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All-Star selection

The premise of Russell Westbrook’s comments is the same as that of just about any other player before him: He believes a teammate got shafted by voters to the All-Star Game. And he’s right; Paul George deserves inclusion in the annual spectacle. In many respects, the latter is the National Basketball Association’s best two-way competitor who never seems to take a breather, preferring instead to keep moving as a safety-valve second option on offense and as a multiple-position anchor on defense.

Unlike most others who stand up for their teammates, however, Westbrook didn’t stop with criticizing George’s snub. He questioned the fairness of the process by mentioning that the current roster of All-Stars has “four people from one team, you’ve got guys complaining about getting snubbed until they get in, you’ve got guys just talking about it all the time. But the guys that deserve it — should be in — are not. I just don’t understand. Doesn’t make any sense.” In other words, he not only propped up a fellow Thunder; he threw shade on some of those who claimed the privilege.

Perhaps Westbrook would have gotten away with his spirited backing of George had his references, while indirect, not been apparent. Unfortunately, they were clear even to casual observers. And, in light of his disappointment, who can blame the Blazers’ Damian Lillard and the Warriors’ Stephen Curry, Kevin Durant, Draymond Green, and Klay Thompson if they felt they were being unfairly cast as undeserving.

To be sure, “deserve’s got nothin’ to do with it,” as William Munny famously said in “Unforgiven.” The process is such that anybody can literally be selected for the All-Star Game. Fans make up half the vote tally, with scribes and players serving as a collective corrective. And because there are only 12 available slots from each conference, an imbalance is inevitable. It’s why Westbrook’s other Big Three teammate Carmelo Anthony is no longer in after eight straight runs as part of the East contingent. It’s also why George has the going harder for him in the West.

In the final analysis, Lillard doesn’t have to defend himself. He’s an All-Star, period. Meanwhile, life goes on for George, who would have welcomed the distinction, but who has rightly moved on. It’s interesting to see how the dynamics will play out during the Game itself, especially with the new format that has top vote getters LeBron James and Curry choosing members of their respective squads. Needless to say, the fans can’t wait.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Images of celebrity

“The nice thing about being a celebrity is that when people bore you, they think it’s their fault.”

— Henry Kissinger,
US diplomat

In showbiz and politics, people aspire to be famous and popular. Recognition seems to be the most important thing — good or bad.

A century ago, the playwright, actor, songwriter George Cohan once commented, “I don’t care what you say about me as long as you spell my name right.

The image of the celebrity is paramount. His/her success is measured by public perception and acceptance. He/she projects a well-crafted, polished persona, one that highlights qualifications, solid achievements and assets.

The impressionable public has long been conditioned by media to accept the best-packaged media magnet. Fans and fanatics rush to buy the products, patronize movies, and vote — as endorsed by popular personalities. Other effective media tools are advertisements, infomercials, ratings reports (accurate or contrived), and a lot of hype.

Actors and TV broadcasters have the political advantage of visibility. They are easily recognizable. Name and face recall give these popular individuals the winning edge during elections. It does not matter is the stars are not capable of making significant contributions to society. (Other than to look tough in an action movie or fabulous in a commercial.)

An example is a media-genic star who aspired to be a national legislator. The bronzed hunk tried reinventing his image to gain acceptance on all levels. He dabbled in elite sports such as fencing, riding and golf. He ran several times and failed. Finally, he realized that he was shooting for the moon. When he scaled back his ambition, he made it in local politics. There he can shine as a hands-on official.

Mileage is a must — to compensate for a lack in qualifications. Ironically, a health buff endorsed both a vitamins antioxidant and a cigarette brand. Clearly he had his priorities mixed up. (Cigarette smoking is now banned on the streets and in buildings.)

Endorsements are the favorite vehicles for celebrity self-promotion to the masses. The TV ads offer an assortment of products plugged by public officials, political aspirants and actors — vitamins, toothpaste, alcohol, detergent, shampoo, milk, canned food, feminine products, and cosmetic enhancement procedures.

