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One Spain-tacular drive

PHOTO BY KAP MACEDA AGUILA

We get dibs on the all-new version of the Mini Cooper Electric

DID YOU KNOW that Sitges is apparently known as the Saint-Tropez of Spain? Hugging the Balearic Sea — itself part of the larger Mediterranean Sea — the scene coastline city is also relatively near Barcelona, making it easy to access for tourists wanting a slice of the country beyond the usual fare, with a selection of beaches, bars, restaurants, and historical sites. It’s also a community known for inclusion. A pride flag flew prominently on the coastal road leading up to our hotel.

Beyond the usual is, of course, what automotive brand Mini has always been known for — a small, big idea that was a reaction to the 1956 Suez Canal crisis that endangered petrol supply and led to the rationing of fuel. In 1959, barely breaching a length of three meters, the Morris Mini-Minor was born — a fuel-frugal, cute machine from the mind of British-Greek designer Sir Alec Issagonis.

Sixty-five years later, the Mini is still making heads turn — not just because of its diminutive profile but, truly, owing to its design language and everything it continues to stand for.

Mini Head Stefanie Wurst, speaking to members of the international media through a recorded message, said that today’s Mini family — whether electrified or not — bears “three foundational pillars” that define the brand: A digitized community, a minimal footprint, and the quintessential go-kart feeling. “(These) underscore our commitment to connectivity, sustainability, and driving fun. From staying seamlessly connected to your Mini community, to innovative visual features, to minimizing our environmental impact with a compact footprint and finally delivering that exhilarating driving experience reminiscent of a go-kart.”

The main agenda of our trip is to get dibs on the newest iteration of the Mini Cooper Electric, the youngest of Mini’s lineup of battery electric vehicles. Beyond the product, Ms. Wurst averred that this symbolizes the “embracing of a new era of motoring while staying true to (Mini’s) roots. This electrifying package offers an immersive digital experience seamlessly blending cutting-edge technology with the hallmark go-kart feeling that Mini drivers have come to love. While embracing the future, we’re not forgetting our past (as the) electric Mini Cooper retains the traditional minimalistic footprint that has defined Mini for the past four generations.”

The all-electric Mini comes in two trims — the Cooper E and Cooper SE. Per WLTP’s reckoning, the former boasts a single-charge range of up to 305km, while the SE can muster up to 405km. I lead off with these figures because range is undoubtedly the most significant improvement Mini made on the electric Cooper. The previous Cooper Electric went as far as 233km before running out of juice. No doubt, ticking that crucial box — which pundits had considered to be a dealbreaker when the previous generation was lined up against its competitors — allows the Mini’s virtues to shine.

With a couple of days of testing available to the delegation of foreign media who descended onto Sitges, my carmate and friend Ju-Len “Mr. Chia” Leow and I opted for the 27-km short route on the first day, and the aforementioned long route — stretching some 140km — on the next day. We even had stints in the second row of the Mini Cooper Electric SE when the other one was driving, an idea that would have been downright unsavory in the past. It is a Mini, after all.

The song goes that the rain in Spain falls mainly on the plain. That rhyme was swiftly debunked as we drove from our Sitges location through a couple of routes that took us to as far as the municipality of Santa Maria de Miralles in the north. Through scenic mountain passes, elevation changes, and twisties, the Mini Electric SE stretched its legs — hugging tight corners with ease and getting quickly to speed on a whim. The Spanish weather was fickle to us, showering us with rain one minute then turning to a bright blaze of heat the next. In one particular stretch, we were wondering why the rain was pelting the Mini extra loud — only to realize that we were caught in the middle of a hail storm. The car took it like a champ.

The Mini Cooper Electric model receives “completely new” powertrains on both the E and SE variants. A 40.7-kWh-capacity battery enables a 135kW/184hp motor on the E, promising torque of 290Nm for a zero-to-100kph time of 7.3 seconds. On the SE, the motor delivers 160kW/218hp and 330Nm — for a standstill-to-100kph time of 6.7 ticks; the battery capacity is at 54.2kWh.

The exterior look of the all-electric Mini Cooper stays true to what generations of customers have learned to love in the vehicle. It dons the signature circular headlights and the gaping maw of a grille — this time with a “filigree contour” said to “(define) the front section even more powerfully than its hexagonal predecessor.”

For some time now, Mini has been shunning the use of chrome bits on the outside of the car. In the new Mini Cooper Electric, Vibrant Silver is the chosen highlighter. LED daytime running lights have been refreshed with “unique light signatures.”

A sporty gait is furthered by the vehicle’s track width and the indentation in the wheel arches. Onto the side, the Mini has now been stripped of its circumferential black band in an effort to “place the body color more at the center of interest.” Meanwhile, black sills “visually move the Mini Cooper closer to the road.”

