The World’s Best Flavored Fries, in celebration of its milestones, positions its 27th Anniversary on a flavorful and fun note through its first ever fun run – the Potato Corner Flavor Run to be held on October 27, 2019 in SM by the Bay.
Potato Corner is hoping to celebrate its achievements through the years with its loyal fans, the kids and kids at heart. The Flavor Run expects an explosion of flavors through the participants’ joyful and healthy run.
The Flavored Fries giant plans to make its flavors shine in this event by creating exciting surprises, including its promo to make the registration very affordable for everyone.
A perfect time for your family and friends to enjoy while helping others who are in need, all at the same time. The company, aside from its celebration of flavors, is poised to share its expected revenue from this event with the Philippine Cerebral Palsy Inc foundation.
This is in line with Potato Corner’s charitable advocacy participants may choose between 3KM and 5KM depending on their desired distance. Registration fees are at PHP 850 and PHP 950, respectively.
The company is generously giving away PHP 250 discount vouchers for customers who will avail Giga or Tera Fries from participating Potato Corner stores. The vouchers can be used to get a discount on their registration fees. Vouchers are valid until October 20, and can only be used at partner Garmin stores (Glorietta 5, SM MOA, SM Megamall, SM North EDSA, ATC).
Participants’ registration fees will be covering the race bibs, singlet, and the finisher’s medal. More thrilling and exciting surprises will also be available at the event.
Assembly time for the Flavor Run participants will be at 5AM in the North Fountain of the SM By the Bay. Gun start will be at 5:30AM for the 5KM runners, and 5:40AM for the 3KM runners. Don’t miss out on exciting treats and surprises after the run!
Spotlight is BusinessWorld’s new sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Winning together in the fourth industrial revolution
By Bjorn Biel M. Beltran, Special Features Writer
Professor Klaus Schwab, founder and executive chairman of the World Economic Forum, called it “a time of great promise and great peril.”
The Fourth Industrial Revolution — named for the newest era of world-changing technological progress to come after steam, electric, and informational power — is upon us. This time, the revolution is in the fusion of technologies blurring the lines between physical, digital, and biological spheres.
The potentials are endless. The challenges, myriad. To navigate the new age, industry leaders, policy makers, legislators, and other influential stakeholders must come together to prepare for the coming future or else risk being left behind. Which is why BusinessWorld, the country’s most respected business daily, partnered with the Department of Information and Communications Technology (DICT) and the Philippine Chamber of Telecommunications Operators (PCTO), to hold the BusinessWorld Industry 4.0 Summit last Sept. 9 at Shangri-La at the Fort Manila in Taguig City.
Roby Alampay of BusinessWorld, Enrico Delos Reyes of Philippine Chamber of Telecommunications Operators, Gregorio Honasan of Department of Information and Communications Technology and Miguel G. Belmonte of BusinessWorld — Bening Batuigas
This summit, with the theme “Winning Together in the Fourth Industrial Revolution,” gathered some of the Philippines’ most esteemed public officials, business executives, industry leaders, and a host of leading experts to discuss the effects of the Fourth Industrial Revolution (IR 4.0), and what the country can do to take advantage of it.
Gregorio B. Honasan II, Secretary of DICT, led the event with an opening address talking about the growing disparity in the world of Industry 4.0 between those who enjoy the benefits of the digital connectivity it provides, and those who cannot.
“The world has changed and will continue to do so in a fast-paced manner,” he said.
“Indeed, fast-paced is an understatement in this hyper-connected, data-driven global economy, data is the new oil or the new gold. However, this is not yet the overall experience in most parts of the country.”
Mr. Honasan stressed the importance of the country’s national ICT agenda to ensure that Filipinos can seize the opportunities of IR 4.0. Lack of connectivity remains an issue, and government initiatives such as the National Broadband network program, Free Wi-Fi for All Public Internet Access Program, and digital portals for more efficient public services can give Filipinos a fighting chance.
“We must work hand in hand not just to generate complete, accurate and timely data for rational decisions at policy levels but also for positive results for the nation and global economy. Industry 4.0 is here, but we’ve got a lot of work to do,” he said.
Anthony Oundjian, managing director and senior partner of the Boston Consulting Group in Southeast Asia, gave the first keynote speech, discussing the nature of IR 4.0; the technologies driving it; and its effects on the economy, business and government.
Mr. Oundjian pointed out that a factory operating in IR 4.0 will be different from those of today through additive manufacturing, advanced robotics, automated replenishment, data-driven quality control, highly responsive customer integration, real-time performance tracking, and digital plant logistics.
“We’ve come a long way from steam power, to electric power, to informational technology and now to digital, cyber, and disruptive technology. What defines the Fourth Industrial Revolution is that innovations are unfolding at breakneck speed,” Senator Mary Grace Poe-Llamanzares said in her own keynote speech.
Ms. Poe noted that such speed is something the government sorely lacks, which is why strong leadership and informed legislation should be prioritized if the country is to remain globally competitive.
Lucien Dy Tioco of BusinessWorld — Bening Batuigas
The Philippines, she said, is an analog country in a digital age, slowed down by the bureaucratic red tape that hinders the necessary infrastructure development to bring it completely into the digital age. Legislation such as the Ease of Doing Business Law, the new Public Service Act, and the Freedom of Information Bill can hasten that development, but only through the support of businesses, organizations, and the public.
