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President Ferdinand Marcos Jr.'s 2024 State of the Nation Address (SONA) presented a broad and strategic vision for the Philippines, reflecting on the accomplishments over the past year and setting the course for future development. This address highlighted several key initiatives aimed at bolstering various sectors critical to the nation’s progress. This report provides a comprehensive overview of these initiatives and delves into their significance for members of the Institute of Corporate Directors (ICD). President Ferdinand "Bongbong" Marcos Jr. delivers his State of the Nation Address (SONA) on July 22, 2024. Photo from Rappler. Key Initiatives and Developments Food and Water Security President Marcos Jr. underscored the: Ongoing challenge of high food prices, particularly rice. Highest rice yield in decades. Significant distribution of seeds, seedlings, and fertilizers to farmers. Future focus: prioritize local production, enhance technical and financial support, and implement modern farming techniques to ensure food security. Agrarian Reform The administration continues to push forward with agrarian reform: Over 130,000 land titles distributed to farmers in the past two years. Plans to expedite the partitioning of collective Certificates of Land Ownership Award (CLOA). Additional financial and technical assistance to farmers through crop insurance and modern agricultural methods. Climate Change and Disaster Risk Reduction Management (DRRM) President Marcos Jr. highlighted the country's vulnerability to climate change. Emphasized the need for proactive climate responsibility and justice on the global stage. The Philippines secured a seat on the Board of the Loss and Damage Fund. Built almost 100 evacuation centers in the past two years. Initiated operations of a Disaster Response Command Center. Completed over 5,500 flood control projects. Initiatives like “KALINISAN sa Bagong Pilipinas” to maintain community cleanliness and prevent disaster-related issues. The Department of Public Works and Highways (DPWH) is currently closing the gaps on the 3.17-kilometer Panguil Bay Bridge Project, set to become the longest sea-crossing bridge in Mindanao. Photo from DPWH. Infrastructure Development The President highlighted remarkable progress in infrastructure development: Over 12,000 kilometers of roads and more than 1,200 bridges constructed or upgraded. Key projects: Panguil Bay Bridge and the Guicam Bridge Ongoing railway projects: including the Metro Manila Subway, MRT-7, and the North-South Commuter Railway. Digital Infrastructure Significant advancements in digital infrastructure were emphasized: Completion of Phase 1 of the National Fiber Backbone. Phases 2 and 3 expected to be completed by 2026. Implementation of the National Cybersecurity Plan to safeguard systems against cyberattacks. This comprehensive blueprint aims to protect the country's digital infrastructure and ensure that the speed and quality of IT development mirror the pace and trajectory of the nation's economic aspirations. Energy Efforts to address power needs include: Development of microgrid and off-grid systems. Upgrading key transmission lines like the Mariveles-Hermosa-San Jose transmission line. Focus on ensuring reliable power supply to meet growing demand and addressing systemic power shortages. Education The administration has prioritized improving the quality of education through: Digitalization initiatives, enhancing teacher support, and refining the curriculum. Increased budget allocations for education. Expanded technical-vocational education and training (TVET). Integration of advanced learning systems in fields like robotics and artificial intelligence. TVET has been particularly emphasized, recognizing its high employability rate. The collaboration between DepEd, CHED, DOLE, and TESDA aims to incorporate TVET in the Senior High School curriculum, boosting the employability of students. Healthcare and Social Protection Expansion of PhilHealth benefits, including coverage for serious illnesses and more generic medicines. Establishment of new Urgent Care and Ambulatory Service Centers. Super Health Centers to provide primary medical services to underserved areas. Economic Policies and Investment The President underscored the: Promotion of investment-led growth through capital market reforms and green lanes. Rationalized incentives scheme under the CREATE Act. “Green-lane certified” projects totaling about three trillion pesos. Generated investments amounting to over one trillion pesos and more than 100,000 new jobs. Efforts to reduce unnecessary business costs include the removal of fees and charges by local government units for transporting goods and merchandise on national roads, urging LGUs to refrain from collecting similar fees for local road use. The OFW Lounge located at NAIA Terminal I serves as a 24/7 VIP lounge for “modern-day heroes.” Photos from PEP/House of Representatives. Labor and Employment The administration is focused on generating not just jobs but quality and competitive jobs through aggressive infrastructure