Mini has a clever way of calling the drive modes on the Cooper Electric: Experience Modes. With the flick of a switch, you can cycle through numerous choices which are not confined to tweaking motor performance: Go-Kart mode (a more dynamic, agile, and stiff setup), Green Mode (which optimizes drivetrain efficiency and energy recuperation for maximum range), Core Mode (the “standard operating mode for the circular OLED display” and switches on all comfort driving settings, sounds and “creates a calm, neutral light mood” in the cabin), Vivid (adjusts the experience within to the music played through cabin lighting and puts the said music “front and center” on the display), Timeless (inspired by the original Mini, it changes the color and font of the central display, and mimics even the engine note of that pioneering model), Balance (helps the user “find a sense of tranquility” through a relaxing atmosphere, soothing driving sounds and softer interior illumination), and Personal (which lets the owner choose the background of the OLED display by uploading up to three personal pictures; when engaged, the lighting within will reflect the color of the image). My favorite is, no surprise, Go-Kart; Timeless is pretty interesting as well on account of the pleasing retro touch on the OLED display, not to mention the generated “engine note.”

Speaking of audio, Mini has collected a new repertoire of sounds in the all-new Cooper Electric — The repertoire includes entirely new driving sounds that resonate in the cabin, a “Mini brand sound as a mark of identification,” jingles for the Experience Modes, and a whopping 30 new information and warning sounds.

Design-wise, the Mini BEV stays true to two key hallmarks the brand has been known for: the round (and oversized) center instrument/infotainment cluster, and the set of toggle switches. Underscored by a dichotomous “maximum purist” design, the Mini Cooper Electric employs a reductive technique to cut on elements within. For instance, the excellent head-up display not only complements the OLED center screen, but supplants the steering wheel-mounted cluster.

Mini has dared to use textile surfaces for the very first time on the curved dashboard. This, it said, contributes to a “homely feel-good atmosphere.” The company insists that the uniquely knitted material, made from recycled polyester, is a “versatile, easy-care” structure rendered in two tones. Buyers can choose from various colors for the surfaces and seats, depending on the trim design.

An optional panoramic glass roof serves to brighten up the interiors and give a heightened sense of space. Side lighting within is based on the ambient light. Seats come in basic or a JCW version, with side panels laminated with high-quality textile covering the adjustment buttons. An armrest on the driver’s seat also gives more space in the center console.

The rear bench, traditionally not a place an average-sized adult would want to sit, is actually quite serviceable in the new Mini Cooper Electric. It wouldn’t be a stretch to say that the three-door Mini Cooper is finally an (almost) proper four-seater. The luggage compartment, while we’re at it, boasts a respectable 200 liters of capacity — expandable to 800 with the rear seatbacks (60:40 split) down. There’s even an additional underfloor storage facility in the luggage compartment.

With the Spanish countryside whizzing by us, the Mini rewards our confidence in its prowess by nimbly taking corners at speed. It’s a point-and-shooter, to be honest. There’s no hesitation when speed is demanded, while its brakes are steady and reassuring. The go-kart feeling is there, for sure, albeit one deprived of the sensorial accents of engine vibrations to make you feel one with the vehicle’s heart.

If that’s a little too dramatic for you, isn’t the Mini, by its very nature, supposed to elicit an emotional response? In that regard — and much more — the charismatic all-new Mini Cooper Electric succeeds in realizing its legendary raison d’etre.

PSEi member stocks performed — June 28, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, June 28, 2024.


Peso may move sideways before inflation report

THE PESO may continue to move sideways against the dollar this week as the market awaits the release of June Philippine inflation data.

The local unit closed at P58.61 per dollar on Friday, strengthening by 14 centavos from its P58.75 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, the peso likewise rose by 19 centavos from its P58.80-per-dollar finish on June 21.

The peso gained against the dollar on Friday after the Bangko Sentral ng Pilipinas (BSP) lowered its inflation estimates and reiterated its dovish stance, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The BSP on Thursday lowered its average baseline inflation forecasts for 2024 and 2025 to 3.3% and 3.1%, respectively, from 3.5% and 3.3% previously.

It also slashed its risk-adjusted inflation forecasts for this year and next to 3.1% from 3.8% and 3.7%, respectively.

Headline inflation accelerated to 3.9% year on year in May from 3.8% in April, but marked the sixth straight month that inflation settled within the central bank’s 2-4% annual target.

For the first five months, the consumer price index (CPI) averaged 3.5%.

The Monetary Board on Thursday kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting, as expected by all 15 analysts in a BusinessWorld poll.

