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Liberal Party open to working with Makabayan, other opposition blocs

PEXELS-ELEMENT DIGITAL

By Kyle Aristophere T. Atienza, Reporter

THE Philippine liberal opposition is open to working with left-leaning opposition forces such as the Koalisyong Makabayan (Makabayan) for the midterm elections next year, as it sees similarities between their constituencies.

Analysts said opposition forces need a well-coordinated campaign to give themselves a fighting chance against the Marcos administration’s candidates, drawing lessons from a united and broad resistance that enabled oppositionists to gain majority control of the Senate under the Arroyo government.

“The Liberal Party (LP) is open to forging an alliance with like-minded, kindred opposition groups,” former senator and Party spokesperson Leila M. de Lima said in a Viber message at the weekend.

When asked to clarify whether LP, one of the oldest political parties in the Philippines, was referring to groups like Makabayan and Laban ng Masa, Ms. De Lima said: “Yes, on our common and shared issues and advocacies.”

The groups are “free to debate on those where we differ,” she said, noting some of their advocacies and the sectors they represent are “similar.”

“We should be able to harness our efforts,” she added, “to convince our people to elect more progressive candidates.”

Ms. De Lima, who was jailed during the term of former president Rodrigo R. Duterte after launching a series of probes into his deadly war on drugs, is the first nominee of Mamamayang Liberal, the Liberal Party’s party-list group representing marginalized sectors.   

For the 2025 senatorial race, the Party is only fielding former Senator Francis Pancratius “Kiko” N. Pangilinan, who gave a video message of solidarity during the Saturday convention of Makabayan, which has launched 11 senatorial bets representing various sectors.

“We will be open to forging unity with individuals who share our program or some aspects of it,” Liza Largoza-Maza, co-chair of Makabayan, said in a Facebook Messenger chat. Makabayan is not open to working with the opposition-posturing movement led by Mr. Duterte and his allies. “They are not real opposition.”

Ms. Maza said Makabayan is still looking into the agenda of other opposition groups including their stances on basic issues such as “unemployment, high prices of goods and services, presence of US military bases, missiles and troops in our soil, and foreign interference.”

Rafaela David, President of Akbayan Party, had yet to reply to a Facebook Messenger chat seeking comment. Akbayan is an ally of LP and is the political party of Senator Risa Hontiveros-Baraquel, who is the highest elected official among opposition forces.

LESSONS FROM ARROYO OPPOSITION
WR Numero Research President and Chief Executive Officer Cleve V. Arguelles said opposition groups have something to learn from the opposition during the administration of former president Gloria M. Arroyo, who in 2008 was tagged as the most unpopular president in the country since the restoration of formal democracy in 1986: “Only a well-coordinated, unified opposition campaign can stand up to Malacañang and rival the two Ms that it enjoys: money and machines.”

He said the Philippines under President Ferdinand R. Marcos, Jr., whose father was toppled in an anti-dictatorship uprising in the 1970s, currently has a fragmented opposition and it does not help that it has a weaker constituency.

“We see a fragmented one now, and also weakly coordinated. Some are running again in the Senate while some are trying their luck in the House and even in local government,” he said.

“It’s a concern that they have retreated to just running their own campaigns, dividing the attention and efforts of the already smaller opposition constituency.”

Political camps in the Philippines have been realigning ahead of a referendum election that is likely to be dominated by dynastic politicians based on opinion polls, and several mainstream political parties have managed to set aside differences to support the Marcos administration.

Mr. Marcos’ Partido Federal ng Pilipinas, the Nacionalista Party, the Nationalist People’s Coalition, and the National Unity Party have coalesced under an alliance called “Alyansa Para Sa Bagong Pilipinas.”

Opposition to the administration of Ms. Arroyo, a vice-president turned president after the ouster of former president Joseph E. Estrada on corruption issues in 2001, grew significantly through the years, with business groups and mainstream parties openly calling for her resignation and some leftist forces including the Laban ng Masa calling for a transitional government.

