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A growing sense of agency are among the human behavior trends shaping 2022  

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By Patricia Mirasol  

Five major shifts in human behavior will shape the world coming into the new year, according to the Fjord Trends 2022 report by Accenture, a global professional services company. The dominant theme – after two years of disruption – is the need to respond to the changes in how people relate to the planet, technology, brands, and each other.  

POST-TRAUMATIC GROWTH
An era of post-traumatic growth has taken shape this pandemic, the report found. It is manifesting in greater personal strength, stronger spirituality, deeper relationships, a more profound appreciation for life – and a growing agency enabled by side hustles. Today, for example, two million of the estimated 50 million plus creators on YouTube, Instagram, and Twitch make six-figure incomes from revenue models such as advertising, paid subscriptions, merchandise, or live and virtual events.  

Companies no longer only compete with each other. They also compete with everything else individuals want to do with their lives outside of work.  

The five report trends will challenge business leaders to rethink their approach to design, innovation, and growth, said Bronwyn van der Merwe, Accenture Interactive’s Asia Pacific (APAC) design lead and general manager for Fjord APAC.  

“Against the growing sense of agency that people have over their lives and changes in employee expectations and mindset, companies across industries must look inward and act immediately on any weak spots within their organization that might drive employees to quit,” she said in an e-mail to BusinessWorld.  

Ms. Van der Merwe pointed out that among the companies that have responded to this change are software corporation SAP and graphic design app Canva, both of which provide flexible work environments and options.  

CARE-FOCUSED LEADERSHIP
Staff retention hinges upon how organizations improve wellbeing across the board, the report also found. Worldwide, the pandemic has yielded a willingness to dialog on mental health challenges.  

Examples of businesses that address this need are online fashion retailer Zalora, which gives full-time employees mental health benefits, and hotel booking platform RedDoorz, which provides counselling sessions to its employees in Singapore, Indonesia, and the Philippines.  

Ms. Van der Merwe further shared that Accenture offers its employees tools like Thriving Mind, a self-directed learning experience for mental health.  

“How organizations design for all aspects of care – thoughtfully, with inclusivity and accessibility, with the right balance between physical and digital, and always having the individual’s best interests in mind – will be an important differentiator and a source of competitive advantage,” she told BusinessWorld.  

VALUES-DRIVEN CONSUMPTION
The other three behavior trends found by the report are the shift from immediate consumer gratification to a greater consciousness about the environment; the burgeoning cultural explosion in the metaverse; and the expectation to get answers at the moment of interaction.  

“As consumers overhaul all of their relationships, brands will be faced with two big responsibilities: taking care of the world today while also building its future in a way that’s good for the planet, for business, and for society,” said David Droga, CEO and creative chairman of Accenture Interactive, in a press statement. “The key lies within deeply understanding the impacts of those relationships and aspirations and converting them into potent business strategies that drive relevance and growth.”  

Businesses, as per the report, need to protect brand reputation by synchronizing marketing, customer service, and the supply chain. They also have to make strategic choices on how they answer customer queries in a way that builds trust.  

As values-driven consumption continues to rise, brands likewise need to design for the balance between affordability and sustainability. This, the report said, presents an opportunity for brands to break new ground.  

“Companies that offer ‘regenerative business,’ whether using recycled materials to create new products, or simply providing restoration services that extend a product’s life, will take the lead over their competitors in the coming years,” said Kelvin T. Si, Accenture Interactive’s delivery lead in the Philippines, in another e-mail to BusinessWorld.  

An earlier Accenture report found that at least seven in 10 APAC consumers look to brands to make it easier for them to buy or consume sustainably, added Ms. Van der Merwe.  

“All businesses must think about how they can create a better world in the process of doing business, in a time where supply chains are fragile, natural ecosystems are stressed out, and consumers are looking to brands for direction,” she said.  

Fjord Trends 2022 is crowdsourced from across Accenture Interactive’s worldwide network of about 2,000 designers and innovators in more than 40 locations.