Actors can do what they want.

But public servants can do some advocacy work and use media to create awareness on particular issues such as health, clean air, protecting the environment, global warming. They should not promote commercial products. It is distasteful and appears to be a conflict of interest.

Caveat emptor: Buyers beware. The celebrity endorser does not necessarily use the products. There are no guarantees for lighter skin, spot-free laundry, or fresher breath. The ad is a marketing tool that is used to broaden public exposure for both the product and the star. In the process, he/she earns a substantial amount.

Some public officials have appeared in self-serving “at work” ads. The department or agency’s budget paid the bill for production and air time. The boss (who aspired to run for a higher public office) justified the infomercial was needed for public awareness. The ads conveniently provided early media exposure, circumventing the prescribed campaign ban period. Now this form of expensive self-promotion has been restricted and minimized.

There is nothing wrong with celebrity ads — as long as there is truth in advertising. And if the huge cost is not paid for by public funds.

Being a celebrity has its ups and downs. The famous person enjoys many perks. But there is price for that special status.

• VIP treatment. He/she saves time, effort, and money. He/she does not have to stand in line at the ticket office. Choice seats are offered at a fully booked restaurant. There are freebies from couture designers, shops, hotels, and airlines.

• 2) Social cachet. This is a permanent or temporary status. Invitations to high-profile events and concerts, exclusive circle clubs.

• Ego-massage. Fame produces an addictive adrenaline rush for the narcissist. He/she loves to see and hear himself/herself in the news. The applause is the crowds provides unlimited ego-boosting.

• Hero-worship. The fans, try to please the star. Sycophants fawn and flatter the politician. Lobbyists and vested interest groups offer gifts in exchange for future favors.

• Life in a goldfish bowl. The lack of privacy. The star enjoys attention and adoration. However, the intrusion and invasion of privacy can be distressing and painful. Stalkers have shot stars (John Lennon) and attempted to assassinate the Pope (St. John Paul II) and US president (Ronald Reagan).

• Public ownership. The celebrity’s personal life cases to be his/her own. He/she becomes material for public consumption and sensational scoops. It is transparency taken to extremes.

They become fair game for paparazzi and enemies. Any story (tawdry, sleazy, true or false) that will sell the tabloid and magazine is printed.

Despite protestations to the contrary, a number of play-hard-to-get celebrities may actually enjoy the attention. They thrive on and bask in publicity.

A few truly abhor attention. Greta Garbo once said that famous line: “I want to be alone.” She actually said: “I want to be left alone.”

Rumor and gossip stoke the fire. Star handlers and pin masters contrive elaborate scandals, fabricate tall takes and cultivate a controversial image. The better to get mileage.

In the end, the celebrity can be lonely. He/she loses touch and does not know where to draw the line between fact and fiction. And there are too many fair weather friends.

Andy Warhol once declared, “In the future, everyone will be famous for 15 minutes.”

The brilliant star grows old and fame wanes. The public shifts its gaze to a new face, a new name. The cycle begins all over again.

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

PHL Agriculture: No longer a laggard?

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What to see this week

5 films to see on the week of January 26-February 2, 2018

Maze Runner: The Death Cure
In the saga’s epic finale, Thomas and his group of escaped Gladers break into the legendary Last City, a WCKD-controlled labyrinth. Gladers who make it out alive will get answers to questions they have been seeking since their arrival. Directed by Wes Ball, it stars Dylan O’Brien, Kaya Scodelario, Thomas Sangster, Rosa Salazar, Dexter Darden, and Giancarlo Esposito. Variety’s Andrew Barker writes, “The Maze Runner was Ball’s first film, and his ability to craft comprehensible set pieces has steadily improved throughout the trilogy.”

