Follow us on Spotify BusinessWorld B-Side

Small and medium enterprises (SMEs) face cyberattack risks due to their less advanced technologies, making them susceptible to breaches.

Many of these businesses are not aware that cyberattacks could have severe consequences, according to a cybersecurity expert.

In this B-Side episode, Daniel Bernard, chief business officer of cybersecurity technology company Crowdstrike, discusses with BusinessWorld reporter Jomel R. Paguian the looming threat of cyberattacks against SMEs and explores strategies to combat them.

TAKEAWAYS
In today’s digital economy, all businesses, regardless of size, are essentially “technology businesses,” said Mr. Bernard. This universal connection to technology exposes them to potential data breaches and cyberattacks, posing risks to both business reputation and consumer data security.

He pointed out the incentives for hackers to target SMEs in the Philippines — money and data.

He said that aside from ransom money, data that can be obtained from hacking is the primary objective of cybercrime. “Payment is one part of it, but it’s really the power of the data exfiltration and what you can do along the whole supply chain of that small and medium business.” 

According to Mr. Bernard, the aftermath of a data breach goes beyond monetary losses. Personal identifiable information of consumers obtained in such incidents can severely damage a company’s reputation, making data security a societal concern. “Because reputationally, the damage is too high, as well as the sensitivity of the data.”

Data breaches can also halt the operations of some businesses, he said, citing small and medium businesses in the manufacturing or services markets. “If they lost all their customer information, it’s kind of like day one all over again in the business.”

“It very well can be a company-ending event. If you don’t have cyber insurance, or you don’t have the ability to remediate an attack.”

Mr. Bernard noted that three out of four small and medium businesses are likely to experience a cyber incident. He attributed this vulnerability to a lack of security features in many of these businesses.

“In the small and medium business segment, you’ll find a good amount of businesses that don’t even have any cybersecurity at all. So those are the ones that are the easiest for adversaries to play with and to gain access to.”

He explained that hackers now use more advanced mechanisms such as employing artificial intelligence (AI), creating a significant gap in defense capabilities compared to traditional security measures like signature antivirus. “It’s a new area that we’re calling in our research ‘dark AI,’ where the adversary is using AI, but the defender is still using some kind of signature antivirus and just can’t keep up.”

“So this is a great example of where you need a better defense than the offense to actually stay protected.”

Follow us on Spotify BusinessWorld B-Side

The constant pursuit of innovation is a testament to human’s inherent curiosity and creativity. With the advancement of technology, people are constantly seeking innovative solutions to enhance their efficiency and productivity. In this regard, generative artificial intelligence (AI) is one of the most promising technologies, which complements human capabilities, augments creativity, and drives progress in various fields.

In this B-Side episode, David Hardoon, chief data and AI officer at Union Bank of the Philippines and chief executive officer of Aboitiz Data Innovation, discusses with BusinessWorld Multimedia Editor Arjay L. Balinbin the capabilities of Generative AI.

Read the full story by Mhicole A. Moral:
https://www.bworldonline.com/special-features/2023/12/06/562187/augmenting-human-capabilities-and-creativity-with-generative-artificial-intelligence/

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

Breaking down the stigma surrounding discussions about mental health challenges is crucial, especially in workplaces where employees might be hesitant to share their struggles, fearing judgment regarding their professional capabilities, a mental health expert said.

In this B-Side episode, Gia Sison, national adviser of the Youth for Mental Health Coalition, discusses with BusinessWorld reporter Jomel R. Paguian the potential benefits of addressing mental health in the workplace for both employers and employees.

TAKEAWAYS
Employees often choose not to disclose their mental health conditions due to the fear of stigma, leading to workers “suffering in silence” to secure their jobs, according to Ms. Sison.

“When you disclose that you are suffering from bipolar or depression, your supervisor might think that you are not fit to work… and so your job suffers.”

Acknowledging the prevailing stigma, she highlighted the necessity of mental health awareness within the workplace. Employers need a reminder that individuals experiencing mental health conditions can still contribute productively in the workplace.

Ms. Sison pointed out that the stress induced by inadequate employment compensation in the country exacerbates the daily challenges faced by employees, citing that receiving a salary not enough to cover one’s needs triggers a series of anxieties.

“When you receive it (your salary) it’s enough to just pay the bill and nothing extra. So it dominoes into how you start to overthink, how you get anxious on getting your day by, how you get anxious having saving enough for you and your family,” she explained.

Ms. Sison said the stress associated with having insufficient salary contributed to the massive resignation trend in the country, where some even opt to migrate abroad to look for better working conditions to protect their well-being.

She pointed out that to address concerns related to inadequate wages that may lead to anxiety, normalizing discussions on both salary pay and mental health is crucial in the workplace. 

“Mental health will always be part of the conversation; let’s not be scared to talk about it. We have to normalize conversations pertaining to mental health just like we normalize conversations about salary pay,” she said.

In her message to employees facing mental health challenges, Ms. Sison underscored the significance of cultivating a support group both within and outside the workplace. She said a support group does not have to be huge, as long as you feel comfortable sharing your concerns with them. 

She said employees should not wait for red flags, such as isolating themselves to a point that it obstructs their quality of life, before opening up to their peers. “Let’s not wait for the red flag to happen, in fact before it happens you speak to a close friend or a counselor if available.”

To encourage employees to communicate their mental health needs, workplaces should be “psychologically safe,” she said. “It has to start with everyone, from the management to the employee, and having a mental health workplace policy in place.”

Ms. Sison also suggested employers organize engagement activities to foster an environment where workers will feel that they are recognized and that their hard work is validated.

Home gardening has benefits beyond the purpose of serving as a diversion from the pandemic. In this B-Side episode, multimedia producer Patricia Mirasol speaks with Ma. Elena P. van Tooren, executive director of East-West Seed Foundation, about home gardening, the types of vegetables to grow in tropical countries, and tips for budding urban gardeners.

East-West Seed Foundation is the corporate social responsibility arm of East-West Seed Philippines, which breeds tropical vegetable seed varieties.

Takeaways

Food security is one of the benefits of growing one’s own vegetables.

Availability, accessibility, and affordability are some of the benefits of growing your own vegetables, said Ms. van Tooren.

Around 10%, or an estimated 2.6 million Filipino families, experienced involuntary hunger in the past three months “before the survey period,” according to a Sept. 30 to Oct. 4 survey by OCTA.

“If grown naturally, you’re also assuring your family of quality, healthy food,” Ms. van Tooren said. “Gardening is [likewise] a healthy exercise – both physically and mentally.”

“So many plantitos [plant dads] and plantitas [plantitas] started during the pandemic, and I believe that once you get started, you will continue…because you will have enjoyed it so much,” she added.

The non-negotiables for growing vegetables are sun, soil, and water.

The three non-negotiables for vegetable growing are sun, soil, and water.

For sunlight, it’s at least four hours’ exposure for leafy vegetables and 6-8 hours for fruiting ones, Ms. van Tooren said. Don’t water later than 4 p.m., she also told BusinessWorld.

“If you water later than 4 p.m., the soil will be very moist overnight, and that will encourage diseases – especially fungus,” she said.

The soil quality in the Philippines, meanwhile, is “mostly clay.”

“Soil has to be loose but firm, so it’s best if you add amendments to it to loosen it up,” Ms. van Tooren said, noting popular amendments such as river sand and compost (or decayed organic material used as plant fertilizer).

There are workarounds for urban gardeners with small spaces.

Vegetables can be grown in small containers, Ms. van Tooren said, although “fruiting vegetables need larger containers – around five gallons, like ones used in water dispensers.”

Container gardening, like balcony gardening, is a form of urban agriculture, which refers to the “growing, processing and distribution of food crops and animal products, by and for the local community, within an urban environment.”

Ms. van Tooren, who resides in a condominium, said that she has been able to successfully plant arugula from her unit’s balcony.

“Herbs are very good if you live in a condominium and have a window that gets sunlight,” she added, “because herbs need less sunlight.”

Figure out a garden tending routine that works for you.

Parents with growing children may opt to nurture green leafy vegetables such as pechay (Chinese cabbage) and kangkong (water spinach).

“These are very nutritious vis-a-vis the space they need,” according to Ms. Van Tooren. “I would go for what the children like to eat,” she said, as she also noted the benefit of having children observe how vegetables grow.

The National Nutrition Council moreover suggests vegetables such as sitaw (string beans), malunggay (moringa), and tomatoes as sustainable produce for backyard gardens.

“I really want to encourage everyone to plant even one pot,” Ms. Van Tooren said. The Internet, including East-West Foundation’s social media pages, is rife with helpful information, she added.

Caring for a small garden plot is doable, Ms. van Tooren told BusinessWorld.

“You can do the watering in the morning before you start work…the extra care can be done on weekends. You have to find what’s workable for you.”

Follow us on Spotify BusinessWorld B-Side

Elections in the Philippines have evolved into brutal political competitions over the years, with the persistent claims of general peace and safety often overshadowing the reality of election-related incidents (ERIs).

In this B-side episode, Rona Ann V. Caritos, executive director for the Legal Network of Truthful Elections (LENTE), discusses with BusinessWorld reporter Miguel Hanz L. Antivola the prevailing history and implications of election-related violence for Philippine democracy.

Among incumbents and candidates, there have been 1,497 killed, 312 wounded, and 147 escaped attempts from Jan. 2006 to August this year, according to Peter Kreuzer, senior researcher at the Peace Research Institute Frankfurt.

