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Dairy imports expected to grow next year

REUTERS

PHILIPPINE DAIRY imports are expected to increase in 2025 due to strong domestic demand, according to the US Department of Agriculture (USDA).

In a report,  the USDA said overall dairy imports are forecast to rise to 3.1 million metric tons (MMT) in liquid milk equivalent for 2025 from 3.05 MMT this year, mainly due to increased shipments of skim milk powder.

The Philippines typically imports dairy products such as ready-to-drink milk, cheese, skim milk powder, and whole milk powder.

The Philippines typically imports 99% of its dairy requirements as domestic production cannot meet demand.

The USDA said that the Philippines sources its requirements mainly from the US and New Zealand, followed by Indonesia, Australia, and Denmark.

“Dairy products continue to be the third largest US agricultural export to the Philippines after soybean meal and wheat, in value terms,” it added.

The USDA said that imports of skim milk powder are expected to grow 3% to 160,000 MT.

“An expected decline in import price will encourage manufacturers to produce more packaged dairy products to serve increasing demand,” it added.

The US and New Zealand are among the top suppliers of skim milk powder to the Philippines.

Imports of ready-to-drink milk and whole milk powder are forecast to remain flat in 2025. On the other hand, cheese imports are expected to decline next year due to higher import prices.

Meanwhile, dairy production is projected at 33,000 MT in 2025, due to an increase in the dairy herd as the government pursues dairy industry development projects.

The National Dairy Authority (NDA) said it is planning to import dairy cattle for its stock farms to support its plans to expand domestic production.

The NDA said that the new stock farms will eventually help increase the domestic dairy herd to about 80,000 head.

The NDA aims to increase dairy production to 80 million liters per year by 2028, equivalent to about 5% of milk demand.

“Production growth has been slow in previous years because of the inability to increase the dairy herd, mostly due to insufficient funding and little investment from the private sector,” the USDA said.

The USDA added that consumption is expected to hit three MMT by 2025, driven by increased population. — Adrian H. Halili

Honda espouses electric

Hybrid pair: The Honda Civic RS e:HEV joins the CR-V RS e:HEV in the local lineup. — PHOTO BY KAP MACEDA AGUILA

The Japanese brand is working toward a sustainable, safe future

ONE OF the most popular car brands in the Philippines is also, just in case you forgot, the leading motorcycle marque in the country. Not only that, Honda is known for its range of power tools that make everyday life’s odd jobs and requirements a lot easier to do.

It was a family reunion recently when Honda in the Philippines staged what it called the “One Honda Electrification Event,” with a theme “Transform the Future.”

Described as a “transformative journey,” it was as much a branding exercise as it was about defining policy — or even a rallying call, if you will. Honda said in a release that a new tagline has been added to its global slogan, resulting in “The Power of Dreams — How We Move You,” to reflect the company’s “mission of continuously making solutions that offer people the joy and freedom of mobility from the present to the future.”

There’s a lot to unpack or to operationalize from this high-minded thinking. It’s easy to perhaps misread or misunderstand just how Honda wants this vision to materialize or be realized. In town to help do just that was one-time Honda Cars Philippines, Inc. (HCPI) President Toshio Kuwahara. He’s now vice-president and head of regional operations (Asia & Oceania) for Honda Motor Co., Ltd. Mr. Kuwahara is concurrently president and CEO of Asian Honda Motor Co., Ltd.

“All these new products are just the beginning of Honda’s journey to giving the community a safer, greener and sustainable future. Driven by a clear vision, we seek to achieve carbon neutrality across our entire product lineup and corporate activities by 2050. We are also striving for zero traffic collision fatalities involving Honda motorcycles and automobiles globally by 2050,” he said.

During the Q&A portion of the event, “Velocity” was able to ask Mr. Kuwahara for his view on the country’s electrification journey through a regional lens — more particularly versus more mature BEV markets. “If we look at the numbers, compared to Thailand, Indonesia… electrification in the Philippines, I have to say, is a bit slow,” admitted the executive.

“In Thailand, 20% of passenger car sales are already (comprised of) BEVs,” he revealed, and posited that there are several reasons for a bit of hesitation in the local market versus fully electric options, such as the prohibitive cost of electricity (which, by the way, comes from predominantly coal-fired sources), and a lack of charging infrastructure.

