Microsoft says new breach discovered in probe of suspected SolarWinds hackers

June 28, 2021 | 2:27 pm

SAN FRANCISCO — Microsoft said on Friday an attacker had won access to one of its customer-service agents and then used information from that to launch hacking attempts against customers.

The company said it had found the compromise during its response to hacks by a team it identifies as responsible for earlier major breaches at SolarWinds and Microsoft.

Microsoft said it had warned the affected customers. A copy of one warning seen by Reuters said the attacker belonged to the group Microsoft calls Nobelium and that it had access during the second half of May.

“A sophisticated Nation-State associated actor that Microsoft identifies as NOBELLIUM accessed Microsoft customer support tools to review information regarding your Microsoft Services subscriptions,” the warning reads in part. The US government has publicly attributed the earlier attacks to the Russian government, which denies involvement.

When Reuters asked about that warning, Microsoft announced the breach publicly.

After commenting on a broader phishing campaign, it said had compromised a small number of entities, Microsoft said it had also found the breach of its own agent, who it said had limited powers.

The agent could see billing contact information and what services the customers pay for, among other things.

“The actor used this information in some cases to launch highly-targeted attacks as part of their broader campaign,” Microsoft said.

Microsoft warned affected customers to be careful about communications to their billing contacts and consider changing those usernames and e-mail addresses, as well as barring old usernames from logging in.

Microsoft said it was aware of three entities that had been compromised in the phishing campaign.

It did not immediately clarify whether any had been among those whose data was viewed through the support agent, or if the agent had been tricked by the broader campaign.

Microsoft did not say whether the agent was at a contractor or a direct employee.

A spokesman said the latest breach by the threat actor was not part of Nobelium’s previous successful attack on Microsoft, in which it obtained some source code.

In the SolarWinds attack, the group altered code at that company to access SolarWinds customers, including nine US federal agencies.

At the SolarWinds customers and others, the attackers also took advantage of weaknesses in the way Microsoft programs were configured, according to the Department of Homeland Security.

Microsoft later said the group had compromised its own employee accounts and taken software instructions governing how Microsoft verifies user identities.

A White House official said the latest intrusion and phishing campaign was far less serious than the SolarWinds fiasco.

“This appears to be largely unsuccessful, run-of-the-mill espionage,” the official said.

Scott McConnell, a spokesman for Homeland Security’s Cybersecurity and Infrastructure Security Agency, said the defensive group “is working with Microsoft and our interagency partners to evaluate the impact. We stand ready to assist any affected entities.”

A SolarWinds spokesperson said, “The latest cyberattack reported by Microsoft does not involve our company or our customers in any way.” — Joseph Menn/Reuters

J&T Express to honor riders as modern heroes

June 28, 2021 | 2:19 pm

Bayani sa Makabagong Panahon campaign rewards exemplary delivery frontliners

This July, new heroes will be in town.

E-commerce delivery giant J&T Express Philippines will be holding J&T Heroes: Bayani sa Makabagong Panahon to recognize the contributions of its delivery riders, on July 2, 2021 via livestream on their official Facebook page.

Vice President of J&T Express Philippines Zoe Chi said the campaign exemplifies the company’s bayanihan spirt by “honoring our own frontliners who continuously support the company and Filipino community through these challenging times. Through this, we hope that everyone will recognize their dedication and personal sacrifices to provide us with safe, fast, and reliable delivery services so that we can continue on with our lives despite the pandemic.”

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Out of hundreds of entries nationwide, only one will be named Hero Rider of the Year and will receive a new motorcycle as the grand prize. Criteria for J&T Heroes include exemplary performance with a 95-100% high success delivery rate; company loyalty with tenure since February 2020; a high degree of professionalism; and service satisfaction backed by testimonials from regular customers.

The virtual event will be livestreamed at 5:00 PM at www.facebook.com/jntexpressphilippines and will be hosted by one of the famoust actors in the industry Mr. Xian Lim, supported with a performance by singer and former Tawag ng Tanghalan contestant Gigi de Lana. The event is supported by J&T’s brand partners HINO, FOTON, Mobile Legends Bang Bang, Realme, Prestone, Clorox, Gcash, and Shopee. Secondary local business sponsors include BELO Intelligent Skincare, Gfoxx International, ELITE Sales, American Authentic Apparel, Tink Custom Print, Seek Shine, Organic Skin, K-Cool, Leupp Watches, Jane Secret, Pocari Sweat and KUMU.

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J&T Express strives to empower and prioritize both its customers and employees. Last month, the company released a second tranche of employee “ayuda” in the form of groceries and essentials to augment the daily needs of team members who have been affected by the lockdown. J&T has also extended help through various logistics services for COVID response and immediate disaster relief. The company is also dedicated to helping local online businesses grow by providing quality delivery services.

J&T Express Philippines currently has 600 branches caters to almost every province in the country 365 days a year even on holidays. Customers can easily track their packages real-time via J&T’s service platforms: mobile application, website, hotline, and social media. To know more about the company’s services, visit https://www.jtexpress.ph/.

