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Getting ready for Industry 4.0

By Mark Louis F. Ferrolino, Special Features Writer

AS THE first business newspaper in the Philippines and in Southeast Asia, BusinessWorld has successfully positioned itself as the benchmark of quality economic journalism with high regard to integrity and excellence. It has been recognized as the most respected and most read business daily, delivering in-depth news stories, critical commentaries, interesting features, and special reports.

With today’s fast-changing times and landscape, BusinessWorld goes beyond traditional economic and business reporting. It began staging valuable events that serve as a great platform for industry and government leaders to converse on pertinent issues and challenges affecting the country. The now 32-year-old newspaper company has proven that it can also be a reliable partner of both the public and private sectors in shaping radical solutions and innovative ways that contribute to the growth of the Philippine economy.

Just recently, the country’s leading business daily once staged its award-winning BusinessWorld Economic Forum with the theme “The Future of Business: Next-wave Disruptions & Opportunities.” The whole-day forum brought together thought leaders, industry experts, business executives, government policymakers, innovators, academicians, technology providers and other leading figures in the society who shared their insights on the promises and risks of technology and how they could impact businesses over the next 10 years.

The recently held BusinessWorld Economic Forum gathered more than 700 high-level attendees from different sectors in the country. Just like in the previous years, the event served as a venue for the attendees to network with other top executives, build a good business relationship and discuss vital issues.

In addition to the annual BusinessWorld Economic Forum, BusinessWorld has also been organizing timely events in the past years that garnered positive remarks from the attendees. These include the BusinessWorld Stock Market Roundtable and the BusinessWorld Cybersecurity Forum. BusinessWorld, indeed, raised the bar in organizing local business events.

This Sept. 9, BusinessWorld is once again making history with the first-of-its-kind BusinessWorld Industry 4.0 Summit, which will be held at Shangri-La at The Fort, Bonifacio Global City in Taguig City.

The Industry 4.0 Summit will be presented by BusinessWorld, in partnership with the Department of Information and Communications Technology (DICT) and the Philippine Chamber of Telecommunications Operators (PCTO). With the theme “Winning Together in the Fourth Industrial Revolution,” it will gather the best minds from the public and private sectors to discuss how the Philippines and businesses can prepare and collaborate well to thrive and win in the impending Fourth Industrial Revolution, also known as Industry 4.0.

According to Klaus Schwab, founder and executive chairman of the World Economic Forum, the Industry 4.0 will be driven largely by the convergence of digital, biological and physical innovations, which will unfold over the 21st century. Just like the three industrial revolutions that preceded it, Industry 4.0 is envisioned to significantly change how we live, work and play with the fusion of advances in artificial intelligence (AI), robotics, the Internet of Things (IoT), quantum computing, and other technologies.

The upcoming BusinessWorld Industry 4.0 Summit will focus on the said things, which will serve as an eye opener to where the businesses are heading, said BusinessWorld Executive Vice-President Lucien C. Dy Tioco.

“Industry 4.0 Summit will educate the audience what these technologies are and what impact they could do to your business. On the other side, it is showing the effect of these technologies in different industries: How it’s going to change the telco industry? How smart homes and smart cities will thrive and how they will change our lifestyle? There are several opportunities abound with these new technologies for the different industries,” Mr. Dy Tioco said.

For PCTO Chairman Enrico L. Delos Reyes, it is important for businesses to understand what Industry 4.0 is all about, together with the emerging technologies associated with it, for them to adjust and evolve in the future.

“If you’re in a business, you have to understand where the things are going and what are the things needed. So, you will have expectation and anticipation,” Mr. Delos Reyes said. “If you know the direction and the vision involved in this revolution, you can prepare yourself better and customize the evolution in your business.”

The BusinessWorld Industry 4.0 Summit will be a whole-day conference packed with various topics that will deal on aligning the country’s national ICT development agenda to IR 4.0; understanding the Fourth Industrial Revolution and its effects on economy, business and governments; preparing the country for the Fourth Industrial Revolution; and strong leadership and right legislations amid IR 4.0.

The summit will consist meaningful panel discussions, to be moderated by BusinessWorld editors. The first discussion on “The Valuable Player: Telco Industry’s Key Role in the IR 4.0 Game” will delve into how can telecommunication companies adapt to the changes the Industry 4.0 will bring. The second panel discussion — “Transformation Allies: How Government and the Public Sector can Maximize the Developments brought by IR 4.0” — will discuss how can emerging technologies transform the public sector. The third discussion, “The Era of Progress: Identifying Opportunities in Philippine Commerce during IR 4.0,” will tackle the opportunities await in the commerce of the future and how can the country harness them.

Meanwhile, the discussion on “Investing for the Future: How IR 4.0 will Shape the Banking and Finance Sector” will discuss the role of traditional banks in a world of digital currencies, decentralized and cashless transactions. The fifth discussion, “Connecting the Links: How the Real Estate, Transport and Manufacturing Industries Can Collaborate to Prepare for IR 4.0,” will tackle how can these industries further improve with the help of technology. The last discussion — “A Smart and Friendly Tomorrow: A Look at Smart Cities and Tourism in the IR 4.0” — will focus on how the way of life will change.

Mr. Dy Tioco hopes that the Industry 4.0 Summit will be instrumental to gain the attention of the government in crafting policies that will enable emerging technologies to come in. “It’s critical because it’s making our country competitive to other countries who have already started looking at these technologies,” Mr. Dy Tioco said.

Metro Pacific Hospital Group to hold first-ever Job Fair Caravan

MANILA, Philippines, 31 st July 2019 – Metro Pacific Hospital Holdings Inc. (MPHHI) will conduct its first-ever, one-day only Job Fair Caravan with nine of its partner hospitals at the SM Megamall Megatrade Hall 3 in Mandaluyong, 10:00AM-7:00PM to hire nurses, allied health care professionals, and other medical-related professionals right on site.

