1. “Mapping the Future” Column in the INQUIRER on December 24, 2018

1. “MAPping the Future” Column in the INQUIRER on December 24, 2018

“Harnessing the Potentials of Today towards a Future-Ready Philippines” by Ayala Corporation President and COO FERNANDO ZOBEL DE AYALA, “MAP Management Man of the Year 2018”

(Following is the acceptance speech delivered by the author when he received recently the “MAP Management Man of the Year 2018” Award from the MANAGEMENT ASSOCIATION OF THE PHILIPPINES.)

Good afternoon. Let me first thank all those involved in making this event and recognition possible. Thank you to the MAP Board of Governors led by Mon Fernandez, the MAP Management Man of the Year Judging and Search Committees led by Gigi Montinola, Ed Chua, Marife Zamora, and Perry Pe. I also extend a very special thanks to the individuals who have so kindly nominated me for this honor: Amb. Albert Del Rosario, Lilia De Lima, Tony Aquino, and Jess Estanislao, as well as the many others behind the scenes who were involved in the nomination process. Let me also take this opportunity to congratulate the incoming Board of Governors, and your incoming President, Riza Mantaring.

Allow me to also acknowledge representatives from the senior management of Ayala present today. My brother Jaime and I often discuss how privileged we are to be able to work with these exceptional individuals. They are passionate about our country and share our desire to bring the Philippines to the highest stage of development within the community of nations.

I would also like to express my warmest appreciation to the many friends, partners, and customers of the Ayala group of companies. Our group’s stability and success would not have been possible without your continued trust, and we are very thankful for your faith in us throughout the years. Let me also acknowledge a good friend of our family, Mr. Fred Borromeo, who joined MAP in 1954, and at 92 years old is certainly the wisest MAP 1 member in the room. Last but certainly not the least, I would like to thank the members of my family present today—my parents, my wife Kit and siblings, spouses and friends. We owe so much to my father, who took a risk and entrusted the leadership of Ayala to Jaime and I at a fairly young age. He had already set high standards of professionalism in the company and a deep sense of commitment to the developmental goals of the country. Jaime and I had a great platform to build from.

I am deeply honored to receive this recognition, and greatly humbled to join the company of such an illustrious group of individuals—many of whom I have admired and respected, and have had many fond memories with as friends, business partners, and mentors. We are also deeply honored as a family that I am now the third member of the family, after my father and brother, to be recognized for this award.

MAP’s overarching theme for 2018 is “Competing in the Age of Disruption.” As I was reflecting on the many achievements of our esteemed previous awardees, as well as MAP’s enduring work in advancing the management profession in the country, I realize that this theme remains relevant and resonant, regardless of the period. In every timeframe in our history, we have had to deal with disruptions on various fronts. These challenge us to continuously find ways to put our organizations—and our country through our collective contributions—on a clear path to shared prosperity.

We live in a world that is very volatile, uncertain, complex, and ambiguous. But while current developments appear bleak, today’s dynamic times have likewise given birth to impressive advances and amazing possibilities. We live in an era where technological innovation, new business models, and new ways of thinking can be used to benefit a larger number of our population.

This is the notion that I would like to put forward today—that the ingredients to bring the country to the next level are already within our grasp. MAP and our individual organizations carry the challenge and responsibility to properly harness the potentials of today and use them to create a progressive, equitable, and Future-Ready Philippines.

Our journey towards future-readiness requires a strong platform from where we can launch ourselves. I believe that we have already been building this over the last few years. I refer to our macroeconomic foundations, and our highly talented and committed human capital.

On the former, I think we would all agree that we have had a unique period of continued economic growth that has transformed our country. This growth has largely been consumer- led, supported by strong overseas remittances, the growing BPO and services sector, and complemented by increasing investments. I would also like to emphasize the enormous role that local private capital from many of the companies represented here today has played in the growth of our economy.

We also see many positive developments with our people, whose median age is 24 and where a third of the total population are millennials. We are also seeing a continuing influx of young and talented Filipinos who have studied and trained overseas. These young Filipino professionals not only possess excellent technical skills, but are also technologically adept, and more importantly, have the ideals and innate passion to contribute to national development. They are also prepared to take on significant managerial responsibilities at a much younger age than we may have been used to in the past. 2

The challenge we all now face as a business community is to determine where we want our country to be in the next 10, 20 and 30 years. There are many areas where the private sector is focusing its efforts. From our point of view in Ayala, we have decided that four areas hold tremendous potential to make a lasting and meaningful impact as we build a Future-Ready Philippines. These sectors are: inclusive finance, education, healthcare, and sustainable tourism.

Let me start with financial inclusion. It is unacceptable that only 23% of Filipinos are part of the banking system. The rest are exposed to unauthorized lenders charging exorbitant rates and face the risks of the unofficial economy.

We are doing our part through banking channels and mobile solutions. BPI formed BanKo a few years ago to serve micro, small, and medium enterprises with their lending requirements. We further recognize that mobile technology has likewise provided a unique opportunity to serve the financial needs of a broad segment of our people. Through one’s mobile device, there are now several solutions available for payments and mobile wallets, digital lending, plus wealth management and credit analytics. Our partnership with Ant Financial, a subsidiary of Alibaba, has brought forth an enormous amount of knowledge in the fintech and mobile space, given the cutting edge technology that China has been deploying for their population. While the Philippines is still far from having fintech as ubiquitous as it is in China, together with Ant Financial, we are excited to further develop our fintech industry to reach our financially underserved countrymen. Ensuring the success of our financial inclusion efforts through mobile technology, however, requires massive investments in telecom infrastructure. The telcos have been spending record amounts to keep up with the exponential demand for more data and faster connections.

Let me now shift to education. McKinsey estimates that up to 15% of the global labor force, or 375 million workers, will have to switch jobs by 2030. As certain professions are rendered irrelevant, new opportunities will emerge. However, this will require the right type of training in 21st Century skills and values.

On a more basic level, we must immediately tackle the serious condition we face in many of our schools, wherein 3.6 million Filipino youths find themselves out-of-school. Even more stunning are the findings of the Philippine National Employability Report, published in 2017 by employability assessment firm, Aspiring Minds. From their survey of 60,000 fresh graduates from 80 tertiary level institutions, they found that 65% of Filipino graduates lacked the appropriate skills and were thus unemployable in their sector of choice.

Our educational system is in serious need of help and it is very encouraging that the private sector has been contributing in a significant way. In our own case, our solutions revolve around some of the key problems that we have had to address through our schools. These include a huge reduction in dropout rates; increasing the employability of our students; and producing competent teachers to sustain education reform. At the basic education level, through CENTEX and APEC Schools, we have changed the way students are taught with a curriculum that focuses on practical skills and innovative teaching methods. Through close coordination with the needs of industry, we were also able to design programs where recent graduates are employed within 90 days and receive starting salaries that are significantly higher than the average. At the teacher level, we are delighted that through our partnership

3 with the National Teachers College, we now have an opportunity to equip our teachers with the necessary skills to drastically improve the quality of instruction in the country.