The keynote talk of Jose Ramon G. Albert, senior research fellow at the Philippine Institute for Development Studies, expanded on this, discussing how the Philippines can prepare for the changes of the digital age through human capital investments.
Building on an analogy by the World Bank, he said that what the government can do to harness innovation is to act as a gardener: prepare the ground for it through education, nurture the soil through research and information, remove the weeds of competition and deregulation that slows growth, and water it by giving innovators financial incentives.
By future-proofing the Filipino people through skills and training investments, Mr. Albert said that those who are unable to keep up with the changing times are also protected.
The summit also tackled the role of the telecommunications sector in IR 4.0 in the first panel discussion, led by panelists John Gonzales, VP and head of Enterprise Digital Solutions at PLDT, Inc.; Emmanuel Estrada, head of Network Strategy at Globe Telecom, Inc.; and Ed Cabarios, deputy commissioner at National Telecommunications Commission.
The second panel discussion explored how the government and the private sector can maximize the benefits of technologies brought by innovation, with panelists Brig. Gen. Eliseo M. Rio, Jr., undersecretary for operations at DICT; Thomas E. Abell, advisor and chief of digital technology for development at Asian Development Bank; Atty. Jeremiah B. Belgica, director-general of Anti-Red Tape Authority (ARTA); Trina Firmalo-Fabic, mayor of Odiongan, Romblon; and Renato B. Garcia, director of Philippine Chamber of Telecommunications Operators (PCTO).
Meanwhile, opportunities for growth amid IR 4.0 was the third panel discussion’s subject. Mary Jean T. Pacheco, assistant secretary of the Department of Trade and Industry; Ernesto V. Perez, deputy director-general of ARTA; Alegria S. Limjoco, president of PCCI; Rosemarie B. Ong, president of Philippine Retailers Association; and Roy Cecil D. Ibay, vice-president of PCTO, discussed the retail of the future and how operators in the industry today are laying the groundwork for future innovation.
The fourth panel discussion brought into focus the disruption in the banking and finance sector. The panelists were Chuchi G. Fonacier, deputy governor of the Bangko Sentral ng Pilipinas; Chris Manguera, chief managing officer and head of marketing and app product at Mynt; Kenneth Palacios, head of Wallets Business at PayMaya Philippines; Hamilton Angluben, general manager at Cashalo; and Yu Ming Chin, founder and executive director of Viventis Search Asia.
Afterwards, the changes in the real estate, transportation and manufacturing industries were brought to light, and the fifth panel discussed how they can improve with the help of the technologies driving this revolution. The panelists are Brian Cu, country head of Grab Philippines; Ibarra G. Paulino, executive director of the Philippine Constructors Association; Runel Taningco, head of the infrastructure and communications technology division at the Housing and Land Use Regulatory Board (HLURB); Techie Bautista, vice-president for academic affairs at the Chamber of Real Estate and Builders’ Associations (CREBA); Emmanuel Estrada, network strategy head of Globe Telecom; and Lester Michael Hernandez, head of solutions at AGS Consulting, an ePLDT company.
To conclude the event, critical issues were addressed in the sixth panel discussion, with the theme “Beyond Connectivity and Access” spanning two separate discussions on Cybersecurity Initiative as well as on Content and Piracy.
For cybersecurity initiative, the panelists were Genalyn B. Macalinao, policy lead for Critical Infostructure Evaluation and Cybersecurity Standard Monitoring at DICT; Angel T. Redoble, first vice-president and chief information security officer at PLDT Group, Smart Communications and ePLDT Group; and Anton Bonifacio, chief information security officer at Globe Telecom, Inc.
Louis Boswell, CEO of Asia Video Industry Association delivered a special presentation about “Industry 4.0: Unlocking Opportunities for the Philippine Creative Industry.” “We’re watching more video than we’ve ever done before. And that has led to a golden age of video,” he shared.
For Content and Piracy, panelists were Neil Gane, general manager of Coalition Against Piracy; Anselmo Adriano, chairman of Optical Media Board; and Jill Go, vice-president for content development and partner management at Globe Telecom.
PCTO Chairman Enrico L. Delos Reyes delivered the closing remarks. “Our readiness [for Industry 4.0] depends on our ability and willingness to adapt,” he said.
The BusinessWorld Industry 4.0 Summit gathered top officials from the public and private sectors last Sept. 9 at Shangri-La at The Fort Manila. — Norman Alviar
The BusinessWorld Industry 4.0 Summit is made possible by major sponsors Globe Telecom, PLDT, Smart, and Suntrust Properties, Inc.; minor sponsors Metrobank, HP, Intel, Integrated Computer Systems, Inc.; Entrego, Wilcon Depot, AGS and SAP; partners Consumer Insighting, Synergy, The Philippine Star, One News, Fiera de Manila, and U Rate It.
Winning together in the fourth industrial revolution
By Mark Louis F. Ferrolino, Special Features Writer
The telecommunications industry has been at the forefront of massive changes worldwide. It has become part of the daily lexicon, playing a central role in reshaping the society and culture, as well as various sectors in the economy. Over the past years, telecommunications has become the lifeblood of digital revolution, and it is believed to continue to play this role in the forthcoming years, especially when the Fourth Industrial Revolution, also known as Industry 4.0 or IR 4.0, unfolds.
At the recently concluded BusinessWorld Industry 4.0 Summit, held at Shangri-La at The Fort in Taguig City, a panel composed of John R. Gonzales, vice-president and head of Enterprise Digital Solutions of PLDT, Inc.; Emmanuel Estrada, head of Network Strategy of Globe Telecom, Inc.; and Edgardo V. Cabarios, deputy commissioner of the National Telecommunications Commission conversed on the role the telecommunications sector will play in Industry 4.0.
