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Money Talks is a series on personal finance sponsored by Metropolitan Bank & Trust Co. (Metrobank).听

Money is on the mind of many people, particularly amid the COVID-19 pandemic. A recent study titled 鈥淪tate of Banking and Financial Wellness鈥� by US-headquartered research firm Forrester, commissioned by fintech company Backbase, found that more than half (58%) of Filipinos identified building savings (58%) and planning for retirement (52%) among their concerns in personal finance. Debt is a top concern, with 70% of Filipinos citing it as a challenge in financial management.

In this B-Side episode, Chorie Chan, first vice-president and head of the Financial Markets – Investment Distribution Division for Countryside at Metrobank, talks money with 大象传媒, and how the pandemic has changed how we view and think about it.

TAKEAWAYS听

What has changed, and what hasn鈥檛

鈥淚 have been in banking for over 27 years now and what the pandemic taught me is this: the basic tenets of saving, budgeting and investing are still there. Am I saving enough? Am I spending too much? How should I budget my finances?鈥� Ms. Chan said.

鈥淣o matter how you think about it, no matter if you compute for unforeseen expenses, if you still have an extra amount that you couldn鈥檛 possibly need, then we talk about investing. That鈥檚 still a universal truth that has not changed over the years, pandemic or not. A universal truth that has probably evolved over the years and more so in the pandemic, would be the need to have better returns, and the need for diversity in what you can possibly invest in.鈥� 听

We must be able to assess our own financial wellness

People need to reassess how they view money in an environment of uncertainty.

鈥淏efore we seemed to have that confidence in stability. Stability of where we are if we have businesses, if we are employed. We kind of were able to project that 鈥業鈥檓 still going to have this income stream in the next couple of years.鈥� But lo and behold, the pandemic happened, and none of us are as certain as before that this could persist in the years or months to come,鈥� Ms. Chan said.

鈥淭his has become too pressing for all of us that we might want to consider expanding or deepening that amount of savings that we might need anytime soon to beyond the six-month requirement for expenses.鈥�

Saving is not investing

鈥淚 don鈥檛 equate saving with investing. A lot of us get confused that when we have extra from our inflows minus the outflow, we automatically consider that as an investable fund,鈥� Ms. Chan said.

鈥淟iquidity. The ability for anyone to convert savings into cash. Liquidity means that you are able to access your money in whatever form it is in and be able to use it for an unforeseen expense. So if there is any doubt in your mind that if say, a family member would need help or your car need maintenance in a few months, then there is an amount that you should always keep liquid, so you can spend for that unforeseen need.鈥�

Explore various ways to manage portfolio

At the end of the day, what you need to do about saving and investing will have to depend on what you need and what you hope to accomplish. 鈥淭here鈥檚 a whole wide world of ways… to discuss how and why and in what manner you can construct your portfolio. At the end of it all, it will have to be about your investment objectives, your tolerance for risk, and your requirement for liquidity,鈥� Ms. Chan said.

鈥淭he critical point that an investor has to be mindful about is the access to these financial investments, securities, or assets is so free that you can actually approach any financial institution that you鈥檙e comfortable dealing with and be led to talk to specialists within that institution. Ask them, feel free to explore, talk to people who are in touch with financial markets so they can sit down with you. Advice is free, I鈥檓 sure. And they can profile your suitability and your preferences and match these with your needs and objectives.鈥� 听

听听

Recorded remotely Nov. 4. Interview by Santiago J. Arnaiz,听大象传媒 contributor and chief operating officer of health startup Day3 Innovations. Research by Bjorn Biel 鈥淛B鈥� M. Beltran. Produced by Paolo L. Lopez听and Sam L. Marcelo.

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By Bjorn Biel M. Beltran, Special Features Writer

Long has the country held the reputation for its young, skilled, and technology-enabled population. In fact, the annual We Are Social鈥檚 digital report regularly ranks the country as among the most active internet and social media users on the planet.

This bespeaks of strong economic fundamentals that could carry the country鈥檚 economic narrative to further heights post-pandemic. Given that the current pandemic situation is controlled, the World Bank sees the Philippine economy expanding at 4.7% in 2021, before accelerating to 5.9% in 2022 and 6.0% in 2023, contributing to renewed progress in poverty reduction.

The potential for future progress is also apparent in how the country鈥檚 openness to adopt digital innovation such as cloud and data center technology.

鈥淭he Philippines is no stranger to global technologies like cloud and data center solutions. Because of Pinoy鈥檚 exposure to social media and business process outsourcing (BPOs) servicing global clients, there is a very high awareness to these types of solutions,鈥� Ace Yutuc, vice-president for Product Management and Marketing at Bee Information Technology Philippines, Inc., said in an interview.

Furthermore, the environment created by the pandemic has accelerated digital transformation across the country to a point where it has pushed both private enterprises and the public sector to adopt both cloud and datacenter solutions for their digital infrastructures.

Jovy Hernandez, president & chief executive officer of ePLDT and senior vice-president & head for PLDT and Smart Enterprise Business Groups, told 大象传媒 that the global pandemic has been a catalyst for digital transformation, and that enterprises and public sector were required to take leaps to address their growing customers鈥� need in terms of online presence. Consumer applications from social media to video streaming, gaming, e-commerce and telehealth grew exponentially as people were forced to stay at home, and this has attracted the attention of global digital companies.

鈥淭he digital profile of the Philippines has motivated hyperscalers to build their infrastructure within the archipelago. As these tech providers strive for subscriber eyeballs, the population and digital economy of a country are critical considerations in terms of their data center road map,鈥� Mr. Hernandez said.

鈥淕lobalization has erased boundaries, especially IT boundaries, and it is just a matter of time before businesses adopt these latest trends where the benefits outweigh the apprehension,鈥� Mr. Yutuc added.

Allen Guo, country manager for the Philippines at Alibaba Cloud Intelligence pointed out that the Philippines has invested a lot of effort to encourage new industries to participate in the digital economy, especially with the introduction of initiatives like the Cloud First policy.

The Philippine Government鈥檚 Cloud First Policy promotes cloud computing as the preferred technology for government administration and the delivery of government services. Shifting to cloud computing is expected to foster flexibility, security, and cost-efficiency among users. Cloud computing also offers key advantages such as access to global systems of solutions, innovations, and services, as well as up-to-date cybersecurity.

鈥淭hanks to its rapid economic growth in recent years, the Philippines has now progressed from having cloud discussions to experiencing cloud adoption. More businesses in the country are realizing how the cloud can provide transformative solutions and help them save money, while ensuring greater efficiency and flexibility to meet the ever-changing demands of customers,鈥� Mr. Guo said.

鈥淭he Philippines is a large booming market with a big group of young while digital savvy population. The Philippine digital economy growth potential is enormous and local SMEs and enterprises are well-positioned to take advantage of these growth opportunities. There is a strong demand on digital transformation from local businesses in accordance with the Philippine government鈥檚 Cloud First Policy,鈥� he added.

Seizing the opportunity
The Philippines鈥� prospects of becoming a digital leader in cloud and data center solutions are further improved by quite a number of factors. Mr. Yutuc pointed out that as 鈥淧earl of the Orient鈥�, the country is fortunate to have a strategic, valuable geographic location that places it at the crossroads of data traffic coming from the West and the Asia Pacific.

鈥淪ince undersea cables are the veins where all traffic come and go, the Philippines is the perfect landing area for Asia and worldwide traffic routes. Also, because Singapore and the surrounding regions have pretty much blanketed their areas with multiple data centers, the natural growth is towards nearby locations such as the Philippines. Plus, since the country is in a separate landmass, it serves as a natural redundancy site for all existing data center sites,鈥� he said.

Furthermore, recent research show that due to the rapid pace of digitalization and a surge of demand, the country鈥檚 data center market is projected to grow faster than Southeast Asia, which is recognized as the fastest-growing region for co-location data centers.

Major data center hubs in Southeast Asia such as Hong Kong and Singapore paved the way for other countries such as the Philippines to market to cloud and data tech providers. Hong Kong is currently facing geopolitical risks out of the imposition of China鈥檚 National Security Law, while Singapore has issued a moratorium to freeze data center construction amidst high demand in response to sustainability concerns.

Further research by Global Data showed that from a Cloud Service Revenue perspective, the Philippines is anticipating a steep rise in cloud service revenues up to USD2.4 billion by 2024. This is due to the increase in cloud spending in the Enterprise segment and the government鈥檚 Cloud First Policy.

Mr. Guo backed this with more data from Alibaba Cloud鈥檚 survey titled 鈥淭he Role of Cloud in Asia and Confidence in Asian Innovation鈥�. Results showed 88% of Philippine businesses are now more supportive of using cloud-based IT solutions to grow their businesses as compared to before coronavirus disease 2019 (COVID-19). In addition, a majority (94%) of Philippine businesses now also view cloud-based IT solutions as a crucial component in mitigating the impact of the pandemic.

Mr. Hernandez added that the Philippines, as it possesses a burgeoning digital economy, robust domestic and international infrastructure, progressive renewable power mix, and data centers at par with the technologically developed countries, is an ideal destination to support the hyperscale data center requirements of the cloud and content providers.

The country is, thus, well-positioned to take advantage of opportunities in a new, growing cloud and data center market, and its pivot towards digital and cloud infrastructures sets it on the right path to future-proofing the economy.

鈥淭he COVID-19 pandemic has served as the impetus for the acceleration of digitalization in the Philippines,鈥� Mr. Guo said. 鈥淒igital transformation will buttress recovery and growth in the post-pandemic era and help local businesses to get back on its track toward long-term aspirations. As remote working and online learning becomes the new normal, and most Filipinos turning to online platforms from shopping to entertainment, there is a surge in the need for cloud-based services to provide robust, resilient, secure and flexible support.鈥�

With trillions upon trillions of bytes of data being generated daily, these conversations are necessary. But for the once-brick-and-mortar family business that has just recently transitioned over to digital platforms, it is often daunting to understand how it all works together.

Cloud adoption is but one of the numerous aspects of going digital. What exactly is it, and how can it improve one鈥檚 business?

To start with the basics, one must understand how data is stored. In decades past, important files and photos were stored in folders and albums, tucked away in cabinets or storage vaults. It only differs slightly today.

Bytes of data, which could contain important documents, photos, audio recordings, or video, can be stored locally through hardware like disk drives, or internationally through the cloud. The cloud is essentially a storage vault where files are sent and received via the internet.

鈥淎t its most basic, the cloud refers to any type of software or service that isn鈥檛 located on your personal computer or devices but instead runs on the internet. The files, images and videos that you save on cloud services are stored on the servers of third parties, companies such as Amazon, Google, and Microsoft,鈥� technology firm Norton wrote on its website.

鈥淵ou can then get at these files whenever you are using a device connected to the internet. If you鈥檝e saved photos from your most recent trip to the beach, you don鈥檛 have to wait until you鈥檙e at your laptop computer to access them. You can find them by logging onto the internet from any computer or device anywhere.鈥�

In fact, cloud services are so popular that you might have been using it without knowing. Google Cloud Platform, Amazon Web Services, Apple iCloud, and Microsoft Azure among others provide the cloud services of websites 鈥� from Hulu and Dropbox to Gmail and Office 365.

The benefits of the cloud
So why should businesses use the cloud? Or put in another way, why should you hand over your important, private data over to other companies through the internet?

Historically, many businessmen have asked the same question, citing the security of public cloud infrastructure as one of their top concerns and a barrier to cloud adoption. According to management consulting firm McKinsey & Company, however, in recent years all major cloud service providers (CSP) have made significant strides in assuaging fears over security.

鈥淎 CSP鈥檚 business model depends on best-in-class security, and they have each invested billions in cloud security and in hiring thousands of the top cyber experts. They have developed an array of new tools and methods to make cloud secure, in many cases requiring developers to take on the security responsibility, rather than relying on a traditional security team to carry the burden,鈥� McKinsey wrote on their website.

McKinsey noted that this is particularly important because public cloud breaches have almost all been driven by enterprise customers鈥� insecure configurations.

鈥淭he key question for companies, therefore, is not whether cloud is more secure to begin with, but what measures they need to take themselves to enhance their cloud security,鈥� the firm added.

Norton further explained that cloud services are backed by massive corporations that can provide robust and powerful security measures to protect their data. Usually, servers where data is stored are located in warehouses that are inaccessible to most workers. To add to that, most files stored on cloud servers are encrypted, or are coded to make it far harder for cybercriminals to access.

Cloud servers are also consistently updated with the latest security measures to keep abreast of cyber risk, and are using advanced technologies like artificial intelligence to protect your data.

鈥淭his is important: It鈥檚 not easy to find experienced security professionals to oversee data. Cloud providers, though, can instead turn to AI to tackle at least the first level of security analysis. These programs rely on built-in algorithms to seek out and identify possible vulnerabilities in security measures,鈥� Norton wrote.

Finally, there is redundancy in the cloud, meaning that they copy data several times and store them on many different data centers, protecting them from outages and other problems and keeping the data in them accessible to their owners. 鈥� Bjorn Biel M. Beltran

Remote work might be one of those changes. Management consulting firm McKinsey & Company, which analyzed the potential of remote work and how extensively it might persist past the pandemic across more than 2,000 tasks in around 800 occupations in eight different focus countries, found that about 20% to 25% of workforces in advanced economies could work from home between three and five days a week, considering only remote work that can be done without a loss of productivity.

鈥淭his represents four to five times more remote work than before the pandemic and could prompt a large change in the geography of work, as individuals and companies shift out of large cities into suburbs and small cities,鈥� McKinsey wrote.

However, some tasks remain best done in person, despite technically being possible in a remote setting. These include negotiations, critical business decisions, brainstorming sessions, providing sensitive feedback, and onboarding new employees, as such tasks may lose some effectiveness when done remotely.

鈥淪ome companies are already planning to shift to flexible workspaces after positive experiences with remote work during the pandemic, a move that will reduce the overall space they need and bring fewer workers into offices each day. A survey of 278 executives by McKinsey in August 2020 found that on average, they planned to reduce office space by 30%. Demand for restaurants and retail in downtown areas and for public transportation may decline as a result,鈥� the firm continued.

As the business world adapts to new realities, so too must workplaces, multinational technology solutions firm ASUS stated, adding that forward-thinking small and medium businesses (SMBs) are creating flexible offices and spaces where teams can meet in small numbers, comfortably, and safely.

Similarly, schools all over the world have wholly relied on technology and digital tools to minimize the disruption to education and create adaptive learning environments, and that fact is unlikely to change moving forward. ASUS said that the latest technologies support multiple types of learning scenarios and environments, which can help teachers improve the learning experience of each student. Education administrators also require the innovative education solutions that tech firms provide to adapt to change and overcome challenges brought about by the pandemic.

鈥淩eliance on technology has been the core ever since the start of the pandemic. Usual classroom setups have shifted to remote learning over digital platforms. ASUS solutions help prepare students for the future with innovative learning experiences. With ASUS technology, students can access online learning resources, engage in interactive and collaborative projects, enjoy immersive learning, and develop skills that are essential in the digital age,鈥� ASUS said in an e-mail.

Technologies like AI noise-canceling, advanced webcam visuals, 360-degree flip laptops, and other features make it easier for students to simulate an actual school environment and continue their learning. Cloud-based devices and services are also increasing in prevalence, making cloud collaborative learning programs and value-added learning software applications like Google Classroom and Blackboard Learn available. ASUS notes that educators can now use these technologies to promote teamwork and collaboration on projects for student-led learning.

鈥淎t ASUS, we think that remote working and distance schooling can still be pursued even after the pandemic. Based on what we have right now, we could conclude that the current setup through digital means is feasible with some things that require some ironing to become fully effective as an alternative means of education,鈥� the company said.

COVID-19鈥檚 influence on work and education has kickstarted the acceleration of the adoption of technology into integral facets of daily life. However, the challenges that arise from such rapid developments must therefore also be addressed promptly.

鈥淭he scale of workforce transitions set off by COVID-19鈥檚 influence on labor trends increases the urgency for businesses and policymakers to take steps to support additional training and education programs for workers. Companies and governments exhibited extraordinary flexibility and adaptability in responding to the pandemic with purpose and innovation that they might also harness to retool the workforce in ways that point to a brighter future of work,鈥� McKinsey wrote. 鈥� Bjorn Biel M. Beltran

In fact, according to data provided by the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Association of Vehicle Importers and Distributors (AVID), only 244,274 units were sold in the Philippines for that year, a nauseating 47% plummet from the 457,110 units sold in the country in 2019.

Half a year into 2021, the industry is picking up the pieces. The country鈥檚 top carmakers are revving up in an effort to regain lost momentum. Overall, car sales increased by 44.8% to 22,550 units in June compared with 15,578 units sold a year ago, according to a joint report from CAMPI and Truck Manufacturers Association (TMA).

Is this a sign of better things to come?

Looking at a global context, the Philippine auto industry is not alone in its struggle towards recovery. Market research firm Frost & Sullivan鈥檚 mobility team has already revised its 2020 light vehicle sales forecasts from previously projected figures of 73.6 million to 77 million, although this still represents a fairly steep 15.1% year-on-year decline.

鈥淢ore promisingly, we anticipate a brisk 8% year-on-year rise in sales in 2021, with the industry on track to overtake 2019 levels by the end of 2023. I鈥檒l add a caveat here: while the overall market will certainly recover, the pace of recovery will be uneven across key markets,鈥� Sarwant Singh, managing partner at Frost & Sullivan, wrote in an article published by Forbes.

Mr. Singh noted that China and the United States have been the fastest at shaking off the lingering effects of the pandemic, with Europe and India showing signs of a steady comeback.

A push towards technology and digitalization
What is certain is that the pandemic has caused many car makers worldwide to reconsider the use of technology towards reaching their customers and in designing the newest models.

