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Blockchain can shield companies from cyberattacks, tech outages

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By Aubrey Rose A. Inosante, Reporter

BLOCKCHAIN TECHNOLOGY can help local businesses improve their resilience against data breaches and downtime caused by information technology (IT) outages, ICP Hub Philippines said.

Blockchain is a digital ledger that records information across a network of computers. It stores data in a series of connected “blocks” that contain records of transactions and other information, and once a block is added to the chain, it cannot be changed, making the data secure and transparent.

ICP Hub Philippines is a nonprofit organization that aims to boost blockchain education by adopting Internet Computer Protocol (ICP). It will launch an incubation program in the fourth quarter and will provide grants to interested companies and startups.

“Because it’s going to be living on the blockchain, it’s going to be tamperproof. Even if there are many hackers, it’s almost impossible. How can you hack node providers globally when you don’t know where [and] there are so many?” Nelson Tung Lumbres, cofounder of ICP Hub Philippines, said in a video call with BusinessWorld on Aug. 29.

In contrast, data stored on centralized servers controlled by an entity can be manipulated, Mr. Lumbres noted. Node providers validate transactions made in the blockchain to maintain its integrity, he added.

Blockchain can also help businesses avoid the risk of expensive downtime if a similar event like the global technology outage in July that was caused by a cybersecurity software update, he said.

During that time, blockchain networks like Bitcoin were not interrupted, while numerous services run by centralized services such as airlines and retail systems were affected, Mr. Lumbres said.

Unlike traditional systems that rely on centralized servers or data centers, a blockchain network operates across numerous nodes or computers spread around the world. This means that even if some nodes experience issues or go offline, the rest of the network continues to function and maintain the integrity of the data.

“We currently operate in a centralized environment, which is fine. Transitioning to a decentralized model won’t happen overnight. However, if enterprises are concerned about downtime, what I foresee in the coming years is a mirroring approach,” Mr. Lumbres added.

“Right now, organizations like ICP Hub Philippines aim to provide blockchain as a service. Rather than immediately replacing existing IT systems, the goal would be to use blockchain as a supplementary backup option,” he said.

CHEAPER DATA STORAGE
“For a traditional company, you’ll be hosting your website on a traditional server like Amazon Web Service, or Microsoft Azure, you’ll be paying that on a monthly basis,” he said when asked about the difference between a traditional company running on servers versus a firm using an ICP blockchain.

Mr. Lumbres added that it would be cheaper for companies to build their platforms on ICP as it only requires $5 to store one gigabyte of data.

“Additionally, when their users increase, they need to increase their servers, and that’s going to be stored on a cloud. If they opt for their own data center, it often ends up in a basement or similar space.”

However, the adoption of blockchain in the Philippines remains low due to a lack of awareness and developers, Mr. Lumbres said.

“I believe our government is open to blockchain, but it needs to create more opportunities for its integration. The government needs to have someone who will not politicize this process and instead oversee, facilitate, and maximize the benefits of having a blockchain,” he added.

Philippine banks’ assets rise to P25.93 trillion at end-July

BW FILE PHOTO

THE PHILIPPINE banking industry’s assets jumped by 12.24% year on year as of end-July, Bangko Sentral ng Pilipinas (BSP) data showed.

Lenders’ combined assets increased to P25.93 trillion at end-July from P23.10 trillion a year prior, according to preliminary BSP data posted on its website.

However, this inched down by 0.998% from the P26.19 trillion recorded as of end-June.

Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP), net of allowances for credit losses.

“The latest increase in banks’ total assets could be largely attributed to the faster, double-digit growth in banks loans, continued growth in bank deposits, and earnings growth that also added to banks’ capitalization,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Broken down, the banking sector’s total loan portfolio inclusive of IBL and RRP climbed by 10.95% to P13.73 trillion as of end-July from P12.37 trillion in the previous year.

Net investments, or financial assets and equity investments in subsidiaries, increased by 12.53% to P7.69 trillion from P6.83 trillion a year ago.

Meanwhile, cash and due from banks stood at P2.46 trillion as of end-July, inching down by 0.99% from P2.48 trillion a year earlier.

Net real and other properties acquired increased by 4.04% to P110.11 billion from P105.83 billion a year ago.

Banks’ other assets surged by 48.74% to P1.95 trillion from P1.31 trillion a year earlier.