MTRCB Rating: PG

Braven
Expecting a quiet weekend, Joe and his father discover that drug traffickers have hidden a stash of heroin in their hunting cabin. As criminals, father and son fight for survival. Directed by Lin Oeding, the film stars Jason Momoa, Garret Dillahunt, Jill Wagner, Stephen Lang, Brendan Fletcher, and Zahn McClarnon. A review from Movie Nation states, “It’s a formulaic thriller that underlines its foreshadowing and pins its hopes on big action beats — brawls, snowy chases, shoot-outs and archery.”

MTRCB Rating: R-13

Mr. and Mrs. Cruz
Raffy and Gela cross each other’s paths having traveled to Palawan in order to spend time alone. Sigrid Andrea Bernardo (Kita Kita) directs this Viva Films/IdeaFirst Co. production which stars Ryza Cenon and JC Santos.

MTRCB Rating: R-13

Fallen Not Forgotten: The Untold Story of The Gallant SAF 44
Shown exclusively in SM cinemas, this documentary by Adrian Belic and Sally Jo Bellosillo focuses the 13 members of the Special Action Forces who were tasked to capture the terrorist Zulkifli bin Hir — better known as Marwan — in Mamasapano, Maguindanao.

MTRCB Rating: R-13

The Promise
Twenty years after reneging on a suicide pact with her best friend, Boum and her 15-year-old daughter are haunted by a vengeful ghost. Directed by Sophon Sakdaphisit, the film stars Numthip Jongrachatawiboon and Apichaya Thongkham. South China Morning Post’s James March calls the film “formulaic yet effective.”

MTRCB Rating: R-13

Who should personally handle employee dismissals?

Our HR department used to take the lead in handling personally all disciplinary cases in our organization. Now that we have a new HR head, major changes had been introduced including a new policy requiring all line supervisors and managers to personally handle all offenses that merit reprimand and suspension up to dismissal. Which is correct — the old or new policy? — Decoding

Soviet Premier Nikita Khrushchev and American President John Kennedy were having a vigorous exchange. Finally, Kennedy asked Khrushchev — “Do you ever admit a mistake?” The Premier responded, “Certainly, I do. In a speech before the 20th Communist Party Congress, I admitted all of Stalin’s mistakes.”

To answer your question, let me give you my personal dictum: “Whoever has the authority and final decision to hire has the same authority and responsibility to discipline and fire erring workers.” The role of HR is basically a staff function with the basic responsibility of giving professional advice to line management executives.

Therefore, it was a mistake for the former HR head to personally handle the line function of other departments, even when it was allowed by those concerned. Of course, the exception to this is when an HR staff violates a company rule, and therefore must be disciplined by the HR head or anyone representing him.

In Management 101, HR as a staff authority has a special task that includes studying and sharing of industry best practices, giving advice, and making recommendations to line executives within the same organization. HR, like the finance department, will have the same staff authority to coordinate with line executives on which accounting forms to use to facilitate the release of budget and eventual purchase of certain equipment or services.

Even without this theoretical underpinning, it is unthinkable, unwise, if not impractical for an HR department to discipline all erring workers, while their line bosses whistle their way around until the next potentially problematic worker. Let me tell you this once again. Problem employees and employees with problems are created by problem managers.

If only these line executives are qualified to perform their job of personally nurturing and motivating their workers, like a green thumb gardener (as opposed to a lumberjack), then there should be no disciplinary issue that reaches HR.

Sometimes there are line managers who do not want to handle such difficult tasks as giving reprimands, much less suspending employees or dismissing them. But they don’t have much choice if they want to remain part of the management team. If this happens, HR may hold the hand of the concerned line executive, but the latter must still play an active and strategic role.

To make everything run smoothly, HR and the line department must study the applicable policy, rediscover established precedents (or exceptions) and more importantly to observe both substantive and procedural due process. HR may be present to support the line executive in issuing the “Notice to Explain” (NTE) and guide both parties (the boss and erring worker) on the proper procedure.

HR’s presence in the disciplinary process may be helpful, if only to ensure that the worker is given his full day in court. Therefore, HR must remain objective and neutral in the entire process to secure the trust of the worker.

