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Vaccinating school-age children to prevent outbreaks

FREEPIK

With the opening of classes in the country last month coinciding with the start of the rainy season, there is a higher risk of respiratory and other vaccine-preventable diseases in school environments where children are in close contact.

During a recent Health Connect media forum entitled “Kickstarting a Healthy School Year with Vaccination,” immunization experts underscored the importance of vaccinating school-age children to prevent outbreaks of vaccine-preventable diseases, protect families and vulnerable populations, reduce absenteeism, promote community health, ensure educational continuity, and provide long-term health benefits.

Launched at the height of the COVID-19 pandemic in 2020, Health Connect aims to serve as a platform for medical experts and journalists to provide the general public with accurate, up-to-date health information. The media forum is led by the Department of Health (DoH) with the support of the Philippine Medical Association (PMA), the Philippine Foundation for Vaccination (PFV), and the Pharmaceutical and Healthcare Association of the Philippines (PHAP).

Officials from the DoH Western Visayas Center for Health Development (WV CHD) presented strategies implemented by the city, province, and the Health department to address a pertussis outbreak in Iloilo City earlier this year as well as current initiatives and plans to promote the health and wellbeing of children in Iloilo Province.

Dr. Jose Martin Atienza, Western Visayas Regional Immunization Program Coordinator, said that their immunization program has achieved several milestones through the years, such as certification of elimination of maternal and neonatal tetanus in 2017 and elimination of wild polio virus in 2021. However, he noted that the region’s fully immunized child (FIC) coverage rate has plateaued in recent years due to pandemic-associated disruptions, overburdened health systems, and the added responsibility of mass COVID-19 vaccination efforts, among other factors.

On the positive side, Dr. Atienza revealed that the region’s FIC coverage increased slightly from 59.52% in 2022 to 61.36% in 2023. As of July 2024, around 14,845 children out of the target population in Iloilo Province of 39,077 have been fully immunized, representing a 37.99% FIC coverage rate. A fully immunized child is one who has received one dose of BCG (anti-tuberculosis) vaccine, three doses each of OPV (oral polio vaccine), DPT (diphtheria, pertussis, and tetanus) vaccine, and Hepatitis B vaccine, and one dose of measles vaccine at one year of age.

Dr. Atienza highlighted the DoH memorandum on the Interim Guidelines on the Resumption of School-based Immunization after the COVID-19 pandemic. The memorandum directs the DoH to coordinate with the Department of Education (DepEd) to implement a month-long supplemental immunization of school-age children in all public schools with measles-rubella (MR), tetanus-diphtheria (Td), and human papilloma virus (HPV) vaccines starting October 2024. Private schools can participate by coordinating with their local health centers.

Moving forward, DoH in Western Visayas is looking to engage with all partner stakeholders to mobilize the community and achieve the DoH National Immunization Program (NIP) FIC target coverage of 95%. This will involve local policy support, information dissemination campaigns, human resource augmentation (encoders, vaccinators, among others), activation of vaccination champions, logistics, funding, and transportation support.

Dr. Rodney Labis, chief of the Health Service Delivery Division, Iloilo Provincial Government, presented strategies to prevent disease outbreaks in schools during the rainy season. These include national and local policies, funding support and collaboration with other development partners, effective health promotion activities, functional disease surveillance, capacitated human resources for health, and availability of vaccines, logistics and medical supplies.Dr. Labis also recommended the passage of local ordinances to support program implementation and ensure sustainable funding support; integration in school programs of health promotion activities on infectious disease prevention; integration of schools in the DoH region-wide referral system; strengthening and sustaining of DoH-DepEd collaboration; hiring of adequate human resources for health in local health offices to ensure focused program implementation; and budget allocation by local government units for procurement of vaccines not provided by the DoH.

PFV executive director Dr. Lulu Bravo reiterated her call for a whole-of-government, whole-of-society approach in achieving the 95% FIC target coverage. PMA president Dr. Hector Santos, Jr. lauded the LGUs of Iloilo Province for implementing programs to improve immunization coverage among children. He also expressed their member-doctors’ continuing support for vaccination activities and information dissemination initiatives to address vaccine hesitancy across the country.

Immunization is one of the success stories of the 20th century. Vaccines eliminated most of the childhood diseases that used to cause millions of deaths, making possible a life without disabilities caused by certain communicable diseases like polio.

With every vaccine, vaccine developers and manufacturers, together with partners in the global health community, do more than improve and save lives. They enable vaccination that strengthens global health security through resilient and sustainable national immunization programs around the world.

The research-based pharmaceutical industry is one with the government and other key stakeholders in increasing our country’s immunization coverage so that children and their families are protected against vaccine-preventable diseases.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines, which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that  affect Filipinos.

9th iteration of Clarins’ serum offers lifestyle aging

CLARINSUSA.COM

FRENCH BEAUTY brand Clarins is introducing the 9th formulation of their Clarins Double Serum, a product that has been on shelves since 1985.

The product was launched in the Philippines late last month at Rustan’s Makati, with guests encouraged to rub the product on their hands. The serum felt thick, rich; and was very fragrant, but it took some time to absorb. At between P5,600 to P10,000 (for 30 mL to 75 mL containers), one will probably make the time to wait for the product to seep through the skin.

According to Pam Aguirre, Education Manager of Clarins, when it was first released in 1985, the product came in two separate formulations. In the 1990s, they were placed together in one bottle, as it is to this day. As a nod towards sustainability, the plastic cap has been eliminated, and 94% of the bottle is now made with recyclable materials.

“Some of these ingredients are only water-soluble. The others are oil soluble. Naturally, you can put them together, and then shake it,” she said in a mixture of English and Filipino.

For the product’s ninth formulation, “The biggest change that we have is incorporating the Giant Provençal Reed, which takes care of epi-aging,” she explained.

