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Lacking job security, Filipino call center workers face AI threat

WORKERS around the world fear they may be displaced by artificial intelligence (AI). — REUTERS/DADO RUVIC/ILLUSTRATION

MANILA — Mylene Cabalona has been taking calls for foreign companies from the Philippines since 2010, the same year when the country overtook India to become the world’s call center capital of the world, employing more than half a million people.

Since then, Ms. Cabalona has seen business process outsourcing (BPO) become the largest private sector job provider in the Philippines, now employing some 1.3 million people.

The sector has faced many challenges — from a lack of workers’ rights to occupational health risks — but now many fear they could lose their jobs altogether due to artificial intelligence (AI).

“Multinational companies came here because of our skill in customer care,” she told the Thomson Reuters Foundation. “And that’s the first to be displaced by AI.”

Along with remittances from Filipinos working abroad, BPO is one of the main engines of the Philippine economy, contributing around $30 billion a year.

The growth of AI creates demand for some new jobs such as AI trainers or content moderators but could render thousands of low-skilled jobs in call centers obsolete. The government plans to address the problem by retraining workers to work with AI.

But for Ms. Cabalona, who also leads the labor association BPO Industry Employees’ Network (BIEN), the promise of upskilling workers to tackle the challenge of AI should go hand-in-hand with resolving deep-seated issues such as lack of labor rights within the industry.

ARE CALL CENTERS READY FOR AI?
More than half of the 60 companies surveyed this year by the IT and Business Process Association of the Philippines (IBPAP) said they were “actively working” on integrating AI into their workflows.

Ten percent of the companies said they had fully implemented AI technology, with customer service or support services, data entry and processing, and quality assurance roles most impacted.

While investing in AI tools is not cheap, industry experts foresee significant cost savings by automating BPO jobs.

But it is not without its issues. David Sudolsky, chief executive officer of Boldr, an outsourcing company with offices in the Philippines, South Africa, Mexico and Canada, said automation of the lowest-skilled jobs, primarily in e-commerce, had made it harder to hire new people or backfill some roles.

“If AI reduces the volume of entry-level roles that BPOs and call centers once provided, what’s next?” asked Mr. Sudolsky. “I think there’s a significant risk of displacement.”

For Mr. Sudolsky, the industry will no longer scale with “hundreds of thousands of jobs” for fresh graduates like before but may introduce “roles requiring technical skills and comfort with tech tools,” like training chatbots and algorithms.

BPO companies have long striven to cut labor costs, replacing staff with new and cheaper hires, and now by AI.

Ms. Cabalona said the only way to protect BPO workers was to create labor unions to lobby for wage increase, security of tenure and health and safety at work.

“But BPO in the Philippines is a non-unionized industry,” she said, and the government “seems to want to keep it that way as a catch to investors.”

Ms. Cabalona said workers were summarily dismissed “if the client no longer wants you because they feel like you’re not productive, or not meeting their metrics.”

UPSKILLING WORKERS
Ms. Cabalona said Filipino BPO workers were trained in voice and soft skills, such as being able to empathize.

She said this created a huge skills gap between traditionally trained call center agents and those with the technical ability to work with AI and are able to use AI tools to answer customer queries, annotate or label data for AI or train AI bots for audio or text.

Mr. Sudolsky said the looming AI shift may favor people with a tech mindset and leave other workers behind.

“Is training BPO workers to use AI enough to secure their employment? It’s a minimum requirement, but those who really understand AI are the ones who’ll thrive. Those who don’t engage with it may need to find new jobs,” he said.

The government and private sector see upskilling of BPO workers as a solution to address possible job displacement.

IBPAP said many BPO companies were “proactively training their employees to acquire the specific skills needed for AI-augmented operations.”

This includes training them in programming, data science, data analytics, and AI ethics.

But beyond upskilling, Ms. Cabalona said the labor rights of BPO workers must first be protected.

“Multinational BPO companies are here because they wanted to lower production costs and earn more profit and often, workers’ unions are present in their countries,” she said.

BIEN supports the proposed House Bill No. 8189 or the Magna Carta for BPO Workers, which proposes a standard entry-level and living wage for the industry.

“One legislator even told us we’re in a better position than some overseas Filipino workers who suffer abuses. Why is it like that for BPO workers? We deserve better,” Ms. Cabalona said. — Thomson Reuters Foundation

The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.

Enhancing export competitiveness through sustainable practices

The ribbon-cutting ceremony kicking off National Exporters’ Week was graced by (from L-R): Philippine Trade Training Center (PTTC) OIC Executive Director Fe Avila; Bureau of Customs (BoC) Port Operations Service Acting Director Atty. Geniefelle P. Lagmay; Department of Trade and Industry — Export Management Bureau (DTI-EMB) Director Bianca Pearl R. Sykimte; DTI Undersecretary Allan B. Gepty; ASEAN-Japan Center Secretary-General Kunihiko Hirabayashi, MD, PhD; DTI Undersecretary Ceferino S. Rodolfo; Philippine Exporters Confederation, Inc. (PHILEXPORT) President Sergio R. Ortiz-Luis, Jr.; PHILEXPORT Trustee for Garments Sector Diana H. Santos; ASEAN-Japan Centre Research and Advocacy Cluster Assistant Director Ishida-Yasushi; PHILEXPORT Trustee for Metals Sector Bernardo T. Benedicto III (back); and PHILEXPORT Trustee for Fabrics Sector Robert M. Young.

