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AI use ‘mostly positive’ despite decline in IT-BPM staffing levels

WANGXINA-FREEPIK

THE Information Technology & Business Process Management (IT-BPM) industry reported the increased use of artificial intelligence (AI), describing the development as “mostly positive” while acknowledging that worker numbers fell in some companies.

According to Jack Madrid, chief executive officer and president of the IT and Business Process Association of the Philippines (IBPAP), “The impact of AI on operations has been mostly positive, with companies reporting improvements in productivity, operational efficiency, service quality, and revenue generation.”

In a speech at the 16th International IT-BPM Summit 2024 Wednesday, Mr. Madrid said, however, that 8% of the members surveyed reduced their workforce because of AI.

“Let’s not kid ourselves. Some jobs will change and will be lost — repetitive routine tasks like data entry and basic customer inquiries,” he said.

On the whole, he added, AI is here to stay but it is not yet negatively impacting the industry.

Mr. Madrid said jobs have not been affected for most members, “with one-fourth saying jobs have changed, and another fourth saying that heavy upskilling is still going to be a requirement.”

“We’re going to come close to two million (in staffing) next year. So, let’s all work on our skills so we touch two million in 2025,” he said.

Along with the $38 billion revenue target, the industry is projecting 1.82 million employees by the end of 2024, up 7%.

Some 67% of the members surveyed are already using AI in customer service, data entry, and quality assurance, though challenges persist.

These include cost of implementation, integration with legacy systems, data privacy, and the lack of talent.

“Whether you know how to prompt or not, you also have to understand your data… At the same time, when you want to do deeper integration, you need people with AI engineering, IT, software engineering. These become more in demand as you integrate AI,” Dominic Vincent D. Ligot, head of AI and research at IBPAP told BusinessWorld.

“We don’t have a labor pool that can train the future AI users. I think… we need to beef up the teacher pool. Your multiplier effect (depends on it) if you want to do gen AI,” he said.

Mr. Ligot said the 8% of members reporting staffing declines represent “the first indication that people are getting displaced by AI.”

“In terms of the actual numbers, we’ll only know over time. But I think that factors into the tapering of the growth rate,” he said.

“Going into 2026, the expectation is for that growth rate to continue to taper. Although we’re continuing to grow, percentage wise, the growth rate is going to be more modest,” Mr. Ligot added.

He also said that workers should always be on the lookout for new skills, adding that AI automates tasks, not jobs. — Aubrey Rose A. Inosante

An indelible mark on Filipino horror

By Brontë H. Lacsamana, Reporter

Movie Review
Shake, Rattle, & Roll 1
Glorietta 3

THE importance of programs like Sine Singkwenta cannot be stressed enough. Done in partnership with SM Cinema, Robinsons Movieworld, and Ayala Malls Cinema, with tickets priced at just P50, the Film Development Council of the Philippines (FDCP) has brought back to theaters a plethora of restored films that had successful runs at the Metro Manila Film Festival (MMFF).

Though Sine Singkwenta has had many iterations, the latest one showing 50 films from past MMFFs, was a testament to just how easily good films can be lost to time. Anecdotally, BusinessWorld observed how the majority who went to the cinemas to watch these old films and who later posted about them online, were young audience members.

Screenings at Glorietta 3 of the first installment of the Shake, Rattle, & Roll (SRR) franchise, released in 1984, were attended by people in their 30s and younger. The only exception was an older woman, seemingly there because P50 for a film was an affordable treat for her and her granddaughter. (“Horror ba ito, lola? Astig!” exclaimed the girl, who looked 11 at most. Surprisingly, the first SRR was rated G!)

The format of these SRR films is that there are three shorts put together in an anthology. The first edition’s stories were Baso, Pridyider, and Manananggal. This writer, having only seen snippets of these online through YouTube, found that the atmosphere of a theater did wonders for the classic anthology.

Watched with other people, the distinct flavor of horror-comedy that the SRR franchise is now known for came to life despite a 40-year gap in film technology and moviegoers’ tastes. The audience often erupted in laughter (thanks to odd, dated dialogue that feels distinctly 1980s but entertained us nonetheless) and experienced little frights galore from the campiest, most unhinged moments.

Baso was the weak link in the set, its generations-long love story providing a lull from the ghostly ouija board encounter in the opening scene. Its conclusion, built up carefully from the drama of its three leads’ historical counterparts, comes to a head in a big way.

Pridyider is in a class of its own, usually included in lists of the best of the best horror shorts that SRR has produced. Directed by Ishmael Bernal, the brief moments of sexual overtones and body horror make it memorable and innovative, singlehandedly scaring a generation of Filipinos away from visiting the refrigerator at night. More psychosexual flares and gory flashes would have been freaky and fun; regardless, it is considered one of the most iconic segments in this franchise.

