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Online systems for buses sought

THE Department of Transportation (DoTr) should require all bus companies to have an online booking platform for passengers to ease congestion during the holiday rush, a congressman said on Sunday.

Allowing passengers to buy bus tickets ahead of time could reduce congestion at transport terminals by easing long queues during the seasonal rush, Quezon Rep. Reynante U. Arrogancia said.

“For the convenience of passengers, the Department of Transportation should require all bus lines to have an option of advanced online booking and payment of bus tickets,” Mr. Arrogancia, a vice-chairperson of the House transportation committee, said in a statement.

“Advance online booking benefits passengers by giving them peace of mind, knowing they already have a ticket and a guaranteed seat on the bus,” he added. “It also works to the advantage of bus companies, enabling them to better predict passenger volumes and allocate the necessary buses and drivers for operations.”

Thousands of Filipinos are expected to flock to bus terminals during the Christmas break as they head to their vacation destinations for the holiday.

The Metropolitan Manila Development Authority in early December has already permitted provincial buses to ply the Philippine capital region major’s thoroughfare, Epifanio de los Santos Avenue (EDSA), to accommodate the surge of commuters during the Christmas break. — Kenneth Christiane L. Basilio

More tourists in Taiwan, PHL seen

SUNSET over Taipei City — THOMAS TUCKER-UNSPLAH

THE Philippines’ partnership with Taiwan is expected to increase Filipino tourists in Taiwan next year, the Philippine Travel Agencies Association (PTAA) said on Friday.

“I think this center will open the eyes of everyone and (allow) a mutual relationship between Taiwan and the Philippines,” Mariegel Tankiang Manotok, president of the Philippine Travel Agencies Association (PTAA), told BusinessWorld in an interview at the launch of Taiwan Tourism Information Center (TTIC).

“I think there will be more tourists in both the Philippines and in Taiwan arrivals as well,” she added.

Last June, the Taiwan Ministry of Foreign Affairs-Bureau of Consular Affairs announced the extension of its trial visa-free entry for Philippine passport holders and other citizens of its “New Southbound Policy” including Thailand and Brunei.

“Since the visa-free (policy) has already been extended until July 2025, so that would definitely incur a lot of interest again with our Filipinos,” Ms. Manotok said.

In a statement, the Taiwan Tourism Administration (TTA) said it sees the Philippines as a “high potential market” for tourism.

The TTA logged over 378,000 Filipino tourists in Taiwan last October, surpassing the 350,000-mark last year. The tourism administration added that this number makes the Philippines a top contributor to Taiwan’s inbound tourism.

“The Philippine market is one of the most valued markets for the Taiwan Tourism Administration,” it said.

Taipei Economic and Culture Office in the Philippines Ambassador Wallace Chow said he expects more than 400,000 Filipino tourists by year-end and hopes for 500,000 next year.

To achieve this goal, TTA plans to execute exclusive promotional strategies in 2025 to attract more visitors from the Philippines.

These activities involve Taiwan tourism-themed advertisements on trains in Metro Manila, tourism promotional videos on television, influencer collaborations, and media partnerships.

TTA also mentioned group tour incentives and discounts, raffle campaigns, “Buy 2, Get 1 Free” airline ticket promotions, and free Pocket Wi-Fi rentals captured the interest of the Philippine market. — Almira Louise S. Martinez

BI frontliners may greet travelers

BUREAU OF IMMIGRATION FACEBOOK PAGE

THE Bureau of Immigration (BI) said that frontline officers are allowed to extend holiday greetings to travelers during the Christmas season while emphasizing the importance of maintaining respect and inclusivity.

Commissioner Joel Anthony M. Viado noted officers must ensure all travelers feel welcomed regardless of their faith or background.

“Filipinos are known worldwide for their warmth and hospitality, especially during the holiday season,” Mr. Viado said in a statement.

“Greeting is not just about spreading joy; it’s about showing the world the Filipino way of celebrating — with warmth, respect, and inclusivity. It’s a simple gesture that reflects our identity as a people,” he added.

