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Philippines’ gross domestic product performance

THE PHILIPPINE ECONOMY expanded last quarter at a pace slightly slower than expected even as full-year growth fell within the government’s target and cemented the country’s place among Asia’s fastest-growing economies, the Philippine Statistics Authority (PSA) reported yesterday. Read the full story.
GDP

How PSEi member stocks performed — January 23, 2018

Here’s a quick glance at how PSEi stocks fared on Tuesday, January 23, 2018.

Banks need human upgrade to remain competitive — study

FOR ALL THE reorganizations the financial services industry has undertaken in recent years, it won’t achieve long-term success unless it dramatically changes the way new managers are hired, consulting firm Oliver Wyman said in a report.

In a survey on the state of finance released on Tuesday, Oliver Wyman found that a “gnawing sense of concern” was afflicting the industry even though it enjoyed a strong 2017.

“Much of the regulation has been absorbed, global prospects are better, valuations have improved, and interest rates have begun to turn,” according to the report. “We don’t encounter a celebratory mood, however, in conversations with bankers and insurers around the world.”

Oliver Wyman researchers found that growth in the financial services industry significantly lagged global technology firms, which have done a better job in meeting customer demand. The industry also fell behind its historic performance. In addition, the long-standing models that once supported profits and returns in banking and insurance have also deteriorated, the report said.

Financial firms still had time to “bridge the customer value gap” and fend off “tech usurpers,” according to Oliver Wyman. The key: bringing men and women with deeper backgrounds in science, technology, engineering, art and math.

Organizations will have to adopt “a dramatically different human capital model, fully integrated business experts with a new set of skills, and spearheaded by business-building, entrepreneurial leaders,” it concluded.

The survey included input from 4,000 customers from the US, UK, France and Australia, and a digital focus group of 100 mass-market customers in the US. — Bloomberg

Government center construction starts in New Clark City

BUILDERS have broken ground on the first phase of the  P13.16-billion National Government Administrative Center in New Clark City, Tarlac.

The groundbreaking covers the construction of offices for government agencies taking up over 60 hectares (ha.) of the 200-ha. complex, as well as areas for business locators and two sports centers.

The sports complex will host athletics and water sports, with completion expected in time for the Southeast Asian Games in 2019.

The athletics stadium will have a seating capacity of 20,000 while the aquatic center will seat 2,000.

“Once completed in 2019, the project’s Phase 1B will commence for the construction of additional government office buildings, government housing units and support service facilities on a 20-hectare land,” the Bases Conversion and Development Authority said in a statement.

“Aside from this, retail and service facilities including banks, health centers and hotels will be put up in adjacent zones.” — Anna Gabriela A. Mogato

Nation at a Glance — (01/24/18)

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

Can friends run a resto? ‘Don’t do it’

DDon’t do it,” said Wren Go, general manager of Made Nice Supper Club—a restaurant in Makati managed by a barkada of millennials who have known each other since their college days in Enderun—when asked about whether or not it’s a good idea to build a business with friends. It was a joke, of course, punctuated by the heavy thud of pasta dough being slammed repeatedly on the table by one of their chefs as the kitchen team tried to come up with its fifth menu. The restaurant changes menus every three months.

“We were fresh out of college when we wanted to open a restaurant in Manila,” Go recalled. Five years of distance as the classmates went their separate ways has made it difficult for him to remember their original restaurant concept. But by October 2016, with the return of chef Jack Flores to Manila with his wife and current pastry chef for the restaurant Gabbi Ramos-Flores Made Nice Supper Club was established in Legaspi Village, Makati.

It was not smooth sailing for our team of cooks and kitchen staff, who are currently between the ages of 22 to 40. “We thought the business plan would be the most difficult part in starting the business,” said Go. “But there’s a lot more to that.” There were disputes over the direction of the business, amplified by the complicated nuances of strong friendships. They made it through. They’re still here and the comforting smell of carrot soup dances in the air as the chefs continued to cook while loudly discussing their new menu concepts. “If you want to start something like this—” Go said, looking back at his friends who stood behind the low cement counter that separated the kitchen from the restaurant, “—then you need to know what you want to do and like what you want to do. If not, it’s going to be really, really hard.”