According to LENTE, the recent Barangay and Sangguniang Kabataan election (BSKE) had 47 confirmed ERIs as of Nov. 10, with more than 100 suspected cases.

Ms. Caritos noted shooting, physical injury, and intimidation as the leading causes of ERIs.

The most number of ERIs were found in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), Northern Mindanao, and Cordillera Administrative Region, she added.

“This is the most violent [election] because the number [of ERIs] has increased since 2013 and 2018,” Ms. Caritos said.

She noted the general public’s increased investment in the election due to the pandemic as a theory for the increase.

“People know how valuable barangay and SK officials are when it comes to frontline government services and programs.”

Ms. Caritos mentioned the color-coding scheme of the Commission on Elections (Comelec), where it employs a green-yellow-red assessment for areas in terms of needed security and control, as an area that could be improved upon to curb the growth in ERIs.

“In areas such as BARMM, the Comelec should adopt a different color-coding scheme, or should take into account the environment or the context of what is happening in the region,” she said.

“Given the many changes there — in terms of the territory of the political families and parties competing in the region,” she added.

KEY PROBLEMS

Ms. Caritos pointed out that electoral competitiveness and a lack of accountability are major problems contributing to the uptick in ERIs.

“The number of unopposed positions, especially in the local races, has increased,” she noted. “[This] means that the powers are being consolidated in one individual or family.”

“Given this monopoly of power, there is a tendency of families and individuals to cling onto this power whatever it takes. They are resorting to violence to be able to contain the status quo,” she added.

“The number of unopposed positions, especially in the local races, has increased,” she said. “[This] means that the powers are being consolidated in one individual or family.”

“Given this monopoly of power, there is a tendency of families and individuals to cling onto this power whatever it takes. They are resorting to violence to be able to contain the status quo,” she added.

“People are not afraid to commit these incidents because they know that even if they’re charged for it, they won’t get imprisoned for it.”

However, Ms. Caritos said the Comelec has recently undergone its “best innovation,” wherein it became more aggressive and focused on reported cases.

“We’ve seen this aggressive stance of the Comelec in going after premature campaigners…, vote buyers and vote sellers,” she said.

“This is the first time in LENTE that we’ve experienced candidates and political parties calling our hotlines and asking about the processes because they’re afraid to commit violations and have cases be filed against them.”

Ms. Caritos noted the role of local communities and civil society organizations in helping the Comelec ensure the integrity and safety of elections.

“It needs the help of organizations to go after and educate people against election offenses, and teach them how to go after law violators, or how to document offenses, if ever they witness one or be a victim of it,” she said.

Following the Comelec’s commitment to continuing the investigation and prosecution beyond the election period, LENTE maintains a positive outlook for the next elections, monitoring what the Comelec will do in response to the rise in ERIs and other malicious activities, she added.

Recorded remotely on Nov. 10, 2023.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

Fake and low-quality medicines have become more common and are being sold at lower prices through online platforms.

In this B-Side episode, Monash University professor Michelle McIntosh discusses the effects of subpar medication on the overall health of people with BusinessWorld reporter Adrian H. Halili. 

“Understanding the quality of medicines is important, and in many cases around the world, the pharmaceutical products can be counterfeit or substandard products that are available,” Ms. McIntosh said. 

She said that medications like these may not be very effective and could be harmful to one’s health. “There can be consequences when people use substandard materials.” 

“There is definitely a high prevalence of substandard medication in third-world or low-resource settings,” she added. “It’s not only in those environments; it is something that people around the world are aware of.” 

Ms. McIntosh said that there is also a risk in purchasing medications through online platforms. “If you purchase medicine through the internet, you don’t actually know what quality it is when it arrives at your house,” she added. 

Counterfeit and substandard medication, such as anti-malaria and maternal healthcare drugs, are also observed being sold in third-world countries, according to Ms. McIntosh.

She said that due to high populations and less regulatory monitoring, the likelihood of these products being sold in the market is higher.

“Whether the regulatory agency can conduct routine testing to check the quality of products that come in… may be more challenging. People see an opportunity to make money by providing a counterfeit or substandard product,” she added.

Ms. McIntosh said that there is a need to identify poor-quality medicines in collaboration with experts and government organizations.

“At Monash University, we’ve recently established a quality of medicines initiative where we are working to apply our expertise in understanding pharmaceutical products, how they work, and how sometimes they may not work as they are supposed to,” she said. 

The quality cannot be determined easily by looking at it alone. She also said that using them might result in health problems or side effects. 

“That can create problems for the individual who is taking them, and also it can lead to anti-microbial resistance, in the case of antibiotics.”

Ms. McIntosh said that the university’s program aims to work with governments in developing and strengthening their pharmaceutical sectors.

Follow us on Spotify BusinessWorld B-Side

As household savings were depleted during the pandemic, more Filipinos relied on credit to manage their daily expenses.

Now, with the rising cost of living due to inflation and higher interest rates for borrowing money, consumers are struggling to repay their debts.

This reality is reflected in Collectius’ own internal data, which shows a slowdown in debt repayment rates in the first half of this year compared to 2022, Marie Alexise Charisse Arboleda, head of operations at Collectius, tells BusinessWorld reporter Keisha B. Ta-asan.

Credit card usage is also expected to increase this quarter amid the holiday season.

“During this time, many Filipinos tend to prioritize holiday spending, which includes holiday gifting, over debt repayment,” she said.

“Given the anticipation for high inflation, it is likely that consumers will spend more and we can expect to see a decrease in debt repayment levels across all consumer loans.”

Based on the latest data from the central bank, consumer credit jumped by 22.7% to P1.17 trillion from P950.8 billion a year ago, slightly faster than the 22.6% in July. Credit card loans expanded by 29.7% year on year in August.

“A slowdown in debt repayment rates does pose challenges, but may not necessarily lead to financial crisis in financial stability, especially if it is sufficiently addressed by regulatory measures,” Ms. Arboleda said.

She noted that slower debt repayments can hurt the banks and it may be harder for financial institutions to be able to lend money and provide financial services.

“But banks and other financial institutions are well capitalized in the Philippines and they generally have risk mitigation strategies in place,” she said.

“The (government) might take steps to reduce risks and support the financial system, especially during tough times, and we saw that also during the pandemic,” she added.

Separate central bank data showed lenders’ nonperforming loan (NPL) ratio improved to a four-month low of 3.42% in August from 3.43% in July.

Bad loans declined by 5.9% year on year to P442.9 billion as of end-August. However, this was 0.6% higher than P440.1 billion seen at end-July.

Collectius, a financial technology company, is one of the five Financial Institutions Strategic Transfer Corporations in the Philippines licensed to acquire nonperforming loans or assets accumulated by banks during the coronavirus pandemic.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

Manila Bay has been exposed to rapid urbanization over the years and is now in need of rehabilitation.

In this B-Side episode, Jerwin Baure, a marine science researcher, discusses with BusinessWorld reporter Sheldeen Talavera how Manila Bay has changed over the years and how it can be restored. 

“I think people do not realize that Manila Bay is actually a big body of water. It’s not just the sea that’s located along the Roxas Boulevard. But actually, Manila Bay is a big body of water off the coast of Bataan,” Mr. Baure said.

“There are still a lot of marine organisms found there like crabs, fish, and other kinds of marine ecosystems that can be found in the country,” he said. 

The Supreme Court issued a ruling on Manila Bay in 2018, directing 13 government agencies to clean up, rehabilitate, and preserve it, as well as restore and maintain its waters to a level suitable for swimming, skin diving, and other recreational activities. 

According to Mr. Baure, one way of doing this is by planting mangroves. 

Historically, there were around 500,000 hectares of mangroves all over the country, but they have been declining since the 1900s, primarily due to conversion into fishponds, he said. 

“Mangroves were historically found all over Manila Bay, and these trees can serve as nursery grounds for fish. They provide habitats for many species and they can also provide natural protection against storm surges,” Mr. Baure said. 

“They can also improve the water quality because mangroves can filter out pollution coming from the land and, also, they serve as habitat for migratory birds,” he added. 

In August, President Ferdinand R. Marcos, Jr., issued a verbal order for the suspension of 22 reclamation projects in Manila Bay, pending a review of their environmental and social impacts. 

The Department of Environment and Natural Resources is working on a cumulative impact assessment with a team of scientists consisting of physical and chemical oceanographers, fishery specialists, marine biologists, and engineers. 

“When we discuss the benefits…, we also need to ask who benefits from these projects. Will it be the private investors? Or will it really [truly care about] marginalized people, since if reclamation projects continue, fishermen will lose their livelihood,” Mr. Baure said.

Follow us on Spotify BusinessWorld B-Side

The Philippine education sector must maintain the strides it has made in technology adoption to upgrade teaching methods and prepare students for future jobs that require a deep understanding of technology, an expert said.

Modern digital education platforms offer educators data that can help address students’ needs.

In this B-Side episode, Ryan Lufkin, vice president of Global Strategy at Instructure, a New York-listed education technology innovator, discusses with BusinessWorld reporter John Victor D. Ordoñez how modern technology can be used to ensure that Philippine education remains relevant.

TAKEAWAYS

As we transition out of the coronavirus pandemic, teachers worldwide are leveraging digital classrooms and blended learning platforms, Mr. Lufkin noted. They collect data from online assessments to make “data-informed decisions” and craft curricula based on student performance, he said.

“Data assists us on many levels. At an organizational level, data across the learning experience helps educators understand the effectiveness and efficacy of their learning tools.”

“In classroom settings, data can identify at-risk students or those struggling with learning early enough in the process, allowing for timely support,” he added.