Renecio “Luke” S. Espiritu, Jr. of Laban ng Masa had yet to reply to a Viber message seeking the group’s side for this report. The group is fielding Mr. Espiritu and labor leader Leodegario “Ka Leody” de Guzman for the senatorial race.   

In the 2007 general election, the Genuine Opposition, which is composed of major political parties opposed to her leadership, secured seven seats while the administration-endorsed Team Unity got only three seats.

NOT QUITE THE SAME
“We really couldn’t compare the current administration with Arroyo’s because the former enjoys a higher level of electoral legitimacy,” said Anthony Lawrence A. Borja, a political science professor at De La Salle University, noting that Ms. Arroyo committed electoral fraud.

“Because of this, Arroyo is a clear and more convincing target for the opposition to coalesce against,” he said in a Facebook Messenger chat.

The situation could not be true for Mr. Marcos because former president Rodrigo R. Duterte, whose six-year term was marked by activist killings and deaths under his bloody anti-drugs campaign, is “another target for opposition forces,” Mr. Bojra explained.

“Simply put, the administration versus opposition dichotomy is over for the time being and what we have is, at least, a three-way conflict.”

Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said progressive forces have not been able to cope with the changing political landscape through the years, and it did not help that the Duterte administration capitalized on social media to tarnish their reputation.

“During the Arroyo years, it was different. You have a very unpopular president, and that the media was still effective in giving a solid framing for every issue that was thrown against her government,” he said via Messenger chat.   

“To be in opposition at that time was something seen as positive.”

“Since Duterte’s time, opposing the government was seen either as a mere reactionary move from the then liberal forces or an extreme attempt to go against the government from the radical left forces,” he said.

Opposition forces were effectively reduced as mere power-grabbers and enemies of the state under Mr. Duterte, he added.

Hansley A. Juliano, who teaches politics at the Ateneo de Manila, said more voters now have been tired of casting protest votes, conflating support for administration candidates with their hope for a “stable government.”

He noted possible growing discontent in progressive politics, especially among “information and data-bombarded” young voters.   

“The section of the electorate that is educated/integrated into civic engagement is also underpinned by an uncritical appreciation of the private sector’s role in society, regardless of how much abuses it commits in the name of profit-seeking,” Mr. Juliano noted via Messenger chat.

“Young voters may not necessarily be tired of engaging in progressive politics, but the model and tactics of progressive politics have grown stale,” he added. “This hurts the chances of the opposition.”

Mr. Borja said from the perspective of ordinary voters, a protest vote would certainly come from the liberal and leftist sectors. “However, for the partisans of Marcos and Duterte, it becomes a matter of defending their respective chiefs.”

“Is a stable government part of the equation? Probably for Marcos supporters, or for those who are taking politics more seriously than a mere betting game,” he added.

He said the situation is heavily favorable to the Marcoses and Dutertes. “Overall, only a severe crisis or an epic scandal can change the battle lines.”

Mr. Aguirre urged opposition groups to focus on offering alternatives and avoid falling prey to the Marcos-Duterte bickering.

“The way to go is to focus on economic recovery and a clear rejection of the petty dynastic quarrels between the Marcoses and Dutertes,” he said.

“It’s a one-two punch that I’m sure could lead to a knockout — opposition candidates winning one or two seats.”

“We are running as opposition. We can expect natural alignments among all those who will be running as opposition,” Ms. De Lima said, the former senator said.

“Discussions with other groups will be had as issues arise and as positions on these issues solidify,” she added. “Our goal throughout all this will remain the same: To win without compromising our values.”

CoA flags Lanao del Sur local gov’t

PHILIPPINE STAR/ MICHAEL VARCAS

THE Commission on Audit (CoA) has flagged the municipal government of Balabagan, Lanao del Sur for failing to submit its records of properties and assets amounting to P300 million, rendering its financial account unreliable.