Clarins tested the product on more than 60 twins (about 30 pairs), showing that different lifestyles age skin differently, despite genetics. Previous formulations of the serum only took care of chronological aging, but the new one seeks to address aging concerns brought about by lifestyle choices (sun exposure, for example; or sleep).

The Giant Provençal Reed extract helps to reverse 100% of the skin changes caused by lifestyle, says Clarins, strengthening the skin’s defenses against environmental stress and visible aging.

Clarins Laboratories selected 22 plant extracts for the new Double Serum formulation. Each has a different role: acerola revitalizes with enhanced oxygenation for a radiant glow, while aloe vera offers soothing hydration. Strawberry tree helps prevent unwanted shine, and seabuckthorn delivers a robust antioxidant boost. Oat and banana tree extracts work to tighten and firm the skin, supporting collagen synthesis for improved elasticity. Cornflower and cocoa tree extracts soothe and hydrate, while teasel and Mary’s thistle provide vital nourishment and comfort. Turmeric and edelweiss, both antioxidants, play key roles in preserving cell communication and skin vitality. Ginger Lily adds anti-aging benefits. Harangana offers retinol-like efficacy for skin renewal, while red jania enhances radiance and clarity. Leaf of Life guards against dehydration, and mango tree protects against environmental stressors. Horse chestnut tree revitalizes dry, dull skin, and lemon balm calms and softens. Avocado extract supports skin regeneration and maintains its suppleness, while evening primrose boosts calcium to renew skin’s radiance.

The serum also features Clarins T.R.U.S.T., a traceability platform using Blockchain technology, allowing consumers to track the production and origin of its ingredients. The product is geared towards those aged 25 and above. Ms. Aguirre says that at that age, “You start with preventive aging already.”

Clarins is available at Rustan’s. — JL Garcia

PNB expects improved consumer loan demand and repayments as borrowing costs go down

BW FILE PHOTO

PHILIPPINE NATIONAL Bank (PNB) expects repayments for consumer loans to improve by 20% this year amid lower borrowing costs, an official said.

“I would say it should be about a 20% improvement. That’s our target for the year, and I think we can do it for the consumer products,” PNB Consumer Finance Head Celeste Marie V. Lim said on the sidelines of an event last week.

The bank has seen an improvement in consumer loan repayments, with soured debt going down despite higher disbursements, she said.

“We’re actually doing very well. In terms of PNB’s past due rates or nonperforming loans, it’s gone down. For the consumer side, it’s going down and our customers have been paying back very well. So, we’ve seen an uptick in the take-up of our consumer products,” Ms. Lim added.

PNB’s overall nonperforming loan (NPL) ratio went down to 2.1% at end-June from 2.7% in the same period last year.

The official said the start of the Bangko Sentral ng Pilipinas’ (BSP) easing cycle is expected to boost demand for consumer loans and also make it easier for borrowers to pay their debt as interest rates begin to go down.

“Last month was the first rate cut. The expectation is [for rates] to gradually go down again, so in which case, the cost of borrowing is going to go down. So, consumers will probably pick up more in terms of borrowing for consumer products,” she said.

The Monetary Board on Aug. 15 cut its policy rate by 25 basis points (bps) to 6.25%, marking its first easing move in nearly four years.

BSP Governor Eli M. Remolona, Jr. previously 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.

Ms. Lim added that PNB targets double-digit growth in its consumer portfolio starting next year as the bank wants to increase the share of this type of credit in its loan book.

“2024 is the year that we build our foundation for consumers, so you won’t see double-digit growth this year. However, for next year, we are looking to at least grow by about 25%,” she said.

PNB wants to tap its current client base and new-to-bank customers for its consumer product offerings and promotions, Ms. Lim said.

“I think we have products like the World Elite Mastercard that will entice our existing customers to actually organically grow with PNB. We are going to come out with strategic products and promotions that really push our depositor base to organically grow as well,” she said.

“We’re also pushing to get new-to-bank customers. We partner with a lot of developers or dealers and direct sales to bring them on board,” she added.

PNB’s attributable net income inched down by 0.07% to P4.95 billion in the second quarter as it set aside more loan loss provisions. This brought its net income for the first semester to P10.22 billion, up by 4.72% year on year. — A.M.C. Sy

Bossjob aims to simplify job seeking for Filipinos

KIMBERLY CHEN

By Revin Mikhael D. Ochave, Reporter

AS employers increasingly integrate artificial intelligence (AI) into their operations, Kimberly Chen, the country manager of recruitment platform Bossjob, is focusing on helping Filipino job seekers adapt to the evolving job market.

“Many are saying that Filipinos are smart, but they are not given the opportunity; we’re hoping that Bossjob will be able to provide that platform for Filipinos to have access to more jobs,” Ms. Chen said in an interview with BusinessWorld.

“We want to make the job seeking process simpler and to help everyone,” she added.

Launched in 2018, Bossjob is a chat-first, AI-powered recruitment platform. It has presence in various countries such as the Philippines, Japan, Singapore, Hong Kong, and Indonesia.

“For employers, we want to help them streamline the hiring process and be able to look for the right talent within a minimum of one week. It is not about how fast a platform is. It is about are there enough right talents in the Philippines,” Ms. Chen said.

She urged Filipinos to upskill to stay competitive as more companies adopt AI.

“I would suggest Filipinos to upskill as early as they can. We don’t really know what’s going to happen in the future. We can see that there are technology disruptions with AI,” Ms. Chen said.

“One of the job trends we are seeing right now is more demand for tech-related positions such as software engineers. We’re also expecting more demand for data analysis jobs to make informed decisions for the company’s growth. There is also high demand for green jobs and sustainability-related positions,” she added.

The Asian Development Bank said in a report last year that 20% of Philippine workers are at a “high risk of losing their jobs” due to automation. It added the country should tap education technology to address the skills gap or risk job losses.

