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Judge in decade-old massacre case praised for job well done

Chief Justice Diosdado M. Peralta — WIKIPEDIA.ORG

THE judge who heard a decade-old case involving the massacre of more than 50 people in Maguindanao province in the nation’s south has done a good job by giving all parties the chance to argue their case, Chief Justice Diosdado M. Peralta said on Monday.

“She has been doing her job very well,” Mr. Peralta told reporters, referring to Quezon City Judge Jocelyn A. Solis-Reyes, who is set to promulgate her ruling on the multiple murder case on Dec. 19.

“I think she gave especially the accused the required due process under the Constitution,” the chief magistrate said. “We have exhausted all the trial days in order to defend themselves, she has nothing to fear.”

Mr. Peralta said the judge, a former student, “has been performing very well.” He noted that Ms. Reyes is an avid reader who consulted her peers when she encountered problems during the trial.

Ms. Reyes will be given security when needed, although she has not sought it yet, the chief justice said.

The court was supposed to rule on the case before the 10th year anniversary of the massacre on Nov. 23 but it asked the high court to give it more time due to “voluminous records.”

The ambush took place when family members, supporters, and members of the media were accompanying Esmael G. Mangudadatu, who was then running for governor of the Autonomous Region in Muslim Mindanao, for the filing of his certificate of candidacy.

New York-based Committee to Protect Journalists said the Maguindanao massacre is the “worst single incident of journalist killing” in its records.

Several media earlier asked the Supreme Court to allow the Dec. 19 promulgation to be broadcast live.

In a letter, the groups said the live coverage and streaming would benefit the families of the 58 victims, 32 of whom were journalists.

Most of the victims live in the Mindanao region and do not have the means to go to Manila where the decision will be announced, according to a copy of the letter.

The letter was signed by the National Union of Journalists of the Philippines, Center for Media Freedom and Responsibility and Philippine Center for Investigative Journalism.

They also said the massacre trial has only been followed by the families mostly through reports and broadcasts.

The live coverage wont prejudice the rights of the accused, the groups said.

It would also allow the public to hear the ruling of the lower court, boosting “the public’s trust on transparency and accountability of court processes, particularly in how fair and just the case has been decided.”

Editors and officers and other journalists from several media networks, publications, signed the letter in support.

Those who signed were MindaNews, Philippine Press Institute, Foreign Correspondents Association of the Philippines, Philippine Daily Inquirer, Mindanao Times, Philippine Star and Interaksyon, Vera Files, ABS-CBN, Mindanao Gold Star Daily/GMA News 7 Network Cagayan de Oro, News5, Rappler, Notre Dame Broadcasting Corp., Radyo ni Juan Network and The Mindanao Cross. — Vann Marlo M. Villegas

Pasig River ferry back in operation, free rides until Jan. 31

THE PASIG River Ferry Services is back in operation, providing an alternative mode of transport between the cities of Pasig and Manila. Trips on the ferry will be for free, on a first come-first served basis, until January 31, according to Metropolitan Manila Development Authority (MMDA) Chair Danilo D. Lim. “Expect better services with additional safe and speedy boats, rehabilitated ferry stations and additional personnel,” Mr. Lim said in a statement after the relaunching ceremony on Monday in partnership with the Department of Transportation. The ferry service, managed by the MMDA, will have seven different-sized boats that can accommodate a maximum of 16, 36, and 57 passengers. Transportation Secretary Arthur P. Tugade, in a statement, said the revival of the water transport service improves the people’s “mobility at (and) connectivity,” and most importantly, helps decongest Metro Manila’s roads.

