Global Ideas: Unlocking your business with AI
Adopting AI (Artificial Intelligence) may be one of the biggest ways to advance a business’ digital transformation but at its best, managers should see it as a way to help, not replace workers.
“I think where AI is super powerful is not in isolation, but as part of a human-centered workflow where it helps to augment the humans’ judgment calls,” said Stef Sy, CEO and founder of leading data technology consultancy firm Thinking Machines, at Makati Business Club’s “Unlocking Your Business With AI” event on March 28.
The event was organized by the Makati Business Club’s Global Ideas Committee, which aims to challenge traditional perspectives of the local business community with the latest industry trends and developments around the world. AI is machines programmed to “think” and “learn” — mimicking human intelligence — to do tasks better and better.
“There is a common interest among the business community to better understand the applications of digital transformation, and it’s important to recognize how AI enhances digital transformation processes and the decision-making associated with it,” said Jaime Alfonso Zobel de Ayala, head of Business Development at Ayala Corp. and MBC Global Ideas Committee chair.
The “human-centered workflow” applies from the beginning. For companies who are starting with AI adoption, EastWest Bank’s Senior AVP and Executive Director Isabelle Yap advises business leaders to not only work with data scientists, but to “have a team that is able to clearly translate your business needs to data experts.”
Ms. Sy added, “Businesses do not only need someone who can code, but someone with strong analytical skills of the industry they are in to help inform a company’s AI framework.”
Thinking Machines assisted EastWest Bank in launching its “ATM Auto-Reconciliation Project”, which used AI to detect fraud and predict which of the bank’s ATMs are broken down. This AI-adoption project improved EastWest Bank’s operations and customer experience by automating its systems for 400+ ATMs nationwide and streamlining 2 million monthly customer transactions, which were done manually in the past and was prone to errors, according to Ms. Yap. She added that adopting AI for its bank operations has allowed their staff more time to focus on other tasks, which boosted productivity.
Nicolas Bivero, co-founder of Penbrothers and MBC Global Ideas committee member, moderated the discussion.
To learn more about AI solutions for business, listen to episode 1 of MBC’s Global Ideas podcast on Spotify and Apple Podcasts — featuring Bivero, Sy and Yap.
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Empowering women-led MSMEs to drive significant growth to PHL economy
Empowering women-led micro, small and medium enterprises (MSMEs) by democratizing access to financial tools and services will result in a significant boost to the local economy.
During the “Promoting Women and Financial Inclusion Today” webinar hosted by the European Chamber of Commerce Philippines, government leaders from the Bangko Sentral ng Pilipinas (BSP) and the Senate, as well as executives of leading open finance platform UBX, and insurance provider Pru Life UK, underscored the huge benefits in including women entrepreneurs into the country’s financial systems.
Global studies conducted by the International Finance Corp. (IFC) and the Organisation for Economic Co-operation and Development (OECD) found that male-led businesses have more access to business financing than their female counterparts.
And yet, women entrepreneurs, according to a “Digital Readiness Study” conducted by the Department of Trade and Industry (DTI), are motivated to grow their businesses for their families and communities. They just need more knowledge and skills to optimize digital platforms and convert engagement to sales.
“The future of finance is in many ways female,” UBX President and CEO John Januszczak said.
Plugging gender gaps
BSP Deputy Governor of the Financial Supervision Sector Chuchi G. Fonacier said bridging gender gaps by empowering women to become entrepreneurs and democratizing access to finance for female-led businesses are important areas that the central bank wants to address.
“One area where there has been substantial exchange and sharing of ideas and initiatives between the BSP and its stakeholders is empowering women to become successful entrepreneurs in the MSME sector. The BSP recognizes the important role of MSMEs in the economy, and in line with this, the BSP has implemented a wide range of policies and regulatory relief measures to support them — particularly as they have been among the most vulnerable sectors during the pandemic,” Ms. Fonacier said.
These include measures that provide incentives to supervised financial institutions to extend financial relief to borrowers, initiatives that incentivize bank lending, and endeavors that promote continued access to lending and financial services, among others.
“The BSP continues to promote the adoption of innovative MSME financing approaches by banks such as the agriculture value chain financing and supply chain financing to direct much needed funds for this sector,” Ms. Fonacier said.
Ms. Fonacier explained that empowering women entrepreneurs also involves financial literacy measures, as this will equip them with the right knowledge to tap the right tools for their financial needs.
“Financial literacy promotes economic empowerment of women as they aspire to become leaders and agents of change, financial inclusion, and sustainability. Financial literacy leads to growth and development in women welfare and, in turn, contributes to economic growth. Financial feminism through financial literacy presents an opportunity not only to reduce gender gaps in pay, investing, and wealth but also to use women’s increasing financial power to align with the goals and actions required to build a sustainable and equitable future,” Ms. Fonacier said.