BSP Governor Eli M. Remolona, Jr., at a briefing after their policy meeting, signaled a “less restrictive” stance if there is a sustained improvement in the inflation outlook, adding they are “somewhat more likely than before” to begin their easing cycle by their next meeting, which is on Aug. 15.

Mr. Remolona said they could cut rates by 25 basis points (bps) in the third quarter and another 25 bps in the fourth quarter for a total of 50 bps in easing for the year, depending on data,

The Monetary Board’s Aug. 15 review is its only meeting in the third quarter. Meanwhile, its last two reviews for the year, which will be held in the fourth quarter, are scheduled on Oct. 17 and Dec. 19.

The peso and other Asian currencies mostly consolidated against the dollar on Friday before the release of US personal consumption expenditures (PCE) data later that day, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

US monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Federal Reserve closer to start cutting interest rates later this year, Reuters reported.

The report from the Commerce department on Friday also showed consumer spending rose marginally last month. Underlying prices advanced at the slowest pace in six months, raising optimism that the US central bank could engineer a much-desired “soft landing” for the economy in which inflation cools without triggering a recession and a sharp rise in unemployment.

Traders raised their bets for a Fed rate cut in September.

The flat reading in the PCE price index last month followed an unrevised 0.3% gain in April, the Commerce department’s Bureau of Economic Analysis said. It was the first time in six months that PCE inflation was unchanged.

In the 12 months through May, the PCE price index increased 2.6% after advancing 2.7% in April. Last month’s inflation readings were in line with economists’ expectations.

Inflation is receding after spiking in the first quarter as 525 bps worth of rate hikes from the Fed since 2022 cool domestic demand. Inflation, however, continues to run above the central bank’s 2% target.

Financial markets saw a roughly 68% chance that the Fed’s policy easing would start in September compared to about 64% before the data, though policy makers recently adopted a more hawkish outlook. The US central bank has maintained its benchmark overnight interest rate in the current 5.25%-5.5% range since last July.

Economists were divided on whether the Fed would still reduce borrowing costs twice this year amid solid wage growth. The release of the US employment report for June next Friday could shed more light on the monetary policy outlook.

Excluding the volatile food and energy components, the PCE price index edged up 0.1% last month, the smallest gain since November. That followed an upwardly revised 0.3% rise in April.

The so-called core PCE price index was previously reported to have climbed 0.2% in April. Core inflation increased 2.6% on a year-on-year basis in May, the smallest advance since March 2021, after rising 2.8% in April.

It rose at a 2.7% annualized rate over the past three months, slowing from a 3.5% pace in April.

The dollar index, which measures the greenback against a basket of currencies, was down 0.07% at 105.82 following the PCE data.

For this week, the foreign exchange market could take cues from the release of June Philippine CPI data on Friday (July 5), Mr. Ricafort said.

A BusinessWorld poll of 14 analysts yielded a median estimate of 3.9% for June headline inflation, within the BSP’s 3.4-4.2% forecast for the month.

If realized, the June CPI would be steady from the May print but be slower than the 5.4% pace logged in the same month a year ago.

It would mark the seventh straight month that inflation was within the BSP’s 2-4% annual target range.

Investors will also await the release of June US jobs data on Friday as these could affect the Fed’s policy path, Mr. Ricafort added.

He expects the peso to move between P58.55 and P58.75 per dollar this week. — AMCS with Reuters

Stocks may extend rally on BSP’s rate cut hints

BW FILE PHOTO

PHILIPPINE SHARES may extend their climb this week after the Bangko Sentral ng Pilipinas (BSP) chief signaled that they could kick off their rate cut cycle as early as next month.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) rallied for a fifth straight day, rising by 0.33% or 21.33 points to end at 6,411.91, while the broader all shares index increased by 0.25% or 8.96 points to close at 3,486.66.

Week on week, the PSEi climbed by 4.12% or 253.43 points from its 6,158.48 finish on June 21.

“After its largest weekly loss for the year, the PSEi made a quick bounce to form, recording its biggest weekly gain for the year… Bargain hunters rode a positive wave in sentiment from the BSP’s dovish messages,” 2TradeAsia.com said in a market note.

For this week, the market could rise further following the BSP’s dovish signals, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The BSP has downgraded its risk-adjusted inflation forecasts for 2024 and 2025. At the same time, BSP Governor Eli M. Remolona, Jr. has signaled the possibility of a rate cut in their August meeting. Prospects of monetary easing are expected to boost confidence towards the market given its positive impact on the general economy as well as on the corporate sector,” Mr. Tantiangco said.

The BSP last week kept benchmark interest rates steady for a sixth straight meeting but signaled that a rate cut at its next meeting in August is “somewhat more likely than before.”

The Monetary Board on Thursday left its target reverse repurchase rate unchanged at a 17-year high of 6.5%, in line with the expectations of all 15 analysts in a BusinessWorld poll.

