Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 412

Philippines says China Coast Guard ship hit vessel near Thitu Island

A China Coast Guard vessel fires a water cannon at the BRP Datu Pagbuaya near Thitu Island, in the latest flare-up between Manila and Beijing in the disputed South China Sea. — PCG

A CHINESE COAST GUARD ship collided with a Philippine fishery bureau vessel in the waters off Thitu Island in the contested South China Sea on Sunday, Manila’s coast guard said.

The Philippine Coast Guard (PCG) said Chinese coast guard and maritime militia vessels carried out “dangerous and provocative maneuvers” against Philippine government ships near Thitu Island, where Manila keeps a military outpost in the disputed Spratly Islands.

Shortly after, a China Coast Guard (CCG) vessel fired a water cannon at the Bureau of Fisheries and Aquatic Resources’ (BFAR) BRP Datu Pagbuaya before ramming it, causing minor structural damage but no injuries, the PCG said.

“The harassment we faced today only strengthens our resolve,” PCG Commandant Admiral Ronnie Gil L. Gavan said in the statement. “Filipino fisherfolk depend on these waters, and neither water cannons nor ramming will deter us.”

Manila’s National Maritime Council said Chinese maritime forces conducted “illegal and reckless actions.”

The incident caused minor structural damage to the Philippine ship but no injuries, it said, adding that it would take diplomatic action in response.

“The proximity of CCG’s illegal and reckless actions to Pag-asa Island is of grave concern to the Philippines,” it said in a statement.

US Ambassador to the Philippines MaryKay L. Carlson condemned the incident in a post on social media platform X, describing it as a “dangerous ramming” and “aggressive actions” by Beijing that violate international law.

A CCG official said its vessel took “necessary control measures” to expel Philippine ships that it accused of intruding into waters of the disputed Sandy Cay that lies near Thitu Island, adding that its actions were “legitimate and lawful.”

“The responsibility lies entirely with the Philippine side,” CCG spokesman Liu Dejun said, based on a state-run China Military Online report.

Competing claims between the Philippines and China in the disputed waters have led to frequent confrontations involving repeated use of water cannons and sideswiping maneuvers against Philippine ships.

‘BULLYING TACTICS’
Beijing claims nearly all of the South China Sea via a U-shaped, 1940s nine-dash line map that overlaps with the exclusive waters of the Philippines and neighbors like Vietnam and Malaysia despite a 2016 ruling by the Permanent Court of Arbitration in The Hague that voided its claims.

“Despite these bullying tactics and aggressive actions, the PCG and BFAR remain resolute. We will not be intimidated or driven away,” Manila’s coast guard said.

Thitu, which the Philippines calls Pag-asa, is part of the resource-rich Spratly Islands. It is about 12 nautical miles (22 kilometers) from China’s air and naval base at Subi Reef. The island is the largest of the Philippine-occupied islands in Spratlys and is the only one with a permanent civilian settlement.

“Our presence in the Kalayaan Island Group is crucial for protecting the rights and livelihoods of Filipino fishermen,” it added, referring to the Philippine name for parts of the Spratly Islands claimed by Manila.

The Philippine government earlier this year launched a program aimed at sustaining the presence of Filipino fishers near contested areas in the country’s western seaboard, which have become flashpoints amid China’s increasingly assertive claims over the South China Sea.

The PCG and BFAR resupplied Filipino fishermen operating near disputed maritime features in the South China Sea on Oct. 8, defying heightened Chinese presence in the contested waters.

In a statement on Wednesday, the coast guard said it had delivered thousands of liters worth of fuel, tons of crushed ice and hundreds of food packs to fishermen off Scarborough and Sabina shoals, despite what it described as “aggressive actions” by Chinese vessels.

Access to Scarborough Shoal has been restricted for Filipinos after China seized control of the atoll in 2012 following a standoff with Philippines forces. It is a vast fishing lagoon that lies within the Philippines’ 200-nautical-mile exclusive economic zone.

Philippine Coast Guard said it deployed the 96.6-meter BRP Teresa Magbanua, its biggest multi-role ship, and the 44-meter patrol ship BRP Cape San Agustin to Scarborough Shoal to support six BFAR vessels that distributed aid to Filipino fishing boats.