“The role of telco cannot be undermined in IR 4.0,” Mr. Estrada said in his opening statement during the first panel discussion of the summit. Citing a practical example on its significance to the society today, he asked, “How can you imagine a Grab without the capabilities of telco underlying it?”
“By providing capability to do things and providing the connectivity, then telco becomes the primary enabler and a partner in making sure that Industry 4.0 is there,” he said.
Among the technologies that will fuel the impending revolution, according to Mr. Cabarios, include big data and analytics, cloud computing, and artificial or augmented Intelligence. “These technologies require reliable connectivity,” he said, emphasizing on the importance of telecommunications sector in Industry 4.0.
With regard to connectivity, the deployment of fifth generation (5G) technology is extremely important. As Mr. Gonzales noted, 5G is the real change agent for Industry 4.0.
Among the business models the telco industry expects to see from 5G, as identified by Mr. Gonzales, include enhanced mobile broadband services, massive machine-to-machine communication, and ultra-reliable and low-latency communications.
The adoption of 5G will also help advance the concept of Internet of Things (IoT), which expected to drive changes and efficiencies in doing things.
Mr. Gonzales shared that International Data Corporation forecasted that IoT global spending will reach $1.2 trillion in 2022. In the Philippines, the local spending would be around $6 billion, he added.
“We already talked to a lot of our customers, and 56% of our respondents actually shared with us that their plans for IoT are on their way or now being implemented,” Mr. Gonzales said.
Citing a recent KPMG survey of 750 tech leaders, Mr. Gonzales said that IoT will drive the greatest business transformation in the coming years.
Despite the evident role of telecommunications sector in Industry 4.0, Mr. Estrada noted that the interests of telco players are not aligned with the local government’s plans and agenda. “There are regulations that are no longer applicable or relevant to the current mode of technology,” he said.
“We need to be able to work together, we need to plan together,” Mr. Estrada said, citing the need for telcos and the government to form a new National Telecommunications Development Plan.
To further improve the local telco industry, Mr. Estrada made several appeals to the government, including the implementation and enforcement of the Ease of Doing Business Act, giving telco players incentives to go to far-flung areas, and allowing them to invest without any red tape.
“Everything has to fall in place. It’s a master plan in able to get there. This master plan is actually a combination of the government, the people, the users, and the people itself,” Mr. Estrada said.
Winning together in the fourth industrial revolution
By Adrian Paul B. Conoza,Special Features Writer
The growing need to keep in step with the Fourth Industrial Revolution (FIRe) was stressed in the second panel discussion of BusinessWorld’s Industry 4.0 Summit held last Sept. 9 at Shangri-La at the Fort, Bonifacio Global City, Taguig.
Comprising the panel were Brigadier General Eliseo Rio, Jr., undersecretary for operations of the Department of Information and Communications Technology (DICT); Thomas Abell, advisor and chief of digital technology for development at Asian Development Bank (ADB); Atty. Jeremiah Belgica, director-general of the Anti-Red Tape Authority (ARTA); Trina Firmalo-Fabic, current mayor of Odiongan, Romblon; and Renato Garcia, director of the Philippine Chamber of Telecommunications Operators (PCTO).
As the discussion started on how the concerned sectors are rising up to FIRe, Ms. Firmalo-Fabic shared that many local government units (LGUs) are still not talking about FIRe and are yet to access its “low hanging fruits” like automation and computerization. On a positive note, she said that great opportunities lie ahead for LGUs, particularly in rural areas.
Noting that his department is confronted with the question of whether the country is ready for FIRe, Mr. Rio simply answered: “Unfortunately, we could not say we are ready because we lack the infrastructure,” noting that the ongoing Build, Build, Build program along with DICT’s efforts like the Tech4Ed program are addressing the inadequacy.
For the undersecretary, information is the driving force of the industry in FIRe. “But just like oil, [information] has to be piped to the different end-users for it to be used and become profitable for the needs of our citizens,” Mr. Rio said.
Mr. Belgica, meanwhile, said that as ARTA works in promoting the ease of doing business, especially in terms of pushing for rationalization efforts, the agency “ultimately has its sights on [the] automation of government services.” Rushing towards automation, however, will not necessarily serve as a solution.
“Many of us think automation will solve the rampant red tape happening in government service; but before we could automate a system we first need to rationalize it,” he explained.
Moving further the discussion, Mr. Abell of ADB, who sees the Philippines in a very good position to take advantage of FIRe, finds it very important for Southeast Asia to have economic integration as a region in preparation for FIRe. He noted that unlike the European Union, which has a common data privacy policy, “[in Southeast Asia] it’s harder if every country has its own regulations about data privacy and data portability.”
Asked on how the government and public sectors can maximize the developments brought by FIRe, Mr. Garcia of PCTO said that the notion of customer sensitivity could be applied to government. “If the government would now be able to look at the concerns of the masses… the gap between expectations of public and government can be handled,” he added.
As the panel closed, Ms. Firmalo-Fabic stressed that both the public and private sector should work hand-in-hand in taking advantage of FIRe. “There is hope, but we have to act now and we have to integrate and work together,” the mayor said. “And the good news is that with technology… it’s cheaper, faster, and easier to replicate whatever breakthroughs there are and use them for development.”