In July, National Economic and Development Authority Secretary Arsenio M. Balisacan said the Philippine economy stands to gain P2.6 trillion yearly if domestic businesses adopt AI-powered solutions for their operations.

Mr. Balisacan added that AI will benefit sectors such as retail, logistics, manufacturing, and financial services.

According to Ms. Chen, one of the biggest challenges faced by Filipino workers is skills gap, resulting in high unemployment figures.

“When you look at the number of open job opportunities, it is high. But then, there are also many job seekers. There is a skills gap,” she said.

“Anyone that wants to upskill can use our platform and the content of our partners,” she added.

Bossjob recently partnered with the Technical Education and Skills Development Authority (TESDA) to boost the job readiness of technical and vocational education and training (TVET) graduates.

Under the partnership, Bossjob will provide customized training courses designed specifically for TESDA graduates, as well as offer employment leads and resources for career advancement.

The job platform also recently partnered with local government units and key regional businesses in the Bicol region to streamline the recruitment process.

The country’s unemployment rate surged to a one-year high of 4.7% in July from 3.1% the previous month as fresh graduates entered the labor force, based on preliminary data from the Philippine Statistics Authority.

The figure is equivalent to 2.38 million unemployed Filipinos in July, higher by 755,000 from 1.62 million in June. The Filipino labor force is pegged at around 50.07 million in July, higher by 3.23 million from 46.85 million in the same period last year.

In July, the services sector had the highest employment rate at 60.8%, followed by agriculture at 21.2% and industry at 18%.

Ms. Chen expects the local job market to be positive in the near term but acknowledges some challenges.

“The economy is expected to continue growing, with sectors such as retail, education, healthcare, and business process outsourcing, and information technology-enabled services showing strong demand for labor. However, some sectors, including IT, telecommunications, and financial services may face challenges due to skills gaps and competition,” she said.

“I also anticipate that job opportunities in the tech sector, such as programmers and AI engineers, will continue to grow. Many companies, even startups, are pivoting towards AI. There will undoubtedly be a higher demand for tech-related professionals here in the Philippines,” she added.

As of end-August, Bossjob had over four million registered users and more than 10,000 partner companies including SM Investments Corp., ride-hailing application Angkas, fuel provider Petron Corp., fast-food giant Jollibee Group, and construction company EEI Corp.

Bossjob uses AI and big data to optimize the recruitment cycle, offering features like an AI-powered resume builder and AI-photo generator. Employers can post job openings globally and target specific countries for talent.

Bankrolling mobility

With the banks come the buyers. — PHOTO BY KAP MACEDA AGUILA

It’s been proven that auto sales recovery cannot happen without financing

AS THE PHILIPPINES journeys toward motorization, there are a few necessary enablers to allow it to take its natural course. For one, we need more roads. This will mitigate traffic especially in metropolitan areas where, for now, private vehicles are a necessary substitute for a much needed and more progressive public transport system.

Speaking of roads, economic growth is also hugely dependent on a more efficient farm-to-market road system that cuts down on excessive downtime and losses to gross domestic product (GDP). In fact, early this year, the Management Association of the Philippines (MAP) called on the government to declare a “state of calamity” in Metro Manila due to alarming traffic conditions that cost the economy an estimated P3.5 billion a day. In a study, the Asian Development Bank (ADB) projected this loss to rise to P5.4 billion a day if nothing is done to address the problem.

Another enabler of motorization will be a robust secondary market. At the moment, the used-car market is highly fragmented and unregulated. As with most other markets — the stock market, the art market, the commodities market — a developed secondary market assures that products can be re-traded with full transparency, protection for buyers and sellers, quality assurance, and fair market valuation. Currently, it is estimated that the pre-owned car market is about 1.5 times bigger than the new-car market. It needs to be organized.

Thirdly, there must be a corresponding increase in land transport management systems to assure that the vehicle population conforms to safety, environmental, and other performance standards as prescribed by the government. This also includes the implementation of a more robust and modern traffic management system that assures discipline and order on the roads.

There are a few more worth mentioning but I believe that one of the most critical enablers is the availability of, and access to, consumer loan financing.

FINANCING MOBILITY
Ken Research recently published a study that looked at the state of the Philippine auto finance market. It cited that, in 2022, the market reached US$23.2 billion. Seventy percent was accounted for by new car loans, 20% by used cars, and 10% by refinancing options. It went on to predict that this would double to US$51.6 billion in 2027 with a CAGR of 10.2%, on the back of a rising middle class and a growing appetite for financing solutions.

It will be remembered that the Philippines is a very young population with a median age of 25.3 years, compared to 39.7 in Thailand, 32.4 in Vietnam, 30.1 in Malaysia and 29.8 in Indonesia. We also have the second-largest population in Southeast Asia with 115 million. These numbers foretell a very significant demographic bonus. In fact, the National Economic and Development Authority (NEDA) recognizes that the country is in a demographic sweet spot where more Filipinos are entering the labor force than are being born. In an economy where 70% of GDP is driven by personal consumption, this is a very vital indicator.

The importance of financing to motorization and the growth of the Philippine auto market was very clearly underscored during the COVID-19 years of 2020 to 2022. From 2011 to 2017, compounded annual sales growth for cars was around 18%. To a large extent, banks and financing companies were major drivers of that growth. During the pandemic, financial institutions fled the auto finance market due to a surge in loan defaults and a need to secure their financial soundness in light of the uncertainties. Auto sales plummeted in part to a slump in demand but also due to the absence of consumer loans.

Toyota Motor Philippines (TMP) was, fortunately, able to mitigate the impact of the crash in auto sales due to its partnership with Toyota Financial Services Philippines (TFSPH), its captive financing arm. TFSPH continued to underwrite financial leases during COVID, allowing TMP to cater to the essential mobility needs of Filipinos.