He reminded travelers that government personnel cannot receive gifts or tokens.

The BI previously reported that it anticipates approximately 110,000 daily arrivals and departures throughout the holiday season.

“A simple smile or greeting to our officers when they work tirelessly to provide service to travelers would surely cheer them up, especially during holidays when they sacrifice time with their families to report for work,” he added.

To ensure smooth operations, passengers are urged to arrive early at the airports and comply with immigration protocols. — Chloe Mari A. Hufana

Permit and license offices in every LGU sought to attract investors

SCOTT GRAHAM-UNSPLASH

A PHILIPPINE senator on Sunday pushed for a measure that seeks to establish business permit and licensing offices (BPLO) in local government units (LGUs) to speed up the process of setting up shop in the country, which he said would attract more investors.

“By establishing a BPLO in every LGU, we create a one-stop shop for business-related transactions, reducing the burden on our entrepreneurs and making government services more accessible and systematic,” Senator Sherwin T. Gatchalian said in a statement.

“LGUs need to be ready and equipped to respond promptly and effectively to investor needs particularly small businesses and startups to help generate employment opportunities for our people and underpin economic growth.”

Under Senate Bill No. 1278, the proposed BPLO Act, localities will establish these offices that aim to ensure businesses are able to sort out administrative requirements.

“The measure complements the spirit of the Ease of Doing Business Act, which laid the groundwork for efficient service delivery,” Mr. Gatchalian said. — John Victor D. Ordoñez

UP-PGH acquires new equipment, facilities

THE University of the Philippines-Philippine General Hospital (UP-PGH) enhanced its capacity to deliver advanced healthcare to poor Filipinos with the acquisition of diagnostic equipment and critical care facilities, reinforcing the hospital’s mission of providing free, high-quality healthcare while training future medical professionals.

In a statement released last week, the UP-PGH recently unveiled a cutting-edge Positron Emission Tomography (PET) and Computed Tomography (CT) scan facility, a first for any government hospital in the Philippines.

It also inaugurated a new centralized intensive care unit capable of accommodating 32 patients and installed a 128-slice CT scan. It serves around 700,000 patients annually.

These advancements are part of the hospital’s long-term master plan to modernize its services.

“We need this machine badly because it has become central to the diagnosis of cancer, a major concern of our healthcare system,” UP-PGH Director Gerardo D. Legaspi said in a statement.

Poor patients will use the machine 80% of the time, compared to 20% for paying patients, he added.

The PET-CT scan procedure can accommodate up to eight patients a day at present and will be scaled up to 15 once operations become more regular, he added.

UP-PGH’s advancements go beyond imaging as recent interventions have included free angiography and stent placement for heart attack patients, cochlear implants for poor children and robotic surgeries for underserved patients.

The hospital also offers new treatments, such as intraoperative radiotherapy for breast cancer, eliminating the need for prolonged radiation therapy and deep brain stimulation for Lubag disease or X-linked dystonia-parkinsonism.

UP-PGH is also the only hospital in the country offering High-Intensity Focused Ultrasound for tremors and has introduced a transcranial magnetic stimulation unit to aid patients with mental health conditions.

The recent addition of a robotic gait trainer in its rehabilitation department further underscores its commitment to providing better healthcare to marginalized communities.

Mr. Legaspi highlighted how UP-PGH’s modernization is supported by the government, with the hospital receiving a P7.72-billion allocation in the 2024 national budget. This represents one-third of the University of the Philippines’ total budget.

UP-PGH continues to collaborate with the Department of Health to expand access to its services for non-PGH patients and train healthcare personnel nationwide. — Chloe Mari A. Hufana

P88.3-M sea, lake port projects in BARMM set

COTABATO CITY — Members of various business blocs were elated with the allocation of the Bangsamoro government of P88.3 million for the improvement of a seaport in Tawi-Tawi and construction of five lake ports in Lanao del Sur.