Mr. Kuwahara voiced an appeal to the government to “kindly consider to extend EO (Executive Order) 62” to continue, among other benefits, providing import duty exemptions for hybrid vehicles. “It will be a positive thing for the automotive industry, and will help accelerate sales,” he underscored.

He said extending the implementation of zero import tariffs would help accelerate electrification and encourage sales of EVs, including hybrid models.

EO 62 modified the import duty rates of various products. This the expanded coverage of the zero import duty under EO 12 to include battery electric vehicles (BEVs), HEVs, plug-in HEVs and certain parts and components until 2028.

Getting from the ICE present to a BEV future is something Honda is earnestly working on, and the results can be seen already. Having said that, like other brands, the firm is not rushing to go full electric right away.

The stated goal for Honda is to become carbon-neutral by 2050, and it’s clearly setting some checkpoints along the way, toward the eventual decarbonization of its operations and products. There is certainly evidence in the here and now — expressed in a rollout of vehicles and gadgets in the various areas where Honda makes its presence felt.

Let’s start with Honda’s power tools, a handful of which now features direct-current battery power. Some of the immediate benefits are convenience, light weight, portability, easy operation, and lower noise output in its leaf blower, hedge trimmer, lawn trimmer, and chainsaw. When compared to their conventional gas-powered counterparts though, Honda said that these lend themselves more naturally to home use or light duty.

Meanwhile, Honda Philippines, Inc. has unveiled its first two-wheeled BEV, the all-new EM1 e:. It draws power from a “high-quality lithium-ion battery,” the so-called Honda Mobile Power Pack e: which, unlike in usual electric bikes, can be conveniently charged away from the vehicle. A brushless electric motor provides propulsion to the vehicle that also offers a front disc brake, twin suspension, Standard Mode and Econ Mode Riding, LCD digital display, and an all-LED lighting system. The SRP for the EM1 e: is P155,400, which includes a battery and charger; a separate Honda Mobile Power Pack e: is available for P42,500.

Said Honda Philippines, Inc. President Sayaka Arai in a release, “Our commitment to expanding the joy of mobility, and comfort to every Filipino has always been at the forefront of everything we do. We at Honda Philippines are excited about the potential of these innovative products to contribute to a clean and empowered future for Filipino families.” The EM1 e: is now available in Honda Flagship Shops nationwide.

For its part, HCPI is further ushering in electrification into its range through the new Honda Civic RS e:HEV — the first time for this iconic model to be bestowed with an electrified powertrain. HCPI shared that “it also boasts the latest generation of Honda Connect, now with more features that allows the owners more interaction with their vehicles via a smartphone app.”

“The New Honda Civic RS e:HEV truly blends performance and efficiency with features that reinforces Honda in the field of leading-edge technologies in connectivity and safety. It has the power to give its driver confidence in every journey with less environmental impact… This, along with several more upcoming models, is set to further strengthen Honda’s x:EV portfolio in the country,” declared HCPI President Rie Miyake.

Again, aside from putting out more sustainable operations and products, Honda has also long espoused a vision to have “zero traffic collision fatalities involving Honda motorcycles and automobiles globally” by the same year (2050).

DTI craft fairs push MSME products

WHILE the National Arts and Crafts Fair ended yesterday, after its run from Oct. 23 to 27, it left a lot to think about.

There were 287 exhibitors at SM Megamall’s Megatrade Halls 1 through 3, showing off things like Schools of Living Traditions for indigenous peoples. These community-managed centers serve as cultural hubs where indigenous groups teach their younger generations the traditional skills and crafts of their forebears. Among these finds are crystals, herbs, and spices from the Ati community of Negros, as well as woven products from the Dumagat Remontado people of Rizal. There were also booths in tribute to Gawad sa Manlilikha ng Bayan  Awardees: master artisans recognized by the Philippine government for their exceptional contributions to the preservation of traditional arts. These include works by their apprentices, such as outfits made from weaving techniques taught by Magdalena Gamayo, master weaver of inabel.

Woven products from various regions were also on display: there were native fabrics from the Negros 9 Kabankalan Weaving Community, as well as baskets and related crafts from the Palawan Tagbanwa community. There were several outfits available from Angie’s Yakan and Handloom Weaving and Ilocanknows Classics Consumer Goods Trading, though we settled on a jacket from Tinguian Artisans Arts and Crafts, all the way from Abra.

