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  • 2 AMCHAM BUSINESS JOURNAL 2017

    Contents

    Company News Santos Knight Frank Officially Launched in the Philippines, page 32

    Health Matters Hope in the Midst of Epidemic: Makati Medical Center continues to Help HIV Patients, page 10

    Security Digital Technology in Driving Innovative Customer Experience, page 11

    Cover Story Summit on Climate Change, Agriculture, Environment and Infrastructure — A Plan of Action for a strong climate-resilient Cagayan, page 8

    PMFTC donates 3M Pesos worth of shoes and apparel to young athletes of CagayanCompany News, page 26

    6 From the Editor We know Agriculture

    8 Cover Story Summit on Climate Change, Agriculture, Environment and Infrastructure — A Plan of Action for a Strong Climate-Resilient Cagayan

    Health Matters10 Hope in the Midst of Epidemic: Makati

    Medical Center continues to Help HIV Patients

    36 How Excessive Screen Time Affects Your Child's Eyes by Charizze Henson

    38 Healthier and happier Dads Lead to a Better Family Life

    11 Security Digital Technology in Driving Innovative Customer Experience by John Manzano

    12 Business Leadership Program All About BLP 2017

    17 Arts, Culture and Leisure Silence Says More

    22 Getting to Know You AmCham's Agribusiness Champions

    Company News26 PMFTC Donation to Young Athletes of Cagayan32 Santos Knight Frank Officially Launched34 P&G and The "Linis, Lusog, Kabataan" Program

    Feature20 Take Back Your Hearing by Dr. Nelly Ledesma26 Bold Inclusive Reforms for Agribusiness for the

    Next Decade

    39 Business of Business Advice to the Filipino Youth by Ernie Cecilia, DPM

    AmCham's Agribusiness Champions —Mr. Philip G. Soliven and Ms. Varinia Elero-TingaGetting to Know You, page 22

  • AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 3

    Contents

    All rights reserved. AmCham Business Journal is a general business magazine published monthly by The American Chamber of Commerce of the Philippines, Inc., with offi ces at 2nd Floor, Corinthian Plaza, Paseo de Roxas, Legaspi Village, Makati City 1229 (C.P.O. Box 2562, Makati City1265), Philippines; telephones: (632) 818-7911 to 13; fax (632) 811-3081 / 811-3184; emails:[email protected] / [email protected]; website: http://www.amchamphilippines.com. Publication Registration No.: ISSN-0116-452X

    All views expressed in all articles are those of the authors and not of The American Chamber of Commerce of the Philippines, Inc. The American Chamber of Commerce of the Philippines, Inc. accepts no liability for the accuracy of the data or for the editorial views contained in the articles. Publication of unsolicited articles is at the sole discretion of the Publications Committee.

    No article or content can be reproduced in any manner whatsover without the prior written consent or authorization of The American Chamber of Commerce of the Philippines, Inc.

    Entered as second-class mail at the Manila Post Offi ce on May 24, 1921 and on December 10, 1945. Re-entered as second-class mail at the Makati Central Post Offi ce on May 07, 1992 and under Permit #534 dated May 24, 1993.

    PUBLICATIONS

    EBB HINCHLIFFEEditor in Chief

    LESLIE ANN MURRAYManaging Editor

    BEA MARTINEZLayout Editor

    CHET GUEVARAAdvertising Head

    ROY I. FUIGADOPhotographer

    ERNIE CECILIAChairman

    MANUEL R. GUILLERMOPublications Committee Adviser

    ATTY. EMMANUEL T. SANTOSMember

    Published By THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.

    Member PUBLISHER ASSOCIATION OF THE PHILIPPINES, INC.

    PUBLICATIONS

    EBB HINCHLIFFEEditor in Chief

    LESLIE ANN MURRAYManaging Editor

    BEA MARTINEZLayout Editor

    CHET GUEVARAAdvertising Head

    ROY I. FUIGADOPhotographer

    ERNIE CECILIAChairman

    MANUEL R. GUILLERMOPublications Committee Adviser

    ATTY. EMMANUEL T. SANTOSMember

    Published By THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.

    Member PUBLISHER ASSOCIATION OF THE PHILIPPINES, INC.

    AMCHAM ROUNDUP

    14 • Healthcare, Wellness and Pharmaceutical Committee • Trade and Investment Committee

    16 • JFC Meeting with the Department of Labor and Employment

    17 • Young Professionals Committee

    18 • Security Disaster Resources Group / OSAC Committee • Honor Your Staff Day (HYSD)

    OTHER SECTIONS

    3 • AmCham Publications Committee

    4 • AmCham Standing Committees

    5 • AmCham Chapters

    40 • Members' Birthdays: April - May • Index to Advertisers • AmCham Social Media Accounts

  • 4 AMCHAM BUSINESS JOURNAL 2017

    OFFICERS AND DIRECTORS2017

    H.E. SUNG Y. KIMU.S. Ambassador to the Philippines

    Honorary Chairman

    BRUCE WINTONPresident

    RICK SANTOS1st Vice President

    ROBERTO BATUNGBACAL2nd Vice President

    PETER MORRISTreasurer

    MICHAEL HUEHNERICHARD J. MCGONEGAL

    VARINIA ELERO-TINGAPHILIP SOLIVENFRANK A. THIEL

    SHANKAR VISWANATHANMARIFE ZAMORA

    Directors

    GEORGE M. DRYSDALEDON FELBAUM

    ROBERT M. SEARSDirectors, Ex-Offi cios

    EBB HINCHLIFFEExecutive Director

    ATTY. AILEEN TOLOSA-LERMACorporate Secretary

    DEMETRIO P. SALIPSIP, JR.Chairman, AmCham Retirement Fund

    AmCham Standing Committees

    The American Chamber of Commerce

    of the Philippines, Inc.First AmCham in Asia

    AmCham Foundation

    AmDesk at the BOI

    Business Leadership Program (BLP)

    Filipino-American Memorial Endowment(FAME)

    The Arangkada Philippines Project (TAPP)

    Washington Relations / APCAC

    EDWIN D. FEIST / JUN SALIPSIP

    EBB HINCHLIFFE Yves Aguilos

    JUN SALIPSIP / DAVID CALDWELL Pinky Jamili

    Lt. Col. ART MATIBAG Trixia BravoLESLIE ANN MURRAY

    JOHN D. FORBES Yves Aguilos RICK SANTOS / GEORGE DRYSDALE Divina Combes

    ACTIVITIES/ADVOCACY/AFFILIATE

    AMCHAM COMMITTEES COORDINATORS

    Agribusiness

    Energy & Power

    Energy Effi ciency

    Environment and Urban Development

    Extractive Industries

    Financial Servicesand Taxes & Tariff

    Healthcare & Wellness & Pharmaceutical

    Human Capital & Resources

    Information & Communications Technology (ICT)

    • Business Process Outsourcing• Creative Industries

    Infrastructure & Logistics

    Intellectual Property Rights

    Legislative

    Manufacturing

    Professional Women of AmCham

    Security Disaster Resource Group / OSAC

    Tourism & Hospitality

    Trade & Investment

    PHILIP G. SOLIVEN Alyssa DispoVARINIA ELERO-TINGA FRANK THIEL Alyssa DispoJOSE VICTOR EMMANUEL DE DIOS

    SAFDAR QURAESHI Migs Calaguian

    JUN PALAFOX / JAMES DONOVAN Migs Calaguian

    MICHAEL HUEHNE Yves Aguilos

    HENRY T. PELAEZ / ATTY. JULES RIEGO Migs Calaguian

    DONALD R. FELBAUM Trixia BravoEMMANUEL BORLONGAN

    ERNIE O. CECILIA Yves AguilosGRACE SORONGON DONALD R. FELBAUM Trixia BravoFRANK HOLZ

    Trixia Bravo Trixia Bravo JAIME FAUSTINO Migs CalaguianJOHN PETERSON

    Atty. DIVINA P.V. ILAS-PANGANIBAN, LL.M. Trixia BravoJEFFREY A. WILLIAMS, CPP, BAI

    JOHN D. FORBES Yves Aguilos

    ROBERTO BATUNGBACAL Migs CalaguianSHANKAR VISWANATHAN Atty. MELANIE LAGERA Alyssa DispoVARINIA ELERO-TINGA SIMOUN UNG / PETE TROILO Trixia Bravo

    ROBERT BLUME / FARID SCHOUCAIR Alyssa Dispo MARIO BISCOCHO Yves Aguilos

    Membership

    • Kapihan

    • Welcome Breakfast• Networking

    Provincial Chapters• Central Luzon

    • Visayas• Mindanao

    Young Professionals

    Publications

    I N T E R N A L

    ROLAND DELA CRUZ Pauline SantosCHRISTINE STEVENS

    EBB HINCHLIFFE Pauline SantosLESLIE ANN MURRAY Pauline Santos Alyssa Dispo

    EBB HINCHLIFFE Pauline Santos Jaysen Venzon Brenda Lisen Annie Quitay

    MORGAN MCGILVRAY Migs Calaguian

    ERNIE CECILIA Leslie MurrayMANUEL GUILLERMO Bea Martinez

    CHAIRMEN

    I N T E R N A L

  • AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 5

    AmCham Chapters

    THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.(Founded 1902 - Incorporated 1920)

    2/F, Corinthian Plaza, Paseo de Roxas, Legaspi Village, Makati City 1229Tels.: (632) 818-7911 to 13 Fax: (632) 811-3081

    E-mail: [email protected]: http://www.amchamphilippines.com

    Bruce Winton, PresidentEbb Hinchliff e, Executive Director

    THE AMERICAN CHAMBER FOUNDATION PHILIPPINES, INC.(Founded 1985)