The lawyer-entrepreneur Ronald Hallid D. Torres, chairperson of the Bangsamoro Business Council, and Mohammad O. Pasigan, who is overseeing the Bangsamoro Board of Investments, separately told reporters on Sunday that the port projects of the Ministry of Transportation and Communications (MoTC) in the autonomous region will boost commerce and trade in Tawi-Tawi and Lanao del Sur.

Tawi-Tawi and Lanao del Sur are component provinces of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

“These projects will boost our efforts of showing to potential investors in other regions and abroad that we have these facilities that are essential to the socio-economic growth of the Bangsamoro region,” Mr. Torres said.

Minister Paisalin P. Tago of the MoTC and representatives of four different construction companies forged in Cotabato City last Wednesday separate contracts for the modernization of the main building and the passenger terminal in the Bongao Seaport in Bongao, Tawi-Tawi and the construction of the lake ports in lakeside towns in Lanao del Sur.

Lake Lanao is where thousands of ethnic Maranaos catch freshwater fish every day that they supply to markets in Lanao del Sur’s 39 towns and in its capital, Marawi City.

Mr. Tago said the BARMM government has allocated P88.3 million for the projects.

“The lake ports that we are to construct will hasten the mobility of people who rely on Lake Lanao as a source of income,” Mr. Tago said.

The MoTC has two agencies, the Bangsamoro Airport Authority and the Bangsamoro Ports Authority, that manage the airports and seaports in the autonomous region, both under the operational control of Mr. Tago. — John Felix M. Unson

PHL remittances 4th among poorer economies in 2024

A man accepts Philippine peso bills at a money remittance center in Makati City, Metro Manila, Philippines, Sept. 19, 2018. — REUTERS/ELOISA LOPEZ

THE PHILIPPINES had the fourth-highest remittance levels among low- and middle-income countries (LMICs) this year, with inflows estimated at $40.2 billion, the World Bank said.

The bank said its rankings were topped by India ($129 billion), Mexico ($68 billion), and China ($48 billion). Pakistan ($33 billion) placed fifth.

“In smaller economies, remittance inflows represent very large shares of gross domestic product (GDP), highlighting the importance of remittances for funding the current account and fiscal shortfalls,” the World Bank said in a blog entry published on Dec. 18.

It said officially recorded remittances to LMICs are expected to hit $685 billion in 2024, up 5.8%.

However, the World Bank said this is likely an underestimate because of the volume of remittances coursed through informal channels.

Remittances in the Philippines are larger than foreign direct investment (FDI) and official development assistance, the bank said.

“The gap between remittances and FDI is expected to widen further in 2024,” it said.

It also said that in the past decade, remittances grew 57% while FDI declined 41%.

The World Bank said remittances are expected to continue growing due to “enormous migration pressures driven by demographic trends, income gaps, and climate change.”

It also urged countries to find ways to leverage remittance flows for poverty reduction, financing health and education, bringing about financial inclusion, and improving access to capital markets for state and nonstate enterprises.

The World Bank said the $40.23 billion estimated remittance inflow was equivalent to 8.5% of GDP in 2024.

For East Asia and the Pacific region, the remittance flows to low- and middle-income regions rose 0.74% to $136 billion in 2023. — Aubrey Rose A. Inosante

Recto: ‘Tweaked’ PIFITA bill to generate P300B by 2030

FINANCE SECRETARY RALPH G. RECTO — DEPARTMENT OF FINANCE FACEBOOK PAGE

THE Department of Finance’s (DoF) proposed changes to the Senate’s version of the capital markets reform bill could bring in additional revenue of P300 billion by 2030, Finance Secretary Ralph G. Recto said.

“We are raising new revenue. We’ve tweaked the revenue measures (like) the Passive Income and Financial Intermediary Taxation Act (PIFITA),” Mr. Recto told reporters last week.

The tweaks will produce “a revenue gain of up to P300 billion by 2030,” he added.

PIFITA, or House Bill No. 4339, is the fourth package of the Comprehensive Tax Reform Program, initiated in 2018 to bring about a more equitable and efficient tax system.