Aside from our students, we also need to give the workforce an opportunity to upskill and retrain themselves. A number of online digital learning solutions are readily accessible with content from the world’s top universities offering customized training programs, suited to the individual’s needs, and at a very modest cost. We have recently launched Ayala University, a digital learning platform that brings together carefully selected online global content from the best schools to upskill our employees at an exponential scale.

The third sector I want to highlight is healthcare. I strongly believe that the next critical need for the country is a ramp up in affordable, quality healthcare. How can we possibly have a productive workforce and a higher quality of life for our people without proper healthcare? Our research is staggering: 43% of low to middle income Filipinos have not seen a doctor in more than a year, with 6 out of 10 Filipinos dying without even seeing a doctor. The Economist ranked the Philippines 78th out of 80 countries in an index that measures the quality and availability of the country’s palliative care environment, which includes hospices, nursing homes, and professionals.

The Filipino patient deserves better—from birth to end-of-life. At Ayala, we strongly believe that healthcare is a fundamental right for all. This principle has shaped our approach to our healthcare business. Our focus has been to find disruptive models and technologies that make healthcare products and services more accessible and affordable to a broader segment of the population. A critical part of this offering is a strong emphasis on preventive healthcare, which we believe will significantly impact health outcomes and our stakeholders’ disposable incomes. This is essential as the World Health Organization reports that lifestyle-related diseases, such as diabetes and hypertension, account for as much as 70% of deaths worldwide—deaths that are easily preventable if there is a focus on proactive and preventive medicine. Towards this end, we continue to grow our FamilyDoc clinical network to expand the reach of primary care to more Filipinos. Meanwhile, through our investment in Generika drugstore, we are expanding the reach of generic medicines to help provide affordable options for preventive healthcare. We view this as a key component to democratize healthcare and promote disease prevention, as our research shows that generic medicines can be cheaper by up to 85% compared to their branded equivalents. The elements to substantially improve the state of our healthcare are within our grasp. We have excellent healthcare professionals, a plethora of health technologies are available, and favorable regulation, through the Universal Healthcare Act, exist. Let us not let this opportunity pass us by. Let us boost our efforts at giving our people the healthcare that they deserve.

Lastly, let me focus on tourism. I believe it is time to dramatically focus on tourism as an industry that can have an enormous impact to our country. To illustrate the magnitude of its effects, consider Thailand that attracted close to 35 million visitors last year. According to the World Travel and Tourism Council, tourism directly contributed close to 10% to Thai GDP in 2017.

I feel that we have yet to adequately embrace tourism as a valuable component of our development. While tourism continues to contribute much to the economy, there remains significant value to be unlocked. I say this because while we invest only $1.9 billion for tourism—which is close to last in ASEAN and below the global average—our numbers are 4 steadily increasing. For instance, international arrivals grew from 2.8 million in 2006 to a record 6.6 million in 2017. Tourism’s direct economic impact has also more than doubled over the last 10 years, accounting for 8.7% of GDP and 2.3 million jobs. The World Travel and Tourism Council forecasts that by 2028, tourism could directly account for P2.5 trillion, close to 10% of GDP, and support 3.2 million jobs. If we are to make a quantum leap in tourism, we need to involve many more partners, have a far more holistic and visitor-centric masterplan, and be more aggressive and strategic in deploying capital.

I believe that this is where the Philippines can differentiate itself from our neighbors. Too many Asian countries have developed their tourism sectors too quickly, and in the process, have severely damaged their ecosystems. It is wonderful to hear that the tourism agenda currently being discussed under Secretary Berna Romulo Puyat is one that strongly includes environmental protection and sustainability. To support this drive, we must create the appropriate governance structures to ensure that there is proper planning and project execution in our best tourism sites. This includes ensuring a seamless and exceptional visitor experience—from arrival at the airport, to transportation to hotels, and to the overall experience at the destination. Let me also emphasize the need for strong visitor impact management—that is that we properly manage what practitioners call as carrying capacity and limits of acceptable change or put simply, the maximum number of visitors and degree of impact that any single destination can take and withstand.

From our point of view, we have moved into substantial tracts of land and are looking for more in the hope that we can create several sustainable tourism environments. In all our tourism developments, we want to make sure that the employment benefits to the local communities are maximized, environmental impact is properly managed, and that these destinations can serve as a showcase for the rest of the world on how tourism’s potentials can and should be harnessed. The multiplier effects of tourism and the impact that it can have on communities—especially the poor—is enormous.

As the Ayala group enters its 185th year in 2019, we are more committed than ever, along with the rest of the business community, to continue building our growth platforms for our country, and to ensure that Filipinos have the skills necessary to take advantage of these opportunities.

It is interesting that as far back as 1962, John F. Kennedy was already anticipating the same challenge and responsibility that the world continues to face today. He stated in a speech and I quote, “if men have the talent to invent new machines that put men out of work, then they have the talent to put those men back to work.” Generating new jobs for the next generation and providing opportunities for value creation will be our utmost priority.

This, however, requires a comprehensive response from the private sector and the full support of government. Like many of you, I am a great believer in the critical role that the business community plays in nation-building. Today’s disrupted times, while alarming on many instances gives us access to several resources: capital is accessible for new ventures; new technologies and business models are available to be harnessed; and there is a wealth of talent among our people waiting to be unleashed.

Through MAP and the other business organizations in the country, the private sector can accelerate efforts to build a progressive, inclusive, dynamic, and Future-Ready Philippines that we can all be proud of. With a unified public and private sector; an appropriate plan 5

designed for the medium and long term; and a consistent vision that will keep us on track through political cycles, we can certainly direct our country on an irreversible path towards equitable and sustainable progress.

Once again, good afternoon, and thank you very much for this great honor.

(The author is the “MAP Management Man of the Year 2018” of the Management Association of the Philippines and the President and COO of the Ayala Corporation. Feedback at . For previous articles, please visit www.map.org.ph)

2. “MAPping the Future” Column in the INQUIRER on December 31, 2018

“Digitalization: Key to Growth and Financial Inclusion” by MAP Past President (2005) SIMON R. PATERNO, Executive Vice President and Head of Financial Products and Services of the Bank of the Philippine Islands (BPI)

By end-2017, the Philippine banking industry had yet to penetrate over 550 local government units (LGUs)1. This translates to about a third of the country’s 1,489 LGUs not having a single bank branch. For these communities, access to formal financial services, if there’s any, is limited to credit cooperatives and pawnshops.

