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TMP: Tamaraw launch on track with 25% investment spent

PHILSTAR FILE PHOTO

TOYOTA MOTOR Philippines Corp. (TMP) has used 25% of the announced P5.5-billion investment for the production of its upcoming Tamaraw multipurpose vehicle, set to launch in the third quarter, the company’s chairman said.

“Rest assured, we’ve been preparing for the arrival of the Tamaraw, and by the time we launch it, the entire investment will have been expended,” TMP Chairman Alfred V. Ty told reporters on Tuesday.

 “We announced it in August last year, so it’s been about one year,” he added.

In December, Malacañang announced that TMP’s parent firm, Toyota Motor Corp., committed to investing an additional P1.1 billion on top of the P4.4-billion investment for the assembly of Tamaraw that was announced in August.

TMP has touted the next-gen Tamaraw as a utility vehicle that could be used for the businesses of micro, small, and medium enterprises (MSMEs) or as an ambulance, patrol car, and modernized jeepney.

“This is very much aligned with the program of government to expand manufacturing activity in the Philippines. It will create jobs, support local parts makers, and provide MSMEs with a viable and sustainable mobility solution for their business,” Mr. Ty said.

TMP was the market leader last year in terms of sales at 200,031 units, equivalent to a 46.5% market share, based on a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association.

The joint report showed that the country’s vehicle sales climbed by 22% in 2023 to 429,807 units compared to the 352,596 units sold in 2022, led by “sustained consumer demand, easier access to credit, and improved supply conditions across all brands.” — Revin Mikhael D. Ochave 

Philippines slips in tobacco industry influence rankings

The Philippines slipped four places to 50th out of 90 countries with a score of 60 (out of a possible 100) in the 2023 edition of the Global Tobacco Industry Interference Index (GTIII) by Global Center for Good Governance in Tobacco Control. The index ranks how governments in each countries are responding to tobacco industry interference and protecting their public health policies from commercial and vested interests. This was the country’s lowest ranking since the index started in 2019.

 

Philippines slips in tobacco industry influence rankings

My Economic Forecast for 2024 – 6.5%

ALEXES GERARD-UNSPLASH

In this column’s piece “Economic Forecast 2024” (Nov. 21, 2023), I presented a table showing the 2024 GDP growth forecast for the Philippines by the IMF’s World Economic Outlook (October 2023) which was 6.2%, the ADB’s Asian Development Outlook (September 2023) which was 6.2%, and Trading Economics (November 2023) which was 6.4%. 

Recently, the ASEAN+3 Macroeconomic Research Office (AMRO) projected that the Philippines’ GDP growth this year would be 6.3%. See BusinessWorld’s story “PHL to grow fastest in the region this year — AMRO” (Jan. 19, 2024).

For the latest in my “Economic Forecast 2024” series (the second part came out on Nov. 24, 2023), I have produced my own forecast for the 4th quarter (Q4) of 2023 — hence full year 2023 — then my predictions for 2024. For the sake of brevity, I have taken the GDP by expenditure or demand and set aside GDP by industrial origin or supply side.

GDP by demand is composed of Household Consumption expenditure (C), Capital formation or Investment (I), Government consumption expenditure (G), and net exports of goods and services (exports minus imports, X-M). In short: GDP = C + I + G + (X-M).

A forecast is only as good as the assumptions made. Mathematical and econometric models may be beautiful and sophisticated but if the assumptions are not realistic, then unrealistic numbers (positive or negative) will be generated.

I have made the following assumptions:

Household consumption (C), which is 73% of GDP, would grow in both 2023 Q4 and all of 2024 due to high consumer confidence. There are two reasons for this: when it comes to electricity demand, data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed that average demand was 10,444 megawatts (MW) in Q4 2022 and 13,107 MW in Q4 2023, or a big 25.5% increase year on year (yoy).

In addition, vehicle sales data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) showed that total vehicle sales in 2023 reached 429,807 vs. 352,596 units sold in 2022, a big 21.9% increase yoy. See the report in BusinessWorld, “Vehicle sales surpass target in 2023” (Jan. 18, 2024).

