AmCham Business Journal - July 2016

The Plaque on the historic Round Table

Mission Statement The Chamber exists to serve the interests of Philippine and American businesses through the participation of members in promoting their long-term objectives, while contributing to the civic and economic development of the Philippines.

Volume XCI, No. 7

JULY 2016

CONTENTS 06 Editorial

President Duterte Faces His Destiny Guest Editor, Manuel R. Guillermo

08 Commentary

A Clear, Strong Message from the New President Submitted by, PSA

26 U.S. Embassy Update 3

Consular Corner 28 Feature

3 Ways to Save Nemo & Dory By, Gregg Yan

31 Tourism

Looking Back

Destination Branding: Committing to a Consistent “It’s More Fun in the Philippines” Image

By, Robert Blume

By, Alyssa Marie F. Dispo

12

33

10 A Trip to Pagsanjan Falls (1920)

AmCham Communications Update

Rev up: Improving AmCham Philippines’ Communications By, Kristel Gonzales

16 AmCham Publications Update

AMCHAM Journal Guidelines for Submissions 20

Company News

The People At Work Releases its 2016 Philippines Talent Report 34 Company News 2

Celebration Time!! 15 Years of Viventis Search Asia 36 Filipino-American Memorial Endowment News

Committee Report

American Community in Manila Honors US Armny “Philippine Scouts”

“Building Trust and Confidence in E-Commerce”

By, Marcelle Villegas

21

Business of Business

Philippine E-Commerce Roadmap

U.S. Embassy Update 1

U.S. Embassy, Philippine Law Enforcement, and Local Industry Team Up for Fight Against Smuggling 22 U.S. Embassy Update 2

Peace Corps and IBM Collaborate To Benefit Los Baños Science Community

38 Business and Career Outlook in the New Administration By, Ernie Cecilia, DPM

40 •Birthdays: August - September •Index to Advertisers •Social Media Links

Editor-in-Chief Ebb Hinchliffe Managing Editor Leslie Ann Murray Layout Editor Bea Martinez Advertising Head Chet Guevara Photographer Roy I. Fuigado Chairman Manuel R. Guillermo Co-Chairman Ernie Cecilia Members Atty. Emmanuel T. Santos, Katherine D. Mayo Published by The American Chamber of Commerce of the Philippines, Inc. Member Publisher Association of the Philippines, Inc. All rights reserved. No part of this publication may be reproduced in any form without the permission from The American Chamber of Commerce of the Philippines, Inc. If you want to receive a copy of the Business Journal or wish to cancel a subscription, please e-mail us at publication@amchamphilippines.com. Publication Registration No.: ISSN-0116-452X

AMCHAM COMMITTEES Agribusiness

Alyssa Dispo

DANIEL E. CHALMERS JOSE VICTOR EMMANUEL DE DIOS

Alyssa Dispo Migs Calaguian

Environment & Urban Development

JUN PALAFOX/JAMES DONOVAN

Migs Calaguian

Extractive Industries

MICHAEL HUEHNE/DAIZO KODA

Yves Aguilos

HENRY T. PELAEZ JULES RIEGO

Migs Calaguian

DONALD R. FELBAUM

Trixia Bravo

ERNIE O. CECILIA GRACE SORONGON

Alyssa Dispo

DONALD R. FELBAUM FRANK HOLZ

Trixia Bravo

Financial Services/Taxes & Tariff

First AmCham in Asia Healthcare & Wellness & Pharmaceutical

OFFICERS AND DIRECTORS 2016 H.E. PHILIP GOLDBERG U.S. Ambassador to the Philippines Honorary Chairman

Human Capital & Resources

Information & Communications Technology (ICT) • Business Process Outsourcing • Creative Industries Infrastructure & Logistics

RICK SANTOS President FRANK THIEL 1st Vice President

Intellectual Property Rights

Legislative Manufacturing Professional Women of AmCham

MARIFE ZAMORA 2nd Vice President HENRY PELAEZ Treasurer ROBERTO BATUNGBACAL DONALD R. FELBAUM MICHAEL HUEHNE RICHARD J. McGONEGAL PETER J. MORRIS VARINIA ELERO-TINGA SHANKAR VISWANATHAN Directors

Security Disaster Resource Group / OSAC Tourism & Hospitality Trade & Investment

EBB HINCHLIFFE Executive Director ATTY. AILEEN TOLOSA-LERMA Corporate Secretary DEMETRIO P. SALIPSIP, JR. Chairman, AmCham Retirement Fund

AMCHAM _ July _ 4

Trixia Bravo Trixia Bravo BRIAN LANE JAIME FAUSTINO

Migs Calaguian

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

Trixia Bravo

JOHN D. FORBES

Yves Aguilos

ROBERTO BATUNGBACAL

Migs Calaguian

Atty. MELANIE LAGERA VARINIA ELERO-TINGA

Pauline Santos

SIMOUN UNG/PETE TROILO

Trixia Bravo

ROBERT BLUME/FARID SCHOUCAIR

Alyssa Dispo

MARIO BISCOCHO

Yves Aguilos

ACTIVITIES/ADVOCACY/AFFILIATE AmCham Foundation AmDesk at the BOI Business Leadership Program (BLP) Filipino-American Memorial Endowment (FAME) The Arangkada Philippines Project (TAPP)

GEORGE M. DRYSDALE ROBERT M. SEARS Directors, Ex-Officio

COORDINATORS

PHILIP G. SOLIVEN VARINIA ELERO-TINGA

Energy & Power & Energy Efficiency

The American Chamber of Commerce of the Philippines, Inc.

CHAIRMEN

Washington Relations/APCAC

EDWIN FEIST/JUN SALIPSIP EBB HINCHLIFFE

Yves Aguilos

JUN SALIPSIP/DAVID CALDWELL

Pinky Jamili

Lt. Col. ART MATIBAG LESLIE ANN MURRAY

Trixia Bravo

JOHN D. FORBES

Yves Aguilos

GEORGE DRYSDALE

Divina Combes

INTERNAL Membership Welcome Breakfast• Networking• Kapihan• Provincial Chapters Central Luzon• Visayas• Mindanao•

ROLAND DELA CRUZ/ CHRISTINE STEVENS

Pauline Santos

EBB HINCHLIFFE/ LESLIE ANN MURRAY

Pauline Santos

EBB HINCHLIFFE

Pauline Santos Jaysen Venzon Brenda Lisen Annie Quitay

Young Professionals

MORGAN MCGILVRAY

Yves Aguilos

Publications

MANUEL GUILLERMO

Leslie Murray Bea Martinez

THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. (Founded 1902 - Incorporated 1920) 2nd Floor, Corinthian Plaza, Paseo de Roxas, Legaspi Village, Makati City 1229 Tels.: (632) 818-7911 to 13  Fax: (632) 811-3081 E-mail: amcham@amchamphilippines.com Website: http://www.amchamphilippines.com Rick Santos, President Ebb Hinchliffe, Executive Director

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

THE AMERICAN CHAMBER OF COMMERCE OF THE PHILIPPINES, INC. Central Luzon Chapter-2015)

Lower Ground Floor Waterfront Cebu City Hotel Cebu City 6000 Tel.: (032) 232-2373  Fax: (032) 231-0174 E-mail: cebuamcham@yahoo.com

Building 7294, C.M. Recto Avenue Clark Freeport Zone, 2023 Pampanga Telefax: (632) 811-3081; Mobile: 0917-5463442 E-mail: jaysenvenzon@amchamphilippines.com

Jeff Minnick, President Julie Ann Ceniza, Secretary

Ebb Hinchliffe, Executive Director Jaysen S. Venzon, Coordinator

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

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

Leonard Benjamin Development Center 4554 Casino cor. Olivarez Streets Palanan, Makati City Tels.: (632) 834-0184; 551-8060  Tel/Fax: (632) 834-1192 E-mail: amchamfdn@amchamphilippines.com Website: www.amchamfoundation.com

2/F, Davao City Chamber Building J.P. Laurel Avenue, Bajada Davao City, 8000 Telefax: (6382) 221-6656 E-mail: amchamdvo@gmail.com

Edwin D. Feist, President Demetrio P. Salipsip, Jr., Executive Director

Philip Dizon, President Annie Quitay, Secretary

AMERICAN DESK AT THE BOARD OF INVESTMENTS (Established 1992)

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

385 Sen. Gil Puyat Avenue, Makati City Tels.: (632) 895-8851; 895-3918  Fax: (632) 896-2315 E-mails: yves@amchamphilippines.com; amdesk@amchamphilippines.com

c/o The American Chamber of Commerce of the Philippines, Inc. 2/F, Corinthian Plaza, Paseo de Roxas, Legaspi Village, Makati City 1229 C.P.O. Box 2562, Makati City 1265 Tels.: (632) 818-7911 to 13  Fax: (632) 811-3081 E-mail: fame@amchamphilippines.com Website: http://filipino-americanmemorials.org

Ebb Hinchliffe - Director, American Chamber Yves Aguilos - Government Liaison/Committee Coordinator

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

AMCHAM _ July _ 5

Editor i a l

President Duterte Faces His Destiny The ultimate combination of destiny and strategy – and a wide-ranging discernment that typically produces an inner struggle within the then yet undecided voters to eventually ride the tide of the majority – was launched on May 9, 2016, when in a lopsided result, the people of the Philippines elected the erstwhile Mayor of Davao City to become the President of the Philippines come June 30, 2016. A reluctant candidate at first, Mayor Duterte must have felt a certain inner “call” that said it was time to face his destiny, i.e., to widen the net of his “fight for the right” beyond Davao. From then on, we would witness an ingenious campaign strategy and a flawless execution not seen ever before.