The prospect is not that bleak, however. The Bangko Sentral reports that since 2011, the number of unbanked LGUs has decreased at an average annual rate of 1%, a slow, but steady pace. In addition, in 2017, the Philippines was named as the Asian leader in terms financial inclusion by the 2017 Brookings Financial and Digital Inclusion Project Report2. This achievement is a milestone for the local banking industry as the assessment both recognizes and validates its initiatives to offer accessible and affordable financial services to Filipinos. Local banks have recognized the need to extend financial services to the grassroots. Through various initiatives, the banking sector has been able to reach thousands of Filipinos all over the country and provide them with direct access to services designed for Filipinos’ changing financial needs.

Apart from expanding their physical footprint, banks are increasingly embracing the utilization of technology to drive financial inclusion. Digital access is no problem for Filipinos. The consistent growth in the number of users of mobile banking apps bears this out. However, a bigger opportunity lies in the wider application of technology to banking operations, to stimulate and sustain growth, and, by extension, to benefit the banking public.

Digitalization and the Sharing Economy

When compared to our ASEAN neighbors3, the penetration of digital banking technologies is slowest in the Philippines. Only 13% of Filipinos access their bank accounts through electronic channels. This pales in comparison to Singapore’s 94% or even Vietnam’s 44%. Nevertheless, a slow shift to digital channels is becoming more evident. While Filipinos still rely on their home branches for complex transactions, balance inquiries and money transfers are now mostly done through ATMs and mobile apps.

Beyond these basic transactions, however, digital banking has a long way to go before becoming a more entrenched component of the sharing economy. Five out of seven Filipinos are more inclined to purchase physical products over banking products and services online. Concerns over security and a long-established predilection for traditional channels slow down the Philippine banking industry’s shift towards the digital solution.

Digital banking technologies present great potential for both banks and the public. On the one hand, banks would benefit from improved operations, allowing them to reach more people, even those in the remotest places, easing the burden on traditional branches to serve more and more clients. On the other hand, digital banking allows the public, regardless of their station in life, to enjoy the benefits, conveniences, and efficiencies of automated banking, enabling them to carry out financial transactions and participate in the sharing economy whenever, and however, they want.

Digitalization and Financial Inclusion

The internet is the great equalizer. And in a country with 67 million internet users—a little over 60% of the country’s population—who spend an average of 3 hours and 57 minutes a day on social media sites alone, that statement holds great promise. There are more Filipinos with Facebook accounts than bank accounts.

However, our full digital potential as a country has yet to be realized. Our ability to adopt digital banking will transform the lives not only of those who have long benefited from banking services, but more importantly those who are unbanked or those who could benefit more from the formal banking system.

What do we need in order to adopt digitalization more widely and, in the process, promote financial inclusion more effectively?

We need device costs to come down, and recently Google announced “smart feature phones” that will be launched at $7, or less than PhP400.

We need data connectivity in non-urban areas, and the dominance of Facebook is no doubt correlated to free Facebook access promoted by telecommunication companies.

We need banking products that are designed in sachets, like consumer companies have done to promote sales in less affluent segments. Creativity among bankers is crucial.

We need a proper regulatory framework, that will both protect confidence of the new entrants to banking services, and also keep banks’ cost-to-deliver low. The BSP has recently allowed Basic Deposit Accounts, which have some limits as to utility, but are more cost- efficient for banks since no reserves are required for the deposit balances. Likewise, the

BSP’s agency banking framework allows thousands of “storefronts” such as pawnshops to facilitate some traditionally-banking transactions.

Before the Next Chapter

While we await the full digitalization of the banking industry, complete with full acceptance of the banking public, the quest for financial inclusion cannot stop. Microfinance provides a great opportunity to close the gap between banked and unbanked, fostering growth in places and communities not traditionally reached by our branches. Microfinance can address misconceptions of many in the grassroots who hesitate to take part in the formal financial sector. Microfinance can empower them with reliable financial resources and trustworthy financial advice.

When more Filipinos are initiated and integrated into the financial community, the industry’s digital transformation will take place naturally. As we march towards financial inclusion, it will only be a matter of time for more Filipinos to fully embrace digital banking and the myriad forms it takes—from the more basic mobile apps and electronic wallets, to the more advanced investing and trading platforms, and, perhaps, even cryptocurrency and blockchain technology.

As the Philippines moves closer to full digital banking, the banking industry continuously strives to provide not only the banking technology Filipinos need, but the trustworthy services they deserve.

(This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP. The author is Past President of MAP and Executive Vice President and Head of Financial Products and Services of the Bank of the Philippine Islands (BPI). Feedback at and . For previous articles, please visit )

3. “MAPping the Future” Column in the INQUIRER on January 7, 2019

“Business in the Age of Disruption” by MAP Trade, Investment and Tourism Committee Member MARY JADE “Jade” T. ROXAS-DIVINAGRACIA, Deals and Corporate Finance Managing Partner of Isla Lipana & Co./PwC Philippines

The speed of change brought about by technology and disruption can be scary but, at the same time, exciting. It brings with it challenges and opportunities. The world we live in

8 today is very different from what our parents lived in and certainly will be very different to what we will pass on to our children.

In artificial intelligence alone, spending is expected to grow six times by 2020, while robotic shipments will grow by three times between now and 2021. Even experts have miscalculated the scope and pace of technological progress. Jobs will be lost and replaced, businesses will evolve, while customers will benefit. The shift will be pervasive and profound that some forecasts show that only half of the companies in the S&P 500 will exist in the next decade.

There are over 150 emerging technologies; of these, PwC selected eight that are considered to have the most significant global impact across industries.

1. Artificial intelligence (AI) refers to technologies that perceive and learn from their environment, then act based on that information. A subset of AI, machine learning, focuses on the development of computer programs that can teach themselves to learn, understand, reason, plan, and act when fed with data. Machine learning carries enormous potential for the creation of meaningful products and services — for example, hospitals using a library of scanned images to quickly and accurately detect and diagnose cancer; insurance companies digitally and automatically recognizing and assessing car damage; or security companies trading clunky typed passwords for voice recognition.

2. Augmented reality (AR) is a visual or audio “overlay” on the physical world that uses contextualized digital information to augment the user’s real-world view. AR-enabled smart glasses help warehouse workers fulfill orders with precision, airline manufacturers assemble planes, and electrical workers make repairs.

3. Blockchain is a distributed digital database or, more broadly, a digital ledger that uses software algorithms to record and confirm transactions with reliability and anonymity. Blockchain has the potential to usher in an era of autonomous digital commerce.

4. Drones are small aircraft without a human pilot. It can be used for wide-ranging reasons, including surveillance, survey, sport, cinematography, and delivery.

5. The Internet of things (IoT) is a network of physical objects — devices, vehicles, appliances — embedded with sensors, software, network connectivity, and computing capability enabling them to collect, exchange, and act on data, usually without human intervention.

6. Robots are machines with enhanced sensing, control, and intelligence used to automate, augment, or assist human activities. These applications are transforming manufacturing and non-manufacturing operations with new capabilities that address the challenges of working in changing, uncertain, and uncontrolled environments, such as alongside humans without being a danger to them.