GOOD START
The ceremony was also attended by Environment Secretary Roy A. Cimatu, Manila Mayor Francisco “Isko Moreno” Domagoso, and Victor “Vico” N. Sotto. The Pasig City government owns two of the 57-seater boats that will be part of the fleet. Mr. Sotto, in a post on his official Facebook page, said: “Ang trapik at kakulangan sa mobilidad ay mabibigyan lang ng solusyon kung nagtutulungan ang mga lokal na pamahalaan sa mga nasyonal na ahensiya. Magandang simula ito (Traffic and lack of mobility can only be solved if local governments and national agencies work together. This is a good start).” The government also launched last Sunday a ferry service between Cavite and Metro Manila. It will operate to and from the Metrostar Ferry Terminal in Cavite City to the Cultural Center of the Philippines (CCP) Port in Pasay City. Another route will be operated from the Metrostar Ferry Terminal to Lawton (Liwasang Bonifacio) in Manila and vice versa. — Arjay L. Balinbin

Visayan Electric vows to cover unserved areas by 2020

VISAYAN ELECTRIC Company, Inc. targets to bring electricity to all unserved communities in its franchise area by the end of 2020. Visayan Electric President Jaime Jose Y. Aboitiz, at the recent media appreciation party in Cebu City hosted by Aboitiz Group, said this commitment is aligned with the Department of Energy’s goal of total electrification by 2022. He said they are ahead of the government’s schedule as their target areas are already 42% covered. Mr. Aboitiz also said that they have upgraded and interconnected more substations, installed additional capacity, and continue to strengthen the reliability of its network to support growing demand. For its underground distribution system project in Cebu City, he said they are almost done with phase 3 covering Imus Avenue, from Sikatuna to General Maxilom. “We will continue to build underground systems in the city,” Mr. Aboitiz said. Visayan Electric, part of the Aboitiz Power Group, is the country’s second biggest distribution firm. It serves over 447,000 consumers as of Oct. 2019 in the cities of Cebu, Mandaue, Talisay and Naga, and the municipalities of Liloan, Consolacion, Minglanillla and San Fernando. — The Freeman

Davao de Oro gets ‘yes’ vote

“WE ARE Davao de Oro” reads the new profile picture on the official social media page of what used to be Compostela Valley province.

Residents of Davao de Oro — the second richest province in the country in terms of assets with about P19 billion based on the Commission on Audit’s 2018 financial report released in October — voted an overwhelming “yes” during the Dec. 7 plebiscite for Republic Act No. 11297, the law renaming the province.

The official tally shows 174,442 votes in favor against only 5,020 saying ‘no’.

Governor Jayvee Tyron L. Uy earlier expressed confidence that the people will ratify the name change, which he said will give them a better identity as part of the Davao Region in Mindanao. The other provinces in the region are Davao Oriental, Davao Occidental, Davao del Norte, and Davao del Sur, while Davao City is an independent local government.

Nonetheless, the provincial government actively held an information campaign in the past months to explain the benefits as well as allay concerns such as the effects on legal documents bearing the old name.

“Majority support this, we believe the plebiscite will just be a formality,” Mr. Uy said.

Last September, the 34-year old governor, on his second term after serving for three years as provincial board member, sat down for an interview with BusinessWorld at the new Dusit Thani at Lubi Plantation Resort, an upscale destination that is a first for the province, where the economy is driven mainly by agriculture and mining.

He describes the investment as a “trendsetter” for the province that comes at an opportune time as they make the name shift, a rebranding initiative to attract investors and tourists.

BusinessWorld: You now have a luxury island destination in Compostela Valley, what does this mean for the province?

Gov. Uy: It will bring economic growth, especially here in the municipality of Mabini. The employees here are mostly from Mabini, and some other parts of the province, so it creates employment, opportunities, and at the same time promoting tourism, which we are aiming for, to make Compostela Valley a rising tourism hub.

BW: How ready is the province to take that position in the tourism sector?

Uy: For one, we are focusing on our peace and development efforts because we know that we cannot invite tourists and investors if we cannot preserve peace and order. Compostela Valley was known to be a hotbed of insurgency before, now it is improving fast… In fact, even before (President Rodrigo R. Duterte’s December 2018) Executive Order 70, the whole-of-nation approach (against insurgency), we have been doing that in the province. Actually, they patterned EO 70 from our experiences, from our Oplan Pagbabago. We had an influx of ‘surrenderees’ for the last three years. It was a joint peace and development efforts on the ground. This (Dusit Thani in Lubi Plantation), they would not have invested here if magulo tayo dito (we do not have peace and order here).”