Winning together in the fourth industrial revolution
By Mark Louis F. Ferrolino, Special Features Writer
People are becoming more sophisticated; they now demand for faster and more convenient options of doing things. The continuous rise of e-commerce is one of the most obvious outcomes of this changing behavior. Gone are the days when consumers endure the hassles of in-store shopping; they can now order almost everything online in one click. The face of commerce is, indeed, undergoing a seismic shift, and the transition will likely continue with the emergence of new technologies arising from the Fourth Industrial Revolution, also known as Industry 4.0 or IR 4.0.
The third panel discussion of the recently held BusinessWorld Industry 4.0 Summit touched on the opportunities in Philippine commerce during the upcoming IR 4.0. Industry and government leaders, including Department of Trade and Industry Assistant Secretary Mary Jean T. Pacheco, Anti-Red Tape Authority Deputy Director-General Ernesto V. Perez, Philippine Chamber of Commerce & Industry President Alegria S. Limjoco, Philippine Retailers Association Rosemarie B. Ong, and Philippine Chamber of Telecommunications Operators Vice-President Roy Cecil D. Ibay, sat as the panelists and shared interesting insights on the topic.
In a short presentation, Ms. Pacheco discussed the drivers and opportunities of e-commerce in the country, with 124.2 million mobile subscription, 76 million active Internet users, and an average of 10 hours Internet usage daily. In addition to these, the country, she said, is also comprised of a young population, a demographic that drives e-commerce.
However, in terms of online purchases, the Philippines still lags behind other countries, Ms. Ong said. “It’s not parallel to the number of users,” she said. In her observation, retailing is going back to basic. In fact, top mall operators, such as SM, Ayala and Robinsons, are keep on expanding, according to her.
“Of course, the technology is there but no matter how you talk about robots, no matter how you talk about AI (artificial intelligence), at the end of the day, it’s really something about how you serve the customer,” Ms. Ong said. “The new currency now, really, is the customer experience.”
The call for all retailers now, as Ms. Ong emphasized, is to be omnipresent and serve customers in a seamless way. Retailers, she said, should look at emerging technologies as enablers to complement their businesses and not as disruptors.
“Use technology to enhance your business and don’t be bothered about being disrupted. I think, for retail, we should focus on whether our competitors are using it (technology) better than us,” Ms. Ong said.
Meanwhile, Ms. Limjoco during the discussion also raised concerns on the need to prepare for the future of work, which will include AI and robots. She said robotics training courses must be given to students at least when they are in grades 11 and 12. “At a young age, they should learn robotics,” she said.
In terms of regulating emerging innovations and businesses, the government, according to Mr. Perez, always ensures the welfare of the public by making sure that each regulation is attuned with the current trends.
“Part of the function of the government is to ensure that the public is fully protected so these businesses will not cause hazard to public health or safety. Therefore, each regulation must be attuned with these emerging technologies,” he said.
For his part, Mr. Ibay said the challenge for the local government now is to balance the new and upcoming technologies and the interests of local players.
Winning together in the fourth industrial revolution
By Adrian Paul B. Conoza, Special Features Writer
As the banking and finance sector braces for developments in time for the Fourth Industrial Revolution (FIRe), the recently held BusinessWorld Industry 4.0 Summit gathered an esteemed panel of leaders in the sector to discuss how their sector are preparing for this revolution.
The panel was composed of Chuchi Fonacier, deputy governor of Bangko Sentral ng Pilipinas (BSP); Chris Manguera, chief managing officer and head of marketing and app product at fintech start-up Mynt; Kenneth Palacios, head of wallets business at mobile money and payments pioneer PayMaya Philippines; Hamilton Angluben, general manager of fintech platform Cashalo; and Yu Ming Chin, founder and executive director of Viventis Search Asia.
Beginning the discussion, Ms. Fonacier highlighted in an overview of the BSP’s industry outlook that one of the top strategic priorities of banks, even for rural and cooperative ones, at present is optimizing technology.
On the part of BSP, they continually engage other stakeholders as they maintain an “active multi-stakeholder collaboration,” reorient the regulatory body by putting up a dedicated fintech subsector within BSP’s financial supervision sector, and set more initiatives for more active supervisory and regulatory standards.
The heads from fintech companies among the panel continued the discussion by sharing their initial thoughts on what their sector should do to brace for FIRe.
Mr. Manguera of Mynt said that in order to push for the digital economy and for cashless record systems, a “cross-stakeholder engagement” is really needed, setting the frameworks and infrastructure around the integrated points of view of consumers, the private sector, and the public sector.
Cashalo’s Mr. Angluben, meanwhile, hoped the rest of the financial industry — the banks, the cooperatives, and other financial institutions — will really embrace FIRe, “because the problem is so huge that not only one company can solve” the apparent problems within the sector.
Mr. Palacios of PayMaya agreed, speaking of the sector’s “gargantuan task of enabling 70% of Filipinos to have access to formal banking systems.”
“At the end, we are not supposed to be competitors, but we’re supposed to be enablers. Because the challenge [at hand] is just too big that it becomes a win the moment we convert people to using digital products,” he added.
In addition, Mr. Yu of Viventis Search Asia observed that technology in the sector will really be a great help for the unbanked. “I think technology can become a very powerful equalizer,” Mr. Yu remarked, adding that technology can “tremendously bring down transaction costs” and tell the capability of a farmer or a street vendor in terms of their paying capacity.
