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National Reinsurance Corporation of the Philippines to hold Annual Meeting of Stockholders on June 25

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
JUNE 25, 2025 / 2:00 P.M.

Please be advised that the Annual Meeting of Stockholders of NATIONAL REINSURANCE CORPORATION OF THE PHILIPPINES (the “Company”) will be held on June 25, 2025, Wednesday, at 2:00 p.m., at the Kawayan Ballroom, 4F The City Club, Alphaland Makati Place,7232 Ayala Avenue Extension, Makati City, with the following agenda:

  1. Call to Order 
  2. Proof of Notice of Meeting and Certification of Quorum 
  3. Approval of Minutes of Previous Stockholders’ Meeting held on June 26, 2024 
  4. Management Report for the Year Ended December 31, 2024 
  5. Ratification of All Acts of the Board of Directors and Officers during the Preceding Year 
  6. Election of Directors 
  7. Re-election of Mr. Medel T. Nera as Independent Director 
  8. Other Matters 
  9. Adjournment

Only stockholders of record at the close of business on May 13, 2025 are entitled to notice of, to attend, and to participate in this year’s Annual Meeting. Stockholders who are unable to attend the Annual Meeting in person may execute a proxy or vote in absentia.

Proxy

Proxies must be submitted and addressed to the attention of the Corporate Secretary at the 31st Floor BPI-Philam Life Makati, 6811 Ayala Avenue, Makati City, Philippines or via email at asm@nat-re.com not later than 3:00 p.m. on or before June 15, 2025.

A proxy executed by a corporation shall be in the form of a board resolution duly certified by the Corporate Secretary or in a proxy form executed by a duly authorized corporate officer accompanied by a Corporate Secretary’s Certificate quoting the board resolution authorizing the said corporate officer to execute the proxy. Validation of proxies shall be held on June 20, 2025, at 2:00 p.m. at the principal office of the Corporation.

Voting in Absentia

Stockholders who intend to vote in absentia must submit the requirements by email at asm@nat-re.com or at the registration portal.  Please refer to this link for the list of requirements – https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#rvj.

The link for the online voting facility will be emailed to the concerned stockholders after the Company has validated the submitted requirements. Stockholders may cast their votes in absentia from May 28, 2025, until 11:00 a.m. of June 25, 2025.

On-site Registration

To avoid any inconvenience in registering your attendance at the meeting, you or your duly designated proxy, are required to bring this Notice, and any identification documents containing a photograph and signature, such as a passport, driver’s license, or any government-issued identification. Registration starts at exactly 1:00 p.m. and will close at 2:00 p.m. on June 25, 2025.

Copies of the Notice of the Meeting, Definitive Information Statement, and other related documents in connection with the annual meeting may be accessed through the company’s website and through the PSE Edge portal at https://edge.pse.com.ph.

For any concerns, please reach us through asm@nat-re.com.

For complete information on the Company’s annual meeting, please visit www.nat-re.com/investor-relations/annual-stockholders-meeting.

May 22, 2025, Makati City, Metro Manila.

Access to Notice of Meeting, Agenda Items and Explanation of Agenda Items, Proxy Form, Sample Secretary Certificate, Definitive Information Statement, Management

Report, Financial Statements, SEC Form 17A and Minutes of Stockholders’ Meeting dated June 26, 2024 can be downloaded by scanning the QR code provided herewith.

Likewise, you may also download it from the Company’s website by clicking this link https://www.nat-re.com/investor-relations/annual-stockholders-meeting/#files.

Electronic copies of the same documents are also available at the PSE Edge.

For the Board of Directors,

(Original Signed)
NOEL A. LAMAN
Corporate Secretary

 

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SEC pushes real estate developers to tap capital market

A VIEW of buildings in Makati City. — PHILIPPINE STAR/MICHAEL VARCAS

THE Securities and Exchange Commission (SEC) is urging real estate companies to tap the capital market for their growth and funding needs, citing a streamlined registration process.

“Access to the capital market can provide a long-term, cost-effective financing alternative, unlocking new opportunities for expansion and innovation. At the same time, increased real estate activity within the capital market can attract a more diverse pool of investors and contribute to greater market liquidity and resilience,” SEC Commissioner McJill Bryant T. Fernandez said in an e-mail statement on Thursday.

“Given its scale and strategic importance, the real estate sector stands to benefit immensely from deeper participation in the capital market,” he added.

At a launch event on May 21, the SEC introduced the guidelines on Securing and Expanding Capital in Real Estate Investment Transactions (SEC RENT), implemented through SEC Memorandum Circular No. 12, issued on July 16, 2024.