Significant driver
For her part, Senate Committee on Women, Children, and Family Relations Senator Risa Hontiveros lamented that the pandemic magnified the vulnerabilities of Filipinas.
“We must expand the opportunities for women, especially in financial inclusion. Hindi lang pinto ang dapat pagtutulungan buksan, pati bintana. We can find solutions to common problems of limited access to financing support, training, business development services, and technology that will enhance the competitiveness of women-led micro, small and medium enterprises,” Ms. Hontiveros said.
Ms. Hontiveros also called on the government to enhance its support for the development of digital solutions that democratize access to financial services for women entrepreneurs, noting that the majority of enterprises in the Philippines are female-led.
UBX Managing Director for Banking Services Anne Yosuico agreed, saying that it is imperative for the finance sector to empower women-led businesses as this leads to significant growth to the broader economy.
Citing a McKinsey Global Institute study, Ms. Yosuico said addressing gender gaps could add between $12 trillion to $28 trillion to the global economy, which is larger than the combined economies of the US and China.
World Bank data shows that the Philippines is one of three countries with more female sole proprietors than men. In fact, before the pandemic, 55.8% of business name registrations were women-owned and run, according to data from the DTI.
Furthermore, 64% of MSMEs assisted by the DTI Negosyo Centers were led by women. Another 64% of the 5.8 million individual members of the cooperatives under the National Association of Training Centers for Cooperatives (NATCCO) are female.
“If you look at the potential impact of women, it is game changing,” Ms. Yosuico said. “This investment in women whether it’s through education or targeted financial services — will result in an impact of this scale.”
Ms. Yosuico emphasized that UBX has been in the business of empowering women entrepreneurs through its open finance platform, considered to be the leader in the Philippines.
Through open finance, participating banks and other financial institutions are able to tailor financial products and services to the needs of women.
“There are so many other things that we can do. We can start to look at how women entrepreneurs can also enable other women entrepreneurs. We can provide focused resources and services aimed at enabling women. Most of all, participation and representation matters, so where you are — you have to keep the conversation going. Doing this will open more access for women, especially women entrepreneurs,” Ms. Yosuico said.
For her part, Pru Life UK Chairperson Ida Tiongson said it is imperative for the Philippines to address the four major problems of women entrepreneurs, which she listed as lack of money, lack of confidence, lack of support, and lack of time. These four, she said, can be addressed by promoting financial literacy among women.
“Helping women will have a domino effect on the economy,” Ms. Tiongson said. “The bottom line for all of us is education.”
M.A.X.: ‘Media as Authors of eXperience’ event is back for its 5th installment
TOMCAT-UST’s annual event, Media as Authors of eXperience or M.A.X., returns on April 12, 2022 for its second virtual installment to direct students in responsible media consumption, and uncover what potential lies behind the media industry.
First initiated in May 2018, the event has tackled various media-relevant topics, and now going deeper on today’s media scene. As it dynamically grows, M.A.X. 2022 presents a three-part discussion in a one-day event that features respectable media personalities and professionals. This year’s edition is named #PrimeOfInfluence, inspiring its audience to navigate the current digital reality with limitless passion for their craft.
If you possess an interest in aiding yourself with media literacy, check out TOMCAT-UST’s social media pages @TOMCATust. — Samantha Tawat and Claudia Ramos
Refocus enables Filipino entrepreneurs and young professionals to jump-start digital marketing careers
The Philippines continues to see the rise of digital marketing among many businesses. In 2021, it was found that 92% of Filipinos shopped online while another 71% buy through brand websites and social media platforms. Businesses also continued to spend more money on social media ads while Filipinos are first in Asia in terms of average daily time spent over the internet.
Refocus, an online education technology company, sees the potential of many Filipinos to leverage this opportunity. Whether a regular Juan, a fresh graduate, an entrepreneur, or a young professional, anyone can jumpstart his or her digital marketing careers in hopes to find a better job or way of earning or prepare for bigger roles in the digital marketing field.
According to LinkedIn’s Emerging Jobs Report, jobs evolve, and new ones emerge as technology creates new opportunities and industries. In the Philippines alone, the research revealed that upskilling is critical to the Philippines’ growth and the companies that succeed are the ones that make the workplace conducive for continuous learning.
“Digital marketing has become an in-demand industry that many, if not all, companies have come to realize they need to succeed today. Regardless of the industry, companies see the benefits of utilizing the potential of digital marketing in helping companies reach their goals. However, with these possibilities comes the challenge of many to find an end-to-end learning experience that can give them the exposure needed as if already in the real world,” said Roman Kumas Vyas, founder of Refocus.
There are many possible free and paid courses online that consumers can choose from, but it is different and much more beneficial if a program can provide users the needed exposure to industry leaders and potential corporations that can hire them after they graduate from the course. Refocus aims to provide its students with an education that provides further employment opportunities and increases their potential to earn.