The ascent of Mayor Rodrigo Roa Duterte to the Presidency of the Philippines marks a crossroad in all of the Filipinos’ lives. It transcends a mere changing of leadership.

It calls for a much-sought after, certainly much-deserved, “break” from what has long plagued the country with unfulfilled promises from previous successions in the presidency for radical change toward inclusive growth, among others. This time, from all early indications, the President has very quickly started the wheels of change moving; if quite worrisome for some for their sheer audacity.

For most, however, it seems such a show of bravado is what is needed, no less, especially to those who have become cynical about the “trapos” who had long led the land. The word “trapos” is a shortened contraption for “traditional politicians”, but also means “dirty rags” in the vernacular. President Duterte is clearly not one of such.

still quick to blurt out obscenities, his frank utterances exceeded only by an uncompromising sincerity and bias for action. His natural simple and humble ways make the elite shudder, but endears him no end to those who have long been left out through the years. With firm no-nonsense directness in his policy pronouncements, addressing at the outset errant members of the national police, he has quickly gone into action, living up to his “Punisher” persona. His absolute, even chronic, aversion is anything that has to do with the production, distribution and use of illegal drugs in all forms; and rightly so.

Most of the skeptics prior to the elections were seriously concerned that the Duterte presidency would cause a reversal in the market sentiment for continued growth.

Quickly and surely, all current indications are pointing upwards. The earlier expected jitters of the economic watchers have turned to one of cautious joy, if not utter rejoice. The formula is working: act on one’s promise to not only neutralize but cut out criminality and corruptions, then the people’s confidence in government will be restored and the foreign investors will come rushing back in. The good news: these things are happening even as we speak. The foreign community, for its part, is especially relieved when the President committed to honor all existing treaties and trade agreements in his now historic 17-minute inaugural address.

“President Duterte, however, cautions everyone, in no uncertain terms, that each of one us must be the change we want to become...”

So much has been written about the new President’s “noholds barred” methods. Widely known as the “Punisher”, a moniker he earned when he successfully transformed Davao City – by ridding it of criminals -- into a selfrespecting, fast- modernizing metropolis that boasts of a state-of-the-art quick rescue facilities, among others. He remains true to form and substance -- minces no words, AMCHAM _ July _ 6

“Change is coming” was the mantra of sorts that defined the Duterte campaign. Now we know that the man himself personifies the change the people have clamored for. President Duterte, however, cautions everyone, in no uncertain terms, that each of one us must be the change we want to become -- to borrow a gem of wisdom from Mahatma Gandhi.

_ Guest Editor Manuel R. Guillermo

Com m e nta r y

A Clear, Strong Message from the New President President Rodrigo Duterte sent a cautiously reassuring message to investors, the business community and international observers during his carefully scripted, relatively low key inauguration last week.

The inauguration was simple by design, with a limited number of invited guests, carabao cheese and durian candy on the menu, and a brief inaugural address.

Mr. Duterte, who has had a contentious relationship with journalists, allowed only government media to cover the event directly. Independent reporters viewed the ceremony via a live video feed.

Rodrigo Duterte (Photo by Edwin Tuyay) Photo Source: www.primer.com.ph

With few exceptions, the event went off mostly without a hitch. The biggest gaffe of the day was when newly appointed Foreign Affairs Secretary Perfecto Yasay spoke frankly – unaware that a live microphone was nearby – about his struggles to find a strategy to respond to China in the South China Sea after the United Nations arbitration ruling that is coming on July 12. The incident indicated that this critical issue is still a matter of debate within the new administration.

As is always the case in the Philippines, the inaugural ceremony was shrouded in symbolism and what many observers found to be hidden messages. Mr. Duterte, in his address, made a point of first thanking former Philippine President Fidel Ramos. This triggered speculation that Mr. Ramos was a hidden hand behind the election campaign. Others read messages into hand gestures, glances and wardrobe choices.

AMCHAM _ July _ 8

“My administration is not anti-business.”

On a more substantive level, Mr. Duterte outlined very clear themes for his presidency. Though not all of the initiatives are welcomed by all sectors of society, many in the business community appreciated the clarity of outlining the key themes and the absence of fiery rhetoric.

Mr. Duterte is clearly standing firm on his pledge to wage an aggressive campaign against crime and corruption.

He warned: “The ride will be rough.” But he also acknowledged twice that some sectors of society do not approve of his methods and he also twice affirmed that he would adhere to the law in waging his campaign. These are assurances he was not making during the heat of the campaign and they are welcome messages to many who have looked on his administration with concern.

A central theme of the speech was removing the bureaucracy within government services. This was a common theme of his campaign: helping elderly social security recipients kept from their benefits by lack of a document, or the family of soldiers or police officers denied government assistance because they lacked a signature. This is a populist message but it is also directly in line with one of the top grievances of the business community: cumbersome government bureaucracy. What applies to the elderly widower should also apply to the legally incorporated corporation.

The clearest signal to the business community came in the form of a quote attributed to US President Abraham Lincoln: “You cannot strengthen the weak by weakening the strong; you cannot help the poor by discouraging the rich; you cannot help the wage earner by pulling down the wage payer; you cannot further the brotherhood by inciting class hatred among men.” The message was clear: My administration is not anti-business.

Another powerful message to the business community

was a direct order for government officials to stop “changing and bending the rules government contracts, transactions and projects already approved and awaiting implementation.” This broad tendency to disrespect contracts and toss them into the dysfunctional justice system for resolution is a chronic problem for investors in the Philippines. “Changing the rules when the game is ongoing is wrong,” Mr. Duterte pronounced.

Though his message was clarified, and softened for a broader audience, Mr. Duterte made clear in several instances that he will bring his characteristic toughness to the presidency. “You mind your work and I will mind mine,” he said. Much has been made of this comment but if it is taken at its simplest meaning it is a welcome sentiment: Let’s stop the grinding dysfunction of nonstop politicking and get to work doing the business of governing.

Mr. Duterte appears to be making the transition from campaign rhetoric and populism to the business of governing, and he appears to be slowly embracing the clear messaging that the presidency requires. There remain many uncertainties among investors and the business community about the impact of Mr. Duterte’s policies. These uncertainties remain in place after the inaugural address, but his address was a clear sign that he recognizes the value of the business community for his administration to be a success.

In the months ahead, it will become clearer whether the reassuring messages are put into practice: crime and corruption are decreased, bureaucracy is eased and a thriving economy is not only maintained but also shared with more people in society.

Printed with kind permission on Pacific Strategies and Assessments. For any comments or questions please email to: business.intelligence@psagroup.com AMCHAM _ July _ 9

Lo ok i n g B ac k

A Trip to Pagsanjan Falls (1920) _ By Robert Blume, Bob’s Blog Source American Historical Collection (AHC) @ Ateneo University

American Government in the Philippines focused on infrastructure, improving and constructing roadways, railways and seaports. With this came the introduction of more cars, modern buses and trains. Curiosity in exploring the islands wealth of natural beauty grew. The historic town of Pagsanjan and its nearby wild river and falls became a popular weekend destination. A 1920 yearbook article gives an enticing, descriptive account of what visitors could expect at “one of the prettiest and wildest spots in the Philippines”. To this day a banca boat adventure to the main waterfall and return, continues to attract. But nearby urban development has made Pagsanjan considerably less exotic.

—BB One of the prettiest and wildest spots in the Philippine Island lies within easy reach of Manila. Pagsanjan, in itself worth seeing for its beautiful residences and the surrounding forests, can be reached in three and one-half hours by train through a lovely coconut country. There are good hotel accommodations with clean beds and food.

Everything is done for the tourist; arrangements are made for boats and guides, and lunches are provided. Splendid roads for automobiles lead here also, and parties from Manila are constantly spending weekends in this lovely provincial town.