SEC RENT streamlines the registration process for securities issued by real estate companies offering investment contracts through rental pool agreements.

Rental pool agreements are investment contracts in which a property developer sells or offers units in real estate projects — such as condominiums, hotels, or resorts — to the public, provided that buyers contribute the units to a rental pool managed and operated by the company or a third-party operator.

Under such agreements, buyers receive a share in profits based on agreed conditions, typically derived from renting out the units to third parties.

“The growth of the real estate sector and the development of the capital market are mutually reinforcing,” Mr. Fernandez said.

“Accounting for 5.6% of gross domestic product in 2024, the real estate industry continues to be a vital engine of economic development, with strong interconnections to construction, finance, retail, and tourism,” he added.

Under the Securities Regulation Code, the SEC Markets and Securities Regulation Department is mandated to complete its review of registration statements filed by covered companies within 45 days.

“We probably look at securities offering and all these types of capital market sourcing as for the big players alone. Small companies like us traditionally resort into borrowings as source of funds to continue operating our businesses,” Chamber of Real Estate & Builders’ Association, Inc. Vice-President for Housing Affairs Demetrio L. Posadas said.

“Our organization appreciates the efforts being extended by the SEC for now reaching out not only to big developers, but likewise for making us understand that we, small companies, probably have a chance to participate in this capital market,” he added. — Revin Mikhael D. Ochave

Sean ‘Diddy’ Combs allegedly threatened to leak sex tapes of his ex

Sean “Diddy” Combs on the talk show Late Night with Seth Myers. — IMDB

NEW YORK — Sean “Diddy” Combs routinely beat his ex-girlfriend and during fits of rage threatened to release sex tapes of her to the internet, a stylist testified on Wednesday at the hip-hop mogul’s sex trafficking trial.

Deonte Nash, who worked as a stylist for Mr. Combs and Mr. Combs’ former girlfriend Casandra Ventura from 2008 to 2018, alleged that Mr. Combs repeatedly beat Ms. Ventura and threatened to release the tapes while raging at her for not being obedient.

“He told her she fucked up and he was going to put her sex tapes on the internet,” Mr. Nash said, recounting an alleged incident in 2013 or 2014.

Mr. Combs, 55, has pleaded not guilty to five counts including racketeering and sex trafficking. He faces up to life in prison if convicted on all counts.

Last week, Scott Mescudi — the rapper known as Kid Cudi — testified that his car was set on fire in 2012, shortly after Mr. Combs learned that Mr. Mescudi had a romantic relationship with Ms. Ventura.

Prosecutors say the alleged arson of Mr. Mescudi’s car was one of several violent or illegal acts that Mr. Combs or his associates undertook to prevent women from leaving his orbit and keep his abuse quiet.

On Wednesday, a lawyer for Mr. Combs told the judge outside the jury’s presence that prosecutors’ questions to a Los Angeles arson investigator implied that Mr. Combs had a role in the destruction of fingerprint evidence, arguing the questions were grounds for a mistrial.

US District Judge Arun Subramanian swiftly denied the request, saying none of the testimony was unfair to Mr. Combs. He told jurors to disregard the questions and answers about the fingerprints.

Testimony in Mr. Combs’ trial in Manhattan federal court is in its third week. Prosecutors say Mr. Combs, the founder of Bad Boy Records, coerced women, including Ms. Ventura, over two decades to take part in days-long, drug-fueled sexual performances with male sex workers known as “Freak Offs.”

Mr. Combs’ lawyers have acknowledged that he was at times abusive in domestic relationships, but said the women who participated in Freak Offs did so consensually.

Over four days of emotional testimony during the first week of trial, Ms. Ventura recounted years of alleged physical and emotional abuse by Mr. Combs.

Ms. Ventura, a rhythm and blues singer known as Cassie, said she hated the Freak Offs. She said she participated because she loved Mr. Combs and because she feared how he would react if she didn’t. — Reuters

AI: The lifeline of healthcare innovation in ASEAN

IBM ASEAN

By Catherine Lian

ACROSS the ASEAN region, a quiet revolution is transforming healthcare. From bustling urban hospitals in Singapore to remote clinics in Indonesia’s archipelago, Artificial Intelligence (AI) is reshaping how healthcare is delivered, making it more accessible, efficient, and personalized. As ASEAN nations strive toward universal healthcare coverage, AI has emerged as a critical enabler, bridging gaps in infrastructure and expertise while pushing the boundaries of medical innovation.

DIGITAL TRANSFORMATION
From early diagnostics to operational efficiency, AI is no longer a futuristic concept — it is the lifeline of healthcare innovation in ASEAN today.

