department heads. With 538 people, BW VEF 2021 surpassed its attendance goal by 108%; 66% of these attendees were presidents, vice-presidents, C-level executives, directors, and regional heads. However, there are 651 people that signed up to attend BWVEF 2022.\nJay R. Sarmiento, sales and marketing director at BusinessWorld, said that the forum\u2019s success can be seen in the positive comments left by attendees, the positive responses from speakers, and the willingness of existing sponsors to continue supporting the forum as it transitions from physical to digital form.\nMeanwhile, BusinessWorld Insights, a series of online video conferences hosted by the publication during the pandemic, aimed to bring its brand of quality professional journalism to the digital platform by convening some of the country\u2019s movers and shakers to discuss the dynamic nature of the Philippine business landscape, the opportunities and threats it faces, and the trends that will shape its future.\n\u201cI\u2019m proud of the fact that when the pandemic happened, BusinessWorld was able to adapt well. It was easy for us to shift online, especially for our editorial team,\u201d Mr. Dy Tioco had said.\nHe also noted that BusinessWorld Insights, as a fresh online news and analysis platform, has successfully transferred the company\u2019s decades-long reputation for accuracy and reliability into the digital realm.\n\u201cThat was really helpful for the business community, especially when everybody was in crisis and were looking for advice on how to navigate the situation. I think BusinessWorld is poised to continue to provide the information on trends and analyses that the business community is looking for,\u201d Mr. Dy Tioco said.\n\u201cI\u2019ve been hearing a lot of good feedback from the business community, especially during the pandemic. We were given praises for what we have been providing with BusinessWorld Insights and the BusinessWorld Virtual Economic Forum. That gives us the incentive to adapt to the times, to be of service to businesses, informing them of what to do during crises,\u201d he added.\nRecent accolades for BusinessWorld from prestigious award-giving agencies also attest to the Economic Forum\u2019s and BusinessWorld Insights\u2019 continuing relevance.\nThe 19th Philippine Quill Awards, given to the year\u2019s top communication programs, tools, and research initiatives, included the inaugural BW VEF as a winning entry. Additionally, in the awards program\u2019s Communication Skills category for last year, BusinessWorld won for both its BW VEF and the new Forecasts forum.\nMeanwhile, BW VEF 2021 was recognized with a special prize at the 21st Asian Media Awards (AMA) presented by the World Association of News Publishers.\nBusinessWorld now joins the distinguished group of recipients of the AMA\u2019s special prize, alongside Nikkei Asia from Japan, the South China Morning Post from Hong Kong, SPH Media from Singapore, and Media Indonesia from Indonesia.\n\u201cI just feel that our win on the Asian stage is just one step over being recognized globally,\u201d Mr. Dy Tioco had said.\nIn addition, BW VEF 2022 has also been recognized at The 58th Anvil Awards 2023, bagging a silver award for Events and Exhibit \u2014 Conference/Convention. The BusinessWorld Economic Forum had previously been recognized by award-giving bodies like the Philippine Quill Awards, The Media Specialists Association of the Philippines ICE Awards, and the Anvil Awards every year since its inception in 2016.\nMs. Sarmiento agreed. \u201cBusinessWorld Insights has been recognized by both Anvil Awards and Quill Awards for excellence in communication programs and special events. These awards are validations that our efforts are indeed worth-taking and valuable,\u201d she had said.\n\u201cI think that BusinessWorld Insights has owned the digital space in terms of online forum and discussion. From our very first once-a-month run in April 2020, BusinessWorld Insights has become synonymous to relevant online discussions on business matters that, at present, we are able to mount almost weekly public and private online fora. This initiative has not only given us growth in online audience but has also earned us the trust of advertisers as they continue to support BusinessWorld Insights through sponsorships, thereby, significantly contributing to our bottom lines.\u201d\nMs. Sarmiento added that the resuming of on-ground discussions, alongside the digital initiatives, can only add to the BusinessWorld\u2019s growing repertoire of outstanding event offerings.\nAfter several fora held online, BusinessWorld Insights has been brought on the ground last Feb. 28 with a forum that looked into the prospects and outlook for the stock market this year at Sheraton Hotel in Pasay City. Speakers included April Lynn Lee-Tan, first vice-president of COL Financial Group, Inc.; Michael Gerard D. Enriquez, president and chief investment officer of Sun Life Investment Management and Trust Corp.; Luis Gerardo A. Limlingan, currently head of sales at Regina Capital Development Corp., and Jong Layug, vice-president and head of wealth management at GCash.\n\u201cFor me the most rewarding part of BusinessWorld\u2019s offerings like the Economic Forum and Insights is that we are able to actually make our business stories from our newspapers come alive and become more dynamic and interactive through actual face-to-face, on-ground discussions and idea-sharing,\u201d Ms. Sarmiento said in a more recent interview.\n\u201cThe most difficult part, or may I say the most challenging part, would be putting together the agenda and speakers\u2019 lineup of the forum to make it most interesting and relevant to the business community,\u201d she added.\nThese events, she also pointed out, continue to build on BusinessWorld\u2019s reputation among the country\u2019s business leaders and policy makers, and essentially embody the principles that BusinessWorld was founded on.\n\u201cOf course, this helps us extend the life of print and it promotes our brand as a business paper. But more than that, when we are able to engage people through a lively discussion, elicit them to share their thoughts and ideas, and from these discussions to be able to elevate and contribute to empowering businesses to thrive and flourish for the benefit of the people, then I guess that is most rewarding for us.\u201d\nMore recently, Mr. Dy Tioco remarked on the significance of BusinessWorld\u2019s ever-growing reputation to the overall influence of the PhilStar Media Group, especially with their more community-focused initiatives.\nAmong these is the advocacy initiative \u201cNakakalocal: Love Local, Grow Global,\u201d which began last year with the intention of encouraging consumers to shop at local establishments, especially small and medium-sized businesses (SMEs), that make quality goods.\nTo make a significant advocacy statement, \u201cNakakalocal\u201d makes use of all of PMG\u2019s resources, including BusinessWorld. The plan has the backing of the country\u2019s largest business institutions, which will allow for the development of a comprehensive infrastructure to aid SMEs in the Philippines.\nAnother new initiative is Project KaLIKHAsan, PMG\u2019s newest initiative that converges print, digital, and on-ground platforms to raise the cause of meaningful and concrete sustainability in industries and communities.\nBusinessWorld mounted its first three BusinessWorld Insights fora under the said initiative. The first one, themed \u201cMaking Way for Sustainable Mobility,\u201d gathered Electric Vehicle Association of the Philippines President Edmund A. Araga, National Bicycle Association Director and Founder Benedict L. Camara, Toyota Mobility Solutions Philippines, Inc. President and CEO Ma. Cristina Fe N. Arevalo, and Aboitiz InfraCapital Economic Estates Vice-President for Inventory Generation Jolan Formalejo to discuss initial steps and potential next ones towards getting to places more sustainably. It was held online last June 29.\nThis was followed by an on-ground forum carrying the theme \u201cSustaining the Future of Energy\u201d last July 26 at Shangri-La the Fort, Manila in Bonifacio Global City, Taguig. It featured keynote speeches from Independent Electricity Market Operator of the Philippines President and CEO Atty. Richard J. Nethercott and Energy Secretary Raphael Perpetuo M. Lotilla, and panel discussions with several experts and executives from energy generation, regulation, distribution, and efficiency fronts.\nMore recently, last Aug. 30, an online forum themed \u201cESG, A Bridge to A Greener Environment\u201d tackled the potentials of the environment, social, and governance standard in propelling businesses to help addressing the country\u2019s pressing environmental issues. Comprising the panel were Floradema Eleazar, Outcome Leader of the United Nations Development Programme Climate Action Team in the Philippines; Chaye Cabal-Revilla, chief finance officer and chief sustainability officer of Metro Pacific Investments Corp.; and Mr. Formalejo of Aboitiz InfraCapital Economic Estates.\n\u201cThe value that BusinessWorld lends from its business fora offerings is that it provides a sharp lens to the issues and insights from our editorial expertise and its clout of influence not only within our business community but also its ability to reach out to global economic leaders and experts. This is because of the high regard and respect for our news organization for the past 36 years,\u201d BusinessWorld\u2019s Mr. Dy Tioco shared.\n\u201cThis is why the PhilStar Group has relied on BusinessWorld on its contribution to its latest advocacy projects, Nakakalocal and Project KaLIKHAsan to be able to share its economic expertise in helping our MSMEs and help break ground for innovative solutions that will pursue sustainability.\u201d", "date_published": "2023-09-04T00:06:56+08:00", "date_modified": "2023-09-03T15:12:32+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/SF_MVP-media-PhotoSynthesis_317.jpg", "tags": [ "Bjorn Biel M. Beltran", "bw36", "Special Reports" ], "summary": "EVEN GOING BACK to its roots as Business Day more than fifty years ago, BusinessWorld\u2019s purpose was to become a public trust. As such, the strict adherence to truth, integrity, and public service had become the company\u2019s guiding star ever since." }, { "id": "https://www.bworldonline.com/?p=542982", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542982/keeping-optimism-amid-uncertainties-in-the-philippine-stock-market/", "title": "Keeping optimism amid uncertainties in the Philippine stock market", "content_html": "By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
\nSKYROCKETING INFLATION and interest rates are major concerns for investors planning ahead in 2023, as many are uncertain how much of an influence even a positive economic trajectory for the Philippines can bolster their investments amid such a grim global outlook.
