Manny Maceda Global Managing Partner, Bain & Co.

Justo Ortiz Marjorie Lao H.E Steven Robinson Chairman, Unionbank of the Philippines CFO, Lego Australian Ambassador

Vince Dizon Chito Zulueta President and CEO, Bases Conversion and President, Eli Lilly Int’l Development Authority FORUM 2019

Mayor Mayor City City of

Mayor Abby Binay Former SAJ Antonio Carpio Dr. Michael Purugganan City Supreme Court of the Philippines Silver Professor of Biology, New York University

Astrid Tuminez President, Utah Valley University MBC FORUM 1 - 2019 The CEO Agenda in an Era of Disruption

MANNYWorldwide Managing Partner, Bain & CompanyMACEDA 17 January 2019 | Fairmont Makati, Makati City

This requires running on parallel tracks, which is complex. Engine 1 is the business that’s most profitable, which the senior management did a good job growing. With Engine 2, you try to incubate something new and different. This takes more time, needs different skills, and might actually threaten Engine 1.

To manage new models while simultaneously continue growing Engine 1, Google uses an allocation for their investments called 70- 20-10. They invest 70% for R&D and innovation to keep their core businesses strong. Twenty percent goes to adjacencies or new related areas. Finally, 10% goes into The premise constraint today is talent, not ● Create a blueprint for the operating “moonshots,” which are unrelated, The defining parameters of a capital. Millennials, already the model. The CEO must lock in the might-disrupt-the-business ideas. management company change every largest group in the workforce “unit of value creation” and ensure 40 to 50 years. We are currently in the wants a higher purpose than just that the blueprint designs the The concept is to spread investments middle of another transition—a major making money for shareholders. organization around this unit. not just towards growing the core point of disruption—from the era of They are less motivated by ● Execute and deliver. Translate but also towards something totally strategy into language that the shareholder primacy to the era of the financial rewards, more by learning different that might become the core. organization understands and scale insurgent. and new experiences. Executives need new skills and mindset to create advocacy with customers, CEO as Chief Transformation the board of directors, and other The shareholder primacy era is manage new workers, veering away from hierarchy, fostering stakeholders. Architect breaking down due to a number of flexibility. When a company goes through a factors: transformation, it is a challenge if 4. Technology: Changes driven by Adopting an Ecosystem Mindset artificial intelligence, Internet of all the executives’ skills have been 1. Short-termism: According to a As business insurgent grows, it needs Things, and quantum computing, wired to build the successful core Reuters analysis, 1,900 out of to avoid slowing down by becoming businesses. Many of the instincts to among others. 3,297 publicly traded non-financial a scale insurgent. To transform from transform will be viewed as wrong US companies repurchased shares The challenge being an insurgent to a scale insurgent, or as a different set of values. In it is important to create value by between 2010 and 2015, and How can CEOs lead his/her company’s order to enable the new strategy, the working with ecosystems of value. In within this group, buybacks and transformational journey in the era of mentality of the organization might manufacturing, for instance, a company dividends were 113% of capital scale insurgency? have to be changed. Sometimes the spending, compared to 38% in should disaggregate its operations operating model has to be changed, to specific pieces and determine who 1990. On the other hand, R&D The following are the new CEO roles and that can be a difficult process. The should best control each piece. Then spend has fallen below 50% of in this era of disruption: CEO has to pick people who can play identify the areas the company is net income from over 60% in the Set a meaningful for the the transformation role and give them ● ambition really good at before finding the best 1990s. organization. In today’s world, the enough power to drive change. partner/s who can focus on the rest 2. Increasing complexity: ambition has to manifest a “nobler of the pieces. Having an ecosystem Corporations have gotten mission,” a purpose for people to mindset requires partnership skills. more complex. The traditional work for the company. Summary by command and control structures ● Develop a strategy or full potential Ma. Roxanne V. Lu Driving Growth from Engine 1 to MBC Programs and Projects are too complex and just plan to achieve that ambition. Director can’t keep up with the pace of ● Develop the right people and get Engine 2 innovation in the market. them into the right jobs, doing the The challenge for companies is to Layout by Clinton A. Balbontin 3. Changing workforce: The binding right thing. build a business that disrupts itself. MBC FORUM 2 - 2019 Transforming Fear Into Opportunity