The constant call for sustainability has been felt by industries, pushing each to modify their strategies and transform their processes in ways that are not detrimental to the environment they work with. Likewise, the Philippine exports sector sees sustainability as an essential driver of its future, raising the need for stakeholders to foster greater understanding and more collaborative actions to enable exporters to nurture a responsible environment and deliver sustainable products and services.

Recognizing this need, the Department of Trade & Industry (DTI) Export Marketing Bureau (EMB), in collaboration with the Philippine Exporters Confederation, Inc. (PHILEXPORT) and the Export Development Council (EDC), centers this year’s National Exporters’ Week (NEW) on discussions about advancing the country’s export industry through sustainable innovation.

Presidential Proclamation 931, series of 1996 and House Resolution No.33 declared the first week of December as the Exporters’ Week to obtain total government and private sector commitment to continuously sustain export promotion and development.

Department of Trade and Industry Undersecretary Ceferino S. Rodolfo opened this year’s National Exporters Week with the theme “Sustainability: Shaping the Future of Philippine Exports” and highlighted the vital role of sustainable practices in driving the growth of the export sector.

Happening this Dec. 2-6 at the Conrad Manila, NEW 2024 is anchored on the theme “Sustainability: Shaping the Future of Philippine Exports.” As part of the broader objective of the Philippines to be an Agile Export Powerhouse in Key Export Industries, the 2024 theme focuses on the importance of adopting sustainable practices as a core strategy in building long-term competitiveness and growth of Philippine exports. The theme emphasizes the importance of sustainable materials and production methods, ethical sourcing, cost-effective strategies, and responsible supply chains to ensure long-term competitiveness. The theme also seeks to contribute to the country’s goal to transform the Philippines into Southeast Asia’s hub for smart and sustainable manufacturing and services by empowering the private sector through market-based tools.

A highlight of the NEW 2024 will be the National Export Congress (NEC), which aims to emphasize the growing importance of sustainable practices in driving the future of the export industry as shaped by market regulations, business practices, and consumer preferences. The congress will gather key stakeholders to examine the impact of sustainability regulations in global markets and to explore how sustainable practices can shape businesses and help them meet evolving consumer demands.

PHILEXPORT President Sergio R. Ortiz-Luis, Jr. delivering a message during the Opening Ceremony, focusing on the role of government and private sector in “developing and nurturing export winners.”

NEC 2024 will have four sessions. The first session, titled “Sustainability Practices and Regulations in the International Market,” will delve into the dynamic and evolving landscape of sustainable exporting, emphasizing the significant role of current and emerging government regulations. The impact of market regulations and trade policies will be a central point, examining policies that are designed to promote greener practices among exporters.

Session 2, titled “Sustainability from the Business and Consumer Perspectives,” will look at the current sustainability practices of businesses and the broader impact of these efforts. The discussions aim to delve deeper into the growing awareness on the importance of sustainability and how it is shaping trends, influencing consumer behavior, and affecting economic dynamics worldwide.

Also, during the congress, select Philippine exporters will be recognized at the third session for their achievements and contribution to the country’s export industry. Select government agencies will also be recognized for their significant contribution in supporting and facilitating the growth of exporters.

Capping off this gathering, the fourth session will feature initiatives aimed at creating opportunities for women-led businesses to thrive in global markets while promoting sustainable trade practices. Select sustainability initiatives in the country will also be presented to support efforts Philippine businesses to adopt sustainable business practices.

Aside from NEC, the NEW 2024 features thematic sessions on various export-related topics, particularly those promoting responsible supply chains, ethical sourcing, and innovative production methods.

Day 1 of the National Exporters Week: Usapang Exports discussion on Free Trade Agreements focused on the Philippines and Japan relations was led by PHILEXPORT Executive Vice-President Senen M. Perlada.

A series of information sessions under “Usapang Exports” to equip exporters on sustainability and market trends. Key sessions include discussions on maximizing the benefits of free trade agreements (FTAs) with Japan and the launch of the Philippine FTA Information Portal, both on Dec. 2

On Dec. 3, “Usapang Exports” held a session catering to women-led or owned businesses under the SheTrades Philippines Hub, as well as another where DTI trade attachés will lead a deep dive into digitalization and sustainable practices in international markets.

Day 2 of the National Exporters Week: Usapang Exports session on “Know Your Markets” with the PHILEXPORT Vice-President for Advocacy, Communications and Special Concerns Ma. Flordeliza C. Leong moderating the discussion with trade attaches for Guangzhou, Vice-Consul Froilan Emil D. Panganiban; Brussels, Magnolia Misolas-Ashley; UAE, Vichael Angelo Roaring; Malaysia, Norjamin G. Delos Reyes; and Los Angeles, Eric C. Elnar.

Aside from “Usapang Exports,” the NEW 2024 features “ARISE Plus Philippines” sessions, which aim to contribute to unlock business opportunities for Philippine micro, small and medium-sized enterprises (MSMEs) in the European Union (EU) market.

Accounting for 99.5% of all enterprises, MSMEs represent 60% of the country’s exporters, and generate 25% of export revenues, which is higher than in other ASEAN countries. The EU market represents substantial market opportunities for Philippine businesses. It is estimated that the EU market represents a further USD 11 billion worth of unrealized export potential for the Philippines. Philippine exports to the EU, however, remain comparatively low relative to those of other ASEAN countries.

The “ARISE Plus Philippines” sessions will included the EU-Philippines Partnership Conference on Dec. 4, delving into the market opportunities and challenges for exporters in the EU market, with a particular focus on the implications of the EU Green Deal. Following the conference, on Dec. 6, in-depth masterclasses will provide practical guidance on ensuring food product compliance with EU regulations and navigating the upcoming EU Deforestation Regulation.