\nAccording to the latest Global Economic Prospects report by the World Bank, global growth is expected to slacken from 2.9% in 2022 to 1.7% in 2023. The likelihood of increased inflation, further tighter monetary policy, financial stress, and escalating geopolitical tensions are just a few of the adverse risks that dampen the forecast.
\nThese factors play a large role in the Philippine equities market as foreign investors account for a large part of the Philippine market. April Lynn Lee-Tan, COL Financial Group, Inc. chief equity strategist, said as much during the first face-to-face BusinessWorld Insights held last Feb. 28 at Sheraton Hotel in Pasay City.
\nDespite this, the Philippines\u2019 economic momentum and solid fundamentals do paint a better picture than many other countries, especially as many corporations posted positive earnings during 2022 as well.
\n\u201cThe economy has to have a good story to attract both local and foreign investors. You are competing with so many equity markets all over the world. Every little bit helps,\u201d she said.
\nMichael Gerard D. Enriquez, president and chief investment officer of Sun Life Investment Management and Trust Corp., echoed the sentiment as expectations for an easing inflation rate alongside the Bangko Sentral ng Pilipinas\u2019 (BSP) monetary policy reaching terminal value this March will do much to assuage investor concerns.
\n\u201cOverall, we\u2019re bullish for 2023 in terms of valuation for the PSEi (Philippine Stock Exchange index). I think there are a lot of aspects to sway investors to start buying. We\u2019re looking at earnings growth driven by real estate, conglomerates, and financials, so practically the majority of the sectors will perform,\u201d Mr. Enriquez said.
\nHe added that they are expecting a terminal rate near 6.25% or a hike of another 50 basis points (bps) when the monetary authorities review the policy rate later this month.
\n\u201cProbably in March, we will start to see a decline in inflation towards mid of this year. Probably, we\u2019ll see the BSP starting to be more dovish on their rhetoric. That is something where the market will move higher,\u201d he said.
\n\u201cThis is not the first time in history that rates have moved up and equities moved down. Overall, we are very bullish. There is a lot of underappreciated value right now.\u201d
\nWith so much uncertainty and volatility in the market, analyst forecasts see the PSEi to hit anywhere from 5,700 to 7,800 within the year.
\nIMPROVING PARTICIPATION IN LOCAL MARKET
\nMeanwhile, the PSE expects about 14 initial public offerings being listed in 2023, which could indicate a bullish outlook for many companies.
Ms. Lee-Tan, however, noted that there would be more companies that could go public, if not for the stringent regulatory requirements and expensive costs associated with doing so.
\n\u201cWe\u2019re not seeing more companies list. I think the regulatory requirements are quite difficult,\u201d Ms. Lee-Tan said.
\nShe said companies that are keen to list would need to undergo auditing from big firms, shelling out a large amount of money in the process.
\n\u201cRight now, a lot of companies would like to list, but one of the requirements for them is to be audited by big audit firms,\u201d she said, adding that the process could cost them \u201cmillions of pesos.\u201d
\n\u201cAnd it\u2019s also very expensive for companies to be listed. This is one of the issues that are facing companies that would want to list,\u201d she added.
\nThere was also the issue of being undervalued even if companies do end up going public, which is a relevant concern amid the fears of a global recession.
\nAccording to her, investors today would prefer lower single-digit price-earnings (P/E) ratios over those in the double-digits. She claimed that because of the decreased valuation, businesses are unwilling to make concessions.
\nMr. Enriquez pointed out that because the local market is very dependent on foreign investors, it unfortunately ties the Philippine stock markets to global investor sentiment.
\n\u201cIf we help improve local investor participation, then disruptions created by the global market will be addressed,\u201d Mr. Enriquez said.
\nJong Layug, vice-president and head of wealth management at GCash, said that since launching their GInvest program that allows their users to directly invest in the stock market, they have been seeing a lot of interest among Filipinos.
\n\u201cWhen we first introduced GInvest, we were able to increase accounts in the market. There is a lot of interest there. Filipinos want to be part of the investment ecosystem, but we need to make it easier for them,\u201d he said.
\nThe PSE had inked a three-way deal between the exchange, GCash, and the stock brokerage AB Capital late last year, to allow GCash\u2019s 67 million users the ability to directly invest in the stock market.
\nGCash has also recently opened its platform to be used abroad by Filipinos owning international SIM cards, as well as offered sustainable investment products under its GFunds portfolio with a partnership with ATR Asset Management (ATRAM).
\nMr. Layug added that GCash hopes to increase the local investor population through the program, expand the Philippine investment market, and make it more accessible for Filipinos all over.
\nAs of 2021 data, there were only approximately 1.6 million retail accounts in the Philippines\u2019 stock market, a tiny fraction of the local population.
\n\u201cWe\u2019re very excited to offer stocks in this kind of environment because there\u2019s really nowhere to go but up,\u201d he said.
\nThis BusinessWorld Insights forum was presented by BusinessWorld Publishing Corp., in partnership with Robinsons Land Corp.; and is sponsored by Globe; with partner organizations American Chamber of Commerce in the Philippines, Asian Society of the Philippines, British Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, French Chamber of Commerce and Industry in the Philippines, Management Association of the Philippines, the Makati Business Club, Philippine Chamber of Commerce and Industry, Philippine Franchise Association; and media partner The Philippine STAR.