JUSTOChairman, Unionbank ORTIZ 11 February 2019 | Makati Shangri-La, Makati City

Degree of disruption “We’re fearful. If you don’t transform and firmly Company life spans are getting shorter due to disruption. move into the Fourth Industrial Age, you’re not For example, US listed-company lifespans are down from 55 gonna be around. It’s important to take what years to 35 years, according to Boston Consulting Group. This J.P. Morgan says, ‘Go as far as you can see, is predicted to decline to 12 years by 2027. and when you get there, you’ll see further.’ Not farther, further.” Major business challenges Justo Ortiz • “Peer-to-peer” or “shared economy” Moonshot – Companies need “crazy, unreachable, impossible, • Marginal cost of production or service is near-zero. ridiculous” goals. Without organizing for a “moonshot,” returns • In a sharing economy, technology helps drive down costs, will be the same or just marginally better. give people power to self-serve, and satisfy own wants/ needs. Dual Transformation – Unionbank is pursuing change on two tracks. In Transformation A, the business is digitizing. How UnionBank is transforming itself In Transformation B, UnionBank is remaking itself as a Agile management – UnionBank uses Agile management technology company that is also a bank. This is leading to new to deliver new products, services, and features more areas such as a logistics supply chain platform, a blockchain- quickly, increasing its responsiveness to customers. In Agile based platform for rural banks. management, the top-down approach is replaced by cross- functional teams empowered to make decisions. People – Digitization and automation eliminate but also create jobs. New jobs include digital content marketing Stories – To get the customer-service and people-centered managers, digital data analysts, iOS and Android developers. culture it wanted, UnionBank sought and disseminated stories Jobs are lost, but not people. of employees making decisions that may bend usual practice Summary by Geneva Frances C. Guyano but don’t break the law. MBC Programs and Projects Officer

Layout by Clinton A. Balbontin MBC FORUM 3 - 2019 Roundtable on Innovating for the Future

MARJORIEChief Financial Officer, Lego LAO 15 April 2019 | Discovery Primea, Makati City THE CHALLENGE Lego’s way of addressing megatrends and its innovative strategies to remain competitive MEGATRENDS AFFECTING THEIR INDUSTRY 1. Reshaping of the retail environment, mostly driven by e-commerce 2. Digitalization of play and consumer engagement 3. Global economic and demographic shifts

SEVERAL STRATEGIES ADOPTED BY LEGO Internet safety for kids in everything themselves, failing to SCAN HERE FOR MORE PHOTOS 1. Innovation in retail and offer partnership with UNICEF understand their own limitations. unique brand experiences 4. Grow, invest, and learn about in stores by creating a great new markets outside North Learning from this, LEGO experience for kids and America and Europe (i.e., returned its focus on their core parents (i.e., personalizing introducing the LEGO brand business, which is producing the mini-figures, augmented in China) LEGO bricks. Non-core businesses reality, mosaic maker) 5. Innovate the way LEGO does were sold or closed down, 2. Innovate product portfolio business through adopting but they deliberately pursued by integrating digital play sustainable operations partnerships to bring LEGO in with physical play experience other areas, such as in movies. You may also visit: bit.ly/MBCRTDLaoPhotos (i.e., making robotics fun for Maintaining the “LEGO DNA” kids, introducing coding to In the early 2000s, the LEGO Today, as a guiding principle offshore wind farms kids, and play using LEGO Group experienced a financial when expanding into other • Sustainable materials by 2030 augmented reality app) slowdown primarily because of product lines, LEGO focuses on - Take the first step with bio- 3. Maintain the strictest safety two things. First, the company the consumer and innovates based elements and continue standards for children during lost sight of what consumers based on what they want, to invest to come up with play, both physical and digital. want. Second, they tried to do while having the discipline to innovate within the company’s more sustainable materials for TECHNOLOGY AND COPYCATS constraints/parameters. their products “Technology makes it easier to copy our products, • Encourage children to take for example through 3D printing. The difference, of LEGO’s Big Mission: care of the planet themselves course, is the quality of the product. But technology has “All LEGO bricks will be made allowed us to innovate faster. In terms of dealing with from sustainable materials by copycats, we take a hard stand against infringement of 2030.” Summary by our products. We are working closely with governments Ma. Roxanne V. Lu • Zero-impact operations - MBC Programs and Projects and customs authorities, and we are educating Director consumers on the benefits of original LEGO products.” Global energy consumption of LEGO is matched by renewable Photos and Layout by Clinton A. Balbontin Marjorie Lao energy or investments in MBC FORUM 4 - 2019 Asia Pacific Security and Risks to Growing Regional Trade

STEVENAmbassador of Australia to the PhilippinesROBINSON 25 April 2019 | Dusit Thani Manila, Makati City The perspective from the Australian government is that the Indo-Pacific region is going through a period of profound change. If current trends persist, the region is set to become more competitive, more contested, and arguably, less stable.