Manananggal by Peque Gallaga is the one that induces most terror. Its visual effects hold up, and the probinsya setting, with the small hut amid the lush jungle, makes an impact. The titular mythical creature and the religious combat that takes place to ward it off really reflect Philippine culture.

All in all, old films being brought back to theaters at an affordable price for young audiences to appreciate is a worthwhile initiative. It was fun to hear gasps during Pridyider when the beautiful, postwar modern bungalow they were living in was revealed to have been purchased for P1,500 (although it did contain a haunted refrigerator) and when one character used P50 to buy monay and a liter of Coca-Cola at the sari-sari store.

Sadly, the deterioration of the original film copies is evident in some of the segments. The ABS-CBN Film Archives, which handled the restoration, said in a post on Facebook that “heavy fungus in the print” in Baso led to one scene appearing warped, while “a portion at the end of Pridyider is no longer available in the surviving print.”

This is a loss for viewers, who now have to go to the Wikipedia page to find out what happened at the second segment’s ending. Its current condition has it abruptly end without ever finding out what happened to the family who move out of the haunted house.

With film archives now catching up with all the years that studios wasted, letting film reels and prints rot in subpar storage conditions, hopefully more of these classics that left a mark in Philippine film culture can be revived for newer audiences to discover. The good news is, the efforts are there, the clamor is there. Sine Singkwenta is proof of it.

The 50 MMFF films are now showing until Oct. 8 at select cinemas in Northern, Central, and Southern Luzon, and from Oct. 9 to 15 at select cinemas in the Visayas and Mindanao.

EastWest Bank expects strong credit card loan growth

PHILSTAR FILE PHOTO

EAST WEST Banking Corp. (EastWest Bank) expects its credit card loans to grow by 34% to 36% this year as it continues to grow its consumer segment, an official said on Wednesday.

“Our credit card products may be the third-largest loan product that we have. We expect it to continue to be a big contributor to our overall lending suite of products,” EastWest Bank Consumer Lending Head Lawrence L. Lee told reporters on the sidelines of an event.

“I think last year the industry grew almost 30%. I think we’re at pace to also grow 30% again this year,” Mr. Lee added.

EastWest Bank Credit Cards Head Mia P. Tamayo said the bank already hit its end-2024 target to have 1.4 million cardholders as of September.

Mr. Lee said the bank wants credit card loans to make up a bigger part of its loan book, with the current share at just about 20%.

“We’re planning to grow it. It will probably be a higher contributor to the overall amount,” he added.

EastWest Bank has also seen healthy credit card loan repayments, with nonperforming loans lower than industry levels, Mr. Lee said.

“I think the challenge with the credit cards business is if you have healthy ratios in terms of risk, the profitability is lower also. It’s a high-risk, high-reward, low-risk, low-reward business.”

The Philippines’ robust, consumption-driven economic growth will support the credit card industry’s expansion this year, Mr. Lee said.

“After the pandemic, there was revenge spending and revenge travel. There was an expectation that things will taper off, but I think people are still spending. Overall, our economy is doing okay. We’re growing as per the expectation of the government. So, I think the expectation is to continue to be robust.”

Ms. Tamayo added that the country’s favorable demographics and the central bank’s push for financial education and cashless payments will also drive the card industry’s growth.

“We have a very young market, and as we get more and more financially educated, we are moving — and even the BSP (Bangko Sentral ng Pilipinas) supports this — from a cash-induced transaction society to cashless because there’s a lot of value in it,” she said.

EastWest Bank saw its net income rise by 3.69% year on year to P1.79 billion in the second quarter.

Its shares closed at P9.75 apiece on Thursday, down by seven centavos or 0.71% from the previous day’s finish. — A.M.C. Sy

Arthaland to infuse P18M into Bhavya Properties

LISTED Arthaland Corp. will infuse P18 million in capital into its subsidiary Bhavya Properties, Inc., which is developing the Eluria luxury residential condominium project in Makati.

Arthaland will subscribe to 180,000 Bhavya preferred shares at P100 per share, the listed property developer said in a regulatory filing on Thursday.

The listed company will pay the share subscription in full on Oct. 9.

“Bhavya will leverage the additional equity to fund its working capital requirements while ensuring compliance with all its financial covenants,” Arthaland said.

Eluria is a 31-storey, low-density, ultra-luxury residential condo project in Legazpi Village, Makati that offers large and limited edition designed residences.

Arthaland expects to generate P6 billion in sales value from Eluria. The property will feature 37 units designed by Sydney-based architecture and interior design firm FMB Architects.