It was generally acknowledged by auto industry players that there would be no recovery in auto sales without the return of financing. And this proved true. As banks and financing companies consolidated their portfolios, their appetite for consumer lending returned. This has led to the strong resurgence of auto sales in 2022 and 2023. A study by AMRO-Asia showed that motor vehicle loans resumed in Q1 of 2022 and have continuously risen since then. This year, the auto market is tracking sales growth of around 10% resulting from more aggressive auto loans from all the major financial institutions. In fact, it will be noted that financing promotions have become more prominent of late.

A fair estimate of financed sales to total motor vehicle sales is about 60% to 70%. This makes it a major predictor of auto sales growth. I see that this trend will remain strong for a number of reasons. As our young population enters the labor force, consumption is expected to rise and this will likely be financed. One reason is that the banked population in the country is expected to rise and this will increase their credit worthiness. Another reason is that more financing solutions are entering the market, including operating leases. Notably, the youth is generally more open-minded to taking on more credit.

A study by TransUnion showed Gen Z as a growing contributor to credit card originations. The percentage share of overall originations among the Gen Z has more than doubled in the last five years — from one in 10 (9%) in 2019 to one in five (20%) in 2023. They also made up 33% of the new-to-card segment of borrowers in 2023. Ninety-eight percent of Gen Z Filipinos see access to credit and lending products as vital to achieving their financial goals.

Another factor that will drive the importance of credit is the transition of the Philippine economy into an upper middle-income economy. The gross net income (GNI) per capita of the Philippines was reported at US$4,230 in 2023, higher than the US$3,950 reported in 2022. If the economy sustains its 6% GDP growth, the country may reach the upper middle income threshold of US$4,515 by around 2026. This will increase the credit ratings of Filipinos in general.

Filipinos tend to be more cautious and conservative when it comes to borrowing. The country’s household debt ratio of only 12.6% is the lowest in Asia. In Thailand, this ratio is 91.6% while in Vietnam, it is 25.6%. The runway for credit growth is still significant and the fortunes of the auto sales are interminably linked to this.

Philippines: Balance of Payments (BoP) Position

THE BANGKO SENTRAL ng Pilipinas (BSP) expects the country’s balance of payment (BoP) position to post a bigger surplus this year, but also anticipates a wider current account deficit. Read the full story.

Philippines: Balance of Payments (BoP) Position

Four Russian grain regions in state of emergency due to heavy rains

REUTERS

MOSCOW — Russia’s vast Krasnoyarsk region declared a state of emergency Thursday due to heavy rains killing winter crops during sprouting time, bringing the total number of Siberian grain-producing regions under emergency conditions to four.

Earlier in September, a state of emergency was announced in the Tomsk, Novosibirsk, and Kemerovo regions. Together, the four regions accounted for about 5% of last year’s grain harvest in Russia, the world’s largest wheat exporter.

Declaring a state of emergency can allow farmers to claim compensation.

“Due to the abundance of rain and excessive soil moisture, farmers’ crops have suffered as the sprouting is taking place,” said Sergei Ponomarenko, first vice-governor of the Krasnoyarsk region, in a statement.

Mr. Ponomarenko estimated the affected area at more than 17,000 hectares, with preliminary financial damage exceeding 280 million roubles ($3 million).

The resulting winter crop losses will affect next year’s harvest.

Over a dozen Russian grain-producing regions have been hit by extreme weather, from early spring frosts to drought in recent months. The bad weather has affected an area of more than 1.1 million hectares, officials said.

Despite the losses, Russia has maintained its official grain harvest forecast at 132 million metric tons, a 10% drop compared to last year, and its export forecast at 60 million tons.  Reuters

Change: The journey, not the destination

The SM Cares Program for Women advocates for breastfeeding and encouraging the public to create safe and welcoming spaces for mothers to breastfeed their babies wherever they may be.

The 22nd International CEO Conference of the Management Association of the Philippines (MAP), “Business in Five Movements:  Wisdom, Passion, and Inspiration Across Multiple Generations” on Sept. 10, concerned itself with rapidly happening changes in the business environment today.

Challenges that businesses face today are identified to be political (the leaders in government and society, and the collective political thought); governance (honesty and integrity in government and in business); reforms and legislation (changing laws, practices, and the new technology); the market (supply/demand and competition); and adjusting to a multi-generational world.

At the conference, it was emphasized that the generation groups, which have some 15 years difference from each other, complicated the strategies and decisions in doing business — because of the marked divergence of needs and wants across the generations, and their different preferences and choices.

There are now six generations:

• The Silent Generation, those born from 1928 to 1945, and who are 79 to 96 years old today;

• Baby Boomers, born between 1946-1964 who are now ages 60-78;

Gen X, born between 1965-1980 who are now 44- 59;

• Millennials/Gen Y, who were born between 1981-1996 and who are now 28-43;

• Gen Z, who were born between 1997-2012 and who are now 12- 27; and,

• Gen Alpha, those born after 2012 (children)

How to go about making changes in this situation? The MAP proposes that business orchestrates its “symphony” in five movements: Movement of Legacy; of Resilience; of Transformation; of Mission; and of Innovation. 

“Tailoring strategies, products and services to meet the  diverse needs and preferences of each generation while embracing technological advancements and social trends will be keys to success across industries,” it was stressed.

Sandeep Uppal, president and CEO, Hongkong and Shanghai Bank (HSBC) Philippines, warned that “change without focus is not good.  What is more important than change is preservation.” He pointed out that HSBC has been in the Philippines since 1875 when it started operations in Binondo on sugar exports. Almost 150 years, and the bank holds fast to its driving strategy to “deliver sustainable outcomes for customers, communities and people.”  Change framework principles are 1.) initiate the right change, with a clear design demonstrating value; 2.) plan, deliver and imbed change effectively to defined standards; and, 3.) ensure agreed outcomes and value are delivered.  But always, the driving strategy (the mission-vision) is the anchor.

