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WB: PHL likely to miss growth targets

THE WORLD BANK has slashed its gross domestic product (GDP) growth forecasts for the Philippines this year up to 2021 to below the government’s target, amid “intensified” risks from an escalating Sino-US trade war and “a slow recovery” of government spending in the wake of a three-and-a-half month delay in national budget enactment that weighed on first-half expansion.

The East Asia and Pacific Economic Update, titled “Weathering Growing Risks”, which the multilateral lender released on Thursday bared a Philippine GDP growth forecast of 5.8% this year against the already-downgraded 6.4% forecast it gave last June and the official 6-7% target for 2019.

World Bank GDP growth projections for select East Asia and Pacific economies

The latest projection also compares to the country’s actual 6.2% last year.

The World Bank also gave 6.1% and 6.2% projections for 2020 and 2021, also down from 6.5% for both years penciled last June.

The Philippines’ 5.8% growth forecast this year is the same as the projection given for developing East Asia and the Pacific (EAP), though better than the 4.8% for “developing ASEAN”, a group that excludes Singapore and Brunei. The Philippines will outpace developing EAP and ASEAN next year and in 2021.

But the country’s growth projections also fall short of the government’s targets of 6.5-7.5% in 2020 and 7-8% in 2021-2022.

Inflation will be supportive at 2.9% this year, against the central bank’s 2.5% forecast, and three percent for 2020 and 2021 against a 2-4% official target range.

“Downside risks to growth have intensified,” the World Bank said of the Philippines in its report.

“The Philippines faces heightened external risks due to the slowdown in global growth and demand, and rising global protectionism, which weaken external demand for the country’s main exports,” it explained.

“Domestically, a slow recovery in the pace of public investment spending constitutes the main downward risks, as capacity constraints, procurement difficulties, and implementation bottlenecks continue to slow the pace of public spending.”

The country’s economy expanded by a disappointing 5.5% last semester, and Socioeconomic Planning Secretary Ernesto M. Pernia has said it will take a 6.4% growth — doable according to state economic managers — to hit the lower end of the government’s 6-7% goal for 2019.

In a press briefing on Thursday, Rong Qian, World Bank senior economist for the Philippines, noted that agencies were not able to start the procurement process right away after the P3.662-trillion 2019 national budget was finally enacted in mid-April.

“Another challenge is the absorptive capacity of the private sector,” Ms. Rong said.

“The budget delay caused some accumulation of projects and now that the projects have passed, they all go to the market at the same time…”

At the same time, “[f]iscal policy is expected to remain supportive of growth as public investment recovers, getting back on track to close the country’s infrastructure gap.”

“Monetary policy is also expected to be accommodative as inflation pressure diminishers,” Ms. Rong said.

The Bangko Sentral ng Pilipinas (BSP) has already cut benchmark interest rates by a total of 75 basis points (bps) in the face of fast-ebbing inflation rates. But this total leaves 100 bps left from last year’s cumulative 175 bps hike that the BSP fired off in the face of successive multi-year highs that reached a nine-year-high 6.7% in September and October that made the 2018 average settle at a decade-high 5.2%. Inflation averaged 2.8% in the nine months to September.

The BSP has also slashed banks’ reserve requirement ratio by a total of 300 bps, after last year’s total of 200 bps, as BSP Governor Benjamin E. Diokno moves to cut this ratio to single-digit level when he ends his term in mid-2023.

Ms. Rong cited growth drivers up to 2021 as public spending, especially on infrastructure, and a pickup in private investments after all tax reforms — especially one that will slash the corporate income tax gradually to 20% by 2029 from 30% currently — are enacted. Business has also been pressing the government to end uncertainty from a plan to overhaul fiscal incentives for investors in order to make them more time-bound and tied to clear benefits to the economy.

She also noted that poor competition among firms in the Philippines has resulted “poor service delivery and higher prices, particularly in key sectors such as telecommunications, transportation, logistics and power”.

“Markets in manufacturing, wholesale and retail, agriculture and transport that are usually open for competition appear to be highly concentrated in the Philippines, suggesting that market rules and regulations might be hindering competition.” — Beatrice M. Laforga

AllHome marks strong stock market debut

ALLHOME Corp. met investor expectations at its market debut on Thursday, with its shares gaining 0.52% at the end of trading.