7. Virtual reality (VR) abolishes logistical limitations and makes anything possible. In a computer-generated simulation of a three-dimensional image or environment, viewers can use special equipment to interact with the simulation in realistic ways. The gaming and entertainment industries are obvious proving grounds for VR. However, VR has the potential to transform many other industries as well, especially in the realm of experiential

9 training where workers can be put into hazardous, difficult, or cost-prohibitive situations without the intense risks associated with these activities in the real world.

8. 3-D printing creates three-dimensional objects based on digital models by layering or “printing” successive layers of materials. 3-D printing relies on innovative “inks,” including plastic, metal, and, more recently, glass and wood. 3-D printing has the potential to turn every large enterprise, small business and living room into a factory. The construction industry is now looking at 3-D printing your house.

In line with this year’s Management Association of the Philippines (MAP) International CEO Conference, we tackled the theme of “Business in the Age of Disruption”. A total of 114 CEOs and business leaders answered the survey, with about 40% from large organizations and 60% from small, medium and micro-enterprises. It is noteworthy to mention that 15% of the respondents identified themselves as startups.

Globally, the business landscape has changed. In fact, 94% of the survey respondents believe disruptive innovations have changed their industry over the past 10 years – in particular, shifting from being product-centric to focusing more on consumer experience.

Uber and Grab are still providing transportation service, but more than that, they offer convenience. Netflix offers entertainment with wider choices, on demand and on various devices. Amazon offers the same goods that you can buy from the shops but with 480 million products listed, no mall in the world is bigger than that. In these instances, technology is not the disruptor but rather the enabler, the tool used to deliver more value to customers.

With this in mind, 68% of the CEOs and leaders surveyed believe that they will need to change their business models in the next three to five years to cope with the evolving

10 business environment. Of this, 80% are looking to change how their products and services are created and delivered to customers.

Yet not all organizations are technology-savvy. Given the role technology plays in all major disruptions, 47% of our CEOs prefer to enter into some form of commercial agreement with technology providers while 34% choose to create their own technology so they can have better control.

In our interview with Edwin Bautista, CEO of Union Bank of the Philippines, he pointed out that, “In the Philippines, the banks are not yet feeling them (fintech startups) because they’re targeting the unbanked or underbanked sector. They are getting traction. The problem is, these players will eventually dominate the mass market because their approach utilizes a lot of technology, such as data science, robotics, artificial intelligence, and use of algorithms. While these new players target the mass market, they will eventually move up the food chain – from the mass market to the retail segment and eventually to the wealthy customers. The traditional banks are forced to move up the food chain, and the banks will start competing and will have a smaller market. Competition will intensify, and the margins will eventually go down.” He added that they are partnering with a lot of fintechs as they see that many of these startups have great ideas and enthusiastic founders.

We have seen a number of these fintech startups beginning to gain traction. Magellan Fetalino, Founder and CEO of Acudeen Technologies, Inc., reported, “Our volume in 2017 was around US$3M, and we were serving 200 SMEs. This year, in just six months, our volume reached US$6M, and we’ve provided financing to 400 SMEs. Our bank partners were saying that we’re now even bigger than some rural banks. The banks were saying that our performance was impressive, and that we need to work together to make it more beneficial for the ecosystem.”

The fourth industrial revolution is changing the way we do business, the way we collaborate. So it is not surprising to see that 79% of our CEOs say that they will form strategic partnerships, and 75% say that they will invest in new technologies. In certain cases, working with startups is also a strategy that 45% of our leaders are looking at. Recently, we have seen more transactions involving traditional businesses investing in or acquiring startups. And they do not just invest in their own verticals. Take for instance Coca-Cola’s investment in Spotify. Startup and corporations can interact in different ways where both emerge as winners. Startups can show corporates how to be agile again. In today’s market, speed to market is more important than bringing a perfect product. Startups can be the R&D group, constantly looking at ways to innovate. They also bring fresher outlook and revitalize the aging culture of corporates. On the other hand, corporates can provide startups financing and access to its business network. This will give startups credibility and a form of validation.

Disruptions, together with the opportunities and challenges that they bring, should be at the core of every organization’s strategy and top of mind of every CEO/business leader. To borrow a quote from Facebook’s Little Red Book, “If you don’t create the things that will kill Facebook, someone else will.”

To know more about the results of the PwC MAP 2018 CEO Survey, please visit www.pwc.com/ph/ceosurvey

(The author is a member of the MAP Trade, Investment and Tourism Committee, and the Deals and Corporate Finance Managing Partner of Isla Lipana & Co./PwC Philippines. Feedback at [email protected] and [email protected]. For previous articles, please visit ).

4. “MAP Insights” Column in BUSINESSWORLD on December 18, 2018

“Commodity Price Volatility is a Fact-of-life” by MAP AgriBusiness and Countryside Development Committee for 2018 Chair ROLANDO “Rolly” T. DY

2018 is a subdued year for many world-traded commodities. Prices are down. The Philippine countryside was not spared, as it is reeling from the effects of low farm prices of coconut oil palm and rubber. The bitter part is that farmers and workers are saddled with high food prices.

World-traded commodity producers are price-takers. There are price cycles since there are many players. Supply and demand law operates. Reality check shows that to mitigate income fluctuation, productivity and unit cost are key. Low-productivity can cause losses in a down price cycle. For example, coconuts are not harvested; rubber trees are not tapped. Farm jobs are also reduced.

Going south

2018 appears to be watershed for coconut. In 2015-2016, the situation was the same for natural rubber, as 2015 posted low prices.

Source: World Bank

In the case of coconut, which forms a large chunk of the farming community, low product prices are hurting the already poverty-stricken countryside. Add to that the high food prices. A long-delayed diversification (intercropping) plan under a stakeholder-driven roadmap could have helped balance the risks.

Oil palm farms are also hurting but not as bad as coconut. But many Filipino oil palm farms are producing less than half those of Indonesian and Malaysian plantations.

Rubber prices, since their peaks in 2010-2013, are on a six-year decline. The impact on Mindanao rubber areas is telling as average farm yield is about a third that of India, Thailand and Vietnam.

Natural Rubber: Historical world prices

Stable

Coffee and cacao are doing well. They posted lower price volatilities. However, their harvested areas are smaller and coffee yield is very poor in the Philippines.

Cocoa: Historical world prices

Source: World Bank

Fertilizer and Oil

Both have volatiles prices. Fertilizer appears “stable” from 2016 to present. Petrol is influenced not only by supply but also by geo-politics (e.g., Trump’s Iran sanctions).

Incidentally, low oil prices affect the cost of synthetic rubber from oil, and in turn, farm-grown natural rubber in Mindanao.

Where to?