Being the largest private hospital chain in the Philippines with a collective portfolio of fourteen (14) top-notch hospitals, eight (8) clinics, and unparalleled service, Metro Pacific Hospital Holdings Inc. (MPHHI) thrusts to provide quality medical healthcare to Filipinos as well as create an engaged group of healthcare professionals aimed to deliver a genuine experience through a culture of caring, quality and excellence. As one of its main goals for this year, the hospital group aims to directly address both the unemployment and underemployment situation of several medical-related course graduates and medical practitioners in the country.

As it is known, the Philippine hospital industry is still in dire need of competent and dedicated individuals who are willing to serve and save the lives of people when they need it most. Even though an excessive number of graduates of medical-related
courses have flooded the employment pool, there is a definite scarcity of practicing health professionals, doctors, nurses, midwives, etc. in the Philippines.

In addition, several medical professionals continuously search for greener pastures by finding employment overseas instead of the Philippines. In recent years, the group has seen common concerns and issues on the continuous migration of nurses and healthcare professionals, as well as the more aggressive talent acquisition strategies and tactics of local hospitals and recruitment agencies. By the same token, the perceived lack of viable employment opportunities hinders these educated individuals from finding jobs that allow them to practice their professions in hospitals, leading them to fulfill careers in other fields.

To address this existing unemployment problem, MPHHI aims to not only showcase and ideally fill up the vacancies in their operations, but also exhibit the existing and expanding network of hospitals under its umbrella – an objective that highlights the group as a stable community of companies where these fresh graduates and professionals can build their career with competitive advantage.

Through this effort by the MPHHI Hospital Group, interested applicants are given the opportunity to directly apply to a pre-selected, industry-specific selection of jobs in strategically located hospitals and clinics throughout Metro Manila and the Philippines. The first-ever MPHHI Job Fair Caravan is providing a streamlined venue that allows them to see the various options they have for hospital employment within the country.

“We take pride in the fact that MPHHI is committed not only to transforming hospitals by investing in the best equipment, improving infrastructure and delivering world-class health service to Filipinos nationwide but also by making our hospitals, employers of choice by nurses and other medical practitioners.  A number of our hospitals have received several awards for being the best employers in the industry.” says MPIC Human Resources Head Loudette Anne M. Zoilo. “We aim to reach out to all medical
practitioners and provide them the chance to be part of our hospital group, delivering quality of service while taking advantage of the synergies of our group operation.”

The participating hospitals under MPHHI are as follows: Makati Medical Center, Central Luzon Doctors’ Hospital, Our Lady of Lourdes Hospital, Asian Hospital and Medical Center, Cardinal Santos Medical Center, Marikina Valley Medical Center, Sacred Heart Hospital, St. Elizabeth Hospital, and Mega Clinic.

Interested applicants are expected to bring with them copies of their updated resumés, as well as any other supporting documents that they deem necessary for job application. It is also expected of them to be prepared for face-to-face interviews and possible examinations. Job offers will be given right on the spot.

EDITOR’S NOTE:

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Drop the sedition charges

The filing of sedition charges against Vice-President Leni Robredo and 35 other individuals who are identified with the so-called “yellow opposition” is alarming.

One can dismiss it as political harassment. The accuser, after all, lacks credibility. The Philippine National Police itself says that the accuser named Peter Joemel Advincula, aka Bikoy, is a fraudster and a criminal. His affidavit, even upon cursory reading, is foolish and laughable.

What motivates this act of harassment? Is it another tactical ploy used by the Rodrigo Duterte administration to distract the public from sensitive issues like the weak-kneed foreign policy and the political infighting that mars the last half of the administration’s term? Is it the initiative of the Marcos camp to unseat the Vice-President in light of the inevitable quashing of Bongbong Marcos’s poll protest?

Or is it the brutality and hubris of those in power who want to crush criticism and dissent? The use of threat, coercion, and violence to sow fear among the people and to subdue all types of opposition is evident. Pursuing mercilessly the war on drugs, slaying and detaining radical Left activists, condoning — if not encouraging — extra-judicial killing and other human rights violations, and arbitrarily using legal instruments to subdue the political opposition are all part of Duterte’s authoritarian playbook.

The President, through his spokesman, disavows involvement in this latest move to suppress the opposition. But the political reality is that the Philippine National Police (PNP) Criminal Investigation and Detection Group would not dare file sedition charges involving no less than the Vice-President and other prominent personalities without a go-ahead signal from above.

In this political case and other similar conditions, the PNP and, for that matter, the Armed Forces take their cue from Malacañang. A recent statement from Duterte regarding his preference for appointing men with military background is quite revealing (“Duterte to announce changes in Cabinet,” Manila Bulletin, July 19, 2019): “I assume maybe again a military man kasi madali mag-utos, magtrabaho (they are easy to order, to work). And they do it without a question. Kaya sabi ko sa kanya (So I tell them), when I tell you do this and do that, do not question me because I will never give you an order to do something that is illegal.” Whether the President never gives an illegal order is debatable, but the point here is that he likes military people who without question will follow orders.

Despite the prevailing authoritarianism, our people still value democracy. Duterte is indeed lucky that the people are very satisfied with his administration’s performance, thus giving him a lot of political capital to do things.

Vice-President Leni Robredo during the celebration of the Foreign Correspondents Association of the Philippines’ 45th anniversary — OVP

The latest objective data on growth, income, inflation, and poverty also show that his administration is delivering the services that the people want most in providing jobs and higher wages, stabilizing prices, and reducing poverty.

Yet, as acknowledged by the administration’s economic managers, much still has to be done to put in place the necessary reforms. In fact, economic performance resulting in better lives for the people could have been better if not for controversies, including the political polarization, which are disturbing to investors.

But the political polarization is unnecessary to advance the Duterte administration’s economic and political agenda. Duterte, after all has gained overwhelming political dominance. In the same vein, having a social consensus and welcoming multi-partisan participation will accelerate the fulfillment of the desired development goals that the administration is committed to.