development, business-friendly policies, and investment promotions. Employment rate increased to 95.9%. Notable rise in high-quality jobs and decrease in underemployment to 9.9%. Special facilities and services for OFWs like the OFW Lounge at NAIA and the Seafarer’s Hub in Manila. Efforts have been made to assist OFWs affected by conflicts and disasters and ensure their safe return home. Tourism The President emphasized the potential of the tourism sector, highlighting infrastructure and digital reforms aimed at enhancing the overall tourist experience. The focus is now on “experiential tourism,” with focus areas: food, culture, heritage, arts, education, halal and Islamic traditions, dive, cruise, farm, eco-tourism, and sports. Expanded the “one town, one product” concept to inspire high-quality products and services showcasing community history, traditions, and talents. A depiction of the maritime dispute in the West Philippine Sea, highlighting the contested areas between Vietnam, the Philippines, and China, with naval vessels from the involved nations navigating the contested waters. Photo from Inquirer. International Relations The Philippines continues to assert its rights and interests through diplomatic channels. The country secured a resolution from the United Nations promoting and protecting the enjoyment of human rights of seafarers. The administration is committed to strengthening defense through self-reliance and partnerships with like-minded states.   Strategic Opportunities and Insights for Corporate Directors The President’s focus on food security, infrastructure development, and digital transformation aligns closely with the ICD’s advocacy for sustainability and good corporate governance, offering opportunities for ICD members to promote sustainable practices and support infrastructure projects. The government's initiatives to foster investment-led growth and create a business-friendly environment provide opportunities for ICD members to engage in strategic investments particularly in renewable energy, digital infrastructure, and manufacturing sectors. The administration’s commitment to enhancing education quality and expanding TVET is crucial for developing a skilled workforce, providing ICD members with the potential to access a more skilled and qualified workforce, which can enhance productivity, innovation, and overall business performance. ICD members can contribute by supporting educational programs and training initiatives that align with industry needs. The expansion of healthcare benefits and the establishment of new health centers underscore the importance of corporate involvement in healthcare initiatives, where ICD members can advocate for programs that improve community health outcomes and governance in the health industry. Lastly, the emphasis on digital infrastructure and cybersecurity aligns with ICD’s goals of promoting the strategic integration of technology with business objectives, efficient resource and risk management, and continuous innovation. By aligning their corporate strategies with the government’s vision, ICD members can play a crucial role in fostering sustainable growth, enhancing corporate governance, and supporting the overall development of the Philippines.

Dear ICD Fellows:   This year, our Annual Membership Meeting will be held on Wednesday, 16 October 2024 , from 2:00 PM – 4:00 PM .   As always, part of the AGMM will be devoted for the election of Trustees to fill four vacancies  in the Board of ICD and serve a full three-year term .   Part of the AGMM will be devoted to the election of Trustees to fill four vacancies  in the Board of ICD replacing the following Trustees whose terms will end this year:   Ms. Tomasa H. Lipana Atty. Pedro H. Maniego, Jr. Mr. Jonathan Juan DC Moreno Ms. Maria Celeste S. Narciso   The group profile of the remaining Trustees can be accessed in this link: ICD Board of Trustees Profile . This may serve as a guide to nomination of a Fellow in good standing that will complement the current Board.   As a reminder, only Fellows in Good Standing (paid current membership dues) as of 25 August 2024 shall be eligible to nominate or be nominated  for the upcoming 2024 Elections of ICD Board of Trustees.   Moreover, only Fellows in Good Standing (paid current membership dues) as of 15 October 2024 shall be eligible to vote  for the upcoming 2024 Elections of ICD Board of Trustees.   Please click this link ( Fellows and Life Fellows in Good Standing  as of this date) for verification of membership status. If your name does not appear and you are a Fellow in Good Standing, please contact membersrelations@icd.ph  immediately. We highly encourage members not in good standing to please settle their membership dues to participate in the Trustee Nominations and Elections.   Attached to this email is the ICD’s Guidelines for the Nomination and Election of Trustees  for the nominations of Trustees who will serve for three years starting January 1, 2025. Kindly refer to the said guidelines and submit your Nomination Form on or before Monday, 26 August 2024 . Please bear in mind that a candidate needs to be nominated by two (2) Fellows in good standing .   