“It’s really not easy,” he stressed. “I’m not going to say that we don’t have hard times, there are times when we would disagree about something. But we all had a solid foundation, we’ve known each other since college and we already know each other.”

Disagreements were coming from behind the cement counter, but also agreements, and a couple of ideas being tossed around as the chefs in the kitchen continued to brainstorm their menu for the first quarter. That’s all that separates the kitchen from the front of the restaurant, offering guests a clear view of squabbling chefs with their sharp knives and stainless steel ladles, and the chefs a clear view of satisfied guests in wooden communal tables that promotes hearty discussions between friends and family.

Go calls their menu “contemporary American that people mistake for Pinoy… international cuisine with Asian influences.” The simple menu printed on sheets of hard paper does its best to make it not seem intimidating to new customers, naming it after the main ingredient and describing how it’s cooked. Ordering at Made Nice Supper Club os as easy as saying “I’ll have the lamb.”

Speaking of lamb, it’s the experiences of the barkada behind Made Nice Supper Club that helps them come up with their menu. “The lamb dish with arroz negro is a variation of the dish Jack used to cook for Gabbi when they were still dating. Our food is from the heart, it has a story behind it, and well thought of.” The food is visually American (as the Floreses met in America), and without the overwhelming amount of spices Asian cuisine is known for, but with enough to have that taste and feel of home. From juicy steaks, delectable pastas, appetizing vegetable viands and of course, sweet desserts, there’s something for everyone in Made Nice Supper Club.

And like true millennials with allegedly shorter attention spans than the previous generation, the reason why they keep changing their menu every three months is because they don’t want their guests to get bored. The restaurant has gained some loyal customers from it, having a location that’s accessible to members of both the business and residential districts of Makati. Being open for lunch helped too, because the Titas of Makati love their brunch.

Because of this tight knit bond between the founders of Made Nice Supper Club, they have to be hands on when it comes to hiring new people, and you can’t really restrict yourself to hiring just friends and friends of friends.

“We’re really hands on in this restaurant, so we interview potential employees ourselves,” Go said. “We try to look for like minded people so that it will be easier to work together, especially in the kitchen.”

“This is more than just a business, this is a family,” he described. “In most restaurants there’s a divide between the kitchen staff and the front of the house, but here there’s no divide. We eat together at a communal table and we all still work together.”

So maybe it is inadvisable to work with friends, it could be the potential trigger to the destruction of a relationship. But when friends are like family then maybe your potential business has a shot.

Rappler’s uphill battle as a tech startup

By now, much has been debated about online media startup Rappler.com’s troubles on the watch of the Securities and Exchange Commission (SEC): the regulator’s voiding Rappler’s certificate of operation for purportedly violating the constitutional prohibition on foreign ownership of mass media in the country, followed by a subpoena to veteran journalist and Rappler founder‑CEO Maria Ressa on cyber‑libel charges.

The controversy has prompted suspicions about the government’s hand in undermining press freedom in the country. But more than a test case for press freedom, Rappler’s fight to challenge the SEC’s decision can also be seen as an uphill battle of a struggling tech startup.

 

Outdated laws

According to Ressa, Rappler’s case shows that the country’s Constitution is not yet prepared for new tech‑based enterprises—the issue being a microcosm of the startup ecosystem’s complex relationship with government.

“It’s not just Rappler. It’s Uber and Grab,” she told SparkUp at the sidelines of a forum on fake news on January 23 at Far Eastern University, Manila, referring to the controversial encounters of the government with ride‑sharing applications.

“These are completely new industries and our laws are not prepared for it,” she said. “Our laws are outdated and they need to be refreshed for this new age.”

Ressa asserted that the government has a huge role in helping startups and fostering innovation in the country.

“We wanna embrace innovation, we can compete globally, but I think if the government is not aware of its actions we will lose out to countries like Singapore and Malaysia that actually actively support startups communities,” she said.

 

Pivoting

Launched in 2012 by Ressa and other veteran journalists, Rappler was projected to disrupt traditional media in the Philippines, utilizing technology and social media in producing and disseminating news contents.

Their commercial activities include custom content and native advertising under #BrandRap, social media marketing, crowdsourcing and big data projects for clients.

“The important thing for us in media in general is that our future is not just in content creation,” she said. “If that’s the case, we will not survive.”