Cooperation, even among enemies, is preferred to never-ending combat and retaliation that would ultimately harm everyone. The ploy of filing sedition charges against the political opposition runs counter to this approach.

And there is an interest to protect even for those in the administration. Political polarization impairs their reform agenda. Political polarization undermines unity and prevents an inclusive approach that would enable society to achieve prosperity.

The reformers within government should note this and take action to reverse polarization. Drop the ludicrous and baseless charges against Vice-President Robredo et al.

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

EVs making full charge

Text and photos by Kap Maceda Aguila

IT’S CLEARLY boiling down to a question of when, not if.

The pace of mobility electrification in the Philippines is increasing, with the Electric Vehicle Association of the Philippines (eVAP) leading the, well, charge. The annual Philippine Electric Vehicle Summit (PEVS), now on its seventh staging, again served as a signpost for and indicator of how far the country has gone and where it will go next in the journey to full electrification.

Themed “Electric Vehicles: Modernizing the Transportation Landscape, Driving Sustainable Growth,” the PEVS was staged last week at the SMX Convention Center, Mall of Asia Complex, Pasay City.

Images of man-made and induced catastrophes such as wars and global warming provided some shock value to a gathered audience even as it contrasted with a hopeful window into how tomorrow can be much, much different. “We’re going to make it a better world,” sang Krystal Brimner, who wound up the opening presentation.

Talk about disruption and shifts continue to underpin the gradual, more widespread adoption of emission-free electric vehicles (EVs). This change is being reflected even in the way companies are envisioning themselves — such as car makers calling themselves mobility brands, and gas firms transitioning into energy companies.

Of course, the onus of shrinking our carbon footprint is not just in the hands of automakers (or mobility brands), but our need to get from here to there is an undeniable contributor to greenhouse gases choking us to the tune of seven million deaths a year from upper respiratory illness. It then behooves the people who are churning out automobiles to have them be more environment-friendly. These days, going greener invariably means EVs.

“We are highly encouraged by the support we are getting from major automotive manufacturers which is a very strong indication that our transportation sector is slowly but steadily transitioning to more modern, energy-efficient, greener and sustainable mobility so that we can create cleaner and better cities for our children,” said eVAP President Edmund A. Araga in a release. “Accelerating our country’s transition to fossil-free driving would require, more than ever, the help of our academic institutions in terms of research, innovation, industry linkage, trainings, among others. That’s why this year, we are launching the eVAP Academe Chapter to help close the knowledge gap that is holding back our countrymen from choosing electric vehicles and to help our local EV industry address the barriers to widespread EV adoption.”

Delivering a speech at the PEVS, Mr. Araga exhorted all to continue to provide an “enabling environment for the commercialization of EVs in the Philippines.” Intrinsic to a more conducive industry is for players to have more “clarified roles.” The eVAP head also revealed that the association welcomed four new corporate members into the fold, namely, Kymco Philippines, Lagao Drivers Operators Transport Cooperative, Development of Electric Conveyors Corporation, and Autoitalia Philippines Enterprises, Inc.

In anticipation of heightened battery demand, eVAP also signed a memorandum of understanding with the Philippine Nickel Industry Association so that the two entities may have a closer linkage resulting in research programs, an industry road map, and corporate social responsibility efforts — not to mention a local battery supply chain.

Mr. Araga also cited Senate Bill 2137, filed late last year by Senator Sherwin Gatchalian. The act seeks to provide for “the national energy policy and regulatory framework for the use of electric and hybrid vehicles, and the establishment of electric charging stations.”

On the bill’s introduction, Senator Gatchalian writes, “Notwithstanding the contribution of electric vehicles to energy security, sustainability, and savings, barriers still remain for the development of the industry, specifically the high upfront costs of owning an electric vehicle, and the limited charging infrastructure. Thus, it is crucial that a policy and regulatory framework is in place to usher in the uptake of electric vehicles in the country.”

The bill seeks to “instruct” the Department of Energy (DoE) to create an EV road map and distribution utilities to incorporate a charging infrastructure development plan into their power development, require private and public buildings and establishments to EV-dedicated parking slots with charging stations, mandate open access to integrate charging equipment in gas stations, expand non-fiscal incentives “such as exemption from number coding and prioritization in registration,” and give “time-bound fiscal incentives” for EV manufacturers and importers.

eVAP is also doing its part to encourage allies in the EV campaign by relaunching the E-Mobility Award to “recognize organizations and individuals for their outstanding contribution to the realization of eVAP’s vision and mission through successful EV deployments, advocacy efforts, or through innovations that aim to simplify and increase the electrification process.”

Meanwhile, eSakay, Inc. President Raymond Ravelo declared that there has never been a “more energizing time” for EVs and charging infrastructure as new business models roll out. eSakay is a wholly owned company of Manila Electric Company (Meralco) that purveys electric vehicle solutions. He cited that improvement in battery technology, among others, has contributed to the global rise of EVs from 500,000 in 2015 to a projected 560 million in 20 years. “One of three vehicles in 2040 will be an electric vehicle,” he said.

He insisted, in a speech, that a sign of this “exciting transition in the country” is the increasing number of e-jeepneys plying the streets, along with the deployment of e-trikes by LGUs. “I wouldn’t be surprised to see electric buses and taxis (next),” added Mr. Ravelo. Even the recent proliferation of “electric micro-mobility” solutions such as e-scooters and e-motorcycles augers well for the future of EVs — so long as there are “enabling policies and regulatory frameworks.”

Department of Energy Assistant Secretary, speaking on behalf of the department head Alfonso Cusi, acknowledged that “policies play a critical role” in greater EV adoption. There must be “incentives, standards, (and) support for charging infrastructure,” while bridging the “cost gap” between EVs and conventional vehicles. “For an EV movement to be successful… (we need) to establish partnerships, (have) political will and incentives to build capacity.”