The bill seeks to “harmonize the taxation of passive income and financial intermediaries by reducing and simplifying the complicated tax rates on financial transactions.”

This modifications were made to the proposed Capital Markets Efficiency Promotion Act (CMEPA) or House Bill No. 9277, and its Senate counterpart — Senate Bill No. 2865, also called CMEPA.

The Senate’s CMEPA bill was filed by Senator Sherwin T. Gatchalian in November and is currently awaiting second reading.

In a letter with the proposed changes to the Senate’s CMEPA bill addressed to Senate President Francis G. Escudero, the DoF said factoring in the proposed changes, the bill could generate P13.85 billion in the 2025-2028 period.

Also projected for the period was a P289.08-billion tax collection generated by the Government Revenues Optimization through Wealth Tax Harmonization (GROWTH), previously referred to as DoF-enhanced CMEPA, in the same period.

However, the CMEPA bill in its current form could cause P140.11 billion in foregone revenue for the same period, it said.

“Considering the foregoing, we respectfully propose to include provisions and adopt the proposed language under the DoF’s GROWTH bill,” the DoF said in the letter.

Among the proposed provisions by the DoF are to repeal the exemption on excise taxes imposed on pickup trucks, and to set a uniform 20% interest income rate.

The DoF said the “repeal of the exemption on pickup trucks will address market distortions and inequities while restoring fairness among industry players.”

Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, pickup trucks were granted special tax treatment to benefiting small business owners and professionals.

It also proposed a uniform final tax rate of 20% on interest income on savings deposits, time deposits, foreign currency deposit units, deposit substitutes, and long-term negotiable certificates of deposit. 

Meanwhile, the House-approved PIFITA proposed lowering the interest income rate to 15%.

The Senate’s CMEPA bill does not mention any reduction of tax rates for interest income or repeal of the pickup trucks excise exemption.

The GROWTH bill is expected to raise much-needed revenue beginning in 2025, but will also “improve the progressivity of wealth taxes, harmonize business taxes on financial intermediaries, and level the playing field on currency deposits.”

Among the DoF’s proposed revisions are temporarily increasing the rates of capital gains tax on real property, donor’s tax, and estate tax to 10% from 2025 to 2030, which will be reduced to 6% effective 2031.

“Our proposal, on the 6% to 10%, on the capital gains of the estate and the donors, has a sunset provision until 2030. When 2030 comes, it will revert to 6%, unless extended by Congress. I’ll leave it to Congress,” Mr. Recto said.

He also reiterated that this is not a “new tax” but an amendment of the PIFITA.

Asked whether the decision to not impose new consumption-based taxes was due to the nearing midterm election, Mr. Recto said there are too many consumption taxes at present.

“Maybe what we can do is plug certain leakages like the PWD (Persons with Disabilities) benefits which are being abused. I think the National ID will help with that. I hope by next year, if I’m not mistaken, we will have sufficiently funded the PSA (Philippine Statistics Authority),” he said, referring to the agency overseeing the National ID program. — Aubrey Rose A. Inosante

PEZA targets proclamation of 30 new ecozones in 2025

THE Philippine Economic Zone Authority (PEZA) said it is looking to nearly double the number of new economic zone (ecozone) proclamations to 30 next year.

In a briefing, PEZA Director-General Tereso O. Panga cited the need to push out development to rural areas and bring more small and medium enterprises (SMEs) into the export economy.

“We are very supportive of the plan how (for integrating) more SMEs into the value chain. To do that, we need to promote the creation of more economic zones in the countryside,” Mr. Panga told reporters on Friday.

“(Ecozones) go hand in hand with SME development, including countryside development,” he added.

The investment promotions agency proclaimed 16 ecozones involving investment of P5.637 billion in 2024.

“If we can double (the number of proclamations), then that will definitely stimulate production as well as economic activity, especially in new growth areas,” he said.

PEZA has reported that 27 ecozones proclaimed under the Marcos administration, involving investments worth P9.715 billion.

Mr. Panga added that ecozones need a minimum of 25 hectares and investment of P1 billion to P2 billion.