He also emphasized the importance of teachers using data from these platforms to refine course offerings and assist students in setting and achieving academic goals.

“The more data we possess, the easier it becomes to provide a comprehensive view of not just student success but also program and overall institutional success,” he said.

A big population of students globally has experienced learning loss due to pandemic-related disruptions.

“Using data gathered from these platforms, we can pinpoint where students stand in comparison to established standards and devise pathways to bridge those gaps,” Mr. Lufkin said.

“We should reconsider traditional assignments like ‘write a 10-page paper’ as the primary measure of skill mastery. It’s time to reevaluate this approach,” he added.

“Initially, artificial intelligence (AI) was perceived as a cheating tool, leading many schools to ban it,” he noted. “However, just ten months after the launch of ChatGPT, the narrative has shifted towards how AI can enhance students’ learning experiences.”

Mr. Lufkin also said AI can alleviate some burdens for teachers by eliminating many mundane tasks. “I urge educators globally to recognize the positive potential of AI in fostering student success.”

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

Divorce is quite a taboo topic in the predominantly Catholic Philippines. Lobbying for divorce has mapped its way into Filipinos’ understanding of the State, religion, family, abuse, principle, and love.

In this B-side episode, Athena Charanne R. Presto, a sociologist and policy consultant for the United Nations Development Programme, discusses with BusinessWorld reporter Miguel Hanz L. Antivola the challenges and sociocultural implications of enacting divorce in the Philippines.

A Senate committee approved in September Senate Bill No. 2443, a consolidated measure on absolute divorce — the farthest legislative push it has reached to date.

Ms. Presto observed that the latest version of the divorce bill has reached a commendable level of inclusivity and safety, almost identical to the grounds for annulment.

“You have to have been separated for a number of years, have irreconcilable differences, or have a proven case of domestic violence or abuse,” Ms. Presto said, listing the grounds for absolute divorce in SB 2443.

“But I think we can still push our definition of divorce beyond that,” she added.

“I think divorce should include the fact that you, as adult individuals, decide to call it quits already without the need for ‘acceptable reasons’… perhaps you just fell out of love or have differences.”

The Philippines remains one of only two countries in the world, alongside Vatican City, without a divorce law.

Amid decades of lobbying, one major challenge remains: “The loudest critics of divorce are not religious actors themselves but policymakers who conveniently invoke religious doctrine to serve their own political interests,” Ms. Presto said.

She noted that comparing the successes and failures of other countries’ marriage customs can be misguided. “That should not be the be-all and end-all of implementing divorce in the Philippines.”

“Having divorce is better than not having divorce,” she said. “We need to argue more based on Philippine data.”

“A divorce law must address misconceptions about the law itself,” she added, referring to dismantling misinformed associations such as people using it as an ‘emergency exit’ or ‘harming Filipino family values.’

Ms. Presto said that Filipino norms and values are bound to change over time with society, given the increasing number of transnational families, same-sex couples who adopt children, and single parenthood, even as depicted in national media.

“Whether you like it or not, the composition of the Filipino family is changing,” she said. “Our marriage norms will change, but not for the worse.”

Passing divorce will challenge the Filipino toxic mentality of ‘relentless suffering’ in marriage, alongside empowering wives and husbands to continue their lives through a viable option, Ms. Presto noted.

Along with norms, social institutions are also seeing changes, such as the Catholic Church ‘relieving pressure’ and opening up to more nuanced realities, and media representation straying away from damaging stereotypes, she added.

However, Ms. Presto noted an increasing number of politicians who believe that men and women are equally oppressed, which undermines the rightfully women-centric arguments for divorce.

The 2017 National Demographic and Health Survey conducted by the national statistics agency reported that one in four Filipino women aged 15-49 had experienced physical, emotional, or sexual violence by their husband or partner.

“You need to expose the misinformed opinions of all these senators, but you also need their support,” Ms. Presto said, addressing the ‘checkmated’ advocates and stalled progress of divorce in the country.

Recorded remotely on Oct. 9, 2023.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

Loan sharks, or informal lenders, exploit small businesses with exorbitant interest rates.

In this B-Side episode, Baasandorj Davaasuren, chief business development officer of fintech solution company AND Global, discusses with BusinessWorld reporter Aaron Michael C. Sy some learnings from Mongolia’s experience with loan sharks, aiming to guide micro, small, and medium enterprises (MSMEs) in the Philippines. AND Systems, the R&D subsidiary of AND Global, is based in Ulaanbaatar, Mongolia.

The archipelagic nature of the Philippines makes it difficult to track and regulate loan sharks, especially in rural and underdeveloped areas, Mr. Davaasuren noted.

He said that the situation regarding loan sharks in the Philippines is currently more severe than in Mongolia, but there is hope to address it.

Low financial literacy makes individuals and businesses more vulnerable to loan sharks.

Many do not fully understand the financial products offered and may mistakenly view high interest rates as acceptable, Mr. Davaasuren noted.

“They think a 5% [interest rate] per week or per month is okay.”

Potential solutions, he said, include tailored interest rates where private institutions can offer MSME-specific loans at lower interest rates than general retail loans; involvement of major stakeholders, which means encouraging bigger financial institutions to engage in MSME lending to diversify financing options for small businesses; improved credit data access to facilitate better decision-making by banks during loan approvals; and offering uncollateralized loans.

In order to properly lend to small businesses, there is a need to deeply understand the MSME market in the Philippines as the country’s economic growth significantly relies on this sector, he also said.

“In terms of the real economic drive and financial impact on the country itself, it really comes down to small and medium enterprises… These businesses are the key driving indicators in terms of sustainable growth in the country’s economy.”

Follow us on Spotify BusinessWorld B-Side

For the longest time, the Philippines has maintained a modest relationship with its Southeast Asian neighbors. Recurring tensions in the South China Sea have left the ten-member Association of Southeast Asian Nations (ASEAN) seeking clarity on how to navigate potential conflicts with China, even with the involvement of the United States.

In this B-Side episode, Herman Joseph S. Kraft, a political science professor at the University of the Philippines, discusses with BusinessWorld reporter Beatriz Marie D. Cruz the ways in which ASEAN can leverage its already strong ties to protect peace within its waters.

“Relations within the region are increasingly dominated by the rivalry between China and the US, and even if we keep emphasizing the idea of ASEAN centrality, it’s becoming more and more difficult to assert that,” he said in an interview.

The goal is to ease constraints felt by ASEAN within the ongoing rivalry between China and the US, Mr. Kraft noted.

“Ideally, ASEAN is going to be able to work in a way where it doesn’t have to actually play or at least play a role within the competition between China and the United States,” he said.

However, this is easier said than done, with ASEAN countries having their own national interests to consider.

The Philippines, Brunei, Malaysia, and Vietnam, for instance, each have territorial interests in the South China Sea, with China claiming more than 80% of the waters.

“It’s much more difficult for ASEAN to actually come up with a common appreciation of its strategic environment. Some of the members of ASEAN are actually closer to China, for instance, and some are actually closer to the US,” Mr. Kraft said.

As a long-standing treaty ally, the Philippines has allowed the US more access to military bases under the 2014 Enhanced Defense Cooperation Agreement. However, this has caused China to accuse the US of aggravating tensions in the Asia-Pacific due to its continued military expansion.

“There’s a tendency to see that or at least to look at the Philippines as going too close to the United States at the expense of our relationship with China, so our situation is seemingly a zero-sum game,” Mr. Kraft said.

He said that the Philippines should strengthen its diplomatic prowess to be recognized for its role in maintaining peaceful navigation in the disputed waters, especially within ASEAN, where the former is not seen as an “agent” of the US.

Members of ASEAN have been vocal about the need to ensure peace and stability in the region. Even Philippine President Ferdinand R. Marcos, Jr. said, without naming China, that ASEAN “must never allow the international peaceful order to be subjected to the forces of might.”

“We cannot emphasize enough that actions, not words, should be the ultimate measure of our commitment to securing peace and stability in the South China Sea,” Mr. Marcos Jr. said during the 43rd ASEAN Summit in Jakarta, Indonesia earlier this month.

Also present during the summit, Chinese Premier Li Qiang warned of a “new Cold War,” and called on affected states to “appropriately handle differences and disputes.”

“China has not necessarily been forthright about how it wants to deal with us,” Mr. Kraft said.

A security hotline between the Philippine and Chinese coast guards has been inactive since January of this year.

China and ASEAN also have yet to agree on a code of conduct in the South China Sea.

Mr. Marcos Jr. reported progress on the code of conduct at the ASEAN summit, with “milestone issues and a preliminary review of the Single Draft Negotiating Text…achieved in Manila.”

Foreign Affairs Spokesperson Teresita C. Daza recently said that the Philippines has submitted 43 diplomatic complaints against China this year. These protests are in response to China obstructing the Coast Guard’s resupply missions at the Second Thomas Shoal, also known as Ayungin, where the old World War II ship BRP Sierra Madre is stationed to assert the Philippines’ ownership in the area.

Given the region’s proximity to the South China Sea, ASEAN members should agree to a consensus on how the strategic environment should work, according to Mr. Kraft.

He cited how ASEAN made a strong stance against Vietnam’s invasion of Cambodia in the late 1970s and 1980s.

“It’s a very good example of how small countries, but acting collectively…[and] being able to sway public opinion on an issue that is central to their own regional concerns,” Mr. Kraft said.

