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Horror film Nosferatu gives a voice to its heroine, Lily-Rose Depp says

LONDON— Filmmaker Robert Eggers brings a classic folklore vampire back to the screen in Nosferatu, a gothic horror film centered on the trajectory of its female heroine, played by Lily-Rose Depp.

Written and directed by Mr. Eggers, the movie is a reimagining of the 1922 silent film Nosferatu: A Symphony of Horror, which in turn was inspired by Bram Stoker’s 1897 novel Dracula.

Nosferatu is set in a fictional Baltic city in the 1830s and follows young bride Ellen Hutter (Ms. Depp), who has been haunted by horrifying visions since childhood.

As her estate agent husband Thomas (Nicholas Hoult) prepares to set out on a business trip to Transylvania, Ellen’s condition deteriorates. Thomas is promised that his meeting with the elusive client Count Orlok (Bill Skarsgard) will be richly reimbursed, allowing the young couple to start building their life together. Instead, the encounter triggers a terrifying chain of events.

“There was just so much for me to dive into,” Ms. Depp said at the film’s premiere in London on Wednesday. “To me it was about really depicting the emotional battle that she’s going through, the internal battle that’s going on within her, and to give a voice to this woman that at the time kind of wouldn’t have had one. That was very special.”

Mr. Eggers, 41, whose credits include The Lighthouse and The Northman, said he had wanted to make the movie since seeing the original film at the age of nine.

“I just wanted to make a great sweeping gothic romance that was also legitimately a scary horror movie,” he said, adding that the vampire he set out to depict was “the vampire from folklore that hundreds of years ago people actually thought was real.”

For Mr. Skarsgard, whose other on-screen transformations include the clown Pennywise in the 2017 movie It, said becoming Count Orlok required hours of work with prosthetics teams and vocal coaches.

“The face and the hands, which I wore when I had clothes on in the movie, was three hours. And the full body ones for where I’m not wearing clothes in the movie was six hours,” the Swedish actor said.

Nosferatu also stars Aaron Taylor-Johnson and Emma Corrin as family friends who take Ellen in during Thomas’ travels and Willem Dafoe in the role of Professor Albin Eberhart Von Franz.

“I think at its heart it stays true to the very original deep roots of the Nosferatu folklore. I think people who have a strong awareness of that history will really appreciate that,” said Ms. Corrin.

“I also think it really embraces the love story in so many iterations. It’s about sisterly love. It’s about forbidden love and shame. It’s about marital love. It’s about loving yourself despite your dark sides.”

Nosferatu begins its global cinematic rollout on Dec. 25. — Reuters

Testing job applicants

I’ve been in human resources (HR) for more than 25 years but am now working as an executive handling operations in a major organization. I asked our HR department head about our hiring practices. What’s the trend? Do organizations still conduct ability or aptitude tests for applicants? If not, why not? — Old Dog.

Every day, many organizations bombard print and social media with hundreds or thousands of job vacancies. In the business process outsourcing (BPO) industry, they boast of their one-day hiring system that eclipses the traditional way of hiring. As long as applicants can confidently express themselves in English, they are hired right away.

BPO employers don’t bother if applicants have experience, the right education, or issues with their previous employers as long as they can do the job. One-day hiring has become almost a fad for them, but it is necessary to retain major clients. The truth is, the BPO industry is an exception rather than the rule.

What’s the trend of best practices outside BPOs? I talked to some active practitioners in HR who told me that the one-day hiring is unwise. It does not apply to other industries that are thinking of the conventional approach as the right step to hire, motivate, and maintain the right people in the long term.

Employers who rely on testing prefer ability tests, aptitude tests, and personality tests, among others. However, employers must be cautious in conducting these tests. They are just one of the tools in the selection process. Therefore, test results should not be the sole basis for choosing the top candidates.

TYPES OF TEST
If you’re bent on conducting tests, you must limit it only to the top three candidates on the shortlist as the results need the interpretation by qualified psychometricians and psychologists. This would also help you determine the ranking of the three. In other words, don’t require testing from all job applicants as it would be expensive and time-consuming, either way for both in-house and external psychometricians.

Don’t copy test questionnaires. There is a risk of infringing on the copyrights of institutions like the Philippine Psychological Corp. and the Philippine Psychological Association. Even if you copy the questionnaires, you’ll still need the services of experts to interpret the results.

Also, avoid conducting online tests, even if they’re free, as they are overly generic and may not be culturally specific to the Philippines or other cultures.

Having provided you with these cautions, let’s move on to the types of test appropriate for job applicants.