On the other hand, the total liabilities of the banking system rose by 12.53% to P22.71 trillion at end-July from P20.18 trillion in the comparable year-ago period.

This was mainly driven by the 9.43% increase in deposit liabilities to P19.27 trillion from P17.61 trillion a year prior.

The Philippine banking system’s combined net income stood at P190.26 billion in the first half, rising by 4.1% from P182.76 billion a year prior, latest data from the central bank showed.

Mr. Ricafort said banks could see faster asset growth moving forward as the BSP is expected to cut benchmark interest rates further, which could boost lending, trading gains and other investment income.

The Monetary Board last month cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook, with its governor signaling at least one more reduction before the end of the year.

The Monetary Board on Aug. 15 reduced its policy rate by 25 basis points (bps) to 6.25% from a 17-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s last two policy-setting meetings this year are on Oct. 17 and Dec. 19. — A.M.C. Sy

Dining In/Out (09/12/24)

Mooncakes and cocktails at The Pen

GUESTS can indulge in Hong Kong mooncakes and Japanese cocktails at The Peninsula Manila — not at the same time, unless they want to that is. Guests can experience Tokyo’s elite cocktail culture when The SG Club — one of Japan’s most celebrated bars and landing at No. 23 on Asia’s 50 Best Bars list for 2024 — takes over The Bar this coming Friday, Sept. 13, from 8 p.m. to midnight. Meanwhile, in time for the Mid-Autumn festivities, Peninsula mooncakes have been flown in from Hong Kong especially for the occasion and are available exclusively at The Peninsula Boutique and The Lobby for a very limited time. Says The Peninsula Food and Beverage Director Katsuma Tokitsu, “This year, we are thrilled to introduce two new mooncake flavors — the Mini Red Bean Paste Mooncakes and Mini Chocolate Egg Custard Mooncakes. We have taken the time to experiment and perfect the ingredients, ensuring that each bite offers a harmonious blend of flavors. These will be exciting new additions to this year’s celebration.” Peninsula mooncake aficionados can still enjoy classics like Mini Lotus Seed Paste with Egg Yolk Mooncakes and Mini Egg Custard Mooncakes. Also available are boxes of assorted mooncakes. The mooncake prices range from P3,888 (for four pieces) to P4,888 (for six pieces) and P5,888 (for eight pieces). For inquiries and orders for Peninsula mooncakes, call 8887-2888 (ext. 6694 for Restaurant Reservations and 6769/ 6771 for The Peninsula Boutique).

Mid-Autumn treats at City of Dreams

THE City of Dreams Manila presents Mid-Autumn Festival specialties until Sept. 17. Crystal Dragon, which specializes in Cantonese cuisine and regional Chinese specialties, offers the season’s flavors in the Mid-Autumn special a la carte menu which is available for lunch and dinner. The menu consists of: Steamed Hokkaido Scallop and Vermicelli in ginger scallion sauce; Double-boiled Pork Rib Soup with abalone, lotus seed and lion’s mane mushroom; Jasmine Tea-smoked Crispy Roasted Duck; Tiger Prawn tossed in spiced pumpkin curry sauce; and Wok-fried Fragrant Taro Rice with slow-braised 13-spiced pork belly. As partaking of mooncakes is a time-honored tradition during the Mid-Autumn Festival, the Crystal Dragon is also highlighting its signature Snow Skin Mooncake, served in a trio of flavors that combine tradition and creative renditions: Lotus paste with salted yolk, Purple ube with salted yolk, and Red bean. Crystal Dragon is open daily from 11 a.m. to 11 p.m. For inquiries and reservations, call 8800-8080 or e-mail guestservices@cod-manila.com. For more information, visit www.cityofdreamsmanila.com.

More mooncakes at Manila Hotel

IN CELEBRATION of the Mid-Autumn Festival, The Manila Hotel offers an array of gourmet mooncakes, available at Red Jade and the Delicatessen from Sept. 1 to 30. This year’s selection showcases a range of flavors such as Single yolk red bean, Single yolk red bean with orange peel, Single yolk pure white lotus, Milk golden sand, Red dates, Mung bean, and Rose paste. Solo boxes are priced at P388 each, while the silk brocade box of four mooncakes is available for P2,288. For bulk orders, discounts are available from Sept. 1 to 30. Enjoy a 10% discount on orders of five to 10 boxes, a 15% discount on orders of 11 to 15 boxes, and a 20% discount on orders of 16 boxes or more. Bulk order discounts apply only to the Mooncake Box of Four with the same flavor. For more information, call 8527-0011, 5301-5500, or +639989501912, or e-mail restaurantrsvn@themanilahotel.com.

