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Nation at a Glance — (10/17/19)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (10/17/19)

Southeast Asia has a weight problem

By Adam Minter

STARTING next year, Singapore will treat packaged sugary drinks such as Coca-Cola the way that other countries treat cigarettes. Advertisements will be banned, and a label attesting to a beverage’s unhealthiness will be mandatory. The goal is to reduce the high rate of sugar consumption and associated health problems — such as diabetes and heart disease — that are now plaguing Southeast Asia.

The problem is quickly getting worse. Between 2010 and 2014, obesity surged 24% in Singapore, 27% in Malaysia, and 38% in Vietnam. Left unaddressed, this epidemic could exact steep human and financial costs. Banning ads for sugary drinks won’t solve the problem on its own. But if Singapore thinks a bit more ambitiously, it might provide a model for other emerging and newly developed countries needing to slim down.

It wasn’t so long ago that much of Asia was associated with undernourishment. Thanks to a half-century of economic development and income growth, that’s no longer the case. Although hunger remains an issue in some areas, overall, Asians now have access to more and better food than ever — a fact reflected in rising life expectancies across the continent.

But increased access to food isn’t all good news. As incomes have risen, Asia’s eaters have tended to shift away from traditional starch-based diets and toward food rich in fat, protein, dairy, and sugar, much of it packaged and processed. Calories that might’ve once been worked off in rural fields now accumulate on the hips and bellies of Asia’s middle classes as they settle in cities by the tens of millions. Meanwhile, local food cultures that posed few health risks in less affluent times turn out to be problematic in an era of cheap calories. The fried snacks emblematic of Malaysian street food pose minimal health risks in moderation. But thanks to their low-cost ubiquity, they’re now helping to make the country, in UNICEF’s words, “the fattest nation in Asia.”

Then there’s sugar. Even before low prices made sweets widely accessible, Southeast Asia had a sweet tooth. Now that it can be more easily indulged, consumption is skyrocketing. In Thailand, daily sugar intake has increased from 19 teaspoons a day in 1997 to 28 in 2019. Singapore is modest by comparison, with consumers averaging around 12 teaspoons a day, about half from beverages (a typical can of soda contains 10 teaspoons). But even that’s at the high end of the World Health Organization’s guidelines.

The health effects associated with this shift, combined with other unhealthy nutritional trends, have been severe. Southeast Asia now accounts for about 20% of all diabetics globally. Over the past two decades, countries in the region have seen the world’s largest increases in premature deaths related to cardiovascular disease. Already, obesity-related ailments take up as much as 15% of Indonesia’s national health-care spending and 19% of Malaysia’s.

Faced with such an epidemic, Singapore’s plan to ban advertising and mandate labeling certainly makes sense. But if the government really wants to reduce consumption, it’ll need to apply direct pressure on manufacturers and consumers by imposing taxes on the production and sale of sugary goods. In price-sensitive developing countries like Mexico, such taxes have proved effective in reducing consumption or changing manufacturers’ practices. In Malaysia, the mere threat of such a tax convinced F&N Beverages Marketing, one of the country’s biggest drink manufacturers, to reformulate 70% of its products to avoid the price hike.

Ultimately, developing countries will have to look beyond prepackaged goods. Informal street dining remains prevalent in most of these areas, and consumers seeking sugary snacks or fried food can simply frequent a stall and eat tax-free. Promoting healthy (or healthier) eating will require long-term public-education campaigns, ideally combined with school-based nutritional programs like the one Malaysia will be launching next year.

None of this will be easy or cheap. But, as with a diet, the improved quality of life should ultimately pay for all the sacrifice.

 

BLOOMBERG OPINION

Over a cup of entitlement

With over 30,000 stores globally, Starbucks is now the world’s largest “coffee” store chain. And while it is present in over 70 countries, in reality, however, only four big markets account for more than half of those stores: the United States, China, Japan, and Canada. In the Philippines, it reportedly has around 250 stores nationwide.

Starbucks is an old company. It started in Seattle, Washington in 1971 — almost 50 years ago. I’ve been to the original store near Pike Market, and from the way it looked, I figured the owners never really imagined the business getting as big as it is now. But it didn’t start growing big until after it was sold in 1987. By 2017, the chain reportedly had $22 billion in gross revenues; over $2 billion in net income; over $14 billion in assets; and, over 277,000 employees worldwide.

Starbucks opened its first store outside North America in Tokyo in 1996. This was unsurprising, of course, as Japan is a big consumer of coffee. And it was equally unsurprising that the first store had to be in the expensive Ginza neighborhood. A year after, in 1997, a store was opened in the Philippines, at 6750 Ayala Avenue, at the financial district of Makati City. More international stores later opened in London in 1998, and then in Sydney in 2000.

The Starbucks chain has been operating locally for over 21 years now, and has become a common fixture in many highly urbanized Philippine cities. For those born in the late 1990s and onwards, perhaps they can no longer imagine a world without Starbucks. The company enjoyed prime mover advantage here, being the first to promote the “new” coffee “culture.”

I bought into the Starbucks lifestyle early on. Being a young newspaper editor in 1997, Starbucks 6750 was a convenient, comfortable, and classy venue to do interviews or chat with news sources while in the financial district. It was also a nice place to have coffee and converse with friends or colleagues, either for professional or personal reasons.