State auditors said they found the Balabagan town’s financial statement doubtful due to its failure to submit necessary audit documentation for P297.59 million worth of its assets, limiting CoA’s ability to evaluate the accuracy of its books.

“We rendered a qualified opinion on the fairness of presentation of the financial statements due to the Property, Plant, and Equipment amounting to ₱297,590,771 which cannot be ascertained due to non-submission of the Report on the Physical Count of Property, Plant, and Equipment, thus render the account as unreliable,” a part of the CoA report stated.

“Inability of the agency to conduct physical inventory, submission of the [records]… hindered the reconciliation of the accounting and property records,” it added.

The Municipal Government of Balabagan did not immediately respond to an e-mail seeking comment. The local government noted, however, that it will comply with CoA after their annual inventory completion, according to the CoA report. — Kenneth Christiane L. Basilio

Festival highlights coffee, cacao

VECSTOCK-FREEPIK

DAVAO CITY — Coffee and cacao will take the center stage as the Davao Food and Wine Festival returns next month.

Monica Floirendo Ugarte, Chair of Coffee and Cacao Experience, on Friday said one of the featured events is the Coffee and Cacao Experience, which aims to celebrate the growers, business owners, baristas, and chefs who use these two crops in their food and their businesses.

“There is a lot of creativity that goes into these two crops especially when it comes to chefs making their interpretation… Davao has a very strong coffee culture and we also have very good chocolate small business culture,” Ms. Ugarte said during Business Matters media briefing at Hukad, Ayala Malls Abreeza.

According to Ms. Ugarte, the activity, which will run from Oct. 5 to 6 at the activity center of Ayala Malls Abreeza, will showcase 28 booths and will be participated by coffee and cacao business owners in Davao City as well as chefs from Manila who are using Davao cacao in their recipes.

“We will have competitions, talks, and videos, celebrating these two crops. We will have representations from different sectors of the coffee and cacao industries and a lot of popular Davao establishments and small businesses will be joining,” she added.

The festival will be highlighted with cacao to chocolate tasting by Treena Tecson and the Davao Tableya Mixology Competition.

Ms. Ugarte said with the said activity, they are eyeing to position Davao City as the ideal place for a coffee and cacao experience.

“Because we are an important region for these two crops and aside from that we want to promote this small business,” she said.

The 2nd Davao Food and Wine Festival, which will kick off on Oct. 4 and will end on the 27th, is in partnership with the Department of Tourism that seeks to promote culinary tourism in Davao City.  Maya M. Padillo

Soldiers, cops join blood drive

UNSPLASH 

COTABATO CITY — Police personnel, members of the Philippine Marines, and their counterparts in the Army donated blood during a bloodletting session in Cotabato City on Sunday, a cross-section humanitarian effort for marginalized beneficiaries.

The bloodletting activity was jointly organized by the Cotabato Host Lions Club International District 301-E and the Philippine Navy’s 5th Marine Battalion based in Cotabato City, supported by the Cotabato Regional Medical Center, the Cotabato City Health Office, and the health ministry of the Bangsamoro regional government.

More than 40 combined Marine servicemen, personnel of the Cotabato City Police Office, members of an Army mechanized unit in Maguindanao del Norte, and civilians lined up and donated blood during the bloodletting event at the headquarters of the 5th Marine Battalion.

The blood collected during the bloodletting activity will be kept in a blood bank, earmarked for impoverished needy patients in government hospitals and dispensaries around. — John Felix M. Unson

Abra official’s suspension final

BAGUIO CITY — Malacañang’s Deputy Executive Secretary for Legal Affairs (DESLA), Anna Liza G. Logan, declared the suspension of Abra Vice-Governor Joy Valera-Bernos as final and executory.

Ms. Logan in an order released Sept. 23, said there was no Motion for Reconsideration filed before them as of Sept. 13, in connection with the suspension slapped against Valera-Bernos.