\n", "content_text": "By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor\nSKYROCKETING INFLATION and interest rates are major concerns for investors planning ahead in 2023, as many are uncertain how much of an influence even a positive economic trajectory for the Philippines can bolster their investments amid such a grim global outlook.\nAccording to the latest Global Economic Prospects report by the World Bank, global growth is expected to slacken from 2.9% in 2022 to 1.7% in 2023. The likelihood of increased inflation, further tighter monetary policy, financial stress, and escalating geopolitical tensions are just a few of the adverse risks that dampen the forecast.\nThese factors play a large role in the Philippine equities market as foreign investors account for a large part of the Philippine market. April Lynn Lee-Tan, COL Financial Group, Inc. chief equity strategist, said as much during the first face-to-face BusinessWorld Insights held last Feb. 28 at Sheraton Hotel in Pasay City.\nDespite this, the Philippines\u2019 economic momentum and solid fundamentals do paint a better picture than many other countries, especially as many corporations posted positive earnings during 2022 as well.\n\u201cThe economy has to have a good story to attract both local and foreign investors. You are competing with so many equity markets all over the world. Every little bit helps,\u201d she said.\nMichael Gerard D. Enriquez, president and chief investment officer of Sun Life Investment Management and Trust Corp., echoed the sentiment as expectations for an easing inflation rate alongside the Bangko Sentral ng Pilipinas\u2019 (BSP) monetary policy reaching terminal value this March will do much to assuage investor concerns.\n\u201cOverall, we\u2019re bullish for 2023 in terms of valuation for the PSEi (Philippine Stock Exchange index). I think there are a lot of aspects to sway investors to start buying. We\u2019re looking at earnings growth driven by real estate, conglomerates, and financials, so practically the majority of the sectors will perform,\u201d Mr. Enriquez said.\nHe added that they are expecting a terminal rate near 6.25% or a hike of another 50 basis points (bps) when the monetary authorities review the policy rate later this month.\n\u201cProbably in March, we will start to see a decline in inflation towards mid of this year. Probably, we\u2019ll see the BSP starting to be more dovish on their rhetoric. That is something where the market will move higher,\u201d he said.\n\u201cThis is not the first time in history that rates have moved up and equities moved down. Overall, we are very bullish. There is a lot of underappreciated value right now.\u201d\nWith so much uncertainty and volatility in the market, analyst forecasts see the PSEi to hit anywhere from 5,700 to 7,800 within the year.\nIMPROVING PARTICIPATION IN LOCAL MARKET\nMeanwhile, the PSE expects about 14 initial public offerings being listed in 2023, which could indicate a bullish outlook for many companies.\nMs. Lee-Tan, however, noted that there would be more companies that could go public, if not for the stringent regulatory requirements and expensive costs associated with doing so.\n\u201cWe\u2019re not seeing more companies list. I think the regulatory requirements are quite difficult,\u201d Ms. Lee-Tan said.\nShe said companies that are keen to list would need to undergo auditing from big firms, shelling out a large amount of money in the process.\n\u201cRight now, a lot of companies would like to list, but one of the requirements for them is to be audited by big audit firms,\u201d she said, adding that the process could cost them \u201cmillions of pesos.\u201d\n\u201cAnd it\u2019s also very expensive for companies to be listed. This is one of the issues that are facing companies that would want to list,\u201d she added.\nThere was also the issue of being undervalued even if companies do end up going public, which is a relevant concern amid the fears of a global recession.\nAccording to her, investors today would prefer lower single-digit price-earnings (P/E) ratios over those in the double-digits. She claimed that because of the decreased valuation, businesses are unwilling to make concessions.\nMr. Enriquez pointed out that because the local market is very dependent on foreign investors, it unfortunately ties the Philippine stock markets to global investor sentiment.\n\u201cIf we help improve local investor participation, then disruptions created by the global market will be addressed,\u201d Mr. Enriquez said.\nJong Layug, vice-president and head of wealth management at GCash, said that since launching their GInvest program that allows their users to directly invest in the stock market, they have been seeing a lot of interest among Filipinos.\n\u201cWhen we first introduced GInvest, we were able to increase accounts in the market. There is a lot of interest there. Filipinos want to be part of the investment ecosystem, but we need to make it easier for them,\u201d he said.\nThe PSE had inked a three-way deal between the exchange, GCash, and the stock brokerage AB Capital late last year, to allow GCash\u2019s 67 million users the ability to directly invest in the stock market.\nGCash has also recently opened its platform to be used abroad by Filipinos owning international SIM cards, as well as offered sustainable investment products under its GFunds portfolio with a partnership with ATR Asset Management (ATRAM).\nMr. Layug added that GCash hopes to increase the local investor population through the program, expand the Philippine investment market, and make it more accessible for Filipinos all over.\nAs of 2021 data, there were only approximately 1.6 million retail accounts in the Philippines\u2019 stock market, a tiny fraction of the local population.\n\u201cWe\u2019re very excited to offer stocks in this kind of environment because there\u2019s really nowhere to go but up,\u201d he said.\nThis BusinessWorld Insights forum was presented by BusinessWorld Publishing Corp., in partnership with Robinsons Land Corp.; and is sponsored by Globe; with partner organizations American Chamber of Commerce in the Philippines, Asian Society of the Philippines, British Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, French Chamber of Commerce and Industry in the Philippines, Management Association of the Philippines, the Makati Business Club, Philippine Chamber of Commerce and Industry, Philippine Franchise Association; and media partner The Philippine STAR.", "date_published": "2023-09-04T00:05:56+08:00", "date_modified": "2023-09-03T13:55:59+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/SF_F1_professional-discussing-with-client-through-mobile-phone-trading.jpg", "tags": [ "Bjorn Biel M. Beltran", "bw36", "Special Reports" ], "summary": "SKYROCKETING INFLATION and interest rates are major concerns for investors planning ahead in 2023, as many are uncertain how much of an influence even a positive economic trajectory for the Philippines can bolster their investments amid such a grim global outlook." }, { "id": "https://www.bworldonline.com/?p=542981", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542981/businessworld-and-brands-partnerships-built-on-trust-and-high-regard/", "title": "BusinessWorld and brands: Partnerships built on trust and high regard", "content_html": "\r\n \r\n\r\nBy Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
\nHaving a reliable business partner is crucial in today\u2019s dynamic business environment. In this sense, BusinessWorld, as the most trusted business newspaper and multimedia company in the Philippines, offers much to partner brands and prospective advertisers.
\nBusinessWorld has evolved alongside the business community and the general public, cultivating its reputation for 36 years as the \u201cpublic trust\u201d that its founder Raul L. Locsin sought to create.
\nAs a result of its wide readership, broad coverage, and consistent dedication to professionalism, BusinessWorld has earned the respect of companies who want to increase their brand recognition and customer base.
\nBusinessWorld\u2019s Executive Vice-President Lucien C. Dy Tioco had previously noted that the company\u2019s continuously growing brand synergy can be directly attributed to the long-standing trust the media and content provider has earned for its superior economic reporting.
\n\u201cIt boils down to three factors: our credibility that we have established over the years, our clout and influence over the business community, and the quality of content that we produce which is very attuned to the needs of the business community,\u201d said Mr. Dy Tioco.
\nJay R. Sarmiento, BusinessWorld\u2019s sales and marketing director, said that BusinessWorld\u2019s credibility and reputation are unmatched in the industry, with this trustworthiness extending to its advertising and brand partnership services, and making it an obvious choice for businesses looking to enhance their reputation through association with a reputable platform.
\n\u201cI think BusinessWorld is able to maintain its reputation as the most credible and most trusted business paper in the country especially in the Philippine business community,\u201d she said.
\n\u201cDespite the many challenges it has faced through the years, it has remained well-respected owing to the quality of business reporting and presentation the paper has always been known for. I think that that respect has been the most important factor for brands and advertisers alike to consider in supporting the paper through the years.\u201d
\nEven at a time of great disruption during the height of the COVID-19 pandemic, BusinessWorld has not only effectively made the transition to the digital arena, but has become a valuable resource for other companies seeking advice and insight amid the economic downturn.
\nMs. Sarmiento noted that because of this, the company has been able to engage with brands and corporations to create and distribute original content.
\n\u201cAnd while we give utmost importance to our advertising partners and sponsors to keep BusinessWorld financially afloat, our respect for our editorial policy has also been of paramount consideration. To be able to balance this, we always keep the communication lines open between the editorial and marketing departments. You can say that most of our projects involving content or business information are products of constant collaboration and consultation between editorial and marketing. We have mutual respect for each other.\u201d
\nMr. Dy Tioco also stressed how important this mutual respect is to the company and to all its partners. \u201cWith the kind of content that BusinessWorld provides, it gives a good image to brands that partner with us,\u201d he said.
\nHe added, \u201cI think there\u2019s a common denominator between what brands and BusinessWorld have been doing. It\u2019s trying to provide what the customers need. In our case, it\u2019s the content that our readers are looking for.\u201d
\nBusinessWorld has partnered with leading corporations and government organizations in the Philippines, including, among many others, the Bangko Sentral ng Pilipinas, the Embassy of India, Aboitiz Group, Globe Philippines, the Independent Electricity Market Operator of the Philippines, and PayMaya.
\nNotably, the Bases Conversion and Development Authority partnered with BusinessWorld this year for the latest edition of its CLARK magazine. This edition highlighted the beauty of New Clark City, as well as the activities that can be enjoyed in the area, coffee shops to stop by, and spaces worth spending one\u2019s staycation in, among others.
\nMore recently, this list has come to include the Bankers Institute of the Philippines, Inc. (BAIPHIL) for a special feature on the induction of their officers for fiscal year 2023-2024. Racquel B. Ma\u00f1ago, president of BAIPHIL, commended BusinessWorld for its journalism and digital offerings.
\n\u201cBusinessWorld can be relied upon to deliver meaningful, timely and relevant information. In our collaborations with them, the strong work ethic demonstrated by its members is commendable,\u201d she said.
\n\u201cIn this increasing digital age, BusinessWorld\u2019s digital supplement is BAIPHIL\u2019s choice for our events and campaigns. We hope to continue engaging BusinessWorld with the use of its digital offerings. BAIPHIL wishes BusinessWorld continued success and looks forward to a stronger partnership in the coming years.\u201d
\nMs. Sarmiento hopes BusinessWorld\u2019s influence and reputation can be leveraged not only for the company\u2019s benefit, but for the promotion of more community and sustainability-focused agendas moving forward.
\nMr. Dy Tioco had previously noted BusinessWorld\u2019s role in the PhilStar Media Group\u2019s \u201cNakakalocal: Love Local, Grow Global\u201d advocacy program, which launched in 2022 to promote and encourage consumers to buy local and support local businesses, particularly small and medium enterprises (SMEs), that produce great products.