鈥淭here鈥檚 really no choice as more technology-led competitors muscle into the action and digital touchpoints and use cases explode with the advent of electric and connected car services, and autonomous vehicles not far behind. So car companies that can鈥檛 get their digital act together in 2021 will become more obsolete than my VHS tapes,鈥� Mr. Singh wrote.

He added that carmakers will have to make tough decisions towards bringing their software development in-house, or partner with tech companies to develop next generation vehicle operating systems.

A renewed focus towards personal safety
Health and safety have skyrocketed to consumers鈥� minds as a direct result of the pandemic, and such priorities are influencing their decisions even towards buying new cars. Personal mobility is given more significance as consumers fearful of infection risks turn their attention towards compact small cars and SUVs.

Mr. Singh pointed out that this trend has highlighted the importance of health, wellness and wellbeing (HWW) features in cars.

鈥淣ot to be left behind, automakers that have so far been focused on green agendas will look to advanced connectivity technologies to keep vehicle occupants in the pink of health. From features that detect if you鈥檝e had a gin & tonic too many, purify in-vehicle air, and analyze real-time pollution at street level to my personal favorite 鈥� seats with massage functionalities 鈥� every part of car will be revisited with a view to keeping vehicle occupants safe and healthy,鈥� he wrote.

鈥淣ot surprising then that we expect the number of connected vehicles with such features to increase at a compound annual growth rate of 25% between 2019 and 2025. Car companies will develop built in, bought in and beamed in HWW features.鈥� 鈥� Bjorn Biel M. Beltran

For years, the Philippines鈥� story was about growth and development. Dubbed as Asia鈥檚 next rising tiger, the country鈥檚 economic narrative had been breaking expectations with its rapid and continued expansion. Then the pandemic struck. Moving forward, the question on everyone鈥檚 minds is how to return to such a state of growth and restart the journey to recovery. According to the World Bank, agriculture could be the key.

鈥淢odernizing the country鈥檚 agricultural sector is a very important agenda for the Philippines,鈥� Ndiame Diop, World Bank country director for Brunei, Malaysia, Thailand, and the Philippines, said in a September 2020 report titled 鈥�Transforming Philippine Agriculture During COVID-19 and Beyond.鈥�

鈥淲ith the exception of a few small natural resource-rich countries, no country has successfully transitioned from middle to high-income status without having achieved an effective transformation of their agri-food systems. Transforming agriculture and food systems is always challenging. But the country鈥檚 new vision for agriculture, it鈥檚 current thrust for diversification and use of modern technologies, and its effective management of food supply during this pandemic clearly indicate that the country is well-equipped to overcome the challenge,鈥� he added.

The report, which was prepared as part of World Bank鈥檚 support to the Department of Agriculture鈥檚 鈥渘ew thinking鈥� in agricultural development, goes on to explain how transforming Philippine agriculture into a dynamic, high-growth sector is essential for the country to speed up recovery, poverty reduction and inclusive growth. Modernizing the industry could further lead towards improving the overall resilience, competitiveness, and sustainability of the rural sector.

Agro-industrial zones already exist around the country to take advantage of this opportunity. These zones are accredited by the Philippine Economic Zone Authority (PEZA), and are created to support the agricultural sector and continuously create ways to develop communities through different programs for farmers and crop growers. PEZA awards accreditation to developers of agro-industrial parks and through this, provides several incentives to its locators, such as tax holidays and other exemptions.

Agro-industrial parks are industrial estates that process, warehouse, and manufacture agricultural products for both food and non-food output, with the main function of an enterprise hub for the agricultural industry in a specific location. It stimulates the development of the agricultural industry through the manufacturing of agronomic production to food processing.

Moreover, an agro-industrial park is an excellent opportunity for investors to implement projects on its site using its infrastructure and services.

鈥淎gro-industrial hubs provide several opportunities for the country鈥檚 economic and inclusive growth from farmers to businesses. They leverage on the country鈥檚 abundance of natural resources, rich land, and raw materials which can differ in several parts of the Philippines. These are primary sources of livelihood for Filipinos,鈥� Ricardo F. Lagdameo, president of Damosa Land, Inc. and Anflo Industrial Estate, said in an e-mail.

鈥淎gro-industrial parks that can provide complete facilities including even a cold storage facility and direct access to a world-class container terminal have the potential to fill in supply chain gaps in the industry. We aim to spur rapid development and economic growth in the countryside through developments such as this,鈥� he added.

Mr. Lagdameo said that modern industrial parks are excellent catalysts for economic development and attract businesses to meet the requirements and demands of several industries, a boon for rural communities that rely on agriculture as their economic output.

For instance, Anflo Industrial Estate provides opportunities for businesses and investors to locate in the heart of the Davao region with ample tools, support facilities and services required for processing and agro-based manufacturing.

Mindanao, it bears noting, is dubbed as the 鈥淔ood Basket of the Philippines,鈥� largely producing 40% of the country鈥檚 food needs and 30% of the national food trade. Agricultural produce from Davao are exported to countries like China, Japan, the Netherlands, and the United States. Locators at the park export products such as banana, coconut, cacao, and rubber and have given vast opportunities for farmers to market their produce.

鈥淭he agro-industry is considered one of the top 10 priorities of the Davao Region. Its vast cropland is conducive for various investments in agribusiness and addresses matters on food security in the country while safeguarding sustainable development by providing employment and income generation for its community. Its integration with industrial real estate means opportunities for the local farmer to companies of different industries,鈥� Mr. Lagdameo said.

Agro-industrial hubs鈥� potential for rural development will further support the government鈥檚 push to decentralize Metro Manila and direct investors to the provinces, contributing to the financial inclusion.

Nowadays, in the so-called age of information, it goes without saying that information is the most valuable asset. Yet, the challenge has mostly never been the access to information, but access to information that is both accurate and relevant.

Particularly during a crisis such as the COVID-19 pandemic, when fear and uncertainty about the world run rampant, valuable, verifiable, and credible information is the most useful tool for survival. In many cases, truth is a source of hope.

Which is why media conglomerate MediaQuest Holdings, Inc. (MediaQuest), the mother company of some of the biggest media players in the country, has constantly strived to provide the latest and most up-to-date information on the crisis as it continues to unfold more than a year later.

With a proven track record of credible and strong journalistic expertise, the companies under the MediaQuest umbrella have ensured that Filipinos have the most relevant and most accurate information on the country鈥檚 current state of affairs.

Since even before the outbreak of COVID-19, The Philippine STAR, one of the country鈥檚 most widely-circulated newspapers, has provided reports on the novel virus spreading in southern China towards the latter end of 2019.

In celebration of The Philippine STAR鈥�s 34th anniversary, its lifestyle platform PhilSTAR L!fe launched 鈥淚n Between: The Art of Moving Forward鈥� which shared stories by over 100 writers about life and the nation during the COVID-19 crisis.

When the lockdown began, the newspaper firm鈥檚 online counterpart, philstar.com, offered Filipinos constant updates on COVID-19 cases through a daily tally, in addition to the breadth of coverage and commentary provided by the STAR鈥檚 writers. Even today, Filipinos can stay updated on the ongoing government rollout of COVID-19 vaccines through #VACCINEWATCHPH.

Meanwhile, 大象传媒, the country鈥檚 oldest and most respected business daily, built on its reputation among the industry leaders and decision-makers in the Philippine business community to launch 大象传媒 Insights, an online forum series that sought to provide an avenue for discussion about the country鈥檚 most pressing matters.

Among the most recent forums talked about how COVID-19 has driven innovation in public health, as well as the importance of ESG (Environmental, Social, and Governance) criteria to companies in the post-pandemic world.

Leveraging the digital platform to provide a virtual space for local and international experts also gave birth to the 大象传媒 Virtual Economic Forum, which drew in speakers from organizations like the World Economic Forum, the World Bank, APEC, and the United Nations to discuss how to reimagine the future after COVID-19.

Also part of the PhilSTAR Media Group are Cebu-based, English-language broadsheet The Freeman; Filipino-language tabloids Pilipino Star Ngayon and Pang-Masa; Cebuano-language tabloid Banat; and online news portal InterAksyon.

MediaQuest is also home to TV5 Network, Inc., one of the Philippines鈥� major television players. At present, its assets include the broadcast television networks 5 and 5 Plus; the national radio station Radyo5 92.3 News FM; the regional radio network Radyo5; and satellite television channels Colours, One Sports, One News, One PH, Sari-Sari Channel, and PBA Rush. It also operates international television channels Kapatid Channel and AksyonTV International; as well as digital and online portals Digital5, TV5.com.ph, ESPN5.com, and News5 Digital.

Such a wide reach allows MediaQuest to continually provide aid and support to Filipinos in need, especially during the crisis. Alagang Kapatid Foundation, Inc., the social development arm of TV5, is committed to promote and support humanitarian causes, utilizing TV5鈥檚 different media outlets to involve the public through various programs and promote civic participation.

For instance, working with PLDT, the foundation has provided hygiene kits and food packs to indigent communities severely affected by the community quarantine. This effort was further bolstered by the Makati Medical Center Foundation, through the provision of blankets to the Armed Forces of the Philippines and Philippine National Police quarantine facilities as well as some frontline healthcare workers from the Makati Medical Center.

Tulong Kapatid, which includes Alagang Kapatid Foundation, Makati Medical Center Foundation, Maynilad, Metro Pacific Investments Foundation, PLDT, Smart, PLDT-Smart Foundation, Inc., and One Meralco Foundation, together with other Manny V Pangilinan-led companies, is set to provide more meals and PPEs to frontline workers nationwide.

鈥淲e are fortunate that TV5 belongs to the MVP Group of companies that has important utilities in its portfolio 鈥� namely, power, telco and healthcare. All these allied organizations have provided a network of services that enable employees across the group to plan and implement ways of working during this pandemic,鈥� Dino M. Laurena, chief operating officer of Media5 Marketing Corporation, said in an email.

He added that the leadership of Mr. Pangilinan has enabled the organization to embrace change in the current business environment and find ways for their employees to continue to do their roles in spite of the limitations.

鈥淪pecific to TV5, we continue to provide content to the public that keeps them informed and entertained during these challenging times. Our news organization continues to be at the forefront of news gathering to provide information and public service to our audience. Our entertainment and sports divisions continue to produce content that uplifts our audience, keeping them entertained and giving them a sense of hope,鈥� he said.

For Luchi Cruz-Valdes, TV5 first vice-president and head of News & Information,听 Mr. Pangilinan鈥檚 support to them has 鈥渞emained unflinching that not even the pandemic weakened it.鈥�

She added, 鈥淢VP is the kind of leader that inspires loyalty. He could have just given up on us considering our size relative to the rest of his business empire, but he didn鈥檛. On a personal level, I like how he keeps in touch with what people are thinking and saying while keeping his hands off editorial decision-making. No micromanaging there or elsewhere. He keeps his ear on the ground and when he can鈥檛 hear anything for himself, he calls and asks and engages. You can just tell that he is anticipating what can be done and gauging what he himself can do. And he acknowledges where he may have been under- or overestimated himself, and he adjusts.鈥�

As a silver lining, however, it has also revealed ways on how to move forward. Digital connectivity, for instance, has become a boon for governments, businesses, and even individuals seeking to navigate life during the pandemic, with both the public and private sectors of society practically undergoing digital transformation overnight.

PLDT, Inc., the country鈥檚 largest telecommunications, internet, and digital service providers, knows the importance of connectivity in the new normal and has committed to use its network and expertise to support the government鈥檚 COVID-19 response.

For instance, along with Smart Communications, Inc., PLDT has turned over Smart Bro pocket WiFi and PLDT prepaid home WiFi units for use of frontliners and volunteers at the Office of the Vice President鈥檚 drive-thru vaccination site in Harbor Square in Manila, following up on the previous roll out of Smart WiFi connectivity in isolation sites set-up by the Office in Malabon City.

Additionally, the Philippines鈥� first integrated health app, mWell, was launched in partnership with PLDT Home. As a service that provides digital services that enable families to do things better at home via broadband connectivity, PLDT Home is enabling connected families to get free online check-up and consultations with mWell doctors in the areas of primary care, pediatrics, internal medicine, ob-gyn, cardiology, gastroenterology, dermatology, and COVID-19.

The goal is for Filipinos to have an avenue for convenient bookings and safer consultations for health problems. Soon to be launched by Metro Pacific Health Tech Corporation (MPHTC), a wholly-owned subsidiary of Metro Pacific Investments Corp. (MPIC), mWell is an all-in-one app set to offer telehealth to Filipinos during this pandemic through online doctor consultations, health education, wellness programs, online pharmacy services, and more.

Simple and accessible in just a few clicks, mWell app users can not only do video consultation but also buy medicines, access personalized fitness and nutrition programs including COVID-19 assessment, pregnancy trackers, and buy wellness products at the shop by Adobomall with the use of PayMaya for fast, secure, and hassle-free transactions.

PLDT and Smart鈥檚 support to the country鈥檚 fight against the pandemic has also included the rollout of fiber-powered WiFi connectivity to government-run quarantine, swabbing, isolation and vaccination sites, as well as other COVID-19 facilities.

Since last year, PLDT and Smart have been providing connectivity and communications support to frontline agencies and their personnel in different parts of the country to help front liners and patients stay connected despite the challenges of the pandemic.

From the beginning, PLDT and Smart have played a critical part in keeping the public informed of government announcements and COVID-19-related news. To ensure that the public has access to right and up-to-date information, PLDT has provided free access to government and news websites for PLDT Home WiFi and PLDT Home Volume based plans, as well as supporting the Department of Health (DoH) and the 911 National Emergency Hotline of the Department of Interior and Local Government for the launch of a hotline for COVID-19 concerns.

The access numbers for the DoH COVID-19 emergency hotline are 02894-COVID or 02-894-26843, and, 1555. The hotline number 02894-COVID or 02-894-26843 is open to all callers nationwide. The hotline number 1555 is initially accessible only to PLDT, Smart, Sun, and TNT subscribers.

To aid in creating a more efficient communication system among government agencies, PLDT provided free WiFi Internet and landline calls in critical areas including command centers, transportation systems, and health centers in Batangas City, Lucena, Zamboanga, General Santos City, and Davao.

PLDT and Smart鈥檚 connectivity solutions have also been integral to keeping the education system running despite the health and safety precautions during the community quarantine.

Most recently, PLDT Enterprises has extended fiber connectivity and internet solutions to Piddig, Ilocos Norte to support online learning, providing digital services to all 23 barangays to improve municipal governance.听

Another initiative is the mobile truck called 鈥淰ertext on Wheels鈥�, the mobile internet truck deployed in the capital city of Ilocos Norte by PLDT and Smart, in partnership with their provincial distributor in Ilocos Norte Vertext Handyphones under their Learning Access Online (LAO) project.

LAO also provides entrepreneurial training for students for business opportunities as retailers of Smart Load, freelance agents for PLDT Home and installers for Cignal TV. Initially rolled out as a Vertext Handyphones barangay caravan throughout Ilocos Norte, Vertext on Wheels provided free Internet, free use of LTE gadgets, free document printing and discounted load offers to students, among others.

The PLDT-Smart Foundation (PSF) has also been busy supporting communities during the pandemic, as it recently turned over one million pesos in donations to the Philippine National Police (PNP) as part of its 13-year PSF-PNP educational program.

Over the years, PSF has been supporting the dependents of PNP uniformed personnel who were killed in actual performance of duty, complete disability, discharged, wounded or incapacitated in their line of duty, and those dependents who graduated with honors through the PSF-PNP Educational Assistance Program.

Aside from the donation, the PSF also turned over Smart LTE Pocket WiFi units for the scholars. Since 2008, the PSF has supported 639 college scholars.

鈥淐OVID-19 has set our agenda for the foreseeable future. At the outset, our task was clearly to keep people connected as the country went into lockdown. Moving forward, we will grow our business by helping our customers 鈥� and the country 鈥� rebuild their lives and livelihoods with powerful connectivity like fiber, 4G and now 5G, combined with innovative digital solutions,鈥� said Manuel V Pangilinan, chairman of PLDT, Inc. 鈥� Bjorn Biel M. Beltran

Digital transformation, a process that has been decades in the making, has accelerated at an unprecedented pace in the wake of the COVID-19 pandemic. Schools and universities began offering remote learning curricula, companies big and small started adopting new work-from-home models for their employees, and many have transitioned to digital businesses to keep revenue flow.

Yet with new developments come new challenges. The Organisation for Economic Co-operation and Development notes that while on the one hand, digital transformation offers immense potential throughout various aspects of society, on the other, it can also accentuate gaps and issues present in the current system.

鈥淚t is unlikely that economies and societies will return to 鈥榩re-COVID鈥� patterns; the crisis has vividly demonstrated the potential of digital technologies and some changes may now be too deep to reverse,鈥� the organization had stated in its Digital Economy Outlook 2020.

鈥淔aced with a future where jobs, education, health, government services, and even social interactions may be more dependent on digital technologies than ever before, failing to ensure widespread and trustworthy digital access and effective use risks deepening inequalities, and may hinder countries鈥� efforts to emerge stronger from the pandemic.鈥�

Cybersecurity and data privacy are concerns that are increasingly becoming critical in a new digitally-enabled world. Addressing such issues while simultaneously navigating the constantly-evolving needs of society is a challenge that many organizations, both in the public and private sectors, face.

The case is no different in the Philippines, where many organizations are attempting their first foray into the digital world.

鈥淚t is important to note that how companies transform or pivot to digital is not a one-size-fits-all approach. Every industry and individual business will have specific needs to assess, different resources to allocate, and distinct challenges to overcome. Nevertheless, there are some universal concepts that we have witnessed across successful transformations: an ability to recognize new opportunities; the agility to capitalize on them; and the optimal culture to best support the requisite changes. When executed in harmony, they represent the art of pivot,鈥� said TELUS International Philippines.