He noted that stronger ASEAN ties would not likely be a threat to China and would similarly draw in conflict. “ASEAN has always been what some authors have said a political diplomatic community.” “Any increase in the [ASEAN’s] capability is going to be largely political-diplomatic, not hard security or military,” Mr. Kraft said.

When asked about China’s relationship with ASEAN, Mr. Kraft said: “Historically, it’s always been good.”

AFP MODERNIZATION

Alongside leveraging its diplomatic capabilities, Mr. Kraft also urged the Philippine government to be consistent with its modernization plan. He pointed out the country’s tendency to recognize the importance of enhancing its military capability when issues arise.

“Do we have to wait for a crisis to take the modernization of our instruments for asserting our sovereignty seriously?” Mr. Kraft said.

“All that China has to do is wait for us to lose interest.”

Follow us on Spotify BusinessWorld B-Side

Industrial engineering, or IE, is an often-overlooked field of engineering that deals with cutting costs, increasing savings, and making improvements to systems. In the Philippines, industrial engineers have been responsible for many such improvements, like streamlining product lines to make them more efficient and adjusting vaccination queues to accommodate more people.

In this B-Side episode, Philippine Institute of Industrial Engineers (PIIE) Founder Rodel “Audi” E.C. Adiviso and current president Jerry A. Lim talk to BusinessWorld reporter Bronte H. Lacsamana about how IE can fix modern-day systems and develop in the age of digital transformation.

IE goes hand in hand with technological advancement because it blends management expertise with engineering principles, said Mr. Adiviso.

“If you magnify it and apply it to factories, to companies, then you see the relevance of getting products on a timely manner, getting services in a more efficient way, and with a lot of savings in terms of cost implications,” he said.

For Mr. Lim, the crux of the IE principle is simple — it’s a “study of systems, where you just keep on trying to improve something” — and that includes making do with the technology we have today.

The IE mindset has already been applied to local systems.

The coronavirus pandemic actually illustrated the brilliance and importance of IE in emergency or safety situations that require putting things in order, according to Mr. Adiviso.

He said that clients like Unilab reached out to ask how to solve overcrowding in vaccination centers, which they began looking into by going to one such center in Quezon City.

“There, we noticed that a lot of people can get their injection in 12 seconds, but the bottleneck was actually in filling up forms, in queuing upfront,” he said. “If you balance the line, it should happen, that smoother flow.”

The person who thought of the rapid pass used to enter malls and establishments was also an IE. “They did spot checks at first, which caused long lines. It took an IE to come up with a rapid pass using a QR code,” Mr. Lim said.

The term they use for that thinking is “kaizen,” a Japanese word which means “continuous improvement.” That is how IEs develop a better way of doing things, he added.

IE professionals can be certified.

Mr. Adiviso pointed out that, though it is an underrated field in engineering that does not have a government-mandated board exam, IE has had a certification exam in the Philippines since 2010, established by PIIE.

It started off with only 60 takers and gradually reached 1,000 every year, right before the pandemic hit. Since then, it is inching up from a hundred in 2020 to around 300 exam takers this year.

“IEs are now valued here, and big companies are stipulating that they wish to hire certified industrial engineers or professional industrial engineers,” he said.

PIIE itself, which he started in 1998, aims to further the relevance of the IE mindset. Though the certification program has helped with this goal, emerging technologies are rapidly shifting the skillset that an IE needs.

People who are trained to analyze data and to find solutions with the data given to them are becoming very, very relevant, and IE is the field of engineering that trains the most in that skillset, said Mr. Lim.

“The bottom line is that the IEs come up with the system, the flow of information, and then the computer science people are the ones who will translate it into formulas or numbers for people to use,” he explained.

AI, machine learning will be integrated into many systems.

Traffic is an example of a bottleneck situation that can utilize operations research to build an algorithm that solves the problem, Mr. Adiviso said.

“You can find the right combination of what factors need to be enhanced or improved. Maybe we can balance the line by improving the infrastructure or putting the right number of traffic enforcers.”

He shared that a traffic algorithm exists in countries like Taiwan, where the flow at intersections are regulated by synchronized traffic lights that adjust to accommodate wherever high vehicle volume has accumulated.

In the Philippines, such technologies are not yet in place, although PIIE will hold a research conference in October for its 25th anniversary, where digital transformation, sustainability, and artificial intelligence have special focus.

Mr. Lim emphasized that the Filipino IE’s concern today is to make do with whatever we have on our hands now and optimize it.

“As to how we will quickly adapt or start to be at par with our wealthier neighbors in terms of the Internet of Things, in terms of having good internet, in terms of robotics or AI, that’s beyond me,” he said.

“Whatever it is that we have achieved or come to, it is IEs’ role in nation building to uphold the discipline of maximizing what we have.”

Follow us on Spotify BusinessWorld B-Side

Ghost Month, a tradition deeply rooted in Chinese culture, has fascinated financial analysts for years.

In this B-Side episode, Carlos A. Temporal, a senior equity research analyst at Unicapital Securities, Inc., discusses the impact of Ghost Month on the stock market with BusinessWorld reporter Justine Irish DP. Tabile.

This year, Ghost Month, the seventh month in the Chinese lunar calendar, runs from Aug. 16 to Sept. 14.

Ghost Month, which usually falls in the month of August, stems from an ancient Chinese belief that claims the gates of hell open, letting ghosts return to the living world.

“Given that major businesses in the Philippines and most of the index constituents of the Philippine Stock Exchange are owned by Filipino-Chinese businessmen, and considering how superstitious Filipinos are, which is also attributable to the ingrained Chinese culture in the Philippines, Ghost Month has become a widespread phenomenon believed by many local market participants,” said Mr. Temporal.

In the case of the local bourse, he said, the period that Ghost Month covers is seasonally weaker, which is why investors are driven to position themselves ahead of it.

“By positioning, they are liquidating their positions and their stocks ahead of the potential decline in August, so that is how it affects the market,” he noted.

“Given that the belief during Ghost Month is that doing big-ticket things such as investments may cause some bad luck, which could upset spirits visiting our world, this has prompted investors and market participants to delay making investments in the market,” he added.

For this year, he said that although the weeks covered by Ghost Month showed a slowdown, it is not that much different from prior months.

“I won’t really say that what happened in the market is mostly attributable to that phenomenon, but I think it did play its part because we have that low liquidity. But again, the negative macro-conditions are what really drove the sell-off,” he also said.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

Parallel, garden party, and kitchen table — these are just some of the many ways to practice ethical non-monogamy (ENM).

In this B-Side episode, Drew O’Bannon, founder of sex education platform Now Open PH, talks to BusinessWorld reporter Luisa Maria Jacinta C. Jocson about ENM in the Philippines.

“There’s really not that big of a difference between what makes a monogamous relationship ethical versus what makes a non-monogamous relationship ethical,” said O’Bannon.

“You have to communicate with everyone involved, you need to be honest, you need to be transparent, you need to have integrity. But again, these are the same things that make monogamous relationships work. It’s just that with ENM, it has to be put on the table.”

O’Bannon said there are many “unspoken rules” in monogamy. “With ENM, there’s really no rules. It’s sort of a free-for-all, that you get to decide what that looks like.”

“There’s a variety of ways to practice this, but the main point is that everyone is informed, everyone consents, and hopefully, everyone is satisfied.”

O’Bannon also highlighted the struggles that the non-monogamous community faces, especially in a predominantly Catholic country like the Philippines.

Catholic beliefs are also notably ingrained in the widely accepted standards for relationships, O’Bannon said.

“Even with people who aren’t religious, our idea of romance as a one-to-one correspondence, a marriage between a man and a woman, is very religious in nature.”

State laws and policies are also designed to cater to monogamous people. O’Bannon said that legalizing divorce will be crucial to making society more inclusive and progressive.

“The first step is we need divorce. One of the main values in non-monogamy is autonomy and choice. We don’t like trapping people in relationships. If you want to stop a relationship, you have the right to leave.”

“You can’t say that we have the choice to have the relationship we want if we only have the choice to start them but not end them.”

Marriage laws in general are also designed to favor monogamous relationships.

“Marriage gives a lot of privileges and rights to people. The right to make medical decisions, the right to inheritance. Insurance companies often won’t let you (list down) a partner unless you’re married,” O’Bannon said.

“Why are there rights for getting married? If you give special rights to a certain kind of relationship, it’s more ‘valid’ in the state’s eyes and society’s eyes because culture revolves around the policies we have. Why do we give special rights to people who are married? Why can’t we allow people to choose who gets to make their legal decisions?”

When it comes down to it, O’Bannon said that relationships, whether monogamous or not, should not be bound by a set of rules or preconceived notions.

“Whatever you identify as, you get to choose what your relationships look like. You get to decide what you do. There is a particular script that you can follow if you want, but that’s just one script of billions.”

“If there’s one thing people can learn from non-monogamy, it’s that you have the agency and the power to decide how to conduct your relationships.”

Recorded remotely on Aug. 30, 2023.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

A significant portion of what has traditionally been taught in tertiary education has lost its relevance in the present, according to Hyper Island Institute of Higher Education, a digital creative business school.

In this episode of B-Side, Peachy Pacquing, managing director at Hyper Island Singapore, speaks with BusinessWorld reporter Ashley Erika O. Jose about the need for transformative education, characterized by meta-learning, or learning how to learn.

This approach arises as a response to the changing times, in which technologies like artificial intelligence (AI) are now able to perform tasks that were previously taught in traditional educational settings, she said.

“As an example, if we spend so much money educating our children in multimedia, teaching them how to create websites and code, I am not against these hard skills, but how does that play out in a world where AI can create all of these things? Have we prepared them sufficiently for a time when the tools and frameworks that we taught them in the past no longer hold the value they used to deliver?”