CRITICAL CHANGES IN REGIONAL DYNAMICS AND INFLUENCE The key strategic dynamic expected to influence the region for the foreseeable future is the presence of two major powers, the United States and China, each with substantial interests and heft: • China’s fast economic growth, which has seen its share of world GDP increase For more photos, visit: bit.ly/MBCAprGMMPhotos from 2% in 1980 to nearly 19% today, is defense forces so it can be more proactive diplomacy should be applied more actively already translating into significant power through its Free and Open Indo-Pacific to help shape a more secure, open, inclusive, and influence across the region. It also has (FOIP) strategy, launched in 2016. and resilient Indo-Pacific region. the largest navy and air force of any Asian • India, now considered as a major defence state, and the largest coast guard in the partner of the US, has a growing interest in Specifically for the Philippines, Australia has world. regional security strategy and is finalising implemented this strategy through: • The US continues to be wealthier than critical agreements for greater industry 1. Security cooperation in the areas China in GDP per capita terms, and collaboration for defence production and of intelligence, surveillance, and retains a significant lead in military and development. reconnaissance support to the Philippine soft power. It is also the world leader in • Indonesia, positioning ASEAN as the military, and enhanced training for technology and innovation, and it is home axis of the Indo-Pacific regional security the Philippine military, police, and to the world’s deepest financial markets. strategy, has strengthened its position in intelligence agencies. maritime security, calling for joint patrols 2. The launch of an International Cyber While disagreements between the US and in the disputed areas of the South China Engagement Strategy, which sets China in their global trade relationship have Sea. out Australia’s agenda across the full had some minor impact in the region, it has, spectrum of cyber affairs, including more importantly, presented opportunities AUSTRALIA’S FOREIGN POLICY STRATEGY digital trade, cyber security, cybercrime, other countries can take advantage of: A key judgment in Australia’s foreign policy international security, and internet • Japan, which has substantial economic is to step up diplomacy to help shape, rather governance. reach across the region, is beefing up its than shrink from these challenges, Australian 3. Technical assistance to the Department of Justice on reform bills on counter- “The international rules that support stability and prosperity terrorism legislation and the Human have been critical to security and economic development Security Act in Congress. in our region, so it makes sense for us to stand together to Summary by promote and protect them, and to join with others in doing Mary Elizabeth A. Bautista so.” MBC Programs and Projects Officer Photos and Layout by Amb. Steven Robinson Clinton A. Balbontin MBC FORUM 5 - 2019 Innovation and Execution Culture

CHITOPresident, Lilly International/SVP ZULUETAEli Lilly and Co. 23 May 2019 | Makati Shangri-La, Makati City

For more photos, visit: bit.ly/GMMZuluetaPhotos What’s needed for innovation Strong culture of execution • Focus, focus, focus: Lilly has decided to focus on diabetes, • Robust dialogue on facts and assumptions. Good cancer, and mental health (such as Prozac for depression execution starts by encouraging people to speak up. and medicines for Alzheimers). It’s focused on higher- • Drive for excellence. Tolerate failure, but don’t accept value (higher-price) segments. It has sold its cosmetics mediocrity and incompetence. (Elizabeth Arden) and animal health businesses. R&D • Rigorous discipline, high level of accountability, decisive accounts for 25% of Lilly’s revenue and 20% of the leadership. company’s 35,000 employees. • “Kill fast”: It takes 12 years and over $2 billion to Transition to a new culture starts at the very top conduct the 10,000 tests needed to produce a new The leadership team needs “fire in the belly,” the desire to treatment. Make bets early, killing some projects and win, the desire to create the right culture and team. There is investing “disproportionately” in predicted winners. always resistance. Often the resistance comes from the top. • Technology: Don’t buy technology that just adds to your systems; get technology that supports a strategy. The price of health • Capture best practices: Institutionalize the finding and In recognition of big differences in income around the world, replication of these along the value chain. pharma companies sell their products at different prices in • Right people: Leaders should answer two questions various regions. But Lilly strives to communicate its business about their team: If the position was open today, would model — especially the R&D spending and many failures you still put the same person in that role? If that person needed to produce a treatment — to justify the intellectual resigned today, would you try to keep him/her? property requirements for the company to invest • Environment: (1) Tolerance for failure, (2) Willingness to or reinvest in innovative medicines. Summary by experiment, (3) Safe to speak, and (4) Highly collaborative. Anthony Patrick DP. Chua MBC Senior Programs and Projects Manager