Generally, there are four types to determine the candidates’ ability to do the job. They focus on ability, aptitude, performance, personality, and honesty or integrity:

Ability test. This assessment tool measures a variety of areas ranging from verbal reasoning, numerical ability, problem-solving, motor or spatial agility, mechanical ability, or finger dexterity such as typing in a computer or assembling a product. Some examples include IQ, Verbal Reasoning, Numerical Reasoning, and Abstract Reasoning tests.

Aptitude test. This defines the applicants’ aptitude or their inclination to hard work, among other desirable traits, capacity for learning, such as a new language, and their general suitability for the job. It is a standardized test to determine if a person is likely able to develop the skills required for a specific kind of work.

Performance test. This covers a broad range of engineering or functional evaluations. For example, when you test an applicant for the job of clerk, you validate their typing and letter-composing skills.

Personality test. This type of test aims to describe the aspects of an applicant’s character that remain stable throughout that person’s lifetime, patterns of behavior, inner thoughts, and feelings, similar to what a Rorschach test could reveal. This test answers the following questions: How does this person compare to others? How was this person’s personality developed? What is his relationship style?

Honesty or Integrity test. This test is job-specific, tailored for those handling fiduciary tasks like bank tellers or supermarket cashiers. However, this poses a legal and ethical issue as it could be considered an invasion of privacy or may violate the constitutional right against self-incrimination.

INTERVIEW
By and large, the job interview should be the cornerstone of the hiring process, regardless of the job you’re trying to fill. This requires, however, the expertise of hiring managers and the requisitioning department head to ask questions about actual and recurring situations that are happening in the workplace.

There should be no more trite “strengths and weaknesses” questions, with answers that can be found on the internet. This and other stale questions have been memorized by job applicants. In short, don’t rely on those questions. HR must develop a training program that should help interviewers objectively choose the best person for the job.

Without the proper training, no amount of work experience can help you. Experience is good but if you’re doing it badly, you’re only perpetuating a bad practice. Preparation is key to a successful job interview.

 

Bring Rey Elbo’s Superior Subordinate Supervision program to your management team. Contact him on Facebook, LinkedIn, X, or e-mail elbonomics@gmail.com or via https://reyelbo.com

Impeaching a Vice-President

VICE-PRESIDENT SARA DUTERTE-CARPIO — PHILIPINE STAR/ RYAN BALDEMOR

Impeachment is back in the national conversation, what with some House members initiating an impeachment complaint against the Vice-President. Employing the “kitchen sink” approach, the complaint boasts of 24 articles of impeachment against Sara Duterte and apparently works under Stalin’s dictum that “quantity has a quality all its own.”

Set aside obvious issues regarding timing and perhaps the numbers required for a possible Senate trial, the House complainants seem to be of the belief that if “less is more,” then “more must be more more.”

In any event, in the Philippines, impeachment is found in Article XI(2) of the Constitution:

“The President, the Vice-President, the Members of the Supreme Court, the Members of the Constitutional Commissions, and the Ombudsman may be removed from office, on impeachment for, and conviction of, culpable violation of the Constitution, treason, bribery, graft and corruption, other high crimes, or betrayal of public trust. All other public officers and employees may be removed from office as provided by law, but not by impeachment.”

The grounds are slightly different from that in the US Constitution, which states: “The President, Vice-President and all civil Officers of the United States, shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors.”

Despite the differences, statutory construction tells us that both provisions envision utterly grave offenses committed by the subject government official. Whether that offense need be committed against the State or merely an individual is subject for another discussion.

But it does lead us to a discussion on whether impeachment is even a necessary measure. Are there other ways to hold a sitting vice-president accountable, such as a criminal suit?

Note that the Constitution is silent as to the issue of vice-presidential immunity (and for that matter, presidential immunity as well). The Supreme Court has not had the opportunity to address the issue directly but has done so numerous times regarding presidential immunity. In 2021’s Nepomuceno vs Duterte, the Supreme Court declared that:

“Presidential immunity from suit remained preserved in our current system.

“While the concept of immunity from suit originated elsewhere… at this juncture, we need only concern ourselves with immunity during the President’s tenure, as this case involves the incumbent President. As the framers of our Constitution understood it, which view has been upheld by relevant jurisprudence, the President is immune from suit during his tenure.

“Unlike its American counterpart, the concept of presidential immunity under our governmental and constitutional system does not distinguish whether or not the suit pertains to an official act of the President. Neither does immunity hinge on the nature of the suit. The lack of distinctions prevents us from making any distinctions. We should still be guided by our precedents.