Investment (I) is 23% of GDP. Foreign direct investment (FDI) and portfolio investment could tank but domestic investment would make up the gap. As reported in BusinessWorld, net FDI from Jan.-Oct. 2022 was $7.92 billion, and Jan.-Oct. 2023 it was $6.53 billion, a contraction of 17.5% yoy. Net foreign portfolio investment from Jan.-Nov. 2022 was $793.8 million, then contracted in Jan.-Nov. 2023 to $42.1 million.

But the decline in unemployment from 6.5% in November 2021 to 4.2% in November 2022, and 3.6% in November 2023 is a clear case that domestic investment is taking the weight when it comes to job creation.

Investments this year are projected to be high mainly due to the operation of the Maharlika Investment Fund and the attraction of more investments from other countries’ sovereign wealth funds and investment funds. I see about 5.5% growth over the 2023 level.

Government consumption (G) is 14% of GDP. It would keep a modest growth of around 2% yoy. Budget Secretary Amenah F. Pangandaman argued that “government needs to balance the gains from productive public spending especially infrastructure and safety net spending like Protective Services of Individuals and Families in Difficult Circumstances (PSIFDC) vs. the pains of heavy borrowings and high interest payment plus the need for higher taxation to retire those debt in the long-term.” That is a good and practical balancing act there, Madam Secretary. Thank you.

Exports of goods and services (X) would have minimal growth because of two things: merchandise or goods exports at $73.2 billion in Jan.-Nov. 2022 declined to only $67 billion in Jan.-Nov. 2023, a -8.4% change yoy. Meanwhile, OFW remittances from Jan.-Nov. 2022 of $29.4 billion increased slightly to $30.2 billion in Jan.-Nov. 2023, or growth of 2.8%.

Imports of goods and services (M) would have modest growth of around 3%. Merchandise or goods imports in Jan.-Nov. 2022 of $126.9 billion declined slightly in Jan.-Nov. 2023 to $116 billion. The net exports (X-M) is -10% of GDP.

The Top 5 export markets of the Philippines are the US, Japan, China, Hong Kong, and South Korea — they buy 61% of total Philippine merchandise exports. And all of them are experiencing economic hardships. Their growth performance in Q1-Q3 2022 and Q1-Q3 2023 respectively were: the US, 2.1% and 2.4%; Japan, 1% and 2.1%; China, 3% and 5.2%; Hong Kong, -3.5% and 2.8%; and, South Korea, 2.6% and 1.1%.

Such modest growth by our major trading partners is not conducive to the expansion of our exports. Luckily our neighbors in the ASEAN — like Indonesia, Malaysia, and Vietnam — are growing somewhat faster and they may purchase more of our excess exports.

The accompanying table shows the numerical results of these assumptions.

The Philippine Statistics Authority (PSA) will release the 2023 Q4 GDP data on Jan. 31. I will write about it and compare how the numbers in this exercise would fit or diverge from the actual performance of the Philippines economy.

Nonetheless, we should remain optimistic about the state of the country’s economy and business. The economic team remains intact despite the change in leadership at the Finance department. The new Finance Secretary, Ralph Recto, has the economics training, business partners, and a political network to advance market-oriented reforms.

 

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

minimalgovernment@gmail.com

Financier entrusted with Middle East billions eyes comeback

THE INDIAN-BORN financier who helped open the floodgates to Middle Eastern wealth for Masayoshi Son’s $100-billion Vision Fund is attempting his second act. This time, he’s going solo.

At SoftBank Group Corp.’s splashy tech vehicle, Rajeev Misra helped secure commitments worth $45 billion from Saudi Arabia’s Public Investment Fund (PIF) and $15 billion from Abu Dhabi’s Mubadala Investment Co. Investments in high-flying startups ensued — Uber Technologies, Inc. and WeWork, Inc. among them — but many bets blew up as markets turned. Misra largely stepped back from that venture in 2022 after a tenure marred by internal clashes and investment writedowns.

Undeterred by those losses, Mr. Misra’s now attempting a comeback — this time in credit. He’s even leaning on the same Middle Eastern network to raise money. It’s a gamble that has shades of the kind of chutzpah he and Son displayed last time round, though Mr. Misra now says he’s determined to do better after watching the investment mistakes made in the aftermath of SoftBank’s scramble to hire people.