“There is always the debate between evolution and revolution,” Mr. Uppal said.  Go slow on change.  Stop, look, and listen before you jump, he must be meaning to say.  At the break in the conference, an inquisitive business writer asked Mr. Uppal if his exhortations on prudence and caution come from HSBC’s being British, and the British being known to be characteristically sedate and composed, as in the wartime British slogan “Keep calm, and carry on!” Mr. Uppal only laughed in reply. Business culture will follow native culture.  After all, organizations are made of men, and not of machines. And culture can change, down the generations. 

Well, it can be safely said, as it is generally observed, that the younger generations, Generations X, Y (millennials) and Z are more adventurous and not too calm about all the exciting changes in life and our environment. They are eager for new things, new ways. Like new technology. Even Gen Alpha (children 11 years old and below) can already be expert users of gadgets with interactive games and videos (hopefully controlled and monitored by parents for content).

“Generative Artificial Intelligence is the 21st century ‘power play.’  It is sparking a surge of innovation akin to the advent of electricity,” declared Scott Likens, Global AI and Innovation Technology Leader, Price Waterhouse Coopers (PwC) USA, at the MAP Conference. “Technology isn’t just advancing; it is accelerating at an unprecedented rate.  Example: AI computing speed is doubling every 3.5 months,” Mr. Likens said.

In PwC’s Global CEO Survey 2024, 70% of CEOs expect Artificial Intelligence (AI) to significantly change their business models. About 58% expect Generative AI, advanced robotics, and cloning to improve the quality of their companies’ products and services, and thereby increase profits in the next 12 months.  For 70% of CEOs, there is the confidence that in the next three years, technologies will have significantly changed and improved production, delivery, marketing, and administration in their company, but that will have also increased competitive intensity in the industry.

These are some of the emerging technologies that impact business and its publics:

• Artificial Intelligence (AI)

• Internet of Things (IoT)

• Blockchain

• Augmented reality

• Advanced robotics

• Quantum computing

• Neuromorphic computing

But there are risks in adopting the new technologies.  There are cybersecurity risks, misinformation, legal liabilities and reportorial risks from biases or faulty conclusions that may be generated by AI.  There’s identity theft, scamming, fake news.  Can technology be trusted?

There are questions and doubts: Will the advanced technologies hurt humanity and the environment? Is AI really useful for business for doing what labor does, as human jobs are made redundant by machines? A question was asked from the floor, at the MAP conference: Will lawyers lose their reason for being, when documents and legal arguments can now be generated by AI? Who claims the intellectual property and psychic income from creativity when the user just pressed a button?

Gonzalo Varela, a World Bank economist, agreed that the new technologies affect occupations. He talked about the catching-up that the Philippines must do to jump up to upper-middle income status amidst global shifts which include technical disruptions, geopolitical protectionism, and climate change. He said there is still some way to get ready for these challenges, as he particularly lamented that “the Philippines ranks 65th out of 174, in terms of AI readiness, a laggard in the region.”

Is it all about catching up for the country, and urgent changes in the ways of doing business? As the philosopher Ralph Waldo Emerson famously said, “Life is a journey, not a destination.” In the rush to “do as the big boys (the developed countries) do,” a small developing country like the Philippines might miss the psychological learning curve that would validate the decision to have embarked on the decided changes for perceived improvements and development.  It would be very much like giving a two-year old child an iPad to play with and watch videos on. The child has been deprived of the slow but sure learning, and the discipline, found from playing with alphabet blocks and catching balls.

Isn’t it sad that many children and young adults now cannot do manual arithmetic computations and cursive writing (script or longhand)?  (BusinessWorld, Dec. 20, 2023)? And yet they have smart phones that can contact people, answer questions, send messages, find things and places — and of course do arithmetic and other computations! Thus, speaking of generations and generation gaps, the magic of technology has created a culture shift in the younger generations that has made them adventurous for quick gratification.  The “instant” generation.

It would be unfair and unfeeling for leaders of industry and government to be sucked into the excitement of changes in the global playing field with little consideration for the timing and capability of society to absorb the costs and effects of these changes on them.  Go slow on changes, as Mr. Uppal of HSBC said, early on. “Deliver change safely. Deliver sustainable outcomes for our customers, communities, and people.”

Change is a journey.  It is not a destination.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Style (09/23/24)


Longchamp reintroduces Le Roseau

THE SIMPLE TOTE with a metal bamboo-shaped closure by Longchamp, Le Roseau, was famous in the 1990s, and has been in constant demand ever since. Every generation has fallen to the appeal of its sleek, simple lines and its strong character. It looks chic when carried in the hand, and more casual when slung over the shoulder. In addition to new shapes, Le Roseau is now interpreted in a color palette that goes from timeless neutrals — clay, paper, and chestnut — to vibrant hues like bright green, celadon, and orange. Longchamp is available at Rustan’s.


Montblanc introduces new gizmos in new pen

MONTBLANC has developed a new fountain pen filling mechanism that allows for easy filling through the writing instrument’s barrel with one simple push. Featured in the Meisterstück Traveller Limited Edition 1924, the innovation comes as Montblanc marks the 100th anniversary of the Meisterstück pen. The Traveller mechanism draws ink into double tanks through the cone instead of the nib. The twin tanks increase the ink reservoir capacity for twice as long as a conventional Meisterstück. The design of the limited centenary edition — a Meisterstück 149 model — upholds the esthetic standards of its antecedents. A coral-colored resin and signature gold-coated fittings refer to the original color palette of the earliest Montblanc writing instruments. The signature gold-coated cap top is crowned with the Montblanc emblem in mother-of-pearl, inspired by the artwork on the original Meisterstück packaging. In celebration of the 100th anniversary, the number “100” is engraved beneath the years “1924” and “2024” on the commemorative solid Au 750 gold nib. A novel cleaning tool can also be attached to the barrel of the pen via an adapter after removing the cone in order to thoroughly clean the writing instrument. Housed inside an elegant black leather box, the limited edition set includes the Montblanc Meisterstück Traveller Limited Edition 1924, the new ink adapter, two ink bottles featuring black and blue ink, a cleaning tool and a cone adapter, as well as a black leather pen pouch inspired by early Montblanc leather accessories from the Maison’s archive. Montblanc Meisterstück Traveller Limited Edition 1924 will be available starting October at selected Montblanc boutiques worldwide. Montblanc is available in the Philippines at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Cebu, Greenbelt 5, and Solaire Resort Entertainment City.