From the hotel you walk a short distance to a long row of bancas, prow on shore, and a noisy throng of men clamouring for the favor of your patronage; but you have probably chosen men at the hotel and are conducted to certain boats by your guide. In the center of your boat is the seat, a split bamboo chair with reclining back and bottom of bamboo splints. The two boatmen take their places at the ends of the boat and push off into the small stream for a few hundred yards to Pagsanjan River.

The boat is paddled up the river past large rafts of coconuts, by great trees dipping their leaves into the river.

Along the shores are parties of laughing people—some AMCHAM _ July _ 10

Photo by Rain Medina

bathing and some washing clothes.

Now there are long reaches of quiet water, clear and deep; then banks begin to rise above you; there is a swirl here, a ripple there, and a swish below the gunwale. You are drawing towards the rapids. The boatmen get out into the water and pull and tug and shove; the water sucks viciously. The boat enters the gorge and its shadows. The river becomes silent stretches of black water, and the air is cold. Above for hundreds of feet tower the great cliffs of Pagsanjan, to which cling vines, desperate trees, and dripping shrubs. On all sides are falls, breaking upon the rocks and filling the cañon with a pleasant murmur; then more rapids and sweeps of fierce water. Great bowlders have fallen into the river. Unable to paddle against the current or to wade, the men now fight painfully forward by clinging to vines, the rocks, anything. Then out of the boat again, lifting it and you bodily up steps of pouring water, around corners, shooting across a quiet pool into a fury of cascading foam. At times you scramble out of the boat and detour a little over intervening rocks, while the fight with the river goes on. For two hours the journey continues, until you come to the end—a large pool, above Pagsanjan Falls, around, the insurmountable cliffs fringed above by shining palms. Monkeys and iguanas scurry over the slippery bluffs complaining at intrusion.

You should go prepared to rough it. Only a bathing suit is worn in the boats, and except at times of low water kodaks had better be left at the hotel, for rapids lap over the side. Indeed many have been the spills in the swift water. But there is no danger, and a wetting is of no consequence. The whole trip need cost no more than twenty pesos nor occupy more than a day and a half.

It is a wonderful trip for those who enjoy the wilds.

There are few prettier sots in the world. Those who have seen the falls are surprised that the Island contain such a scenic jewel; indeed, some maintain that Pagsanjan Falls are without an equal anywhere.

Am Ch a m Co m m u n ic at io n s U p date

Rev up: Improving AmCham Philippines’ Communications _ By Kristel Gonzales

The American Chamber of Commerce created its Communications Department in the Second Quarter of 2015 to further professionalize and streamline the Chamber’s efforts to reach and engage its members. With the Chamber’s growth in strategic regions of the country – Central Luzon, Cebu, and Mindanao – the communication department’s mission is to deliver valuable information to its stakeholders fast, accurately, and always. The department’s vision is to make AmCham Philippines a more competitive Chamber locally and among the leaders in the Asia Pacific region through effective and engaging communications.

AmCham believes that its efforts are promising avenues to connect the business community with stakeholders in the private and public sector and even the academe. Last January 2016, in order to open new platforms to interact with and reach the chamber’s members, AmCham Philippines launched its Social Media accounts in Facebook, Twitter, and LinkedIn. With the intention to engage executives across different industries and organizational levels, these Social Media accounts will be an extension of AmCham’s voice online.

On top of this new platform, the Chamber also started to streamline the direct emails going out to the members by categorizing emails based on the committees and interests of the subscribers.

The communications department continues to encourage its subscribers to update their preferences through the “Update Your Preference” section in the emails and invitations.

AMCHAM _ July _ 12

Members will continue to receive AmCham in Action every Monday to recap the previous events and as a medium to also share materials from—and insights of—guest resource persons featured in the committee events. These materials which, with permission of the owners, may be shared with the members and the general public are also made available in the website under the “Events > Download Presentations” section.

The department is also working on making the Calendar of Events released every second and fourth Friday of the month more comprehensive, projecting events and meetings for a month to a quarter of the year, in a more timely manner.

Value and substance of content continue to be priorities of the Chamber. This pushes the Chamber’s Departments to work together in order to ensure that the flow of information is more fluid and cohesive. In line with this, the communications department will have a regular section in AmCham’s Business Journal which will feature updates about AmCham Philippines’ communication initiatives, news about the different AmCham’s in the Asia Pacific, and other insights and trends in the development sector communications locally and abroad.

Specifically on the website, new pages under the ADVOCACIES section are now up. One will now find the key partners and projects of the Chamber in promoting the country’s development alongside economic growth under this section. The sub-sections include The

AMCHAM _ July _ 14

American Chamber Foundation, The American Desk at BOI, The Arangkada Philippines Project (TAPP), Business Leadership Program (BLP), Integrity Initiative, and the Filipino-American Memorial Endowment (FAME).

Updates will also be seen in the NEWS Section which will now also feature “Advisories” from government agencies and other partner organizations and the official “Press Releases” of AmCham Philippines.

The department is also keen on getting first-hand inputs from both members and non-members about how else to improve the way AmCham communicates with them.

Direct insights from the members guide the Chamber on how to deliver value to our stakeholders. The department will continue to reach out to the members for direct feedback on many occasions, and these insights will be treated with full confidentiality and will be for internal strategic reference only.

There are more projects in the pipeline and AmCham Philippines is committed to continuously improving in order to serve its members and the general business community better and be a reliable bridge between insights and solutions. For feedback, recommendations, and other concerns specifically on the communication efforts of the Chamber, you may reach our Communications Department through our Communications Manager, Kristel Gonzales at kristel@amchamphilippines.com or through +63 2 8187911 loc. 220.

AmCh a m Pu b l ic at io ns Up date

AMCHAM Journal Guidelines for Submissions Submissions to the AMCHAM Journal are always welcome. Articles of Personal experiences, of sports, hobbies, places to visit, travel adventures, tips on doing business in the Philippines - consider sharing them with our readers.

The following are guidelines to all AMCHAM Journal contributors to assist in the drafting of article submissions.

Deadline and Length

Submission deadline for the Journal is the first Friday of the month prior to issue (e.g. August 5, 2016 for submission to the September 2016 issue). The optimum length for articles should not exceed 1,500 words.

Exceptions will be allowed by the Managing Editor if so deemed compelling.

Editorial Review

The Journal tries to make as few changes to the text as possible outside of typos, spelling, etc. However, in some cases changes may be necessary (especially if the author is not a native speaker of English), and the Journal will send these changes back to the author for approval. No response to these changes within three working days will be assumed to mean acceptance. Also, suggestions to improve clarity and readability may be made by the editor.

The Journal holds the right to refuse to print any article due to constraints in space, time, style, or content. To ensure the article’s objectivity and credibility, please do not mention your company in the article. The author and company may be mentioned in the Author Identification paragraph, as described below.

Format

The Journal prefers to receive the article in electronic format. The AMCHAM office uses MS Word, so the last “save as” of the document should be as a Word Document (.doc).

The Journal also accepts articles simply as part of the text of the e-mail. The author may wish to fax a copy as well to ensure that the article appears in the way he or she intended in terms of layout.

Charts and Graphs

AMCHAM encourages the use of charts and graphs in articles to improve clarity and readability. In most cases, AMCHAM’s design/ AMCHAM _ July _ 16

U.S. Embas s y U p date

print company re-creates the charts and graphs. Charts and graphs as an e-mail attachment are also accepted.

Images

If relevant to the article, images (logos, landscape, people, etc.) are encouraged. The ideal form would be a digital picture in the .jpeg format with a resolution of over 300 dpi. Please include captions with photographs. Photographs will not be returned.

Footnotes, Endnotes, and References

Footnotes and endnotes are discouraged, although they can be included if the author deems necessary. References, however, are encouraged, especially if they would prove useful for AMCHAM members.

Author Identification

Please submit a biography of 70 words. This should include the author’s present position, company/organization, and email address. Appropriate content includes contact information, previous experience, educational background, and previously published articles.

Also, while it is not mandatory, the Journal prefers to include a photo of the author’s profile with the biography.

Style

Please keep your audience in mind. The readers of the Journal are welleducated and diverse. They share an interest in the Philippines, but their experiences can vary from the ten-year Philippine resident veteran to the green expatriate fresh off the plane, to the stateside manager just considering the Philippine marketplace. Also, every sector and industry has its own lingo, and abbreviations may or may not be known to certain readers. Please try to make your writing as clear as possible by writing out any acronyms, the first time they are used, and be sure to explain any fieldspecific language and concepts.