\n\u201cOur newest advocacy is very well-received by brands. They see several areas of collaboration that we can do together. And the wonderful thing about those collaborations is that there\u2019s really a common goal. It\u2019s not just serving one brand or the other, but it\u2019s really about serving a common goal of trying to uplift the economy by helping our SMEs and inspiring people to really start their own business,\u201d Mr. Dy Tioco had said of the program.
\nProject KaLIKHAsan, another of PhilStar Media Group\u2019s programs, meanwhile, aims to merge print, digital, and on-ground platforms to raise the cause of meaningful, concrete sustainability in industries and communities.
\nIn the years ahead, BusinessWorld is positioned to continue its partnership with brands to effectively communicate their messages across its multimedia channels.
\n\u201cAs the most trusted business paper in the country, advocacy projects like Project KaLIKHAsan and Nakakalocal will complement each other in terms of enhancing each other\u2019s images. BusinessWorld will be able to have more purpose to the business community as it focuses on sustainability and supporting local MSMEs,\u201d Ms. Sarmiento said.
\n\u201cKaLIKHAsan and Nakakalocal will have more leverage as it aligns with the BusinessWorld brand of quality economic journalism and integrity.\u201d
\n", "content_text": "1 of 3\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n IEMOP\u2019s Philippine Electric Power Industry Report\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n BCDA\u2019s latest CLARK magazine\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n BusinessWorld In-Depth magazine\u2019s latest issue in partnership with BAIPHIL\r\n \r\n \r\n \r\n \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n \r\n\r\n \r\n \nBy Bjorn Biel M. Beltran, Special Features and Content Assistant Editor\nHaving a reliable business partner is crucial in today\u2019s dynamic business environment. In this sense, BusinessWorld, as the most trusted business newspaper and multimedia company in the Philippines, offers much to partner brands and prospective advertisers.\nBusinessWorld has evolved alongside the business community and the general public, cultivating its reputation for 36 years as the \u201cpublic trust\u201d that its founder Raul L. Locsin sought to create.\nAs a result of its wide readership, broad coverage, and consistent dedication to professionalism, BusinessWorld has earned the respect of companies who want to increase their brand recognition and customer base.\nBusinessWorld\u2019s Executive Vice-President Lucien C. Dy Tioco had previously noted that the company\u2019s continuously growing brand synergy can be directly attributed to the long-standing trust the media and content provider has earned for its superior economic reporting.\n\u201cIt boils down to three factors: our credibility that we have established over the years, our clout and influence over the business community, and the quality of content that we produce which is very attuned to the needs of the business community,\u201d said Mr. Dy Tioco.\nJay R. Sarmiento, BusinessWorld\u2019s sales and marketing director, said that BusinessWorld\u2019s credibility and reputation are unmatched in the industry, with this trustworthiness extending to its advertising and brand partnership services, and making it an obvious choice for businesses looking to enhance their reputation through association with a reputable platform.\n\u201cI think BusinessWorld is able to maintain its reputation as the most credible and most trusted business paper in the country especially in the Philippine business community,\u201d she said.\n\u201cDespite the many challenges it has faced through the years, it has remained well-respected owing to the quality of business reporting and presentation the paper has always been known for. I think that that respect has been the most important factor for brands and advertisers alike to consider in supporting the paper through the years.\u201d\nEven at a time of great disruption during the height of the COVID-19 pandemic, BusinessWorld has not only effectively made the transition to the digital arena, but has become a valuable resource for other companies seeking advice and insight amid the economic downturn.\nMs. Sarmiento noted that because of this, the company has been able to engage with brands and corporations to create and distribute original content.\n\u201cAnd while we give utmost importance to our advertising partners and sponsors to keep BusinessWorld financially afloat, our respect for our editorial policy has also been of paramount consideration. To be able to balance this, we always keep the communication lines open between the editorial and marketing departments. You can say that most of our projects involving content or business information are products of constant collaboration and consultation between editorial and marketing. We have mutual respect for each other.\u201d\nMr. Dy Tioco also stressed how important this mutual respect is to the company and to all its partners. \u201cWith the kind of content that BusinessWorld provides, it gives a good image to brands that partner with us,\u201d he said.\nHe added, \u201cI think there\u2019s a common denominator between what brands and BusinessWorld have been doing. It\u2019s trying to provide what the customers need. In our case, it\u2019s the content that our readers are looking for.\u201d\nBusinessWorld has partnered with leading corporations and government organizations in the Philippines, including, among many others, the Bangko Sentral ng Pilipinas, the Embassy of India, Aboitiz Group, Globe Philippines, the Independent Electricity Market Operator of the Philippines, and PayMaya.\nNotably, the Bases Conversion and Development Authority partnered with BusinessWorld this year for the latest edition of its CLARK magazine. This edition highlighted the beauty of New Clark City, as well as the activities that can be enjoyed in the area, coffee shops to stop by, and spaces worth spending one\u2019s staycation in, among others.\nMore recently, this list has come to include the Bankers Institute of the Philippines, Inc. (BAIPHIL) for a special feature on the induction of their officers for fiscal year 2023-2024. Racquel B. Ma\u00f1ago, president of BAIPHIL, commended BusinessWorld for its journalism and digital offerings.\n\u201cBusinessWorld can be relied upon to deliver meaningful, timely and relevant information. In our collaborations with them, the strong work ethic demonstrated by its members is commendable,\u201d she said.\n\u201cIn this increasing digital age, BusinessWorld\u2019s digital supplement is BAIPHIL\u2019s choice for our events and campaigns. We hope to continue engaging BusinessWorld with the use of its digital offerings. BAIPHIL wishes BusinessWorld continued success and looks forward to a stronger partnership in the coming years.\u201d\nMs. Sarmiento hopes BusinessWorld\u2019s influence and reputation can be leveraged not only for the company\u2019s benefit, but for the promotion of more community and sustainability-focused agendas moving forward.\nMr. Dy Tioco had previously noted BusinessWorld\u2019s role in the PhilStar Media Group\u2019s \u201cNakakalocal: Love Local, Grow Global\u201d advocacy program, which launched in 2022 to promote and encourage consumers to buy local and support local businesses, particularly small and medium enterprises (SMEs), that produce great products.\n\u201cOur newest advocacy is very well-received by brands. They see several areas of collaboration that we can do together. And the wonderful thing about those collaborations is that there\u2019s really a common goal. It\u2019s not just serving one brand or the other, but it\u2019s really about serving a common goal of trying to uplift the economy by helping our SMEs and inspiring people to really start their own business,\u201d Mr. Dy Tioco had said of the program.\nProject KaLIKHAsan, another of PhilStar Media Group\u2019s programs, meanwhile, aims to merge print, digital, and on-ground platforms to raise the cause of meaningful, concrete sustainability in industries and communities.\nIn the years ahead, BusinessWorld is positioned to continue its partnership with brands to effectively communicate their messages across its multimedia channels.\n\u201cAs the most trusted business paper in the country, advocacy projects like Project KaLIKHAsan and Nakakalocal will complement each other in terms of enhancing each other\u2019s images. BusinessWorld will be able to have more purpose to the business community as it focuses on sustainability and supporting local MSMEs,\u201d Ms. Sarmiento said.\n\u201cKaLIKHAsan and Nakakalocal will have more leverage as it aligns with the BusinessWorld brand of quality economic journalism and integrity.\u201d", "date_published": "2023-09-04T00:04:55+08:00", "date_modified": "2023-09-03T13:53:16+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/brands.jpg", "tags": [ "Bjorn Biel M. Beltran", "bw36", "Special Reports" ], "summary": "Having a reliable business partner is crucial in today\u2019s dynamic business environment. In this sense, BusinessWorld, as the most trusted business newspaper and multimedia company in the Philippines, offers much to partner brands and prospective advertisers." }, { "id": "https://www.bworldonline.com/?p=542959", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542959/a-publications-development-through-innovation/", "title": "A publication\u2019s development through innovation", "content_html": "By Chelsey Keith P. Ignacio, Special Features and Content Senior Writer
\nINNOVATING is a critical venture for businesses to take to develop along with the transforming market driven by the fast-paced emergence of digital developments. For BusinessWorld, innovating involves leveraging the digital space to give the business community more convenient access to economic and industry happenings from an award-winning source of credible business intelligence.
\nGrowing from a newspaper publisher to a multimedia brand, BusinessWorld continues to advance with the development of its digital innovations, which include the BWorldX, BusinessWorld In-Depth, and the soon-to-launch Top 1000 Premium to further the reach of its content to a wider audience, especially those in the online space.