The one-stop-shop home improvement store of real estate tycoon Manuel B. Villar, Jr., dubbed by Forbes this year as the country’s richest man, raised P14.9 billion after exercising its over-allotment option.

Its shares closed at P11.56 apiece. It actually opened the day 1.04% higher than its P11.50-per-share initial public offering (IPO) price at P11.62 — also the day’s peak — and hit a low of P11.42.

It is now listed on the Philippine Stock Exchange’s (PSE) Main Board — with the stock symbol HOME — under the retail subsector of the services sectoral index.

The PSE index itself closed 1.09% higher at 7,765.03, while services edged up 0.87% to 1,512.11.

“For a first day, it’s okay. I’m very happy,” Mr. Villar, AllHome chairman, told reporters after the company’s listing ceremony at the PSE Tower in Taguig City. “Despite the very heavy volume, price is steady… So I’m happy.”

For PSE Chairman Jose T. Pardo, “The market debut of this young, vibrant, and rapidly growing company is a testament that even new companies can already tap the stock market for their capital requirements.”

AllHome Vice Chairman Camille A. Villar said the company aims to double its market share of 7.1% in the home improvement industry by next year. Expansion will be focused on Metro Manila and neighboring towns for now, but the longer-term plan is to bring it to the rest of Luzon, the Visayas and Mindanao.

“By the end of 2020, when we have 70 stores, we plan to double our market share from what it is now,” she said, noting AllHome currently has 27 stores across 22 cities and municipalities.

The company is allocating P3.5-3.6 billion for its capital expenditures until next year, which will be largely funded by its IPO.

Mr. Villar said his group of companies may launch another IPO next year. “You know that we have a lot of retail concepts. This is the first (to hold an IPO). If there’s a first, then there will be a second,” he said.

AllHome’s maiden share sale followed those of real estate management firm Kepwealth Property Phils, Inc. and coconut products manufacturer Axelum Resources Corp. — Denise A. Valdez

Trade gap shrinks as imports fall, exports grow

OVERSEAS SALES of Philippine goods grew for the fifth straight month in August but by the slowest pace in that period, while purchases of foreign goods saw their worst performance in six years that same month, making the merchandise trade gap narrow from July and from a year ago, the Philippine Statistics Authority (PSA) reported on Thursday.

Merchandise exports edged up by 0.558% to $6.251 billion in August, while imports fell by 11.769% to $8.66 billion — the biggest drop since April 2013’s 13.3% contraction — making the country’s trade deficit shrink by 33.062% to $2.409 billion from $3.599 billion a year ago.

Year-to-date, merchandise exports edged up by 0.133% to $46.642 billion, against a two percent official full-year target for 2019, while import payments dropped 2.839% to $71.345 billion, against a seven percent full-year goal.

For Socioeconomic Planning Secretary Ernesto M. Pernia, “We must continue to initiate programs that provide comprehensive packages of support for products with comparative advantages, including related industries, to facilitate expansion in the international market.”

“As subdued investments in emerging markets, coupled with persistent trade tensions, continue to hamper global expansion, implementation of timely reforms will vastly improve the country’s resilience to external shocks,” Mr. Pernia said in a press release.

The PSA reported that exports increased on improved sales of three of the top 10 major commodities, namely: gold (93.2%); ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (7.6%); and electronic products (6.6%).

Imports’ decrease, on the other hand, was due to declines in eight of the top 10 major commodities, namely: iron and steel (-44.2%); transport equipment (-29.1%); cereals and cereal preparations (-23.4%); industrial machinery and equipment (-15.3%); mineral fuels, lubricants and related materials (-11.9%); plastics in primary and non-primary forms (-8.7%); electronic products (-6.0%); as well as other food and live animals (-4.4%).

ELECTRONICS
Electronics items continued to be the top export with $3.659-billion earnings, accounting for 58.529% of total value of merchandise exports in August and increasing by 6.557% from $3.433 billion a year ago. Components/devices (semiconductors) had the biggest share of 42.881% among the electronic products at $2.68 billion, 4.076% more than the year-ago $2.575 billion.

Year-to-date, electronics exports grew 1.905% to $26.054 billion, with components/devices (semiconductors) edging up 0.441% to $18.96 billion.

Electronic items — used as production inputs — were also the single biggest contributor to merchandise imports, accounting for 27.127% at $2.349 billion in August, down 6.039% from $2.5 billion a year ago, while components/devices (Semiconductors) dropped 14.399% to $1.555 billion.

