SBEP Magazine 2014 by Jimmy Hilario

STRATEGIC BUSINESS ECONOMICS PROGRAM

SBEP NOVEMBER 2014

Gearing up for the Asean Economic Integration

Contents

4 11 22 24 29 32

What AEC 2015 means for business

16 26

Now on its 40th year, the

Strategic Business Economics Program

AEC Series: Competitor-Partner Analysis

is accepting limited applications to its Executive Education offering:

SBEP Class 2014

Executive MBE (Master in Business Economics) and

SBEP's Ruby Anniversary Celebration Characters of Class 2014 SBEP Jakarta Trip 2014

Executive CBE (Certificate in Business Economics) • A convergence of Economic Principles, Business Techniques, and Strategic Management • Designed for CEOs, CEO Designates, and Owners; Heads of Public Agencies and Institutions, and Senior Policymakers • A modular schedule suited for top executives • With research support from the School of Economics and the CRC Foundation Be part of a great tradition and a network of executives in an atmosphere of academic excellence and real business applications.

Strategic Business Economics Program, 6/F, School of Economics, APEC Communications Building, University of Asia and the Pacific, Pearl Drive, Ortigas Center, Pasig City / Email: sbep@uap.asia / Tels. 634-2820 / 634-3095 / 634-2821

editorial

Victor A. Abola, Ph.D.

2015 WELCOMES ASEAN By the time you read this, it would be 2015. And that would mean that full implementation of the ASEAN Economic Community or a free trade area in ASEAN. This promises the world an economic bloc that has a combined GDP of $2.4 trillion in 2013.

AFTA does offer a lot of opportunities for member countries, but also a good amount of threats. After all, the level of development of the different member countries is quite varied. Yet many of them produce similar or competing goods, particularly agricultural products. But if the zero tariff was a humongous threat to the Philippines, a number of industries would have already collapsed since the average tariff on goods reached practically zero by 2010, covering more than 97% of tariff line items (cf. “What AEC 2015 Means for Business”). Besides, an analysis of the pattern of imports by the said article finds greater complementarity than competition. And based on news reports and our own soundings in the different countries, if the Philippines is not ready, so are Indonesia, Thailand, and Vietnam (which have the largest populations in the region). But whether your industry is under serious threat or faces a world of opportunity, businesses should not only look in detail in the imports of other countries. They should also look into the size of the domestic market (e.g., size of middle class, cf. “AEC Series: Competitor-Partner Analysis”) transport connectivity and role in the multinational companies’ supply chain (cf. “AEC Series: ASEAN Internal Supply Chain Connectivity”). For example, a Philippine company based in Visayas or Mindanao may find the establishment of a RORO from DavaoGenSan to Bitong-Menado as opening an expansion area for its markets. After all, VizMin is closer to these cities than Jakarta is—concretely 1,000 kilometers shorter. Or take the Manila or Subic to Ho Chi Minh city distance. This is a good link between two large countries in ASEAN which have good relationships. In the area of trade in goods, there has been some isolated cases of intra-Asean market penetration. Indonesia has gotten into the Philippines strongly with consumer products such as Kopiko and JCo. On the other hand, the Philippines C2 (URC) is already the number one non-carbonated drink in Vietnam. And the latter is the largest supplier of coffee to PH. Here, the progress will vary from industry to industry as standard protocols and accreditation become operational. Besides, trade in services will also open up. To be sure, a certain standardization of education, manufacturing and packaging, processes, and reduction of bureaucratic red tape are needed before headway can be made in the area of transportability of CPA, Medical, Legal, Educational services. But it is likely that financial services will be among the first to be liberalized. The Philippines has already enacted a law allowing more foreign banks into the country. Singapore, Malaysia and Thailand are poised to link their stock exchanges in 2-3 years. However, bond markets could take a little longer since the standards and institutions are not well synchronized so far. Our main suggestion to Philppine companies is to take the initiative and explore potentials based on available data or from friends in the countries of destination. For larger companies, this may not be too burdensome cost-wise. However, small to medium sized companies may find it more difficult. Thus, it is important for the latter to forge stronger industry associations and strengthen their own supply chains, productivity, and mutual support in order to enter a country at a lower cost. Besides, they should target the countries which are most welcoming to Filipinos, and where there is a good base of Filipino executives or middle-level managers in order to learn from the latter’s long experience and familiarity with the destination country, which will have its own peculiarity of doing business. But no business can stay in the sidelines. AEC is here to stay, and first movers may be able to establish significant advantage in their fields of competence. Good luck and prayers for you all!

GEaring up for the asean economic integration

SBEP TEAM

(L-R) Lea T. Riñon, Marketing & Alumni Affairs Coordinator; Ledinia G. Coates, Executive Assistant; Viory T. Janeo, Academic Coordinator; Wilrose M. Gorumba, Program Assistant; Rowena A. Araña; Program Officer; Alonica R. Salazar, Marketing & Alumni Affairs Manager; and Victor A. Abola, Ph.D., Program Director. The SBEP Coordinating Committee, whose members include Dr. Rolando T. Dy, Director of CFA, Dr. Vaughn F. Montes, Ph.D., Fellow of ICD, and Dr. Victor A. Abola, SBEP Program Director, ensures faculty staffing from the University.

Editor-in-Chief Editorial Assistant Contributors

Victor A. Abola, Ph.D. Alonica R. Salazar

To make sound business decisions, you’ll need more than just information. You’ll need insights, analyses, and well-founded forecasts. The Business Economics Club will give you all these, in a language which is simple, without being simplistic. For any inquiries, you may call Ms. Mary Grace Agner at 637-0912 loc. 251 or 374. You may also reach BEC through fax no. 631-1280

George N. Manzano, Ph.D. Kristine Joy C. Martin Francisco L. Villanueva, Jr., Ph.D.

APPLIED BUSINESS ECONOMICS PROGRAM

INDUSTRIAL ECONOMICS PROGRAM CORPORATE INTERNSHIP

The Applied Business Economics Program (ABEP) is a Master’s program for young managers who are looking for more than the usual in a graduate business course. In addition to the fundamental management areas of production, marketing, and finance, ABEP also covers macroeconomic and microeconomic analysis, industry analysis, forecasting, and project analysis. Equipped with these tools, the ABEP graduate is prepared to make sharp business and economic analyses as well as draw out implications of business decisions—at the level of the company, the industry, and the economy as a whole. For inquiries, please contact Ms. Elsie Tingzon at 637-8549 / 637-0912 loc. 225 & 375 or email: abep@uap.asia

We are inviting you to participate in the IEP Corporate Internship Program. The program matches companies of SBEP executives who need graduate student interns to do any of the following tasks: • Macroeconomic and industry analysis • Market research • Pre-feasibility studies • Forecasting • Socio-economic profiling The program aims to provide the graduate student interns the opportunity to sharpen the knowledge and skills they have acquired from the program. For inquiries, please contact Mr. James C. Caswang at 637-0912 loc 348 or email james.caswang@uap.asia

special feature

What AEC 2015 means for business George Manzano, PhD Economist and Kristine Joy Martin Economist

The upcoming ASEAN Economic Community (AEC) has created anxiety in some corners of the Philippine business sector, mainly because of the thought that the existence of this regional trade bloc would trigger aggressive competition from products and services offered by other Southeast Asian countries. Do we have any valid reason to fear our neighbors? We must examine the AEC closely to determine its probable effects on the Philippine economy so that local producers and service providers can confidently face potential challenges. The first of three parts, this article presents the relevant issues that Filipino businesses should focus on as the ASEAN economy evolves toward integration. Some observers, aided in no small measure by the gossip mill, look at 2015 with trepidation. They say that by next year, Philippine tariffs on ASEAN goods will disappear, thereby leaving the Philippine market exposed to competition from its Southeast Asian neighbors. Will the ASEAN Economic Community (AEC) open the floodgates of cheap ASEAN imports and demolish Philippine producers? Given such a dreary scenario, not a few Filipino businessmen view the ASEAN Economic Community as a disaster waiting to happen. How justified this fear is can be answered by taking a sober look at the situation.

First, practically all the tariffs of the Philippines on ASEAN imports are now close to zero. In fact, the average tariff level in the ASEAN has been zero since 2010 (see figure). One implication is

GEaring up for the asean economic integration

that the â&#x20AC;&#x153;big bang,â&#x20AC;? if indeed there has been one, has long since come and gone. Because no major collapse of industries has been observed in recent years, another implication is that for as long as tariffs are adjusted gradually, markets and producers can and do adjust. Of course, the ASEAN, which has a penchant for flexibility, has made allowances for certain sectors belonging to the sensitive list. For the Philippines, the sectors for which ASEAN tariffs have not been driven to near zero are mostly agricultural, such as meat of swine and chicken, cassava, sweet potatoes, and maize. For these aforementioned products, tariffs in the

special feature Table 1. Top 10 exports of the Philippines to ASEAN at four-digit level, 2013 Product Group

Export value (in million USD)

% share to total Philippine exports to ASEAN

2,790

30.0%

Petroleum oils, not crude

616

Diodes/ transistors & sim, semiconductor devices, etc

Electronic integrated circuits and microassemblies

Table 2. Top 10 imports of the Philippines from ASEAN at four-digit level, 2013 Product Group

Import % share to value total Philippine (in million imports from USD) ASEAN

Electronic integrated circuits and microassemblies

1,842

13.0%

2.9%

Petroleum oils, not crude

1,338

9.4%

489

4.0%

Cars (including station wagons)

1,032

7.3%

Parts and accessories of motor vehicles

422

6.0%

803

5.7%

Automatic data processing machines, optical readers, etc.