Photos and Layout by Clinton A. Balbontin MBC FORUM 6 - 2019 Clark: Building a Metropolis from Scratch VINCE DIZON President and CEO, Bases Conversion and Development Authority 24 June 2019 | Hotel Fairmont Makati, Makati City THE GOAL The Philippines’ first smart, green, and resilient metropolis that will serve as a catalyst for national growth away from the congestion and pollution elsewhere. HIGHLIGHTED PROJECTS 1. New Clark City (NCC): 9,450-hectare area in Capas, Tarlac. Master plan by Singapore’s Surbana Jurong. To be developed via Public- Private Partnership (PPP) projects • Targets by 2020: a. National Government Administrative Center (NGAC): 250-hectare project of Malaysia’s Alloy MTD. Initial government targets include satellite For more photos, visit: bit.ly/MBCAGM19Photos offices and business continuity facilities Traffic surged from 2016: for government agencies. Primary » Domestic passengers: Up 48 times to knowledge, skills, and resources. If done site of 2019 Southeast Asian Games, 2.54 million per year. well, the projects can serve as models for with swimming, track and field, and » International passengers: Up by 72% to future PPP projects in the country. residential facilities nearing completion. 1.55 million per year. • The BCDA welcomes unsolicited PPP b. Mixed-Use Industrial Development: » Domestic flights: Up 88 times to 538 proposals from the private sector, to flesh 288-hectare project of Filinvest. flights per week. out the Clark master plan. Groundbreaking was in May 2019. » International flights: Up 105% to 246 • Clark’s regulatory regime is governed by c. Mixed-Use Industrial Park: 500-hectare flights per week. BCDA and Clark Development Corp. (CDC) project of China Gezhouba Group • New terminal will connect to Clark-Manila rules. To provide transparency and EODB Company Limited. Phase 1 will be Railway, jointly funded by the Asian to locators and potential investors, all industrial and start construction in 2020. Development Bank and Japan. 1 processes are online, files are digitized, and 2. The Clark International Airport: Expansion red tape is being cut. The business one-stop to be completed in 2020 will increase DOING BUSINESS IN CLARK shop will be moved closer to the airport. runways from 1 to 2 and passenger capacity • Successful public-private partnership • To provide talent, BCDA wants top schools from 2 million per year to 8 million. Will (PPP) projects are necessary to execute - both public and private - to come to address shortage of runways in Luzon and and sustain the NCC master plan. Clark Clark, saying the physical environment is drive central and northern Luzon growth. is bringing in both foreign and domestic conducive to learning. • Investors may be hindered by lease-only “Everyone wants to move to the big city. Good money, good land. BCDA is working to amend Clark’s jobs, a place to be productive. But the paradox is that cities charter to extend leases from 25 years and/ don’t work for people, even though they’re full of them. It’s a or allow sales. pressure cooker of congestion, pollution and rent you can’t afford...Cities must be built for people... Clark is envisioned to Summary by have the vibrancy of a city without the pressures of city life.” Miguel Luis C. Rivera MBC Programs and Projects Associate

Vince Dizon Photos and Layout by Clinton A. Balbontin 1 In addition, Dennis Uy’s Udenna Corp. has a 177-hectare project outside New Clark but within the former base. MBC FORUM 7 - 2019 Business Groups Meet DOF on Agenda for New Congress 1 July 2019 | DOF Building, City Makati Business Club’s new chairman for tax policy, Cirilo “Vic” Noel, led an MBC and Management Association of the Philippines courtesy call with Finance Usec. Karl Chua and Usec. Antonette Tionko on July 1, 2019. They discussed the Department of Finance’s five (5) legislative priorities, which are all part of its Comprehensive Tax Reform Program.

1. Package 1B the motor vehicle user charge, lifting of bank secrecy and automatic exchange of information: DOF will push this combination again. While general

amnesty passed previous Congress, Joining Atty. Noel were MBC Board Members Rizalina Mantaring (Sunlife Chairwoman, MAP President) and Lito Tayag (Accenture President Duterte vetoed it (except estate Country Managing Director and IBPAP Chairman). Also representing MAP were Atty. Dick Du-Baladad (Tax Committee Chair) and tax amnesty) because Congress didn’t pass Atty. Perry Pe (Romulo Law). They met DOF USec. Karl Chua and USec. Antonette Tionko. relaxation of bank secrecy. the reduced CIT (instead of GIE) valuation time-bound and with clear 2. Package 2 aims to lower the CIT and covers all other national and local appeal process. modernize the fiscal incentives system: taxes and fees. (This is except 5. Package 4 rationalizes capital income The DOF plans to refile substantially the real property tax, which the taxation: Harmonize these taxes, ideally same TRAIN-2/TRABAHO bill passed by officials explained is reserved for one rate per type of financial instrument, the House but not the Senate in the 17th local governments in the Local to reduce “arbitrage.” Participants said Congress. This includes: Government Code.) some products, such as insurance, are a. Gradual CIT rate reduction to 20%. 3. Package 2 Plus increase in alcohol excise usually subject to less or no tax because b. For companies with incentives, a tax: DOF plans to increase the excise they come with guaranteed pay-outs. sunset provision of 2-5 years. After tax for alcoholic beverages to fund the sunset, companies may apply for Universal Healthcare Act. Other Matters: On the Ease of Doing the new set of incentives under 4. Package 3 seeks reforms in the property Business related to LGU Fees the proposed Strategic Investment valuation system: DOF proposes to adopt DOF and DILG recently signed a Memorandum Priorities Plan (SIPP). The participants international standards and rationalize of Agreement to ensure uniform procedure in stressed that some sectors such as the process of valuation. setting reasonable fees and charges by the manufacturing may need longer a. Starting this year, DOF has mandated LGUs. This may curtail how some LGUs create sunset periods. the Bureau of Internal Revenue and new fees (i.e., “environmental fee”) to skirt the c. New Incentives (for new companies, LGUs to follow the international One-Stop-Shop system that covers LGU taxes. or companies re-applying): valuation standards which covers For a copy, see attached file: “DILF-DOF Joint • Reduced CIT (10 percentage all types of properties. USec. Tionko Memorandum Circular: Guidelines for the points less than regular CIT, said that if not followed, taxpayers Review, Adjustment, Setting and/or Adoption instead of the current 5 percent can appeal with the Central Board of Reasonable Regulatory Fees and Charges of of Gross Income Earned). This of Assessment Appeals (CBBA). LGUs.” is for 5 years, with possible 2 For a copy, see attached file: “DOF years extension. DOF said they Department Order No. 037-2018: Summary by are “reviewing” whether they can Prescribing the Philippine Valuation Ma. Roxanne V. Lu retain GIE but at higher rate. Standards (PVS) 2nd Edition, 2018” MBC Programs and Projects Director • One-Stop-Shop system in which b. The group suggested making land Layout by Clinton A. Balbontin MBC FORUM 8 - 2019 Cities-Business Roundtable Discussion with