The Department of Trade and Industry (DTI), organizers of the fair, has been aggressive recently in promoting local crafts through these fairs, with BusinessWorld attending one iteration about once every month in the last quarter. DTI Secretary Ma. Cristina Aldeguer-Roque said in a speech on Oct. 23, “DTI’s mission is simple: to create more opportunities for our MSMEs (micro, small to medium enterprises) to shine. This is why we’re hosting numerous trade fairs across the country.”

In an interview with BusinessWorld, she said, “We’re very aggressive in promoting MSMEs, because this is mandated by our president Ferdinand “Bongbong” Marcos: to help and support MSMEs as strong and as best as we can.”

In a speech at the fair’s opening, she said, “MSMEs are the heart of everything that we do. They make up 99.5% of the business establishments and 60% of the labor force. They are not just the backbone of our economy: they are the heartbeat of our community, the lifeblood of inclusive growth, and the foundation of a better future for our nation.”

Herself a founder of a former MSME that has since flourished (clothing brand Kamiseta), Ms. Aldeguer-Roque told BusinessWorld about what Filipino MSMEs are really good at: “Filipinos are really good at the food industry, and also fashion; they’re also very good at crafts. Now, because of our First Lady (Marie Louise “Liza” Araneta-Marcos) really pushing for the preservation of the weavers, then we really get to preserve our culture and heritage.” — Joseph L. Garcia

Globe taps Singapore firm for laser communication system

WIRESTOCK-FREEPIK

GLOBE TELECOM, INC. and unit Asticom Technology, Inc. have partnered with Transcelestial Technologies Pte Ltd. to introduce a laser communication system in the Philippines, the Ayala-led company said.

“Laser communications hold immense promise for the future of high-speed, reliable connectivity, particularly in areas where deploying physical infrastructure is difficult or impractical,” Joel R. Agustin Globe head of service planning and engineering, said in a statement on Sunday.

Globe said the partnership would help advance the expansion of 4G and 5G coverage in the country, while also offering a cost-efficient alternative to fiber optics.

Headquartered in Singapore, Transcelestial Technologies has developed laser communication systems through its CENTAURI device, which allows wireless fiber-like connectivity.

“By combining our CENTAURI laser technology with Globe’s network expertise and Asticom’s implementation, we’ve demonstrated how next-generation technologies can seamlessly integrate with and enhance existing network architectures,” Transcelestial Technologies cofounder Mohammad Danesh said.

This technology allows data transmission without the need for physical cables, Globe said, adding that the deployment of Transcelestial Technologies’ CENTAURI devices would ensure high-speed connectivity at key infrastructure points.

Asticom Technology, Globe’s shared services and outsourcing arm, will help implement and deploy the technology across the country.

Globe has been testing technologies to help advance 5G rollout and enhance data and service coverage in the country.

Last month, it said its satellite-to-SMS trial in remote areas was progressing after successfully sending text messages using standard phone via low-earth orbit satellite connection.

In June, Globe announced a partnership with Global, Inc. to assess the potential of satellite-direct-to-phone communication services in remote areas of the country.

Lynk is an international company that develops satellite-to-mobile-phone constellation technology to enhance mobile phone service coverage. — Ashley Erika O. Jose

T-bill, bond rates likely to climb

RATES of the Treasury bills (T-bills) and bonds (T-bonds) on offer this week could continue to rise following the increase in US benchmark yields due to market jitters ahead of the US presidential elections.

The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6.5 billion each in 91- and 182-day papers and P7 billion in 364-day debt.

On Tuesday, the government will offer P15 billion in reissued 10-year T-bonds with a remaining life of nine years and two months.

The T-bonds could fetch yields ranging from 5.8% to 5.85% this week amid high demand as the paper on offer is illiquid and has limited volume up for grabs, a trader said.

T-bill and bond rates could mirror the increase in secondary market rates last week amid higher US treasury yields “as the markets are pricing in a possible Trump victory in the upcoming US presidential elections,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

At the secondary market on Friday, rates of the 91-, 182-, and 364-day T-bills went up by 4.8 basis points (bps), 21.77 bps, and 3.66 bps to end at 5.1979%, 5.8013, and 5.7292%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Oct. 25 published on the Philippine Dealing System’s website.

Meanwhile, the 10-year bond saw its yield rise by 9.01 bps week on week to 5.8279%.

Secondary market yields also rose amid lower global crude oil prices recently due to easing tensions in the Middle East, Mr. Ricafort added.