The final list of Fellows who are deemed qualified to run by the NOMELEC for election as Trustee at the 2024 AGMM will be released electronically on (Friday), 6 September 2024 . This will be sent together with the guidelines for electronic voting for the 2024 AGMM.   Please feel free to reach out to Ms. AJ Lugtu at membersrelations@icd.ph  in case you have any questions regarding the nomination process.   Thank you for your attention on the matter.   Yours  sincerely,   Atty. Teodoro Kalaw IV Corporate Secretary   Noted by:   Atty. Jose Tomas C. Syquia Chair – Nomination and Election Committee (NOMELEC) Note: Nomination Forms and other necessary materials links for the Nominations for Annual Elections 2024 are sent via email to all ICD Members. For inquiries, kindly email at membersrelations@icd.ph

NOTICE & AGENDA, ANNUAL GENERAL MEMBERSHIP MEETING OF THE INSTITUTE OF CORPORATE DIRECTORS 16 October 2024, Wednesday, 2:00 PM to 4:00 PM NOTICE IS HEREBY GIVEN that the Annual General Membership Meeting of the Institute of Corporate Directors (ICD)  will be held on, Wednesday, 16 October 2024, at 2:00PM  via videoconference using Zoom platform as well as onsite in Metro Manila / To Be Confirmed.   The Agenda items are as follows: 1.       Invocation and National Anthem 2.       Call to Order 3.       Proof of Notice of Meeting & Certification of Quorum 4.       Induction of Members 5.       Approval of Minutes of the 11 October 2023 Annual General Membership Meeting 6.       Message of the Chairman 7.       Report of the Executive Director 8.       Messages from the Trustees 9.       Report of the Approved Audited Financial Statements as of 31 December 2023 10.   Appointment of External Auditor for Fiscal/Calendar Years 2024 & 2025 11.   Ratification of all Acts and Resolutions of the Officers and Board of Trustees from 01 October 2023 to 30 September 2024 12. Ratification of the Amendment of By-Laws: Separation of Officer Positions of Board Chairman and President 13.   Election of the Board of Trustees (announcement of results of Online Voting) 14.   Open Forum 15.   Closing Message from the Chairman Emeritus 16.   Adjournment   Election of Trustees   Four seats on the Board of Trustees are up for election this year 2024 to fill up the corresponding vacancies in the Board due to the conclusion of regular terms of four trustees. The official Notice of Nominations will be sent to members on 26 July 2024  and the nomination period will run from 26 July 2024  until 16 August 2024 . The final list of nominees will be announced on 30 August 2024 , and thereafter election and voting will follow. Similar to last year, voting shall be online. Instructions for the online elections will be emailed to Fellows in good standing on 30 August 2024 .   The names of duly elected trustees will be announced during the Annual General Membership Meeting.   Thank you and we look forward to your participation on 16 October 2024.   Sincerely,   Atty. Teodoro Kalaw IV Corporate Secretary Note: Registration and materials for the 2024 Annual General Membership Meeting are sent via email to all ICD Members. For inquiries, kindly email Aj Lugtu at alugtu@icd.ph .

24 July 2024 Dear ICD Members, Please be informed that Executive Director Valentin A. Reyes has tendered his resignation effective 31 July 2024. We acknowledge and thank Val for his contributions and initiatives during his tenure. In the interim while looking for a replacement, the Executive Committee consisting of Vice Chair Ida Tiongson, Treasurer Marivic Españo, and I will take care of managing the operations of ICD. I will assume my concurrent position as President to serve as the link between the Board and Management until a new Executive Director is on board. Let us wish Val the best in his future endeavors. Best regards, Pete Chair, Institute of Corporate Directors

by: Thea Angelie O. Angara ICD  CG Advocacy Team Lead Institute of Corporate Directors On June 10, 2024, the Institute of Corporate Directors (ICD) conducted a courtesy visit to Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. ICD was represented by Chairman Pedro Maniego Jr., Vice Chair Ida Tiongson, Trustees Mr. Bing Matoto, Ms. Maricelle Narciso, Mr. JJ Moreno, Executive Director Valentin Reyes, and Mr. Roberto Bascon Jr. The visit highlighted the banking sector’s exceptional performance in the 2023 ASEAN Corporate Governance Scorecard (ACGS) Assessment, emphasizing its steadfast dedication to good corporate governance. Both parties expressed their commitment to fostering closer partnerships aimed at the continuous improvement of the performance of banks in the ACGS. This includes potential collaborations and initiatives to support institutions in enhancing their corporate governance practices. The commendable performance of the banking sector not only underscores its strong corporate governance framework, but also establishes a benchmark for excellence across industries. ICD’s eventful meeting with the BSP marks a pivotal step towards strengthening both organizations’ commitment to the enhancing corporate governance standards in the Philippines.