BW: What other tourism-related programs are you undertaking?

Uy: Our infrastructure, we have built roads leading to tourism sites, our waterfalls in Maragusan and Maco, these are very accessible na, all have paved roads.”

BW: What about mining, how is the clean-up of the Naboc River with the Department of Environment and Natural Resources (DENR)?

Uy: The drafting of the masterplan (for the rehabilitation) is ongoing. Since our province has a lot of mining areas, but the most popular is Diwalwal, where the biggest tributary is the Naboc River, that’s why doon namin sinimulan (we started there). But we intend to do it all over the province… with the DENR. Nine out of our 11 municipalities are gold-rich and there are miners, small-scale miners under the Minahan ng Bayan (program). Diwalwal, that was one of the first, that started in the 1980s, so that is our lesson learned… We do not want to take away the livelihood, but we really need to regulate… we have to teach our miners to innovate, use processes that are safe, especially for the miners and the environment.

BW: At your age, you could be considered part of this new wave of young politicians who are leading local government units. What made you go into politics? And you are among those actively using social media as a tool for governance, what is the reason behind this?

Uy: Actually, mas mahina ang (we have less) viewers of the Website than our Facebook page for promoting activities, projects, and programs. That is why we tap social media. We have a team handling social media. I ran as (provincial board member) last 2013 because I wanted to be the committee chair on education so I can make an impact on that. Then I ran for governor (in 2016) at na-swertehan (I got lucky).

BW: Do you really think it was “luck” that won you the election? What do you think you have brought into the political scene that made people vote for you?

Uy: I think we (the young politicians) bring new ideas, creativity in the management of local governments. We are open-minded, we grew up in the social media age, the digital age, so we are more resourceful and we appreciate new technologies that we can take advantage of to deliver services. Also, the voting population, I think they are younger and they prefer fresh faces in politics.

BW: You think social media is contributing in terms of improving transparency and not just for promotion?

Uy: Yes, that is correct. That (social media) gives us pressure. Mabilis makita ng mga tao and mga kakulangan ng (People now more easily see the shortcomings of) government, so we have to respond faster, better. Before, marinig mo lang sa radyo (you only hear the complaints over the radio), now it’s actual, picturan ng isang netizen ang project mo na ‘di natapos or a dirty hospital (a netizen can take a photo of your unfinished project or a dirty government hospital), then we have to respond faster. — Marifi S. Jara

Adopt-a-home program for Cotabato earthquake victims get initial batch of sponsors

VARIOUS SPONSORS have committed to fund an initial 40 temporary shelters under the adopt-a-home program for families displaced by the October earthquakes in Cotabato. These will be built in the town of Tulunan, the epicenter of the strong tremors that shook Mindanao. Vice Governor Emmylou T. Mendoza, who initiated the program that has been made part of the Comprehensive Provincial Rebuilding Plan (CPRP), said the donors are the Integrated Bar of the Philippines-Davao Chapter for 20 units, a group from Siargao for 10, and Provincial Board Member Shirlyn Macasarte-Villanueva for another 10.

VOLUNTEERS
Ms. Mendoza said the sponsors will be buying the materials themselves to expedite the construction process and they are counting on labor assistance from volunteers for the construction. Members of the military, Department of Public Works and Highways, and church groups are among those that they are counting on to assist in building the simple houses. The temporary shelter design was made by military engineers, taking into consideration earthquake resistance and quick construction. “The group of IBP-Davao is just waiting for the bill of materials so they can already make the purchase and deliver here,” she said in an interview. Office of Civil Defense Regional Director Minda C. Morante said they will provide blankets and a water system for the temporary relocation area. The property was purchased by the Tulunan municipal government, and it is awaiting certification from the Mines and Geosciences Bureau and the Philippine Institute of Volcanology and Seismology as a safe area. Ms. Mendoza said they have already turned over five units to families in Barangay Magbok and they are targeting 100 for the town. “It is not easy to live in a tent,” Ms. Mendoza said in mixed English and Filipino, “here in the temporary shelters, their situation is more comfortable.” — Maya M. Padillo