Accomplishing these goals depends on a number of factors, not least of all smart applications of technology. TELUS International Philippines, a firm that specializes in delivering integrated DX and CX solutions, notes that thoughtful application of technology needs to go hand in hand with continuous digital enablement initiatives to educate and upskill the team members who will ultimately be the ones utilizing these innovations to deliver better services to customers.

The benefits

Pivoting to digital is a monumental endeavor for any company, both in an operational sense and a financial one. This is also partly the reason why many businesses fail in their digital transformation, as many lack the capital and the resources to see the process through.

Yet, that leaves many companies unable to keep up with the demands of the times, which are increasingly reliant on digital platforms and technologies. Many companies keep legacy systems based on outdated technologies, keeping them from the benefits of a modernized IT infrastructure, which TELUS International Philippines points out, is no longer a luxury or an option.

鈥淚t is becoming necessary for day-to-day operations, business continuity, and data security. Additionally, as the customer journey has increasingly moved from in-person to digital transactions, updating a company鈥檚 tech infrastructure is now also directly linked to a company鈥檚 ability to provide the seamless, omnichannel customer experiences that are in-demand by today鈥檚 consumers. Overall, having a strategy to update IT infrastructure will result in increased agility and efficiency while reducing risk and better securing data on a sustainable basis,鈥� the company said.

Businesses aiming to thrive today should recognize how IT modernization aligns a company with omnichannel needs and better positions the brand to meet its business goals. Investing in IT may even directly lead to financial benefits due to enhanced customer experience that can generate increased consumer loyalty and spending, as legacy technology often struggles with the demands of the personalized, seamless, cross-channel customer engagement that is expected today.

The challenges

Security has long been used as a reason companies have hesitated to permit remote working. But amid the pandemic, there was very little choice in the matter. Remote working, a new workplace model enabled by today鈥檚 hyperconnected society, has given companies a method of keeping some of their day-to-day operations unaffected by the pandemic without affecting their bottom line.

Yet as more employees have spread out, security risks have risen exponentially.

鈥淭hat鈥檚 why it is absolutely critical to set up proper user controls and ensure employee devices 鈥� whether those are company-owned assets or the employees鈥� own devices 鈥� are regularly patched and updated,鈥� TELUS International Philippines said.

鈥淎t the same time, we also firmly believe that making your employees partners in ensuring data security and cybersecurity starts with educating them regularly. Helping them understand and appreciate the 鈥榳hys鈥� behind the safety protocols and procedures we implement can make a big difference in how they approach these remote work processes and guidelines.鈥�

Such measures are necessary, but often overlooked, steps in the digital transformation process. TELUS International Philippines added that because of the immediate need for digitalization at the onset of the pandemic, many organizations had to quickly put solutions in place that kept them connected to the business, their customers and one another. Due to the unprecedented rate at which they were forced to adapt, there were difficult trade-offs that had to be made in the short-term to accommodate immediate business needs. Perhaps most notably, cybersecurity was oftentimes deprioritized in favor of expediency.

鈥淭hat鈥檚 the way you end up with a very, very poor long-term design and a very panicked, rushed, unmanageable short-term solution,鈥� the company said. 鈥淵ou鈥檙e in the band-aid business.鈥�

With remote workforces likely becoming a permanent part of business moving forward, it鈥檚 critical for organizations to develop better solutions for data security. One such solution is to create a company culture that is suited for future-proofing the business.

鈥淐ulture is the foundation for long-term success. When you see an extremely agile company, it typically follows that there is something very special about its people and its culture, because, in addition to speed and responsiveness, agility also requires an element of stability,鈥� TELUS International Philippines said.

鈥淭he importance of investing in culture cannot be overstated. A strong corporate culture fostered over time that places people and a shared set of values at the forefront of what it does equates to the ability to innovate, achieve higher customer satisfaction, and ultimately deliver stronger financial performance. Without it guiding the organization and driving decision-making, all other elements can be in place, and yet companies will see few benefits,鈥� it added.

In fact, based on the data gathered by the City of Manila, the district of Sta. Ana has the most heritage sites with 88, followed by the districts of San Nicolas and Malate with 78 and 55, respectively.

The list includes parks, monument, buildings, interiors, and even a vista. Among these are the walls of Intramuros, office buildings in the Binondo and Escolta areas including El Hogar and First United Bldg. (formerly Perez-Samanillo Bldg.), Arroceros Park, Paco Park, churches including Quiapo Church and the Manila Cathedral, the Aristocrat restaurant along Roxas Blvd., the interior of the Playboy Club in the Silahis hotel, and Manila Bay and the Waterfront from Del Pan Bridge to the Cultural Center of the Philippines.

Considered cultural properties under the Philippine Registry of Cultural Property are those that were declared cultural property by the National Commission for Culture and the Arts or National Cultural Agencies (NCAs); that are presumed important cultural property which are currently not declared by the NCCA or NCAs; local cultural property declared by the respective LGUs through executive order, ordinance, or resolution; and registered cultural property which carry significance to local culture and history.

Not only is the city home to a number of other historically-significant monuments, Manila has also been a significant contributor to the country鈥檚 economic development.

Most recently, the City of Manila was recognized by the Department of Trade and Industry as the most competitive highly urbanized city in the country in the Cities and Municipalities Competitiveness Index (CMCI) 2020, an annual ranking of the competitiveness of cities and municipalities in the country.

It also won first place in two other categories 鈥� Most Competitive in Government Efficiency in Highly Urbanized Cities; and Most Competitive in Infrastructure for Highly Urbanized Cities.

The Overall Competitiveness Award was based on four criteria: economic dynamism, government efficiency, infrastructure, and resiliency. The index looks at each city鈥檚 implemented programs and how they have improved through the years, with scores on each pillar determined by the National Competitiveness Council (NCC).

Economic dynamism was scored based on the following factors: cost of doing business, cost of living, increase in employment, financial deepening, local economic growth, local economy size, presence of business and professional organizations, productivity, local economic structure, and safety compliant in business.

For the scoring in the infrastructure category, the availability of basic utilities, education, health, accommodation capacity, information technology capacity, financial technology capacity, distance to ports, LGU investment, road network, and transportation vehicles were considered.

Government efficiency was determined according to the city鈥檚 compliance to business permits and licensing system standards, efficiency in business registration, health services capacity, compliance to national directives, presence of investment promotion unit, the capacity of school services, performance recognition, the capacity to generate local resource, social protection, and peace and order.

Finally, resiliency was based on the city鈥檚 programs to conduct an annual disaster drill, budget for DRRMP, disaster risk reduction plan, emergency infrastructure, employed population, early warning system, land use plan, sanitary system, utilities, and local risk assessments. 鈥� Bjorn Biel M. Beltran

This optimism is particularly evident in the real estate sector, which is among the worst-hit industries by the pandemic due to its effects restricting the construction of new properties as well as leaving many retail and office spaces vacant. According to a report by online property marketplace Lamudi, the industry may see a surge of interest in commercial and residential properties within the country鈥檚 central business districts this year as market sentiment improves.

Lamudi expects more growth opportunities for the real estate market as the Philippines maintains its solid economic fundamentals and rolls out mass vaccination against COVID-19. The online platform sees its page views for residential properties spiking in the first half of 2021 amid growing interest in houses, condominiums, and foreclosed properties, with land having the biggest demand growth between the first to the second half of the year, while foreclosed properties seeing an uptick in the first half.

鈥淐ondos, meanwhile, are projected to have the highest growth from second half of 2020 to second half of 2021,鈥� Lamudi said.

Furthermore, apartment listings grew between the first and last quarter last year, which Lamudi said could be a response to more property seekers looking for investment opportunities or cheaper housing close to their workplaces.

鈥淎s residents in the metro gravitate towards rentals, this type of real estate presents a promising passive income source for investors.鈥�

Indeed, real estate investments will become a crucial force towards directing the pace of economic recovery, according to real estate services firm Cushman & Wakefield. Such investments serve as fuel for various sectors that support the economy and the firm believes that the demand for commercial real estate in the Philippines will once again pick up post-pandemic.

According to Cushman & Wakefield鈥檚 May 2021 Philippine Property Market report, the exposure of the real estate sector in the banking industry reached a 3-year high in June 2020 after it has been on the rise since June 2017. The Bangko Sentral ng Pilipinas reported that lending to property developers rose to P2.2 trillion as of end-June 2020, an increase by 11.2% from P1.98 trillion in June 2019.

Broken down, during the same period, this amounted to commercial real estate loans of P1.42 trillion, up by 11.9% from P1.26 trillion in end-June 2019, and residential real estate loans of P787.9 billion, up by 10.3% from P714.06 billion in end-June 2019.

Overall, the consolidated real estate loan exposure of the Philippines’ major banking industry players in end-June 2020 is recorded at 20.73% of the total loan book, an increase from the 20.31% recorded in the previous quarter. Similarly, the gross non-performing real estate loan ratio of the country’s banks also ballooned to 2.77% in end-June 2020 from 1.74% a year ago.

Property consultancy firm Colliers International, in its first quarter property market report, said that the government鈥檚 vaccination program and economic recovery plans provide a glimmer of hope in the industry, in spite of the current weak office leasing and residential demand.

鈥淭he government鈥檚 vaccination program is providing a glimmer of hope, and economic recovery should also provide a much-needed boost to local investor and end-user demand. In our view, developers should further test demand in the luxury market and become more innovative with promotions and incentives,鈥� Colliers said.

Mid-income to luxury projects are expected to drive residential demand over the next 12 to 24 months. Colliers added that they see a recovery in new residential supply in 2021 as developers are already exploring the viability of new project launches in key areas across Metro Manila.

Meanwhile, e-commerce, outsourcing and data centers are expected to continue driving office demand post-COVID, as Colliers saw the highest transaction level in the first quarter since the lockdown began last year. However, net absorption remained negative because of lease cancellations and/or non-renewals. Colliers further said that it sees net take-up recovering by the end of 2021.

Yet, such a recovery depends entirely on the successful rollout of vaccines across the metro.

鈥淚n our view, Metro Manila鈥檚 office market demand recovery hinges on the pace of the COVID-19 vaccination program. Increasing vaccinations should reduce the number of COVID cases and bolster confidence for companies to return to the office,鈥� Colliers said.

Retail, however, remains uncertain. Physical stores are projected to post higher vacancy numbers as consumers and retailers wait to see what becomes of the crisis. No new retail space was completed in Q1 2021. Colliers said that it expects lockdowns in Metro Manila and subdued consumer confidence to push retail vacancy to 16%, the highest since 2002.

鈥淲e expect demand slowdown and closure of physical stores to keep rents on a downward trend before a slow recovery begins by 2023,鈥� Colliers said. 鈥� Bjorn Biel M. Beltran

The future is digital. That much is evident by how much everyday life has been dominated by online connectivity, particularly during the COVID-19 pandemic. Even before, the world has been at the cusp of what was dubbed 鈥榯he Fourth Industrial Revolution鈥�, a digital revolution which sees the convergence of the physical, digital, and ecological worlds.

As the World Economic Forum puts it, 鈥淔or some time now, we have been in a new stage of transformation where corporations and countries are focused on equipping themselves with advanced technologies and new business models in order to stay relevant and competitive in a fast-changing world.鈥�

In that light, the organization identified COVID-19 as one of the most formidable challenges in recent history to governments, businesses, and society, so much that it is considered by many to be 鈥榯he ultimate tipping point for the 21^st 肠别苍迟耻谤测.鈥�

鈥淭he pandemic is a wake-up call for companies to have a plan to deal with disruptions to ensure business continuity. It is also a watershed moment that will signal the fast-track acceleration process for digitization throughout society,鈥� the World Economic Forum said.

How should organizations devise such a plan? And what does it actually look like for Filipino companies and enterprises?

The 大象传媒 Virtual Economic Forum 2021 Special Edition aimed to answer such questions by gathering experts like Mark Mulingbayan, chief sustainability officer of Manila Water Co.; and Denis Hew, director of the Asia-Pacific Economic Cooperation鈥檚 Policy Support Unit, for a Fireside Chat.

Mr. Mulingbayan, who talked about 鈥淏uilding Brands through Sustainability and Purpose鈥�, pointed out that a future much worse than COVID-19 could be looming on the horizon, should the world fail to mitigate climate change.

Companies have a social responsibility to champion sustainability before the worst can happen. To this end, Mr. Mulingbayan said that Manila Water has been pushing forward its sustainability initiatives since the beginning, and it has shaped the core of how the company has grown over the years.

鈥淲e need to be consistent with our shared value story. That鈥檚 the heart of it all. Our sustainability framework has not changed. It鈥檚 still the same. But the nuances have been developing through the years. And it鈥檚 exciting now that we are moving on to setting new targets,鈥� he said.

Manila Water鈥檚 sustainability framework, he discussed, focuses on key areas, the first of which is centered around servicing the Filipino community. He said that by expanding their services to as many people as possible, even the poor and marginalized communities can be more resilient towards natural disasters.

Another focus area is environmental stewardship. 鈥淚nterestingly, our relationship with the environment is one based on reciprocity. We depend on ecosystem services to provide us raw water, but we also do services to the ecosystem by treating wastewater,鈥� he said.

Most importantly, Mr. Mulingbayan said, they focus on their own employees.

鈥淚f we are to grow in the future, we have to have a team of capable and competent employees who are passionate about the work that we do. It鈥檚 common for all companies to identify talent management as a core sustainability issue,鈥� he said.

鈥淲e communicate with our employees and ensure they know their contribution to the corporate targets, because that is always aligned with our shared value story. At the same time, we try to engage them with our sustainability story. We believe that getting them on the ground and experiencing the impact of our work is the better way to go about it,鈥� he added.

For companies looking to start on their sustainability journey, Mr. Mulingbayan advised looking at the United Nations Sustainable Development Goals and finding out which of the goals are aligned with their business. What is most important is authenticity.

鈥淎 company needs to be aligned with what the society needs, and it needs to be relevant. Sustainability work can be a lot of things, or you can do a few things that really matter. A company needs to identify the issues with their stakeholders. A company cannot do it alone,鈥� he said.

Building on that note, Mr. Hew, who discussed 鈥淗elping SMEs Survive and Thrive through Digital Tools: An APEC Perspective,鈥� explored how smaller businesses, particularly micro, small, and medium enterprises (MSMEs) can utilize the tools available during this digital revolution to recover from the effects of the pandemic and thrive in a post-COVID-19 world.

鈥淥ne of the main drivers that accelerated the pace of digitalization for SMEs is COVID-19, which unfortunately continues onto this year. Companies have adopted digital tools to stay in business essentially. It helps them keep afloat during this difficult time,鈥� Mr. Hew said.

鈥淪ome of these digital tools have become extremely critical to business, whether it鈥檚 digital payments, fintech financing, logistics services, etc. It provides a kind of lifeline for these businesses to be able to continue operating.鈥�

Unfortunately, the rapid transition has created unforeseen challenges that many enterprises are not ready for.

鈥淐ritical challenges like data privacy, cybercrime, some of these things have to be taken into account. Unfortunately, SMEs have become the prime target for cyberattacks because they lack the resources to combat them,鈥� he said.

Mr. Hew said that APEC鈥檚 MSME working group has launched initiatives to support MSMEs in the region, including an online repository of information on trade regulations and training and resources for any business.

Among these is the multi-year The Boracay Action Agenda to Globalize MSMEs program, which aims to prepare the region to take advantage of the new opportunities available to them and to allow these enterprises to more significantly participate in global trade.

The Action Agenda aims to build on APEC鈥檚 extensive work on regional economic integration and ensure that efforts are relevant and responsive to MSMEs鈥� needs. To promote the internationalization of MSMEs and integrate them into global value chains, the program will seek to address barriers to trade and investment that disproportionately impact MSMEs in comparison to larger businesses, reduce and eliminate tariffs and non-tariff barriers in the region, and establish a more trade facilitating environment in alignment with the WTO Trade Facilitation Agreement.

鈥淥ne important point to recognize is that COVID-19 pandemic has increased the inequalities that we have seen before. It is crucial for organizations like APEC to try to address those gaps, meaning better access to education, training that includes digital literacy, as well as better access to healthcare and other types of infrastructure. That is crucial,鈥� he said.

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By Bjorn Biel M. Beltran, Special Features Writer

Digitalization has become the life-saving buoy against the tide of the COVID-19 pandemic for the business world, keeping companies operational even as quarantine measures restricting face-to-face interactions have shut down most offices everywhere.

In fact, more companies are realizing the potential of the digital world towards enhancing their capabilities. In a recent report, the International Data Corporation said that it expects global direct digital transformation investment to grow at a compound annual growth rate of 15.5% from 2020 to 2023, to approach $6.8 trillion as companies build on existing strategies and investments, becoming digital-at-scale future enterprises.

What does this entail for a country like the Philippines?

The recently-concluded 大象传媒 Virtual Economic Forum 2021 Special Edition gathered three experts to illustrate what a digitally-capable future looks like for the country, and the steps needed before it can achieve it. In the first of such Fireside Chats, Karrie C. Ilagan, managing director Cisco Philippines, discussed the importance of digital resilience in a post-COVID-19 world.

鈥淭his pandemic has changed the world forever. The digital transformation that is happening now has dramatically altered how we work and live. It has changed the role of many businesses because the needs of their customers are continuing to evolve rapidly. There has never been more urgency for organizations to deliver digital-first services,鈥� Ms. Ilagan said.

She added, 鈥淒igital resilience is about being ready for change and disruption. It鈥檚 about being ready to adapt and find opportunities in rapidly shifting environments.鈥�

Ms. Ilagan pointed out the importance of building a solid digital infrastructure for a company to find and take advantage of opportunities provided by constantly evolving technologies, whether it is by augmenting operations via digital networks or utilizing cloud services.

To this, such an infrastructure must have security and privacy as its core.

