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Post-COVID opportunities in healthcare

CDC-UNSPLASH

By Patricia Mirasol, Reporter

THE post-COVID opportunities in healthcare are becoming apparent in fields like digital transformation and wellness, industry officials said, while at the same time highlighting the challenges posed by labor shortages and cybersecurity threats.

TECHNOLOGICAL CHANGE
The Medical City (TMC) finds itself at various levels of digital transformation, according to Dr. Eugenio F. Ramos, president and chief executive officer (CEO) of TMC, which operates a flagship complex, four provincial hospitals, and over 50 clinics. 

“We are getting into AI (artificial intelligence) in ECGs (electrocardiograms) and in echocardiograms. We are doing AI in our mammograms,” he said in Zoom call in July. 

These facilitate the efficiency of the process, he said: “The machine and the radiologists concur… AI is based on numbers. If it has gone through millions, then you can see it becomes really accurate.”

Ambulance company Lifeline 16-911, for its part, is likewise investing in AI-assisted dispatching systems.

This “will allow for a zero-response time to emergency cases, by allowing us to guide the callers in providing effective first aid to patients while the ambulances are en route,” Michael H. Deakin, president and CEO, said.

“Post-pandemic, we have to prepare ourselves in terms of how to get the right data, and how to make use of that data in making decisions,” Mr. Ramos of TMC said. “Sometimes, the decisions may not be the best decisions, but those that are quick and helpful to the most number of people.” 

PANDEMIC FINDINGS
Disaster preparedness and recovery planning served the company well during the pandemic, according to Lifeline 16-911’s Mr. Deakin.

“(We) regularly worked on various scenarios and an updating of skills — even before the pandemic,” he said in an e-mail. “When the pandemic hit, we were fully prepared to activate our protocols… without any downtime.”

Emergency medical service companies can expand by offering home services, thereby reducing the need to go to hospitals, he pointed out.

“Looking ahead, we are hoping to establish a national system that facilitates seamless interactions between the government and private sector for better crisis response in the future,” Mr. Deakin added.

American Bio-Clinical Laboratories, International (ABC Labs, Int’l.), on the other hand, has found that not committing too heavily to a future of extensive coronavirus disease 2019 (COVID-19) testing turned out to be the right decision.

Malacañang lifted the COVID-19 test requirement for incoming visitors on Oct. 25, 2022. Earlier that year, local government units started lifting their test requirement for fully vaccinated travelers.

Riding on the trend would have been good for business, said Geoffrey L. Beldua, ABC Labs, Int’l’s general manager.

“In retrospect, ABC Labs Manila made the right call not to push Covid testing as we were still in the preparation stages during the peak of the pandemic,” he told BusinessWorld.

“Post-COVID recovery negatively affected diagnostic centers focused on COVID testing alone,” he said in a July 27 e-mail. “An exit strategy should be in place as the trend is expected to die down eventually.”

PREVENTIVE HEALTH
One opportunity that has emerged from the wake of COVID-19 is the greater focus on preventive health and wellness, according to Cholo A. Tagaysay, CEO of KonsultaMD, a 24/7 health hotline service.

“Twenty percent of Filipino consumers who care about wellness expressed intent to spend,” he said in an e-mail, noting interest in supplements, health insurance, and preventive healthcare.

“Despite price increases, the majority are still willing to pay a premium,” he said.

Mr. Tagaysay also noted that the proliferation of wearable devices will enable remote consultation and the monitoring of vital signs such as blood pressure and heart rate.

“The focus on wellness, lifestyle, and wellbeing is the bigger market, actually,” Mr. Ramos said. “People have become more health literate, have started to assume more responsibility over their own health.”

This requires the healthcare industry to take advantage of the shift from disease management to disease prevention, Mr. Ramos said.

The Universal Health Care Act (Republic Act No. 11223), “if successful, [would help] Filipinos be more productive,” Mr. Beldua said.

“However, this should also be supplemented by other programs, such as employment opportunities, so that the cycle of capability and contribution to society can be completed,” he said. 

The law, passed in February 2019, grants full health coverage and prescribes complementary reforms to the health system to minimize the financial hardship arising from health emergencies.

A December 2022 study by the Philippine Institute for Development Studies found that members of the national health insurance program still pay out-of-pocket for medical services despite the law on universal healthcare.

CYBERSECURITY CONCERNS
An attendant challenge to any technology-driven enterprise is cybersecurity.

“A lot of opportunities are present in connected healthcare through telehealth,” Mr. Tagaysay said. “Opportunities for data and remote monitoring by syncing outpatient and inpatient records are possible.”

“But we also see challenges in cybersecurity, data ownership, and legislation,” he added.

Nearly half (47%) of Southeast Asian organizations succumbed to ransomware which held hostage crucial data, according to a report by IBM Corp.

The average cost to recover sensitive information illegally obtained by hackers rose 6% to a record $3.05 million in 2023 in Southeast Asia, the report found.

Healthcare continues to experience the highest data breach costs of all industries, IBM said in its Cost of a Data Breach Report 2023. Such costs rose to $10.93 million in 2023, up 8.2% from a year earlier.

On Aug. 1, President Ferdinand R. Marcos, Jr. said he was looking into improving the Philippines’ cybersecurity defenses and digital connectivity.

“We have to keep up. We are always looking for additional capability when it comes to all these communications, especially with the problems of cybersecurity,” the President said in a meeting with a satellite company.

LABOR SHORTAGES
Labor poses a major challenge in healthcare, health service providers said.

“The biggest risks for the emergency medical services these days is the shortage of nurses and EMTs (emergency medical technicians) who are leaving the country,” Mr. Deakin said.

“If not addressed carefully, this trend could result in drastic increases in healthcare service prices locally and exacerbate the brain drain as talented nurses leave the country,” he added.

Between 2020 and 2022, 29% of Lifeline’s staff were recruited overseas each year. Most have been moved to the Middle East, Europe, the UK, and Canada.

Lifeline stems the flow by paying for the training and university courses of future employees at the high school level.

“We have to give them more reason to stay, other than giving them a decent salary,” Mr. Ramos said. “Empower them with better chances of mobility as far as careers are concerned.”

“A lot want to stay,” he added, even “the younger ones. They are excited to travel, but… they want to eventually come back.”

Philippine schools level up with new tech

PHILIPPINE STAR/EDD GUMBAN

By John Victor D. Ordoñez, Reporter

UPSKILLING teachers and taking advantage of new technologies remain top priorities for the Philippine education sector as the country transitions out of the global coronavirus pandemic, according to education experts.

The pandemic forced many schools to invest in up-to-date equipment to allow teachers and students to work more efficiently, said Maria Ella Calaor-Oplas, an economics professor who specializes in human capital development research at De La Salle University.

“Investment in online collaboration platforms is also important to facilitate online classes and efficient learning experiences for teachers, administrators and students,” she said in a Viber message, citing the need for teachers to be trained on how to conduct classes online.

Universities have adopted online platforms as one of the primary modes of learning even as schools returned to in-person classes.

Ms. Oplas said the private sector and government need to upgrade the country’s network infrastructure to ensure reliable and fast internet.

The Philippines ranked 83rd out of 140 countries in June for mobile internet performance, with a download speed of 26.98 megabits per second (Mbps), according to global network testing firm Ookla. The speed was below the global average of 42.92 Mbps.

As schools continue to introduce new online tools such as artificial intelligence (AI), it may also pose risks to the integrity of the learning process, Ms. Oplas said.

“AI may be dangerous especially when students at the primary and secondary levels start using it,” she said. “It does not allow students to develop critical thinking,” she added, citing new web-based applications teachers use to detect AI-generated inputs in schoolwork.

“Education institutions have learned a significant insight into the role of artificial intelligence as a catalyst for enhancing the efficiency and efficacy of the learning process,” Ms. Oplas said.

Crafting AI policies in education should help countries “ensure inclusive and equitable quality education and promote lifelong learning opportunities for all,” according to the United Nations Educational, Scientific and Cultural Organization.

Turnitin Philippines, an online plagiarism detection and educational feedback company, has partnered with local universities to upskill teachers in using AI to help them grade papers online.

In a July report, the Asian Development Bank (ADB) said the Philippines should use education technology to bridge the skill gap or risk job losses due to rapid technological advancements.

It said 20% of the Philippine workers face a “high risk of losing their jobs” due to automation.

Raymond Basilio, secretary-general of the Alliance of Concerned Teachers (ACT), said the education sector needs to do something about the outdated skill training programs for public school teachers.

“Nothing much has been done to equip teachers to remedy the learning loss caused by the pandemic,” he said in an e-mail. “To address the learning loss, the government must consider overhauling the curriculum because it is the major culprit of learning loss.”

Students in the Philippines and Indonesia are more than a year behind in their learning because of the pandemic, McKinsey & Co. said in a report published in April last year.

A quarter-million Filipino students moved from private to public schools in 2020 and 2021, as many parents lost their jobs, according to the Education department.

Data from the ADB showed that 21% of children from middle-income countries who are of school age by 2030 will not learn basic primary-level skills.