Year-to-date, electronic imports actually grew 1.132% to $18,854 billion, although the components/devices (semiconductors) segment fell by 2.804% to $12.717 billion.

TYPE OF GOODS
By type of goods, manufactured items accounted for 83.232% of total merchandise exports at $5.203 billion, 1.092% more than the year-ago $5.147 billion. Year-to-date, exports under this category slipped by 0.221% annually to $38.841 billion.

This category was followed by exports of mineral products (6.852%) and total agro-based products (6.248%) amounting to $428.307 million (down 4.077%) and $390.557 million (1.836% more), respectively. Year-to-date, exported mineral products still grew 7.059% to $3.184 billion, while overseas sales of agro-based products increased by 8.132% to $3.307 billion.

In terms of imports, raw materials and intermediate goods contributed the biggest share of 35.322% to total value, falling 18.708% to $3.059 billion in August. Year-to-date, imports under this segment went down 9.96% to $26.46 billion.

Imports of capital goods came next with a 33.104% share or an import value of $2.867 billion, down 9.819%, while consumer goods placed third with a share of 18.896% at $1.636 billion. Capital goods imports still rose by 2.687% to $23,558 billion year-to-date, while foreign consumer goods bought 4.927% to $12.229 billion.

WARNING SIGNS
Noting the decline in importation of iron and steel (-44.2%), transport equipment (-29.1%), and industrial machinery and equipment (-15.3%), Security Bank Corp. Chief Economist Robert Dan J. Roces said in an e-mail that “The latest decline in imports… show that NG expenditures did not go into buying capital goods necessary for the infra[structure] spending program.”

“We reiterate that government expenditure, alongside household spending, will prove critical in driving growth to cope with a slowing global economy.”

For ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa, “With the import numbers showing a sustained pullback in investment machinery, third-quarter GDP may see capital formation struggle anew.”

“Sub-par growth will help convince the BSP to continue walking back 2018’s rate hike cycle with ING penciling further rate cuts in the first quarter of 2020,” Mr. Mapa said of the Bangko Sentral ng Pilipinas (BSP).

“Meanwhile, import compression coupled with surprise export growth moves in line with our fx forecast for only a mild depreciation for the peso by year end.”

MARKETS
The eight months to August saw the United States as the biggest market for Philippine goods with 16.429% at $7.663 billion, up 9.416%; followed by Japan (14.901% at $6.95 billion, down 0.549%); China (13.784% at $6.429 billion, up 7.483%); Hong Kong (13.297% at $6.202 billion, down -5.663%) and Singapore (5.414% at $2.525 billion, down 15.586%).

In terms of source of imports, China grabbed the top spot in the same eight-month period with 22.432% at $16.004 billion, up 13.084%; followed by Japan (9.429% with $6,727 billion, down 7.017%); South Korea (7.971% with $5.687 billion, down 21.976%) and the United States (7.222% with $5.153 billion, down 3.249%). — Jenina P. Ibañez

The rise of rice

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

Henry Lim Bon Liong
Chairman and CEO
SL Agritech Corp.

HENRY LIM BON LIONG believes that one seed has the power to uplift the nation. He claims that it only took one seed for him to disrupt the agriculture industry in the Philippines and, in the process, transform the lives of millions of Filipinos.

With a degree in Mechanical Engineering from the University of the Philippines-Diliman, Mr. Lim set his sights on agriculture.

His vision was to transform the Philippines into a self-sufficient rice producing country.

Mr. Lim established SL Agritech Corp. (SLAC), with the aim of empowering farmers by bridging the gap in food production and farming technology.

Mr. Lim founded SLAC in 2000 and has served as chairman and chief executive officer (CEO) ever since. However, his entrepreneurial journey began in 1976, when he took over as chairman of Sterling Paper Products after the death of his father, Lim Seh Leng.

At present, SLAC is part of the Sterling Paper Group of Companies.

Driven by his dream, Mr. Lim invested in property and infrastructure for SLAC’s research and development (R&D) efforts. His research led him to collaborate with the world’s top rice scientists at the International Rice Research Institute (IRRI).

Eventually, he sought the help of the man dubbed as the “father of hybrid rice”, Chinese agronomist, Yuan Longping.

Mr.. Longping devoted his career to developing high-yielding rice strains that helped solve the famine in China during the 1960s. He successfully developed hybrid rice varieties in the 1970s by crossbreeding a naturally-mutated male-sterile strain of rice with wild rice.