New and old

An air conditioned modern jeepney, one of the first units that started operating this month, serves the ITGSI-Jaro-City Proper route in Iloilo City alongside old ones. Transport leader Rizal M. Alido said they are still waiting for the final Local Route Transport Plan of the city government to determine the additional number of units that will be deployed for that route, which is currently being served by up to 700 old jeepneys. The fare for the new jeepneys are about P3 higher than the old jeepney rates. Emelianita Mendonez, a 65-year old commuter from Badiangan, Iloilo, said in the local language: “Although, it’s a bit pricey compared to the other jeepneys, I am more than willing to pay for it because of the comfort that it can offer.” — Emme Rose S. Santiagudo

Nation at a Glance — (12/10/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (12/10/19)

Four things to keep in mind when managing your seed money

You nailed your investor pitch and pulled in enough funding to fuel your team of ten through the next year. Congratulations! Not many startups make it this far. But before you pop the champagne and celebrate, remember that with great funding comes great accountability.

You are now a steward of your investors’ money, tasked with ensuring that while your startup grows, their money grows along with it. Two startup founders share how they manage their money to make sure their businesses soar.

1. Invest in establishing a robust sales process– and make sure that you know it front to back.

Startups are more than just innovative solutions to real world problems. Supporting that solution needs to be a sustainable business model. And core to that model is a robust sales process.

“We have to think about the sales process… from lead generation, to distribution, to deployments, billing and collection, all through hypercare,” said Chino Atilano, founder and CEO of TimeFree Innovations, a virtual queuing solutions platform.

“If you’re a B2B startup, most of the time, you have to deal with a long sales cycle. So if you don’t know your sales process in and out, you’ll be surprised with a lot of things… you need to think about cash flow.”

2. Figure out your corporate governance structure to monitor expenditures and avoid leaks.

Another thing that most startups don’t consider is their corporate governance structure, which is the set of rules, practices, and processes by which your business operates. One of its benefits is that you’re able to effectively audit your finances, which can speak volumes about your startup’s integrity and reliability.

“As your company grows, your revenue grows. So if it’s in the eight figures, it’s quite difficult to keep track of the expenditures,” said Atilano. “If you don’t have a framework, it’s easy to lose money. A thousand pesos here and there can add up.”

A clear corporate governance structure also establishes transparency in your operations. That way, you ensure everything is on the up and up.

“Your CFO might have full control of the financial side and there’s no transparency there,” Atilano said. “That’s a big red flag, especially if you’re seeking investments.”

3. Monitor your return on net assets (RONA).

Ask yourself: for every peso that I’m putting into this project, how much am I getting back in return?

“Even if you’re not seeking investments, [RONA is] also important, because it will guide you on which investments you’re going to make,” said Atilano. “If you’re facing two opportunities, you have to make sure that you choose the right one… meaning if you invest a million pesos here, it should return more than the other opportunity.”

4. Running after investments too much might be a waste of your time.

Fundraising is an endless slog of pitching your deck, revising it, and pitching it again. This doesn’t seem so bad after the first or second attempt. But when it’s been the nth time and it hasn’t borne any fruit, you have to ask, “Is this still worth it?”

“At some point, I decided that it was a big waste of time,” said Au Soriano, co-founder and CEO of online bus booking platform PinoyTravel. “It takes me days to prepare, and then when I go out for a pitch, at the end of the day, the big question is, ‘How much profit are you making now?’ [So I thought,] ‘How can I make a profit if I’m here talking to you?’”

If this resonates with you, then it might be time to focus your efforts elsewhere. Review your business model and see if you can pinpoint any opportunities to increase your profits. It might take a bit more time than expected, but ultimately, it could be more lucrative to your startup in the long run.

Whether you nailed your seed round or mustered up the capital to bootstrap your way to profitability, your efforts as a startup founder need to be backed up by some fiscal responsibility in order to ensure growth.

Feel free to pop the cork on that champagne now. Just be sure to log it in your expenses.

PCPPI sends water to earthquake victims in Mindanao

A disaster recovery effort that aims to create resilient and sustainable communities, Pepsi Cola Products Philippines Inc. (PCPPI) continues to assist earthquake-stricken areas in Mindanao.