Manila’s coast guard said it monitored seven China Coast Guard ships and 10 Chinese militia vessels in the disputed feature, with a Chinese Navy ship issuing a radio warning of a live-five exercise near the Philippine resupply point.

Philippine authorities also distributed about 48,000 liters of fuel to more than 35 fishing boats at Sabina Shoal within the heavily contested Spratly Islands, which are claimed by Taiwan and Vietnam aside from China.

The PCG deployed its second 96.6-meter multi-role ship BRP Melchora Aquino and the 44-meter patrol ship BRP Cabra to Sabina, where it accused a Chinese military helicopter of intimidating the Filipino fishing party by performing “low-altitude monitoring flights.”

Manila’s fishery bureau sent five ships to the disputed shoal, where eight Chinese Coast Guard ships and nine militia vessels were observed during the resupply mission, the PCG said.

The Marcos administration has recalibrated the Philippines’ South China Sea strategy, deepening security ties with allies and launching missions to support fishers in contested waters, all while pursuing upgrades to the country’s aging fleet. — Kenneth Christiane L. Basilio

Marcos’ legislative push seeks stability over turmoil

PRESIDENT FERDINAND “BONGBONG” R. MARCOS, JR. — PRESIDENTIAL COMMUNICATIONS OFFICE

By Chloe Mari A. Hufana, Reporter

PHILIPPINE PRESIDENT Ferdinand R. Marcos, Jr.’s post-midterm legislative agenda signals a shift from political maneuvering to institutional consolidation, but analysts warned that his cautious, technocratic approach risks entrenching the same structural weaknesses that have long held back the Philippine economy.

“Post-midterms, the Marcos administration has entered a phase less about electoral maneuvering and more about institutional consolidation,” Ederson DT. Tapia, a political science professor at the University of Makati, said in a Facebook Messenger chat.

“The agenda shows a preference for amending and modernizing existing laws rather than wholesale disruption, a cautious but steady approach… Marcos is stabilizing the system while signaling that governance is as much about endurance as it is about reform,” he added.

He noted that Mr. Marcos is pairing fiscal discipline with socially resonant programs such as village empowerment and scholarships to reinforce political stability while advancing selective reforms.

The President and congressional leaders have identified 44 priority bills under the common legislative agenda for the 20th Congress, with a focus on fiscal reform, transparency and governance modernization.

As he entered the second half of his six-year presidency, his administration’s flagship proposals were a general tax amnesty, amendments to the Bank Deposits Secrecy law and revisions to the Anti-Money Laundering Act (AMLA) — measures the administration said would strengthen financial integrity, expand revenue collection and align the Philippines with global standards.

Mr. Tapia added that the government’s focus on transparency, through long-delayed measures such as the Freedom of Information bill, bank secrecy waivers, and AMLA compliance, reflects an effort to bolster credibility both at home and abroad.

“Yet these are carefully offset by populist and constituency-friendly laws,” he said. “Marcos is not positioning himself as a reformist disruptor, but as a manager of equilibrium, marrying modernization with political pragmatism.”

He said such technocratic balancing could prove unsustainable without structural change.

Corruption issues are at the forefront of Mr. Marcos’ remaining three years in office following his State of the Nation Address in July where he called out government officials engaged in public works corruption.

Since then, various branches of the government have conducted several probes in the hopes of holding erring officials accountable.

Jose Enrique A. Africa, executive director of research group IBON Foundation, said the administration’s legislative priorities are “deeply inadequate” to address the economy’s structural weaknesses.

“The underlying limitation is that the agenda isn’t defined by a coherent development framework to transform the Philippine economy away from overdependence on low-productivity services, foreign capital and imports,” he said via Viber.

Mr. Africa said even the seemingly progressive measures — tax amnesties, infrastructure masterplans and agricultural support — fail to address the root causes of inequality.

“Corruption is so bad and enforcement so weak that amnesties just worsen noncompliance. The biggest beneficiaries are the wealthy and powerful.”

He added that agriculture, despite its importance, continues to receive “token” funding of barely 4% of the national budget.

He warned that the government’s investment policies remain tilted toward attracting foreign capital rather than strengthening domestic industries.