Upskilling the Filipino workforce
“We’re not only here to educate and equip our students with the right digital marketing knowledge and skills. We are here to help them learn, practice, and eventually gain employment at companies looking to beef up their marketing teams. We have set the goal of educating one million students by 2026. Our team is building a system that will be able to face all the challenges, risks, and opportunities,” emphasized Mr. Vyas.
Refocus’ digital marketing program aims to help a person with zero knowledge and experience in marketing to become a specialist viable for employment in any company. It offers an online program that helps students understand, practice, and immerse themselves in various aspects of digital marketing in a span of nine months. Graduates earn a certification once they finish the program. Students are gathered in communities and learn new job-ready skills with the help of Refocus’ corporate partners and curators.
In addition, Refocus’ program is designed to meet the standards and needs of real employers who seek qualified candidates. “The program we offer at Refocus are developed to meet global education requirements and be locally relevant. This is why the industry experts and top professionals we work with in the course are all local, top-notch and able to provide our students with real-life cases that will help them learn from the very best,” stated Mr. Vyas.
Increasing employment potential through digital marketing skills
The digital marketing program offered by Refocus features cognitive, affective, interpersonal, and psychomotor skills. Students will not only learn the basics of digital marketing but even imbibe and practice the soft skills needed to become a great digital marketing specialist.
From job finding skills to having a growth mindset, Refocus wants to inspire current and potential students with the vast opportunities digital marketing offers. Interpersonal skills are likewise practiced by working in a team for particular digital marketing tasks.
Furthermore, students are given the opportunity to access necessary software programs to help them better understand and practice digital marketing. From digital marketing strategy to content creation, performance marketing, paid social efforts, customer relationship management, SEO, Social Media Marketing and Analytics, Refocus has truly made learning digital marketing accessible to Filipinos.
“We firmly believe that students learn best when they practice what they learn. Our digital marketing program is just that – theoretical and practical activities that will equip our students the confidence, determination, and necessary skills to make them competitive in the market,” said Mr. Vyas.
More banks signal intent to sell NPAs
By Luz Wendy T. Noble, Reporter
ANOTHER asset management company (AMC) has been given regulatory approval to buy banks’ bad assets amid the pandemic.
This as more banks expressed intent to avail themselves of the incentives under the Financial Institutions Strategic Transfer (FIST) Law as they seek to improve asset quality by disposing of nonperforming assets (NPAs).
Based on the latest directory of the Securities and Exchange Commission (SEC), there are already six FIST corporations (FISTCs) as of March 24. PI One FISTC-AMC was added to the list.
The Finance department said there were five FISTCs as of January, namely the Philippine Equitable Recovery FIST-Asset Management Corp., Philippine Recovery Co. FISTC-AMC, Inc., Argo Global Servicing Philippines (FIST-AMC), Collectius FISTC-AMC Private Ltd. Corp., and Resurgent Capital (FISTC-AMC), Inc.
Republic Act 11523 or the FIST Law was signed in February last year and allowed for the creation of SEC-registered AMCs that can help banks clean their balance sheets after the rise in bad assets during the pandemic.
Assets that will be recognized as nonperforming until Dec. 31, 2022 will be eligible to be sold under the law to FISTCs.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said they have received applications for validation of a master list of nonperforming assets from 14 banks. This was higher than the 11 banks as of January.
So far, the BSP has validated four banks’ final master list of eligible NPAs, while the rest are still in various stages of evaluation, Ms. Fonacier said.
“Based on latest simulation, the implementation of the FIST Act is projected to result in disposal of NPAs consisting of nonperforming loans (NPL) of P157.2 billion and Real and Other Properties Acquired of P49.2 billion under an assumed disposal rate of 30%, similar to that experienced during the 1997 Asian Financial Crisis,” Ms. Fonacier said in a Viber message.
Ms. Fonacier said they have not yet received an application for issuance of Certificate of Eligibility from BSP-supervised financial institutions on the transfer of NPAs pursuant to the FIST Act as of now.
“However, submission of master list applications to the BSP by these banks signifies their intention to avail of the incentives under the said law,” she said.
The Certificate of Eligibility of a financial institution looking to sell NPAs will be provided to the SEC and Bureau of Internal Revenue for reference on tax incentives.
Among big banks, Philippine National Bank (PNB) and Rizal Commercial Banking Corp. (RCBC) said they are interested in selling NPAs through the FIST Law.
“We are considering offloading consumer and business loans which are not susceptible to the normal collection process and those will take too much time to collect,” PNB said in an e-mail to BusinessWorld.
“RCBC is looking to offload some of its assets through the FIST Law, as we would like to take advantage of the investors’ increased appetite to invest in distressed assets, given the tax incentives that they can avail,” the Yuchengco-led lender said in an e-mail.
When asked, BDO Unibank, Inc. and Metropolitan Bank & Trust Co. said they are not keen on tapping the provisions of the FIST Law.
Latest BSP data showed the NPL ratio of the banking industry hit a three-month high of 4.24% in February. Bad loans rose 2.38% to P472.774 billion from a year earlier.