    Leonard Benjamin Development Center4554 Casino cor. Olivarez Streets

    Palanan, Makati CityTels.: (632) 834-0184; 551-8060 Tel/Fax: (632) 834-1192

    E-mail: [email protected]: www.amchamfoundation.com

    Edwin D. Feist, PresidentDemetrio P. Salipsip, Jr., Executive Director

    FILIPINO-AMERICAN MEMORIAL ENDOWMENT, INC. (Founded 1986)

    c/o The American Chamber of Commerce of the Philippines, Inc.2/F, Corinthian Plaza, Paseo de Roxas, Legaspi Village, Makati City 1229

    C.P.O. Box 2562, Makati City 1265Tels.: (632) 818-7911 to 13 Fax: (632) 811-3081

    E-mail: [email protected]: http://fi lipino-americanmemorials.org

    Lt. Col. Artemio Matibag, PresidentLeslie Murray, Vice President

    THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. (Mindanao Chapter-1988)

    Door 9, 3/F, SJRDC Building IIIInsular Village 1, Lanang

    Davao City, 8000Telefax: (6382) 221-6656

    E-mail: [email protected]

    Philip Dizon, PresidentAnnie Quitay, Membership Coordinator

    AMERICAN DESK AT THE BOARD OF INVESTMENTS (Established 1992)

    385 Sen. Gil Puyat Avenue, Makati CityTels.: (632) 895-8851; 895-3918 Fax: (632) 896-2315

    E-mails: [email protected]; [email protected]

    Ebb Hinchliff e - Director, American ChamberYves Aguilos - Government Liaison/Committee Coordinator

    THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.

    (Cebu Chapter-1988)

    Lower Ground FloorWaterfront Cebu City Hotel

    Cebu City 6000Tel.: (032) 232-2373 Fax: (032) 231-0174

    E-mail: [email protected]

    Jeff Minnick, PresidentBrenda D. Lisen, Secretary

    THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC.

    Central Luzon Chapter-2015)

    Building 7294, C.M. Recto AvenueClark Freeport Zone, 2023 Pampanga

    Telefax: (632) 811-3081; Mobile: 0917-5463442

    E-mail: [email protected]

    Ebb Hinchliff e, Executive DirectorJaysen S. Venzon, Membership Coordinator

  • 6 AMCHAM BUSINESS JOURNAL 2017

    Editorial

    Everyone has heard the phrase "If you eat, you are involved in Agriculture" — and it is so true. We are featuring Agriculture as the cover story for this month's journal and we

    We know Agriculture

    Ebb Hinchliff e, Editor-in-Chief

    "If you eat, you are involved in agriculture. If you go to bed tonight with a full stomach, thank a farmer."

    have some good arti cles about this sector included as well.

    Looking back over the past year, AmCham has been pro-acti ve in the agribusiness sector. During the height of the drought in Mindanao, we held an Agri Committ ee Meeti ng/Summit at Park Inn Davao. And just to share a story on the "power" of AmCham, on the eve of the Summit, the skies opened and Southern Mindanao received their fi rst rain in 6 months! (Great coincidence!)

    Following that, AmCham in cooperati on with US AID STRIDE, held a workshop in Cagayan de Oro in which we matched farmers needs with the academe. This has resulted in applying the universiti es research faciliti es and knowledge to assist farmers — many of whom lose over 50 percent of their crops between the fi eld and the dinner table.

    To keep the ball rolling and to show our conti nued support for the farmers, AmCham partnered with PMFTC to hold a summit in Palo, Leyte in assisti ng farmers to use their mobile devices for climate change preparedness. Leyte

    was chosen as the site for this Summit as it was "ground zero" during Super Typhoon Yolanda.

    AmCham then returned to Leyte in January of this year to partner again with STRIDE for a workshop similar to the one in Cagayan de Oro, which discussed the Agribusiness needs that can be addressed by universiti es through the conduct of research.

    Finally and the most recent, and the one featured in the arti cle this month, was an Agri Summit in Tuguegarao. Thanks to the great support, once again of PMFTC, and the Provincial Government of Cagayan Governor Manuel Mamba, AmCham was able to bring assistance to an area that was devastated by Super Typhoon Lawin. It was a fantasti c two-day event with over 450 parti cipants.

    Members have wondered why we are taking such an acti ve role in the agriculture sector for the last few years and I have quickly let them know that while I am an Urban Cowboy from Texas, I am a farmer at heart.

    My father was a tenant farmer in East Texas. He had worked the land unsuccessfully before my birth, so he went to West Texas and worked in the oil fi elds. But as soon as he had enough money in his bank account, he returned to his love for farming in East Texas. Unfortunately round two was no bett er than the fi rst ti me, so he was forced to leave the farming fi elds of East Texas to return to the oil fi elds of West Texas. He worked the next 40 years in a job he did not enjoy but learned to love it, so he could off er his kids an educati on and

    a bett er future.

    He never really left the farm. In our urban setti ng, he turned our back yard into a mini-farm and turned all of his children, including me, into farmers. He insisted we ti ll the land and raise our "crops". Back then, we planted a variety of tomatoes and onions. Then at harvest ti me, we took our products to the market. We were taught to go door-to-door with bags of tomatoes or bunches of spring onions for sale. This conti nued from the ti me I was six years old unti l I was a teenager. And, as the years passed, I began looking forward to spring where I could start my garden again.

    Besides my love of the land, I learned another valuable lesson; and that is to save for the next year. My father had put up money for the fi rst year’s crop, but we had to save some funds from our sales to be ready to buy our own seeds the following year. A good lesson that serves me well even up to this day.

    Today I have the greatest job on earth, but I sti ll have the love of farming and have great respect for the people that work the land.

    Like it was menti oned at the start, "If you eat, you are involved in agriculture. If you go to bed tonight with a full stomach, thank a farmer." n

  • that aim to help agriculture and improve the lives of farmers. Over the past few years she said that PMFTC has evolved from being solely a cigarett e manufacturer into an agricultural company, with thousands of directly and indirectly contracted farmers.

    “With the assumpti on into power by the Duterte administrati on, the agriculture sector is given a new lease in life and we are excited of the prospects ahead for all of us in this sector,” Elero-Tinga added.

    While the Summit was organized

    Summit on Climate Change, Agriculture, Environment and Infrastructure — A Plan of Action for a strong climate-resilient Cagayan

    PMFTC and the American Chamber of Commerce of the Philippines Inc. (AmCham) organized a two-day Summit on Climate Change, Agriculture, Environment and Infrastructure at Hotel Carmelita in Tuguegarao City from January 26-27. The event was held in partnership with the province of Cagayan and the Department of Science and Technology (DOST).

    Cagayan was chosen as the second venue for the summit series because it was devastated by super typhoon Lawin (Haima). In August 2015, PMFTC and AmCham held a summit on Agriculture and Climate Change in Palo, Leyte — the ground zero of super typhoon Yolanda (Haiyan) in 2013.

    PMFTC's External Aff airs Director Bayen Elero-Tinga, in her opening remarks, shared that the company has been involved in various undertakings

    � e end goal of the Summit is to come up with solid action plans that will make the province better prepared in handling calamities similar to super typhoon Lawin. And also to increase the awareness of participants on Disaster Preparedness and Risk Reduction Management.

    to help educate the public on climate change and its adverse eff ects on agriculture, it also tackled other issues concerning the environment and climate change-resilient infrastructure. Disaster Preparedness and Risk Reducti on Management were also among the topics in the two-day summit.

    The end goal of the Summit is to come up with solid acti on plans that will make the province bett er prepared in handling calamiti es similar to super typhoon Lawin. And also to increase the awareness of parti cipants on Disaster Preparedness and Risk Reducti on Management.

    Cover Story

    8 AMCHAM BUSINESS JOURNAL 2017

  • "With the assumption into power by the Duterte administration, the agriculture sector is given a new lease in life and we are excited of the prospects ahead for all of us in this sector"

    - Bayen Elero-Tinga, External Aff airs Director, PMFTC

    For his part, AmCham's Executi ve Director Ebb Hinchliff e expressed his organizati on’s commitment to conti nue helping the country’s agricultural sector by organizing similar future summits in the provinces needing this kind of support, with the help of PMFTC.

    Dr. Alicia G. Ilaga, Director of the Department of Agriculture (DA) Systems-wide Climate Change Offi ce addressed the parti cipants at the closing ceremonies where she discussed Adaptati on and Miti gati on Initi ati ves in Agriculture (AMIA).

    Workshop materials were provided by the DA Head Offi ce, DA System-wide Climate Change Offi ce, DA Region 2, DA Region 5, the Central Bicol State University of Agriculture, the local government of Irosin, the Philippine Atmospheric, Geophysical, &

    Astronomical Services Administrati on (PAGASA), the Philippine Insti tute of Volcanology and Seismology (PhiVolcs), the Department of Environment and Natural Resources (DENR), Nati onal Housing Authority (NHA), the Department of Public Works and Highways (DPWH), Nati onal Economic and Development Authority (NEDA), and the provincial Disaster Risk Reducti on and Management Offi ce (DRRMO).

    Parti cipants in the workshop included town and city mayors, LGU representati ves, city and municipal agriculturists, farmer leaders, representati ves of various government agencies, non-government organizati ons, the private sector led by the Filipino-Chinese Chamber of Commerce of Cagayan, and those involved in disaster relief and rescue operati ons. n

    Cover Story

    AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 9

  • 10 AMCHAM BUSINESS JOURNAL 2017

    Health Matters

    The Philippines' premier health institution Makati Medical Center (MakatiMed) has been treating individuals diagnosed with the Human Immunodeficiency Virus (HIV) ̶ a disease transmitted through blood and bodily fluids during sexual contact, infected needles from drug use, breastmilk, and pregnancy ̶ through the Center for Tropical & Travel Medicine (CTTM). Today, CTTM's services could not be more relevant. Since the first reported case of HIV in the Philippines in 1984, the incidence of the disease has increased drascally—and continues to give concern despite a decline in HIV cases and AIDS-related deaths worldwide.