Eluria’s amenities include a heated saltwater leisure and lap pool, an indoor children’s playroom, a function hall, a potager garden at the roof deck, and chauffeur shuttle services to select nearby destinations.

Bhavya Properties is 60% owned by Arthaland, while the remaining 40% is held by Singapore-based Narra Investment, which is managed by investment management company Arch Capital Management Co. Ltd.

On Thursday, Arthaland stocks were unchanged at 41 centavos per share. — Revin Mikhael D. Ochave

When Russia and Israel talk about setting up ‘buffer zones’ what they are really talking about is a land grab

FREEPIK

In the conflicts raging in Ukraine and the Middle East, we have recently seen calls for the establishment of what are being referred to as “buffer zones.”

Russia has proposed setting one up around Ukraine’s second city, Kharkiv in the north-east of the country. This, the Kremlin claims, is to protect Russian towns from shelling and missile attacks from Ukrainian territory.

Israel, meanwhile, wants to establish a buffer zone in southern Lebanon. It says it needs to protect nearly 70,000 civilians returning to their homes, which they have abandoned in the past year after rocket attacks by Hezbollah.

But these suggestions should be viewed with skepticism. Both Russia and Israel want to set up these buffer zones within the borders of neighboring autonomous nation states — in breach of their sovereignty — in the name of “security.” They should instead primarily be seen as a way of formalizing control over contested territory to protect their home bases, which would give them a military advantage.

The situation is further complicated by the fact that neither nation is formally at war with its opponent. No formal declaration of war has been issued by Russia to Ukraine, while Israel claims its legitimacy to establish a buffer zone under Article 51 of the UN constitution concerning self-defense.

Such arguments are hypocritical and one-sided. Russian and Israeli policymakers have shown no concern for the effect of the establishment of these zones on the Ukrainian and Lebanese populations of the areas.

The idea of buffer zones has a long history within international relations. Buffer zones have generally been defined as a nation state or neutral geographical area between two states not politically or militarily controlled by either of the rival states it separates.

The zones proposed by Russia and Israel don’t fit this definition. Both Kharkiv and southern Lebanon are militarily contested. And neither the Ukrainian nor Lebanese governments is in control of their territories.

If the Russian and Israeli proposals were to conform to this definition, they would comprise territory on both sides of the border of the two states, established with the agreement of both rival states. But neither Russia nor Israel is planning to cede their own territory in the establishment of these buffer zones. In fact, both have consistently sought to delegitimize their rival’s status as a nation state.

These considerations, alongside Ukrainian and Hezbollah resistance, suggest that these new buffer zones will be fiercely contested. Indeed, the history of buffer states and zones suggests that the effectiveness of such zones is highly questionable.

HISTORY OF FAILURE
Lebanon itself serves as an example of this in acting as a buffer state (although not formally declared as such) for the Israeli-Syrian rivalry from the late 1960s. Both Syria (1976) and Israel (1978 and 1982) intervened militarily in Lebanon at one point or another.

In this context, Lebanon provided a way for Syria to protect itself from surprise attacks. It allowed the political and military confrontation to play out without escalation to their own national territories. But it was terrible for Lebanon itself and ironically, Israel’s invasion of Lebanon in 1982 paved the way for the foundation of Hezbollah as a political and military force.

Similarly, Anglo-Russian rivalry over influence in Afghanistan in the 19th century focused on political maneuvering to exert influence over Afghan rulers to protect British India and southern Russia respectively. This saw much money and political capital expended on both sides. There were also three British military incursions (1839-40, 1878-80, and 1919) attempting to consolidate their influence. None went well.

In both these cases though, competing powers were using an intervening state to avoid an escalation of tensions into conflict.

EXTERNAL ‘SECURITY ZONES’
In this instance, the recent declarations in pursuit of “buffer zones” by both Russia and Israel have more in common with strategic occupations of territory to resolve a military problem – namely attacks on their own territories. Within security studies literature these are termed “external security zones” and are generally militarily occupied zones within hostile territory deemed essential to the national security of the occupying power.

Historically, these zones have also been of questionable value. Following continued Palestinian attacks on Israeli border villages, in 1977 the Israel Defense Forces created a formal security buffer zone in south Lebanon through the proxy South Lebanon Army and supported by UN Interim Forces in Lebanon (Unifil) from March 1978.

The establishment of this zone did little to prevent shelling and rocket attacks on Israel, leading to significant exchanges of artillery fire in the summer of 1981. Then on June 6 1982, Israel invaded southern Lebanon.

Ultimately, neither buffer zones nor security zones have proved very effective at preventing conflict or preserving populations from its effects. These have almost always been negative, to say the least.