“I have learned my lessons,” Mr. Misra, 62, said in an interview with Bloomberg News. He’s already raised $6.8 billion for his One Investment Management (OneIM) from backers including Mubadala and Sheikh Tahnoon bin Zayed Al Nahyan’s Royal Group. Mr. Misra is seeking to boost the size of the fund to more than $10 billion, and hopes to get Saudi Arabia to invest as well.

While he’s vowing to deploy clients’ cash with a dose of caution, it’s an endeavor that will come with its own set of risks, particularly given his past history with Middle Eastern money. A global economy slammed by two wars and other geopolitical upheaval could once again bring market turbulence. And even Mr. Misra acknowledges there are limits to the region’s largess. “Endless well, bottomless pit? There is no such thing,” he said. “If you lose money, that pit is closed.”

UAE PASSPORT
Regardless of whether Mr. Misra succeeds or fails, it’s undeniable that he’s a rare outsider to be entrusted with the Middle East’s billions, reflecting astute maneuvering and an ability to maintain key relationships despite the blow-ups at the Vision Fund. He also stands out as one of few investors who’ve deftly sidestepped the economic rivalry between the United Arab Emirates and Saudi Arabia, drawing money from both sides.

The clearest sign of his relationship with Abu Dhabi’s ruling family is his UAE passport — one of the world’s most powerful travel documents and handed out to a very select group of foreigners. Mr. Misra travels to the region at least six times a year, staying at the swanky Four Seasons Hotel in Abu Dhabi and, in Riyadh, at the Ritz-Carlton — the site of Crown Prince Mohammed bin Salman’s 2017 crackdown.

Home to sovereign wealth funds that control over $4 trillion in assets, the Middle East is central to Mr. Misra’s plans. Five of the ten most active state-backed entities in 2023 were from the Gulf, even as global peers pulled back — the PIF alone spent $31.6 billion.

During the down years of Vision Fund, Mr. Misra kept in touch with its Middle Eastern backers and, over in-person meetings, appraised them about the status of investments. This, along with efforts to maximize their returns, helped him to retain their trust even when many bets by Vision Fund soured.

VISION FUND
The Vision Fund was unveiled shortly after SoftBank’s Mr. Son had pulled off what was until then his biggest bet — the $32-billion acquisition of chipmaker ARM Holdings Plc.

“Masayoshi Son told me, ‘Rajeev, the next revolution is coming, AI. I need to invest, and we need to raise money,’” Misra said. That conversation, in mid-2016, was mere months before the Vision Fund launched.

The financier’s relationship with the Japanese executive dates back to the early 2000s. At Deutsche Bank AG, he helped Son finance the largest leveraged buyout in Asia at the time — the 2006 purchase of Vodafone Group Plc’s Japanese wireless business. At SoftBank, Mr. Misra was the architect of a loan package that helped Sprint Corp. — the US carrier Mr. Son acquired in 2012 — stave off bankruptcy.

Those deals earned Mr. Son’s trust, propelling Mr. Misra to the top echelons of SoftBank and placing him at the heart of Vision Fund’s origin story. “We put together a small presentation, and went to Qatar, Abu Dhabi and Saudi Arabia,” he recounts.

“We’ve never managed any money, we don’t have any people and he wanted to raise $100 billion,” Mr. Misra said.

The PIF committed $45 billion over the course of a 45-minute meeting — attended by the crown prince and set up by the fund’s Governor Yasir Al Rumayyan. Abu Dhabi came in with a $15 billion pledge of its own.

“Then we scrambled to hire people ,” Misra said. The investment decisions that followed culminated in a markdown of more than $16 billion for the first Vision Fund in the year to March 2023.

The fund has now returned almost 70% of the money raised to investors and even at a conservative valuation, is worth 1.2 times the capital raised, according to data provided by SoftBank. A similar investment in the S&P 500 Index would have doubled in value during the period.

Mr. Misra says he no longer has an active role in the Vision Fund, though he’s still on the investment committee. He’s also involved in employee compensation and in ensuring maximum returns for the fund’s limited partners, the largest being PIF and Mubadala. He considers his stint the best education he could have received in investing.

He says he’s still close with Son, but acknowledges they met just twice last year and mostly catch up on the phone.