The decision by the Office of the Executive Secretary Lucas P. Bersamin was promulgated by the DESLA on Aug. 12, 2024.

Ms. Valera-Bernos was suspended for 18 months after she was found guilty of oppression and abuse of authority, conduct unbecoming of a public official, and disobedience to national government policies after she locked down the Dr. Petronillo Seares, Sr. Memorial Hospital in Bangued due to a June 2020 Covid case. 

Ms. Valera-Bernos obtained a Temporary Restraining Order on Sept. 13, which lapsed on Sept. 23.

Ms. Logan said in the order that no appeal was filed with the Court of Appeals, contradicting Ms. Valera-Bernos’ suspension as of Sept. 17, declaring the order, dated Aug. 12, “Final and Executory.” — Artemio A. Dumlao

Feasibility study to take 2 years for ports servicing wind industry

NICHOLAS DOHERTY-UNSPLASH

THE Department of Transportation (DoTr) said it is hoping to complete in two years the feasibility study, including the detailed engineering design, for two ports to be repurposed to service offshore wind farms.

“Feasibility study and detailed engineering design take 18 to 24 months to complete but our target is (to finish it) as soon as possible,” Transportation Undersecretary for Maritime Elmer U. Sarmiento said via Viber.

Last week, the Department of Energy (DoE) and the Philippine Ports Authority (PPA) said they will start the process of repurposing three ports to service the offshore wind industry.

Ports will be a key link in developing offshore wind farms, serving as the base from which operators can transport materials needed offshore.

According to the DoE, the Port of Currimao in Ilocos Norte, the Port of Batangas in Sta. Clara, Batangas City, and the Port of Jose Panganiban in Camarines Norte have been shortlisted for repurposing, though the study covers only Currimao and Batangas. 

The DoE has said that it will initiate the detailed engineering design process to ensure that the ports can handle the installation, commissioning, and operational requirements of offshore wind projects.

In July, PPA General Manager Jay Daniel R. Santiago said the Philippines will likely miss its target of launching offshore wind farm operations by 2028 due to lack of progress in developing specialized ports servicing wind farms.

The DoE has said that at least 10 concessions with a combined capacity of 6.72 gigawatts (GW) are projected to be operational by 2028.

The Port of Currimao is near 13 offshore wind energy service contracts (OWESCs) with a potential combined capacity of 9,489 megawatts (MW). Of the total, three service contracts are in the “advanced pre-development stage.”

The Batangas Port is close to 29 OWESCs with a combined capacity of 24,300 MW. Six of these contracts are in the permitting, licensing, and data gathering stages.

The PPA has said that at least nine ports are candidates for repurposing for servicing offshore wind projects.

“We cannot do all nine ports at the same time. Offshore wind projects are really capital intensive. We will prioritize what we consider as doable,” Mr. Sarmiento said.

Currently, the DoE has awarded a total of 92 OWESCs with a combined capacity of 66.10 gigawatts (GW) to 38 renewable energy companies.

The Philippines has an estimated 178 GW of potential offshore wind energy capacity, according to the World Bank. — Ashley Erika O. Jose

13 power projects endorsed to ERC for operating permits

THE Department of Energy (DoE) endorsed 13 projects involving new and operational power plant projects to the Energy Regulatory Commission (ERC) in August, bringing them closer to obtaining operating permits.

The power projects have a combined potential capacity of more than 1,000 megawatts (MW). 

“In August 2024, the DoE issued 13 CoEs (certificates of endorsement) to ERC, which are composed of eight amendments and five new applications,” the DoE said in a document posted on its website.

A CoE is a prerequisite for generation facilities to be issued a certificate of compliance (CoC).

Of the total endorsements last month, four are conventional projects powered by diesel. The DoE also issued endorsements to eight renewable energy projects and one battery energy storage system (BESS).

Among the biggest projects is the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna with a combined total capacity of more than 700 MW.