Remember that the higher purpose of employee discipline is to correct unwarranted behavior and therefore must follow the following approaches, many of which are not be included in the Company’s Code of Conduct:

One, observe due process whoever is involved. This is very basic and no staff and line authority should ignore it. Most codes of conduct have the proper procedure but it is better to update them to reflect the latest labor jurisprudence. Try to use the term “Code of Conduct” rather than the much-hated “Code of Discipline.”

Two, hold the session in a private room.  Don’t hold the meeting inside the room of the boss or HR head. It’s better if the meeting is held in a board room, a neutral environment for both parties. Such a location means other employees will not have a chance to hear the discussion. It also gives everyone an opportunity for uninterrupted discussion, free from unwanted telephone calls or intrusions.

Three, be specific about the offense committed. And do this in writing. If the charge is too vague or general, the worker may later use it as a defense to claim that management has no case against him. Being categorical and specific includes answering who, what, where, when, why and how, among other things.

Four, calm down if the worker gets emotional. Wait until he calms down before proceeding to issue the Notice to Explain. This doesn’t mean, however, that you have to endure more than 20 minutes of discourse against management or discussing irrelevant issues. If the situation becomes intense, try settling things down by having a short break.

Last, limit the number of persons inside the room. Depending on the nature of the offense, gravity of the penalty to be imposed, and the personality of the erring worker, it is advisable that both HR head or his representative and the concerned line executive to personally issue the NTE. It is for the protection of both line and staff authority as the situation could be potentially dangerous for management.

Join our Feb. 15 public seminar on “Manager’s Metrics to Help Measure Success” at Discovery Primea Makati. Use Promo Code BW12618 to secure the P7,900 per person early-bird rate. For further details, call (02) 846-8951 or 0915-406-3039 or send e-mail to inquiry@kairos.com.ph.

 elbonomics@gmail.com

ADB annual meeting in May to tackle lagging economies

THE 51ST Annual Meeting of the Asian Development Bank (ADB) in Manila this year will focus on economies left behind amid Asia’s rapid expansion.

“As you know in the last 50 years the ADB has been very successful in improving the standard of living among its members. However, when you have successes like that you create new situations that have to be addressed,” Finance Secretary and Chairman of the ADB Board of Governors Carlos G. Dominguez III said in a statement.

Mr. Dominguez said that the Bank has been successful in improving living standards across the Asia Pacific, but now has to contend with new problems arising from the region’s economic resurgence.

“When the tide rises, all boats rise. Unfortunately, in economies, that doesn’t happen all the time. There are some communities that are not as progressive and vital as other sectors,” he said.

The Philippines will host the 51st Annual Meeting of the ADB Board of Governors in Manila on May 3-6 with the focus on “Linking People and Economies for Inclusive Development.” 

Mr. Dominguez said in his closing remarks in last year’s meeting that the regional lender should “begin a process of reinvention” so that its programs can realign to meet new global realities.

These new realities, he said, include the shifting of the balance of economic power to Asia, the rising economic nationalism and hostility to globalization in the US and Europe, and the emergence of new multilateral lending institutions such as the Asian Infrastructure Investment Bank.

The 2018 agenda will take off from last year’s annual meeting in Yokohoma, Japan, where the Board of Governors committed to strengthen efforts to develop infrastructure, collectively strengthen the region’s resilience amid growing global economic uncertainties now that Asia is expected to lead global growth, according to Mr. Dominguez.

“The economic balance of power has shifted. Asia is now expected to lead global growth. We cannot be content to simply track the development experience of the West,” he said.

He also expressed caution over emerging protectionist and anti-globalization policies in the US and European economies.

As for the Philippines, the key elements of its inclusive growth strategy are a “massive infrastructure program to bring us up to par with the region and a comprehensive tax reform package that will support robust economic investments in the country’s future,” he said.