227

3.0%

Coal; briquettes, ovoids, and similar solid fuels manufactured from coal

634

4.5%

Parts and accessories of computers and office machines

225

3.5%

Parts and accessories of computers and office machines

Machines and mechanical appliances having individual functions, not elsewhere specified

191

6.6%

Crude petroleum oils

392

2.8%

Trucks, motor vehicles for the transport of goods

284

2.0%

Moving/grading/scraping/ boring machinery for earth

154

0.0%

Food preparations, nes

267

1.9%

209

1.5%

Beauty, make-up and skincare preparations; sunscreens, manicure, or pedicure materials

144

0.1%

Polymers of ethylene, in primary forms Parts and accessories of motorcycles and cycles

172

1.2%

Crude petroleum oils

142

Source: ITC Trademap

0.7%

Source: ITC Trademap

ASEAN will be pegged at 5% for 2015 and beyond. One sector that would be facing some pressure is sugar, where duties starting at 18% in 2013 would be progressively cut to 10% in 2014 and pegged at 5% in 2015. Rice, which is one of the most sensitive goods not only in the Philippines, but also in other ASEAN economies, will see its high tariffs decreased to 40% in 2014 and 35% in 2015. Thus, rice tariff will continue to be fixed at a relatively high rate, implying that the ASEAN recognizes the political sensitivities of certain sectors. Another reason why we do not expect an avalanche of imports when the ASEAN tariffs drop to zero or close to it, is that the tariffs applied on imports from nonASEAN suppliers, i.e., the MFN tariffs, are unchanged. This means that certain imports from non-ASEAN producers can still be competitive. For example, when

it comes to the Philippines’ top import – electrical and electronic equipment – 80% of the total imported value came from non-ASEAN countries in 2012. In addition, the trade of the Philippines with its ASEAN partners takes place generally within the same industry, i.e., intraindustry. For instance, Philippine industries import electronic or automotive parts and components from Malaysia, add value to such goods, and export them consequently. In 2011, more than 60% of Philippine imports from the ASEAN were intermediate goods, and final goods accounted for only 22%. The dominance of the intra-industry trade pattern can be observed in the following tables that show the top 10 imports and exports of the Philippines with the ASEAN at four-digit level of classification in 2013. One implication of the intraindustry trade pattern is that the trade is

Another reason why we do not expect an avalanche of imports when the ASEAN tariffs drop to zero or close to it, is that the tariffs applied on imports from nonASEAN suppliers, i.e., the MFN tariffs, are unchanged. more complementary than competitive. Importation does not mean that local industries will be displaced. On the contrary, to export electronic products, the Philippines has to import the parts and components. The low or duty-free tariff regime of the ASEAN enables the creation of international production networks or global value chains in the region. In addition, the present tariff regime in the AEC changes the strategies of multinationals operating in the area. This sbep magazine 2014

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special feature condition is particularly true in the case of multinationals engaged in consumer products. In stark contrast, during the 1960s when ASEAN countries set up high tariff barriers to protect their local industries, multinationals resorted to investing directly and building factories in each major ASEAN market. It simply did not pay to export consumer products from a central factory in the region. The advent of the free trade area in the ASEAN, however, enabled multinationals to exploit scale economies. For instance, multinationals fragment production by assigning a certain intermediate product to a country which produces it in great quantities, i.e., exploiting scale economies, and shipping the intermediate product to another ASEAN country for further processing. Regional production networks such as these are made possible by the relatively free movement of goods across ASEAN partners. Of course, low tariffs among ASEAN partners are not a sufficient condition for regional production networks to flourish. Connectivity is a critical factor for countries to take advantage of the market opportunities that these aforementioned networks offer. Facilitation initiatives in the AEC are useful for enhancing the connectivity. Invasion of services? Would the AEC prompt a wholesale migration of services from the rest of the ASEAN to the Philippines by 2015? It wonâ&#x20AC;&#x2122;t. Of course, liberalization of the services sector is different from that of goods. In the first place, because services are not tangible, they are not subject to tariffs. Rather, services trade is controlled through regulation. Thus, liberalization of services is typically conducted by easing regulations.

1 What are binding in the ASEAN would be the AFAS commitments, which means that unless the sectoral liberalization measures stipulated in the AEC Blueprint are bound in the AFAS, these are strictly non-binding commitments.

Would the AEC prompt a wholesale migration of services from the rest of the ASEAN to the Philippines by 2015? It wonâ&#x20AC;&#x2122;t. Of course, liberalization of the services sector is different from that of goods. In the first place, because services are not tangible, they are not subject to tariffs. Rather, services trade is controlled through regulation. Thus, liberalization of services is typically conducted by easing regulations.

The main framework that governs the liberalization of services in the AEC is the ASEAN Framework Agreement on Services (AFAS). The AFAS closely resembles the General Agreement on Trade in Services of the World Trade Organization, in that ASEAN countries nominate or offer specific service sectors they wish to open and stipulate the manner by which they intend to liberalize. There have been a number of negotiating rounds in the AFAS, where the countries progressively widen and/or deepen the extent of their liberalization of services (commitments). In contrast to the goods sector, however, AFAS has not progressed significantly. Nikomborirak and Jitdumrong (2014) remark that the track record of AEC in opening up the services sector in the region leaves much to be desired for a number of reasons. First, the liberalization commitments, which are largely limited to foreign ownership limits in commercial presence, are not ambitious. Second, the liberalization mechanism specified under the AEC Blueprint is not binding to the extent that they are not subject to dispute settlement mechanisms. There are also too many flexibilities that dilute the liberalization goals. Finally, the liberalization parameter

under negotiation is only foreign equity limitation. The negotiations are largely silent on other important liberalization factors, such as land ownership, hiring of foreign professionals, and so on. The efforts to secure a mutual recognition agreement (MRA) on a number of professions, such as accounting, nursing, engineering, surveying, and architecture have always caught the public imagination when trade in services in the AEC is discussed. The MRAs have often been touted as among the pillars of trade in services, creating an impression that accountants, nurses, engineers, dentists, and others are free to work in any of the ASEAN economies when the AEC kicks in by 2015. By design, an MRA is an agreement among partners to mutually recognize the qualifications of specified professions. However, it is one thing to recognize qualifications and another to actually provide work permits in a particular country. As it stands, ASEAN regulatory authorities retain their power to allow foreigners to work in their domestic markets. Although having an MRA is not enough to ensure the free mobility of professionals in the region, it is a good first step. Thus far, discussions on the movement of people in the AEC are limited to the conditions of professionals. Unskilled or semi-skilled workers, of which there are plenty in the ASEAN, are off the books at the moment. It is in this context that an MRA on tourism workers becomes quite interesting. In contrast to the MRA on professionals, this MRA includes bluecollar workers such as housekeepers. The MRA therefore offers an avenue for bluecollar workers in the tourism sector to seek employment in the ASEAN region. Imperatives for internationalization To accelerate regional integration, Philippine corporate planners and policy makers alike should increasingly take a regional perspective in decision-making. The broad market should extend to all of the AEC. Similarly, the production base should extend beyond the local confines sbep magazine 2014

special feature of national boundaries to include the rest of the regional economies. Therefore, the following issues should always be considered: • Will tariffs on my product be reduced in partner countries? When? • Am I competitive against AEC and non-AEC partners in terms of price and quality? What additional competitive edge do I have relative to non-AEC competitors? • Can I meet the rules of origin (ROO) to introduce my product to the AEC? What documents are necessary to benefit from the preferential tariffs? • Will tariffs be reduced on my imported raw materials from AEC suppliers? When? • Can my suppliers from the AEC satisfy the ROO? • Should I use the available trade facilitation facilities? • What services sectors are open? What

•

does the AFAS say about these? What relevant regulations affect my potential service sector exports in my AEC partner? Are these regulations consistent with the ASEAN Framework Agreement on Services? Is there an intellectual property instrument that will protect me?

The preceding list of questions is general, but it does capture the complexities that a rules-based regime such as the AEC ushers in. As far as trade in goods is concerned, 2015 will not be an earth-shaking year that will be marked by a flood of cheap imports from the Philippines’ ASEAN competitors. As emphasized in this article, the preferential tariffs of the Philippines against ASEAN imports are already quite low. There are a few agricultural commodities, such as sugar, that will feel import pressure from the ASEAN as their tariffs drop in 2014 and beyond. Not much has happened in services

either. There is plenty of talk about MRAs for a number of professions, but unless regulations, particularly from the Professional Regulatory Board, are modified to accept foreign professionals, we do not expect to see planeloads of ASEAN professionals moving to the Philippines to work by 2015. Because the AFAS is not moving rapidly, the liberalization of the services sector in the AEC is stalled. While domestic service providers who have been wary of competitors may see this situation as a respite, certain opportunities could be missed along the way. References Nikomborirak, D. and S. Jitdumrong (2014). “ASEAN Trade in Services” in The ASEAN Economic Community: A Work in Progress. Asian Development Bank. Singapore: ISEAS Publishing Institute of Southeast Asian Studies. ITC Trademap. 2013. www.trademap.org

Strategic Business Economics Program

SBEP’s Upcoming Financial Seminars 1) Intensive Training on Bonds (For CFOs, Treasury Managers, Bond Traders, Bank Officers, Risk Officers, Investment & Trust Managers, CPAs, Lawyers, and Individual Investors) Coverage: Credit Analysis and Interest Rate Risk, Bond Types and Conventions, Basic Fixed Income Mathematics, ZeroCoupon Pricing and Yield Estimation, Bond Yield Curves, Fixed-Rate and Floating-Rate Bonds, Measures of Return on Investment, Interest Rate Sensitivity, Managing Portfolio Risk, Convexity, Bond Portfolio Management Models, Holding Period Yield Immunization, Bond Training and Portfolio Management Strategies. Speakers: Victor Abola Ph.D. and Mr. Augusto Cosio, Jr. Date: May 27, 28 & 29, 2015 TIme: 8:30 am to 5:00 pm Venue: Case Room 2, G/F, ALB Bldg., UA&P Registration fee: Php 30,000

2) Investing in the Stock Market (For working people of all ages, entrepreneurs, and parents concerned about their family’s financial security) Coverage: Basic rules of savings and investments, Fundamental behavior of stocks and stock markets, Economic factors, Company-specific factors, and International capital flows, How to buy stocks and funds online, How to design a trading plan, How to increase the oods of a success via technical analysis, and How to forecast company earnings and share price movements. Speakers: Mr. Alexander N. Gilles, CFA Date: May 26, 2015 TIme: 8:30 am to 5:00 pm Venue: Case Room 2, G/F, ALB Bldg., UA&P Registration fee: Php 7,000

GEaring up for the asean economic integration

MBE Graduates June 2014 Last June 7, 2014, nine distinguished SBEP alumni were awarded a Master in Business Economics (MBE) during the nineteenth UA&P graduation ceremony held at the PICC Plenary Hall. The recipients of the MBE completed all course requirements of the certificate program and successfully defended their thesis.