Republican former President Donald Trump and Democratic Vice-President Kamala Harris are polling neck-and-neck in crucial swing states ahead of the Nov. 5 election. Investors are anxious about a contested result roiling world markets and unleashing fresh geopolitical uncertainty, Reuters reported.

Mr. Trump is neck and neck with Ms. Harris in the polls. Yet investors are taking their cues from betting markets, where the odds have shifted in Mr. Trump’s favor.

The dollar has rallied more than 3% so far in October as bond yields have climbed towards three-month highs, partly because markets are preparing for potentially higher US tariffs flagged by Mr. Trump if he wins that could push up inflation and force the Federal Reserve to keep rates higher.

Traders are pricing in near-95% odds of a 25-bp cut at the Fed’s November meeting, according to the CME Group’s FedWatch Tool. The yield on benchmark US 10-year notes rose 3.8 bps to 4.24%.

Meanwhile, oil prices eased about 1% in volatile trade on Thursday on reports the US and Israel will try to restart talks on a possible ceasefire in Gaza, Reuters reported.

Brent futures settled 58 cents, or 0.8%, lower at $74.38 a barrel, while US West Texas Intermediate crude (WTI) slipped 58 cents, or 0.8%, to end at $70.19.

However, oil prices settled higher on Friday and gained 4% on the week, with investors taking stock of the ongoing conflict in the Middle East as well as the US election next month. Brent settled 4% up on the week, while WTI settled 3.7% higher on the week.

Last week, the BTr raised P20 billion as planned from the T-bills it auctioned off as total bids reached P55.069 billion.

Broken down, the Treasury borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P17.61 billion. The average rate for the three-month paper rose by 1.9 bps to 5.463% from the previous auction, with bids ranging from 5.398% to 5.463%.

The government also made a full P6.5-billion award of the 182-day securities, with bids reaching P14.72 billion. The average rate of the six-month T-bill stood at 5.731%, up by 6.3 bps, with accepted bid yields at 5.6% to 5.78%

Lastly, the Treasury raised P7 billion as planned via the 364-day debt papers as demand for the tenor totaled P22.739 billion. The average rate of the one-year debt also went up by 6.3 bps to 5.686%, with accepted rates ranging from 5.65% to 5.7%.

Meanwhile, the reissued 10-year bonds on offer on Tuesday were last auctioned off on Sept. 17, where the BTr raised P30 billion as planned at an average rate of 5.967%, below the 6.25% coupon.

The BTr is looking to raise P145 billion from the domestic market this month, or P100 billion via T-bills and P45 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product this year. — A.M.C. Sy with Reuters

A concrete way to live out company values — translate them into behavioral standards

MIMI THIAN-UNSPLASH

The company’s values have been defined.

Town hall meetings have been held to discuss the code of behavior and work standards by which employees are expected to live by within the organization as well as in dealing with external partners, customers, and other associates.

Posters and screensavers have also been put up as a regular reminder of the values that the company stands for.

But it is not quite happening. Employees do not seem to be internalizing the values, and they are not widely felt within the organization and by other stakeholders.

Some clients have approached us with this difficulty in embedding values — despite trying everything, they needed help in assessing why they are not seeing the values lived out, and how to make it right.

In most cases, the problem is not because employees don’t want to live out those values or that they don’t even agree with it.

The biggest and most common stumbling block is ambiguity — what employees usually need is just more clarity on how to actually live out the values in everyday dealings.

That is why there is an important step of translating values into behavior. Setting behavioral standards makes the values more real for each employee and the organization as a whole.

The pivotal business questions that clients ask us are: How do we ensure that the values will be lived out by employees? How do we erase the ambiguity of what they see as “lofty” values into something crystal clear? What are the desired behaviors in order to demonstrate that the values are being lived out on a day-to-day basis so that they can become a driving force in the achievement of the company’s purpose and ambitions?

Under Acumen’s frameworks and methods, we start out with retrospective workshops among employees of the company to define and really go over in great detail what each specific value means to them. We ask them to articulate their own thoughts and feelings in order to discover what prompts attitudes and particular actions.

For example, in the Philippines, malasakit is a value that is found in many companies’ values. It has no direct translation into English, but it implies caring, concern, compassion, or empathy towards others.

So, in a corporate context, what does malasakit really mean?

What we do is get into are detailed descriptions of behaviors that concretize the value.

It could mean, in a very simple form of behavior, practicing a clean-as-you-go motto in common areas such as the office kitchenette and conference room in consideration of other users.