by: Ma. Aurora D. Geotina-Garcia, FICD Fellow Institute of Corporate Directors Ms. Ma. Aurora D. Geotina-Garcia emphasizes the importance of bridging the gender gap in financial literacy to enhance women's financial autonomy and independence. She highlights key insights and strategies from the Global Summit of Women, including the importance of financial planning, investment strategies, and addressing socio-cultural influences. For detailed insights into empowering women through financial literacy, access the full article (click me) or read below. We often assume that women, like men, are fully equipped and have the financial savvy to plan their personal and business finances. However, various studies have observed the reality that there is a gender gap in financial literacy that persists globally, and which poses challenges affecting women’s personal and professional development, including investment and retirement planning. An Organisation for Economic Co-operation and Development (OECD) Survey in 2020 showed that men possess higher financial literacy and economic investment levels compared to women, impeding women’s ability to achieve financial autonomy and independence. With women’s longer average life expectancy of 73.8 years versus 68.4 years for men according to the study conducted in 2021 by Saloni Dattani and Lucas Rodés-Guirao of our World in Data, it is imperative for women to be more proactive in financial planning and investment strategies for retirement savings, living expenses, healthcare costs, and other potential long-term care needs. FINANCIAL STRATEGIES AND INVESTMENT PLANNING FOR WOMEN At this year’s Global Summit of Women (GSW), an annual event that brings together influential women leaders, entrepreneurs, and experts from around the world, which was held in Madrid from May 9 to 11, I had the privilege of moderating a panel entitled “Financial Strategies and Investment Planning for Women.” The panel discussed the various challenges that women experience in planning their financial future and provided insightful interventions and strategies to improve the financial well-being of women. Ana Lorrabaquio — a veteran in financial markets and a director in the Institutional, Wealth and Corporate Business at Principal Mexico, one of the most active and fastest growing finance companies in the Mexican financial market operating through the businesses of retirement fund, investment funds, annuities, and insurance — presented her insights on personal financial planning and the economic role of women. She discussed the importance of financial planning in creating a greater sense of well-being, despite the current challenges faced by women, such as earning less than men as a result of the persistent gender pay gap and the difficulties in understanding investment information. Ms. Lorrabaquio encouraged women to be proactive by reviewing their financial situation, investing wisely, and planning for retirement. She also advised that women should seek the assistance of a financial advisor to guide them achieve financial success. Alicia Muñoz Lombardia, Deputy Secretary of the Board and Head of Legal and Public Affairs at Santander Spain, currently the largest bank in Spain in terms of assets and global presence, discussed the barriers faced by women in accessing capital which has discouraged many women from becoming entrepreneurs. However, she added that women should be aware of funding options, such as government programs, bank loans, crowdfunding, and angel investors. Ms. Lombardia further emphasized the importance of financial education and entrepreneurial opportunities for women. Thus, her organization has invested significantly in collaborating with universities to support women entrepreneurs through financial education, mentoring, and other resources. Mary McKenna, an angel investor and co-founder of Awaken Hub, a platform supporting women-led businesses in technology sectors, shed light on the low investment in women-led companies in deep tech innovation. Ms. McKenna stressed the importance of women’s active involvement in early-stage investing and highlighted the benefits of joining or starting an angel syndicate, which provides access to due diligence teams, community events, and personal development opportunities. Angel investing is an investment option available to women aside from the traditional instruments, like equities, bonds, and other forms of securities. The panelists likewise discussed financial management and investment strategies for women, such as the need to balance and establish clear boundaries, especially in family-owned businesses, between personal and business finances as women entrepreneurs are expected to also manage household finances as “keepers of the funds or finance managers,” and the need to promote women’s access to capital for business, such as in the technology sectors, to support gender equality in finance. Finally, due to cultural and societal norms which influence women’s attitudes towards financial management and investment, they all agree on the need to address these socio-cultural influences to foster greater financial empowerment among women through collective actionable steps and initiatives to ensure sustained progress towards greater financial literacy and empowerment for women. A CASE STUDY ON FINANCIAL LITERACY The Philippine Women’s Economic Network (PhilWEN), through its inaugural project with the Philippine Business Coalition for Women Empowerment (PBCWE), comprised to date of 45 large and influential local corporations who commit to promote gender equality in the workplace, recognizes the urgent need to address this gender gap in financial literacy. To train and empower women to navigate their financial journey with confidence, PhilWEN, in partnership with Insular Life, a member of PBCWE, conducts training using modules on “Financial Literacy 101: Shaping Her Future – The Sheroes’ Runway to Financial Freedom,” “Investment Planning,” and “Estate Planning.” Using these modules, we capacitate women with practical knowledge and financial skills, thus paving the way towards a more equitable and financially literate society. ADDRESSING THE GENDER FINANCIAL LITERACY GAP The global dialogue on women’s economic empowerment to inspire positive change in the financial landscape for women is necessary to