Philippine supertyphoon Rai ‘exceeded all predictions’ – forecaster

PHILIPPINE COAST GUARD FACEBOOK PAGE

SINGAPORE – The rapid intensification that turned this week’s Typhoon Rai (local name: Odette) into the strongest storm to hit the Philippines this year surpassed all predictions, forecasters said, leaving nearly 400 people dead and almost a million displaced.While it’s unclear exactly how global warming is affecting the intensification of such storms, the UN’s climate change agency has found it is “likely that the frequency of rapid intensification events have increased over the past four decades” as temperatures rise.Before Rai underwent a process of rapid intensification, forecasters at first warned of a storm that could bring “considerable damage”, with winds of up to 165 kilometres (103 miles) per hour.“But the situation evolved very fast,” said Nikos Peñaranda, a forecaster who studies thunderstorms at the Philippines’ national weather bureau, speaking on Tuesday. “Our models weren’t able to predict the way the storm intensified, and it exceeded all our predictions.”In rapid intensification of storms, warm ocean water and differing wind speeds near the eye of the storm act as fuel to whip it up into a more severe event. In the case of Rai, the storm turned into a category 5 supertyphoon, with speeds similar to when a passenger airplane starts to lift off the ground.When it made landfall, winds of up to 210 km/hr were uprooting coconut trees, ripping down electricity poles, and hurling slabs of corrugated tin and wood through the air.A lack of real-time data and case studies of similar storms in the region made it difficult for forecasters to predict just how much Rai, or Odette as the storm is known locally, would intensify, said Peñaranda.“The challenge in forecasting rapidly intensifying events is just that the speed with which this occurs, often in a matter of hours, leaves less time for disaster risk reduction mobilisation and evacuations,” said Clare Nullis, media officer specializing in climate change at the World Meteorological Organisation (WMO).Hurricane Ida, a category 4 storm, experienced a similar intensification in the Gulf of Mexico hours before it slammed into the U.S. state of Louisiana in August.Ocean temperatures near the surface and at depths of up to 200 metres are rising around three times faster in this region than the global average, according to the WMO, making it fertile ground for more intense, less predictable storms.In the past three decades, the Philippines has recorded at least 205 tropical cyclones, the highest of any Asian country, according to EM-DAT, a publicly available database on disasters run by the University of Louvain. Nearly each one of has taken lives and caused millions of dollars worth of damage.By comparison, China, the second-most affected country, has seen 139, and Bangladesh, also prone to storms, has seen 42. — Reuters

Wilcon Depot launches first store in the city of Malaybalay, Bukidnon

Wilcon Depot, the Philippines’ leading home improvement and construction supply retailer, opened a new provincial store in the capital city of Bukidnon—Malaybalay on December 17, 2021.

With the hopes to end the year significantly, the company’s commitment to bring their high-quality products and excellent customer experience to more Filipinos nationwide has been fulfilled to the Bukidnon homeowners and builders.

New home in Malaybalay City

Wilcon Depot sees Bukidnon as the perfect home for its 73rd store nationwide. Aside from being a tourist destination, Malaybalay City envisions itself as a prime agri-industrial center in Northern Mindanao with a vibrant economy.  

Wilcon Depot Malaybalay is its first-ever store in the province and 9th store in the Mindanao region. It is also the 10th store to open this 2021. With a total selling area of over 7,000 square meters, the newly-opened store carries the wide product selection that Wilcon offers ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Building Materials, Hardware, Electrical, Appliances, and other DIY items.

Customers can shop daily from 8:00 AM to 7:00 PM at Wilcon Depot Malaybalay located at Purok 2, Sayre Highway, San Jose, Malaybalay City, Bukidnon.

Grand store opening celebration

Wilcon brings top-of-the-line products and home solutions with the highest quality standards, innovative, and sustainable features to all Bukidnons.

(L-R) Wilcon Depot AVP for Engineering Nicholas Agbing, Project Manager Isagani Robles, Malaybalay City Mayor Florencio Flores, Barangay Chairman of San Jose Bebina M. Kee, and Wilcon Depot AVP for Sales and Operations Ruben Flores

The store opening was celebrated with a ribbon-cutting ceremony led by Wilcon Depot AVP for Sales and Operations Ruben Flores and AVP for Engineering Engr. Nicholas Agbing with Malaybalay City Mayor Florencio Flores, Jr

Wide product offering

Wilcon Depot Malaybalay offers limitless home and building products and solutions. Discover the various exclusive brands and in-house brands like GROHE and KOHLER Sanitarywares, FRANKE Kitchen Systems, POZZI Bathroom Solutions, Sanitarywares, Whirlpool Bathtubs, Ceramics, and Shower Enclosures, ARISTON Water Heaters, GEBERIT Monolith Puro, MACROAIR HVLS Fans, BULL Outdoor Products, RUBI Tile Cutter, and REHAU Premium PPR pipes.