JOSEMARIA GABRIEL V. ARCENAS Managing Director Moonwerks Solutions, Inc. "Strategic Imperatives for Moonwerks To Remain Competitive In a Converging Digital Services Industry"

EUN GAP CHANG President & CEO Asia Pacific Express Corporation "Asia Pacific Express (APEX) Corporation: Strategic Positioning and Improving Global Logistics Capabilities for 2013-2020"

ROBERTO JUANCHITO T. DISPO President First Metro Investment Corporation "Strategic Directions for First Metro Investment Corporation: A Leader in Investment Banking and Prime Mover in Corporate Bond Market Development"

RONALD FRANCIS M. DOMPOR SVP, Chief Operating Officer Fast Distribution Corporation/Fast Logistics " A Road Map for Company 3 Five-Year Growth Strategy"

ROLENDES C. FABI Board of Director/ Treasurer FRD Food and Spices, Inc./LMG GB5 Food Ventures, Inc. (Owner of Mesa & Lamesa Grill Restaurant Chain) "Global & Local Expansion Strategic Plan for 2013 to 2017"

SEVERINO GAVINO E. FORTES Director for Institutional Support Program & Information Management WORLD VISION INTERNATIONAL "A Strategic Plan for World Vision International Food Assistance"

CESAR G. ILAGAN Senior Vice President/Controller UnionBank of the Philippines "Investment Banking: A Potential Growth Business for Union Bank of the Philippines"

MELANIE S. SIA - LAMBINO Partner Sia & Associates Law Offices "An Approach to Increasing Employability: The Case of Cavite"

JOSE RONALD V. VALLES Head, Regulatory Affairs Office Manila Electric Company (MERALCO) "Viability of Smart Grid as a Strategic Option for Manila Electric Company"

special feature

AEC Series: Competitor-Partner Analysis George Manzano, PhD Economist and Kristine Joy Martin Economist

As the AEC 2015 looms in the horizon, a number of questions continue to confront Filipino businesses. What are the issues and challenges does AEC 2015 bring with it? Will there be intense competition to the extent that local businesses will be demolished? Where will such competition come from? How do we prepare? ...and the list goes on. In the AEC series of articles, we try to answer some of these questions. A good grasp of the facts and figures that surround the business environment is critical when making strategic plans, in so far as getting Philippine companies prepared for the ASEAN Economic community. The first of three parts discussed what AEC means for business. It particularly presents the relevant issues which the Philippine business sector will face come 2015. This part on the other hand, illustrates the relative attractiveness of the Philippines as a market relative to our ASEAN partners/ competitors… As the ASEAN pushes on with its efforts to realize the ASEAN Economic Community (AEC) by the end of 2015, more and more businesses see the region as an important and promising investment destination. The business optimism churns to the extent that ASEAN is believed to be a better production location for goods and services compared to China. Thus, there are growing signs that firms are adopting an ASEAN strategy in their approach to expansion, marketing and branding (ASEAN Business Advisory Council, 2013). The emerging investor interest in the region is a good signal to each ASEAN country including the Philippines that there is something ‘right’ in the region. Investments are most welcome as they lead to more production activities,

increase in welfare and eventually economic growth. It cannot be denied, however, that while ASEAN countries are partners in developing the potentials of the region, they are at the same time competitors in vying for more investments and production activities. Given this, it is important to constantly monitor how the Philippines fare relative to its ASEAN neighbors in terms of investment attractiveness. Through this, one can know in what investment criteria the country can improve on so that it remains competitive in the region. Investment attractiveness is multifaceted. For instance, one can examine the investment attractiveness of a country by looking at the economic fundamental indicators. Economic fundamentals can be evaluated in two categories. The first

one examines the country as a market or consumers while the second one evaluates the country as a production base. This article focuses on the former. A country as a market is characterized by its population, middle class size, income or GDP, and import size. These factors influence a country’s consumption patterns and behavior. Good market fundamentals imply solid domestic demand. For example, a large population translates to a huge consumer base. Figure 1 shows the population of each ASEAN country in 2013. Among the ASEAN, Indonesia has the biggest population of 248.2 million people. Philippines follows next with 103.8 million people. Even though Indonesia’s population is still more than double of the Philippines, one can note that Philippines’ population is sbep magazine 2014

special feature Figure 1. ASEAN Population in 2013, million persons

248.2

103.8 68.8

51.4 29.3

Indonesia

89.5

5.4

0.4

Thailand Malaysia Singapore Philippines Vietnam

Myanmar

Brunei

14.6

6.4

Cambodia

Laos

Source: Economist Intelligence Unit

Figure 2. ASEAN Middle Class, Absolute Size (Million) Indonesia Philippines Thailand

2009 2004

Vietnam Malaysia 0

Source: The Economist, 2011; IMF, WEO; Gulf One Investment Bank

not that far from Indonesia. Vietnam and Myanmar also have huge market population. These four ASEAN countries are consequently the most attractive as far as market population is concerned. On the other hand, Singapore and Brunei with 5.4 million and .4 million people respectively have the smallest population in the region, albeit with the highest per capita income in the region. Size of the middle income class is another important indicator for investors since consumption patterns change as families move to the middle income class. It is expected that households belonging to the middle income class would start buying cars, consume tourism services and even invest in the stock market. Incomesensitive items such as consumer durables, health and financial services would likely get a demand boost as the middle class expands. As shown in Figure 2, the burgeoning middle-class population is

Size of the middle income class is another important indicator for investors since consumption patterns change as families move to the middle income class. It is expected that households belonging to the middle income class would start buying cars, consume tourism services and even invest in the stock market. strongly seen in Indonesia. Again, among the ASEAN countries, Indonesia has the highest number of people belonging in the middle income class in 2009. This is followed by Philippines and Thailand. The three countries also have the fastest growth rate of middle income class size from 2004 to 2009. Indonesia’s middle income class grew by 2400 percent from 2004 to 2009.

GEaring up for the asean economic integration

Philippine’s middle income class grew by 525 percent within the same time period and the income class in Thailand grew by 51 percent. More interestingly, looking at the size of the middle income class as a percentage of population (Figure 3), more than three quarters of Malaysia’s total population already belongs in the middle income class in 2009. Thailand’s share of the middle income class to total population is also large (53.5%). This, probably, could be a factor why Toyota decided to make Thailand as their main production hub. They can sell a lot of cars, usually pickups, in Thailand. Besides, Thailand is very well situated to act as a marketing hub to the rest of Indochina. Philippines is the third country with the highest share of middle income class to total population (21.7%) in 2009. Though the middle class accounts for around 21% of Indonesia’s population, the sheer magnitude of Indonesia’s population translates to a huge middle income market in absolute numbers. Income of the country which is reflected by the GDP is also an important market signal for investors. Higher income and prospects mean greater consumption spending. Figure 4 presents the GDP trend of each ASEAN nation from 2008 to 2012. Indonesia has the steepest growth rate of GDP from 20082012 and has the biggest GDP size among the ASEAN in the recent years. Thailand, Malaysia, Singapore, and the Philippines are the other countries with higher GDPs in the region. It is important to take note nonetheless, that even though Singapore has a higher GDP than the Philippines, it still has a very small population. This, consequently, may limit the magnitude of its consumption. Figure 5, on the other hand, provides the GDP per capita of each ASEAN nation. One can note the increasing trend in the GDP per capita of all countries, which attracts more investors. Singapore, which exhibits the steepest trajectory, leads the region with the highest income per person

special feature Figure 3. ASEAN Middle Class. Relative Size (As a percentage of population) Indonesia Philippines 2009

Thailand

2004

Vietnam Malaysia 0

Source: The Economist, 2011; IMF, WEO; Gulf One Investment Bank

Figure 4. ASEAN GDP 2008-2012, at current prices USD 900,000

Lao PDR Indonesia Thailand Malaysia Singapore Philippines Viet Nam Myanmar Brunei Cambodia

675,000

450,000

225,000 0 2008

2009

2010

2011

2012

Source: ASEAN Regional Information Exchange Database System

Figure 5. ASEAN GDP per capita 2005-2013, current US$ 60,000 50,000 Singapore Brunei Malaysia Thailand Indonesia Philippines Viet Nam Lao PDR Cambodia Myanmar