“The first element is indispensable. For decades, the country lagged behind its neighbors in economic investments as we grappled with a debt overhang. We have to close the infra gap to achieve investment-led growth and evolve a truly inclusive economy,” he said. — Elijah Joseph C. Tubayan

How PSEi member stocks performed — January 25, 2018

Here’s a quick glance at how PSEi stocks fared on Thursday, January 25, 2018.

Nation at a Glance — (01/26/18)

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

Positive impact finance

Developed by a group of banking and investor members of the United Nations Environment Programme Financial Institutions (UNEP-FI), the Positive Impact  Principles are a set of guidelines to promote the development of positive impact business and finance which  contribute to the achievement of sustainable development and, in particular, the Sustainable Development Goals (SDG).

The principles, making the shift to a new business paradigm and form of interaction to finance the SDGs, was introduced to members in the Asia Pacific region during the UNEP-FI Regional Roundtable in Tokyo, Japan last month which this writer was privileged to attend.

In brief, the development of a dedicated set of principles serves to guide financiers and investors in their efforts to increase their positive impact on the economy, society and the environment.    

It is a set of guidelines for the principal players. Financiers shall be able to identify, promote and communicate about positive impact finance across their portfolios. Investors and donors are enjoined to holistically evaluate the impact of their investments and direct their investment choices and engagements accordingly. Auditors and raters shall provide financiers, investors and their stakeholders with the verification, certification and rating services needed to promote the development of positive impact finance.

The principles have four components: definition, frameworks, transparency and assessment. By providing a common language to the finance community and for a broader set of stakeholders, the principles are expected to constitute an important step in unlocking the  opportunities in SDGs and overcoming the funding gap for sustainable development.

Principle One defines positive impact finance as that which serves to finance positive impact business. It is that which serves to deliver a positive contribution to one or more of the three pillars of sustainable development (economic, environmental and social) once any potential negative impact to any of the pillars have been identified and investigated.

Principle Two, on frameworks, exhorts entities (financial or non-financial) to have adequate process, methodologies and tools to identify and monitor the positive impact of the activities, projects, programmes, and/or entities financed or invested in.

Principle Three asks the entities to provide transparency and disclosure on the following: (1) The activities, projects, programs, and/or entities financed considered and intended positive impact; (2) The processes they have in place to determine eligibility, and to monitor and to verify impacts; and

(3) The impact achieved by the activities, projects, and programs, and the entities financed. The intended use of funds released via financial instruments and their intended contribution should be clearly marked on the corresponding documentation.

Finally, Principle Four recommends that assessment be based on the actual impact achieved. The assessment can be internally processed, i.e. for internal monitoring and evaluation purposes, or undertaken by qualified third parties (e.g. auditing companies, research-providers and rating agencies), for certification and/or rating purposes.

The basic rationale for these principles is the realization that it is not enough to just change gears towards forward-looking risk management approaches like scenario analysis and stress testing approaches.

Whereas previously the tack was to mitigate the risks, this time it is to  identify clear solutions. The challenge is to focus on growing the pool of finance available to deliver positive impact.

As The Economist aptly puts it, “cutting emission will not be enough to keep global warming in check. Greenhouse gasses must also be scrubbed from the air.” This is an example of taking clear actions to achieve a positive effect, not just to ensure that actions taken will have less negative outcomes.

The principles are designed to grow the financing of sustainable development solutions by making the finance industry a catalyst for change. The importance of clearly setting measurable targets ensures that outcomes will stand validation and scrutiny. It is consistent with the mindset that what we cannot measure, we cannot control. It is a pro-active approach that puts substance to what UNEP-FI aims about changing finance by adopting a precautionary approach to environment and social issues.

Benel D. Lagua is Executive Vice-President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.

Samsung unveils 2018 editions of Galaxy A8 and A8+

What was originally introduced as a step lower than the flagship Galaxy S Series, Samsung’s Galaxy A Series has now been promoted to flagship status for having features usually found in Samsung’s high end Galaxy S and Galaxy Note series.