Sanitaryware Section

Premium quality Italian tile brands such as NOVABELL, ENERGIE KER, GARDENIA, IMOLA, HERBERIA, OPERA, CASTELVETRO, KERADOM, NAXOS, DOM, and VERSACE alongside with Spanish tile brands ALCALAGRES, GRESPANIA, ROCERSA, CIFRE, EMIGRES, KEROS, TESANY, ONIX, OSET, VITACER, GRUPO HALCON, MYR, ECO CERAMICA, and ETILES are showcased in their Tile Studio.

Asian tile brands are also available like ARTE, SOL, LOLA, HUANQIU, VERONA, PICASSO MOSAIC, ROMAN, MULIA, KIA, CHINA NATURAL GRANITE, BASEL, SAIGRES, and GEMMA.

Tile Section

HERITAGE Furniture and HEIM Home Interior, Furniture, and Decor are exhibited at the Home Living Showroom. The Appliance, Kitchen, Lighting section displays HAMDEN Kitchen Appliances, KAZE Ceiling Fans and Air conditioners, and ALPHALUX Lighting Solutions.

Home Living Section

HOMEBASICS and INTERDESIGN Housewares, BIRKE faucets and Bathroom Accessories, SEFA Specialty Bathroom Faucets, Bathroom Accessories, Shower Heads, and Kitchen Organizers, SUNCRUST BBQ Grills, LANDJACK Bicycles, CROWN and PRUSSIA Kitchen Sink QUARTEX Quartz Kitchen Sink, ELECTRON Generators, DIRECT HARDWARE, TRUPER Tools, P.TECH Builder’s Aid and Quartz Stone, FOREST Wood Products, IGLOO and RUBBERMAID Coolers, UNITED SOLUTIONS Outdoor trash bins, and SOLUTHERM PPR pipes and 304 stainless Steel Pipe Fittings are displayed in the DIY Section of the store.

DIY Section

Bigger and better home shopping experience

Wilcon Depot Malaybalay also provides the utmost customer satisfaction. It has redefined the home and building shopping experience through its Design Hub, Home Living Showroom, Tile Studio, and Architects, Builders, Contractors, Designers, and Engineers (ABCDE) Lounge, including their value-added services such as ample free parking spaces, reliable delivery service, and tile cutting service.

ABCDE Lounge

For a bigger and better home shopping experience, valued customers can also shop online at Wilcon by visiting shop.wilcon.com.ph. Shop for all your all-around home needs and have your items delivered right at your doorsteps or choose to pick-up in store. Online store customers can conveniently pay with their credit card, debit card, BancNet, and GCash.

To ensure a safe and convenient shopping environment in all Wilcon stores, the company continuously prioritizes the implementation of safety protocols for the health and well-being of both employees and valued customers. Wilcon also offers Browse, Call, and Collect or Deliver, and Wilcon Virtual Tour services to complement the in-store shopping experience. In addition, Wilcon provides contactless payment options like bank transfers, GCash, PayMaya, Instapay, PesoNet, WeChat, and Alipay for customers’ convenience.

Wilcon makes loyalty more rewarding for their valued customers by offering exclusive perks and discounts. The Wilcon Loyalty Mobile App allows customers to earn and check their points and convert their purchases to rewards after signing up. The Wilcon Loyalty Mobile App is available for download at the Google Play Store and App Store for free.

Store expansion plans

Wilcon Depot now has 18 branches in Metro Manila and 55 stores in key cities and municipalities of Luzon, Visayas, and Mindanao. 

The newly-launched stores represent Wilcon’s relentless commitment to providing its valued customers a more convenient and better home shopping experience by offering thousands of high-quality home improvement and building needs and excellent customer experience.

These store openings are part of their #FlyingHighTo100 store expansion campaign, wherein the company aims to have 100 operating stores nationwide by 2025, barring any unexpected external factors.

Start building big ideas for your home and shop now at Wilcon Depot Malaybalay at Purok 2, Sayre Highway, San Jose, Malaybalay City, Bukidnon from 8:00 AM to 7:00 PM.

 


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With warning for unvaccinated, Biden lays out plan to fight surging Omicron

Official White House Photo by Adam Schultz

WASHINGTON – U.S. President Joe Biden announced on Tuesday more federal vaccination and testing sites to tackle a surge in COVID-19 driven by the Omicron variant, and said 500 million free at-home rapid tests will be available to Americans starting in January.

Biden offered both a warning to the unvaccinated, who he said have “good reason to be concerned,” and reassurance that those who are inoculated can gather for the holidays despite the new variant sweeping the country.

