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Disrupt. Transform. Inspire!

Winners of the Entrepreneurship Of The Year Philippines 2019 named

By Mark Louis F. Ferrolino, Special Features Writer

It was a momentous and historical night honoring the country’s most outstanding business leaders as the Entrepreneur Of The Year Philippines 2019 concluded with an awards banquet held at the Makati Shangri-La hotel.

Adopting the theme “Disrupt. Transform. Inspire!,” this year’s Entrepreneur Of The Year Philippines searched for visionary entrepreneurs who are driven by their desire to improve the world around them by providing strategic solutions to complex challenges. These promising individuals thrive in the age of disruption and lead enterprises that can inspire and empower communities and uplift the nation.

SGV & Co. Chairman and Managing Partner J. Carlitos G. Cruz led the prestigious gathering with a welcome remarks, highlighting the significance of transformation in the era of disruption.

“Today’s age of transformation has given entrepreneurs vast opportunities for growth, but at the same time, it exposes businesses to various risks and uncertainties. To help us navigate through this era of disruption, we need visionaries who can leverage on new digital platforms and provide people with a clear purpose,” Mr. Cruz said.

The Entrepreneur Of The Year Philippines 2019 has identified 15 outstanding entrepreneurs from diverse industries across the country, such as food and beverage, real estate development, steel manufacturing, importation, trading, health and wellness, technology, agriculture, farming, and logistics. By the end of the night, four entrepreneurs rose above the rest and were hailed as winners in five different categories.

The most coveted award of the night, the 2019 Entrepreneur Of The Year Philippines, was bestowed to Benjamin O. Yao, chairman and chief executive officer (CEO) of SteelAsia Manufacturing Corp. (SteelAsia). He will represent the country in the World Entrepreneur Of The Year awards to be held in Monte Carlo, Monaco in June 2020.

The Entrepreneur Of The Year Philippines recognizes Mr. Yao’s outstanding dedication, leadership and centeredness on transformation and disruption, which have made SteelAsia the country’s flagship steel firm and among the largest rebar manufacturers in Asia. With its presence across the archipelago, SteelAsia’s annual production reaches over two million metric tons, serving over 2,000 customers, including the country’s biggest property developers.

Mr. Yao also received the Master Entrepreneur award, which is given to an entrepreneur who best exemplified sound management practices in critical areas of the company like finance, marketing, human resources, and sales.

Meanwhile, the Emerging Master Entrepreneur, an award given to an entrepreneur who has applied sound management practices and exceptional leadership to building an enterprise with vast potential for future growth and expansion, was presented to Jose P. Magsaysay, Jr., chairman emeritus of Cinco Corp.

The Woman Entrepreneur award, on the other hand, was given to Esther Wileen S. Go, president and CEO of MediLink Network, Inc. The said award aims to recognize the outstanding contributions of women in entrepreneurship and leadership, and is given to a trailblazer whose work has vastly improved her industry.

The Small Business Entrepreneur award, which is given to an entrepreneur for best demonstrating a management excellence in a business with assets of less than a hundred million pesos, was awarded to Rolandrei Viktor E. Varona, president and CEO of Zark’s Food Ventures Corp.

The other finalists of this year’s Entrepreneur of the Year Philippines were Alexander M. Cruz, chairman and CEO of XRC Mall Developer, Inc.; Beverly M. Dayanan, founder, president and CEO of Contempo Property Holdings, Inc.; Miguel C. Garcia, founder, chairman, president and CEO of DTSI Group, Inc.; Alvin S. Hing, chairman and CEO of Excelsior Farms, Inc., together with Paul T. Holaysan, president and chief operating officer of the same firm; Henry Lim Bon Liong, chçcairman and CEO of SL Agritech Corp.; Olivia Limpe-Aw, president and CEO of Destileria Limtuaco & Co., Inc.; Sindulfo L. Sumagang, president of Oneworld Alliance Logistics Corp.; Regan C. Sy, CEO and vice-president for Marketing of Regan Industrial Sales, Inc.; Necisto U. Sytengco, chairman of SBS Philippines Corp.; and Aivee A. Teo, president and medical director of The A — Institute.

All nominees for the Entrepreneur Of The Year Philippines went through a strict financial data ranking system used by all Entrepreneur Of The Year participating countries. Criteria for judging include entrepreneurial spirit, financial performance, strategic direction, global (or community) impact, innovation, and personal integrity/influence.

The finalists were evaluated by an independent panel of judges composed of distinguished business personalities.

This year’s panel was co-chaired by Antonette C. Tionko, Undersecretary of Revenue Operations Group and the Corporate Affairs Group of the Department of Finance; and Ambassador Jesus P. Tambunting, OBE, chairman of Capital Shares Investment Corp. and 2009 Entrepreneur Of The Year Philippines. The other panel members were Ramon S. Monzon, president and CEO of The Philippine Stock Exchange, Inc.; Rizalina G. Mantaring, president of the Management Association of the Philippines; Reynaldo D. Laguda, executive director of Philippine Business for Social Progress; and Natividad Y. Cheng, chairperson and CEO of Multiflex RNC Philippines, Inc. (URATEX) and 2017 Entrepreneur Of The Year Philippines.

The Entrepreneur Of The Year was founded in United States by professional services firm Ernst & Young (EY) in 1986, with the aim to recognize the achievements of the most successful and innovative entrepreneurs worldwide. In 2001, EY expanded the program and launched the World Entrepreneur Of The Year awards.

In the Philippines, the Entrepreneur Of The Year program was established by the SGV Foundation, Inc. in 2003. Over the years, the program has recognized more than 200 market leaders in the country whose innovative ideas disrupt traditional business boundaries.