When I stepped down as managing editor in 2005 and went into business for myself, Starbucks became my go-to place. One can get a cup of coffee, camp out with a laptop, and get work done — the whole day, if need be. As a freelancer, or small business owner — a.k.a people without offices — I found it convenient, comfortable, and practical to work in Starbucks and other cafés. Meetings were held there, and work got done in between. Coffee meetings were also cheaper than lunches.

And for people who travel frequently, Starbucks is always considered “home,” wherever they are in the world. Looking for coffee, or breakfast, or a place to hang and rest for a while, there is always a Starbucks store within reach. And, it looks and smells and feels the same wherever in the world you are. As long as it is properly maintained, of course.

But just as McDonald’s or KFC are quick-fix, go-to places for relatively inexpensive meals whether in the Philippines, the US, Japan, Hong Kong, or other parts of the world, identifying with these “brands”, however, is a generation thing. Perhaps they are more for kids and adults no older than 65 years as of today. For older folks, Starbucks is either too expensive or too noisy.

But the personal relationship with brands perhaps will not be as strong as with Starbucks when it comes to the search for “home.” Given a choice, one can be more inclined to “hang” in a Starbucks store than in McDonald’s, for instance. I, for one, will go to McDonald’s of KFC for food but will rather have coffee in Starbucks while waiting for someone or to get some writing done.

And this, to me, is where Starbucks gets it right. The others are all “fast” food, and want you to quickly eat your meal and send you on your way. Starbucks, in a way, is also “fast” coffee. Many go in-out and get coffee “to-go.” But the venue also invites you to take things “slow,” to ease into a comfortable seat, and slowly sip your coffee, while listening to soothing music.

Or, if you are the more practical type, to pick a spot, open your laptop, plug in your charger, and put on your earphones to listen to your own music. After buying something to eat or drink, of course. And while many will argue that Starbucks coffee is either inferior in taste or flavor, or expensive compared to others, what they don’t get is that people keep going back for more than just the coffee. The “experience” offered is what actually sells the place, in my opinion.

But the culture that Starbucks has cultivated in the Philippines since 1997 is not without its consequences. For one, it has paved the way for access to coffee or caffeine by teens when this was probably not as widespread around 20 years ago. In the past, coffee had always been for the older folks, while kids and teens consumed juices and sodas. But now a younger generation of coffee drinkers have evolved, more so with the popularity of cold brews.

And while Starbucks provided more comfortable venues for people to meet and converse face-to-face, to an extent, coupled with technology, it has also brought out the worst in some people. And this is the main reason that I don’t frequent the place like I used to. Many go to coffee shops to work or do business, which is fine. But there are some individuals who occupy tables good for three or four people and treat these as exclusive domains for hours on end.

And this sense of entitlement comes from the mistaken notion that buying one cup of coffee already gives them free, unrestrained, and unimpeded access to all services — occupying a table for three because they need to “work” or have a meeting; charging laptops and mobile phones for free; using two to three seats for bags and other stuff; unlimited time in toilets; internet access; etc. — to the inconvenience of other customers.

I once encountered a middle-aged man playing an online video game on his mobile phone while in a coffee shop. He was wearing earphones and was obviously conversing with other online players. He was loud and disruptive, and his mouth needed a good cleansing. But he was oblivious to the fact that he was irritating or annoying other customers. And, the store staff didn’t bother to tell him, perhaps avoiding the risk of offending a customer.

Simply put, some coffee stores have become too comfortable, so much so that customers take the liberty of doing as they please — forgetting that they are still, actually, in public and not in the comfort of their own private homes or offices. Worse, some inconsiderate individuals hold court in coffee shops, conducting business as if they own the place, with loud conversations to boot. Worse, they make a mess of the place without bothering to clean up as they leave.

This is not to say that Starbucks or coffee chains are to blame. After all, they are simply the venue, and not their customers themselves. And it will be difficult for stores to “screen” customers or to insist on exclusivity, for to do so is simply bad for business. My issue is not with lack of class but simply with lack of manners. One cannot help but be disappointed by the sense of entitlement some people get from buying a cup of coffee.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

#LifeatShopee

Shopee is a Singaporean e-commerce platform under the Sea Group, which was founded in 2009 by Forrest Li. Shopee was first launched in Singapore in 2015, and has since expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam, and the Philippines. In May this year, ASEAN UP ranked Shopee Philippines as second among the Top 10 e-commerce sites in the Philippines, with monthly traffic estimated at 14,400,000.

I work at Shopee.

Anchored on Shopee’s belief that “Our people define us,” the People Team at Shopee strive to make our stay in this organization fun, memorable, and worthwhile. They have come up with engaging and rewarding activities that all employees love. We have celebrated “Orange Day,” where we mark employees’ birthdays and work anniversaries with overflowing food and drinks; “Healthy Friday,” where scrumptious yet healthy snacks are served; and ”Fitness Wednesday,” where the People Team encourages colleagues to be fit through Muay Thai or Zumba classes. Recently, they have put up “Artsy August” where employees can unleash their artistic side. There is a wide array of classes to choose from: mobile photography, painting, as well as sushi-making. These are just some of the activities that have been planned for Shopee’s employees. Arguably, other companies might consider employee engagement too costly, thus, make it the least priority on their checklist. Shopee has a different perspective — they see employee engagement as an investment; an investment to increase employees’ morale, build connections, and reduce stress levels.