“Without strategic reviews of foreign investments, the Philippines risks deepening corporate control over public services,” he said.

A more effective strategy, according to the economist, would be to require reviews of foreign investments to assess their impact on national industrialization and security and to ensure investment deals prioritize technology transfer, local linkages and broader contributions to the Philippines’ industrial growth.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the government’s approach reflects an attempt to reconcile short-term fiscal goals with longer-term institutional reform.

“Measures like a general tax amnesty aim to boost revenue in the short term, while easing bank secrecy and updating the AMLA… reflect a push to improve transparency, accountability, and compliance with global standards,” he said via Viber.

“Together, they show a strategy focused not just on growth but on rebuilding trust and governance integrity as pillars for sustainable development,” he added.

The 44-item legislative package seeks to improve the investment climate, expand social services and bolster agricultural and energy security.

Key transparency-related bills were also included, specifically the long-delayed Freedom of Information measure, a proposal requiring civil servants to waive bank secrecy, and a Progressive Budgeting bill aimed at enhancing accountability in public spending.

The common legislative agenda also outlined digital-era legislation, including the Cybersecurity Act, Digital Payments Act, regulations on online gambling and rules governing the use of artificial intelligence in elections, underscoring the administration’s push to modernize the country’s regulatory framework.

The full list also covers proposed changes to agrarian reform and social service laws, infrastructure planning and the Local Government Code.

Trump’s envoy pick to strengthen PHL security alliance with US, analysts say

LEE LIPTON — US DEPARTMENT OF STATE official Website

By Adrian H. Halili, Reporter

THE APPOINTMENT of a new US ambassador to the Philippines is expected to deepen Washington’s political and security ties with Manila as the Trump administration refocuses on the Indo-Pacific region, analysts said.

US President Donald J. Trump last week named Florida businessman Lee Lipton as ambassador to the Philippines, replacing MaryKay L. Carlson, who held the post from 2022. The selection comes amid escalating tensions with China in the South China Sea and renewed US efforts to reinforce alliances across Asia.

“Such appointment may signal further deepening of our political and economic ties given that we are undoubtedly the US’ closest ally within the region, alongside Japan,” Josue Raphael J. Cortez, a diplomacy instructor at De La Salle–College of Saint Benilde, said in a Facebook Messenger chat.

The move underscores Washington’s intent to strengthen its regional partnerships under Mr. Trump’s second term, according to Chester B. Cabalza, founding president of the think tank International Development and Security Cooperation.

The long-overdue appointment of the envoy will trumpet the US’ foreign policy reset in the Indo-Pacific region, he said via Messenger chat. “Trump will embolden its relationship with Manila due to its strategic proximity in the first island chain.”

He said Mr. Lipton is expected to carry Washington’s message of deterrence toward Beijing, signaling that the US would step up its “ironclad” commitment to defend its allies and maintain freedom of navigation in the contested waters.

The Philippines has emerged as a key player in regional security, challenging China’s expansive maritime claims in the South China Sea and expanding defense cooperation with the US, Japan, and Australia. Manila and Washington are treaty allies under a 1951 Mutual Defense Treaty, which obligates both nations to come to each other’s aid in the event of an armed attack in the Pacific, including the South China Sea.

The alliance has faced renewed tests amid China’s growing military assertiveness, with Chinese vessels repeatedly harassing Philippine supply missions in the West Philippine Sea. The vital waterway handles an estimated $3 trillion in annual trade and is considered a flashpoint for potential regional conflict.

Mr. Cortez said Mr. Lipton’s appointment reflects the Trump administration’s intent to wield greater influence in the region as China challenges US dominance.

He added that Washington is likely preparing for contingencies involving Taiwan, which Beijing considers a breakaway province. “The Philippines, as the closest host of around three US military bases, will certainly be tapped to aid American troops in case of deployment,” he said.

China has threatened to annex Taiwan by force, a move that could endanger the island’s 23 million people and disrupt the global supply of semiconductors.

Analysts said Mr. Lipton could push additional fortifications at Philippine bases near the South China Sea, as both nations expand defense cooperation under their Enhanced Defense Cooperation Agreement (EDCA). The pact allows US access to military sites across key Philippine locations, including those near Taiwan and the Spratly Islands.