create a more inclusive and equitable financial platform for women in the Philippines and beyond. The gender gap in financial literacy is not just a matter of numbers and statistics; it is about the lives and futures of women everywhere. If we do not act now, we are missing out on empowering countless women and depriving them of the opportunity to achieve financial independence, security, and a better future for themselves and their families; we are denying them the knowledge and skills they need to navigate the complex world of personal finance, make informed decisions, and plan for retirement. This will continuously perpetuate the current system that holds women back, limits their access to investment opportunities, and reinforces the harmful notion that financial management is not their domain. It is high time to face the issue, recognize the dreams and aspirations of women, and ensure that they have the tools and support they need to thrive financially. Disclaimer: On June 11, 2024, “Empowering women through financial education” was published. It was authored by Ma. Aurora Geotina-Garcia, Fellow of the Institute of Corporate Directors. You can read more about this article through this link: https://www.bworldonline.com/opinion/2024/06/11/600771/empowering-women-through-financial-education/

by: Erika Rose Baltazar ICD Corporate Governance Analyst Institute of Corporate Directors On June 13, 2024, the Institute of Corporate Directors (ICD) paid a courtesy visit to the Department of Trade and Industry (DTI). The delegation, led by ICD Chairman Atty. Pedro H. Maniego, Jr., and Executive Director Engr. Valentin A. Reyes, included Board of Trustees members Ms. Tomasa H. Lipana and Ms. Ma. Victoria C. Españo. The visit aimed to explore potential collaborations with DTI and to enhance corporate governance initiatives for Micro, Small, and Medium Enterprises (MSMEs). During the meeting, both parties emphasized the importance of focusing on Small and Medium Enterprises (SMEs). They also discussed the possibility of collaborating with SB Corporation to support microfinance companies in improving their corporate governance practices. To facilitate this collaboration, ICD and DTI will work together to develop and implement targeted corporate governance programs for SMEs and microfinance companies. Attendees from DTI: Mr. Alfredo E. Pascual, Secretary of the Department of Trade and Industry Ms. Emma C. Asusano, Director of Small and Medium Enterprises Development

by: Mr. Gil Genio, FICD ICD Fellow Institute of Corporate Directors We all know the issues of the day: persistent inflation that affects customer spending, new technologies that disrupt how business gets done and how customers interact with brands, new products and services from new competitors, and a changing country demographic that challenges how we hire and retain talent. Companies can take many strategies and actions to succeed in this environment. However, growth-focused businesses are best positioned to be resilient and thrive today. For all businesses, creativity and innovation are the necessary ingredients for growth. Growth is what attracts, keeps, and engages executives and talent. Growth conveys a winning culture to the organization. Growth allows a company to set the pace, keeping competitors at bay. Most importantly, growth is an endorsement from customers that a company's products and services remain relevant. The consequences of neglecting growth are dire. A company that fails to prioritize growth risks a decline in revenue or income, which can lead to negative sentiment among customers, suppliers, and other stakeholders. This is a risk that no business can afford to take lightly. But how and where do we find growth? This is not a question to be taken lightly. A company must carefully consider and choose one or more of several strategic approaches to generating growth, each requiring thoughtful planning and execution. One approach is to re-align the business portfolio through an acquisition and divestment program. This can involve acquiring businesses in similar or complementary markets or even partaking in vertical integration. And over time, some businesses might perform better under new owners. Such divestments can inject capital for new growth opportunities. The second approach is to find new revenue growth from existing "core" businesses. Rebuilding the core business is often necessary to deal with disruptions caused by technology, changes in customer behavior, or new entrants. Are there markets and customers we need to serve better with our products and services? Are there ways to extend our products to different customer segments? The third approach is entering related or complementary markets, sometimes called "adjacent" businesses. What capabilities does the company have that would be relevant or be a competitive edge when used differently? Amazon realized its e-commerce IT infrastructure could be used by other companies looking to cut costs and quickly respond to market changes. Globe Telecom leveraged its mobile customer relationships and sales channels to enter financial services with GCash. The last approach is finding completely new business opportunities through innovation and investment. While this is often associated with start-ups and venture capital, many companies and even conglomerates in the Philippines are experimenting with new ways to serve unmet customer needs. In this approach, a company looks at its resources and capabilities to build new revenue streams. Telcos, for example, are leveraging capabilities to create healthcare ventures. Another example is that poor financial inclusion, married with mobile technology and apps, led to the creation of digital banks. Few took notice that many years ago, the United Nations declared April 21 as the "World Creativity and Innovation Day" to acknowledge that "innovation is essential for harnessing the economic potential of each nation and the importance of supporting mass entrepreneurship, creativity and innovation which create new momentum for economic growth and job creation and expand opportunities for all, including women and youth.” All these approaches—rebalancing a business portfolio, turbo-charging existing revenue streams, fostering creativity, and harnessing innovation and growth—take time and effort. A company and