Cocktails at Conrad

CONRAD MANILA spices up the C Lounge, the hotel’s contemporary lounge by the bay, with a bar takeover featuring award-winning mixologist Jay Gray. Mr. Gray is behind Sago House, ranked 15th on Asia’s 50 Best Bars in 2024. He started his career in the bar industry in London and eventually relocated to Singapore, where he co-founded award-winning cocktail bar Sago House. Done in collaboration with Dilmah, a world-renowned tea brand, Conrad Manila’s guests can try innovative tea-infused cocktails from Sept. 20 to 22. During this promo, guests can choose from a selection of tea-infused cocktails, such as Bright and Stormy, a concoction of chamomile and ginger soda, dark rum, lime, Angostura bitters, and honey; Jasmine Americano, a blend of green tea and Jasmine soda, sweet Vermouth, and Campari; and Breakfast Martini, a fusion of breakfast cordial, lemon and lime elixir, orange marmalade, lemon juice, and Aer. Other must-try’s are Gray’s signature creations called Peach Fuzz, made of peach elixir, lemon, gin, Cointreau, Aer; and Tie Tie Fizz, a mix of Tie Guan Yin soda, sweetened black tea elixir, and apple cordial. Guests will also get to chat with Mr. Gray and learn about the art of mixology. The cocktails’ prices start at P480++. Conrad Manila’s Bar Takeover featuring Jay Gray is exclusive at C Lounge on Sept. 20 to 21 (5 to 9 p.m.) and Sept. 22 (2 to 6 p.m). For more information, call 8833-9999, 0917-650-3747, or e-mail MNLMB.FB@ConradHotels.com.

Birthday cakes from Goldilocks

GOLDILOCKS’ line of premium cakes is meant for celebrating every occasion, but especially birthdays. Goldilocks suggests two cakes to give the feeling of extra love. The Mango Dream features three layers of chiffon cake filled with mango whipped cream and mango bits, topped with mango coulis. Then there is the Ube Dream, made with layers of ube (purple yam) chiffon infused with real halaya (ube jam) and ube mousse, topped with smooth ube cream icing and macapuno (coconut sport) jelly strings. Two more cakes for special days are the Coffee Layered Crunch and Choco Cherry Torte. The first has layers of brownies, whipped cream, mocha chiffon, and coffee mousse, crowned with cashew praline. The Choco Cherry Torte combines moist chocolate cake, strawberry cream, and maraschino cherries. Made especially for kids (but grown-ups can join in the fun too) is the Rainbow Magic Cake, with ube, strawberry, and vanilla flavors. It is made up of layers of vanilla and strawberry chiffon, filled with creamy ube and strawberry butter creme, then topped with vanilla icing. Order the cakes via GrabFood and Foodpanda or through www.goldilocksdelivery.ph.

Airport modernization and fiscal savings from NAIA privatization

This Saturday, Sept. 14, the New NAIA Infra Corp. (NNIC) will take over the upgrading, modernization, operation, and maintenance of the Ninoy Aquino International Airport (NAIA). The members of NNIC are San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and the Incheon International Airport Corp.

The estimated project cost (as of approval) is P170.6 billion. The main goals of this privatization scheme are to increase airport capacity from 35 million passengers per annum (mppa) to 62 mppa; to increase air traffic movements (ATMs) from 40-42 per hour to 48 ATMs per hour; to deliver internationally benchmarked Minimum Performance Standards and Specifications (MPSS); and to improve passengers and airlines experience and retail options. In the process, it should help improve the Philippines’ attractiveness as a tourism, investment, and trade destination.

The concession period is 15 years, from 2024 to 2039, extendable for another 10 years so long as the NNIC is able to fulfill its obligations or at least not be in flagrant violation of the Concession Agreement on the 8th anniversary of the signing date.

This is a beautiful scheme. On the government side, lots of work was done by the Department of Transportation (DoTr) which focused on infrastructure and regulatory aspects. But equally important work was contributed by the Public-Private Partnership (PPP) Center, headed by Executive Director Cynthia C. Hernandez.