\n\u201cAs the media landscape continues to evolve and most companies embark on digital transformation journeys, BusinessWorld also needs to adapt to be able to remain relevant and sustainable. While we value print as our core business, we believe that we also need to create a new community of readers in the digital space through these new digital platforms like BWorldX and Top 1000 Premium,\u201d BusinessWorld Sales and Marketing Director Jay R. Sarmiento said.
\n\u201cWith just a click of a button, more and more people can now have access to our multiplatform content offering, [and this] will provide a chance for brands and organizations to tap into our highly discerning audience,\u201d she added.
\nHaving an array of avenues to convey news, stories, and other information about different sectors and the economy, BusinessWorld innovated to come up with a one-stop shop for its entire multimedia products, from print to digital content as well as access to conferences.
\nLast year, the company ventured into the e-commerce space with the launch of its subscription-based digital platform BWorldX.
\n\u201cThe multimedia company has been able to expand its offerings because it fully understands that BusinessWorld\u2019s audience needs a constant stream of timely, truthful, and substantial information that will further grow and nurture their learning. And they need to get these easily wherever they choose to,\u201d BusinessWorld Executive Vice-President Lucien C. Dy Tioco said on the launch of BWorldX during the BusinessWorld Economic Forum last May.
\nBeing collated on the BWorldX are the multimedia brand\u2019s products including the print and e-paper versions of BusinessWorld; print and digital copies of the Top 1000 Corporations in the Philippines; the BusinessWorld In-Depth digital magazine; BusinessWorld Insights webinars; live access and videos from BusinessWorld One-on-One interviews and BusinessWorld Economic Forum; episodes of the BusinessWorld B-Side podcast; and access to BusinessWorld\u2019s Viber community through The Lounge.
\n\u201cAs we bring all these together, and add much more, into a single accessible space, BWorldX is more than your typical subscription-based website. We intend it to be the place you turn to whenever you need the business intelligence that BusinessWorld excellently provides,\u201d Mr. Dy Tioco said.
\nWhether one wants full access to BusinessWorld\u2019s multimedia content or a mere selection of products, BWorldX offers three plan options to subscribe to: Standard, Professional, and Premium.
\nSubscribers of the Premium plan get to have access to all of BusinessWorld\u2019s content product offerings, while Professional subscribers can also consume these products except for having live access and recordings from the Economic Forum and video of One-on-One interviews. Standard subscriptions provide BusinessWorld in physical and digital copies as well as a printed copy of the Top 1000. Watching live the One-on-One interviews and Insights online fora, as well as accessing BusinessWorld B-Side and The Lounge, are available for free.
\nBusinessWorld hopes for BWorldX to have more content and initiatives soon by working together with consulting and research firms as well as brands and companies.
\nJust like BWorldX, BusinessWorld is also developing another digital platform that is focused on the country\u2019s top 1,000 corporations.
\nBusinessWorld publishes the Top 1000 Corporations in the Philippines every year to present the best-performing corporations in the Philippines based on the latest financial information. With the upcoming Top 1000 Premium, subscribers will have an interactive and immersive digital platform comprising the Top 1000 data and information about the country\u2019s leading corporations.
\nApart from the information on the Top 1000 as well as print and online versions of stories from the publication, BusinessWorld created another digital space for special reports and more features. In 2020, the multimedia company launched this on-demand digital magazine, BusinessWorld In-Depth.
\nSo far, BusinessWorld has released 28 issues of In-Depth, among which are Quarterly Banking Reports prepared by BusinessWorld\u2019s Research Department. The magazine also released a special edition in November 2020, which featured the Top 200 Consolidated Corporations in the Philippines. In 2021, two In-Depth issues have gathered insights from the two BusinessWorld Virtual Economic Forum held that year, which dealt with the digital economy and a recovery roadmap for the Philippines.
\nIn-Depth has also provided an avenue for BusinessWorld\u2019s online readers to further delve into issues and developments in certain sectors. The digital magazine has covered stories on startups and MSMEs; the e-commerce industry; sustainability; and Web 3.0, among others.
\nFor the current year, In-Depth is rolling out a series of issues that would revolve around emerging cities in the country, kicking off with an issue centered on Cebu that was published back in late July.
\nAnd aside from being a way to tell more stories, In-Depth now also becomes a platform that puts the spotlight on other organizations, particularly to utilize the publication to highlight their milestones or anniversaries. This year, BusinessWorld has released two In-Depth issues for the Bankers Institute of the Philippines, Inc. (BAIPHIL) on their 32nd National Convention and the recent induction of its new officers.
\nWith the creation of the In-Depth digital magazine and the launch of digital platforms BWorldX, BusinessWorld has shown how the publication innovates to keep pace with the accelerated rise of digital transformation.
\n\u201cReaching greater business heights has always been made possible by the strength of BusinessWorld\u2019s digital platforms, aside from print being its backbone,\u201d said Adonis M. Toreno, former marketing and product development supervisor of BusinessWorld, who has been hands-on in the initial months of BWorldX.
\nSuch insights, trends, and information accessible on BusinessWorld\u2019s digital platforms, for Mr. Toreno, are \u201cessential in empowering the brand\u2019s readers and, in general, the business community to develop and prosper.\u201d
\nBusinessWorld will continue to develop these innovative platforms moving forward.
\n\u201cLooking to the future of BusinessWorld, we recognize that long-term survival is likely to involve stronger and deeper connection with online audiences, which is why we need to continue developing these digital platforms,\u201d Ms. Sarmiento said. \u201cAt the same time, we are keen on preserving the power of BusinessWorld print as it continues to provide high-quality and credible business journalism.\u201d
\n", "content_text": "By Chelsey Keith P. Ignacio, Special Features and Content Senior Writer\nINNOVATING is a critical venture for businesses to take to develop along with the transforming market driven by the fast-paced emergence of digital developments. For BusinessWorld, innovating involves leveraging the digital space to give the business community more convenient access to economic and industry happenings from an award-winning source of credible business intelligence.\nGrowing from a newspaper publisher to a multimedia brand, BusinessWorld continues to advance with the development of its digital innovations, which include the BWorldX, BusinessWorld In-Depth, and the soon-to-launch Top 1000 Premium to further the reach of its content to a wider audience, especially those in the online space.\n\u201cAs the media landscape continues to evolve and most companies embark on digital transformation journeys, BusinessWorld also needs to adapt to be able to remain relevant and sustainable. While we value print as our core business, we believe that we also need to create a new community of readers in the digital space through these new digital platforms like BWorldX and Top 1000 Premium,\u201d BusinessWorld Sales and Marketing Director Jay R. Sarmiento said.\n\u201cWith just a click of a button, more and more people can now have access to our multiplatform content offering, [and this] will provide a chance for brands and organizations to tap into our highly discerning audience,\u201d she added.\nHaving an array of avenues to convey news, stories, and other information about different sectors and the economy, BusinessWorld innovated to come up with a one-stop shop for its entire multimedia products, from print to digital content as well as access to conferences.\nLast year, the company ventured into the e-commerce space with the launch of its subscription-based digital platform BWorldX.\n\u201cThe multimedia company has been able to expand its offerings because it fully understands that BusinessWorld\u2019s audience needs a constant stream of timely, truthful, and substantial information that will further grow and nurture their learning. And they need to get these easily wherever they choose to,\u201d BusinessWorld Executive Vice-President Lucien C. Dy Tioco said on the launch of BWorldX during the BusinessWorld Economic Forum last May.\nBeing collated on the BWorldX are the multimedia brand\u2019s products including the print and e-paper versions of BusinessWorld; print and digital copies of the Top 1000 Corporations in the Philippines; the BusinessWorld In-Depth digital magazine; BusinessWorld Insights webinars; live access and videos from BusinessWorld One-on-One interviews and BusinessWorld Economic Forum; episodes of the BusinessWorld B-Side podcast; and access to BusinessWorld\u2019s Viber community through The Lounge.\n\u201cAs we bring all these together, and add much more, into a single accessible space, BWorldX is more than your typical subscription-based website. We intend it to be the place you turn to whenever you need the business intelligence that BusinessWorld excellently provides,\u201d Mr. Dy Tioco said.\nWhether one wants full access to BusinessWorld\u2019s multimedia content or a mere selection of products, BWorldX offers three plan options to subscribe to: Standard, Professional, and Premium.