“No this is not March of 2020,” Biden told reporters at the White House. “Two hundred million people are fully vaccinated, we’re prepared, we know more.”

Biden‘s remarks came as some cities and states imposed new measures aimed at protecting the public, including stricter vaccine mandates.

Striking a dire tone about the risks to the one-in-four American adults who are not fully vaccinated, Biden said they “have a significantly higher risk of ending up in the hospital or even dying.”

Biden noted that former President Donald Trump has also received his booster shot. “Maybe one of the few things he and I agree on,” he said.

The measures laid out on Tuesday include activating new pop-up vaccination clinics run by the Federal Emergency Management Agency and federal testing sites starting this week, including in hot spot New York City.

Biden also said that some 1,000 military doctors, nurses and medics have been deployed to support hospitals already being overwhelmed by COVID-19 patients in some areas.

Biden‘s pandemic response has been criticized https://www.reuters.com/world/us/rising-cases-omicron-highlight-holes-bidens-covid-strategy-experts-say-2021-12-20 for focusing on vaccines at the detriment of testing and masking, and for underestimating the impact of the anti-vaccine movement in the United States.

In his speech, Biden said Americans had a patriotic duty to get vaccinated and called out social media companies and TV networks for “peddling lies and allowing misinformation that can kill their own customers.”

The new federal measures will not be fully in place by Christmas, leaving many Americans scrambling to find available tests ahead of holiday gatherings and travel – and confused about whether it is safe to press ahead with their plans.

The Omicron variant, which was first detected last month and now accounts for 73% of U.S. cases, is causing infections to double in 1.5 to 3 days, according to the World Health Organization. It is not yet known whether it causes more serious illness than the Delta variant.

The rapid rise of infections is once again disrupting life across the country, canceling events from Broadway shows to professional sports.

In New York, Washington and other U.S. cities there were long lines for COVID-19 tests as people sought to find out if they were infected before celebrating the holidays.

“If I don’t, I could take a chance of sending it home to my family, and I’m not trying to do that,” said Ronald Tives as he lined up in Washington’s Farragut Square on Tuesday.

 

$100 FOR A BOOSTER IN NYC

With new infections spiking, local officials are also taking steps to encourage vaccinations, including boosters, and increase testing and mitigation measures.

New York City Mayor Bill de Blasio announced on Tuesday a $100 incentive for residents who get a COVID-19 vaccine booster at city-run sites by the end of the year.

The city’s public hospitals said they would ban most visitors. Starting on Wednesday, only hospitalized infants and children, women in labor and dying patients can have visitors. They must be fully vaccinated or show a negative COVID-19 test from the past 24 hours.

In California, Governor Gavin Newsom said on Twitter that all healthcare workers would be required to receive booster vaccines. The state is expected to announce additional measures on Wednesday.

Chicago will require patrons to present proof of COVID-19 vaccinations for entry to restaurants, bars, gyms and some other indoor spaces, effective Jan. 3, Mayor Lori Lightfoot said on Tuesday.

Biden noted that the Omicron variant is so contagious that it will infect vaccinated Americans but that they will be far less likely to become seriously ill.

These breakthrough infections are rising among the 61% of the country’s fully vaccinated population, including the 30% who have gotten booster shots.

Still, Biden told Americans that those who are vaccinated and follow guidance around using masks, especially while traveling, should feel comfortable celebrating the holidays as planned.

New COVID-19 cases rose 19% in the United States in the past week and are up 72% since the start of December, according to a Reuters tally.

The number of hospitalized COVID-19 patients has increased 27% this month, with hospitals in some areas already strained by the Delta variant that emerged earlier this year.

There have been more than 51 million infections and 810,000 coronavirus-related deaths reported in the United States since the pandemic began, the most of any country. – Reuters

China will be able to keep economic growth stable – state planner

REUTERS

SHANGHAI – China has the confidence, condition, and ability to keep economic growth at a reasonable level, a senior state planning official told the Xinhua News Agency.

The world’s second-largest economy faces multiple challenges heading into 2022, amid a property downturn and with strict COVID-19 curbs in some areas hurting consumer spending.

China should evaluate the likely impact of policies on growth before implementation, and “be prudent” in rolling out those with contractionary effects, Ning Jizhe, deputy head of the National Development and Reform Commission (NDRC), said in the interview that was published on Wednesday.

The country will make preparations for next year’s economic work in advance and “strive to stabilize economic operations in the first quarter, the first half and even the whole year”.