“We used technology to be able to grow faster than traditional news groups,” she added. “Originally, it was  social media, but now we have also built platforms like Agos, a disaster risk reduction and an anti‑corruption platform.”

According to Ressa, technology and the emergence of social media platforms have “crumbled” traditional business models, especially those of media entities.

“Google and Facebook are coming at us in two directions. Those guys have already taken the lion’s share of all new digital ads spends,” she said. “Facebook is also crippling the credibility of news groups.”

Ressa said the two tech giants have amassed 72% and 85% of total advertisement spending in the country in 2016 and 2017, respectively.

“How do we deal with that? The way we’re dealing with that is pivoting. We think technology has got the answer, it has got to go through data. It is the new oil,” she said, looking forward.

“In the end, to succeed you need access to capital and you can succeed globally. Young, smart Filipinos are super‑creative, but we need to give them the ability to actually create businesses that can scale.”

A co‑working space especially for ‘designpreneurs’ in New Manila

Swatches are important for every kind of artist. Those who work with paints and colors can get palette samples and inspiration from everywhere, and there are online tools that can pull palettes from photos. Those who work with cloth can easily get swatches from retaso and from their neighborhood cloth shop.

Those who work with tiles and paneling however might have a more difficult time in getting swatches. Presenting photos from the internet to your client just won’t do when you’re proposing to redesign a studio condominium. You have to show them the actual material, let them feel a sample of their future home.

That’s where Paperwork PH comes in. A co‑working space in New Manila, easily accessible by any jeep passing by E. Rodriguez Sr. Avenue, it provides its customers access to a library of material swatches and product catalogues that they can use as inspiration, present to their clients, and avail with the help of the Paperwork staff. They have a smorgasbord of materials available, from lighting fixture, furniture and fittings, to different kinds of flooring, panelling, wallpaper and surfaces. You can check out their library online, but this is one of those cases where feeling, not just seeing, is believing.

Paperwork also doubles as the office of PaperSpace, a design consultancy company founded by designers from three Southeast Asian countries: Karen Calalec from the Philippines, Sombat Ngamchalermsak from Thailand, and Narita Cheah from Singapore. “The three of them met and worked together in Singapore,” Janine Jayme, general manager for Paperwork PH, told SparkUp. “They got together and formed PaperSpace. It’s our core business, a design consultancy, and it has offices in Singapore, Bangkok and the Philippines. This happened February last year”

“What happened was they needed a physical office and thus we had Paperwork,” Jayme continued. There are currently two Paperwork branches—Bangkok and New Manila—and a future branch in Singapore that will open this March.

“What makes us different from other co‑work places is that we’re for designpreneurs,” said Jayne. “We have a materials library from all our suppliers. We get preferred rates from those suppliers so if you’re a member here—that means that you have a monthly subscription—you have access to our design library and we can help you get preferred rates from our suppliers. Our suppliers are regional.” An individual or starting designer would have difficulty procuring samples otherwise. They can be expensive, and suppliers might be less enthusiastic in dealing with individuals compared to companies that can buy materials in bulk.

There’s an additional perk for freelancers and fresh graduates. “Our partner architects and interior designers love to mentor, and they encourage freelancers, fresh grads and those taking their practicum to go here,” Jayne explained, adding that Calalec enjoys guiding students. “She loves to mentor people… she has the patience to sit down with students and explain the whole design process.”

“We encouage collaboration,” Paperwork Digital Marketing Manager, Arturo Navarro told SparkUp. “Our tagline is ‘make ideas come to work’. For PaperSpace it’s ‘do what you love with people you trust.’” Paperwork refers their tennants to each other to grow the community, with the advantage of connections to other Paperwork and Paperspace branches.

Even the Paperwork office was made through collaboration. Most of the furniture in the space are also from the suppliers Paperspace uses. If a designer or a client wants to use the furniture in Paperspace in their project, then they can buy it through the co‑working space.

The art in display in Paperwork (this January they have the black and white photography of Marlo Roxas) is also for sale. “We’ve sold a few of her works, and we’re bringing her exhibit in the opening of the Sigapore branch.”

“If you’re with us, we will see your potential, and we can see if you can work with our regional offices as well.”