“Accordingly, the concept is clear and allows no qualifications or restrictions that the President cannot be sued while holding such office.”

As for the rationale in granting immunity? It’s “to assure the exercise of Presidential duties and functions free from any hindrance of distraction, considering that being the Chief Executive of the Government is a job that, aside from requiring all of the office-holder’s time, also demands undivided attention.”

Now whether that reasoning can be applied to vice-president is something that needs to be pondered on.

Finally, there’s the canard that impeachment is a “political process” and hence legal principles, the rules of evidence, fair play, and logic do not apply. Not true and they do.

The Senators, before being part of an impeachment court, need to take an oath (or affirmation, see Art. XI(3[6])). That oath requires them to impart “justice,” which is clearly a legal standard:

“I solemnly swear (or affirm, as the case may be) that in all things appertaining to the trial of the impeachment of ______ ______, now pending, I will do impartial justice according to the Constitution and laws: So help me God.”

The key portion here is: “impartial justice according to the Constitution and laws: So help me God,” which hardly lends to an interpretation of anything goes politically.

Furthermore, the presiding officer when the impeached official is the president is the Supreme Court chief justice, thus lending legal and judicial assurance to the proceedings, as well as ensuring participation of all three branches of government.

Citing Alexander Hamilton (in Federalist No. 65), Alan Dershowitz points out that the meaning of “high” crimes are “those offenses which proceed from the misconduct of public men, or, in other words, from the abuse or violation of some public trust. They are of a nature which may with peculiar propriety be denominated political, as they relate chiefly to injuries done immediately to the society itself.”

In short and Dershowitz emphasizes: “Hamilton didn’t say the process of impeachment is entirely political. He said the offense has to be political.”

But really, the best way to hold public officials accountable is to vote the undeserving clear out of office.

 

Jemy Gatdula is a lawyer specializing in international economic law and the law of armed conflict, as well as constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

How PSEi member stocks performed — December 5, 2024

Here’s a quick glance at how PSEi stocks fared on Thursday, December 5, 2024.


Indian BPOs attracted to PHL by cheap rent — Santos Knight Frank

PETR MAGERA-UNSPLASH

THE Indian business process outsourcing (BPO) industry is expected to expand its presence in the Philippines due to the affordable office space, according to global real estate services firm Santos Knight Frank.

“What you’re seeing now in India, not just Bangalore, but in Delhi, Mumbai, Pune, Madras, etc., is record levels of demand, take-up, absorption, need for outsourcing,” Rick Santos, chairman and chief executive officer of Santos Knight Frank, said at a briefing on Thursday.

In the third quarter, Metro Manila emerged as the third-cheapest city for prime office rents in the Asia-Pacific, according to a report by Knight Frank Asia.

The average prime office in Metro Manila cost $29.64 per square foot (sq.ft.) in the three months to September.

Metro Manila office rents make it competitive against tier-1 and tier-2 Indian cities like Bangalore, Mumbai, and New Delhi, according to Morgan McGilvray, senior director of occupier strategy and solutions at Santos Knight Frank.

“When you wonder why these Indian BPOs are looking at the Philippines rather than continuing to expand in India, you could point to the cost of office space as one of the main drivers,” he said at the briefing.

Metro Manila occupancies stood at 20% in the third quarter, with around 260,000 square meters (sq.m.) of new office space due to be completed in the second half, bringing supply to 8.6 million sq.m. this year, up from 8.3 million sq.m. in 2023.

In 2014 office stock was only 3.3 million sq.m., Mr. McGilvray said.

“This market has more than doubled in size over the last 10 years. That’s quite a bit of growth. You’re not going to see that in other places in the world.”

It also expects new office builds to increase to 275,000 sq.m. in 2025, before falling to 37,600 in 2026, 46,000 in 2027, and 62,000 in 2028.

Makati City had the highest asking prices for rent at P1,227, with a vacancy rate of 18.3% and a supply of 1.5 million sq.m. in the third quarter. This was followed by Taguig with average rent of P1,280 and a 12.4% vacancy rate, and Alabang P787 and a vacancy rate of 22.7%

Mr. McGilvray also noted that developers are expected to repurpose old POGO (Philippine Offshore Gaming Operators) space for BPO use. The refurbishment of old POGO spaces affected by the government’s ban will take around one to two months, he said. — Beatriz Marie D. Cruz

Laguna Lake rehab delisted from PPP project pipeline

PHILSTAR FILE PHOTO

THE GOVERNMENT has removed six projects from its public-private partnership (PPP) pipeline, led by the P763.54-billion Laguna Lake Rehabilitation and Development Project.