Questions and Comments to the Editor

AMCHAM would be happy to answer any questions you may have regarding our publication. Please contact AMCHAM’s Publications Team at leslie@amchamphilippines.com.

Note

What makes the Journal a quality magazine are the efforts by experts both AMCHAM members and others, who contribute their time and knowledge to the magazine and ultimately, to the AMCHAM membership. The AMCHAM Journal would like to thank you for your efforts in the creation of a successful publication and looks forward to reading your articles.

Texts, photographs, drawings, and other accompanying visual materials that appear in the Journal may not be reprinted, copied, or reproduced without the expressed or written permission of the American Chamber of Commerce in Philippines; upon such permission, acknowledgment must be given for any item reprinted, copied or reproduced as to the source of the item.

LTA Building, 7/F 118 Perea Street Makati City 1229, Metro Manila Philippines Tel: (63-2) 890-3090 Fax: (63-2) 552-7507 Email: orion@osi.com.ph

AMCHAM _ July _ 17

Comm it te e R e p o r t Trade and Investment

Philippine E-Commerce Roadmap “Building Trust and Confidence in E-Commerce” _ Speaker Virgilio Fulgencio Write-up by Yves Aguilos

AmCham’s Trade and Investment Committee invited Mr. Virgilio Fulgencio, the Executive Director of the Competitiveness Bureau of the Department of Trade and Industry, to be the speaker at their committee meeting held on June 29. He discussed about the 2016-2020 Philippine E-Commerce Roadmap.

The presentation of Mr. Virgilio Fulgencio included statistical data of the e-commerce for both global and local users, as well as speaking on the opportunities and challenges of the Philippines. He also presented a framework for the promotion of the e-commerce in the country, with the highlight of “building trust and confidence in e-commerce”.

Chairman Mr. Mario Biscocho with Executive Director Mr. Virgilio Fulgencio of the Competitiveness Bureau of the Department of Trade and Insdustry.

At the latter part of the seminar, he discussed in detail the contents of the 2016-2020 Philippine e-commerce roadmap. The speaker informed the audience that the document is publicly available online.

(See: http://www.e-commerce.gov.ph/) A total of 42 guests attended the event.

AMCHAM _ July _ 20

Trade and Investment Committee with Mr. Mario Biscocho and Mr. Virgilio Fulgencio at the AmCham Hall.

U.S. E mb a s s y U p d ate

U.S. Embassy, Philippine Law Enforcement, and Local Industry

Team Up for Fight Against Smuggling

U.S. Department of Homeland Security, Fight IT, and Law Enforcement team up versus smuggling. Law enforcers from the Bureau of Customs, National Bureau of Investigation, and Philippine National Police (lower photo) participate in a conference on strengthening law enforcement processes against counterfeit products.

Thirty-seven law enforcers from the Bureau of Customs, National Bureau of Investigation (NBI), and Philippine National Police (PNP) recently joined a workshop to learn to enforce action against trademark violators, and build solid cases leading to successful prosecutions. U.S. government agency - Homeland Security Investigations (HSI) - is leading the workshop, with support from the Fight Illicit Trade movement, the anti-smuggling initiative of the Federation of Philippine Industries.

The workshop aimed to increase the participants’ understanding of the critical role of law enforcement in the successful pursuit of counterfeit products cases and improve cooperation between government and private experts in the

field of intellectual property protection.

Intellectual Property Office of the Philippines (IPOPHL) Director General Atty. Josephine R. Santiago highlighted the importance of collaboration in her opening address: “One of our key areas of focus is combatting counterfeit goods and this workshop is very timely in its message on collaboration between government and the private sector. If we are to make a dent in this issue we must all be better equipped in our investigation techniques and in pushing through cases all the way to successful prosecution. This is the only way we can achieve a suitable deterrent.”

U.S. HSI Attaché Ransom J. Avilla also highlighted the significance of addressing intellectual property violations through partnerships in his opening remarks: “These partnerships with the Philippine government and the private sector are how we are able to detect, interdict, and assist with Intellectual Property Rights (IPR) violations. Due to the transnational nature of these crimes, we depend on these partnerships for successful outcomes.”

Attaché Avilla further explained that the training is hands-on and designed to be interactive. The training demonstrates to the enforcers the individual steps required to build a successful trademark violation case, beginning with the application of a search warrant.

During the workshop, U.S. Embassy Economic Officer Brian Breuhaus highlighted the progress the Philippines has made on IPR issues. Following several decades on the Special 301 Report Watch List, which identifies countries who deny adequate effective protection for IPR, the Philippines has been removed from list for the last two consecutive years. Mr. Breuhaus attributed the country’s delisting to a coordinated effort by the government led by the National Committee on Intellectual Property Rights (NCIPR). The NCIPR is composed of 12 agencies, which include the IPOPHL, Department of Justice, NBI, and PNP. AMCHAM _ July _ 21

U.S . E m ba s s y U p d ate

Peace Corps and IBM Collaborate To Benefit Los Baños Science Community

Three Peace Corps Response (PCR) volunteers were sworn in recently by U.S. Ambassador Philip Goldberg at the Peace Corps Office in Manila.

One of the volunteers, an IBM employee, will work for three months with the International Rice Research Institute (IRRI), the world’s premier international research organization dedicated to reducing poverty and hunger, improving the health and welfare of rice farmers and consumers, and protecting the rice-growing environment for future generations through rice science.

Peace Corps Response members with U.S. Ambassador Philip Goldberg at the Peace Corps office.

AMCHAM _ July _ 22

The volunteer will serve as an institutional strengthening specialist to help build the capacity of IRRI’s voluminous research information assets through digitization, big data analytics, cloud computing, among other IT transformation strategies.

She will also be working as part of a team serving the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), a nonprofit research and training center mandated to strengthen institutional capacities in agricultural and rural development in Southeast Asia. IRRI and SEARCA are active member

Three Peace Corps Response (PCR) volunteers sworn in recently by U.S. Ambassador Philip Goldberg (right) at the Peace Corps office in Manila.

agencies of the Los Baños Science Community for many years.

Launched in December 2015, the Peace Corps Response program benefitting IRRI and SEARCA is part of the innovative public-private partnership between Peace Corps and IBM. The partnership allows highly skilled IBM corporate professionals to serve overseas in shortterm, high-impact pro bono consulting assignments.

The volunteer will serve alongside a 14-member IBM Corporate Service Corps (CSC) team of IBM employees from the U.S., Brazil, South Africa, Slovakia, Italy, Spain, Mexico, the Netherlands, and India that will arrive in July 2016 to serve the country for one month.

The Philippines has the largest Peace Corps Response program,which started in 2007.

This year more than 20 response volunteers are scheduled to serve.

AMCHAM _ July _ 24

The CSC is IBM’s pro bono consulting program, which was created in 2008, to help solve some of the most challenging problems in communities around the world, while providing IBM employees with unique leadership development.

IBM employees spend four weeks in groups of 10 to 15 working collaboratively with their host government and community counterparts to develop blueprints that address issues including economic

development, energy and transportation, education, and healthcare.

PYXERA Global, an international NGOwhich specializes in pro bono programs and one of IBM’s global implementing partners of the Corporate Service Corps, is part of the coordination team that is carrying out the program in Los Baños, Philippines.

The Peace Corps and IBM partnership, one of its kind, will work with three countries this year. The Philippines is the second to host the project. The first was recently completed in Ghana, supporting girls’ empowerment and education through the Let Girls Learn initiative in March 2016. The third engagement will be in Mexico this August 2016, supporting an environmental project.

In 2015, the Peace Corps Response program fielded 332 volunteers globally, the highest number in its 20-year history.

PCR was originally founded as Crisis Corps in 1996 and has fielded more than 2,900 volunteers serving more than 80 countries.

The Philippines has the largest Peace Corps Response program,which started in 2007. This year more than 20 response volunteers are scheduled to serve.

U.S . E m ba s s y U p d ate

Consular Corner Send Your Vote Home

American citizens may bring voting materials (voter registration or voted ballots) to the U.S. Embassy Manila or the U.S. Consular Agency in Cebu.

Your voter registration materials or ballots must be placed in an envelope addressed to your local election official, with the appropriate U.S. postage.

We will then mail the materials to your local election official through the U.S. Diplomatic Pouch.You may drop your envelopes in the 2016 Voting Box located at the Consular Access Gate, U.S. Embassy, 1201 Roxas Boulevard, Ermita, Manila, on weekdays between 7:30 am to 4:30 pm.

The Cebu Consular Agency is located on the ground floor of the Waterfront Hotel in Lahug, Cebu City, and is open on a walk-in basis from 9:00 AM - 11:00 AM daily. For additional questions about absentee voting, contact: VoteManila@state.gov or consult the U.S. Embassy Manila website (http://manila.usembassy.gov) or the the Federal Voting Assistance (FVAP) website (https://www.fvap.gov) for general absentee voting information.