Regarding fintech’s chances of reaching the unbanked in spite of difficulties in accessing customers, Mr. Manguera emphasized that their sector should keep the mind-set of providing access to more people as they disrupt banking and finance. “And when we disrupt, it should be our responsibility to also drive adoption in the end, because there’s no point in disrupting if adoption will be very low,” he added.
Responding on the apparently decreasing demand for physical banks, Ms. Fonacier said that while some banks may still apply for branches with the BSP and some have already gone fully digital, “at the end of the day it would really boil down to what’s the specific strategy of that particular bank.”
Winning together in the fourth industrial revolution
For a discussion about the industries of real estate, transportation and logistics in relation to the technologies driving the Fourth Industrial Revolution, several important people from the public and private sectors came together at the first-ever BusinessWorld IR 4.0 Summit held last Sept. 9 in Taguig City.
They were Brian Cu, country head of Grab Philippines; Ibarra Paulino, executive director of the Philippine Constructors Association (PCA); Runel Taningco, head of the infrastructure and communications technology division at the Housing and Land Use Regulatory Board (HLURB); Techie Bautista, vice-president for academic affairs at the Chamber of Real Estate and Builders’ Associations (CREBA); Emmanuel Estrada, network strategy head of Globe Telecom; and Lester Michael Hernandez, head of solutions at AGS Consulting, an ePLDT company.
Grab, which Mr. Cu said has evolved from a simple ride-hailing app into “an everyday super app” (because one can now order food and send parcels via the app), has disrupted the local transportation industry, providing commuters with new ways to get from one destination to another.
“What’s really exciting is the amount of data that we’ve collected over the years, seeing how we can support this fourth industrial revolution to really transform the way transit is done in ultra-highly urbanized cities,” he said.
He noted that they’ve been working with local government units to help ease traffic congestion, adding that the average travel time of a GrabCar has increased from “around 37 minutes a couple years back” to “40-plus minutes despite the average distance not increasing.” “So we do know that streets are getting more congested,” Mr. Cu said. The question now is “how do we use the data that we have, the technology platforms that we have to help alleviate congestion,” he said. One of the company’s current services, GrabShare, is an attempt at decongestion, aiming “to put more passengers in the same amount of cars without increasing the number of cars on the road….”
When it comes to the development of smart cities, or places powered by information and communication technologies, one crucial factor is the availability of land, according to Ms. Bautista of CREBA. “CREBA has always been at the forefront of trying to advocate for the passage of the National Land Use Act because this will define the uses of the various lands in the Philippines,” she said. As it stands, how a piece of land is used “is always upon subject to negotiation, specifically with local government. And because of that, in the absence of a clear definition of the uses of specific land, it becomes very difficult, very time-consuming, and very, very costly.”
Meanwhile, Mr. Estrada of Globe remarked on the importance of building “intelligent residential communities” as well as the centrality of digital connectivity to that endeavor. “It’s also important that we reach out to the likes of CREBA, the real estate developers, and make sure they are on the same page as us, that they have the same vision of how an intelligent community really can be powered by technology,” he said.
Hoping to bridge the “disconnect” between the academe and the construction industry when it comes to skills, Mr. Paulino of PCA said they are working with the Department of Education, Commission on Higher Education and some universities to improve the curricula of engineering and architecture courses.
Mr. Hernandez of AGS, meanwhile, emphasized the need for organizations to assess themselves — where they are going and how they are going to move forward — in order to achieve their digital transformation goals.
And for Mr. Taningco of HLURB, the information technology projects of the government should be fast-tracked and the manner in which they are funded be improved.
Threats to cybersecurity can no longer be put on the back burner, given how immense the financial dangers and reputational risks they pose have become. The same goes for piracy, which continues to hurt the livelihoods of many creative professionals. The burning question now is how they can be effectively curbed.
During a discussion about cybersecurity at the first BusinessWorld IR 4.0 Summit on Sept. 9, Angel Redoble, first vice-president and chief information security officer of PLDT Group, Smart Communications and ePLDT Group, said: “Without cybersecurity, I would say the future is doomed. And cybersecurity is not just about people stealing other people’s information. It’s not just about someone spying or bullying other people. It’s also a national security issue.”
Those who commit cybercrimes nowadays aren’t simply basement-dwelling hackers. “The adversary has become more difficult,” said Anton Bonifacio, chief information security officer of Globe Telecom. “It’s either highly organized crime groups or at worse it is nation-states.” In an increasingly globalized and digitally interconnected world, everyone, including small commercial entities and ordinary Internet users, runs the risk of getting harmed.
It’s now important that in the digital age businesses realize “the value that having more secure operations, of really embracing cybersecurity,” unlocks for them, and see cybersecurity as part of improved customer experience, Mr. Bonifacio noted. He also suggested: “Ask for help. And the sooner that we ask the right questions and reach out to the right people, the better off I think we’ll all be.”
For her part, Genalyn Macalinao, policy lead of the critical infrastructure evaluation and cybersecurity standard monitoring at the Department of Information and Communications Technology, noted that one of the 12 national security goals of the current administration is the provision of strong cyber infrastructure and cybersecurity and that in the national cybersecurity plan of their agency, protection of businesses is an imperative.
And for businesses to further protect themselves, they don’t necessarily have to splurge on expensive technologies. “Technology will always be there. However, there are certain information security policies that we can put in place in our organizations as a start. For example, what is your policy on the use of USB? What is your policy on BYOT [bring your own technology]? What is your policy on access management? These things do not require expensive technologies; these are simple security measures,” Ms. Macalinao said. She also emphasized the need to foster a culture of valuing privacy and security among digital consumers.