Mr. Lim invited Mr. Longping and three of his scientists to the Philippines in 1998, who brought with them 75 different hybrid rice seed varieties.

Unfortunately, none of the seeds survived the tropical climate as the hybrids Mr. Longping had developed were more suited to temperate climates.

Despite these setbacks, Mr. Lim’s mother, Maria Co Chiao Ti Lim, told him not to give up his search for a hybrid rice seed that was suitable for wet and dry seasons, even as the company’s funding became dangerously low after several years of investing wholly in R&D.

Her faith in his dream bore remarkable fruit, when in January 2001, Mr. Lim and Mr. Longping’s team were able to discover the first high-yielding, hybrid rice seed variety for the tropics. Mr. Lim attributes this discovery to his mother, who had passed away just two months prior.

Mr. Lim named his hybrid seed discovery, SL-8H, as a tribute to his late father’s initials and plot number 8, where the seed first germinated.

SLAC subsequently distributed the seeds to farmers across the Philippines for three harvest seasons. According to Mr. Lim, farmers reported a dramatic increase in their yield when they planted SL-8H seeds, as their harvest increased form 3 metric tons, to 14 metric tons.

Currently, SLAC is the market leader for hybrid rice in the Philippines, with 70% of the total market share. The company is focused on the development, promotion and growth of hybrid rice technology through its two major operations: hybrid seed production and premium quality rice production.

The commercialized hybrid rice seeds are sold to Filipino farmers and exported to Vietnam, Myanmar, Bangladesh, Indonesia and India. Farmers from Bangladesh and Myanmar similarly experienced a drastic yield increase due to SLAC’s hybrid seeds.

In Bangladesh, they jumped from 2.2 metric tons per hectare, to harvesting 9.5 metric tons per hectare. In Myanmar, farmers were able to yield 10 metric tons of seed per hectare.

Dr. Lim developed two brands for their rice products: Doña Maria premium rice and an affordable line, Willy Farms rice. To strengthen production capacity, SLAC engaged contract growers all over the country who exclusively produce rice for the two brands.

Today, the company has also expanded its network of contract growers to Bangladesh and Myanmar.

Mr. Lim further diversified his products with two additional variants of rice for the company’s Doña Maria premium line: Jasponica, a chewy, fragrant hybrid of Jasmine and Japanese rice; and Miponica, a soft, glutinous, long-grain hybrid of Milagrosa and Japanese rice. Both variants offer brown rice alternatives.

The company sells its premium rice to retailers, restaurants, hotels and catering services. It is also exported to countries across Asia, the Middle East, and North America.

Through Mr. Lim’s leadership, SLAC has attained international certifications from ISO (9001:2008), the Halal Authority Board Standard, and the United States Food and Drug Administration.

The company has also achieved other accolades including: the ASEAN AGROW Awards, the ASEAN Business Awards, the Agriculture Entrepreneurship Awards, the BizNewsAsia Asia-Pacific Entrepreneurship Awards, and the Agriculture Industry Asia-Pacific Entrepreneurship Awards.

On Aug. 6, Mr. Lim was conferred the Order of Lakandula by President Rodrigo R. Duterte, with the rank of Marangal na Pinuno or Grand Officer, for his lifelong commitment and outstanding contributions to the improvement of the country’s economic and civic welfare.

He was awarded with honorary doctorate degrees in Humanities and Science by the Foundation University-Dumaguete in 2013, and by the Polytechnic University of the Philippines in 2014.

Aside from being the country’s leading hybrid rice authority, Mr. Lim is also a philanthropist. He is dedicated to elevating communities through innovative programs that have helped countless beneficiaries in the country and across the region. Among these projects are the Rice Bucket Challenge and the Balik Biyaya program that were able to provide rice to over 50,000 families.

Mr. Lim is also swift to respond during times of national emergencies, by donating sacks of rice to calamity-stricken areas. During the Marawi City siege, he sent containers of Doña Maria Premium rice to the barracks after learning that soldiers were eating old supplies of rice.

In addition to his social work, Mr. Lim is equally passionate about education. He has built school buildings, donated school supplies and conducted feeding programs to help students in rural areas. He and his technicians are determined to educate farmers in advanced farming methods.

Farmers from the Philippines, Bangladesh, Myanmar, Vietnam, and other countries that use SLAC’s hybrid seeds, are trained by SLAC’s rice experts in modern farming techniques that will help them increase their yield and speed up production.