MayorVICO of Pasig City SOTTO 26 June 2019 | Accenture Office, Robinsons Cybergate Tower 1, City

For more photos, visit: bit.ly/MBCVicoSotto On June 26, MBC held a roundtable with » While a ferry system has 2. Single payment for all permits and licenses, Pasig City Mayor-Elect Vico Sotto, initiating already been implemented, it is not a similar to that of Malaysia’s, and multi-year its cities-business partnership project. The preferred option for the public because permits for business. project will be focused on key Central Business of water pollution and the unreliability 3. The Mayor said he would suspend the odd- Districts (CBDs), recognizing their central role of the ferries. even scheme, which was implemented in investment, innovation, job creation, and 4. Health: without a study. education. The objective is to facilitate projects » While there is available infrastructure » To improve transport options within that will improve competitiveness, ease of for public hospitals and health centers, the business district, he also sought doing business, and infrastructure while raising there are not enough doctors, nurses, the assistance of business, asking if the bar of responsible business. and medicine in these facilities. companies present at the meeting had 5. Education: free space which the city could use as CRITICAL ISSUES » Php300 million in financial assistance multi-modal transport terminals. 1. Red Tape: can be granted to constituents for 4. The Mayor said he will have data-driven » Numerous permits and lengthy education; but Pasig falls behind in policy-making, but a lot of data is not processes created many opportunities terms of infrastructure and quality of organized or non-existent. to “extract value” from businessmen and education (including services, teachers). 5. The Mayor will set up and get reports from hinder investment; 6. Freedom of Information: an anti-corruption hotline. » According to Bantay.ph’s Anti-Red Tape » The FOI ordinance which Mayor Sotto 6. The Mayor will examine the suspension of Compliance Monitoring Data released championed as a first-term councilor has idle land tax and why it is under the mayor’s in 2015, Pasig ranked last (out of all 16 still not been implemented; office instead of the city assessor. cities in ) in client feedback » Pasig City was the first to legislate a 7. Mayor Sotto plans to steer the health policy and transparency. local version of FOI in October 2018, of Pasig City towards preventive care. In the 2. Transportation: mandating the right to access, examine, meantime, the priority is to fill in the gaps » Traffic congestion particularly on Julia and copy public records, extended to all for health professionals, personnel, and Vargas and Emerald Avenues; citizens of Pasig. medicine. » Limited public transport options within » San Miguel Foundation has offered to the business district. No LRT /MRT lines PROPOSALS/PLANS put up food banks near public markets, passing through Pasig; 1. Automation to minimize human contact and to improve access to healthy food, » Pasig’s own odd-even scheme; the opportunity for corruption. especially for the poor and marginalized. » “Trial and error” traffic management » The Mayor said his model would be schemes by traffic enforcers. Valenzuela, which has automated 3. Environment: kiosks where business registration requirements can be dropped off. Summary by » With Pasig City flanked by the Mary Elizabeth A. Bautista and Pasig rivers, there is a need for flood » The Mayor said there has been a plan MBC Programs and Projects Officer

prevention plans (in coordination with for a one-stop-shop for permits, but Photos and Layout by business and other LGUs); implementation has been held up. Clinton A. Balbontin MBC FORUM 9 - 2019 Cities-Business Roundtable Discussion with

MayorISKO of the City of Manila MORENO 24 July 2019 | Magsaysay Training Center, Times Plaza, Manila

