Luna Securities eyes expanded market reach

September 23, 2024 | 12:03 am

STOCK BROKERAGE firm Luna Securities, Inc. targets to expand its market reach with a lower commission rate pricing program, a company official said.

“Not only do we want more Filipinos to experience stocks, but we also want stocks to be top billing as regards to their money growing exploits,” Luna Securities President and Co-Founder Francis Patrick T. Diaz said during a media briefing in Makati City last week.

“With our commission revolution, we can, in our own way, help stocks compete with other emerging classes of financial assets,” he added.

Mr. Diaz said this as Luna Securities announced a commission rate pricing program where the starting commission rate for all users begins at 0.2% and falls to 0.12% as determined by the user’s per order executed gross traded value.

“Every Luna client will start with a commission rate of 0.2%, which is 20% lower than the current minimum industry standard of 0.25%. If Luna made stocks accessible and advanced before, it is also affordable now,” he said.

“Luna began with a better user experience and the lowest minimum maintaining balance of just P500. Now we offer a compelling fee structure. With lower fees comes the potential for higher investor returns and the incentive to trade. Luna understands there is more work to be done, but we’re here for it, and we are ready,” he added.

Meanwhile, Luna Securities Chair and Co-Founder Michael John P. Gatmaytan said in the same briefing that Luna runs on a cloud-based, full digital user interface, as well as an end-to-end system designed by the company’s financial technology team.

“This allows us to be very efficient and able to offer best in class products, service, and best in rates, all at the same time,” he said.

In April, the Securities and Exchange Commission removed the minimum broker commission fee via Memorandum Circular No. 7.

Before the circular, the SEC had issued a resolution in 1977 setting a broker’s commission rate at 1.5%, while guidelines from the Philippine Stock Exchange mandated a minimum commission ranging from 0.25% to 0.05% of the value of a trade transaction.

Luna Securities was established in October 2021. It began live trading operations in March 2022. The stock brokerage launched its mobile trading application in April 2023.

The company’s sole shareholder is Millennium Advisors and Management Corp., a Filipino company founded by four professionals with experience and expertise in banking, finance, investments, stock broking, and technology. — Revin Mikhael D. Ochave

Philippines lands at 56^th place in 77-country Global Digitalization Index

September 23, 2024 | 12:02 am

The Philippines ranked 56^th out of 77 countries in the 2024 Global Digitalization Index (GDI) report by Chinese technology ﬁrm Huawei Technologies Co. Ltd. The country had an average score of 34.9 out of 100 — the second-lowest in the region — and tagged as a “starters” when it comes to digital transformation. The score was based on 42 indicators and four enablers that assess their digital infrastructure maturity.

Missouri health worker who had contact with bird flu patient developed symptoms, US officials report

September 23, 2024 | 12:02 am

A SECOND Missouri healthcare worker who had contact with a hospitalized patient infected with bird flu developed mild respiratory symptoms but was not tested for the virus, US officials said Friday.

The number of people who were in contact with the hospitalized bird flu patient in Missouri and developed symptoms is now up to three, officials said. All three have recovered.

The other two symptomatic cases included a healthcare worker who tested negative for influenza and a household contact of the patient who developed symptoms at the same time as the hospitalized patient, but was never tested.

Unlike prior US bird flu cases this year, the Missouri patient had no known contact with infected animals, raising concerns the virus currently circulating in dairy cattle may have mutated in a way that makes it spread more easily in people.

Centers for Disease Control and Prevention (CDC) officials said in a Sept. 12 briefing that the agency has been unable to determine if the Missouri case was related to the virus infecting US dairy cattle. Missouri is leading the state’s bird flu investigation with remote assistance from the CDC.

The state’s health officials said in an e-mail last week Missouri is considering taking blood samples to look for antibodies that would indicate prior exposure to bird flu.

The CDC said serologic testing will be offered to the second healthcare worker. Caitlin Rivers, an epidemiologist at Johns Hopkins Center for Health Security, said the results of the blood tests will be critical.

“We’ll need the serology results to assess whether this is evidence of H5 transmission,” she said, adding that COVID-19 activity was also high in August and the symptoms were easy to confuse.

Michael Osterholm, an infectious disease expert with the University of Minnesota, also said it could be “any number of respiratory illnesses.”

The confirmed Missouri case occurred in a patient who was admitted to the hospital with underlying health conditions and was tested for influenza as a part of their workup.

It was unclear whether the patient’s underlying conditions caused the symptoms or the flu.

The Missouri case was the 14^thperson in the US to be diagnosed with bird flu this year. The other 13 cases were among farm workers and linked to bird flu outbreaks on poultry or dairy farms.

Bird flu has infected more than 200 dairy herds in 14 states since March, according to US Department of Agriculture data. — Reuters

Vaccinating school-age children to prevent outbreaks

September 23, 2024 | 12:02 am

doctor-administering-vaccine-kid — FREEPIK

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9^th iteration of Clarins’ serum offers lifestyle aging

September 23, 2024 | 12:02 am

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

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

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

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

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

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

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

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

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

Clarins is available at Rustan’s. — JL Garcia

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

September 23, 2024 | 12:02 am

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

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

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

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

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

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

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

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

BSP Governor Eli M. Remolona, Jr. previously said they could cut rates by another 25 bps within the year. The Monetary Board’s last two policy-setting meetings this year are on Oct. 17 and Dec. 19.

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

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

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

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

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

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

Bossjob aims to simplify job seeking for Filipinos

September 23, 2024 | 12:02 am

By Revin Mikhael D. Ochave, Reporter

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bankrolling mobility

September 23, 2024 | 12:02 am

VELO_PAGE1_image1 — With the banks come the buyers. — PHOTO BY KAP MACEDA AGUILA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Philippines: Balance of Payments (BoP) Position

September 23, 2024 | 12:01 am

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

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

September 23, 2024 | 12:01 am

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

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

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

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

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

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

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

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

Change: The journey, not the destination

September 23, 2024 | 12:01 am

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

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

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

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

There are now six generations:

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

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

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

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

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

• Gen Alpha, those born after 2012 (children)

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

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

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

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

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

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

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

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

• Artificial Intelligence (AI)

• Internet of Things (IoT)

• Blockchain

• Augmented reality

• Advanced robotics

• Quantum computing

• Neuromorphic computing

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

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

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

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

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

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

Change is a journey. It is not a destination.

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

ahcylagan@yahoo.com

Style (09/23/24)

September 23, 2024 | 12:01 am

1 of 3

Longchamp reintroduces Le Roseau

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

Montblanc introduces new gizmos in new pen

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

Levi’s opens biggest Southeast Asia store in Malaysia

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