The NEW 2024 also showcases select Philippine exporters at the Exporters’ Exhibit from Dec. 2 to 5, culminating in the Export Enablers Exhibit, where key government agencies and private sector partners will provide direct assistance to Philippine exporters. The exhibit runs daily throughout the NEW from 9 a.m. to 5 p.m., and it is open to the public.

Grand Taipan marks ninth year with the unveiling of Verano Greenhills: A new chapter in luxury urban living

Grand Taipan proudly unveiled Verano Greenhills, a majestic 57-floor mixed-use residential development situated on Annapolis Street. The event was held on Nov. 30, 2024. The new development represents the company’s commitment to luxury urban living and innovative architectural design.

Bank representatives and future homeowners were among those gathered with eager anticipation to explore the residential jewel that seamlessly integrates modern luxury with suburban serenity. The goal of Verano Greenhills is to redefine urban living, offering hotel-grade facilities that foster a tranquil and enriching environment for its residents.

With its strategic location, Verano Greenhills offers residents the best of both worlds: easy access to the city’s pulsating energy and a quiet refuge from its hustle and bustle. The residential development is set to be handed over to residents in January 2025, in line with the city’s blueprint for progressive urban expansion.

The celebratory event included an elegant dinner at Icho Japanese Restaurant, cementing relationships among partners and clients. A notable highlight of the evening was the ceremonial illumination of Verano Greenhills, a beacon of innovation and sustainability, followed by a breathtaking fireworks spectacle that enthralled attendees.

As Grand Taipan looks to the future, Verano Greenhills stands as a testament to its vision for a more sustainable tomorrow, inviting the community to adopt a lifestyle that balances modern conveniences with ecological mindfulness.

For additional details about Verano Greenhills, kindly visit veranogreenhills.com.

 


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AboitizPower sees strong 2024 finish

ABOITIZ POWER CORP. has set a growth strategy of adding 3,700 megawatts (MW) of new renewable energy capacity en route to 4,600 MW by 2030. — ABOITIZPOWER.COM

ABOITIZ POWER Corp. (AboitizPower) expects to close 2024 with a strong performance, driven by new capacities coming from its power plants and improvements in infrastructure, its president said.

“We’ve got immense availability, more capacity coming online, growth in our distribution business, improvements in our infrastructure. So many small things all adding up,” AboitizPower President and Chief Executive Officer Danel C. Aboitiz told reporters last week.

For the nine months ending in September, AboitizPower registered an attributable net income of P27.27 billion, up 2% from last year’s P26.74 billion.

Gross revenues declined by 4% to P148.32 billion from P154.64 billion a year ago.

Given the positive earnings for the nine-month period, the AboitizPower executive expects the company’s growth momentum to continue toward the end of the year.

“I think we’ll meet our targets, and I think we’ll exceed the consensus of the analysts,” Mr. Aboitiz said.

For 2024, AboitizPower has earmarked P73 billion in capital expenditures (capex), more than double the P26 billion last year.

Of the total, 72% of the capex is allocated for its renewable energy pipeline.

The company has set a growth strategy of adding 3,700 megawatts (MW) of new renewable energy capacity en route to 4,600 MW by 2030.

As part of the initial phase of 1,200 MW, the company energized its 17-MW binary geothermal power plant in Tiwi, Albay, and the 159-MW solar plant in Laoag, Pangasinan.

The rest of the P73-billion budget for 2024 is allocated towards further improving the reliability of AboitizPower’s baseload power plants, land acquisition, and new substations and meters for its distribution business.

At present, the company has around 3,962.25 MW of total attributable net sellable capacity. Sheldeen Joy Talavera

The chocolate man

CMV Txokolat’s Christian Valdes is focusing on luxury chocolate that is distinctly Filipino

WHEN we bite into chocolate, we only get its taste, and it becomes easy to ignore all the processes that go into making a tiny bite. The chocolate that Christian Valdes, founder of CMV Txokolat, brings attention to all the work everybody else has done to bring the chocolate from bean to bar — for him, he’s simply the last link in a chain extending hundreds of years.

Recently, Mr. Valdes received his Level 1 and 2 cacao bean grader and taster accreditations from the International Institute of Chocolate and Cacao Tasting (IICCT). The desire to earn a certification came from his studies in France under Chloe Doutre, one of the world’s best chocolate makers. “There were concepts that I unlearned the moment I walked through that door,” he said during an event with Moda Interni in November.

He cites learning more about fermentation, drying, and roasting: “If you mess up on one thing, you can actually ruin six months of growth.”

A box of his pralines can go for up to P2,400.

Mr. Valdes shot to fame with his unique chocolates in the mid-2010s because of his use of Filipino ingredients: he has a Gin Pomelo praline, one with calamansi (a Philippine citrus), another with santol (cotton fruit), then barako coffee, and our personal favorite, his gumamela (hibiscus) praline infused in a white chocolate ganache then placed in a dark chocolate shell.

Since he recently started working with the Department of Science and Technology (DoST), he can now be found going through fields and up mountains.

“They wanted me to be a point person to teach the farmers how to not only analyze the quality of their beans, but they also wanted me to be able to show them how to make tablea chocolate (chocolate used for hot chocolate drinks) — that way, they can not only taste the fruits of their labor, but they can also turn it into something, and create other revenue streams,” he said.

In other work he’s doing for the DoST, they are also trying to figure out where else cacao can be grown in the country. One of their concentrations is in Kalinga, in the Cordilleras.