They facilitated and complemented the work of DoTr, plus ensured the delivery of internationally benchmarked MPSS. They facilitated and monitored the implementation of the signed concession agreement between the parties, helped mobilize private sector resources and expertise for the modernization and capacity expansion of NAIA, spearheaded the project’s feasibility and financial structuring (such as defining the terms of concession periods, revenue sharing, and financial models) and coordinated the project through various stages — including the submission to the Investment Coordination Committee, obtaining National Economic and Development Authority (NEDA) Board approval, overseeing the competitive bidding process, and interacting with reviewing bodies such as the Office of the Government Corporate Counsel and the Office of the Solicitor General.

The economic team — NEDA as mother agency of the PPP Center, and Finance and Budget departments — also contributed via policy guidance, fiscal incentives, and related policies.

The PPP Center shepherded the DoTr and MIAA through the PPP process, especially with recent policy changes, so that the processes were in line with the then Build Operate Transfer (BOT) Law and its Implementing Rules and Regulations (IRR). Since the procurement process commenced in August 2023, the bidding rules followed were in accordance with the BOT Law and the Revised 2022 IRR. Note that the NAIA PPP Project’s Concession Agreement already implements the new PPP Code as its governing law.

I was wondering if this scheme is unique in the Philippines. The PPP Center clarified that the modality of NNIC is consistent with many other international airports that operate under similar PPP models. Examples include the London Heathrow Airport and Sydney Airport where private companies took on airport operation, management, modernization and maintenance responsibilities, sharing revenues with the government.

The government’s share from this scheme is substantial, starting with an upfront P30-billion payment to the government, a P2 billion annual guaranteed payment, and a share from gross revenues (see Table 1).

I am interested in public finance, and how taxpayers and even non-users of the airport can benefit via the unburdening from more borrowings. I computed the savings by the government both in principal and interest payments, from 2024 to 2028. My estimate is that there will be P158 billion in savings from the principal (as this amount will not be borrowed), plus P9.8 billion from foregone interest payments because we will not borrow this amount (see Table 2).

Congratulations, DoTr, PPP Center, NEDA, Department of Finance and Department of Budget and Management. Thank you, SMC and other members of the NNIC.

As there is more modernization of the Philippines, there will be more growth and job creation, and sustained high growth. Little by little, project by project, we should stay on track in this direction.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Angkas taps GCash for cashless payment

DBDOYC, Inc., operator of the Angkas ride-hailing app, is further expanding its online option payment method by partnering with mobile wallet GCash.

“As long-standing partners, especially at the height of the pandemic, GCash and Angkas have been strengthening their strategic collaboration as they share the same vision of helping Filipinos have better and easier experiences for their daily transactions,” G-Xchange President and Chief Executive Officer Oscar Enrico A. Reyes, Jr. said in a media release on Wednesday.

G-Xchange, Inc. is the operator of GCash.

With this tie-up, users can now directly link their GCash wallet as a preferred mode of payment in their Angkas app, the e-wallet platform said, adding that this minimizes the need for users to top up their Angkas accounts from digital or other e-wallet platforms.

“We’re always looking for ways to enhance our customer service, and partnering with GCash for secure cashless payments is a great solution. Nearly everyone uses GCash these days, it’s incredibly convenient for our riders and passengers. It removes the hassle of handling cash or looking for change,” Angkas Chief Executive Officer George I. Royeca said. — Ashley Erika O. Jose

DEVCON  Philippines signs agreement to create platform to advance climate-tech solutions

DEVCON Philippines, the country’s largest tech community, is set to develop technology solutions for climate problems after signing a tripartite agreement aimed at creating a platform for climate resilience.

“We will immediately deploy and develop technologies and products for climate and disaster response in the Philippines,” Winston L. Damarillo, DEVCON president, said during a roundtable discussion on Wednesday.

DEVCON said it had partnered with the Department of Science and Technology and the De La Salle University (DLSU) to bring climate-driven technology solutions.

The three parties are set to develop a platform, called Climate Resilience Technology (CResT), allowing them to launch climate-focused solutions and help advance access to renewable energy (RE).

“DEVCON will take the lead on technology innovation and ensure that climate solutions are developed and scaled rapidly. Meanwhile the DLSU Animo Labs, the university’s research and development arm, will provide cutting-edge research infrastructure and resources,” it said in a separate statement.