Renting a space at Paperwork costs ₱500 per day, with full internet access and unlimited coffee, or ₱6000 per month. They also have meeting rooms, virtual offices, and workshop venues for rent.


For more information, email Paperwork at info@paperworkph.com or check out their facebook page fb.com/paperworkph

COMPETITION ALERT: IdeaSpace mounts competition for tech startups

Business incubator and accelerator IdeaSpace Foundation, Inc., is looking for tech startups to be part of its annual startup competition.

Now on its sixth year, the IdeaSpace National Startup Competition aims to help potential tech‑based enterprises grow by providing them with resources such as funding, mentorship, and other operational needs. It was formed to “develop innovation and entrepreneurship as a pathway to economic development,” Goldy Yancha, IdeaSpace associate director, told SparkUp in an interview. “We want equitable opportunities, more capable and to be able to support competent teams,” she added.

The competition draws about 300 applicants every year. Since its launch in 2012, the foundation, through the annual tilt, has supported a total of 68 startups, among which are full‑fledged enterprises such as Cropital, Pinoy Travel, Fetch, Investagrams, Cleaning Lady, and FrontLearners, to name a few.

In screening applicants for 2018, Yancha said IdeaSpace will look into applicants’ unique and innovative technology, business model, market demand for the product or service and clear customer pain point, as well as their ability to integrate and scale in different industries such as telecommunication, healthcare, agriculture, media, mining, and manufacturing.

“We want to see more of teams that are able to build strong, sustainable startups. We’re still at multi‑industry, we’re still at multi‑stage,” she said. “We want to have teams that have the gritt, the execution quotient, and also their startups incorporated in their long‑terms plans.”

The contest, which will run from February to October this year, is consists of four rounds. The top 100 teams out of all that submitted applications will be selected in the initial round and present a two‑minute video pitch. The list will be trimmed down to 50 teams and undergo interview with IdeaSpace’s board of trustees in the following round. In the third phase of the competition, the participants will be further narrowed down to 20‑30 teams, which will join a five‑day boot camp and a six‑week incubation, and will receive ₱50,000 apiece.

In the final round, successful incubatees will demonstrate their final products and business models. From then the top 10 winners will be picked.

Just like in the previous years, winners will receive equity‑free funding worth ₱500,000, on top of other prices such as housing for those living outside Metro Manila, office space,  communications software, legal documentation, and mentorship from Asian Institute of Management and industry leaders, including executives of Hong Kong‑based First Pacific Co., Ltd. (First Pacific).

Deadline of application is on February 2. Interested applicants may visit IdeaSpace’s website and fill‑up the application form.

IdeaSpace is supported by First Pacific, Metro Pacific Investments, PLDT, Meralco, Philex Mining Corporation, Smart Communications, Maynilad, Makati Medical Center, and Riverside Healthcare.

One of First Pacific’s three key Philippine units PLDT, Inc. Hastings Holdings, Inc., is a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., that has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Economy expands at 6.6% in fourth quarter, 6.7% in 2017

The Philippine economy posted 6.6% gross domestic product (GDP) growth in the fourth quarter, the Philippine Statistics Authority (PSA) reported this morning.

The October-December outcome was lower than the previous quarter’s upwardly revised 7%, but was the same pace as the growth recorded a year earlier.

This brings growth in 2017 to 6.7%, matching the median estimate in a BusinessWorld poll last week, and was near the low end of the government’s 6.5%-7.5% target band for 2017.

Service sector — which contributed 47% of GDP last quarter — propped up growth after rising by 6.8% from 7.2% in 2016. The industry sector also grew by 7.3%, slower than the 7.9% recorded in the same period last year.

Output in the agriculture sector rose by 2.4%, a turnaround from the 1.3% contraction in the last quarter of 2016.

On the expenditure side, household spending rose grew 6.1% during the period, slightly lower than the 6.2% recorded in the fourth quarter of 2016.

Government spending was also up by 14.3% from 4.5% while capital formation expanded by 8.2% from 14.7%.

Exports of goods and services rose by 18.6%, faster than 2016’s 13.4%, while imports grew by 17.5% from 15.4%.