Meanwhile, at a piracy-focused panel discussion at the same summit, Louis Boswell, chief executive officer of the Asia Video Industry Association, said the move to the Internet as a means of distribution for videos “is opening up a world of opportunity.” “First of all, it means that we’re watching more videos than we ever have done before. And we’re seeing the result of that being a golden age of video,” he said, adding that video producers, whether big television companies or independent studios, are also creating more videos.
But that move has proved to be a double-edged sword. “The biggest challenge for the industry today is that as we all move to using the Internet as the preeminent means of distribution, it is easier today than ever before for our content to be stolen,” Mr. Boswell said. “Video piracy — what I like to call content theft — is easier today.” He added that without respect for copyright, their industry will be “in perilous times.”
Mr. Boswell still believes that there needs to be an open Internet. “But we also need to recognize that the Internet needs to be managed ethically and it needs to be managed responsibly.”
“We need to do more. As an industry we need to sit down together. And we’ve got to sit down with the government to make sure that we’re all on the same page so that we can protect the creative industry in the Philippines.”
The Optical Media Board, according to its chairman Anselmo Adriano, hasn’t stopped going after pirates, and they are also now targeting online sellers of devices preloaded with illegally downloaded content and cracking down on the use of illegal streaming devices. Neil Gane, general manager of the Coalition Against Piracy, cited research that found that Filipinos have “an unhealthy appetite for piracy.”
Globe has taken an educational approach to tackling piracy. According to Jill Go, vice-president for content portfolio development and partner management at the company, it has an anti-piracy advocacy that aims to increase people’s awareness of the perils that illegally obtained content may pose, including identity theft and malware, and make them realize that they are actually hurting the livelihoods of countless individuals in the creative industry.
ECONOMIC CONDITIONS are right for a cut in benchmark interest rates, according to analysts asked last week, most of whom said monetary authorities will probably make their move in their sixth policy review for the year this Thursday with a 25 basis-point reduction.
The eight analysts factored in last week’s 25-bp Federal Reserve rate cut, oil price volatility in the wake of attacks on two Saudi Aramco processing plants, as well as slowing inflation and economic growth at home.
A Bloomberg report last Friday quoted Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno as saying: “It’s really inflation that makes a difference in our decision next week…,” adding that monetary authorities “have more space. We want to normalize as soon as possible” from 2018’s cumulative 175 bp hike in the face of successive multi-year-high inflation rates that peaked at a nine-year-high 6.7% in September and October and resulted in a decade-high 5.2% full-year average.
Seven of the eight analysts asked in a BusinessWorld poll last week were of the view that the Monetary Board (MB) will adopt another 25-bp cut — the same magnitude seen in its May 9 and Aug. 8 meetings that slashed rates for overnight reverse repurchase (RRP), overnight deposit and overnight lending to 4.25%, 3.75% and 4.75%, respectively.
Many of the economists asked for the poll also cited Mr. Diokno’s own signals since early last month that a 25-bp cut would be on the table at the MB’s Sept. 26 policy review, and that another reduction in banks reserve requirement ratio — by 100 bp — “is always on the table” at any of the BSP’s weekly meetings towards yearend after the phased 200-bp cut that ended in late-July.
“Domestic inflation and global liquidity conditions are just right to engage in further easing before the cycle turns,” Sun Life Financial Philippines economist Patrick M. Ella said in an e-mail, while Mustafa Arif, economist at ANZ Research, said that “lackluster growth in the first half and a challenging outlook ahead, alongside weak inflation, give the BSP sufficient information to cut.”
Gross domestic product (GDP) growth disappointed at 5.5% last semester as late national budget enactment left new projects unfunded for much of last semester. That compared to a 6-7% the government hopes GDP growth will clock this year. Socioeconomic Planning Secretary Ernesto M. Pernia said it will take an average growth of 6.4% this semester for the economy to hit the lower end of the government’s 2019 target.
“Given Governor Diokno’s recent comments around the timing of the next cut, we expect it next week rather than in Q4…” Mr. Arif said in an e-mail.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said: “[l]ocal policy rates could be cut by 0.25 as early as the next rate-setting meeting on Sept. 16… especially if the recent… spike in global oil prices after the drone attacks on Saudi Arabia major oil production facilities turns out to be temporary.”
Reuters reported on Friday that oil prices eased on revived US-China trade war worries, but still posted weekly gains.
“That could help support the view that inflation could still average one-percent levels in the third and fourth quarters…” Mr. Ricafort said, adding that “slower global economic growth… largely due to the lingering US-China trade war and slower Philippine GDP growth… could also support any further easing in local monetary policy…
Another RRR cut, Mr. Rica- fort added, could come “any time soon, as early as within September…” amid “[t]he slowest growth in universal and commercial bank loans in about 8.5 years and… M3 growth among the slowest in seven years would also support further cuts in the RRR…”
Jiaxin Lu, economist at Continuum Economics, said “that another rate cut of 25 bps by the BSP remains on the table” and “it is likely that the reserve requirement ratio may be lowered further at the policy meeting, with a further 100 bps reduction seen…”
For Alex Holmes, Asia economist at Capital Economics, oil price volatility in the wake of the attacks the other week on major Saudi oil processing sites will not “be enough to dissuade the Bank from cutting this month.”