Employee engagement highlights the company’s belief that collaborative activities result in an increase in employees’ morale. When employees feel empowered and valued, they tend to increase their productivity. Additionally, these simple activities prove that the welfare of their employees is of high importance, which may result in more engaged employees who find purpose in what they do. These employees reciprocate by delivering impeccable performance. They increase efficiency and productivity that yield fewer errors and dynamic outputs. Indeed, happy employees are highly productive employees.

Employee activities like these also break down barriers and results in a friendly and collaborative environment. And this collaboration can spark fresh ideas for possible projects or process improvements. Furthermore, this can also be a good time for management to practice downward communication and get to know their employees and their insights or suggestions that might be helpful to some company projects. And for the employees, this could be a better opportunity for them to discuss their elevator pitch with the management, which they think might be valuable for the firm.

These activities provide connections too, not just for work-related purposes but for personal needs as well. The possibilities of building new connections for the good of the company and personal matters are endless. So better start engaging in a meaningful conversation with others during these employee engagement events, because, who knows, employees from other departments can become your friends, future business partners, or maybe your long-time partner in life.

Highly engaging activities can serve as a break time for employees who feel exhausted from the monotony of their work. These activities might result in reduced stress levels among employees and stimulate creativity which can serve as a good start for the day. Leveraging stress with highly collaborative activities keeps the employee motivated while having fun as well. Moreover, the People Team always puts in extra effort to provide employees with activities that are coherent with the company’s beliefs. With this, the employee not only appreciate the company’s virtues, but are also bounded by applying these principles to their daily lives.

 

Jerold Angelo Vizconde is an MBA student at the Ramon V. del Rosario College of Business. This essay was written as part of the requirement in his Strategic Human Resource Management class.

jerold_vizconde@dlsu.edu.ph

Have a nice day!

By Tony Samson

It can be startling at first to be greeted by strangers with a hearty, “Have a nice day.” The appropriate riposte is, “You too” (and not, “too late”). So routine is this exchange while visiting North America that we even initiate the salutation ourselves just to try it out, and expectedly get from the natives the expected “you too” reply.

As a people, we tend to be more reticent with strangers greeting us out of the blue. Unexpected exclamations of goodwill from bystanders in our part of the world entail instructions for us to give up our worldly goods. “Give me your phone” is such a phrase. It does not imply that the request is occasioned by a need to make a call for an airport pick up or do a computation on the phone for the exchange rate for the Japanese yen. The possibility of no longer getting back our new gadget is likely, as we stare at the quickly retreating figure.

Greetings and expressions of good cheer delivered for no occasion (as opposed to red-letter events, like Christmas and birthdays) reflect a society’s view of the future and what it usually brings. For a country prosperous and secure, the prospect of a nice day is a reasonable expectation. The pleasant passing of the next eight hours is considered as predictable as the bus schedules.

Such a stable view of how life will turn out may not be as confidently held in a different country that is avoided by tourists because of unpredictable disruptions like terrorist incursions or protest rallies by people wearing masks. There, a person of good cheer may express his diurnal view differently to a stranger, “Avoid marketplaces which attract glassy eyed young men with unusually bulky overcoats and a fugitive demeanor.”

Salutations thus vary from people to people, and place to place.

For a deposed political leader, parting words to a successor, perhaps out of goodwill and a desire for his colleague to avoid a similar fate could be, “Watch your back.” It is advice worth heeding even for corporations with an exiting CEO in the “turnover” ceremony for a replacement not listed in his succession plan.

Verbal ebullience is accompanied by physical expressions. The most accepted form of the latter is shaking hands. This practice is supposed to have originated from warlike cultures. The open hand is offered to show peaceful intent and demonstrate that one is not carrying a concealed weapon. The Roman version of this hand movement goes beyond the hands and clasps the arm up to the elbow in a longer version of the handshake, also known as the elbow clasp.

Ancient Rome too had its own nice-day greeting. “Ave atque vale” literally meaning “hail and farewell,” which for its expectation of a quickie meeting seems apropos. It is also used by gladiators expecting to meet their maker in a bit and adding — we who are about to die salute you. (Yes, the Latin version is a bit more impressive.)

Gaining ground among millennials is the wordless fist-bump which uses a closed hand lightly colliding with its counterpart. This form of greeting may be accompanied by the opening of the fist right after with a sound effect that sounds like “hiss.” That’s supposed to be fireworks to indicate elation.

Hugging, accompanied by an air kiss or cheek-touching is reserved for intimates and should be carefully choreographed with upper bodies not lingering too long in the clutch, unless the greeters are intimately related or have previously been introduced to each other.

The chest bump executed with a coordinated lunge into the air is reserved for athletes during a game. It is bestowed for some extraordinary shot (maybe, a rim-rattler) or defensive gem (swatting what was intended to be a slam). Chest bumps are not advisable for male-female greeters outside a sporting event. Fun runners for example are not allowed to bump frontally, while standing.

