President's Message
Atty. Benedicta Du-Baladad Message from the President:

Benedicta Du-Baladad

To FINEX members and friends,

November 2017 Issue

We are now on the final stretch of 2017. This year has been one of the busiest and exciting for both FINEX and the country.

Earlier this month, our country was once again placed in the limelight as we hosted this year’s ASEAN Summit. The summit provided us to showcase what our country can share to the world and the creativity of the Filipino people. Indeed, the recent hosting of the ASEAN summit placed our country

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The 4 th Industrial Revolution – Are we ready?
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Manila Times(FINEX FILES)
October 6, 2017

The 4 th Industrial Revolution – Are we ready?

FINEX Files is a rotating column of members of the Financial Executives Institute of the Philippines appearing every Friday in Manila Times, business column section.

One thing is clear – the fusion of different technologies in the digital, physical, and biological worlds is disrupting businesses and organizations the world over. Commonly referred to these days as the 4 th Industrial Revolution or 4IR, most of the speakers including myself as one of the panelists, in the recently concluded Digital Strategies for Development Forum 2017 held in the Asian Development Bank agreed in unison that this is having a profound impact on the way we live, learn, work, and relate to each other.

In fact, the World Economic Forum (WEF) cautioned that the scale, scope, and complexity of this technological revolution “will be unlike anything humankind has experienced before”. “We do not yet know just how it will unfold, but one thing is clear: the response to it must be integrated and comprehensive, involving all stakeholders of the global polity, from the public and private sectors to academia and civil society”, the WEF further avers.

How the 4IR evolved started with the First Industrial Revolution which took place from the 18th to 19th centuries in Europe and America, wherein the development of mechanical production, railroads, and steam engine paved the way to the growth of iron and textile industries.

The Second Industrial Revolution, which took place between 1870 and 1914, was a period of advancement in electrical power that led to breakthrough inventions and innovations such as the telephone, light bulb, phonograph, and mass production.

The Digital Revolution heralded the advent of the Third Industrial Revolution which started during the 1980s and led by advancements in electronics, computers, automated production; and later, developments in the internet and information and communication technology. The WEF distinctly outlined three reasons why today’s transformations represent not merely a prolongation of the Third Industrial Revolution but rather the arrival of a fourth. Firstly, the speed of breakthroughs in the 4IR is exponential rather than a linear pace, as seen in developments in artificial intelligence (AI), biotech and nanotech, big data, virtual and augmented reality, and so on. Secondly, the scope of disruption is expansive that it impacts almost every industry in every country. Lastly, the breadth and depth of these transformations affect the entire systems of operations, customer engagement, product systems, and governance.

Clearly, the 4IR has the potential to improve quality of life and raise income levels for people the world over. Already, we are seeing great improvements in how consumers transact with companies and consume products and services such as music, travel, transportation, and so on. Organizations which undertook digital transformation to accelerate their business activities, processes, competencies, and models by fully leveraging on digital technologies have reported huge gains in productivity, customer engagement, and ultimately profits. On a macro level, the 4IR will bring down transportation and communication costs, make logistics and global supply chains more effective, and drive down the of trade will, which will lead to opening of new markets and ultimately economic growth.

Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world. To date, those who have gained the most from it have been consumers able to afford and access the digital world; technology has made possible new products and services that increase the efficiency and pleasure of our personal lives. Ordering a cab, booking a flight, buying a product, making a payment, listening to music, watching a film, or playing a game—any of these can now be done remotely.

In the future, technological innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity. Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth.

Like the other revolutions that preceded, the 4IR has potential downsides and challenges. One is the threat of displacement of labor due to AI. A specific example is the potential of AI to wipe out the 900,000 call center jobs in the Philippines in 3 to 5 years. Organizations which lag in digital transformation will suffer business declines, if not, outright closure, such as the recent casualty with Toys R Us.

So, the provocative question now is – is our country ready for the 4IR? We haven’t even fully capitalized on the Third Industrial Revolution, the here comes the Fourth! Internet is still costly and relatively spotty and slow, our educational system and workforce are unprepared, and many organizations lag in their digital transformation initiatives. The answer is no, we are not ready. But this is an urgent wake up call to all sectors to organize, gather up, and prepare for this coming tidal wave of change.

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of FINEX. The author may be emailed at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . The author is the President of The Engage Philippines and Hungry Workhorse, and Co- Founder of Caucus Inc. He is the Chairman of the ICT Committee of the Financial Executives Institute of the Philippines (FINEX). He teaches strategic management in the MBA Program of De La Salle University. He is also an Adjunct Faculty of the Asian Institute of Management

Managing Millenials
Mr. Ronald S. GosecoBy Ronald S. Goseco

December 14, 2017

Managing Millenials

I was recently asked by our principal how different it is to manage today’s millenials as compared to a similar group of individuals twenty years ago. They asked me this since I previously managed auto dealerships twenty years ago with individuals with the same age profile.

Will RP Fit in the Integrated ASEAN Mold?
Zoilo By: Zoilo "Bingo" P. Dejaresco III

December 13, 2017

Will RP Fit in the Integrated ASEAN Mold?

THERE HAVE BEEN REAL TRIUMPHS during the ASEAN Meeting in Manila. Sometimes, Filipinos pinch themselves if these are indeed sustainable?

The ASEAN with 600 million people and with the highest regional GDP growth rate-necessarily- attracts many seller-nations and investors. But with the ASEAN integration- with tariffs down among the ASEAN nations- this would ensure ASEAN should be for ASEANs, first.

Asian economic integration
By Mercedes B. SuleikBy Mercedes B. Suleik

Business Mirror (FINEX Free Enterprise)
December 05, 2017

Asian economic integration

On October 25 the Asian Development Bank (ADB) released a report on Asian Economic Integration and commented on the lessons learned after the Asian financial crisis 20 years ago. It stated that growing trade and investment linkages in Asia and the Pacific have helped to improve the region’s economic resilience to uncertainties in the global economic environment. Asia’s intraregional trade rose in 2016 and acted as a buffer against headwinds from uncertainties in global trade and policy. Subregional trade integration was strongest in East Asia, followed by Southeast Asia and Central Asia.

Flor G. TarrielaBy Flor G. Tarriela

Business World (FINEX Folio)
November 24, 2017


Philippine Gross Domestic Product (GDP) increased by 6.9% in the 3rd quarter but agriculture grew at a slower pace at 2.5% vs 3.0% in 3rd quarter 2016. Still, agriculture showed better growth of 4.6% YTD 2017 vs -1.3% in 2016.

Mr. George S. ChuaBy Mr. George S. Chua

BUSINESS MIRROR (Free Enterprise)
November 22, 2017


A number of months ago, I saw a Bloomberg interview of two young enthusiastic gentlemen who were the co-country directors of this relatively new multinational company called Transportify. As I was listening to the interview of Noel Abelardo and Paulo Bengson, of what Transportify was all about, I thought it was a great idea. The easiest way to explain it is if you have Uber and Grab as an app to transport passengers, you have Transportify to transport goods and packages.

The Importance of Development Finance
Mr. Benel D. LaguaManila Bulletin
MANILA BULLETIN (Business Option)
October 30, 2017

The Importance of Development Finance

Access to finance is always a daunting topic as it addresses two basic issues. Financial exclusion occurs when those denied access have economic and social return on investment better than those with regular access. The second issue is the response to concerns of inequality and the need for better redistribution of wealth.