Investing in perennial crops is a major decision. The farm is tied up for up to 25-30 years, and crops have negative cash flows during gestation. During those 30 years, expect low and high prices. To be sustainable, good practice management to achieve high productivity is primordial. Quality is also a consideration.

To access good planting materials and best-practice, small farms must be under consolidated management or variant thereof. This way, productivity and quality are achieved, and income volatility is remedied.

(This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.) 14

------ROLANDO T. DY is the Chair of the MAP AgriBusiness and Countryside Development Committee for 2018, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific. [email protected] [email protected] http://map.org.ph

5. MAP Statement on Real Property Valuation under TRAIN 3

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8. Forthcoming Events

9. Articles/Papers being Shared with MAP Members

9.1 “All I want for Christmas is – my country” from MAP Tax Committee 2018 Chair and MAP EMERGE Committee 2018 Vice Chair ALEXANDER “Alex” B. CABRERA’s “As easy as ABC” Column in THE PHILIPPINE STAR on December 23, 2018

It may be commonplace to us, but it’s golden to those separated for the rest of the year, or separated for two years in a row, to get back together as a family, at least during weeks leading to Christmas. Getting back home is not exclusively an OFW story though; it’s also an aging Filipino immigrant story. In fact, for someone I know, the rest of his family remained in the US, while he went ahead to resettle in the Philippines.

During a round of golf, this balikbayan who couldn’t wait for his own family to join him said he hated the cold. Here, where the climate is warmer, he is also taken care of by everybody. Besides, he said, there is nothing like living in your own country.

I bit my lip so as not to spoil his moment. I wanted to utter a rude rhetorical question I heard from my son (who studies in UP): “Was this country ever ours?”

Knee-jerk answer – of course, we could say, after all, it’s just 300 years Spaniards’, 50 years Americans’, and four years Japanese’s. But after that, half-owned by Americans for additional decades because of parity rights. Then there’s Marcos, the Philippine leader that divided and ruled, and allocated the country to their family and cronies for the taking.

Then today, there’s China. I know it’s Christmas, let’s not be mean. Let’s also get real. Christmas is not about giving away islands or shoals, or any part of Philippine territory. If anyone wants fresh territory, there may still be unclaimed land in Antarctica. They should plainly leave those which are part of a country’s territory already because historically, they start senseless wars and conflicts.

Again, just for the record, territory is geographical. Whatever is more than 1,000 kilometers from China and just 75 kilometers from our shorelines should logically belong to us. Why? Because it is a stone’s throw away! We are supposed to swim and fish in our own waters, and other nations who want to fish in our own waters should get permission from us, and not the other way around. If this logic is not enough, there is a 500-page decision (which I read entirely) at The Hague that says the law of the seas should be respected. (To As Easy as ABC readers, you can revisit 10 truths from The Hague verdict published in July 17, 2016: www.philstar.com/business/2016/07/17/1603583/10-truths-hague-verdict)

China is not that bad because they allow us to fish in our own waters, subject to their permission. They don’t just build islands in our waters; they even claim nearby shoals. No need to worry, they say, because they have built facilities there to monitor the weather and protect the environment – after damaging the marine ecosystem where they erected the islands. But if it’s worth doing for them, it’s probably not because weather is on top of the agenda.

The job of the president, particularly on this territorial issue is tough, and understandably so. This much though must be said: the person prone to be bullied, the person prone to be disrespected, is he who is most agreeable. There are many scientific things to arrive at fair compensation, but – it has to be demanded or persuasively suggested.

For example, the islands or that part of the Philippine territory can be the subject of a financial valuation. When the strategic value reduced in financial terms of Philippine territory occupied by China is determined, then we can say if the Chinese aid or pledges barely scratch the surface of compensating for what was taken, and continue to be taken.

Truth be told, Chinese people themselves have many admirable traits worth emulating. They are hardworking, they are naturals in business, and they are humble.

When Filipinos act as dummies so Chinese investors can buy land to develop, or when locals engage Chinese workers, allowed or not, by government to work here, the Chinese bear the brunt. But that happens only because some people from our side, the agreeables, take personal advantage.

To be fair, we don’t need to pick on any particular non-Filipino. If the agreeable locals show wanton disrespect for their own country’s rules, why wouldn’t foreign nationals be less uncomfortable doing the same? Remember the phenomena of Filipinos abroad suddenly and magically becoming law-abiding individuals who obey traffic rules and wait in queues? That’s because people there respect their own country’s laws and rules, and so we would be afraid to do it our way.

On respect as a nation, the easiest way to get ridiculed globally is to have corruption unabated, or even justified. So the Marcoses set a precedent, using rules and clout to delay criminal punishment and to refuse the return of billions stolen. And this precedent was picked up quite recently by a senator who refused to return taxpayer money that found its way to his personal bank accounts. Not to be outdone is the mind-boggling electorate that appears thankful for the thievery by expressing political support.

How do we demand, really, respect from the world when as a nation, we have little respect for ourselves? We allow crime to pay, we socialize and party with criminals, we give them a rostrum to speak and “grace” our business meetings and conventions, and they get elected again because even the well-educated treat them with respect. If we continuously show the world that we’re okay with those who are supposed to serve and protect us steal from us, why wouldn’t other nations be emboldened in their opinion that we will tolerate unlawful taking, be it taxpayer money or Philippine territory? Anyway, we are agreeable.

Hey, we will impose some reprieve. Whatever remains of the longest Christmas season in the world, we will make the most of it. We will remember that out people stay here, and our people come back here not for our imperfections, but for what is best about us: the smiles that melt, the warmth that’s not fake, the laughter that’s uncontrolled and free, and sentimentality that brings one to tears. Oh, and that Filipino style cooking that’s rich, salty, sweet, crispy, and plentiful.

Today I will allow the good to make me merry, to live another year, and to give a good fight for respect for country in 2019. Here’s As Easy as ABC this Christmas wishing everyone that we all count our gifts, but then – use them well. 22

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Alexander B. Cabrera is the chairman and senior partner of Isla Lipana & Co./PwC Philippines. He is the chairman of the Tax Committee, and the vice chairman of EMERGE (Educated Marginalized Entrepreneurs Resource Generation) program, of the Management Association of the Philippines (MAP). Email your comments and questions to [email protected]. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

9.2 “Rizal: Return to purpose” from MAP Tax Committee 2018 Chair and MAP EMERGE Committee 2018 Vice Chair ALEXANDER “Alex” B. CABRERA’s “As easy as ABC” Column in THE PHILIPPINE STAR on December 30, 2018

Beside a spacious beach of fine and delicate sand

and at the foot of a mountain greener than a leaf,

I planted my humble hut beneath a pleasant orchard,

seeking in the still serenity of the woods

repose to my intellect and silence to my grief.