“There are so many parts of the Philippines where cacao can grow. We are in that green spot. Now what I really want to be able to do is highlight the cacao in that area. I do find that there is terroir,” he said, using the term from the wine industry referring to the characteristic taste and flavor that is imparted to something by the environment in which it is grown. “Some of the flavors in the soil actually contribute to it,” he said of the cacao. “They’re trying to break free from the norm where they are just known for planting tobacco, rice, coffee, sugarcane. They want to be able to try bringing cacao in,” he said.

“That way, we can boost tourism, and also boost buying. That way, the farmers can earn more.”

Mr. Valdes grew up in San Francisco, California, and had a string of “boring” (his word) jobs before coming to the Philippines in 2010, and starting his chocolate business soon after. He remembers his first taste of really good chocolate — Scharffen Berger chocolates which his mother brought in a balsa-wood box. “Little squares about that big. It’s at 93%. When I bit into it, I was like, ‘holy shit; I thought that 93 was going to be bitter…’ I already knew at that point in time that I loved chocolate.”

He goes deeper into his love for Filipino ingredients, including the aforementioned gumamela: “It was really my way of remembering. I don’t have the best memory… but it was kind of learning about the Philippines; learning about my roots.

“I didn’t have a childhood here,” he said. He heard stories of his friends blowing bubbles out of the flower: “I never experienced this. It was like recreating what childhood is like here. It’s innocent, it’s fun.”

More importantly, however, he says that using Filipino ingredients is a way to break free from importation, and its effects on local farmers: “We’re importing so much of it that we’re losing our industry, and we’re not giving focus on the (people) who need it.”

Of all the industries he could enter, chocolate is the one he chose, because, “I love it. It reminds me of family. It makes me feel safe. It gives me comfort.  If it’s my safe place, and it brings me peace, that’s where I want to be.”

He’s taken what is a luxury product to something truly artisanal: asked about what all his studies in cacao and his work with farmers has taught him, he says, “It’s actually made me more humble. When I first started, I had this mindset — I’m doing this, it’s cool — but then, the more I learned, I realized that this is a profession for patience; a profession where you go and help other people. This isn’t a profession for ego and thinking you’re the best.”

CMV Txokolat can be found at https://cmvtxokolat.com/shop/.Joseph L. Garcia

MSpectrum tapped for Laguna solar project

(L-R) EKPI Country Finance Director Archimedes Angeles, EKPI President Alexander Ong Oh, MSpectrum President and Chief Executive Officer Ma. Cecilia M. Domingo, and MSpectrum Chief Operating Officer Patrick Henry T. Panlilio.

MSPECTRUM, Inc., a wholly owned solar subsidiary of Manila Electric Co. (Meralco), has entered into a partnership with food manufacturer Edward Keller Philippines, Inc. (EKPI) for a solar project in Laguna.

In a statement on Wednesday, the company said it will install a 630-kilowatt-peak (kWp) solar facility at EKPI’s industrial facility in Carmelray Industrial Park, Canlubang, Calamba, Laguna.

Slated for completion in the second quarter of 2025, the project is expected to generate approximately 714,553 kilowatt-hours of clean energy per year.

“This project not only helps us cut energy costs by P1.2 million a year, but also helps us reduce our carbon footprint by 422 metric tons,” said EKPI President Alexander Ong Oh.

EKPI is one of the brands of DKSH Philippines that manufactures ingredients for food, personal care, specialty chemicals, and pharmaceutical industries.

Last month, the Meralco solar unit also formed a partnership with Emperador Distillers, Inc. (EDI), a subsidiary of brandy and whiskey producer Emperador, Inc.

Under the agreement, MSpectrum will put up a 640-kWp solar facility at EDI’s manufacturing plant in Sta. Rosa, Laguna.

MSpectrum offers tailor-fit solar solutions for industrial, commercial, and residential customers “through an in-depth understanding of energy consumption behaviors and strategic partnerships with world-class technology partners.”

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 an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

A touch of home at The Giving Café’s new branch

WHILE The Giving Café opened its second branch — in Addition Hills, Mandaluyong — only on Nov. 15, this particular branch has a story reaching all the way back to the 1950s.

It is in a mid-century house built by the grandfather of The Giving Café founder Michael Harris Conlin, the Asian Games Bronze Medalist Juan Bautista Lee. It’s the same home where Mr. Conlin’s mother and her siblings grew up, and during the media tour on Nov. 22, guests were presented with vignettes of what the family could possibly have been doing in different parts of the house — an afternoon tea setup had tea, coffee, and chocolate, and their family’s lumpiang ubod (the spring roll filled with heart of palm was strongly garlicky); while the main living room and dining room boasted of feasts from childhood memory — kaldereta (goat meat stew), their pancit (a noodle dish), and a Chinese-style stuffed roast chicken (Mr. Conlin told us though that since the family favorite is Sweet and Sour Pork — they use this dish to test new cooks).

The Giving Café is the public face for the various coffee businesses under Mr. Conlin’s belt: he’s also the head of Henry & Sons, their roastery which sells coffee to industrial clients; his social enterprises, namely the Foundation for Sustainable Coffee Excellence which helps fund programs for farming communities including educational assistance, sustainable farming practices seminars, and basic health care access; and the Institute for Coffee Excellence, an educational component that trains baristas.

He has the credentials for the latter: he placed 15th at the World Barista Championship Semifinals in 2019, and in 2022, he won a silver for the Latte category Signature Coffee Award, and a bronze for the Brewing category at the Global Coffee Championship. In both cases, he won using coffees from two Filipino farms: one in Benguet and another from Laguna.