It cited the need for the Philippines to develop the technical and vocational education training sector to increase workers’ competitiveness.

‘NO MAGIC WAND’
The Philippines had a learning poverty rate of 91% and a learning deprivation rate of 90.4%, among the highest in Southeast Asia, according to a 2022 report by the World Bank.

“We learned during the pandemic that our schools and systems must be ready with mitigating measures or alternative programs that can be used during times of calamities or emergencies,” Mr. Basilio said.

The Department of Education needs more than a trillion pesos ($17.6 billion) next year to pay for teachers’ salaries, benefits and school supplies, ACT Teachers’ Party-List Rep. France L. Castro said in June.

The higher budget would allow the country to comply with a United Nations standard for education to account for at least 6% of economic output, she said.

Under the proposed 2024 national budget, the education sector will get P924.7 billion, 3.3% higher than this year.

“More seminars, training programs for teachers and other forms of capacity building should be conducted and learning modules must be updated to make them more effective educational tools,” Renato B. Magtubo, chairman of the Partido Manggagawa labor group, said in a Viber message. Schools should also invest in faster WiFi connectivity and tablets for students.

International Labour Organization (ILO) Director-General Gilbert F. Houngbo has urged the government and local employers to boost investments in education and equip teachers with modern skills to address youth unemployment.

The World Bank said in February that millions of children around the world could lose up to 10% of their future average yearly earnings due to learning setbacks caused by the coronavirus pandemic.

George T. Barcelon, president of the Philippine Chamber of Commerce and Industry, said improving Science, Technology, Engineering, and Mathematics (STEM) programs could help bridge the skill gap in the workforce.

“We encourage the use of new technologies to help our young develop new skills and for our students to go up the global value chain,” he said by telephone. “Platforms such as YouTube could provide broad learning access to our young.”

Mr. Barcelon said improving proficiency in the English language should be prioritized to produce more employable students. “The command of English is important for our students since a lot of reading material is in that language.”

Last year, the Philippines placed 22nd out of 111 countries in the 2022 English Proficiency Index by Education First.

The country got a score of 578, which is considered high, second in the Asia-Pacific region after Singapore.

Mr. Barcelon said the Philippines lacks good teachers who are proficient in STEM fields, adding that performance-based salary increases could attract more capable people to the profession.

“The country needs to have a program that provides proper training for teachers and wherein we rate them on standards based on meritocracy,” he said. “There is no magic wand that we can wave to solve the losses we incurred in the education sector. The best we can do is address the gaps.”

Striking a balance between mining development and environmental protection

DION BEETSON-UNSPLASH

By Sheldeen Joy Talavera, Reporter

AMID the country’s move towards the greater use of renewable energy is a need to strike a balance between maximizing the mining industry’s contribution to the economy and minimizing the impact on the environment.

The Department of Environment and Natural Resources (DENR), the agency responsible for the conservation and proper use of the country’s environment and natural resources, said it wants mining companies to go beyond compliance.

“We have complete regulation but beyond regulations, what we are trying to do with this current administration is to go beyond compliance,” DENR Undersecretary Carlos Primo C. David told BusinessWorld.

“What if you can do better than what is prescribed by law? The improvement should be continuous, and this is what we want to commend some of the companies — if they are able to do that,” he said.

Mr. David said that among the programs being implemented by the department is the monitoring of mining activities using its geospatial database office.

The geospatial database allows the agency to map and monitor the country’s natural resources, including ongoing mining activities and reforestation initiatives by using satellite imagery.

“The government has the responsibility for that,” he said. “DENR handles or manages both sides — environment and natural resources development. It seems that it’s always in conflict with each other but it doesn’t have to be.” 

The world’s surging demand for renewable energy has enabled the mining industry to thrive even during the pandemic.

Critical minerals such as nickel, cobalt, and copper are seen as vital for creating electric vehicles (EVs), their large-scale batteries, as well as wind and solar farms.

According to the Mines and Geosciences Bureau (MGB), up to 470 applications are awaiting approval for the exploration of minerals such as copper, chromite, nickel, and cobalt, as of April 2023.

“The covid pandemic showed that the mining industry is one of the more resilient sectors and was in fact a key source of US dollar inflows for the country,” said Martin Antonio G. Zamora, president and chief executive officer of Nickel Asia Corp.

Nickel Asia is the Philippines’ largest producer of lateric nickel ore and the only nickel company with processing plants.

The mining industry’s gains come as the Philippines aims to strengthen green initiatives to accelerate decarbonization.

The country has committed to reduce greenhouse gas emissions by 75% by 2030 and has pledged to help limit global warming to less than two degrees Celsius under the Paris Agreement of the United Nations Framework Convention on Climate Change.

At the same time, consumers’ shifting attitudes towards mobility have propelled the growth in the demand for nickel, a key ingredient in lithium-ion batteries used in EVs.

Global EV sales increased by 43% to 3.24 million units in 2020, data published by Sweden-based consultancy EV-volumes.com showed.

For 2023, it projected global EV sales to reach 14.3 million, up 36% from 10.52 million in 2022.

“By the end of 2023, we expect 40 million EVs in operation, counting light vehicles, 73% are BEVs (battery electric vehicles) and 27% PHEVs (plug-in hybrid electric vehicles),” it said.

Global Ferronickel Holdings, Inc. President Dante R. Bravo said the outlook for nickel remains bright primarily because of the accelerating growth of the EV sector.

“Although an oversupply in the nickel market will likely persist until 2026, deficits are expected from 2027 onwards,” he said.

Intergovernmental organization International Nickel Study Group estimated the global demand for nickel to increase by 11% to 3.22 million tons in 2023.

The Philippines saw a slight increase of 1.13% to P132.21 billion in metallic mineral production value in 2020, driven by improved nickel volumes, data from the MGB showed.

In 2022, the value surged by 31.73% to P238.05 billion on the back of higher nickel prices and robust metal production.

The nickel group accounted for 49.39% of the total output value at P117.58 billion. This came as the price of nickel went up to $11.86 per pound from $8.35 per pound.

“This strong performance can be attributed largely to the contribution of TVI Resources Development, Inc. (TVIRD) located in Zamboanga del Sur and OGPI in Nueva Ecija,” the MGB said.

Kaycee Crisostomo, communications and marketing director of TVIRD, said new technologies emerged as mining companies now use dry stacking technology to store filtered tailings — the silty and sand material left once the metals are extracted. This is an alternative to building tailings storage facilities.

“The country’s vast natural resources provide opportunities for TVIRD to explore and harness renewable energy sources to support its decarbonization targets and pursue a climate-resilient future for its communities,” he said.

The company plans to build solar power plants to augment the power requirements of its mine sites in Surigao del Norte and Zamboanga del Sur.

Global Ferronickel’s Mr. Bravo said nickel presents a compelling outlook due to the “global shift to smart and sustainable cities, which require technology and materials made from minerals such as nickel.”

In the three months to March, EV sales in the country totaled 2,535, according to the Electric Vehicle Association of the Philippines (EVAP).

EVAP President Edmund A. Araga said the launch of new EVs by Audi, Porsche, Jaguar, and BYD in 2021 paved the way to get the interest of the high-end market.

“We believe that another roadmap for the mining industry is needed,” he said, citing the “tons of opportunity” that can be gained.

He said it is essential to work with the government to make sure that the plans will roll out along with standardized policies to protect the country.

The opportunity ahead includes an estimated $1 trillion in untapped reserves of copper, gold, nickel, zinc, and silver.

The Philippines has 30% of land area identified for potential mining resources, only 1.4% of which are active mining sites, the MGB said.

In a bid to boost the industry, the DENR in 2021 lifted the four-year-old ban on open-pit mining for copper, gold, silver, and complex ores.

Meanwhile, Philippine mining companies have explored processing to transform mineral products into higher-grade materials.

“TVIRD has learned from experience that precious metals like gold and base metals like copper can and should be processed in order for the industry to benefit from the added value of semi-finished products,” Ms. Crisostomo said. Philippine mining companies have also explored processing to transform mineral products into higher-grade materials.

“TVIRD has learned from experience that precious metals like gold and base metals like copper can and should be processed in order for the industry to benefit from the added value of semi-finished products,” Ms. Crisostomo said.

For Mr. Bravo, the industry needs support from the government to attract investments by simplifying the processing of permits and tax structure, and bringing down power costs, among others.

“Mining should be given the necessary support from the government to grow responsibly and sustainably,” he said.

Why renewable energy has gained more support from power generators

CASEY HORNER-UNSPLASH

By Ashley Erika O. Jose, Reporter

TWO recent events — the pandemic and the Russia-Ukraine war — have forced the energy sector to look at renewables not just as a clean power source but as an indigenous resource less susceptible to logistical disruptions.

For decades, conventional energy sources such as coal and natural gas have dominated the country’s energy mix. But after the two disruptive events, the government had to reshape its strategy for the country’s energy security.

The Philippines’ energy sector is now looking at renewable energy (RE) and new green technologies not just for power supply sufficiency but also to accelerate the country’s target of a just energy transformation.