- From Rizal’s My Retreat, translated by Nick Joaquin

It’s easier to think of returning our talents a hundredfold if we think we possess only a couple of talents. But what if we were given so many special gifts? God appears to be playful when he rained talents on earth in an earlier century, but directing most of the showers on one man called Rizal. He who is immortalized in many countries outside his own. He who had statues erected in almost all parts of the globe where he visited, by foreigners who didn’t see race nor color, but genius and bravery.

After he wrote two novels, among other mind-awakening articles, then Spanish Government was prepared to give the colony’s best and brightest one last chance to conversion to their rule. If he would be obedient, he shall be a formidable ally for Spain and their brand of Catholicism to soothe the resentment and nip the sprouting seeds of rebellion.

So he was sent into exile to a far corner of the country in Dapitan, under the watchful eye of the Jesuits and the Spanish governor so he could reform his “wrong beliefs.” It would be an exile like no other as Rizal would unleash all his God-given talents, outside of writing novels, to the fullest.

He used his steady hands to perform eye surgery with very limited tools, curing and providing free medicine even to the poor people of the town. He went into poultry farming and agriculture, teaching people how to make it an industry. He designed and constructed water systems. He engaged in the abaca trade and fishing, among others. He set up a school and became a teacher to little boys. He created sculptures and artworks, including a huge oil painting that served as a backdrop to the church altar. 23

He constructed his own native wooden house by the beach, met Josephine Bracken, and of course composed poems, including his apparently second most highly acclaimed poem called My Retreat.

If you read through Rizal’s piece, it would be easy to get lost in the beauty of nature that he described. You would also see that while he was thankful for that moment, that period for him was easy living. He never lost the feeling that without returning to his true purpose, he would not be using his real gifts like “a disregarded pebble that craves nothing but moss to hide from all the treasure that in myself I bear.”

Rizal indeed raised the bar again because it’s not like he didn’t use his talents in Dapitan, where he made as much difference as he could. For him, it’s not just about using one’s gift, but about using one’s greatest, most game-changing gift.

No amount of utopia or daily personal joy would detract him from the reality he felt he was not able to do something about. He recalled how he was like a butterfly that roamed in his youth in foreign soil, and returned to the country, thus:

And afterwards, when I desired, a weary swallow, to go back to the nest of those for whom I care, suddenly fiercely roared a violent hurricane and I found my wings broken, my dwelling place demolished, faith now sold to others, and ruins everywhere.

Hurled upon a rock of the country I adore; the future ruined; no home, no health to bring me cheer;

If I may be allowed to spoil the flow of his poetry and return to reality for a moment, there are valuable insights to be shared. How many among us, especially the young, would enjoy much-needed vacation, and creep back to our workday as if it is our harsh reality? Some would even extend vacations to avoid a scheduled return to day-to-day realities. Always too early to return to purpose?

Rizal was able to end his exile by getting approval to serve as a doctor in Cuba, in support of Spain. With a heavy heart, he left Dapitan, with the whole town standing in tribute as his vessel sailed away. For him it was still not a joy to leave. Why? Because in Dapitan, he was free to be happy, but not free to have the happiness he desired. (Perhaps from Cuba, under less watchful eyes, he could make a move again.) If Rizal reflects anything Filipino about that, right or wrong, we love our freedom. And at the risk of misusing our freedom, we choose it like a purpose. That is why communism or dictatorship will have no place in our nation and those who attempt to take us there will miserably fail.

Despite Rizal’s superhuman prowess and heroism, you sense from his poem that like any other human being, and like any other leader, he craved for some affirmation, some tribute, something for himself:

Across the fields and rivers of my native town

perhaps has traveled the breeze that now I breathe by chance;

perhaps it will give back to me what once I gave it:

the sighs and kisses of a person idolized

and the sweet secrets of a virginal romance.

Rizal maybe out national hero but his influence is global. He is deserving of a thousand tributes and yet he is a real tribute to humankind. Maybe his death was so timed before the year turns so we are reminded that we are entitled to retreat to moments that give us the most joy – but then be prepared to return to purpose.

* * *

9.3 “The future (Part 1)” from MAP Past Governor PETER WALLACE’s “Like it is” Column in the PHILIPPINE DAILY INQUIRER on December 27, 2018

We are about to start a new year, and I wish you all a great and successful one. It’s a good time to look at not just another year, but the future. What’s in store for us—in this upcoming world.

Man has been on this Earth for about 200,000 years in his current form. For the past 199,700 of those years little has changed. Man has struggled through a short, brutish life (30-40 years) of growing up, working, most likely as a slave in a cruelly demanding menial job. Having some kids, and dying. A meaningless life.

It’s a very different world today. Scientific awareness of any society-influencing value didn’t start in any substantive way until the 17th century. And today’s modern living probably didn’t start till Henry Ford invented mass production in 1926. The world has never been the same since.

199,700 years of negligible change in the human condition 300 years of earth shattering change. And that’s nothing, the past 50 years have seen more change than in the whole of

25 human history. And it’s accelerating. It’s now moving into a level where we poor, benighted humans can’t adapt fast enough.

AI (Artificial Intelligence) didn’t exist five years ago. It’s now intruding into everything we do at an ever increasing pace. Robots are replacing people faster and faster. Nanotechnology is bringing things down to a size where we can’t even see them. Nanotechnology, this is things the size of molecules, is going to revolutionize electronics as drastically as the transistor (from which the chip emanated) did in 1947. I was studying valves at university. Transistors were introduced in my last year. The limit on size won’t be how small you can make it. It will be what’s the smallest you can handle. Or it will be built into your body, even into your brain.

Our future is an electronic one. Nothing, but nothing is now just a simple, mechanical function. There’s a chip in everything. Open the hood of your car, there’s no engine. It’s a black box on top with god knows what inside. A light switch will soon know what level of light is needed and adjust accordingly. When you switch on your cellphone, it doesn’t switch on, it programs. It runs through all sorts of activities before it deigns to allow you to use it. DepEd is still giving books to kids — a book for every child. A tablet contains a thousand books. And of far better quality too. The agency is rolling out the distribution of tablets for senior high school students – but needs far more funds to cover all students, at all levels. Mind you I love books and much prefer to read from them, to feel them. But now when I travel it’s a kindle. It weighs nothing, takes up no space. And needs no external light. Sad, but that’s the reality of the future.

Online shopping is now a given.

What determines the size of a cellphone won’t be the components needed to fit into it, but the screen to read. Eventually (a short “eventually”) that will be replaced by a hologram— a screen projected into the air. A little later your phone will just be built into your body and be connected to your brain. Your thoughts will be transmitted, well the ones you want transmitted hopefully. There’ll be an interim period where you’ll still vocalize, but the phone will be in you.

As Jack Ma, the founder of Alibaba said "in 30 years, a robot will likely be on the cover of Time Magazine as the best CEO."

Yet, despite this reality and inevitability, we still have politicians and bureaucrats acting as though they were living in the 19th century. They are basing laws and regulations on life in the past, not allowing for the change that is occurring.