\nSubscribers of the Premium plan get to have access to all of BusinessWorld\u2019s content product offerings, while Professional subscribers can also consume these products except for having live access and recordings from the Economic Forum and video of One-on-One interviews. Standard subscriptions provide BusinessWorld in physical and digital copies as well as a printed copy of the Top 1000. Watching live the One-on-One interviews and Insights online fora, as well as accessing BusinessWorld B-Side and The Lounge, are available for free.\nBusinessWorld hopes for BWorldX to have more content and initiatives soon by working together with consulting and research firms as well as brands and companies.\nJust like BWorldX, BusinessWorld is also developing another digital platform that is focused on the country\u2019s top 1,000 corporations.\nBusinessWorld publishes the Top 1000 Corporations in the Philippines every year to present the best-performing corporations in the Philippines based on the latest financial information. With the upcoming Top 1000 Premium, subscribers will have an interactive and immersive digital platform comprising the Top 1000 data and information about the country\u2019s leading corporations.\nApart from the information on the Top 1000 as well as print and online versions of stories from the publication, BusinessWorld created another digital space for special reports and more features. In 2020, the multimedia company launched this on-demand digital magazine, BusinessWorld In-Depth.\nSo far, BusinessWorld has released 28 issues of In-Depth, among which are Quarterly Banking Reports prepared by BusinessWorld\u2019s Research Department. The magazine also released a special edition in November 2020, which featured the Top 200 Consolidated Corporations in the Philippines. In 2021, two In-Depth issues have gathered insights from the two BusinessWorld Virtual Economic Forum held that year, which dealt with the digital economy and a recovery roadmap for the Philippines.\nIn-Depth has also provided an avenue for BusinessWorld\u2019s online readers to further delve into issues and developments in certain sectors. The digital magazine has covered stories on startups and MSMEs; the e-commerce industry; sustainability; and Web 3.0, among others.\nFor the current year, In-Depth is rolling out a series of issues that would revolve around emerging cities in the country, kicking off with an issue centered on Cebu that was published back in late July.\nAnd aside from being a way to tell more stories, In-Depth now also becomes a platform that puts the spotlight on other organizations, particularly to utilize the publication to highlight their milestones or anniversaries. This year, BusinessWorld has released two In-Depth issues for the Bankers Institute of the Philippines, Inc. (BAIPHIL) on their 32nd National Convention and the recent induction of its new officers.\nWith the creation of the In-Depth digital magazine and the launch of digital platforms BWorldX, BusinessWorld has shown how the publication innovates to keep pace with the accelerated rise of digital transformation.\n\u201cReaching greater business heights has always been made possible by the strength of BusinessWorld\u2019s digital platforms, aside from print being its backbone,\u201d said Adonis M. Toreno, former marketing and product development supervisor of BusinessWorld, who has been hands-on in the initial months of BWorldX.\nSuch insights, trends, and information accessible on BusinessWorld\u2019s digital platforms, for Mr. Toreno, are \u201cessential in empowering the brand\u2019s readers and, in general, the business community to develop and prosper.\u201d\nBusinessWorld will continue to develop these innovative platforms moving forward.\n\u201cLooking to the future of BusinessWorld, we recognize that long-term survival is likely to involve stronger and deeper connection with online audiences, which is why we need to continue developing these digital platforms,\u201d Ms. Sarmiento said. \u201cAt the same time, we are keen on preserving the power of BusinessWorld print as it continues to provide high-quality and credible business journalism.\u201d", "date_published": "2023-09-04T00:03:01+08:00", "date_modified": "2023-09-03T13:43:52+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/SF_BWORLDX.jpg", "tags": [ "bw36", "Chelsey Keith P. Ignacio", "Special Reports" ], "summary": "INNOVATING is a critical venture for businesses to take to develop along with the transforming market driven by the fast-paced emergence of digital developments. For BusinessWorld, innovating involves leveraging the digital space to give the business community more convenient access to economic and industry happenings from an award-winning source of credible business intelligence." }, { "id": "https://www.bworldonline.com/?p=542958", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542958/making-a-name-in-multimedia-space/", "title": "Making a name in multimedia space", "content_html": "By Chelsey Keith P. Ignacio, Special Features and Content Senior Writer
\nIN AN ERA when most people go online to source information, media organizations now have a broader responsibility to publish accurate details across digital channels. And while ensuring the veracity of information online, the media also must have the ability to tell or explain stories in various forms to reach every kind of audience, whether they are readers, listeners, or those of the visual-oriented kind.
\nWhile widely known for being a business newspaper, BusinessWorld has begun to establish itself as a multimedia brand. It shares news, data, or insights on economic matters, markets, and the corporate world through articles published in print and online, infographics, videos, and podcast episodes while maintaining its presence on social media.
\nFor consistent quality and engagement throughout its range of media content, BusinessWorld\u2019s new Multimedia Editor Arjay L. Balinbin said that \u201ca collaborative effort among editors, graphic/video artists, reporters, layout artists, and the social media specialist is crucial.\u201d
\n\u201cOur foundation is ethical and responsible journalism,\u201d he further stressed.
\nBusinessWorld Online has been serving as the digital companion of the printed publication and a space for its other online articles. But in recent years, the website began to encompass BusinessWorld\u2019s multimedia content, which includes explainer videos and episodes from its B-Side podcast as well as multimedia reports and the newly-launched section Launchpad.
\nBusinessWorld\u2019s Launchpad section, created for micro, small, and medium-sized enterprises (MSMEs), consists of a story published in print and on the website every Wednesday, as well as videos. It has by far 24 videos shared on YouTube and other social media channels since the section\u2019s launch in May.
\nAmong the topics that Launchpad has explored were social e-commerce; harnessing technology for driving small hotels\u2019 growth; overcoming business challenges; dairy farming\u2019s potential; and starting a broiler chicken farm, among others.
\n\u201cLaunchpad covers a range of important topics including business advice, market trends, financing, and relevant government regulations,\u201d Mr. Balinbin said. \u201cThe project aims to be a valuable resource for entrepreneurs looking to stay updated about the MSME industry in the Philippines.\u201d
\nBusinessWorld has also initiated other multimedia reports on the website, which are made up of written content, images, and videos centered on a particular, significant issue.
\nLast year, the publication released a multimedia report on \u201cThe Promise of Power,\u201d which looked into the Bataan Nuclear Power Plant. It has also presented a report on the postal service challenges in the country, highlighting the Philippine Post Office. The report, titled \u201cLetters to the Mountains: A day in the life of a Cordillera mailman,\u201d was published this year.
\nExplainer videos are also produced and posted on BusinessWorld Online, which have so far expounded on topics including jeepney modernization; the issue in the West Philippine Sea; the prospect of Manila becoming a 15-minute city; HIV prevention pill; and ChatGPT, among others.
\nBusinessWorld\u2019s website has a dedicated section for its videos, including these explainers.
\nFor its audience who preferred listening to insights compared to watching videos or reading articles, BusinessWorld also creates podcast episodes on BusinessWorld B-Side.
\nBusinessWorld B-Side started out as a platform for expounding stories published in BusinessWorld, and later on it took deep dives into the most recent issues, trends, and ideas relevant to the business community. Launched in 2020, the podcast has premiered over 50 episodes.
\nIn 2021, BusinessWorld started expanding B-Side into 30-minute buyout podcast sessions, which included interviews with various industry experts.
\nSome of the topics recently covered on B-Side were about education in the era of artificial intelligence; the coffee industry; coconut farming, and press freedom in the Philippines, among many others.
\nThese media contents are being promoted through clips on BusinessWorld\u2019s social media platforms.
\n\u201cWe are observing a shift in the online audience\u2019s behavior. There\u2019s more interest in short content. This boosts views for our podcast teasers on platforms like YouTube and Facebook. But, more views don\u2019t mean more podcast listens. So, we are sharing more clips from our podcasts, explainers, and Launchpad on social media platforms to make the most of this trend,\u201d Mr. Balinbin said.
\nThe multimedia editor also mentioned that they stay attuned to the ever-changing landscape of media consumption. \u201cBy harnessing data analytics and engagement metrics, we gain insights into what resonates with our readers/viewers,\u201d he said.
\nAcross its social media channels, BusinessWorld has so far more than 190,000 followers on Facebook; 67,100 on X (formerly Twitter); 9,100 on Instagram, and 4,100 subscribers on YouTube. It has also built a community on Viber with The Lounge, which has over 1,400 members.