“The most pressing issue now for both the BSP and the US is how quickly Saudi… facilities could resume production,” said Robert Dan R. Roces, chief economist at Security Bank Corp.
But with Saudi Arabia saying that full production will be restored by end-September, “we think there is… a higher chance of a 25 bsp policy cut in the Sept. 26 MB meeting,” Mr. Roces added.
“Even before the Saudi Aramco drone attacks over last weekend, UnionBank’s Economic Research Unit (ERU) expects a 25 bps rate cut from the Monetary Board on their Sept. 26 meeting,” UnionBank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said.
“One major reason is seen to be the declining annual increases of headline inflation and the declining nature, as well, of core inflation,” he added, saying that his unit “does not expect any RRR cut in this policy meeting.”
“The RRP cut is more certain than the RRR cut.”
On the other hand, Mitzie Irene P. Conchada, associate dean of the De La Salle University School of Economics, said that “[w]ith stable prices and other economic indicators in the past months, I think the BSP will still retain its key policy rate as well as other rates in its next meeting.”
“We are also watching out for the looming increase in oil prices due to the Saudi Arabia event.” — Luz Wendy T. Noble
THE PROPOSED P4.1-trillion national budget for 2020 is now comfortably on track for year-end enactment, following advanced approval of the spending plan last Friday at the House of Representatives, a Senate leader said last weekend.
“Perhaps,” Senate President Vicente C. Sotto III said in a mobile phone message on Saturday, when asked if the Senate can similarly approve the budget ahead of schedule.
“At least we will not be cramming or stepping on our toes to finish quickly,” he added.
“We can, most probably, be done on third reading before December.”
Senator Juan Edgardo M. Angara, chair of the Finance Committee, for his part, said in a separate text message: “So far we are on schedule to pass the budget in time for next year.”
Mr. Angara had directed finance committee vice-chairmen to finish hearing the budgets of government offices assigned to them before Congress goes on an Oct. 4-Nov. 3 break. He added that it is “too early to tell” whether there will be major differences in the two chambers’ budget versions that could stall discussions in the bicameral conference committee, tentatively scheduled on Nov. 25-Dec. 8.
The House of Representatives on Friday evening approved on third and final reading House Bill No. 4228, or the proposed General Appropriations Act for Fiscal Year 2020, two weeks ahead of its self-imposed Oct. 4 deadline.
The chambers target submission of the budget to the Office of the President by Dec. 15.
President Rodrigo R. Duterte had certified the national budget as urgent, allowing the House to approve it on second- and third-reading on the same day.
This was intended to prevent a repeat of late enactment suffered by the P3.662-trillion 2019 national budget that deprived new projects of funds for much of last semester. That resulted in a muted 5.5% first-half economic growth that compares to a 6-7% official full-year target for 2019.
The House version, according to Appropriations Committee Vice-Chairman Jose Ma. Clemente S. Salceda, includes a P100-million allocation to each congressmen.
Mr. Angara told reporters last Sept 19 that the allocation is acceptable, provided “these are not lump sums” and that projects to be funded are “pre-identified.”
On of the issues that caused late enactment of the 2019 national budget was the alleged insertion of P95-billion allocations even after the spending plan had already been ratified by both chambers of Congress, hence, ready for submission to Malacañang.
Mr. Duterte vetoed those allocations when he signed the 2019 budget into law three-and-a-half months late on April 15, saying they were not in sync with his administration’s priorities. — Charmaine A. Tadalan
ABQAIQ, SAUDI ARABIA — Saudi state oil company Aramco said it will bring back by end-September full crude output at Abqaiq and Khurais, the two oil facilities damaged by attacks last weekend that US officials have blamed on Iran.
Aramco is shipping equipment from the United States and Europe to rebuild the damaged facilities, Fahad Abdulkarim, Aramco’s general manager for the southern area oil operation, told reporters on a tour organized by the company to the two sites east of the capital Riyadh.
Reuters reporters were shown repair work under way at both locations, with cranes erected around burnt-out stabilization columns, which form part of oil-gas separation units.
“We are working 24/7,” Mr. Abdulkarim said in Khurais. “This is a beehive.”
At Abqaiq, a number of spheroids, used to separate oil from other elements contained in crude oil, were surrounded by scaffoldings and had two-yards wide punctures in the dome.
Khalid Buraik, Saudi Aramco vice-president for southern area oil operations, said 15 towers and facilities had been hit at Abqaiq, but it would regain full output capacity by the end of September.
“We are confident we are going back to the full production we were at before the attack (on Khurais) by the end of September,” Mr. Abdulkarim said.
The Saudi defence ministry said on Wednesday 18 drones and three missiles were fired at Abqaiq, the world’s largest oil processing facility. The missiles targeting Abqaiq fell short, while the Khurais facility was hit by four missiles.
The attacks halved output of the world’s top oil exporter by shutting down 5.7 million barrels per day, of which 4.5 million bpd in Abqaiq an 1.2 million bpd in Khurais. About 2 million bpd have been restored at Abqaiq as well as 30% of Khurais’s output.
There was no casualties reported at the two sites even though thousands of workers and contractors work and live in the vicinity.
Yemen’s Houthi group claimed responsibility for the attacks but a U.S. official said they originated from southwestern Iran. Tehran, which support the Houthis, has denied any involvement in the attacks.
The United States has imposed sanctions on Iran’s central bank, US President Donald Trump said on Friday, nearly a week after the attacks.
Mr. Trump did not give any other details about the sanctions.