Gross national income – the sum of the nation’s GDP and net income received from overseas – registered a growth of 6.2% in the last quarter of 2017 from 6% previously. — Christine Joyce S. Castañeda

A game-changing cancer treatment

Parkway Cancer Centre in Singapore’s Dr. Richard Quek talks about cancer immunotherapy

Cancer is one of the greatest causes of health burden all over the world. According to the World Health Organization (WHO), it is the second leading cause of death globally, and is responsible for an estimated 9.6 million deaths in 2018. The health agency noted that the economic impact of cancer is increasing. In 2010, its total annual economic cost reached approximately $1.16 trillion.

For Dr. Richard Quek, a senior consultant specializing in Medical Oncology at Parkway Cancer Centre in Singapore, the cancer survival rate today is continuously improving with the advances in diagnosis and treatment options.

“The survival rate has improved,” Dr. Quek said. “There are many reasons behind that. Number one, medical reasons — you have better treatment now and better facilities in terms of surgery, radiation and medication. Second, we are better at detecting cancers. So when you detect it early, you have a better chance; you can get better treatment.”

One of the remarkable breakthroughs in treating cancer today, according to Dr. Quek, is the use of immunotherapy. It is a type of cancer treatment that helps the immune system fight cancer by boosting the body’s natural defenses — just like it would with a germ or virus.

Immunotherapy may work by stopping or slowing the growth of cancer cells, stopping cancer from spreading to other parts of the body, or helping the immune system work better at destroying cancer cells, among others.

“If I take out a patient’s tumor — and put it on my own body — the cancer will never grow because [my] immune system can get rid of it. Because the tumor is seen as foreign to me, it is not mine… However, that same cancer in that particular patient is not seen as foreign — the cancer is able to evade the immune system of the patient, thrive and grow,” Dr. Quek said.

Dr. Quek, however, noted that the immune system cannot be overly strong, it has to be well-controlled. In cases of an overactive immune system, the body attacks and damages its own tissues that can result in various autoimmune diseases like lupus and rheumatoid arthritis. On the other hand, a weak immune system will leave the body vulnerable to illnesses, including colds, flu, and other infections.

“So to me, immunotherapy is a huge breakthrough in this modern era. Immunotherapy is very promising, and melanoma is leading the way because it’s the first cancer to start with this treatment,” Dr. Quek who has also special interests in the management of melanoma, sarcoma, gastrointestinal stromal tumor (GIST) and lymphoma.

Despite the significant developments in understanding, prevention, and treatment of cancer, Dr. Quek believes that there is still tremendous opportunity to move the field further.

“We have not been able to cure and eradicate all cancers, yet we can prolong and control the disease. I think there are a lot of opportunities for development and improvement on what we have achieved today but it would require a lot of collaboration with all parties involved including clinicians and scientists. Without collaboration, it’s impossible to move the field forwards,” he said.

In terms of modern cancer care, Dr. Quek said that Artificial Intelligence (AI) may play an important assisting role to the doctor in treating patients with cancer but it would be much longer for AI to completely replace humans.

“I think that AI, in time to come, may take on and maybe even replace human doctors. But it would be some decades away before it can replace oncologists,” Dr. Quek said. “AI is impersonal. While cancer is a disease with a deeply emotive human aspect to it in addition to just treatment. The human aspect is the patient and their family.”

For cancer patients, Dr. Quek has a message worth pondering on: “Cancer can be prevented. Cancer can be detected early. And if a person has cancer, it’s not the end of the world because there are good treatments available. A lot of patients have cancer, and a lot of patients are survivors.”

For more information about cancer, please subscribe to http://ph.parkwaycancercentre.com/news-articles/health-news/.

HealthNews is a monthly publication by Parkway Cancer Centre Singapore.

In the Philippines, Parkway Cancer Centre Singapore are represented by CanHOPE Manila. They act as a link with direct access to the Singapore team providing integrated care throughout a patient’s journey.

For information on the centre and their services, please email canhopemla@gmail.com and visit CanHOPE Manila on Facebook.

​Bustling and burgeoning

Western Visayas, the most populous region in Visayas, is a major economic contributor to the country. In 2016, the gross regional domestic product (GRDP) of the region grew by 6.1% from P305 billion to P324 billion, the sixth highest amount nationwide.