Be Sure to Enroll in Step for Important Messages

American citizens traveling and living abroad are encouraged to enroll with the U.S. Embassy through the Department of State’s Smart Traveler Enrollment Program (STEP) website: https://step.state.gov/step/.

Registering yourself helps us locate U.S. citizens in the event of an emergency or natural disaster, and also allows us to provide useful information on a variety of topics, including issues relating to security matters for U.S. citizens in the Philippines.

By enrolling in STEP, you may also help your family and friends get in touch with you in case of an emergency. Registering via STEP will also allow you to receive messages from the U.S. Embassy. If you encounter any difficulties or have any questions about STEP enrollment, you may e-mail CASTEP@state.gov.

Check Your Passport Today

Renew your passport at least 90 days prior to expiration! Most countries require a minimum passport validity of six months before they will issue a visa or allow entry to their country. NOTE: It can take up to 3 weeks to process routine tourist passport applications, so please plan your travel well in advance.

Not all applicants are required to apply in person. We encourage you to follow all instructions on our website (http://manila.usembassy.gov/) to find out if you are required to book an online appointment, or if you qualify for a mail-in passport renewal.

Priority U.S. VISA Program for Businesses

The U.S. Embassy Manila recognizes that many businesses, especially AMCHAM companies, frequently send their employees to the United States for business trips.

For this reason, the Embassy has set up a program to accommodate urgent business travel needs. The program is called Priority Interview Program (PIP) and provides expedited appointments and priority processing of visas for employees of qualified companies.

Currently, 228 companies are enrolled in the program and are given access to these expedited interview appointments. They are able to schedule interviews within two days.

AMCHAM _ July _ 26

For more inform ation regarding the program and how to join, please visit our website at manila.usembassy. gov/wwwhni26.html, or you may send an e-mail to PIPManila@state.gov.

For those AMCHAM companies who are currently PIP members, we would like to thank you for your participation, and kindly remind you to update your signatory letter whenever an authorized signatory is added or removed.

Non-Immigrant VISA Interview Waiver Program

Under the U.S. Embassy’s VISA INTERVIEW WAIVER “Drop Box” Program, visa applicants are able to renew their tourist visas (B1/B2) without appearing at the U.S. Embassy for an interview. Applicants who meet the Interview Waiver “Drop Box” Program qualifications below will be able to drop off their visa application at a 2GO courier office location (http://supplychain.2go.com. ph/customersupport/tools/locator.asp). There is no need to schedule an appointment for an interview at the U.S. Embassy.

A visa applicant who can answer “yes” to all of the following eligibility criteria may qualify for Interview Waiver “Drop-Box” Program.

• I have a previous B1/B2 visa that I wish to renew.

• My visa was issued after July 1, 2007.

My prior visa was valid for at least five years.

• • My prior B1/B2 visa is still valid or expired within the last

48months • I am a citizen of the Philippines.

My prior visa does not say “Clearance Received” • or “Travel with

Employer.”

• I have my passport with my B1/B2 visa in my possession.

• My most recent visa was issued on or after my 14th birthday.

The last time I applied for a B1/B2 visa it was • approved.

If the answer is “yes” to all of the questions, applicants can use the Drop Box application process: http://manila. usembassy.gov/interview-waiver.html If there is a “no” answer to any of the questions, applicants will need to schedule a visa interview.

For more information and questions about the Drop Box program, please visit http://manila.usembassy. gov/interview-waiver.html or send an e-mail to ConsManilaNIV@state.gov.

Fe ature

3 Ways to Save Nemo & Dory The Film “Finding Dory” Can Inspire People to See Fish in the Wild ....Not Bring Them Home _ By Gregg Yan, Best Alternatives Campaign

Sure, Finding Nemo was an awesome movie, inspiring a generation of people to love clownfish, now colloquially called Nemos. Its intended message was to keep fish in the sea, where they belong. But did you know that after the movie, millions of clownfish were plucked from coral reefs and plunged into aquaria?

Everyone wanted to keep Nemo! Global clownfish sales jumped 40% and many reefs were left without the happily-dancing orange fish. Sadly, many died at the hands of well-meaning but inexperienced aquarists – because those pretty marine fish are also pretty hard to keep!

The Best Alternatives Campaign estimates that in the Philippines, about nine out of ten wild-caught marine aquarium fish die within a year of capture. Only the hardiest fish - or those lucky enough to be bought by experienced aquarists - survive.

With the release of Finding Dory, a global spike in marine aquarium fish demand is expected. The Philippines and Indonesia are the world’s top exporters of wild-caught marine fish, supplying 85% of the trade – so Pinoy fishers will soon be scouring reefs for Nemo, Dory and all their finned friends. What can we do to protect them?

AMCHAM _ July _ 28

Choose freshwater fish

Goldfish, guppies, tetras and many freshwater fish are bred by the billions and are well-adapted to aquarium life.

Farm-raised fish are cheaper, hardier and environmentallysound options to marine fish. Since raising aquarium fish can be 250 times more profitable than raising Tilapia, it can be a sunrise industry for the Philippines.

Freshwater fish are our best alternatives to marine fish because only 10% of them are still caught from the wild, like African Rift Lake cichlids or angelfish from the Amazon River. Innovations in breeding might soon end the need to catch them in rivers and lakes, while still supplying aquarists with the living jewels they love.

Sure, Finding Nemo was an awesome movie, inspiring a generation of people to love clownfish, now colloquially called Nemos. Its intended message was to keep fish in the sea, where they belong. But did you know that after the movie, millions of clownfish were plucked from coral reefs and plunged into aquaria?

Everyone wanted to keep Nemo! Global clownfish sales jumped 40% and many reefs were left without the happilydancing orange fish. Sadly, many died at the hands of well-meaning but inexperienced aquarists – because those pretty marine fish are also pretty hard to keep!

The Best Alternatives Campaign estimates that in the Philippines, about nine out of ten wild-caught marine aquarium fish die within a year of capture. Only the hardiest fish - or those lucky enough to be bought by experienced aquarists - survive.

Common Clownfish (Amphiprion ocellaris) are relatively hardy aquarium fish which can be bred in captivity. However, 75% of the global supply is still wild-caught. The Best Alternatives Campaign encourages clownfish breeding to ease the strain on wild stocks. (Image from RVS Fishworld)

With the release of Finding Dory, a global spike in marine aquarium fish demand is expected. The Philippines and Indonesia are the world’s top exporters of wild-caught marine fish, supplying 85% of the trade – so Pinoy fishers will soon be scouring reefs for Nemo, Dory and all their finned friends. What can we do to protect them?

Choose freshwater fish

Goldfish, guppies, tetras and many freshwater fish are bred by the billions and are well-adapted to aquarium life. Farmraised fish are cheaper, hardier and environmentally-sound options to marine fish. Since raising aquarium fish can be 250 times more profitable than raising Tilapia, it can be a sunrise industry for the Philippines.

Instead of wanting to possess fish, let Finding Dory inspire us all to see them in their home – the big blue, where Nemo, Dory and all their friends belong. Shown is a healthy coral reef in Palawan. (Gregg Yan)

Freshwater fish are our best alternatives to marine fish because only 10% of them are still caught from the wild, like African Rift Lake cichlids or angelfish from the Amazon River. Innovations in breeding might soon end the need to catch them in rivers and lakes, while still supplying aquarists with the living jewels they love.

Choose tough marine fish

Marine fish are hard to keep because 95% of them are taken from the most stable environment on Earth – the ocean. Most can’t adapt to life in the average home aquarium, where water parameters fluctuate daily. Many are still caught with cyanide, which stuns hard-to-catch

Finding Nemo’s Dory is a Regal Tang (Paracanthus hepatus) – an herbivore which feeds almost exclusively on algae. It is delicate and highly-prone to disease. Most significantly, it cannot yet be bred in captivity – so every captive Regal Tang will have come from a coral reef. (Image from RVS Fishworld)

AMCHAM _ July _ 29

fish but kills up to 75% of them. Popular fish like angelfish, butterfly fish and Moorish idols are specialized feeders which feed on coral, sponges and other tasty treats the average hobbyist probably won’t be able to provide. This is why so few marine fish survive beyond a year.

Still, a few marine fish species can be kept in aquaria.

Hardy and brightly-coloured damselfish, gobies and blennies are good choices. Clownfish are the most popular, accounting for 40% of the trade. There are actually 30 clownfish species and Nemo is a Common Clownfish (Amphiprion ocellaris). Clownfish are relatively hardy and can be commercially-bred – but 75% of them still come from the wild.