The healthcare landscape across ASEAN is diverse, with Singapore’s cutting-edge medical facilities standing in stark contrast to the limited resources available in rural areas of neighboring countries. This disparity creates both challenges and opportunities for AI implementation. While Singapore’s SingHealth and National University Health System forge ahead with sophisticated AI solutions, other nations are finding innovative ways to deploy AI that addresses their specific healthcare needs.

In Indonesia, for instance, DoctorTool has pioneered a generative AI-powered prescription support system built on IBM’s watsonx.ai platform. This solution helps healthcare providers comply with government regulations while minimizing insurance fraud — a critical advancement in a country where healthcare resources are stretched across 18,000 islands.

TRANSFORMING PATIENT CARE
The impact of AI on patient care is multifaceted and profound. Early disease detection, perhaps AI’s most significant contribution to healthcare, is transforming outcomes for patients across the region. AI algorithms can now detect subtle patterns in medical images that might escape the human eye, identifying cancers, diabetes complications, and heart disease at earlier, more treatable stages.

Beyond diagnostics, AI-powered telemedicine is bridging critical access gaps. In remote areas where specialist care was once unavailable, AI-enhanced telehealth platforms now connect patients with medical expertise. These systems don’t merely facilitate video consultations; they incorporate predictive analytics and decision support tools that enhance the quality of remote care.

Thailand’s Siriraj Piyamaharajkarun Hospital illustrates this transformation. By implementing an AI-powered Pathology Information System developed with IBM, the hospital has revolutionized cancer diagnostics. The system integrates laboratory workflows, image scanning, and centralized data processing, allowing pathologists to make faster, more accurate diagnoses. For patients awaiting potentially life-changing results, this efficiency isn’t just convenient — it’s lifesaving.

OPERATIONAL EXCELLENCE
While patient-facing applications capture headlines, AI is quietly transforming healthcare operations. Some hospitals have utilized AI for resource management, patient flow optimization, and staff scheduling — creating efficiencies that directly impact patient experience and outcomes.

Maharaj Nakorn Chiang Mai Hospital has leveraged generative AI to automate laboratory orders, improve resource management, and streamline patient flow. Built on watsonx.data and watsonx.ai, the AI model analyzes doctors’ notes, recommends treatment pathways, and automatically processes lab orders and bookings — enhancing efficiency, reducing patient waiting times, and supporting faster, more confident medical decisions.

Similarly, Indonesia’s pharmaceutical sector is embracing AI-driven transformation. PT Holi Pharma and ETHICA Pharmaceutical Industry collaborated with IBM Consulting and SAP to accelerate its digital journey, deploying cloud-based ERP systems that deliver faster operational insights and enhance production capacity. For patients, this translates to more reliable medication access — a fundamental healthcare need.

NAVIGATING THE MAZE
Despite its promise, AI implementation in ASEAN healthcare faces significant hurdles. Data privacy concerns loom large, particularly as healthcare organizations collect and analyze sensitive patient information. The region’s uneven regulatory landscape compounds this challenge, with varying approaches to data protection across member states.

Infrastructure gaps present another obstacle. While Singapore boasts world-class digital infrastructure, many ASEAN nations struggle with basic connectivity, particularly in rural areas. This digital divide threatens to exacerbate healthcare inequalities if not addressed through targeted investments and policies.

Perhaps most critically, workforce readiness remains a concern. There’s a palpable resistance among some medical professionals to embrace new technologies — often masked as “having no time” to learn new systems. This perspective overlooks how AI can revolutionize practice, saving valuable time and allowing doctors to reconnect with their core mission of patient care.

The opportunity for healthcare providers to “be human again” and engage more personally with patients represents a compelling argument for AI adoption. Yet communicating this effectively to overworked professionals remains challenging.

ETHICAL AI
As AI becomes increasingly embedded in healthcare systems, ethical considerations must remain paramount. Algorithmic bias, a well-documented concern in AI development, carries particularly serious implications in healthcare, where it could perpetuate or even amplify existing disparities in care.

The path forward requires robust ethical frameworks that ensure AI-driven healthcare remains equitable and patient-centered. IBM’s AI ethics guidelines offer one approach, emphasizing transparency, fairness, and human oversight in AI development and deployment.

THE ROAD AHEAD
The future of AI in ASEAN healthcare will be shaped by collaboration. Government policies must evolve to support responsible AI adoption while protecting patient interests. Healthcare providers must be willing to rethink traditional approaches, embracing the efficiency and insights that AI offers. Technology companies must develop solutions that address the region’s unique challenges and diverse needs.

The transformative potential of AI in healthcare is undeniable. From enhancing diagnostic accuracy to personalizing treatment plans, from streamlining operations to expanding access, AI offers a path to more inclusive, efficient, and effective healthcare across ASEAN.