The very first winner of the Entrepreneur Of The Year Philippines was Jollibee Foods Corporation President and CEO Tony Tan Caktiong, who then went on to win the 2004 World Entrepreneur Of The Year award.

Smarter and more efficient SUVs

Sport utility vehicles, or SUVs, are a very fine option for a car to be used for regular driving as well as for long rides. Vehicles of this type are also notable for their excellent performance in any condition, ready to take any challenging obstacles on the road.

As SUVs keep on rolling out to cater to both new and experienced users, car manufacturers have been updating their SUVs with more innovative features and more enhanced builds. The top SUVs to date, as presented by some local listers of automobiles, have shown these improvements.

Toyota has vehicles that are regarded as reliable SUVs, namely the Toyota Rush and Toyota Fortuner. According to a list by price comparison site Priceprice.com, the Rush is noted for its efficient engine, comfortable and luxurious interior, modern and sporty exterior, and competitive pricing. It is currently updated with the same engine that powers Toyota Avanza, a 1.5-liter Dual VVT-i gasoline engine, which can produce 102hp and 134Nm of torque. It also comes with either a 5-speed manual or 4-speed automatic transmission.

The Fortuner, meanwhile, is considered as the best-selling mid-size SUV in the country. It now has two new diesel engine variants, 2.4-liter and 2.8-liter. It also has added safety features such as Stability Control, Active Traction Control, and Hill-Start Assist Control for the car’s V variants. Also, the model is now available in the following color variants: Silver Metallic, Freedom White, Gray Metallic, Attitude Black Mica, Phantom Brown Metallic, Avant-Garde Bronze Metallic, and White Pearl Crystal Shine.

Tough and reliable features characterize the refreshed Mitsubishi Montero Sport, which now displays a front redesigned with the carmaker’s Dynamic Shield grille. “It also features chrome linings which envelope the huge air intakes and goes all the way to its fog lamps, [and] its exterior is more complemented by its chic LED headlamp and accentuating taillights,” Priceprice.com added.

Other updates to the Montero include leather contoured seats with multi-layer cushioning and a comprehensive Multimedia Entertainment System and Dual Zone Automatic Climate Control System.

Another top SUV is the Honda CR-V. The latest version of Honda CR-V is set to stand out amongst competitors with a turbocharged engine that delivers “a rare combination of thrift and zest, something that isn’t experienced yet from most of its contenders in its class”.

The 2019 Honda CR-V also highlights expanded spaces, with a roomy interior and plentiful storage areas. Driving this model is described as “both comfortable and athletic”, hence a very helpful vehicle for treading the metro’s challenging roads.

Noted for its “upscale interior, high safety scores, plenty of cargo space, and a smooth ride”, the Honda CR-V is the #1 compact SUV in the latest Best Cars rankings by the US News & World Report.

Indian automaker Mahindra also joins the roster with its Scorpio Floodbuster. While its aesthetic is seen as a throwback to classic types, its performance is nonetheless up-to-date. “Its 2.5-liter turbodiesel engine is more than enough to take you where you need to go,” reviewed local financial comparison website eCompareMo.com. “This rugged ride has a ground clearance of 180 millimeters and can seat up to nine passengers.”

Nissan’s entry to the mid-sized SUV competition is the Terra. Sharing the same wide profile of the Patrol and Navara models, Nissan Terra has a modern rugged look that is “akin to its American competitors”. It is powered by a YD25 DDTi inline-4 diesel engine, accompanied by a turbo-charger and intercooler. Also, the engine can perform 187hp and 450Nm of torque.

Ford Everest, meanwhile, is popular for its durability that makes it fit to be taken through horrendous traffic as well as rainy-day floods. Updating this model is the new 2.0-liter Bi-turbo diesel engine matched with a 10-speed auto. It also features the Terrain Management System, a traction control support, and a rear diff locker “to aid the vehicle in controlling its stability”.

Suzuki Jimny is characterized by “a certain unbeatable charm that most modern SUVs cannot get correctly”. The four-seater subcompact vehicle, eCompareMo adds, is powered by a 1.5-liter K15B engine that makes it stable enough to “go through any punishing its driver wants.”

Isuzu MU-X is regarded by Priceprice.com as a “perfect and practical” vehicle both for out-of-town and routinary drives. It is equipped with a Euro 4-compliant 3.0L Blue Power turbocharged engine that, together with the SUVs improved emission, is capable to produce 175hp and 380Nm of torque. Other notable features of the vehicle include a Terrain Command System (on 4×4 variants) and a premium touchscreen head unit.

Chevrolet Trailblazer is considered a top vehicle for outdoor driving “which requires a more-than-decent performance and drivability that never fails”, with a 2.5L or 2.8L engine powering the vehicle. Its 7- or 8-inch touchscreen infotainment system is equipped with the brand’s latest Chevrolet MyLink System, which allows for playing of radio stations, music files, or movies via its four- or seven-speaker setup. Its safety features, meanwhile, include the Traction Control System, the Anti-lock Braking System with EBD, and Panic Brake Assist.

An apparent newcomer to the country, SAIC Motor-owned MG has its ZS subcompact SUV, which “can go toe-to-toe with others” with a fuel-efficient 1.5-liter inline-four engine that can perform 114hp and 150Nm of torque.

Korean automaker Hyundai has refreshed its Santa Fe line with an added two-row design and high-quality interior materials. It is powered by a reliable 2.2L R CRDi e-VGT that fuels both its front wheels, coupled with a new 8-speed automatic.