For more photos, visit: bit.ly/MBCRTDIskoMoreno On July 24, MBC held a special roundtable with hospitals and health centers, but not enough » The rehabilitation program will Manila City Mayor Isko Moreno, the second meeting doctors, nurses, and medicine. be based on a UST College of Architecture of the MBC-led cities-business partnership project. 5. Public Safety: graduate’s thesis donated to the Mayor’s By enabling dialogue between the city government » The Metro Manila Disaster Risk Reduction office; and key players in business, the initiative’s and Management Council informed the » The Mayor is proposing a buy-back program objective is to organize public-private projects Mayor’s Office that the city is not trained or for waste collection in partnership with in competitiveness, ease-of-doing business, and equipped for disasters/natural calamities. the private sector, for which business infrastructure, while raising the bar for responsible establishments can offer vouchers in business. PROPOSALS/PLANS exchange for recycled materials; 1. Even before President Duterte’s order to Mayors » Metro Pacific has offered to pick up Manila CRITICAL ISSUES (to cut down business permit registration to 3 garbage and process in their waste-to- 1. Ease of Doing Business: days) in the July 22 State of the Nation Address, energy facility in . Mayor inquired » To secure a permit, it takes an average of 11 Mayor Moreno had reduced business permit about discounted terms. steps, 8 windows, and 5-10 days. According registration from 11 steps to 3 steps, 8 windows 4. The Mayor sought the support of the private to the EODB Act, these transactions should to 1 window, and 5-10 days to 1 day. sector for the redevelopment of Manila as a only take 3 days; » Landbank, the city government’s depositor thriving business district: » There are 300,000 Real Property Units and bank, offered to make an online platform » Businesses located in Manila were almost 54,000 registered businesses that for tax and license payments, a feature they encouraged to hire 70% of their workers the city hall has to cater to (registrations and already have for LTO-related transactions. from Manila, and to provide employment renewals) every year; » The Mayor will look into the adoption of opportunities to PWDs and senior citizens. » To limit corruption in these transactions, there technology to help improve efficiency and » The Mayor also encouraged developers is also a need to limit human interaction. cut opportunities for corruption. and businessmen to purchase and develop 2. Healthcare: 2. To expand the current capacity of the 6 hospitals properties along Escolta and Dasmarinas, » Ospital ng Maynila, the main healthcare and 16 healthcare centers in Manila, Ospital ng and create the next Manila skyline. facility for the city, needs improvement in its Maynila will be developed into what the Mayor ◊ The City Council can look into services and facilities. says will be the next Makati Medical Center. approving a tax incentive program for 3. Manila City Rehabilitation: » The city government is considering those who are interested to develop » Parallel with ongoing clean-up efforts, there purchasing additional health services in areas adjacent to heritage sites; the is also the issue of waste management; the private hospitals to accommodate over development of these areas can raise city’s current policy only directs garbage to 30,000 constituents in need of medical the price of properties and encourage be collected and taken out of city premises, attention. more businesses to thrive. under the management of MMDA; » To address current gaps, Manila Doctors » The Mayor cited the local government as Hospital offered to extend professional the number one violator of environmental services and extra rotations of doctors and laws, citing the operations of the Ospital administrative managers who can help maximize Ospital ng Maynila’s resources. Summary by ng Maynila, Manila Zoo, and the Vitas Mary Elizabeth A. Bautista Slaughterhouse as examples. 3. Manila will continue its rehabilitation and clean- MBC Programs and Projects Officer up operations: 4. Health: Photos and Layout by The target is to develop 1,600 hectares of Clinton A. Balbontin » There is available infrastructure for public » green, open spaces; MBC FORUM 10 - 2019 Cities-Business Roundtable Discussion with

MayorABBY of the City of Makati BINAY 15 August 2019 | Ayala Boardroom, Ayala Tower One, Makati City