The cheerful greeting invoking a nice day may have become less widespread, even in North America. With terror alerts, joblessness and the eradication of retirement plans, even sunny Californians may find such exuberant optimism on the quality of the day ahead absurdly misplaced. Standing still cluelessly on a bike lane there is apt to invite invectives from passing cyclists, a shortened version of incestuous relations with mom.

Does it mean anything that our usual parting greeting is “ingat” or “be careful.” The vicissitudes of fortune in these parts makes the warning understandable… even caring.

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Facebook would be wise to just give up on politics

By Gina Chon and Jennifer Saba

SAN FRANCISCO/NEW YORK — There is an elegant solution to Facebook’s chronic problem with political ads: it could stop running them altogether.

The $525-billion firm is the favorite punching bag for pols on both sides of the aisle. The latest fracas comes from the camp of Democratic presidential hopeful Elizabeth Warren. The Massachusetts senator’s campaign ran a fake ad on the social network suggesting that Facebook founder Mark Zuckerberg is endorsing President Donald Trump in the 2020 US election. The point was to highlight Facebook’s failure to fact-check dubious claims in its quest for profit. Facebook maintains that political advertising requires a higher bar for free speech.

Social media firms are in a terrible position to police political ads, which often contain falsehoods. Such content usually enjoys additional legal protection thanks to the US Constitution’s prohibitions on restricting free speech. The Federal Election Commission oversees campaign finance laws and is a more appropriate agency to deal with such issues. Designating that power to Facebook and others gives them greater influence over public discourse.

But without clear government rules, online platforms make up their own — with messy results. Twitter recently announced it would start flagging posts by public officials that violate their rules but are permitted because they are in the public’s interest. Jack Dorsey’s company, along with Facebook and Alphabet’s Google, declined a request from the campaign of former Vice-President Joe Biden to take down a Trump ad making false accusations. CNN refused to run the ad but has aired others that contain inaccurate information.

That puts social media outlets in the awkward position of having to make judgment calls without being accused of bias. Conservatives already complain that Facebook stifles its voices; Zuckerberg has been hosting informal meetings with likes of Fox News commentator Tucker Carlson to smooth things over, according to Politico.

The outsized political spotlight is hardly worth it. For the 90-day period starting July 13 through Oct. 10, Facebook raked in roughly $136 million from political ads, according to its tally of state-by-state spending. That’s less than 1% of the $17.1 billion analysts forecast in ad sales for the third quarter, based on Refinitiv compilations. Folding up the political ad tent may be the winning move.

 

REUTERS BREAKINGVIEWS

Turkey and Russia show that land grabs can pay off

By Leonid Bershidsky

TURKISH President Recep Tayyip Erdogan’s land grab in Syria, like his Russian counterpart Vladimir Putin’s Crimea annexation, has met with a weak international response. Will that encourage more land grabs? Any nations thinking of doing so should be warned: Such conquests succeed only if they don’t set off full-scale wars.

The US has frozen the assets of the Turkish defense and energy ministries as well as those of the defense, energy and interior ministers. President Donald Trump also promised to stop negotiations with Turkey on a trade deal and to raise tariffs on Turkish steel. Turkey will barely notice these sanctions. It’s likely that the ministries and officials have no US assets, and their ability to continue using US financial assets through other branches of the Turkish government is more or less unlimited.

The European Union, for its part, agreed that its member states would commit “to strong national positions regarding their arms export policy to Turkey” — not quite an arms embargo, but a recommendation that European nations stop selling arms to Ankara. This is something Germany, Finland, France, the Netherlands, and Sweden have already promised to do. Erdogan could have lived with a full embargo, too: Russia is only too happy to sell him more weapons.

The sanctions on Turkey are even weaker than those imposed on Russia after it seized Crimea from Ukraine in March 2014. That month, the US and the EU imposed some travel bans and asset freezes on Russians believed to be involved in the operation, and the Europeans also prohibited all business with Crimea itself. Russia shrugged off these restrictions. Harsher measures, to which Russia responded with some import bans, only followed an escalation in eastern Ukraine and the downing of a Malaysian passenger airliner over territory held by pro-Russian rebels.

Like Putin before him, Erdogan can rest easy that his country won’t be hit with anything resembling the harsh UN Security Council-authorized sanctions slapped on Iraq after it invaded Kuwait in 1990. Those included an all-embracing trade and financial embargo.

The weakness of the Crimea- and northern Syria-related sanctions undermines the idea of a “territorial integrity norm” that is supposed to have crystallized in the post-World War II era. The emergence and acceptance of this norm — a general international consensus against military conquest and armed secession — is often credited for the declining number of conquest attempts in recent decades. But the conclusions of political scientist Mark Zacher, whose 2001 paper promoted the idea that this territorial integrity norm had led to a dramatic decrease in the number of border changes, has been challenged in more recent research. A causal link between the norm and the prevalence of land grabs is turning out hard to prove.

In a recent paper, Dan Altman of Georgia State University holds that conquest has never really gone obsolete. Instead, he claims, based on several updated datasets of interstate conflicts, that the nature of land grabs has changed:

As states increasingly came to shy away from intentionally waging war, war-prone forms of conquest declined earlier and more strongly. Conquest attempts more consistent with the fait accompli strategy and its aim of avoiding war proved more enduring. These tend to target smaller territories, especially those with little or no population and no military garrison that would need to be removed. It could have transpired that states would forgo conquest almost altogether as they increasingly sought to avoid starting wars. Instead, states avoided only war-prone conquest while persisting with comparatively war-averse conquest.