As part of its initial efforts, PPCPI Davao has already sent 800 cases of mineral water and 800 carboys with tap water last November 5 to helpuplift communities in the area.  On the other hand, PCPPI Cagayan De Oro in partnership with Rotary Club of CDO also sent a total of 380 cases of mineral water.

Today, PCPPI sent an additional 856 pairs of mosquito nets and blankets, 2 truckloads of drinking water, and 600carboys with tap water for the 14,000 evacuees at Makilala Evacuation Center in coordination with the LGU of Makilala.

“Some of our people in Pepsi Davao were also badly hit, but we remain committed to provide immediate aid to our communities,” said YongSang You, PCPPI Chief Executive Officer.“This proves that Pepsi Philippines believes that all corporations in the world have an immense moral obligation to tend to our communities, especially after surviving devastating disasters,” You added.

It can be recalled that an earthquake with a 6.5 magnitude rocked Central and Eastern Mindanao in November that killed at least 14 people and injured more than 400 others, according to the National Disaster Risk Reduction and Management Council (NDRRMC). The earthquake also destroyed millions worth of infrastructure and property, and displaced more than 12,000 people.

“Relief efforts are never an easy task and are expected to be a long-term initiative, so we aim to contribute as much as we can by working with trusted organizations on ground that actively help those who have been affected. Through these donations, we hope to provide basic resources to affected families and individuals. For us, there are no small efforts when you help people and communities rebuild their lives,” You concluded.

Pepsi Philippines, for many years, has been a key partner of communities in Davao and other parts of Mindanao. Together with its partners, it aims to uplift communities through its inclusive growth and water stewardship programs.  Last year, the company provided sustainable water solutions through 17 water tanks for the temporary shelters in Marawi City through its Water for Peace in Marawi Project.

35 Innovative Products, Services and Organizations Honoured International Innovation Awards 2019 in Singapore

Enterprise Asia announced the winners of the International Innovation Awards 2019 in Singapore. Thirty five products, services and organizations are named as award winners from over 160 submissions.

Among the notable recipients of the InnoCube are AIA Malaysia, Taiwan’s HIWIN Technologies Corp., Singapore’s Olam International Ltd., Philippines’ Unilever, Indonesia’s PT MRT Jakarta, and United Arab Emirates’ Roads and Transport Authority.

“There are not conventional ‘innovations’. When we set out to identify winners of the IIA, our goal is to present a broad spectrum of innovations that could spur greater innovation in the recipients’ respective countries and industries. Just as innovation itself is continuously self-redefining, the awards are meant to promote continuity in innovation”, said Dato’ William Ng, president of Enterprise Asia.

“Innovation is moving faster than at any other point in history. Organizations cannot afford to rely on current practices and hope that they will work in the future. Organizations that fail to innovate are setting themselves up for failure”, Ng added.

“The award recipients also receive the InnoMark, the global certification for innovation. The InnoMark, like the International Innovation Awards, adopts our proprietary 8-Dimension of Innovation – which includes areas such as defendability and enforceability, impact and measurability as well as ideation and creativity. This will not only help define the best practice in innovation but provide a platform through which companies could showcase the results of their innovation”, shared Ng.

Organized annually by Enterprise Asia, the International Innovation Awards is among the most coveted global awards for innovation, and aims to recognize best innovations in the categories of Product, Service & Solution, and Organization & Culture. This year’s judging panel include Martin Daffner, founder of Innobrix, Professor Nadia Thalmann of Nanyang Technological University, Professor Natcha Thawesaengskulthai of Chulalongkorn University, Makoto Shibata of FINOLAB, The FinTech Center of Tokyo and Anna Simpson of Flux Compass.

“These are the trailblazers of our world. Beyond the obvious commercial value, these innovations are what would power the world forward, individually and collectively. I hope that more companies and organizations would realize that constant innovation is not a luxury, but necessity”, says Ng.