Also delisted by the PPP were local unsolicited projects such as the P20-million Butuan City Digitalized Traffic Enforcement Project, and an P800-million Comprehensive Provincial Waste Management project in Quirino province.

Unsolicited national projects also delisted were the P8.5-billion Tumauini River Multipurpose Project, the P160-million Food and Drug License and Clearance System, and the P7.21-billion combined 17-MW Upper Sampaloc and 8-MW Lower Sampaloc Hydroelectric Power Project.

Reasons for delisting included rejection by the Implementing Agencies (IA) upon evaluation, changes in mode of implementation, and delisting by the NEDA-Investment Coordination Committee during the approval phase.

Meanwhile, seven projects were added to the PPP pipeline. Local unsolicited projects included the P200-million Operation & Maintenance Including Supply and Installation of Laboratory Equipment and Laboratory Information System in Antipolo City and the P2.1-billion Cavite Integrated Waste Management Services project.

The five national projects added were the Floating Solar Power Generation Facility at Pantabangan Reservoir, the Jalaur River Multi-purpose project-Phase 2, the Irrigation Canals Integrating Renewable Energy Systems project, the P29.39-billion 3,000 TPD Manila Waste-to-Energy Facility Project and the P9.6-billion RENEWSTABLE Green Hydrogen Power Plant in Marinduque.

The PPP said other changes to the list included the upgrade, expansion, operations, and maintenance contract for the Laguindingan International Airport Project, which has an estimated cost of P12.75 billion.

This was removed from the pipeline database following its award and is now reflected in the PPPC database of projects under implementation, it said.

The P360-million Santiago City Hemodialysis Center Project was also removed from the pipeline database following its award. — Aubrey Rose A. Inosante

Marcos-Duterte political rift not seen affecting economy, World Bank says

VICE-PRESIDENT SARA DUTERTE-CARPIO — HOUSE OF REPRESENTATIVES OF THE PHILIPPINES FACEBOOK PAGE

THE World Bank said on Thursday that the feud between President Ferdinand R. Marcos, Jr. and Vice-President Sara Z. Duterte-Carpio will not have an immediate effect on the economy.

“While the political tensions have recently increased, no major influence on the economy is expected at this stage,” the World Bank said in its Philippine Monthly Economic Developments for November, published on Dec. 4.

As the midterm elections loom and both sides exchange inflammatory rhetoric, two separate impeachment complaints have been filed against Ms. Duterte, citing betrayal of public trust, bribery, and plunder, arising from an ongoing probe into the use of confidential funds at the Office of the Vice President and at her former cabinet post, the Department of Education.

GlobalSource country analyst Diwa C. Guinigundo said in a commentary that “outside politics, all these volatile developments could certainly lead to some market backlash.”

At a recent Cabinet meeting, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said rising political tensions will have minimal impact on the economy, adding that government operations are “business as usual.”

The World Bank also noted that “short-term exchange rate fluctuations are not seen likely to influence monetary policy settings.”

The bank pointed out that Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. had “indicated the possibility of further peso depreciation, noting that only significant and sustained swings in the exchange rate would warrant consideration by monetary policymakers,” whether to continue or pause the BSP’s easing cycle.

The Monetary Board could deliver another rate cut either at its December policy review or the meeting after, Mr. Remolona has said. — Aubrey Rose A. Inosante

TDK Corp. opens second factory in Laguna

TDK

THE Philippine unit of TDK Corp., a Japanese electronic components and devices company has opened a second factory in Laguna TechnoPark, according to the Philippine Economic Zone Authority (PEZA).

In a statement on Thursday, PEZA said that the new plant, opened on Dec. 3, took in investment of P2.5 billion from TDK Philippines Corp. (TPC).

The new facility is expected to result in the hiring of more than 400 workers in the next three years.

“The new factory is expected to create hundreds of new opportunities for local talent, foster partnerships with small and medium enterprises, and enhance the Philippines’ global competitiveness,” PEZA Director General Tereso O. Panga said.

“With this expansion, TPC strengthens its role as a key driver of industrial growth — providing quality jobs, advancing technology, and contributing to sustainable development not only of the province but the entire nation,” he added.

TDK manufactures electronic parts and components and electronics and communication devices. It operates more than 250 manufacturing, research and development, and sales sites in over 30 countries.