“While the pandemic brought about a drop in demand for power, the Russia-Ukraine conflict, on the other hand, reminded us of the volatility of the commodities market that underpins our current energy system,” said Joseph Lacson, chief investment officer of Aboitiz Power Corp. (AboitizPower).

“The spike in global prices on coal, as one example, compelled AboitizPower to seek means to run our plants at even greater efficiency so that we could continue delivering on our mandate of a secure, affordable energy supply,” he added.

The listed energy company of the Aboitiz group has set a goal of 50:50 renewable energy and thermal capacities by 2030. It has set a target of building an additional 3,700 megawatts (MW) of renewable energy that will grow its capacities to 4,600 MW by 2030.

“AboitizPower is the largest, diversified RE platform in the Philippines and we have ambitious plans to invest even more in RE in the coming years. New technologies such as offshore wind, floating storage, battery systems, provide new means in which to achieve those activities but they come with corresponding risks and unknowns,” Mr. Lacson said. 

To date, AboitizPower has around 3,962.25 MW of attributable net sellable capacity. The company placed its renewable attributable net sellable capacity at 928.42 MW.

INDIGENOUS RESOURCES
The country’s energy sector is seen to have abundant potential in the renewable energy field considering the vast untapped indigenous resources.

As of end-2022, renewable energy accounted for 22.13% of the country’s power mix, with coal still dominating the power generation with a 59.57% share.

Since the pandemic, the government has set a target to increase the share of renewables to 35% by 2030 and 50% by 2040, which forces companies to rethink their strategies.   

The strategy includes looking for energy sources and technologies to complement the fuel powering their plants. Those with ambitious RE targets are seeing the need to include battery energy storage systems.

“We have to ensure that renewable energy is complemented by energy storage systems as well as other sources of power and technology,” Energy Secretary Raphael P.M. Lotilla said during the BusinessWorld Insights forum on July 26 at the Shangri-La hotel in Bonifacio Global City.

Mr. Lotilla said the government is placing renewable energy as the key to attaining security, sustainability, and affordability of electricity prices.

For clean energy provider First Gen Corp., other technologies are needed to support the intermittency of renewable energy.

“Their variable and intermittent nature though necessitates that we match them with more grid capacity and storage to account for the fact that they’re not there when night falls or on cloudy and windless days,” Federico R. Lopez, chief executive officer of First Gen, said.

First Gen is aiming for 13,000 MW by 2030, of which about 9,000 MW will be the share of renewables.

He said renewable energy will not only help deliver the country’s energy requirements but will also accelerate the country’s sustainability goals by helping reduce greenhouse gas emissions.

First Gen, through its subsidiary FGEN LNG Corp. is one of the seven proponents of liquefied natural gas (LNG) terminals in the Philippines.

LNG, despite the volatility of prices in the market, is being put forward as a key to addressing the country’s energy needs due to the expected depletion of the Malampaya gas field.

“Our efforts remain focused largely on helping to reduce the carbon intensity of the electricity grid and then ultimately to decarbonize it.  We’re making it our mission to shepherd the energy transition to Net Zero,”  Mr. Lopez said.

The Malampaya gas field is the Philippines’ only indigenous source of natural gas. Its supply is expected to decrease next year. Currently, Malampaya gas is fully contracted to First Gen’s natural gas power plants with a combined capacity of 2,011 MW or 20% of Luzon’s energy requirements. 

Aside from LNG and renewable energy, First Gen is also looking at other emerging technologies that can also offer baseload energy supply.

“Of course, over time, we must look toward repowering our natural gas facilities with green fuels like hydrogen as these become more feasible, or they can be decommissioned outright before 2050,” Mr. Lopez said.

“As such, there is a need for a low carbon emission fuel like natural gas to act as the bridge fuel that’s technically more suited for complementing the variable nature of renewable energy,” he said, adding that the company will also focus on setting a net-zero emissions target.

AboitizPower’s Mr. Lacson said the company acknowledges that RE needed to be complemented by other technologies and traditional sources of power.

“AboitizPower’s overall targets remain the same. To deliver energy security, affordability and reliability in a sustainable manner, we aim to expand and have a 50-50 mix in our generation portfolio between thermal and renewable energy in the next 10 years,” he added. 

Meanwhile, Manila Electric Co. (Meralco) said that it is looking at “long-term” solutions in reshaping the company’s strategy from the impacts of the pandemic.

Manuel V. Pangilinan, the company’s chief executive officer and chairman, said the power distributor is eyeing nuclear power and gas to meet the country’s energy demands.

He said that while the company is also rolling out its plan to venture into other emerging green technologies, Meralco is setting its plan on nuclear power and conventional sources like gas because it can provide the country’s needed supply.

Call center industry sets sights on countryside expansion

FREEPIK

By Beatriz Marie D. Cruz, Reporter

THE Philippine call center industry is aiming to grow in rural areas to support inclusive growth, according to industry leaders.

“With 70% of the workforce in Manila and 30% in the countryside, the vision for 2028 entails a minimum of 40% in rural areas and a maximum of 60% in Metro Manila,” Rosario C. Bradbury, managing director of the Contact Center Association of the Philippines, said in an interview with BusinessWorld.

The IT and Business Process Association of the Philippines (IBPAP), along with the Department of Information and Communications Technology and Leechiu Property Consultants, introduced the Digital Cities 2025 initiative in 2020.

The program aims to transform rural areas into thriving business hubs and prime choices for international investments, according to IBPAP.

The 25 digital cities are scattered across Luzon, Visayas, and Mindanao.

“As an association, our goal is to help enable them to grow,” Ms. Bradbury said. “Our vision is to become the world’s number one for digital enabled customer services.”

This is in line with the 2028 roadmap for the information technology (IT) and business process management industry, which seeks to grow at 2.5 million full-time workers and at P59 billion in revenue by 2028.

In 2022, the industry generated P32.5 billion in revenue, up from P29.5 billion in 2021, and saw an increase in full-time workers from 1.44 million to 1.57 million.

There have been significant countryside expansions in Cebu, Davao, Bacolod, Pampanga, and Laguna, according to IBPAP President and Chief Executive Officer Jack Madrid.

Over 70,000 new jobs were created outside of the capital region, marking a 17% increase from 2021. “By the end of 2022, 31% of the sector’s total headcount, or 486,000 full-time workers, were in the countryside,” Mr. Madrid said in an email interview.

Four “levers” would expedite the achievement of the industry’s 2028 targets — policy support and ease of doing business, talent development, infrastructure, and marketing, Ms. Bradbury said.

Emerging from the coronavirus pandemic, the industry has embraced diverse workflows to enhance service quality, with a specific focus on remote work and new technologies, according to Mr. Madrid.

“Remote work presented numerous advantages, but companies realized that, to make it successful for them, they had to invest in culture, training, and technology,” he said.

About 30% to 40% of employees work remotely while 60% to 70% are onsite, he noted.

Amid changes brought about by the pandemic, it was necessary to maintain the quality of the workers’ outputs, Concentrix Senior Vice-President and Country Leader Amit Jagga said.

“After the pandemic, we realized all the more that staff experience and engagement make the difference in terms of organizational success, as the pool of available talent is also changing and expanding, and new types of work are created with phenomena like gig economy and freelancing adding to the competitive landscape in the war for talent,” Mr. Jagga said in a Viber message.

Some companies have implemented innovative solutions that minimized internet usage.

“We also needed to reassess our collection of software and technology tools. If they operate online, they were designed not to consume excessive bandwidth,” said Jenny R. Constantino, Country Manager of RealPage based in Texas.

She also highlighted the importance of nurturing a positive work culture to elevate work quality.

“The work environment affects the way people work, and you really need to adapt to how they manage their personal lives and work within their homes. So, that, to me, is an adjustment we have learned in the process,” she said.

GENERATIVE AI
Contrary to popular belief, the industry considers the emergence of generative artificial intelligence (AI) a blessing rather than a curse, according to Ms. Constantino.

“A tool can tell me if a call has a client that’s frustrated,” she said, noting how AI has even enhanced the services of her company.

“AI is useful for us as we operate in areas of hire, how we manage our operations, productivity and performance…[as well as] thinking of the right tools in order to support the clients that we have,” she added.

She said that AI assists call center workers in addressing numerous customer queries in a short span of time.

In the past, a supervisor would listen to calls for quality assurance and feedback, but now AI can handle that task, Ms. Bradbury noted.

“This technology has been present in this industry for a long time… It’s a matter of reallocating your personnel to roles where they can contribute greater value to the industry now,” stated Ms. Constantino said.

Research and advisory company Gartner said that by 2026, the call center industry will possibly cut costs by up to $80 billion by replacing humans with AI chatbots.

By 2026, the call center industry will possibly cut costs by up to $80 billion by replacing humans with AI chatbots, according to research firm Gartner .

AI “isn’t about reducing headcount but upskilling and re-skilling teams to operate smarter and to deliver higher value work,” Concentrix’s Mr. Jagga said.

Moreover, employees working within the industry still grapple with wage and tenure-related problems, according to a labor group.