The latest is in a National ID (it will be called PhilSys). As I argued in my column of March 8, 2018 titled “Don’t be a Luddite” you no longer need a card to identify someone, even fingerprints are passé. A photo will do, or a scan of the iris. Even the sound of your voice. All are more reliable and certain. Walk into a government office and it can instantly recognize you and allow you to transact business. A voice call even allows you to transact business from your phone. So I hope the Technical Working Group designing our National ID, takes this into account and designs it for the future.

To be continued.

E-mail: [email protected] Read my previous columns: www.wallacebusinessforum.com

9.4 “The future (Part 2)” from MAP Past Governor PETER WALLACE’s “Like it is” Column in the PHILIPPINE DAILY INQUIRER on January 3, 2019

This is the conclusion of my column last week on technological advances we are seeing now and what we will see in the coming years.

Coming are automatic, driverless cars. This was a science fiction thought a scant few years ago, but Elon Musk and Tesla have accelerated its introduction at an unbelievable rate. All the major car companies are shifting to electric—powered, automatic cars, planning to phase out the internal combustion engine totally within five to 10 years. Congress and the DOTr together with the increasingly important DICT need to be researching what sort of laws will need to be introduced to sensibly control it. As a sideline to that, how about smart traffic lights that can assess the traffic and adapt to it. They must exist or will soon. We need them, it’s frustrating to be stuck at a traffic light when no one is crossing in front of you.

Then there’s drones, they are going to intrude into our lives, in a very positive way, more and more rapidly and widely. You may now order goodies from Amazon and your items will be dropped at your door step, gently, by a drone. Delivery boys will lose their jobs.

Job loss is going to be a major concern as AI encroaches ever more intrusively into every thing. Robots already replace waitresses in Tokyo and London. AI can answer your questions in many instances where a human was needed. Some, by no means all, of our 1.4 million young people in call centers are going to be replaced. Is anyone thinking about that? Under the DICT’s leadership they need to.

As for jobs in factories, forget it. Manual labor will become robotic almost entirely. So the government’s focus on enticing manufacturers to build their plants here is good for the growth and independence of our economy, but it’s short term for jobs. Those jobs will become fewer and fewer.

An estimated 500,000 to 700,000 people enter the workforce every year, about 2.4 million are unemployed and want to a job. Add to that who knows how many millions currently employed who are to be displaced by AI. And OFW’s who’d like to come home. It’s a crisis in the making—if it isn’t addressed now. The Philippines needs to put its efforts into developing sectors that still need people, real, live, living people. Agriculture is the biggest opportunity. Some of it will be mechanized, but much of it will still find people more cost- efficient. At a rough guess, Philippine agriculture could be doubled. It could not only feed our people (which it can’t now), it could export huge amounts of crops in high demand. To a world where demand is increasing beyond supply’s ability to provide.

Tourism is another, there’s little that can be taken away from people. Robot receptionists have been introduced in Japan but it’s a small intrusion.

Healthcare is another. The loving attention of a Filipino nurse is hard to make in steel and plastic. Doctors may be at more risk. Machines are already proving better at diagnosing some diseases. And this can only get worse—or better depending on your point of view.

Chefs will remain, but not cooks. A machine can cook a hamburger, but not an Escargots de Bourgogne. Fastfood outlets can be mechanized. Robots are already serving hamburgers in Tokyo. But fine dining will still need people, but how few enjoy that.

Developing IT, programming and the like will still need humans, but ones intelligent and trained for it. Imagination and innovation will almost entirely still need a human brain. But AI will learn to do some of that too. Is our education geared for it? Are our politicians preparing us for it? Not that I’ve seen. That and human empathy are what AI can’t reproduce. They are what our leaders should be researching and developing. I see the DICT as the lead in this. The DICT is our country’s future, it’s a reason I lobbied so hard for its creation in the last administration. Thank heaven Aquino finally listened, and agreed to sign the law. Now Duterte has to make sure it does this humongous job of recognizing what the future will bring and putting the Philippines in a lead position in it. The Secretary of DICT has his work cut out. And Congress needs to put laws in place for the future.

Enjoy the coming year. Happy New Year.

Read my previous columns: www.wallacebusinessforum.com E-mail: [email protected]

10. Happy Birthday to the following MAP Members who are celebrating their birthdays from January 1 to 31, 2019

January 1 10.1 Mr. MANUEL “Manny” L. WONG, General Manager, Acer Philippines, Inc.

January 2 10.2 Mr. MANUEL “Manny” L. WONG, General Manager, Acer Philippines, Inc. 10.3 Ms. MARIA LUISA “Luchi” D. VITALES, Director of Human Resource, Monde Nissin Corporation

January 3 10.4 Mr. LAURENT P. LAMASUTA, President and CEO, Ayala Properties Management Corporation (APMC)

January 4 10.5 Mr. ALLEN L. LEE, President and General Manager, MESCO, Inc. 10.6 Mr. NELSON C. PAR, Chair, Pascal Resources Energy, Inc. 10.7 Ms. TITA D. PUANGCO, CEO, Ancilla Enterprise Development Consulting, Inc.

January 5 10.8 Mr. RAYMUND “Ray” T. AZURIN, Chief Executive, Zuellig Pharma Corporation 10.9 Mr. FRANCISCO “Paquito” A. DIZON, Chair and President, Pacific Northstar, Inc. 10.10 Mr. FERNANDO “Fern” O. PEÑA, President, MOF Company (Subic), Inc. 10.11 Engr. TELESFORO “Porsche” E. PEÑA, Managing Partner and Founder, T & D Design Consultancy, Co. 10.12 Ms. EVELYN GRACE “Grace” C. SORONGON, SVP and Managing Director, John Clements Consultants, Inc. 10.13 Dr. TONY TAN CAKTIONG, Chair, Jollibee Foods Corporation

January 6 10.14 Mr. JOSE JEROME “Jeng” R. PASCUAL III, CFO, VP for Finance and Treasurer, Pilipinas Shell Petroleum Corporation 28

10.15 Ms. LOLY NGO UY, CFO, San Roque Supermarket Retail Systems, Inc. (SRS)

January 7 10.16 Mr. MABINI “Mabs” L. JUAN, Chair and CEO, Actuarial Advisers, Inc. 10.17 Mr. ARMANDO “Armand” S. NG, General Manager, Asia Cargo Container Line Inc. 10.18 Mr. BENJAMIN “Ben” R. PUNONGBAYAN, Founder, P&A Grant Thornton

January 8 10.19 Dr. JAIME “Jimmy” C. LAYA, Chair, Philtrust Bank 10.20 Mr. BERNIDO “Bernie” H. LIU, Chair and CEO, Golden ABC, Incorporated 10.21 Atty. RICARDO “Dick” J. ROMULO, Senior Partner, Romulo Mabanta Buenaventura Sayoc & de los Angeles