The International Innovation Awards 2019 is supported by Singapore Tourism Board through Singapore Exhibition & Convention Bureau, Eastern European Chamber of Commerce (Singapore), The Coordinating Secretariat for Science, Technology and Innovation (COSTI) under the Ministry of Science, Technology and Research, Sri Lanka, Malaysian Investment Development Authority (MIDA), Ministry of Energy, Science, Technology, Environment & Climate Change (MESTECC), Malaysia, Malaysian Global Innovation & Creativity Centre (MaGIC), National Institute of Entrepreneurship and Innovation (NIEI), Royal of Cambodia, Singapore Malay Chamber of Commerce & Industry (SMCCI) and Singapore-Thai Chamber of Commerce; Singapore Airlines as official airlines; Resorts World Sentosa as official venue partner; PR Newswire as news release distribution partner; and BusinessWorld, Commercial Times, Kumparan, SME Magazine, Techsauce, The Nation and Tuoi Tre News as the official media partners.

RECIPIENT LIST OF THE INTERNATIONAL INNOVATION AWARDS 2019

PRODUCT CATEGORY

WINNING INNOVATION COMPANY COUNTRY
A-Plus Health Plan AIA Bhd Malaysia
AIYARA CASHEWY Aiyara Planet Co., Ltd. Thailand
FRACTAL SHADE Fractal-Thailand Co., Ltd. Thailand
Stem Cell Drug for Chronic Stroke – GXNPC1 Gwo Xi Stem Cell Applied Technology Co., Ltd. Taiwan
HIWIN Robotic Gait Training System HIWIN Technologies Corp. Taiwan
Mommylicious Juice – Super Huaplee Plus Mommylicious 24 Co., Ltd. Thailand
La Vita Vital Bright Facial Serum Nature Idea Co., Ltd. Thailand
SafetoSleep200 Ospicon Systems Pte Ltd Singapore
AlphaBITS Next Generation PT Sigma Cipta Caraka(Telkomsigma) Indonesia
Red Dot Driving A.I. Red Dot Robotics Pte. Ltd. Singapore
In-wash Khroma Roca Malaysia Sdn Bhd Malaysia
Daebak Ghost Pepper Instant Noodles Shinsegae Mamee Sdn Bhd Malaysia
No Antibiotics Ever and Herb Fed Chicken Sun Group (Thailand) Co., Ltd. Thailand
D’. Palais Louis Tan Hoang Minh Group Vietnam
All Things Hair Refillery Unilever Philippines Philippines
Nutroxsun Verena International Co., Ltd. Thailand

 

SERVICE & SOLUTION CATEGORY

WINNING INNOVATION COMPANY COUNTRY
[24]7.ai Quality and Customer Experience Model 24/7 Customer Philippines, Inc. Philippines
BDMS Emergency Services (BES) Bangkok Dusit Medical Services PCL. Thailand
Beyond Great Service Systems Beyond Laboratory Co., Ltd. Thailand
ART™ – AXILE® Smart Monitoring System – Adapting to i4.0 Machine Tool Buffalo Machinery Co., Ltd Taiwan
BELLA MARIE FRANCE – IQGenes Global Beauty International Pte Ltd Singapore
Innovating Investing iGlobe Partners Singapore
KBZPay KBZ Bank Myanmar
AAM (Antenna Alignment & Monitoring) Solution LITE-ON Technology Corp. Taiwan
Chlorine Next Metropolitan Waterworks Authority (Thailand) Thailand
Bangsaen21 Face Search Technology MICE & Communication Co., Ltd. Thailand
Olam Direct Olam International Ltd. Singapore
MyTown Co-Living Philippines Urban Living Solutions Inc. Philippines
Platform Screen Door System PT MRT Jakarta Indonesia
Cement Energy Environment Protection 3 in 1 Circular Economy Combo Taiwan Cement Corporation Taiwan
Pilot2Scale with Explorium Hong Kong The Fung Academy Limited Hong Kong
Trax’s Image Recognition Technology Trax Technology Solutions Pte Ltd Singapore
THONGMA Gold Saving by ZARINA Zarina Group Public Company Limited Thailand

 

ORGANIZATION & CULTURE CATEGORY

WINNING INNOVATION COMPANY COUNTRY
C asean Thai Beverage Public Company Limited Thailand
RTA Innovation Culture Framework Roads & Transport Authority United Arab Emirates

 

For more information on the International Innovation Awards 2019, please visit www.innovationaward.org

Facts, figures, and opportunities in the Southeast Asian digital economy

Southeast Asia (SEA) has long been recognized as a global growth hub for internet services. From 260 million users in 2015, 100 million more joined in just the span of four years. These aren’t just your casual users, either. Four out of 10 countries who spent the most time online came from the region, not going below a daily average of eight hours.