The Mazda CX-9 features a distinct look from its signature KODO design, as shown by its prominent grille, longer hood, and sleeker headlights. The car’s “bespoke” exterior is highlighted by a prominent rear end, long hood, and well-constructed windshield.

Lastly, Foton Toplander is considered by eCompareMo as a “cheap alternative to more famous midsize SUVs”. Making it an affordable choice is its efficient 2.8-liter turbocharged Cummins ISF engine. “Not only that it can push out 161 horsepower from its core but it can also be a great hauler thanks to its three-ton towing capacity,” wrote the comparison portal. — Adrian Paul B. Conoza

Why buy an SUV instead of a sedan?

With Metro Manila being consistently among the top 10 worst cities in the world, there seems to be little reason why anyone would get a larger, bulkier sport utility vehicle (SUV) over a small car. With today’s gas prices, downsizing seems like the most economical option.

And yet, according to sales figures from distributor groups Association of Vehicle Importers and Distributors (AVID), Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Truck Manufacturers Association (TMA) taken in the first half of 2019, Light Commercial Vehicles, such as SUVs and vans, have outsold passenger cars by almost double — 108,111 units compared to 63,349.

Clearly, Filipinos prefer SUVs. We listed down the reasons why.

SUVs carry more people

The most obvious reason, perhaps, is also the most compelling. The simple answer is that SUVs can carry more people more comfortably and more reliably. Whereas sedans can carry only four to five people maximum, a three-row SUV can seat up to seven or more people, offering more flexibility.

With Filipino families often extending towards aunts, uncles, cousins, and grandparents, an SUV is the most logical choice. Unless a family has enough resources to shell out for two cars to seat everyone, an SUV can comfortably accommodate for everyone in the extended family (and friends) for those holiday trips.

SUVs have more space for cargo

Speaking of family vacations, often Filipinos love to pack everything they need during trips, from beverage coolers to pots, pans, and even grills. Sedans most likely do not have the space for such bulky cargo. When not crammed full of passengers, SUVs can efficiently store double or triple the cargo of sedans or small hatchbacks, efficiently and securely.

The space inside a typical SUV’s cabin makes it easier to haul larger items like boxes, luggage, sports gear, and even bicycles and furniture. This also makes them a prime choice for small business owners who need a vehicle to haul merchandise or tow other vehicles. With the Philippine economy comprising of more than 99% small business owners, the appeal of having an easy, reliable transport vehicle is obvious.

SUVs have never been more fuel-efficient

Technology has come a long way from the gas-guzzling jalopies of the past. Automakers have discovered new and more effective ways of reducing the fuel consumption of vehicles and making the larger, heavier SUVs more efficient. Aerodynamic designs, fuel-saving technologies integrated in smaller displacement engines, as well as advanced structural materials to reduce overall weight all have been leaps towards making a more economic vehicle.

SUVs offer more protection

Size matters, at least in terms of car safety. As SUVs are bigger and heavier than smaller and lighter sedans, they offer more mass between a passenger and the hostile elements of the road. Longer hoods, bigger crush zones, and an heavier weight to keep it on the ground, SUVs have an advantage in frontal crashes over smaller vehicles.

According to the Insurance Institute for Highway Safety (IIHS) in the US, a heavier vehicle will typically push a lighter one backward during the impact, putting less force on the occupants of the heavier vehicle and more on those in the lighter vehicle. The organization’s fatality data even goes as far as to show the mortality rates between passengers of lighter vehicles and heavier ones. The lowest 2015 death rate by vehicle type is for very large SUVs: 13 deaths per million registered vehicles. The highest is for mini cars: 64 deaths per million registered vehicles.

SUVs can deal with rougher terrain

In the worst circumstances, SUVs are also the most dependable. In a flood-prone country like the Philippines, having a sedan submerged in floodwaters is adding another problem to an already terrible day. The higher stance of SUVs can allow them to operate in roads sedans cannot, offering a dependable investment for the days when you really need some semblance of safety.

Of course, SUVs are also better off-road, making them better at navigating unpaved roads in the provinces or exploring new places.

SUVs just look cool

Last but not least, SUVs have the advantage of simple confident and empowering design. Many are the Filipino drivers who love the sense of power and status an SUV provides.

The Philippines is not alone in this either. According to an article by the New York Times last year, SUVs are particularly popular in China, “where the big cars have offered a sense of status, stability on bumpy roads, and room for larger families emerging with the phasing out of the one-child policy”. The article further cites the global consulting firm McKinsey predicting that by 2022, one in every two cars sold in China will be an SUV.

Offering safety, efficiency, reliability, comfort, and an aura of confidence and success, SUVs are arguably the most versatile vehicle out in the market today. — Bjorn Biel M. Beltran

Developments in the global SUV market

As sport utility vehicles (SUVs) keep on advancing with design and technological enhancements, it continues to be much favored by driving consumers both globally and locally.

Automotive business intelligence supplier JATO Dynamics reported the growing popularity of SUVs on a global scale. The intelligence firm noted that SUVs was the top segment in 2018, with 29.77 million units sold or 36.4% of the total market. This is an increase of 2.5% and, more importantly, the highest recorded market share to date.

This growth in the market, JATO noted, is due to the participation of car makers in the segment as well as the contribution of the largest markets such as China. “As more car makers joined the segment, sales were boosted by new models and were further helped by a growing consumer awareness of these vehicles,” wrote JATO on its Web site. “But stalling sales in China — one of the main drivers of growth over the last 10 years — meant that the rapid growth began to change. However, most of the car makers that were missing from the segment finally joined which helped to stabilize sales.”

China, as the largest SUV market, counted for almost 35% of SUV global sales, although it dropped by 2.9% to 10.35 million units.