The revolution is already underway. The question now is not whether AI will transform healthcare in ASEAN, but how quickly and completely the region’s healthcare systems will embrace this transformation — and how equitably its benefits will be distributed.

For patients across the ASEAN, the stakes couldn’t be higher. In this era of technological possibility, access to AI-enhanced healthcare isn’t just a matter of convenience — it’s increasingly a matter of life and death.

 

Catherine Lian is the general manager and technology leader at IBM ASEAN.

Twilio: PHL banks may replace OTPs with more secure passkeys

By Aaron Michael C. Sy, Reporter

CUSTOMER engagement platform Twilio expects banks to adopt alternative authentication methods such as silent network authentication and passkeys as the Bangko Sentral ng Pilipinas (BSP) pushes lenders to veer away from one-time passwords (OTP).

“We expect banks and other financial firms in the Philippines to move towards more sophisticated and secure authentication methods and gradually use SMS (short message service)-based authentication for initial registration or as a fallback, considering its accessibility and convenience,” Twilio Communications Business Asia Director Billy Chan said in a note.

The central bank in February said it was looking to veer away from the use of OTPs for more secure and advanced authentication methods.

“One of the vulnerabilities of SMS-based OTP is that it is unencrypted, and therefore not designed for security,” Mr. Chan said. “This makes it vulnerable to interception, as anyone with access to the data can read it.”

He said passkeys, such as fingerprint scans or personal identification numbers (PIN), are gaining traction among local banks because many Filipinos are familiar with them and due to their enhanced security.

Twilio Asia Pacific and Japan Communications Solutions Engineering Lead Christopher Connolly said silent network authentication, which uses mobile carriers to verify the possession of a phone number without needing user input, is already being used by telecommunication companies.

“The process happens in the background and does not require a PIN or a separate authenticator app, eliminating risks associated with phishing, social engineering and SMS scams,” he said.

Mr. Connolly said this type of authentication is also built in the standardized global system for mobile communications authentication, which allows organizations to beef up security without any negative impact on user experience or conversion.

“Financial firms will likely explore adaptive authentication strategies that assess risk in real-time and leverage AI (artificial intelligence) and behavioral analytics to dynamically adjust access controls based on observed activities,” he added.

Banks may also tap third-party solutions as an alternative to OTPs, such as those that provide authentication across multiple channels.

“For instance, Twilio Verify is a purpose-built end-user verification API (application programming interface) that handles route optimization, channels, code generation and fraud monitoring — enabling user verification over multiple channels at scale,” Mr. Connolly said.

He said banks should use such solutions to add extra layers of security to prevent fraudulent transactions and access attempts.

“Twilio’s Lookup API, for example, works in the background to look up a phone number and filter real users from those with suspicious behaviors.”

Artificial intelligence (AI) and behavioral biometrics will also likely be used by banks, but Mr. Connolly said human oversight is still needed to prevent false positives.

He said regulators are expected to establish strict guidelines to address AI-generated fraud and emphasize identity-proofing protocols.

“Public education campaigns will raise awareness about digital deception risks and promote vigilance,” he said. “We also expect a closer collaboration between the public and private sectors to defend against these emerging threats targeting consumers and their digital transactions.”

Globe CEO Carl Cruz: ‘Connectivity is a right — and we’re making it happen’

Globe is making it easier for Filipinos to be connected across the country by rolling out new technologies that improve both mobile and home internet experiences.

As of March, Globe has expanded its 5G coverage to 98.71% in Metro Manila and 97.97% in key cities across the Visayas and Mindanao, thanks to the addition of 235 new 5G sites. This means faster, more reliable connections for millions of Filipinos who use their mobile phones anywhere from work to entertainment. These new sites are already supporting over 9.5 million 5G devices, helping make high-speed internet available to even more people across the country.

“We’re focused on making sure Filipinos get the best mobile experience possible,” said Carl Cruz, Globe’s President and CEO. “This is about more than speed — it’s about making sure every Filipino, wherever they are, can tap into the future. It’s key for supporting future technologies like AI, and as the cost of 5G devices goes down, we want to make sure more people can access these advancements.”

In the first quarter of this year, Globe built 487 new cell towers and upgraded 3,940 existing ones with LTE technology, making sure that the network stays strong, even during busy times. Plus, with new technology like 32T32R Massive Multiple-Input Multiple-Output (MIMO), the network is becoming faster and more stable for customers in crowded areas.