The CBK hydro facilities are currently under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between independent power producer CBK Power Co. Ltd. and National Power Corp., which will expire in 2026.

CBK is a major privatization project of state-run Power Sector Assets and Liabilities Management which is up for bidding this year.

Endorsements were also issued to Energy Development Corp.’s 226.135-MW Mahanagdong Geothermal Power Project in Leyte; Greenergy for Global, Inc.’s 63.96-megawatt peak (MWp) Cordon Solar Power Project in Isabela; Masinloc Power Co. Ltd.’s 35.258-MW Masinloc BESS in Bohol; and Dagohoy Green Energy Corp.’s 27.120-MWp Dagohoy Solar Power Project in Bohol.

The list also includes DMCI Power Corp.’s 8.826-MW Aborlan Bunker-Fired Power Plant in Palawan; Occidental Mindoro Consolidated Power Corp.’s 7.4-MW SMRA Solar Power Plant and 0.672 megawatt-hour BESS in Occidental Mindoro; and Dupinga Mini Hydro Corp.’s 4.68-MW Dupinga Hydroelectric Power Project in Nueva Ecija.

The National Power Corp.’s 0.420-MW Chico Diesel Power Plant in Masbate, 0.08-MW Butawanan Diesel Power Plant in Camarines Sur, and 0.158-MW Tara Diesel Power Plant in Palawan, were also issued endorsements.

In October, the ERC issued a resolution requiring CoCs for the operation of new generation facilities without the need for renewal but with an obligation to maintain the validity of the underlying permits. — Sheldeen Joy Talavera

PHL tourism businesses lagging in race to digitalize, Klook says

By Chloe Mari A. Hufana, Reporter

BUSINESSES catering to tourists in the Philippines have not yet sufficiently embraced digitalization, according to the co-founder of travel platform Klook. 

“The merchants (in the Philippines) are very offline, not digital, but the advantage is that the tourism offices are receptive,” Klook President and Co-Founder Eric Gnock Fah told reporters in Singapore. 

He said Klook is working with Philippine tourism authorities to promote more digitalization that will  allow them reach out to a “new set of consumers who are willing to spend,” particularly the younger demographic.

He said Klook is an option to go digital as an alternative to a business building its own system.

“It’s the ability to make bookings easily and to be able to promote these services online easily,” he said, citing the booking service in China known as Red.

 “Most Chinese consumers will be looking at Red when they think about travel, overseas particularly, but to create content there and to enable booking there is not an overnight thing,” he said.

“That’s where Klook came in as an intermediary. Merchants need to know that there’s this type of channel or this type of app that they need to be present in, otherwise the Chinese market, for example, will not know that their service exists in Boracay or El Nido,” according to Mr. Gnock Fah.

According to Klook’s website, the company completed a $210 million funding round in  December.

said the money will go towards the improving the use of generative artificial intelligence (Gen AI) on the platform.

“It’s an expensive industry, but we also believe that it’s the future,” he said.

He added that Klook currently uses Gen AI to maintain quality across all merchants globally, specifically in streamlining customer reviews.

“Once these reviews come in, we actively review ourselves using generative AI. It is now much faster, much more efficient, and we will then summarize and again communicate back with the merchants and give them that feedback from consumers and provide them with what we call solutions or suggestions,” he said. 

As Klook celebrates its 10th anniversary, he said putting technology at the heart of the operation has made the company the leading travel platform in the Asia-Pacific.

“We saw it more as a technology platform and it happens that my passion is travel so let me bring travel into this platform and marry it with technology,” he added.

, who formerly worked in finance, said he did not have the baggage of being a travel agent from day one, allowing him to rethink what travel could be.

“Marrying technology, which has no borders, can scale very fast; it brought us to where we are today, but which is still really just the beginning,” he added.

“I always say the next five years will still be a survival game because, in the last 10 years, the internet and mobile might have disrupted the traditional travel agencies,” he said.