China issued 1.46 trillion yuan ($229.21 billion) in the 2022 advance quota for local government special bonds to help spur investment and support the economy, the finance ministry said last week.

China will step up government spending, strengthen support to manufacturers and small companies, and ensure price stability, Ning added.

China will also work to stabilise industry supply chains, focus on solving chip shortage issues, and step up monitoring of commodity prices, said Ning, who is also the head of the National Bureau of Statistics.

To aid economic growth, China will continue to implement proactive fiscal policies, step up efforts to build an integral domestic market, while further shortening the foreign investment “negative list”, Xinhua quoted Ning as saying.

China uses a so-called negative list to ban or limit foreign investment in some industries, such as telecoms or resources.

China will also combine cross-cyclical and counter-cyclical measures to prevent wild economic volatility, Ning said. – Reuters

Russia violates WTO commitments with import bans, substitution policies -USTR

WASHINGTON, Dec 21 (Reuters) – Russia continues to move away from commitments it made to join the World Trade Organization in 2012, the U.S. Trade Representative’s office said on Tuesday, citing agricultural import restrictions and import substitution policies.

In an annual report to Congress on Russia‘s WTO compliance, USTR said Russia in 2021 introduced new tracking systems for consignments of goods through supply chains and has maintained non-science-based agricultural import restrictions.

“Over the past year, Russia has continued its trajectory of an economy moving away from the guiding principles of the WTO: non-discrimination, freer trade, predictability, transparency, and fair competition,” USTR said in the report.

“Rather, Russia maintains restrictive at-the-border measures, institutes behind-the-border measures to inhibit trade, and implements an industrial policy seemingly driven by the guiding principles of import substitution and forced localization.”

The United States has raised concerns about Russia‘s actions and will “use all appropriate means to resolve the matter and keep Russia’s markets open to U.S. exports,” USTR said.

The report noted that U.S. bilateral work with Russia on agricultural trade issues has been limited since 2014 due to Russia‘s actions in eastern Ukraine, and engagement in the WTO on Russia‘s access barriers has been limited. But the agency said it will continue to meet with industry stakeholders to discuss their concerns and strategies to remove such barriers.

The report did not mention any new U.S. trade measures that could be taken against Russia should Russian President Vladimir Putin invade Ukraine. If that should happen, U.S. officials are considering tough export control measures to disrupt Russia‘s economy, a Biden administration official told Reuters, including halting Moscow’s ability to import smartphones, key aircraft and auto parts and other materials.  – Reuters

Bars, nightclubs to shut in Canada’s British Columbia as Omicron takes grip

British Columbia will shut gyms, bars and nightclubs while allowing fewer people at tables in restaurants and cafes through the Christmas holiday period to curtail the spread of COVID-19, the Canadian province’s government said on Tuesday.

The temporary restrictions, to take effect on Wednesday and stay in place until Jan. 18, also include a ban on all indoor social events and gatherings, and a capacity limit of 50% for all concerts, sports games and theatres.

Coronavirus infections are rapidly increasing in Canada, with several of the 10 provinces reporting big jumps as Omicron replaces Delta as the dominant variant.

“COVID-19 cases continue to increase at a concerning rate, and we must take stronger measures to help protect British Columbians and ensure our health-care system is there when people need it,” said the province’s health minister Adrian Dix.

The neighbouring province of Alberta, where cases are also rising, said it would restrict attendance in venues that can hold more than 1,000 people to 50% capacity, a move that will also apply to National Hockey League games and the World Junior Hockey Championship, which begins on Dec. 26.

Montreal, Canada’s second-largest city, declared a state of emergency earlier on Tuesday to combat the virus.

Quebec, Canada’s second most populous province, has also shut bars, gyms and casinos, and ordered people to work from home to try to reduce the rapid spread of the Omicron variant. – Reuters

AstraZeneca, Oxford aim to produce Omicron-targeted vaccine

AstraZeneca Plc said on Tuesday it is working with Oxford University to produce a vaccine for the Omicron coronavirus variant, joining other vaccine-makers who are looking to develop the variant-specific vaccine.

“Together with Oxford University, we have taken preliminary steps in producing an Omicron variant vaccine, in case it is needed and will be informed by emerging data,” a spokesperson for the company said in a statement.

Oxford did not immediately respond to a request for comment outside business hours.

The Financial Times first reported the news, citing Sandy Douglas, a research group leader at Oxford.