\n", "content_text": "By Chelsey Keith P. Ignacio, Special Features and Content Senior Writer\nIN AN ERA when most people go online to source information, media organizations now have a broader responsibility to publish accurate details across digital channels. And while ensuring the veracity of information online, the media also must have the ability to tell or explain stories in various forms to reach every kind of audience, whether they are readers, listeners, or those of the visual-oriented kind.\nWhile widely known for being a business newspaper, BusinessWorld has begun to establish itself as a multimedia brand. It shares news, data, or insights on economic matters, markets, and the corporate world through articles published in print and online, infographics, videos, and podcast episodes while maintaining its presence on social media.\nFor consistent quality and engagement throughout its range of media content, BusinessWorld\u2019s new Multimedia Editor Arjay L. Balinbin said that \u201ca collaborative effort among editors, graphic/video artists, reporters, layout artists, and the social media specialist is crucial.\u201d\n\u201cOur foundation is ethical and responsible journalism,\u201d he further stressed.\nBusinessWorld Online has been serving as the digital companion of the printed publication and a space for its other online articles. But in recent years, the website began to encompass BusinessWorld\u2019s multimedia content, which includes explainer videos and episodes from its B-Side podcast as well as multimedia reports and the newly-launched section Launchpad.\nBusinessWorld\u2019s Launchpad section, created for micro, small, and medium-sized enterprises (MSMEs), consists of a story published in print and on the website every Wednesday, as well as videos. It has by far 24 videos shared on YouTube and other social media channels since the section\u2019s launch in May.\nAmong the topics that Launchpad has explored were social e-commerce; harnessing technology for driving small hotels\u2019 growth; overcoming business challenges; dairy farming\u2019s potential; and starting a broiler chicken farm, among others.\n\u201cLaunchpad covers a range of important topics including business advice, market trends, financing, and relevant government regulations,\u201d Mr. Balinbin said. \u201cThe project aims to be a valuable resource for entrepreneurs looking to stay updated about the MSME industry in the Philippines.\u201d\nBusinessWorld has also initiated other multimedia reports on the website, which are made up of written content, images, and videos centered on a particular, significant issue.\nLast year, the publication released a multimedia report on \u201cThe Promise of Power,\u201d which looked into the Bataan Nuclear Power Plant. It has also presented a report on the postal service challenges in the country, highlighting the Philippine Post Office. The report, titled \u201cLetters to the Mountains: A day in the life of a Cordillera mailman,\u201d was published this year.\nExplainer videos are also produced and posted on BusinessWorld Online, which have so far expounded on topics including jeepney modernization; the issue in the West Philippine Sea; the prospect of Manila becoming a 15-minute city; HIV prevention pill; and ChatGPT, among others.\nBusinessWorld\u2019s website has a dedicated section for its videos, including these explainers.\nFor its audience who preferred listening to insights compared to watching videos or reading articles, BusinessWorld also creates podcast episodes on BusinessWorld B-Side.\nBusinessWorld B-Side started out as a platform for expounding stories published in BusinessWorld, and later on it took deep dives into the most recent issues, trends, and ideas relevant to the business community. Launched in 2020, the podcast has premiered over 50 episodes.\nIn 2021, BusinessWorld started expanding B-Side into 30-minute buyout podcast sessions, which included interviews with various industry experts.\nSome of the topics recently covered on B-Side were about education in the era of artificial intelligence; the coffee industry; coconut farming, and press freedom in the Philippines, among many others.\nThese media contents are being promoted through clips on BusinessWorld\u2019s social media platforms.\n\u201cWe are observing a shift in the online audience\u2019s behavior. There\u2019s more interest in short content. This boosts views for our podcast teasers on platforms like YouTube and Facebook. But, more views don\u2019t mean more podcast listens. So, we are sharing more clips from our podcasts, explainers, and Launchpad on social media platforms to make the most of this trend,\u201d Mr. Balinbin said.\nThe multimedia editor also mentioned that they stay attuned to the ever-changing landscape of media consumption. \u201cBy harnessing data analytics and engagement metrics, we gain insights into what resonates with our readers/viewers,\u201d he said.\nAcross its social media channels, BusinessWorld has so far more than 190,000 followers on Facebook; 67,100 on X (formerly Twitter); 9,100 on Instagram, and 4,100 subscribers on YouTube. It has also built a community on Viber with The Lounge, which has over 1,400 members.", "date_published": "2023-09-04T00:02:00+08:00", "date_modified": "2023-09-03T13:43:09+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/1_FB_WEB.jpg", "tags": [ "bw36", "Chelsey Keith P. Ignacio", "Lilybeth Tan-Ng", "Special Reports" ], "summary": "IN AN ERA when most people go online to source information, media organizations now have a broader responsibility to publish accurate details across digital channels. And while ensuring the veracity of information online, the media also must have the ability to tell or explain stories in various forms to reach every kind of audience, whether they are readers, listeners, or those of the visual-oriented kind." }, { "id": "https://www.bworldonline.com/?p=542939", "url": "https://www.bworldonline.com/special-reports/2023/09/04/542939/top-1000-corporations-in-the-philippines-capturing-the-big-picture-of-the-countrys-corporate-scene/", "title": "Top 1000 Corporations in the Philippines: Capturing the big picture of the country\u2019s corporate scene", "content_html": "By Angela Kiara S. Brillantes, Special Features and Content Writer
\nBUSINESSWORLD, the country\u2019s leading and most trusted business news source, consistently provides information on how the country\u2019s corporations and industries are performing, from the latest developments about their products, services, and initiatives to their gross revenues, net sales, and incomes.
\nA constant indicator of the latter is BusinessWorld Top 1000 Corporations in the Philippines, the brand\u2019s long-running annual publication that provides the latest financial information on the country\u2019s leading companies.
\n\u201cSince its first outing in 1969, back when Business Day (BusinessWorld\u2019s predecessor) published the Top 500, the magazine\u2019s methodology barely changed. We still mainly rank the Philippines\u2019 stock corporations by gross revenues. We also provide separate rankings for net sales and net income (or loss),\u201d Mark T. Amoguis, BusinessWorld\u2019s research head, said in an e-mail. \u201cBusinessWorld expanded the list when it released the Top 500 and the Next 500 in 1987. The magazine was finally rebranded to BusinessWorld Top 1000 Corporations in the Philippines in the 1996 edition.\u201d
\n\u201cBusinessWorld has been consistently providing its readers with unrivaled and trusted data for the country\u2019s largest corporations for almost 40 years. Its readers, which includes students, policy makers, as well as businessmen and women, have used the data from our annual publication for their own use,\u201d he added.
\nPart of what makes Top 1000 a reliable source that the Philippine business community awaits each year is the rigorous and thorough methodology the publication utilizes in every issue.
\nThe financial data used in the magazine, both for the parent companies and conglomerates, are gathered from stock corporations\u2019 audited financial statements (AFS) that were submitted to the Securities and Exchange Commission (SEC), the publicly listed companies\u2019 annual reports from the Philippine Stock Exchange (PSE), and the government-owned and -controlled stock corporations\u2019 AFS from the Commission on Audit.
\n\u201cBy comparing only parent companies, BusinessWorld provides an accurate picture of individual companies (or segmented units of a conglomerate) in the country. Comparing parent or standalone companies and conglomerates side by side in one single ranking may result in double-counting, or worse: a distorted comparison between apples and a truckload of apples and oranges,\u201d Mr. Amoguis previously said.
\nThe methodology and computation were validated and verified by the country\u2019s leading auditing firms, making the data ten times more trusted and more reliable.
\nSince 2021, despite the strong battle against the pandemic, the global economy has seen the light as it recovers. The 2022 edition of Top 1000 demonstrated how the corporate sector has been consistently bouncing back to recovery.
\nFor instance, as BusinessWorld reported earlier this year, the top 1,000 corporations are found to have hit a total of P13.44 trillion of combined gross revenues, increasing by 17.5% from the P11.44 trillion posted during the height of the pandemic in 2020. This was the fastest gross revenue growth since 2001, which was recorded at 24.4%.
\n\u201cAfter the decline suffered by many companies at the height of the lockdowns imposed to contain the coronavirus pandemic in the country, the 2022 edition \u2014 which used the 2021 financial statements \u2014 saw these firms slowly bouncing back (both in terms of sales and profits) as the movement restrictions were eased,\u201d Mr. Amoguis said.
\nThe most recent edition of Top 1000 also noted the surge in the combined net income of the top corporations at 121.5% \u2014 from P820.7 billion in 2020 to P1.82 trillion in that year. This was the biggest profit growth since 2005, which was recorded at 160.3%.