The BSP lowered its risk-adjusted inflation forecasts for this year and next to 3.1% from 3.8% and 3.7%, respectively.

Mr. Remolona said the Monetary Board is “on track” to cut rates when it next meets on Aug. 15. The BSP could cut rates by 25 basis points (bps) in the third quarter and by another 25 bps in the fourth quarter, he added.

“Investors are also expected to watch out for the Philippines’ June inflation data as this would also provide clues on our country’s monetary policy outlook,” Mr. Tantiangco said.

A BusinessWorld poll of 14 analysts conducted last week yielded a median estimate of 3.9% for June headline inflation, within the BSP’s 3.4-4.2% forecast for the month.

If realized, the June print would be steady from the May pace but be slower than the 5.4% logged in the same month a year ago. It would mark the seventh straight month that inflation was within the BSP’s 2-4% annual target.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail that the PSEi’s immediate major support is at 6,360 and resistance is at 6,470-6,540, while 2Trade-Asia.com placed support at 6,300 and resistance at 6,500-6,600. — R.M.D. Ochave

Low-spending gov’t agencies ordered to file catch-up plans

THE Department of Budget and Management (DBM) has asked underspending government agencies to file plans to bring their fund usage up to target over the remainder of the year, alongside a broader call for mid-year budget utilization reports and updates on major programs.

“All implementing agencies are directed to submit the fiscal year 2024 budget utilization report as of June 30, specifically the Financial Accountability Report (FAR) No. 1 or the Statement of Appropriations, Allotments, Obligations, Disbursements, and Balances (SAAODB), through the Unified Reporting System (URS),” the department said in a circular dated June 28.

In a specific note directed to agencies with low budget utilization, the DBM said: “(Implementing agencies must) submit detailed catch-up plans for agencies… below 50% of their respective physical and financial targets for the first semester of fiscal year 2024 and identify specific implementation issues/challenges encountered (e.g., procurement delays, regulatory bottlenecks, staffing shortages, among others) causing low utilization/performance rates.”

The SAAODB must be submitted to the DBM and the Commission on Audit through the URS within 30 days after the end of each quarter.

Implementing agencies should also submit a list containing the status of flagship programs and projects covered in the 2023 and 2024 General Appropriations Acts, especially those with significant allocations. These must be accomplished through the attached template in the circular.

The National Government has a spending target of P5.754 trillion this year. As of the end of May, government spending was P2.257 trillion, or 39.22% of the target.

Government offices’ cash utilization rate hit 94% as of the end of May, the DBM has reported, equivalent to P1.78 trillion out of the P1.89 trillion worth of notices of cash allocation (NCAs), leaving P115.55 billion left unused.

The DBM issues NCAs to government offices quarterly, allowing them to withdraw funds from the Bureau of the Treasury for their spending needs.

Cash utilization by the end of May was ahead of the year-earlier pace of 91%. — Beatriz Marie D. Cruz

Exporters say wage hike in July would be badly timed

Image via IndustriALL Global Union/Flickr/CC BY-NC-ND 2.0

By Chloe Mari A. Hufana

EXPORTERS said July is “not a good time” to raise wages, citing the industry’s fragile state due to shipping and supply chain disruptions as well as the unfavorable geopolitical conditions for trade.

“As we’ve been mentioning, this is not a good time. If they can check the statistics, exports are just recovering. Globally, there are issues. The shipping issue — there are wars that are affecting the supply chains,” according to Ma. Flordeliza C. Leong, Philippine Exporters Confederation, Inc. vice-president for Advocacy, Communications and Special Concerns, speaking to BusinessWorld on the sidelines of a conference.

She called for “relief to employers” such as “a moratorium on a (wage) increase.”

The Confederation of Wearable Exporters of the Philippines has proposed a one-year moratorium on wage increases, saying they have not yet recovered from the pandemic.

They said a wage hike this year would further drive up production costs, which may cause employers to shed jobs.

Ms. Leong said her organization has no timeline to increase wages, but added that an increase this month would be difficult.

Economist and National Scientist Raul V. Fabella said it is best to keep wage hikes restrained because such measures will reduce the Philippines’ competitiveness.

“Our own wage rate adjustments depend on our inflation rate. If the latter is high, (it is) hard to keep wage rise (within) limits. Which is why the Bangko Sentral ng Pilipinas (BSP) wants to keep the benchmark interest rate high for longer to keep inflation at bay,” he told BusinessWorld via Viber.

“Rice inflation will also result in high wage response. Best to control rice inflation by reduced tariffs on rice,” he added.

The government last month lowered the tariff on imported rice to 15% from 35% to make the staple gain more affordable.