Asked about the possibility of a military response on Iran, Mr. Trump said the United States was always prepared and that a military strike was always a possibility. — Reuters
The Entrepreneur Of The Year Philippines 2019 has concluded its search for the country’s most successful and inspiring entrepreneurs. Entrepreneur Of The Year Philippines is a program of the SGV Foundation, Inc. with the participation of co-presenters Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each of the finalists for the Entrepreneur Of The Year Philippines 2019.
IN TODAY’s highly turbulent and disrupted global economy, we look to entrepreneurs for ideas that will challenge the norm and transform industries — ideas that can create opportunities for financial growth and economic stability; ideas that create positive change to empower communities and uplift the nation.
For the 16th year of the Entrepreneur Of The Year Philippines (EOYP) program, we once again celebrate the remarkable men and women who inspire innovation without limits, who fuel growth and prosperity in their respective enterprises and industries.
The 2019 EOYP finalists come from diverse industries, such as food and beverage, real estate development, steel manufacturing, importation, trading, health and wellness, technology, agriculture, farming and logistics.
THEIR STORIES
One finalist aspired to create his own brand and started a company that has now become a leading enabler of advanced facilities and IT solutions.
Dreaming of rebuilding the Philippine steel industry, one finalist set out to grow his company into the country’s flagship steel firm.
Armed with a childhood dream of putting up his own restaurant and unwavering tenacity, one finalist transformed from a cruise ship cook to a food franchise powerhouse.
Still another focused on his dream of bringing commercial spaces to rural areas to create livelihood and opportunities for more Filipinos.
Through sheer determination and hard work, one of our finalists developed his micro-business into a global food kiosk network.
Another finalist was able to rebuild her family’s liquor business after a crippling corporate disaster and established her own brands and ventures.
Another built up his logistics firm despite heavy local and international competition.
By taking calculated risks and leveraging on business opportunities, one other finalist transformed a small merchandising firm into one of the largest companies in the chemical trading industry.
Driven by a desire to lift her family from poverty, as well as a passion for property development, one finalist founded a real estate company that builds affordable quality homes.
Motivated by his vision of transforming the Philippines into a rice self-sufficient nation, one finalist developed high-yielding hybrid rice seed varieties suitable for tropical countries.
Through prudence and integrity, still another finalist disrupted the steel trading industry by leveraging on trust and technology.
One finalist’s innovative and holistic approach to beauty and wellness led her to revolutionize aesthetic medicine in the country.
Determined by their goal of modernizing the local swine industry, a pair of finalists introduced advanced hog-raising practices and facilities.
Faced with the challenge of saving a fledgling family business, one finalist transformed the company into a leading healthtech provider.
These are the journeys of entrepreneurs who defied the odds through sheer hard work and taking risks necessary for their ideas to become reality and drive meaningful change.
All nominees for the Entrepreneur Of The Year Philippines were screened using a system developed by Entrepreneur Of The Year in the United States and used in all countries that participate in the program. Qualified nominees were interviewed and given the chance to provide additional information as necessary. The list was further screened to determine the finalists.
A panel of independent judges will select category winners from among the finalists.
From the category winners, the Entrepreneur Of The Year Philippines 2019 overall winner will be determined. The overall winner of the program will represent the country in the World Entrepreneur Of The Year in Monte Carlo, Monaco in June 2020.
The Entrepreneur Of The Year program was developed in the United States in 1986 by professional services firm Ernst & Young (EY).
Through the program, successful entrepreneurs can come forward and tell their inspiring stories to awaken the entrepreneurial spirit in others.
In 2001, EY expanded the program and launched the World Entrepreneur Of The Year awards.
In the Philippines, the SGV Foundation, Inc. established the Entrepreneur Of The Year program in 2003.
WINNERS ALL
The first winner of the Entrepreneur Of The Year Philippines was Jollibee Foods Corp.’s former president and chief executive officer (CEO), now Chairman, Tony Tan Caktiong, who then went on to win the 2004 World Entrepreneur Of The Year award in Monte Carlo, Monaco.
Other past awardees include Socorro “Nanay Coring” Cancio-Ramos, founder and general manager of National Book Store (2004); Lance Gokongwei, President and CEO of Cebu Air, Inc.; Senen Bacani, chairman and president of La Frutera, Inc.; Wilfred Steven Uytengsu, Jr., president and CEO of Alaska Milk Corp.; Ambassador Jesus P. Tambunting, chairman and president of Planters Development Bank; Tennyson Chen, president of Bounty Fresh Food Inc; Erramon I. Aboitiz, president and CEO of Aboitiz Power Corp.; Jaime I. Ayala, founder and CEO, Hybrid Social Solutions Inc.; Ben Chan, chairman of Suyen Corp.; Nix Nolledo, chairman and CEO of Xurpas, Inc.; and Natividad Cheng, chairperson and CEO of Multiflex RNC Philippines, Inc.
The 2019 search for the Entrepreneur Of The Year Philippines is conducted with the participation of the Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange.
The official airline of the Entrepreneur of the Year Philippines 2019 is Philippine Airlines. Media sponsors are BusinessWorld and the ABS-CBN News Channel.
Beginning Sept. 24, BusinessWorld will be featuring each finalist and individual stories of how disruption, transformation and inspiration inspired them to excel in their respective industries.
The winners of the Entrepreneur Of The Year will be known on Oct. 15 at a formal awards banquet at the Makati Shangri-la hotel.