Though the pace of growth was slower than in 2015, when GRDP increased by 8.8%, Ro-Ann A. Bacal, Region VI director of National Economic and Development Authority, noted in a press conference the trends in the region that signified that its economy is healthy. Among these were the declines in inflation and underemployment, and increases in employment, exports and tourist arrivals.

The business process outsourcing industry (BPO), Ms. Bacal added, remained one of the region’s major job generators. A total of 47 BPO offices were set up in 2016, and together they employed about 21,500 people. Also that year, the industry posted $22.6 million in revenue, exceeding the 2015 revenue of $22.4 million.

Western Visayas is doing well as a whole. But Iloilo and its namesake capital city are the ones making decidedly significant splash. A quick scan of the corporate and economic news of the past few years suggests that the province and the city are increasingly attractive to both local and international investors.

On the BPO front, some of the country’s top real estate companies are aggressively building offices in Iloilo City. Last year, it was reported that Andrew L. Tan’s Megaworld Corp. was going to spend P5 billion to put up four to five buildings within the next three years in the Iloilo Business Park it has developed. This would increase the total office space inventory of the mixed-use development to 100,000 square meters (sq. m). By the time the report was released, the park had an office space inventory of 45,000 sq. m.

“During the last three years, we have experienced a spike in the demand for office spaces in Iloilo Business Park. Thus, we expedited the construction of our first four towers and we have decided to build more to see the demand,” Jericho P. Go, senior vice-president at Megaworld, was quoted as saying in news reports.

Adding those buildings would also allow the park to accommodate more BPO workers. In 2016, it was catering to about 15,000 office workers from seven BPO companies. “We continue to see a bright prospect in Iloilo’s BPO industry. Several companies, most of them are first-timers in Iloilo, want to come in and expand here,” Mr. Go said.

According to the real estate consultancy firm Colliers International, BPO firms were driving demand for office spaces in the city. “The government thrust to promote the province as a major investment hub in the Visayas, coupled with the planned projects of the country’s major developers, provides a positive outlook for Iloilo. Companies such as iQor, WNS, Nearsol, and Yazaki Philippines EDS Technoserve took up spaces last year and started operations this year,” Colliers said in its second-quarter provincial property report released last year. Apart from Megaworld, the property developers operating in Iloilo include Ayala Land, Inc., SM Prime Holdings, Inc. and Robinsons Land.

In the 2016 Cities and Municipalities Competitive Index, developed by the National Competitive Council of the Philippines, Iloilo City ranked eighth among highly urbanized cities. “Thus, the provincial city has remained in the radar of foreign BPO investors. The number of educational institutions has also made Iloilo a center for learning in the Visayas region and consequently a viable area for companies to locate in,” Colliers said.

The firm noted that rental rates were among the things that attracted investors. Last year’s second-quarter rates ranged between P250 to P550 per sq. m. “This price is quite attractive for BPO tenants, especially for those looking for alternatives to Metro Manila and Metro Cebu,” it added.

Iloilo did not go unnoticed by foreign investors. In May of last year, 14 businessmen from China went on a four-day mission to Iloilo — particularly the capital and other parts of the province — to study investment opportunities in human resource training, tourism and the BPO sectors. “My purpose of coming over is for business tourism and human resources development training,” Danny Chou of Ambrose Financial Services (H.K) Ltd. was quoted in a BusinessWorld report, adding that his company was also looking at opportunities in the BPO industry and the field of English-language training.

Meanwhile, Mike Moon, trade and investment director at the British Embassy, told a reporter of this paper last year that the British Ambassador to the Philippines Daniel Pruce had visited Iloilo to assess the possibility of supporting development projects.

The Department of Trade and Industry announced in September of last year that an American outsourcing company for clinical services was expanding its operations in Iloilo City this year in order to meet growing customer demand. This expansion by SHEARWATER Health would raise the company’s investment in the country to $7 million and the number of staff to about 3,000.

An economic zone may soon materialize in Iloilo, which will undoubtedly boost the province’s reputation as an attractive investment destination. Last year, a feasibility study conducted by the University of Asia and the Pacific showed that building an ecozone in the province was a viable proposition. “The indicators show that it is sustainable to put up an economic zone in the province considering that it has an adequate water supply, has a port that can be expanded, enough power supply, stable peace and order, and availability of manpower,” Gov. Arthur Defensor, Sr. was quoted in a BusinessWorld report.