GIVING VALUE
“One of my personal advocacies is to give more value to Philippine coffee. One of the best, fastest ways to give value to Philippine coffee is to bring it abroad, and compete with it; be confident in it,” he said in an interview.

By adding value to Philippine coffee, it could be priced correctly. He gives an example of coffee being priced low at P60 a cup: if everybody down the value chain gets a little something from the P60, “How much is the farmer, the first step, getting?” The Giving Café is more than a name: a portion of the proceeds goes towards the Foundation for Sustainable Coffee Excellence, and thus to the farmers.

It’s not all just lip service, too: one of the communities where they source their coffee, in Itogon, Benguet, started out with 60 families yielding five kilograms of coffee each. Now, collectively, the community yielded five tons of coffee. Mr. Conlin said that the coffee was priced at $43 a kilogram, a third of the harvest was bought by businesses in Australia; another third went to Montreal. The final third was bought by them. “It’s not just about indulging in food — it’s indulging in the stories: the people, the lives we touch,” he said.

“What we realized as a social enterprise is, we cannot adopt every community that comes to us,” he said, which is why they opened a second branch.

In the short time it has been open, they’ve got new regulars, and they have booked parties. There’s more giving in this café: while the first branch seats about 70, this one seats about 168 customers.

LOVE OF COFFEE
His love of coffee began when he started working for his family’s abaca export business. He had to wait for partners in different time zones to wake up, so he spent half the working day keeping himself up with coffee. “I loved coffee so much that I decided that since I was roasting my own coffee, I might as well make it into a business.”

More importantly, what’s there to love about coffee is the story. “Coffee has been around for generations. Centuries. It touches so many lives,” he said.

“Coffee contains over 1,000 volatile aroma compounds. Some are positive, some are negative. But like life, just like us, there is good in all. There is no bad coffee. It’s just how you brew it.”

The second branch of The Giving Café is at 858a A. Mabini St., Brgy. Addition Hills in Mandaluyong City. It’s open from Tuesday to Sunday, from 10 a.m. to 8 p.m. The first outlet is on the corner of Sheridan and Pines Streets, Highway Hills, Mandaluyong City. It is open from Monday to Sunday from 7 a.m. to 10 p.m. Follow @tgcsocialentrep on Facebook and Instagram; for reservations call 0927-247-1490, 0985-128-4751 or 8518-9291. — Joseph L. Garcia

Lisa Gokongwei-Cheng steps down as JG Summit’s chief digital officer

LISA GOKONGWEI-CHENG — JGSUMMIT.COM.PH

LISTED conglomerate JG Summit Holdings, Inc. announced on Wednesday that Lisa Gokongwei-Cheng will step down from her role as chief digital officer.

Ms. Gokongwei-Cheng will vacate the role on Jan. 1 next year and will be replaced by Ma. Cristina Bellafor P. Alvarez, JG Summit said in a regulatory filing.

The conglomerate said that Ms. Alvarez will also serve as its chief information officer.

Ms. Gokongwei-Cheng, the sister of JG Summit President and Chief Executive Officer Lance Y. Gokongwei, founded Summit Media in June 1995.

Some of Summit Media’s brands include Esquire Philippines, Cosmopolitan, and Preview.

Ms. Gokongwei-Cheng is also the general manager of the Gokongwei Brothers Foundation.

For the first nine months, JG Summit saw a 16% increase in net income to P17.9 billion, while core profit improved by 39% to P20.3 billion.

The conglomerate’s top line went up by 10% to P277 billion, led by healthy travel and leisure demand, higher preference for value food and beverage products, and increased utilization rates in the group’s petrochemical plants.

On Wednesday, JG Summit shares rose by 0.45% or 10 centavos to P22.20 apiece. — Revin Mikhael D. Ochave

Fun and fizzy Christmas drinks to enjoy this holiday season

JUST in time for all the holiday celebrations, bar executive and mixologist Kentt Earl Yap introduces two new thirst quenchers: Bubbly Grandpa and Not Rudolph’s Nose.

Bubbly Grandpa is a non-alcoholic drink that is a tangy blend of goji berry tea, lemon juice, and soda water, made even better with frozen strawberries. The De La Salle-College of Saint Benilde School of Hotel, Restaurant, and Institution Management professor assures that the mocktail comes with antioxidant qualities that benefit the eyes, skin, and the immune system.

For those who wish to make the gatherings extra exhilarating, Mr. Yap recommends the marriage of tequila and red wine, which he calls Not Rudolph’s Nose. This combines a serving of lemon-lime soda and lemon juice, with frozen blueberries to represent Rudolph’s iconic nose.

“This cocktail is ideal to be made into a punch bowl for group serving – because cocktails for Christmas are supposed to be shared,” he adds.

Mr. Yap served as the group head bartender at EPH518 Cocktail Bar Singapore and the bar executive and supervisor of Park Hotel Group Grand Park Orchard, and worked at many other Singaporean bars and restaurants. He earned the EXSA Star Awardee title, bestowed by the Singapore Hotel Association and the Diamond Service Ambassador recognition from the Park Hotel Group. Mr. Yap is currently the head of Training and Research and Development at Atmos Coffee Co., which recently opened in Quezon City.

BUBBLY GRANDPA
Ingredients:
30 ml goji berry tea
3 wedges lemon juice
2 tbsp white sugar
30 g frozen strawberries
60 ml soda water

Procedure: Muddle frozen strawberry with white sugar, squeeze three wedges of lemon juice, and add in two parts soda water and one part goji berry tea. Serve and enjoy.