To other Filipino entrepreneurs, Dr. Lim shares, “Entrepreneurship takes guts. You will feel a lot of hardships, but you really have to weather them.”

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

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

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

VLL plans new bond offerings

VILLAR-LED Vista Land & Lifescapes, Inc. (VLL) is planning to raise as much as P40 billion from the domestic bond market, as it ramps up the expansion of its residential and commercial projects.

The listed property developer told the stock exchange yesterday it has filed an application with the Securities and Exchange Commission (SEC) for the shelf registration of fixed-rate retail bonds amounting up to P30 billion.

These bonds will be issued in tranches over a three-year period starting on the effective date of registration.

Vista Land also filed a separate application to offer and issue fixed-rate bonds amounting to up to P10 billion. The issuance will consist of P5 billion with an oversubscription option of up to P5 billion.

“Of the Offer Bonds, P5 billion will be issued as the last tranche of the existing P20-billion shelf program of the Company, while up to P5 billion shall be issued out of the New Shelf Bonds,” it said.

Vista Land has a P20-billion shelf registration approved by the SEC in July 2018.

The company’s board of directors has given the management authority to determine other details of the bond issuance plan, such as the terms and conditions of the offer.

In July, Vista Land was able to raise P14.5 billion through its five-year corporate notes which had a fixed rate of 7.125% every year. The returns are supposed to finance the expansion of the company’s commercial projects and other general corporate purposes.

Vista Land is allocating P40 billion for capital expenditures this year, the bulk of which is meant to help widen its residential and commercial portfolio.

The company booked an attributable net income of P5.7 billion in the first six months of the year, up 11% from a year ago, as its consolidated revenues rose 11% to P23.4 billion. — Denise A. Valdez

FDCP reveals incentive scheme for international films shot in PHL

THE Film Development Council of the Philippines (FDCP) has announced several location incentives for international productions and Philippine co-productions in order to encourage more international films to be shot in the country.

“There is no better way to underscore the celebration of the One Hundred Years of Philippine Cinema than to finally give our Filipino filmmakers and the Philippines the leverage that it needs to be globally competitive,” said FDCP Chairperson and CEO Mary Liza B. Diño in a statement.

“I’m excited to share this with the world because we have been lobbying for this since I started my term as head of this agency. I believe Busan is the perfect platform to launch this exciting program,” she added.

She announced the FilmPhilippines incentives during the annual Philippine Cinema Night at the Busan International Film Festival on Oct. 6 at the Haeundae Rooftop Bar.

The incentives include a cash rebate of between 10% to 40% of qualifying production costs with a cap of up to P10 million ($193,000) which may be availed through Film Location Incentive Program (FLIP) or the International Co-Production Fund (ICOF), and schemes that cover artist and technician fees, equipment rental, crew, film permits, accommodation, transport, and food expenses spent in the Philippines.

Full feature films in any genre and format — including web content series or content for alternative distribution platforms — shooting in the Philippines which will spend at least P8 million ($154,000) can apply for the FLIP provided that they are partnered with a “duly-registered Philippine line producer.” The incentive is meant to help the production and/or post-production process of the film.

Meanwhile Filipino feature film projects with international co-production in any format spending at least P8 million ($154,000) can apply for ICOF.

The FDCP accepts applications for projects at any stage — pre-production, production, or post-production.

“The FDCP expects a heightened artistic and technical exchange between Filipino film workers and the rest of the world’s film professionals through this program, as well as a surge in tourism revenues and business investments months after this incentive program is launched,” the statement read.

Applications for both incentive schemes will open by January 2020. More details about the FilmPhilippines Incentives can be found at www.filmphilippines.com. — Zsarlene B. Chua

MGen mulls entry into biomass energy

By Victor V. Saulon, Sub-Editor

MERALCO PowerGen Corp. (MGen) is studying new technology for its possible entry into biomass energy development to help address the country’s garbage problem through a waste-to-energy project, its president said.

“I think there might be a way of addressing [the garbage problem],” MGen President and Chief Executive Officer Rogelio L. Singson said in a recent chance interview. “I’m looking at new technology sa biomass because we have a lot of water hyacinth.”

He said the free-floating aquatic plant had been his “headache” when he was secretary of the Department of Public Works and Highways under the previous administration.