    According to the Department of Health (DOH), as of 2016, there were 26 individuals newly diagnosed with HIV every day—one every hour. This incidence rate has been steadily increasing through the years, starting with just one case reported daily in 2008. In DOH's latest official report (June 2016), there were 4,643 new cases for the first half of 2016, or a total of nearly 35,000 cases since 1984. In June 2016, alone over 800 cases were reported which was 9 percent higher compared to the same period last year. It was the highest number of cases reported since 1984.

    To adequately address the volume of HIV patients, MakatiMed has constinuously trained its medical team and upgraded its facilities. MakatiMed coordinated with the Department of Health (DOH) to request antiretroviral (ARV) medication, which strengthens the immune system and prevents HIV from progressing to Acquired Immune Deficiency Syndrome (AIDS). Recognizing its invaluable

    Hope in the Midst of Epidemic:Makati Medical Center continues to Help HIV Patients as the f irst DOH-recognized HIV treatment hub

    contribution to the treatment of HIV, DOH declared MaktiMed as the very first hospital-based HIV Treatment Hub in 2010.

    True to its commitment, MakatiMed went a step further and opened its CTTM in 2013. The CTTM is a legacy of the late Dr. Vilma Co, an Infectious Disease specialist and former head of MakatiMed's Section of Infectious Disease, who was instrumental in the creation of the facility. Employing a holistic approach to the treatment of patients with tropical diseases such as malaria, and sexually transmitted diseases such as HIV, the CTTM, now headed by Janice C. Caoili, MD, offers expert diagnosis, laboratory testing, treatment, education,and counseling, as well as vaccinations and medical prophylaxis for travel-related diseases and advice on health risks related to travel.

    CTTM also extends its assistance to financially challenged HIV and AIDS patients by helping them file PhilHealth (the Philippines' health insurance program) requirements to avail of Outpatient HIV

    and AIDS Treatment (OHAT) packages. CTTM also regularly offers free and confidential HIV screening. It first offered free testing in April 2014, in celebration of its founding anniversary.

    CTTM encourages everyone to get tested for HIV—and gives hope to those who receive a positive result. CTTM emphasizes for long as they take their medication daily and regularly visit their doctor, people living with HIV can exercise regularly, spend time with family and friends, stay engaged with the world, and even practice safe, protected sex—just like any healthy individual. n

    For more information, please contact MakatiMed On-Call at +632 8888 999, email [email protected], or visit www.makatimed.net.ph.

  • AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 11

    Digital Technology in Driving Innovative Customer Experienceby John Manzano, Country Manager - TeleDevelopment Services

    Revisit how banking was done a couple of decades ago. Aft er fi lling out a piece of paper and tediously falling in line, and on top of that, you spend a substanti al amount of ti me as your request is being processed. How about in hailing a cab? Now imagine how phone conversati ons and communicati ons transpired during that period. Today, everything can be done through a mobile phone, from banking to booking reservati ons for travel. These are all Technology led changes. But the bigger questi on is how it relates to Customer Service Experience. As these innovati ons make noise around the Informati on and Technology-Business Process Management (IT-BPM) Industry, here are some of the apparent technology levers impacti ng customer service.

    Roboti cs, Arti fi cial Intelligence, and Self-Service

    A relati vely new technology, termed Roboti c Process Automati on (RPA), is aimed at carrying out business processes that would normally be done by human beings. It is relati vely a great opti on for processes that are repeti ti ve and rules-based. The soft ware may cost a fracti on compared to that of a full-ti me employee; but it can potenti ally skew the business case dynamics of outsourcing.

    The IT-BPM Industry is bound to move from basic processes to more complete line of services that necessitate creati ve and analyti cal thinking. Outsourcing companies are beginning to realize this and have started to off er this type of facility through Knowledge Process Outsourcing (KPO) services.

    It is, however, important to note that most customers do not like talking to a machine Interacti ve Voice Response (IVR) and prefer to talk to an actual human being. The technology that subsists today is sti ll comparati vely young; and it can

    imitate the basic transacti onal responsibiliti es, and is likely to aff ect around 20-40 percent of processes. But, as the technology develops at an accelerati ng rate, this percentage will most certainly increase.

    Cloud Computi ngThe quality of service should be a noteworthy

    considerati on in the IT Industry as cloud-based, BPO becomes more pervasive and moving towards the directi on of commoditi zati on. This technology can dramati cally improve customer service experience as representati ves are bett er equipped with a wealth of informati on accessed instantaneously.

    Cloud computi ng can allow IT-BPM companies to have powerful set of tools to help manage their customer service processes. Everything from call scripti ng, returns, and case resoluti on processes can be defi ned and implemented directly. This, in turn, ensures consistency and speed across every channel, from the call center to the Web. Ulti mately, these lead to best practi ces, reduce training ti mes and cost, and accelerate customer sati sfacti on.

    Analyti csNew types of data and ways of analyzing them

    have the prospect to take the IT-BPM industry to a higher level of insight. The potenti al, nonetheless, won't be fully appreciated unti l the players raise data analyti cs to a strategic level. BPO providers with strength in analyti cs leverage the use of sophisti cated tools for stati sti cal surveying, root-cause analysis, and process opti mizati on.

    A well-uti lized analyti cs can drive effi ciency and reduce costs, improving client relati ons and lead to success at a high-level market. From a customer service experience perspecti ve, the data acquired will alleviate customer sati sfacti on as issues will be addressed in a more effi cient and ti mely manner. Delegati on of tasks can be systemati cally organized to ensure a smooth fl ow in operati ons, lessening average handling ti me and quality service.

    Internet of Things (IoT)More than 40 percent of the world's populati on

    is connected online. The emergence of social

    media has att racted more people and companies to conduct their business on the World Wide Web. IoT is the internetworking of devices with sensors and other technologically advanced soft ware. Imagine a "smart home" where a resident's routi ne at his house is directed by arti fi cial intelligence – from what ti me the alarm will sound to simultaneously brewing coff ee at the moment you enter the kitchen.

    Relate this to a customer service setti ng, you will have an experience like no other. It can be possible that the customer service representati ve already knows the issue, before it is ever relayed by the customer. This results in less phone ti me and increased customer sati sfacti on.

    MobilityNeedless to say, all of these

    technological advancements have linked worlds and the informati on highway has expanded exponenti ally. As earlier menti oned, most of the basic necessiti es can already be accessed via smartphones of which there are 2.16 Billion users worldwide. Clients can now reach customer service practi cally anywhere through diff erent channels beside the traditi onal phone.

    The TDS Diff erenceWe at TeleDevelopment Services

    realize the advancements in technology as discussed above.

    Contact us now and let's talk about success. n

    TeleDevelopment Services is the exclusivedistributor of Versant in the Philippines. To know more about the product please contact: TeleDevelopment Marketi ngTo request for a free trial of Versant, email us with the header: Amcham VersantTelephone: (632) 631-8230Email: marketi [email protected]: www.teledevelopment.com

    Security

  • 12 AMCHAM BUSINESS JOURNAL 2017

    Business Leadership Program

    All About BLP 2017

    ABOUT THE BUSINESS LEADERSHIP PROGRAM (BLP) (APRIL 21-30, 2017)

    The AmCham Business Leadership Program (BLP) aims to develop future leaders and culti vate the youth to create positi ve social change in the country.

    It off ers well-qualifi ed undergraduate Filipino students an opportunity to gain a new understanding of key global business and economic issues, through a program of site tours plus in-depth discussions with management professionals from a wide spectrum of top AmCham member

    companies and faciliti es in and around Manila, as ti me permits.

    In additi on, the BLP aims to:

    • Promote a venue for the constructi ve competi ti ve exchange of ideas among aspiring young leaders from various universiti es across the country;

    • Harness students' analyti cal and problem- solving skills in the context of real-life business environment; and

    • Help students enhance mutual understanding, cooperati on, and communicati on skills, especially with AmCham member companies.

    PROGRAM COMPONENTS

    The BLP is a week-long program for university students, consisti ng of company visits, meeti ngs with CEOs, and a mentored business project.

    COMPANY VISITSParti cipants are exposed to the real world operati ons of multi nati onal companies through site visits and meeti ngs with top company offi cers. The program provides a rare opportunity for students from diff erent universiti es and backgrounds nati onwide to learn together and interact with corporate executi ves of presti gious internati onal fi rms.

    Companies to visit cover various industries, including banking, business process outsourcing, consumer products, hotels, informati on and creati ve communicati ons technology, manufacturing, nutriti on, energy, development and logisti cs.

    During the site visits, a senior company executi ve meets for discussions with the students and discusses with them, among others, the company's operati ons and the situati on of the specifi c industry.

    TALKSThroughout the week, students will also att end interacti ve talks by key offi cers from AmCham member fi rms and partner organizati ons on various topics ranging from current issues, viewed from a multi nati onal business perspecti ve, to practi cal concerns, such as leadership management, business ethics, and how a job search works in the real world.

    OTHER ACTIVITIESAside from the above, students will have an opportunity to interact with the alumni of the BLP, US Embassy offi cers, the AmCham Board of Directors, BLP Company partners, and other AmCham members during a pre-program Welcome Recepti on and the closing Awards Dinner. These are excellent opportuniti es for students from diff erent BLP batches to network with one another, as well as with guests from AmCham member fi rms.