“Adenovirus-based vaccines (such as that made by Oxford/AstraZeneca) could in principle be used to respond to any new variant more rapidly than some may previously have realised,” Douglas told FT.

A lab-study last week found that AstraZeneca‘s antibody cocktail Evusheld retained neutralising activity against the Omicron variant.

Vaccine makers Pfizer/BioNTech and Moderna also previously said they were working on Omicron– specific COVID-19 vaccines. Moderna said hopes to start clinical trials early next year. – Reuters

Glimmers of hope for a brighter 2022

As 2021 comes to a close, many are restless about the possibility of entering another year living with the COVID-19 pandemic. The extent of the virus’ impact has left lasting impressions on the Philippine business community, and small and medium enterprises (SMEs) particularly felt the brunt of it most of all.

These effects are expected to linger. According to a recent report by the United Nations Conference on Trade and Development (UNCTAD), global trade growth for 2022 remains uncertain due to continued disruptions in worldwide logistics networks, increases in shipping costs, and a slowing global economic recovery.

“Lower-than-expected economic growth rates are generally reflected in more downcast global trade trends. Rising commodity prices and inflationary pressures may also negatively affect economic prospects and international trade flows,” the Global Trade Update said.

Moreover, the report said the recovery this year, which was characterized by large and unpredictable swings in demand, have resulted in an increased stress on supply chains.

“Logistic disruptions and high fuel prices have further contributed to supply shortages and spiraling shipping costs. In particular, the backlogs across major supply chain hubs that have characterized most of 2021 could continue into 2022 and therefore negatively affect trade and reshape trade flows across the world,” the report added.

Global trade in 2021 is expected to reach an estimated $28 trillion, a 23% increase from 2020. Much of this boost was due to a strong recovery in demand following the easing of pandemic restrictions, economic stimulus packages, and increases in commodity prices. However, other variables such as the global semiconductor shortage, geopolitical factors and the regionalization of trade flows, governmental policies affecting international trade, and debt burdens muddy the outlook for the coming year.

Despite the uncertainties, the Department of Trade and Industry (DTI) is keeping optimistic. DTI Secretary Ramon M. Lopez recently affirmed his confidence that the country may reach 6%-7% gross domestic product growth in 2022, as long as the proper management of the COVID-19 and the reopening of businesses continue.

“If all programs are set in place and the continuous recovery from the pandemic, we might be seeing 6% to 7% (growth) next year, being also an election year,” he had said.

“We keep on hearing and we keep on reminding that we need to manage this, and I guess (everyone) is still following the public health protocol for us to maintain this kind of momentum we are seeing and not have the surge like what is happening right now in EU (European Union) countries,” he added.

Mr. Lopez cited DTI research that while around 10% of business establishments remain closed, 20% of which have permanently stopped their operations, many new enterprises are registering their businesses amid the pandemic.

“People still have to earn and find another livelihood. So they must have closed that business but they are opening another businesses. Of course, they have to continue to earn, to pivot, (to) look for new businesses. That is the reason why we have the data, over the years, the number of businesses that are renewing and registering new businesses, we count them all, the numbers continue to grow,” he said.

Data from the DTI show that as of end-August this year, total number of registered businesses rose to 2.08 million from 1.5 million at end-2019. In addition, there exists 5 million to 6 million entrepreneurs in the informal sector.

“There’s good news there, that entrepreneurship is alive in the country and that Filipinos are entrepreneurial. They find ways to earn, especially those who lost their jobs, so they shifted fast and now we’re seeing this growth,” Mr. Lopez added.

The optimism is not unwarranted. The Asian Development Bank (ADB) backed Mr. Lopez’s positive outlook for 2022 with a forecast of their own released this December, which stated that the country will remain on a steady, if more modest, growth path in 2021 and 2022, supported by an acceleration in the government’s vaccination program and a sharp drop in COVID-19 cases.

According to the supplement to the Asian Development Outlook (ADO) 2021, the Philippine economy will grow 5.1% in 2021 and 6.0% in 2022, up from the bank’s September forecast of 4.5% in 2021 and 5.5% in 2022.

“The Philippine economy has shown impressive resilience,” ADB Philippines Country Director Kelly Bird said.

“Growth momentum has clearly picked up on the back of the government’s vigorous drive to vaccinate Filipinos against the COVID-19 virus. Public spending on infrastructure and continued vaccination of the population will help the country further accelerate its recovery in 2022,” he said.