Malasakit could also mean that when a colleague asks for your feedback on a certain work stream, you provide them with that feedback within 24 to 48 hours — or at least send notice as soon as possible on when you will be able to deliver the request.

Another example would be behaviors relating to entrepreneurship, which in the big picture is guided by a growth mindset — about looking for ways to expand and innovate.

A behavioral manifestation of entrepreneurship could be an acceptance of a faulty decision, learning from that mistake, and reevaluating strategies and direction after the mistake.

In one of our clients, the behavioral standard for an employee was something as fundamental as: “When I’m in my company uniform, I feel appropriately dressed and I go into work ready to face all the customers that come my way and I approach everybody with a smile.”

So, when we talk about behavioral standards, we must delve into things that are concrete, meaning it can be seen, heard, and done. They are actions, habits, and efforts that you can see, hear or do — these make the values alive and real.

After the retrospective workshops, we use the data gathered to create a set of behavioral standards, then develop a change management and communications program on how the company can roll out these behaviors across the organization.

We strive to make behavioral standards end-to-end with the employee experience — looking at everything starting from recruitment, which means answering the question: How do we actually adjust our recruitment protocols so that we attract and hire people who are really aligned with our values?

Then we take it all the way through onboarding, training, coaching and mentoring, performance management, and recognition and rewards.

Employees want to live out the company values, sometimes they just don’t know how. By developing behavioral standards and embedding them across the entire employee experience, they will be able to internalize and live out the values — and can be measured and rewarded for it.

 

Cherry Tantoco-Daniels heads Acumen’s Organizational Transformation practice area. She brings over 30 years of multinational expertise in management consulting, marketing and brand management, teaching, and training across Asia, Europe, and the United States.

www.acumen.com.ph

China’s five-year plan seeks to boost food output

REUTERS

BEIJING — China on Friday launched a five-year action plan to accelerate the digital transformation of the entire agriculture industry chain as part of measures to raise domestic food production.

The 2024-2028 smart agriculture action plan will aim to establish a digital planting technology scheme as well as a national agricultural and rural big data platform by 2028, the agriculture ministry said in a statement.

The urgency to adopt big data, GPS navigation systems and artificial intelligence in farming comes as the world’s largest grains producer stepped up investments in farm machinery and seed technology in its quest for food security.

China’s grain output is set to exceed a record 700 million metric tons this year, Zhang Xingwang, the vice-minister for agriculture and rural affairs told reporters in a news conference on Friday.

But he said efforts to ensure stable supply “cannot be relaxed” as the country remains highly reliant on imports to feed a population of 1.4 billion.

China imports over 100 million metric tons of soybeans and grains a year, particularly from United States and Brazil.

The digital transformation, which covers farms, animal husbandry and fisheries, is expected to help reduce costs, increase production and increase efficiency.

To accelerate yield increase, the ministry will accelerate the digital upgrade of agricultural machinery and equipment at farms.

The ministry added that it will continue to explore the future of smart agriculture by supporting research institutions and strengthening the research and development of agricultural technologies. — Reuters

New MG flagship dealership opens in Alabang

MG Alabang is at Westgate Alabang along Alabang-Zapote Road, Muntinlupa City. — PHOTO FROM MG PHILIPPINES

By Hazel Nicole Carreon

MG DISTRIBUTOR SAIC Motor Philippines recently inaugurated the brand’s newest dealership. Located at Westgate Alabang along Alabang-Zapote Road, Muntinlupa City, MG Alabang is operated by Automotive Icon, Inc.

Considered an addition to the brand’s “flagship dealerships,” MG Alabang features a redesigned, state-of-the-art look. The first two MG flagship showrooms in the country — the MG Gallery in Quezon City and the MG Greenhills in San Juan City — opened earlier this year. MG Alabang aims to provide more accessible service to new and existing MG owners in the southern portion of Metro Manila.

The facility boasts a total area of 1,200 sq.m., with a modern showroom that can display up to five cars and a service area with six work bays that offer a variety of after-sales services such as periodic maintenance and general repairs.

During the grand opening of the dealership, SAIC Motor Philippines Marketing Director Dax Avenido pointed out that the facility will also be able to serve MG electric vehicles (EV) soon. “There will be a 120W DC charger — a fast charger that can charge your electric vehicle to 100% in 30 minutes or less, depending on the level of charge you have in your car,” he told “Velocity.” MG EV owners will be able to use the charging station at the facility free of charge.