Dory is another story. First, she’s not related to the Cream Dory we to eat. Second, she’s very, very hard to keep.

Dory’s a Regal Tang (Paracanthus hepatus) and feeds almost exclusively on algae and seaweed. She’s prone to parasites and gets sick easily. Most importantly, the technology to breed her kind is still years off – so every single Dory you’ll see will have been plucked from the sea!

years. The European Union has now submitted a proposal to control the trade in the species. A hobby should cultivate love – and fish enthusiasts would be the last to want to lose beauties like the Banggai cardinalfish.

To spread the word on the web, Best Alternatives is launching the #DEFENDDORY campaign by calling on netizens to change their profile photos from now to July. “Instead of wanting to possess fish, let Finding Dory inspire us all to see them in their home – the big blue, where Nemo, Dory and all their friends belong,” concludes Best Alternatives Campaign Leader Gregg Yan. Best Alternatives allies for this campaign include Bates CHI & Partners Manila, Centre for Sustainability, ComCo Southeast Asia, Conservation International Philippines, Fondation Franz Weber, Greenpeace Philippines, Muni PH, RVS Fishworld, Marine Wildlife Watch of the Philippines, Philippine Marine and Reef Aquarium Society, plus Save Philippine Seas.

If you really want to keep marine fish, then consult veteran hobbyists and forums like the Philippine Marine and Reef Aquarium Society (PMRAS), which encourages responsible fish-keeping. Get fish from reputable dealers like RVS Fishworld, which only sells cyanide-free fish caught by hand nets.

See them in the wild where they belong

Fortunately, the Philippines is part of the Coral Triangle and is among the richest countries in terms of marine life (this is why we export so much marine fish anyway).

Diving or snorkelling here is way cheaper than in any other country. Wherever you are, there’ll be a reef nearby: Manila has the rich reefs of Anilao in Batangas, Cebu has Moalboal, Davao has Samal Island – even mountainous Baguio has La Union!

So what might happen if we don’t heed these three steps?

Let’s look at another marine fish, the Banggai cardinalfish (Pterapogon kauderni), found only in Indonesia. According to conservation group Fondation Franz Weber and scientist Dr. Alejandro Vagelli, from a global population of about 20 million in 1995, only about 1.4 million of them are left – and up to 500,000 are still caught annually to supply the aquarium trade.

This means that without immediate conservation measures, they’ll be functionally extinct in just a few AMCHAM _ July _ 30

Netizens who want to show their love for Dory can change their profile pictures for the #DEFENDORY campaign – which asks people to see Dory in her home instead of wanting to own her in an aquarium. Logo design

by Bates CHI & Partners Manila.

Best Alternatives aims to help transform the seafood, aquarium, and curio trades by offering more sustainable (and ultimately more profitable) alternatives to endangered seafood, aquarium fish, corals, and sea shells. For more information, please contact Gregg Yan on Facebook or email BestAlternativesCampaign@ gmail.com. Logo design by Bates CHI & Partners Manila.

To urism

Destination Branding: Committing to a Consistent “It’s More Fun in the Philippines” Image _ By Alyssa Marie F. Dispo

In 2012, a big-time Hollywood film, “The Bourne Legacy” which starred Jeremy Renner and Rachel Weisz, featured many locations in the Philippines, including Manila and El Nido, among others. Despite the Philippines being used in high-budget film production locations every now and then, the tendency has, however, been to feature the nation’s capital city as a typical third-country megalopolis largely marked with widespread poverty and even chaos, implicitly branding The Philippines as a nation of stark contrasts that somewhat provides a gruesome backdrop for movie scenes requiring relentless, fast-paced pursuits and action. Thankfully, our many idyllic islands, outside of the capital, such as Palawan (named ‘best-island-in-theworld’ by Conde Nast Traveler) often provide a welcome counter-point when the storyline requires breath-taking beauty and pristine scenery to achieve an extravagantly pictographic effect towards the film’s culmination.

Films like that of the “Bourne Legacy” have probably done more harm than good to the country’s image from a country marketing standpoint. Regrettably, what stood out in that particular film were the gritty streets and slums of Manila and the unwieldy wet market and fish port.

Singapore-based branding strategist CEO Jacqueline Thng of Lexis Branding has stated in an interview by a major television network, “You can spend all these millions of dollars promoting how beautiful the Philippines is, and it’s true, it really is beautiful, but suddenly, people get to see this portion of the slums of the Philippines… It beats all of the ‘It’s More Fun in the Philippines’ ads.” (Garcia, ABSCBN News).

The right branding for the Philippines should not only be based on a catchy phrase, but must be rooted on reality, the kind we will be proud of showing to the entire

world. Highlighting only the slums and the chaos in wet marketplaces does not do justice to what the Philippines is all about. Other countries have an abundance of those, as well.

The Philippines competes with other Asian tourist destinations such as Seoul, Hong Kong, Bangkok and Bali which have created their cities as strong brands in themselves – no small thanks to international films that have shown these places in more positive light.

In this increasingly competitive region, consistency in branding is crucial to attract more tourists, investors and retirees. The challenge is to combine every worldenticing Filipino version of fun into a well-honed narrative consistent with a full commitment to positive marketing and advertising. For somebody on the other side of the world who has not heard about any of the beautiful islands that the Philippines can offer, a consistent positive international exposure is necessary to breeding familiarity

Photo Source: www.google.com

AMCHAM _ July _ 31

Photo Source: www.google.com

among travellers from all over the world whether they be from local television shows or international films.

Capital cities serve as the window of an entire nation’s identity. Mercer’s 18th Quality of Living survey this year ranked Manila as the 136th most liveable city among 230 cities. Plagued with urban problems such as pollution, traffic congestion, overpopulation and the poor airport situation, it has cemented an image as a mere “transit city” for tourists before they quickly fly out to the white sand beaches of the Southern islands such as Boracay and Palawan.

Manila, easily a haven for shopping, gastronomic discovery and luxury hotels, still lags behind in terms of the number of tourists who actually stay in the city. It has remained as a tough sell of “fun” to tourists in the past years. Asia Yulo Blume, COO of Centrix Corporation and Vice President of the Philippine Chamber of Commerce, says, “The capital city of Manila has no iconic brand and the Philippines, in general, has only begun to pick up on the importance of branding through the “It’s More Fun in the Philippines” campaign. But, brand support and development is sorely lacking still.”

Perhaps, Anthony Bourdain’s Phillippine episode of “Parts Unknown,” showed that the Filipinos marvellously know how to capitalize on having the unique kind of fun with its people, culture, food and places. He showcased “outlandish” Filipino delicacies and local activities customary to the real Filipino ranging from the love for singing to pairing beer with the country’s famous marinated pork delicacy, ‘sisig.’ That is reality, indeed – a balanced view.

While the “It’s More Fun in the Philippines” campaign AMCHAM _ July _ 32

has achieved considerable success, the Philippines, sadly, seriously lags behind in infrastructure, particularly the international airport. No amount of tourism campaigns can replace the first impressions of a traveller landing in Manila for the first time. Even our new President Rodrigo Duterte expressed the reality of how to achieve success in tourism when he said, “When a guy goes somewhere, he would always go for the destination he can reach the fastest, then the cheapest, and then the safest, including the infrastructure.”

As visibility affects a country’s image and reputation, so does perception. Undoubtedly, the Philippines could boast of every natural wonder there is, including every city’s quirks and adventures. But a country - to be a brand in itself - requires consistency in achieving excellence in all sectors, encompassing the whole experience of a traveller from spiking his interest to his whole experience that starts with his airport touch-down. That is “Destination Branding”!

About the Author: Alyssa Marie F. Dispo is the Committee Coordinator for Agribusiness, Energy and Power, Human Capital and Resources, Professional Women of AmCham, and Tourism and Hospitality of the American Chamber of Commerce of the Philippines, Inc. She has extensive work experience with start-ups, social enterprises, private firms and youth organizations all around Southeast Asia dealing with project management and client relations. For comments, you may reach her at alyssa@amchamphilippines.com.

Co m p any News

The People At Work Releases its 2016 Philippines Talent Report

The People At Work Philippines announced the release of its 2016 Talent Report detailing the findings from its recent survey of senior executives in the Philippine market.

The People At Work Philippines conducted this survey in May 2016, covering 475 senior executives from major corporations who shared feedback on how they viewed their careers, desired workplaces and other factors influencing job decisions. These executives have at least 10 years of work experience while 37% have 15 years experience and more.

Several findings are highlighted below: The Top 5 Preferred Employers (in order of • ranking) are: Ayala Land, Nestle and Coca-Cola FEMSA, Pfizer and Colgate Palmolive.