“The lack of incentives during the last few years is having a negative impact on the industry and puts more pressure on the market. This coincides with a decline in consumer spending capabilities,” explained JATO on the reasons for the decrease. “Since 2014, the citizen financial leverage ratio (debt/savings) has increased from 46% to 63%, meaning that consumers simply have less money to spend.”

The United States ranked as the second top market, with a 10% increase in their SUV sales to 7.75 million units. Europe followed with an 18% growth in sales, tallying 5.4 million units.

Furthermore, JATO found compact SUVs as the most popular subsegment of SUVs, with 12.4 million units. It got 41% of total sales, an increase of 7%. Midsized SUVs followed with 7.26 million units (up by 3%); while small SUV ranks third with 6.58 million units (up by 13%). Big SUVs, meanwhile, tallied 3.68 million units, with 2% increase.

Here in the Philippines, considerable growth in SUV leads and sales still give good news to the segment. In the latest quarterly report by online automotive marketplace AutoDeal, leads in midsize SUVs gradually increased in the past four quarters. Based on the inquiries received by AutoDeal for major vehicle categories, midsize SUVs reached almost 15% of total leads in the 2nd quarter of 2019, fourth among the car categories listed.

AutoDeal also recorded slight increases from previous periods in the proportion of its tracked generated sales of midsize SUVs and subcompact crossovers for the 2nd quarter of 2019. The earlier reached almost 20%, while the latter was close to 10% of the shares.

Not only have SUVs been counted for its sales growth. This segment was also observed for improvements in terms of safety and fuel economy.

SUVs are now seen to be safer on the road than before by the Insurance Institute for Highway Safety (IIHS). Its recent study concluded that SUVs are not a major threat to occupants of smaller vehicles after it tracked a decreasing rate of car driver deaths in crashes with SUVs relative to the death rate in crashes with other cars in the past years.

“In 2013-16, the rate that car drivers were killed in crashes with 1-4-year-old SUVs was just 28% higher than the rate that car drivers were killed in crashes with other cars, also between 1 and 4 years old. That compares with 132% in 1989-92 and 59% in 2009-12,” IIHS explained.

IIHS attributed this observed compatibility of SUVs with cars and minivans to “newer SUV designs that lowered the vehicles’ front ends to better align with cars’ energy-absorbing structures.”

Joe Nolan, IIHS senior vice-president for vehicle research, noted that reducing the weight of a vehicle as heavy as an SUV has allowed for more sophisticated designs “that do a better job of managing forces in a crash”, aside from electronic stability control and other crash avoidance features.

“This suggests that reducing the weight of the heaviest vehicles for better fuel economy — for example, by switching from steel to aluminum — can improve safety for other road users without sacrificing occupant protection,” Mr. Nolan was quoted as saying.

In addition, the United State Environmental Protection Agency recently observed that as SUVs continue to gain market share, they nonetheless achieve low carbon dioxide emissions and high fuel economy.

“Truck SUVs (larger or 4WD SUVs) improved fuel economy by 0.1 mpg (to 22.4 mpg) and CO2 emissions by 3 g/mile in model year 2017, while car SUVs (generally smaller 2WD SUVs) essentially remained flat with no change in fuel economy (26.2 mpg) and a slight increase in CO2 emissions of less than 1 g/mi,” EPA reported. — Adrian Paul B. Conoza

Keeping SUVs in good shape

Sport utility vehicles (SUVs) are one of the most popular choices among car buyers these days due to their versatility. They have the pulling capacity of a small truck but the comfort, luxury, and ride of a larger car. They can handle different weather and road conditions, perfect for family getaways, fishing trips, camping expeditions or moving of huge items. Although SUVs are tough and durable, they also need the right kind of care to keep them in good shape.

Exterior and interior maintenance

Protecting SUVs from its worst enemies, such as sun, wind and rain, is one of the best ways to take good care of them. SUVs, if left unprotected in these elements, will deteriorate and eventually rust away, according to Jason Fogelson, an automotive journalist specializing in SUVs. “If you can’t get in the garage, consider buying a cover,” he said. When parking the car at work or at the store, on the other hand, it’s good to look for some shades.

Inspecting the SUV on a regular basis is also a must. Finding the small problem before it becomes big will help keep auto detailing simpler and more effective, Mr. Fogelson said. “Check all of the paint for dirt and sediment. Check the chrome for pitting and rust. Check the tires and wheels for scrapes and discoloration. Look around the interior for dirt, debris, and stains,” he suggested.

SUVs, just like other vehicles, also need to be washed. According to Mr. Fogelson, the longer the dirt sits on the paint, the more aggressive cleaning requires. “Don’t wait for a good coat of dirt and dust to collect,” he said, noting that washing SUVs once a month is good, but doing this for twice a month is better.

Putting a good coat of wax is also important once the SUV is clean. The wax acts as a protectant that keeps dirt and dust from binding to the coat and paint. In addition to this, Mr. Fogelson said that wax also acts as a moisture barrier, keeping water from penetrating pores in the painted surfaces and getting to the metal below.

Mr. Fogelson also advised the use of specially-formulated cleaners, polishes, and waxes to achieve the longest life and the best look of an SUV. “You can mix and match your favorites from various companies. Buy the best that you can afford, and keep it simple,” he said.

Before and while driving SUVs

Checking the condition of a vehicle before setting off anywhere is really important. Current fluids of the SUV, including the oil, coolant and windshield water fluid, need to be checked periodically, auto mechanic Pro Car Mechanics said.

Tire pressure also needs to be maintained. “Low tire pressure can cost you with lower gas mileage. A vehicle like an SUV burns up enough gasoline, so anything which will maintain decent gas mileage is important,” the auto mechanic said on its Web site.