“It’s very relevant how will AI  change the world and in five years’ time AI might be in a completely different form and maybe a lot more integrated into our lives that will change how we plan, and book itineraries and we may or may not be relevant.”

The Hong Kong-founded platform was launched in 2014, and positions itself as a one-stop shop for experiences and travel services, ranging from attractions and tours to local transport and experiential stays in over 2,700 destinations.

P5-billion fund to address gaps in food supply deemed ‘too small’

BUREAU OF CUSTOMS

THE P5-billion fund designed to plug gaps in the food supply could  be inadequate for addressing shortages of key commodities and may be left begging for money with rice cornering the funding, analysts said.

Fermin D. Adriano, a former Agriculture undersecretary, said in a Viber message that the Department of Agriculture’s (DA) allocation is dwarfed by the funding for other commodities.

Mr. Adriano noted that the government’s allocation is much larger for the National Food Authority (NFA), the agency whose task is to maintain a reserve of rice in cases of national emergencies.

Funding will also be an issue, judging from the expected allocation of rice tariffs.

Last week, Congress released a bicameral conference committee report for proposed amendments to the Rice Tariffication Law of 2019 or RA No. 11203. The amendments include about P15 billion in funding for rice procurement and P5 billion for a food security buffer fund for emergencies.

“Based on the amendments the P5 billion will come from excess tariff collections, so (there will be) no sure funding,” Federation of Free Farmers National Director Raul Q. Montemayor said via Viber.

Last week, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the DA is looking at various funding sources to operationalize the purchase and distribution of prime or basic commodities during shortages or price spikes.

Mr. Montemayor said that the DA would need to deal with storage and distribution costs of its stockpile.

“A lot of things still have to be sorted out,” he added.

Republic Act (RA) 7581, or the Price Act, authorizes a buffer fund and other measures to stabilize prices of basic commodities in calamity areas.

The Price Act empowers such a fund to procure, purchase, import, or stockpile any basic or prime commodity.

In a Department Circular, the DA said stockpiled commodities will be distributed for sale at a “reasonable price” to areas hit by shortages or where there is a need to influence changes in the prevailing prices in the area.

The volume of the commodities for stockpiling should not exceed 10 days of the average national food requirement, it said. — Adrian H. Halili

IPEF expected to be up and running next year

REUTERS

THE PHILIPPINES expects the Indo-Pacific Economic Framework (IPEF) for Prosperity to be fully functional next year, with the trade component of the agreement to be substantially complete by the end of 2024.

International Trade Group Undersecretary Allan B. Gepty told BusinessWorld that the Philippines is constantly engaging with its IPEF partners on the remaining pillar.

“The one that is pending right now and being negotiated is the first pillar, which is the trade pillar … and the target is to substantially conclude the same this year,” Mr. Gepty said in a chance interview.

In particular, he said the Philippines would like to achieve by the end of the year the outstanding issues remaining before agreement on the trade pillar.

Launched by the US with its partners in 2022, IPEF aims to advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness across 14 economies.

Besides the Philippines, the other partners under the Framework are Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Singapore, Thailand, and Vietnam.

The four pillars are trade; supply chains; clean energy, decarbonization, and infrastructure; and tax and containing corruption.

The Supply Chain Agreement was signed in November 2023 and came into force in February.

“As far as the Supply Chain Agreement is concerned, they have already established the necessary bodies to ensure the effective implementation of the agreement,” he said.

These bodies are the Supply Chain Council, Crisis Response Network, and the Labor Rights Advisory Board.

“They already conducted their first meeting in July in Washington, DC and the groups that will draft action plans on critical sectors or goods have been established,” he said.

In particular, he said that there will be action plans on critical minerals, semiconductors, and batteries.

Meanwhile, three more agreements were signed by IPEF participating economies in June: the Clean Economy Agreement, the Fair Economy Agreement, and the Overarching Agreement of the IPEF.