Mr. Damarillo said the initiative also targets to attract climate tech-startups and investors to position the country into a global hub for climate technology.

“As we collaborate to establish the Philippines as a global hub for climate tech, our vision extends beyond our borders. Through the CResT platform, we are laying the foundation for a sustainable future with solutions that have local impact and global reach,” Mr. Damarillo said.

He said DEVCON is aiming to have at least 100 climate startups involved in this initiative in the next two to three years.

“We hope by next year, our goal is 100 startups in climate within in two to three years. We want to start with that, if there are that many startups in the Philippines focused on climate and itself pays for the solutions,” he said. — Ashley Erika O. Jose

France forecasts 18% drop in wine output after adverse weather

NICOLAEVNA ARNAUTOVA-UNSPLASH

PARIS — Bad weather has walloped wine production in France, with output expected to be 39.3 million hectoliters this year, down 18% from last year, the farm ministry said last Friday.

The figure is below an initial range of 40 million-43 million projected last month.

The lower wine production was particularly high in the Jura, Charentes, Val de Loire, and Beaujolais-Bourgogne regions, the ministry said in a statement.

“This decline is due to particularly unfavorable climatic conditions which have reduced the production potential in almost all wine-growing areas,” it said.

Like other crops, including cereals, grapes have suffered from heavy rainfall in France over the past year.

These helped the spread of diseases among vineyards, the ministry said. In addition, many of them experienced so-called coulure, a fall in flowers and young berries due to humid and cool conditions during flowering.

The revised forecast was 11% below the five-year average of 44.2 million hectoliters. A hectoliter is the equivalent of 100 liters, or 133 standard wine bottles.

Wine, along with spirits, is one of France’s biggest export earners. The sector is facing declining domestic consumption, which has hit some production areas such as Bordeaux, contributing to recent protests by farmers.

Winemakers in the Bordeaux region agreed on a plan to uproot 8,000 hectares (19,768 acres) of vines this year to meet the drop in output. This, combined with losses due to coulure, mildew, and hailstorms are set to lead to a 10% reduction in output after a drop in 2023.

In Champagne, the ministry expected output to be 16% lower than in 2023, also hit by diseases, spring frosts and scalding.

Champagne producers had called in July to cut the number of grapes harvested this year after sales of the wine fell more than 15% in the first half of the year.

Charentes, the second-largest wine-producing region after Languedoc-Roussillon, was set to record a 35% fall in production compared to a record 2023 year despite a rise in area, due to a low number of bunches and poor flowering due to humid weather, the ministry said.

The fall in wine output comes as wine consumption is waning in France. Sales in supermarkets fell more than 5% between Jan. 1 and Aug. 11, with an 8.5% drop in volume for red wines and a nearly 6% drop for rosés while white wine sales were nearly flat, farm office FranceAgriMer said in a note. — Reuters

Sony sparks debate by pricing new PlayStation version well above Xbox

SONY Group Corp. priced a faster version of the PlayStation 5 well above its rival Xbox at $700, suggesting the entertainment giant sees a loyal audience willing to pay a premium for top performance.

The Japanese company unveiled the surprisingly high price tag when it announced the start of sales Nov. 7, which will come just weeks after the latest version of Microsoft Corp.’s competing console hits store shelves. Between them, Sony and Microsoft are moving into rarefied air for consoles, with the new Xbox Series X costing $600 and the upgraded PS5 Pro asking $200 more than the original.

Four years into their respective life cycles, the two most popular home consoles are moving up the value chain. Analysts were divided on whether the pricing would spur sales for Sony, which is trying to expand its entertainment business with original, high-quality content spanning games, anime and film.

“This is about Sony skimming the absolute top end of the market, targeting hardcore PlayStation users only,” industry analyst Serkan Toto said. “It’s not a mass-market device. It seems the entire gaming world is puzzled about Sony’s pricing strategy.”

Others saw the move as an attempt to prop up margins. The pricing decision follows a series of price hikes in Japan, which experts viewed as a response to the growing cost of components such as chips.

The new, high-end console will allow PlayStation 5 games to be played at higher resolutions and faster frame-rates without the need to toggle between different modes, Mark Cerny, lead architect of the console, said in a video presentation. He said the PlayStation 5 Pro will offer 45% faster rendering than the standard PlayStation 5.