During the pandemic, the NPL ratio hit a 13-year high of 4.51% from July to August 2021, which is still much lower than the 17.6% seen in the aftermath of the Asian Financial Crisis in 2002.
IT-BPO workers want WFH arrangements indefinitely
By Revin Mikhael D. Ochave, Reporter
INFORMATION TECHNOLOGY-business process outsourcing (IT-BPO) firms and other registered enterprises should be allowed to continue work-from-home (WFH) arrangements indefinitely, according to a group of IT-BPO workers.
This after the government on Friday said it is allowing a hybrid work setup for IT-BPM companies and enterprises registered with the Philippine Economic Zone Authority (PEZA) until Sept. 12, 2022.
In a statement over the weekend, Alliance of Call Center Workers (ACW) Co-Convenor Emman D. David said that the best solution for IT-BPO workers is to have a hybrid work arrangement that allows employees to choose their preferred method.
“We would appreciate it if (the government) would declare that they would honor WFH arrangements indefinitely,” Mr. David said. “The best and only solution to this issue is a hybrid setup wherein BPO employees are given the option, guaranteed by Republic Act No. 11165 or the Telecommuting Act, to work from home should they wish to.”
On April 8, the PEZA announced it is allowing not more than 30% of the workforce of registered IT-BPOs and business enterprises to continue with a WFH arrangement until Sept. 12 or the end of the state of calamity declared by President Rodrigo R. Duterte due to the pandemic.
“As long as our ecozone locators doing hybrid work are complying with the minimum 70% export sales and minimum 70% on-site report by their workers, they are, and should be, entitled to enjoy our tax incentives. The 30% work from home is permissible activity under PEZA, CREATE (Corporate Recovery and Tax Incentives for Enterprises), and Telecommuting laws,” PEZA Deputy Director General Tereso O. Panga said in an April 8 statement.
BPO companies earlier asked the government to extend the 90% WFH arrangement, which ended on March 31, citing health concerns due to the ongoing pandemic and the recent spike in fuel prices.
“We have received reports from some of our group members that their employers are interested in requesting a Letter of Authority (LOA) from the PEZA for the 30% work-from-home setup but are unsure how to proceed given the situation,” ACW’s Mr. David said.
“While we welcome the move of PEZA to allow a 30% work-from-home setup for registered BPO companies, we are concerned about the confusion that it brings considering the previous statements that were made by the agency,” he added.
The PEZA has said that any enterprises that want to continue the WFH arrangement beyond Sept. 12 should file individual applications with the agency.
Sought for comment, PEZA Director General Charito B. Plaza said via Viber message that the agency has received over 400 LOAs as of April 8.
“There’s no confusion as far as PEZA-registered enterprises because we’re just going back to the regular policy of 70%-30% before the pandemic. We started to issue WFH LOAs since 2017, and increased it to 90% at the start of the pandemic in 2020 as PEZA’s business assistance,” Ms. Plaza said.
Ms. Plaza said ACW’s call regarding work arrangement can be addressed by the next administration, adding that the 70-30 ratio is already sufficient.
“There’s no more time to amend existing policies and laws. PEZA’s 70% onsite, not more than 30% WFH ratio is good enough. That’s the hybrid policy we used since 2017. Those business enterprises registered with PEZA are exporters and even prior to the pandemic, in 2017, IT-BPOs were already availing of the WFH even much less than 30%,” Ms. Plaza said.
“The hybrid 70-30 ratio of PEZA is for export-oriented IT-BPOs. (The) possible higher ratio of WFH can be provided by non-PEZA registered IT-BPOs registered with the Board of Investments,” she added.
Meanwhile, Trade Secretary Ramon M. Lopez said via Viber message that increased onsite work is necessary to boost the country’s recovery from the pandemic.
“(We) need more onsite operations to accelerate economic recovery. But we know that there are cost efficiencies in a hybrid/WFH set up, so we can allow that to the extent allowed in the law,” Mr. Lopez said.
Under Fiscal Incentives Review Board (FIRB) Resolution 19-21, registered IT-BPO firms were previously allowed to conduct a WFH arrangement for 90% of its total workforce while enjoying tax incentives until March 31, 2022.
The FIRB rejected PEZA’s request for the extension of the resolution, arguing that the WFH arrangement is a “time-bound measure” and that workers should return to the office following the country’s improving vaccination rate and to help boost economic activity.
As of end-2021, PEZA said 1,274 IT locator companies operate in 297 IT centers and ecoparks, and employ over a million nationwide.
Pinoy teleseryes gain global following amid coronavirus pandemic
By Michelle Anne P. Soliman, Reporter
LE MARIE GRACE BALDERAMA, 28, watched The Broken Marriage Vow, ABS-CBN Entertainment’s adaptation of the BBC original series Doctor Foster, on YouTube from her home in Canada.