“It’s actually the workers who are experiencing [the effects of] inflation more because of the higher prices,” Emman D. David, co-convenor of Alliance of Call Center Workers, said via phone call. “Our wages are indeed higher than minimum but it’s really not enough.”

Workers are placed in floating status when companies need to downsize. “Or worse, our performances are used against us,” Mr. David said.

Call center workers need to be pushed to speak up against issues plaguing their sector, he added.

“Problems are only addressed collectively if there’s an issue that is urgent or pressing.”

A proposed law that institutionalizes the Magna Carta for call center workers has been pending at the House Committee on Labor and Employment.

“I think the challenge for us is to be able to renew our organization [to unionize] in order to convince to challenge our fellow workers that this is something that we should fight for,” Mr. David said.

Advancing diversity, equity and inclusion in the workplace

FREEPIK

By Sharon G. Dayoan

IN TODAY’s dynamic and interconnected business landscape, the importance of diversity, equity and inclusion (DEI) cannot be overstated. Companies that prioritize DEI initiatives reap numerous benefits, from outperforming their competitors and attracting top talent to fostering a culture of creativity and collaboration. Beyond financial gains, DEI also plays a significant role in shaping a company’s reputation, as consumers and investors increasingly seek ethical and socially responsible businesses to support.

But how does DEI really look like in the workplace? In recent years, we have witnessed a remarkable shift in the work environment, particularly in regard to gender representation. As DEI initiatives have gained momentum, more women are breaking through the glass ceiling and taking up positions at the board level. The underrepresentation of women in leadership roles has long been a challenge, but now, progressive companies are actively working toward gender parity and promoting women’s voices in the decision-making process. This shift not only leads to better corporate governance but also sets an inspiring example for future generations, demonstrating that diversity is key to success at all levels of an organization.

Organizations like the NextGen Organization of Women Corporate Directors (NOWCD) in the Philippines, a nonprofit organization that advocates gender diversity on corporate boards and executive positions, play a crucial role in advancing the DEI conversation. As a trustee at NOWCD, we build a community that provides a platform for women leaders in the corporate world to share insights, experiences and best practices with fellow Filipina leaders. More specifically, NOWCD is committed to engage with various stakeholders to advocate board diversity and inclusion, increase membership to build a pipeline of board-ready women directors and develop programs to support the transition of C-level women executives to the B-suite.

Championing DEI in the workplace has been increasingly becoming a focus for large corporations in the Philippines and across the globe. Board leaders should ensure their commitment to DEI, actively communicate their advocacy to their employees and hold themselves accountable in achieving them.

Now more than ever, businesses should integrate DEI practices into their organizational models and policies. Embedding DEI into policy by securing the senior leadership’s commitment and creating a committee dedicated to DEI will drive not only conversations but concrete actions in achieving equity and women empowerment.

By integrating diverse hiring practices, businesses can minimize unconscious bias and ensure fair evaluation among candidates joining the organization. Setting measurable goals in achieving DEI and properly monitoring and reporting its progress can help identify areas for improvement to adjust strategies accordingly.

Offering training as well as mentorship and sponsorship programs anchored on DEI can help raise awareness and break the bias surrounding gender equality. Board leaders should also promote equal policies and benefits to all employees, fostering a culture of inclusion and openness in the workplace.

Another initiative is through Women’s Empowerment Principles, of which KPMG in the Philippines is a signatory. As its chairman and CEO, our firm adopts this set of principles established by UN Women and UN Global Impact in advancing gender equality and women empowerment in the workplace, marketplace and community.

Efforts in pushing forward DEI comes in many forms, and companies are embracing various practices to foster an inclusive environment that celebrates diversity. From actively working to eliminate biases from the hiring process, ensuring that all candidates have an equal opportunity to showcase their skills and potential, to investing in employee training and education, business leaders, together with the government and regulatory bodies, have recognized the value of establishing a culture of care — driving systemic changes and ensuring that fair and inclusive practices are adhered to. Collaboration between the public and private sectors is crucial to accelerate DEI initiatives, leveraging collective efforts for greater impact.

The importance of diversity, equity and inclusion in the workplace transcends mere corporate buzzwords; it is the key to unlocking the full potential of businesses and individuals alike. The journey will be challenging and will take time, but together, we can effect positive change and pave the way for a stronger and more equitable society.

 

Sharon G. Dayoan is the chairman and CEO of KPMG in the Philippines.

Philippine telcos strategize to leverage AI, Internet of Things

PHILIPPINE STAR/MIGUEL DE GUZMAN

By Justine Irish D. Tabile, Reporter

TELECOMMUNICATIONS companies in the Philippines are getting ready to take advantage of the increasing adoption of advanced technologies, according to industry executives.

Artificial intelligence (AI) and the internet of things (IoT) continue to gain traction in the country, and telecom companies are capitalizing on their strength to cater to the rising demand for better connectivity, Converge ICT Solutions, Inc. Co-Founder and Chief Executive Officer Dennis Anthony H. Uy said.

“AI will be a game changer in the industry for sure,” he said in an e-mail interview.

“We’re also seeing a more ‘hyper-connected’ or IoT approach in the country; this is not new of course, but being a broadband provider, this is where we want to leverage our strength.”

Telcos may use AI to be more predictive and, eventually, prescriptive in how they operate, according to Roderick S. Santiago, network head at PLDT, Inc. and Smart Communications, Inc.

“We can double the capacity and speed of thinking of this AI by using a five-nanometer and later on three-nanometer (chips),” he said in an interview.

“Those are key innovations that we could see in the next few years to be able to help us to better serve our customers.”

The Philippines’ Trade department has introduced an AI roadmap to steer technology use for local industries’ regional and global competitiveness.

AI adoption could potentially elevate the Philippines’ gross domestic product by 12% by 2030, amounting to around $92 billion, the department said in a statement.

Meanwhile, DITO Telecommunity Corp. is looking at the potential use cases of the fifth-generation (5G) technology in the Philippines, according to Adel A. Tamano, the company’s chief administrative officer.

“We are looking at what is happening in our partners in China because they were the first ones who adopted 5G technology and are extensively using it in manufacturing, seaport and airport operations, and in fact even in agriculture. We wanted to see how it can be adopted in the Philippines,” he said in an interview.

In a report by S&P Global Ratings, 5G population coverage in the Philippines is still between 60% to 80%, on par with Malaysia and falling behind Australia, China, New Zealand, South Korea, Hong Kong, Japan, Singapore, Taiwan, and Thailand.

The ICT industry landscape has been disrupted by the pandemic, policy changes, and the adoption of new technology, prompting companies to realign priorities.

The public health crisis shut down businesses and transportation, impacting traditional brick-and-mortar establishments and goods transportation. However, telcos experienced increased demand, particularly for connectivity and data due to remote work and study.

As for Globe Telecom, Inc., the pandemic caused a 2% decline in service revenues in 2020 compared to the previous year.

“This was due to the impact of quarantine restrictions on the overall economy,” said Maria Yolanda C. Crisanto, chief sustainability and corporate communications officer at Globe, in an email interview.

More Filipinos integrated their work, school, shopping, and other activities from home, leading to increased data consumption. This shift contributed to the rise in data revenue’s share of Globe’s total revenues, increasing from 71% in 2019 to 76% in 2020.

“The greater need for connectivity and digital solutions during the pandemic served as an impetus for the Globe group to more aggressively pursue innovations that will solve Filipinos’ daily pain points,” said Ms. Crisanto.

Converge’s Mr. Uy said that instead of downsizing during the pandemic, the company opted to hire more individuals and expand its workforce to support the ambitious growth of its fiber broadband network.

“What I can see in the industry is that it is in a very disruptive situation. Our first disruption was the pandemic … and then the next disruption was the SIM (subscriber identity module) registration law,” he said.

The SIM registration law pushes people to be now more attached to their numbers and phones and discourages single-use SIM cards, DITO’s Mr. Tamano said.

“I think what’s good for us, and for the industry as a whole, is that we now know who our revenue-generating base is, and then we will just need to build on that,” he said.

OUTLOOK
While there was moderated growth in home broadband, the expansion of fixed-line subscribers outpaced the contraction of fixed wireless subscribers, Unicapital Securities, Inc.’s Senior Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message, referring to the telcos’ first-quarter performance.

“This trend is likely to continue as mobility improves, offset by an increase in spending power due to easing inflation.”

There is sustained demand for data, playing a pivotal role in driving the mobile segment, despite a reduction in subscriber count due to inflation and SIM registration, Mr. Temporal also noted.

“Elevated inflation in the initial months affected prepaid subscriber count. With inflation easing, the mobile segment is expected to benefit.”

“Nevertheless, we remain concerned about the potential impact of terminated SIM cards, accounting for 35% of total subscribers, following the expiry of the SIM registration period.”

Apart from the surging demand for data and the adoption of mobile internet, the government’s initiatives to drive digital transformation will also contribute to industry growth, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.

“The Philippine government and businesses are increasingly embracing digital transformation to enhance efficiency and improve customer experiences,” he said. “ICT companies can play a significant role in providing the necessary technology solutions and services.”