“That’s why meta-learning is incredibly important to us because meta-learning is transcendent, meaning it’s not just relevant today, but it will equip you with the skills and mindset that will help you see the world as it evolves and enable you to contribute value regardless of how it evolves,” she added.

Established in Sweden two decades ago, Hyper Island has continued to expand its presence across the globe with operations in London, Manchester, Singapore, New York, São Paulo, Stockholm, and Karlskrona.

“It was born because the Swedish government realized that the way they were doing education was no longer sufficient, or relevant and therefore there was a challenge to reimagine education more than 20 years back,” Ms. Pacquing said.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

China’s increased aggression in the South China Sea has made it more challenging for the Philippines, now regarded as an Asian middle power, to ignore the situation, an analyst said.

On Aug. 5, the Chinese Coast Guard, backed by its maritime militia and People’s Liberation Army ships, fired water cannons to block a resupply mission to a Philippine military outpost on Second Thomas Shoal. The shoal is located about 200 kilometers from the Philippine island of Palawan and over 1,000 kilometers from China’s nearest major landmass, Hainan Island.

China’s move prompted a diplomatic protest from the Philippines and statements of concern from countries including the US, Japan, Australia, South Korea and members of the European Union.

But China was quick to counter international backlash, with the Chinese Coast Guard accusing the Philippines of failing to honor a supposed promise to remove its grounded warship from the Second Thomas Shoal, which the Philippines calls Ayungin.

Don McLain Gill, a geopolitical analyst and international studies lecturer at De La Salle University, said that this propaganda is just one aspect of China’s complex strategy in the South China Sea, which aims to avoid direct military conflict.

In particular, China’s narrative on the World War II-era warship named BRP Sierra Madre is a form of psychological warfare that seeks to alter the status quo without the use of overt military force, he told BusinessWorld.

“Information, or disinformation, is a vital tool in altering the narrative on the South China Sea, or the West Philippine Sea in particular,” Mr. Gill said. “If you say something that is not backed by evidence, and you say it over and over again, every single day, you are bound to have people believe in what you are saying. You are bound to have some attractiveness.” 

People who will believe in the narrative “will eventually take part in spreading the word — consciously or subconsciously,” the analyst added, “and it will eventually snowball.”

Mr. Gill said the Philippines needs to counter China’s influence operations by, among others, providing “legitimate information.”

Philippine authorities have already debunked China’s claim, with Mr. Marcos saying he was not aware of an agreement to remove BRP Sierra Madre from the Second Thomas Shoal. 

“And let me go further, if there exists such an agreement, I rescind that agreement now.”

Mr. Gill said China’s provocative actions that stops short of a military confrontation will continue “until a significant cause will be placed on China’s multifaceted strategy.”

In deterring Chinese aggression, the Philippines needs to consider Beijing’s cabbage tactics, which refer to the strategy of seizing control of an island by surrounding and wrapping it in successive layers of Chinese naval and coast guard ships and fishing boats, said Mr. Gill, who noted that China is avoiding moves that could prompt Washington to invoke a 1950s mutual defense treaty with Manila. 

The analyst cited the need for the Philippines to boost its defense partnerships with like-minded nations and expand its economic networks. 

China is the Philippines’ largest trade partner, with their total trade amounting to $3.01 billion in April, according to the local statistics agency. Manila’s exports to China reached $772.47 million in the same month, while its imports from Beijing hit $2.26 billion. 

The Southeast Asian nation also needs to conduct “consistent” joint patrols and military activities in the West Philippine Sea, Mr. Gill said. “The Philippines and its allies must push back by cementing the status quo in the South China Sea.” 

“These must be done with utmost consistency and over a long period of time. The battle now will rely on patience and consistency — above anything else.” — Kyle Aristophere T. Atienza

Follow us on Spotify BusinessWorld B-Side

The Bangko Sentral ng Pilipinas (BSP) needs to be properly prepared to deploy central bank digital currencies (CBDCs), as these virtual currencies might pose risks to banks, according to the International Monetary Fund (IMF).

Tommaso Mancini-Griffoli, deputy division chief in the Monetary and Capital Markets Department at the IMF, said in an interview during the IMF Spring Meetings in April that if consumers find a more convenient payment method, such as using CBDCs, they might opt not to deposit money in banks.

“If there is an alternative that allows us to make payments perhaps even more easily, and that is perhaps even safer as a store of value, we might switch to that. CBDC might well be that form of money that is just as liquid and convenient for me to make payments, perhaps more so,” Mr. Mancini-Griffoli told BusinessWorld reporter Keisha B. Ta-asan.

“So, if that’s the case, people may move their money out of the banks into CBDC. That would cut back on bank funding, and will cut back on the bank’s ability to provide credit to the economy and that is a problem.”

“It’s important that central banks are attentive to this and manage these risks carefully. [They] can set limits on how much people can hold in their CBDC wallets or [they] can have fees on wallet transactions if [a person] holds above a certain level,” he added.

The Philippine central bank has been testing the use of wholesale CBDCs among selected financial institutions through its CBDCPh project.

The pilot project was initiated in 2022 and is set to continue until 2024. The BSP employs a test-and-learn approach within a sandbox environment to gain a deeper understanding of the possibilities and risks associated with wholesale CBDC. This effort also aims to bridge gaps within the national payment system.

The project encompasses various aspects, including policy and regulatory considerations, technological infrastructure, governance and organizational requirements, legal matters, payment and settlement models, reconciliation procedures, and risk management.

“A CBDC is new and involves new technologies. It also involves a type of work that central banks are not necessarily used to, which is building products that will eventually be used directly by households and firms,” Mr. Mancini-Griffoli said.

“Central banks that are serious about doing deploying and testing CBDCs need to understand these challenges and need to tool up in order to deliver. That’s a little complicated to do, but certainly not beyond the reach of central banks,” he added.

Related story: https://www.bworldonline.com/top-stories/2022/04/28/445079/bsp-to-launch-digital-currency-pilot-project/

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

How are Philippine hospitals evolving after the pandemic? What important lessons have they learned from the crisis? In this B-Side episode, BusinessWorld reporter Patricia B. Mirasol speaks with Eugenio F. Ramos, president and group chief executive officer of The Medical City (TMC), about the importance of public-private partnerships, embracing technology, and addressing staff-related difficulties.

Continue to foster public-private partnerships.

The COVID-19 pandemic was a time for everyone in the public and private sectors to set aside their differences and work together, according to Mr. Ramos.

He said that such collaborations, which he called the “silver lining” of a “traumatic” period, need to continue.

“The Philippine healthcare system was really dismal,” he said. “The DoH (Department of Health) needed help. It wasn’t a time for appointing blame [but] for working together.”

TMC initiated calls with other hospitals to ensure that those who cannot be accommodated in its hospital can be sent elsewhere. “We had to collaborate in terms of providing healthcare to those in need,” Mr. Ramos said.

Such collaborations are also necessary because the likelihood of another pandemic lurks, he added.

The complex drivers of zoonosis – such as climate change, pollution, and disasters – are some of the reasons for emerging pandemic threats, according to Noel Lee J. Miranda, a consultant specializing in the topic.

The Philippines already has three viruses that are in the same family as pathogens identified by the World Health Organization as having “pandemic potential”, with a fourth one on the horizon.

Utilize technology for better decision-making and improved efficiency.

TMC’s enterprise – with its flagship complex in Pasig, Manila, four provincial hospitals, and over 50 clinics – is in varying stages of the digital journey.

The company started to use artificial intelligence (AI) for its diagnostic services such as mammograms.

It is also “getting into AI for its ECG (electrocardiogram) and echo (electrocardiogram),” Mr. Ramos said. It is not to replace people but to improve the processes’ efficiency, he added.

The secret to AI is people, according to an August 2020 article by Harvard Business Review.

Gaining a competitive advantage in AI requires transforming “the way companies do business so human resources can be augmented with machine power.”

AI can likewise be used to make faster data-driven changes, a 2023 McKinsey report noted.

“Post-pandemic, we have to prepare ourselves in terms of how we get data. Sometimes, the decisions may not be the best decisions, but those that are quick and helpful to the most number of people,” Mr. Ramos said.

Give staff good reasons to stay.

Healthcare staff are not commodities and should not be treated as such, Mr. Ramos said.

“Filipino nurses are the best in the world, [but] a lot have been siphoned off the country.”

The Philippines is the second-largest exporter of human labor in the world, a 2017 Human Resources for Health study found.

The World Health Organization has projected that by 2030, there will be a shortfall of 18 million healthcare workers in low- to middle-income countries.

The same McKinsey report noted that 39% of its respondents from seven countries plan to leave their jobs within the next three to six months.

Local hospitals need to give them better reasons to stay, said Mr. Ramos.

“Other than giving them a decent salary, empower them with better chances of mobility as far as the career is concerned… A lot want to stay because of their families here.”

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

The local demand for coffee outpaces its production in the Philippines, according to an industry expert. 

This unmet need bodes well for farmers seeking credit from typically risk-averse financial institutions.

In this B-Side episode, TJ Ryan, chief of the party of Philippine Coffee Advancement and Farm Enterprise (PhilCAFE), talks to BusinessWorld reporter Patricia B. Mirasol about post-harvest handling, agricultural lending, and leveraging public-private partnerships in the Philippine coffee industry.

PhilCAFE is a project focused on Philippine coffee and funded by the United States Department of Agriculture.