“The pricing seems extremely challenging, since there has never been a game console whose successor model was substantially more expensive than the original,” Citi analyst Kota Ezawa wrote. “We surmise that the components responsible for the improved performance of the PS5 Pro are not all that much more expensive than the components in the original PS5, and thus we expect the higher price of the PS5 Pro to boost the gross margin.”

Sony’s PlayStation 5 has sold more than 59 million units since its release in 2020 but has lagged slightly behind its predecessor, the PlayStation 4. The increased cost may limit its audience, in part because it moves the machine closer to the cost of a full gaming PC, perennially the biggest rival to stand-alone game consoles.

Many reviewers noted the new device’s higher price tag despite the lack of a disc drive, reflecting an ongoing video-game industry trend that has seen customers switch from physical media to online services. A disc drive will be available for purchase separately.

In a blog post, the company said that the new console will improve the performance of older titles and that “several games will be patched with free software updates for gamers to take advantage of PS5 Pro’s features” including Hogwarts Legacy, Final Fantasy VII Rebirth, and Spider-Man 2.

“Simply put, it’s the most powerful console we’ve ever built,” Mr. Cerny said. — Bloomberg

PHL inclusion in bond index to boost investments, stem volatility

THE PHILIPPINES’ potential return to the emerging markets bond index of investment bank JPMorgan Chase & Co. will help boost foreign investment flows and reduce volatility, Metropolitan Bank & Trust Co. (Metrobank) said.

“The return of the Philippines to any potential bond index would translate to increased foreign investment flows. This is important because it could bring more foreign money into the Philippines. When a country is included in these indexes, investors who follow them closely often buy bonds from that country. For example, if the Philippines was given a 5% share in the index, we might expect investors to put about 5% of their funds into Philippine bonds,” Metrobank Chief Economist Nicholas Antonio T. Mapa said in a note on Wednesday.

“Given that investment houses that track the index would be required to hold a fixed percentage of Philippine investment products, this could suggest that investor flows would be less volatile and more “sticky.” These funds will be more likely to stay in place for a longer time,” Mr. Mapa added.

The Philippines is in talks with JPMorgan for the inclusion of its peso government bonds in the bank’s emerging-market debt gauge, Finance Secretary Ralph G. Recto told Bloomberg News last month.

Joining the benchmark is typically a breakout moment for emerging economies, as the move attracts fresh inflows of overseas capital into their debt markets. India acceded to the gauge in late June, having been placed on watch for eligibility three years before.

For officials in Manila, the talks mark a potential turnaround after its global peso notes dropped out of the index due to illiquidity in January 2024. The Philippines has different types of local currency notes.

Officials in Manila are also looking to resolve matters of taxation, National Treasurer Sharon P. Almanza said.

Mr. Mapa said the talks are a “positive sign, suggesting the Philippines might not only rejoin but possibly have an even more significant presence in the index.”

Rejoining the index could also provide support for the peso, he added.

“With funds “sticking around” for as long as the Philippines remains in the index, this could also translate to a stronger peso as trading volatility is minimized to some extent. Given all of the positive attributes of the Philippine economy such as relatively upbeat growth prospects and moderating inflation, we believe the potential return of the Philippines to a bond index simply acts as a validation of the attractiveness of the country as an investment destination,” Mr. Mapa said.

After trading at the P58 level against the dollar and hitting 18-month lows in May due to uncertainty over the timing of interest rate cuts here and abroad, the peso has since recovered, closing at the P56 level at end-August and even returning to the P55 mark earlier this month.

However, potential hurdles to the country’s inclusion in the index include tax issues and liquidity, Mr. Mapa said.

“Despite these challenges, there is reason to be hopeful. Philippine authorities are in regular and fruitful discussions with the administrators of these bond indices. When the index inclusion does happen, we will see new opportunities opening up for the economy and for investors,” he said. — AMCS with Bloomberg

No job description

VAN TAY MEDIA-UNSPLASH

ARE JOB DESCRIPTIONS, especially for senior positions, passe? Remember those corporate lists of activities for which one is accountable, inevitably ending with that all-embracing “and any assignments that may be given to you from time to time”? Titles in the C-Suite seem to be self-explanatory. There seems to be no need to make a detailed list of what the job is supposed to be. The incumbent will define that as he moves along, or another executive contests his authority.