ONEIM
Part of the reason for his decision to step back from the Japanese vehicle, Misra says, was to avoid a conflict of interest as he started to chart out his next act. The new venture will deploy capital across asset classes amid turmoil in markets around the world, focusing on credit — an asset manager that goes beyond investing in the technology sector. 

Mr. Misra was born in 1962 in the Indian city of Jamshedpur, named for the founder of Tata Group, where his father worked at the time. He studied at the prestigious Indian Institute of Technology in Delhi before transferring to the University of Pennsylvania. From there, armed with an MBA from MIT’s Sloan School of Management, he embarked on a career that took him from Merrill Lynch and Deutsche Bank to UBS — and briefly Fortress Investment Group, which was acquired by SoftBank.

He still spends a few weeks every year in his sprawling villa on a four-acre plot close to the heart of New Delhi — a city where his family was once forced to rent a single room on a rooftop amid a cash crunch after his father unexpectedly died of a cardiac arrest.

Mr. Misra started to build his Middle Eastern connections in 2013, sensing an opportunity in a pocket of wealth that was a black box to many investors. Gulf state-backed funds didn’t have a major foreign presence at the time.

He quickly understood the importance of face time with the key people to get access to the large checks, and started to make frequent trips to the region. Over time, he’s strung together a Rolodex that includes the PIF’s Rumayyan, with whom he’s often spotted at the kingdom’s annual flagship Future Investment Initiative.

In Abu Dhabi, Misra works closely with the inner circle of Sheikh Tahnoon, who’s at the helm of a $1.5-trillion empire. His key contacts in the UAE capital include Syed Basar Shueb, chief executive officer of the $246-billion International Holding Co; Sofia Lasky, a prominent executive who sits on the boards of multiple local companies; and Peng Xiao, CEO of G42 — a firm that’s at the heart of Sheikh Tahnoon’s push into AI.

At his new fund, Mr. Misra is eyeing returns of 20%, acknowledging the days of 30% returns on large pools of capital may be over. He believes credit has at least another year to play out and may look to foray into private equity after that, pledging  to take fewer risks this time around. That’s a break from the past when the Vision Fund injected billions into a range of startups at soaring valuations and shook up the venture capital industry.

OneIM is low key by those standards. A website set up recently has few details on operations or investments. Mr. Misra plans to keep it that way, while his handpicked team of 25 investment professionals — led by trusted long-time lieutenants Munish Varma and Yanni Pipilis, both of whom worked with him at Deutsche Bank and Vision Fund — scour for opportunities primarily in US and Europe.

Last year, it provided loans to WeWork, according to securities filings by the now-bankrupt office company. It’s also supported Apollo Global Management, Inc.’s leveraged buyout of Wagamama owner The Restaurant Group Plc, Bloomberg News reported this month.

In another departure from what he’s described as a chaotic approach at his previous job, OneIM has invested only $1 billion of the $7 billion it’s raised so far, Mr. Misra said. Once alliances, platforms, and a bigger team are in place, deploying capital faster is going to be easy, he said. “You can’t force me to deploy faster unless odds are in my favor.”

When asked about his career trajectory and what the future may hold, Misra quotes from an astrologer that his family has consulted for decades.

“It will go upwards and upwards,” he says with a smile. — Bloomberg

Netflix to stream WWE Raw in $5-billion bet on live events

NETFLIX took a big step into live events on Tuesday with a more than $5-billion rights deal that would make it the exclusive home of World Wrestling Entertainment’s (WWE) Raw from January 2025.

The 10-year partnership will put Raw on the streaming platform in the US, Canada, Britain ,and Latin America, among other territories, the companies said.

Netflix will also exclusively telecast outside the US all WWE shows and specials, including SmackDown, as well as pay-per-view live events such as WrestleMania and Royal Rumble.

News of the deal sent shares of TKO Group Holdings, the parent firm of WWE, up 21% in early trading. Shares of Netflix were flat.

The streaming pioneer has an option to extend the deal for another 10 years or to opt out after the initial five years.

Netflix began experimenting with live events last year, with comedian Chris Rock’s stand-up special, Selective Outrage. It also has found success with sports-related programming, such as its Formula 1 racing documentary series, Drive to Survive, and the behind-the-scenes golf documentary series, Full Swing.