“Lahat nu’ng flooding sa (All the flooding in) Mindanao was caused by water hyacinth,” he said about the perennial plant that is known to clog waterways, trapping garbage and causing flooding where they thrive.

“And that’s organic. Ba’t nagtatanim ka pa ng (Why would you still plant) Napier grass,” he said, about another perennial plant that is grown to provide feedstock for biomass facilities.

He said there has to be a way to collect water hyacinth as feedstock for a biomass facility, which converts agricultural waste to electricity.

Mr. Singson said the company is looking at areas in Luzon for the biomass facility.

“But our second target would be microgrids,” he said, referring to energy systems that are independent from the main transmission grid, or the country’s network of transmission lines, towers and substations.

He said MGen was considering off-grid island provinces and municipalities that need energy development for their own use as the target location for its microgrid projects.

MGen is a unit of Manila Electric Co. (Meralco), the country’s largest electricity seller.

Meralco’s board of directors recently approved the request of MGen’s unit MGEN Renewable Energy, Inc. (MGreen) for a P424.2-million equity funding for its solar projects under development with a combined capacity of 210-megawatt peak (MWp) and a total estimated project cost of P10.01 billion.

MGreen earlier announced its plan to invest in 1,000 MW of renewable energy projects over the next five to seven years.

Besides advancing renewable energy prospects, MGen is also focused on utilizing high efficiency, low emission (HELE) technology for its baseload power plants.

It is the proponent of San Buenaventura Power Ltd. Co., which is pioneering the country’s first supercritical coal-fired power plant in Mauban, Quezon. The 455-MW plant is under construction and is scheduled for commercial operations in late 2019.

MGen is also planning to build an ultra-supercritical coal-fired power plant in Quezon province under wholly owned subsidiary Atimonan One Energy, Inc. The plant will have two units, each with a capacity of 600 MW.

MGen also plans to develop a two-unit coal power plant, each with a capacity of 300 MW in Subic, Zambales.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Companies must help workers reach personal goals, experts says

THE importance of employee personal goals is not well understood by most companies, which must find ways to help them achieve their own milestones while also contributing to productivity, a human resource association said.

Philippine Society for Talent Development (PSTD) President Fe Marie R. Cabantac said instead of training workers to meet company standards only, management should guide workers towards outcomes that meet both personal and company goals — an approach she called “disciplined dreaming.”

“When we say ‘disciplined dreaming’, it is the convergence of organizational and personal ambition. We are not discounting organizational ambition here. In fact the individual should contribute to the achievements of the organization’s mission and vision but at the same time, the organization should realize the dreams and aspirations of the individual,” she said in an interview with BusinessWorld Tuesday.

The PSTD, a network of human resource professionals, backs an approach that focuses on talent development. The association’s Talent Development Framework focuses on enhancing whatever skills and knowledge are already present in the worker.

Civil Service Institute (CSI) Executive Director Arthur Luis P. Florentin, who supports the framework, said that employee talent “is beyond standards.”

“The more that we have talented people, the more they will contribute to the competitive edge of the company. I’d like to differentiate competence and talent because when we talk of competence, we say that people are doing well and they are performing according to certain standards but we stop there at certain standards. Talent is going beyond the standards because it’s already been personalized,” Mr. Florentin told BusinessWorld Tuesday.

Mr. Florentin said talent development is different from training, adding “training is a limited approach in developing people.”

The framework starts with “Pagmulat” (enlightenment), which means discovering the latent talent to be developed; “Paghusay” (practice) which is practicing that talent until one becomes a master of it; “Paglaya” means freedom from standards that constrain progress of one’s talent development; and “Pagtagumpay” is affirming that talent.

During the PSTD National Convention held on Tuesday, Ms.Cabantac also added that there is also a need to make development more personal so it won’t be focused on the product and output of companies but also in a more invigorated workforce. She said during the event, “We need to humanize the way we train and the way we want people to learn.”

Asian Institute of Management (AIM) Dean Jikyeong Kang said a talent-centered workforce is vital to all industries but it still must be prepared for technological disruption especially now that industry is facing the Fourth Industrial Revolution. She told BusinessWorld on Tuesday, “Whether you’re a tech company or non-tech company, what’s really important is to focus on people acquiring the right talent and making sure you train.” — Gillian M. Cortez

Netflix’ Insatiable tackles the backlash in season 2

WHEN Insatiable first came out last year on Netflix, it was an immediately hit but spawned a backlash about fat-shaming. But its stars remind its audience — as it enters its second season, premiering on Oct. 11 — that this is a cautionary tale, not a morality tale.