Hotel frontliners, hospitality heroes

June 28, 2021 | 1:46 pm

Not all heroes wear capes, now the new crop of heroes we look up to are clad in white coats, scrub caps, and the ever-elusive Personal Protective Equipment (PPEs). Our heroes in the medical field have been fighting at the frontlines for over a year, as we remain mired in a global health crisis. To them, we are truly indebted.

Recently, the Inter-Agency Task Force on Emerging Infectious Diseases (IATF) has also recognized the valiant effort and sacrifice of the men and women of our tourism sector. Frontliners of the hospitality industry have also been serving in the frontlines, welcoming and providing a safe haven for our returning countrymen and essential travelers.

This June, Resorts World Manila (RWM) tips its hat to all frontliners with Frontliners Month. RWM has a penchant for celebrating life’s greatest joys and achievements, as the company fully embraced its credo of making the most out of life. In celebration of Frontliners Month, RWM shines the spotlight on its many hotel frontliners that remained steadfast on their duty even during these times of great adversity and continued to represent the company’s commitment to thrill the world every chance they get.

Maricris Manimbo, a Guest Service Leader in Holiday Inn Express Manila Newport City (HIEx), recalls 2020 as one of the more difficult years in her career, “as early as January, we started seeing a series of cancellations of prior reservations due to the eruption of Taal volcano, and then immediately after, concerns about the virus began surfacing.” While some hotels shuttered its doors, HIEx remained operational to accommodate outbound travellers in March amid growing concerns about the pandemic. “Before the shutdown, we were servicing a lot of outbound foreign nationals. And then, immediately after, we applied to be a quarantine hotel for our returning kababayan.”

At Savoy Hotel Manila, Front Office Associate Joshua Randel Tandoc initially feared for his personal safety and job security at the height of the pandemic and initial lockdown. He shared, “we were slowed down during the height of the pandemic last year. It was really a difficult time since most of our colleagues were unable to report to work due to the lockdown. Of course, we were scared, these were uncertain times, a lot of hotels were closing down at the time. Despite dealing with the inevitable, we were able to turn this season into an opportunity to learn more, grow together, and showcase the true meaning of the Filipino hospitality.”

Joshua Randel Tandoc of Savoy Hotel Manila

In these hard situations, even the smallest things can go a long way. At Belmont Hotel Manila, Food and Beverage Service Ambassador Trixie Anne Paraiso shares how they were able to provide respite to returning OFWs who are staying on mandatory quarantine in the hotel, “the pandemic has drastically changed how we approach guest service. There was an adjustment, from being able to interact face-to-face, now everything is done by phone. It’s hard when we have been so used to seeing our guests and greeting them with a smile, now we can only talk to them through the phones. It’s hard because we know it is difficult for them, too. Most of them just want to be reunited with their families. So, for our part, we really want to provide the best service possible since the hotel becomes their first home back in the country. We try to make them feel at home by checking up on them from time to time through the phone, and addressing them by their names. The guests really appreciate even the simple things that we do for them, sometimes they leave us small thank you notes saying how much they enjoyed their stay with us. These small acts of kindness in the chaos really keep us going. It puts into perspective why we do what we do.”

The pandemic has truly disrupted lives and livelihoods all over the world. The mandates for quarantine and safety guidelines have driven a wedge between people and how they interact, yet in spite of this, the Filipino spirit and hospitality exudes the necessary warmth that can keep the human connection alive and well.

To show appreciation and deep gratitude for all frontline workers, RWM is dedicating a whole month of exciting deals and offers with National Frontliners Month. To know more about the RWM’s Frontliners Month offers, visit www.rwmanila.com or follow RWM’s official social media accounts, @rwmanila on Facebook and Twitter, and @resortsworldmanila on Instagram.

Shut off from the world, Australia fosters red-hot growth at home

June 28, 2021 | 1:34 pm

22136171070_2baedb6e01_c — Image via Mertie/Flickr/ CC BY 2.0

SYDNEY — A year after the coronavirus pandemic pummeled Australia’s economy, IT contractor Ashok Ravindran has a nice problem: deciding which of three job offers to accept.

His happy dilemma is a reflection of an economy that is now larger than its pre-pandemic level. Exports are booming, consumer and business confidence are high and employment has beaten all expectations, with job vacancy rates at a 12 1/2 year high.

The Sydney resident only quit his last job two weeks ago.

“The market is really hot right now. I tried a few companies just to test waters and received three offers,” Mr. Ravindran told Reuters. “I got counter offers from each of them. That made it harder to say no as you don’t want to burn your bridges.”

Far from last year’s dire predictions, Australia’s unemployment rate has slid to a pre-pandemic level of 5.1%, home building approvals are at a record high and consumer spending is euphoric.