In October, it hosted its first live sports event, The Netflix Cup, featuring athletes from Drive to Survive and Full Swing.

The company’s third-quarter investor letter hinted there might be more to come — signaling an evolution from CEO Ted Sarandos’ long held position that Netflix was “in the sports business,” focused on the drama of sport, but not live games.

“As we work to develop the best programming mix for our members, we’re also having great success with our sports shoulder programming, making Netflix the go-to place for anyone excited by the drama of sport,” the company said in its third-quarter note. “It’s another area where we can deliver enormous value for our members as well as rights holders and talent.”

Mark Shapiro, president of TKO, told Reuters that Netflix “threaded the needle perfectly,” by offering live sports programming that “comes with a spine of entertainment.”

The Raw deal marks Netflix’s first long-term bet on live events that appeal to a loyal, multi-generational base of fans who turn to WWE each week for bouts between the likes of CM Punk and Cody Rhodes. Unlike other professional sports, the competition is year-round and not seasonal.

Shapiro hailed the deal as “transformative,” adding that it expands the reach of WWE and brings appointment viewing to Netflix.

“We cracked the code with Netflix,” Shapiro said. “We’re now a neighbor of the best premium programming slate you’re going to find in the universe of content.”

Raw, which airs on Mondays, is the top show on the Comcast-owned USA Network, where it brings in 17.5 million unique viewers over the course of the year. It debuted in 1993 and has 1,600 episodes.

It reliably draws an audience — something Netflix will find valuable, as it builds its ad-supported streaming service, known in industry parlance as AVOD.

“This will be a monster impact player for their AVOD platform,” said Shapiro.

The deal with Comcast ends this year and Raw was paid about $265 million a year for the rights under the agreement, according to Bloomberg News.

WWE merged with Endeavor Group’s UFC to form TKO Group Holdings in a deal valued at $21 billion last year, forming one of the biggest names in wrestling and entertainment. — Reuters

Is precise personalization killing firms’ creativity?

By Liz Adeniji

DATA-DRIVEN ersonalization has evolved to become a critical tool in the marketer’s arsenal over the years. But with personalized approaches emerging as a standard marketing practice in organizations across the Philippines, including the use of customer data platforms (CDPs), one question arises: is precise personalization stifling creativity?

When online portals like AOL and Yahoo dominated the internet in the early 2000s, advertising predominantly relied on content and context. AltaVista, Yahoo Search, and Ask Jeeves were the big giants of search engine advertising at that time, and they pioneered data-driven approaches into the advertising landscape. Google Search eventually became the dominant player that served as a poster child for the emerging category of data-driven advertising.

When the 2008 global financial crisis hit, marketing budgets were cut, and marketers increasingly turned to data to guide their advertising decisions. This period witnessed the rise of ad networks and more applications of behavioral and demographic targeting in display ad buying. Programmatic advertising eventually displaced ad networks, offering superior transparency, flexibility, and audience-based targeting that ad networks struggled to match.

DRIVING RESULTS, MITIGATING RISKS
Today, as the Philippines is impacted by inflationary pressures, streamlining workflows through data-driven marketing is even more critical for businesses, effectively optimizing budgets beyond just tightening their belts. With data-driven personalization, companies can target specific audiences on a 1:1 basis with precision. This allows product teams to deploy better products that their customers actually want. At the same time, precise personalization empowers contact center agents to resolve cases faster while delivering enhanced customer experiences and preserving customer loyalty.

Done right, personalization also allows companies to target customers with relevant content without compromising their privacy, amid regulations like the Data Privacy Act of 2012 (DPA) obligating businesses to safeguard their customers’ data privacy.

Imagine a scenario where a customer has just opted out of being targeted. Excluding this individual immediately from ad retargeting campaigns, removing them from all e-mail distribution lists, and suppressing them from seeing social media ads becomes critical. However, the reality is that not many companies can confidently claim to possess such capabilities today.

Harnessing “good data” for personalization at scale produces outstanding outcomes. For example, Zalora, a prominent direct-to-consumer online fashion retailer in Asia, turned to an innovative solution to standardize its data collection, achieve a complete view of its customer base, and experiment faster. With a customer data infrastructure in place, Zalora doubled its conversion rates by activating real-time data to enable segmentation and target its highest-value customers in a personalized way.