Vaccination has allowed the economy to slowly reopen, boosting consumer and business confidence. More than 57 million Filipinos, or nearly 65% of the target for vaccination, had received at least one COVID-19 vaccine dose as of Dec. 8, 2021. In addition to the government’s purchases of COVID-19 vaccines, the World Health Organization-supported COVID-19 Vaccines Global Access (COVAX) facility also donated supply for the country’s nationwide vaccination program. — Bjorn Biel M. Beltran

MSMEs’ vital role in economic recovery

Globally, micro, small, and medium enterprises (MSMEs) account for over 90% of businesses and more than 60%-70% of employment, and 50% of the world’s gross domestic product (GDP). In the Philippines, based on the most recent statistics from the Department of Trade and Industry, MSMEs comprise 99.5% of business establishments, 63% of the country’s workforce, and 40% of the country’s GDP in the past years.

These numbers show that MSMEs, for their large share among businesses, definitely have a large and significant role in helping the economy recover from the impacts of the coronavirus disease 2019 (COVID-19) pandemic, as long as they are given appropriate support.

International organizations and thought leaders recognize the importance of MSMEs in post-pandemic economic recovery.

The United Nations (UN) is at the forefront of recognizing MSMEs’ key role during the celebration of the MSME Day last June 27, with the theme “MSMEs: Key to an inclusive and sustainable recovery” this year. For the organization, this observance serves to “raise awareness of the contribution that small businesses make to sustainable, inclusive and resilient economic growth and, shared prosperity and decent work for all.”

This was echoed by the United Nations Conference on Trade and Development (UNCTAD) during a global summit back in April.

Due to their innovative and opportunity-seeking nature, UNCTAD wrote on its website, MSMEs can power a stronger recovery from the pandemic; but they need more support, especially through long-term structural policies.

“MSMEs’ smaller size allows them to be flexible and adapt to new environments such as the one created by COVID-19,” the organization noted. “Not only can they help overcome previous constraints related to lack of productive capacities and economic diversification in many low-income countries but also enhance a strong and sustainable recovery.”

MSMEs’ significant role in recovery is also seen within Southeast Asia (SEA) by the Asian Development Bank (ADB) as it released its Asia Small and Medium-Sized Enterprise Monitor 2020 last October.

“MSMEs in Southeast Asian economies mainly focus on domestic markets and their level of entrepreneurship remain suboptimal. Supporting the development of MSMEs, particularly in technology adoption and participation in global supply chains, will contribute to inclusive growth and aid in recovery efforts from COVID-19,” ADB Chief Economist Yasuyuki Sawada was quoted as saying in a statement.

ADB’s report highlighted that while the pandemic “exacerbated already growing global trade tensions and economic uncertainty” within the region, small businesses “hold the key to economic recovery in developing Asia” in many ways.

For instance, MSMEs are seen to have the potential to create more jobs. “In Southeast Asia, 72%-85% of MSMEs operate in rural areas. They absorb 70%-84% of MSME employees in their countries. Thus, their growth is crucial for providing jobs for the unemployed or informal workforces,” the report read.

The report also pointed out that inclusive growth will happen in developing Asia through entrepreneurship development, especially within the services segment of MSMEs, which are found to be “low-technology and domestically focused,” as well as start-ups and technology-based businesses which remain a fraction of MSMEs in SEA.

“It is crucial to foster this MSME segment to ignite resilient and inclusive growth at both national and regional levels,” the ADB wrote. — Adrian Paul B. Conoza

Aboitiz-led UnionBank opens its 150th Ark in Cebu, offers invaluable service to Cebuanos after ‘Odette’

Marking another milestone in its bank transformation efforts, Aboitiz-led Union Bank of the Philippines (UnionBank) opened its 150th Ark branch in Cebu last Nov. 29, 2021.

Aimed at continuing to provide superior customer experience in its physical touchpoints, the country’s first fully-digital bank branch opened its doors at the Queen City of the South.

Remaining grounded on their Cebuano roots, the Aboitiz family has always held the Cebuano people close to their hearts and they continue to be a major contributor to the progress of Cebu.

Innovation is a key driver of the Aboitiz businesses and the opening of UnionBank’s newest flagship branch is a testament to this.

Similar to the Ark branches nationwide, The Ark Cebu Exchange Arthaland bridges physical banking with digital banking for Cebuano customers. It has no queuing and features paperless, straight-through transactions, robust self-service machines, uniquely designed space with cozy conference and semi-private rooms plus multi-talented Branch Ambassadors who are specially trained to help customers enjoy the benefits of digital banking.