Mr. Temporal also highlighted potential opportunities for the sector, including the emergence of new use cases for 5G, hyperscale data centers, and the sustained value creation of fintech companies, particularly Globe and Smart.

Exploring partnerships and collaborations will uncover new growth avenues, expand service offerings, and broaden market reach, according to Mr. Arce.

The industry also faces significant risks, such as intense competition, regulatory changes, and cyber threats, he added.

“Overall, while the Philippine telco and ICT industry offer considerable opportunities for growth, companies must navigate the challenges posed by competition, regulation, and technology disruptions to stay ahead in the market.”

“As technology evolves rapidly, staying updated on emerging trends and consumer demands will be vital for sustained success,” he also said.

The future of art: Bridging the traditional and the digital

BW FILE PHOTO

By Brontë H. Lacsamana, Reporter

FOR a sector of society that takes inspiration from the world and channels it into creative output, the pandemic made everything seem smaller, darker, and bleaker. Movement was restricted, people stayed put, and physical spaces for sharing and showcasing art were limited.

But somehow the world also became larger. Artists did online commissions, communities formed around digital art, and institutions utilized technologies like QR codes and hybrid displays to bring art to the people.

Trickie Colayco-Lopa, one of the founders of Art Fair Philippines, reports that art collecting shifted seamlessly to online and messaging platforms in the past few years.

“With regards to commercial art activities, I think any interruptions occurred briefly, in the beginning of the lockdown, but recovered quickly once online platforms became available,” she said in an e-mail to BusinessWorld.

Art Fair Philippines, a long-standing beacon of the local art scene, tapped into that very quickly and highlighted digital art in its 2021 online edition, its own adaptation to the lockdowns which made its regular onsite fairs in a Makati carpark and park unfeasible. In 2022, the online visitors to its hybrid online-onsite exhibition were triple the number of its physical visitors.

“We discovered that we have a sizeable digital art and crypto art community here in the Philippines, impervious to any of the developments in the cryptocurrency market. These artists, not cryptocurrency investors, work with technology as their medium to make art,” Ms. Lopa said.

In the 2023 fair, ArtFairPH/Digital was cemented as an official section, putting the spotlight on digital media work that incorporates and engages with computer technology, animation, virtual or augmented reality, the metaverse, or non-fungible tokens (NFTs). “Digital artists are a strong community, and they will continue to make art,” she said.

Ricky Francisco, Fundacion Sanso gallery director and Modern and Contemporary Art Festival (MoCAF) chairman, said that the shift that the pandemic caused has ultimately paved the way for newer and younger artists. On the potential of the digital world as a breeding ground for talent, he told BusinessWorld in an interview, “The traditional art system is against newer artists. Most galleries, especially established ones, don’t give chances, but there are a lot of younger people now who are into arts.”

Hence, many galleries and festivals have chosen to adjust to the times and go where the art community is. “I think there’s a real chance here to integrate the best features of technology into our existing art systems,” said Mr. Francisco.

DIVING INTO THE TECH
Fundacion Sanso is looking into blockchain, a technology that uses smart contracts to verify authenticity, as a way of combating art forgery.

“If we can document all the works on the blockchain, all provenance will be preserved every time an artwork transfers ownership,” he explained.

This year’s MoCAF also welcomed artists and designers who utilize artificial intelligence (AI) tools like ChatGPT or Midjourney — within certain limits. “By feeding their artworks there, by putting in a database of their own works, they can generate new ideas and then execute one in the traditional way. In that sense, it becomes a valuable tool and I think it’s here to stay,” he said.

Without such limits, however, these controversial AI tools can become a form of plagiarism, since they draw heavily from publicly available works despite the original artists not consenting to it.

Mia Rocha-Lauchengco, a co-director of Galeria Paloma, which is holding its very first Paloma Digital Art Awards this year, agreed with Mr. Francisco’s sentiment that AI tools are a useful supplement to an artist’s work.

“For our awards, because we are aware of AI’s copyright issues, we’ll only allow artists who use AI provided that the data sets, which means the images or material fed into the tool, are also by the same artist,” she said.

The new platform, which they formed to “get digital artists out of the woodwork,” is one of their efforts to legitimize the community.

“Digital art has been here for three decades. It’s nothing new. But for the longest time, it wasn’t considered fine art because it’s usually for commercial purposes like designs and layouts. That was the way for digital artists to earn a living out of it. Now, it’s different,” said Ms. Lauchengco.

At Art Fair Philippines, Galeria Paloma was one of the galleries that put up digital art, even holding discussions to educate those curious about what exactly it is.

Georgia Rocha-Chu, one of the gallery’s co-directors, explained that they initially got into the scene when they encouraged their painter-sculptor father, Carlos Rocha, to make digital art.

“From there, we met a whole community of digital artists who are so talented. The well of talent is so deep here,” she said. “Sure, when we started carrying digital art last year, we had apprehensions. But when we’ve found that it was the right track.”

She added that 75% of collectors that come to them are first-time digital art collectors, indicating a new world in terms of art.

LET’S GET PHYSICAL
All the galleries and festivals interviewed by BusinessWorld for this piece echoed the sentiment that the traditional and digital art worlds can benefit each other and the greater art market if they exist and work in conjunction.

This means that physical spaces are still a major part of the equation, especially now that regular foot traffic has returned.

Ms. Lopa of Art Fair Philippines said: “We realize how much more enjoyable it is to appreciate and peruse art live. Hence, the big comeback of our audience for 2023.”

For malls that transform their halls into exhibition spaces, displaying art was never discounted even during the pandemic.

Bonifacio Global City (BGC) Estate Association executive director Jun Galvez said that the Van Gogh Alive interactive art exhibit in 2019 was very successful. While planning for the next AI-made multi-sensory experience, COVID-19 arrived and so did the restrictions meant to control its spread, halting their plans.

“Now that we’re back to normal, we want to continue providing immersive experiences because we don’t have a lot of these kinds of shows in the Philippines. The result was overwhelming before and it proved that Filipinos are into art, especially digital art,” Mr. Galvez said. This is why the One Bonifacio High Street mall will host a similar exhibit, called “Wisdom of Da Vinci,” this August.

Geraldine “Dindin” Araneta, one of the Art Fair Philippines founders, added that new galleries, exhibitions, and fairs have either continued despite the pandemic or cropped up over the last few years.

“It indicates an active art market, and artists are occupied with production for the market,” she said in an e-mail.

Ms. Chu of Galeria Paloma maintained that the bridging of traditional and digital art is simply inevitable, what with the demand for both in full swing.

“Galleries are now more open. Collectors are also more curious. In terms of a trajectory, the only way is up,” she said.

The triumphant return of theater

Tanghalang Pilipino’s Anak Datu

By Giselle P. Kasilag

ANAK DATU was Tanghalang Pilipino’s (TP) first live production after emerging from the COVID-19 pandemic and the resulting lockdowns. A deeply political musical drama, it recounts the 1968 Jabbidah massacre and the birth of the Moro National Liberation Front using a short story by National Artist Abdul Mari Imao as the base material. It was staged in 2022, at the height of political tension from the presidential election, in an atmosphere of historical revisionism and disinformation. With a thorny subject matter and complicated health protocols, there was little expectation that the show would attract enough of an audience to break even. Yet after the first weekend, the company reported sold-out shows. Clad in face masks and armed with alcohol sprays, people came, raved about the show on social media, and encouraged others to see it.

It was the return-to-live-theater scenario that TP artistic director Fernando “Nanding” Josef dreamed of but never dared to hope for. Live performance was among the sectors that were worst hit by the lockdowns. Theater, by its very definition, is a community activity meant to be experienced in person. Shifting to online outlets is not the same.

But they tried it anyway. TP streamed past performances and created new content for two years. While those activities did not bring much income, they led to invitations to conduct workshops and masterclasses for schools, non-governmental organizations, and local government units. That created new income streams that TP is continuing to pursue now that the pandemic restrictions have been lifted.

But the company had been aggressively developing many different avenues to improve revenues even before the pandemic. Thus, when the lockdowns began, they were in a strong financial position to weather the storm.

This was not always the case. In 2008 Mr. Josef, then a full-time actor, received an urgent phone call from businessman Antonio Cojuangco, a TP board member. Mr. Cojuangco wanted him to return to the company that they helped found to set things straight.

TP was in debt and no amount of belt-tightening could save it. Mr. Josef told the businessman to either give him the money or just close shop. He received the money and buckled down. Fifteen years later, he is still at the helm of Tanghalang Pilipino.

That TP was in the red is not a surprise. Many artistic endeavors begin as passion projects and are fueled by the need to express oneself creatively. Financial stability is not always a priority — until the bills need to be paid.

What is impressive is the company’s ability to stay in the black since the bail-out. Changes in budgeting and spending habits, coupled with creative marketing strategies prepared them for the rainy day — which arrived in 2020 with a virus.

As a resident company of the Cultural Center of the Philippines (CCP), TP receives an annual stipend of P1 million and the use of the Center’s theaters. That, along with ticket sales, grants, and sponsorships form the bulk of the company’s income.