its board must bravely allocate the necessary talent, time, and resources. They should take bold actions, especially in these times of uncertainty when it is far too easy to be just defensive. In my past firsthand experiences with all four approaches to finding growth or finding new revenue opportunities, I can share the following seven key lessons: Communicate the company's "burning platform." This will focus everyone's attention, from shareholders to boards to leaders to employees, and enable the hard work required. Truly understand the customer beyond demographic or psychographic profiles. In the words of the late Clayton Christensen, who extensively researched disruption: “A ‘job to be done’ is a problem or opportunity that somebody is trying to solve. We call it a ‘job’ because it needs to be done, and we hire people or products to get jobs done”. Adapt the growth strategies, innovation structure, and process to the company's situation. Is the core business or revenue stream under competitive attack? Are there new competitors, and what are they after? Is the core business subject to disruption because of the macro environment, customer changes, or technology adoption? Is the company in a race to get the first customers or users? Create a disciplined stage-gate process, with milestone-based funding of new initiatives and regular progress monitoring. Innovation is not just about brainstorming and doing the sexy new initiatives, but rather the consistent tests, discarding ideas, and funding the following stages until fruition. Facts win—and in the absence of facts, test. The loudest voices or senior people often dictate what a company must do next. We usually forget that if we are in a business-to-consumer (B2C) business, "we are not the customer." In business-to-business (B2B), product discovery and selection involve many people, making it harder to discern buying behavior. Accept that there is no silver bullet; innovation often takes years. Even M&A's ability to generate new revenues does not produce instant results, and we cannot take the hard work of integrating and retaining key talent for granted. Finally, setting the tone from the top with an engaged leadership team is crucial. By involving as many people as possible in the company’s 'burning platform' and the various initiatives being explored or implemented, we can ensure that everyone feels valued and integral to the company's operations. Over the past decade, we have witnessed how technology, changing demographics, and continued investment have transformed how we lead our lives and interact with each other, leading to continued economic growth. Look closely: all four approaches to finding growth have fueled them. Let’s not forget Christensen’s words: “If you frame your business in terms of products you’re trying to sell, life comes and goes, and you get supplanted by other products and technologies,” he says. “But if you deliver something that does the job well, it will open up opportunities to use new technologies as they emerge. What your business is about is doing the job better and better.” Let us all be brave in seeing growth and creating the positive impact our products and services can have on our fellow Filipinos. Gil Genio is a retired Ayala and Globe executive.  His last role was Globe’s Chief Strategy Officer (CSO) (2010-2021) as well as Chief Technology and Information Officer (CTIO) (2015-2021).  He is currently an Independent Director at publicly listed companies GT Capital Holdings (GTCAP) and Puregold Price Club (PGOLD).  He is a member of the Management Association of the Philippines, the Analytics Association of the Philippines, and a Fellow Member of the Institute of Corporate Directors.

by: Ma. Aurora D. Geotina-Garcia, FICD Fellow Institute of Corporate Directors Ms. Ma. Aurora D. Geotina-Garcia highlights the critical need for gender-specific policies to support Women-owned/led MSMEs (WMSMEs) in the Philippines, addressing challenges like limited access to credit and digital economy barriers. For detailed insights into policy recommendations and the implementation of the Policy Toolkit, access the full article here (click me) or read below. In a column entitled “The journey of MSMEs: Are we there yet?,” I discussed the challenges that MSMEs — Micro, Small and Medium Enterprises — face in their entrepreneurial journey and proposed recommendations for policy makers. This follow-up will focus on Women-owned/led MSMEs (WMSMEs). On Dec. 29, 2022, the MSME Development Council (MSMEDC), chaired by the Department of Trade and Industry (DTI), adopted the following definition of WMSMEs: Women-owned businesses are businesses where at least 51% of the company is owned by a woman or women. Women-led businesses are businesses where at least 20% is owned by a woman or women; AND at least one woman acts as Chief Executive Officer (CEO), or Chief Operating Officer (COO), or President or Vice-President; AND at least 30% of the Board of Directors is composed of women. This is a significant milestone for WMSMEs, as the absence of a formal definition and lack of sex-disaggregated data, which can enable women to access financial products and services, grants and other benefits available, may hinder the growth of women’s entrepreneurship. The absence of disaggregated data impedes the formulation of evidenced-based and responsive policy measures, programs, projects, and activities of the public and private sectors which can support access to finance, markets, networks, technology, and digitalization. While national level disaggregated data is currently unavailable, in its 2019 List of Establishments, the Philippine Statistics Authority (PSA) recorded over 1 million business enterprises operating in the country with 99.5% being MSMEs. The same year, the DTI recorded a total of 630,688 business name registrations of which 55.8% were women-owned/led. Further, DTI data from 2019 revealed that 64% of the MSMEs assisted by its Negosyo Centers were women owned or led. The National Association of Training Centers for Cooperatives (NATCCO) noted that 64% of the 5.8M individual members of coops are women. Policy Toolkit on Strengthening Women’s Entrepreneurship The United Nations’ Economic and Social Commission for Asia and the Pacific (ESCAP), under the Catalyzing Women’s Entrepreneurship (CWE) Program, in