After SAIC Motor Philippines officially took over the distribution rights to MG in 2023, the first models that it launched were the fully electric MG 4 hatchback and Marvel R compact SUV. Two more EV models were introduced locally at the Manila International Auto Show last April — the ZS EV and the MG 4 XPower. At the same event, the company also previewed two fully electric models, the Cyberster roadster and the IM LS7 luxury crossover SUV.

Aside from its all-electric models, the local MG distributor also offers internal-combustion-engine-powered models such as the MG 5 subcompact sedan, the MG GT sport sedan, the ZS crossover, the One crossover, and the G50 Plus MPV. Earlier this year, it also introduced the MG 3 hatchback that comes with a hybrid variant.

The newly opened outlet in Alabang is MG’s 57th dealership overall in the Philippines. “Hopefully, we will be able to hit our target of 60 dealers by the end of 2024,” Mr. Avenido stated.

For more information, visit mgmotor.com.ph.

Boggi Milano opens first flagship store in PHL at Greenbelt

BOGGI MILANO, the renowned Italian menswear brand, has opened its first flagship store in the Philippines, located in Greenbelt 5, Makati City, adding to the diverse array of luxury retail and lifestyle options in the high-end mall.

Boggi Milano showcases its latest collection for men, featuring a selection of cross-seasonal looks that highlight the Fall/Winter wardrobe.

The new FW24/25 collection draws inspiration from Iceland, an island known for its diverse and striking natural landscapes which is reinterpreted in a distinctive and cosmopolitan style.

The collection features a blend of technical, innovative, and high-performance fabrics alongside traditional fabrics. This includes flannel, known for its warmth and lightweight quality, as well as merino wool and cashmere, both soft and supple to the touch.  Jersey, organic cotton, and Tencel are also among the fabrics used.

The collection’s palette ranges from taupe to black, along with blue denim and neutral tones like beige, cream, and dark brown, along with grey and charcoal, which are key colors of the collection. It embraces more versatile shades centered around grey, diverging from the traditional office aesthetic.

With the opening of its first flagship store in the country, Boggi Milano positions itself as a luxury brand that combines competitive pricing with high-quality menswear.

The store is found on the first floor of Greenbelt 5 Mall, Makati Ave., Makati City.  — Edg Adrian A. Eva

Arbolo eyes Manila as ticket to global expansion

ARTIFICIAL INTELLIGENCE (AI)-powered coaching and simulation platform Arbolo has set up a headquarters in the Philippines as a gateway to its global expansion.

“The Philippines is not just a strategic location — it’s the heart of the call center industry, which makes it ideal for us to scale globally,” Arbolo co-founder and Chief Executive Officer (CEO) Martin Tan said in a statement at the weekend. “Our presence here gives us a launchpad to rapidly expand across Southeast Asia and beyond.”

Arbolo has secured an undisclosed amount of funding from angel investors, including Kendrick Kho, founder and managing partner of Hyperparameter, a US-based venture capital firm that specializes in AI solutions for traditional industries.

The firm said its generative AI (genAI)-driven solutions are developed at its innovation hub in Chile, where cofounder and chief technology officer Nicolas Rivas leads the technology team.

Arbolo’s platform has delivered operational improvement for major call centers in the Latin American country, it said.

An outsourcing provider in Latin America, iBr, has used Arbolo’s AI-driven coaching solution to enhance service delivery and deepen client relationships, doubling the number of agents managing its most critical account, the company said.

“We have seen a significant improvement in service quality, and Arbolo has played a key role in our growth with a major client,” iBr CEO Luis Gomez said in the same statement.

Similarly, Entel Connect Center, the customer service division of Chile’s largest telecommunication provider, experienced improvements using Arbolo’s. “Entel, which employs 9,000 agents, integrated AI-driven role-play simulations to boost customer satisfaction scores by 15% in the first month,” Arbolo said, adding that the platform cut coaching hours by 80%.

Another Chilean firm, Esencial, a health insurance provider, first adopted Arbolo for its sales team to improve customer interaction through customized simulations.

After seeing results, it expanded the platform use to customer service. Grupo Alemana, the firm’s parent company, is now evaluating the possibility of deploying the platform across its 500-agent network.

Arbolo is now set to replicate its early success across Southeast Asia, beginning with the call center industry in the Philippines, the company said.