40,000 30,000 20,000 10,000 0 2005

2006

2007

2008

2009

2010

Source: IMF World Economic Outlook Database

2011

2012

2013

growing at an average rate of 16.0% from 2009 to 2011, and an average of 2.2% from 2011 to 2013. In 2013, Singapore GDP per capita amounts to US$52,179. Although this may be significantly higher than the GDP per capita (US$884) of the poorest country, Myanmar; the income gap between the two countries nevertheless was reduced over the years. In 2005, Singapore’s GDP per capita was 131 times than Myanmar’s but by 2013, it was reduced to 59 times. Such narrowing of the income gap is due to the higher growth rates of small countries. For example, while the countries, with highest GDP per capita grew at 1.9% (Singapore) and -0.02% (Brunei) from 2012 to 2013; countries with relatively lower GDP per capita such as the Philippines, Vietnam, Laos, Cambodia and Myanmar have 2012-2013 growth rates of 11.6%, 11.6%, 9.8%, 8.9% and 5.9% respectively. The final market indicator suggesting market attractiveness is the import demand of a country. The higher the magnitude of consumption, the more attractive a country is to investors. Based on Figure 6, Singapore, Thailand, Malaysia and Indonesia are the biggest importing markets in ASEAN in the recent years until 2011. Although a drastic but temporary decline may be seen in 2009, due to the global financial crisis, these countries’ import demand bounced back in 2010. Furthermore, Thailand was able to overtake Malaysia’s imports in 2007 while Indonesia, which approximately had the same import size like the Philippines from 2000 to 2004, started to have a steeper trend in 2005. Philippines import size on the other hand, has a relatively flat trajectory as compared to the bigger importing markets. In fact by 2007, Vietnam overtook the Philippines in terms of its demand for imports. Of course, one cannot expect the whole import bill to represent demand for consumer items. Given the expansion of the global production chains, a good

sbep magazine 2014

special feature Figure 6. ASEAN Import size in billion USD 60,000

45,000 Singapore Brunei Malaysia Thailand Indonesia Philippines Vietnam Lao PDR Cambodia Myanmar

30,000

15,000

0 2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: ASEAN Regional Information Exchange Database System, NSCB

The final market indicator suggesting market attractiveness is the import demand of a country. The higher the magnitude of consumption, the more attractive a country is to investors.

chunk of the imports of the ASEAN countries are intermediate or raw material. Nevertheless, an increase in imports could translate in more economic activity and subsequently employment. In summary, ASEAN as a whole has a solid consumer base characterized

GEaring up for the asean economic integration

by large population, growing middleincome class, high income, and increasing import demand. Among the ASEAN nations, Indonesia is the most attractive to investors as far as the aforementioned indicators are concerned. It has the largest market population, highest growth of middle income class size, highest income and above average import demand. Philippines is another promising market. It has the second highest population and middle income class. In terms of income and import demand, though, the country ranks fifth to sixth relative to its ASEAN neighbors. Nevertheless, it has the highest GDP per capita growth rate in the region. References

ASEAN Business Advisory Council, 2013, Businesses see ASEAN economic integration more as an opportunity than a threat, ASEAN Secretariat News, http://www.asean.org/ news/asean-secretariat-news/item/businessessee-asean-economic-integration-more-as-anopportunity-than-a-threat

NavarroAmper Co.

cover story

AEC Series: ASEAN International Supply Chain Connectivity Manufacturing of goods and services has evolved through time. Global integration is increasingly characterized by trade in tasks. Thus, instead of simply creating more trade in goods, there is a rise in the trade of intermediate goods and services as more production stages are allocated across different countries. This mode of production has given rise to global production networks (GPNs) or supply chains. Given this, connectivity to the regional and global production networks is essential in shaping a country’s competitiveness in the international market. The physical connectivity of the country to the supply chain enhances the participation of the country in the GPNs. But perhaps more important, effective trade facilitation measures are needed to be in place so that connectivity along the international supply chain could be more productive. Trade facilitation measures would lessen transaction costs beyond trade borders and therefore encourage cost-effective business transactions. The importance of trade facilitation measures in the new global production paradigm calls for a shift in policy focus, that is, from tariff related barriers to non-tariff and beyond-border barriers. There is a need to measure how countries progress in trade facilitation measures. The UN ESCAP provides the International Supply Chain Connectivity Index (ISCCI) as an indicator of the overall trade facilitation performance of a country along the supply chain. It takes into account the facilitation of the movement of imports and exports as well as the connectivity of a country’s port to other countries since majority of international trade still happens via seaports. Through this metrics, one can have an idea on (1) how Philippines fare vis-à-vis other Asian nations in terms of trade facilitation along the supply chain and (2) what specific connectivity factors should the country address in order to achieve competitiveness in the region in the light of the upcoming ASEAN Economic Community. Introduction The decline in the costs of trade, transaction and communication has ushered in a revolution in business models for multinationals. With the aforementioned developments, firms could now divide their production lines geographically at the ‘task’ level. This change in the production process introduces profound changes in the mode of international trading. Countries have begun to organize themselves in a supply chain, wherein a country specializes in a particular production stage or task at even finer specifications. Under this production model, goods from one production facility in one country are moved to a distribution center or factory in another country, usually via seaports for further processing. This arrangement provides more countries with wider opportunity to engage in international trade, particularly in manufactures. Consequently, it is not surprising

that a key performance area of countries to make inroads in international market has redounded to their ability to tap global production networks (GPNs). Indeed GPNs have changed the

10% 22% 68%

pattern of trade in many regions. For instance, as shown in Figure 1, more than 60% of ASEAN trade are already intermediate products in 2011. Such is a consequence of the proliferation of GPNs in the region. Not every country can link into the GPNs. Certain enabling elements such as efficient connectivity mechanisms should be in place. Although the provision of good quality physical infrastructure – ports, roads, airports, etc – are important, there should also be efficient services – handling, logistics, forwarding – in place. On top of these, government intervention such as customs procedures should also be streamlined. There is a role for collective action on the part of the governments, especially within a region, designed to enhance the policy environment in the context of participating in GPNs. This is trade sbep magazine 2014

cover story facilitation. Trade facilitation is clearly an objective of international cooperation. Since GPNs, usually operate within a region, it is natural that initiatives in trade facilitation are taken up at the level of regional cooperation, such as Asia-Pacific Economic Cooperation (APEC) or the ASEAN. The Philippines, in the light of the upcoming ASEAN Economic Community, needs to achieve such competitiveness. To assess how the Philippines is faring in terms of its ability to interconnect to GPNs, it is important to find ways of measuring this ‘connectivity.’ Information regarding the trade facilitation performance of the country along the supply chain, throughout the years and relative to other Asian nations, would therefore be helpful in giving an idea regarding what areas Philippines must address to achieve more efficient supply chain connectivity. This article highlights one framework, developed by the UN ESCAP, in measuring and monitoring the extent of connectivity of countries to international supply chains. Such metrics is an important feedback for policy action. ISCC: Trade Facilitation along the Supply Chain The UN ESCAP (2013A) emphasizes that the extent of a country’s connectivity to the global production network depends on how efficient are its trade procedures associated with moving goods between ports, and how well connected is its port to other countries. On this basis, it provides the International Supply Chain Connectivity Index (ISCCI), which calculates the overall trade facilitation performance of a country along the supply chain. The ISCCI is an amalgam of three indicators that brings together different elements found in the supply chain (Flowchart 2) such as the international shipping and at-and behind-the-border procedures that should have moved goods at the least time and cost. ISCCI uses three indicators that assess the efficiency of the aforementioned trade procedures. These are the (a) trading across borders (TAB) export indicators, (b) TAB import indicators from the World Bank Doing Business Report and the (c) UNCTAD Liner Shipping Connectivity Index (LSCI). Sub elements of each indicator are provided in Table 2. Equal

weight of 1/3 is given to import, export and liner shipping performance when computing for ISCCI. A high indicator signals good connectivity to the supply chain while a low value indicates poor connectivity. Philippines Connectivity to the International Supply Chain In examining the Philippine connectivity performance, two levels of analysis will be done. First is historical, which will cover from 2006 to 2012 only; and second is cross-country, in which the Philippines’ connectivity to the international supply chain will be compared to the connectivity of other Asian nations. According to the ISCCI data in 2012, the Philippines ranks 59th (out of 179 countries) globally in terms of trade facilitation performance along the supply chain. The country’s ISCCI score of 34.45 is a 13. 46% improvement from its 2006 performance of 30.36. This translates to improved connectivity (Figure 2). Examining the ISCCI components of the Philippines, it can be observed that trade across border procedures and integration in the global shipping network were all enhanced (Figure 3). In average, the TAB indicators of the Philippines increased by 15.2% from 2006 to 2012 while its LSCI score meekly increased by 3.9% over the same time period. Undoubtedly, the country has a better

performance in trading across border facilitation measures than in liner shipping connectivity. This is due to the business reforms implemented for trading across borders over the years. Some of these include the upgrading of the risk management systems and EDI system in 2009 that led to a decrease in import time; and the improvement of electronic customs systems in 2011 by adding functions such as electronic submissions and payments which resulted in Philippines reducing the time and cost to trade (World Bank, 2014). The low score of the liner shipping connectivity on the other hand, reflects the nature of the Philippine export basket, that is, the majority of the country’s trade is electronics with low-weight-high-value characteristics and are shipped by air (Alburo, 2013). Still, even though this is the case, there is still a need to enhance its shipping connectivity given that 80 percent of the country’s regional trade are by sea. However, relative to other Asian countries, Philippines improvement is insignificant, for it still lags behind its neighbors such as Malaysia (5th), Thailand (33rd), Vietnam (37th) and Indonesia (46th). Not to mention the large gap it has with Singapore (1st), Hongkong, China (2nd), Korea (3rd), and China (4th) (Table 3). It can

Flowchart 2. Philippines International Supply Chain Connectivity, 2006, 2012 Import of parts or components

Border

Export of goods after processing

International shipping > At–and behind-the-border At–and behind-the-border > International shipping import procedures export procedures Source: UN ESCAP, 2013B