For more photos, visit: http://bit.ly/MBCAbbyBinayPhotos On August 15, MBC held a special roundtable » The local government has initiated the a 56-meter ladder fire truck to reach with Makati City Mayor Abby Binay, the third Makatizen App and the Makatizen Card, higher floors of buildings during meeting of the MBC-led cities-business and has established a PPP contract for emergencies. The high-tech fire truck is partnership project. This is an MBC initiative the setup of fiber optics in the entire also able to detect a building’s layout to that aims to open a high-level dialogue between city to interconnect with public health better determine fire exits. city government leaders and key players in centers, hospitals, and even its public » Instead of training barangay officials, the business community. The objective of this CCTV cameras. Mayor Binay will conduct disaster meeting is to explore public-private projects » Mayor Binay shared plans to upgrade preparedness training for residents. (PPP) to improve LGU competitiveness, ease-of- the infrastructure and technology of » An additional 1,000 people were hired doing-business, and infrastructure. Makati City’s command center, to build a into the Makati police force to be solar-powered fire station, and to use its deployed throughout the city, ensuring CRITICAL ISSUES Geographic Information System (GIS) in 24/7 safety. 1. Ease of Doing Business: tax mapping to improve tax collections. 4. The city plans to upskill its students and » Makati City has established a one-stop- » The city is adopting health innovations digitalize its educational system. shop that streamlines applications and in partnership with private hospitals. » Mayor Binay will partner with private renewals for all businesses, surpassing It procured a digital mammogram, a companies to enhance students’ their own 15-minute target. The adoption portable x-ray, and improved its eye knowledge on artificial intelligence, of new technology has assisted the city centers. It introduced a free anti-rabies shifting the educational curriculum in promoting ease of doing business, vaccination and microchipping program, towards digital technology. but the requirement to submit original the first in Asia, to ensure the city is ◊ Angkas offered to board students as documents and other regulations limit rabies-free. part-time workers, and train them for the city’s ability to completely innovate 2. The local government plans to finish the free to become digital entrepreneurs. the system. Makati Intra-City Subway, the first PPP 5. The local government aims to strengthen 2. Traffic Congestion and the Lack of Parking locally initiated subway, by 2025 to ease the city’s human capital. Spaces: traffic congestion. » Mayor Binay expressed interest in » Residents in the city have complained » The subway will create 10,000 jobs, investing and participating in business about road congestion due to the lack address traffic issues within the city incubators to provide training and of parking facilities, particularly in and its peripheries, and interconnect development for start-ups. Poblacion area. the city’s government facilities for the 3. Bridging Technology and Governance: public’s convenience. » The local government is concerned with the lack of proper training on new » Mayor Binay will construct the subway technology among its employees. underground to avoid disruption, and establish commercial areas above it for businesses. Summary by PROPOSALS/PLANS 3. Mayor Binay intends to boost the city’s Mary Elizabeth A. Bautista 1. Makati City aims to be a smart city by safety and disaster preparedness. MBC Programs and Projects Officer 2025, and improve public services through » The local government has purchased Photos and Layout by innovation. Clinton A. Balbontin MBC FORUM 11 - 2019 Law and Sovereignty ANTONIO CARPIO 18 October 2019 | New World Hotel, Makati City

For more photos, visit: http://bit.ly/33Yy1q3 Former Senior Associate Justice Antonio T. Carpio was key to winning Integrity Board and the Corruption Prevention and Investigation the South China Sea Arbitration case in 2016. After serving the Supreme Office. Court for 18 years, newly-retired Justice Carpio pledges to devote most of his time defending the country’s sovereign rights in the West Philippine Judicial Branch Shortages Sea. » The present judge-to-population ratio in PH is 26 judges per million. This is low compared to the average for developed (50) and He was honoree at a testimonial lunch given by MBC, ECOP, FINEX, JRI, developing (35 to 40) countries. and MAP. » According to Justice Carpio, PH should have 5,500 judges given that there are 110 M Filipinos to reach the ratio of 50 judges per million. On 25 October 2019, Carpio retired with no pending cases. He said Currently, the country only has 2,859 judge and justice positions in all there is no magic formula to having zero backlogs, just “hard work and a court levels. mindset for excellence.” » The severe lack of prosecutors and Public Attorney’s Office (PAO) lawyers need to be addressed by the Executive Department because Integrity and Efficiency in the Courts criminal cases are major contributors to the backlog in the first and » Choose judges well through the Judicial and Bar Council. second level courts. » Pay judges well. PH government salaries and retirement benefits of judges and justices are one of the best among judiciaries in the world. Business and the South China Sea » Train and motivate judges well through the Philippine » When asked about the business community’s role in his South China Judicial Academy. Sea advocacy, Justice Carpio said that businesses should urge the PH » Supervise judges well through the Office of Court Administrator. government to convene the working group on exploring Reed Bank. » Monitor the integrity and honesty of judges through the Judicial » The Malampaya natural gas field supplies 40% of the energy requirement in Luzon, and it will not be commercially viable anymore “It is not the title that confers prominence on a in four years (estimates vary and change). Without a replacement, person: it is his consistent excellence. No matter this will lead to rotating blackouts for 12-14 hours a day, affecting business operations, among others. the lack of formal title, in our minds Justice » Natural gas from Reed Bank, located in the South China Sea, could Carpio is chief among the justices in terms of replace Malampaya. The government now has an MOU with China his consistent adherence to the law and his for the Reed Bank exploration. According to Carpio, the Chinese commitment to always uphold the rule of law. will come in through a service contractor that acknowledges PH We also honor Justice Carpio for consistently sovereign rights over Reed Bank. Hence, China would implicitly reminding us that our national dignity should admit that the gas in the areas covered by the MOU is within PH not be traded for a few bridges and roads. And territory. (Some experts say there is vagueness in the contract as proud Filipinos, we should vigilantly protect that China or others may interpret differently.) our territory and our seas.” Summary by Ma. Roxanne V. Lu Ramon del Rosario, Jr. MBC Programs and Projects Director MBC Trustee and Former Chairman Photos and Layout by Clinton A. Balbontin MBC FORUM 12 - 2019 Increasing Corporate R&D to Boost Philippine Innovation, Growth, and Competitiveness