The BSP kept interest rates steady for a sixth straight meeting last week, with the Monetary Board leaving its target reverse repurchase rate at 6.5%.

Ms. Leong nevertheless considers a decision on wages by the Regional Tripartite Wages and Productivity Boards (RTWPB) preferable to a legislated wage hike.

While employers are aware of the effects of inflation on workers, Ms. Leong said a balance needs to be struck.

The Senate in February approved on third and final reading a bill increasing the daily minimum wage in the private sector by P100.

At the House of Representatives, separate bills that seek to increase wages of private-sector workers by P150 to P750 have been filed.

Last week, Labor Secretary Bienvenido E. Laguesma said a wage increase in the National Capital Region (NCR) is likely this month, but declined to say how much pay would rise.

The Employers Confederation of the Philippines signaled its readiness for a P15 to P16 increase, well below the current wage petitions.

The RTWPB-NCR is currently deciding on wage petitions after public hearings wrapped up on June 20.

It is set to release a decision on July 16, the anniversary of the last wage order in the region.

The RTWPB-NCR last year approved a P40 increase, which brought the daily minimum wage to P610 for non-agricultural workers and P573 for agricultural workers.

‘No need’ to import sugar due to ample stocks

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By Adrian H. Halili, Reporter

SUGAR inventories are considered sufficient until the beginning of the milling season later this year, producers said, rejecting the need to import.

Confederation of Sugar Producers Associations, Inc. (CONFED) President Aurelio J. Valderrama, Jr. said that the current rates of withdrawal from reserves indicate that inventory levels are ample, and can hold out until milling starts.

“We reiterate that any sugar import plan should be data-based, calibrated, totally transparent and fair, done in consultation with the industry and therefore immune from speculation and manipulation,” he added.

Last week, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the Department of Agriculture will clear imports of 200,000 metric tons (MT) of refined sugar to plug possible supply gaps during the milling offseason.

The national raw sugar inventory as of June 9 was up 29.3% during the 2023-2024 crop year to 436,229 MT, according to the Sugar Regulatory Administration (SRA).

Stocks of refined sugar, meanwhile, rose 14.1% to 492,985 MT during the current crop year.

Roehlano M. Briones, a senior research fellow with the Philippine Institute for Development Studies, said the planned imports are limited and would not bring down sugar prices during the milling offseason.

“Even with a bigger harvest, there may be strong demand. The problem is, the amount (for import) is limited to what will keep prices from rising, rather than (volumes sufficient to) bring sugar prices down,” Mr. Briones said via Viber.

Calixto V. Chikiamco, Foundation for Economic Freedom president, said that the government should let the private sector determine the demand and supply situation and “let them import to stabilize supply.”

The SRA’s Sugar Order No. 2 allowed buyers of domestically produced sugar to participate in the government’s import operation.

CONFED’s Mr. Valderrama said that the SRA has yet to announce the start of the milling season of the 2024-2025 crop year.

He added that no crop estimates have been released for the new crop year, which has been affected by El Niño.

Last year, the regulator had estimated a 10-15% decline in sugarcane production due to the effects of El Niño.

SRA Administrator Pablo Luis S. Azcona said at the time that El Niño has inflicted damage on sugarcane due to be harvested in October.

It added that parts of Batangas, Southern Negros, and Mindanao have reported extensive sugarcane damage due to dry conditions.

“CONFED is asking SRA to begin consulting with the industry to discuss sugar policy for Crop Year 2024-2025,” he said.

Israeli companies see PHL as attractive destination — envoy

REUTERS

By John Victor D. Ordoñez, Reporter

ISRAEL companies, particularly startups, view the Philippines as a viable gateway to Southeast Asian markets, according to the Israeli Ambassador and the head of Israel’s economic mission in Manila.

“Asia is a growing market, and Israeli companies are becoming more and more interested in the markets here,” Ambassador Ilan Fluss told BusinessWorld on the sidelines of an Israeli tech startup pitch event at his residence in Makati City.

“The Philippines is also an entry point to the Association of Southeast Asian Nations,” he added.

He said the embassy is working closely with the Anti-Red Tape Authority to find ways to make it easier to do business in the Philippines.

“I think the important thing for an Israeli company is to have a good Filipino partner that will be able to guide them (in navigating) the economy,” Mr. Fluss said, noting the difficulties posed by bureaucracy.

Tomer Heyvi, head of the Israel Economic Mission to the Philippines, said more Israeli startups are showing interest in seeking investors from the Philippines.

“The Philippines is a rising star and there is a lot of interest from the Israeli companies in trade, commerce, but also, of course, in investment,” he told BusinessWorld.

Mr. Heyvi said there are more than 9,000 startups in Israel that are seeking partnerships to help them break through in various global markets, including the Philippines.