partnership with the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME), initiated the “Policy Toolkit on Strengthening Women Entrepreneurship in National MSME Policies and Action Plans.” The project aims to advocate for women entrepreneur-centric policies and initiatives in the ASEAN region and strengthen the entrepreneurial ecosystems that foster women’s entrepreneurship. The Toolkit helps policymakers evaluate and enhance women’s entrepreneurship in national MSME policies, providing guidance through its framework and methodology. It may assist regulatory bodies, financial institutions, and business associations in understanding the policies required to advance women’s entrepreneurship. Toolkit Pilot in the Philippines Within the ASEAN, the Philippines was chosen as the pilot country for the implementation of the Toolkit. The process began with an orientation workshop on Feb. 1, followed by two intensive workshops where participants conducted a self-assessment. The Philippine Women’s Economic Network (PhilWEN) is the only private sector member of the Steering Committee, which includes government agencies involved in MSME development. The assessment using the Toolkit revealed challenges faced by Filipina entrepreneurs, including limited access to credit and skills, difficulty in navigating the digital economy, compliance issues with program requirements, and the added responsibilities of childcare and household duties while running a business. What then must the government do to address these challenges? The workshops noted some recommendations worthy of consideration: Policymakers need to implement and enforce existing laws and policies which have been designed to support WMSMEs and design new policies which will enhance their capacity to contribute significantly to the economy; Intentional and deliberate support for women entrepreneurship should be provided, possibly through a National Strategy for Women Entrepreneurship; Data on MSMEs should be segregated by gender, age, industry, and location, with government agencies aligning their definitions and data collection systems; Measurable KPIs and targets should be established, and efficient monitoring and evaluation systems should be implemented; Government should intensify information and awareness programs for WMSMEs and facilitate access to available programs and services; and, Collaboration among government agencies and private sector involvement should be strengthened, by institutionalizing the Policy Toolkit Steering Committee into the WMSME Development Committee with senior level GAD Focal Points and private sector representatives. Why a Gender Lens in MSME Development? With women-owned and led businesses comprising at least 50% of MSMEs, and a Philippine population of almost 50% females, there is no question that women’s entrepreneurship should be supported and given the attention that it deserves. Women can be financially empowered and independent if they are able to start, grow, and sustain their businesses. Filipino women entrepreneurs are committed to fostering inclusivity and diversity within the business ecosystem which can enhance overall productivity and innovation. Women entrepreneurs are resilient and, with adequate support, can navigate economic uncertainties and volatilities, like the global pandemic. When women entrepreneurs succeed, they are more likely to reinvest in their families for education, nutrition, health and well-being, and support communities by providing services and employment opportunities. Studies show that $5 trillion is missing from Global GDP because of the gender gap in entrepreneurship, and that global GDP could rise by up to 6% if women and men participated equally in entrepreneurship. However, without proactive action, it will take at least a century before the world can achieve economic equality among men and women. We cannot leave WMSMEs behind as the ripple effects of their success can contribute directly to the country’s economy and the local communities. The power of women entrepreneurs and their contributions to prosperity cannot be ignored. Shall we wait another century or take action now? Disclaimer: On May 07, 2024, “Strengthening women entrepreneurs” was published. It was authored by Ma. Aurora Geotina-Garcia, Fellow of the Institute of Corporate Directors. You can read more about this article through this link: https://www.bworldonline.com/opinion/2024/05/07/593046/strengthening-women-entrepreneurs/

by: Ernesto Cordero, MICD In the diverse tapestry of nations, immigrants have long been the threads that weave innovation, cultural richness, and economic prosperity. Highly competent immigrants, particularly from the Philippines, bring a unique blend of skills, knowledge, and ambition to their adopted countries. Beneath the surface of their accomplishments lies a set of distinct challenges that deserve our attention and consideration. Filipino immigrants’ multifaceted challenges will be analyzed more deeply, exploring the intricacies of credential recognition, cultural adaptation, networking, language proficiency, and underemployment. This will attempt to shed light on these issues to foster greater understanding and inspire comprehensive solutions. One of the most significant obstacles highly competent Filipino immigrants face is the recognition of their foreign qualifications, which is best described as an uphill battle. Many immigrants from their home countries arrive with advanced degrees and extensive professional experience. They often encounter the frustrating reality that their credentials are not fully recognized in their chosen new homeland. The need for recognition is not just a matter of professional pride but a necessity for career advancement and financial stability. Even with advanced degrees and extensive experience, many highly competent immigrants must further their education or retrain to meet local standards. This process can be time-consuming and financially burdensome, delaying their career progression and leading to frustration and demoralization. The requirement for additional degrees and courses can entail significant costs, burdening immigrants already grappling with the challenges of settling in a new country. The frustrating paradox often faced by these immigrants is the requirement for local work experience. Many employers