Since its registration with PEZA in 1997, TPC has injected more than P12 billion of investment in its facilities in Laguna and Batangas and employed 5,000 staff.

In a separate statement, PEZA said that it signed a registration agreement with XRC Mall Developer, Inc.

This officially seals the proclamation of community mall Xentromall Antipolo as a special economic zone.

On Nov. 25, President Ferdinand R. Marcos, Jr. issued Proclamation No. 752, which designated the mall as a new PEZA-registered IT (information technology) center.

“XRC currently operates XentroMall Batangas and has plans to put up integrated and mixed-use ecozones in other locations in Luzon, contributing to PEZA’s goal of further strengthening the ecozone development program in the countryside,” PEZA said. — Justine Irish D. Tabile

Peso returns to P57 level after CPI data

BW FILE PHOTO

THE PESO climbed back to the P57-a-dollar level on Thursday to post its best finish in more than six weeks as November inflation accelerated in line with expectations, which could affect the Bangko Sentral ng Pilipinas’ (BSP) policy decision this month.

The local unit closed at P57.88 per dollar on Thursday, strengthening by 35 centavos from its P58.23 finish on Wednesday, Bankers Association of the Philippines data showed.

This was the peso’s best close in more than six weeks or since it ended at P57.59 on Oct. 21.

The peso opened Thursday’s session at P58.18 against the dollar. It traded stronger than Wednesday’s close the entire session, as intraday best was at P57.855, while its worst showing was at just P58.21 versus the greenback.

Dollars exchanged decreased to $1.61 billion on Thursday from $1.72 billion on Wednesday.

“The peso resumed its recovery supported by stronger local CPI (consumer price index),” a trader said by phone.

Philippine CPI picked up to 2.5% in November from 2.3% in October, the government reported on Thursday.

Still, this was slower than the 4.1% print in the same month a year ago and was within the BSP’s 2.2%-3% forecast for the month.

The November inflation print matched the median estimate in a BusinessWorld poll of 15 analysts conducted last week.

For the first 11 months, headline inflation averaged 3.2% in the 11-month period, a tad faster than the BSP’s 3.1% full-year baseline forecast but well within its 2-4% annual goal.

The BSP Monetary Board will hold its last policy meeting for the year on Dec. 19.

The peso strengthened amid the seasonal increase in remittances ahead of the holidays, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.

For Friday, the trader sees the peso moving between P57.70 and P58.10 per dollar, while Mr. Ricafort expects the peso to range from P57.75 to P58. — A.M.C. Sy

European firms see growth in PHL trade, investment over next 4 years

MOST European firms doing business in the Philippines are expecting trade and investment to increase in the next four years, according to a report by the European Chamber of Commerce of the Philippines (ECCP).

The ECCP, in its 2024 Business Sentiment Survey Report released, collected 150 responses from ECCP member companies between November and early December.

According to the report, 85% of the respondents said that they expect the level of their trade and investment to increase in the next four years.

Meanwhile, 11% expect no change, and 3% are projecting a decline.

Around 81% of the respondents also expressed plans to expand over the next four years, while 7% said they expect to contract.

According to the ECCP, 69% of the respondents cited the Philippine economic recovery and growth opportunities as factors behind expansion plans.

“This optimism is supported by the country’s strong economic fundamentals, including positive GDP growth in recent years and in the first three quarters of 2024,” the ECCP said.

Some 63% of the respondents also cited the stable government and political system as behind any expansion plans.

Some 64% of the companies surveyed said the Philippines has increased importance in terms of revenues in the last two years.

The survey also examined the Philippines’ attractiveness as an investment destination, supplier market, and end-user market over the last two years, with 59% saying conditions have generally improved compared to elsewhere in the region.

According to the report, respondents have an overall positive expectations for the Philippines over the next four years.

“They anticipate continued economic growth driven by initiatives such as public-private partnerships, robust private consumption, rising investment spending, a growing population, and improved infrastructure, among other factors,” it said.

“Respondents also expected foreign investments to come in with the passage of several economic liberalization laws, such as the amendments to the Public Services Act, Retail Trade Liberalization Act, and the Foreign Investment Act,” it added.

However, the report cited the need for the government to “adopt a more proactive approach” in addressing corruption, accelerating digitalization, and streamlining regulations.

In particular, 75% of the respondents cited significant barriers to investment and business activity in the Philippines.

“This suggests that addressing these obstacles is crucial for further economic growth and attracting foreign direct investment,” the report concluded. — Justine Irish D. Tabile

Index drops to 6,600 level on inflation pickup

BW FILE PHOTO

PHILIPPINE SHARES dropped to the 6,600 level on Thursday as headline inflation accelerated in November.