The A$2 trillion ($1.5 trillion) economy is now larger than before the once-in-a-century pandemic hit its shores. Sporting events are again a major spectacle and pubs overflow with patrons. In many states and territories, masks are an uncommon sight.

If anything, the very constraints that were expected to hurt demand, such as closed international borders and limited domestic mobility, have serendipitously channeled new sources of growth.

Instead of travelling to Bali or Bangkok, Australians are holidaying locally. Working from home requirements have prompted many to base themselves in new residences outside major cities, propping up demand in smaller towns. Physical distancing rules have spurred online retail sales while dining out has never been this popular.

“Australia is breaking records in what must be one of the fastest economic recoveries in modern history,” said AMP Capital Australian Equities Portfolio Manager Dermot Ryan.

“The economy is riding the wave of a triple boom in mining, housing, and corporate profitability.”

While the country is in the midst of a worsening trade war with the world’s largest trading nation, China, Australia’s exports are miraculously booming, thanks to soaring prices of iron ore and newer markets in Asia and Middle East to sell to.

Economists expect this golden run to extend awhile.

Australia’s swift economic recovery from its first recession in three decades in 2020 has been driven by its ability to largely re-open from coronavirus lockdowns earlier than expected and solid monetary and fiscal stimulus.

The combination has triggered a property bull run, freeing up a huge amount of capital that was prudently held back by banks in 2020 in case of a COVID-induced housing crash.

AMP’s Mr. Ryan said both the mining and banking sectors have the potential to return over A$50 billion each to investors over the coming financial year.

The surge in home prices has sparked a building boom, sending shares of building products makers such as James Hardie and Brickworks to record highs. Shares of Australia’s top mortgage lender Commonwealth Bank, are at all-time highs after ceremoniously surpassing A$100 on May 28.

In another sign of solid business recovery, CBA this month said its financing of light commercial vehicles is up a startling 187% since January over the past year while loans for equipment and machinery jumped 21% in May, compared with the same time last year.

SHORTAGES

Consumers, too, are feeling confident with survey results consistently showing optimists far outnumber pessimists.

Indeed, retail sales have surged 25% on a year ago and vehicle sales have skyrocketed 68%. Household goods retailing has boomed, led by appliances and furniture as people renovate homes or build new houses.

Demand is so strong that home supplies and hardware chain Bunnings is now facing a timber shortage.

Companies are also facing a labor shortage with tens of thousands of Australian citizens still stuck overseas.

Their fate hangs in the air as Australia has pledged to keep borders shut well into next year, which also means skilled migration — which was propelling the economy until 2019 — is practically impossible.

The decision to keep borders closed is popular with the general public with recent state elections showing that leaders who take a hardline stance on COVID are heavily favored.

Tight border controls, slower interstate migration together with solid business confidence and profitability have helped tighten the labour market, with some sectors such as IT, engineering, hospitality and healthcare facing severe shortages.

This has frustrated businesses who are calling for border restrictions to be eased.

“The current international border setting is virtually no-one-in and no-one-out,” said Innes Willox, chief executive of Australia’s employer association Ai Group.

“This needs to give way to a more sensible position and a much more ambitious border opening goal than the July 2022 target currently adopted by the Federal Government,” Mr. Willox added.

“Our critical skill shortages are only going to get worse the longer our border remains closed.”

For the likes of Mr. Ravindran, however, there has never been a better time to look for work. “I am confident my contract will be renewed when it comes up for renewal. There is enough demand right now.” — Swati Pandey/Reuters

Seven killed, many injured in blast in Bangladesh

June 28, 2021 | 12:37 pm

DHAKA — At least seven people were killed and more than 50 people were injured in an explosion in the Bangladeshi capital late on Sunday, police said.

The cause of the blast, which occurred on the ground floor of a three-story building on a busy street in Dhaka’a Moghbazar area, was not immediately known.

“We have information so far that seven people died in the incident and 50 others have been admitted to hospitals,” Shafiqul Islam, Dhaka city police commissioner, told reporters after visiting the scene.

Seven other nearby buildings and three buses were damaged in the explosion, he said.

Television footage showed mangled pillars, broken concrete and glass shards strewn across the street. — Reuters

[B-SIDE Podcast] Turning the page: Big Bad Wolf book fair goes digital

June 28, 2021 | 11:20 am

Follow us on Spotify BusinessWorld B-Side

More than 60,000 book titles will be available at steep discounts in the online edition of Big Bad Wolf, a book fair that has, in the past, attracted half a million visitors over a single run.

In this episode of B-Side, Big Bad Wolf (BBW) founders Jacqueline Ng and Andrew Yap tell BusinessWorld reporter Patricia B. Mirasol how two years of planning went out the window because of the pandemic.

The rising cost of logistics will leave a mark on the book industry, they said, and traditional booksellers will have to go beyond the printed page and embrace digital events, e-books, and audiobooks. Post-pandemic brick-and-mortar bookstores, they added, will have a community aspect.