鈥淐ybersecurity is at the core of the success of every digital effort,鈥� she pointed out. 鈥淚 don鈥檛 think anybody can successfully be digitally transformed unless they take to heart cybersecurity.鈥�

Because the scope of the digital world has expanded to encompass even sectors like education, Ms. Ilagan said that there is an urgent need now to simplify systems, placing a strong focus on creating better cybersecurity. She called on organizations, industry leaders, and government officials to educate the public about data security and privacy to create a more digitally resilient society.

Cisco鈥檚 UGNAYAN 2030 program is one such effort aimed at launching key digitization initiatives to help the economy, create jobs, and promote innovation and next-generation skills development across the private and public sectors.

To give the government鈥檚 perspective on the country鈥檚 digitalization journey, Rosemarie G. Edillon, undersecretary for policy and planning of the National Economic and Development Authority, discussed the long process of digitalizing the Philippine economy.

Ms. Edillon was quick to point out that the demand for and the usage of digitalization is not as widespread as it appears in Metro Manila.

鈥淚f you look at all across the country, that is not the case. That may be true here in NCR (National Capital Region), but we found that there is very low usage in digital payments and e-commerce outside the capital. Even those putting their products online, they do not allow digital payments and instead prefer cash-on-delivery,鈥� Ms. Edillon said.

鈥淭he first thing we need to do is increase this demand, and at the same time improve our digital infrastructure,鈥� she said.

She pointed out that around 64% of barangays in the country do not have telecommunication towers to access the Internet, while 88% of barangays lack free Wi-Fi zones for their residents and 70% of barangays do not have fiber optic cables installed. The huge disparity between these areas and more urbanized areas are creating an increasingly wider digital divide that separates those who can take advantage of digital transformation and those who cannot.

In this effort, both the public and private sectors have roles to play.

鈥淲e鈥檝e been consistent that the main driver of the economy is the private sector and the role of government is to steer the economic triggers towards the direction where we want it to go,鈥� she said.

The government, for its part, needs to lay down the policy framework and code of conduct for the players participating in the digital economy. This includes promoting technological adoption among Filipinos, educating them on cybersecurity and digital literacy, and bridging the digital divide by streamlining the process of constructing cell towers.

Ensuring consumer protection during online transactions, making digital transformation inclusive, and trying to bring down the cost of connectivity, she said, are policies and programs that the government can enact to take the country further towards a digital economy.

Mamerto E. Tangonan, deputy governor for payments and currency management sector at the Bangko Sentral ng Pilipinas, discussed this further as he talked about the central bank鈥檚 Digital Payments Transformation Roadmap 2020-2023.

Mr. Tangonan said that the volume of digital payments in the Philippines has increased from a 25 million monthly average with a value of $5.92 billion in 2013 to 782 million in the first half of 2020, amounting to $29 billion.

The 2019 BSP Financial Inclusion survey found that 69% of adults own a mobile phone and about 53% use the Internet. Meanwhile, only 12% of mobile phone owners and only 9% of Internet users use these technologies for financial transactions. This is a huge opportunity for financial institutions to reach unbanked Filipinos.

Mr. Tangonan said that the roadmap is aimed at creating financial inclusion through the development of an accessible and secure digital payments framework by building the necessary digital finance infrastructure and digital governance and standards. Future payments digitalization initiatives will include PESONet multiple batch settlement, bills payments, request to pay, and direct debit.

鈥淒igital technology can massively promote financial inclusion, but there is a need to deliberately and purposefully harness this potential by ensuring that anyone can readily open and use an account through digital channels for various financial transactions,鈥� he said.

Mr. Tangonan added, 鈥淭his roadmap contributes to [central bank] Governor Diokno鈥檚 strategic direction of bringing the BSP closer to the Filipino people.鈥�

The impact of the coronavirus disease 2019 (COVID-19) pandemic can be felt in all aspects of the business community, even as the rollout of vaccines begins in earnest. Though the end to the crisis may be in sight, it is certain that many of the changes that have happened over the past year will leave a lasting legacy for years to come.

In the insurance industry, where there is a heavy emphasis on the client-seller relationship, the challenge of maintaining such relationships over the government-imposed community quarantine is considerable.

鈥淭raditionally, selling insurance relies heavily on the relationship between a seller and a customer. Sticking to the old way of insurance selling during this time may disrupt the customer journey at some point, especially since lockdowns pose a challenge to face-to-face meetings,鈥� Surendra Menon, chief executive officer of BPI-Philam Life Assurance Corp., said in an e-mail.

Sun Life of Canada (Philippines), Inc. Chief Executive Officer and Country Head Benedict C. Sison further noted that severe mobility restrictions made it difficult to reach the insuring public, hampered the licensing and recruitment of advisors, and interrupted their client servicing.

鈥淟ockdowns also redefined the definition of the office, forcing insurers to pivot their operating models. Market volatility kept clients on the sidelines and cut down investment earnings,鈥� he said.

Yet, one way that the industry has adapted to these challenges, Mr. Menon pointed out, is through digitalization.

鈥淏PI-Philam began embracing digital transformation before the pandemic even began, so shifting to online selling was not really a huge concern. However, we recognized deep into the lockdown that there was still work to be done and so we focused our time and resources in empowering our digital capabilities,鈥� he said. 鈥淭hrough digital selling, insurance becomes more accessible to customers and allows more Filipinos to stay protected from the unexpected.鈥�

Innovation has become a major theme throughout the business world during the COVID-19 crisis, and it is none more evident in the insurance industry. Mr. Sison said that the challenges imposed by the pandemic have led to opportunities in creating new innovative solutions and digital initiatives aimed at serving their clients.

All the while, regulators such as the Insurance Commission welcomed the digitalization of the industry, even going as far as introducing temporary licensing to advisors.

鈥淔or us at Sun Life, it was also a chance to try a new model for our workforce. While we already had a work-from-home program in place, we were able to test our limits as the entire organization went into telecommuting mode during the first few weeks of the lockdown,鈥� he said.

On the customer side, the uncertainty brought about by the pandemic has increased the public鈥檚 consciousness about health and security, leading to an increase in the appreciation for insurance products.

鈥淲hen lockdowns began in March 2020, most local insurance companies鈥� sales declined. This was expected since cash flow became an issue in the short term. However, because of the uncertainty surrounding COVID-19, more customers were made more aware of the benefits of insurance, which boosted consumer curiosity for protection products,鈥� Mr. Menon said.

鈥淭here was a sharp increase in curiosity for health and protection solutions, which we experienced when we launched MedLife Protect Plus, our investment-linked life and health insurance product that gives considerable protection and better access to medical care with minimal out-of-pocket expenses. When our Bancassurance Sales Executives (BSEs) touched base with our clients, the feedback they got was that protection products were becoming more relevant in their lives due to the risks brought about by the pandemic,鈥� he added.

This shift in public consciousness was evident all over the industry.

鈥淲e experienced a shift in preference to more health and traditional products. Likewise, we saw more participation from our younger client base. For Sun Life, market volatility also translated to a negative impact on the value of assets under management and unmet investment earnings plans. We have been providing clients information to reduce the paralysis in making financial decisions by raising their awareness of other options,鈥� Mr. Sison pointed out.

鈥淭he heightened appreciation for health also allowed the company to launch a number of health solutions, further enabling us to achieve a healthier balance between traditional and VUL (Variable Unit Linked) products in a primarily VUL market,鈥� he added.

The economic impact of the global crisis is likely to be felt for years to come. Until an economic recovery can be achieved swiftly and millions of affected Filipinos can recover their livelihoods, the uncertainty over the future will linger.

Mr. Sison said that while this lasts, health will remain a top priority among Filipino families as many Filipinos realize that nothing is more important than their and their loved ones鈥� life and health.

鈥淲ith the economic impact of this crisis, many Filipinos realized their financial vulnerability and this has made them more appreciative of the security that our financial solutions can offer, particularly those that provide some savings or investment component, as well as health. In a survey we conducted with our clients, one thing they said they would really like to have more of is financial advice,鈥� he said.

鈥淭his is most relevant to our industry as protection of life and health is what insurance is fundamentally all about,鈥� he added.

The organization noted that more than half of all road traffic deaths and injuries involve vulnerable road users, such as pedestrians, cyclists and motorcyclists and their passengers, with the young particularly vulnerable on the world鈥檚 roads.

In fact, road traffic injuries are the leading cause of death for children and young adults aged five to 29. According to data, young males under 25 years are more likely to be involved in road traffic crashes than females, with 73% of all road traffic deaths occurring among young males in that age. Developing economies, such as the Philippines, record higher rates of road traffic injuries, with 93% of fatalities coming from low- and middle- income countries.

The loss of life and human suffering caused by road traffic injuries also bears another cost; road traffic accidents also incur a heavy economic burden on victims and their families, both through treatment costs for the injured and through loss of productivity of those killed or disabled. More broadly, road traffic injuries have a serious impact on national economies, costing countries 3% of their annual gross domestic product.

In the Philippines, the Metro Manila Accident Reporting and Analysis System (MMARAS) recorded a total of 65,032 accidents in the country鈥檚 main metropolitan area in 2020, resulting in the death of 337 people. Broken down, Metro Manila averaged 178 road-crash incidents per day, with 50,230 cases resulting to damage to property, and 14,465 resulting in non-fatal injury.

While this number is far lower than the 121,771 total recorded accidents in 2019 (a drop of 46.6%), it bears noting the nationwide lockdown measures implemented throughout 2020 as a response to the COVID-19 pandemic drastically reducing the number of cars on the roads. Moreover, public transportation also saw a temporary ban during the lockdown.

This is partly the reason why the top month in terms of accidents in 2020 is February, with a total of 9,315 incidents. This is followed by January and October with 7,283 and 6,285 cases, respectively. Meanwhile, the lowest accident total was recorded in April 2020 during the height of the quarantine, with only 1,535 incidents recorded during the month.

Reflecting the WHO finding about vulnerable road users, the country also saw the number of motorcycle-related fatalities in Metro Manila rise slightly in 2020 in spite of the lockdowns. With the limited availability of public transport and physical distancing requirements, more people have shifted to two-wheelers as a method of mobility.

The 2020 MMARAS data showed that the number of fatal accidents involving motorcycles reached 229 last year, compared with 221 in 2019 or a 3.5% increase. However, the total number of motorcycle-related road crashes were recorded at 22,080 in 2020, versus 31,279 in 2019, still representing a 29.4% decrease overall. Accidents that caused non-fatal injuries similarly fell by 24.9%, 11,032 in 2020 versus 14,691 in 2019.

About 13,004 people were involved in these accidents, or an average of 36 people per day. The corresponding figures for 2019 are 14,553 people in total and an average of 40 per day.

According to the data, the highest number of deaths from motorcycle accidents occurred at night from 8 p.m. to 9 p.m. and from 10 p.m. to 11 p.m., during which 17 fatalities were recorded. Sideswipes caused the most damage to property in 3,420 cases, and injuries in 2,842 cases. Meanwhile, collisions with objects resulted in the most fatalities or 41 cases.

Overall, the massive Quezon City logs the most road crashes in 2020 with 22,494 cases, with Manila following in at a distant second with a total of 6,655 incidents, and Makati City with 4,508 incidents. Pateros recorded the fewest number of accidents last year with just 115.

Towards safer roads
To reduce the number of road accidents is the reason why the country committed to adopt the Stockholm Declaration, which outlines the global road safety goals from 2020 to 2030, aiming to halve road crash fatalities around the world by the end of the decade.

鈥淩oad safety is one of the priorities of the current administration鈥� [The Department of Transportation] will take part in the full implementation of the 2030 Agenda,鈥� the department had stated in reports.

The Stockholm Declaration calls for a new global target to reduce road traffic deaths and injuries by 50% by 2030. In addition, it invites strengthened efforts on activities in all five pillars of the Global Plan for the Decade of Action: better road safety management; safer roads, vehicles and people; and enhanced post-crash care. It also calls for speeding up the shift to safe, affordable, accessible and sustainable modes of transport like walking, cycling and public transport.

鈥淧olitical will is needed at the highest level of government to achieve this, both by investing in evidence-based interventions to make roads safe and considering ways to shift to modes of transport that are better for health and the environment and the overall livability of cities,鈥� WHO Director-General Dr. Tedros Adhanom Ghebreyesus said in a speech.

鈥淲ith the right leadership, transport systems can be configured or reconfigured in such a way as to reduce reliance on cars. However, it is only when countries build in the safeguards and implement the best practices to enhance road safety, that we can offer walking, cycling and using public transport as viable options for most trips. When we are able to ensure this, we help our societies move towards a vision of not only safe, but also accessible, affordable and sustainable mobility,鈥� he added.

Recently, President Rodrigo R. Duterte signed into law Republic Act No. 11229 or the Child Safety in Motor Vehicles Act, which mandates the use of child restraint systems (CRS) for children 12 years old and below with a height of 4 feet 11 inches and below.

This puts the country a step further towards the 2030 goal. However, implementation of the law had been deferred following the economic impact of the COVID-19 pandemic taking a harsh toll on Filipinos. It remains to be seen when the law will be implemented, and how significant the effect it will have on the safety of the country鈥檚 roads. 鈥� Bjorn Biel M. Beltran

By Bjorn Biel M. Beltran

Though far from a complete panacea to the country鈥檚 troubles during the COVID-19 crisis, digital technology and connectivity have been instrumental in minimizing the pandemic鈥檚 impact. In fact, the rapid adoption of digital technologies was recommended by the World Bank to help the Philippines overcome the impact of the COVID-19 pandemic, recover from the crisis, and achieve its vision of becoming a middle-class society free of poverty.

A joint report released by the World Bank and the National Economic and Development Authority (NEDA) in October last year, titled 鈥淎 Better Normal Under COVID-19: Digitalizing the Philippine Economy Now,鈥� found that the use of digital technologies such as digital payments, e-commerce, telemedicine, and online education, has risen in the country, softening the pandemic鈥檚 blow to individuals, businesses, and the government.

鈥淭his pandemic has caused substantial disruptions in the domestic economy as community restrictions have limited movement of people and reduced business operations nationwide. As we are now living with the new normal, the use of digital technology and digital transformation have become important for Filipinos in coping with the present crisis, moving towards economic recovery, and getting us back on track towards our long-term aspirations,鈥� NEDA Undersecretary Rosemarie G. Edillon said in the report.

However, the present 鈥渄igital divide,鈥� which separates those who have access to the internet and those without, is hindering the potential of digital technology to give Filipinos equal opportunities.

鈥淚nternet connectivity 鈥� the foundation of the digital economy 鈥� is limited in rural areas, and where they are available, services are relatively expensive and of weak quality,鈥� said Ndiame Diop, World Bank country director for Brunei, Malaysia, Philippines and Thailand, during the 大象传媒 Virtual Economic Forum.

鈥淯pgrading digital infrastructure all over the country will introduce fundamental changes that can improve social service delivery, enhance resilience against shocks, and create more economic opportunities for all Filipinos,鈥� he added.

Bridging the digital divide

As one of the country鈥檚 major telecommunications providers, Globe Telecom, Inc. is all too aware of this digital divide. The company launched a three-pronged strategy in 2020 to improve digital connectivity and data experience for Filipinos.

鈥淲e are committed to doing aggressive cell site builds which is why our capex has been increasing since last year,鈥� Globe President and Chief Executive Officer Ernest L. Cu said.

鈥淚n addition, we are upgrading our mobile network to 4G/LTE and 5G using many different frequencies since 3G technology for mobile data is already obsolete. With the newer technologies, we will be able to deliver better data and faster browsing speeds to our customers,鈥� he added.

Globe built close to 1,300 new towers in 2020 or 18% more than 2019. In addition, the company said that it has upgraded over 11,500 sites with 4G/LTE, resulting in an improved network experience for its customers.

On the home connectivity front, Globe is also investing in more fiber lines to Filipino homes nationwide, as well as upgrading the lines of existing qualified customers still using copper lines to fiber at no additional cost to the customer.

鈥淥ur commitment in 2021 is to build an additional 2,000 sites and one million fiber lines for home broadband,鈥� Mr. Cu said, noting the considerable challenge this commitment requires.

Building more towers or sites requires the availability of strategically located property to put them up, Mr. Cu pointed out, and such locations are necessary to improve access to connectivity in the country.

鈥淲e still encounter difficulty in entering some gated subdivisions and villages, and securing the approval of homeowners. Vertical building developments like condominiums must also include broadband connectivity during the planning stage of development instead of post-development. This mindset has to change. Today, connectivity is an essential need just like light and water. So Internet connection has to be treated on the same level as other utilities and not just a 鈥榥ice to have鈥�,鈥� Mr. Cu said.

Regardless, the company remains confident that five years down the line it can equip more homes with increased fiber connectivity and see a bigger 5G footprint across the country.

5G is the next generation of wireless technology that promises mobile data speeds of up to 100 times faster than 4G and a substantial reduction in latency, or a measure of delay or the amount of time required for data to get to its intended destination.

鈥淲ith these two capabilities, the Filipino will be able to enjoy better video streaming, downloading and surfing, but also a new range of future technologies and uses like self-driving cars, connected cities and so much more,鈥� Mr. Cu said.

鈥淲e believe that the country is now ready for a digital transformation because the level of adoption across all market segments has been tremendous. The use of new technologies like 5G is crucial because of its capabilities and overall better experience. The continued reduction in the prices of 5G-capable smartphones and the rapid deployment of the 5G network across the country augurs well for the country as more Filipinos will enjoy the benefits of this technology,鈥� Mr. Cu added.

There are few things in history that have caused a titanic upheaval to modern society like the coronavirus disease 2019 (COVID-19). Aside from plunging the world economy into the worst global recession since the Second World War, according to the World Bank, the pandemic has also exacerbated the risks associated with a decade-long wave of global debt accumulation, as well as steepening the long-expected slowdown in potential growth over the next decade.