• Interestingly, Company Reputation was the number 1 consideration quoted by 44% of executives, followed by Competitive Rewards (35%) and Career Development opportunities (28%).

Cesar Ginete, Country Manager at The People At Work said, “Our findings reveal the need for organisations to recognise these work factors and build the appropriate Engagement and Retention Programs to retain their top talents. In a high-growth market like the Philippines, companies building their leadership pipelines face tough competition and should use this information to identify more effective ways to engage potential talents.”

About The People At Work The People At Work has more than 16 years track record providing senior-level Executive Search and Strategic Talent Advisory services across Asia. With multi-cultural teams operating out of Singapore, Shanghai and Manila, we have the deep insights and market knowledge to meet diverse needs of organisations. The Philippines office provides TALENT MAPPING intelligence which is an in depth service allowing companies to proactively plan their future talent requirements. Visit us at www.thepeopleatwork.com or call Cesar Ginette/ Christine Dapa on +632 840 1606 for more information.

AMCHAM _ July _ 33

Com pa ny News

Celebration Time!!

15 Years of Viventis Search Asia

Executive Director Yu Ming Chin poses with our December 2015 batch of Certified LinkedIn Professional Recruiters

Humble Beginnings

In August 2001, Malaysian national Yu Ming Chin founded what would turn out to be his big success. As the Philippine economy felt the after effects of the “dotcom crash” and the Asian financial crisis, he set up Viventis Search Asia (then called Viventis Solutions), an IT-focused recruitment solutions firm serving mostly small to medium enterprises.

“We almost died in the span of three years,” Chin shares as he recalls the company’s difficult beginnings. “We had suffered huge losses. I had to reconsolidate and focus, focus, focus.” By 2005, Chin was able to navigate the company through the competitive recruitment industry and emerge at the top. It rose to become one of the most successful executive search firms in the country AMCHAM _ July _ 34

and extended its end-to-end search practices to serve all industries.

Growth and Expansion

Its steady success in the Philippines brought about many new changes for the company. By 2007, Viventis Search Asia began to expand in the Asia Pacific region, starting with Kuala Lumpur and followed by Singapore (2008) and Jakarta (2010).

In line with its goal to be the top recruitment advisory practice, the company introduced additional business units to cater to other client recruitment needs. In 2009, Viventis Interim Management was established to address the need for contingent workforce solutions and the increasing demand for highly competent talent to address

short-term company goals and work on special projects.

The company also created its Recruitment Process Outsourcing (2015) and Profiling & Assessments (2016) business units to provide clients with onshore/offshore recruitment experts and highly advanced technical and behavioral assessments respectively.

The years 2013 and 2014 brought about a strong reenergizing of the company through the adoption of their new value proposition and mission and vision statement.

This also marked the start of their long-term business partnership with professional social media site LinkedIn. This partnership gave Viventis consultants an additional edge by providing them with top-notch recruitment tools and further honing their social sourcing skills. The company has heavily invested in LinkedIn’s Recruitment Professional Services and, to date, holds the highest number of Certified LinkedIn Recruiters in its industry. This partnership has also provided an avenue for it to build its corporate brand and to further interact with potential clients and candidates.

Celebrating Success

This August 2016, Viventis Search Asia celebrates 15 years of recruitment excellence by organizing the “Human Capital Conference 2016: HR in the Age of Disruption”.

This 2-day learning event aims to be an in-depth sharing of HR and talent development best practices that will prepare the country’s top companies and elite HR professionals for HR practice in the VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) world.

2016 has brought about significant changes in the Human Capital environment. Accelerating innovation, omnipresent technology, new social norms, and an increasingly diversified workforce has changed how businesses interact with their people. Today’s HR are not only People Managers but are Employee Experience Officers, playing a key role in making companies more productive and more enjoyable.

Top HR business leaders from all over the region come together to tackle the most relevant issues in modern HR practice. The first day covers a broad range of topics in HR Leadership such as “Developing Leaders in the VUCA

Representatives of VIVENTIS Philippines and VIVENTIS Indonesia take a photo with PEAK Learning’s Dr. Paul G. Stoltz and his associate at the recently concluded Philippine Executive Leadership Summit

World”, “How to be a Frontrunner in the Global Hunt for Talent”, ”Disruptive Innovation in HR”, and “Succession Beyond Grief & Relief”.

Some of our headlining speakers include Nicasio “Nic” L. Lim of JG Summit, Atty. Alfonso “Alfie” D. Suarez of Hewlett Packard Enterprise, Frank Koo of LinkedIn, Nicola Hutton of ANZ, and Socorro “Cor” Y. Tuvilla-Suarez of Corporate Transformation. For the second day, topics revolve around managing and developing talent. Speakers like Amor C. Villalon of Microsoft, Neeraj Tandon of Willis Towers Watson, and Alexander “Alex” Siegel of Emerson will be discussing topics such as “Developing Globally Competitive Leaders”, “Driving Business Value from Talent Analytics”, and “Valuing Your Talent”.

Culminating our celebration is “Live It Up: Viventis Search Asia (VSA) 15th Anniversary Concert”, featuring the iconic music of Ely Buendia. All attendees to the conference will be invited to join the Viventis family in this night of good food and great music.

For those interested in joining the Human Capital Conference 2016, visit http://www.viventis-search.com/humancapital.

For inquiries, contact Kaye David or Joanna Armenta at 637 5636 or e-mail marketing@viventis-search.com.

AMCHAM _ July _ 35

Fi l i pi n o -Am e r ic a n M e m o r ial End ow ment News

American Community in Manila Honors US Army “Philippine Scouts” _ By Marcelle Villegas

“They were General MacArthur’s best soldiers at the start of the war. With limited food and supplies, they won battles against a well-equipped enemy. They had a long and honored tradition of service and loyalty to the United States. Half of them were killed in action and in captivity and subjected to the cruel Bataan Death March. They are the United States Army’s Philippine Scouts – America’s Forgotten Soldiers” (from the trailer of the movie “Forgotten Soldiers”)

Recently, members of the American community in Manila gathered at the Manila Elks Club in Makati to honour Filipino soldiers for Memorial Day. It was an afternoon for the film screening of the 2012 documentary film “Forgotten Soldiers” at Manila Elks Club. Later in the evening, a second screening was held at Skinny Mike’s Restaurant and Sports Bar in Bonifacio Global City. Expatch covered the event for Memorial Day. The film screenings were hosted by Democrats Abroad Philippines, headed by Mr. Fred Garrido. The event was also in cooperation with Platinum Multimedia LLC, Skinny Mike’s Restaurant and Sports Bar, Filipino-American Memorial Endowment Inc. (FAME), Manila Elks Lodge #761 and Expat Philippines.

“The Bravest” – The United States Army Philippine Scouts This movie records and informs of the heroism and bravery of the United States Army Philippines Scouts – Filipinos who were trained by officers of the US Army in combat skills.

AMCHAM _ July _ 36

The United States Army’s Philippine Scouts - Filipinos who were trained

by American officers of the US Army. They are legendary marksman with excellent equestrian skills. During the invasion of the Japanese forces in the Philippines in 1942, the Philippine Scouts bravely defended Bataan to delay the attacking forces of the Japanese and providing General Douglas MacArthur time to escape to Australia.

The Philippine Scouts were a military organization of the United States Army founded in 1901 and served until the end of World War II. Gen. Douglas MacArthur called them “the bravest”.

They were legendary marksman with excellent equestrian skills. In the movie, 10 of the survivors from the Philippine Scouts narrated the story on how they got involved in an assault team that helped General Douglas MacArthur escape the Philippines in 1942 while the Japanese forces were rapidly advancing each day toward Bataan and Corregidor.

(Ed note: The film also recorded the fact that these men, on Bataan, led by Lt. Col Ed Ramsey, made the last cavalry charge in the history of the US Army – a little known fact that further points to the bravery of these Filipino soldiers; charging the enemy on horseback.)

The Bataan Death March – One of the Most Inhuman Events in History Unfortunately, after months of battling the Japanese, the Philippine Scouts were running out of food and supplies; greatly outnumbered by the enemies and had to surrender. The Japanese had an unexpected large number of prisoners (more than 75,000) so they decided to move them by foot from Bataan to another base in San Fernando, Pampanga*. These men were subjected to a death march — a horrible long distance walk (around 96.5 kilometers or 60 miles).

Most of these men died of dehydration or exhaustion because some of them were already injured from war or starving for days before the Death March. In the movie, we learn that the Philippine Scouts and American officers who surrendered in Bataan had their guns, watches, military insignia and water canteens confiscated from them. If any of them possessed a Japanese memorabilia, they are shot right away. Those who tried to escape or were unable to walk further were also killed. There were, however, some who managed to successfully escape. For those who survived the long walk, they suffered in the prison camp in Capas due to starvation, dehydration and disease.