“The Philippines will become an instrument of intensified American presence in the region in the years and decades to come,” Mr. Cabalza said.

Higher allowance for PCG pushed

Philippine Coast Guard personnel during the flag ceremony for the Day of Valor. — COURTESY OF PCG

A PHILIPPINE SENATOR on Sunday pushed for higher subsistence pay for Coast Guard personnel, citing increasing risks during patrols in the South China Sea.

In a statement, Senator Sherwin T. Gatchalian said that he is looking to increase the subsistence allowance of the Philippine Coast Guard (PCG) amid the “harassments and challenges” they face during patrols.

He added that PCG personnel currently receive only P150 per day compared to P350 for other uniformed personnel.

“Even though the situation is challenging, what is important is that we sustain the high morale of our colleagues in the Coast Guard,” Mr. Gatchalian said. “Whenever you patrol the West Philippine Sea, not only do you risk your life, but you also assert our sovereignty.”

If implemented, the increased allowance can benefit about 20,000 personnel of the Coast Guard.

“The work of the PCG is not only for the Philippines but also for ASEAN. Anything that happens in the West Philippine Sea affects the entire region, even North Asia,” he added.

The South China Sea has become a flashpoint in the long-running territorial dispute between Manila and Beijing, with the latter claiming more than 80% of the disputed waterway.

In 2016, a United Nations-backed tribunal based in The Hague voided China’s expansive claim on the South China Sea, where more than $3 trillion worth of trade passes through each year, for being illegal. China continues to ignore this ruling. — Adrian H. Halili

UK reintegration network launched

THE DEPARTMENT of Migrant Workers (DMW) launched its first overseas National Reintegration Network (NRN) in London, United Kingdom over the weekend, extending livelihood and reintegration support to hundreds of overseas Filipino workers (OFWs).

Led by the Overseas Workers Welfare Administration (OWWA), the caravan featured the first international rollout of the NRN, a DMW initiative aimed at strengthening coordination among government agencies to help OFWs transition back home through livelihood, training and reintegration programs.

The network serves as a “one-stop reintegration support system,” formalized through a joint memorandum signed by 16 agencies, the DMW said in a statement on Sunday.

The caravan offered OWWA membership renewals, e-card printing, welfare assistance, legal consultations, health checkups and recreational activities, alongside booths from the Department of Trade and Industry, Department of Tourism, Pag-IBIG Fund, Social Security System and the Philippine Embassy in London.

OWWA reported that nearly 500 OFWs availed themselves of the services, including 270 who received new e-cards and 123 who sought reintegration guidance through the NRN.

The DMW said the London launch will serve as a blueprint for future caravans across Europe and other regions.

DMW Secretary Hans Leo J. Cacdac, Undersecretary Bernard P. Olalia, Assistant Secretary Francis Ron C. de Guzman and OWWA Administrator Patricia Yvonne M. Caunan spearheaded the event. — Chloe Mari A. Hufana

DBM sees P8.58-B tax from pickups

Vehicles are stuck in traffic along EDSA, Cubao in Quezon City, Aug. 18. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

ABOUT P8.58 billion is expected to be collected from the excise tax on pickups by 2028 under the newly signed Capital Markets Efficiency Promotion Act, a Department of Budget and Management (DBM) report said.

In an Oct. 10 document, “Technical Notes on the Proposed National Budget” for 2026, the DBM said the excise tax on pickups will generate P8.58 billion by 2028 for the Bureau of Customs (BoC).

Customs is projected to collect P2.80 billion this year, P6.46 billion in 2026, and P7.44 billion in 2027.

Pickup trucks have been exempted from excise tax under the Tax Reform for Acceleration and Inclusion Law, to support small business owners and professionals.

Assistant Commissioner Vincent Philip C. Maronilla previously said the pickup truck tax and potential rice tariff hike could offset the foregone revenue due to lower tariff on rice, electric vehicles (EVs), pork, corn, and mechanically deboned poultry meat.

In a separate statement on Sunday, the BoC said public auctions of seized and abandoned goods from various ports generated P106.93 million in the July-to-September period.

The BoC said the auctioned items include various consumer goods, vehicles, fuel products, industrial materials, furniture, and assorted merchandise from forfeited shipments.