KEEPING IT CLASSY, NOT CREEPY
Putting the threat of punishment aside, it is absolutely clear that the largest and most profitable companies in the world are now data-driven and lead with personalization. A prime example is Amazon, which uses data to create highly relevant and personalized experiences. Amazon understands that personalization is key to keeping customers engaged and coming back for more.

However, there is a fine line between precise personalization and — simply put — being creepy. Most consumers have experienced a scenario where a product they’ve browsed online persistently trailed them across the internet, lingering long after leaving the retailer’s website. When personalization becomes annoying, brands not only risk wasting marketing dollars but also alienating current and prospective customers.

Personalization and creativity can certainly coexist. Personalization can enhance creativity by allowing brand marketers to create more targeted and relevant content. Like clothing retailer ZALORA, brands can use data to understand a customer’s preferences and create personalized product recommendations or offers that resonate with them.

Meanwhile, it’s important to note that some of the most iconic consumer brands were built on brand advocacy and brand love. “Just Do It” and “It’s Finger Lickin’ Good” are slogans from iconic brands that need no introduction. Consumers know exactly who they are, and it isn’t because they use great data for targeting or personalizing website experiences. In fact, most of these consumer brands have little customer data.

That said, these brands also understand the power of data. That is why data clean rooms as a category has emerged to help brands with little first-party data, gain deeper insight into their audience by data co-sharing with other brands.

Ultimately, personalization is essential for businesses to remain competitive, especially during times of economic uncertainty. The focus on cost savings, the drive for profitability, and the need for privacy compliance have made personalization a must-have tool for advertisers. The reality is that personalization and creativity can coexist; in their intersection lies innovation. Personalization, when combined with creativity, creates magical customer experiences that lead to brand favorability, loyalty, and profitability.

 

Liz Adeniji is the regional vice-president of Segment, Asia Pacific & Japan at Twilio.

Review: Redmi Note 13 for users on a budget

XIAOMI’S latest Redmi Note 13 smartphone series launched last week caters to heavy social media users on a budget who use their smartphone camera often.

The Redmi Note 13 base model is priced at just P9,999 and features a 108-megapixel (MP) main camera, an 8MP ultrawide lens and a 2MP macro camera. The phone also has a 16MP front camera.

The new phone’s main camera is an upgrade from the Redmi Note 12’s 50MP main lens, as well as the 13MP front lens of the previous iteration.

BusinessWorld was provided by Xiaomi with a unit of the Redmi Note 13 for this review.

Photos taken in natural light with the Redmi Note 13’s rear cameras are sharp enough for social media posts and punch well above the phone’s low price point, even when using zoom.

Still, as with most mid-range phones, the camera does struggle a bit in low-light situations, as well as video stability and focusing. Image processing for portraits is sometimes a tad too noticeable, but this can be adjusted in the settings.

The Redmi Note 13 features a 6.67-inch AMOLED display with a 2400×1080 resolution and 120Hz or 60Hz refresh rate options.

The screen’s colors are vibrant, and the display runs smoother at 120Hz versus at 60Hz, especially in terms of transitions and when multitasking. However, battery life will take a hit when using 120Hz, with some apps loading slower at the higher refresh rate when the phone’s charge runs low.

Speaking of the battery, the Redmi Note 13 has a typical battery life of 5,000mAh that supports 33-watt fast charging, making it a good choice for those who need to charge their devices as quickly as possible. With typical use, the battery has enough juice for about a whole day.

As for build quality, the Redmi Note 13 features a matte side housing and a glass back, giving the phone a premium feel. The phone is also easy to hold and use.

However, in terms of audio, the phone’s built-in speakers are a bit lacking. Thankfully, it comes with a headphone jack.

The lack of support for 5G could also be a deal-breaker for some, although 4G is reasonable for the low price point.

The phone also features a new in-screen fingerprint sensor, compared to its predecessor that only had a side fingerprint sensor. This is also a faster and more efficient option for unlocking your phone versus the AI face recognition option. — AMCS

Companies told to boost sustainability efforts

BUSINESSES must play a bigger role in sustainability efforts to address challenges like climate change and rising inequality, Ayala Land, Inc. (ALI) Executive Director Mariana Beatriz Zobel de Ayala said.