In his foreword to this year鈥檚 Global Economic Prospects report, World Bank Group President David R. Malpass noted that 鈥渕aking the right investments now is vital both to support the recovery when it is urgently needed and foster resilience. Our response to the pandemic crisis today will shape our common future for years to come. We should seize the opportunity to lay the foundations for a durable, equitable, and sustainable global economy.鈥�

For the Philippines in particular, a comprehensive and coordinated effort between the public and private sector is necessary to rekindle the growth momentum that was lost to the COVID-19 lockdowns. Wilfredo A. Baltazar, Audit & Assurance partner at Deloitte Philippines, pointed out how integral the accounting industry is to this endeavor.

鈥淎ccounting has always played an important role in keeping businesses running 鈥� from small start-up entities to listed multinational corporations. As accountants and auditors, we are keenly aware of the importance of keeping our services going in support of those businesses, in support of our clients,鈥� he said in an e-mail.

Accounting, he explained, involves a series of processes 鈥� from recording to summarizing, to analyzing, and lastly, to the reporting of financial information. In order for auditors to issue an opinion as to the fair presentation of the financial statements, accounting firms need to follow this process and consider relevant accounting standards (e.g., Philippine Financial Reporting Framework or PFRS) and statutory requirements from the government bodies (e.g., the Bureau of Internal Revenue or BIR, and the Securities and Exchange Commission or SEC) that apply to their clients.

鈥淐OVID-19 has significantly affected this accounting process, resulting in additional disclosures recognition and measurement requirements to maintain and achieve the fair presentation of the financial statements,鈥� Mr. Baltazar said.

One of the significant changes in financial reporting involves taxes. On March 26, 2021, President Rodrigo R. Duterte signed into law Republic Act (R.A.) 11534, also known as the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE Act, which reduced the corporate income tax rates and rationalized the current fiscal incentives to provide additional COVID-19 related reliefs to taxpayers. This resulted in additional disclosures in annual financial statements ending Dec. 31, 2020, in compliance with the PFRS (i.e., Philippine Accounting Standards 10 or Events After Reporting Period) as well as a change in the amount of tax to be filed and paid to the BIR.

There was also R.A. 11494 or the Bayanihan to Recover as One Act, which directed all banks, financing companies, lending companies, real estate developers, insurance companies, pre-need companies, and other public and private financial institutions to grant a one-time grace period of 60 days for the payment of loans falling due on or before Dec. 31, 2020 without interests, penalties, and other charges.

鈥淭his was a challenging job before the coronavirus pandemic and the health crisis has only made it tougher,鈥� Mr. Baltazar said. 鈥淣evertheless, in order to sustain, and in some cases, increase the efficiency and effectiveness of the operation, digitalization and technology have played a critical role in the accounting industry.鈥�

He noted that the SEC recently launched its Online Submission Tool (OST), which allows companies to file and submit their Annual Financial Statements, including other reportorial requirements such as the General Information Sheet and other annual reports, online, in recognition of the current challenges surrounding movement and face-to-face transactions. This technology enables the SEC to continue operating and serving the public while ensuring the observance of the health protocols implemented throughout the country.

Another way technology is reshaping the accounting landscape is through the transition of office-based work to remote work-from-home setups.

鈥淲e believe remote work is one of the more notable changes to come out of this crisis. This has been the dominant mode of work in the accounting industry during the COVID-19 pandemic. On top of health and safety issues, working from home is convenient for some accounting professionals; it allows them to get a better handle of their work-life balance,鈥� Mr. Baltazar said.

Yet, such drastic changes can also have disadvantages. Mr. Baltazar noted that some professionals have admitted that they find it more conducive to work in an office, that they find it difficult to transition to work-from-home because they鈥檙e surrounded by distractions, making it difficult for them to concentrate and be productive.

鈥淎nother change we saw during the pandemic is the quick adoption of new technology. Accountants generally go through voluminous paperwork, whether electronic or hard copy, to get their work done,鈥� he added.

With the pandemic, majority of the paperwork and even the procedures that needed to be conducted by accounting firms had to be done online and virtually. Several companies have incorporated virtual communication applications and other digital tools into their operations to carry out essential procedures involving their accountants, such as vouching, tracing, stocktaking, etc.

How long these changes last, Mr. Baltazar noted, will depend on the ability of the national government to control the spread of COVID-19.

鈥淎ccounting post-COVID will likely entail more use of virtual communication and collaboration tools amongst co-workers and clients, including client onboarding processes,鈥� he said.

鈥淩ight now, besides still battling the spread of the coronavirus, the world is also grappling with vaccine shortage and vaccine hesitancy. People are still living with a lot of fear and uncertainty so we expect remote work to be the preferred option for many. As such, virtual communication and collaboration tools, and other digital technology will continue to dominate,鈥� he added.

The impact of the coronavirus disease 2019 (COVID-19) pandemic has created lasting waves on the worldwide economy. Entire industries are still dealing with its effect on their operations. Most have moved online as a response to imposed global lockdowns and have had to quickly innovate according to a completely new digital and social landscape.

The real estate industry is in a similar position. Social distancing rules have caused significant disruptions in sales operations and consumer demands. With many businesses transitioning to virtual office meetings and working from home setups, commercial real estate has crumbled under the abrupt change in the way people work. Meanwhile, homebuyers are considering entirely new factors in their real estate purchases such as health and sanitation, ease of access to necessities like groceries, and properties that offer opportunities for a more meaningful work-life balance.

鈥淧roperty insiders worldwide have noted an increased preference by homebuyers for properties that offer better opportunities for life-work balance now that most of the population are working, studying, or conducting business from home,鈥� David L. Rafael, president and chief executive officer of AboitizLand, Inc., said in an e-mail.

鈥淔amilies are placing a premium on health and wellness and it seems that Filipinos will be willing to cut back on other discretionary spending in favor of investing in a larger dwelling place. They also put more consideration into the number of amenities and open spaces in a development,鈥� he added.

There is considerable pressure then for developers to continuously adapt to the rapid changes in the landscape. Mr. Rafael noted that real estate developers in the country have adapted fairly to the disruptions brought about by the pandemic, wherein all players in what was essentially a brick-and-mortar-oriented industry very quickly adopted virtual means of continuing operations such as online marketplaces, social media platforms, virtual tours, and online payment systems.

Global management consultancy firm McKinsey & Company pointed out that most real estate players around the world have been smart to begin with decisions that protect the safety and health of all employees, tenants, and other end users of space. Yet, it remains to be seen how such players can maneuver best in the post-pandemic world.

鈥淭he smartest will now also think about how the real estate landscape may be permanently changed in the future, and will alter their strategy. Those that succeed in strengthening their position through this crisis will go beyond just adapting: they will have taken bold actions that deepen relationships with their employees, investors, end users, and other stakeholders,鈥� McKinsey noted in an article on their website.

In AboitizLand鈥檚 case, Mr. Rafael said that the company has made a quick pivot almost overnight to take their entire sales operation online, aiming to continue taking these steps forward by housing the entire customer homebuying journey in a single platform for its vecinos (Spanish for neighbors; a term coined by AboitizLand to mean its clients) 鈥渢o make the process truly safe, convenient, and contactless for them.鈥�

Technology is proving to be an invaluable tool for the industry in creating the blueprints for survival. Global professional services firm PricewaterhouseCoopers (PwC) notes in their Emerging Trends in Real Estate 2020 survey that some large players in the real estate industry are making significant investments in technology companies 鈥� in some cases through investment funds or accelerators 鈥� with the amount of investment activity rising quickly.

鈥淲ith customers looking for digitally-enabled and mobile-friendly spaces, interviewees are introducing (or at least exploring) new applications across the technology spectrum. Much of the activities cited by interviewees revolve around smart home and smart building applications aimed at energy efficiency, typically by embedding IoT-powered sensors into their systems,鈥� PwC said.

Now more than ever, developers are aware of the value of data and analytics to get a clearer picture of the property landscape. McKinsey notes that as the COVID-19 situation develops, the industry could see further redirection. For example, within commercial office space, the multi-year trend toward densification and open-plan layouts may reverse sharply, as public health officials may amend building codes to limit the risk of future pandemics, potentially affecting standards for HVAC (heating, ventilation, and air-conditioning), square footage per person, and amount of enclosed space.

鈥淎t the same time, just as baby boomers age into the sweet spot for independent and assisted living, fear of viral outbreaks like COVID-19 may prompt them to stay in their current homes longer. It is possible that demand for senior living assets could dampen, or the product could change altogether to meet new preferences for more physical space and more-intensive operational requirements. It is also possible that senior-living facilities could prove they are best able to handle viral outbreaks, accelerating demand,鈥� McKinsey said.

Furthermore, the pandemic could have a massive influence in the consumer habits that affect demand for real estate assets like hospitality properties and short-term leases. The company pointed out that even a short moratorium on business travel could have lasting impact on the industry when alternatives such as video conferences prove sufficient or even preferable among consumers. Near-shoring of supply chains may further reduce demand for cross-border business travel, and consumers who are afraid of traveling overseas may shift leisure travel to local destinations.

鈥淲e have seen shifts in the preferences of property seekers that we believe are trends that will continue well into the future,鈥� Mr. Rafael said.

鈥淪ince the start of the Enhanced Community Quarantine, the market has been looking for living spaces that are more spacious than the constricting confines of a condo unit. With the prevalence of online modes of work, business and study, choosing a home outside of the big megacities will continue to be a trend, as government infrastructure programs continue to support these cities鈥� decongestion, and promote economic progress in next-wave growth areas like Central Luzon and Batangas. AboitizLand鈥檚 communities, strategically located in these up-and-coming centers, offer options for property seekers looking to relocate there,鈥� he added.

It is in response to such trends that AboitizLand鈥檚 master-planned communities come to follow new urbanism principles, which puts a premium on a wealth of amenities; walkability; and an abundance of open, green spaces.

鈥淎boitizLand鈥檚 digital transformation accelerated very quickly as a consequence of the pandemic. AboitizLand opted to turn this disruption into an opportunity for innovation by fostering a digital culture that will translate to better service for its vecinos,鈥� Mr. Rafael concluded.

The long-term ramifications of these disruptions are hard to predict. Yet as thanks to technology and the breadth of available behavioral data, real estate firms like AboitizLand can use analytics to generate fact-based insights and perspectives that can inform targeted decisions, rather than a one-action-fits-all-vecinos approach.

鈥淪ome landlords are now starting the process of thinking ahead to when the crisis is over. Strategic review processes aim to understand how real estate usage might change going forward,鈥� McKinsey noted.

鈥淲hile uncertainty currently reigns, by employing a range of creative personnel and using new methodologies 鈥� such as deep design interviews 鈥� business leaders may find new and more predictive insights,鈥� it added.

While the overall damage COVID-19 has done to the country remains untold, the good things that have come in response to it can already be seen.

Policy makers and industry leaders have already seen the importance of supporting the country鈥檚 frontline workers and healthcare professionals. The rapid rise of digitalization has helped both the public and private sectors in their efforts towards supporting vulnerable communities, and has even opened avenues for Filipinos to make extra income during the crisis.

Technology has played and continues to play a major role in the development of such changes. Mar-Len Abigail Binay, mayor of Makati City, said during a session of 大象传媒 Insights that Makati relies heavily on new technologies for its COVID-19 response initiatives such as the locally-developed COVID-19 case tracker, the city鈥檚 “U Make Makati Safe” contact tracing website, and the GIS Mapping for the city鈥檚 vaccine inventory.

鈥淎s a champion of smart and adaptive governance, I believe that the impact of technology in the healthcare sector is crucial to preventing local transmission and mitigating the socio-economic effects of the crisis,鈥� she said.

The second and final session of 大象传媒 Insights’ two-part online series themed “The Impact of Technology on the Healthcare Sector”, with the topic “Technology’s Key Role in Public Health Innovation”, aimed to show how the public and private sectors continue to collaborate for a better and modernized public health system in the country.

Ms. Binay pointed out that innovations such as a health information management system and telemedicine and telehealth platforms could address pressing concerns with public health.

Telemedicine and telehealth allow physicians and healthcare professionals to practice medicine using electronic and telecommunications technologies to deliver care remotely. A physician in one location can use telehealth to deliver care to a patient at a distant site through the internet, therefore giving more people access to medical care and advice.

鈥淓ven before the pandemic, we already saw the need for telemedicine to address the issue of the city鈥檚 scarce resource of doctors. We were a little bit prepared when the pandemic hit, but not as much as I would have wanted,鈥� she said.

The issue of a lack of doctors and other healthcare professionals has been a prevailing one, yet it seems that only when the pandemic hit did everyone realize the gravity of the problem. Jay Fajardo, co-founder and CEO of telemedicine platform Medifi, noted that as of April 2020, the Philippines had a ratio of about six doctors per 10,000 patients.

鈥淲hen we started Medifi in 2015, we set out to help prevailing problems that the Philippines experiences with regards to healthcare, particularly access to doctors. The ratio of doctors to patients in our country is very low, and we see Medifi as a huge force multiplier and reach multiplier for physicians and their patients,鈥� he said.

Medifi is a telemedicine platform that enables patients to remotely connect with their doctors and conduct secure and meaningful medical consultations on their mobile phone. Yet before the pandemic, Mr. Fajardo admitted that they had trouble convincing doctors to use their platform. Only when COVID-19 forced the country into a lockdown last March did its pool of healthcare professionals grow from about 425 to more than 3,000.

鈥淟ast year in March, our platform played a heightened role because of the quarantine. Not only were patients having a hard time going to the clinics because of the quarantine, but doctors themselves were looking for a way to continue their practice,鈥� he said.

Medifi, he further noted, aimed to fulfill a triage role to filter out as much as 70% of avoidable visits to the hospitals and clinics to avoid the overloading of the public healthcare system. Currently, the platform serves more than 37,000 patients.

鈥淭echnology and public health are not often mentioned in the same breath and yet technology adoption and economic growth have become more correlated,鈥� Patrick Nico Alcoseba, vice-president and head of ICT Business at PLDT Enterprise, said.

Mr. Alcoseba said that while there are a number of foundational aspects to health technologies, what makes the biggest positive impact are the ones that enhance the capability of patients, doctors, healthcare providers, and other institutions to connect and communicate, along with technologies that can multiply limited resources across geographies.

鈥淪ince technology has the power to multiply benefits across the entire ecosystem and health tech is a growing area of importance across the globe managing the health of the nation, it has become very intertwined with managing the health of its economy.鈥�

Dr. Raymond Francis Sarmiento, director of the National Telehealth Center, further pointed out while technology furthers innovation in the healthcare industry, it falls to the government to put forward new standards in the implementation of such technologies.

鈥淭he pandemic has brought about challenges. But that鈥檚 not to say we have been idle on the public health innovation and health information technology front,鈥� he said.

He noted that National Telehealth Center has been looking for ways to elevate the country鈥檚 telemedicine practices, working with the Department of Health in issuing telemedicine practice guidelines. The organization is also busy collecting pertinent health information data from vaccine distribution, contact tracing and testing results to further the development of the public healthcare system.

鈥淚n the past few months, we have been concentrating on elevating our current status in terms of vaccine ICT systems and we hope to be able to push forward innovations and technologies that will play a crucial role in terms of integrating all of the data so that we could recover as one and heal as one,鈥� Dr. Sarmiento said.

大象传媒 Insights: “Technology’s Key Role in Public Health Innovation” was presented by 大象传媒 Corporation, with sponsors PLDT Enterprise and Siemens Healthineers.

By Bjorn Biel M. Beltran, Special Features Writer

Since March last year, the Philippine stock market has been through quite a ride. After crashing to an eight-year low of 4623.42 due to a COVID-19-fueled investor sell-off, the Philippine Stock Exchange index has since climbed steadily, of late hovering around the 7,000-level mark a year after the crash.

At a glance, it seems bizarrely out of place. Many of the country鈥檚 economic prospects remain shrouded in uncertainty as COVID-19 continues to hold the world in a state of constant apprehension.

In the Philippines, especially, as it had just ended 2020 with the worst economic performance the country has seen since it began releasing growth data just after World War II in 1947. The country’s gross domestic product shrank 9.5% last year 鈥� the first annual contraction since the Asian financial crisis.

To understand the goings-on in the stock market, 大象传媒, the country鈥檚 leading business daily, held its Virtual Stock Market Roundtable last Feb. 17, gathering financial experts to discuss the stock market鈥檚 2020 performance and its prospects this year.

鈥淭his year is really the start of the country’s recovery story,鈥� Michael Gerard Enriquez, chief investments officer of Sun Life Philippines, began.

鈥淚 think we’ve seen last year how the market has rebounded from its lows of about 4,600 and we ended the year up to 7,000. You see how the psyche of the market has moved and usually, it’s sentiment that drives markets faster than the actual recovery of the economy,鈥� he said.

Mr. Enriquez pointed out that amid historic low interest rates and the slow resurgence of economic activity among consumers, the prospects of a rebound is likely, especially for the equity markets as consumption drives earnings.

April Lynn Lee-Tan, VP, head of research and chief equity strategist at COL Financial, echoed the sentiment. 鈥淚t鈥檚 easier to be negative than to be positive nowadays. There are so many reasons to be negative, including the disappointing economic recovery of the Philippines relative to other Asian countries,鈥� she said.

鈥淏ut that said, am I bullish or bearish? When I weigh the positives and negatives, I have no choice but to be bullish,鈥� she added.

Ms. Tan emphasized that despite the high unemployment rates, poor business confidence, and a conservative fiscal response from the government hampering growth, many factors remain in favor of the country鈥檚 recovery. For the equity market especially, the rollout of the vaccine and the boost in consumer confidence that comes with it will serve as a blessing.

鈥淟ast year, we didn鈥檛 know how this is going to end. But now, there鈥檚 a little bit more visibility,鈥� she said.

Moreover, since the pandemic forced the country on lockdown last year, many new retail investors have come into the market and they have yet to see a reason to be bearish since.

JC Bisnar, CEO and co-founder of Investagrams, said that many retail investors made money buying stock during the market crash last year. And it could be a reason to remain hopeful for the growth of the market in the future.