TAKEAWAYS 

Agricultural lending in the sector has improved, but it is still a work in progress.

PhilCAFE has set up coffee appreciation tours with its financial institution partners to help facilitate agricultural lending, Mr. Ryan said.

The tours demonstrated how coffee was being produced according to improved quality standards. Partners were also introduced to the entire value chain of local coffee, which included introductions to buyers.

Such efforts have yielded results, such as a tripartite agreement among the cooperatives, banks, and buyers worth north of $4.2 million in agricultural financing, Mr. Ryan said.

“Agriculture is really the last thing banks want to invest in,” he said, noting how the effects of climate change have likewise made farming tough for coffee producers. 

“When [financial institutions] talk to buyers and the buyers say, ‘We can’t get enough coffee,’ that’s going to be positive for the banks, because of course they understand that that’s an unmet demand. An unmet demand means a financial opportunity,” Mr. Ryan added. 

The Philippines imports 90% of the coffee it consumes. 

Robusta is undergoing an image makeover worldwide. 

Robusta used to be looked down upon because of its reputation as fodder for instant, lower quality coffee, Mr. Ryan said. However, two factors are now working in favor of this variant.

“One, people have focused on improving its quality, and are therefore showing that Robusta can be very, very good coffee,” he said. “Two, Robusta’s resilience against inclement weather and high temperatures is really thrusting it in the spotlight.” 

Arabica, another commercially grown variant that is used in chains such as Starbucks and Bo’s Coffee, is under greater threat of climate change.  

“When we took the Philippine Robusta to Milan last year and Greece this year, it was really well-received,” added Mr. Ryan. “With proper investment and attention, it could be a real source of economic strength and build a reputation in the coffee world for the Philippines.”  

The Philippines produces about 45,000 metric tons of Robusta.  

The other known commercially grown variants are Excelsa and Liberica (locally known as barako). 

Education in coffee production, including in post-harvest handling, are raising the livelihoods of Filipino coffee farmers. 

Competition among the 137 entries was so stiff at the 2023 Philippine Coffee Quality Competition, Mr. Ryan said. He mentioned that if the 2022 winner had participated, he would have finished 6th.

“We had the highest number of specialty Arabica and fine Robusta entries,” he said. “We had the highest percentage of those two categories, and the highest scores ever in the competition.”  

The competition has been running since 2017. Micro-lots of the winning entries are sold through bids in a subsequent international auction.

Last year’s winning cup was sold at $75 per kilo.

“[These] are life-changing numbers for these producers,” Mr. Ryan added.  

PhilCAFE, for its part, offers processing courses for free to coffee producer organizations in the Philippines. The courses are from the Coffee Quality Institute (CQI), which sets standards for coffee quality around the world.

According to Mr. Ryan, these processing skills have been distributed geographically in areas across Luzon, Visayas, and Mindanao.

“Normally the CQI courses are a paying course, but – in a country that’s transitioning into a pretty significant specialty coffee phase – these courses can make a huge difference both in producers’ livelihoods and skillsets,” he said. 

“When the project ends, they probably would have to renew their certification in 3 years through a paid course,” he added, “but they typically now earn more, because they’re selling higher-quality coffee.” 

Given their higher yield and early bearing characteristics, coconut hybrids offer Filipino coconut farmers a means to improve production, according to an expert.

In this B-Side episode, Leilani D. Pelegrina, director at the Department of Science and Technology-Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (DoST-PCAARRD), discusses the impact of coconut hybridization on coconut farming with BusinessWorld reporter Patricia B. Mirasol.

TAKEAWAYS

Coconut hybrids yield more output with the same level of management.

Coconut hybrids can increase the annual yield of each palm to 150 nuts per year, compared to 45 nuts with traditional coconuts.

Hybrids begin flowering within 3 to 4.5 years, faster than the average 3 to 7 years for traditional coconuts, leading to potential fruit harvesting in 4 to 5 years instead of 3 to 7.

While one farmer claimed to have observed flowering after 18 months, further replication and verification are necessary, according to Ms. Pelegrina.

The potential yield per hectare for traditional coconut varieties is 15,000 nuts per year.

Based on the Philippine Statistics Authority’s farmgate price of P10.47 for a young coconut or buko, farmers cultivating traditional varieties can expect annual sales of around P157,000.

In contrast, a hectare of hybrid coconuts has the potential to yield 22,000 nuts per year, equivalent to approximately P230,340.

Additionally, intercropping practices, such as cultivating cash crops like vegetables, coffee, and cacao, can provide farmers with additional income.

Coconut production in the country increased by 1.6% to 3.26 million metric tons in the first quarter of 2023 compared to the same period in 2022, driven by increased awareness of coconut benefits and growing demand for coconut-based products in major developed countries, as per the Philippine Information Agency.

The coconut hybridization program in CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon) will be expanded nationwide.

Funded by the DOST-PCAARRD, the program aimed to enhance the production and sustainability of coconut hybrids in Region IV-A from 2018 to 2022.

The Philippine Coconut Authority (PCA) implemented the project using two hybridization schemes: directed natural pollination and assisted pollination.

Four project sites were involved in the former (Institute of Plant Breeding in Los Baños, Oliveros Farm in Laguna, Stuart’s Farm in Quezon, and Villa Escudero in Laguna), while two project sites were designated for the latter (DFarm in Quezon and Feria’s Farm in Quezon).

Developing coconut hybrids entails combining exceptional parental mother palms (such as the Catigan Green Dwarf and Malayan Red Dwarf) with parental pollen source palms (such as Bago Oshiro Tall, Baybay Tall, Laguna Tall, and Tagnanan Tall). It takes at least 15 years of continuous research to develop coconut hybrid varieties.

“We are scaling this coconut hybridization program nationwide through the coconut farmers and industry trust fund (CFITF),” Ms. Pelegrina said.

Under the Coconut Farmers and Industry Fund Act (Republic Act 11524), farmers can utilize the coconut trust fund to develop the industry.

The fund, initially derived from the coconut levy imposed on farmers in the 1970s, was seeded with capital recovered from the levy.

The DoST received the first tranche of funds from the CFITF in 2022, with 20% of the allocation dedicated to coconut hybridization.

The PCA manages 15% of the funds for operations and activities, while 5% is overseen by the council for research and development, according to Ms. Pelegrina. Budgets from the fund will be received on an annual basis for five years.

The PCA aims to raise its coco levy fund allocation by P11 billion in 2024.

The P75-billion CFITF is facing challenges in hiring personnel and commissioning a study to improve the coconut industry, as the coco levy fund does not cover administrative costs, according to PCA administrator Bernie F. Cruz in a June 26 news briefing.

Filipino farmers can already apply to be accredited as program partners.

The PCA has a process for accrediting private farms, involving prerequisites, Ms. Pelegrina explained. Farmers can visit any PCA office or approach the DOST-PCAARRD, which can then refer them to the PCA.

“The first step should be to write to the PCA and express their intent to be considered as an accredited farmer cooperator,” Ms. Pelegrina said.

She added that at least 5 hectares would be effective for an area to be accredited as a farm, and accreditation includes training sessions on pest management and good agricultural practices.

Stakeholders have emphasized that, in addition to producing coconut hybrids, improving transportation infrastructure and farmers’ access to loans will further promote the coconut industry.

The Philippines is home to 2.5 million coconut farmers, with 69 out of the country’s 82 provinces classified as coconut-producing by the PCA.

Follow us on Spotify BusinessWorld B-Side

Japan is planning to release 1.3 million tons of treated water from the Fukushima Daiichi Nuclear Power Plant into the Pacific Ocean, which covers more than one-third of the planet.

The power plant’s regulators, and even the government of Japan, say that the release will not cause any harm to the world’s oceans, but fisherfolk and activists from different countries surrounding the Pacific, including the Philippines, say otherwise.

In this B-Side episode, Gregg Yan, founder and executive director of the environmental group Best Alternatives, discusses with BusinessWorld reporter Beatriz Marie D. Cruz why Japan’s planned release of treated water from its nuclear power plants should matter to Filipinos.

He said that the move would put at risk “the livelihoods not just of the 17 countries that fish in the Pacific Ocean but essentially of all the countries on earth.”

Mr. Yan said that 70% of the world’s fish catch comes from the Pacific Ocean.

“So much life thrives here, from small fish like anchovies to large and economically valuable fish like tuna, which have spawned multi-billion-dollar industries,” he added, noting that the release of treated water into the Pacific could harm fisheries in the region.

Fukushima plant operator Tokyo Electric Power (TEPCO) has said that the water will continuously be filtered until radionuclides, except tritium, are removed.

Recognizing that it will be difficult to eliminate entirely, TEPCO said that tritium will be diluted in seawater at least a hundred times for its concentration to fall below Japanese regulatory standards.

“A few years ago, the Japanese were already caught not telling the full truth about what’s actually in the wastewater from their nuclear plants,” Mr. Yan said, referring to a 2018 statement from TEPCO acknowledging that more than half of the treated water in the power plant was contaminated with dangerous radioactive elements. Previously, they claimed that the water only contained tritium.

Mr. Yan noted that any radioactive elements are cancerous and could damage smaller aquatic creatures like coral or fish larvae.

He said the best solution for nuclear byproducts is to bury them—out of sight, out of mind.

Mr. Yan also mentioned that the Pacific Ocean “has enough problems on its own,” citing huge amounts of plastic waste settled in the northern part of the ocean called The Great Pacific Garbage Patch. It is believed to be double the size of Texas or three times the size of France.