Businesses should focus on sustainability, diversity, and digitalization as drivers for transformation, Ms. Zobel also said in her keynote speech at the Financial Executives Institute of the Philippines’ (FINEX) inaugural meeting and induction ceremony in Makati City on Wednesday.

“A focus on these three areas have been incredible catalysts for change and continue to shape the way we look at business today,” she said.

 “The role of business in the climate action agenda thus cannot be understated and will require transformation in order to reimagine how we can mitigate our environmental impacts,” she added.

For his part, FINEX President and ALI CFO Augusto D. Bengzon advocated for finance executives to integrate environmental, social, and corporate governance metrics into financial assessments, fostering a culture of environmental responsibility.

“Including sustainability in our business practices and strategies not only protects our environment for future generations but also positions our companies for resilience and long-term growth,” he said.

In terms of diversity, Ms. Zobel acknowledged the current underrepresentation of marginalized groups in leadership roles, emphasizing the value of unique perspectives in organizational success.

“I believe that the roles we play in our individual lives, families, and communities contribute so much to our worldview and perspectives… Bringing those unique perspectives and experiences to our organizations… will yield tremendous results and hopefully new ways of looking at things,” she said.

Mr. Bengzon said that diversity is important in stimulating creativity and innovation within business and finance teams.

“Recognizing the importance of diversity acts as a catalyst for innovation and untapped potential,” he added.  

On digitalization, Ms. Zobel pointed out Ayala Group’s adaptation to the digital landscape through subsidiaries like ALI and Bank of the Philippine Islands.

“The work we do at ALI now requires a similar sense of reimagination, bringing our resorts and hotels up to global standards and fulfilling the promise of the Philippines as a top travel destination,” she said.

For his part, Mr. Bengzon stressed the importance of digitalization not only for business growth but also for ensuring the survival and relevance of companies in challenging times.

“As finance executives, we are responsible for navigating our organizations through these challenging times. It is incumbent that we collectively harness the power of sustainability, diversity, and digitalization to chart a course toward a future marked by growth and collective prosperity,” he said. — Revin Mikhael D. Ochave 

Pru Life introduces new whole-life participating plan

PRU LIFE Insurance Corporation of UK (Pru Life UK) has launched a new whole-life participating plan.

“Tailored to meet the diverse needs of Filipinos at every stage of life, PRULove for Life is an ideal plan for families with children as young as newborns and individuals up to the age of 60,” the company said in a statement on Wednesday.

PRULove for Life is available for as low as P87 daily, with flexible payment structures ranging from five, 10, 15, or 20 years and coverage up to age 100.

Those who avail of PRULove for Life are assured of a minimum sum of P500,000, subject to a minimum annual premium of P12,000, Pru Life UK said on its website.

Customers can also access cash values and non-guaranteed dividends as living benefits. They are also guaranteed a death benefit equal to the sum assured plus accumulated dividends, less any outstanding policy loan if the death occurs before the policy maturity.

Pru Life UK’s premium income stood at P11.88 billion in the first quarter of 2023, data from the Insurance Commission showed. Its net income was at P645.93 million in the period. — AMCS

Penitential rites

ALLEKSANA-PEXELS

WILL a motorcycle driver swerving in and out of road lanes, then bumping against a car staying in its own place, ever admit fault? (Sorry po. It’s my fault. I was on the wrong lane and overtaking from the wrong side?) Can a goldfish bite into a double-patty burger?

Admitting fault is seldom an automatic impulse. There is no error key in the human brain that is easily activated. After some human failing, the first thought that comes to mind before admitting guilt involves thinking of an excuse or hoping nobody is paying attention.

Admission of guilt, like unwittingly spreading fake news about seniors being exempt from the numbers coding scheme for traffic control, is a last resort. A series of moves are taken to postpone a voluntary declaration of wrongdoing or incompetence.

The immediate reaction to making a mistake or causing unexpected damage to others, is a cover-up, which in PR lingo is called “damage control.” Everyone makes mistakes and may be forgiven for them. But often they need to be forced to admit the error of their ways.