Strategically located in Cebu IT Park, The Ark Cebu Exchange Arthaland is in one of the most preferred investment regions in the Philippines. The branch is at the Ground Floor of the Cebu Exchange Tower at Salinas Drive in Lahug, Cebu City and is open Mondays to Fridays from 9:00 a.m. to 3:00 p.m.

First unveiled back in September 2017, UnionBank’s Ark branch introduced pioneering features that changed the way people looked at banking, leveraging technology to address the typical inconveniences associated with visiting a bank branch.

The Ark has no singular blueprint. Each Ark branch is unique and has a modular layout which allows it to adopt its design to deliver the best customer experience, considering the unique needs and branch banking behavior of the local customers that it serves. It can even be transformed as a venue for exclusive events.

UnionBank’s branch transformation helps enable digital adoption by allowing customers who prefer to transact in physical branches to also experience the benefits and features of the Bank’s digital innovations. This is part of UnionBank’s thrust to promote financial inclusion and stay true to its commitment that as it blazes the trail towards digitally transforming the way it does banking, “No one gets left behind”. And, true to this promise, the Ark branch at Arthaland is able to serve Cebuanos who need access to ATMs as other banks continue to be affected by the power and network outages caused by super-typhoon Odette.

 


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BoP back to deficit in November

By Luz Wendy T. Noble, Reporter

THE country’s balance of payments (BoP) position returned to a deficit in November as the National Government repaid some foreign loans and external trade improved.

Last month’s BoP position swung to a $123-million deficit, from the $1.473-billion surfeit seen in November 2020, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Monday evening.

November’s BoP position also reversed the surplus worth $1.141 billion in October. This was the smallest deficit in eight months or since the $73 million logged in March.

“The BoP deficit in November 2021 reflected outflows arising mainly from the National Government’s foreign currency withdrawals from its deposits with the BSP as the National Government settled its foreign currency debt obligations and paid for various expenditures,” the central bank said in a statement.

The BoP deficit in November reflected the improvement in the country’s external trade as the economy continued to reopen, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The private sector’s need for imported goods and settlement of external payables also likely led to the BoP deficit in November, Asian Institute of Management economist John Paolo R. Rivera said.

“Note that this can be due to the recovering economy wherein the inadequacy of domestic supply is compensated by imported supply of goods and services. I think this is just transitory as the economy adjusts to the recovering demand,” Mr. Rivera said in a Viber message.

The Philippine economy continued to further reopen in November, as the number of coronavirus disease 2019 (COVID-19) infections declined.

Latest data from the Philippine Statistics Authority showed the trade deficit stood at $4.02 billion in October, wider than the $2.05-billion shortfall logged a year earlier and the $4-billion gap in September.

In October, exports rose by 2% year on year to $6.41 billion, while imports jumped by 25.1% to $10.43 billion.

“Imports could have also been bloated by the higher prices of imported oil,” Mr. Ricafort added.

As of Nov. 30, the prices of gasoline, diesel, and kerosene increased by P18.10, P15.70, and P13.19 per liter, based on data from the Department of Energy.

Global oil prices have soared in recent months as major oil exporting countries have yet to finalize an agreement on increasing production despite the recovery in demand.

For the first 11 months of 2021, the BoP posted a $353-million surplus, much smaller than the $11.786-billion surfeit in the same period of 2020.

“Based on preliminary data, this cumulative BoP surplus reflected inflows such as from personal remittances, trade in services, net foreign borrowings by the National Government, and foreign direct investments, which were partly offset by a wider trade in goods deficit,” the central bank said.

The BoP gives a glimpse of the country’s transactions with the rest of the world. A deficit means more funds left the country, while a surplus shows that more money came in.

At its end-November level, the BoP reflected gross international reserves worth $107.72 billion, which fell by 1.56% from the $107.89 billion as of end-October.

Such dollar reserves are enough to cover 8.7 times the country’s short-term external debt based on original maturity and 5.7 times based on residual maturity, the BSP said.

It also represents buffers equivalent to 10.2 months’ worth of imports of goods and payments of services and primary income.

Mr. Ricafort said the seasonal remittance inflows in December could help improve the BoP position coming into the yearend.

Earlier this month, the BSP revised its BoP projection for end-2021 to a $1.6-billion surplus, from the $4.1-billion surfeit it estimated in September. This is equivalent to 0.4% of the gross domestic product from 1.1% previously.