The Pro Car Mechanics also advised SUV drivers to check the fuel level. On a regular basis, it’s better to drive with at least half a tank of gas to improve mileage and prevent the fuel pump from working too hard.

While driving the SUVs, it is important to keep in mind that they have limitations too. Be sure to take corners slowly and brake earlier than you would with a car, auto repair shop AAMCO Colorado said.

“SUVs weigh considerably more than regular automobiles — anywhere from 4,000 to 10,000 pounds. They take more to get going, and a lot more to stop. They also need more room to come to a complete stop. When driving in wet, snowy, or slippery conditions, you really need to take into consideration your ability to stop and maintain control of the vehicle. A large vehicle does not stop faster or better because of its weight. It is quite the opposite. The increased weight actually works against you, carrying the vehicle forward with greater inertia. Having four-wheel drive does not give you any advantages or added safety, either, when it comes to stopping on ice or other slick conditions,” AAMCO Colorado said in its Web site.

When carrying heavy loads or towing things, AAMCO Colorado advised to ask a mechanic on how to properly load the SUV efficiently so the weight of the objects is centered. It is also important to learn how to properly connect a trailer or vehicle to tow, it added.

Care and maintenance

Maintaining the engine of SUVs and its other working parts tends to be more expensive due to the larger sizes, equipment, and complexity of the vehicles, AAMCO Colorado said.

In terms of choosing a car repair shop for maintenance, it’s better to stick with one shop. “When you find one that you are interested in, start off with getting small services and repairs done to see how they do, then work up to bigger services. This way, they’ve earned your trust in case you need any big fixes like a transmission repair,” AAMCO Colorado said.

As with all cars, changing the engine oil and oil filter regularly is important for a smooth running engine, it added. — Mark Louis F. Ferrolino

Optimizing agri sector’s potential through tech

By Mark Louis F. Ferrolino, Special Features Writer

The Philippines continues to exhibit a stellar economic performance in recent years, making it one of the fastest-growing economies in the world. Amidst rising global uncertainties, the economy remains strong and is projected to grow at 5.8% this year, according to The World Bank. But despite this, the country’s agriculture sector is left struggling to meet its full potential, recording a steady decline in terms of contribution to the gross domestic product (GDP) over the years.

In 1980, agriculture accounted for about one-fourth of the nation’s GDP. This has dwindled as the country gradually shifted from an agrarian to an industrial and service-oriented economy. At present, the sector represents a thin share of the country’s total GDP. In 2018, Agriculture, Hunting, Forestry and Fishing (AHFF) comprised only 8.1% of the national economy, the Philippine Statistics Authority (PSA) stated.

For Jet Parma, president and country head of Syngenta Philippines, Inc., an affiliate of a leading global agricultural company that offers crop protection products and seeds, agriculture is still an important contributor to the Philippine economy.

He told BusinessWorld in an e-mail that the sector remains crucial for food production and security. It also employs a significant portion of the country’s labor force. In fact, in rural areas, agriculture is still the main source of livelihood and employment, he said.

Based on the latest data released by the PSA, workers in the agriculture sector comprised the second largest proportion of the country’s total employed population in July 2019. These workers made up 23.5% of the total employed, following workers in the services sector that accounted for 57.8%.

There are several challenges that the local agriculture sector is facing which hamper its growth. Limited diversification, low productivity, climate change, and natural resource degradation are some of these.

According to Mr. Parma, factors that hinder productivity include limited access to credit, lack of farm mechanization, irrigation problems, unavailability of post-harvest facilities, ageing farmers, loss of agricultural land, and inadequate farm to market roads.

From April to June of 2019, the PSA reported that the country’s agricultural output contracted by 1.27%, which was attributed to the decline in crops production. Increases, however, were recorded for livestock, poultry and fisheries. At current prices, the value of agricultural production amounted to P424.6 billion, 5.2% lower than the previous year’s level, the PSA said.

Climate change is another major challenge. “Strong typhoons and drought affect planting resulting in poor quality yield,” Mr. Parma said.

Siimilar to other industries, the agriculture sector is not new to change brought by advances in technology. Unsurprisingly, these developments have also helped address some of the challenges of the sector.

In particular, some of the recent innovations in the sector that have helped farmers in their farming practices, according to Mr. Parma, include the introduction of hybrid seeds that are not only insect- and disease-resistant but are also resilient to climate change; crop protection products that are low dose and have multi-site mode of action; use of hand tractor, harvester and planter to address issues on manual labor; solar-powered irrigation systems; use of drones to safely and efficiently apply crop protection products; and mobile applications that help identify crops and diagnose possible field problems.

Though adoption of technology in the local agriculture sector has improved compared to previous years, Mr. Parma said that uptake has been slow and a lot of work still needs to be done.

“There is a need to educate more farmers on how to grow their crops more efficiently. Learning centers or demo sites are helpful as farmers need to see for themselves that new solutions or technology bring better yield and higher RoI (return on investment),” he said.

Mr. Parma added that the government has always been openly supportive of the agricultural sector.

“Several programs were created to address low productivity and improve our competitiveness in the world market. However, the problem has always been in the implementation of these programs,” he said.

In the years to come, Mr. Parma sees an increased adoption of new technology in the sector.

“The population continues to increase but resources remain the same. Land used to produce food will not get any bigger. We have no option but to grow with less. The country should also be less dependent on imports as global supply is also thinning. Innovation and technology are key in order for this sector to accelerate its growth,” he said.