According to Mr. Yan, the Pacific Ocean is also facing issues such as climate change and overfishing.

Mr. Yan called on the public to be more concerned about environmental issues and their effects on their lives and the next generation.

“A lot of this environmental news matters to you. It will directly affect your lives,” he said.

This podcast episode was recorded remotely on June 22, 2023.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

The Philippines needs to work on ensuring the safety and freedom of journalists to report reliable developments on national issues, despite its improved world press freedom ranking in six years, the National Union of Journalists of the Philippines (NUJP) said.

In this B-Side episode, NUJP Chairperson Jonathan de Santos discusses the current roadblocks to a free press in the Philippines and its potential impact on investors and the economy with BusinessWorld reporter John Victor D. Ordoñez.

TAKEAWAYS

“There has been some improvement in dealing with the media in the Philippines, in the sense that the government isn’t as hostile to the press as before,” said Mr. De Santos.

The country ranked 132nd out of 180 countries in the Reporters Without Borders’ 2023 World Press Freedom Index, released on May 3. It was 147th last year.

Although this is a welcome development, Filipinos need to remember that attacks on the media are still common, noted Mr. De Santos.

“These attacks are still grim reminders that press freedom is something for which we need to struggle,” he said. “We cannot be complacent about things like this.”

A free press bodes well for the economy.

Mr. De Santos said the government has to consider that investors may look at press freedom metrics as a major factor in doing business in the Philippines.

“It is good to be seen as a rights-respecting country as the government is trying to improve the country’s image after the previous administration.”

The worsening human rights indicators could jeopardize the country’s trade privileges with international bodies such as the Generalized Scheme of Preferences Plus (GSP+) with the European Union, he also said.

GSP+ requires the Philippines to uphold commitments to 27 international conventions encompassing human rights, labor, good governance, and climate action.

“The human rights record of a country will affect aspects such as aid and trade promotion with other countries,” Mr. De Santos said.

Hurdles still persist for Filipino journalists.

Mr. De Santos cited the need for the decriminalization of libel, which he said is often used against journalists.

He mentioned the libel case against Rappler Chief Executive Offficer Maria A. Ressa, which he said had a significant impact on how the world perceived press freedom in the Philippines.

“There was a lot of international pressure on the government to drop the charges.”

The NUJP has filed a petition before the Supreme Court questioning the subscriber identity module (SIM) card registration law, citing privacy concerns.

Mr. De Santos said that media workers have been urging Congress to pass laws that would safeguard the right to organize within the workplace and ensure the safety of journalists during coverage.

“We are drowning in white noise, and it has become more challenging to capture the reader’s attention,” said the NUJP chief on the impact of social media on news delivery.

Without a free press, people would have less informed lives.

“If we don’t have press freedom and we’re labeled as bashers or haters, it will be more difficult to address our needs because the government won’t pay attention to these problems,” said Mr. De Santos.

Journalism is under attack worldwide, and Filipino media practitioners have been actively fostering solidarity to defend the free press, he added.

The NUJP has been collaborating with six journalism organizations in Southeast Asia to gather information on media attacks, with the aim of identifying trends in the region on how governments treat journalists.

“Governments from Southeast Asia are learning from each other on how to silence dissent, and we hope to develop a similar playbook for the media.”

“It has been a challenging couple of years, and many of us are questioning whether it is still worthwhile to remain in this profession,” Mr. De Santos said.

He also emphasized the importance of journalists forming support groups to advocate for improved working conditions in the media.

“You can’t do this alone,” he addressed Filipino journalists. “Always remember who we are doing this for, and ultimately, we are serving the public.”

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

In various cities and barangays (villages) without proper road infrastructure, sari-sari stores, or small neighbourhood shops, have emerged as a crucial lifeline, supporting both the local economy and the daily needs of residents, according to sari-sari store startup Packworks.

In this B-Side episode, Andres Montiel, Packworks’ chief data officer, discusses with BusinessWorld reporter Revin Mikhael D. Ochave the significant role sari-sari stores play in communities and the national economy.

“What we’ve seen is that in a number of cities and barangays, especially those that do not have roads, sari-sari stores serve as a lifeline, not only for the economy but also for the residents’ daily existence. Consumers rely on them for water, canned goods, detergent, and other necessities,” Mr. Montiel said.

“One thing that modern trade will never be able to replace when it comes to sari-sari stores is the community aspect—the genuine concern these stores have for their communities. Sari-sari stores take care of their communities. However, it is important to remember that sari-sari stores are still businesses; they are not charities,” he added.

In May, Packworks released a report revealing that consumers spend an average of P800 per month on sari-sari stores, with liquor and tobacco products being the most purchased items.

The study also indicated that cigarettes, alcohol, hygiene products, soda drinks, and powdered drinks constitute the top five consumer goods in the monthly budget of an average Filipino household.

“Sari-sari stores are highly accessible. They are part of the community. If you frequently buy from a sari-sari store, the store owner knows you. The close proximity of sari-sari stores within neighborhoods makes them the ideal place for repeated purchases of these items,” said Mr. Montiel.

The survey findings were based on Packworks’ Sari IQ business intelligence tool, which covers almost 200,000 sari-sari stores across the country.

According to the study, 13 out of 17 regions in the Philippines spent the most on cigarettes, while the Cordillera Administrative Region, Northern Mindanao, and Soccsksargen had the biggest spending on alcoholic drinks, and the Zamboanga Peninsula spent the most on powdered coffee.

Despite cigarettes and liquor being the top two most bought items, Mr. Montiel said the startup sees a lower threat of vice products being sold by sari-sari stores to minors.

“But since sari-sari stores have a personal approach and exhibit genuine concern (malasakit), I believe the danger is lower compared to modern trade,” he noted.

He also said that sari-sari stores remain a viable business option for those looking to start a small business.

“Sari-sari stores, especially community-based ones, serve as a means to supplement the income of households,” Mr. Montiel said.

This podcast episode was recorded remotely on May 27, 2023.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

The Philippines’ mobile network operators (MNOs) are now using shared towers to accelerate and lower the cost of digital transformation in the country as a result of the government’s common tower policy.

In this B-Side episode, Suresh Sidhu, chief executive officer and founder of EdgePoint Infrastructure Sdn. Bhd., speaks with reporter Miguel Hanz L. Antivola how telecommunications infrastructure companies support the Philippines’ digital transformation.

TAKEAWAYS

Seeking operations from third-party telco infrastructure companies grants cost efficiency and focus for MNOs.

“We can offer them much longer-term solutions for using our infrastructure,” Mr. Sidhu said on the difference in investment horizon for telco infrastructure companies building shared towers.

The total cost comes down for all MNOs, where their capital expenditures (capex) are converted to operational expenditures (opex), and sites are shared by multiple operators.

“Using us, [payback is] closer to seven to ten years, so rather than spending all that capex themselves up front, the leasing of the site gives them a payback that is much longer and, therefore, much better for them.”

“Colocation pricing is often somewhere in the region of 10-20% from the market price… so things are a lot cheaper for them as well.”

“The price we offer is reflective of the fact that any single site is able to be shared, and we don’t need just one operator to recover our investment.”

Other advantages for MNOs include ‘colocation discounts,’ faster market operations, and immediate access to sites.

“They don’t have to focus so much on infrastructure… That’s our job.”

“The operators can spend more time thinking about network quality and customer service.”

Process clarity is a key challenge for telco infrastructure companies in the Philippines.

“Acquiring the site and getting the landlords to agree to lease the rent — [it] takes a lot of time,” Mr. Sidhu said.

“You need to make sure that you’re talking to the right landlord. You know that you’ve got everything in order. I think that’s a key challenge,” he added.

This challenge of process clarity includes securing the necessary permits and establishing trustworthiness with landlords, both of which slow down the time it takes to build a tower.

“I think the local government units (LGUs) are also trying quite hard, but we know we can always improve and automate more processes.”

Local production of materials will boost telco infrastructure operations.

Mr. Sidhu noted that telco infrastructure companies in the country rely on tower imports, which result in longer wait time and greater cost.

“There’s not a lot of local production, and I think having and encouraging more local fabrication in the Philippines will improve time for delivery, as well as costs quite considerably,” he said on maximizing the local supply chain.

“Right now, we probably have to use multiple vendors, which is fine, but typically in a mature tower country, you have fewer bigger partners to help you deliver the sites.”

However, Mr. Sidhu also sees progress in terms of the growing number of skilled vendors in the country.

“Hopefully, they continue to grow and become more professionally established and skillful because it’s always a little different putting up a site in sandy soil, marshy soil, mountain areas, urban sites,” he said of local manufacturers who can help them install and prepare a site.

“We’re looking forward to some of these partners getting bigger and bigger over time, and therefore building more and more skill, so we can use them more regularly.”

Analytics and artificial intelligence (AI) will become an important part of telco infrastructure companies.

Aside from the continuous growth of 5G networks in the Philippines through good site acquisition, telco infrastructure companies also look forward to using analytics and AI to improve operations.

“What we’re now doing is using crowdsourced data to put analytics in place, to also offer ideas to the operators where we see they may need it,” Mr. Sidhu said.

“So we are able to transform over time, from being a reactive order taker to a proactive solution provider for operators.”

“It’s starting now, but we need to get more mature.”

Solving the backhaul transmission through satellites can complement the goal, but it still needs to mature.

Low Earth orbit (LEO) satellites have the opportunity to provide network coverage and stable broadband access to remote locations in the country, Mr. Sidhu noted.

“You can build a site almost anywhere, but the issue is what we call backhaul transmission,” he said.