A season consists of four to five shows. Depending on the venue budgets range from P500,000 for a show at the CCP Little Theater to P1 million for a show at the Main Theater. The latter increases drastically if it is a musical, ranging from P1.5 to P2 million. But this is greenlighted only if they are able to get a grant to cover the additional cost. The idea is to use the CCP’s smaller theaters and have more performances per show. A typical show can run for three to four weekends with a total of 12 to 16 performances.

The average TP ticket ranges from P500 to P1,500. There have been discussions about raising ticket prices but given that their main audience are students, there is a conscious effort to stay affordable. A single show at the Little Theater has the potential to earn at least P240,000 while a show at the Main Theater can raise about P600,000. But as the company gives senior/student discounts and lower ticket rates for bulk orders, this eats into their revenues.

The biggest expenditures are the talent fees of the actors and production team, sets and costumes, and rights paid to the playwright. But the show budgets are not the company’s only expenses. TP has a working Board of Trustees, and a full-time administrative, promotions, and marketing staff. And they maintain the Actors’ Company – the pool of artists who perform in their productions.

So, pursuing other sources of revenue is crucial. An example was in 2018 when TP presented their season to the board of Okada Manila. The result was a P10-million grant as part of the casino hotel’s program for corporate social responsibility. The amount represented financial stability that TP had not experienced in a long time.

But no cash infusion would matter if the resources were not allocated efficiently. Mr. Josef credits company manager Carmela Millado for keeping them within budget. She, along with the members of the Artistic Committee, have managed to rein in Mr. Josef’s extravagant ideas and offer more budget-friendly solutions.

And it is this same efficiency and resourcefulness that is driving the company’s return to the stage. More than the pandemic, it was that dark chapter of being in debt that is fueling TP’s creativity and encouraging more partnerships.

VIRGIN LABFEST: HITIK
One such partnership is the Virgin Labfest (VLF). Jointly managed by TP, Writer’s Bloc, and the CCP, the program was created in 2005 to develop and support new playwrights. One-act plays are staged in a three week-long festival, allowing “virgin” writers to experience seeing what they have written come alive with professional actors, directors, and in an established theater.

In its current set-up, the CCP allocates funds to pay for the fees of the playwrights, directors, actors, designers, royalties, licenses, and other collaborative artists. TP makes its Actors’ Company available to the program, along with its costumes, sets, and props. Writer’s Bloc manages the submissions and sifts through the material for the screening committee.

VLF has grown to become one of the most important events in the Philippine theater calendar. It recently staged its 18th edition, returning to the theater for a 100% live festival after three years of online and hybrid set-ups. The relief is evident in production manager Sandie Molina Javier’s demeanor.

“Originally, akala namin mawawala, o yung biglang titigil (we thought it would disappear or would suddenly be stopped),” confessed Ms. Javier. “Kasi nga reliant ka na face-to-face (Because it is reliant on face-to-face performance). It went online. It was a challenge for everyone.”

VLF grappled with the inadequacies of the technology being utilized for something it was never intended for. Rehearsals via video conferencing did not evoke the same collaborative energy, plus varying signal strengths led to delays that would halt rehearsals. Devices being used ranged from standard monitors to tiny phones. And attempts to make actors appear as if they were facing each other on screen were largely unsuccessful.

Still, a lockdown VLF took place.

In 2022, the decision was made for VLF to return to the live stage. But given the strict health protocols and the infection surges, it was a hybrid version. During the first two weeks, all the performances were held live, recorded, edited, then uploaded for streaming.

Because of the streaming, they discovered a previously untapped market: people who were unable to come to the theater for a variety of reasons. They were living in the provinces or abroad, had disabilities that made it difficult to attend shows physically, or did not have the time to watch on the show date. VLF employed a pay-per-view scheme to monetize the content.

The live staging had its own challenges. Seating capacity was severely limited based on pandemic guidelines. All participants received antigen tests. Groups were segregated into bubbles and closely monitored.

This year, with capacity limitations fully lifted, they chose to exercise an abundance of caution. Testing was still available. Masks and alcohol were provided for both participants and audience members. All these things added up.

Despite the many safety protocols in place, they wondered if the audience would return.

They came.

“For this year, ang capacity ng Tanghalang Ignacio Gimenez (TIG, the CCP’s blackbox theater) was 290,” she explained, speaking in a mix of Filipino and English. “First week, we hit more than 50% of that. Second week we were hitting more than 200 persons. By the third week, we were sold out. We had to turn people away.”

But is VLF making money? “It depends on who you are talking to. If you base it on the amount that we spend versus what comes in from ticket sales or from merchandising…. It’s not even break even,” Ms. Javier admitted.

But VLF is not a commercial endeavor. It is a program whose objective is to develop new playwrights and it is highly successful. Good ticket sales are just the cherry on top. On its 18th installment, practically every single production was lauded and garnered critical acclaim. When these plays are picked up by theater groups and even film companies, that’s when the commercial success may come.

REPERTORY PHILIPPINES: CAROUSEL
But critical acclaim is always sweeter when coupled with commercial success. Repertory Philippines (Rep) claimed both crowns with its first post lockdown production: Rodgers and Hammerstein’s Carousel — a success that surprised even the company’s artistic director, Liesl Batucan.

Every single show was sold out. The feedback from critics on this fresh take on a classic was largely positive as well. But the road to this sold-out sweep was long and hard.

Rep’s 2019-2020 season consisted of Stage Kiss, Anna and the Tropics, Carousel, Rep Unplugged, and Snow White and the Prince. Only Stage Kiss pushed through. On the day that the curtain was supposed to rise for Anna and the Tropics, the government announced the lockdown. Everything was cancelled.

“It was a very phenomenally tough time for theater, for the world, for everyone,” Ms. Batucan confessed. “There was a brief moment where everyone was in shock because this was unprecedented. So we needed to quickly recalibrate so we could stay connected to our audiences and our communities. This, we did online.”

Stuck at home, many parents were searching for activities for their kids. Rep’s Workshop for the Performing Arts was immediately redesigned for a video-conferencing format and became one of the more popular options. It was expanded to include voice, costume design, and other aspects of theater.

They developed original virtual content called “Repisodes” that were streamed online for free. Like VLF, Rep discovered new audiences since the content could reach the provinces and abroad.

But since Anna and the Tropics was a completed production even though it could not open, everyone still needed to be paid. As a private foundation, Rep does not receive financial support from the government. The company funds itself so every peso needs to be spent wisely.

“I would call us internally funded,” said Ms. Batucan, “because we do have a working amount that we can tap into, but our income is generated predominantly from ticket sales, and sponsorships, and kind souls donating. That’s still something we are working also on, fostering all these partnerships. And production costs are buffered when we are able to get sponsorships in kind.

“We are PCNC (Philippine Council for NGO Certification) accredited which means the donations that come to us can have a tax write-off. That’s one thing we worked on in recent years. This is also a viable source of funding,” she added.

Rep’s Theater for Young Audiences was another important financial pillar for the company. It would bring busloads of students to Rep’s 800-seat home theater, Onstage Greenbelt (which was closed this year with the redevelopment of Greenbelt 1).

While it seems that Rep has many sources of income, the company is known for high production values. Like TP, the biggest expenditure is the artists’ fees for the actors, designers, and production crew. But unlike TP, Rep needs to pay rent for the theater. A substantial part of the budget is allocated for sets, costumes, props, lighting, and music. And because they acquire material from foreign sources, royalties – often quoted in dollars – also account for a show’s higher cost. Thus, the budget for a typical Rep production is larger, at least P4 million. That was the cost of Carousel.

“It was such a risk but we needed to take that risk already at that time because I was able to get a venue grant for the CCP,” Ms. Batucan said. “We were at the Tanghalang Ignacio Gimenez. That was a blessing from God! Maybe, without that venue grant, we might not have been able to mount Carousel. [We were] reeling from the losses of the pandemic — two years of that with no revenue. We were putting out material like ‘Repisodes.’ We had online material but nothing significantly revenue-generating. We had to dip into our existing funds. It was very difficult.”

With a smaller budget, the original vision for Carousel — a cast of over 30 with a 16-piece orchestra — had to be scrapped. It was downsized to 14 performers and no orchestra, instead they used a two-piano score.

Carousel sold out 17 shows. With ticket prices ranging from P1,000 to P3,000 and a seating capacity of about 280, the production expense was recovered after just one performance. The rest was much-needed replenishment of Repertory’s coffers that were severely depleted during the lockdowns. Indeed, it was revenge theater at its finest when it was needed the most.

9 WORKS THEATRICAL: TICK…TICK…BOOM!
As the last to reopen among the major theater companies, 9 Works Theatrical’s executive director Santi Santamaria admitted being worried that they may have missed out on revenge theater.

While the successes of Anak Datu, VLF, Carousel, and Full House Theater Company’s Ang Huling El Bimbo were encouraging, he was afraid that the appetite of the audience had been sated. So, the company opted to be conservative and return to material that they already knew: tick…tick…Boom!