“I was curious,” the Filipino interior design technician said in a Facebook Messenger chat. “I have watched the Korean version and I wanted to compare the plots.”
Ms. Balderama also watches with her parents Filipino talent shows The Voice Philippines and Tawag ng Tanghalan on iWantTFC and YouTube.
The rise of streaming platforms amid a coronavirus pandemic has given Filipino TV shows a chance to be seen by a worldwide audience.
Online market research firm Statista says 77% of Filipino internet users aged 16 to 64 used a video streaming subscription service in 2020. Netflix was the leading platform in the Philippines with a 35% market share.
Major entertainment companies in the Philippines have been exporting TV shows even before the pandemic.
ABS-CBN’s romance drama Bagong Umaga, known globally as New Beginnings, is aired in more than 41 African countries including Kenya, Ghana and Madagascar. Its action-drama series Asintado is aired with a French dub in Africa’s French-speaking region including the Ivory Coast, while La Vida Lena is airing in Myanmar under the Burmese title Maya Galeisar.
Four GMA Network dramas — Madrasta, Kambal, Karibal, Legally Blind and Onanay — were set to premiere in Africa and a deal with SynProNize, a Dubai-based content distribution and production company, the listed company said in September.
Last year, GMA’s Spanish-dubbed versions of Little Mommy (La Inocencia De Tania), For Love or Money (Por Amor o Por Dinero) and A Place in Your Heart (La Madrasta) also debuted in Ecuador.
ABS-CBN, which imported the hit Mexican drama series Rosalinda in the Philippines in the 1990s, formed its International Sales Team later, bringing Mula sa Puso to Malaysia in 2002 and Pangako Sa ‘Yo to Kenya in 2003.
“For the first five years, we concentrated on selling six of our top-rating titles,” ABS-CBN Sales Head Laarni Yu said in an e-mail. Rival GMA Network started its syndication business in 2007 through its Worldwide Division.
“We began with the export of a few of GMA’s top-rating dramas to an Indonesian broadcaster,” Roxanne J. Barcelona, vice-president and consultant of GMA Network’s Worldwide Division, said in an e-mail. The dramas were dubbed in Bahasa. After Indonesia Malaysia, Brunei and Singapore followed suit.
Acquiring foreign content for GMA allowed them to build a network of international clients and helped the company develop its syndication business, she said.
Early GMA dramas syndicated in Southeast Asia in the past 15 years included Marimar, Dyesebel, Encantadia and Mulawin.
“When we started off with Cignal Entertainment, international distribution had always been in the radar,” Cignal Entertainment Vice-President Isabel Aranez-Santillan said in a Zoom interview. “We knew that whatever we would produce for the TV or theaters had to travel outside the Philippines.”
Anyone who buys Filipino content always considers the story and production quality, Ms. Barcelona said. “Buyers also consider a program’s target audience and past ratings. These are indicators of a program’s potential to also rate well with a similar audience segment.”
Similarities in culture and experiences are also important factors that influence the salability of TV programs, she added.
“We take into consideration several cultural factors when choosing the titles we sell to each territory,” Ms. Yu said. “Understanding the audience is key — how they relate to the characters, actors’ appearances, language and the universal theme of family love are some of the bases for our decisions.”
ABS-CBN has sold more than 50,000 hours of TV content in more than 50 countries.
The network’s shutdown after Congress rejected its franchise extension in 2020 quickened its digital transformation, forcing the company to migrate to the online world, where it has become the country’s leading local content producer for both news and entertainment.
The company posted a P3.8-billion net loss in the nine months to September 2021, lower than the P7.3-billion net loss a year earlier, according to a disclosure to the Philippine Stock Exchange.
“ABS-CBN furthered its international reach by merging its proprietary digital application to iWantTFC and ungeoblocking of entertainment and news content in various regions across the world,” it said. It distributed more than 180 titles to various territories in Asia, Africa, the Middle East and Europe as well as on various over-the-top platforms, generating more than P292 million.
In contrast, GMA Network’s net attributable income during the same period rose by 53% to P5.98 billion from a year earlier, boosted by ad revenue that rose by 35% to P15.5 billion, according to a stock exchange filing. Net income from international operations fell to P506.6 million from P649.1 million a year earlier.
“As long as the theme is universal, such as love and family values, and even the other networks have been producing content that are really marketable outside the country,” Cignal TV Vice-President Jeffrey Remigio said via Zoom.
For filmmaker, TV and music producer and writer Christopher Cahilig, a project should first and foremost be commercially viable.
“I know it’s not the most ideal for other people because they will always say, ‘I want a story that’s artsy,’” he said. “If you come in with a big premise that the material is commercially viable, it will make sound business.”
“We start pitching the story concept to the streaming platform,” Mr. Cahilig said in Filipino. “If they don’t like the material, we don’t produce it. We don’t bet on something that’s not going to be a hit.”