NOT RUDOLPH’S NOSE
Ingredients:
30 ml tequila
15 ml lemon juice
15 g frozen blueberries
2 tbsp sugar
60 ml lemon-lime soda
30 ml red wine

Procedure: In a shaker, muddle frozen blueberries with sugar, then add in lemon juice, red wine, and tequila. Shake for five seconds. Pour into a wine glass and add ice. Top up with lemon-lime soda. Garnish with blueberries. Serve and enjoy.

AI-driven ad fraud worries Asia-Pacific marketers

Tinee Cruz, senior sales director of DoubleVerify Philippines, spoke about ad fraud at the DigiCon Revolution 2024 event. — DOUBLEVERIFY PHILIPPINES

OVER 50% of marketers in Asia-Pacific (APAC) are worried about the harmful effects of artificial intelligence (AI)-driven fraud on advertising, according to a report.

“As AI becomes even more widespread, fraudsters have easier access to tools that can amplify fraud schemes,” DoubleVerify (DV), a software platform for digital measurement and analytics, said in its Global Insights: 2024 Trends report. 

The rising adoption of AI technologies in the Philippines has resulted in more sophisticated AI-driven fraud schemes that target high-value media environments, said Tinee Cruz, senior sales director of DV Philippines.

Real-time detection is essential to combat these fraud schemes, according to Ms. Cruz, highlighting tools like fraud and classification AI.

“With AI becoming a key tool in fraudsters’ arsenal, new fraud schemes have seen a significant increase with a 23% growth in 2023. Fraudsters are using machines to emulate human behavior better than before and evading standard detection mechanisms,” DV said.

“Tools that cater to challenges amplified by AI enable brands to detect fraudulent activities quickly and ensure that their digital ads are aligned with media quality as well as with standards in brand suitability. By using these technologies, brands can protect their investments and improve the overall quality of their advertising,” it added.

One of the most extensive Connected TV (CTV) ad fraud schemes unveiled by DV is CycloneBot, a malicious bot that can generate up to 250 million falsified ad requests and imitates around 1.5 million devices daily.

DV said the scheme can cause a $7.5-million monthly financial impact to unprotected advertisers. 

The report said the global ad fraud rate averaged 1.1%.

Still, the fraud/sophisticated invalid traffic (SIVT) violation rate in APAC remained the lowest globally at 0.8%, declining by 22% from the year-ago level. The Philippines had a 0.7% fraud rate, decreasing by 43%, the report showed.

“Despite seeing an 85% decrease in its Connected TV Fraud Rate, CTV remains the device with the highest fraud rate in APAC,” it said.

DV said 37% of fraud/SIVT in APAC happens via mobile apps, with 92% of all adware/malware SIVT in the region driven by mobile apps.

Ms. Cruz said the evolution of AI technology presents an opportunity for brands to enhance their campaign performance while defending against emerging threats to media quality.

According to the report, 60% of APAC marketers said AI-driven campaign optimization has a positive impact on media quality and plan to use AI technologies like data analysis tools over the next 12 months.

“Globally, APAC drives the highest overall attention, with an average Attention Index of 124… The focus on mobile usage in APAC is reflected in its high engagement with mobile web display ads and in-app video ads, which capture, respectively, 65% and 84% more attention than the DV baseline. This suggests that advertisers are optimizing their strategies for mobile environments,” it added. — Almira Louise S. Martinez

Hidden in plain sight

OLD: The church at Krus na Ligas in Diliman, Quezon City. — LAKBAY NG LAKAN

I’m pretty sure it’s not just me. But I have always marveled at the richness of our history, with literature giving us a glimpse of the twists and turns of the fates of key protagonists (to think that historians gush that a whole lot more remains to be written) and providing inspiration and material for indie films.

Each flick like Sakay (1993), Jose Rizal (1998), Heneral Luna (2015), Goyo: The Boy General (2018), and Gomburza (2023) leaves one with a taste for more such narratives on snippets of our story as a people. Every now and then, you even have stories told from opposing perspectives, e.g., our very own Baler (2008) and the Spanish 1898, Los Ultimos De Filipinas (Our last men in the Philippines, 2016). I have not yet watched others like Supremo (2012) and Bonifacio: Ang Unang Pangulo (2014) but look forward to movies about Miguel Malvar, one of the last Filipino generals to surrender to the US (Malvar descendants were divided over one planned in 2019 that would have starred then Sen. Emmanuel “Manny” D. Pacquiao), and Artemio “El Vibora” (The Viper) Ricarte (there was a 1972 film, titled El Vibora). Ricarte — in his hatred for the new western master — threw in his lot with a nascent imperial Japan at a time it was just starting to aspire for dominance in Asia (and even came home nearly four decades later with the Japanese invaders in 1941 as a 75-year-old man dressed in a Japanese officer’s uniform who helped organize Filipino collaborators… so, was he hero or traitor?)

Anyway, before I get carried away: much of our history is necessarily local, since events took place in specific locations or involved several localities across political jurisdictions.

Which makes me wonder why it seems that many local governments have not been integrating local histories into their tourism development plans (I mean, beyond using historical markers).

The travel and tourism sector now accounts for more than a fifth of the Philippine economy at 21.3%. While visitor count, spending, and jobs generated still fell short of pre-pandemic levels as of 2023, the World Travel & Tourism Council (WTTC) said in June that it expects the sector to top 2019 levels this year in terms of all three indicators. This, the WTTC said, shows the sector’s “critical role in supporting the nation and its local communities.”1

And the National Tourism Development Plan 2023-2028 (NTDP) that was launched in March last year states that “domestic tourism drives Philippine tourism.”