He said the growth areas for new ecozones include Calabarzon, Region 3, Cebu, and Mindanao.

“The ones really making a big push for this are the (agriculture industry), because they are resource-seeking types of investments,” he added.

He said that PEZA is also looking to expand its portfolio of information technology (IT) parks.

“More IT parks are going into the cities and municipalities,” he added.

PEZA said that it was targeting between P235 billion and P250 billion in investment next year. — Adrian H. Halili

LPG service trainers win Energy dep’t accreditation

A man arranges tanks of liquefied petroleum gas (LPG) on a truck. — PHILIPPINE STAR/EDD GUMBAN

THE Department of Energy (DoE) said it accredited three industry associations as authorized training organizations for qualified service persons (QSPs) in the liquefied petroleum gas (LPG) industry.

In a statement on Sunday, the DoE said that its Oil Industry Management Bureau (OIMB) granted certificates of recognition to the LPG Industry Association, the LPG Marketers Association, and the Philippine LPG Association.

The three associations were the first to meet the standards set by the DoE for training organizations, its agency said.

“We encourage these organizations to adopt a collaborative and inclusive approach. Training should not be limited to members of their associations. By opening their programs to all interested individuals, we can raise the overall level of expertise in the industry, benefiting consumers and stakeholders alike,” OIMB Director Rino E. Abad said.

QSPs need to complete an approved training course conducted by the DoE, the Department of Trade and Industry, and other government agencies, or by an organization duly accredited by the government.

Under the Republic Act No. 11592 or the LPG Industry Regulation Act, all individuals engaged in any activity or facility regulated by the DoE within the LPG industry must complete an approved training program conducted by DoE-accredited organizations.

“This initiative aims to enhance industry standards, improve safety measures, and promote technical proficiency among LPG professionals,” the department said. — Sheldeen Joy Talavera

PHL obtains $501M in ADB funding to boost job quality, infra support 

PHILSTAR FILE PHOTO

THE Asian Development Bank (ADB) approved two funding packages totaling $501 million for the Philippines to support better job quality and infrastructure project planning.

Last week, the bank approved the $500-million Philippines: Business and Employment Recovery Program – Subprogram 2 and the $1-million Preparing and Implementing Climate and Disaster-Resilient Transport Projects.

According to the ADB, the first loan supports “building a business environment that fosters sustainable, high-quality jobs” particularly after the pandemic.

“Subprogram 2… ensures that the workforce is well-equipped to meet evolving industry needs,” the ADB said in a document uploaded on its website.

Components of the program include scaling up active labor market programs and liberalizing the business and investment framework, it said.

The ADB said the program seeks to raise the share of private-sector jobs in total employment to significantly above pre-pandemic levels.

Meanwhile, the Preparing and Implementing Climate and Disaster-Resilient Transport Projects, which was approved on Dec. 18, will support the implementation of the bank’s infrastructure projects.

The technical assistance is intended to provide critical support to the government’s Build, Better, More infrastructure development program, especially in capacity building and project preparation and implementation, it said.

Among those to benefit is the Infrastructure Preparation and Innovation Facility, tasked with preparing flagship projects such as the Bataan-Cavite Interlink Bridge; and the Laguna Lakeshore Road Network.

The 32.15-kilometer Bataan-Cavite Interlink Bridge project is set to link the provinces of Bataan and Cavite with a Manila Bay crossing. It was approved in December 2023.

Meanwhile, the $1.7-billion Laguna Lakeshore Road Network Project, which is expected to cut travel time between Taguig City and Calamba, Laguna, was approved in November. — Aubrey Rose A. Inosante

Future-proofing finance with future-ready controllers

IN BRIEF:

• Financial controllers need to step beyond compliance to create value and remain indispensable copilots to CFOs in driving organizational innovation and growth.

• AI adoption enhances controller impact on enterprise-wide operational efficiency, contributing to macroeconomic growth.

The rapid acceleration of digital transformation is reshaping the business landscape, compelling finance teams to manage returns on investment goals, meet customer demand for innovation, and align with long-term sustainability objectives — all at the same time.