“Every year, we see an increase in the interest of Israeli companies. So, for me, it’s already an indication that they find this market interesting.”

According to the Central Bureau of Statistics of Israel, trade between the Philippines and Israel amounted to $532 million last year.

Israel’s Ministry of Economy and Industry said on its website that business services between both countries last year were mostly provided by Israeli startups and tech companies engaged in artificial intelligence-based platforms, cybersecurity, and financial technology solutions.

Dotan Sagi, chief executive officer of Israeli software development company Cinten, called for more support for tech accelerators.

“If the government invests in accelerators, hubs for young people that can work and understand the tech way of thinking and how to build a startup, it will be easier to work here,” he told BusinessWorld.

Rice imports hit 2.28 MMT as of late June

BW FILE PHOTO

THE PHILIPPINES imported 2.28 million metric tons (MMT) of rice as of June 20, running ahead of the first half 2023 pace by 22.6%, according to the Bureau of Plant Industry (BPI).

The Philippines imports about 20% of its rice requirement amid insufficient domestic production, but also to tame high rice prices.

President Ferdinand R. Marcos, Jr. signed Executive Order No. 62, which reduced rice tariffs to 15% until 2028, as an inflation-containment measure. The new tariff regime is subject to review every four months.

The BPI said Vietnam remained the top supplier of rice as of late June, accounting for 73.2% of all imports in the year to date.

In January, the Philippines and Vietnam signed an agreement giving the Philippines a quota of 1.5 million MT to 2 million MT of rice annually for five years.

Thailand supplied 348,171.74 MT during the period, or 15.3% of the total, followed by Pakistan with 151,318.86 MT, or 6.6%.

Rounding out the top five were Myanmar and India which shipped 66,120 MT and 21,169 MT of rice, respectively.

The US Department of Agriculture projects Philippine rice imports of 4.6 MMT this year, upgrading its estimates from 3.9 MMT previously, citing high demand and the lowered tariffs.

The Department of Agriculture is projecting rice imports of 3.9 MMT this year. — Adrian H. Halili

BPOs seek better-prepared new hires to improve industry ‘conversion rate’

JASON GOODMAN-UNSPLASH

By Justine Irish D. Tabile, Reporter

THE information technology and business process management (IT-BPM) industry said it is seeking out better-prepared candidates to raise its “conversion rate” of new hires that become permanent employees.

IT and Business Process Association of the Philippines President Jack Madrid said talent remains the industry’s biggest source of competitive advantage, but added that the talent pool needs continuous upgrading.

“Our industry was built on the foundation of Filipino talent, and to preserve our market share and continue to grow our revenue and our headcount, we need to address the talent supply gap,” Mr. Madrid told reporters in a recent briefing.

“There is no short-term fix for this, but having said that, I think it should be relatively easy for incoming new hires to realize that to be attractive to the job marketplace, they need to increase their overall skill set,” Mr. Madrid said.

If properly addressed, however, he does not expect the skills gap to be a “very big issue.”

He said that upskilling the current workforce does not mean that employees have to redo their college degrees, but cited the need to update skill sets and learn new ones suited for the marketplace.

“The Philippines has the advantage of being a very relatively young country with an average age of slightly over 25, and we have a very healthy graduate class from universities of over 700,000,” he said.

“So, if we work together with the private sector and get these employees trained, I see no reason why we will not achieve our goals,” he added.

The 2024 World Competitiveness Ranking (WCR) compiled by Switzerland’s International Institute for Management Development indicated that business executives see the skilled Philippine workforce as one of the factors that make the country attractive.

Jamil Paolo S. Francisco, executive director of the Asian Institute of Management Rizalino S. Navarro Policy Center for Competitiveness, said however that the rankings revealed some issues with the Philippines, which experienced major drops in four indicators measuring the availability of skilled labor.

“They put a skilled workforce as the key attractiveness indicator, and yet we also had data revealing that there was difficulty in finding skilled labor,” Mr. Francisco said.

“Essentially, you’re saying that the best thing about this country is its skilled workers, but executives are having difficulty finding them,” he added.

The Philippine labor market ranked 32nd out of 67 economies this year in the WCR, a big drop from 21st last year. And despite ranking 12th in skilled labor, the country ranked 57th and 54th in the attracting and retaining talent and brain drain indicators.

To address this, Mr. Francisco said that the Philippines will have to improve its basic, digital, and human infrastructure.

“When you say infrastructure, it includes human infrastructure, which is the human capital part — education and health,” he said.

“If there is an issue of skilled labor not being readily available, and the jobs and skills mismatch that investors are seeing, then by improving our human capital development capabilities as well as efficiency, we can help address that,” he added.

He said it is important for the government to come up with skills mapping, as it will give a clearer picture of what skills are needed by the private sector.