The Big Bad Wolf founders also share how they grew from a tiny operation into a traveling book empire that visits more than 34 cities around the world.

TAKEAWAYS

The steep rise in logistical costs will force the book industry to change.

One of most crucial way the pandemic affected the supply chain is in logistics. In terms of logistics, Mr. Yap told BusinessWorld that costs rose 3–4 times within the Southeast Asia region. The costs from Asia to Europe, meanwhile, are up 6–7 times.

“That’s a lot,” Mr. Yap added. “We don’t see this going down until whole world recovers.”

Publishers also find it difficult to reach out to bookstores these days, as traditionally it’s always been in book fairs where they close deals.

“If trade fairs are affected, then definitely, further down the line everything’s affected,” said Mr. Yap. “When it comes to the print of books, however, the majority of books are printed in China, so [the supply chain] isn’t affected in that aspect.”

In a pilot survey by the International Publishers Association and the World Intellectual Property Organization that was published in 2018, it was found that China publishes far more titles (57.8 million) than the next nearest country (the UK with 49,433). Print editions also account for the bulk of total retail sector revenue.

Publishers worldwide have seen an increase in book sales, especially children’s books.

Children’s activity books count as BBW’s top category at this time, according to Ms. Ng. Almost 50% of the books sold by BBW in the Philippines are children’s activity books, she said. In the other countries where they have a presence, the number increases to around 60–65%. In Taiwan, an overwhelming majority of their sales (90%) are in the children’s book genre.

This trend is also reflected in other regions. Sales of children’s education books rose 234% in the UK shortly after the pandemic was announced, which a BBC source said was in preparation for a long lockdown. In the US, the Association of American Publishers reported in May that year-to-date revenues on pre-K-12 books were up 24.0%, coming in at $124.4 million.

“This new generation of readers created by this pandemic is going to shape the whole future,” Ms. Ng added. “Reading is not something you do once and stop doing forever. It’s a habit. When [this new generation] become parents, they’ll pass on the reading habit.”

E-books, audiobooks, virtual events, and digital payments are an important part of the ecosystem.

“Traditional booksellers like us can’t avoid e-books and audiobooks,” said Mr. Yap. “Getting into these is key for booksellers.”

E-books have been gaining popularity since their first inception in the 1970s. As of September 2020, e-book sales have been up 22% year over year and 16% year-to-date, according to the January 2021 report COVID-19 and Book Publishing: Impacts and Insights for 2021.

Turning book fairs into online events can also be considered a boon for the industry, Mr. Yap added. “If booksellers and aspiring booksellers around the globe can experience and get into the industry [through these], then that will help the entire industry more.”

The emergence of e-wallets will also reduce buyer preference for cash payments, Ms. Ng told BusinessWorld. It’s also the more preferred payment method of sellers, especially those who don’t have the resources and therefore find it difficult to manage cash on delivery (COD).

“I think e-wallets coming into the market helps a lot,” she said. “Even those [without a bank account] can set up an e-wallet, and that… changes the whole retail industry.”

There is still a place for brick-and-mortar bookstores.

Just as in the workforce, the future of the book industry is hybrid. Amazon, Mr. Yap pointed out, was blamed for the demise of bookstores, but even the multinational e-commerce company has 13 physical bookstores at the moment.

For every industry, “there is still the retail aspect,” he said. “It’s just hard to figure out what kind of balance there will be. Time will tell.”

BBW is building five to six physical bookstores in Malaysia this year.

“It’s about making these into community spaces, like turning bookstores into co-working spaces and cafes,” Mr. Yap said, adding that selling book-related items should also be part of the plan.

A lot of the appeal of their brick-and-mortar locations have to do with design, Ms. Ng added. “People take wedding and graduation photos in our stores,” she said, which helps spread the word about them to a broader market. “When they’re in our stores and start looking at the displays, they’re usually bound to find something that intrigues them.”

Marketing is important to book sales, and being ahead of the social media curve helped BBW build its following.

Back when the BBW started in 2009, the co-founders turned to social media as their main advertising tool to spread the word about their book sales. This organic following was their most powerful tool, Ms. Ng said. The brand has been able to build a relationship with them over the years, she added.

“When we started, we didn’t have a budget or an agency helping us that’s why we turned to social media,” said Ms. Ng.

Their online success hinged on authenticty, the co-founders said.

“Be genuine,” advised Mr. Yap. “We always want to keep things simple. When we say it’s 50-90% off, it’s really 50-90% off. There’s no catch to it.”

The post-pandemic future is bright for the book industry, but players need to evolve.

“Most of the time when we go to book fairs, it’s like going to an old folks’ home,” he said. “The second generation is not coming in because they think there’s no future, [but] the pandemic has proven that books are here to stay.”

Books, he added, has never had the opportunity to capture and recapture readers like this pandemic. Stay-at-home directives have brought back the joy of reading to adults who have previously been so distracted making a living.