Jonathan Larson’s musical is about a composer pressured to choose between passion or stability — a dilemma artists contend with every day of their lives, but more so during the pandemic. It was a fitting piece to reopen the company which chose to shut down during the lockdown. Shutting down made the most sense for them given their unusual situation.

Unlike other theater companies, 9 Works has a unique approach in the way they plan their year. There is no specific structure to their season, no set number of shows that they are required to produce, and no specific content that they need to focus on.

“We don’t want to be boxed in,” Mr. Santamaria explained. “So whatever is available to us, and at the same time [if] it’s something we’re passionate about or we love at that specific moment, then we’re very open to it.”

It does not maintain a pool of actors. It does not have a home theater either, a venue is chosen depending on the requirements of the production. They do not have a set budget per show either. The price tag swings wildly depending on the size of the cast, the royalties, and the venue, among other costs.

It is the material that they choose to produce that dictates all the variables that are often set in stone in other companies. This approach provides unprecedented flexibility and helps keep the company sustainable. They are able to keep overhead low and allot more funds directly into the productions.

“The strategy is very simple,” said Mr. Santamaria. “You do the math… We need to make a profit because we need to prepare for the next show, and the next show.”

But their math leans towards generosity, providing higher than standard pay for their actors and staff. Thus, the budget per show can be three or four times that of Rep’s. At one point, they breached the P20 million mark. They do whatever it takes as long as the math computes.

The year 2020 was expected to be a big one for 9 Works. The year before they produced the Apo Musical and Himala, winning many awards for their efforts. They were preparing to build on those successes with two major shows when the pandemic hit.

The math told them to stop.

“Nothing. I decided that the best way to deal with this was just to don’t do anything. Don’t move.”

They were approached about streaming their material online but no assurances could be made guaranteeing that it wouldn’t get copied so they declined. When other companies started to re-open even with the threat of infection surges, they opted to wait, unwilling to risk show cancellations should actors get sick.

Reopening later than everyone else had its advantages. They were able to observe others and formulate a safer plan to return to the stage. Mr. Santamaria was adamant about starting small so tick…tick…Boom!’s cast of three actors made sense. But they decided to double the cast to make sure that there would be someone to step in should an actor get sick.

The nagging fear though was if they were too late to take advantage of revenge theater. But they were not. Tick…tick…Boom!’s original run was extended from 11 shows to 14. The critics have been raving about the restaging. Interest is high and tickets are selling. The last show is set for Sept. 3.

It appears that Philippine theater is truly on the mend. New material is being staged for an appreciative audience including The Reconciliation Dinner and Ibarra. Not everything is a blockbuster like Carousel, but people have been going out and buying tickets.

Despite these success stories, Philippine theater is still grappling with many challenges that are keeping it from achieving its full potential. Infrastructure is now a major concern. With the closure of the CCP (the main building will be closed for five years while undergoing major rehab), all performing arts groups are competing to book a handful of theaters.

As Mr. Santamaria pointed out, there is a dearth of medium-sized theaters: seating capacity jumps from TIG’s 290 to Newport Theater’s 1,500. Those in the 500 to 800 seat range are few and not all have modern equipment, good locations, and ample parking.

Decades of economic challenges have made it difficult to develop a culture of institutionalized patronage for the arts. According to Ms. Batucan, very few companies give cash outright, with most preferring to give in kind. Thus, Rep’s PCNC accreditation is a crucial first step to encouraging companies to donate.

And with theater being a favored form of dissent, Mr. Josef is steeling himself for possible repercussions for being vocal about criticizing the government. He is not afraid, he said. But he does recognize that the political situation will have an effect on TP’s future.

But the biggest challenge for the theater is also the biggest challenge that the metropolis is facing today: traffic. It literally keeps people away from the theater.

But still, they are all optimistic.

“We’re working on it,” said Ms. Batucan. “We’re working on getting the government support that we need. But meantime, we just have to rise up to the challenge.”

Globe brings together strength, reliability, sustainability, and brand love

Everyone deserves a reliable connection, services that innovate, and a company that listens. Globe’s latest achievements are more than accolades; they are the company’s commitment to making your life better.

As a super brand that brings together strength, reliability, sustainability, and brand love, here’s what Globe’s milestones mean for you:

Reliable Connectivity in Your Hands

Ever experienced service interruptions while using your mobile device? Being named the Most Reliable Mobile Network in the Philippines by Ookla®, Globe ensures that your connection remains consistent so you can work, learn, and play without worries.

Globe’s been winning in the reliability game for the past five quarters, from Q2 2022 all the way to Q2 2023. Its latest scorecard for the first half of 2023 shows a Consistency Score of 83.64% and marks it as the most available all-technology mobile network, with a rate of 92.63%. This is the result of the company’s huge investments in network expansion and upgrade in the past several years.

Quality of Service You Can Experience

You deserve the best, and Globe’s status as the Philippines’ Strongest Brand by Brand Finance is a promise to provide you with exceptional services.

Brand Finance gave Globe an impressive AAA rating, a brand value of US$2.028 billion, and a solid Sustainability Perceptions Value (SPV) of USD 194 million. These numbers show how Globe’s been doing with all the different services it offers. It’s been on a roll with 5G, bringing it to 74 more locations in just the first three months of the year, and even taking it global. Globe is also revolutionizing the scene with cutting-edge tech solutions in areas such as finance, health, education, and entertainment to cater to your diverse needs.

Committed to a Greener Future for All

Globe has been recognized as an industry leader in integrating sustainable practices in its operations. They made it to the list of Climate Leaders in the Asia Pacific region for the second year in a row, as recognized by the Financial Times and Statista for their efforts in reducing GHG emissions and implementing green network practices within its operations. They are one of three Philippine-based companies that made it to the list.

Globe has implemented several eco-friendly initiatives, including green network solutions, off-grid tech, and even using renewable energy in key facilities. And it does not stop there. Globe is getting suppliers and partners on board with the green movement, all aiming for zero emissions by 2050. With Globe, you and everyone else are part of a movement towards a greener future.

Staying Close to its Customers

Your voice matters, and Globe’s victories in the Consumer Choice Awards by Standard Insights reflect that it hears you.

About 37.5% of consumers surveyed said Globe’s got the strongest and most reliable signal around, proving its network reliability. Additionally, 24% gave Globe props for its exclusive deals and affordable prices, showing it knows how to give people what they want. When it comes to being creative with marketing, 41.2% think Globe’s leading the way in setting the bar high. And not to forget about the planet – 43.3% of the votes went to Globe for its solid commitment to doing things sustainably.

Earning Consumers’ Trust and Loyalty with Endearing Brands

Trust and loyalty are earned. In the 2023 PAHAYAG survey by PUBLiCUS Asia, Globe was named the Most Endeared Mobile Brand, with a rating of 65%. This reflects the depth of the brand’s connection with its customers.

From network reliability to brand strength, consumer choice, climate leadership, and more, Globe is committed to delivering excellence that fits your daily life. Its focus on innovation, sustainability, and the customers ensures that the company is not just a telco but a provider of solutions that truly matter to you.

Learn more about Globe by visiting https://www.globe.com.ph/.

Disclaimer: Reliability based on analysis by Ookla® of Speedtest Intelligence® data for all tech Consistency and Availability data in the Philippines based on Q2 through Q4 2022, Q1 2023 & Q2 2023. Ookla trademarks used under license and reprinted with permission.

 


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BusinessWorld at 36: At the forefront of changing business realities

BusinessWorld President and CEO Miguel G. Belmonte — BW FILE PHOTO

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

IT WOULD not be too much of an overstatement to say that the state of the journalism and media industry is in complete upheaval.

Over the past decade alone, serious issues such as the changing preferences of audiences, the proliferation of misinformation on social media platforms like Facebook and Twitter, and now the threat of artificial intelligence (AI) large language models like ChatGPT replacing man-made content generation, are challenging the foundations of the industry itself.

“Technology and the speed at which it is advancing is definitely reshaping the business landscape in all parts of the globe. Everything, as you know, is moving too fast,” Miguel G. Belmonte, president and CEO of The Philippine Star and BusinessWorld, said in an interview.

“Speaking in the context of media, technology is helping us in many ways on the one hand but it is also making aspects of our business more challenging on the other. It’s really a double-edged sword and it depends now how companies can harness the advantages to benefit their businesses in the long term.”

Mr. Belmonte noted that the emergence of ChatGPT and other generative large language models have been “real game-changers” with regard to how it can affect journalism and media moving forward.

“With AI and Web 3.0, things will get a bit more complex again, but that’s the world we live in right now, and businesses really have to be agile and to adapt to these evolutions.”

In fact, the World Economic Forum early this year outlined the risks of such technologies such as their ability to generate false and misleading content, to displace workers like writers and artists, or even to create a flood of fake news and disinformation across platforms and ecosystems.

“These are major changes, not only for media. I think this will affect all industries across the board. But we can only speak for ourselves. There are already changes we are seeing today, and there will be more,” he said.