Now, both Russia and Israel are likely to find themselves facing increasing resistance from the occupied nation. This will require the commitment of more troops and perhaps deeper military advances under cover of the political and strategic “necessity” to ensure the security of their own borders.

These commitments will undoubtedly lead to more casualties. They will either lead to a destabilization of existing governance in their regions or serve as a pretext for the aggressors to push further forward. It will also require them to further reshape their economies to fill military needs and could lead to potential escalation with other regional powers.

THE CONVERSATION VIA REUTERS CONNECT

 

Iain Farquharson is a lecturer in Global Challenges – Security Pathway Lead, at Brunel University London.

Seaman wins $60,000 in disability benefits

PHILSTAR FILE PHOTO

THE Supreme Court (SC) ordered Fleet Management Services, Inc., its Philippine branch, and its Filipino director to pay a seaman $60,000 in permanent and total disability benefits with an attorney’s fee of 10%, ruling that the company doctor failed to give the worker a final assessment.

The tribunal also ordered the payment of 6% legal interest from the finality of the ruling until the obligation is discharged.

The court’s Second Division, in an 11-page decision written by Justice Jhosep Y. Lopez, cited an earlier ruling explaining what a “final assessment” is.

“A final, conclusive, and definite medical assessment must clearly state whether the seafarer is fit to work or the exact disability rating, or whether such illness is work-related, and without any further condition or treatment,” it said, citing Bitco vs. Crossworld Marine Services, lnc.

It added that it should require no further action from the company-designated physician and must be issued after all possible treatment options have been exhausted within the legally allowed time.

“Without a valid, final, and definitive assessment from the company-designated physician, the respondent’s temporary and total disability, by operation of law, became permanent and total,” it said.

It said the final medical report did not fully address all of the workers’ conditions and was issued without proper medical examination before the expiration of the 120-day treatment period.

It underscored the importance of fully informing the worker of his medical condition as the final medical report was only given to the worker through his wife’s Facebook Messenger, which raised questions on the communication of his health status.

“Worse, Fleet Ship’s evidence merely supports the inference that an image of the Final Medical Report was transmitted to [his] wife. There is no indication at all that the company-designated physician even attempted to explain the contents of the Final Medical Report to (the worker),” according to the ruling.

The case stemmed from a petition for review filed by the maritime company against its former seafarer, after the worker experienced severe medical issues aboard ship.

He had been employed by the company since 2012, serving several contracts as a fitter.

In 2019, while onboard the MV Silverstone Express, he encountered health issues such as weakness, dizziness, and vomiting.

He was later diagnosed with pneumonia and sepsis, among others, leading to his repatriation for treatment.

After he underwent an extended medical evaluation by the designated company doctors, he was declared fit to work. He disputed the findings and sought a second opinion.

His own doctor said that he was unfit to work, leading the seafarer to claim permanent and total disability benefits.

The Labor Arbiter and the National Labor Relations Commission ruled in favor of the worker, granting him disability compensation, but the company appealed the decision before the Court of Appeals.

Fleet Ship argued its doctors issued a valid medical assessment, declaring the worker fit to work and claiming that he failed to follow the third-doctor-referral rule. — Chloe Mari A. Hufana

Doctor pleads guilty in death of Friends star Matthew Perry

MATTHEW PERRY

LOS ANGELES — One of two California doctors who were among the five people charged in the overdose death of Friends star Matthew Perry pleaded guilty on Wednesday to illegally distributing the drug ketamine.

Dr. Mark Chavez of San Diego entered the plea during an appearance in US District Court in Los Angeles. He could face up to 10 years in prison at his sentencing, which was scheduled for April.

Another physician charged in the case, Dr. Salvador Plasencia, has pleaded not guilty, as has co-defendant Jasveen Sangha, who authorities said was an illicit supplier of the drug and was known as the “ketamine queen.” The pair are scheduled to go on trial in March.

Mr. Perry’s live-in personal assistant, Kenneth Iwamasa, who admitted to injecting Mr. Perry with the drug, and the alleged middleman who said he obtained ketamine from Ms. Sangha, have already pleaded guilty to charges they faced.

Authorities said Mr. Plasencia purchased ketamine from Mr. Chavez, and in text messages to Mr. Chavez discussing the amount to charge Mr. Perry for the drug wrote: “I wonder how much this moron will pay.”

In court on Wednesday, Mr. Chavez, 54, stood at a podium and answered “yes, your honor” to a series of questions.

The defendant admitted to obtaining ketamine with a fraudulent prescription written for another patient and that he knew the drug was intended for Mr. Perry.

He also acknowledged providing ketamine, a short-acting anesthetic, to Mr. Plasencia, and that he understood it should only be administered under medical supervision with proper safety equipment nearby.