More current now than a job description is a list of yearly “deliverables” which are quantified targets like revenue, turnover rate, operating income, and maybe some ratios. These are determined at the annual budget meeting. (Smiling at associates and subordinates is not deliverable.)

Even when talents are poached from another industry or even the competition to “report directly to the CEO,” their roles can be vague, as if to see where this senior recruit will eventually fit, and who he will replace or supervise, after a reorganization, of course.

What if a senior hire needs to be given a high salary and an acceptable title when there’s not even a vacant box to be filled? Is he a CEO successor in training? Why hire an expensive executive with no clear job description? It could be an accommodation to grant a request that cannot be refused, or a family member being given hands-on experience — please don’t even mention the word “nepotism.” This is a listed family corporation after all.

A suitable title is created, maybe “Adviser to the Chairman” something that sounds impressive on a calling card. (Even this piece of corporate arcana is no longer in vogue.) No job description is provided, except verbally when introducing the new face — to head a task force for “cultural transformation” Project Borealis. (We aim for the stars.)

An announcement of the appointment is made for those wondering who the new guy in sneakers is. Why is he always taking coffee at the lounge? An e-mail from the Head of HR introduces the recruit as the inventor of the wheel for filing cabinets. A short biodata of previous positions is listed without dates, especially when the gap in time between that job and the new one may have stretched over a year. (Was he pounding the streets when he was called in?) This e-mail blast enjoins all to extend courtesies to the new hire and offer him coffee if he happens to peep in — are you busy?

One function that the newcomer’s job description does not mention is an appetite for calling meetings to keep him in the loop as he reviews policies to make the organization adhere to a culture of accountability. Food is a main feature of the frequent meetings.

The adviser’s executive assistant sets up one-on-one meetings over coffee or lunch. (Do you prefer Salad Nicoise to Caesar?) He also sets out to meet the top clients accompanied by the marketing head. Nobody is impolite enough to ask the obvious question, but why do you need to meet anyone? The corollary question is even more elusive — how do we introduce you to the clients? (This is Moses who just joined us and wanted to meet you.)

Parkinson’s Law states that “work expands to fill the time available for it.” This well-known economic law seems to justify one’s utility even when the value added is vague. Someone with no specific assignment has time on his hands which he needs to fill up, often by taking over other people’s busy schedules.

Does an ambiguous role lead to becoming a loose cannon? A well-meaning but idle executive looking for a justification for his high salary and too eager to intrude on other people’s tasks. Can a job description at least define the boundaries of the senior staff?

Still, the high-level executive with a vague title cannot simply be shrugged off and ignored. What if indeed he is the designated successor? People sipping coffee and trying to fill up a day’s schedule seem to have long memories of slights like being too busy for a meeting. Behind that confident smile is a person waiting for his turn to remove the job descriptions of those who never replied to his messages — or nodded in his direction.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

SM’s Alfamart opens 2,000th store

BW FILE PHOTO

MINIMART chain Alfamart has opened a new store at a residential village in Sta. Rosa, Laguna marking the 2,000th store in its network.

The opening of its 2,000th store highlights the minimart chain’s commitment to improve grocery shopping accessibility for local neighborhoods and communities, Alfamart said in an e-mailed statement on Wednesday.

“Alfamart sees immense value in serving underserved communities. Our 2,000th store marks a pivotal milestone, and the warm reception in Barangay Balibago underscores the impact our presence can have,” Alfamart Chief Operating Officer Harvey T. Ong said.

The minimart chain inaugurated its first store in June 2014. It is a part of the SM Group’s retail food business.

Alfamart is a joint venture between SM and Indonesia-based retail company PT Sumber Alfaria Trijaya Tbk.

The minimart chain combines the convenience of a corner store with the various offerings of a supermarket. Some of its products include frozen goods, household items, and ready-to-cook and ready-to-eat items.

Alfamart ensures a stable supply of merchandise across its store network with the help of distribution centers in Laguna, Quezon, Cavite, Bulacan, and Pampanga.

Meanwhile, Mr. Ong reiterated the minimart chain’s commitment to residential locations and to meeting the needs of the community.

“We are dedicated to providing a variety of merchandise, including fresh produce and frozen goods, precisely tailored to meet local needs,” Mr. Ong said.

SM Investments Corp. (SMIC) is the listed holding company of the Sy family. Its core business is in the retail, banking, and property segments.