鈥淎 lot of people had to resort to other means to make money during the pandemic, whether that be online businesses, freelancing, e-commerce, and the stock market,鈥� he said.

鈥淭hat鈥檚 one reason why a lot of new investors came into the market: because people were just looking for a way to make money outside of their regular jobs. I believe that realization will be the catalyst in spurring the growth of retail investors. Moving forward, I think people will realize that they cannot just rely on the stability of their jobs. They need something else for their financial wellness,鈥� he added.

Despite all this, some caution may be warranted. 鈥淭he performance of the stock market in some ways is not reflective of the general economy. The people who are buying stocks in the Philippines is less than 1% of the population, maybe 2% given the increase in the number of investors,鈥� Ms. Tan said.

鈥淔rom March to today, the market is up by a lot, from 4600. We have a lot of people making money and that鈥檚 why they are a lot more excited to keep on buying stocks. And that鈥檚 one of the reasons why retail investors are continuing to invest in this market, and we鈥檝e been able to go up even in the absence of foreign investors,鈥� she added.

鈥淭he key now is what to expect moving forward. Recovery will definitely come but it won鈥檛 be in one snap,鈥� Mr. Bisnar added.

大象传媒 Virtual Stock Market Roundtable is presented by 大象传媒 Corp.; with the support of Management Association of the Philippines, CFA Society-Philippines, Investagrams, and The Philippine STAR.

Such a recovery hinges on the continued efforts of the government to stimulate the economy, address the devastation the pandemic has wrought on micro, small, and medium enterprises, and revive consumer consumption.

鈥淣ow more than ever, the Duterte government must find ways to raise revenues and generate business activities to hasten economic recovery. Fortunately, the country has an untapped treasure trove of resources to fall back on,鈥� economist Andrew J. Masigan wrote for 大象传媒 in December.

Mining could be the answer. According to data from the Mines and Geosciences Bureau (MGB), the country鈥檚 mining sector contributed around US$4.38 billion to the economy in 2019 through the exports of metallic, non-metallic minerals, and mineral products, with Japan, Australia, Canada, and China as the major buyers.

That year, the total estimated production value for metallic minerals was P130.73 billion, up by 7.03% or P8.59 billion compared to 2018鈥檚 P122.14 billion. Around P107.4 billion was estimated to be Gross Value Added (excluding crude oil) in mining at recorded prices.

Mr. Masigan notes that gold deposits in the Philippines are among the largest in the world with reserves estimated at 101.6 million metric tons. Iron ore reserves are at 298 million metric tons. Among non-metallic minerals, limestone reserves are approximately 19.5 billion tons while marble reserves are at 14.5 billion tons. The Philippines leads the world in chromite resources as well.

鈥淒espite our enormous mineral resources, the contribution of the mining industry to the economy remains minuscule. As of last year, the share of the mining output to GDP (gross domestic product) was a mere .06%. It contributed only 1.2% to national tax collection, and comprised only 6.3% of exports. In terms of jobs, it employed less than .04% of the workforce. In contrast, the mining sector in Indonesia accounts for 21% of exports and 7% of GDP,鈥� Mr. Masigan wrote.

According to S&P Global Market Intelligence, the Philippine mining sector is hopeful that the country鈥檚 government will recognize the importance of the industry in the wake of the pandemic, representing a potential silver lining after almost a decade of struggling with a moratorium on new permits and a ban on open-pit mining.

鈥淚n general, we feel that the pandemic will make the government realize that this sector of our economy can even be more important during times of crisis given the support that large-scale operations provide to their local government units and host communities through social expenditures and crisis management teams,鈥� Gerard H. Brimo, chairman of the Chamber of Mines of the Philippines and president and CEO of Nickel Asia Corp., told S&P Global Market Intelligence.

鈥淲hat stymies the industry鈥檚 growth and its ability to further contribute to the economy are policy roadblocks, principally the moratorium on new mining permits that has been in place since 2012 under Executive Order 79 and the ban on open-pit mining,鈥� he added.

A new tax bill in the House of Representatives has been passed at the committee level, pending approval in plenary, that could potentially see the lifting of the moratorium. Mr. Brimo added that the new tax structure is competitive and progressive in nature, and will be beneficial both to the sector and the government, with the latter鈥檚 coffers currently hit by social amelioration programs implemented during the pandemic.

鈥淚f this happens, three pending mining projects can bring the industry鈥檚 exports to over 9% of the total Philippine exports and increase the industry鈥檚 contribution to about 1.4% of the country鈥檚 GDP,鈥� he added, noting that mining accounted for 5.99% of exports and 0.69% of GDP as of 2018.

Meanwhile, the MGB echoed the optimism on the mining industry鈥檚 potential role in the economic rebound in the coming years if those hurdles are lifted.

Speaking to S&P Global Market Intelligence, MGB Director Wilfredo G. Moncano said, 鈥淭he mining sector is in a struggle right now, but I am positive that the industry will rebound. It may not be seen this year but in the succeeding years. We, in the industry, are confident that the mineral sector will play a crucial role in the recovery of the economy in the next two to three years.鈥�

He added that the lifting of the moratorium on new projects will open the doors to at least 12 new mining projects worth several billions of pesos, all without sacrificing the environment and the rights of indigenous people following the MGB鈥檚 recent issued order to mining companies to realign their annual social development and management program or community development budget and to use it instead in assisting workers and affected local communities. 鈥� Bjorn Biel M. Beltran

Legend once spoke of the great beast Nian, which terrorized Chinese villages long ago at the end of each year, destroying homes and taking the lives of innocent villagers. Yet, after it was discovered that loud noises and bright lights could scare the beast away, a yearly tradition was born.

Nowadays, such traditions persist in the brilliant fireworks and lively annual celebrations. Though being in winter for most of China, the Chinese New Year is popularly known as the Spring Festival in China, marking the end of winter and the beginning of spring. The 15-day New Year festivities kick off with a week-long holiday in China, and much like the Western New Year (Jan. 1), the biggest celebration is on New Year鈥檚 Eve.

During this time, every street, building, and home is decorated with red, the main color of the festival, which many believe represents luck. As 2021 will be a year of the Ox, many of the decorations will be related to the ox, the second animal in the Chinese zodiac, a 12-year periodic sequence of animals which appear in the Chinese calendar.

In many Chinese cities from New Year’s Day, traditional performances can be seen: dragon dances, lion dances, and imperial performances. Such performances are long-lived traditions in their own right. Chinese dragons are believed to be a symbol of China’s culture, and they represent power, dignity, fertility, wisdom and auspiciousness. In many legends, the dragon is both a fearsome creature, and a benevolent one, and it was an emblem to represent imperial authority. In the dragon dance, the movements traditionally symbolize historical roles of dragons demonstrating power and dignity.

For many Chinese families, New Year’s Eve is the most important time of the year. Everyone is expected to be home to celebrate the festival with their families by partaking in the New Year’s Eve dinner called ‘reunion dinner’, believed to be the most important meal of the year. Typically, families gather at a designated relative鈥檚 house for dinner, but increasingly, many families are spending their New Year鈥檚 Eve dinner at restaurants. Many of which, due to the occasion, require reservations months in advance.

There are also some wealthy families that hire a professional chef to come cook at their house. Chefs are often busy running from one home to another cooking dinners for different families on New Year鈥檚 Eve.

Afterwards, families typically watch the Spring Festival Gala together, one of the most watched TV shows in China.

During this time, people also exchange gifts, the most common of which are the customary red envelopes with money inside. Called 鈥渉ong bao鈥� in Mandarin, these envelopes are often only given to children or unmarried adults with no job. If you are single, working adult, you are expected to give these to your younger relatives.

Of course, at the strike of midnight come the dazzling display of fireworks. Anywhere you are on the globe, fireworks and firecrackers are launched on the first minute of the Chinese new year. From public displays in major cities to millions of private celebrations in China’s rural areas, setting off firecrackers and fireworks is part of the celebration.

Other celebrations to look forward to

Aside from New Year鈥檚 Eve, there are other important days of the 15-day Chinese New Year Festival. On the fifth day of New Year鈥檚 for instance, it is believed that the gods of prosperity come down from the heavens. People do their best to celebrate the occasion, which is called Jie Cai Ceng, or Welcoming the Gods of Wealth and Prosperity. This is a time for businesses to participate in setting off firecrackers, as they believe it will bring them prosperity and good fortune for their business.

The 15^th day of the New Year is known as Yuan Xiao Jie or the Festival of Lanterns. and marks the end of the Chinese New Year celebrations. All types of lanterns are lit throughout the streets and often poems and riddles are often written for entertainment.

There are also paper lanterns on wheels created in the form of either a rabbit or the zodiac animal of the year. The rabbit lantern symbolizes an ancient Chinese myth about a goddess named Chang鈥橢 who jumped to the moon. Anxious to travel alone, the goddess brought a rabbit with her to keep her company. It is said that if your heart is pure enough, you can see the goddess Chang鈥橢 and her rabbit on the moon on this day.

Each and every element of the Lunar New Year is imbued with traditional folklore such as this, owing to the centuries of history the tradition brings with it. As time goes on, more of these traditions will evolve and change, and only time will tell what such spectacles they will bring in the future. 鈥� Bjorn Biel M. Beltran

The Philippine Stock Exchange recently announced its goal of having more companies to go public this year. President and Chief Executive Officer Ramon S. Monzon said that the stock exchange has a target for at least three companies and four real estate investment trusts to hold initial public offerings (IPOs) in 2021, which caused no small amount of commotion in the investment community.

But what exactly are IPOs and why are they such a big deal? We have gathered insights from top experts in the investment community to answer these questions.

What is an IPO? Why are they a big deal?

鈥淎n IPO is the company鈥檚 maiden equity issue of its shares to the public. This occurs when a privately held company sells its shares to the public equity market. It鈥檚 transformational for the issuer, from the wealth it creates for shareholders, to the way the company is governed and their ability to fund growth from the equity markets,鈥� First Metro Investment Corporation鈥檚 Executive Vice-President and Head of Investment Banking Group Daniel D. Camacho said.

This means that a company is selling either primary or secondary shares or a combination of both to the general public to raise funds for its goals. Primary shares are the offer of new shares, the sale of which would result in proceeds which may be used by the company for its stated work program 鈥� capital expenditures, plans income-accretive endeavors, among others. Secondary shares involve the sale by existing, pre-IPO shareholders of their shares to the public.

First Metro Securities Brokerage Corporation President Gonzalo G. Ordo帽ez added that IPOs often signal a significant development in companies鈥� growth, and in many ways further legitimize businesses and allow organizations to reach wider audiences. For investors, IPOs mark the very first time the public is given the opportunity to invest in these companies.

鈥淚POs are considered a big deal in the financial markets because they usually happen only when a company is ready to expand and wishes to finance its rapid growth from the participation of public investors. Usually, a company must have first built up enough goodwill and trust from the investing public before they can even begin to consider taking their company public,鈥� Mr. Ordo帽ez said.

How can a company go public?

Eduardo V. Francisco, president of BDO Capital, noted that there are multiple parties involved in an IPO, comprising of the issuer; the regulators (Securities and Exchange Commission or SEC and Philippine Stock Exchange or PSE); the underwriting syndicate and its legal counsel; transfer and escrow agents; the issuer鈥檚 financial advisory team; as well as the trading participants in the stock exchange.

There is a timeline that can reach up to three years before a company can go public, and this involves the due diligence, documentation, and regulatory approvals before the offer period and actual listing. Naturally, the process is not to be taken lightly, and it requires intense preparation on the part of the issuing company.

The regulatory requirements involved, Mr. Francisco said, range from corporate governance matters, such as the appointment of a compliance officer, to the issuance of reports and disclosures such as financial statements and administrative changes.

鈥淎s investment bankers, we are involved with the whole spectrum of activities leading to a company鈥檚 IPO. From day one, we assist the company in tailor-fitting the IPO structure based on what the company鈥檚 shareholders want and what the market is willing to accept. Sometimes, these two principles are so distinct from each other but it鈥檚 part of our job to help create a bespoke structure that is not just acceptable but is actually attractive to the shareholders and the equity capital market alike,鈥� Mr. Camacho said.

鈥淥nce the basic structure has been prepared, regulatory filings and marketing activities are the next steps and, once regulatory approvals have been received, determining the price and shares to be offered to the public would be next. The culmination of all these activities would be the listing of the company on the PSE. All these activities can be completed anywhere from six months to over a year, depending on the preparedness of the issuer,鈥� he added.

What are the benefits? Why go through all that trouble?

Mr. Camacho pointed out that the main and most compelling advantages for companies to go public would be the wealth creation generated by the activity and access provided in terms of tapping the equity capital market for funding.

Such funding can be utilized for profit-generating activities which can help spur growth for the business. Other advantages of an IPO include tax-efficiencies, specifically in terms of stock-transaction tax and estate planning, the liquidity provided to investors, the promotion of a more professional organization, and the enhanced public image that the listed company enjoys.

鈥淎ll these benefits do not come free as a publicly-listed company has numerous responsibilities to its shareholders,鈥� he said.

鈥淔oremost is the sharing of ownership control with other shareholders. Also included is the sharing of financial gain since a listed company is expected to have a dividend policy in place. Other responsibilities or concerns that a potential IPO candidate may face include the time-consuming process of due diligence needed for the IPO, management of the company geared towards maximization of shareholder value, sharing of strategic information through corporate disclosures, costs of going public, and compliance with regulatory requirements,鈥� he added.

Mr. Francisco noted that there is also prestige involved with going public.

鈥淎n IPO would raise the public profile of your company with customers, suppliers, investors, and the media, and your company may be covered in analyst reports or be included in an index,鈥� he said.

He added, 鈥淭here are around 850,000 plus corporations in the SEC but only around 260 listed companies in the PSE. So doing an IPO already puts one in a small unique group. There are also only 3 to 5 IPOs in a year so launching an IPO is a big deal for the Philippine capital market and the PSE.鈥�

When is a company ready to go public?

As noted before, undergoing the process of public listing would give a business access to alternative funding and a broader investor base. It will also demand more from the business in general. Publicly listed companies are beholden to regulatory requirements and restrictions, and are required to be transparent and professional in all its ventures.

鈥淓ntrepreneurs should ask themselves if they are ready to adhere to stricter standards of disclosure and governance before fully committing to the exercise,鈥� Mr. Camacho said.

Will receiving equity from the public help support your company鈥檚 growth plans? Will you be able to use the proceeds in activities which will help boost the company鈥檚 bottom line? Can this help pay off some debts and make your company healthier and more sustainable? Are you ready to professionalize your company and subject yourself to periodic reportorial submissions from the regulators? Are you willing to be more transparent and discuss more the results of operations, as well as plans and strategies with investors and analysts?

If the answer to all these questions is yes, then you are ready to take the next step.

鈥淚t takes a while to prepare 鈥� can take up to three years to prepare to reorganize the company, fix its audited numbers, hire professionals and directors, etc. There is a lot of housekeeping and requirements to professionalize the company. But if a company and its founders feel that it is time to bring the company to the next level, an IPO is a way to go,鈥� Mr. Francisco added.

Are IPOs a good investment?

As of January 2021, the country鈥檚 sole stock exchange, the PSE, has 250 public companies listed, all tradeable through a variety of online and traditional stock brokerage firms, Mr. Ordo帽ez said.

Through such platforms, any investor can participate in an IPO. The PSE has even set up a variety of ways to reserve shares. One is through clients鈥� favored stock brokerage firms and another is through the PSE鈥檚 own Local Small Investor Program via its PSE Easy online platform.

鈥淒espite many investors believing that IPOs are their first chance to buy companies when their shares of stock are still cheap (or in other words getting in on the 鈥榞round floor鈥� of the companies), making money is still never guaranteed,鈥� Mr. Ordo帽ez warned.

鈥淭hat is because the share price of the companies once listed may be volatile as buyers and sellers conduct trading activities, or perhaps the future prospects of the company may turn bleak. Increased volatility in the share price movement, and/or the changes in the future prospects of the company may scare off investors causing them to sell and drive down share prices. Though the IPO process is mostly the same for all companies that have undergone it, the outcome of each event varies,鈥� he explained.

How to know if an IPO is worth investing in?
Mr. Ordo帽ez pointed out that the best companies to invest in are those with clear and achievable expansion plans. Such companies may have outlined their growth through the acquisition of new companies, opening new branches, entering or expanding new markets, researching and developing new products, buying new equipment, or just about any activity that will increase revenue and income.

鈥淚ncreased revenue and income will translate to dividends and capital appreciation for investors. It is for these initiatives that the companies will use the IPO proceeds for. Companies such as these will make investing and holding the shares of stock, despite increased volatility, worth it,鈥� he said.

As with all things in the investment market, however, it all comes with risks. Potential investors should do adequate research and conduct a careful study of the company. Reading the prospectus of the company and research reports are a good start, as is doing a careful survey of its management team and track record. Investors should know what they are buying, and have some estimation of the value of the shares.

But perhaps most important of all is the why, Mr. Ordo帽ez noted.

鈥淲hat is the reason for participating in the IPO? Is it to invest in the company, to grow capital coinciding with the growth of the business? Or is it simply to trade the share price once listed, taking advantage of the high trading volume, buying low and selling high?鈥� he said.

鈥淜nowing the WHAT and the WHY will greatly help investors assess the investment, and properly weigh the risks and rewards of participating in the IPO. Every investor鈥檚 goal is to grow capital. Every trader鈥檚 goal is also to grow capital. Doing this exercise simply matches the goal with the investor or trader鈥檚 strategy, and the nature of the investment,鈥� he added.

The decision whether to invest in the new IPOs that the PSE is eyeing depends on the investor. Mr. Francisco noted that despite the pandemic, the Philippine investment market has fared well, seeing its first real estate investment trust last year and also the largest IPO to date in Converge.

鈥淭here are several IPOs slated this year that could again set new records in size. The success of our IPOs last year and this year reflects well on the Philippines. Foreign investors will not invest in our IPOs if they do not believe in the Philippine story,鈥� he said.