As this engagement on the Internet continues to grow, so do the economic opportunities that it brings along. In this year alone, SEA’s Internet economy hit US$100 billion. By 2025, it’s projected to be worth $300 billion.

But what sectors are taking up the biggest space, and what kind of plays are they doing? More importantly, what opportunities can businesses seize now in order to grow? Google, along with Temasek and Bain & Company, delve deeper into SEA’s digital economy.

E-commerce and ride-hailing

Google’s report divides the digital economy across five sectors: e-commerce, ride-hailing, financial services, online media, and online travel. Of these, e-commerce is the largest and fastest-growing sector. It’s already worth around $38 billion this year with 49 million active users, but is estimated to balloon to $153 billion with 150 million active users by 2025.

There are several drivers for this incredible growth, one of which is the massively-popular online shopping festival. During the last Singles Day, Lazada received three million orders from SEA, all within the first hour. In the Philippines, a single shopper bought P1.2 million worth of products during this festival.

Other drivers include “shoppertainment” (from livestream concerts to in-app games with points exchangeable for vouchers) and increasing offerings of next-day delivery.

Another sector that’s been growing immensely is the $12.7 billion ride-hailing industry with its eight million active users. Food delivery services will play a huge role in this growth. While transport currently comprises the majority of revenue at $7.5 billion, food delivery will take up half of the projected $40 billion revenue in six years.

Among other factors, financial services and loyalty programs will further boost consumption. One current example is Grab, which has an e-wallet and rewards programs on the app.

Online media, online travel, and financial services

If there’s anything that the growth of the online media and online travel industries tells us, it’s that this generation’s consumers truly champion the entertainment and experience economies.

Online media, which is currently worth $14 billion, will be driven to $32 billion in six years by advertising, gaming, and video- and music-on-demand. Advertising alone will comprise $20 billion—$9 billion will come from online gaming, and the remainder from subscription video and music.

Meanwhile, flights, hotels, and vacation rentals will drive online travel’s $34 billion in 2019 to 2025’s $78 billion value. The biggest chunk will come from flights at $40 billion, followed by hotels at $36 billion and vacation rentals at $2 billion.

On the flip side, there’s a lot of opportunity in the growing financial services industry. Out of 400 million adult Southeast Asians, only 104 million are fully banked, meaning enjoying access to bank accounts, credit, investment, and insurance. In the Philippines, 44 out of 67 million are unbanked.

Businesses now have the opportunity to tap into a largely untouched market through different, steadily-growing entryways, namely digital remittances, digital lending, digital investments, and digital insurance. For instance, penetration rate for remittances will increase from 13% to 28% by 2025. Penetration rate for investments will grow from 3% to 11% within the same time frame.

With a lot of fintech startup players in the region servicing the low-income market, such as Indonesia’s FinAccel and the Philippines’ PearlPay, it’s also a great way for businesses to create positive change in a big way.

Challenges and opportunities

Huge as the current market may be, there’s still a lot of unexplored territory. Half of the aforementioned 260 million internet users have not yet participated in the digital economy. And while projected growth in the region’s metros—Greater Bangkok, Kuala Lumpur-Klang Valley, Singapore, Hanoi, Ho Chi Minh City, Metro Manila, and Jabodetabek—is high, growth in the outer areas is expected to double those rates.

On the business end, platforms are also exploring the “super app” approach. For instance, in 2015, ride-hailing apps only offered transport services, but now some have expanded to include food delivery, e-commerce, and financial services, among others. This helps propel consumer engagement, since they appreciate being able to do several tasks without having to switch between apps. 