This intersection of often-competing demands characterizes today’s Age of And, where success relies on an organization’s ability to effectively navigate and excel in managing these demands simultaneously. This evolving landscape necessitates a strategic shift in roles. Financial controllers, in particular, are moving beyond their traditional focus on operational tasks such as bookkeeping, compliance, and resource allocation and are now positioned as strategic enablers of value creation.

According to the 2024 EY DNA of the Financial Controller Report, 86% of surveyed controllers across 28 countries recognize that their responsibilities will evolve substantially over the next five years.

To execute their redefined responsibilities, controllers must harness tools such as analytics, automation, and artificial intelligence (AI) to transform vast amounts of data into actionable insights that can support strategic decision-making.

Predictive analytics enables controllers to identify trends, forecast scenarios, and optimize budgeting. For example, analyzing historical financial data facilitates cash flow prediction and improves financial planning, allowing for agile responses to business challenges.

Automation tools like robotic process automation (RPA) streamline reconciliations and report generation, reducing errors and accelerating processes. Automating financial statement consolidation enhances accuracy and delivers timely insights, empowering controllers to focus on strategic activities.

AI-powered solutions, such as machine learning algorithms, detect anomalies, assess credit risk, and anticipate market trends. These capabilities help controllers proactively manage risk and capitalize on strategic opportunities, reinforcing their role as value creators.

However, the successful integration of these tools requires controllers to adapt their skillsets and embrace a more collaborative role with Chief Financial Officers (CFOs) as copilots in driving innovation and organizational agility. This shift fosters greater cohesion within finance teams, breaking down traditional silos that often hinder efficiency and strategic alignment.

CREATING VALUE FROM DATA
Organizations are sitting on a gold mine of financial data, yet this resource often remains underutilized. Controllers can unlock this value using AI tools to transform complex datasets into actionable strategies. AI automates routine workflows, such as data consolidation and reporting, enhancing accuracy and freeing controllers to concentrate on strategic responsibilities like risk assessment and planning. Additionally, AI-driven analysis empowers controllers to forecast trends and develop proactive strategies, elevating their role as strategic contributors.

Beyond its micro-level benefits, AI has the potential to stimulate macroeconomic growth. In fact, a study by a global tech company estimates that AI adoption among Philippine businesses could contribute P2.8 trillion to the economy by 2030.

In the vital sector of micro, small, and medium enterprises (MSMEs), which account for 99.63% of Philippine businesses according to the 2023 List of Establishments compiled by the Philippine Statistics Authority, a data-driven ecosystem is essential for streamlining operations, boosting productivity, and achieving sustainable growth.

AI tools play a pivotal role by automating routine financial tasks such as accounts receivable (AR) collection. For instance, an AI-powered AR Collection Assistant helps prioritize accounts, identify at-risk customers, and recommend optimal actions. Integration with enterprise resource planning (ERP) systems creates a unified platform for agents, improving efficiency and simplifying follow-up processes.

By leveraging AI and automation, businesses can strengthen governance, reduce costs, and enhance operational efficiency, leading to long-term value creation. Additionally, integrating AI into business processes allows MSMEs to analyze complex datasets swiftly, uncovering actionable insights for strategic decision-making. For example, AI-driven predictive analytics can forecast financial trends, enabling businesses to proactively align strategies with organizational goals.

UPSKILLING FOR THE FUTURE
While many companies understand the importance of digital transformation, recognition alone will not drive progress. Delayed implementation risks leave organizations mired in inefficiency while competitors advance toward innovation and growth.

In the Philippines, a disconnect between ambition and readiness for AI adoption stalls digital transformation among companies. A survey by another global tech company found that although 65% of Philippine companies allocate 10-30% of their IT budgets to AI adoption, only 22% are fully prepared to implement AI technologies.

One critical obstacle is the skills gap, with only 23% of survey respondents reporting employee proficiency in managing AI tools. Within finance teams, this shortfall hinders controllers from meeting their redefined responsibilities, ultimately limiting their contributions and impacting organizational success in an increasingly complex business landscape.