But a new year brings new opportunities and if you are looking to turn a new leaf financially in 2021, you are far from alone. In fact, a white paper released by AdSpark, Inc., a portfolio company under Globe Telecom鈥檚 917Ventures last year, showed that consumption of Personal Finances as a topic grew by 800% from January 2020 to the end of March 2020 when most Filipinos were required to stay at home.

This was supported by the Global Web Index which tells in numbers how people foresee the impact of the situation on their personal finances. Of the Filipinos surveyed, 65% believed that the COVID-19 pandemic will have a big impact on their personal finances while 15.7% said the effect could be greater.

No doubt that number is far larger now that a full year has gone by. Yet, as awful as it had been, there is much 2020 could teach about the importance of being financially secure, especially now in a drastically different world.

Save whatever you can and build an emergency fund
Everyone from the billionaire tycoons to their hardworking employees were caught unaware by the pandemic. This has resulted in millions of lost jobs and lost income. And while naturally the worst affected had been those already poor and vulnerable, everyone has felt the effects that COVID-19 has had on the economy.

Being prepared for such events and setbacks is the main purpose of an emergency fund. An emergency fund is a stash of money set aside to cover the unexpected financial surprises that may come your way. Such events could be an unexpected car trouble, a bad illness, or other sudden expenses. Having an emergency fund is like having a safety net that you can rely on to save yourself the stress of financial instability or going into debt.

Most financial experts will recommend an emergency fund of about three to six months鈥� worth of expenses, put into an easily accessible deposit account. You should try to save up this amount even if you have any outstanding debt, budgeting wherever necessary. The peace of mind brought by having an emergency fund will make all the scrimping worth it.

Naturally, you should not touch this fund unless there is an emergency, or else it defeats the purpose.

Learn to use technology to your advantage
Many people will struggle with saving, especially in troubled times like these. Most banks nowadays have digital platforms where you can do your banking online. If you have never tried using such platforms before, now is the time to try.

Having an easily accessible way to check your finances wherever you are can be a great motivator towards spending responsibly. You can also check with your bank if they have features like automatic bills payments for your recurring bills, or even if they can automatically invest part of your income towards retirement funds or life insurance.

Learn all you can about how digital technology can help you achieve your financial goals. Download free apps that can track your spending habits or can help you create a budget.

Check your lifestyle and make some cuts
As widespread as it was, the pandemic has changed everyone鈥檚 daily lives the world over. For many, it has been a massive lifestyle change. In an instant, there was no more travel to look forward to, remote work began to become mainstream, and eating out in restaurants became ordering delivery and dining in at home.

Examine how the pandemic has affected you and your spending habits. Maybe you stopped checking in for a morning coffee at your favorite cafe. Maybe you don鈥檛 order from restaurants as much because you can cook meals at home now. Whatever the changes may be, ask yourself if anything of value was lost. If you are satisfied with your life even with all the lifestyle cuts, then why not take them out of your budget altogether?

Educate yourself
They say the best investment you can ever make is investing in yourself. If you want 2021 to be the year you start on your journey towards financial security, then it is a good idea to invest in your financial education.

You don鈥檛 need to enroll in any classes or buy any books (though they help!). Resources about financial education is all over the internet, from Investopedia to podcasts to your own bank鈥檚 website. Being financially educated means changing your mind-set to learn and understand money and all the ways it can help you improve your life. 鈥� Bjorn Biel M. Beltran

Yet a new year has dawned, and the challenges of the past year have now borne fruit. These models from popular brands are what the future of mobility looks like so far.

Honda City / Civic

The new and improved Honda City hatchback made a splash in global markets late last year, and Philippine customers can now get their own to drive. The all-new City was designed for confidence, from its sweeping, dynamic corners to the bold, black trim, to its specially designed, sleek RS bumpers.

With its stylish exterior design, outstanding interior space, and advanced technology, Honda aims to assert its 2030 vision of leading the advancement of mobility and enabling people around the world to improve their daily lives.

Moreover, the launch reaffirms Honda Cars Philippines, Inc.鈥檚 commitment to providing mobility to Filipinos especially on its 30^th year in the Philippines and continues to expand its presence in the market. Honda also recently unveiled the prototype of the 2021 Civic, which is now all set to enter into its 11^th generation. It is only a matter of time before the newest iteration of the iconic Civic enters the country鈥檚 shores.

Isuzu mu-X / D-max

The Japanese car maker Isuzu Motors revealed the new and updated model for its mu-X line in Thailand before promising to roll it out in other markets. The D-max pickup truck, similarly, was promised an update.

The all-new Isuzu D-max, lauded all over the world for its top-class performance, safety, and innovation, will be making its debut later this year, both with new looks and new nifty features. It still comes equipped with either a 1.9-liter turbo diesel engine or an upgraded 3.0-liter motor that produces 190hp and 450 Nm of torque, however.

The new mu-X meanwhile will enter the country鈥檚 midsize SUV market. Based on the D-max pickup, the mu-X is a robust option for those looking for a good rough road companion.

Set to also make its entry later in the year, the newly designed mu-X is based on Isuzu鈥檚 engineering concept of Robust and Exclusive, with the aim of enhancing the comfort and luxury while maintaining Isuzu鈥檚 unique strengths: reliable durability; fuel economy; and safety performance.

Lexus IS

The luxury car brand unveiled the new Lexus IS to the world last year. Fortunately for those who were waiting patiently for its Philippine release, Lexus launched it right as 2020 ended. Boasting superb maneuverability and riding comfort honed at the Toyota Technical Center Shimoyama, with evocative styling and state-of-the-art technologies, including the latest Lexus Safety System+, the Lexus IS is built fine-tuned for the driving experience.

鈥淲hat we had foremost in mind in developing the new IS was to make it a car that excelled in communicating with the driver and, as a car with wide latitude for providing such, would never fail in doing so, regardless of the road conditions or driving status. Toward achieving this, we retained the compact body that had been well received, and, with our team united, we endeavored to bring such to maturity by developing the new IS on a new test course. We aimed to make the new IS a Lexus compact sports sedan that provides high-quality riding comfort while offering a high level of vehicle control,鈥� Naoki Kobayashi, chief engineer, Lexus International, said in a statement.

He added, 鈥淲e wanted it to be a car that enables people to make new discoveries, such as the discovery that the longer the new IS is driven, the more one can experience the fun of driving. And we wanted it to be a car that enables people to feel the aspirations of those who created it.鈥�

Mitsubishi Outlander / Mirage

Though there likely is a longer wait involved here for SUV fans, the new Mitsubishi Outlander is likely worth it. Developed under the ideal of the Japanese term 鈥淚-Fu-Do-Do鈥�, which means authentic and majestic, the all-new Outlander is designed to demonstrate strength and quality from the inside out.

The exterior design is refined, with a powerful and proud front end with new generation Dynamic Shield design concept. The complete transformation from dimensions to exterior styling previews the design direction for the future Mitsubishi Motors models.

鈥淭he Outlander is an iconic SUV for the company, so when we developed the next-generation model, we took inspirations from our rich SUV heritage to realize a bold and confident styling with a solid stance that excites our customers,鈥� said Seiji Watanabe, division general manager of design (head of design), Mitsubishi Motors Corp.

鈥淭he all-new Outlander is the first model epitomizing the new generation of Mitsubishi design and the frontrunner of our design strategy,鈥� he added.

The new Outlander will debut first in the US, Canada and Puerto Rico, with international markets following soon after. Fans of the brand鈥檚 popular Mirage line also has something to look forward to, as the line got updated last year in Thailand with much fanfare.

Nissan Navara / Terra

Nissan is making waves by committing to a slew of new launches this year. The new Nissan Navara pickup, for one, now comes with a new redesigned front facia, opting for a sleeker yet still athletic outline. Combined with a newly redesigned grille, a new set of wheels,听 a new set of headlights, and a new variant called the Pro-4X, the new Navara gives off a more angular silhouette for a cool and confident refresh.

And while Nissan Philippines has yet to release specifics on the release of the 2021 Navara, fans of the brand should expect to wait at least until the latter half of 2021. In the meantime, the carmaker launched the redesigned Nissan Terra.

First debuting in the Middle East as the X-Terra, the revamped SUV aims to exude a much bolder style with an update to its tech. The 2021 Terra distinguishes itself from the Navara which it鈥檚 based on with its brand-new front-end, which sports refinement and styling cues from the brand鈥檚 other SUV model, the Patrol. The Terra is redesigned to have an aggressive front-end with a larger, more upright V-motion grille bookmarked by LED headlights with quad projectors.

Toyota Yaris

Toyota Motor Philippines (TMP) was quick to welcome the new year with the new Toyota Yaris.

Sporting an aggressive redesigned front grille, the new Yaris gives off a commanding display on the road, flanked by new LED fog lamps across all variants. On the 1.5 S CVT variant, the head lamps have been upgraded to LED and are now paired with new Daytime Running Lights (DRL).

It also comes with new kicks with its 15-inch two-tone machine-finish alloy wheels across all variants. The updates extend up to the interiors with Apple CarPlay and Android Auto now a standard feature across all variants, and synthetic leather seats for the 1.5 S CVT variant.

The redesign also comes in a vibrant new color across all variants to suit any discerning customer. A new and exciting 鈥淐yan Metallic鈥� shade is aimed at appealing to the young and young-at-heart.

鈥淭he Yaris appeals to many married professionals in their mid to late 30s looking for a modern fun-to-drive vehicle that offers the great cargo space a hatchback offers,鈥� Elijah Marcial, vice-president of marketing services at TMP, said in a statement.

鈥淭he Yaris nameplate has amassed quite a loyal fan base for being synonymous with fun driving and flashy looks, and this year we鈥檝e elevated it with a new premium eye-catching design to suit our customers鈥� evolving style. All without, of course, compromising on the power, convenience, and safety we鈥檝e all come to expect from every Toyota.鈥� 鈥� Bjorn Biel M. Beltran

By Bjorn Biel M. Beltran, Special Features Assistant Editor

Change happens both very slowly and very suddenly. Nothing could be truer in the reality of the COVID-19 pandemic, which has sent the world reeling from its massive social, political, economic, and cultural impact.

Almost overnight, the business world has had to adapt to a new paradigm that limits its freedom of movement, its trade, and how it operates. Digital transformation, which has been slowly building momentum in the years prior 2020, suddenly became a core strategy for both private and public organizations.

Proof of this change is the 大象传媒 Economic Forum, 大象传媒鈥檚 flagship and award-winning event, which went virtual for the first time this year, to take on the theme, 鈥淔orecast 2021: ReBoot. ReThink. ReShape.鈥� The two-day virtual forum aimed to gather insights from the world鈥檚 foremost business experts and leaders to attempt to chart and navigate the future of a world that has been wracked by change.

Headlining the forum were international keynote speakers B酶rge Brende, president of the World Economic Forum, and Bernardo Mariano, Jr., chief digital and information officer of the World Health Organization (WHO), last Nov. 25; and Ndiam茅 Diop, country director for Brunei, Malaysia, Philippines and Thailand of the World Bank, and Kelly Bird, country director of the Asian Development Bank (ADB) last Nov. 26.

In his address, Mr. Brende highlighted the importance of international cooperation amidst this time of uncertainty, to foster a better world after the pandemic in The Great Reset.

鈥淲e know that we are still in the middle of the worst health crisis that we have seen in a century, and we know that if there is COVID anywhere, it will be everywhere. There really is a global responsibility to fight this pandemic and I think that in many places in the world, we are still in the crisis mode. We are not in the recovery phase yet. We are still fighting the pandemic,鈥� he said.

The Great Reset, a movement led by the World Economic Forum, seeks to take advantage of the unique window of opportunity to shape the future state of global relations, the direction of national economies, the priorities of societies, the nature of business models, and the management of a global commons. Mr. Brende noted Asia鈥檚 part in shaping this new world.

鈥淭his year marks the entry into the Asian century. This year is the first one where Asia is more than 50% of the world鈥檚 GDP, Asia is also 50% of the world鈥檚 population. We have seen that the first economies that have started to revive are the Asian ones. We know that China, the world鈥檚 second largest economy is expecting to grow this year. We also know that other Asian countries have fared better because they were faster in fighting the pandemic and keeping it under control,鈥� he said.

The Philippines, in fact, is in a great position relative to other nations. Mr. Diop of World Bank, in his own keynote address which tackled the economic growth prospects to keep in mind as the world enters 2021, said that the country had one of the strongest growth momentums in Asia, along with a strong fiscal position, low fiscal deficits, low public debt, low inflation, and a robust banking system.

鈥淭hat such a strong economy like the Philippines pre-COVID suffers so much is the best illustration of the unique destructive scale of this pandemic,鈥� Mr. Diop said.

Mr. Diop noted that the COVID-19 pandemic is more recessionary than any other large crisis the world has seen over the past 50 years, such that a majority of the world鈥檚 economies will sink into recession this year.

鈥淣o other previous shock that has buffeted the world economy over the past 100 years has all these features at the same time,鈥� he said.

In addition, the pandemic hit the poor and the aspiring middle class harder. In absence of a strong policy response, inequality is likely to increase.

鈥淒espite the rising middle class the past 10 years, millions in the Philippines have not yet reached the economic security of the middle class and remain vulnerable to falling into poverty. The pandemic therefore boldens the risk of rising inequality today, rising inequality tomorrow if poor families stop investing in the health, education, and nutrition of their children,鈥� he said.

鈥淚n short, because this disproportionately affects the non-economically secure in society, the big risk in the pandemic is for the short-term damages to prevail for a long time, pushing the inequality of all.鈥�

The pandemic also aggravated unfavorable situations. Individuals with morbidity and families without savings are hit harder. Firms with high number of debts pre-COVID are in higher likelihood of insolvency, banks with poor asset quality will struggle more, governments with weak fiscal positions, and limited external factors will struggle to recover.

Looking for the light
Understanding the scale of the pandemic is a critical part of understanding the impact it will have on society at large. Mr. Mariano of WHO pointed out in his keynote address that herein lies the opportunity.

鈥淭he COVID pandemic is an unprecedented crisis that will shape our world for years and decades to come. It is the first pandemic in the digital age, therefore digital technologies are playing a great role during it, including enabling people to work from home or participate in meetings such as this one virtually,鈥� he said.

鈥淎s we speak, digital technologies are helping screen populations track people who have been infected and monitor the flow of supply of critical health resources.鈥�

Such developments can both expand primary healthcare, strengthening the fight against the surge of new diseases like COVID, and ensure that those affected by the current pandemic greatly benefits. It is in keeping these benefits in mind did the WHO recently launched and approved its Global Strategy on Digital Health 2020-2024 at the World Health Assembly.

鈥淲hat we call today digital health will be known in the future as simply the way we deliver healthcare services. While we recognize that advanced digital transformation can move us into the next stage of healthcare services, let鈥檚 not forget that currently, we live in a world where equity, access to health, access to broadband is far from ideal. Almost half of the world don鈥檛 have access to broadband, half of the world don鈥檛 have access to essential healthcare services,鈥� he said.

鈥淟et鈥檚 make sure that as we go through digital transformation, we do not amplify these inequalities, that we ensure that digital solutions are accessible to low and underserved communities, that they are accessible to everyone. Let鈥檚 make sure that those inequities and inequalities are reduced and not amplified with the digital transformation of the healthcare sector.鈥�

Proper governance of the digital transformation of the healthcare sector, in addition to larger initiatives led by the government, can kickstart recovery. Mr. Bird of ADB said in his keynote address that understanding the benefits and consequences of such innovations will be central to navigating the post-pandemic world.

For instance, remote work will spell new challenges for the global real estate industry, and will likely create changes in the development of cities of the future.

鈥淲hat remote work means is that this will have implications for how we work in the office. And this is going to have spillover effects on property use on the commercial business districts. This is going to be one of the challenges for the property markets not just for the Philippines but globally, how best now to use central business districts. We might expect demand for that space to slow down over the next decade or so, and this is a discussion that鈥檚 just beginning over in other countries,鈥� he said.

The hope for recovery is on the horizon, but such hopes need planned and coordinated action on the part of the public and private sectors to see fruition.

鈥淭he pandemic has devastated global economies but we are seeing strong results to address the fallout. I鈥檓 confident that with improved public health policies, continuously agile and sound fiscal and monetary policies, the determination to implement structural reforms, the Philippines may be well placed to bounce back,鈥� Mr. Diop said.

鈥淏ut again, it will not be over for the Philippines, nor any individual country in the world, until it is over for the rest. It will not be over for the balance sheets of any firm, household, banks, or the governments until it is over for everyone.鈥�

When the COVID-19 pandemic hit, it was as if the world changed overnight. With its impact felt in every part of human life, society needed to make expansive changes to ensure the safety of the population, from how they work down to how they got their food.

To help the business community grasp the extent of these changes, 大象传媒 Virtual Economic Forum held Fireside Chats with experts in various fields to talk about the impact of the COVID-19 pandemic and how the world is reshaping in response.

First and foremost, addressing the question on everyone鈥檚 minds, Dr. Jean-Antoine Zinsou, country general manager of Sanofi Pasteur Philippines, talked about the development of the COVID-19 vaccine.

Sanofi is among the companies pursuing work in COVID-19 vaccine development with two candidate vaccines. With a partnership with GSK, Sanofi is developing an antigen (the protein that stimulates the body鈥檚 immune response against the virus), based on recombinant DNA technology. GSK meanwhile is contributing an adjuvant, an ingredient added to enhance the immune response, which reduces the amount of vaccine protein required per dose and improves the chances of delivering an effective vaccine that can be manufactured at scale.

The second COVID-19 vaccine candidate, in partnership with Translate Bio, is pursuing a clinical-stage messenger RNA (mRNA) biotechnology company.

Yet, Dr. Zinsou pointed out that the vaccine development is only half the battle.