Globe is steadily changing the story. Under the Connectivity Plan Task Force (CPTF) led by the Private Sector Advisory Council (PSAC), it has already switched on 600 new cell sites in geographically disadvantaged and isolated areas. From northern mountain provinces to island barangays in the south, each new site brings essential access to education, livelihood, health services, and hope. And the mission isn’t over. By the end of 2025, Globe aims to expand this further to 700 as part of a broader industry-wide movement to close the digital gap and ensure that no Filipino is left offline.

Globe’s efforts have also been recognized globally. At the Mobile World Congress 2025, the company has been recognized as the Philippines’ Most Consistent Mobile Network from 2022 to 2024. Globe was also honored with the Excellent All-Optical Network for AI Enablement award for creating energy-efficient infrastructure that supports the needs of today’s digital world.

“Connectivity is no longer a privilege, it’s a right,” Cruz added. “Globe is working to make sure that right is protected, expanded, and felt in every home and every pocket in this country.”

With ongoing upgrades and continued expansion, Globe is ensuring millions of Filipinos have access to fast, reliable mobile and home internet while driving innovation and growth across the country.

 

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First Gen bats for policy reforms to spur power sector growth

FIRSTGEN.COM.PH

FIRST GEN Corp. is calling for reforms in the regulatory framework, including a review of price caps in the Wholesale Electricity Spot Market (WESM), to allow power generators to recover returns and encourage further investments.

“There are regulatory policies and market mechanism structures that make critical power investments difficult to sustain,” First Gen President and Chief Operating Officer Francis Giles B. Puno said during the company’s annual stockholders’ meeting on Thursday.

Mr. Puno said there is a need to re-evaluate market price caps that compress margins and deter investments.

Under the Electric Power Industry Reform Act of 2001, the Energy Regulatory Commission (ERC) is responsible for promoting competition, encouraging market development, and discouraging abuse of market power within the restructured electric industry.

Mr. Puno said current market caps prevent merchant generators — who do not operate continuously — from earning sufficient returns.

“The way it’s working right now is that at the time when the power is needed the most, the market intervenes — so it’s like, what’s the incentive for you to operate? If that’s the case, or even worse, what’s the incentive for you to make more investments in merchant facility?” he said.

He noted that other countries have clearer policies to ensure sufficient capacity is built, including merchant capacity.

Mr. Puno also called for stronger government support through longer-term offtake agreements, commercially viable structures, and credit guarantees to attract major infrastructure investments.

First Gen’s current portfolio includes 3,668 megawatts of combined capacity from geothermal, wind, hydropower, solar energy, and natural gas plants.

For 2025, the company set a capital expenditure budget of $601 million, with a significant portion allocated to geothermal projects under its subsidiary Energy Development Corp., First Gen Chief Finance Officer Emmanuel Antonio P. Singson said. — Sheldeen Joy Talavera

Union seeks worker support during EDSA rehab

Motorists deal with heavy traffic along EDSA in Makati City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

A LABOR UNION is urging the government to protect and support workers affected by the rehabilitation of Metro Manila’s busiest highway.

“The DoTr (Department of Transportation) has outlined a few alternatives. But they’ve failed to provide any assurance that things won’t get harder for workers over the next two years,” Joanna Bernice S. Coronacion, deputy secretary general of the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) said in a statement.

Ms. Coronacion said the rehabilitation project will impact workers who use Epifanio de los Santos Avenue (EDSA) daily. “For millions of workers already enduring long, exhausting commutes, this will make a bad situation even worse,” she added.

The government is set to invest P8.1 billion in rehabilitating EDSA starting June 13. The road is used by an average of 437,000 vehicles daily.

“We call on the government to convene an emergency summit — now. Bring all stakeholders to the table. Open the plans. Listen to commuters, workers, and communities,” she added.

She added that the government and those affected by the roadworks need to agree on a comprehensive response, including smart traffic management and expanded and reliable public transportation.

The plan should also incorporate flexible work arrangements to give workers options during the rehabilitation.

The Department of Labor and Employment has urged companies to adopt work-from-home schemes to avert potential gridlock while the roadworks are ongoing.

“Workers and commuters are not collateral damage. They are the heart of this city. They deserve respect, dignity, and a voice in the decisions that shape their daily lives,” Ms. Coronacion said.

SENTRO is also pushing for a high-capacity busway with proper pedestrian access to train stations and 3.5-meter-wide, tree-lined and shaded sidewalks.

“If the goal is a livable, inclusive Metro Manila, then EDSA must be rebuilt with the people in mind,” she added.

The rehabilitation project is expected to run for two years and will be the road’s first major upgrade since the 1980s. — Adrian H. Halili

Hailey Bieber sells makeup brand Rhode to Elf Beauty in $1-billion deal

RHODESKIN.COM

MODEL Hailey Bieber’s makeup and skincare brand, Rhode, is being snapped up by Elf Beauty for about $1 billion, giving the budget cosmetic retailer access to a celebrity-endorsed product line that has become hugely popular among Gen Z and millennials.