According to court documents, Mr. Plasencia administered ketamine to Mr. Perry at the actor’s home and supplied vials that were injected by the assistant. Mr. Plasencia’s lawyer has said his client properly prescribed and administered ketamine to Mr. Perry.

Mr. Perry died at age 54 in October 2023 from “acute effects” of ketamine and other factors that caused him to lose consciousness and drown in his hot tub, according to a December 2023 autopsy report.

The actor had publicly acknowledged decades of substance abuse, including during the years he starred as Chandler Bing on the hit 1990s television sitcom Friends.

Mr. Chavez pleaded guilty under an agreement with prosecutors, who offered him lesser charges for his assistance in their case against Mr. Plasencia and Ms. Sangha.

“He has accepted responsibility. He is cooperating,” Matt Binninger, Mr. Chavez’ attorney, said in court.

Mr. Chavez has relinquished his medical license and remains free on bond until his sentencing. — Reuters

FINEX Academy launches the Digital Transformation Program

In today’s rapidly evolving business landscape, digital transformation has become a critical imperative for organizations seeking to maintain competitiveness and drive growth. The Digital Transformation Program, organized and offered by FINEX Academy, is designed to equip participants with the necessary skills and knowledge to navigate this complex journey. This comprehensive program focuses on strategy, execution, and governance, ensuring that participants are well-prepared to lead their organizations through successful digital transformations.

Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how organizations operate and deliver value to customers. It encompasses a cultural shift that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure. The goal is to enhance operational efficiency, improve customer experiences, and create new business models that leverage technology.

The Digital Transformation Program is structured to provide a holistic understanding of the principles and practices necessary for successful digital transformation. Conducted virtually, the program allows participants to engage with experts and peers from the comfort of their own locations. The course will consist of multiple modules, each focusing on different aspects of digital transformation, governance, and technology strategy.

The first module, which will be delivered by Hungry Workhorse, introduces participants to the digital transformation framework, emphasizing the importance of governance and strategic alignment with business objectives. Participants will learn about the roles and responsibilities of executives and boards in overseeing technology initiatives.

Following this, a module delivered by KPMG focuses on how organizations can foster innovation and measure the value generated from digital transformation initiatives. Participants will explore various methodologies for assessing the impact of these programs on business outcomes.

Another critical module in the program is enterprise risk management, which will be delivered by SGV, where participants will learn how to navigate risks and opportunities during digital transformation. Understanding risk management principles is crucial for ensuring that organizations can adapt to changes while minimizing potential setbacks. The program also addresses the importance of maintaining business operations during times of change, equipping participants with insights into developing robust business continuity  plans that can withstand disruptions.

The next module is about business continuity which will be delivered by the Business Continuity Managers Association of the Philippines. Participants will learn about the components of a business continuity plan and professional practices outlined by the Disaster Recovery Institute International. This includes program initiation and management, risk assessment, business impact analysis, and the development of effective business continuity strategies. The program will also cover incident response, awareness and training programs, and the importance of conducting exercises and assessments to maintain a robust business continuity plan. Additionally, participants will explore crisis communications and coordination with external agencies to ensure comprehensive preparedness.

As the program progresses, participants will delve into the practical aspects of executing digital transformation initiatives. This module, led by KPMG, covers topics such as change management, stakeholder management, and agile transformation execution, ensuring that participants are equipped to implement their strategies effectively. The final module focuses on driving transformational program success through effective risk management. Participants will learn about the challenges of delivering large and complex programs and how to increase the likelihood of success through strategic planning and execution.

The last module focuses on Program Risk Management (PRM) which will be run by SGV. Participants will learn about the need for PRM in addressing the challenges of successfully delivering large and complex programs. The module will define what constitutes program success and explore strategies to increase the likelihood of achieving it. Participants will differentiate between portfolios, programs, and projects, gaining insights into the program life cycle

By the end of the Digital Transformation Program, participants are expected to achieve several key outcomes. They will gain a solid understanding of good governance practices and the responsibilities of leadership in relation to technology and information management. The program will equip them with the tools to assess how digital transformation initiatives contribute to business success and add value to the organization.

The fee for the entire course is P25,000.00 per participant, which includes access to all modules, pre-reading materials, and interactive sessions with industry experts. The first module is set to run on Nov. 5, 2024. The program is designed for professionals across various sectors who are involved in digital transformation initiatives, including executives, managers, and IT professionals.

As organizations continue to face unprecedented challenges and opportunities in the digital age, the Digital Transformation Program offers a timely and relevant solution for those looking to lead their organizations through this critical transition. By providing a comprehensive understanding of digital transformation, governance, and execution strategies, the program prepares participants to drive meaningful change within their organizations.