“The difference with this is that [the 2018 edition of the A series] caters to a younger market,” Nico Gonzales, Samsung Electronics Philippines Corp.’s marketing manager for core smartphones, told the media shortly after the launch on Jan. 18 in the Penthouse 8747 in Makati City.

The Samsung Galaxy A8 (2018) and A8+ (2018) both sport a dual front camera (16MP+8MP f1.9) with live focus and adjustable blur for those “bokeh shots” and a 16MP f1.7 rear shooter. The display — dubbed the “Infinity Display” — features an 18:5:9 display ratio for a “cinematic viewing experience,” according to the company release.

Both phones are dual-sim capable, have ROMs expandable up to 256GB and has a face recognition feature. These also come with Samsung’s virtual assistant Bixby though the phones comes sans a dedicated Bixby button present in Galaxy S8.

The phones are available in either gold or black.

The-Galaxy-A8-highlighting-its-IP68-feature
The Galaxy A8 (pictured) and A8+ are water- and dust-resistant. — PHOTO: Samsung

Another feature of note is that the A8 and A8+ are water- and dust-resistant, which means the phones are virtually unfazed even when submerged in up to 1.5 meters of freshwater for up to 30 minutes and can withstand sweat, rain, sand and dust.

Aside from the cosmetic differences between the two phones — the A8 stands at 5.6 inches and 172 grams while A8+ is at 6 inches and 191 grams — the A8+ also contains a larger battery capacity of 3,500 mAh compared to A8’s 3000 mAh.

A8+’s RAM is also bigger at 6 GB and internal memory is at 64GB while A8 has a not-too-shabby 4 GB RAM and 32 GB internal memory.

All these features come with a price tag of P26,990 for the A8 and P32,990 for the A8+. In comparison, last year’s flagship, the S8 is now sold online (as of this writing) in Lazada for P31,990 for the 64GB model and the S8+ 64GB model is at P34,890.

So what makes A8/A8+ preferable over last year’s flagship which is only a couple thousand pesos more than the new launches?

Well, it all comes down to its target market, said Mr. Gonzales as the A8 is targeted towards millennials who want a phone “that can experience everything along with them and capture those moments.”

The-Samsung-Galaxy-A8+
Samsung Galaxy A8+ retails for P32,990. — PHOTO: Samsung

“What we envision with this is you get all the flagship features but still have enough to experience other things,” he said.

Compared to the launch price of the S8 (P39,990) and S8+ (P45,990), it is certainly cheaper and once the S9 rolls out this year, A8 will a cheaper alternative, though not by much.

And in terms of A8’s entry into the dual camera selfie market — of which Chinese brands such as OPPO (F3), Vivo (V5 Plus) and Huawei (Nova 2i), among others, currently reign supreme–this isn’t because they wanted to compete in this segment, Mr. Gonzales said but is a reaction to “the clamor from the target market for better selfies.”

“We thought it was about time we release our own version of a dual front camera,” he said.

Whether other phones from the Korean company will sport this feature, Mr. Gonzales is keeping mum.

Both phones will be available late January. For more details on where to buy the Galaxy A* and A8+, visit Samsung PH’s Facebook page or its website at samsung.com/ph. — Zsarlene B. Chua

Millennial‑run crowdfunding platform brings ‘bayanihan’ to entreps

The saying “nothing is original” can’t be truer in the context of crowdfunding. The practice of raising small amounts of money from strangers via the internet is really is no different from the Filipino spirit of “bayanihan”—just sans the actual manual physical labor of lifting up the stilts of a nipa hut.

Over on The Spark Project, strangers are lifting each other up by helping creative entrepreneurs fund projects: a gamut of products and services that include Internet-of-Things-enabled door sensors, classroom painting projects, virtual conferences, and even the “first Filipino watch brand” that has the word “Manila” placed on the bezel.

Crowdfunding is a “smart way” for startups to get funding, says The Spark Project’s CEO and founder Patch Dulay, who calls himself a “startup enabler.”