    The fi nal successful candidates will have the privilege to be administered the presti gious TOEIC (Test of English for Internati onal Communicati on) and receive a Certi fi cate of Accomplishment.

    BLP parti cipants may also have the opportunity to att end AmCham acti viti es (e.g., Committ ee Meeti ngs, or a General Membership Meeti ng) during the week and further interact with AmCham members.

    SCHEDULEThe week-long BLP kicks off with a Welcome Lunch, followed by a Pre-Program Welcome Recepti on in the evening of Day One.

    There will also be a Team Building acti vity to develop the parti cipants' camaraderie.

    All acti viti es begin at 7:00 a.m. daily at the AmCham offi ce or at AIM in Makati ; it is a busy week so an early start is necessary.

    There will be breakfast meeti ngs with CEOs, company visits and talks scheduled every day. A schedule of acti viti es will be given to each parti cipant.

    Students return to the AmCham offi ce or at AIM at the end of each day around 7 p.m. (depending on daily schedule) for dinner and to work on their team Business Plan.

    The week-long program ends with the judging of the team Business Plans, followed by the Awards Dinner.

    BUSINESS PROJECTDuring the week parti cipants will be divided into teams (composed of students from diff erent schools, diff erent courses, and possibly diff erent backgrounds) and required to apply their knowledge and work together on a set project – a Business Plan, the topic/industry of which will be announced. The teams will present their plan and present their plans to a panel of selected judges at the end of the week. The three best projects and a best individual presenter will be recognized in a ceremony during the closing Awards Dinner.

    Details of the project and guidelines shall be provided and explained to the parti cipants before the start of the week.

  • AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 13

    Business Leadership ProgramBLP 2017 TOP 32 PARTICIPANTS

    Business Leadership Program

    Ateneo de Manila UniversityDe La Salle University De La Salle UniversityDe La Salle UniversityDe La Salle UniversityDe La Salle UniversityEnderun CollegesEnderun CollegesTreston Internati onal SchoolUniversity of Asia & The Pacifi cUniversity of Asia & The Pacifi cUniversity of Asia & The Pacifi cUniversity of Santo TomasAquinas University of LegazpiAteneo de Naga UniversityBenguet State UniversityFAITH First Asia Insti tute of Technology and Humaniti es Lipa-BatangasHoly Angel UniversityHoly Angel UniversityUniversity of Nueva CaceresCentral Philippine University IloiloSilliman UniversityUniversity of Cebu-LapuLapu & MandaueUniversity of San Carlos CebuUniversity of San Carlos CebuUniversity of San Jose Recoletos CebuUP Visayas IloiloAl Khwarizmi Internati onal CollegeAteneo de Zamboanga UniversityAteneo de Zamboanga UniversityXavier University – Ateneo de CagayanXavier University – Ateneo de Cagayan

    1. John Michael H. Bernil2. Patricia H. Go3. Timothy Joseph G. Henares4. Kyle Trixia E. Noriega5. Jan Patrick G. Si6. Rizza Mae L. Tan7. Nadine Amber N. Masorong8. Ariel Joshua D. Regidor9. Bethany Anne L. Padrelanan10. Gian Karlo P. Bagui11. Mandy Grace Pauline R. Ilad12. Miguel Jose S. Punsalan13. Mark Angelo V. Tolenti no14. Karen Daniele Besmonte15. Katherine V. Chancoco16. Alladin A. Banez17. John Emmanuel C. Magti bay18. Yvonne M. Candelaria19. Brylle Nicol Jhon I. Pati u20. Daniel Angelo D. Miradora21. Jan Christi an I. Espanola22. Nathalie M. Angeles23. Rizaldy T. Baguio24. Joshua Cesar B. Uy25. Mary Jubelle M. Manatad26. Katrina Philline Mae T. Casenas27. Edsel Francis T. Lima28. Arizza M. Bacaraman29. Katheryn Sheena T.B. Casimiro30. Jordan F. Lascota31. Agnes Isabelle O. Adviento32. KrishiaUriele T. Galanida

    BS BiologyBS AccountancyBA Internati onal Studies-European StudiesBS AccountancyBS Chemical EngineeringBS Applied Corp ManagementBS EntrepreneurshipBSBA Technology ManagementBSBA Marketi ngMS Industrial EconomicsMS ManagementMS MangementBSBA Marketi ng ManagementBS AccountancyBSBA Business Management Honors’ ProgramBS Agribusiness-Marketi ngBS Computer ScienceBS Accounti ng TechnologyArchitectureFinancial ManagementBS AccountancyBS AccountancyBS Informati on TechnologyBSBA Marketi ng ManagementBS AccountancyBS AccountancyBS AccountancyBS AccountancyBS AccountancyBS AccountancyBSBA Marketi ng ManagementBS Accountancy

  • AmCham Roundup

    HEALTHCARE, WELLNESS AND PHARMACEUTICAL COMMITTEE MEETING

    Extra Care for Your Liver - the Other Vital Organ

    The AmCham HealthCare, Wellness and Pharmaceuti cal, together with the Makati Medical Center (MMC) conducted, a meeti ng on healthy lifestyle and care for the liver on February 7. The meeti ng was led by Dr. Madalinee Eternity Labio, Hepatologist and Dr. Rey Ponteras, HealthHub Clinical Manager. Both speakers are affi liated with MMC.

    Dr. Labio started the session and discussed how to protect our liver and prevent liver damage. She said that when it fails, there is no eff ecti ve substi tute that can perform its many vital functi ons, unlike those of other vital organs such as the kidney, wherein you can employ dialysis. She also gave advice that the rule of liver disease preventi on is to get tested even when appearing healthy. Dr. Ponteras on the other hand, provided informati on on various technologies that can help maintain the health of our liver. He also gave ti ps on lifestyle improvement.

    Aft er their presentati ons, the att endees were given an opportunity to ask questi ons. n

    Report of Trixia Bravo, Coordinator

    Mr. Jeff rey Williams, Att y. Benjamin Lerma,Att y. Divina Ilas-Panganiban Mr. Don Felbaum

    Mr. Emmanuel Borlongan Dr. Madalinee Eternity Labio

    Dr. Rey Ponteras

    On February 14, the Trade and Investment Committ ee invited Professor Emmanuel Leyco from Asian Insti tute of Management to give a review of the Philippines' economic performance from 2016, as well as a picture of the Philippine economic climate in 2017.

    His presentati on focused on three aspects, namely: 1) Stati sti cal data of economic factors from the previous administrati on, 2) The Ten-Point socio-economic agenda of the Duterte Administrati on, and 3) His recommendati ons for the current administrati on on how to move forward.

    He provided his excepti onal analysis as to how investments will conti nue to fl ourish in the country, despite some uncertainti es from the government. n

    Report of Yves Aguilos, Coordinator

    TRADE AND INVESTMENT COMMITTEE MEETING

    2017 Economic Brief ing

    Mr. Mario Biscocho andProfessor Emmanuel Leyco

    14 AMCHAM BUSINESS JOURNAL 2017

  • AmCham Roundup

    JFC Meeting with the Department of Labor and Employment

    The Joint Foreign Chambers had a meeti ng with the Department of Labor and Employment Secretary Silvestre H. Bello III. Due to ti me constraints, not all agenda listed was discussed. Below is the summary of the discussion.

    1. Introducti on of Joint ForeignChambers and Arangkada

    Mr. Ho Ik Lee gave Sec. Bello a briefbackground and previous acti viti esof the Joint Foreign Chamber.Mr. John Forbes also gave a copy ofthe Arangkada's Fift h AnniversaryAssessment: "A Bolder & MoreInclusive Decade".

    2. Status of Department Order No. 1(Series 2017) on Job Contracti ng

    Sec. Bello shared that he is waiti ng forthe inputs of fi ve DOLE Undersecretariesand three former DOLE Secretariesthat will be consolidated andeventually circulated to all labor andmanagement groups for them toreview and comment. Once fi nalized,it will be called as the DepartmentOrder No. 1 (s. 2017). Mr. Henry Schumacher menti oned the abuse of ENDO with companies modernizati on through the use of technology and machineries.

    Schumacher hoped that there will be a middle ground included in the Department Order to keep people employed/generate employment.

    Sec. Bello then replied by saying one of the major mandates of DOLE is to att ract more migrant workers with insured protecti on and welfare and for the department to do that, they have to generate employment for them.

    Att y. Mimi Malvar made an appeal to consider the peculiariti es of the Informati on and Technology-Business Process Managemant (IT-BPM) industry in which most of their members in the industry especially the defi niti on of in-house agency. Att y. Malvar also added that they already submitt ed their positi on lett er to Dir. Benjo Benavidez.

    3. Apprenti ceship Bill and K-12 80H Immersion

    As the spokesperson in favor of Apprenti ceship, Mr. Schumacher shared that they are in discussion with the House committ ees in congress to approve the Apprenti ceship Bill. In the current Apprenti ceship Bill is only limited to six months which they deemed short. That is why they are in discussion with TESDA to extend the apprenti ceship up to two years.

    Mr. Ernie Cecilia also shared that from 1970 up to this year, the number of legiti mate apprenti ce recorded by TESDA is only closed to 25,000 whereas in Thailand it is close to a million apprenti ces every year, especially in the car manufacturing sector. Mr. Schumacher then menti oned that there are also a number of abuses recorded in the past wherein apprenti ceship was

    (Front L-R): JCCIPI Vice President Nobuo Fujii, ANZCham Executi ve Director Benjie Garcia, DOLE Secretary Silvestre Bello III, PAMURI Director Att y. Mimi Lopez Malvar, KCCP President Ho Ik Lee, Amcham Human Capital and Resources Committ ee Chair Ernie Cecilia, KCCP Member Att y. Lope Manuel Jr.; (Back L-R): KCCP Director Representati ve Young Du Kang, KCCP Corporate Secretary Att y. Rolando Villones, Amcham Executi ve Director Ebb Hinchliff e, Amcham-TAAP Senior Adviser John Forbes and ECCP Vice President for External Aff airs Henry Schumacher

    used as a replacement for ENDO. He also menti oned that he worked closely with the previous administrati on to add safeguards in the Senate bill to avoid future abuses.

    K-12 program was also opened by Mr. Schumacher saying that the 80 hours immersion is too limited so they tried to fi nd ways to prolonged this. He reiterated that both K-12 Immersion and Apprenti ceship Bill is a supply chain for employment.

    4. More Flexible Labor Code on hiring andfi ring

    This agenda was opened stati ng that many businessmen and managers are complaining how hard it was to terminate/fi re regular employees because they have to get clearance from the Department of Labor and Employment, which Sec.Bello denied saying it's not true, and that there is no need to get any clearance from DOLE. They only need a noti ce that a certain company will fi re an employee under a circumstance.

    5. NLRC-Pro Labor/growing issue againsthiring Filipino seafarers

    Mr. Schumacher briefl y discusses this agenda stati ng that there are currently around 75,000 Filipinos working in ships, the problem is in NLRC in cases between disputes such as if a seafarer has an accident enormous claims are listed so that they can be negoti ated. At the moment, NLRC decides immediate payment, which must be changed, otherwise the Filipinos will lose their positi on as seafarers around the world. He also menti oned that they are discussing this closely with the mariti me industry and that we have to solve the NLRC problem.

    Mr. Schumacher then requested if he can discuss this issue further to another scheduled with the offi cers of DOLE. *Mr. Cecilia also raised the possibility of having a fi xed quarterly meeti ng with the DOLE in which the Secretary agreed to. n

    * The fi rst quarterly meeti ng with DOLE will be sponsored by KCCP on March. Final date, ti me and venue will be announced once fi nalized.

    16 AMCHAM BUSINESS JOURNAL 2017

  • AmCham Roundup

    AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 17

    YOUNG PROFESSIONAL COMMITTEE MEETING

    Identifying Yuppie's Weakness and turning them into Strengths

    AmCham's Young Professional Committ ee held its meeti ng on February 15 at the AmCham Hall. The speaker, TJ Pestaño from Manila Recruitment, talked about identi fying the diff erent weaknesses of Millennials and the role companies, organizati ons, and other insti tuti ons play in turning these into strengths.

    Highlights of his presentati ons include understanding the diff erent work ethics of Millennials, taking into considerati on their working environment, and giving them regular feedback and recogniti on at work, among others.

    The 29 parti cipants made the discussion very interesti ng because of the diff erent ideas, experiences, and opinions they shared, which gave each other a new perspecti ve about Millennials. n

    Report of Migs Calaguian, Coordinator

    Mr. Angelo Tan andMr. TJ Pestaño

    Mr. TJ Pestaño andDennis Pabelico

    Mr. TJ Pestaño andKshiti j Bhandari

    Maria Bermudez andRanier Soria

    Lesti e Fronteras andMr. TJ Pestaño

    Artist: Sam Martinez, BSN, RN New York, New York

    Title: "Silence Says More"

    Medium: Digital Canvas

    Instagram: sunnybts

    E-mail: [email protected]

    Arts, Culture and Leisure

    AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 17

  • AmCham celebrated its 34th Honor Your Staff Day (HYSD) on february 17 at the Marriott Hotel Manila at 12:00 NN to 03:00 PM. The event was hosted by actress and dancer, Ms. Regine Tolenti no. Ms. Mee Kim, Founder and President of CEO Suite, served as the Guest Speaker.

    Ms. Kim's presentati on focused on the diff erent traits she believes will lead to great success. She highlighted that an individual can att ain self-improvement through constant practi ce and by always doing their best. In additi on, an individual must persist - despite criti cism, rejecti on, adversity, and prejudice. Finally, she concluded that a passion in life; a reason behind working; a focus on one's responsibiliti es; being a bett er version of one's self; great ideas; service to others, and persistence are some of the ingredients for a successful life.

    Ms. Aicelle Santos and Jose Mari Chan serenaded the audience asthey sang "Please be Careful with my Heart". Actor Derek Ramsay, was also present during the event, had

    34TH HONOR YOUR STAFF DAY

    Celebrating and Giving Honor to Hardworking Employees

    SECURITY DISASTER RESOURCES GROUP / OSAC COMMITTEE MEETING

    Addressing the issue of HIV in the Workplace and the Community

    Approximately 60 individuals - members, non-members, and friends - joined the Overseas Security Advisory Committ ee, Manila Country Council, the American Chamber of Commerce of the Philippines, and the Security and Disaster Resources Group in discussing the issue of HIV in the workplace and in the community. Ms. Maria Tarcela S. Gler, MD was the speaker at the Meeti ng.

    Dr. Gler shared with the audience the symptoms of HIV, AIDS, its related illnesses, the current state of the disease in the Philippine context, and available treatments. She also gave advice on self-protecti on and staff protecti on, relati ve to HIV during emergency situati ons. She also delved on methods and techniques to help staff and any visitors carrying the HIV virus.

    The committ ee and its chairmen would like to extend its appreciati on to Makati Medical Center for making the meeti ng a success. n

    Report of Trixia Bravo, Coordinator

    Ms. Maria Tarcela Gler, MD

    Mr. Steve Cutler with att endee

    Johnny Sinon, Jin Kim, Pete Troilo, Dr. Maria Tarcela Gler, Steve Cutler, Simoun Ung

    female att endees swooning with his good looks and cool personality. Overall, 250 staff and bosses att ended this annual HYSD.

    This event would not have been possible without our venue partner, The Marriott Hotel Manila. Also our thanks to our corporate partners – BDO, Coca-Cola FEMSA, P&G, PMFTC, and Santos Knight Frank. We would also like to thank our premier sponsors – Delta Airlines, Asian Tigers, CAI-STA, AmWay, I'm Hotel, and Onsen Spa. Finally, we would like to acknowledge our other sponsors – Belo, Cargill, CEO Suite, Clorox, Fluor, Marsman Drysdale, McCormick, Tupperware, 3M, Calenergy, Dads/Sambokojin, Diamond Hotel, Discovery Primea, Don Tim, Dusit Thani, Erick San Juan, FedEx, Forth & Tay, Microtel, Monsanto, Movenpick, Novotel, OSI Philippines, RCG Global Services, Citi , EE Black, Quezon Power, and JP Morgan Chase & Co. n

    Report of Migs Calaguian, Coordinator

    AmCham Roundup

    18 AMCHAM BUSINESS JOURNAL 2017

  • 34TH HONOR YOUR STAFF DAY

    Celebrating and Giving Honor to Hardworking Employees

    AmCham Roundup

    AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 19

  • Feature

    20 AMCHAM BUSINESS JOURNAL 2017

    Hearing is an important sense – and it is hard to fi nd out you are losing it. Luckily there are soluti ons to help you hear again.

    Do you have a hearing loss?The World Health Organizati on (WHO)

    esti mates that hearing loss aff ects more than 250 million people worldwide. But how can you tell if you are one of them?

    Early signs may be subtle – your friend or partner may oft en repeat herself, or you may have diffi culty hearing at a party or family gathering. As your hearing loss gets worse, it will be more diffi cult to understand the world around you. It’s important to take acti on now.

    Look for these hearing loss signs:

    • Diffi culty understanding people, especially in crowded places like restaurants

    • Need to have phrases repeated• High volume on the TV or stereo• Diffi culty hearing on the phone• Diffi culty following group conversati ons

    Types of hearing lossHearing loss can mean many things,

    from the slight inability to hear birds sing to total deafness. Confused about the type of hearing loss that you or a loved one has? Read on.

    Take Back Your Hearingby Dr. Nelly R. Ledesma, Audiologist - Ledesma Audiological Center

    CONDUCTIVE HEARING LOSSConducti ve hearing loss happens when sound

    doesn't travel effi ciently from the outer ear and into the eardrum and bones of the middle ear.

    SENSORINEURAL HEARING LOSSSensorineural hearing loss happens when there

    is damage to the inner ear or to the nerves that travel from the ear to the brain.

    What is hearing loss in one ear?Hearing loss in one ear is also known as Single

    Sided Deafness or simply SSD for short. It is a conditi on where there is signifi cant or total hearing loss in one ear.

    If you have SSD, your hearing loss can be helped with a hearing aid which transmits sounds from the deaf ear to a hearing aid in your bett er ear.

    Symptoms of hearing loss in one earThe symptoms of SSD vary but most oft en it

    is diffi cult for you to locate a sound source. For example, you might have diffi cultly determining where a voice is coming from when addressed from your deaf side. You may also miss out

    on conversati ons or have diffi culti es communicati ng in certain situati ons.

    Causes of hearing loss in one earHearing loss in one ear can arise from a

    number of diff erent conditi ons, including:

    • Sudden deafness• Physical damage to the ear• Pressure on the hearing nerve• Inner ear problems including infecti ons (viral or bacterial)

    • Diseases such as measles, mumps and meningiti s

    Degrees and shapes of hearing lossYour hearing professional will take into

    account your degree and type of hearing loss when recommending a type of hearing aid.

    Each person has a unique type and level of hearing loss, and some hearing aids may work bett er for you than others.

    Degrees of hearing lossHow severe is your hearing loss? That

    depends on which levels of sound you can hear. Your hearing professional will chart these levels on an audiogram in order to determine your degree of hearing loss. Hearing loss is generally classifi ed in seven degrees: normal, slight, mild, moderate, moderately severe, severe, and profound.

    Shapes of hearing loss? As noted, your hearing may be limited to one ear or aff ect both. There are four confi gurati ons of hearing loss that you could be experiencing.

  • Feature

    AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 21

    HEARING AID TYPESThere are two types of hearing aids

    available: those that fit behind the ear and those that fit in the ear.

    Which hearing aid is just right for you depends on your lifestyle, ear shape and listening needs. Explore your hearing aid options by choosing a model below.

    HEARING AIDS THAT FIT BEHIND THE EAR

    • Powerful sound• Easy-to-use controls• Color personalization• Moderate to severe hearing loss

    HEARING AIDS THAT FIT IN THE EAR

    • Small and discreet• Easy to handle• Made to fit your ear• Mild to moderate hearing

    Clinical Diagnostic ServicesMost Audiological Centers provide an array

    of hearing services to identify the degree, configuration, and type of hearing loss. These include: hearing screening, diagnostic evaluations, emittance testing and special auditory tests. In addition, some do outside consulting services to convalescent hospitals, homes, senior citizen centers, and hearing conservation services to private industries.

    About the author:

    Dr. Nelly R. Ledesma is the Chairman and Chief Audiologist for Ledesma Audiological Center, Inc., and the first Filipino audiologist to practice in the Philippines 40 years ago. Prior to setting up her own practice in 1977, she was the lead Audiologist for the U.S. Veterans Administration in the Philippines.

    Ledesma Audiological Center, Inc., has nine offices nationwide, with its main office situated in the Makati Cinema Square in Makati.

    Dr. Ledesma is offering all members of the American Chamber of Commerce (AmCham) a free hearing test, waiving their normal fee; and – further- is offering a 20% discount on any of their WIDEX hearing aid products at their main office in Makati Cinema Square upon presentation of their AmCham Membership Card. This offer is valid ONLY at their Makati office.Mr. Joseph T. De Leon is the contact person for more information on the free hearing test and the 20% discount. He can be contacted at the following numbers: 818-8564 or 811-1830, 0918-970-7523; 995-801-2157 – [email protected] or [email protected]. Address: Lower Level, Makati Cinema Square, Pasong Tamo Street, Makati City. Ledesma Audiological Center is the sole distributor of the WIDEX hearing aids and the complete range of WIDEX products.(Members - Please contact Pauline Santos, AmCham Membership Manager if you have not yet collected yourMembership Card.)

  • Getting to Know You

    Philip G. SolivenPresidentCargill Philippines Inc.

    AmCham'sAgribusiness Champions

    Philip G. SolivenAmCham DirectorCo-Chair Agriculture Committee

    Question: What is your core business and how many people are employed by your company?

    Philip Soliven: Historically, Cargill was known as an agriculture company, but it has grown into the largest privately held company in the U.S. that provides food, agriculture, financial and industrial products, and services in the world. We have been in the business for over 150 years and we have 150,000 employees in 70 countries. In Asia Pacific alone, we employ 50,000 individuals across 16 countries.

    In the Philippines, we have 600 people working for us across 18 locations throughout the country. Our operations include animal nutrition, poultry processing, grain and oilseed originating, processing and marketing of food and beverage ingredients. With the new poultry facility that we are currently building together with our partner Jollibee, we will be adding an additional 1,000 employees to our workforce.

    Question: When was your company established in the Philippines and what are the transformations your company have undergone since then?

    Philip Soliven: Cargill was established in the Philippines in 1948. In fact, the Philippines was the first country we established a physical presence in Asia Pacific. Over 70 years, much has changed but we have always worked closely with farmers, customers, the government, and communities to contribute to the agricultural economy in the Philippines, through business investments, as well as our sustainability and corporate responsibility programs.

    Question: How has the Philippines developed as a conducive investment destination from your company's standpoint?

    Philip Soliven: We have a deep and long history in the Philippines having been here for 70 years. The country has generally enjoyed a healthy economic growth over the years and is today one of the fastest growing economies in the Asia Pacific region. The strong relationship between the U.S and the Philippines has been a boon for U.S. companies like us. In addition, Philippines has traditionally been and still is an agricultural economy, which is a natural fit for Cargill. The Philippines is currently enjoying its demographic dividend from its large, young, and productive workforce. These are attractive conditions for

    22 AMCHAM BUSINESS JOURNAL 2017

    We continue this series to introduce our AmCham Board Members and Committee Chairs to the members. These AmCham members are a dedicated group of men and women who volunteer their valuable personal time to assist the Chamber in assuring we have timely, interesting and in-depth programs for our members.

    This issue spotlight Mr. Philip Soliven of Cargill Philippines Inc. and Ms. Virinia Elero Tinga of PMFTC Inc.

  • Getting to Know You

    24 AMCHAM BUSINESS JOURNAL 2017

    investing in food and agriculture.

    Question: Please give us a sense of the distinct culture in your organization.

    Philip Soliven: Since our company was founded in 1865, Cargill has acted on the belief that doing the right thing sets the foundation for long-term success. To this day, this has not changed and we remain committed to this. We have a code of conduct, grounded on the seven guiding principles, which outlines our company's ethical and compliance standards for conducting business throughout the world and serves as a guide for employees.

    We are also evolving as a company. In the past years, we have seen an increasing focus on accelerating our progress in enabling sustainable agriculture supply chains, on becoming more declarative about what our company stands for, on fostering an open and transparent culture, and on becoming a more inclusive organization.

    Question: What is your leadership style? Have you modified your working style (if at all you did) to be more effective in the Philippine cultural environment?

    Philip Soliven: As our CEO David MacLennan once said, "leadership means adaptability, resilience and moving on, but also getting comfortable with change". Cargill fosters a leadership model with three things at the heart, namely: integrity, courage, and conviction. I truly believe in that. As a leader, I believe you have to first behave ethically at all times, to move fast when required and to not waver in the face of uncertainty.

    I have been extremely fortunate in my 20-years with Cargill to have been given the opportunity to work across different businesses, to perform different functions to different countries. This has truly given me perspective and shape me to be who I am today.

    Question: How do you see the Philippines’ economic competitiveness within the region and what do you suggest are necessary actions to be done.

    Philip Soliven: The macroeconomic environment, as displayed by the GDP growth, is conducive for business and a boost to competitiveness. To progress further and become more competitive, I believe innovation and a business and regulatory environment conducive to investments are key areas to foster. In agriculture, making farming more efficient, more sustainable, and more cost effective will raise the value of our agricultural products and services. In coconut farming for example, we are training farmers to become more efficient and helping them become more sustainable to produce certified sustainable coconut oil. This in turn offers them a differentiated product that have more value in the global market. n

    Practices (GAP) and Agricultural Labor Practices (ALP) to ensure safe working environments, standard farming techniques and productive farm practices while protecting the farmer base.

    Question: When was your company established in the Philippines and what are the transformations your company have undergone since then?

    Varinia Elero-Tinga: PMPMI and FTC have almost 70 years of business experience in the Philippines. Each has undergone a rich history of transformation and growth through the years and manufactures of some of the country's most successful cigarette brands – Marlboro, Fortune, L&M, Champion, Hope, and Jackpot.

    PMI's biggest brand, Marlboro, was introduced in the Philippines in 1955 under a license manufacturing agreement between PMI and La Suerte Cigar and Cigarette Company. In 2000, PMI invested US $300 Million for the construction of a state of the art cigarette manufacturing facility in the Philippines, the biggest single investment of PMI in Asia. PMPMI inaugurated its 25-hectare factory on May 08, 2003 and it was dubbed as PMI's "Asia Jewel". Since then, additional investments were made on the facility.

    This became PMI's major contribution the 2010 business combination with the homegrown FTC, led by Filipino-Chinese business tycoon, Dr. Lucio Tan, fondly called "Kapitan." FTC produced

    Varinia Elero-TingaAmCham DirectorCo-Chair Agriculture Committee

    Question: What is your core business and how many people are employed by your company?

    Varinia Elero-Tinga: Philip Morris International (PMI) is the world's leading international tobacco company, with a diverse workforce of over 80,000 people, and directly contracts around 500,000 farmers across the globe.

    For 170 years, PMI has led the industry through innovation and foresight - building great brands, innovating and inventing relevant products, and surpassing consumer expectations.

    Six of the world's top international 15 brands, spanning more than 180 markets, are ours, including Marlboro, the world's number one. Our products are the choice of 150 million consumers worldwide. We operate 48 production facilities in 32 different countries.

    PMFTC Inc. (PMFTC), the Philippine affiliate of Philip Morris International (PMI), is one of the leading cigarette manufacturers in the Philippines. It is the result of the successful business combination between Philip Morris Philippines Manufacturing Inc. (PMPMI) and Fortune Tobacco Corporation (FTC) in February 2010. PMFTC employs over 5,000 people and contracts around 5,000 (direct) and to 50,000 (indirectly) tobacco farmers to supply quality tobacco leaves in the tobacco-growing communities of the Ilocos region, Occidental Mindoro, and Misamis Oriental. PMFTC sustains high quality production by promoting Good Agricultural

    Varinia Elero-TingaDirector External AffairsPMFTC Inc.

  • Type HereGetting to Know You

    AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 25

    low-priced brands.

    Innovation has always been the keystone of PMFTC’s business operation. The company, being part of a global enterprise, continuously innovates its processes and products to cater to progressing market demands – from cigarette blend to pioneering cigarette technology, and now even a potentially reduced risk product.

    We also innovate with our culture by establishing an open, competitive, diverse, and inclusive work environment.

    Question: How has the Philippines developed as a conducive investment destination from your company's standpoint?

    Varinia Elero-Tinga: The country has a large consumer base that is growing in prosperity, which makes the country very attractive. Our local workforce is educated and very motivated, and creativity is highly valued. It is our people that creates value for the company and you cannot find a more committed workforce than Filipinos. The Philippines is also unique in that it produces good quality tobacco, so our leaf supply is assured.

    From a macro perspective, the Philippine economy has established a record of stable high growth rates, bringing the average rate growth above those of its Southeast Asian peers. We remain optimistic that this favorable economic performance will continue.

    Aside from the favorable economic climate, the country's agricultural sector also presents strong potential for one of our core business initiatives – tobacco growing. In 2014, we invested US $50 million to set up a Fresh Leaf Tobacco Buying and Curing Hub in Claveria, Misamis Oriental in Mindanao to afford us a sustained year-long supply of high quality tobacco. This underlines our long-term commitment to the Philippines.

    Question: Please give us a sense of the distinct culture in your organization.

    Varinia Elero-Tinga: PMFTC has benefited from decades of business experience in the Philippines and the world market. The company has survived and prospered from numerous challenges and transformations in the industry, with the company and its employees winning and growing together.

    PMFTC's corporate culture is anchored on seven key behaviors – agility, communication, entrepreneurship, collaboration, learning, leading, and impact. These key behaviors are actively encouraged in each employee to help them achieve daily and long-term targets.

    The company places high premium on personal progress. Employees own their development track, allowing them to learn the skills that will open doors to any career direction they aspire for – providing the possibilities of our employees' career trajectories.

    The company also promotes a diverse and inclusive work environment where people of different generations, culture, and gender identities can succeed without prejudice. Our diversity is what makes our company strong, and we actively recruit with this in mind.

    PMFTC is committed to being an employer of choice and a good corporate citizen. Corporate social responsibility (CSR) is deeply ingrained in the company’s DNA, not one-off events. Our CSR objectives are integrated into day-to-day operations to benefit the neediest and the most vulnerable in the country. This makes our CSR sustainable. Our business grows with the communities we support.

    Question: What is your leadership style? Have you modified your working style (if at all you did) to be more effective in the Philippine cultural environment?

    Varinia Elero-Tinga: I have been with PMPMI and later with PMFTC for 16 years now. In the course of my career with the company, I have worked with many talented and amazing people, the best in their fields. So how does one lead a pack of superstars? Not easy.

    My leadership style should be responsive to the circumstances my team is managing. I believe leaders of today shouldn’t be committed to one kind of work or leadership style. Generally, I am a "democratic" leader, encouraging the generation of ideas. The more out of the box, the better. I call on everyone to say his/her piece to stimulate participation and teamwork. But I can also be an authoritative leader in times of crisis or during special situations that demand speed. I am an affiliative leader because there’s a need to strengthen the emotional bonds to keep my team close. To develop people for the future, I am a mentoring leader, sharing with my team, ideas and insights I have learned through the years.

    Question: How do you see the Philippines’ economic competitiveness within the region and what do you suggest are necessary actions to be done.

    Varinia Elero-Tinga: I believe that the country should build on its economic gains by promoting reasonable and competitive fiscal policies, and regulatory clarity and stability which should be perceived by business and the public as fair, and be fairly implemented to encourage competition.

    The peace and order problem should obviously be addressed for the provinces to become safer communities for our people and more welcoming havens for investors. How else can we create jobs?

    There is also a need to build the necessary infrastructure that will improve mobility of people and goods, and drive costs down or we will find it difficult to survive and compete in an integrated ASEAN environment.

    Most importantly, we have to invest in our human capital. Education must be made accessible to our people, and the quality of education should be improved. n

    LTA Building, 7/F118 Perea StreetMakati City 1229, Metro ManilaPhilippinesTel: (63-2) 890-3090Fax: (63-2) 552-7507Email: [email protected]

  • 26 AMCHAM BUSINESS JOURNAL 2017

    PMFTC, through its Embrace corporate social responsibility (CSR) program, recently donated almost Php three million worth of sports shoes and apparel to Cagayan province's young athletes. The young athletes are currently on a month-long training course at the Cagayan Sports Complex preparing for the Cagayan Valley Regional Athleti c Associati on (CAVRAA) next month.

    The goods donati on acti vity, which was held on January 25, was done in partnership with the American Chamber Foundati on Philippines Inc.

    The new shoes and apparel were ceremonially turned over to Cagayan

    PMFTC donates 3M Pesos worth of shoes and apparel to young athletes of Cagayan

    Governor Manuel Mamba by External Aff airs Director Bayen Elero-Tinga, PMFTC and Executi ve Director Ebb Hinchliff e, American Chamber of Commerce of the Philippines.

    Gov. Mamba, in his remarks, thanked PMFTC and AmCham for choosing Cagayan as a benefi ciary for their CSR acti vity, noti ng that the goods will be invaluable to the young athletes, who were also victi ms of super typhoon Lawin (Haima).

    The turnover ceremony was witnessed by former Philippine Charity

    Company News

    Sweepstakes Offi ce (PCSO) director Mabel Mamba, wife of the governor and Dr. Claire Lunas, Provincial Advisor of Educati onal Aff airs. n

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  • 28 AMCHAM BUSINESS JOURNAL 2017

    Feature

    Bold Inclusive Reforms for Agribusiness for the Next Decade

    In early 2016, the American Chamber of Commerce, with the Joint Foreign Chambers of Commerce of the Philippines (JFC), organized a roundtable of industry participants to review the state of the agriculture sector and offer bold solutions to guide its resurgence over the next decade. In addition, JFC members meet regularly with officials from the Government of the Philippines and the Department of Agriculture (DA) to discuss mutual areas of interest and public-private collaboration. Informed by these discussions, this agriculture brief reviews past performance of the sector since Arangkada launched in 2010; identifies remaining challenges; and outlines specific proposals to boost its economic prospects as a meaningful contributor of inclusive growth.

    Sectoral OverviewDominated by services (almost 60%

    of GDP in 2014), the Philippines has, over the decades, gradually moved away from an agrarian-based economy. The broad agriculture sector currently accounts for a little over 10% of GDP. Recent data reveals that agricultural output remained flat in 2015, nudging 0.11% (from PHP 788 billion in 2014 to PHP 789 billion last year). Over the past six years (2010-2015), the agriculture sector grew by an average of 1.3%, well below the average 6.2% growth rate of the broader economy. While the Philippines can no longer claim to be an agrarian society, the agriculture sector still plays an important part in the economy, particularly for rural households who depend largely on exploiting the land for their livelihood. Upwards of 73% of the country's poor resides in rural areas, where agriculture provides an economic lifeline and remains crucial to achieving inclusive growth. Among the poorest in the country, farmers and fisherfolk face the highest incidence of poverty (an estimated 38%), which has shown no significant change in over a decade.

    While the agriculture sector accounted for a small portion of GDP, its significance derives from employment, characterized as mostly informal, low-wage, and low-skilled. Close to one-third of the workforce (12 million out of 38 million in 2013) relies on agriculture for its livelihood. Yet, the sector's contribution to employment has declined in recent years. If the Philippines is to achieve broad-based and inclusive growth, a sense of urgency is needed to unleash, modernize, and diversify the business of agricultural and food production.

    Issues and AnalysisBy many accounts, the country has not

    fully exploited its comparative advantage in agriculture, especially in the breadbasket of Mindanao. Beginning with high input costs during production, agribusinesses in the Philippines must also contend with a supply chain that progressively erodes the sector's competitiveness en route to consumer markets. Along this supply chain, a staggering 20-50% of fresh produce is estimated to be lost in transit from the farm to consumers. By comparison, post-harvest losses amount to an estimated 6% in Thailand. By the time agricultural products reach markets, transaction costs have escalated, rendering many agribusinesses susceptible to external shocks, at best, and uncompetitive at worst. As evidenced by growing markups from farmgate to retail prices for key crops (such as rice, corn, bananas, and mangos), constraints with logistics and supply chain compound already challenging production issues of quality and efficiency. Eventually, consumers pay the price. In comparison to regional peers, the Philippines spends the highest share of total consumption on food.

    Formidable challenges and constraints along the supply chain continue to hamper the sector's full potential, including: the high and variable cost of production inputs; lack of mechanization to improve productivity; limited access to finance to scale up operations; inadequate provision of infrastructure, particularly in irrigation; and inefficient logistics and limited connectivity

    exacerbating post harvest losses. Compounding these issues, natural disasters continue to wreck havoc on this tenuous and vulnerable farm-to-market supply chain; flawed policies reinforce disincentives to invest in the sector; and weak/fragmented institutions limit the effectiveness of local extension services and agricultural support offices. As a result, agriculture exports (with few exceptions) remain broadly uncompetitive in the world market. Issues related to productivity, efficiency, quality, and price all compound the agribusiness investment climate.

    Business RecommendationsA multitude of complex challenges

    confront the agribusiness sector in the Philippines, with no easy solutions. Costs and benefits, as well as the political economy of reforms, weigh heavily into public policy considerations. And reform measures are being adopted, if not as consistently or rapidly as the JFC would deem meaningful to have impact on an anemic agricultural sector. As part of the broader Arangkada advocacy agenda, the

  • 30 AMCHAM BUSINESS JOURNAL 2017

    Feature

    JFC seeks to contribute to this reform dialogue by highlighting measures the could contribute appreciably to accelerating growth in agribusiness and other priority sectors first outlined in 2010. The following recommendations, while not exhaustive, point to sensible ideas that merit public policy considerations in the coming decade.