Elf said on Wednesday it would pay Rhode shareholders $800 million in a combination of cash and stock and an additional potential earnout consideration of $200 million subject to certain performance-related conditions.

Last month, Reuters reported that Ms. Bieber was exploring a sale of the brand, which could be worth more than $1 billion.

For Elf, the deal would mark a shift in strategy and expand into the prestige beauty market as the company faces weak demand from mass market customers who are being pressured by persistently high inflation.

“The Rhode deal is a bold move for e.l.f. into premium beauty at a time when the prestige side of the industry has lost some of its momentum as a result of consumers buying less or trading down,” said Sky Canaves, eMarketer analyst.

However, Rhode has bucked this trend, Ms. Canaves added, with a strong Gen Z following and significant buzz around its product launches, positioning it well for a strong expansion.

Elf — short for eyes, lips, and face — offers products priced as low as $2 at US retailers including Walmart, Ulta Beauty, and Target.

On the other hand, Rhode — which launched in 2022 and gained popularity with TikTok viral products such as its $18 “peptide lip treatments” — sells exclusively through its own website or pop-up stores, relying heavily on Hailey Bieber’s social media influence.

Ms. Bieber said, “e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally.”

The company raked in about $212 million in sales for the year ended March 31 and is planning to start selling at Sephora stores across the US and Canada coming this fall, followed by the UK.

“Rhode further diversifies our portfolio with a fast-growing brand that makes the best of prestige accessible,” Elf Chief Executive Officer Tarang Amin said in a statement.

Earlier this year, Elf’s shares cratered 20% after the company cut its annual forecasts and warned of weakening demand.

Elf’s deal with Rhode would mark its biggest acquisition to date and follows its $355-million acquisition of skincare company Natrium in 2023.

Ms. Bieber will continue her role as founder and will also act as a “strategic advisor” after the deal closes. The transaction is expected to close in the second quarter of fiscal 2026.

Separately, Elf on Wednesday refrained from providing a fiscal 2026 forecast due to uncertainty surrounding import tariffs despite beating Wall Street expectations for fourth-quarter sales.

The company, which sources about 75% of its products from China, down from 100% back in 2019, said last week it would raise prices by $1 to combat tariff pressure. — Reuters

Consumer AI gadgets will come with a whimper, not a bang

FREEPIK

By Catherine Thorbecke

WHERE are all the artificial intelligence (AI) consumer gadgets? Even a year ago, it seemed tech companies were working to incorporate the technology into every physical device, from coffee makers to vacuums, making “AI-powered” hardware seem like it would soon be as ubiquitous as “battery-powered” electronics.

Typically, tech conferences offer a glimmer of these futuristic toys. Not all of them end up hitting the market, but it’s where we can dream a little about new pocket devices or household robots taking on a greater role in our lives.

So it was a little disappointing last week at Asia’s biggest artificial intelligence conference, Taiwan’s Computex, to find hardly any mentions of consumer-facing tech. Most keynotes focused on enterprise applications of AI, such as agents or automated manufacturing. Walking around the exhibitors’ hall, the only thing that caught my eye were wireless computer mice shaped like cats.

A few things seem to have changed. For starters, there’s the reality that hardware engineering presents an entirely different set of physical challenges compared to tinkering with AI software. And a global trade war also makes it a risky time to launch a new gadget when it’s unclear if consumers are interested. Companies also may be starting to pick up on the fact that while Wall Street is awash with global hype on the AI boom, it isn’t exactly a selling point on Main Street.

If anything, some of the executives speaking at the conference threw cold water on the next generations of these AI-first consumer products. Asustek Computer, Inc. co-Chief Executive Officer Samson Hu told Bloomberg News that it will take another year or more for AI-powered PCs to go mainstream because the technology isn’t quite there yet and macroeconomic uncertainty is impacting people’s spending. There have been few compelling use cases for AI PCs so far, despite the mountain of promotion.

Meanwhile, the graveyard of AI hardware that was supposed to transform our lives is already growing. The Humane Ai Pin wearable device — launched last year to much hype about how it was going to replace the smartphone — ended up receiving brutal reviews while being a fire hazard. The startup, run by two former Apple, Inc. employees, stopped selling the Ai Pin earlier this year and was sold for parts. The Rabbit R1 assistant is another cautionary tale of the false promises of these gadgets.