The main Philippine Stock Exchange index (PSEi) fell by 0.58% or 39.19 points to end at 6,690.77 on Thursday, while the broader all shares index dropped by 0.41% or 15.59 points to close at 3,776.89.

“Philippine shares slid below 6,700 once again with investors selling on news after the November consumer price index came in slightly higher than the previous month,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Headline inflation picked in November as typhoons pushed up prices of vegetables, meat and fish, the Philippine Statistics Authority reported on Thursday.

The consumer price index (CPI) rose to 2.5% year on year in November, faster than the 2.3% print in October but slower than 4.1% in the same month a year ago.

This was within the Bangko Sentral ng Pilipinas’ (BSP) 2.2%-3% forecast for the month and matched the median estimate in a BusinessWorld poll of 15 analysts.

For the first 11 months, headline inflation averaged 3.2% in the 11-month period, a tad faster than the BSP’s 3.1% full-year baseline forecast but well within its 2-4% annual goal.   

“Wall Street edged higher Wednesday as investors awaited Friday’s US employment data, with forecasts of 214,000 new jobs in November,” Mr. Limlingan added.

On Wednesday, the Dow Jones Industrial Average rose by 0.69% or 308.51 points to 45,014.04; the S&P 500 gained by 0.61% or 36.61 points to 6,086.49; and the Nasdaq Composite surged by 1.3% or 254.21 points to 19,735.12.

“The local market extended its decline as investors maintained a cautious stance while waiting for new key catalysts,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The exit of foreign funds also continued to weigh on the market,” he added.

Net foreign selling declined to P468.59 million on Thursday from P537.32 million on Wednesday.

Majority of sectoral indices closed lower on Thursday. Services declined by 1.86% or 39.33 points to 2,073.69; property went down by 0.64% or 16.37 points to 2,507.87; industrials dropped by 0.59% or 54.97 points to 9,180.33; and financials sank by 0.29% or 6.72 points to 2,255.88.

Meanwhile, holding firms rose by 0.39% or 22.38 points to 5,730.61, and mining and oil increased by 0.16% or 12.54 points to 7,494.05.

Value turnover dropped to P6.33 billion on Thursday with 862.86 million shares changing hands from the P7.96 billion with 507.68 million issues traded on Wednesday.

Market breadth was negative as decliners outnumbered advancers, 118 versus 87, while 50 names closed unchanged. — Revin Mikhael D. Ochave

Industrial firms see AI as priority but lack of readiness an issue — analysts

FREEPIK

ARTIFICIAL INTELLIGENCE (AI) is considered a priority item by industrial companies, Bain & Co. said, citing the results of a study, though companies worry about unpreparedness to deploy the technology and lack of resources.

“More than half the leaders of industrial companies we surveyed say that AI is a top three priority, but many companies lack the vision, resources and data to capitalize on it,” Bain said in a statement on Wednesday.

Bain views AI use in “supply chain planning, procurement enhancements, manufacturing optimization, and engineering augmentation” to be “emerging AI opportunities.”

By utilizing AI in the supply chain, Bain said companies could gain a 15%-20% productivity boost and improve forecast accuracy.

In procurement, a 5% to 7% increase in sourcing savings can be expected, it said, along with higher compliance at 2% to 10%. Maintenance expenses can also be lowered by 10% with a 5% to 10% yield improvement.

In addition, a 50% to 80% increase in productivity and 20% to 25% costs savings in engineering can be achieved with the help of AI, Bain said.

Separately, 96% of Philippine organizations surveyed by Cisco, said they have a ‘highly defined’ AI strategy in place or are in the process of developing one.

“Nothing can be deployed effectively in an organization without a clear strategy, and the same is true for AI,” Cisco said in its 2024 AI Readiness Index report.

However, the technology company noted that organizations’ AI readiness in multiple areas, such as talent and data, across the Asia-Pacific, Japan, and Greater China region declined this year.

“This means that despite the focus and investment, business leaders do not feel they have made enough progress towards their AI ambitions,” Cisco said.

In terms of adapting, deploying, and fully leveraging AI, 44% of respondents in the Philippines reported ‘high readiness,’ it added.

Further, the talent readiness of organizations in the country fell to 30% from 32% last year.

“The challenge for most organizations may lie in the lack of knowledge and skill to ensure compliance with the policies and protocols in place,” Cisco said. — Almira Louise S. Martinez