\nMoreover, the latest Top 1000 ranks Manila Electric Co. (Meralco) as the Philippines\u2019 top corporation with the highest gross revenue, having tallied P292.09 billion, increasing by 9.8% since 2020.
\nSecond in ranking is Petron Corp., with a gross revenue rise of 34.3% to P240.94 billion; while Pilipinas Shell Petroleum Corp. (PSPC), climbed to three spots to third place with its 13.4% increase in revenue to P179.18 billion.
\nCompleting the top 10 corporations were BDO Unibank, Inc.; PMFTC, Inc.; Mercury Drug Corp.; Globe Telecom, Inc.; Toshiba Information Equipment (Philippines), Inc.; Philippine Associated Smelting and Refining Corp.; and Nestl\u00e9 Philippines, Inc.
\nIn addition to the main top 1,000 list, the publication also provides a separate ranking of the top 200 consolidated corporations. In this list, San Miguel Corp. (SMC) and its subsidiaries rank first with a total of P983.75 billion in gross revenue, increasing up to 27.2% in the previous year. The largest shareholder of SMC, Top Frontier Investment Holdings, Inc., came in second, increasing to 26.9% with gross revenue of P982.69 billion. Taking third place is Petron and its subsidiaries, with a 51.8% year-on-year increase, totaling P440.66 billion in revenue.
\nCompleting this particular list were SM Investments Corp. and subsidiaries, Meralco and subsidiaries, San Miguel Food and Beverage, Inc. and subsidiaries, Ayala Corp. and subsidiaries, Aboitiz Equity Ventures, Inc. and subsidiaries, JG Summit Holdings, Inc. and subsidiaries, and BDO Unibank and subsidiaries.
\nWith the most recent edition having painted a picture of the Philippine economy\u2019s gradual bounce back from the pandemic, the upcoming Top 1000 issue for 2023 is seen to continue the narrative of regaining from the losses of previous years.
\n\u201cAs we start the production for the 2023 edition of the Top 1000, we can expect that Philippines, Inc. to further regain their footing lost during the pandemic. Stay tuned,\u201d Mr. Amoguis said.
\n", "content_text": "By Angela Kiara S. Brillantes, Special Features and Content Writer\nBUSINESSWORLD, the country\u2019s leading and most trusted business news source, consistently provides information on how the country\u2019s corporations and industries are performing, from the latest developments about their products, services, and initiatives to their gross revenues, net sales, and incomes.\nA constant indicator of the latter is BusinessWorld Top 1000 Corporations in the Philippines, the brand\u2019s long-running annual publication that provides the latest financial information on the country\u2019s leading companies.\n\u201cSince its first outing in 1969, back when Business Day (BusinessWorld\u2019s predecessor) published the Top 500, the magazine\u2019s methodology barely changed. We still mainly rank the Philippines\u2019 stock corporations by gross revenues. We also provide separate rankings for net sales and net income (or loss),\u201d Mark T. Amoguis, BusinessWorld\u2019s research head, said in an e-mail. \u201cBusinessWorld expanded the list when it released the Top 500 and the Next 500 in 1987. The magazine was finally rebranded to BusinessWorld Top 1000 Corporations in the Philippines in the 1996 edition.\u201d\n\u201cBusinessWorld has been consistently providing its readers with unrivaled and trusted data for the country\u2019s largest corporations for almost 40 years. Its readers, which includes students, policy makers, as well as businessmen and women, have used the data from our annual publication for their own use,\u201d he added.\nPart of what makes Top 1000 a reliable source that the Philippine business community awaits each year is the rigorous and thorough methodology the publication utilizes in every issue.\nThe financial data used in the magazine, both for the parent companies and conglomerates, are gathered from stock corporations\u2019 audited financial statements (AFS) that were submitted to the Securities and Exchange Commission (SEC), the publicly listed companies\u2019 annual reports from the Philippine Stock Exchange (PSE), and the government-owned and -controlled stock corporations\u2019 AFS from the Commission on Audit.\n\u201cBy comparing only parent companies, BusinessWorld provides an accurate picture of individual companies (or segmented units of a conglomerate) in the country. Comparing parent or standalone companies and conglomerates side by side in one single ranking may result in double-counting, or worse: a distorted comparison between apples and a truckload of apples and oranges,\u201d Mr. Amoguis previously said.\nThe methodology and computation were validated and verified by the country\u2019s leading auditing firms, making the data ten times more trusted and more reliable.\nSince 2021, despite the strong battle against the pandemic, the global economy has seen the light as it recovers. The 2022 edition of Top 1000 demonstrated how the corporate sector has been consistently bouncing back to recovery.\nFor instance, as BusinessWorld reported earlier this year, the top 1,000 corporations are found to have hit a total of P13.44 trillion of combined gross revenues, increasing by 17.5% from the P11.44 trillion posted during the height of the pandemic in 2020. This was the fastest gross revenue growth since 2001, which was recorded at 24.4%.\n\u201cAfter the decline suffered by many companies at the height of the lockdowns imposed to contain the coronavirus pandemic in the country, the 2022 edition \u2014 which used the 2021 financial statements \u2014 saw these firms slowly bouncing back (both in terms of sales and profits) as the movement restrictions were eased,\u201d Mr. Amoguis said.\nThe most recent edition of Top 1000 also noted the surge in the combined net income of the top corporations at 121.5% \u2014 from P820.7 billion in 2020 to P1.82 trillion in that year. This was the biggest profit growth since 2005, which was recorded at 160.3%.\nMoreover, the latest Top 1000 ranks Manila Electric Co. (Meralco) as the Philippines\u2019 top corporation with the highest gross revenue, having tallied P292.09 billion, increasing by 9.8% since 2020.\nSecond in ranking is Petron Corp., with a gross revenue rise of 34.3% to P240.94 billion; while Pilipinas Shell Petroleum Corp. (PSPC), climbed to three spots to third place with its 13.4% increase in revenue to P179.18 billion.\nCompleting the top 10 corporations were BDO Unibank, Inc.; PMFTC, Inc.; Mercury Drug Corp.; Globe Telecom, Inc.; Toshiba Information Equipment (Philippines), Inc.; Philippine Associated Smelting and Refining Corp.; and Nestl\u00e9 Philippines, Inc.\nIn addition to the main top 1,000 list, the publication also provides a separate ranking of the top 200 consolidated corporations. In this list, San Miguel Corp. (SMC) and its subsidiaries rank first with a total of P983.75 billion in gross revenue, increasing up to 27.2% in the previous year. The largest shareholder of SMC, Top Frontier Investment Holdings, Inc., came in second, increasing to 26.9% with gross revenue of P982.69 billion. Taking third place is Petron and its subsidiaries, with a 51.8% year-on-year increase, totaling P440.66 billion in revenue.\nCompleting this particular list were SM Investments Corp. and subsidiaries, Meralco and subsidiaries, San Miguel Food and Beverage, Inc. and subsidiaries, Ayala Corp. and subsidiaries, Aboitiz Equity Ventures, Inc. and subsidiaries, JG Summit Holdings, Inc. and subsidiaries, and BDO Unibank and subsidiaries.\nWith the most recent edition having painted a picture of the Philippine economy\u2019s gradual bounce back from the pandemic, the upcoming Top 1000 issue for 2023 is seen to continue the narrative of regaining from the losses of previous years.\n\u201cAs we start the production for the 2023 edition of the Top 1000, we can expect that Philippines, Inc. to further regain their footing lost during the pandemic. Stay tuned,\u201d Mr. Amoguis said.", "date_published": "2023-09-04T00:01:50+08:00", "date_modified": "2023-09-04T14:01:31+08:00", "authors": [ { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" } ], "author": { "name": "BusinessWorld", "url": "https://www.bworldonline.com/author/cedadiantityclea/", "avatar": "https://secure.gravatar.com/avatar/eda8ffc51ac7ec8b231b61b4c6a0d14e?s=512&d=mm&r=g" }, "image": "https://www.bworldonline.com/wp-content/uploads/2023/09/TOP-1000.jpg", "tags": [ "Angela Kiara S. Brillantes", "bw36", "Claire Cain Miller", "Courtney Cox", "Special Reports" ], "summary": "BUSINESSWORLD, the country\u2019s leading and most trusted business news source, consistently provides information on how the country\u2019s corporations and industries are performing, from the latest developments about their products, services, and initiatives to their gross revenues, net sales, and incomes." } ] }![\"\"](\"https://www.bworldonline.com/wp-content/uploads/2023/09/S4.1-8-2023-AR-09.04-FINAL-chart1.jpg\")
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