Don’t miss the chance to gain from his expertise and drive your organization forward in the digital age. Register here: https://bit.ly/3MeQs1J to secure your spot!

For more information, visit https://lnkd.in/gxH9Kpw2. For any questions, feel free to reach out to the FINEX Academy Secretariat at sarah.parapara@finex.org.ph.

The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX.

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He is the chair of the IT Governance and Digital Transformation Committee at the FINEX Academy. He teaches strategic management and digital transformation in the MBA Program at De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

Figaro Coffee unit gets PEZA approval for pizza manufacturing project in Laguna

BW FILE PHOTO

LISTED Figaro Coffee Group, Inc. (FCG) said its unit has secured the green light from the Philippine Economic Zone Authority (PEZA) for a planned pizza manufacturing project in Laguna.

During a board meeting on Sept. 23, PEZA approved the application of Figaro Innovation and Development, Inc. (FIDI), a subsidiary of Figaro Coffee Systems, Inc. (FCSI), for the registration of a project to produce pizza products and frozen pizza, FCG said in a regulatory filing on Thursday.

The pizza manufacturing project will be situated at Laguna Technopark Special Economic Zone, Mamplasan, Biñan City, Laguna. FCSI is the operating unit of FCG.

With PEZA’s approval, FIDI’s pizza production project will be eligible for a five-year income tax holiday and a ten-year special corporate income tax of 5% under Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

The incentives are subject to FIDI’s signing of a supplemental agreement with PEZA, under standard registration terms and conditions, and to the prescribed preregistration and registration requirements.

In September last year, FIDI received certification from the Trade department as a duly accredited coffee exporter.

FIDI has been designated as an economic zone export enterprise authorized to engage in the production of different roasted coffee blends such as house reserve, espresso blend, and French roast.

FCG has various brands such as Angel’s Pizza, Figaro Coffee, Tien Ma’s, Café Portofino, and one Koobideh Kebabs.

As of October, FCG has 65 Figaro Coffee branches, 127 Angel’s Pizza branches, nine Tien Ma’s branches, four Café Portofino branches, and one Koobideh Kebabs branch.

On Thursday, FCG shares dropped 1.23% or one centavo to 80 centavos per share. — Revin Mikhael D. Ochave

The Philippines has done its part, it’s time for the West to step up in the West Philippine Sea

SHIPS from Australia, Japan, New Zealand, the United States, and the Philippines at the 4th Multilateral Maritime Cooperative Activity on Sept. 28, 2024. — PFC CARMELOTES/PAOAFP

A June 2024 survey by OCTA Research saw 76% of Filipinos seeing China as the “greatest threat” to the Philippines. And indeed, the Philippine defense budget reflects this, with significant increases in recent years. The General Appropriations Act pegs Philippine defense spending rising from P204 billion in 2023 to P238 billion in 2024. That the defense budget is projected to expand by another 6.4% in 2025 could only be gratifying.

Yet, compare that with United States’ defense spending being 3.38% of its GDP. Singapore’s defense budget is around 2.5% of its GDP, followed by South Korea at 2%, and Japan increasing its defense budget to 1.6% (from its formerly flat spending of around 1% for the past couple of years). Philippine GDP currently P26.55 trillion, this means that the country’s defense spending share to GDP is only at 0.896% (see “The existential importance of Philippine defense spending,” Rocio Salle Gatdula, Manila Times, Sept. 15).

Although the Constitution does prioritize spending for education, nevertheless, Article II.IV does mandate that: “The prime duty of the Government is to serve and protect the people. The Government may call upon the people to defend the State and, in the fulfillment thereof, all citizens may be required, under conditions provided by law, to render personal, military or civil service.” So clearly more must be done.

Indeed, the government admirably undertook the upgrade in defense industry standards, modernized regulations, and established linkages through various trade and investment frameworks, signed the Arms Trade Treaty, and enacted the Strategic Trade Management Law. Yet with the upgrade of capabilities is the need for our legal framework to maintain consistency with such developments. Our rules of engagement must be responsive to our defense capabilities, ensuring not merely the upholding of human rights in relation to combatants and civilians, but also to align the Philippine response to the variety of potential political and military scenarios that could ensue.

Speaking of legal frameworks, a recent report (“Investing in Narratives: How Beijing promotes its development projects in the Philippines”) by AidData found China resorting to thousands of troll accounts, PRC-sponsored journalist training in China to socialize Filipino journalists to Beijing’s perspectives, as well as heavy reliance on mainstream and social media.