But that doesn’t mean the future of AI consumer products isn’t coming. OpenAI made the major announcement last week that it is working with legendary iPhone designer Jony Ive to launch something that takes AI into the physical realm for consumers. But even the might of OpenAI’s technology and Ive’s design prowess make whatever it is a far from certain bet.

There were perhaps some lessons for the future of such devices from the gathering in Taiwan. During his keynote speech, Qualcomm, Inc. Chief Executive Officer Cristiano Amon said that AI computers are at the phase where they will require the work of outside developers to make them appeal to consumers. The iPhone, for example, didn’t take off immediately after it was launched. But it became essential to so many people because of the myriad apps developers built on top of it that we now use to hail taxis, order food, or move around new cities. “Really, the developer ecosystem is going to make this shift to AI PCs,” Amon said. He’s right, and the same is true beyond just AI computers.

For any revolutionary AI hardware device, and especially a smartphone killer, the more that global developers lead the charge to meet peoples’ needs and solve small, everyday problems, the more likely they are to succeed. In this economy, maybe that doesn’t mean repackaging the same old gadgets with shiny new AI labels. It means iterating and perfecting real use cases that incorporate the buzzy technology into devices and make our lives easier. And this will inevitably be a collective effort.

AI is already transforming our world in small ways. I find asking ChatGPT to quickly translate phrases for me while on the go a lifesaver when navigating a new country. But I hardly want to shell out money to carry around a new device simply to access ChatGPT.

The more the tech industry tries to slap AI onto everything and market it as a panacea for all our problems, the more I get a snake-oil salesman ick. The future of AI hardware won’t come in a magical new gadget, it will be built by tackling these tasks one-by-one and not all at once.

BLOOMBERG OPINION

Philippine transition to a low-carbon economy

The Philippines remains one of the most at risk and vulnerable to the effects of climate change. Its location and the frequency of several other phenomena related to the worsening climate crisis threaten the country’s communities, infrastructure and economy.

For businesses, these disruptions may result in operational setbacks, logistical challenges and financial losses. Given the high risks posed by climate change, it is crucial that companies in the Philippines take a proactive role in transitioning to low-carbon operations. This is not merely a global trend; it is a necessity to ensure financial and operational sustainability of businesses and to uphold national stability and resilience.

The transition to a low-carbon economy is also not just about mitigating risks for individual businesses. It is also a national obligation under the country’s commitment to the Paris Agreement, in which all member countries must submit their updated nationally determined contributions based on a five-year cycle of review. The Philippines has pledged to reduce its greenhouse gas emissions by 75% by 2030, and the National Government must implement measures that require scaled and extensive corporate participation, pushing them to submit their decarbonization plans every five years and compliance reports yearly.

The transition to a low-carbon economy will vary for each company, and so will the risks associated with their movements. Some businesses may undertake considerable financial investments in cleaner technologies, while others may experience operational disruptions as they shift away from carbon-intensive processes. These transition risks, combined with evolving market expectations and policy changes, reinforce the urgency for companies to prepare effectively and choose strategic planning methods that allow them to assess risks and opportunities competently.

A strategic planning method based on varying circumstances and scenario analysis plays a critical role in the transition to a low-carbon economy because it helps businesses assess their readiness for climate-related risks. It examines and evaluates potential future scenarios of the world to assess the resilience of an entity’s strategy and business model to climate-related risks and opportunities, allowing companies to hypothetically quantify the effects of transition risks to entities across relevant time horizons based on the degree of policy and regulatory implementation and changes.

Furthermore, the analysis involves looking into the company’s greenhouse gas inventory and decarbonization strategy, and investigating its emissions based on the mix of energy consumption and the related costs. The analysis varies depending on the industry and business model, but its core purpose remains the same: to help companies anticipate how their financial performance, asset values and operations might change under different climate-related scenarios.

The benefits of scenario analysis extend beyond compliance. It helps businesses anticipate additional costs for nonrenewables, polish their decarbonization strategies and bolster the confidence of investors who are starting to factor sustainability and climate risk in their decision-making.

Companies that model their sustainability initiatives based on scenario analysis enhance their reputation, build resilience against unforeseen risks and gain a competitive edge in evolving markets. Furthermore, it ensures compliance with international standards such as the International Financial Reporting Standards, International Sustainability Standards Board and the Security and Exchange Commission’s Sustainability Report Form.

The transition to a low-carbon economy is no longer optional; it is a business imperative. With global markets fluxing toward a clean and sustainable future, companies that fail to adapt will face increasing risks. Philippine businesses must recognize their distinct vulnerability to climate change and take decisive and steady actions to prepare for the future. This is not just about their internal risk mitigation, but also the assurance of their resilience, the attraction of potential investments and their meaningful contribution to national and global sustainability goals.