Table 2. Components of the International Supply Chain Connectivity Index

Indicator

Description

TAB underlying export indicators

It refers to the number of documents, time and cost involved in export

TAB underlying import indicators

It refers to the number of documents, time and cost involved in import

Liner Shipping Connectivity score

It refers the integration of a country to the global shipping network

GEaring up for the asean economic integration

cover story Figure 2. Philippines International Supply Chain Connectivity, 2006, 2012

Figure 3. Contribution of export, import and liner shipping connectivity performance to international supply chain connectivity of the Philippines 2006, 2012

34.45

15.87

30.36

13.77

13.52 11.73

2006

4.86

2012

5.05

Source: UN ESCAP, 2013B

moreover be noted that although China ranked lower than the Philippines in terms of TAB rank (68 and 53 respectively), its LSCI performance created a big gap between the ISCC performance of the two countries. This highlights the importance of connectivity in the shipping networks. As shown in Figure 4, over the years 2006 to 2012, Thailand showed the steepest positive change in performance. Back in 2006, the connectivity score of Thailand to the supply chain is equal to that of the Philippines. But it began to take off and its international supply chain connectivity rapidly increased, until its ISCCI score peaked in 2009. Trade reforms that improved the connectivity of the country began in 2008 with the implementation of an e-Customs system that allows customs declarations to be submitted electronically and data to be simultaneously verified by different agencies. Also, it upgraded its EDI system in 2009 thereby decreasing the time of export and import procedures (World Bank, 2004). Thus, although the Philippines also implemented trade facilitation reforms in 2009, the first-mover advantage of Thailand in implementing reforms and, probably, the efficacy of such implementation push it ahead of the game relative to the Philippines. Nevertheless, it can be observed that Thailand’s connectivity performance plateaued in 2012, which may be due, to the lack of business reforms after 2009. Malaysia’s ISCC performance on the other hand, slightly improved in 2009 and then steeped in 2012 with a 9.1% increase. It consequently earned the 5th place in the global ISCCI rank in 2012 and 2nd among the Southeast Asian nations. The connectivity performance of the country is more attributed to its liner shipping connectivity than trading across borders

Export Facilitation Source: UN ESCAP, 2013B

Import Facilitation 2006 2012

International Shipping

Table 3. Performance Rankings according to trading across borders indicators, Liner Shipping Connectivity index and International Supply Chain Index, 2012

Economy

TAB LSCI ISCCI Economy TAB LSCI ISCCI Rank Rank Rank Rank Rank Rank

Singapore

Philippines

HongKong, China

Pakistan

Republic of Korea

India

127

China

Azerbaijan

169

Malaysia

Lao

160

114

United States

Bhutan

172

117

Germany

Russian F.

162

118

Japan

Nepal

171

119

Thailand

Iran

143

125

VietNam

Bangladesh

119

137

Sri Lanka

Cambodia

118

182

138

Indonesia

Kyrgyzstan

174

144

New Zealand

Kazakhstan

182

151

Australia

Uzbekistan

185

160

Mongolia

175

Tajikistan

184

171

Source: UN ESCAP,2013A

procedures. In fact, its LSCI globally ranked 6th in 2012 while its TAB indicators globally ranked 11th. VietNam also showed promising change in its connectivity performance as it overtook Indonesia by 2012. This is mainly due to the encouragement of competition in the logistics industry along with the application of new customs administration procedures as part of the WTO membership reform program. This reduced the delays to

trade in VietNam that eventually improved its trading across borders procedures and increased its connectivity to the supply chain (World Bank, 2004). Indonesia is the only Southeast Asian country whose performance dropped by 2.6% from 2006 to 2012. This is amidst the fact that it expected to reduce the export time by launching a single window service. Although Indonesia’s ISCCI score may have dropped while ISCCI of the Philippines sbep magazine 2014

cover story Figure 4. Evolution of performance by Southeast Asian Economies in International Supply Chain Connectivity Index

Singapore Malaysia Thailand Viet Nam Indonesia Philippines Lao People’s Democratic Republic Cambodia

Source: UN ESCAP, 2013A

increased, the increase in the international supply chain connectivity of the latter is not enough to surpass the former. Consequently, Philippines remained to have the third lowest ISCCI in the Southeast Asian region while Laos and Cambodia have the poorest connectivity to the supply chain. Conclusion With the changes in the manufacturing process of goods and services through time, the nature of competition in the global arena also changed. There is a greater trade in tasks which is shown in the increase of trade of intermediate goods and services due to widespread offshoring. Since production is needed to be done in different countries, there is a premium given to the connectivity of the country to the Global Production Networks. Because of this, policy emphasis is given recently to the effectivity of a country’s trade facilitation measures that would ease international movement of goods across trade borders. The country’s trade facilitation performance along the supply chain is one of the determinants of the level of its international supply chain connectivity and consequently its competitiveness. In order to gauge a country’s international supply chain connectivity, the UN ESCAP provides an indicator based on the trade across borders (TAB) procedures and connectivity in shipping networks. It is called as the International Supply Chain Connectivity Index (ISCC) and has three components namely TAB export indicator, TAB import

indicator and Liner Shipping Connectivity Index (LSCI). Unlike other trade indicators, ISCC index is a mix of three beyond- border indices that estimate the efficiency of the trade procedures and connectivity of seaports that facilitates trade. This, therefore, can aid policy makers to have a better and objective policy targeting and formulation that shall improve a country’s connectivity. Particularly, for the Philippines, an examination of the Philippines connectivity to the supply chain throughout the years and its performance relative to other Asian nations would be helpful in determining the areas that need improvement in order to achieve competitiveness in the upcoming ASEAN economic community in 2015. From 2006 to 2012, Philippines connectivity to the international supply chain improved as suggested by the increase in its ISCCI ranking from being 64th in 2006 to being 59th in 2012. Both the trade across borders import and export procedures as well as its shipping connectivity improved through time. Nonetheless, the country’s connectivity to the supply chain still lags behind its neighbors such as Malaysia, Thailand, Vietnam, and Indonesia. Philippines remained to be the country with the third lowest ISCCI score in the Southeast Asian region while Singapore and Malaysia continued to be the top two with the better connectivity. It is interesting to further note that Thailand showed the most significant improvement in connectivity among

GEaring up for the asean economic integration

the region. Back in 2006, Thailand’s connectivity is at the same level as the Philippines’. But post 2006, the former’s ISCCI score leapfrogged two ranks higher and was able to overtake Philippines, Indonesia and Vietnam. Such improvement of Thailand may be due to the efficiency of its business reforms starting in 2008 such as the e-Customs system and an EDI system. The ranking of the Southeast Asian countries in terms of connectivity has a big implication in the light of the upcoming AEC. AEC will undoubtedly improve the attractiveness of the whole ASEAN region to Foreign Direct Investments (FDIs). It cannot be helped that investors will be evaluating Philippines vis-à-vis the other competitors in ASEAN. The choice of landing the FDI will largely depend on the efficiency of doing business and the physical connectivity of the country. With this in mind, one has to use or at least pay attention to these indices to provide an objective target for policy action in the field of improving connectivity. For instance, the ISCC index shows the progress of the Philippines in efficiency is least. And based from it, one can infer that more effort should be given in developing the country’s integration to the international shipping networks. This would require more advanced maritime infrastructure and maritime services. Of course, the efficiency of the facilitation of Philippines TAB procedures should also be enhanced, if not maintained. All of these would depend on the initiatives, cooperation, and coordination of the public and private sectors. References

Alburo, F. (2013) Key Findings on Philippines Trade and Investments in the Asia-Pacific Trade and Investment Report 2013. UNESCAP. http://www.unescap.org/tid/ ti_report2013/phil-findings.pdf United Nations, Economic and Social Commission on Asia and Pacific (2013A). Asia Pacific Trade and Investment Report 2013: Trends on Trade Facilitation Performance. Thailand: United Nations. http://www.unescap.org/tid/publication/ aptir2668.asp United Nations, Economic and Social Commission on Asia and Pacific (2013B). Country Profiles on Trade Costs and Internation al Supply Chain Connectivity (ISCC). http://www.unescap.org/tid/ti_ report2013/notes/philippines-tcp.pdf World Bank (2014) Trading Across BordersDoing Business Reforms: Philippines. http:// www.doingbusiness.org/data/exploretopics/ trading-across-borders/reforms

SBEP Class 2014 w

BALIONG, Arlene H. “Arlene”

Administration Manager Public Safety Mutual Benefit Fund, Inc.

BALLADA, Winifred Lu, “Win” Founding President & Publisher DomDane Publishers

BERANIA, Donna A. “Donna”

Marketing Manager Public Safety Mutual Benefit Fund, Inc.

BILLONES, Josephine M. “Jo” Treasury Manager Natasha & MSE

CHUA, Alex T. “Alex”

Chief Executive Officer Conveying & Packaging Co., Inc.

CRISTOBAL, Adrian S. Jr. “Che”

Vice President Treasury, URC International Co., Ltd.

DOLINO, Rex Milton A. “Rex”

Undersecretary for Industry Development Group BOI Vice Chair & Managing Head Department of Trade and Industry

Consultant - Center for Police Strategy Management (CPSM) Philippine National Police

CRUZ, Melissa Elsa P. “Melissa”

DORINGO, Joel B. “Joel”

Advisor for CSR and Management Systems German Dev’t. Cooperation (GIZ)

IT Manager Public Safety Mutual Benefit Fund, Inc.

CUSTODIO, Darlene Magnolia A. “Darlene”

hernandez, John Edward P. “Edward”

Chairwoman, Senators Gaudencio and Magnolia Antonino Foundation

CAYAÑga, Elcid Marcelo M. “Toby” Vice President and General Manager ACES AMC Group Holdings, Inc.

DELOS REYES, Ma. Liza M. “Liza”

DANAO, Roderick M. “Rick”

Vice Chairman/Assurance Partner Isla Lipana & Co.