EVs have become more meaningful in light of the Public Utility Vehicle Modernization Program (PUVMP) of government, said Department of Transportation (DoTr) Undersecretary Mark Richmund de Leon. He described it as the “biggest transformational initiative of the administration,” as the government seeks to showcase modern vehicles nationwide, including EVs, in order to push for the replacement of aging public transport.

USec. De Leon rued “the sad truth” that 90% of public transport are more than 30 years old, and that jeepneys in particular “are not designed for public transportation,” but are merely a “stop gap.” He also lamented that “we have yet to adopt clean air standards” despite the passing of Republic Act No. 8749 or the Philippine Clean Air Act way back in 1999, which states in its Declaration of Principles: “The State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature,” while recognizing that “polluters must pay.”

“Let’s clean up public transportation,” said the DoTr official. “We’re providing comfort to our riding public; the dignity that they deserve.”

ILLUSTRATION BY TONE DAÑAS

Tapos na ang boksing

“I get to punch a senator in the face,” Keith Thurman said of Manny Pacquiao days before their welterweight championship boxing match on Saturday in Las Vegas. It was a TKO, even before the undefeated 30-year-old American WBA (Super) Welterweight World Champion climbed into the ring to exchange fisticuffs with Filipino boxing icon and reigning WBA (Regular) Welterweight World Champion, boxing’s only eight-division world champion, 40-year-old Senator Emmanuel “Manny/Pacman” Pacquiao.

It does not even matter who won the match. Somehow Thurman hit a deathly metaphorical blow to the Filipino psyché that allowed itself to descend to crass physical spectator sport, insisting on recognition at that lowest, most violent arena, when the Filipino soul and intellect can compete and be known for dignified higher excellence. There is an indefinable deep hurt with each jab to sensibilities as Pacquiao is pummelled and trashed in an animal fight — he is more than “our bet,” he is our Senator. Thinking and feeling Filipinos wish he would stop boxing and making millions of dollars, and just be a Senator. Some may have blasphemed his honor by hoping Pacquiao should finally lose and end his duality.

But perhaps the Filipino should look into himself and discern a most disconcerting parallel of the Pacquiao syndrome with the descent of the collective consciousness into compromised values and the violence upon tradition and principles. “How did we manage to descend so low?” veteran journalist and rights fighter Vergel Santos asked in an opinion piece on Rappler, “Duterte’s word replaces the Constitution” (July 20). “When President Duterte said, on national television, that the Constitution is nothing more than toilet paper, yet provoked in us little more than sparse and momentary lip protest, he got us where he wanted us…,” Santos said. We were led in the descent into deterioration, and we allowed it.

“Tapos na ang boksing,” the boxing match is over. Just like Senator Pacquiao’s dignity and ours was lost before the bout was won, there will have been a decision forced on the Filipino people that after the pummelling over the past year, all is well with the country, economically and politically. The fourth State of the Nation (SONA) address of President Rodrigo Duterte for his third year of incumbency will be held today, July 22, at 4 p.m., at the Batasang Pambansa before the Legislative and Judicial bodies co-equal with the Executive, and some 3,000 guests. The SONA will be covered live on national television and radio.

Three Cabinet clusters, Mr. Duterte’s “managers and trainers” as in a boxing match, have been preparing for the SONA with a series of fora to drumbeat his achievements in his first three years. Presidential Spokesperson Salvador Panelo said on TV that the first forum, called “Patuloy na Pag-unlad” (Continued Development) by the Economic Development and Infrastructure Cluster, was held on July 1 in Manila. On July 10, it was the Human Development and Poverty Reduction Cluster and the Participatory Governance Cluster’s “Patuloy na Malasakit at Pagkakaisa” (Continuing Care and Unity) forum in Cebu City. “Patuloy na Katatagan” (Constant Stability) by the Climate Change Adaptation, Mitigation and Disaster Risk Reduction Cluster and Security, Justice and Peace Cluster was held on July 17 in Davao City. The President’s SONA will be short, Panelo said.

Unlike other presidents before him, the President need not talk about legacy in his mid-term SONA, political science professor Hansley Juliano of the Ateneo de Manila University says (BusinessWorld, June 26, 2019). Duterte will rant, “appealing to his purported mass and propertied bases, keeping them consolidated and personally loyal to him. This demagoguery is consistent with nearly every 21st century non-democratic regime in the world today, and Duterte’s, needless to say, is no exception,” Prof. Juliano predicts. “The Duterte presidency’s persistent disregard of the separation of powers has only been boosted by the midterm election results. More justices of the Supreme Court are slated to be appointed this term. Super majorities are nearly guaranteed in both the Senate and the House of Representatives — especially with the loss of significant fiscalizing voices from the sectoral/party-list bloc,” Prof. Juliano laments.

But first let us see who will be Speaker of the House of Representatives. Today, in the morning (before the afternoon SONA), Congress will meet to choose the Speaker. In a CNN Philippines talk on July 20 with anchor Pia Hontiveros, political analysts Manolo Quezon and Ed Tayao tried to predict who will be Speaker — and the implications of what a “surprise” it will be, if Mr. Duterte’s term-sharing choice of Allan Peter Cayetano and Lord Allan Velasco will not be ratified by the majority of the House. Both analysts decried the loss of the “sacred” separation of powers in democratic governance by Duterte’s “breaking the taboo” and anointing the Speaker.

Mr. Quezon spoke candidly of the three candidates and their characteristic traits and standing, three factors for the House to consider. Martin Romualdez is the “thoroughbred” from political dynasties. Quezon thinks “Romualdez might crash in like a GMA (Gloria Macapagal-Arroyo).” Lord Allan Velasco is an “unknown” who has no track record and no cache of loyalties from peers; and Allan Peter Cayetano is an “original” who knows how things work in the House and in the Senate, but is widely unliked among his peers. Mr. Tayao ventured that “the next Speaker could be a Martin (Romualdez).” Quezon thinks it might still be Cayetano, because “he was endorsed by Senator Bong Go,” and he (Cayetano) will “kick” if not given what he was promised. There may not even be term-sharing, but a full 21-month term for the next Speaker of the House. Let us see who will be the winner in this “boxing match,” really between Romualdez and Cayetano, the two analysts seemed to infer.