“[Insatiable] is a cautionary tale. This is not a morality tale, we’re not saying this is what you should do — this is what can happen if you do the wrong thing or if you follow your impulses,” Debby Ryan, who plays Patty Bladell in the series, told reporters on Oct. 8 at the Shangri-La at the Fort Hotel in Bonifacio Global City, Taguig.

The premise of the show is simple: Patty Bladell is a high school student who has had to deal with bullying because of her weight. When an altercation leads to her jaw being wired shut and she has to go on a liquid diet, she loses weight drastically. Now that she’s considered conventionally pretty, a pageant coach and lawyer Bob Armstrong (played by Dallas Roberts) sees her potential as a beauty queen and she agrees, thinking that this is the way to get back at her bullies.

Then the show turns dark and bloody.

“People may think it’s a cute teeny-bopper show, but it’s not,” said Gloria Diaz, who guest-starred as a pageant coach and former Miss Universe Gloria Reyes, in the show.

Despite the backlash, the show was renewed for a second season and it starts off with the unfinished business that season one set up. It also addresses in its way the criticism leveled at the show.

“I’ve been working with someone who is so collaborative and so involved and [who] really cares about the nuances in the way that the story [is told]. So towards the backlash, she really does care about the intricacies of it and to be able to have those conversations with her every day on the set and ask why this person is doing this,” Ms. Ryan said noting that showrunner Lauren Gussis did listen.

“It was always less about how she looked and more about what every single woman and a lot of men experience in culture, which is this pressure to achieve this thing. or look this way. or fit in this mold… To me, it was always about making a story for a woman who has… found herself in dark places because of this unrealistic standard on all of us and this policing of women’s bodies,” Ms. Ryan said in defense of the show.

The second season — which this writer viewed before its premiere — does just that: it explores sensitive issues about recognizing when one has problems and seeking help, living as a mixed-race person, and trying to reconnect to one’s roots, among other issues.

But it’s still incredible messy, and funny, and self-aware.

Ms. Ryan noted that the beauty of working in the show is never knowing what comes next.

Like the role of Ms. Diaz, who first thought it was a prank when Netflix reached out to her to ask if she wanted to guest star in the show.

“I thought it was a joke at first, but then they followed up… and I said yes,” she said.

Her role is very much like her: Gloria Reyes was Miss Philippines and Miss Universe in 1969.

Although she is a guest star, her role is pivotal in the way Patty views her life after a short conversation with her.

“Queens take control,” Gloria Reyes tells Patty and that short sentence changes everything.

“I didn’t realize that but in the end, when I was thinking, it is true. Because when you win, you become the boss — they forget how difficult it was to get there and they forget everybody else… they forget the runners-up and the wannabes,” Ms. Diaz said.

When asked if her character — because of her line that changes Patty’s worldview — would usurp the role of Patty’s mentor from Bob Armstrong, Ms. Diaz said that Patty needs Bob to ground her even though Patty never listens to Bob.

“Bob is amazing. He is focused, he is flexible and goes back to where he started all the time,” she said.

Asked about the lengths Patty can go to in order to feel fulfilled, Ms. Ryan said that she believes “Patty has it in her to make things right.” It’s just that she never makes the right decisions.

“She feels that she wants to make things right. She has this need and this hunger. She thought it was food… then she thought it was pageants and winning… It’s never been enough,” Ms. Ryan said.

“If it hasn’t worked before, I don’t know what will fulfill her,” she added,

As the show goes from one stressful episode to the next — because it never does give one time to calm down from all the insanity from one scene to another — one wonders how it will all end. If Mr. Roberts has his way though, he said he’d love to end the series with “Bob and Patty walking while the world burns behind them.”

Insatiable Season 2 premieres on Netflix on Oct. 11. — Zsarlene B. Chua

Davao retail chain NCCC prepares to handle cashless transactions

DAVAO CITY — Homegrown retail chain New City Commercial Corp. (NCCC) is positioning for more cashless transactions with Thursday’s launch of the NCCC Mastercard in partnership with Metrobank Card Corp.

The card aims to provide NCCC shoppers with more convenient payment options and financial flexibility. It will also provide access to exclusive discounts and promotions in NCCC’s supermarkets and other retail chains.