GEaring up for the asean economic integration

Vice President for Operations Victory Liner, Inc.

SBEP Class 2014

Lacson, Mariano Dominick F. “Nicky”

OLVINA, Deo Ramon Jr. “Deo”

SAN PEDRO, Reginald Benjamin V. “BJ”

LAGUNILLA, Ma. Isabel S. “Beng”

ORDOÑEZ, Gonzalo G. “Gonz”

SEVILLA, Ferdinando G. “Ding” Acting Director - Center for Police Strategy Management (CPSM) Philippine National Police

Sales Director Unionbank of the Philippines

Managing Director Harbour Centre Port Terminal, Inc.

Vice President for Administration and Administration, All Visual & Lights System Corp.

President First Metro Securities Brokerage Corporation

MAGpayo, Karlo G. “Karlo”

PARMA, Alan Gabriel T. “Alan”

MORENO, Clarence Leslie B. “Clyde”

PIANO, George Q. “Geo”

President Golden Haven Incorporated

President Caven Studios, Inc.

Chief Executive Officer Granberg Capital

Board of Trustee Public Safety Mutual Benefit Fund, Inc.

Naval, Marcelo G. “Marcel”

RODRIGUEZ, Rodrigo M. “Rod”

CEO/President Vitaltech Construction Corporation

Chief Operating Officer B-Mirk Enterprises Corporation

TALAG, Giovanna T. “Joy” Corporate Accounts Development Manager Dole Asia Company, Ltd.

VILLANUEVA, Francisco L. Jr. “Frankie” Director Clark Development Corporation

Manila Branch Manager Ocean Transport Group of Companies, Inc.

sbep magazine 2014

SBEP’s Ruby Anniversary Celebration

The 2014 Golf Tournament and Homecoming Dinner by Alonica R. Salazar

The SBEP’s 40th anniversary celebration featuring a Golf Tournament and a Homecoming Dinner was held last March 21, 2014 at the Wack-Wack Golf and Country Club, Mandaluyong City. The success of both grand festivities could be attributed to the generosity and hard-work of Class 2014—the host batch. The exciting day started with a Golf Tournament at the West Course of the Wack-Wack Golf and Country Club. Dr. Victor Abola (SBEP Director), PCSup. Noel G. Constantino, (Director of the Philippine National Police Academy and SBEP Alumnus Class 2005), and Mr. Sergio Ortiz-Luis, Jr. (Chairman of the Philippine Chamber of Commerce and Industry), led the ceremonial tee-off at 8:00am. Old friendships were rekindled

and new ones forged as the tournament breezed through the day. A total of 52 alumni, faculty, current participants, and guests joined the tournament. Mr. Matthew DyBuncio (guest) came out as the Overall Champion and Mr. Koji Onozawa (Class 2006) emerged as the Low Gross Champion. Division winners were Col. Gerry Amante for Class A; Mr. Nel Bondoc for Class B; and Mr. Alex Chua for Class C. Batch Champion was Class 2006 represented by Mr. Koji Onozawa, Atty. Romeo Duran, Mr. Raymund Chu, and Mr. Art Manuel. For the Fun Holes, Mr. Art Manuel bagged Nearest to the Pin at Hole #14. Mr. Paolo Torres won the Most Accurate Drive at Hole #5 and Col. Gerry Amante bagged the Longest Drive at Hole #10. The Hole-in-One Prize was a Club Car

GEaring up for the asean economic integration

golf cart. Unluckily, nobody won the golf cart. All those who participated in the golf tournament were pleasantly surprised to go home with a fantastic giveaway package comprised of the following: NIKE dry-fit shirt, NIKE golf cap and Nike sleeve of balls. The SBEP and Class 2014 would like to thank the following generous sponsors for making the 2014 Golf Tournament a huge success: for Platinum Sponsors – First Metro Investment Corporation and South Forbes Golf Club; for Gold Sponsors – Public Safety Mutual Benefit Fund, Inc., Pacsports, and Club Car; for Silver Sponsors – City Service Corporation, Conveying and Packaging Co., Inc., Nickel Asia Corporation, NutriAsia, Inc., AMOSUP, Granberg Capital, Tollways

Management, Metropolis Construction, Parkson and Oriental Duty Free Shops, Dr. Frankie Villanueva, and DMCI. The festivity did not end at the golf tournament. Shortly before dinner, the Banquet B of the Wack-Wack Golf & Country Club was brought to life as family and friends of the alumni and Class 2014 celebrated the Homecoming with a feast prepared by ‘Via Mare.’ A total of 126 alumni, current batch, guests, faculty, and staff graced the Homecoming Dinner. The entertaining program started with an invocation by Mr. Win Ballada (Class 2014 weekend class vice president). The welcome address was given by Ms. Darlene

Custodio (Class 2014 president). The masters of ceremonies for the night were Ms. Melissa Cruz and Mr. Aries Supremo (Class 2014). Throughout dinner, the guests were serenaded by the celebrated band, “The MOBB” – featuring our very own alumni – Mr. Aton Atilano (Class 1982), Mr. Doods Policarpio (Class 1999), and Mr. Gerry Reyes (Class 1999). The dance floor came alive as the guests danced to the music of the 70s, 80s, and 90s. The amazing raffle prizes glued the audience to their seats. These were donated by the alumni and Class 2014 which included a 43” Plasma TV, 3 Golf Memberships for 1 year at South Forbes Golf City, 2 gift certificates for 2 pax for a 3D/2N stay in a Studio Suite at Alta Vista

Boracay with breakfast, 5 gift certificates of Php 10,000 worth of treatment at Vietura Aesthetic Lifestyle at Sofitel, EYZ personal refrigerator, and 6 gift certificates of a laser relaxation treatment at Anne Penman Laser Therapy – for the major prizes. Mr. Isidro A. Consunji, President of DMCI Holdings Inc. and SBEP Alumnus Class 1982, delivered the inspirational message to the alumni and guests. The homecoming dinner formally concluded with our program director, Dr. Victor Abola’s closing remarks. The SBEP would like to express gratitude to all the sponsors and donors for their generous contribution to the SBEP Endowment Fund. Likewise, the program would like to acknowledge Class 2014 and all the hardworking SBEP staff for making the festivities of SBEP’s Ruby Anniversary an enjoyable and memorable experience for everyone. sbep magazine 2014

www.pacsports.com

Tel.No. 2619405/8892601

seminar

Intensive Training on Bonds

Last November 19, 20, & 21, 2014, the SBEP organized a three whole-day â&#x20AC;&#x153;Intensive Training on Bondsâ&#x20AC;? at the Telengtan Hall of UA&P. It was attended by 17 senior executives from varied industries and services sector. The Intensive Training on Bonds equipped the participants with a systematic and integrated learning on all bond and bond-related products available in the market today. Computer based exercises were provided to the seminar participants to facilitate straightforward and practical learning. Dr. Victor A. Abola, SBEP Director, also an Economist and Finance Expert, delivered the course for Days 1 & 2. The following topics were covered: Credit Analysis and Interest Rate Risk; Bond Types and Conventions; Basic Fixed Income Mathematics; Zero-Coupon Pricing and Yield Estimation; Fixed-Rate and Floating-Rate Bonds; Bond Yield Curves; Measures of Return on Investment; Interest Rate Sensitivity; Managing Portfolio Risk; Convexity; and Convertible Bonds.

For Day 3, Mr. Christian Nero Porlas, CFA and International Treasury Department Head of Metrobank, delivered the following topics: Bond Portfolio Management Models; Holding Period Yield Immunization; Bond Portfolio Management Strategies; ROPs and Foreign Denominated Bonds. The Intensive Training on Bonds is being offered by the SBEP bi-annually, in May and November. It is designed for the knowledge and appreciation of Chief Financial Officers, Treasury Managers, Bond Traders, Bank Officers, Risk Officers, Investment Managers, Trust Managers, Certified Public Accountants, Lawyers, and Individual Investors. Interested participants may call the SBEP Alumni Office at 6342820 / 6343095 / 6370912 loc. 222 or send an email to sbep@uap.asia. (Alonica R. Salazar)

sbep magazine 2014

CHARACTERS OF SBEP Class 2014

Ms. Arlene Baliong “She is an epitome of beauty, intelligence and sophistication. She has her own style in doing things - always with pride and a loving heart. A perfect leader, a good listener and a best friend...she is Arlene Baliong.” —Donna Berania Mr. Win Ballada “My first impression of Win was that he was a well-dressed intellectual. I also discovered that he is also a successful businessman. He is a CPA board examination topnotcher, writer, author, editor and publisher of several accounting books. Looks like a monopoly to me, Win! Cheers to our class VP!” —Marcel Naval Ms. Donna Berania “Donna is a crowd darling because of her infectious laughter. However, she has a heart that listens to all your worries. Ask about everything and she has a ready answer. But best of all, she is a strong woman in the truest sense of the word.” —Arlene Baliong Ms. Josephine Billiones “Approachable, confident and funny. Faced with so many challenges in this batch… Cool under heated group

discussions and interaction. Easily handled pressures from time bound submission of papers by simply not submitting them at all (next year na lang daw, sabay na kami) ….Easily handled a corporate predicament at home during our foreign trip in Jakarta. Best of all … survived the kakulitan of Clyde in class.” —Beng Lagunilla Mr. Elcid Marcelo Cayañga “Toby looks at a challenging task with Zen-like calm the same way that he approaches a round of golf. While he mostly swings in the fairway with mechanical precision, he has to come up sometimes with last minute improvised shots. What else can you expect from Toby who ad libs on the fly during dramatization. Every take is different every time but every minute is a blast nonetheless! Toby is a great team mate and even a better person.” —Clyde Moreno Mr. Alex Chua “Alex reads like the operating system of my MacBook. He is user-friendly, stable, powerful and capable of unlimited apps. The analogy, however, ends there as Alex, unlike software, has an appeal that will never be obsolete, a personality that needs no upgrade, and character that cannot be corrupted. These are the traits that have

made him a successful entrepreneur and, more importantly, a great person.” —Frankie Villanueva Usec. Adrian Cristobal “Usec Adrian is the namesake of his father, one of the great journalists not only in the Philippines but also, globally. Although I haven’t had enough opportunity to know him better, the bonding that the batch had in the Conference in Baguio was worth considering. He is a simple man and is very easy to communicate with. His immersion in SBEP is definitely a good tool that can be applied to his stint in DTI.” —Ed Malagapo Ms. Melissa Cruz “She’s fierce and fiery in class but once you get to know her, she is gentle and open to sharing her common experiences. What's so surprising is that she travels with a juice blender and shares her concoction of fresh vegetable juice of the day.” —Joy Talag Mayor Darlene Magnolia Custodio “When she has set a goal, she’s so focused on it, you can say she is driven!” —Nova Echavez, Class 2012 sbep magazine 2014