However, the ecosystem is not without its challenges. Out of the six key challenges identified by the study, only funding, consumer trust, and internet access have progressed significantly since last year. Logistics and consumer adoption of digital payments have improved, but it’s a very long way to go for talent.

Fortunately, many companies are conducting digital upskilling efforts to address the gap. There’s also the “reverse diaspora” of Southeast Asians who studied or worked abroad return home both to give back to their countries and seize increasing business opportunities. Part of this is the expanding startup landscape, which has amassed $7 billion in investments across Seed, Series A, and Series B stages.

Clearly, SEA’s digital economy will only grow stronger from this point. Demand for its various services is increasing; continuous research and innovation are unearthing new possibilities for businesses. There’s a lot of room for new players to increase competition. The only question left is, where will your startup fit in this exciting landscape?

Innovation a Regional Priority to Counter Global Disruption

International Innovation Summit 2019 urges Asian governments and corporates to prioritize innovation to combat global uncertainty

Governments across Asia are urged to prioritize innovation and indigenous technology to counter disruption globally led by shifting technology and market forces.

At the opening of the International Innovation Summit 2019, organizing chairman and former minister of human resources of Malaysia, Dr. Fong Chan Onn said that the Asian economy need to reduce its reliance on foreign technology and develop its own in order to insulate its economies against global events such as the on-going US-China trade spat.

Welcome Address by Tan Sri Dr. Fong Chan Onn, Chairman of Enterprise Asia

Following two successful editions in Shanghai and Macau, the International Innovation Summit, organized by Enterprise Asia, is held in Singapore and supported by the Singapore government this year. Themed “Innovation Trailblazers: Creating for Disruption”, the summit convened over 400 innovation experts, industry leaders and policy makers over three days.

This year’s keynote speakers include Koert Breebaart, vice president of SAP Asia, Ken Ding, head of product innovation of Samsung Electronics, Yat Siu, founder and CEO of Outblaze and Animoca Brands, Ajay Mohan of Intel Corporation and Jing Jang of Haier Group Corporation.

Yat Siu, Founder & CEO of Outblaza and Co-founder & Chairman of Animoca Brands, sharing about “Investing in Blockchain: Turning Virtual Goods into New Assets”

According to Fong, “leading disruptive innovation requires new mindsets and behaviours, for leaders themselves and for the organizations that develop them. In today’s turbulent environment, leading disruptive innovation is as much about best principles as it is about best practices, and requires a disruptive approach to management itself”.

“Companies wedded to the old business model lose ground, and some are pushed out of business. Challengers that embrace innovation gain advantage and will take a dominant position in the market. The goal of this year’s International Innovation Summit is not only to discuss what to expect from the future of disruption in innovation, but also in defining the innovation culture that we must adopt for our organizations to compete in this revolution.”

“More importantly, governments must urgently work with the private sector to define the innovation agenda for their respective economy, and to work with other countries for a regional framework to advance the culture of innovation in each country”, Fong said.

More than 400 International Delegates gathered at the summit

The International Innovation Summit 2019 is supported by Singapore Tourism Board through Singapore Exhibition & Convention Bureau, British Chamber of Commerce Singapore, Central and Eastern European Chamber of Commerce (Singapore), The Coordinating Secretariat for Science, Technology and Innovation (COSTI) under the Ministry of Science, Technology and Research, Sri Lanka, Malaysian Investment Development Authority (MIDA), Ministry of Energy, Science, Technology, Environment & Climate Change (MESTECC), Malaysia, Malaysian Global Innovation & Creativity Centre (MaGIC), National Institute of Entrepreneurship and Innovation (NIEI), Royal of Cambodia, Singapore Malay Chamber of Commerce & Industry (SMCCI) and Singapore-Thai Chamber of Commerce; Singapore Airlines as official airlines; Resorts World Sentosa as official venue partner; PR Newswire as news release distribution partner; and BusinessWorld, Commercial Times, Kumparan, SME Magazine, Techsauce, The Nation and Tuoi Tre News as official media partners.

For more information, visit www.innosummit.org.

 

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