“These three agreements are also expected to take effect this mid-October. So, that’s a positive signal to the international community that IPEF is of course functioning well,” he said.

He said that the agreement on clean economy will help generate investment in green transition project, while the Fair Economy Agreement is expected to help establish a fair and conducive business environment.

“That is the very essence of IPEF… basically, we’re united in achieving our vision of a fair, open, connected, secure, and resilient Indo-Pacific,” he said.

Mr. Gepty said that once the trade pillar is signed and ratified by each IPEF partner, the economies can expect the full implementation of the framework.

“What is good is that the Supply Chain Agreement is already effective and that the Fair Economy Agreement, Clean Economy Agreement, and the Overarching Agreement of IPEF are expected to take effect in mid-October,” he said.

“It is essentially complete, so we are just waiting on the Trade Agreement,” he added. — Justine Irish D. Tabile

Companies urged to transition away from ‘compliance-driven’ sustainability reporting

BW FILE PHOTO

COMPANIES should consider voluntarily filing sustainability reports to boost overall compliance, which could help them move away from a “compliance-driven” approach, participants at a sustainability forum were told.

“We should encourage voluntary reporting. I know that the culture of our companies is still compliance driven, but there is room for voluntary reporting and that should be encouraged,” Reyes Tacandong & Co. Strategic Governance and Sustainability Services Head Roberto T. Bascon, Jr. said at the forum in Quezon City last week.

“Companies should also be encouraged to adopt multiple sustainability reporting frameworks. Each framework will have a different audience,” he added.

Mr. Bascon said stronger government enforcement is needed to persuade companies to disclose more on sustainability.

“I know that the Securities and Exchange Commission (SEC) is aware of it, and they have made significant steps to enforce this. One of which is the revised sustainability reporting guidelines,” he said.

Mr. Bascon said companies should also tap technology in preparing their sustainability reports.

“We should invest in artificial intelligence or data analytics, which can help organizations improve the accuracy and efficiency of our reporting,” he said.

SEC Commissioner Javey Paul D. Francisco said separately that the corporate regulator has logged a 95% compliance rate among publicly listed companies (PLCs) for sustainability reporting.

The Philippine Stock Exchange (PSE) currently has more than 280 PLCs.

Mr. Francisco said the SEC could reach full compliance among PLCs by next year.

“It is just a handful (of PLCs) left. Maybe by next year,” he said.

“We expect to see an increase in submissions as we further align the guidelines with recent developments on international corporate sustainability disclosure standards,” he added.

In 2019, the corporate regulator issued Memorandum Circular (MC) No. 4, which laid down the sustainability reporting guidelines for PLCs.

The guidelines are intended to help the companies evaluate their non-financial performance and monitor their progress towards meeting sustainability goals.

The SEC also issued MC No. 5 in February on the Philippine Sustainable Finance Taxonomy Guidelines. The MC provides a framework for investors, businesses, and regulators to ensure that capital is directed toward activities that promote sustainable development. — Revin Mikhael D. Ochave

Navigating the software landscape in the GenAI era

IN BRIEF:

• Traditionally, the choice between custom and packaged software was straightforward — each option presented clear pros and cons aligned with specific business needs. However, the rise of Generative AI (GenAI) has blurred these lines, altering the decision-making process for business leaders.

• GenAI, with its unprecedented capabilities in generating code, creating unique content and personalized user experiences, has added to the dilemma for enterprises on whether customized solutions continue to create a unique competitive advantage.

• Businesses must continue to evaluate the need for customization against the benefits of AI-enhanced packaged solutions.

The rise of GenAI is reshaping the software industry, enabling new ways to create content, automate tasks, and tailor user experiences. Businesses now face a critical decision: should they invest in custom software that is specifically designed for their needs, or should they choose off-the-shelf solutions that are enhanced by GenAI add-ons like customized content and task automation? This choice has significant implications for how software is selected and implemented across enterprises.