“So if I build a site on one end of the country, but the nearest site is blocked by a mountain or 50 mountains, how am I going to connect that site?”

“We see them as more complementary and potential partners… The technology has to mature a little bit to become more reliable.”

“There’s some regulatory matters that probably have to be sorted out, but overall, we think it can be a complementary part of the solution for our countries’ infrastructure.”

Recorded remotely on June 5, 2023.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

The Philippine government needs to invest more in the local semiconductor industry to boost its competitiveness globally, according to RS Group PLC, an electronics and industrial products distributor.

In this B-Side episode, Sean Fredericks, the president of RS Asia-Pacific, discusses with reporter Sheldeen Joy Talavera the potential of the Philippines to become a key player in the industry.

“The Philippines itself is a critical player in the global semiconductor industry… The country’s strategic location provides crucial access to the Southeast Asian market through international shipping and air routes,” he said.

He also said that the country’s English-proficient population and strict adherence to intellectual property protection and international labor laws make it an attractive investment destination.

According to trade data released by the Philippine Statistics Authority, the value of the country’s electronics product exports in 2022 reached $45.66 million, representing a 13.9% increase from the previous year. Semiconductors accounted for the majority at $35 million, followed by electronic data processing at $6 million, and office equipment at $504,450.

Mr. Fredericks highlighted several areas that the government needs to address in order to improve the semiconductor industry.

“The challenges I would say include the country’s inadequate infrastructure, including power supply, roads, and networks. These are basic infrastructure elements that require expansion to support the industry,” he said.

He also highlighted the shortage of high-end skilled talent, such as engineers and technicians, due to Filipinos seeking opportunities abroad.

Moreover, Mr. Fredericks discussed how the ongoing chip dispute between the United States and China can be an opportunity for the Philippines to solidify its position in the industry.

“The ongoing US-China dispute hopefully presents the Philippines with some new opportunities for business. Many US manufacturers are now resourcing away from China to balance their risk,” he said.

The B-Side episode was recorded remotely on May 23, 2023.

Follow us on Spotify BusinessWorld B-Side

Follow us on Spotify BusinessWorld B-Side

Banks are now actively working to make their operations digital. They want to reduce the reliance on physical cash and move towards a cash-lite economy. This means finding ways to automate their processes and make them available online. 

By doing so, they hope to provide customers with convenient and secure digital banking experiences.

In this B-Side episode, Kissflow’s chief executive officer, Suresh Sambandam, discusses with BusinessWorld reporter Aaron Michael C. Sy how banks can accelerate digital adoption. 

Takeaways:

• As in India, a cashless society in the Philippines could succeed and benefit the country if the government and regulators invest in platforms like the Unified Payments Interface (UPI). “If you can build something like a nationwide infrastructure similar to UPI in India, cashless is not at all a problem. It’s going to be really powerful,” Mr. Suresh said.
  

• Automating processes in the middle office is the key to ramping up digital banking. Banks need to digitally transform their processes to make employee operations more efficient, Mr. Suresh said. “Digital banking has not really happened effectively in the middle office applications. The front office applications and the back-office applications are more or less there.”
  

• To address the underserved sector in rural areas, regulators could start by introducing cashless payments to get them into digital banking. “When they embark on that, automatically the MSMEs (micro, small and medium enterprises) and the agricultural farmers, all of these people can go into the banking system. And that automatically enables digital commerce, digital payments, and takes us one step closer to the cashless banking initiative.”
  

• Citizen development paradigm provides a platform for non-IT personnel to translate their field of expertise into working applications without the need for programming knowledge. Banks should be educated in expanding their programming knowledge outside of the IT department, Mr. Suresh said. The citizen development paradigm can also be applied to other industries aside from banking such as retail, merchandise, and even the public sector.
  
  
• “There is a paradigm shift that is required in terms of thinking. Conventionally, the digital automation process is always handled by IT. But for a lot of simpler workflows and applications, you no longer need to depend on IT,” Mr. Suresh noted. “There is a new concept called citizen development paradigm that banks have adopted.”
  
  
• “The place where the cashless society and the digital transformation and digital banking is lacking is in the middle,” he added. “So what the central bank needs to do is to provide the best practices and guidance for all the banks in the Philippines to be able adopt digital transformation in the middle office. If that can be done, the whole cashless society transformation will be very smooth.”
  

Recorded remotely on May 22, 2023.

Follow us on Spotify BusinessWorld B-Side

Philippine institutions have expressed concerns and optimism regarding the use of artificial intelligence (AI), seeing it as both a potential challenge and an opportunity, according to plagiarism checker Turnitin.

In this B-Side episode, Jack Brazel, regional director and spokesperson at Turnitin Southeast Asia, speaks with reporter Miguel Hanz L. Antivola about the current state of AI in Philippine academia.

TAKEAWAYS

Philippine institutions are concerned about AI, but they also see it as an opportunity. 

“I don’t know any Filipino institution that has tried to ban ChatGPT. They are looking at ways on how we enhance the technology, how we make sure that students are ready for it,” he said. 

“But at the same time, they’re asking, ‘How do we protect the integrity of our [students’] course work?’” he added. 

Mr. Brazel also noted that educational institutions worldwide are eager to find out if students’ use of AI tools has affected their learning process.

AI should exist to enhance people’s lives. 

“But not replace the instructor, not do anything terrible like that,” Mr. Brazel said.

A crucial point for the global education sector is to prepare students undergo the challenges they are bound to face, he noted. 

Mr. Brazel likened AI to the autopilot mechanism for pilots. “Say a pilot… Even though they’ve got autopilot, we still need them to be well-trained, qualified, ready to go, ready to handle any sort of crisis,” he said.

“But of course, if they’re up there cruising in the peaceful skies using autopilot, there’s no problem to that.”

The priority is always the development of students’ skills.

“Filipino institutions are asking the questions: Are we developing our students the right way? Are we developing that skillset of writing? Are we able to produce an argument and articulate ourselves clearly?” Mr. Brazel said. 

The local education sector should prioritize producing graduates capable of making a positive impact on society and performing critical tasks independently, without excessive reliance on AI, he noted.

He also said that institutions worldwide will need to adapt to the presence of AI by redesigning assessments and clearly defining their expectations for students.

“AI is just there to—let’s call it—fuel better learning and better outcomes to students.”

Mr. Brazel noted that AI is here to stay, and Filipinos must maintain an inquisitive approach to working alongside it. 

“Students should be saying, ‘How do I become a better student?’ ‘How do I get ready for the real world?’” he said.

“Instructors should be saying, ‘How do I use AI to speed up my marking process and get feedback back to the students quicker?’”

“Greater society should be saying, ‘Hey, AI is going to be a part of society… but we can sort of get unproductive tasks done quickly and effectively.’” 

The education sector should prioritize real-world skills and producing graduates prepared for the challenges they will face, while acknowledging the persistent concerns surrounding academic integrity, Mr. Brazel said.

Recorded on May 11, 2023.

Follow us on Spotify BusinessWorld B-Side

Advertising has come a long way from traditional paper and ink, and with today’s boom in social commerce and artificial intelligence, the space continues to witness rapid changes, associations, and niches that push the boundaries of product consumption.

A battle for brand reach, attribution, performance, and transparency is rapidly evolving, according to Entravision. Finding, engaging, and retaining customers has become more challenging with the increasing host of strategies to tell a story and sell a product effectively.

In this B-Side episode, Juan Saldivar, chief digital, strategy and accountability officer at Entravision, talks to reporter Miguel Hanz L. Antivola about the fundamental aspects of advertising, as well as the disruptions in the field that are turning into new beginnings.

TAKEAWAYS

Advertising is not about the channel, but rather how you consume content.

With over 30 years of experience in advertising, Mr. Saldivar said that he never thought the world would be rapidly heading in its current direction. “What’s very interesting is that we historically thought that the world revolved around printing text on paper or distributing video only on a TV set,” he said.

Mr. Saldivar also noted how the vast associations with media channels like print, radio, and video have altered consumption more than the channels themselves. “The term print used to be associated with reading, and now it’s just reading, and on multiple devices,” he said.

Quality, storytelling, and engagement are the fundamental aspects of advertising.

“You can learn… through going to school, YouTube, or asking peers you really admire,” Mr. Saldivar said on quality production.

Learning how to use the means closer to one’s target audience is key to properly facilitating engagement, he noted.

This includes being able to execute short or long-form content while sustaining their attention. “Without mastering the length and language, you will not get an audience,” he added.

Influencer marketing and livestream shopping will become everyday standards.

Emerging trends such as influencer marketing and livestream shopping capitalize on being inspired by someone else to acquire a product. “If someone you trust is using a product, you will most likely be loyal to it,” Mr. Saldivar said.

“Live shopping is a great source for discovery, especially among special audiences.”

For audiences not acquainted with current specialized media channels, marketers need to find ways to engage with them either through product reviews, direct marketing, or other forms of content communication, Mr. Saldivar said.

Artificial intelligence (AI) in advertising is a new beginning, not the end of the road.

“Many of us have hallucinations of what’s going to happen, but certainly, there’s going to be disruptions in many industries,” Mr. Saldivar said.

He continued by expounding on intellectual property and how the onset of AI can affect the livelihoods of models, photographers, and marketers. However, AI can also be a tool for brands to sell more.

“We have to be very open and vigilant of how to integrate it in our day to day,” he said. “The future of advertising is growth.”

Recorded physically on May 4, 2023.

Follow us on Spotify BusinessWorld B-Side