MEASURING SUCCESS
A TV series production costs P15 million to P25 million, which includes the cost of shooting and hiring known actors. A 30-50% mark-up is the usual expectation, he added.
A TV series is deemed a success if there’s wide viewership and good social media feedback and engagement.
“Ratings are still the main factor when determining a program’s success,” Ms. Barcelona said. “Unfortunately, not all clients subscribe to rating providers and not all territories have TV ratings readily available. This is why we regularly communicate and receive feedback from our clients.”
Social media feedback on the social media pages of GMA and its clients is also a good indicator of a show being considered a hit, she said. “The success of a drama also results in increased foreign social media followers for our artists.”
“The best indicator is a client’s decision to buy more dramas from GMA,” Ms. Barcelona said. “A program can be so successful that a client decides to also acquire its format rights to do a remake in their country,” she added, noting that they have sold a number of their drama formats in Vietnam, Cambodia and Latin America.
Another measure of success is ad revenue if the TV series is offered on an advertising-based video on demand service, which is free to consumers, said Pia Laurel, ABS-CBN head of international distribution. “If the platform is subscription video on demand-based, its benchmark is whether the title could drive new subscriptions or renewals.”
For “over-the-top” — where material is distributed directly to viewers on the internet — and other streaming platforms, the number of views and minutes spent on a show is a good measure of success, Mr. Remigio said.
“GMA has embraced a ‘glocal’ outlook in producing content, or content both for the local and global markets,” Ms. Barcelona said. This is aside from trying to keep up with the technical aspects of TV production and be at par with international standards, she added.
The network’s syndication business also paved the way for co-production and partnerships with major international players.
“As a content company, our dream and primary focus is to create and produce more original stories that will resonate and reach every audience worldwide,” Ms. Laurel said.
Cignal’s plan has always been to create a library of content not only for TV but also for over-the-top and theatrical release, Ms. Santillan said. “When we do that, we are cognizant of the other platforms where we can distribute them.”
Whatever the narrative is, the human experience should bridge cultural differences.
“We think about the human experience and how it’s told.” Mr. Cahilig said. “Because people have access to so much content now, I think being distinctly Filipino will really help you stand out.”
Ms. Balderama, the Filipino-Canadian, wants to see more morena actors, queer topics and stories of people like her who have succeeded elsewhere.
“I see stories about migrant Filipinos dealing with many realistic problems, but I also would like to see more stories of them flourishing in their chosen new lands.”
VistaREIT plans asset infusion ahead of share offer
VISTAREIT, Inc. has linked its expansion on the Villar group’s profitable assets and project pipeline, as it readies its initial public offering ahead of the country’s recovery from the pandemic.
In a statement over the weekend, the real estate investment trust of Vista Land & Landscapes, Inc. said it is “anchoring its solid expansion program” on what it described as a robust, geographically diverse pipeline of profitable assets.
Vista Land, the listed holding firm of the Vista group, is a developer of residential subdivisions and builder of housing and condominium units.
VistaREIT is also eyeing the infusion into its portfolio of the Worldwide Corporate Center, the Vista group’s prime office property and main office located in Mandaluyong City.
Late last month, VistaREIT filed a registration statement with the Securities and Exchange Commission for a P9.18-billion initial public offering.
Based on its plan, it will offer up to 3.33 billion secondary common shares at a maximum offer price of P2.50 per share, with an overallotment option of up to 333.7 million secondary common shares.
According to Vista Land, VistaREIT has a “massive opportunity for growth” since its inception comes as the Philippine economy recovers from the coronavirus disease 2019 (COVID-19) pandemic.
Vista Land’s commercial assets are composed of 31 malls, seven office buildings and 69 commercial centers with a combined gross floor area (GFA) of 1.6-billion square meters (sq.m.)
It also owns about 3,000 hectares of raw land, also known now as the Vista Estates.
VistaREIT assets account for over 20% of Vista Land’s total gross floor area.
Its initial portfolio is composed of 10 community malls and two office buildings registered with the Philippine Economic Zone Authority with an aggregate gross leasable area (GLA) of 256,404 sq.m.
“Under its comprehensive plan, VistaREIT will also be focusing on the competitiveness of Vista Land’s properties in the market when it comes to its lease rates,” Vista Land said in a statement.
“The lease rates are set to provide opportunities for growth. VistaREIT can still maintain competitive pricing based on existing market rates,” it added.
Apart from current properties, VistaREIT said it also sees as a key advantage its working synergy with the Villar group’s retail ecosystem, which includes the publicly listed AllHome and AllDay home improvement and supermarket chains. — Luisa Maria Jacinta C. Jocson
The key to Geely PHL passes hands
New President and CEO Yugo Kiyofuji envisions cracking the top five by 2025
YUGO KIYOFUJI assumed his post as president and CEO of Sojitz G Auto Philippines (SGAP), which oversees the Geely business in the country, effective last April 1. He replaced Yosuke Nishi who had presided over the establishment of the automaker’s presence here starting in 2019.