Many provinces are not wanting in potential heritage attractions, even as some have more than others. So, I was happy to read in 2019 that the North-South Commuter Railway project involves rebuilding up to 10 Spanish-era train stations (five of them in Bulacan — Balagtas, Calumpit, Guiginto, Malolos, and Meycauayan — which were built in the 1890s) to complement the 36 modern terminals along the planned line that will connect Metro Manila to Clark International Airport in Pampanga to the north, and to Calamba City in Laguna to the south. This is an excellent example of how the restoration and preservation of heritage sites can go hand in glove with infrastructure development.

There is no lack of literature on the role which historical attractions play in promoting tourism.

One paper identified the economic benefits of cultural and heritage tourism: the infusion of new money into the economy, boosting businesses and tax revenues; the generation of new jobs, businesses, events, and attractions, thus helping diversify the local economy; supporting small businesses and enabling them to expand; the active preservation and protection of important local resources; the strengthening of relationships among and within local communities; and the encouragement of the development and maintenance of new/existing community amenities.

Social gains include the preservation of local traditions, customs, and culture; improving the community’s image and pride; and building healthy community relationships and partnerships. Environmental benefits include the development of a culture of preservation as local residents and visitors become more mindful of their impact on their surroundings.2

An article posted on the website of the World Economic Forum noted that while cultural and historical travel accounts for 40% of tourism activities globally and 73% of millennials say they are interested in cultural and historical places, protecting local culture and heritage requires a holistic plan to mitigate negative impacts and policies to ensure that economic gains are shared. Such a plan coordinates interventions across sectors, and guides investments, encourages diversification of livelihoods, and nurtures local knowledge, while ensuring sustainability of tourism initiatives, including support for vulnerable sectors.3

And a recent KPMG study noted that heritage tourism — focused on cultural, historical, and architectural significance of destinations — can foster “a symbiotic relationship between preservation and development.”

“This approach emphasizes the protection and promotion of heritage sites to ensure that cultural values are maintained for future generations, simultaneously driving economic growth… By attracting visitors to heritage and cultural sites, communities can generate revenue to reinvest in conservational efforts, infrastructure improvements and local economic development.”

At the same time, it flags “the susceptibility of heritage sites to degradation under intensive tourism development, often resulting in the deterioration of these sites due to excessive tourist activity.” Hence, the need for well-designed, effective government initiatives; public participation and community development; sustainable use of technology; strategic marketing and promotion; targeting national and international recognition; with sustainability as a core principle, regulation of the heritage tourism market.4

The latest five-year NTDP noted that it is “crucial that tourism, because of its massive impact on income, jobs, and livelihoods, is effectively and efficiently used to revive national and local economies. This in turn emphasizes the need to pursue tourism development competitively, requiring investment in human capital and infrastructure, and innovations in governance and business.”

The latest plan provides a comprehensive road map that takes our historical sites into account. It shows “historical landmarks” as the 7th top item in local tourist demand after “beaches/islands,” “food exploration/cooking class,” “adventurous activities,” “nature/national parks/forests,” “city trips,” and “theme parks” on a list of 21 attractions.

At the same time, however, a study contracted by our Tourism department with market research consultancy Frost & Sullivan showed that the country ranked “poorly in cultural experiences, including historical landmarks, cultural/art activities or museums, religious/places of worship, city trips, as well as food exploration/cooking classes” in the eyes of foreign travelers. “This study demonstrates the need to focus the national strategy on developing our nature-oriented tourism products while emphasizing the need to properly build and enrich our cultural experiences to properly anchor tourism experiences within a Philippine identity and sense of place, thus more effectively standing out from our neighbors in the region.”

But while our historical sites do not seem to be top of mind for foreign visitors, local jurisdictions — especially those that do not have competitive beach, diving, or nature sites — will need to be firing on all cylinders if they are to maximize their tourism potentials. And that means maximizing the lure of any heritage sites they have.

The NTDP itself said “the domestic market must be prioritized to reenergize the industry for recovery” even as “international tourism for the medium to the long term continues to offer significant potential for growth while generating much-needed export revenue… domestic tourism must be recognized as the bedrock of the industry and must be supported and developed accordingly, while international tourism must be nurtured and diversified for long-term growth and resilience.”

Hence it was refreshing to find out that the local government of Mariveles, Bataan, for example, tapped a historian (Ricardo T. Jose) to find out more about a ruin that turned out to be a former key immigration processing site of the Spanish administration just across Corregidor Island.

Even established heritage centers have untapped structures (like the Casa Tribunal de Malolos, built in the 1850s and now all boarded up to keep out squatters) while other areas have isolated markers (e.g., anyone who studied at the University of the Philippines’ Diliman campus knows that the Krus na Ligas barangay there is the same site — with the same name — in which the Katipunan revolutionaries under Andres Bonifacio rested after the August 1896 Battle of Pasong Tamo, and that Katipunan Avenue roughly follows the route these heroes took during the revolution.)

Of themselves, isolated markers risk being largely ignored by local visitors who happen to pass by. But they could form part of a larger tour focused on that part of our history, even involving multiple cities and municipalities.

And this is where experts like historians come in handy. After all, the NTDP noted that “one potential area for dynamic growth is properly engaging the private sector and other industry stakeholders.” Local governments may just be surprised to find heritage tourism prospects that have lain untapped for so long. If you want to take this a step further, localities can also tap historical reenactors on special dates to act out that part of history represented by a site as part of a bigger celebration.