Lafayette A. Lim, chief executive officer of the NCCC Group of Companies, said apart from the NCCC Mastercard, they are also working on electronic wallets and other systems like prepaid and postpaid services.

“NCCC is already preparing for.. and working on going cashless transactions,” he said.

The NCCC credit card replaces the existing NCCC Kanegosyo Rewards Card used by wholesalers and sari-sari store owners. Regular rewards card holders may also avail of the credit card.

“If you use cash, you still need to present your rewards card to earn points, but if you use your Mastercard, you don’t need to anymore show your NCCC rewards card because the Mastercard and NCCC rewards card are already linked together,” Joseph G. Uy, chief information officer of the NCCC’s LTS Pinnacle Holdings, Inc., explained.

The NCCC Mastercard can also be used in other shops nationwide as well as for online shopping.

“This is something new to us and we are all excited. I hope this would be successful and make this program beneficial not only to our company but to our Kanegosyo partners and customers,” Mr. Lim said. — Maya M. Padillo

Bed Bath & Beyond hires Target executive as CEO

BED BATH & BEYOND Inc. on Wednesday hired Target Corp’s Mark Tritton as chief executive officer, months after its long-time head, Steven Temares, left the company under pressure from activist investors, sending its shares up 23%.

Tritton joined Target in 2016 and is currently its chief merchandising officer. He takes over his new role at the houseware retailer in November, Bed Bath & Beyond said in a statement.

At Target, he was responsible for store revamps, private-label brands, product sourcing and design.

Tritton, who has 30 years of experience in the industry, also played a major role in doubling sales of department store chain Nordstrom Inc’s private label business.

His appointment comes at a time when Bed Bath & Beyond is struggling to keep pace in a rapidly changing retail landscape, dominated by the popularity of online shopping.

Earlier this year, a group of activist investors had piled pressure on Bed Bath & Beyond, citing falling sales under Temares’ leadership. Its sales have fallen in eight out of the past 14 quarters.

Since then, the company has cut jobs and eliminated key executive roles in its attempts to reduce costs.

Chris Kiper, managing director at Legion Partners Asset Management and one of the activist investors that pushed for a change at the company, cheered the appointment.

“We are so excited that he is joining (Bed Bath & Beyond),” Kiper said.

Tritton’s focus at Bed Bath & Beyond will be to enhance store and online experience and improve its product offerings, the company said.

“While it remains to be seen if he is the right person for the job, the merchandise improvements at Target during his tenure have been impressive, particularly the repositioning within home and apparel,” Gordon Haskett analyst Chuck Grom said.

Separately, Target named company veteran Michael Fiddelke chief financial officer and said two executives would assume interim leadership of the retailer’s merchandising organization, which comes months ahead of the crucial holiday shopping season. — Reuters

Two Popes filmmakers hope Pope Francis is amused

LONDON — Director Fernando Meirelles is a fan of Pope Francis but says his new film, which tries to get into the head of the Argentine pontiff, also shows some of his weaknesses.

The Two Popes is based on the story of Pope Benedict’s dramatic retirement from the papacy in 2013 and the ascendancy of Pope Francis and imagines some of the conversations the two men might have had.

“I did the film because I’m a big fan of Pope Francis. I think he’s a very important voice in the world today,” Meirelles said at the London film festival on Monday.

“He sees the planet as one thing and he’s trying to build bridges while everybody wants to build walls. So I decided to make the film to know him better and even to support what he says,” he added.

“It’s very honest. We show the mistakes that he’s done some 30 years ago in Argentina. But in the end, he comes across like somebody we should support,” the Brazilian filmmaker said.

The film, starring Anthony Hopkins as the traditional Pope Benedict and Jonathan Pryce as his more liberal successor, is set mostly in a movie set replica of the ornately decorated Sistine Chapel in the Vatican.

“It was just such a great character to play, showing his flaws and his weaknesses as well as his very positive strengths and what he can do as a kind of leader which we desperately need in political life these days; someone who can show us the way and show us how to live and go back to the old Christian values,” Pryce said.

The Netflix movie launches in US movie theaters in late November and on the streaming service in December. It is not known whether it will be screened at the Vatican.

“If he (Francis) sees it, I hope he is amused. I hope he isn’t angry. And I hope he understands that what we’ve tried to portray is the essence of the man and what he is trying to do,” said Pryce. — Reuters

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