Levi’s opens biggest Southeast Asia store in Malaysia

LEVI STRAUSS & Co. (LS&Co.) announced the reopening of its expanded Levi’s store at Suria KLCC, one of Malaysia’s premier shopping destinations. It is the largest Levi’s store in Southeast Asia at 393 sq.m. and marks another milestone in LS&Co.’s expansion within the region, as the global apparel company doubles down on delivering elevated retail experiences to denim fans worldwide. The denim lifestyle apparel brand opened a 364 sq.m. store in CentralWorld, Bangkok, Thailand earlier in the year, and more recently expanded its store footage in Mid Valley Megamall, Kuala Lumpur. “Our ambition is to become a $10-billion company and a world-class retailer, and our international business will play an integral role in helping us to achieve this,” Nuholt Huisamen, Managing Director, East Asia-Pacific, for Levi Strauss & Co., was quoted as saying in a press release. The Suria KLCC store houses an extensive product range, including premium collections such as the Levi’s Vintage Clothing, Made in Japan, as well as climate-relevant Performance Cool ranges. The Levi’s Tailor Shop is located at the heart of the Suria KLCC store. Levi’s Suria KLCC opened to the public on Sept. 9, and is located at Lots 346 and 346A, Level 3 of the Suria KLCC shopping mall in Kuala Lumpur City Center.

Gov’t debt yields rally following Fed, RRR cuts

YIELDS on government debt rallied across the board last week after the US Federal Reserve kicked off its long-awaited easing cycle with a jumbo cut.

Debt yields, which move opposite to prices, went down by an average of 32.61 basis points (bps) week on week at the secondary market, data from the PHP Bloomberg Valuation Service Reference Rates as of Sept. 20 published on the Philippine Dealing System’s website showed.

Rates went down across all tenors last week. At the short end, yields on the 91-, 182-, and 364-day Treasury bills (T-bills) dropped by 12.57 bps (to 5.7359%), 11.04 bps (5.8795%), and 8.69 bps (5.9249%), respectively.

At the belly, the rates of the two-, three-, four-, five-, and seven-year Treasury bonds (T-bond) fell by 32.79 bps (to 5.6737%), 35.49 bps (5.6354%), 38.55 bps (5.6338%), 40.99 bps (5.6222%), and 43.07 bps (5.6249%), respectively.

Lastly, at the long end, the 10-, 20-, and 25-year T-bonds declined 44.06 bps, 44.15 bps, and 47.29 bps to fetch 5.652%, 5.7725%, and 5.7405%, respectively.

The volume of government securities (GS) traded jumped to P113.58 billion on Friday from P50.29 billion on Sept. 13.

The week-on-week decline in GS yields was driven by the Fed’s policy decision, as well as the cut in domestic banks’ reserve requirement ratios (RRR) announced by the Bangko Sentral ng Pilipinas (BSP) on Friday, Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message.

“Prior to the week, domestic market participants were expecting the US Federal Reserve to deliver a 25-bp rate cut in its policy meeting. However, as subtle market indications that the US central bank is actually considering to reduce policy rates more aggressively, domestic yields followed suit, with yields falling by at least 25 bps over the week,” a bond trader said in an e-mail.

“Local market participants were firmly awaiting on the US Federal Reserve decision over the week. While most market players already expect the BSP to continue reducing domestic policy rates for the rest of the year, this massive cut from the Fed would provide more leeway for the BSP to consider loosening monetary settings more aggressively. as evidenced by the recent announcement of the 250-bp cut in reserve requirement ratio for universal banks,” the trader added.

The US central bank on Wednesday kicked off an anticipated series of interest rate cuts with a larger-than-usual half-percentage-point reduction that Federal Reserve Chair Jerome H. Powell said was meant to show policy makers’ commitment to sustaining a low unemployment rate now that inflation has eased, Reuters reported.

“We made a good strong start and I am very pleased that we did,” Mr. Powell said at a press conference after the Fed, noting its increased confidence that the country’s bout with high inflation was over, reduced its benchmark policy rate by 50 bps to the 4.75%-5% range. “The logic of this both from an economic standpoint and from a risk management standpoint was clear.”

In addition to approving the half-percentage-point cut on Wednesday, Fed policy makers projected the benchmark interest rate would fall by another half of a percentage point by the end of this year, a full percentage point next year, and half of a percentage point in 2026, though they cautioned that the outlook that far into the future is necessarily uncertain.

The move marks a significant pivot in US monetary policy and a recognition of the Fed’s growing comfort with inflation continuing to ease to its target. It is currently about half a percentage point above it.

The Fed had kept its policy rate in the 5.25%-5.5% range since last July, when it ended an 18-month rate-hike campaign that was meant to control a surge in inflation, which soared in 2022 to a 40-year high.

Mr. Powell declined to declare victory on that front, but he did say inflation is now near the Fed’s 2% goal, and labor conditions are consistent with the central bank’s other goal of maximum employment.

Rate futures traders moved to price in even more easing than projected by the Fed, with the policy rate now expected to be in the 4%-4.25% range by end of this year.

Analysts have said that the start of the Fed’s easing cycle gives the BSP more room to cut benchmark interest rates further.