鈥淵es, we can develop the vaccine and it can be ready for registration and market authorization. But if there is no manufacturing capacity, this is useless,鈥� he said.

鈥淭his is why, for Sanofi, for this candidate vaccine, in parallel with development, we are increasing our production capacity by a significant level because we aim to produce roughly one billion doses by the end of next year.鈥�

He further noted that the world has more than a hundred candidate vaccines in development, but all of them need to pass through rigorous processes to guarantee their safety and efficacy.

Meanwhile, Felino A. Palafox, Jr., principal architect 鈥� urban Planner of Palafox Associates, echoed the sentiment, adding that there is a great opportunity for the Philippines to right the wrongs of the past and build a better future for all Filipinos.

鈥淎s Churchill has said, 鈥楴ever let a good crisis go to waste鈥�,鈥� he said.

Mr. Palafox talked about how Philippine cities are being reshaped by the crisis, and he mentioned the growing trend of revisiting plans and programs that were overlooked and ignored in the past, such as those proposing for more walkable bike-friendly cities with more open public spaces.

He pointed out that pandemics of the past were instrumental in enacting huge changes to how cities were built, from improving sewerage and water sanitation in Paris during its cholera outbreak, and creating central parks in the United States.

To create such changes in Metro Manila, Mr. Palafox proposed structural audits of the megacity and retrofitting structures to better equip cities for incoming hazards such as the expected increase in the number of super-typhoons caused by climate change.

The collision of the real and the virtual
Accelerated digitalization has been one of the most obvious impact of COVID-19. Cezar P. Consing, president and CEO of Bank of the Philippine Islands, noted that digital transactions in the Philippines surged with the outbreak.

鈥淭he thesis that COVID accelerated cashless society is true. It was all very slow at first, very gradual, incremental growth. All of a sudden we saw daily digital enrollments from our customer base to the tune of 20 thousand to 30 thousand a day. Because of all of these enrollments, more than half of our 8-9 million customers are now enrolled digitally,鈥� he said.

Transactions with physical banking branches have come down and so have the use of ATMs, leaving banks to consider and reevaluate their network strategies. Digital transformation has reached a tipping point, and Mr. Consing said that things are not likely to go back to how things were before COVID-19 hit.

鈥淔or the longest time there were a couple of factors that prevented the growth of digital and online banking. First of all, it was the cost of the mobile phone. Smartphones are very expensive, especially several years ago. But over time this has come down,鈥� he said.

鈥淪econd, the digital rails haven鈥檛 been built yet. In our case at BPI, we decided to start investing in digital three or four years ago. You take those two factors and the fact that the Filipino is so adept at using these new technologies, and so prepared to try them out, and this is why we are seeing this massive growth in cashless banking.鈥�

James Matti, head of Willis Towers Watson Philippines, in his talk highlights how this sense of collaboration and community is evolving in the workplace. Their data show that in the nine months of the pandemic, more than half or 63% of companies responded with agility, redeploying and reskilling their workers to support other functions and focus on their business.

What鈥檚 more companies have started to lean into the broader ecosystem, with 20% of companies either borrowing or lending talent to other organizations to either bring their businesses up to speed or help out businesses who have low capacity.

鈥淧eople are committed to companies that have shown empathy and compassion during the pandemic. Companies who have not laid off and took care of their people at the height of the crisis,鈥� he pointed out.

Collaboration between the public and private sectors is included in creating this new world. To talk about the economic side of things, Francisco Dakila, Jr., deputy governor of the Monetary and Economics Sector at the Bangko Sentral ng Pilipinas, noted that the uncertainty created by COVID-19 has left many people uncertain about their economic prospects.

鈥淭here is still elevated uncertainty because of the COVID-19 cases, and that鈥檚 something that we are seeing globally. If we look at economic prospects, we are still seeing recovery next year, but due mostly to that uncertainty, multilateral organizations such as the International Monetary Fund have moderated or downgraded their outlook for 2021,鈥� he said during his talk.

In the Philippines, there is still considerable fear and hesitation on the part of both consumers and the financial sector. Mr. Dakila said that the BSP has so far done its part to kickstart the economy back up, reducing its policy rates to the lowest it has been historically, as well as reducing reserve requirements for universal and commercial banks, but unless consumer confidence recovers true economic recovery will not come.

鈥淕aining confidence really means that the public should be able to go out and not be afraid of contracting COVID. That is the most important part. Once that confidence builds in, we can expect economic activity begin to pick up,鈥� he said.

Satish Shankar, regional managing partner of Bain & Company Asia-Pacific, highlighted how the private sector have changed in the light of the pandemic and how it can do its part to recover consumer confidence.

Mr. Shankar noted the key differences between the companies that can successfully take advantage of the pandemic from companies that will struggle in its wake: an ability to predict and anticipate change ahead of time; an adaptability that will allow them to course-correct depending on the situation; and resilience, the ability to withstand further shocks to their system.

Consumers have become more discerning and aware of bad actors in the market, he said, and that to survive in this new world companies should reimagine their culture and purpose, putting sustainability at the heart of their business model, and create strategies that would allow for the agility needed to make the right decisions.

By Bjorn Biel M. Beltran, Special Features Assistant Editor

The world was turned upside down when the COVID-19 pandemic struck. But months into the crisis and no end in sight, leaders and policy makers have to figure out how to keep society moving along without exposing any more people to the risk of contracting the virus.

This has resulted in an impossibly difficult dilemma in the education sector. While remote learning through digital teaching platforms has been championed by experts as the solution, the challenges of making the transition from physical classrooms to virtual ones are extensive.

The third and final session of 大象传媒 Insights鈥� Connectivity Series aimed to highlight and dissect these challenges, focusing on the topic, “Internet, Technology and Education: Connecting Schools and Students in the New Normal”, with speakers Pamantasan ng Lungsod ng Maynila (PLM) President Emmanuel Leyco, IBM Philippines President and Country General Manager Aileen Judan-Jiao, PLDT Enterprise First Vice-President and Enterprise Revenue Group Head Victor Tria, and Tata Consultancy Services TCS iON Sales Director Shashwat Rai.

鈥淲hat did the pandemic do to our education? It caused us to disperse, threaten our organization. It threw our structures into shambles. No more meetings, no more face to face. In organizations that are so used to conducting their business through face to face environments, I think this is really pulling the rug under their feet,鈥� PLM President Emmanuel Leyco said in his opening remarks.

Mr. Leyco noted that public organizations experienced the consequences of the pandemic more severely, with additional hurdles in their processes such as procurement and their decision-making. However, the biggest impact of the pandemic, according to him, was the damage to their ability to communicate.

鈥淔or teaching, the learning environment must include engagement with the students. You have to look at them. They have to look at you, you have to read their body movements. If they are listening, if they are learning, if they are interested. You have to adjust. This is very different in an online environment,鈥� he said.

鈥淭eaching is not just talking. Teaching is communicating with students, and the students communicating back.鈥�

The significance of the problem, that of shifting from an established method of teaching into a new one, is far greater than meets the eye. The education sector is at the crux of a grander, more ubiquitous change: a paradigm shift that integrates the digital world with everyday life.

IBM Philippines President and Country General Manager Aileen Judan-Jiao said that educational institutions today need to equip students with new skills that are more suited to a digital economy.

鈥淲e have a strong point of view that the future of jobs is really in the digital economy, which now all of us are exposed to,鈥� she said.

鈥淭he digital economy will beg different sets of skills. We are talking about cloud computing, artificial intelligence, cybersecurity, among a good number of things. In fact, it is on us to look at a new set of soft skills, around creative problem solving, critical thinking, design thinking for methodologies, even mindfulness.鈥�

Recognizing this need, IBM collaborated with educators, policy makers, and elected officials around the world to develop Pathways in Technology Early College High Schools (P-TECH), a global education model that offers students all over the world the opportunity to develop skills and competencies that will translate directly to competitive careers.

Telecommunication companies like PLDT-Smart are also doing what they can to alleviate the pressure on education facilities making the transition.

PLDT Enterprise First Vice-President and Enterprise Revenue Group Head Victor Tria had this to say, 鈥淓-learning has been one of PLDT鈥檚 main areas of focus during this pandemic. We鈥檝e taken on the mantra, 鈥楴o learner left behind.鈥� It serves as a challenge to us in the PLDT Group, and a promise to our customers.鈥�

He added that the company is choosing to remain optimistic amidst the current situation鈥檚 many challenges, seeing the changes a path towards equitable education for all Filipinos.

PLDT is collaborating with local government units and public schools to provide free access to learning tools to teachers and students, such as DepEd鈥檚 learning management system, a system which benefits over eight million users today. The company is also in partnership with organizations like the Catholic Education Association of the Philippines and the Philippine Association of Colleges and Universities.

Tata Consultancy Services TCS iON Sales Director Shashwat Rai in his talk discussed how the COVID-19 pandemic affected the four key stakeholders in the education problem: Students, teachers, parents, and institutions.

鈥淭his pandemic has brought a lot of opportunities in terms of how institutions are adopting or how the stakeholders are responding,鈥� he said.

He proposed reimagined classrooms that use technology to augment the educational foundation of schools, colleges, and universities; such as in using remotely proctored and secured assessments for students; using click stream analysis to measure engagement from both teachers and students; and using sophisticated communication to keep all stakeholders connected.

#BUSINESSWORLDINSIGHTS Connectivity Series is made possible by Tata Consultancy Services, Globe, AMTI, Dell Technologies, PLDT, Smart The Philippine STAR, and Olern; with the support of the Philippine Chamber of Telecommunications Operators, Management Association of the Philippines, Bank Marketing Association of the Philippines, British Chamber of Commerce Philippines, Financial Executives of the Philippines, Philippine Association of National Advertisers, and Philippine Chamber of Commerce and Industry.

In order to address a holistic recovery, there is a call for governments to address economic problems like a lack of dynamism and flexibility, citing the importance of decentralizing economic and capital functions to less populated areas. Such a shift may induce a swifter economic recovery, while simplifying crisis management, and bringing new life to regional centers.

In the Philippines, the initiative to decentralize Metro Manila has long been a focus of the national government. Decentralization would serve to accelerate rural development and revitalize essential industries such as farming and fishery, while reducing the population density of the capital.

Many local and multinational investors are looking to expand their businesses to untapped regional areas in the Philippines, according to international real estate services firm KMC Savills.

鈥淭hey鈥檙e actively looking in provincial areas, a lot closer to where their employees live. They want their employees not to sit in transportation, not to take public transportation, to be able to get to the office very quickly,鈥� said KMC Savills, Inc. Managing Director Michael McCullough at a previous webinar.

Particularly, Pampanga is emerging as a hotspot for investors looking to secure real estate. Global real estate services firm Colliers International tagged the area as having a 鈥榟igh potential鈥� to become a key property investment hub outside Metro Manila.

鈥淭he government鈥檚 active infrastructure implementation and decentralization program is encouraging developers to look closely at Pampanga, notably Clark Freeport and adjacent cities and municipalities,鈥� the company wrote on one of its market intelligence reports.

鈥淲e think the Clark-Angeles-San Fernando corridor (Metro Clark) has high potential to become a key property investment hub outside Metro Manila. We see opportunities for office and residential segments.鈥�

Meanwhile, Colliers noted that property developers are starting to line up leisure and retail segments and plan to tap demand once the pandemic wanes and market sentiment recovers.

鈥淕iven the relatively cheap developable land in the area, Colliers believes that the development of integrated communities is a practical route for many developers,鈥� the company added.

Furthermore, the new international gateway facility in Clark will likely improve efficiency of logistics operations in northern Luzon. Colliers pointed out that the completion of the Clark International Airport Expansion project might entice other logistics, information and technology, tourism and outsourcing firms to consider Clark for their operations.

鈥淭he improved connectivity should also spur more economic activities and eventually drive the demand for offices, residential and industrial spaces and warehouses in the northern Luzon corridor. Colliers sees the completion of other infrastructure projects such as Skyway 3, Clark-Malolos Passenger Railway, NLEx-SLEx connector and the Subic-Clark Railway further boosting the region鈥檚 attractiveness for logistics-related investments post-pandemic,鈥� the company wrote.

Outside of Luzon, the local government units of Davao and Iloilo are also attracting the eye of investors. According to a white paper published by online property marketplace Lamudi, several companies, especially business process outsourcing firms, continue to expand and establish their operations in these cities.

鈥淲ith the ongoing decongestion efforts of Metro Manila through several decentralization measures by the government, such as stimulating industrial activities in the countryside and enticing more enterprises to set up their operations there, more and more property developers are expanding beyond the country鈥檚 premier urban hub to meet the growing demands of property seekers for residential condominiums in these so-called emerging cities, notably Davao, Iloilo, and Angeles in Pampanga,鈥� the white paper said.

The current trend for developers in seeking out these areas remains to be master-planned or mixed-use townships, integrated communities wherein tenants can live, work, and play without having to face the hassle of commuting.

Townships have the added benefit of allowing communities to better respond to the current and future crises, with an increasing demand for more work and life balance. With remote work becoming the norm overnight, many more employees are exposed to the advantages of working closer to home, limiting their exposure to the virus and securing their health and well-being.

鈥淐olliers believes that there is sustained demand for condominium projects located within townships. In our opinion, the convenience of being near office and retail establishments partly contributes to strong take-up,鈥� Colliers wrote.

鈥淭o take advantage of this demand, Colliers recommends that property firms continue developing integrated communities outside Metro Manila. This should be facilitated by strategic land banking in property investment hubs outside the capital region such as Cebu.鈥� 鈥� Bjorn Biel M. Beltran

Retail is one of the industries most affected by this change. Because of the mitigation measures imposed globally aimed at slowing the spread of coronavirus, the supply, demand, and daily operations of the retail sector have been greatly disrupted. For many weeks in the Philippines, all malls were closed, social gatherings were discouraged, and only essential businesses were allowed to operate.

The overall impact of this on retail is massive. According to the Organisation for Economic Co-operation and Development (OECD), the retail sector is seen worldwide as an economic heavyweight: on average across OECD economies, about 1 in 12 workers are employed in retail, and the sector accounts for almost 5% of GDP. Moreover, it mainly serves final demand, and thus occupies an important position in value chains both as a provider to households and as an outlet for upstream sectors.

What鈥檚 more, retail also often complements activities in other sectors hard-hit by the pandemic, like tourism. The retail sector is very labor-intensive, and relies on low-wage and part-time, on-call and gig workers that are not well-covered by traditional social protection measures, which further strengthens the social consequences of the crisis in this sector.

At the same time, the behavior of consumers regarding their approach to retail has also changed during the pandemic. According to a research done by global professional services firm Accenture, changes to disposable income and available leisure time are influencing consumers鈥� attitudes, behaviors and purchasing habits. For example, 33% of consumers are finding themselves 鈥榝inancially-squeezed鈥�, with less disposable income compared to before the crisis, and are shopping more cost consciously, whereas 26% (the 鈥楻esource-Rich鈥�) have increased both their disposable income and free time, and are enjoying new leisure pursuits.

鈥淚n markets where the pandemic is stabilizing, economic concerns remain high, denting consumer confidence. And although fears about health are gradually subsiding, consumers remain uncomfortable about visiting public places, although they are relatively more comfortable with familiar places such as grocery and pharmacy stores,鈥� Accenture noted in their report.

Moreover, the research found that with lockdowns in place and many stores shuttered, e-commerce has surged among consumers. From previously uninitiated users, adoption has accelerated, especially in under-penetrated categories such as grocery. Consumers have also increased their use of omnichannel services like contactless payment, social commerce, virtual consultations and curbside pickup.

All these factors combined make a perfect storm for retailers across the globe. Global professional services firm KPMG highlighted the need for retailers to readjust and reassess their priorities during the pandemic in order to move forward.

鈥淭he COVID-19 virus has already led to a number of workplace shutdowns and quarantines. Retailers must have a plan that ensures the safety of the employees while also trying to maintain business as usual activities. Beyond simply creating a crisis communications plan, retailers should be thinking about how they will manage their workforce under various different scenarios,鈥� KPMG wrote on their website.

KPMG noted innovative companies in China that have managed to address the many challenges of this pandemic; during the height of the outbreak there, grocery operators temporarily hired thousands of restaurant employees who were idle due to restaurant closure to help meet spikes in demand. Other companies have been moving employees around the organization to fill gaps and relieve overworked departments.

Meanwhile, retailers in other sub-sectors are encouraged to talk to their key suppliers to assess their risks, identify any indirect exposures and create contingency plans.

鈥淩etailers should also be thinking about the impact these massive changes will have on the customer and the customer relationship. How will you maintain trust in your brand and your products and services? How will you reset expectations for today? And how will you recover the customer experience in the future?鈥� KPMG wrote.

Retailers should also take advantage of the surge in the adoption of digital platforms and technologies among consumers to increase their resilience to future shock. Brick-and-mortar retailers can diversify their sale channels by expanding their activity to online sales.

The OECD pointed out that in Korea, the government is strengthening its support for small businesses to enter online sale platforms, while in Japan, the government will provide a business continuity subsidy, which allows firms to diversify and expand their sales channels.

鈥淏eyond financial support, governments should pay attention to regulatory barriers that hinder the participation of traditional retailers in online sales (e.g. permitting and zoning rules) and to framework conditions that affect demand for online sales (e.g. digital literacy, consumer protection, security and reliability of payment systems),鈥� the organization suggested.

鈥淔inally, as COVID-19 affects food and agricultural supply in complex ways, the retail sector should also consider the resilience of its supply chain where needed, notably by relying on more diversified sources of goods, by improving inventory management and by leveraging data analytics to improve forecasts on sales and supply chain tensions.鈥�

The retail industry has weathered disruptions big and small in the past. This is no different. However, the convergence of digital technology, globalization, and increased consumer consciousness presents an entirely new playing field in the world of retail. How much it may change in the coming months and years, only time will tell. 鈥� Bjorn Biel M. Beltran