On Wednesday, SMIC stocks fell by 0.22% or P2 to P906 per share. — Revin Mikhael Ochave

Consumer credit perception improves, with further financial inclusion opportunities possible

By Weihan Sun

CREDIT is a powerful tool that can offer great convenience. It has the power to unlock financial opportunities for consumers, entrepreneurs, and businesses, but it also carries potential risks if not used responsibly.

In a rapidly developing country like the Philippines, consumer attitudes towards credit are gradually becoming more positive. Yet not all Filipinos are at the same stage when it comes to their credit journey. With this in mind, what can we do to help more Filipinos appreciate the power of credit and use it responsibly?

UNDERSTANDING THE SHIFTING TIDES OF FILIPINO CREDIT PERCEPTIONS
According to the 2024 TransUnion Credit Perception Index (CPI) study, an annual nationwide survey inaugurated in 2023 to assess public sentiment surrounding credit, Filipinos’ perception of credit has improved. The overall 2024 CPI score for Filipinos is at 69, a four-point increase from last year’s findings, reflecting growth in the understanding of credit concepts, product knowledge, trust, and favorability among Filipinos.

These improvements can be attributed to two things: increasing credit product ownership, and a growing desire for knowledge about how to use credit products.

The latest CPI shows that more Filipinos now hold credit cards (40%) and personal loans (25%), with year-on-year increases of 15 and four percentage points, respectively. Besides these more popular products, Filipinos also hold short-term credit products such as mobile (11%), micro (6%), and payday loans (5%).

Alongside their growing credit participation, Filipinos want to learn about credit products and use them wisely, with over two-thirds (70%) planning to source and access more educational materials so that they can learn how to improve their finances in the next three months, while close to three-fourths (72%) intend to do so in the next year.

With the growing use of consumer credit products among a consumer base that is hungry for knowledge, it is no surprise that more Filipinos are coming to better understand the benefits of responsible credit use, which is helping to break the long-standing stigma of credit as bad debt.

MORE TO BE DONE TO IMPROVE FINANCIAL INCLUSION
Despite an improvement in the overall CPI score among the general population supported by better credit perceptions and more extensive product ownership, there is still much to be done to bring the unbanked population into the formal financial system.

The CPI score among unbanked Filipinos currently stands at 39, a sharp 14-point drop from 2023. Taking a deeper dive into the data, there are two contributing factors here: a widening knowledge gap between the general population and the unbanked segment, and lower access to financial products and services for unbanked Filipinos.

Currently, only 54% of unbanked Filipinos are knowledgeable about credit, 16 percentage points fewer than the general population and 29 percentage points fewer than the Filipinos who are working in the financial technology (fintech) sector. Additionally, 20% of unbanked Filipinos report not owning any financial products at all — an 11-percentage-point increase from 2023.

These findings highlight that significant opportunities to grow financial inclusion remain, especially among unbanked Filipinos. Public and private stakeholders across the financial ecosystem need to work together to achieve this goal.

Collaborative efforts on both the demand and supply sides are required. To grow demand, there must be a focus on educational efforts so that unbanked Filipinos understand the opportunities that could be unlocked by responsible credit use. To increase credit product supply, financial sector players can use innovative services that draw on alternative data to assess the creditworthiness of those with little to no formal credit history. Doing so means that a more complete, actionable view of each consumer can be achieved so that their risk can be meaningfully assessed, and they can be included in the formal financial system.

BUILDING A FINANCIALLY RESILIENT PHILIPPINES VIA RESPONSIBLE CREDIT
While healthy growth is forecast for the Philippine economy for 2024, some headwinds continue to keep many Filipinos from enjoying the benefits this can bring. Despite headline inflation easing to 3.7% in June, food inflation rose to 6.5%, driven by increases in the prices of grains, vegetables, and meat.

With that data in mind, I believe that credit access can help Filipinos stay afloat. While accessibility is the first step to enable more Filipinos to enjoy financial services, we must also continue to educate consumers about responsible credit use. Only through these actions, Filipinos can unlock more opportunities with credit for lifestyle improvements, entrepreneurship, or business expansion.

By doing so, the formal financial system can be seen as truly inclusive and empowering — building a more financially resilient and prosperous Philippines.

 

Weihan Sun is the principal of Research and Consulting for Asia-Pacific, TransUnion.

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