“If we can coordinate the necessary skills needed and the skills that we teach our students in private and public education, then the friction in finding the right job skills matching is lessened,” he added.

In terms of basic and digital infrastructure, he said that improving the two will help ease traffic and internet connections, which are crucial to an employee’s productivity and access to remote work.

Realizing potential with GenAI

IN BRIEF: 

• Although most companies that adopt GenAI follow a similar implementation approach and methodology, expending large amounts of time, money and effort, many implementations fail.

• GenAI empowers corporate leaders to envision a new horizon for their organizations, leveraging this rapidly advancing technology well past the bounds of simple gains in productivity.

The significance of managing generative artificial intelligence (GenAI) initiatives is underscored by a white paper from Pactera Technologies, a leading global technology company, which indicated that a substantial 85% of these projects fall short. Forbes corroborates that the majority of GenAI projects do not meet expectations, underscoring a problematic trend in the field.

GenAI projects possess characteristics that differentiate them from standard software development undertakings. Consequently, the strategies employed in overseeing and realizing the potential of GenAI projects demand a tailored approach distinct from conventional software project management. To address this issue and enhance AI project management methodologies, this article will discuss the following fundamental principles designed to refine the management of GenAI-related projects.

ESTABLISHING CLEAR BUSINESS OBJECTIVES AND THE IMPORTANCE OF PLANNING
To fully harness the potential of GenAI, it’s essential to establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for the GenAI solution to achieve. This crucial step involves a deep understanding of the underlying business problem or challenge that the GenAI solution intends to address. It is also vital to consider whether GenAI is the most suitable solution, ensuring that the technology is not simply being used for its own sake.

Identify and rationalize potential use cases for GenAI that are in sync with core business objectives. This involves a process of prioritization — pinpointing which GenAI applications can deliver the highest value in alignment with the strategic direction of the organization. By focusing on areas where GenAI can make a significant impact, businesses can channel their resources more efficiently and create a tailored approach that maximizes its benefits. For instance, a common application of GenAI is in knowledge management, which could provide value across the enterprise.

Understanding the project life cycle is another fundamental aspect of managing and executing a GenAI project successfully. Establish the stages the project will go through, including a comprehensive methodology that covers various phases such as planning, developing, testing, deploying, and monitoring the GenAI solution. While each stage of the project is important, an emphasis on key differences in developing and monitoring traditional and GenAI solutions is important. For example, in developing GenAI solutions, model “training” directly impacts the performance of the solution in production. Likewise, monitoring performance for its accuracy and precision would be continuous throughout the use of the solution.

Selecting the appropriate tools and methodology is equally critical. Whether in terms of data processing software, programming languages, and platforms for deployment, these must be chosen with the aim of enhancing the productivity and effectiveness of the GenAI solution.

UNDERSTANDING DEPENDENCIES AND PREREQUISITES
GenAI solutions depend on a process often referred to as “learning,” which involves feeding them a substantial volume of historical business data. This data acts as the foundation upon which the GenAI model is adjusted and refined, making it crucial that this information is of high quality. The principle of “garbage in, garbage out” is applicable here, as any shortcomings in the data can lead to flawed results. As the system continues to process new data, its effectiveness is influenced by the accuracy, completeness, and overall integrity of the information it receives.

Another key aspect is the existing technological infrastructure and the broader system of the company. The current architecture and its capacities must be evaluated to determine how they might integrate with or support the effective deployment of the GenAI system. This includes considering the capability of current systems to communicate with the GenAI solutions and manage the additional workload. Scalability also cannot be overlooked. While GenAI can be a powerful business enabler, it requires the proper infrastructure to unlock its full potential. For example, GenAI solutions require significant computational power to function properly, thus, a powerful hardware component will accelerate “learning” of complex algorithms.

The implications of GenAI on existing business processes are profound. The adoption of GenAI systems can lead to a complete overhaul of current processes, possibly making some obsolete. This makes it essential to perform a meticulous gap analysis to understand the differences between current state and future state business processes. This helps businesses ensure they can capitalize on the advantages GenAI offers while mitigating any operational disruptions.

CROSS-FUNCTIONAL COLLABORATION
GenAI initiatives will require cross-functional collaboration. A diverse team composition is necessary due to GenAI projects intersecting multiple domains, requiring a holistic understanding of each area to create solutions that are not only technically advanced but also practical and relevant to the business. For example, a GenAI solution includes business process, application, infrastructure, and data components. To be able to design the solution, it will require the business unit to define the business problem, legal unit to provide compliance requirements, IT unit to provide data, infrastructure and other system requirements, HR unit to manage change, and senior leaders to drive its adoption.