REIMAGINING TALENT STRATEGIES
Redefined roles often encounter resistance, particularly as traditional roles for controllers have focused primarily on value protection (e.g., regulatory compliance) and value optimization (e.g., budget planning, cost analysis, and investment evaluation).

To address this, organizations must prepare teams for future-oriented responsibilities in value creation. One clear step is articulating a compelling vision for the controller role, emphasizing how their redefined responsibilities can contribute to the company’s long-term growth strategy. This approach not only clarifies their evolving responsibilities but also motivates teams to align with broader organizational objectives.

For new hires, prioritizing adaptable mindsets and a willingness to learn over rigid credentials ensures a more future-ready workforce. Meeting evolving role expectations also requires targeted upskilling through robust training programs, mentorship, and leadership opportunities, enabling controllers to excel in their redefined roles.

ACTIONS FOR FINANCE LEADERS
Organizational support is critical to empower controllers and their teams to develop the necessary skills while managing day-to-day responsibilities. According to the EY report, 59% of controllers state that their organizations encourage them to evolve into value creators to a large extent. However, many feel they lack adequate resources and support to make the transition.

CFOs and senior leaders can address this gap by allocating budgets for technology adoption and fostering cross-functional collaboration. Providing autonomy and facilitating engagement with the C-suite and key stakeholders can transform controllers into strategic drivers of value.

CFOs can further empower financial controllers by:

Integrating innovation into roles. Redefine job descriptions to include innovation as a core responsibility, directly linking it to performance metrics to ensure that controller efforts contribute to enterprise-wide value creation.

Leading transformative projects. Provide controllers with leadership opportunities in transformation initiatives, supported by adequate budgets, staffing, and mentorship. These experiences cultivate strategic thinking and innovation capabilities.

Focusing on future-ready skills. Equip controllers with expertise in data analytics, AI, and strategic decision-making. These skills will prepare them for evolving financial landscapes and amplify their organizational impact.

Expanding responsibilities strategically. Gradually assign controllers additional responsibilities to deepen their expertise and prepare them for future leadership roles, including the position of CFO.

Developing a talent pipeline. Build a robust talent pipeline by identifying high-potential candidates for controllership roles. Provide these individuals with targeted training and mentorship to ensure the role remains a source of innovation and leadership.

THE FUTURE-READY CONTROLLER
Controllers must take an active role in their evolution. By embracing opportunities to view value creation through a broader lens, they can enhance their contributions to financial planning and analysis (FP&A) and investor relations.

Strengthening engagement with the C-suite and other key internal and external stakeholders is equally essential. Successful transformation into a redefined role ultimately requires a commitment to continuous personal development. To achieve this, controllers should focus on the following key areas:

Embracing uncertainty and disruption. Proactively seek new opportunities to create organizational value, balancing these initiatives with compliance oversight and operational efficiencies.

Exploiting the potential of data and AI. Leverage financial data alongside operational and external data sources to generate insights that enable informed executive decision-making. Additionally, develop a roadmap for an AI-enabled controllership team, identifying the necessary data, processes, and controls.

Equipping teams for the future. Encourage agility by fostering diverse skills within teams, including business, personal, and technological capabilities. Inspire team members to view themselves as innovators and problem-solvers beyond their roles as financial and compliance experts.

PRIORITIZING CULTURAL ADAPTABILITY
Organizations must embrace a cultural shift that prioritizes adaptability and a growth-oriented mindset over reliance on legacy processes. To complement this shift, organizations must integrate a digital-first culture to break down silos and enhance operational efficiency, giving way for better, data-driven decision-making across all functions.

In doing so, controllers can leverage their redefined roles to streamline processes, provide actionable trends and insights, and drive innovation, making them integral contributors to sustainable growth and organizational success.

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

 

Anna Maria Rubi B. Diaz is an assurance partner under the Financial Accounting Advisory Services (FAAS) of SGV & Co.

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