In history, this is known as the Bataan Death March and honored as a Philippine national public holiday called “Araw ng Kagitingan” (“Day of Valor”) or “Bataan Day”** on the 9th of April of each year.

Although the fate of more than half of the Philippine Scouts ended in tragedy, let us remember that World War II history in the Philippines is primarily a story of victory.

Our fallen Philippine Scouts may have lost the battle in Bataan, and some of them died in Pampanga*, but their valor and sacrifices (along with the battles fought against the Japanese by the US Army, USAFFE, Philippine guerrilla

Philippine Scouts on patrol – circa 1942

groups and more) contributed greatly to the eventual liberation of the whole country in 1945.

“In the winter and spring of 1941-1942, perhaps the only bright spot countering the bleak news of axis victories was the dogged defense of the Bataan Peninsula by the hard pressed Filipino and American troops of the United States Army Forces Far East (USAFFE). The most celebrated troops of the campaign were the Philippine Scouts, collectively representing only 10% of the defending army.

From the rearguard defense of the retreat into Bataan, to the Abucay Line and the Battle of the Points, the Scouts provided the ultimate backstop preventing USAFFE from the quick capitulation experienced in Malaya and Singapore, and the Dutch East Indies. To a great degree, it could also be said that the actions of the Philippine Scouts at Bataan, Corregidor and Mindanao preserved the honor, and the reputation, of the Regular Army of the United States.” *Historical correction: the camp was in Capas, Tarlac; named Camp O’Donnell. It is now the Capas National Shrine featuring several WWII memorials, and a railroad boxcar which was used to transport the prisoners from San Fernando, Pampanga to Capas Tarlac. ** Historical correction: The “Araw ng Kagitingan” (“Day of Valor”) only honors the Battle of Bataan on April 9 - not Corregidor; Corregidor fought on for one month after the surrender of Bataan – surrendered on May 6, 1942. No Corregidor men were on the Death March.)

This article by Marcelle Villegas is published with permission of EXPATCH newsletter, a magazine of MultiRational Corporation. It was originally published on 2 June 2016 - (www.expatch.org) Our thanks to EXPATCH for this submission.

AMCHAM _ July _ 37

Bu s i n e s s of B u s ine s s

Business and Career Outlook in the New Administration _ By Ernie Cecilia, DPM

Economic seers say that global growth will likely remain modest at 2.4 percent in 2016.

Global Economy

Despite a rebound expected in the US economy in the second half of 2016, its GDP growth will likely not exceed1.7 percent. In spite of employment growth and higher wages that support consumer spending, low levels of investment and productivity will dampen hopes for higher growth and profitability. Europe will have a more stable economic environment as investments and productivity shall likely improve and pave the way for some modest growth acceleration.

China’s growth will likely stay at 3.8 percent, but India will be Asia’s growth leader in 2016. The ASEAN, including the Philippines, will see significant improvements in 2016.

Brazil, once the darling among the Lat-Am economies, will likely suffer from ongoing troubles. The fall in oil and commodity prices will continue to impact other Lat-Am countries. Sub-Saharan Africa will grow at 2.6 percent, slowest in two decades, but has great potential in the medium and long term. However, political and institutional constraints will cause uncertainty.

Phl Development

An article by Cai Ordinario at Bloomberg News quotedincoming NEDA Secretary Ernesto Pernia saying that the Duterte Administration will simply “fine tune the existing Philippine Development Plan (PDP) according to our vision.”

AMCHAM _ July _ 38

The economic and social priority of President Rodrigo Duterte is “addressing inequality.” Pernia believes that uneven distribution of wealth is the reason for the Philippines’ high poverty rates, estimated at 26.3% in the first semester of 2015.

Aside from ensuring a more equitable distribution of wealth, the new Administration will also focus on an effective population policy. Pernia was the lead author of the UP School of Economics’ position paper supporting the Reproductive Health Law of 2008.

12% Growth Goal

Pernia said that the current per capita income of Filipinos is $3,500. To bring this up to $7,000 and keep up with our ASEAN neighbors, Pernia said that the Philippine economy must grow by 12% annually. Under the Aquino Administration, the country’s economy grew by roughly 6 percent per year. Pernia, however, said that the 12% growth is “highly unattainable in the next six years. What would be more prudent is to focus on the existing problem of inequality that will give a major boost to attaining higher economic growth.”

To fuel economic growth, the Duterte Administration will likely favor a more loose fiscal policy and higher borrowing, more infrastructure spending, cutting taxes to 25% (down from the corporate tax of 30% and personal income tax of 32%).

More Deficit Spending

Ben Diokno, Duterte’s budget secretary, favors more

borrowing at this time of low interest rates to “fund and invest in infrastructure and social capital.” Diokno also believes that a fiscal shortfall of 3% of GDP is a “comfortable deficit target.” The past Administration has cut the budget deficit from 3.5 percent of GDP in 2010 to 0.9 percent in 2015.

According to Michael Wan, a Singapore-based economist at Credit Suisse Group AG, “Investors would be willing to look past any potential increase in the deficit, depending on the details of the fiscal policy. A broad overhaul of the tax structure could put more money in the hands of consumers, while more spending on infrastructure, education and health would boost the Philippines’ growth potential.”

Human development

In 2015, the Philippines ranks 115th among 188 countries in terms of Human Development Index (HDI), a composite statistic of life expectancy, education and income per capita indicators. This is an area for improvement.

The new Administration must work at making economic growth more inclusive. Broad-based development, innovation for economic development, and growing the manufacturing and agriculture sectors, not just the services sector, can end the jobless growth experienced for decades.

Filipinos need jobs – regular, temporary, or contractual.

Decreeing that all jobs must be regular will not make businesses regularize all temporary or contractual employees. Instead, the latter can lose their jobs. Since investment equals employment, let’s tweak policies to encourage investments – domestic or foreign.

Government must also revisit our business model as a country. Progressive countries sellto other countries.

Most of our GDP is about Filipinos selling to each other (domestic consumption), if not the remittances of OFWs, revenues from the BPO industry, and government spending. More jobs will be created if we focus on manufacturing and exporting Philippine-made products.

In the 1950’s, the Philippines sent Filipino soldiers to fight in the Korean War. At that time, our per capita income was more than five times that of South Korea.

Today, theirs is more than ten times the Filipinos’ per capita income. They manufacture high-value products in minutes, more efficiently, with lesser resources and higher labor productivity. We export bananas and pineapples

that take several months to grow, require much land, water and laborers to plant, harvest and pack, for a fraction of the price of South Korea’s products.

It doesn’t take a rocket scientist to see why some countries are richer and others are poorer.

Ernie is the 2013 Executive Director and 1999 President of the People Management Association of the Philippines (PMAP); Chair of the AMCHAM Human Capital Committee; and Co-Chair of ECOP’s TWG on Labor and Social Policy Issues. He is President and CEO of EC Business Solutions and Career Center.

Contact him at ernie_cecilia@yahoo.com AMCHAM _ July _ 39

M e m b e r s’ M il e s to n e s

INDEX TO ADVERTISERS BDO .......................................................................................................7 CalEnergy International Services ............................................................1 Chevron ...............................................................................................25 Coca-Cola ............................................................................................13 Colgate-Palmolive ................................................................................27 John Clements Consultants, Inc. ........................................................obc Kittelson & Carpo ...............................................................................19 Mead Jonson Nutrition ........................................................................11 Orion Support Inc. ..............................................................................17 Philippine Retirement Authority ..........................................................15 PMFTC ...............................................................................................ibc Regus Tec Centre, Inc. .........................................................................23 Zuellig Pharma .....................................................................................ifc

AmCham Business Journal is a general business magazine published monthly by The American Chamber of Commerce of the Philippines, Inc., with offices at 2nd Floor, Corinthian Plaza, Paseo de Roxas, Legaspi Village, Makati City 1229 (C.P.O. Box 2562, Makati City1265), Philippines; telephones: (632) 818-7911 to 13; fax (632) 811-3081 / 811-3184; emails: publications@ amchamphilippines.com / amchamrp@ mozcom.com; website: http://www. amchamphilippines.com.

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

No article or content can be reproduced in any manner whatsover without the prior written consent or authorization of The American Chamber of Commerce of the Philippines, Inc. Entered as second-class mail at the Manila Post Office on May 24, 1921 and on December 10, 1945. Re-entered as second-class mail at the Makati Central Post Office on May 7, 1992 and under Permit #534 dated May 24, 1993.

AMCHAM is on SOCIAL MEDIA! FOLLOW OUR ACCOUNTS:

AMCHAM _ July _ 40