Adequate training will be crucial in ensuring that each team member can contribute effectively and understand the complexities of the tasks at hand. A data scientist, for example, must understand not just the intricacies of algorithms and model-building but also the business problems the technology is meant to solve. It is also imperative to involve cross-functional teams from the earliest stages. Collaboration should be established from the beginning, mixing technical expertise with business insights and ethical considerations. This allows every aspect of the project to be scrutinized from multiple perspectives, fostering an environment where technical feasibility, business viability, and ethical implications are all weighed and balanced.

This blended approach ensures that the solutions developed are realistic, beneficial for the business, and designed with a consideration of their impact on stakeholders and society at large.

CHANGE MANAGEMENT
One common issue in implementing a GenAI solution is resistance. While people may be hesitant to adopt new technologies in favor of established routines, it’s essential for companies to anticipate this resistance and prepare with strategies to address concerns and ease the transition for everyone involved.

To facilitate adaptation, the company should provide substantial training and dedicated support. Instructional programs designed to enhance understanding of the new GenAI system can empower employees. Additionally, a hypercare support system, which offers intensive post-implementation assistance, ensures that immediate help is available for any issues or questions that may arise during the initial stages of using the new technology.

Stakeholder management is also a critical component in ensuring a smooth transition. Clear and transparent communication regarding sunk costs associated with GenAI systems is necessary, as well as assurances that the investments are calibrated for long-term benefits. Stakeholders must also understand the timeframes involved, from the initial implementation phase to when positive returns can be expected. By managing expectations with clarity, the company can secure sustained commitment and support for GenAI initiatives.

PERFORMANCE MONITORING AND OPTIMIZATION
Determine baseline metrics that act as a standard against which the added value of the GenAI system can be measured. Once the system is operational, the company must assess its performance, leveraging both qualitative and quantitative methods in its evaluation while utilizing appropriate metrics and benchmarks. For instance, the company might compare the output generated by the GenAI system against previously established baseline metrics, such as output produced by humans prior to when the GenAI system was implemented.

In addition to monitoring technical GenAI metrics such as accuracy and precision, the company must measure the impact of the system through a business-focused lens. This means putting a spotlight on how the system influences business metrics, outcomes, and the overall impact on company operations.

REALIZING THE POTENTIAL OF GENAI
The potential of GenAI transcends simple enhancements in organizational efficiency. Its profound ability to generate, model, and interpret intricate data place it at the forefront of driving business innovation.

GenAI empowers corporate leaders to envision a new horizon for their organizations, leveraging this rapidly advancing technology well past the bounds of simple gains in productivity. Through GenAI, businesses are not just improving processes, but revolutionizing their approach to problem-solving and strategic planning, planting the seeds for long-term value.

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

 

Ryan Gilbert K. Chua is the business consulting leader and technology assurance leader of SGV & Co.

Solar Spikers pick Russian Marina Tushova and four veteran players

MARINA TUSHOVA — FIVB

CAPITAL1 Solar Energy has brought in a young and talented Russian and four new veteran recruits to beef up its roster with hopes of contending in the Premier Volleyball League (PVL) Reinforced Conference unfurling July 16 after a rough debut a conference back.

Solar Spikers owners Mandy and Milka Romero welcomed in Marina Tushova, a long-limbed 6-1 outside spiker who had tours of duty in France and Switzerland, as well as battle-scarred Iris Tolenada, Shola Alvarez, Julia Ipac and Ayumi Furukawa with aspirations of adding more excitement to the league.

Ms. Tushova, who last saw action for Sparta Nizhny Novgorod back home, has arrived in the country as early as June 10 and has seamlessly bonded with the whole team and adapted to Capital1 coach Roger Gorayeb’s system.

“We hope to bring more excitement to the fans that’s why we took her and the four other local players,” said Mandy Romero, who is slowly but surely transforming the Solar Spikers into one championship squad.

Apart from the new recruits, Capital1 is banking on getting the best out of the second pick it has drawn a week ago in the history PVL rookie draft.

The rookie draft day is set July 8 at the Novotel.

Mr. Gorayeb had initially told The STAR he is interested in setter Julia Coronal or spiker Leila Cruz but may have to reconsider after tabbing an experienced setter in Ms. Tolenada.

“Whoever coach Roger (Gorayeb) and team will pick, we are certain she must be good,” said Milka Romero, oldest daughter of Rep. Mikee Romero (1Pacman) who once served as the godfather of PHL amateur basketball.

Meanwhile, Zus Coffee, formerly Strong Group Athletics, and Galeries Tower will have Japanese Asaka Tamaru and Brazilian Monique Helena as reinforcements, respectively.

Other clubs already with imports were Venezuelan MJ Perez of Cignal, Greek Zoi Faki of Choco Mucho and American Erica Staunton of Creamline. — Joey Villar