Back to back: Syngenta Philippines wins Top Yielder awards at Corn Derby

For the second time in a row, Syngenta Philippines’ NK8840 rose above a field of 13 corn varieties from seven seed companies when it was declared as the highest yielding variety at the Department of Agriculture’s Region 2 Corn Derby for 2019. Bagging 2017 and 2019 top yielder awards, NK8840 is a first-ever back-to-back awardee.

The 2019 corn derby results show that the NK8840 variety produced 12,145 kilos per hectare while another popular Syngenta variety, NK6410, also finished in the Top 3 with a yield of 11,512 kilos per hectare. In the corn derby of 2017, Syngenta Philippines’ NK8840 led the pack when it generated a yield of 12,823 kilos per hectare, beating 14 other corn varieties from seven seed companies. This top variety was then followed closely in the rankings of the 2017 Corn Derby by Syngenta’s NK6414, which yielded 12,655 kilos per hectare, and NK6410, which yielded 12, 580 kilos per hectare, landing in second and third place, respectively. Both years’ results are certified by the Department of Agriculture (DA) Cagayan Valley Research Center (CVRC) Region 02. 

Photo courtesy of Ryan Baldovino

Syngenta Philippines’ NK8840 features big and heavy cobs with large kernels, and strong plant stalks. It boasts of a 12-metric ton per hectare yield performance and has had consistent and stable results over the years. NK8840 is tolerant to drought and sustains its high yield even in stressful conditions. This awarded corn variety is also stay green and disease tolerant. Maturing in 110 to 115 days after planting, the corn ears are easy to harvest by hand and dehusk. NK8840 has the qualities to ensure the farmer of good returns. 

Completing Syngenta’s lineup of winning varieties, NK6414 is suitable for high density planting in both wet and dry seasons. Like the NK8840, NK6414 is also easy to harvest. NK6410, on the other hand, is an early maturing hybrid with semi-drought tolerance, good standability, and corn grains of excellent color and quality. It has consistent high yield in both wet and dry seasons. 

Syngenta Philippines continues to be a leading producer of high quality seed varieties that are able to meet local corn planters’ evolving needs that are driven by changing climatic and economic conditions. This keeps with the company’s vision of helping Filipino growers farm crops productively, profitably and sustainably. 

 

About the Event

The two (2) day Corn Derby cum Corn-Livestock Integration Summit is a project of the DA CVRC Region 2 Office. It was held at the DA Cagayan Valley Research Center, San Felipe, City of Ilagan, Isabela last August 27-28, 2019. 

The theme for this year’s Derby was focused on Masaganang Ani (high productivity) and Mataas na Kita (prosperous income) for all. The program gave around 1,559 participants, mostly farmers, the opportunity to come together and speak with government agencies, seed companies, and other successful farmers. There were also various talks, field tours, technology demonstrations and exhibits designed to encourage farmers to keep planting and to equip them for better results. 

How does the Philippines compare with other economies in terms of ease of doing business?

DOING BUSINESS in the Philippines is easier now thanks to recent reforms, according to the World Bank Doing Business 2020 report. Read the full story.

How does the Philippines compare with other economies in terms of ease of doing business?

PHL moves up ‘Doing Business’ rank

By Beatrice M. Laforga and Jenina P. Ibañez

DOING BUSINESS in the Philippines is easier now thanks to recent reforms, according to the World Bank Doing Business 2020 report.

The country’s ranking rose to 95th place from 124th last year, while its score improved by several points to 62.8, the multilateral lender said yesterday.

Despite the rank improvement, Manila was still seventh among 10 Southeast Asian Nations, behind Singapore which ranked second, Malaysia at No. 12, Thailand at 21st, Brunei at 66th, Vietnam at No. 70 and Indonesia at 73rd.

It was only better than Cambodia (144), Laos (154) and Myanmar (165).

The Philippines made it easier to start a business by abolishing the minimum capital requirement for domestic companies, said the World Bank, which used Quezon City as a benchmark. It also made dealing with construction permits easier by improving coordination and streamlining the process for obtaining an occupancy certificate.

“The role of government policy in the daily operations of small and medium-sized domestic firms is a central focus of the Doing Business data,” the World Bank said. “The objective is to encourage regulation that is efficient, transparent, and easy to implement so that businesses can thrive.”

The Philippines also strengthened minority investor protection by requiring greater disclosure of transactions with interested parties and enhancing director liability for transactions with interested parties, according to the report.

REGULATORY REFORMS
The Philippines was among 42 economies that made doing business “easier” in at least three out of 10 areas after enforcing regulatory reforms, the World Bank said.

“Selecting the economies that implemented regulatory reforms in at least three topics and had the biggest improvements in their ease of doing business scores is intended to highlight economies with ongoing, broad-based reform programs,” the World Bank said.

“The improvement in the ease of doing business score is used to identify the top improvers because it allows a focus on the absolute improvement — in contrast with the relative improvement shown by a change in rankings — that economies have made in their regulatory environment for business,” it added.

The top 10 economies that made improvement across three or more areas were Saudi Arabia (62), Jordan (75), Togo (97), Bahrain (43), Tajikistan (106), Pakistan (108), Kuwait (83), China (31), India (63) and Nigeria (131).

“Governments can foster market-oriented development and broad-based growth by creating rules that help businesses launch, hire and expand,” World Bank Group President David Malpass said in a statement. “Removing barriers facing entrepreneurs generates better jobs, more tax revenues and higher incomes, all of which are necessary to reduce poverty and raise living standards,” he added.

The “big jump” in the Philippine ranking would help the country get a higher credit rating, improve business sentiment and attract more investments, Trade Secretary Ramon M. Lopez said at a separate briefing yesterday. “Hopefully it will create greater confidence in the Duterte administration.”