The Monetary Board on Aug. 15 reduced its policy rate by 25 bps to 6.25% from the over 17-year high of 6.5%, which marked its first cut in nearly four years.

BSP Governor Eli M. Remolona, Jr. has said that the central bank can deliver another 25-bp cut in the fourth quarter. The Monetary Board’s remaining meetings this year are scheduled for Oct. 17 and Dec. 19.

Meanwhile, the BSP on Friday said it will reduce the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% effective on Oct. 25.

It will also cut the RRR for digital banks by 200 bps to 4%, while the ratio for thrift lenders will be reduced by 100 bps to 1%. Rural and cooperative banks’ RRR will likewise go down by 100 bps to 0%.

“The magnitude of future BSP rate cuts will depend mainly on Philippine inflation readings in the coming months. However, the BSP has also previously acknowledged that they are willing to consider a measured approach in cutting more aggressively if Philippine economic performance showed significant downside risks,” the bond trader said.

For this week, the trader said GS yields may continue to go down.

“Yields could potentially decline further [this] week amid expectations of a further softening in the US personal consumption expenditure (PCE) inflation for August, which is the primary inflation gauge of the Federal Reserve,” the trader said. August US PCE price index data will be released on Sept. 27 (Friday).

Mr. Ravelas added that he expects GS rates to move sideways to down in the near term. — K.K.P.D. Mendoza with Reuters

PLDT shares dip after $3-M settlement approval

PLDT Inc. shares fell last week following a United States court’s approval of its $3-million lawsuit settlement.

The telecommunications company ranked 12th in value turnover, with P1.02 billion worth of 815,890 shares traded from Sept. 16 to 20, data from the Philippine Stock Exchange showed.

PLDT shares closed at P1,450 on Friday, down from P1,462 on Sept. 13. Year to date, the stock had increased by 13.4%.

Claire T. Alviar, a research associate at Philstocks Financial, Inc., said that PLDT’s trading last week was impacted by its settlement of a class-action lawsuit with investors.

“We view the settlement of this case as a positive development for PLDT, as the unresolved issue may have caused hesitation among investors who likely prefer a resolution before committing to invest,” Ms. Alviar said in an e-mail.

She noted that PLDT’s stock declined week on week, slightly recovering later but still failing to post overall gains.

“The recent settlement news may have clarified some uncertainty regarding potential litigation risks, leading some to connect the case decision with the possibility of adding PLDT to their portfolios,” Alexandra G. Yatco, equity analyst at Regina Capital Development Corp., said in a Viber message.

Prior to the settlement, the company discovered in 2022 a P48-billion discrepancy or about 12.7% in its P379-billion capital expenditure in the past four years since 2019.

This prompted a US shareholder to file a securities class-action lawsuit against PLDT, accusing the firm of violations of Federal Securities Law, citing its disclosures that indicated a budget overrun of P48 billion during the period.

Moreover, Ms. Yatco noted that PLDT became one of the most actively traded stocks last week after the US Federal Reserve’s policy rate cut.

“Since lower rates benefit capital-intensive sectors such as the telecommunications segment, traders may have been encouraged to invest in their outlook on PLDT’s profitability,” she said.

In a Reuters report, the US Federal Reserve cut interest rates by half of a percentage point, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market.

In the second quarter, PLDT reported a 9% year-on-year decrease in its attributable net income to P8.59 billion from P9.44 billion. Meanwhile, its consolidated revenue rose by 3.3% to P53.36 billion from P51.68 billion.

For the first half of the year, its attributable net income decreased by 0.2% to P18.41 billion from P18.45 billion while consolidated revenues for the period increased by 3.4% to P107.58 billion from P104.04 billion.

Ms. Alviar anticipates year-on-year improvement in the bottom line for the second half, potentially driving full-year earnings growth to at least single digits.

“As of writing, PLDT’s support and resistance are at the 1,430 and 1,490 levels, respectively. After several consecutive days of closing with red candles, the stock is attempting to climb as buying pressure aims to surpass selling pressure, further narrowing the gap. A sideways shuffle is estimated for the upcoming days, as traders continue to monitor PLDT’s profitability.” Ms. Yatco said.

“PLDT’s primary trend (long term) remains in an uptrend, though it is currently experiencing a correction. It is at the support level of P1,440-1,450 range, with the second support pegged at P1,375. The current resistance stands at P1,550. If it fails to stay above the P1,440, we’re expecting a trend reversal, from uptrend to sideways movement,” Ms. Alviar said. — Charles Worren E. Laureta

Fuerza eléctrica

A row of new Porsche Taycans await to depart from Sevilla. — PHOTO BY KAP MACEDA AGUILA

We drive the extensively refreshed Porsche Taycan in Spain

THERE’S NOTHING quite like experiencing launch control on the new Porsche Taycan Turbo. When you release the brake pedal while flooring the throttle, you are catapulted — nay, rocketed forward — nailed to the seatback as the vehicle rapidly acquires pace. You don’t even have enough time to thank God for the headrest that cradles your skull and keeps you from getting whiplash.

You could very well say I left my senses behind me as the battery electric sports car sprinted from a standstill to 100kph in less than three seconds. The official rate, says Porsche, is 2.4 seconds — a hefty 0.4 second quicker than the Taycan it replaces. And on the Porsche Turbo GT with Weissach Package that I’m blessed to be muscling around the track, it’s an even sprightlier 2.1 seconds. The maximum power on this beauty is downright beastly: 760kW or 1,019hp (making it the most powerful series-production Porsche of all time). And this yin-yang quality extends to the silent powertrain and tight chassis that lull you into thinking you are not speeding.

Even if the tarmac of the beautiful Circuito Monteblanco in La Palma del Condado, Spain was a bit wet on account of a spate of showers, the specialized Pirellis on the Taycan kept it steady and planted at speed. The proving ground is a surely worthy experience and showcase of what makes the Taycan so different, so improved from its predecessor. Though a midcycle refresh, the new Taycan is already head and shoulders above the one it replaces — in one aspect, most literally.