Both traditional and social media (including Viber groups) receive letters or posts pointing to mistakes like misidentifying a person in a photo or attaching a wrong (often lower) title of Vice-President for a newly promoted (just yesterday) Senior Vice-President. Correction is found in a section called “erratum” or errata, for plural mistakes — wrong middle name and old title. Even here admission of a mistake is late and posted in an obscure page — some pesky busybody pointed to the inaccuracy of her title in our last post. (She is now with another company.)

To avoid penitential rites, dilatory tactics are employed.

Let’s form a task force to see what really happened. We must find individuals not involved in this mess (and not serving in the legislature) willing to serve in a high-profile investigation which is not time-bound. There is really no hurry in resolving this matter as higher priorities like a food shortage and WPS skirmishes are more important.

We are still finding out what happened in this matter. Of course, you saw her on TV walking out on the budgetary hearings. She had to go to the ladies’ room for a quick application of rouge on her burning cheeks. Some mud slingers will see this as an arrogant attempt to belittle the oversight efforts on her activities. It needs to be put in the proper context of lavatory urges.

A spokesperson can be appointed, preferably one who is not involved in the controversy — he was in Mexico when this thing broke out and is still gathering the facts. As soon as he is ready to meet with the media, he will call a press conference. (Don’t hold your breath.)

Such delaying tactics are aimed at blurring the admission of any fault. The hope is that the public will forget about the whole matter and move on to a new crisis. There’s always one around the corner waiting to distract everyone from his current preoccupation. Earthquakes and the attack on innocents in other countries are usually given some attention.

As the entanglements multiply and the story falls apart, some sort of confession becomes inevitable. There is no clear embrace of the accusation. This was just an internal memo and not intended for public consumption. A subordinate acted on her own and tried to protect the principal from the vicious press. She thought that would help defuse the crisis, but it did the opposite.

Penitential rites (Bless me Father for I have sinned) seem to be limited to religious practice, complete with its seal of confession. Making a clean breast of things leads to its own complications. Even a private admission to a friend may eventually find its way to social media — this was told in confidence, mind you.

Isn’t it simpler to go immediately for an admission of fault? Not really, especially if the deed is criminal and involves possible legal sanction. Unlike the errata pieces in the media, most corrections go beyond a misspelled name, a wrongly identified person in a photograph, or an inaccurate quotation.

Admission of guilt has its risks, especially when an action or statement resulted in some irreparable damage… that it may have intended to inflict in the first place.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

General Retail Price Index in the National Capital Region

RETAIL price growth in Metro Manila was 2.9% year on year in December, unchanged from a month earlier, the Philippine Statistics Authority (PSA) said on Wednesday. Read the full story.

 

General Retail Price Index in the National Capital Region

Man arrested twice within a few days near New York home of Taylor Swift

TAYLOR SWIFT

NEW YORK — A Seattle man was arrested twice in the span of a few days outside the New York City home of musician Taylor Swift, the second time on stalking and harassment charges, police and local media reported on Tuesday.

The New York Police Department said it responded to a 911 call on Saturday that David Crowe, 33, was trying to open the door of a building on a street in the Manhattan neighborhood of Tribeca where Ms. Swift, 34, has an apartment. He was trying to open the door of Ms. Swift’s home and was reported to police by a member of Ms. Swift’s security team, ABC News reported, which police were unable to confirm.

He was arrested on an outstanding warrant from 2017, police said.

Police on Monday evening again found Mr. Crowe near the building after receiving reports that he was harassing multiple people in the street and acting “erratically.” He did not attempt to enter the building, but was asking people if they knew that Ms. Swift lived there and had been scouring the neighborhood for several weeks, the New York Post reported.

He was again arrested, this time on multiple charges of stalking and harassment, police said, and remained in police custody on Tuesday. Crowe could not be reached for comment, and it was unclear whether he was represented by a lawyer.

Ms. Swift, who came out of the Nashville country music scene to become one of the most successful performers in the United States, has repeatedly been harassed by stalkers over the years. A spokesperson for Ms. Swift did not immediately respond to questions on Tuesday.

Ms. Swift wrote in an Elle magazine article in 2019 about the frightening nature of stalkers, and said she carries around army-grade bandage dressing designed for gunshot or stab wounds.

“Websites and tabloids have taken it upon themselves to post every home address I’ve ever had online,” she wrote. “You get enough stalkers trying to break into your house and you kind of start prepping for bad things.” — Reuters