“It’s definitely a bright future, but booksellers — including us — need to evolve. The industry’s evolving too slow,” added Mr. Yap. “This unprecedented time also brings amazing opportunities that we need to capitalize on. This pandemic gives everyone the [push] to move.”

The online edition of the Big Bad Wolf book sale runs from June 30 to July 7. Visit signup-ph.bbwbooks.com.

Recorded remotely on June 23. Produced by Paolo L. Lopez and Sam L. Marcelo.

Follow us on Spotify BusinessWorld B-Side

Leisure & Resorts World Corporation sets schedule of its stockholders’ meeting on July 30

June 28, 2021 | 10:03 am

Philippines says to launch benchmark-sized dollar bond issue

June 28, 2021 | 9:21 am

1000-peso-bills-052818 — *BW FILE PHOTO*

MANILA – The Philippines is set to launch a benchmark-sized U.S. dollar bond offering on Monday, National Treasurer Rosalia De Leon said, without providing further details.

The Philippines, one of Asia’s most-active sovereign bond issuers, plans to raise as much as $5.5 billion from commercial debt markets this year to plug a budget deficit that covers the government’s pandemic response measures, including vaccine purchases and flagship infrastructure projects.

It has so far raised $500 million from a yen-denominated Samurai bond issue and sold $2.5 billion worth of euro-denominated notes. — Reuters

Why ESG matters in the post-COVID world

June 28, 2021 | 8:00 am

ESG ss — In photo during the BUSINESSWORLD Insights (clockwise, from top left) are moderator Jenina P. Ibañez of BusinessWorld; and panelists Manuel R. Lozano, senior vice-president and chief financial officer of Aboitiz Equity Ventures; Marla Garin-Alvarez, vice-president for sustainability at BDO Unibank; Timothy Daniels, head of investor relations and consultant at SM Investments Corporation; Melissa V. Vergel De Dios, head for corporate sustainability and investor relations at PLDT; and Yoly Crisanto, senior vice-president for corporate communications and chief sustainability officer at Globe.

By Bjorn Biel M. Beltran

The COVID-19 pandemic has taken the world by surprise, and through its impact revealed many lingering inequalities, social, economic, and environmental issues that plague modern life. The United Nations Secretary-General has even described inequality as the defining challenge of our era — one that the COVID-19 crisis has thrown into even greater relief.

This is the crux of the massive international movement to address these issues that the pandemic has revealed, and seize the opportunity to “Build Back Better.”

Part of this movement is the growing significance of ESG (Environmental, Social, and Governance) criteria in the operations of the private sector, particularly towards the goal of long-term sustainability. This is the theme of the latest session of BusinessWorld Insights, where experts and industry leaders were gathered to talk about the theme, “Boosted Towards Sustainability: How ESG Criteria Guides Leading Companies.”

Manuel R. Lozano, senior vice-president and chief financial officer of Aboitiz Equity Ventures, opened the talk by presenting their three core pillars of sustainability: People, Planet, and Profit, noting that a strong organization that can withstand wide-scale disruptions such as COVID-19 can only be achieved by harmonizing sustainability and economic prosperity as the purpose of business.

“At Aboitiz, we’ve always believed that we do well by doing good. By doing good, this means not just doing corporate social responsibility and other types of similar projects, but also by managing risks and uncovering opportunities across our whole ecosystem,” he said. “If we do this well, hopefully we become top of mind and become the first choice among our stakeholders. As we grow business, our stakeholders grow with us.”

As with most businesses, the COVID-19 pandemic has affected Aboitiz. Mr. Lozano said that its impact to the company’s stakeholders — its employees, customers, and communities — made them rethink their way of doing things. As a result, Aboitiz has doubled down on its environmental sustainability goals, including reducing its carbon emissions, improving resource efficiency, waste management, and making more renewable energy investments.

“Part of the commitment we’re making is a defined governance structure on addressing climate-related risks; defining key strategies, targets, and metrics on our climate actions; and improving disclosures to provide clear and reliable information to our stakeholders. In other words, transparency across all of our activities,” he said.

Tying together purpose and profit

ESG criteria, or the set of standards for a company’s operations that socially conscious investors use to screen potential investments, is intrinsically linked with the core of one’s business.

Marla Garin-Alvarez, vice-president for sustainability at BDO Unibank, said that banks play a critical role in providing the financing and the expertise to businesses for them to achieve new and more sustainable economic business models. As such, much of the focus for BDO’s long-term sustainability is built towards resilience, including environmental resilience.

“If we fail to effectively address and mitigate accelerated climate change now, it could cost us so much more. A cost-intensive quality of life, intensive on our resources, and our very existence in the future. ESG is a journey that BDO Unibank and its subsidiaries has been pursuing for several years now,” she said. “Businesses cannot succeed in a society that fails. You cannot do business on a dead planet.”