For example, the insurance and finance sectors, traditionally reliant on custom-built software for their complex operations, are now moving towards standard, packaged solutions driven by GenAI. Given the need for agility, cost-effectiveness, and digital service demands, this shift showcases the challenges and opportunities in modernizing software systems. Their experiences offer valuable lessons for other industries contemplating similar transitions.

As leaders navigate this decision, they must consider the long-term impact on their business strategy and operations. This article explores the considerations and implications of choosing between bespoke and off-the-shelf software solutions in the age of GenAI.

THE EVOLVING DECISION MATRIX
Custom software is tailored to meet the specific needs of a business, offering a high degree of personalization and flexibility. On the other hand, packaged software provides a ready-made solution that is generally more cost-effective and quicker to deploy but may not cater to every unique requirement.

Traditionally, the choice between custom and packaged software was straightforward — each option presented clear pros and cons aligned with specific business needs. However, the rise of GenAI has blurred these lines, altering the decision-making process for business leaders. The integration of GenAI into software development and deployment processes introduces a new complexity, requiring a more strategic approach to software selection. Like the late 1990s shift in production and manufacturing companies, which moved from proprietary systems to standardized ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems, today’s businesses must consider the automation and cost advantages that such a transition could bring.

CUSTOM SOFTWARE IN THE GENAI ERA
Custom software development, once a time-consuming and costly endeavor, is being transformed by GenAI. AI-driven development tools can now assist programmers in generating code snippets, produce functional and test specifications, and reduce the overall development life cycle. Empirical evidence shows that the appropriate use of GenAI in coding tasks can double the gain in developer productivity. This mirrors the automation of important business functions seen in other industries, such as one-touch customer billing or automated supply-chain planning, which have reaped significant cost advantages from shared services.

However, the challenges of integrating GenAI into custom software cannot be overlooked. It requires a depth of technical expertise and raises ethical questions about data usage and AI-generated content. Additionally, custom solutions demand a focused approach, often necessitating the hiring of specialized developers and heavy investment in IT infrastructure and licenses. This is akin to the banking and insurance sectors, where upgrades to core systems are lengthy and risky due to complex, heterogeneous products and decades-old IT systems.

PACKAGED SOFTWARE AND GENAI
On the other side of the spectrum, packaged software providers are also incorporating generative AI into their products, offering advanced features that were once only possible with custom development. This democratizes access to powerful AI tools, making them available to a wider audience.

This change also makes advanced AI tools more accessible to a wider range of businesses. With these enhanced off-the-shelf products, companies can quickly implement sophisticated solutions and tap into the knowledge of a large user base. However, the generic nature of packaged software may not suit all business requirements. Depending on vendors for updates and new AI features could also lead to potential risks and limitations.

NAVIGATING THE NEW SOFTWARE LANDSCAPE
The age of GenAI is reshaping the software industry, blurring the lines between custom and packaged solutions. Custom software, now more accessible with AI assistance, offers unparalleled customization and competitive advantage. Packaged software, enhanced by AI, provides a cost-effective and quick-to-deploy alternative with a wealth of community support. Businesses must carefully assess their needs, considering factors such as the level of customization required, budget constraints, and the strategic importance of AI in their operations. Whether opting for a custom-built AI-driven platform or an AI-enhanced packaged solution, the goal remains the same: leveraging the transformative power of GenAI to drive innovation and success in the digital age.

As the software industry evolves with the integration of GenAI, businesses are faced with choices that mirror those made by banks and insurance companies. The move towards standard software, driven by the need for new digital services and customer demand for online products, suggests a similar path for businesses across all sectors.

By examining the success factors identified in the transition from proprietary to standard systems, such as technology selection, transformation leadership, team composition, timing, and transparency, companies can navigate this new era effectively. The lessons learned from other industries serve as a guide for businesses to make informed decisions in adopting new software solutions that harness the power of GenAI.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Rajiv Kakar is a technology consulting principal of SGV & Co.