This should be enough for the government to initiate prosecution for violations of CA 616, PD 79, and the Revised Penal Code (including updating the laws on treason to cover “peacetime” scenarios). Also, prosecutions for possible violations of tax laws, media, lawyers’ ethics, and others.

Quite significant in the aforementioned report is that Chinese objectives circle around three main narratives involving development financing assistance to the Philippines: that cooperation with the People’s Republic of China is a win-win, its rise is inevitable, and Asia should be led by Asians. China’s propaganda thus emphasizes its investments, focusing on infrastructure projects and their economic benefits.

Which leads us therefore to the fact that, in the same way it is axiomatic in domestic economics that citizens vote daily with their wallets, so the same is true in international relations.

And here we see the Philippine Economic Zone Authority (PEZA) announcing that it is expecting applications within the year for six expansion projects by Chinese locators valued at around P4.6 billion. Many of these are for expansion projects of existing registered business enterprises, construction, and energy. There are now reportedly 189 Chinese Registered Business Enterprises in PEZA, which have generated P47.3 billion in investment and 46,501 direct jobs.

For the Philippines, total external trade reached $17.37 billion in July, up from $16.62 billion a year earlier. Of the total, imports accounted for 64%, while exports made up the remaining 36%. This means that the Philippines had a trade deficit of $4.87 billion in July and $29.9 billion for the first seven months of the year.

Our main export market remains the United States, with $1.06 billion in goods. Japan followed with $872.43 million, then China with $791.29 million, Hong Kong with $744.82 million, and South Korea with $305.17 million.

China was the Philippines’ largest supplier of imported goods in July, with shipments valued at $3.08 billion. Indonesia followed with $947.55 million, Japan with $893.54 million, South Korea with $810.32 million, and the United States with $675.58 million.

Matters certainly are not improved when the EU, for example, would suspend a few years back our GSP (generalized system of preferences) privileges due to alleged “human rights” abuses, while not doing the commensurate acts to China (not exactly the most compliant in terms of human rights). The point is that while our allies laud the Philippines’ stand against China, declaring our common allegiance to the rule of law and the international legal order, yet it is those same countries that continue to have China as their main trading partner. This is unfortunate considering a substantial amount of their trade passes by our seas.

In the recent 60 Minutes piece on the West Philippine Sea, this exchange involving Defense Secretary Gilbert Teodoro occurred:

Gilbert Teodoro: If China were to take the Sierra Madre, that is a clear act of war on a Philippine vessel.

Cecilia Vega: And you would expect American intervention…

Gilbert Teodoro: And we will react. And naturally, we would expect it.

It was a good answer. But the question actually should not have been asked of Teodoro but of our American allies and the West in general.

The discussion that we should be having is not what the Philippine response is — we’ve been doing already all that we can — but rather (considering the admitted common stakes we all have involving our area in the world) is what is the West prepared to do and commit to protect our common interests and values?

 

Jemy Gatdula is the dean of UA&P Law, as well as a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

Motivating employees with nonmaterial rewards

We can’t afford to pay high salaries and benefits. This results in an average attrition rate of 15% per annum. How do we solve this? — Water Lily

CONTRARY to the general belief, employee motivation is not about giving cash or material things. It’s a misinterpretation of the old carrot and stick method that evolved when farmers raised donkeys. Lazy donkeys were enticed with carrots or beaten with sticks.

This method entrenched itself in the minds of early managers, who thought that people could be treated like donkeys. Such a theory, even if proven ineffective, persists today with new managers displaying old thinking. It happens all the time because managers are not creative and they don’t positively communicate with people on a regular basis, except when castigating them.

In my more than four decades of experience in human resources (HR), I’ve long realized that money is not everything. If money is the only motivator for employees, then it’s only a matter of time before they move to another company with a higher offer, resulting in high turnover.

That’s happening in many organizations. Fortunately, there are people who are not attracted solely to high pay for whatever reason. However, you need to know how to identify and cultivate them.

MANAGEMENT BY KINDNESS
Aside from material things, some workers find work meaningful and satisfying, with the help of nurturing employers, thereby ensuring corporate growth and profitability. So, how do we motivate people without paying them good money? There are many ways. To summarize them all would point us to a common denominator — management by kindness.

Here are ten examples:

One, give workers a sense of ownership. If it does not adversely affect product quality, allow workers to stamp their names or insert a “calling card” inside the box containing the products which they made. It makes them fully responsible for product quality.

Two, be accessible and readily visible to all. Do management by walking around, not as a “snoopervisor” but as a boss offering assistance to all who may need them. Make visits casual and “accidental” and not viewed as routine.

Three, listen carefully to ideas and complaints. Don’t rush a judgment. Take time without appearing to delay the process. If necessary, ask for more details in a separate face-to-face meeting. Don’t require people to put it down in writing. Many loathe writing.