Mr. Nishi leaves the company in good position. Overseeing Geely’s introduction and, significantly, its growth amid the pandemic, the executive and his team propelled the brand from obscurity to popularity. Last year, SGAP sold 6,104 vehicles — bettering the 2020 total by 183% — with only three models in its lineup. By the end of 2022, the network of operational dealerships is expected to number up to 40.
Geely Philippines also noted that its sales milestone of 10,000 units was achieved “in just two years and eight months” since opening shop — mainly through Geely’s immensely popular five-seater subcompact crossover Coolray, which has frequently topped its segment in sales. In his speech at the formal turnover ceremony held last week, SGAP General Manager for Sales and Marketing Froilan Dytianquin underscored, “We are indeed fortunate that despite the challenges of the pandemic, we have achieved this feat in less than three years, which we believe is the fastest in the industry.”
Remarked Mr. Nishi as he addressed guests from the lectern, “I’m very lucky to have been assigned to SGAP. Geely is my baby, because I’m the one who introduced the Geely brand in the Philippines back in 2019. It was indeed a challenging but rewarding experience. I cherish the memory of working together (with the team) to level up SGAP.” The executive, who moves to a new assignment at Sojitz Fuso Philippines as its president and CEO, described his successor as “the right man for the job.”
In a release, Geely Philippines said that Mr. Kiyofuji boasts 20 years of automotive experience with “other OEMs (original equipment manufacturers) and automotive-related companies in various overseas markets such as the Middle East, Latin America, and Australia.”
In turn, Mr. Kiyofuji expressed gratitude to his predecessor and recognized how SGAP had quickly made Geely a top 10 automotive brand in the country. He also thanked the network of dealerships, along with the support of the Yuchengco Group. “We are very much excited to take on the challenge,” the new Geely Philippines head declared.
Aside from Mr. Kiyofuji, SGAP is also welcoming Kazuki Sugino, who will assume the chief administrative officer position “in order to strengthen the quality of operations throughout SGAP.” The executive is no stranger to the Philippines, having worked with another auto brand for five years. Mr. Sugino also assumed “an executive role in (the) Sojitz headquarters.”
The new president and CEO isn’t bashful about his intentions. “Our role is to take SGAP to the next level and become one of the top 5 brands by 2025,” he stated. In a subsequent interview with the media, he said that Geely Philippines can realize this through a three-pronged strategy: by introducing new vehicles and enhancing existing models, strengthening the dealership network quantity and quality, and providing value-added services to the customer while assuring satisfaction.
While expressing satisfaction with the brand’s performance thus far, Mr. Kiyofuji averred, “I think there are (lots) of areas that are untapped,” and has set a yearly sales target (beginning this year) of no less than 10,000 units. He maintained that the Coolray will remain the company’s “bread and butter” even as “the Emgrand will be a true competitor.”
When asked by “Velocity” as to how he sees the Philippine market in general, Mr. Kiyofuji said, “As a macro-economy, the Philippines is going to be a booming economy from now on. You have more than 100 million people. What I understand is that more than 50% are aged less than 24 years old. They are going to be the actual buyers, going forward.”
He pleasantly noted that, “Filipinos are accepting of other brands, unlike other markets. They look at the details and don’t care too much where the vehicle is actually made in. That facilitates the business for me.” The Coolray’s success shows that “we can forget about the (made in China) stigma because it’s (quality is) very different from the stereotype.”
What he will take a close look at is after-sales — “How we supply the parts, how we service the vehicle on time without issues,” concluded Mr. Kiyofuji.
Alliance Towers to start building towers for Globe this year
COMMON tower provider Alliance Towers Corp. said it will begin erecting towers for Globe Telecom, Inc. this year, as part of its ambition to build 500 towers a year for the country’s wireless telecommunications operators.
The company recently signed an agreement with Globe, Alliance Towers President and Chief Operating Officer Alvin D. Tolentino said during a briefing on April 8.
He said Globe had “awarded sites in Visayas and Mindanao.”
The company aspires to build 500 towers a year, but with the current pandemic situation, it believes it can build around 200 towers this year for DITO Telecommunity Corp., Smart Communications, Inc., and Globe.
Alliance Towers has built more than 40 towers for DITO and Smart at the height of the pandemic, according to Sherwin G. Hing, chairman and chief executive officer of the independent tower company.
He said 80% of the company’s portfolio is from Globe.
As for the capital expenditures, he said: “We are looking at P40 billion in the next 10 years, or around P4 billion a year.”
Mr. Tolentino cited various factors as drivers of tower demand in the country, including increased data usage with more powerful applications and greater smartphone penetration, rollout of fifth-generation (5G) technology, cost savings from tower sharing, and 4G expansion into areas where 3G is still the dominant technology.
He also noted that the government aims to have 50,000 new towers in the next seven to 10 years just to meet the current capacity shortfall.