Journalist Ina Andolong suspects that there might be a “coup” brewing in the House as to the choice of Speaker (“Politics as usual,” CNN Phils. July 20). If this happens, and Mr. Duterte’s declared choice(s) do not win, then it might show that the president’s hold over the overpowering majority in Congress is failing. Or it might also be a smokescreen to bring in the best man who can really deliver in behalf of the House, Duterte’s legislative and political agenda.

There are urgent issues to be tackles over the next three years of Mr. Duterte’s administration, which he must address with his biases, for his political survival. The United Nations has declared investigations on human rights transgressions in the Philippines and he is personally enraged at the “prejudging” of his drug war. The allision of a Chinese vessel upon a boat manned by 22 defenseless Filipino fishermen at the Reed Bank has opened deep wounds among the Filipino people over Duterte’s neglect (or denial?) of the country’s already-won claims in the West Philippine Sea. He has not signed the Security of Tenure Bill which he promised while campaigning to be president — now swinging back to studying “endo” because the Foreign Chambers of Commerce and even local big businesses are saying it is bad for the economy.

The economy is good, but the Philippines is at a medium GDP growth of 6.4%, compared to erstwhile laggard ASEAN neighbors Cambodia (7%), Vietnam (6.8%), and Myanmar (6.6%), according to the Asian Development Bank’s latest statistics. Could it be because the Philippines is the least peaceful country in the ASEAN (philstar.com, Nov 11, 2017)?

Yes, President Duterte must address the growing culture of violence in the country. It feels like a Thurman has punched the Filipinos in the face.

 

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

AVID continues recovery, posts slight gain in first half of 2019

THE ASSOCIATION of Vehicle Importers and Distributors, Inc. (AVID) sold 43,333 units in the first six months of the year, a slight 1% increase versus the same period in 2018. In the second quarter of 2019 alone, AVID reached a total of 21,134 units — a 5% increase versus Q2 2018.

“Despite headwinds that include an economic slowdown in the first quarter of 2019, AVID posted a third straight month of positive growth to finish the second quarter strong. We believe that this slowdown is temporary since the Philippines is now on a higher growth path and is a leading economy in the ASEAN. Given these, we will continue to introduce exciting models and innovative services to give consumers more value for their money,” said AVID President Ma. Fe Perez-Agudo.

AVID’s Passenger Cars (PC) dipped by 4% in year-to-date sales with 15,336 units sold versus same period last year, while in Q2 alone, sales rose to 7% with 7,422 units against Q2 2018. Hyundai remains consistent as AVID’s top volume driver for PC with 9,458 units sold in 2019.

The Light Commercial Vehicles (LCV) segment grew 4% in year-to-date sales with 27,331 units sold versus the same period of 2018. In Q2 2019 alone, LCV sales recorded an increase of 4% with 13,383 units sold versus Q2 2018. The LCV segment remains to be AVID’s top volume driver which is led by Ford with 10,552 units sold followed by HARI with 7,690 units and Suzuki with 6,611 units sold in the first half of 2019.

Commercial Vehicles (CV) segment sales in Q2 saw an increase of 2% with 329 units sold versus same period last year. The overall YTD sales of CV units gained 1% with 666 units sold versus the same period last year. Hyundai trucks and buses continues to dominate the CV market with over 500 trucks and buses sold from January to May 2019.

AVID recently held the first Landscape automotive industry briefing which focused on the adoption of electric vehicles (EV) in the Philippines.

Alongside Electric Vehicle Association of the Philippines (eVAP) Executive Director Jose Bienvenido Manuel Biona, AVID called for increased collaboration among automakers, a viable road map for EV adoption, and competitive incentive packages from the government to encourage investment in the industry.

“This goes beyond our respective businesses,” Ms. Agudo said. “This is about leaving a lasting legacy for future generations. We believe in doing business right and through the EV space, we will boost the overall competitiveness and sustainability of our country for years to come.”

Why China is unlikely to go away anytime soon

THE last task undertaken by the famous economist John Maynard Keynes was to secure a huge bilateral loan (around $50 billion in today’s terms) from the US to help a bankrupt Britain after World War II. The war had devastated the British economy, which until then was still adapted to wartime production, and the loan was badly needed to procure capital equipment and consumer goods and to maintain British military presence throughout its still-vast empire. The strain of the negotiations — the Americans driving a shockingly hard-nosed bargain — contributed to the untimely death of an already-ailing Keynes even before he had turned 63.

That Britain needed to muster (and indirectly cause the death of) its most brilliant economic mind to perform an essentially menial and mendicant function — negotiating a loan with US bureaucrats — was symbolic of Britain’s post-war desperation and its decline as a world power. It was poignant and pathetic but an unmistakable sign that Britain’s time had passed.

Fast-forward to today. Some thoughtful people wonder whether we shall now witness something similar in our lifetime (or our children’s) in relation to the US. Perhaps the time of the US has also passed and it is China’s turn at the helm? Which Nobel Prize-winning US economist will one day also travel to Beijing to plead with mere Chinese bureaucrats not to dump but rather to continue buying US Treasury bonds?

Nothing is certain, of course, and the US is still by no means a dead horse. But enough signs exist to give long-term historians pause. Among these are the growing insularity and protectionism of the US (only exaggerated under Trump), its preoccupation with its domestic fiscal troubles and its race and culture wars, as well as its equivocation over foreign military entanglements (partly also a fiscal problem). These contrast starkly with the confident posture of China, which now styles itself, ironically, as the new champion of “free trade,” globalization, and the multilateral trading system — even as it audaciously projects its economic and strategic influence in many parts of the world. (Hello, West Philippine Sea!) Indeed America’s newfound scrappiness under Trump is itself an admission that the US was on its back foot all along. (Hence the second “A” in MAGA.)