“We’ve shown how our platform can deliver tangible results in Latin America, and we believe that approach will resonate in our country’s rapidly evolving business process outsourcing industry,” Mr. Tan said. — Aubrey Rose A. Inosante

Term deposit yields decline on oil prices, reserve requirement ratio cut

PHILIPPINE STAR/WALTER BOLLOZOS

YIELDS on the central bank’s term deposits fell on Friday amid volatile global oil prices due to ongoing geopolitical tensions in the Middle East and as the cut in lenders’ reserve ratios took effect, releasing liquidity into the financial system.

The term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) fetched bids amounting to P286.874 billion on Friday, well above the P170-billion offering as well as the P191.794 billion tenders for a P190-billion offer seen a week ago.

Last week’s TDF auction was rescheduled to Friday from Wednesday amid the suspension of work in government offices due to the typhoon. The tenors of the term deposits auctioned off were also adjusted accordingly.

Broken down, tenders for the five-day papers reached P169.976 billion on Friday, higher than the P90 billion auctioned off by the central bank and the P98.069 billion in bids fetched for the P100-billion offering of seven-day term deposits the previous week.

Banks asked for yields ranging from 5.99% to 6.14%, lower than the 6.2355% to 6.28% band seen a week earlier. This caused the average rate of the five-day deposits to drop by 17.06 basis points (bps) to 6.0936% from 6.2642% previously.

Meanwhile, bids for the 12-day term deposits amounted to P116.898 billion on Friday, above the P80-billion offering and the P93.725 billion in tenders for the P90 billion in 14-day papers auctioned off on Oct. 16.

Accepted rates for the tenor were from 5.998% to 6.2%, below the 6.19% to 6.35% margin seen a week ago. With this, the average rate for the 12-day deposits fell by 16.45 bps to 6.1374% from 6.3019% logged in the prior auction.

The central bank has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

Term deposit yields went down on Friday as global oil prices recently reached three-week lows amid easing geopolitical tensions in the Middle East, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Oil prices eased about 1% in volatile trade on Thursday on reports the US and Israel will try to restart talks on a possible ceasefire in Gaza, Reuters reported.

Brent futures settled 58 cents, or 0.8%, lower at $74.38 a barrel, while US West Texas Intermediate crude (WTI) slipped 58 cents, or 0.8%, to end at $70.19.

Earlier in the session, both benchmarks traded up over $1 a barrel on concerns the ongoing conflict in the Middle East could result in oil supply disruptions and from uncertainty ahead of the US presidential election on Nov. 5.

After Iran fired missiles at Israel on Oct. 1, Brent crude surged about 8% during the week ended Oct. 4 on worries Israel would attack Iran’s oil infrastructure. It fell about 8% in the week ended Oct. 18 on reports Israel would not hit energy infrastructure, easing fears of supply disruptions.

However, oil prices settled higher on Friday and gained 4% on the week, with investors taking stock of the ongoing conflict in the Middle East as well as the US election next month.

Brent settled 4% up on the week, while WTI settled 3.7% higher on the week.

The recent reserve requirement ratio (RRR) cut, which took effect on Friday (Oct. 25), also affected TDF yield movements as the cash released into the financial system because of the reduction could go into the central bank’s monetary instruments, Mr. Ricafort added.

“Banks will have the flexibility to increase loans, investments in bonds and other fixed-income securities, equities, as well as other investments,” he said.

“There would also be more pesos that could be used to buy US dollars and other foreign currencies, though the excess pesos could be siphoned off through higher interest rates offered by the BSP TDF, in view of larger bids (on Friday) to reflect the RRR cut that increased banks’ peso liquidity.”

Effective on Friday, the BSP reduced the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%.

It also cut the RRR for digital banks by 200 bps to 4%, while the ratio for thrift lenders was brought down by 100 bps to 1%. Rural and cooperative banks’ reserve requirement was slashed by 100 bps to 0%. — Luisa Maria Jacinta C. Jocson with Reuters

Flu vaccination provides many benefits

PHILIPPINE STAR/EDD GUMBAN

Seasonal influenza or the flu is one of the most common illnesses in the Philippines. The flu season in the country is from June to November, coinciding with the rainy season.

The Department of Health (DoH) said that 9,491 flu-like cases nationwide were recorded from July 28 to Aug. 10, 55% higher compared to 6,124 cases reported in the previous week. All regions except the Bangsamoro in southern Philippines showed an increase in flu-like cases during this four-week period. Annual seasonal influenza epidemics have a substantial economic impact through reduced workforce productivity and increased pressure on healthcare services.