CHARACTERS OF SBEP Class 2014 his matching good looks. Beauty and Brains rolled into one good Banker. Mr. Banker, I and the rest of SBEP wants to be a Millionaire.” —Alwyn Poticano, Class 2015 Ma. Isabel Lagunilla “For Beng…the future is yet to come. Her outlooks to success are not limited to her and her sons’ academic excellence and professional development but also for countless fortunes that goes beyond these. She is a very caring, dedicated mom; hard-working executive, and a great friend. Calm and positive by nature, you know all along that in whatever comes her way, she will face it with elegant strides. Reach out for your dreams! Beng.” —Jo Billones

Mr. Roderick Danao “One cannot simply miss Ricky. He is an astute, assertive and vocal person accentuated by his intelligence with the ability to disarm friends with his simple charm. I've had the pleasure to know him, being one of my group members in Indonesia. Given his character, it was but natural for this born leader to take the helm in our group activity, taking into account the best qualities and talents of other members and moving the group to an excellent grade. On a personal note, I can say he is a good friend to have around, valuing relationships and camaraderie above anything else.” —Karlo Magpayo Ms. Ma. Liza Delos Reyes “I have met and known Liza only for two days during the SBEP conference in Jakarta. In such a short time, I find Liza nice and approachable. She is the morale booster in our group during our Projana case study. She cheerfully volunteered as the group secretary and did not mind staying up late to finish our cases.” —Melissa Delgado, Class 2008 Gen. Rex Milton Dolino “I consider Gen Dolino as the ‘General of the Masses’. He always cracks the first joke, he always starts the conversation,

humble for a man of his credentials. He studied very hard for this course, animated at the way the lecturer explains things. Vocally summarizing everything he learned every session and instantly applying it to his one true alma mater – the Philippine National Police (PNP). An epitomy of an officer and a gentleman – that’s Gen Dolino.” —Joel Doringo Mr. Joel Doringo “Joel Doringo...the beard can deceive you. He is the silent and serious type of person but once you get to know him he will always be the friend that will stand by your side. As an IT guy, he is goaloriented and never stop exploring new things. Challenges in his work excite Joel... he always wanted to do things in his own special way.”—Rex Dolino Mr. Edward Hernandez “Edward is quiet and unassuming but “still waters run deep”. He is intelligent and insightful. He knows his business inside out. He seems to be a fun person, too.” —Fred Blancas, Class 2015 Mr. Dominick Lacson “The Gentleman who sits at the back but is not backward at all. He is very witty and compelling, not to mention

GEaring up for the asean economic integration

Mr. Karlo Magpayo “Karlo is an intelligent man. He has excellent presentation skills. He seems to have insider information about so many showbiz gossips! Very fun to work with.” —Rick Danao Mr. Clarence Moreno “Clyde may have his foundation deeply rooted in Information Technology. He may have his mind busy working on his Economics Math problems or next SBEP class project or skit. But his heart, his passion, is definitely reserved for trading: stocks, futures, foreign exchange, options. Name the instrument, Clyde will trade it if given the opportunity. Compassionate, friendly, easy to joke around with, Clyde is definitely our class' most eligible bachelor! (unless of course we discover another still unmarried batch-mate!)” —Gonz Ordoñez Mr. Marcelo Naval, Jr. “He is the complete package. He is a successful entrepreneur who has distinguished himself in real-estate development, a loving family man who always finds time for his wife and children, and a good friend who happily goes out of his way to help members of the class whenever an opportunity to assist presents itself. It is no wonder that people normally gravitate around him.” —Frankie Villanueva Mr. Gonzalo Ordoñez “As the SBEP Class 2014 best ballroom dancer, Gonz has a good read of the music,

CHARACTERS OF SBEP Class 2014 great balance, timing on the beat and the ability to lead his partner with ease. As the CEO of First Metro Securities Brokerage Company, he displays a good read of the market, a balanced portfolio, impeccable timing in trading and the ability to lead his team with ease. As a person he has a good read on what is important, great family-work balance, time for people that count and the ability to positively influence people around him.” —Frankie Villanueva Mr. Alan Gabriel Parma "Alan is one of the nicest men one will ever come across. Always professional at what he does, and does them with a smile. He seems to always know how to respond well to conversations and exchanges and especially knows how to laugh and make people laugh with him when the need comes. It was really a pleasure knowing Alan and looking forward to knowing more of him in future ‘get-togethers’ of the batch.” —BJ San Pedro Gen. George Piano “Gen. George Piano is a man of few words but thinks and runs deep. He is technically proficient and a highly organized person. He may seem strict as a leader and a manager but considerate and prompt in rewarding good deeds.” —Gen. Ding Sevilla

Mr. Rodrigo Rodriguez “However short, my acquaintance with Rod was truly a memorable one. A man of intelligence and humility, he can easily embrace people while making them instantly important. He is a leader who is engaging and re-assuring. Our experience of group forecasting presentation in Baguio with his selfless one sleepless night PowerPoint preparation, truly gave us the feeling of success. Thank you so much Rod!” —Jo Billones Mr. Reginald Benjamin San Pedro “I have known BJ for over 7 years and he has come up the ranks of their family owned business to Chief Operating

Officer. BJ is hard working at a young age and has shown potential in being able to manage the business in due time as Chief Executive Officer. Some may perceive him to be unprepared for bigger tasks and responsibilities but certainly he does have the material to lead.” —Alex Chua Gen. Ferdinando Sevilla “Ding Sevilla is a man of few words, he would rather act than talk. A man who keeps his word no matter what happens. A visionary, a good friend, a brother and my buddy!” —Rex Dolino Giovanna Talag “Joy is a very conscientious, responsible, and good student (she always sits in the front row), and one who also loves to dress up! She always has a ready smile for everyone and is very warm and sincere. One cannot go wrong if she is in your group because things will get done!” —Melissa Cruz Dr. Francisco Villanueva, Jr. “Frankie is the walking "audio encyclopedia" of the class ... encased in a baritone boom box set at full volume. He can answer any question, from the definition of Economics as if lifted verbatim from the dictionary, to the usage of ERR vs NPV, to the finer nuances of a single malt, all delivered in the midst of his contagious laughter. Our PhD friend from Pampanga would constantly liven up the class with his wit, wisdom and passion.” —Gonzalo Ordoñez sbep magazine 2014

SBEP Jakarta Trip 2014

HOW I SPENT LAST SUMMER AT SBEP By Dr. Francisco Villanueva, Jr.

Day 1: April 27, Sunday The day starts early for SBEP 2014 class with some members arriving at Terminal 2 of the Ninoy Aquino International Airport as early as 5:00 AM for the 9:00 AM PR 539 flight. Boarding was on time but departure was delayed. Fortunately the pilot made up for the delay as we arrived at the Soekarno International Airport as scheduled at about 1:00 PM local time.

Within an hour, we were through immigrations and baggage claim and all set for the warm & humid Indonesian air. We were greeted outside by our Indonesian guide, Mr. Surjadjaja Tanuredja (A.K.A. Mr. Surya) – a human repository of Indonesian facts who made sure we realized the magnitude of scale of our host city in terms of population, size and economy. An hour drive in our bus brought us to our hotel, Pullman Jakarta Central Park, that was, to the delight of everyone, right beside the Central Park Mall.

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The hotel’s avant-garde retro interiors had an allure that pleased especially the more senior members of the class. After checking in and a quick visit to the mall, we were ready for mass. The Gereja Katedral Jakarta (Jakarta Cathedral), with its Gothic architecture reminiscent of the Notre Dame de Paris, was impressive and inspirational – qualities that made hearing mass there agreeable in spite of the language barrier. Food for the soul was followed by food for the body as we ate a heavy Lauriat dinner at a nearby restaurant called

SBEP Jakarta Trip 2014

Hot, hot, hot – that is the adjective that best describes the day’s academic session. The presentations were hot with formats ranging from the very academic to the very theatrical.

away from the strong current of Karlo’s free-style. The hotel’s buffet breakfast was generous, an appropriate preparation for the review session of Project Analysis with Prof. Roland Dy. As always, Prof. Dy managed to get our mind turning in preparation for the group meetings that followed. All groups played their cards close to their chest. Spouses of participants who came along took this day as an opportunity to explore the city on their own and help the local economy in the traditional Filipino way and as learned from sessions with Dr. Antonio & Dr. Abola – increasing GDP by increasing consumption (i.e. shopping). We capped the plenary session with a review session on Ethics with Dr. Vic Abola and a buffet meal at the room beside the conference venue. The day, however, was far from over as the groups continued to meet until the wee hours of the night to discuss and prepare their presentations.