The 17 auctions were handled by the BoC’s Auction and Cargo Disposal Division of the Port of Manila, Manila International Container Port, and Ninoy Aquino International Airport.

“Through the consistent conduct of lawful and transparent auctions, the Bureau fulfills its dual mandate of protecting government revenues and facilitating legitimate trade,” Commissioner Ariel F. Nepomuceno said.

The proceeds will contribute to the BoC’s run to achieve its P958.7-billion target for 2025, which will finance priority programs and essential public services.

Data from the Bureau of the Treasury showed that Customs collections edged up by 1.1% to P621.4 billion as of end-August, supported by efforts against smuggling and illicit trade.

The auction was in compliance with the mandate of Customs to dispose of seized and abandoned goods through public auction, negotiated sale, or donation, ensuring transparency and compliance with established procedures. — Aubrey Rose A. Inosante

CTA: NLEX not liable for Caloocan’s P13.4-M tax

CTA.JUDICIARY.GOV.PH

THE COURT OF TAX APPEALS (CTA) has ruled in favor of NLEX Corporation, voiding the P13.43-million local business tax (LBT) assessment issued by the Caloocan City government for lack of authority on the part of its Business Permits and Licensing Office (BPLO).

In a decision dated Oct. 8, penned by Associate Justice Henry S. Angeles, the tax court third division granted NLEX’s petition for review, effectively overturning the rulings of the Caloocan Regional Trial Court that earlier upheld the city’s 2019 assessment.

The dispute stemmed from Caloocan’s April 10, 2019, assessment demanding P13.43 million in alleged deficiency taxes from Tollways Management Corp. (TMC), which later merged with NLEX.

The city said the firm failed to promptly apply for business retirement in 2018, incurring taxes for the following year.

NLEX Corp., formerly Manila North Tollways Corp., argued that the assessment was void since it came from the BPLO instead of the City Treasurer, the sole authority empowered to assess and collect taxes under the Local Government Code and the Caloocan Revenue Code.

The CTA sided with NLEX, ruling that “the BPLO had no authority under the Caloocan City Revenue Code to issue the subject assessment,” rendering it void from the start.

Associate Justices Catherine T. Manahan and Marian Ivy F. Reyes-Fajardo concurred in the ruling. — Erika Mae P. Sinaking

Soldiers sent to tremor-stricken Davao towns

SOLDIERS prepare to transport residents of Mati City, capital of Davao Oriental, who sustained injuries caused by the strong tremor that jolted the province, Oct. 10. — JOHN FELIX M. UNSON

COTABATO CITY — The Army’s 10th Infantry Division (ID) mobilized more than a thousand soldiers from its units to assist in emergency response and relief efforts in tremor-stricken towns in Davao Oriental.

Major Gen. Allan D. Hambala, commander of the 10th ID, said on Sunday that among the first to respond and help villagers injured, as a result of the 7.4-magnitude earthquake that jolted the province on Friday morning, are personnel of two brigades of their division.

The assistant division commander of the 10th ID, Brig. Gen. Alvin V. Luzon, Brig. Gen. Jose Allan L. Taguba and Col. Harold M. Argamosa of the 701st and 1001st Infantry Brigades, respectively, are together overseeing the division’s disaster response operations in Mati City, the capital of Davao Oriental, and in nearby towns in the province.

The epicenter of the magnitude 7.4 earthquake last Friday morning was in Manay town in Davao Oriental.

Army officials the 10th ID dispatched to Davao Oriental for disaster impact mitigation efforts and Ednar G. Dayanghirang, director of the Office of Civil Defense 11 (OCD-11), confirmed on Saturday, that eight individuals in the province died while 531 others were rushed to hospitals due to tremor-related injuries.

Officials of the 10th ID, citing reports from local government units and the OCD-11, said the strong earthquake destroyed 111 houses and damaged 1,019 other structures in different towns in Davao Oriental.

The 7.4-magnitude earthquake that shook Manay and nearby areas in Davao Oriental early Friday was followed by a 6.8-magnitude aftershock in the evening of the same day.

Mr. Hambala said officials of units they dispatched to the province had reported that at least 70,471 families were badly affected by the disaster.