BusinessWorld, when it was founded as Business Day in 1967, was Southeast Asia’s first business daily. It was founded on the promise of providing “competent and responsible reporting of the news” under Raul L. Locsin, who served as its first president and editor-in-chief.

Business Day has established itself as a leader in professional economic journalism in the Philippines and has established a tradition of excellence that continues to this day.

The paper celebrates its 36th year since its reformation under its new name in July 1987. With the ever-growing threats to truthful and responsible journalism, BusinessWorld now represents more than five decades of commitment to that vision, guided by Mr. Locsin’s ever-enduring belief that “A Newspaper is a Public Trust.”

Mr. Belmonte — who took the helm since the paper was acquired by MediaQuest Holdings, Inc. in 2015 through the Philstar Media Group — is confident that holding fast to these core values will see the newspaper to even higher strengths in spite of all the challenges. “It’s gotten more challenging, no doubt, what with having to bridge generational shifts and mindsets and even expertise since the younger generation are definitely more digital-savvy, but I would say that leadership style and qualities will remain the same regardless of how businesses evolve,” he said.

“Nowadays, change management is very critical; we need to ensure that people are coping with the pace of change so that it does not overwhelm anyone. Leaders also need to step back and listen more to ensure that the young ones are heard and that they have a stake in how the business is run.”

CHAMPIONING BUSINESS JOURNALISM AMID INDUSTRIAL REVOLUTION
Wilfredo G. Reyes, BusinessWorld’s editor-in-chief, previously noted that every challenge that emerges is an opportunity to not only improve, but become more in tune with the readers that the paper is trying to serve.

“How such challenges will affect the way we do things is something all of us in the company will have to discern and agree on as we beat the path ahead. There will always be a need for verified, accurate information, especially during emergencies and crises — more so for BusinessWorld’s public — but the question is in the form and mode of delivery,” he had said.

“People have been saying since at least the early 2000s that ‘print is dead’. I think that every medium has its use and it is up to us to find out what that is amid changing needs and preferences, and how to maximize each platform.”

Mr. Reyes further noted that past challenges like the coronavirus disease 2019 (COVID-19) pandemic opened a door for BusinessWorld to explore and fully commit to digital initiatives.

“Digital initiatives have been accounting for more of our products and revenues; that I now always refer to BusinessWorld more generally as a publication, rather than just a newspaper,” he said.

“If anything, this crisis has shown that, more than specific actions, we have the right mindset [to begin with] and processes to promptly tap emerging opportunities when and however they come.”

Cathy Rose A. Garcia, BusinessWorld’s managing editor, echoed the sentiment, noting in an interview that “the COVID-19 pandemic has brought significant changes to the business environment not just in the Philippines but around the world. Companies have had to rethink their business models and implement changes to ensure their survival.”

“News organizations have to fully embrace digital in order to meet the evolving expectations of the audience. BusinessWorld has adapted to this changing media landscape by expanding into multimedia news, podcasts, videos, as well as organizing webinars and economic forums,” she added.

She also noted that journalists also have to prepare for the next wave of disruption with the growing popularity of artificial intelligence technologies.

Companies are still facing many challenges as well, such as those of an economic slowdown, elevated inflation, high interest rates, supply chain disruptions, accelerated digital transformation, cybersecurity, sustainability and job-skills mismatch.

Ms. Garcia believes that organizations like BusinessWorld play a vital role in chronicling such issues and in “raising the public trust and preventing the spread of disinformation.”

“Public-service oriented media organizations should be instrumental in upholding standards for objectivity, fact-finding, reasonable arguments and ethics,” she said.

Mr. Belmonte holds firm that, even beset by challenges itself, it is still BusinessWorld’s responsibility to inform and educate the general public about issues posing risks to the Philippine business community.

“Whether we welcome it or now, change will affect industries across the board. It is inevitable, and no one is exempt from it. We have seen how the pace of change accelerated in the past two decades, and how it impacted the fortunes of companies and economies all over the world,” he said.

“For us at BusinessWorld, the only thing that is certain is that we will continue to invest in quality business journalism, which is the foundation of our company and has been our hallmark for decades. This is our way of taking to heart our responsibility to readers who consider us their most credible source of news and trends on business and the economy,” Mr. Belmonte added.

“By going back to our core values, best described by the overall principle that what we do here is a public trust. That informs all of our initiatives and efforts, and everything else flows from that conviction. One can think of a whole list of initiatives we can explore — of which there are many, to be sure — but forget that foundation and you are lost,” Mr. Reyes had said.

FROM STRENGTH TO STRENGTH
All things considered, BusinessWorld has emerged from the devastation caused by COVID-19 better than most. For PhilStar Media Group Executive Vice-President Lucien C. Dy Tioco, BusinessWorld greatly benefits from the reputation and respect it has garnered as a news organization for the past 36 years.

He cited the brand’s line of conferences and fora, such as the BusinessWorld Economic Forum and BusinessWorld Insights, which “provides a sharp lens to the issues and insights from our editorial expertise and its clout of influence” within the Philippine business landscape.

Mr. Reyes noted that it is this close proximity with the Philippine business community that has a symbiotic relationship with its growth.

“Constantly keeping in close contact with our market dictates BusinessWorld’s evolution as a platform for business content. So, this has lately been an increasingly fluid situation for us and that’s good, because it keeps us on our toes,” he had said.

“It has been quite a struggle to preserve core values through a fast-changing environment, but I think we have been doing just that and every challenge we have faced has made us more flexible, stronger and more relevant.”

As such, Mr. Dy Tioco said that it is BusinessWorld’s prerogative to stay on top of the latest trends and issues in the community.

“BusinessWorld continues to trailblaze into the future of business because of its unmatched acumen on how business behaves and the forces that impact its nature. That’s why this early we are already introducing the content subscription market with BWorldX and the soon to be launched Top 1000 Premium,” he said.

As for the future, Mr. Belmonte is not worried as much.

“I’m very happy with the progress BusinessWorld has made, and I’m especially proud that we have managed to outdo even other established media companies. Although we remain focused on our core business, which is publishing, we’ve been quite successful in leveraging on the strong brand of BusinessWorld to expand into events, business analysis and insight, as well as other multimedia efforts that amplify our strength as the country’s leading business title,” he said.

BusinessWorld has transformed into a fully multimedia company, and Mr. Belmonte is optimistic that the company can overcome the challenges that seem to beset the industry.

“Considering how we managed to weather one crisis after another, especially the pandemic which brought so many companies to their knees, I am confident that BusinessWorld will continue to be forward-thinking and innovative in dealing with whatever challenges may come in the future,” he concluded.

SEC wants to lower ‘friction’ costs and underwriters’ fees

THE SECURITIES and Exchange Commission (SEC) is seeking to reduce “friction” costs such as underwriters’ fees to help boost the country’s capital market.

“We’re looking at revisiting all that to try and knock down some of these friction costs. One thing I’m looking at is underwriters fees. If you’re familiar with the underwriters, these are the investment managers who focus and handle the issuances of the initial public offerings (IPOs),” SEC Commissioner Kelvin Lester K. Lee said during a media roundtable in Makati City last week.

“When I say frictional costs, the expenses for capital market issuances are generally high here in the Philippines because some are set by law and some are set by regulations,” he added.   

According to Mr. Lee, the move to reduce friction costs came after the SEC had recently been informed of high underwriters’ fees.

“We have not yet made the decision in the SEC on how to deal with it. But certainly, this bears looking at already at this stage. It (friction cost) was flagged to us. We were informed of a certain set of friction costs,” Mr. Lee said. 

Meanwhile, Mr. Lee said the SEC is “generally supportive” of House Bill (HB) No. 8958 or the proposed Capital Markets Efficiency Promotion Act as long as it is focused on supporting the capital market and lowering friction costs.

“We are generally for it — anything to lower friction costs, at this stage. But we still need to see the specifics of the bill. We haven’t seen the full bill yet,” Mr. Lee said. 

“The proposed amendments are in line with the efforts and initiatives of the SEC to boost the capital markets and support the growth of the capital markets and increase market liquidity,” he added. 

HB 8958, filed by Albay Rep. Jose Ma. Clemente S. Salceda on Aug. 23, seeks to lower the taxes on stock transactions to 0.1% from 0.6%, impose a 0.1% debt transaction rate except for government securities, and lower the dividends tax to non-resident foreigners to 10% from 25% to harmonize the cash and property dividends rate.

The bill, which seeks to amend the Tax Code, is pending with the House Committee on Ways and Means.

“[This tax reform] can be simpler and faster than the Passive Income and Financial Intermediaries Taxation Act or PIFITA, which might be too comprehensive and broad-ranging that time might not be on our side,” Mr. Salceda said in a previous statement. 

However, Mr. Lee said that one challenge to the proposal is the potential effect on the government’s tax collection and revenue generation efforts.

“I understand that the challenge is anytime you make changes to the taxes, it might affect the finances of the government because anytime you reduce taxes, it will affect the Treasury. I’ll defer to the Treasury on their position on that,” Mr. Lee said.

“But from our perspective, if the focus is on boosting the capital market, then we are generally game for it,” he added. — Revin Mikhael D. Ochave