Melissa V. Vergel De Dios, head for corporate sustainability and investor relations at PLDT, shared that for PLDT, the company’s various sustainability programs are centered around environmental, societal biodiversity, and financial inclusion goals, targeted towards issues like energy efficiency, cybersecurity, and data privacy for social impact, diversity and inclusion, connectivity for marginalized communities, and using technology for biodiversity.

“Everything starts with one’s purpose. Our approach is to leverage connectivity and technology to support our sustainability initiatives,” she said.

“Sustainability is a journey, a continuing work-in-progress and should be tightly linked to the business. It is not a competition. It is about doing our part to achieve a common objective as stewards of this planet for the next generation. We need to be able to engage with our stakeholders and have a conversation about what these scores mean.”

Similarly, Yoly Crisanto, senior vice-president for corporate communications and chief sustainability officer at Globe, said that Internet connectivity has become such a critical part of society that the long-term sustainability of Globe relies naturally on their infrastructure. Through internet connectivity, the company can provide access to affordable education and health services like Globe’s partnership with telehealth service KonsultaMD, making it possible for Globe subscribers to get unlimited access to licensed medical professionals anytime, anywhere.

She added that that purpose is the core of a company’s long-term impact. The frameworks and reporting standards are not so important compared to it.

“It’s all about the impact. You don’t want barriers to sustainability practices. You want everybody to participate. Sustainability requires the whole of the country, not just corporate and the private sector. The public sector also has its role,” she said.

“At the end of the day, it’s how you take care of your stakeholders, your business, and the planet. This is for us and future generations. Sustainability is not philanthropy. In the end, it all goes back to your business,” Ms. Crisanto added.

Timothy Daniels, head of investor relations and consultant at SM Investments Corporation, said that the SM Group’s sustainability journey grew from a vision of building an ecosystem of businesses that are catalysts for responsible development. He also added that for companies that are thinking of pursuing that journey, the United Nations Sustainable Development Goals is a good place to start.

For instance, SM Group focuses on six of the UN’s Sustainable Development Goals: decent work and economic growth, sustainable cities and communities, climate action, good health and well-being, quality education, and partnerships for the goals.

“Start out by identifying what is material for your business, and that will guide you to where your focus should be. Sustainability is not about frameworks or metrics. It’s what we need to do to be here in a hundred years’ time,” he said.

This session of #BUSINESSWORLDINSIGHTS is made possible by Aboitiz Group, Globe, Meralco, PLDT, and Smart.

Investing in Cebu’s future

June 28, 2021 | 7:30 am

southcoast — SOUTH COAST CITY – SM-AYALA SRP DEVELOPMENT – The 26-hectare waterside development will be home to prime entertainment and commercial concepts and will be complemented by other mixed-uses to serve diverse market needs.

Young Business Maverick Afshin Ghassemi Leads the Way

The ongoing pandemic has been back-breaking for many local businesses. But it has also presented rare opportunities for brave entrepreneurs who embrace change.

“It is pointless to belabor things we can’t control. All crises end, followed by periods of productivity and gain. The secret to staying strong is to quickly adapt, identify opportunities, and reposition your business for future advantages by making farsighted investments.”

These wise words come from Afshin Ghassemi, the 37-year CEO of Core Pacific Group and one of the more seasoned investors in the Cebu property and currency exchange markets. At the height of the pandemic, Afshin decided to invest in District Square in South Coast City — Cebu’s upcoming premier entertainment and central business district.

AFSHIN GHASSEMI–CEO of Core Pacific Group and Core Pacific Land, Inc.

Occupying 26 hectares in South Road Properties, South Coast City represents one of the last remaining prime spaces in Cebu. It is also a unique collaboration between two of the country’s top developers: Ayala Land and SM Prime Holdings.

The fundamentals in investing in District Square and South Coast City are rock solid. But still, why make a significant investment during an economic crisis?

A Family Business Built on Weathering Crises

“My job is to expand our business, which began as Ghassemi’s Persian Carpets and a money exchange hub,” said Afshin. Starting with three branches in Ayala Center Cebu, Afshin has grown their business to 155 branches nationwide and soon to reach 200.

“We’ve also made advances on our real-estate business,” he revealed. “So we invested in Ayala Land’s District Square in South Coast City because it’s a solid investment. And the timing’s right—there’s always great business opportunities to be had during a recession,” explained Afshin.

A refreshing lifestyle is supported at South Coast City’s central park which links the entire park system of the estate and is just a few steps away from the estates’ commercial center, District Square.

The young CEO is speaking from experience. Growing in a budding family business in the 1990s, Afshin saw first-hand how periods of economic downturn can be catalysts for growing an enterprise.“My parents are very traditional, but they wisely capitalized on the economic downturns of the early 1990s and 2008 by investing in prime real estate,” he said.

Indeed, these rough economic patches were followed by dramatic upswings in business and public spending. “Our investments grew significantly after those periods. In fact, after this pandemic, you’ll see — there will be a significant upsurge in economic activity,” said Afshin.