SilverDR. Professor MICHAEL of Biology and former Dean ofPURUGGANAN Science, New York University 12 November 2019 | Discovery Primea, Makati City

For more photos, visit: http://bit.ly/MBCPuruggananRTD CREATING RESEARCH INSTITUTIONS Philippine companies need to increase research and development to “The value of a Basic Research is that it boost theirs and the country’s innovation, growth, and competitiveness. develops the expertise level in a particular MBC held a roundtable discussion with Dr. Michael Purugganan, area, and when the time comes you have just-retired NYU dean of science to discuss how business and other a deep bench to help the country explore stakeholders can accelerate this. Here is a summary of his discussion with CEOs, RTD heads, and science deans.1 The RTD was co-sponsored the topic further. Basic research need not by USAID-STRIDE.2 be divorced from practical application.” CHALLENGES Dr. Michael Purugganan » Lack of basic research in universities or companies in large part because basic research is too expensive for Philippine schools and businesses. PROPOSED SOLUTIONS 1. R&D champions in companies and business community. “Lack of a culture is a non-starter. What’s needed is leadership,” according to one participant. Unilab Foundation has been reaching out to and meeting other companies in part for them to launch a STEM Leadership Alliance. 2. Link Philippine universities with global research institutions. This may help local universities develop expertise and strengthen research culture. The British Embassy’s Newton Agham program supports collaborations between Philippine and British universities, as well as brings Philippine scientists to the UK for a two-week program. 3. Work with provincial universities. They have scientists but less opportunity and are therefore enthusiastic to collaborate with business. Also, private universities, to avoid the COA rules. » Lack of scientists due to low pay, lack of research work and labs. 4. Revise grant-giving rules and procedures. One change that can be Scientists go abroad, some recruited even before they graduate. made is to award more grants based on “brilliance” of scientist rather » As a result, few scientists and companies apply for DOST and other than just areas preferred by the grant-giving agency. research grants in part due to the lack of research scientists. 5. Build a community of young and returning scientists. This gives » Few companies partner with state universities because resulting them an opportunity to present their research, and gives industry an research and patents have to be bidded out, subject to COA rules. avenue to share their problems for possible research projects. » Philippine universities are focused on teaching rather than a balance of teaching and generating knowledge. Philippine

scientists aren’t motivated to patent and commercialize their Summary by work. Ma. Roxanne V. Lu » Lack of a research culture or ecosystem MBC Programs and Projects Director Photos and Layout by 1 We invited leaders from DOST, DTI, and NEDA but they were unavailable. Clinton A. Balbontin 2 USAID’s Science, Technology, Research, and Innovation for Development (STRIDE) project MBC FORUM 13 - 2019 Education Reimagined

President,ASTRID Utah Valley University TUMINEZ 3 December 2019 | Makati Shangri-La, Makati City

For more photos, visit: http://bit.ly/MBCTuminezPhotos Dr. Astrid S. Tuminez is the first female President of the Utah Valley University (UVU). She leads UVU in providing inclusive education Let us not silo knowledge anymore. Let us through its open admissions policy and the dual mission of higher use our resources so students are exposed education, which combines community college and university at an early age to this mingling of knowledge education under one roof, giving community college students an because the 21st Century no longer respects easier path to a university education if desired, and offering all silos. It’s all the more varied you are, the students richer learning experience. more multidisciplinary your brain is, the better you’re going to be in life and in Use higher education to include, not to exclude careers. UVU has programs for first-generation college students that can Dr. Astrid S. Tuminez be adapted for Filipinos with a similar background and/or need for further preparation. These include foundational coursework, tutoring services from successful students, and a whole-person Partner for student success approach in advising beyond academics. UVU has a partnership with school districts called the K-16 Alliance that may have insights for Philippine efforts to dovetail its UVU also has adaptable programs for working students. This relatively new K-12 system with higher education. These include includes counting skill-specific certifications from employers in helping set goals in primary and secondary education, such as students’ credentials. They can also enroll in one course at a time, identifying the reading level per year, to ensure that students are allowing them to stay enrolled even if their work prevents them prepared for college. from taking more loads in school. UVU partnered with Silicon Slopes -- Utah’s Silicon Valley -- to UVU also helps mothers return to college via lactation pods and launch a new MBA degree that focuses on technology management. childcare centers. Lectures are held in company offices so employees can easily take their MBA. Half of the lecturers are industry practitioners Break down knowledge silos who promote mentoring and link students directly to potential The richer learning environment of UVU’s dual education model employers. may be replicated in Philippine college and tech-voc institutions. For example, UVU offers 44 certificate programs including cabinetry and architectural woodwork, 65 associate degrees including dance, Summary by along with 91 bachelors, 11 masters, and 30 online degrees. Dr. Ma. Nova R. Nguyen MBC Programs and Projects Officer Tuminez says these encourage students to explore the “microcosm Photos and Layout by of the world of knowledge.” Clinton A. Balbontin