He promised more improvements once the country shifts to the electronic processing of requirements in starting a business and adopts an automatic approval and e-payment system along the way.

The full implementation of a law that promotes economic activity by increasing access to cheap credit particularly for micro, small and medium enterprises will “improve the business climate” in the Philippines and empower small entrepreneurs, Finance Secretary Carlos G. Dominguez III said in a separate statement.

Albay Rep. Jose Maria Clemente “Joey” S. Salceda said the “biggest source of rigidity” for businesses remains constitutional restrictions. But “reforms are now gaining traction that would thrust the Philippines into a more competitive economy as proven by the 29-notch leap,” he said.

The Philippines recently set up an Anti-Red Tape Authority, one of the offshoots of an Ease of Doing Business Act that President Rodrigo R. Duterte signed last year.

The World Bank report measured competitiveness of economies in doing business using several indicators: starting a business, employing workers, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

How does the Philippines compare with other economies in terms of ease of doing business?

BSP trims RRR anew

THE Bangko Sentral ng Pilipinas (BSP) has cut banks’ reserve requirement ratio (RRR) for the fourth time this year, with the latest reduction to take effect in December.

In a statement on Thursday, the BSP said its policy-setting Monetary Board (MB) decided to slash the RRR of universal, commercial and thrift banks by another 100 basis points (bp), bringing total reductions to their reserve ratios for this year to 400 bps.

The MB said the cut will also apply to the reserve ratio of non-bank financial institutions with quasi-banking functions (NBQBs).

“The reduction in reserve requirements will apply to the deposits and deposit substitute liabilities in local currency of banks and NBQBs,” the central bank said. “The reduction will be effective on the first day of the first reserve week of December 2019.”

This latest cut will follow a 100-bp reduction in all banks’ RRR announced on Sept. 27 which takes effect next month and will bring the reserve ratio of universal and commercial lenders to 14% by December, while the RRR of thrift banks will stand at four percent.

Meanwhile, the reserve ratio of rural banks, which will go down to three percent next month, was untouched.

On the other hand, the reserve ratio of NBQBs will be cut to 14% by December.

“The reserve requirement reduction is in line with the BSP’s broad financial sector reform agenda to promote a more efficient financial system by lowering financial intermediation costs,” the BSP said.

“At the same time, the adjustment in reserve requirement ratios is aimed to ensure sufficient domestic liquidity in support of economic activity.”

BSP Governor Benjamin E. Diokno has vowed to bring down big banks’ RRR to single digit before the end of his term.

Analysts said the latest RRR cut will bode well for loan growth and financial markets, and will provide support against local and global headwinds.

“I think the decision to cut RRR is a proactive and timely one that should help mitigate the impact of global headwinds and this year’s public sector underspending on our GDP (gross domestic product) performance. This should also increase the probability of Philippine GDP getting back to the 6-7% range by next year,” Bank of the Philippine Islands Inc. Lead Economist Emilio S. Neri said in a text message.

The reserve ratio reduction will also give the central bank policy space and boost loan growth, said Security Bank Corp. Chief Economist Robert Dan J. Roces.

“Further cuts to the RRR as announced will have positive impact as the BSP nudges loan growth and liquidity while leaving enough policy space in the RRP (reverse repurchase) to support growth momentum in 2020. It is also seen as part of wider efforts to help businesses and consumers weather a slowdown as a fallout from global weakness,” Mr. Roces said in a text message.

Multilateral lenders have trimmed their growth forecasts for the Philippines amid continued global headwinds and the government’s underspending earlier this year due to budget delays.

The International Monetary Fund further downgraded its growth outlook for the country to 5.7%, down from the six percent outlook in July, the 6.5% forecast in April and the 6.6% and 6.7% given in October and September 2018. It also trimmed its 2020 GDP growth forecast to 6.2%.

In September, the Asian Development Bank also slashed its GDP growth outlook to 6.2% from the 6.4% it penciled in an April report.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the fresh round of RRR cuts will boost liquidity and support the market.

“The surprise cut in RRR by one percentage point effective December 2019 could support sentiment on the local financial markets. However, more pesos infused into the financial system could also lead to more supply of pesos, some of which could find their way into the forex market,” Mr. Ricafort said in a text message.

He said the December 100-bp RRR reduction is expected to release about P110 billion in liquidity to the financial system. — Luz Wendy T. Noble

PHL firms most optimistic in the world

BUSINESS LEADERS in the Philippines are the world’s most optimistic about the economy’s overall outlook, according to a quarterly survey conducted by Grant Thornton International among 5,000 respondents in 35 economies in May-June this year.

The rosy view of Philippine companies is in contrast to the global outlook where optimism, revenue expectations and profitability forecasts are generally down.

The consultancy firm’s International Business Report (IBR) showed overall global optimism (total optimistic less total pessimistic) dropped to 32% in the first half of 2019, compared with data in the second half of 2018. Most of the main measures of growth were down at levels not seen since 2016, Grant Thornton said.

“It’s important to heed the signs of volatility and uncertainty in global financial markets, but it’s also worth highlighting that local business leaders choose not to be paralyzed or get sidetracked by the grim possibilities. It’s likely because with strong economic fundamentals still in place, their business is poised to grow and more opportunities will surface,” said Maria Victoria C. Españo, chairperson and chief executive officer of top auditing firm P&A Grant Thornton, in a statement.

However, the IBR showed less developed economies such as the Philippines have rosier prospects.

Philippine business leaders’ overall optimism level stood at 73%, the highest among the economies surveyed. This was followed by Vietnam (72%), Indonesia (66%), India (64%), Ireland (63%), Botswana (60%), Netherlands (55%), Nigeria (52%), United States (52%) and China (45%).