“With traditional sources of funding such as banks, if you’re a starting entrepreneur you don’t have a credit line yet, so you won’t have access to that,” he told SparkUp in an interview. “Competitions, yes it’s a good jump‑off point, but only a few get the prize. Sometimes it’s not even monetary. Investors are picky as they also have limitations, so it’s hard for entrepreneurs to rely on other people’s decisions.”

Dulay launched the platform in 2013, inspired by American crowdfunding sites like Kickstarter and Indiegogo that both provides artists and new entrepreneurs with an avenue to raise funds for their projects or products.

“I couldn’t participate in the platforms since they were limited to the U.S.,” he said. “I thought, “Why not have one in the Philippines?’”

The spark was immediately followed by action. At that time, Dulay immersed himself in the community entrepreneurs, even taking global e‑business in France during the time when social media and the latest developments in Web 2.0—the tech jargon referring to the second generation of the World Wide Web where developers moved from static HTML pages to more interactive web experience—were starting to flourish.

Upon returning to the Philippines in 2011, he was exposed to social entrepreneurship and to the then‑emerging tech startup community in the Philippines.

“One of the reasons why I wanted to go back home was I felt that I have always had a calling or need to do something significant with the work that I do,” he said. “And when I was thinking about what I was doing then when I just finished my master’s degree, I knew that by going back to the Philippines, I can make most impact.”

Combining his expertise in information technology and exposure entrepreneurship, he took the plunge and introduced The Spark Project.

To date, a total of ₱5.8 million from some 2,678 backers has already been raised for 63 projects through platform.

“These startups are really good, they have amazing projects and concepts, but a lot of them funding is really one of the resources that they don’t having an access to,” he said. “I thought, why not bring crowdfunding to the Philippines because I knew it could help a lot of entrepreneurs.”

Supporting local creatives

In choosing projects in the platform, Dulay said they prioritize local creative enterprises that already have a prototype of their products.

“Through the review process, we check if they are real people and if what they are trying to crowdfund isn’t just a concept. They must already have began certain activities that ensure they have already studied their project and they know how to execute it,” he explained.

They help enterprises identify the amount of money needed to be raised by providing them with historical statistics. In crowdfunding, he also learned, time is of the essence.

“A campaign longer than 30‑45 days would just drag or come out with the same result,” he pointed out. Better to limit it to less than that.

More than money

While crowdfunding has helped fund a plethora of projects, Dulay noted that not all types of business are suitable for it.

“Crowdfunding is not for everyone. Right now in the Philippines, most of the crowdfunding successes are more product-driven or more product-based business,” he said.

There is also no assurance that it can help attaining one’s required amount of money. But Dulay said it is a “good alternative” to the traditional practices of sourcing money for startups.

“Crowdfunding allows businesses to take matter in their own hands and in making their ideas happen,” he said. “It attracts passionate entrepreneurs who want to get things rolling.”

He added, “Sometimes when you asked entrepreneurs, they don’t need millions of pesos to start, sometimes all they need is a hundred thousand to get the first batch running and from there they can already sustain operation.”

According to Dulay, the benefits that enterprises can get from crowdfunding are beyond mere cash. Through it, he said businesses can “validate their idea to see if people are responsive to the product or service they are putting.” Crowdfunding, he added, is a “smart way of doing business” because it gives entrepreneurs access to their potential customers. A lot of creative entrepreneurs, in fact, use it to pre-sell their products.

“What makes crowdfunding interesting is that people don’t just give money to a project,” he said. “They give money with the understanding that the project would give them rewards in return, which may vary depending on the project or the amount of money that you give.”

At present,  crowdfunding in the Philippines, according to Dulay, is just at the “infancy stage,” but he is optimistic that with proper education and government’s support, its potential could be “unlocked” to benefit small businesses and the country’s economy at large.

“There’s still a lot of room to grow,” he finally said. “I’m still hopeful that more people and more entrepreneurs see the value of crowdfunding and see it as a viable means to raise funds and build their business.”