Seasonal influenza is an acute respiratory infection caused by influenza viruses. There are four types of influenza viruses, types A, B, C, and D. Influenza A and B viruses circulate and cause seasonal epidemics, according to the World Health Organization (WHO).

Symptoms of influenza usually begin around two days after being infected by someone who has the virus. These include sudden onset of fever, cough (usually dry and can be severe and last two weeks or more), headache, muscle and joint pain, severe malaise (feeling unwell), a sore throat, and a runny nose.

Seasonal influenza spreads easily, with rapid transmission in crowded areas including schools and nursing homes. When an infected person coughs or sneezes, droplets containing viruses (infectious droplets) are dispersed into the air and can infect persons in close proximity. The virus can also be spread by hands contaminated with influenza viruses. To prevent transmission, people should cover their mouth and nose with a tissue when coughing and wash their hands regularly.

While most people recover from fever and other symptoms within a week without requiring medical attention, influenza can cause severe illness or death, especially in people at high risk. Hospitalization and death due to influenza occur mainly among high-risk groups, warns the WHO.

High-risk groups include pregnant women, children under five years of age, older people, individuals with chronic medical conditions (such as chronic cardiac, pulmonary, renal, metabolic, neurodevelopmental, liver or hematologic diseases) and individuals with immunosuppressive conditions/treatments (such as HIV, those receiving chemotherapy or steroids, or who have a malignancy). Healthcare workers are at high risk of acquiring influenza virus infections due to increased exposure to the patients, and of further spreading it particularly to vulnerable individuals.

Influenza can worsen symptoms of other chronic diseases. Severe influenza can lead to pneumonia and sepsis (a serious condition caused by the body’s severe reaction to an infection). The WHO strongly advises people with other medical issues or who have severe flu symptoms to seek medical care.

Vaccination is the best way to prevent influenza, the WHO stresses. Safe and effective flu vaccines have been used for more than 60 years. Immunity from vaccination wanes over time; as such, the WHO recommends an annual flu vaccination. Moreover, flu viruses are constantly changing. This is why flu vaccines are updated routinely, with new vaccines developed that contain influenza viruses that match circulating strains.

The flu vaccine oftentimes makes the illness less severe and reduces the chance of complications and death, the WHO explains. Vaccination is especially important for people at high risk of influenza complications and their carers. The WHO recommends annual flu vaccination for pregnant women, children aged six months to five years, people over the age of 65, people with chronic medical conditions, and health workers.

Flu vaccination provides numerous benefits, according to the US Centers for Disease Control and Prevention (CDC). The flu vaccine prevents millions of illnesses and flu-related doctor’s visits each year. During seasons when flu vaccine viruses are similar to the circulating flu viruses, the flu vaccine has been shown to reduce the risk of having to go to the doctor with flu by 40-60%.

A 2021 study showed that among adults hospitalized with flu, vaccinated patients had a 26% lower risk of intensive care unit (ICU) admission and a 31% lower risk of death from flu compared with those who were unvaccinated. A 2018 study in New Zealand showed that among adults hospitalized with flu, vaccinated patients were 59% less likely to be admitted to the ICU than those who had not been vaccinated. Among adults in the ICU with flu, vaccinated patients spent on average four fewer days in the hospital than those who were not vaccinated.

A 2018 study showed that from 2012 to 2015, flu vaccination among adults reduced the risk of being admitted to an ICU with flu by 82%. A 2017 systematic review found that during 2010 to 2011 through 2014 to 2015, flu vaccines reduced the risk of flu-associated hospitalization among older adults by about 40% on average.

Flu vaccination can also be life-saving for children. It can reduce children’s risk of severe life-threatening influenza by 75%, flu-related hospitalization by 41%, and flu-related emergency department visits by half among children aged six months to 17 years. A 2014 study showed that flu vaccination reduced children’s risk of flu-related pediatric intensive care unit (PICU) admission by 74% during flu seasons from 2010 to 2012.

Flu vaccination is important for people with certain chronic health conditions, including heart disease, chronic obstructive pulmonary disease (COPD), and diabetes, as it reduces disease severity and the risk of hospitalization. Flu vaccination during pregnancy also helps protect pregnant people from flu during and after pregnancy and helps protect their infants from flu in their first few months of life.

Last but not the least, getting flu shots may also protect the people around them, including those who are more vulnerable and at high risk.

 

Teodoro B. Padilla is the executive director of the Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

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