“Philippine businesses are more upbeat than anywhere else in the region, with 73% optimistic about the domestic economy,” the report said, adding that expectations for revenue and profit growth in the Association of Southeast Asian Nations (ASEAN) mid-market have also risen and became among the highest seen globally.

The survey covered 4,928 respondents globally, including 105 respondents in the Philippines. Survey respondents worldwide are chief executive officers, managing directors, chairmen or other senior executives from across industries.

Ms. Españo said the bigger capital spending, especially by the government, and the steady flow of remittances from overseas Filipino workers (OFWs) have also continued to boost overall economic growth and optimism.

Globally, optimism continues to fall and uncertainty lingers in the mid-market, the report said. For the next 12 months, the outlook has fallen to a three-year low, with a net optimism of 32%, down from a net 39% in the second half of 2018.

“Economic uncertainty remains elevated, with 46% of firms identifying this as a constraint to business growth,” it said.

Expectations around revenues, profitability, and employment have fallen to 2016 levels. Fewer companies expect to increase prices over the next 12 months, compared with previous periods. The report said the findings are consistent with wider risks of weak inflation as global growth eases.

Of the firms surveyed, a quarter identified trade tariffs as among the most significant external barriers to international expansion even as export optimism is maintained despite a slower trade growth.

“Investment intentions are down, with firms generally scaling back investment in new buildings, plant, and machinery likely in response to rising concerns over a shortage in orders as well as the increased uncertainty. Investment in research and development as well as technology, though, continues to shine. With demand softening, firms appear to channel investments into quality enhancements,” the report said.

Ms. Españo said there is more than enough room to manage uncertainty and seize opportunities, one of which is the use of technology to remain competitive and plan for long-term success.

“Future growth is also on the horizon, but only if businesses attract and retain skills relevant for that future,” she said. — V.V. Saulon

Metro Manila cities top LGU competitiveness ranking

By Jenina P. Ibañez

QUEZON CITY dominated the annual list measuring the competitiveness of local government units (LGU) in the country for the fourth time, elevating the city to the Hall of Fame of the Cities and Municipalities Competitiveness Index (CMCI) 2019 released on Thursday.

This year’s index was released during the 7th Regional Competitiveness Summit held at the Philippine International Convention Center in Pasay City.

The rankings often reflect regions’ contributions to gross domestic product (GDP). The Philippine Statistics Authority reported that Metro Manila contributed the largest share to the country’s GDP at 36% in 2018. This was followed by Cavite-Laguna-Batangas-Rizal-Quezon (Calabarzon) at 17% and Central Luzon at 9.8%.

CITIES
The city list showed Metro Manila localities account for six of the top ten most competitive cities, including Quezon City (first place), Manila (second), Pasay (fourth), Makati (fifth), Pasig (sixth), and Muntinlupa (eighth). As for cities outside the capital, Davao came in third place, followed by Cagayan de Oro (seventh), Iloilo (ninth), and Bacolod (tenth).

In terms of “economic dynamism” which measures the economic activity and productivity of an LGU, the top ten consisted of, in descending order: Pasay, Davao, Quezon City, Manila, Makati, Pasig, Baguio, Parañaque, Bacolod, and Cagayan de Oro.

In terms of “government efficiency” — which refers to quality and reliability of government services and government support for sustainable productive expansion — Quezon City, Manila, and Davao got the top three spots. These were followed by Pasig, Iloilo, Cagayan de Oro, Muntinlupa, Taguig, Makati, and Bacolod.

Quezon City topped the “infrastructure” list, followed by Manila, Davao, Pasay, Makati, Cebu, Muntinlupa, Pasig, Parañaque, and Cagayan de Oro.

Cities that topped the “resilience” category, which refers to capacity to sustain competitiveness, were Iloilo, Cagayan de Oro, and Davao. These cities were followed by Quezon City, Manila, Makati, Navotas, Muntinlupa, Pasay, and Pasig.

MUNICIPALITIES
The most competitive municipalities are based in Rizal province. Topping the list is Cainta (Rizal), followed by Taytay (Rizal), Baliwag (Bulacan), Santa Maria (Bulacan), Binangonan (Rizal), San Mateo (Rizal), Rodriguez (Rizal), Silang (Cavite), Carmona (Cavite), and Angono (Rizal).

The most competitive provinces were from the Calabarzon region, with Rizal dominating the list for the fourth time. Laguna and Cavite came in second and third place.

The three most improved local government units were:

• Among highly urbanized cities, Valenzuela and Malabon shared the top spot, followed by Angeles (Pampanga) in second and Parañaque and Caloocan sharing third place.

• Among component cities, Meycauayan (Bulacan) topped the list, followed by Tangub (Misamis Occidental) and Toledo (Cebu) in second place. San Jose del Monte (Bulacan) came in third).

• Among first to second class municipalities, Plaridel (Bulacan), Pandi (Bulacan), and Santa Rosa (Nueva Ecija) topped the list, in descending order.

• Among third to sixth class municipalities, Poro (Cebu) was in the top spot, followed by Penaranda (Nueva Ecija) and Tabina (Zamboanga del Sur).

OPPORTUNITIES
In his speech during the event, DTI Secretary Ramon M. Lopez said the ranking is an opportunity for policy makers and public officials to see where they are and compare it to their past performance.

“As such, the program serves as a driving force to do better, to be more innovative, and to utilize and manage resources more effectively,” he said.

He said each city and municipality has its own way to become competitive.

“We can do this by focusing on addressing critical challenges and working together through coordination within government and collaboration with our stakeholders from the private sector.”

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