According to Altman, all the states responsible for the nine initial conquest attempts that led to wars — that is, conflicts with more than 1,000 battle deaths — since 1975 ended up losing the conquered territory. But out of the total of 30 land grabs involving parts of states that occurred between 1980 and 2018, conquest initiators held on to their territorial gains in half the cases. That means the successful conquerors are those who avoid a war.

HOLDING ON TO CONQUESTS
Trying to seize an entire country, as Iraq did in 1990, increases the risk of third-party military intervention, Altman wrote. What happened to Iraq after it seized Kuwait also shows that the sanctions in such a situation can be overwhelming. But “the victims of smaller conquests have been on their own,” according to Altman: “Of the 63 initial conquest attempts targeting parts of states since 1945, in only five did a third-party state — a friend or ally of the victim — fire at least one shot in defense of the victim.”

All this makes Putin’s Crimea grab a relatively typical success story for modern-day conquest. It involved little violence, and Putin correctly calculated that third-party intervention would be weak. On the other hand, Russia’s interference in eastern Ukraine is — also in keeping with Altman’s conclusions — more of a miscalculation: It set off a war, and Russia hopes to hand the territories now held by pro-Moscow separatists back to Ukraine if it can get favorable peace terms.

In Syria, Erdogan apparently also hoped for a Crimea-style fait accompli. But recent developments on the ground — such as the Syrian military’s intervention on the side of the Kurdish forces, as well as Russia’s insistence that Turkey shouldn’t hold on to any of the invaded territory — show that he may have miscalculated, just as Putin did in eastern Ukraine.

The weak Western reaction won’t force Erdogan to retreat. But the possibility of an all-out war might thwart his plan to clear a 30-kilometer “safe zone” in Syria. He may need to make a deal with Putin and Syrian dictator Bashar al-Assad. This could involve allowing him to resettle in northern Syria some of the 3.7 million Syrian refugees Turkey has been sheltering and no longer wants, perhaps making Russia and the Assad regime responsible for holding back any anti-Turkish activity along the border.

When it comes to conquests, it’s not clear whether any kind of operational “rules-based order” has ever existed. Putin and Erdogan are just taking more risk than is customary. The authoritarians play for big stakes. Erdogan’s Syria move is a gamble — but not because he can be held responsible for violating some important norm.

 

BLOOMBERG OPINION

SparkUp to Hold Second SparkUp Summit for the Local Startup Community

As our young local startup community continues to grow, bayanihan is needed more than ever to guide and sustain its rapid development. Just as our forefathers banded together for a common cause, we too must work hand-in-hand to uplift the Filipino startup ecosystem.

Fostering this unity is the goal of this year’s SparkUp Summit, aptly themed “The Bayanihan Ecosystem: Cultivating Philippine Startups” on October 19, 2019, from 8:00 am – 6:00 pm in ABS-CBN Vertis Tent, Quezon City. By gathering founders, incubators, accelerators, venture capitalists, mentors, and the government, the event aims to spark discourse on various points and help forge vital connections among the different stakeholders of the community.

Butch Meily, president of IdeaSpace Foundation and the Philippine Disaster Resilience Foundation and head of QBO Innovation Hub, will give the keynote speech. A total of 6 sessions will cover a wide array of topics, including the intricacies of launching a startup, stages of funding, the government’s role in supporting startups, and how to maximize the technologies of the future.

To register your team and know more about the program details, visit www.bworldonline.com/SparkUpSummit2019 or contact Ms. Shai Cordero at smcordero@bworldonline.com through 8-535-9901 loc. 824.

SparkUp Summit 2019 is brought to you by SparkUp powered by BusinessWorld. With sponsors: De La Salle University, EastWestBank and Philippine Business Bank.

Organization Partners: Asia Society – Philippines, Business Economics Association, IdeaSpace Foundation, Launchgarage, QBO Innovation Hub, StartUp Village and The Spark Project; Featured Brands: 1Export, Cawil.AI, Chubs Chasers, Cocotel, eCFulfill, iRENT MO and Tipsy Pig Gastropub; Media Partners: Adobo Magazine, Ambidextr, DZUP, Maroon FM, The Philippine Star and One News; Podcast Partner: HustleShare Podcast Network Asia; Venue Partner: Vertis North; and Event Partner: Fiera de Manila.

We look forward to fostering the bayanihan spirit with you!

Creative and social enterprises called to apply to YSEALI SparkAbility Level Up Program

The Young Southeast Asian Leaders Initiative (YSEALI) and crowdfunding enabler The Spark Project have joined forces to come up with YSEALI SparkAbility, a level up program to support local entrepreneurs looking to scale both their businesses and the impact they have on the communities they serve.

YSEALI SparkAbility is a three-month long program designed to help address a young scaling entrepreneur’s key needs through learning and one-on-one mentoring sessions that’ll enable them to implement an existing project or program they have in a greater scale. Selected participants will be provided funding support and the opportunity to crowdfund the additional funds they need, free of additional charges.

The program will kick off with a three day, all-expenses-paid bootcamp on Nov. 21 to 23.