“Our soldiers are out there supporting the relief operations of local government units and the OCD-11,” Mr. Hambala said.

He said their emergency response efforts also cover the provinces of Davao del Norte, Davao de Oro and nearby areas in Region 13. — John Felix M. Unson

GOCC subsidies down nearly 12% in August

PSALM

SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) fell 11.89% year on year in August, the Bureau of the Treasury said.

The budgetary support to state-run firms totaled P8.02 billion in August, against P9.1 billion a year earlier.

Month on month, GOCC subsidies fell 17.64%.

State-owned firms receive monthly subsidies from the National Government to support their daily operations if their revenue is insufficient.

In August, the National Irrigation Administration (NIA) topped the subsidy list with P3.43 billion or 42.74% of the total. This was followed by the Philippine Crop Insurance Corp., which received P2.03 billion.

The National Food Authority (NFA) was granted P750 million in subsidies in August.

State-run firms on the subsidy list included the Intercontinental Broadcasting Corp.-13 (P337 million), the National Electrification Administration (P200 million), the Philippine Heart Center (P184 million), the Cultural Center of the Philippines (P150 million), the National Kidney and Transplant Institute (P124 million), the Philippine Children’s Medical Center (P114 million) and the  Philippine Coconut Authority (P101 million).

Other GOCCs obtaining subsidies of less than P100 million were the Sugar Regulatory Administration (P89 million), the Light Rail Transit Authority (P74 million), the Lung Center of the Philippines (P59 million), the Subic Bay Metropolitan Authority (P55 million), the Philippine Rubber Research Institute (P44 million) and the Development Academy of the Philippines (P40 million).

Also receiving subsidies were the Philippine National Railways (P31 million), the National Power Corp. (P30 million), the Philippine Institute for Development Studies (P28 million), the Philippine Health Insurance Corp. (P27 million), the National Dairy Authority (P23 million), the Center for International Trade Expositions and Missions (P20 million), the People’s Television Network, Inc. (P18 million), the Philippine Institute of Traditional and Alternative Health Care (P15 million), and the Metropolitan Waterworks and Sewerage System (P14 million).

State-run firms with subsidies amounting to P10 million or less were the Aurora Pacific Economic Zone and Freeport Authority (P10 million), the Southern Philippines Development Authority  (P7 million), the Philippine Tax Academy (P5 million), the Philippine Center for Economic Development (P5 million), and the Zamboanga City Special Economic Zone Authority (P4 million).

Receiving no subsidies were the Land Bank of the Philippines, the Small Business Corp., the National Housing Authority, the Bases Conversion and Development Authority, the Philippine Fisheries Development Authority, the Philippine Reclamation Authority, the Power Sector Assets and Liabilities Management Corp., the Tourism Infrastructure and Enterprise Zone Authority, and the Tourism Promotions Board.

In the first eight months, GOCC subsidies hit P70.25 billion, down 19.27% from a year earlier.

The NIA took in the most subsidies in the first eight months with P24.53 billion, followed by NFA at P8.68 billion.

Finance Secretary Ralph G. Recto has said that GOCCs are expected to generate P157 billion in remittances this year, with 53 remitting P116.84 billion as of September. — Aubrey Rose A. Inosante

Home improvement chain OBC projecting strong demand from Calabarzon, Central Luzon

STOCK PHOTO | Image by Lotus Design N Print from Unsplash

HOME IMPROVEMENT store Oversea Builders Center (OBC) said it is projecting strong demand from rapidly urbanizing areas like Calabarzon and Central Luzon.

In a statement, OBC said new housing developments and subdivisions continue to expand in those regions.

“These are the families OBC wants to serve: homeowners and builders who want to upgrade their spaces with better design and durable materials without paying luxury prices,” the company said.

Owned by Cebu Oversea Hardware Co., Inc., OBC recently opened a store in Kawit, Cavite, banking on the city’s rapid urbanization, proximity to Metro Manila, and steady influx of homeowners.

“We are not chasing fast expansion. We want to grow sustainably, area by area, adjusting to what each community needs. What matters is delivering the best experience at a fair price,” Cebu Oversea Chief Executive Officer Michael Co said.