January 9 10.22 Ms. LORRAINE “Rain” BELO CINCOCHAN, President and CEO, Wilcon Depot, Inc. 10.23 Dr. BEN PAUL “Ben Paul” B. GUTIERREZ, Dean - Cesar E. A. Virata School of Business, University of the Philippines (UP) 10.24 Mr. JEFFREY STEVEN “Jeffrey” JOHNSON, SVP for Human Capital Resource Management, Telephilippines, Inc. (Teleperformance) 10.25 Mr. KRISHNA SURAJ “Suraj” MORAJE, Senior Partner, McKinsey & Company

January 10 10.26 Ms. MARIA NOEMI “Noemi” G. AZURA, Chief Strategy Officer, The Insular Life Assurance Co., Ltd. 10.27 Dr. ROBERTO “Bobby” F. DE OCAMPO, OBE, Chair and CEO, Philippine Veterans Bank 10.28 Mr. FREDERIC “Ricky” C. DYBUNCIO, President, SM Investments Corporation 10.29 Mr. SEBASTIAN “Baste” C. QUINIONES JR., Retired Oil and Gas Executive – Shell

January 11 10.30 Ms. LUCIA JANE “Sheila” P. LINA, President and CEO, Air21 Global Inc. 10.31 Mr. ELMER FRANCISCO “Elmer” U. SARMIENTO, President and CEO, Royal Cargo Inc.

January 12 10.32 Cong. HARRY C. ANGPING, President, AP Genco North Services Inc. 10.33 Mr. DANILO “Danny” VALENTON FAUSTO, President, DVF Dairy Farm, Inc. 10.34 Mr. WILSON P. TAN, Vice Chair and Deputy Managing Partner, SyCip Gorres Velayo & Company (SGV & Co.)

January 13 10.35 Mr. MANUEL “Manny” U. AGUSTINES, Chair, Ramcar, Inc.

January 15 10.36 Mr. FRANCISCO “Frankie” C. EIZMENDI JR., Chair, Dearborn Motors Company, Inc. 10.37 Mr. ERH-CHANG “Peter Wei” WEI, President and CEO, CTBC Bank (Philippines) Corp.

January 16 10.38 Mr. OSCAR B. BIASON 10.39 Mr. KASIGOD “Kas” V. JAMIAS, President and CEO, The Zuellig Corporation 10.40 Dr. EDWARD “Moi” M. MOISES, Dean - School of Management and IT, De La Salle - College of St. Benilde

January 17 10.41 Mr. RICARDO “Ric” G. LIBREA, Member of the Board of Trustees, The Insular Life Assurance Company, Ltd. 10.42 Mr. ANTONIO “Tony” A. TURALBA, Chair, President and CEO, Active Group, Inc.

January 18 10.43 Mr. VICTOR “Vic” Y. LIM JR., President, Banco Mexico Inc. 10.44 Mr. ROBERTO “Bert” G. MANABAT, Chair Emeritus, KPMG R. G. Manabat & Co. 10.45 Ms. MA. CECILIA “Cindy” F. ORTIZ, Partner, Audit and Assurance, Navarro Amper & Co. / Deloitte Philippines

January 19 10.46 Mr. LUIS “Louie” M. CAMUS, Chair and President, L. M. Camus Engineering Corporation 10.47 Mr. BURTON CRAPPS, CEO, Purlieu International 10.48 Mr. PATRICK DAVID “Dave” R. DE LEON, COO, IP Converge Data Services, Inc. 29

January 20 10.49 Dean RODOLFO “Rudy” P. ANG, Dean, Ateneo de Manila University Graduate School of Business 10.50 Mr. SANTIAGO “Santi” F. DUMLAO JR., Secretary-General, Association of Credit Rating Agencies in Asia (ACRAA) 10.51 Ms. ANNA GREEN, CEO, Autralia and New Zealand Banking Group

January 22 10.52 Dean PASCUAL “Al” SAYO GUERZON, President, Melior Realty Services

January 23 10.53 Mr. RABBONI FRANCIS “Bong” B. ARJONILLO, President, First Metro Investment Corporation 10.54 Mr. VICENTE “Ting” R. AYLLON 10.55 Ms. JEANETTE “J'net” BAUTISTA ZULUETA, Chair, ZMG Ward Howell, Inc.

January 24 10.56 Mr. YU MING CHIN, Executive Director, Viventis Search Asia 10.57 Atty. ROBERTO “Bobby” P. LAUREL, President, Lyceum of the Philippines University (Manila, Makati, Cavite) 10.58 Mr. ALFREDO “Fred” B. PARUNGAO, President, Ligaya Management Corporation

January 25 10.59 Mr. NESTOR E. CONSTANCIA, Marketing and Sales Manager, Gardenia Bakeries (Phils.), Inc.

January 26 10.60 Mr. ROMEO “Romy” G. DAVID, Chair and President, BNL Management Corporation 10.61 Gen. JOSE “Joemag” P. MAGNO, Chair, Citra Metro Manila Tollways Corporation 10.62 Ms. ELIZABETH “Beth” G. RABUY, General Manager and Director, FPD Asia Property Services, Inc. 10.63 Mr. ALFREDO “Fred” C. RAMOS, Chair, The Philodrill Corporation 10.64 Mr. RODOLFO “Jun” B. STA. MARIA JR., Treasurer and VP - Finance, STRADCOM Corporation 10.65 Atty. SYLVETTE Y. TANKIANG, Senior Partner, Villaraza & Angangco (V&A) The Firm

January 28 10.66 Dr. FRANCISCO “Sonny” L. VIRAY, President and CEO, PHINMA Energy Corporation

January 29 10.67 Amb. FRANCISCO “Toting” V. DEL ROSARIO 10.68 Mr. CARLOS MA. “Caloy” G. MENDOZA, Executive Director and Head of Banking, Philippines, JP Morgan Chase & Co. 10.69 Mr. HILARIO “Larry” C. MURILLO JR., President, Grandcatch, Inc.

January 30 10.70 Atty. SERAFIN “Jun” U. SALVADOR JR., Managing Partner, Salvador Llanillo & Bernardo, Attorneys-at-Law 10.71 Ms. EVELYN R. SINGSON, Vice Chair and President, Dusit Thani Philippines, Inc. 10.72 Mr. JESUS “Jess” G. TIRONA

January 31 10.73 Mr. EMMANUEL “Noel” D. BAUTISTA, Executive Director, Head of ASEAN, LF Logistics (Philippines), Inc. 10.74 Mr. MANUEL “Karim” GONZALEZ GARCIA, VP for Business Development, Metro Pacific Investments Corporation (MPIC)

11. Condolences to the bereaved family of the following:

Mr. ENRIQUE “Ike” V. BERNARDO, husband of MAP Past President (1994) CORAZON “Cora” S. DELA PAZ-BERNARDO, who passed away on January 6, 2019 at the age of 76. 30

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