According to Patch Dulay, founder and CEO of The Spark Project, “the program will utilize the expertise of some of the most successful YSEALI alumni and impart knowledge on branding and marketing; project management, impact measurement, and community building.”

Interested groups can apply to the YSEALI SparkAbility here, until October 19.

Industrial Transformation ASIA-PACIFIC 2019 set on Oct. 22 to 24 in Singapore

SingEx Exhibitions and international partner Deutsche Messe present the second edition of Industrial Transformation ASIA-PACIFIC (ITAP), a HANNOVER MESSE event, on Oct. 22 to 24 at the Singapore EXPO & MAX Atria that will gather around 20,000 attendees from 350 companies in 30 countries to help them start, scale, and sustain their adoption of Industry 4.0 (I4.0) processes and solutions.

ITAP is Asia-Pacific’s leading trade event for “Industry 4.0” which is defined by global management consulting firm McKinsey & Company as “the next phase in the digitization of the manufacturing sector.” It brings together a self-contained ecosystem for end-to-end engagements among I4.0 practitioners, technology and solution providers, industrial companies, component manufacturers, software companies, manufacturing solutions suppliers, service companies and consultancies, and start-ups.

“We have listened closely to the needs of Asia-Pacific companies who are facing I4.0 disruption and we have curated content platforms this year to ensure that they find the right guidance to determine the best solutions customized for their needs. While the state of readiness is increasing, many companies lack the in-depth knowledge to get started, and for those who have started, going beyond the pilot stage remains a problem. Industrial Transformation will address these pain points and provide the catalyst for companies to find the right solutions with the right fit that align with their business objectives,” said Aloysius Arlando, chief executive officer (CEO) of SingEx Holdings.

This year’s ITAP, which is designed as a personalized learning journey for each attendee, serves as a community enabler connecting buyers to all aspects of their needs in their I4.0 journey — from learning and networking to sourcing, retrofitting, and implementing. The event will help attendees learn from industry giants who will present innovations, valuable insights, and case studies that will inspire practical engagement.

The show floor provides an immersive experience ranging from a Learning Lab, a Collaboration Lab, a Robotics Experimental Zone, a Research & Technology Zone, Sandboxes and Conferences, and Guided and Technical Tours. These curated content platforms located onsite as well as offsite provide interactions and discoveries that allow attendees to choose their relevant industry sectors and level of readiness in I4.0 adoption for effective engagement.

ITAP brings with it the reputation of HANNOVER MESSE as the world’s leading trade show for industrial technology, and the advantage of Germany’s expertise in advanced manufacturing. In a report, McKinsey cited Germany, along with the United States, as clear front-runners in I4.0 adoption.

“Today, manufacturers face very different challenges compared to only a few years ago. Together with the research and development (R&D) sector, suppliers of production, logistics and energy technologies have to adjust to meet these new demands,” said Dr. Jochen Köckler, CEO of Deutsche Messe. “Industrial Transformation ASIA-PACIFIC brings together users and providers of all sizes to actively shape this transformation in the key sectors of automation, industrial IT and software, energy, logistics, and additive manufacturing.” 

Partnerships to drive transformation forward

As a precursor to the main ITAP event, a media and industry engagement event was held at the German Ambassador to Singapore’s residence, His Excellency Dr. Ulrich Sante, who amplified the agenda of cross-border technology transfer among Germany, Asia and Singapore. He welcomed a German delegation led by Prime Minister of Lower Saxony Stephan Weil, leaders from government agencies, and key industry organizations for a media briefing and a fireside chat to address “Priorities for the Next Stage of Manufacturing Transformation in Asia.”

“Asia holds tremendous growth potential, and Singapore is fortunate to be strategically located at the heart of the region. This allows companies based in Singapore to capture new opportunities to grow. The advent of I4.0 will enable companies to capture such growth prospects in a faster, more efficient way. Through Industrial Transformation ASIA-PACIFIC, we hope to facilitate the exchange of ideas and information between manufacturers, suppliers and solution providers, to help them form the right partnerships to drive their company transformation forward,” said Lim Kok Kiang, assistant managing director, Singapore Economic Development Board.

Strong intergovernmental engagement in I4.0 adoption bodes well for ASEAN industry players that recognize the importance of the I4.0 agenda but do not know how to start. Industrial Transformation attracts industry leaders such as Fraunhofer Singapore, Siemens and Schneider Electric, who raise the bar in research and technology and are ahead of the curve in anticipating industry trends. They are among many outstanding organizations presenting solutions that answer the urgent needs of SMEs in Asia Pacific.

To sustain Singapore’s competitiveness in high-value manufacturing, R&D and innovation remain critical, said Professor Tan Sze Wee, executive director of the Agency for Science, Technology and Research’s (A*STAR) Science and Engineering Research Council.

“A*STAR works closely with industry players through public-private partnerships to help them transform digitally by adopting I4.0 technologies. Industrial Transformation ASIA-PACIFIC is a good opportunity for such engagements. This year, A*STAR will showcase new technologies for personalized manufacturing. As demand for customized products and services continues to grow, manufacturers have to be able to respond quickly,” Mr. Wee said.