Opened on Oct. 3, the new site along Centennial Road in Kawit occupies 5,847 square meters and targets the midmarket and high-end segments.

According to the company, the middle class is fast becoming a driving force of consumer demand.

Citing a study by the Philippine Institute for Development Studies, it said that around 39.8% of Filipinos were considered middle-income in 2021.

Fitch Solutions’ BMI projects consumer spending on household goods to grow to P270.4 billion in 2024 and to P354 billion by 2028.

“We are after being competitive. We are offering products we personally choose that meet international standards but are still within a reasonable price range,” said Mr. Co.

“You can walk in here, feel like you are in a high-end showroom, but go home with products priced for the middle class,” he added. — Justine Irish D. Tabile

Unlocking value through human-centric transactions

IN BRIEF:

• Successful transactions require leaders to prioritize transformative goals over mere deal completion, emphasizing a compelling vision that engages employees and drives long-term success.

• Addressing the human element of a transaction is crucial; fostering an environment where employees feel valued and supported significantly enhances the likelihood of successful outcomes.

• Organizations must be prepared to manage pivotal moments throughout the transaction process, leveraging decisive action and transparent communication to build trust and maintain momentum.

Transactions can serve as powerful catalysts for transformation when leaders create the right conditions for high performance. The EY-Parthenon CEO Outlook Survey indicates that 96% of global CEOs plan to engage in some form of transaction in the coming year. These transactions are essential components of corporate strategy, enabling businesses to enhance shareholder value and differentiate themselves in competitive markets. While they present unique challenges, transactions also provide opportunities to accelerate transformation and reshape a company’s future.

Research from EY identifies three key factors that contribute to successful transactions. First, bold leadership is crucial; 59% of transaction leaders believe that an organization’s capacity for transformation is vital for its long-term viability. The more ambitious the vision behind a transaction, the greater the potential for value creation. Second, addressing the human element of a deal is equally important as financial considerations. Leaders must foster an environment where employees feel valued and engaged. Finally, leaders should be prepared to navigate critical moments throughout the transaction process, as effective management can turn challenges into opportunities.

By focusing on these elements, leaders can significantly enhance the value derived from transactions. This article draws on findings from a collaboration between EY and the University of Oxford’s Saïd Business School, which examined transformation programs and gathered insights from senior leaders and workforce members involved in transaction-driven transformations.

In the Philippines, recent observations indicate a growing trend in mergers and acquisitions (M&A) across various sectors. In particular, there is a lot of investor interest in the consumer sector due to rapid urbanization and the growing middle class. There has also been increased M&A activity in the renewable energy (RE) space following the liberalization of foreign ownership in RE projects. This increase in M&A activities reflects the necessity for companies to consolidate resources and strengthen their competitive position in a rapidly changing market. Such transactions can enhance financial performance, but the company will need to focus on the integration of diverse corporate cultures and the importance of maintaining employee engagement throughout the transition process. Otherwise, the contemplated benefits of the transaction may not be fully realized.

EMPHASIZING BOLD LEADERSHIP IN TRANSACTIONS
To maximize value, leaders must prioritize transformative goals over merely completing transactions. Successful transformations involve operational changes that aim to improve performance and drive sustainable growth. However, transactions often face distinct challenges, such as tight deadlines, public scrutiny, and prolonged uncertainty.

Organizations frequently focus on finalizing deals rather than pursuing genuine transformation, which can lead to diminished value. Nearly half of transaction leaders report that they do not achieve the expected value from their transactions, with only 46% meeting their innovation key performance indicators (KPIs). Therefore, leaders should concentrate on establishing a transformative vision that engages employees, shifting the focus from mere completion to long-term success.

Moreover, fostering a culture of open communication and collaboration can empower employees to contribute ideas and solutions during the transition. This engagement enhances morale and leads to innovative approaches that can drive the success of the transaction. Leaders who actively involve their teams in the process are more likely to achieve desired outcomes and create a sense of ownership among employees.

CREATING CONDITIONS FOR SUCCESS
Establishing the right conditions is essential for fostering high-performance environments that empower employees to overcome challenges. A human-centric approach significantly increases the likelihood of successful outcomes. A compelling vision is critical; employees must believe in a purpose that transcends financial metrics. Additionally, adaptive leadership is necessary, as leaders should be present and responsive, actively engaging with teams to navigate the complexities of transactions.