Four, offer employees the chance to work near home. Daily traffic is a hassle. It robs many of productive hours. If people work near home, you’ll take away their commuting stress and give them time to be with their families.

Five, organize an annual skills Olympics. If you’re in a fast-food restaurant, conduct a time-based competition in fried rice making, veggie-slicing, pizza dough making (and catching). For administrative work, you can showcase people skills in customer service.

Six, remove discriminatory practices. Ban exclusive perks. Allow everyone to enjoy executive dining, executive elevators, and even executive parking. Generally, executives have drivers who can easily park their cars somewhere.

Seven, establish an honesty bakeshop with concessionaires. If not, allow the workers to buy bread at a special volume discount for family consumption. This requires only a small space inside the cafeteria and need not incur costs for the company.

Eight, invite the workers’ families to company parties. It’s easy to create theme parties for this purpose. One example is Halloween or Christmas parties for kids. Give prizes or other freebies for participants.

Nine, allow employee flexible work hours. This will vary with the company’s business and the specific tasks that must be performed. Focus on productive results rather than the workers’ physical presence or hours they spend in the office.

Ten, empower people to make simple decisions. Document their best practices that you can share with other workers who are similarly situated. Over the long term, this can help them develop an interest in problem-solving as well.

EXPIRY DATE
You will only be limited by your creativity. You can create your own “management by kindness” policy to fit the workers’ specific needs and wants. Experiment, monitor, and adjust as the need arises. Be dynamic. These examples are not written in stone.

Treat your workers as valuable assets.

But do more than lip service. In due time, your organization should obtain impressive results. Once again, you’ll realize that money is not everything. But I must warn you that kindness has an expiry date. Be aware of this every step of the way.

 

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Fashion designer Hedi Slimane leaves LVMH’s Celine

PARIS — Fashion designer Hedi Slimane has left LVMH’s Celine brand, the company said on Wednesday, marking the latest high-profile departure from a fashion label as the industry grapples with a sales downturn.

LVMH has named Michael Rider as Mr. Slimane’s successor. Mr. Rider, who will start his new job early next year, worked alongside former Celine designer Phoebe Philo at Celine for over a decade.

Mr. Slimane’s departure will intensify speculation about upheaval in the industry, where a number of top designers have moved jobs. One of the most coveted roles, creative director of Chanel, remains unfilled after the departure of Virginie Viard in June.

Creative directors most often depart when they no longer have a positive impact on sales, said Luca Solca, an analyst with Bernstein.

“I don’t think this is an exception,” he said of Mr. Slimane’s exit, noting that, like artists, creative directors tend to produce variations on a theme, which can become predictable.

Mr. Solca said Mr. Slimane had done well at the label, likely more than doubling brand revenue to around 2.5 billion euros.

Mr. Slimane could not be reached for comment.

Mr. Slimane joined Celine in 2018, quickly making his mark at the historic fashion house with his distinctive rocker-chic aesthetic.

He is also known for the skinny silhouettes that he offered when he was at Dior Homme and at Kering’s Yves Saint Laurent, famously inspiring Karl Lagerfeld to slim down to fit into his Dior designs.

The designer rarely granted interviews and maintained tight control of all aspects of brand image, shooting advertising images himself and holding fashion shows outside of the traditional calendar.

At Celine, Mr. Slimane sought to update the brand’s French bourgeois aesthetic for a younger audience, with ad campaigns featuring model Kaia Gerber in cropped tops and faded jeans, accessorized with a baseball cap and small, leather purse.

He also introduced a menswear line at Celine, as well as fragrances and makeup.

LVMH chairman and CEO Bernard Arnault set ambitious targets for Mr. Slimane, telling investors shortly after he joined that LVMH aimed to grow annual revenue at Celine to between 2 billion to 3 billion euros within five years, from close to 1 billion euros ($1.10 billion) at the time.

In January, at LVMH’s annual results presentation, Mr. Arnault said that Celine was enjoying “great success” thanks to Mr. Slimane, and topping 2 billion euros in sales.

The company does not break down revenue by brand in its published earnings statements.

Growth in sales in the luxury goods industry in general has slowed sharply this year, as middle-class shoppers in China hold off on purchases due to the property slump and job insecurity.

Barclays analyst Carole Madjo noted during a recent trip to China that Celine was facing “brand fatigue” and was likely to be underperforming in the country.

The change follows other moves at LVMH, including its investment in one of the industry’s strongest performers in recent years, Moncler.

It said this week it had sold off streetwear label Off-White, founded by the late Louis Vuitton menswear designer Virgil Abloh. — Reuters

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