A*STAR, in partnership with the Nanyang Technological University, manages the Advanced Remanufacturing and Technology Centre (ARTC), Asia’s first center for test-bedding and developing manufacturing technologies.

Meanwhile, at this year’s Industrial Transformation ASIA PACIFIC, technology leader ABB will showcase its latest technologies and innovations for the digital transformation of cities, factories and industries.

Customized Industry 4.0 journey for attendees

Attendees begin their journey through the Gateway to I4.0, which contrasts old-technology exhibits versus the new to showcase the transformation and the outcomes of practical applications. Beginning with an understanding of I4.0 and its global implications and applications, attendees deepen their experience at displays by Nanyang Polytechnic and Advanced Remanufacturing and Technology Centre before heading to a discussion area to address their needs and priorities.

When they exit the Gateway, there are various curated learning platforms on the show floor to help sharpen their focus and to add momentum to their learning:

*Over 50 Sandbox sessions provide practical learnings based on industry specific challenges. Topics to be presented include: A Holistic Solution for SME Enterprises on a I4.0 journey; Enabling Smooth Business Transition and Transformation; Practical Examples on using Location Tracking to Improve Manufacturing & Logistics Operations Efficiency; ASi-5 + IO-Link as a Perfect Combination in Industrial Communication.

*Dynamic Learning Lab with live demonstrations to highlight the capabilities and applications of autonomous solutions in Intralogistics

* A Research and Technology Zone to activate business collaborations through open innovations with technology providers and seekers, presented by Institutes of Higher Learning such as Nanyang Polytechnic, Ngee Ann Polytechnic, Republic Polytechnic, Singapore Polytechnic, Temasek Polytechnic and TUM Asia

* Over 100 Guided Tours with 8 tracks covering 12 industries: Aerospace, Automotive, Food & Beverage, Infrastructure & Facilities/Urban Solutions, Logistics & Supply Chain, Oil & Gas/Energy, Pharmaceutical & Biotechnology, and Semiconductor/Electronics & Electrical

* Island-wide Technical Tours to leading R&D centres such as: ABB Customer Innovation Center; Advanced Remanufacturing & Technology Centre; Centre of Excellence for Testing; EOS Additive Manufacturing Centre; Flexspeed iSmart; Hexagon Manufacturing Intelligence; Ngee Ann Polytechnic Centre of Innovation (EWTCOI) Additive Manufacturing Lab; SAP Leonardo Centre; SICK Technology and Innovation Lab; Siemens Advanced Manufacturing Transformation Center; Singapore Polytechnic Advanced Manufacturing Learning Journey; SMT i4.0 Smart Manufacturing Centre; Sodick Techno Center; Tranzplus Smart Manufacturing Centre

For more information on Industrial Transformation ASIA-PACIFIC 2019, log on to https://www.industrial-transformation.com/. — JOSIELYN LUNA-MANUEL, Special Features Editor

Dynamic expansion

Metro Manila’s office property market is still booming, with property developers vigorously building new office spaces to meet growing demand.

According to a report by property consultancy firm Colliers International Philippines, office supply in the capital region rose by about 190,000 square meters (sq. m) to 11.3 million sq. m in the second quarter of this year. Thirty-three percent of the new office space came from Alabang in Muntinlupa City.

Instead of rising as a result of the increase in the stock of office space, vacancy rate actually dropped from 5.4% during the preceding quarter to 4.9%. And this is because of the “substantial absorpotion of office space in Quezon City and Ortigas CBD and its fringes,” the report said.

By 2021, Colliers predicts that Metro Manila’s leasable office stock will reach 14.2 million sq. m., compared with 10.9 million sq. m. in 2018.

“About 54% of the new supply from 2019 to 2021 is likely to be in Ortigas Center, Fort Bonifacio and the Bay Area as developers respond to rising demand from non-outsourcing and offshore gaming firms as well as companies transferring to newer buildings,” the report said.

Annual vacancy rate will reach 6.1% from 2019 to 2021, Colliers estimates. “This is equivalent to an annual supply of 1.08 million sq. m (11.6 million square feet) and yearly net absorption of about 1 million sq. m (10.8 million square feet),” the report said.

Meanwhile, from 2019 to 2021, annual average rent is projected to grow by about 6% per year. “We still see healthy rental growth in sublocations such as the Bay Area as well as Makati CBD and its fringe areas due to offshore gaming operations and limited supply. We also see Ortigas Center rates catching up due to the turnover of new and high-quality office space as well as entry of offshore gaming operators,” Colliers said in its report.

Jones Lang LaSalle (JLL) Philippines, a professional real estate services firm, noted in own report covering the second quarter of 2019 that roughly 156,100 sq. m of office space was added to Metro Manila’s total stock, bringing the aggregate supply added this year to 336,700 sq. m.

“Development completions in 2Q19 are spread in several locations across the districts of Metro Manila within the Cities of Makati, Muntinlupa, Paranaque, Pasay, Quezon and Taguig,” the firm said in a statement.

Although JLL recorded a higher vacancy rate of 6% during the second quarter, the firm called it “manageable.” The City of Taguig had the majority of untenanted office spaces since majority of the recent development completions were in Bonifacio Global City, the firm said.