Those who doubt the significance of China’s rise can point to how the US is still the world’s largest economy, China’s GDP being only 65-70 percent that of the US’s. Chinese labor productivity is also only one-fifth that of the US, and US GDP per capita is three and half times that of China’s (in Purchasing Power Parity $ 2018). And finally, not to forget, the US is still by far the world’s preeminent — if increasingly diffident — military power: it has 23 times the number of China’s nuclear warheads; 24 aircraft carriers to China’s one; and 14 nuclear submarines to China’s seven (even neglecting quality differences).

So from this viewpoint — which may well be that of the Trump administration — one might think China’s rise can still be stopped if only one could block the unfair advantages China has thus far enjoyed. These include its easy access to US markets, its industrial espionage and copy-catting of US intellectual property, its burdensome restrictions on foreign investments, and its sporadic exchange-rate manipulation. MAGA indeed!

Two factors however work against this project, suggesting that this is like closing the door after the Chinese horse has already left the US barn, having eaten much of the hay.

One is the sheer size of China’s middle class. Decades of rapid growth have resulted in a fact reported by Credit Suisse in 2015: that the number of Chinese individuals with the same net worth as a middle-class American ($50,000-$500,000) had exceeded the latter in number (109 million versus 92 million). But even that is an understatement. If we use a lower global threshold for middle-class net worth, say $10,000-$100,000, we get the results shown in the Table. By this measure, Chinese persons already make up 40% of the world’s adults who are middle class or richer. The US and Europe together constitute less than 30%.

The significance of this fact cannot be overstated. It is the reason China is already the world’s largest consumer market for everything from smartphones, to washing machines and refrigerators, to automobiles, to air travel. It is even closing in on the US in film box-office revenues — which is why Matt Damon might continue to make bad movies set in China (viz. The Great Wall) and Hollywood can in good conscience produce mindless action flicks with minimal dialogue (Furious 7 earned more in China than in the US).

That last bit is important. Part of US economic pre-eminence is built on a cultural hegemony — pop culture and the aspirational consumer lifestyle are still defined primarily in Western and American terms. When economic hegemony passed from Britain to the US, a cultural and linguistic continuity was nonetheless preserved that created a large market (e.g. witness the back and forth from Chuck Berry to the Beatles to the Monkees). This time is different, however. A US state department official recently described the rivalry with China as “the first time we will have a great power competitor that is not Caucasian” (Whoops!). For its part, China faces the hurdle that it cannot readily hitch its commerce onto the prevailing culture. Chinese is still not cool. So its brand equity must be based solely on price and technology.

It is uncertain how far China’s market dominance will ultimately reshape the world’s cultural norms (or conversely how far the Chinese middle class itself will adopt Western tastes and values). We do know of course that it’s already reshaping politics. But capitalism can and will always adjust itself to the paying customer, and enough money will always go a great way towards changing even the most established norms and cherished values. So there is bound to be some trend in world commercial culture to cater for Chinese tastes and even politics. Facebook, for example, has agreed to develop censorship software just to enter the Chinese market. To suit Chinese tastes, GM is said to have incorporated feng-shui principles, gone overboard on luxury, and used monotone colors (reminiscent of ink-wash painting). As the old German saying goes, Wes Brot ich ess, des Lied ich sing (Whose bread I eat, his song I sing.)

Bottom line for us civilian bystanders who are neither big producers nor big consumers: it’s time to get used to pesky Chinese subtitles in Hollywood films. Or, more culturally ambitious still, maybe it’s time we learned to adorn our prose with lines from Chinese poets instead of Shakespeare or Whitman. Here’s one by the way from Li Bai (701-762) that seems to describe the government’s war on drugs:

“When the hunter sets traps only for rabbits, tigers and dragons are left uncaught.”

(To be continued.)

 

Emmanuel S. de Dios will be professor emeritus at the University of the Philippines beginning August.

Aboitiz InfraCapital submits revised plan for Bohol airport

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By Denise A. Valdez
Reporter

ABOITIZ InfraCapital, Inc. submitted to the Department of Transportation (DoTr) last week the revised concession terms for its proposal to operate and maintain the Bohol-Panglao International Airport.

Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. told BusinessWorld the DoTr received the company’s revised concession agreement for the new airport in Bohol, in addition to the revised plan for the Ninoy Aquino International Airport (NAIA) submitted by the consortium of seven conglomerates.

“Panglao also submitted,” he said in a text message over the weekend.

The submission of revised concession terms from airport proponents came after the DoTr said last month it wants all airport deals to be patterned after the concession terms for the Clark International Airport.

This means all concession agreements, even those that were already given to the National Economic and Development Authority’s Investment Coordination Committee (NEDA-ICC), were returned to original proponents for revision.

Transportation Secretary Arthur P. Tugade said having the Clark concession agreement as a template for all airport deals will hasten the process of negotiations with the private entities, as this was already reviewed and approved by the NEDA-ICC.

Mr. Reinoso said the DoTr has so far received two revised concession agreements — for NAIA and Bohol-Panglao airport — and targets to provide feedback on these within the week.

“We’ll try to complete line by line review by next week,” he said Saturday.

Both the “super consortium” and Aboitiz InfraCapital were given original proponent status for its NAIA and Bohol-Panglao International Airport proposals in September.

Aboitiz InfraCapital is also part of the NAIA consortium, together with AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc.; and Metro Pacific Investments Corp.

Aside from the two proposals with the DoTr, Chelsea Logistics and Infrastructure Holdings Corp.’s bid for the Davao International Airport and Mega7 Construction Corp. for the Kalibo International Airport are pending submission of revised concession agreement.