Let’s get to that one first. Cognizant of the difficulty of getting into sports cars (ah, the problems we have), Porsche has made tweaks so that when you unlock the vehicle to get in, the vehicle will rise up to make ingress a bit easier; same thing when you are disembarking from it.

There are definitely touches like this here and there that will make even existing Taycan owners take another look — and even consider upgrading.

Among the plethora of niceties, none are more important than bumps in power, range, acceleration, stability, and even charging times.

At the track’s media lounge, I spoke exclusively to Porsche’s spokesperson for the Panamera and Taycan lines, Mayk Wienkötter. I asked for the highlights of this significant rehash. “First of all, we have a bigger battery,” he replied. “That helps, of course, but we really retouched and reworked every part of the car. Everything has been made more efficient. We have a new rear motor, we have new pulse inverter. We even have tires and wheels that are more aerodynamic, and therefore more efficient. And this all adds up. It’s a lot of the little things that we implemented into the new Taycan, and these help to increase the range by up to 35%.”

The previous evening, Porsche held a presentation at the impressive Pabellón de la Navegación for attendees of its New Taycan International Media Drive. This museum in Seville is “devoted to seas and oceans,” underscoring the significance of Seville (or Sevilla) as a fluvial city.

Porsche Taycan Electric Powertrain Director Klaus Rechberger helped to establish context as to what the Stuttgart-headquartered brand prioritized in the new Taycan in terms of share in development cost. Leading the, well, charge is work on efficiency (29%), performance (25%), design and charging (16% each), infotainment (11%), and comfort (3%). It should be no surprise that massive gains were realized in the major areas of spending.

Aside from shaving milliseconds off its standstill-to-100kph time (in the case of the base Taycan, it’s now 4.8 seconds from 5.4 ticks), range has grown significantly. By WLTP standards, the new Taycan can realize up to 678 kilometers on a fully charged battery — up by 35% versus the 503 kilometers of its predecessor. The Taycan Turbo S musters 630 kilometers versus the 467 kilometers (plus 34%) of the older version. The aforementioned batteries have been swapped for higher-capacity ones — 300kW from 240kw in the new Taycan 2WD; 700kW from 560kW in the new Taycan Turbo S. Drilling down further, the improved range reflects breakthroughs in four areas of improvement: battery capacity, increased drivetrain efficiency, optimized drive and recuperation strategy, and optimization of the whole vehicle (mass, aerodynamics, rolling resistance).

The battery gets new cell chemistry to promise high energy density and performance. Aside from enhanced capacity (plus 12%), it accepts greater maximum charge current (plus 20%), boasts a lower starting temperature for fast charging (now at 15 degrees Centigrade from 35 degrees), higher maximum current for launch control (plus 20%), lower weight (less 9kg), and greater energy density (plus 13%).

Looking back, the Taycan, when it was first rolled out to the market in 2019, was probably a bit of a gamble for Porsche, particularly in view of purists who believe in the sanctity of the internal combustion engine (ICE). I posed this very question to Mr. Wienkötter.

“It’s very simple,” he began. “The Taycan is a true Porsche. It looks like a Porsche, drives like a Porsche, handles like a Porsche. It even smells like a Porsche. If you look at the seating position, for instance, it’s very similar to the 911, although it’s a four-seater and a four-door version.”

Insisted the executive: “Everything feels very much Porsche, and that was really crucial for us to create — despite the drivetrain — a car that really resonates with the existing Porsche customers, that they feel at home when they get into the car. The steering feel will be the same, the way the car turns, and the acceleration feel, it should be very similar, and that’s what we achieved with the Taycan, and that’s why it’s such a great success.”

Mr. Wienkötter added that Porsche has produced “almost 150,000” units of the model. If you take into account that it is, after all, a luxury vehicle — and a BEV at that — then it “tells the success story of the Taycan from day one.”

Still, Porsche designers and engineers were cognizant of the misgivings drivers and pundits had about the original vehicle — mainly pertaining to comparatively limited range and efficiency. “We felt that the efficiency needed to be improved, even the performance. So now, the car is quicker, charges more quickly, and goes further. The whole package is now even more complete,” declared the executive.

As for the demographic of Taycan buyers, Mr. Wienkötter reported, “We’ve seen it all. So, 50% are existing customers, 50% are new to the brand, and we even saw some people buy their very first EV through Porsche. So the mix is really, really diverse, which is also, again, part of the success, because the car resonates with so many people from so many different target groups, that it appeals to so many different people.”

This attractiveness for various buyer profiles is also manifested in the diversity of choices in the Taycan — carried over into the refreshed version. There are a staggering 14 different Taycan models — broken down into the three main body types: the sports sedan, the Cross Turismo, and Sport Turismo.

“If a model is not performing, there would be no reason to continue it in through the next generation. We didn’t lose a single model. You can really choose by budget, by design, or by power. It’s really your choice,” concluded Mr. Wienkötter.

A stint on the track was a welcome one to test the limits of the electric vehicle that is truly a Porsche. Incidentally, the Taycan Turbo GT with Weissach Package posted the fastest-ever time for an electric series-production car at the Laguna Seca and the Nürburgring Nordschleife — additionally becoming the fastest four-door of any powertrain type to make a round of the latter.

However, making our way to and from La Palma del Condado and Sevilla was something else. Flying past verdant meadows freshly kissed by rain, beautifully undulating roads in the countryside, and even blissfully feeding livestock, the new Porsche Taycan felt compliant and at home, almost blending into the scenery even as it rushed past in a blur. There was a whole lot of silence as well, almost like the Taycan was respectful and mindful not to disturb the peaceful, living tableau of this slice of paradise.