South Coast City: A Clean Slate in a Prime Location

While the Ghassemis have begun investing in Manila and Luzon, Afshin still believes there is a brighter future for businesses in the Visayas-Mindanao region, especially in the region’s capital, Cebu.

“Cebu’s very accessible to the major islands in Vis-Min. And it’s a major global tourist destination. Where else can you find a world-class airport and a host of 5-star resorts, all on one island? Where else do you find business and leisure going perfectly hand in hand?”

“Our only problem is the traffic, said Afshin. “And that’s the unique proposition of South Coast City because it’s meant to decongest traffic with both the CCLEX Bridge and South Coastal Road.”

“South Coast City’s position as the future entertainment district of Cebu City is something that we need for the longest time,” he added. “The upcoming arena and convention center of SM and the adjacent entertainment and gaming facilities will give Cebu’s economy a major boost.”

District Square: In the Pole Position of Cebu’s post-pandemic Growth

“We invested in District Square because of Ayala Land’s track record,” said Afshin. “District Square’s location in the South Road Properties (SRP) is also very prime. There are only 11 lots for sale in the whole estate, and it is at the SRP’s main entrance, right beside the CCLEX Bridge.”

DISTRICT SQUARE – Cebu’s prime commercial waterside offering of Ayala Land fronting Cebu Strait. This 11-lot commercial development will be a progressive district, defined by world-class commercial and mixed-use concepts.

According to Afshin, District Square also represents an opportunity to rethink real-estate and commercial development at a fantastic location. The post-pandemic economy will require new ways of conducting business and new approaches to constructing and managing properties.

“From the way they use spaces to building design and sustainable architecture— Ayala has a clear track record of building in tandem with the environment. Look at Makati and BGC. I believe the way they think is crucial in shaping businesses in the post-pandemic era,” he said.

District Square by Ayala Land is Cebu’s new prime commercial waterside destination fronting Cebu Strait. Located at the northern entrance of South Coast City beside the new Cebu-Cordova Bridge — this 2.7-hectare commercial development is Cebu’s new progressive district, defined by world-class commercial and mixed-use concepts.

For more information and sales inquiries, contact ignacio.deo@ayalaland.com.ph. For Cebu-based inquiries contact commercial.sales@cebuholdings.com.

Stronger support from the private sector urged in addressing the Philippines’ housing gap

June 28, 2021 | 7:00 am

The increasing need to reinforce partnerships between the public and private sectors and other stakeholders and the critical role of the business sector in addressing the country’s housing gap was stressed in the recent BAHAYnihan: Rising Together through Housing, an online forum held by Habitat for Humanity, in partnership with BusinessWorld Insights last June 16.

The online forum on housing gathered representatives from the developer, building material provider, public, and non-government fronts to discuss the solutions to the housing gap and the next steps in moving forward. The event also explored how businesses can benefit and at the same time, contribute to the country’s economic recovery through the US$61B market value opportunity from the socialized and “unserved” housing segments.

Opening the forum with his keynote, Eduardo Del Rosario, Secretary of the Department of Human Settlements and Urban Development (DHSUD), noted the public sector’s strides in addressing the housing gap.

“DHSUD, along with other agencies, has financed and produced a total of 45,731 housing units during the first three months of 2021, despite the limitations due to COVID-19 (coronavirus disease 2019),” the Secretary said. “This highlights our commitment to assist in realizing the dream of 81% of Filipino families to have a house of their own.”

Sec. Del Rosario added that the recently approved 20-year National Housing and Urban Development Sector Plan would serve as the department’s “strategic platform to synergize and further propel the systematic and overall sectoral development landscape, both in the urban and rural settings.”

Furthermore, he noted that addressing the housing gap will help boost the economy since around 80 industries get involved in constructing a single housing unit, aside from employing workforces in the housing sector.

Holistic approach

Cary Evert, a member of the advisory board at Habitat for Humanity’s Terwilliger Center for Innovation in Shelter, stressed the importance of a holistic approach to solving the housing gap.

This approach involves financial institutions providing the necessary funding, material builders ensuring resistance of homes against disasters, and other relevant sectors providing technical assistance and efficient land management.

“I gave tremendous emphasis about large developments in the Philippines and the time it takes from start to getting the buildings built. The other issue is all the incremental building that’s going on. You have someone who has this piece of land, has some sort of structure and continues to want to build. So how do you make it easier for them?” Evert added.

Horia Adrian, president and CEO of Holcim Philippines, Inc., emphasized that building materials providers like them play a crucial role in making innovative, affordable solutions more accessible to fast-track house construction at scale.

“Looking at the specifiers, designers, architects of affordable housing, there must be an open mind to embrace new construction solutions and methods,” Mr. Adrian said, emphasizing that new building solutions are among the four core elements of affordable housing, together with microfinancing solutions, technical support, and distribution solutions that bring products available to lower- to middle-income people.