The 2020 GR Supra is an enduring icon for Toyota

By Ulysses Ang

WHEN CAN it be said that a vehicle captures the essence or “DNA” of its manufacturer? When it sets new benchmarks for quality and value? When it becomes a leader in its segment, selling many millions around the globe?

The answer, for Toyota, would be “all of the above,” with models like the Vios, Innova, Camry, and Fortuner perfectly matching those criteria for years or even decades.

At the opposite end of the spectrum, a different set of standards defines another brand icon: the Supra. Specifically, the fourth-generation Supra, known inside Toyota as the A80 and by its many fans as the “Mk. IV,” has come to exemplify the brand’s illustrious performance and racing heritage. It is the car that most inspired the 2020 GR Supra, the A90.

The fourth-gen Supra was then the pinnacle of a series that began in 1979 as an upscale version of Toyota’s popular Celica sport coupe. The Supra evolved, in quantum leaps, into a benchmark sports/GT with supercar-level performance.

The “Mk. IV” Supra became a design and performance touchstone, achieved global acclaim and inspired owners to start clubs, Web sites, social media pages, and national events. It also became a pop culture star and is today a sought-after collectible.

The new GR Supra is the culmination of 50+ years of Toyota sports car heritage, infused with the spirit of the fourth-gen model thanks to its striking design, turbocharged 3.0-liter inline six-cylinder engine and driver-centric focus on world-class performance. Supra’s journey to this point has not been simply a lineage of cars, but also a story of dedication from designers, engineers, racers, a Toyota CEO passionate about sports cars and, most critically, Supra owners and fans.

Years after production of the Supra had ended, many inside Toyota, including its CEO, Akio Toyoda, were eager for a sports car revival. The 86 got things started in 2012 as an affordable yet highly capable sports coupe praised for stellar handling. That model instigated talk that something more potent could be coming.

In 2014, Toyota created the FT-1 concept car. “FT” meant “Future Toyota” and “1” indicated “ultimate.” The car’s extroverted shape clearly alluded to the previous Supra, and it certainly got the boss’s attention.

The link between past and present is visibly clear today. The FT-1, at a quick glance, almost seemed like a fourth-gen Supra turned into a 21st-century superhero’s ride. Meanwhile, its “double-bubble” roof, wraparound windshield and side glass openings were distinct nods to the classic 2000GT, and those elements, which together suggest a racing helmet and visor, carried over to the GR Supra.

Toyota craftily worked with Polyphony Digital, creators of the popular Gran Turismo driving simulator, to put the FT-1 into the PlayStation game. Company executives then “drove” the FT-1 in timed laps around a virtual Fuji Speedway. Mr. Toyoda, an accomplished racecar driver, completed the circuit faster than his best real-world lap time at Fuji in his Lexus LFA.

The boss was sold. The Supra got the green light.

Fast-forward to 2019, the fifth-generation sports car is the first-ever Supra to be made available officially in the Philippines. Sold through 16 GR Performance-certified dealerships, the 2020 GR Supra is available starting at P4,990,000 for the Prominence Red color; P5,050,000 for the Lightning Yellow, Deep Blue Metallic, White Metallic, Silver Metallic, Ice Gray Metallic, and Black Metallic; and P5,090,000 for the Matte Storm Gray.

MacroAsia eyes IPO for water business within three years

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TYCOON Lucio C. Tan’s MacroAsia Corp. is planning to hold an initial public offering (IPO) for its water businesses within the next three years.

“Considering the opportunities, we envision to grow further our water business, with our mind set to eventually spin off and list this segment separately at the Philippine Stock Exchange within three years,” Lucio K. Tan, Jr., MacroAsia director, said at the company’s annual stockholders’ meeting last Friday.

MacroAsia Chief Financial Officer Amador T. Sendin told reporters the listing may happen even before 2022, as activities are now ongoing for the planned IPO.

“We’re currently transferring the holding of the shares. It’s currently under MacroAsia Properties Development Corp. We’re putting it under a water holding company. This one takes time,” he said.

MacroAsia Properties Development Corp. currently serves as the vehicle for MacroAsia Corp.’s water businesses, which covers the development and construction of water treatment facilities across the country.

Among its businesses are Naic Water Supply Corp. (NAWASCOR); SNV Resources Development Corp. (SNVRDC); Mabini Pangasinan Resources Development Corp. (MPRDC); Panay Water Business Resources, Inc. (PWBRI) and Watergy Business Solutions, Inc. (WBSI).

Also under MacroAsia’s water business are Cavite Business Resources, Inc. (CBRI); Boracay Tubi System, Inc. (BTSI); MONAD Water and Sewerage Systems, Inc. and New Earth Water System, Inc. (NEWS).

Mr. Sendin added the company is currently working on building the revenue and income base of its water businesses for the planned listing.

Last year, MacroAsia’s water segment booked a 90% increase in revenue to P271.04 million, driven by its acquisition of Summa Water Resources, Inc. and continuous revenue streams from water operations in Nueva Vizcaya, Cavite, Boracay, Bulacan, Albay and Iloilo.

With the creation of a water spin-off, Mr. Sendin said MacroAsia can focus on its core businesses: the aviation and food segments.

“The intention of MacroAsia Corp. is to focus on its core. These are related to aviation services and at the same time the food side. The capital allocation policy for the water segment is currently different from the aviation services. It will help us if we can separate this, and that’s the logical reason for the separation,” he said.

MacroAsia still largely depends on its in-flight catering business for revenues, as this segment accounted for 46% of the company’s total revenues last year at P1.66 billion.

It also deals with ground-handling and aviation, which contributed 39% to MacroAsia’s total revenues last year at P1.46 billion. — Denise A. Valdez

FOTON Gratour MiniVan 1.5: The P570,000 8-seat MPV

By Manny N. de los Reyes

MOST CAR MODELS that come with various engine displacements or seating configurations usually have substantially higher prices for the variants with the larger engine size or greater seating capacity.