The views and opinions are the author’s and do not necessarily represent the views of FINEX, Deloitte and BusinessWorld.

 

Jesus Ma. Lava III is the sustainability & emerging assurance leader at Landicho Abela & Co. (Deloitte Philippines), a member firm of the Deloitte network and also a FINEX member. This article was developed with significant contributions from Deloitte Philippines’ senior consultant Sebastian Carino, whose insights helped shape its content. For comments or questions, e-mail phcm@deloitte.com.

What employers can do in a dry job market?

We are a small cosmetics company in dire need of chemists. We can’t seem to attract applicants as major companies have cornered the job market. Even graduating students would want to work for multinationals that offer not only lucrative pay but sophisticated training programs. How do we compete with them? — Little Lamb.

You don’t compete with them in that same traditional space. Rather, you’ve got to create your context like marketers do with the Blue Ocean Strategy. That means creating untapped job markets with little or no competition where the “pie” is made bigger rather than fought over.

Your best approach is to make your competitors irrelevant in your quest for chemists. Focus on what your competitors are ignoring rather than fighting with them in their own game, which you may not be able to afford anyway.

But first things first. I suggest that you examine your current value as an organization. Why are you having difficulty hiring chemists? Do an honest-to-goodness self-evaluation. You may find out that money is not everything.

SELF-EVALUATION
To evaluate your organization, you can do many things with the help of an external management consultant, preferably those outside of your industry. Topping my list are the following programs, which you can do one after another, in the following sequence:

One is SWOT analysis. This is about understanding the company’s strengths, weaknesses, opportunities, and threats. You can do this in a two- to three-day weekend get-away with top management and lieutenants to participate in strategic planning, and corporate visioning, and to revisit the vision, mission, and value statements.

Two, recruitment analytics. How well do you understand the job applicants’ acceptance rate and their time-to-hire situations? In real terms, how many candidates would accept a job offer? Sometimes, it’s surprising that a low acceptance rate may point to issues like the candidate’s poor experience during the recruitment process, among other reasons.

Three, employee morale survey. This is an annual, structured tool used by organizations to measure the general mood and satisfaction level of their employees. It helps employers understand how people feel about their work, management, team dynamics, and culture. That’s how sophisticated applicants would want to gauge the emotional well-being of their current employees.

Four, employer branding. This refers to the reputation and image a company projects as an employer — both to current employees and to potential job candidates. It’s essentially how your company is perceived as a place to work and what makes it attractive or unattractive to job seekers. It answers one simple question — “Why would anyone want to work there?”

Five, competitor benchmarking. The goal is to identify gaps, discover best practices, and find opportunities for improvement to stay competitive in your industry. This is difficult to do, especially if you have nothing to offer in exchange for comparing your company’s performance, strategies, products, or practices against competitors.

OTHER OPTIONS
Are you sure you know what you’re doing? Be skeptical about your current policies and practices to discover what you’ve been ignoring or missing out. To do that, answer the following questions:

One is job requirements. What are the imperative skills of the job? What skills are optional? How about years of work experience? Would 10 years of experience be needed or optional? Why can’t five years of experience suffice? How about applicants from other industries?

Two, sourcing platforms. How well do you know of potential candidates outside of the job market? How about those people active in professional groups? What are the upsides and downsides of hiring highly visible candidates in industry associations? How effective are referral bonuses for current workers?

Three, pay and perks package. How competitive are your compensation policies when compared to those in the industry? How low is low in absolute terms? Can you offset this with strong non-monetary benefits like flexibility, independence, mission-driven work, and faster career growth? How about giving them a performance bonus and stock option plan?

Four, training and upskilling. Can you hire for the candidates’ potential, rather than their current skill and experience? How about establishing a management development program to train junior hires in exchange for their three-year employment? Can you do this program with a reputable educational institution?

Five, specialized recruiters. Can you outsource the hiring process to trustworthy manpower agencies that can reach out to hidden talent? How sophisticated are these agencies in processing job applicants to avoid mismatch? What are the reasons why it’s better to subcontract the hiring process to these agencies?

Six, management consultants. How about hiring special subcontractors to do the job? Are you willing to hire retired chemists, either as project workers or short-term consultants? How about exploring the idea of hiring subcontractors or external vendors with the same talent and skill?

Surely, you can attract talent with below-market pay, but only if you’re exceptional in other areas that matter to candidates. In other words, what’s your value proposition beyond money?

 

Bring Rey Elbo’s branded leadership program called Superior Subordinate Supervision to your organization. For details, e-mail elbonomics@gmail.com or DM him on Facebook, LinkedIn, X, or via https://reyelbo.com

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