Stakeholder roles

Meanwhile, Noel Cariño, president of the Chamber of Real Estate & Builders’ Associations, Inc. (CREBA), stressed that partners should agree on whether the housing infrastructures currently in place are relevant in addressing the country’s housing deficiencies.

How affordable is “affordable housing” should also be determined, he added, noting that while the informal sector population has grown, housing production has not increased. “Those are the things I think we should take a look at and see where legislation and where other interventions can come into place,” he said.

Mr. Cariño also noted that the current permitting process hampers the closing of the housing gap. “Development permits need to be secured even from the barangay level all the way to the local council level up to the local government unit (LGU) head before it is acted on by other agencies,” he explained.

CREBA, he continued, is thus pushing for the immediate transfer of this power to issue development permits and other requirements for residential subdivisions and vertical developments from the LGUs back to the DHSUD through its regional Housing One-Stop Processing Centers.

Jose Soberano III, chairman, and CEO of Cebu Landmasters, Inc., shared that an opportunity lies for developers to cater to the unserved housing market, mainly what is considered the owner-driven construction segment, or those who build their homes incrementally.

“I’d really like to see that particular segment addressed because when you talk about affordable housing, we’re still falling a lot short. We need more developers [meeting that market]; we need more action,” he said.

Moreover, Mr. Soberano highlighted that developers like them are responsible for addressing the housing gap as this will pave the way to eradicating poverty in the country. Nonetheless, for him, developers should not participate solely for the sake of compliance.

“It should be more of what it could extend in terms of help and lending its expertise in development: concept planning, coming up with the best fit, [and] providing conveniences,” he explained, adding that giving fiscal incentives and tax benefits to developers can further interest on their part to support housing initiatives.

In her remarks, Habitat for Humanity Philippines COO Lili Fuentes also called on the private sector for more robust support and collaboration with Habitat for Humanity, other organizations, local government units, and key shelter agencies to respond and help address housing issues in the country through innovative, scalable, and sustainable solutions.

“Now, more than ever, the private sector should invest more in affordable housing and expand [their] services to the housing sector because it fuels economic development, supports other industries, and, most importantly, helps family break free from poverty,” she said.

Learn more about the work of Habitat for Humanity in the Philippines and how you can support their advocacy by visiting www.habitat.org.ph and https://www.habitat.org/our-work/terwilliger-center-innovation-in-shelter.

Residential property prices slump in Q1

June 28, 2021 | 12:34 am

RESIDENTIAL PROPERTY prices slumped anew in the first quarter, mainly due to a double-digit decline in prices of condominium units and duplexes in the Philippine capital as demand remained muted due to the pandemic.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the Residential Real Estate Price Index (RREPI) was down by 4.2% year on year in the January to March period, the steepest decline since the data series started in 2016. Nationwide home prices also shrank by 1.6% quarter on quarter due to “subdued demand” for residential properties as the pandemic continued.

The index looks into the average change in home prices across building types and locations, providing the BSP insights into the property market where bank exposure is regulated.

“The negative year-on-year growth in nationwide residential property prices was driven mainly by the downtrend of property prices in the NCR (National Capital Region), which fell by 10% relative to Q1 2020, marking three consecutive quarters of declines since Q3 2020,” the BSP said.

Condominium unit prices nationwide dropped by 10.7% in the January to March period, a reversal from the 23.6% jump during the same period in 2020. This was also the biggest price drop since the -15% in the third quarter last year.

Duplex homes also saw prices fall by 20.7%, the biggest contraction since 2016.

Meanwhile, prices of townhouses and single detached/attached homes picked up by 8.3% and 0.2%, respectively.

In Metro Manila, home prices slid 10% in the first quarter, dragged by the 12.8% decline in condo units. On the other hand, prices of duplex homes rose by 39.2% as well as single detached/attached houses by 12.4%, and townhomes by 5.8%.

Outside the capital, residential property prices inched up by 0.8% as prices of condominium units (4.2%) and townhomes (9.6%) jumped. Duplex homes (-27.9%) and single detached/attached houses (-0.5%) in the provinces saw lower prices in the first three months of the year.

LACKLUSTER DEMAND
Ongoing coronavirus curbs and reimposition of lockdowns continued to dampen demand for new homes.

First-quarter residential home loans declined by 14.7% year on year and by 32% compared with the fourth quarter of 2020.

More than half (52%) of the borrowings were used to buy condominium units, followed by single detached/attached houses (38.6%) and townhouses (8.1%).

“The latest decline in RREPI may still reflect the downward correction in real estate prices largely brought about by the pandemic that reduced economic activities, including the demand for residential real estate,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Mr. Ricafort said the lower home prices were due to the decrease in demand, particularly for condominium units.

The higher unemployment rate, as well as the ongoing repatriation of overseas Filipino workers, reduced demand for residential properties.

Philippine Statistics Authority data showed the unemployment rate stood at 7.1% in March, which translated into 3.44 million jobless Filipinos.

The BSP said earlier this month that it will release a commercial property price index within the year. — Luz Wendy T. Noble