FOTON didn’t seem to get the memo — because their Gratour MiniVan, which previously had a 1.2-liter engine and seven-seater capacity, now has a 1.5-liter motor and eight-seat capacity. And it still retails for an eminently affordable P570,000.

Since the seven-seat Gratour MiniVan 1.2 was unveiled in 2015, it has been sought after by first-time car buyers due to its versatility, generous space, and very affordable price. Aside from being able to serve as an efficient and reliable people- and cargo-mover for families, it is also used for delivering goods for businesses, especially in the provinces. Although FOTON has seen plenty of success in the area, the new iteration brings more than enough to the table to also make an impact in the urban settings of Metro Manila.

To this end, FOTON concentrated in revamping the Gratour MiniVan’s packaging, making it more efficient in terms of space, comfort, and performance.

From being powered by a 1.2-liter gasoline engine, FOTON has powered up the all-new Gratour MiniVan with a 114hp, 150Nm Euro 4-compliant 1.5-liter engine. Power is sent to the front wheels via a five-speed manual transmission. Engine noise is now much less, resulting in a more comfortable drive. Plus it now has electric power-steering to make maneuvering even more effortless.

The exterior of the new Gratour MiniVan has been revamped with a new front grille, upswept headlights, sculpted character lines, taillights that extend up and flank the rear window, and new 175/70R14 tires mounted on alloy wheels. The versatile interior professes a sense of simplicity, tidiness, and overall comfort.

The new Gratour MiniVan 1.5 drives almost as easily as its smaller stablemates despite its larger dimensions. Although the wheelbase is the same as the first generation (a generous 2,710mm — about the same as most executive sedans), the new model boasts of additional space for passengers and cargo, as the seating capacity was upgraded from seven to eight, maximizing or even further monetizing its utility and functionality. The third row seats are also designed to fold for maximum cargo space.

The 8-seater Gratour also boasts of five doors, two of them are sliding, enabling much easier ingress and egress — even in tight parking spaces. Its ground clearance makes it easy for small children or PWDs to get in and out of the vehicle as well.

When you throw in the seat belt reminders, over-speed alarm, Anti-Lock Brake System and Electronic Brake Distribution, this practical Gratour MiniVan isn’t as spartan as it may first appear. It also scores points with a keyless push-start button, too.

With that P570,000 price tag, this 8-seater makes an attractive choice over the other MPVs, which are some P200,000 more expensive. So while the Gratour MiniVan may not be shifting goalposts in its class yet, it does stand out in terms of space, purpose and value for money.

Does cheering improve performance?

By Tony Samson

Big crowds filling up the stadium, the din of rhythmic chanting, and the sheer enthusiasm of urging a team to victory make up the cheering factor in an event, be it a competition or a rock concert. Can companies use cheering to help the team achieve targets like claiming back market share, raising customer care indices, and bringing up the bottom line numbers?

Can the organization raise its adrenaline level with a cheer rally?

The town hall meeting aims to achieve this feat of exhorting the troops to charge. It bonds the management team with its employees to achieve targets and crush the competition.

Employees are gathered together, in a big office conference room rather than an off-site venue which can be too expensive even with an exchange deal. The chief or a hired consultant, maybe foreign, leads the cheer rally. An evangelical kind of fervor can be employed to get the team behind a new initiative, say announcing a new management team — argh… here are your new saviors.

The pep rally is an approach borrowed from college sports. All the cheering and jeering effort hopes to inspire the team to do better when it hears people shouting and screaming at goals made, leads diminished, and opportunities missed by bad officiating. This faith in the fans’ role may be misplaced but does not seem to be challenged by the charged-up supporters who truly believe they make a difference in the outcome. Even the players thank their fans after a win.

This same conviction drives the urge for a corporate pep talk. It’s micro version is the personal pat on the back, the loyalty award, and even the warm greeting at the elevator — Hey, how’re you doing? The cheering effect rests on the conviction that the company is one team, and even the lowly employee has a stake in a successful corporate initiative about to be implemented, even if this was made without his inputs. (Yes, don’t we all love to fill up daily time sheets?)

This process of inclusion is called a buy-in. It’s an emotional investment in corporate goals by all the peasants in a big tent where they can even ask questions. The corporate town hall meeting is gaining popularity, even if it disrupts everyone’s schedule. While it’s a bit awkward to include actual cheers to get the adrenaline pumping, it is acceptable to invest the effort with a nice catchy slogan. A downsizing exercise can be promoted as “small is beautiful.”

It’s a challenge to convince CEOs to use the pep talk as a motivational tool. They prefer sending out e-mails which dispenses with the need to serve pizzas. With an e-mail blast, the sender does not need to see the audience’s body language or, worse, encounter a wave of coughing and washroom disappearances which are the equivalent of booing at unpleasant news and the one delivering it.

Difficult topics like bad numbers requiring the organization to redefine its priorities and scale back its operations are best sent out as e-mails which have the added advantage of not needing to have a quorum. In the never-off corporate culture, even those out of the office get to feel the ripples of anxiety wherever they are.

The pep rally has its variations. Not every meeting, after all, involves a corporate crisis. Sometimes there is good news to share like the company winning an award or the numbers breaking records. A small get-together, sometimes called coffee with the president, can be more acceptable to a CEO who prefers to speak softly, bringing along an associate he feels comfortable with to fill up the silences with comic relief when the conversation hits an air pocket. A small audience can also be pre-selected on the basis of its high obsequiousness index. The whiners who routinely question corporate directions need not be invited.

Should the position of Chief Cheering Officer (CCO) be established? Her functions will include organizing events and finding things to cheer about within a prescribed budget.

Or is cheering already part of the CEO’s functions? Being at the top of the pyramid gives the leader a unique perspective of where the company is going and what needs to be done to achieve its mission statement. On the other hand, having too much information can hold back his enthusiasm. After all, the CEO may need cheering up himself.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

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