“The recent pandemic has brought about the urgent need for fast and reliable internet connectivity to enable digital transformation and the adaptation of the country to new digital landscapes,” Mr. Tolentino said.
“Unfortunately, there is a wide gap between the number of subscribers and the cell sites here in the Philippines to provide the bandwidth and connectivity that the Filipinos demand.”
For his part, Mr. Hing said: “We acknowledge our role in the success of the country’s digital transformation and advancement. This is why we have selected a management team who has a proven track record in the tech and telecommunications industry to lead our programs and initiatives in building digital infrastructures.”
“Furthermore, we also ensure that our experts are armed with the right extensive information and knowledge to develop our towers, and we have also developed standard parameters to ensure that our sites, services and operations are best-in-class,” he added. — Arjay L. Balinbin
Peugeot PHL sets records under new distributor
THE NEW management at Peugeot Philippines is reaping the rewards of its earnest efforts to revitalize the French automaker’s business in the country.
In a release, the Astara-led distributor said it has set “record retail sales,” complemented by a rapid addition of new dealerships, and the steady release of models to beef up Peugeot’s revamped local portfolio.
Year on year, the company’s overall vehicle sales spiked by 89% in the first quarter — driven by the new Peugeot 5008 and new Peugeot 3008, launched in January and February, respectively.
Meanwhile, the dealership network will soon number seven, with the imminent opening of four new facilities: Peugeot Alabang (operated by Automotive Icon, Inc.), Peugeot Balintawak (ANC Group), Peugeot Cebu (Gateway Group), and Peugeot Davao (Angcore Group). “All four dealerships are currently building their new showrooms, which are expected to open within the second half of the year,” said the distributor.
Stressed Peugeot Philippines Managing Director Raoul Picello, “We continue to make progress with our plans since relaunching the brand in January, and this momentum is being driven by our lineup of global Peugeot vehicles that is allowing us to become a premium auto brand of choice for Filipinos.
“Together with our growing dealer family, we remain fully committed to making the Peugeot brand accessible to more Filipinos nationwide, allowing us to better serve them and their needs.”
It could be recalled that, in an exclusive interview with “Velocity,” Mr. Picello had said he envisions Peugeot back in the consideration set of Filipino vehicle browsers. “That’s what we want: to be in the radar.” He added, “Until three months ago, we were not in the radar at all. Part of that is brand awareness. We are spending a lot more in communication — and products. And for that I am confident that we have a proposition for the year, and we are still working toward introducing even more new models. The network is a fundamental pillar of the strategy this year, and then the customer handling processes. That’s also a key area of strategic focus of our business.”
The executive explained then that he believes there are “various opportunities” presenting themselves. “With the cars we will launch this year, we will be present in a much bigger, larger share of the market. However, to be there with one version is not enough. We need more versions and that’s what we are working toward.”
Joining the 5008, 3008, and Traveller, Peugeot Philippines just last week unveiled the new 2008 SUV. The compact five-seater SUV is set to do battle in a particularly competitive (and lucrative) segment and price point. Coming in four colors (Amazonite Grey, Pearl White, Nera Black and the model-exclusive color Fusion Orange), the crossover is priced at P1.55 million.
Commented Peugeot Philippines Brand Head Maricar Parco in a statement, “The new Peugeot 2008 completes our SUV lineup for the Philippines alongside the 5008 and 3008. All three SUVs give Filipinos access to the unmatched experience that our Peugeot global SUVs offer, in three size options that meet the varying needs and lifestyles of our customers.”
The 2008 is assembled at the Stellantis-owned manufacturing plant in Gurun, Malaysia, which helps to explain its very competitive pricing. Powering the vehicle is an award-winning turbocharged 1.2-liter PureTech mill delivering 130hp and 230Nm. The performance promise is accessed through a “quick shifting” six-speed automatic transmission. Peugeot notes that “all vehicles built at the Stellantis manufacturing plant in Gurun undergo specific endurance and quality testing in Malaysia, to deliver best-in-class performance for local conditions and to meet the needs of customers in Southeast Asia.” The 2008 has specifically logged 200,000 kilometers of testing in diverse conditions.
Ms. Parco had previously stated that the firm is looking at releasing four models this year, and the 2008 is now the fourth in as many months. Launching vehicles, said Mr. Picello during the aforementioned “Velocity” interview, “will be the activity of 2022,” adding, “but I want to bring in more versions also of these models which are equally important. I cannot say anything because we still don’t have certainties.”
The executive expressed then that his own wish list for Peugeot releases here would “obviously (include) a pickup.” He commented, “It’s approximately 20% of the market in the Philippines so that would be interesting. And then what we call in Europe as light commercial — that also is important. And that could present opportunities. Stellantis is very strong globally in the commercial vehicles area; probably, it is the strongest group in that segment. And that is also where we’d like to see opportunities. But again, everything has to come gradually. The network has to grow, products will arrive. There are no overnight miracles.” — Kap Maceda Aguila