Economic expansion to ease — BMI

PHILIPPINE economic growth is expected to moderate until next year — due largely to base effects from 2016’s election-related boost and a “deterioration of the business environment” — but will remain “very respectable” by regional standards, Fitch Group unit BMI Research said in a Jan. 23 note.

“We continue to expect the economy to grow at a more moderate pace over the coming quarters and maintain our real GDP (gross domestic product) forecast at 6.3% in 2018 and 6.2% in 2019,” BMI Research said in a Jan. 23 report.

If realized, BMI’s forecast is slower than the actual 6.7% recorded for 2017 and 2016’s 6.9%, and will fall short of the government’s 7-8% GDP target for 2018 to 2022.

The Fitch unit said that the projections are “still strong by regional and historical standards and this will be supported by positive demographic trends, a strong public infrastructure drive and deepening economic cooperation with China.”

However, BMI flagged a “worsening business environment” that it says will drag private investment growth in the near term.

It noted that fixed capital formation slowed to 10.3% last year from 25.2% in 2016. Broken down, construction growth slowed to 5.7% from 15.1% while expansion of spending on durable equipment slowed to 12.2% last year from 34.5% in 2016.

“In our view, the slowdown in investment is indicative that the Duterte administration’s violent anti-drug war has likely had a negative impact on investor sentiment, while a rise in (US President Donald) Trump’s protectionist rhetoric has led many US investors to adopt a wait-and-see approach with regard to new ventures in locating their business offshore,” BMI said.

“We believe that these concerns will continue to weigh on new investment commitments into the BPO (business process outsourcing) sector in 2018, particularly given that the US is one of the largest investors in the Philippines’ business processing sector.”

Socioeconomic Planning Secretary Ernesto M. Pernia has said that the slowdown of service exports growth in the last quarter for 2017 to 12.6% from 19.9% the preceding year, can be attributed partly to the BPO industry noting that it “is ripe to move into higher value added services.”

Spending — long an anchor of overall economic growth — has also slowed. Household spending growth slowed to 5.8% last year from seven percent in 2016, while increase of state disbursements eased to 7.3% from 8.4% over the same comparative years “largely as a result of base effects due to election spending in 2016.”

BMI said it expects “unfavorable base effects to be carried forward into 2018 and forecast government consumption growth to slow further over the coming quarters.

Still, BMI said that increased foreign investments from close ties with China and Japan, as well as the government’s P8-trillion medium term infrastructure push — to be funded partly by tax reform like the recently enacted Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act (TRAIN) — will sustain the Philippines’ strong economic outlook.

“While growth headwinds are mounting in the near term as the business environment deteriorates, we believe that the Philippine economy will continue to be buoyed by strong demographic trends supporting savings, increased trade and investment links with China and Japan, as well as a strong public infrastructure drive. This should see real GDP growth in the Philippines average above six percent over the medium term,” the Fitch unit said.

“Furthermore, on the fiscal reform front, the government has overhauled the tax system, which is expected to boost government revenue and create a more equitable and efficient tax system. This should allow the government to carry out its ambitious public infrastructure development plans,” BMI said in its note.

“This will likely go some way in improving the country’s poor infrastructure, which has long prevented the Philippines from reaching its growth potential.”

The Department of Finance expects P90 billion in incremental revenues this year from TRAIN, growing to P786.4 billion by 2022.

The law also automatically earmarks 70% of the overall additional revenues to the government’s infrastructure program.

The TRAIN cuts personal income tax as well as estate and donors tax rates,while withdrawing some value-added tax exemptions, raising taxes on fuel, automobiles, tobacco, minerals, coal and documentary stamps, among other items, while slapping new levies on sugar-sweetened beverages and some cosmetic procedures, among others.

It is one of up to five tax reform packages that are cumulatively expected to shoulder up to a fourth of the planned P8-trillion spending on infrastucture until 2022, when Mr. Duterte ends his six-year term. — Elijah Joseph C. Tubayan

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