“Offshoring and Outsourcing (O&O) remain as the major demand driver, taking up approximately 128,100 square meters of office space in 2Q19. For the whole of 1H19, around 181,000 square meters of office space was absorbed by O&O firms. However, there has been a slow [quarter-on-quarter] take-up of office spaces from O&O firms in Metro Manila as they have expanded more in the provinces, owing to the limited PEZA [Philippine Economic Zone Authority] approvals for IT centers especially in Metro Manila,” JLL said.

Online gaming operators were the second top office space occupier in the first half of 2019, leasing 160,000 sq. m of office space, 119,200 sq. m of which in the second quarter alone.

“Pharmaceutical companies came as a surprise as a major demand driver to leased office spaces in 1H19, taking up an estimate of 45,100 square meters mainly due to their expansions within Metro Manila. Fourth top office space occupier for 1H19 are flexible workspace operators leasing 14,400 square meters of office space in Metro Manila,” JLL said.

In light of the national government’s moratorium on the processing of PEZA applications in Metro Manila, Colliers urges developers to pay attention to the demand of non-outsourcing occupants since these entities are not entitled to the tax incentives given to economic zone locators. “Developers should specifically watch out for the requirements of insurance, financial technology (fintech), engineering, construction firms as well as flexible workspace operators,” the firm said in its report.

Meanwhile, offshore gaming firms are encouraged to consider newly opened office spaces in Ortigas Center, while cost-sensitive non-ousourcing tenants, including government agencies and start-ups, may want to explore buildings in Quezon City that offer cheaper lease rates compared with those in Makati Central Business District and Fort Bonifacio. — Francis Anthony T. Valentin

Rethinking workspaces for employees’ well-being

Workplaces have been modified through time, from the open office to cubicles to coworking spaces. Much more at this present time have workspaces been rethought and redefined to cater to the overall well-being and productivity of employees, especially those who are yet to enter the workforce.

“Designers are now creating inspirational, fun workplaces which promote health and well-being among users. This has a direct effect on job satisfaction and engenders pride in employees as well,” observed Mustafa Khamash, founder and managing director of luxury design atelier Kart Group, in an article from the Architecture Digest.

Prioritizing the well-being of employees in creating or remodeling workspaces has become a trend in itself. As Office Hub online office space marketplace observed on its web site, enhancing both physical and mental well-being of employees is at the forefront of business owners’ minds, aiming to increase their morale, reduce sick days, and inspire infectious productivity within the workspace.

Another notable trend transforming today’s offices is breakout zones. Created to drive experiences further within the usual work, these breakout zones can be in the form of meditation spaces, yoga studios, rooftop terraces, massage rooms, games areas, and lounges. According to online office space marketplace Office Hub on its web site, breakout areas “create a casual and relaxed environment that is more conducive to conversation, communication and creativity.”

“Far from fueling distraction, this office design trend tells employees that they’re welcome to bring their true selves to work — the concept that hundreds of coworking spaces harness today — and that they are trusted to be productive even without the confines of a cubicle,” Office Hub added.

Biophilic design is also another interesting trend in workspace design, which many workplaces are starting to adapt. Coming from the concept of “the human desire to connect with nature and to draw comfort from green spaces”, biophilic design brings nature indoors, as evident in the incorporation of greeneries into offices, be it live walls, landscaped gardens, or indoor plants.

Space Matrix, a design consultancy speacializing in workplace design, said on its web site that biophilic design will be less of a trend and more of a necessity in people-centric workplaces. “Futuristic offices will incorporate greenery right into the architecture of their buildings, and mimic nature as closely as possible when it comes to light, sound, smells and thermal conditions,” it added.

Not only does biophilic design integrate living forms in what used to be apparently concrete areas, but it is also poised to enrich productivity among employees. This was proven by a report by carpet tile manufacturer Interface, Inc., which indicated “an increase of eight percent in productivity and 13% in well-being from those working in offices with natural elements, proving the importance the biophilic trend will have in years to come.”

Characterized by lightweight and easily moveable furniture, wall dividers, and whiteboards on wheels among many others, dynamic space structures are also another way workspaces are being transformed. According to Office Hub, dynamic workspaces “can help minimize build costs, maximize space efficiency of small offices, and keep businesses adaptable to advances in technology.”

“By switching up the monotonous office layout, you can give staff an environment that is always fresh and interesting — which has an incredible effect on idea generation, productivity, and mindset,” it added.

Moreover, aged textures are being favored in today’s sleek workspaces. “Stark minimalism is fast being replaced by earthy touches that give a space a cheerful, lived-in look,” wrote Space Matrix. Examples of these “earthy touches” include wood beams, exposed ducts, handcrafted textiles, carefully curated interior accessories, bespoke furniture, and artisanal products.

Amid the popularity of collaborative and interactive workspaces, there are still professionals who prefer to do their work autonomously on a quiet desk. In fact, a recent report by Office Hub noted that “70% of Australian businesses moving to a shared workspace in 2018 chose a private office over a coworking desk.”

Adding personal touches of home is also another interesting way of reinventing workspaces. This is characterized by features such as wide-screen televisions, fridges, softer lighting, and comfier sofas. “Homestyle characteristics are already the DNA of the world’s most cutting-edge coworking spaces — in 2019, it will translate more to conventional office design,” noted the office space web site. — Adrian Paul B. Conoza