Day 3: April 29, Tuesday As before, the day started with an early visit to the gym or pool for the early birds. Everybody was there for the 7:00 AM buffet with most groups clustered together to discuss last-minute details for

the group presentations. Despite efforts to appear nonchalant about the day’s session, the anticipation for the day’s presentation could be felt in the air. Before the formal session, everyone was asked to pose outside for the formal class photo. It was only 9:00 AM but the hot Indonesian summer was beating down mercilessly on the class sending all scrambling for shade after a necessarily abbreviated photo shoot session – a foreboding for heat that is to come during the session. Hot, hot, hot – that is the adjective that best describes the day’s academic session. The presentations were hot with formats ranging from the very academic to the very theatrical. Discussions were hot with participants and facilitators debating the finer points of FIRR, NPV, ethics and governance. As in nature, the session’s heat and pressure generated gems of knowledge for everyone. The later part of the day was devoted to a business networking session arranged by DTI’s Ms. Alma Argayoso with a presentation by the class’s own Usec. Che Cristobal highlighting the event. Cards were exchanged and hands were shook leading, hopefully, to future business relationships between SBEP participants and their Indonesian counterparts. A buffet dinner at the conference venue capped the day with most

Singapore Restaurant. For many members of the class, dinner was hardly the end of the day as they made time to visit the mall again before its closing time for last-minute purchases or just a stroll to shake off the heavy dinner. Day 2: April 28, Monday Aries, Arnold, Karlo, Joy, Clyde, Frankie and Lissa Guten Morgen started the day early with a visit to the hotel gym and pool. Turns out that Joy and Karlo were amphibians as they could swim forever. Clyde made the mistake of trying to swim along Joy, while Frankie just stayed sbep magazine 2014

special feature participants retiring early to recover from the rigors of the past few days.

Day 4: April 30, Wednesday

The highlight for the day, however, was the dinner at Pulao Dua. While the food was okay, what made the meal remarkable was the entertainment.

With the drama and struggles of the earlier sessions behind us, day 4 takes on a more leisurely pace as the morning’s session involved a presentation by Mr. Rodolfo Pantoja, President Director of PT Smartfren Telekom Tbk. His insights of evolving market demographics were most interesting and participants find it refreshing to see Filipinos like Mr. Pantoja at the helm of one of the major companies in Indonesia like PT Smartfren. After a heavy lunch at Restoran Miramar, the class was brought to the Indonesian National Monument – Monas. As fate would have it, it was a very hot and humid day, people had to trek through the great divide between the designated parking space and the monument, and the air conditioning at Monas wasn’t functioning properly – leaving everyone drenched in sweat and running back early for the comfort of the air-conditioned bus. Some members called it quits at this point and opted to take a cab back to the hotel. For the rest who chose to stay the course, shopping at Grand Indonesia Mall, Indonesia Plaza and Thamrin City was the reward. The highlight for the day, however, was the dinner at Pulao Dua. While the food was okay, what made the meal remarkable was the entertainment. Our very own Weng Araña, Alan Parma, Aries Supremo, Arlene Baliong, Jane Velasquez and Arni Garraton joined the Filipino band playing to rock the place. Everybody was up on their feet during their repertoire.

Day 5: May 1, Thursday As in the Philippines, Labor Day was a non-working holiday for the SBEP team. Day’s activities began with a city tour at the Old Dutch Town where we relived the colonial days of the Dutch company in Indonesia. To get the big picture of current Indonesia, we visited Taman Mini-Indonesia Miniature Park, the equivalent of our Nayong Filipino back home. After lunch at Desa Wisata Hotel, we did what Filipinos do well – shopping. This time it was at Senayan City Mall. After our last dinner at Lembur Kuring, we proceeded to Soekarno Hatta International Airport to catch our red-eye flight back to Manila. The out of the country conference was over, the SBEP program was nearing its end, but the learning and the friendship of SBEP Class 2014 were just beginning.

GEaring up for the asean economic integration

seminar

Stock Market Trading

The SBEP was pleased to offer a training seminar on ‘Stock Market Trading’ last November 29, 2013 at the Dining Hall of UA&P. It was attended by 18 senior executives from local and multinational companies in the country. The seminar was conducted by Mr. Alexander N. Gilles. He is a Certified Financial Analyst with a Masters Degree in Applied Business Economics from UA&P. He is a lecturer on the “Certified Securities Representative Course” leading to a stockbroker qualifying exam, by The Securities and Exchange Commission. He is currently a consultant at First Metro Securities Brokerage Corporation. Mr. Gilles is also the author of the book, “Guide to Entrepreneurship” (2005). The covered the following topics: (1) basic rules of savings and investment; (2) fundamental behavior of stocks and stock markets; (3) economic factors, companyspecific factors, and international capital flows; (4) how to buy stocks and funds online; (5) how to design a trading plan; (6) how to increase the odds of success via technical analysis; and (7) how to forecast company earnings and share price movements. Hands-on exercises and case studies were given for practical and immediate learning.

GEaring up for the asean economic integration

The lecturer further discussed ‘How to Trade Stocks,’ the principle of ‘Buy Low and Sell High,’ – looking at the promise and the potential, and all the risks involved. Then, a brief discussion on the ‘Principles of Good Trading’ followed – selecting a prudent entry price and determining an exit price. Mr. Gilles also emphasized ‘How to Discern Trends via Economic Trends,’ like trends in financial data – how they give a preview into the future behavior of stock prices; about detecting hints of a rally or advance warnings of a drop in share prices. This was followed by his lecture on the ‘Invisible Trend’ (the forecasts for economics and business) that affects stock prices. The seminar on Stock Market Trading is being offered by the SBEP bi-annually – in May and November. The course is designed for all those interested in the stock market (with or without background in Finance) and for players in the Philippine Stock Market and the securities industry. For the next seminar schedule, please contact the SBEP Alumni Office by email at sbep@ uap.asia or by phone at 6342820 / 6343095 / 6370912 loc. 222. (Alonica R. Salazar)

The SBEP Alumni Office organized a Kapihan last August 22, 2014 at UA&P’s Dining Hall. It was attended by 32 alumni represented by the different SBEP batches. The guest speaker was Dr. Alejó Jose Sison, Professor in Business & Ethics & Leadership in University of Navarre. Dr. Sison gave a short briefing on the “Happiness and its Effect on Social Entrepreneurship.” The objective of the Kapihan is three-fold: 1) To bring back the SBEP alumni to UA&P – All alumni from Class 1975 to 2012 are encouraged to attend the Kapihan. This will be a quarterly reunion for the SBEP alumni and their guests. 2) To get first-hand updates on what’s happening in the economy and the business environment – An invited guest speaker will start the Kapihan with

an informal / short briefing on pressing economic issues and their impact on the business sector. The attendees can freely join the interactive discussion while having breakfast and coffee. – Other UA&P economists, professors, alumni and distinguished guests from the government and private sector will be invited as speakers. 3) To provide a venue for networking with fellow senior executives on a quarterly basis. The SBEP boasts of its alumni (numbering 1550+) from hundreds of companies, representing not only top corporations, but also medium-sized, dynamic enterprises, professionals (lawyers, doctors, engineers, etc.), and government officials including the military. The diversity and level of background of the alumni contribute to a truly enriching exchange of theory, experience, and wisdom. The invitation to the next Kapihan session will be sent to all alumni through email. The SBEP alumni may bring a guest(s) to the Kapihan. Registration is for free. The only cost to the attendee is breakfast. For more inquiries on our quarterly Kapihan, please get in touch with Ms. Tata Salazar, marketing and alumni affairs manager, or with Ms. Lea Riñon, marketing and alumni affairs coordinator, by email at sbep@uap.asia or by phone at 634-2820 / 634-3095 / 637-0912 loc. 222. It’s time to be updated and re-connected! Be part of the SBEP-Alumni Loop!

SBEP Alumni Association As a member of the SBEP Alumni Association, you are entitled to the following privileges: 1. 2. 3. 4. 5.

20% discount on all SBEP Financial Seminars Copy of the SBEP Annual Alumni Magazine (to be sent by mail) Unlimited access to the UA&P Graduate School Library SBEP Alumni ID card (to be sent by mail) Copy of the Market Call (to be sent by mail every quarter) – a publication of First Metro Investment Corporation (FMIC) and UA&P Capital Markets Research Group. This highly informative newsletter gives you the current standing and a thorough analysis of the workings of our macroeconomy and the capital markets.

For those interested to join, please submit the following requirements: – Accomplished Alumni Data Form – One (1) piece 1x1 picture (preferably white background) – Annual membership fee of PhP1,500.00 (check should be payable to the UA&P-SBEP Alumni Association, Inc.) For any SBEP Alumni concerns, please call our office at 6370912 to 28 loc. 222, 6343095 or email us at sbep@uap.asia

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Strategic Business Economics Program Your Executive Edge!

“The ability to execute is useless if the business strategy is badly grounded.

With SBEP, I am much better equipped to deal with issues that stare me in the face everyday.”

– Joey A. Bermudez

SBEP 2004 Chairman & CEO Maybridge Financial Group

“SBEP makes me understand the contribution of our industry to the economy of the country.

It elevates my awareness in our responsibility to the nation.” – Chandramogan Anamirtham

STRATEGIC BUSINESS ECONOMICS PROGRAM

SBEP 2013 President and General Manager HGST Philippines Corporation

Designed for top senior executives, entrepreneurs, ambassadors, expatriates, professionals, and top government officials. Be part of a great tradition and a network of executives in an atmosphere of academic excellence and real business applications.

“Being part of the SBEP has been a family tradition. My brothers and sisters have

taken the SBEP. We LOOK forward to continue this timetested mutually beneficial relationship”

– Isidro A. Consunji SBEP 1982 President DMCI Holdings, Inc.