Psychological safety is another vital aspect, as leaders must create an environment where employees feel secure and valued. By promoting disciplined freedom, organizations can empower teams to make decisions quickly, facilitating agile responses to challenges. Furthermore, collaboration across departments is essential for effective integration or separation. Leveraging technology purposefully can also help illustrate the potential of the new organization, enabling employees to visualize the benefits of the transformation.

NAVIGATING TURNING POINTS FOR MAXIMUM VALUE
Decisive action is crucial at various stages of a transaction to effectively manage employee turning points. Research indicates that nearly all transactions encounter pivotal moments, with 98% experiencing turning points that necessitate leadership intervention. As transactions become public, organizations must manage heightened uncertainty, and leaders should quickly form a deal team, establish clear governance, and support the workforce through effective communication. Transparency in decision-making is vital for building trust and addressing potential concerns.

Once the deal closes, the new leadership team must align with the transformative vision and establish new ways of working. Providing emotional support for employees is critical, as many may struggle to adapt to the new organizational identity. Celebrating early successes can reinforce the new entity’s direction and build confidence among employees.

EMBRACING TRANSFORMATION
Transactions have the potential to significantly reshape a business’ future. The approach leaders take in managing these deals will greatly influence the value derived from them. By fostering a bold vision for transformation and creating an environment where employees can thrive, organizations can navigate challenges and enhance performance, ultimately preparing for future transactions and transformations.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Noel P. Rabaja is the deputy managing partner, strategy and transactions leader, and markets leader of SGV & Co.

PBA Press Corps set to award Chot Reyes Coach of the Year

CHOT REYES — PBA

Manny Pangilinan is the Executive of the Year

AFTER two championships, three Finals appearances, and a long 75-game season, Chot Reyes now gets the icing on the cake.

The TNT mentor is set to receive a record-extending seventh Coach of the Year award from the PBA Press Corps as it holds the 31st edition of its Awards Night on Monday (Oct. 13) at the Novotel Manila.

Mr. Reyes, 62, unanimously got the nod of the men and women who regularly cover the PBA beat over San Miguel Beer counterpart Leo Austria in winning the coveted Virgilio “Baby” Dalupan Trophy.

Top sports patron and TNT team owner Manny V. Pangilinan shares the spotlight with his coach as he will be honored with the Danny Floro Executive of the Year award.

The 79-year-old business tycoon also serves as the special guest of honor and speaker of the annual event.

Mr. Reyes, the former Gilas Pilipinas coach, guided the TNT Tropang 5G to three straight Finals appearances in Season 49 and won the championships of the Governors’ Cup and Commissioner’s Cup, respectively.

But he was foiled in his attempt to score a first grand slam in the last 11 years when TNT lost against San Miguel in the Philippine Cup title series.

Nonetheless, his 48-27 (win-loss) record marked the best for the season, while the total 75 games that he coached is tied for the most since Tim Cone steered Alaska to a grand slam in 1996.

Mr. Reyes was the first ever recipient of the award named after the acknowledged “Maestro” of Philippine coaching, back in 1993 and repeated in 2002, 2003, 2009, 2011, and 2021.

Family and relatives of the late Dalupan will be attending the affair to personally hand out the award.

Other awardees include Magnolia’s Zavier Lucero (Defensive Player of the Year), Brandon Ganuelas-Rosser of TNT (Bogs Adornado Comeback Player of the Year), San Miguel’s Don Trollano (Mr. Quality Minutes), and Arvin Tolentino of Northport (Scoring Champion).

Completing the Press Corps’ honor roll for Season 49 are TNT’s Calvin Oftana (Order of Merit), the All-Rookie Team of RJ Abarrientos (Barangay Ginebra), Sedrick Barefield (Blackwater), Caelan Tiongson (Rain or Shine), Jordan Heading (TNT), Justine Baltazar (Converge), and Kai Ballungay (Phoenix), and Game 7 of the TNT-Barangay Ginebra Commissioner’s Cup Finals (Game of the Season). — Olmin Leyba

1...411412413...13,786Page 412 of 13,786
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube