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What is it like being a doctor to the barrio? What innovations are making the greatest impact in rural communities? What role does the local government play in all of this?

In this B-Side episode, BusinessWorld talks about these topics with Francine Nicole M. Araneta, who works as a rural doctor under the Department of Health’s Doctor to the Barrios program.

Recorded remotely on August 22, 2024.

Interview by Patricia Mirasol
Audio editing by Jayson Mariñas

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Obesity is now a rising health problem in the Philippines, with a staggering 27 million Filipinos considered overweight or obese, according to a 2019 survey by the Department of Science and Technology’s Food and Nutrition Research Institute (DOST-FNRI).

To combat obesity, the government imposed an excise tax on sugar-sweetened beverages under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which was signed in December 2017.

However, with sustained inflation, the initial impact of the sugar-sweetened beverage tax has diminished, according to the Congressional Policy and Budget Research Department of the House of Representatives.

In light of this issue, I spoke with Filomeno S. Sta. Ana III, a coordinator of Action for Economic Reforms (AER) and a columnist for BusinessWorld.

He discussed the importance of protecting the value of the sugar-sweetened beverage tax amid sustained inflation.

He also shared his insights on the implications of a higher sweetened-beverage tax in combating health problems like obesity and how it can finance other government nutrition programs.

Interview by Edg Adrian A. Eva
Editing by Jayson John D. Marinas

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The Philippines is one of two countries in the world that does not allow divorce for married couples. On June 10, 2024, however, the Philippine House of Representatives transmitted House Bill No. 9349 – or the approved bill for absolute divorce – to the Senate.

What are the implications of this bill? If passed into law, how will it affect Filipino society?
In this episode, BusinessWorld discusses some of these possibilities with Jemy I. Gatdula, the dean of the University of Asia and the Pacific’s Institute of Law.

Interview by Patricia Mirasol
Editing by Jayson Mariñas

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The Philippines outlined renewable energy targets in its National Renewable Energy Program for 2020 to 2040, but what factors need to be in place for the Philippines to reach these targets? Why is flexibility in power generation important?

In this episode, BusinessWorld discuss renewable energy in the Philippine and global contexts with Kari Punnonen, head of energy business of Wärtsilä, a power solutions provider for the marine and energy markets.

Interview by Patricia Mirasol

Editing by Jayson John D. Marinas

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E-cigarette and tobacco products use in the Philippines is steadily increasing, particularly among the youth, according to the study of the Global Youth Tobacco Survey in 2019. Consequently, flavors and esteemed novelty contribute to the initiation and sustained use of e-cigarettes and tobacco use. With this concern, Dr. Maria Encarnita Blanco-Limpin of the Philippine College of Chest Physicians/ Philippine Medical Association explained the risk factors of using Tobacco and E-cigarettes. Furthermore, she explained ways to improve its regulation and how users can stop using it.

Editing by Jayson John D. Marinas

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According to the World Health Organization, despite an alarming number of cases, road traffic injuries are often neglected public health issues. With this concerning issue, Mr. John Alison Uy of the Vehicle Inspection Center Operators Association of the Philippines (VICOAP) elaborated on the importance of road safety and road-worthy vehicles to avoid road crashes and deaths.

Editing by Arjale Queral

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Marketing is a tool that businesses can employ to increase brand awareness, acquire customers, and improve engagement. But is there a right way to do marketing? In this B-Side episode, BusinessWorld asks what businesses should prioritize in their marketing campaigns with Ashish Goel, product marketing manager of Zoho Corporation’s Campaigns, Marketing Automation, and Sites divisions.

Editing by Jino Nicolas and Arjale Queral

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Interview by Patricia Mirasol

Editing by Jino Nicolas and Arjale Queral

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According to the latest study by the IBM Institute for Business Value entitled, “Forging the future of AI: Women can take the lead (https://zurl.co/Qook),” genAI, alongside disrupting workflows, gives women “a once-in-a-career opportunity to gain equal footing.”

In this special edition of BusinessWorld B-Side, in partnership with IBM Philippines, Commercial Territory Sales Leader Christine Llanto-Ravelo explores the unique opportunities genAI opens to women in workplaces and boardrooms.

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To cap off 2023, the BBC released its 100 Women list, naming women who have inspired and influenced people worldwide.

Among those on the list are former US First Lady Michelle Obama and human rights lawyer Amal Clooney, and a 25-year-old Filipina farmer and entrepreneur named Louise Mabulo.

Ms. Mabulo, the daughter of San Fernando Camarines Sur mayor Fermin Mabulo, joins 27 other Climate Pioneers in the list. She was lauded for her efforts in setting up The Cacao Project, which according to the BBC “aims to revolutionize local food systems through sustainable agroforestry.”

In this B-side interview with Joseph L. Garcia, the 100 Women-lister extols the virtues of cacao as a crop, changing the face of farming in the Philippines, and how growing up Filipino can make one sensitive to climate change.

Cacao as Crop

After the devastation of Typhoon Nina (international name: Nock-Ten) in 2016, Ms. Mabulo thought that farmers in her Bicol hometown deserved more than seeing their crops destroyed and having to start all over again.

She set up The Cacao Project as a seed exchange program, which later evolved into a training program and social enterprise.

Ms. Mabulo said cacao was an ideal crop in the Philippines because aside from its high value as a crop due to global demand for chocolate, it is resilient to typhoons.

“It doesn’t get easily flooded, and it doesn’t get cut down by high winds, which is ideal for our landscapes,” she said.

Removing the stigma of farming

According to the Philippine Statistics Authority (PSA), the average daily pay for a farm worker in the Philippines in 2019 was P331.10 per day.

Apart from the low wages, the agricultural profession is not held in high esteem locally — with the exeception of wealthy landowners who own the farms. Ms. Mabulo is working to change the face of farming by presenting it as a viable career option.

“I’m trying to empower farmers to understand that what they’re doing is land stewardship. It’s not just farming and producing food, and creating harvests. It’s also rethinking what a farmer looks like,” she said. “That can be young people getting into agriculture and aspiring to be a farmer.”

Filipinos and climate sensitivity

All Filipinos have a storm story, and are thus affected by the increase in the strength and number of typhoons caused by climate change.

While she did grow up in Wales, their family’s move to Camarines Sur made her appreciate how knowledge of local climate and weather is learned from a very young age.

“What I like to say here in Bicol is all of us are raised as meteorologists and weathermen. We all know immediately what the tickers and signs are of typhoons and how to prepare for them,” said Ms. Mabulo.

Farmers have, therefore, learned how to live around the changes in weather.

“Resilience is incredibly important, and that we need to build resilience and adapt to the typhoons,” she said.

However, she said it is also important to have the resources to not just survive, but thrive despite challenges posed by climate and weather.

It shouldn’t just be left to farmers, says Ms. Mabulo.

“It also made me question the systems that kept us resilient. In an ideal world, we wouldn’t have to be resilient. All of these resources should be readily available to us,” she said.

Recorded remotely on Dec. 20, 2023.

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The Philippines is so close to Taiwan that, as the old joke suggests, one could swim across the Bashi Channel to get there. Their connection goes beyond that, with the future of their geopolitical fates in question.

In this B-Side episode, Girard Mariano L. Lopez, a Filipino student in Taiwan and representative of the Asian pro-democracy group Milk Tea Alliance, discusses with BusinessWorld reporter Beatriz Marie D. Cruz how activists from the Philippines and Taiwan see the tensions with China.

“Taiwanese activists and Filipino activists here, obviously, support the Filipino victory within the Hague and the South China Sea,” Mr. Lopez, said, citing the 2016 landmark ruling by a United Nations-backed arbitration court that voided China’s claim over most of the South China Sea.

As a Filipino in Taiwan, Mr. Lopez said that the Philippines’ tricky relationship with China and the United States is something to watch out for.

President Ferdinand R. Marcos, Jr.’s granting of additional military bases to the US through the Enhanced Defense Cooperation Agreement (EDCA) is crucial, in particular, as some believe the EDCA sites could support Taiwan in case it is attacked by China.

Mr. Lopez noted the dilemma of allowing the US military’s soft power—in light of colonial baggage, environmental damage, and gender-based violence—in relation to the Philippines and US military bases that trace back to the Second World War, as well as the Visiting Forces Agreement (VFA).

Mr. Marcos has said that the EDCA sites won’t be used to attack neighboring countries.

CHINA-TAIWAN TENSIONS

China identifies the self-ruled Taiwan as a province that must be “unified” with the mainland.

In April, China’s Foreign Minister, Qin Gang, said that “those who play with fire on Taiwan will eventually get themselves burned.”

That same month, Chinese Ambassador Huang Xilian asked the Philippines to oppose Taiwan’s independence if the country “cares genuinely” about the welfare of more than 150,000 overseas Filipino workers there.

The Philippines remains subscribed to the One China Policy, which recognizes Taiwan as part of China.

However, Mr. Lopez said the Philippines could be missing out on several partnerships with Taiwan due to the One China Policy, which has limited relations to investment, trade, labor, and tourism agreements.

“There are some things that Taiwan and the Philippines could have more formally worked together on, especially on strategic alliances and the protection of their common territory,” he said.

Mr. Lopez added that official allies of Taiwan, like Belize and Guatemala, enjoy higher quotas for

scholarships dedicated to foreign students through Taiwan’s Ministry of Education and Ministry of Foreign Affairs.

On the flip side, Mr. Lopez noted that the European Union has kept its recognition of the One China Policy yet continued to build ties with Taiwan.

“These countries have taken the initiative to sort of move away from giving China those revenue streams and offering those to Taiwan as well. And I think that’s something the [Philippine] government [can bolster] in the future,” he said.

Mr. Lopez scored the need for Filipinos to also be more conscious of Taiwan’s situation with China, given that the Philippines’ ally, the US, is backing Taiwan, angering Beijing.

Both former US House Speaker Nancy Pelosi’s visit to Taiwan in Aug. 2022 and Taiwanese Vice President William Lai’s visit to the US in August this year were condemned by China, even calling Mr. Lai a “troublemaker.”

“Taiwan is our neighbor to the north and anything that happens to Taiwan will eventually trickle down towards the Philippines, especially if China launches a very brash offensive,” Mr. Lopez said.

He also emphasized the welfare of overseas Filipino workers who will be affected by an invasion. “There are more Filipinos that work in Taiwan than in mainland China itself.”

“Our kababayans loss of revenue or being able to fend for their family and their very lives [will be] endangered because bombs don’t discriminate when they land, as we see with the current Gaza crisis or with eastern Ukraine.”

Recorded remotely on Dec. 4, 2023.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Takeaways

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

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

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

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

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

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

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

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

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

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

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

There are workarounds for urban gardeners with small spaces.

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

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

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

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

Figure out a garden tending routine that works for you.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

KEY PROBLEMS

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

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

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

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

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

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

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

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

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

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

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

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

Recorded remotely on Nov. 10, 2023.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TAKEAWAYS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Recorded remotely on Oct. 9, 2023.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AFP MODERNIZATION

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

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

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

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

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

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

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

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

The IE mindset has already been applied to local systems.

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

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

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

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

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

IE professionals can be certified.

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

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

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

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

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

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

AI, machine learning will be integrated into many systems.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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