    Market Access. New free trade agreements (FTAs), including the ASEAN Economic Community, and other preferential trade privileges provide unprecedented market access, if Filipino agribusinesses can successfully compete in a more liberalized environment. Promising opportunities for agricultural exports are on the horizon, but Philippine food exports remain at modest levels. Their share in ASEAN has even declined, thus raising the need for clearer government policy/strategy to maximize FTA utilization. Moves to harmonize sanitary and phytosanitary (SPS) standards and reduce pervasive non-tariff barriers (NTBs) and non-tariff measures (NTMs) have started, but more work is required. To take advantage of new market opportunities, measures are needed to improve market information, technology transfer, marketing, export promotion, and broader trade facilitation measures. In light of the Supreme Court's misapplication of the Writ of Kalikasan, the country must double down and boost agriculture research and development, which accounts for a paltry 0.1% of GDP. In other countries, this figure exceeds 1%. Priority should be given to high value export winner crops, such as avocado, banana, cacao, coffee, mango, marine products, mongo beans, peanuts, pineapple, red hot chili, squash, and tobacco. Current and further expansion of high-value added crops like coconut and palm oil must be encouraged by the GPH to maximize the potential of non-traditional exports. Moreover, efforts are need to accelerate the identification of emerging comparative advantages as well. With more liberalized trade, the impact on local producers requires more analysis on those best positioned to take advantage of market access and others displaced by economic disruption. In addition, efforts to promote a level playing field need to look beyond tariff barriers and focus on discriminatory ways in which trading partners may distort market access for Filipino exports.

    As such, the GPH should do more to encourage ASEAN and other trading partners to develop common rules for their agricultural markets and reduce the various incarnations of NTBs/NTMs.

    Access to Finance. The agribusiness sector boasts a small pool of bankable projects, mostly concentrated with the larger commercial farm owners in possession of traditional collateral, secure property rights, and financial track records. Hampering investments, access to credit poses a daunting challenge for the sector. Many agribusinesses are small and financially weak, requiring business development support, collateral substitutes, and other credit enhancements to improve their risk profile. Given these longstanding challenges and ingrained market failures, fresh proposals by both public and private sectors are needed to unleash capital for agricultural development.

    To expand agricultural credit, the GPH has resorted to a mandated lending policy with the Agri-Agra law, which requires banks to set aside 25% of their loan portfolio to the farm sector (Agri: 15% to agribusinesses and Agra: 10% to agrarian reform beneficiaries). To date, the law has produced mixed results in expanding agricultural lending, depending on the Agri-Agra threshold and type of financial institution. While admirable in its goal, the mandate fails to address core issues and risk premium that render much of the sector unattractive from a lending standpoint, particularly for beneficiaries of agrarian reform. By interfering with bank efforts to allocate capital efficiently, Agri-Agra and other mandated lending policies risk weakening the broader financial sector. Rather than mandating loan quotas, government effort should focus more on ways to reduce risks inherent to the agricultural sector (e.g., provision of basic infrastructure, appropriate technology, and improved market information). Government financial institutions can also play a much larger role. In 2013, the charter for the LandBank of the Philippines (LBP) was renewed. However, its amendments lacked provisions to strengthen the bank's mandate of providing financing for the agricultural sector and related support activities. Re-focusing of LBP's scope of business from universal banking activities to supporting the agricultural sector should be considered. In this vein, market participants continue to explore financial instruments to make farmers more bankable and competitive. Of particular resonance, the JFC recommends a more comprehensive approach to crop insurance, which can help mitigate the numerous environmental risks (e.g., typhoons, droughts) that many smallholder farmers face on a perennial basis. Crop insurance continues piecemeal (e.g. Philippine Crop Insurance Corporation, microinsurance

    schemes, reinsurance). Yet, to de-risk the agricultural sector, the Philippines requires a bold initiative for crop insurance (on par with the success of the Conditional Cash Transfer program) that reaches a large swath of an under-served market segment. Resources are needed to develop a comprehensive approach and capitalize such an initiative, as well as agricultural data to assess and apportion risk adequately (i.e., land, soil, weather patterns).

    Freeing up the Land Market. In another significant area of market distortions, the property rights regime contains major deficiencies and greatly undermines the investment climate. The business of agricultural production relies heavily on exploiting and developing land for human needs. Indicative of inefficiencies in the land market, a staggering 11 million parcels of untitled properties litter a country of 24 million parcels. Land use planning, zoning, and overall management are weak, undermining property development and associated tax collection vital to public investments. After six decades, the country's land reform remains incomplete, creating uncertainties for agribusinesses, limiting collateralized lending in finance, and discouraging investments in agricultural production. The controversial Comprehensive Agrarian Reform Program Extension with Reforms (CARPER) law expired on June 30, 2014. In its wake, significant uncertainties around property rights linger – much to the dismay of smallholder beneficiaries in waiting and distress of large landholders subject to land redistribution. Land redistribution has created a new class of landed poor, who lack the resources, access to finance, post-harvest facilities, market information, and associated support services to cultivate the productive benefits of newly acquired land.

    Strong measures are needed to unshackle the land market in the Philippines. Currently under legislative review, CARPER law amendments and the Farm Land as Collateral bill provide opportunities to correct some of the market distortions created by agrarian reforms. Limits on landholding and its consolidation should be lifted, along with restrictions on selling or mortgaging newly redistributed land. Also yet to materialize, the Land Use Policy and the Land Administration and Reform Act could help address core issues

  • AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. 31

    Feature

    Endnotes

    1. Poverty incidence in rural areas (at 37.8%) more than doubles that of urban centers (14.2%). Asian Development Bank, Poverty in the Philippines: Causes, Constraints, and Opportunities, (Mandaluyong City, Philippines: Asian Development Bank, 2009).

    2. According to government statistics, 11.8 million (or 31.0%) of the 38.1 million people were employed in the agricultural sector in 2013, down from 33.0% in 2011. See http://countrystat.bas.gov.ph/ .3. Gilberto M Lanto, "How Critical is Transport and Logistics Infrastructure to Interregional Trade? The case of high-value fruits and vegetables in Mindanao," Policy Notes, Philippine Institute of

    Development Studies, December 2012: 1-8.4. See World Bank. Philippine Development Report 2013: Creating More and Better Jobs. Philippine Office, East Asia and Pacific Region (Makati, Philippines: World Bank, 2013.pp. 104-5).5. Growth in agricultural productivity lags behind that of regional peers, as well as other parts of the economy (industry and services). Research points to anemic productivity growth, as measured by TFP

    (total factor productivity), linked to underinvestment in rural infrastructure, including roads, electrification, and irrigation. See World Bank (2013), p. 94, footnote 104.6. Many observers in the development field have longed recognized these challenges. Yet, structural reform of agricultural production has been slow to materialize, and the agribusiness sector is less

    competitive than it could otherwise be. See, for example, Asian Development Bank, Sector Assessment (Summary): Agriculture and Natural Resources, Country Operation Business Plan: Philippines, 2014-2016, (Mandaluyang City, Philippines: Asian Development Bank, 2013); and World Bank (2013).

    7. Of the 7.87 million hectares covered by CARP (from 1970 to June 2014), only 5.00 million hectares (or 63.5%) have so far been distributed, according to the GPH.8. On a good case study of six firms that chose to operate in the conflict areas of Mindanao and reaped the benefits, see Cielito F. Habito, Braving It and Making It: Insights From Successful Investors in

    Muslim Mindanao (Australian Aid, 2012).9. Recent data from the Philippines Statistics Authority (http://countrystat.psa.gov.ph/) and Business World, available at http://www.bworldonline.com/content.php?section=Agribusiness&title=adb

    investments-in-irrigation-needed-for-asia&8217s-food-security&id=121802. Elsewhere, the World Bank cites a figure of 9.3% (2011) for agricultural irrigated land in the Philippines (data.worldbank. org).

    in agribusiness. To improve productivity and create economies of scale, efforts should be made to integrate small farmers into larger enterprises. Here, case studies by the JFC point to successful examples of integrating small farms into larger agribusiness enterprises. SMC's Cassava Assembler Program; Thailand's Charoen Pokphand Foods in the Visayas; Universal Leaf in Northern Luzon; Nestlé's relationship with small coffee growers; and Unifrutti and La Frutera's model of development in the conflict areas of Mindanao all suggest the possibility of large agribusiness ventures harnessing many small farmers successfully. More such efforts need to be encouraged and appropriately incentivized.

    Infrastructure Investments. As the JFC emphasizes in the Arangkada report, long-standing farm infrastructure requires on-going investment to allow more local value-added for agribusinesses. These priorities areas include: farm-to-market roads, post-harvest processing facilities, irrigation, SPS inspection facilities, food terminals, cold storage, and food processing factories. The lack of post-harvest facilities cries out for more private sector investment, as part of efforts to manage overall supply chains. Farm-to-market roads provide much needed linkages. Yet, only 3.5% of barangay roads are paved. Of particular concern, the Philippines faces a large gap in irrigation infrastructure. Only 1.7 million hectares (some 57% of the 3.0 million hectares of total irrigable area) of the country's agriculture lands receive irrigation. Coupled with this year's El Niño effects, the deteriorating public irrigation system

    has compounded land degradation resulting in less productive agricultural lands. Large scale investments are needed to rehabilitate, modernize, and restructure the country's large surface irrigation schemes, so as to improve their productivity and efficiency in water usages.

    Rationalization of Extension Services. With low productivity, the business of agricultural production would benefit from adopting new and innovative technologies. Even with advances in R&D, the latest research and information on improved agricultural practices (including intercropping) have not reached farmers sufficiently. As such, agricultural extension services provide a vital link in the mass diffusion of agricultural research, transfer of appropriate knowledge, and sharing of best practices. However, the structure of extension services requires rationalization in the Philippines. Initiatives to publish and disseminate information on best practices have produced mixed results in efforts to instill more innovative and modern farming practices. Consequently, farmers have moved slowly and reluctantly to adopt new technologies. Devolved to municipal governments (through the