The NTDP also noted that growth of the industry worldwide “has been fueled by a long-term trajectory of rising incomes, increasingly accessible information about destinations through the Internet and social media, cheaper transportation and other tourist services through business and technological innovations, the stabilization and opening of previously closed markets, the progressive reduction of barriers to travel and… the desire for new experiences.”

It cited the need to “[l]ink emerging and potential destinations with key destinations and metropolitan areas through joint promotions, connectivity, cross-regional and cross-provincial collaboration, product, transportation, and inclusive tourism circuit development.” (Countries are doing this — Thailand is proposing joint marketing with the Philippines as diving destinations –  — so why can’t local governments do the same?)

“There are many emerging and potential destinations and tourism sites across the country, providing many different experiences. Efforts must be made, however, to connect them more effectively, not only in terms of roads and transportation but more importantly, in a proper narrative of a place. Collaboration between different local government units to develop coherent tourism plans and products across tourism development areas and tourism clusters will be essential. Appropriate visitor and interpretation centers, information platforms, and trained guides, docents, and tourism officers, are needed.”

Exactly. How many times have we suddenly come across a landmark (practically in the middle of nowhere) in some province and wondered if that represented an isolated event or was part of a larger scheme involving the next town. So, while local tourism information does include major heritage sites (or even smaller ones almost like an afterthought), local governments and tourism planners can do more by finding out more about shared local histories. And then this can be part of a bigger tourism plan involving several localities, employing joint marketing campaigns, co-branded initiatives, referral programs, etc.

This, NTDP said, means there is a need to undertake heritage, culture, arts, and product mapping across provinces and regions. “This effort will then provide the foundation for developing tourism plans, programs, and products that truly reflect both the national and local identities, anchoring our tourism experiences properly within the Philippine experience.”

More can also be done to use digital means to enhance heritage experience: from having a mobile-friendly, user-friendly, and regularly updated website (complete with an online events calendar and maps); to offering engaging content like a virtual tour of attractions with high-quality visuals and detailed information; to putting QR codes on markers that will give visitors access to more information about sites and their significance; to tapping bloggers and encouraging tourists to write more on these landmarks in their social media channels.

I suspect that there is no lack of heritage sites that many localities can tap as part of tourism promotion, even a collective one. At the very least, well-designed and -executed heritage initiatives can bolster comprehensive tourism offerings that promise a multiplier effect if carried out effectively.

The question, of course, is whether local officials themselves see the gems that lie hidden in plain sight before them, and/or can put aside political differences and team up to maximize heritage and other tourism potentials.

1 https://wttc.org/news-article/philippines-travel-and-tourism-sector-set-for-historic-year

2 “How Culture and Heritage Tourism Boosts More Than a Visitor Economy,” Carolyn Childs, mytravelresearch.com, 2018.

3 “Turning Tourism into Development: Mitigating Risks and Leveraging Heritage Assets,” Abeer Al Akel (Acting CEO, Royal Commission for AlUla) and Maimunah Mohd Sharif (former executive director, UN-Habitat), at https://www.weforum.org/stories/2024/02/turning-tourism-into-development/, Feb. 15, 2024.

4 “Heritage tourism as a tool for sustainable tourism: Preservation for development,” KPMG, July 2024.

 

Wilfredo G. Reyes was editor-in-chief of BusinessWorld from 2020 through 2023.

AC Health to import HIV medicines

PHILIPPINE STAR/ANDY ZAPATA

AYALA Healthcare Holdings, Inc. (AC Health) said it will import medicines and other lifesaving technologies through its subsidiaries IE Medica and MedEthix, to be sold at Generika Drugstore pharmacies, as part of a partnership with the United States Agency for International Development (USAID) to expand human immunodeficiency virus (HIV) care and prevention services in the Philippines.

Under the partnership, AC Health will onboard health service providers on the KonsultaMD telemedicine platform and expand HIV awareness and screening services beyond health facilities, the healthcare company said in an e-mailed statement on Wednesday.

For its part, USAID will support community engagement, provide technical assistance, and introduce private sector models for HIV service delivery. It will also train healthcare providers, share research, expand telehealth access through KonsultaMD, and coordinate with partners to provide free HIV self-testing kits.

“Our mission at AC Health is to make quality and affordable healthcare accessible to more Filipinos. Through our partnership with USAID, our dedicated teams at Healthway Medical Network, KonsultaMD, and Generika Drugstore have been equipped with specialized training to serve key populations affected by HIV,” AC Health Chairman Fernando Zobel de Ayala said.

“This collaboration brings us closer to bridging gaps in HIV prevention and testing, ensuring these critical services reach more communities nationwide,” he added.

The Department of Health (DoH) said the number of HIV cases is expected to hit 215,400 by the end of 2024. According to its recent report, males represent 94% of the 132,776 reported cases of people living with HIV (PLHIV), while females account for the remaining 6%, or 7,876 cases.

DoH Secretary Teodoro J. Herbosa called for collective action to combat the rising HIV cases during the official launch of the DoH’s “Undetectable = Untransmittable Campaign” on the 2024 Philippine World AIDS Day held on Dec. 1.

AC Health, the healthcare unit of Ayala Corp., has various interests in the healthcare sector. Its businesses include Generika Drugstore, St. Joseph Drug, pharmaceutical importer and distributor IE Medica and MedEthix, Healthway Medical Network, and KonsultaMD.

On Wednesday, Ayala Corp. shares fell by 0.15% or P1 to P649 per share. — Revin Mikhael D. Ochave