prioritize candidates with a history of working in the local job market, effectively relegating skilled immigrants to entry-level positions despite their extensive qualifications. This mismatch between skills and job placement hinders career progression and leads to underemployment. The cultural adaptation is an intricate dance that can be especially challenging for highly competent Filipino immigrants. They often face a steep learning curve in understanding the local workplace culture, norms, and unwritten rules. This can result in feelings of isolation, frustration, and even imposter syndrome. The workplace culture in their home country might significantly differ from that in their new destination. Communication, decision-making processes, and even office etiquette nuances can differ vastly. Subtle cultural differences in communication styles and idiomatic expressions can pose challenges. These cultural nuances sometimes hinder effective communication and are considered beyond basic skills. As a result, highly competent immigrants may find themselves unintentionally at odds with their colleagues or superiors, impacting their professional relationships and overall job satisfaction. To address these challenges, mentorship programs, cultural sensitivity training, and support networks can play a vital role in helping highly competent Filipino immigrants integrate more smoothly into their new environments. By offering guidance and insights into the local culture and workplace dynamics, these initiatives can foster a sense of belonging and contribute to the long-term success of these immigrants. Focus on cultural fluency can help bridge these communication gaps. It enhances the ability to communicate effectively and promotes a deeper understanding of the cultural context in which interactions occur. This, in turn, can lead to more harmonious professional relationships and better integration into the local community. Networking is vital to career growth and professional development, but highly competent Filipino immigrants may struggle to build meaningful networks in their adopted countries. They often lack the established connections and social capital that local professionals possess. These connections are valuable for career advancement and a sense of belonging by building connections in a new community. Networks can become more diverse and dynamic, benefiting all members. Immigrant professionals can bring fresh perspectives and unique experiences to these networks, enriching the community. Even though many highly competent Filipino immigrants were well-established professionals in their home countries, possessing extensive networks may contribute to their career advancement. Upon arriving in their destination countries, they must often rebuild their networks from scratch, which can be time-consuming and challenging. The need for more connections can hinder their ability to immediately access job opportunities that align with their capabilities. The undesirable reality is underemployment, which is a pressing issue for highly competent Filipino immigrants. Despite their impressive qualifications, many immigrants end up in lower-skilled jobs or positions that do not align with their expertise. This can lead to diminished job satisfaction, financial strain, and self-esteem issues. The inability to secure suitable positions based on their skills and qualifications can be disheartening. It represents a significant loss for the host country, as these immigrants' talents and potential contributions remain untapped. To address this issue, governments, regulatory bodies, and employers must collaborate to streamline credential recognition processes, offer bridge programs to help immigrants adapt to country-specific requirements, and prioritize integrating skilled immigrants into the workforce. Recognizing these immigrants' unique struggles and needs is essential for harnessing their talents and contributions to enrich societies, foster innovation, and strengthen economies. Governments and destination countries must take steps to ensure that their immigration policies align with their goals of attracting and benefiting from the skills and expertise of skilled newcomers. Streamlining the credential recognition process, offering bridge programs, and prioritizing integrating skilled immigrants into the workforce are vital steps in this direction. Promoting diversity and inclusion within professional networks and organizations can help immigrants build the connections they need for career advancement. Highly competent Filipino immigrants are not just valuable assets to their adopted countries; they often embody the global pursuit of opportunity and growth. By addressing their multifaceted challenges, we can unlock their full potential and harness their talents to create a brighter future. It is time to recognize that highly competent immigrants' success is a testament to their resilience and reflects our collective capacity for inclusivity and progress. When we remove the hurdles they face, we open the doors to a more prosperous and harmonious society for everyone. _____________________________________________________________ Prof. Ernesto O. Cordero, Ph.D. in Business Administration; Fellow, Royal Society of Arts (RSA), London, England, U.K., MICD (Institute of Corporate Directors- Philippines), Chartered Fellow, The Royal Chartered Manager Institute, CMgr. FCMI, London, U.K., Certified Manager (CM), Institute of Certified Professional Managers (ICPM)- VA, U.S.A., Chartered Manager/ Canada Institute of Management (CIM) / C.Mgr. National Director- Toronto, ON, Canada, Senior Fellow, Royal Institution of Business Administration (SFRIBA), SINGAPORE. Post-Doctorate (Ph.D.) Research Scholar in Interdisciplinary on Contemporary Social Issues, Saint Paul University / University of Ottawa, Ottawa, Ontario, Canada Email: ecord084@uottawa.ca ; cordero.ernesto@gmail.com LinkedIn: https://www.linkedin.com/in/ernesto-cordero-81060a3a/ Disclaimer: On November 29, 2023, “The Multifaceted Challenges of Highly Competent Filipino Immigrants Globally” was published. It was authored by Ernesto O. Cordero, A Member of the Institute of Corporate Directors.

by: Ma. Aurora D. Geotina-Garcia, FICD Fellow Institute of Corporate Directors Ms. Ma. Aurora D. Geotina-Garcia talks about her viewpoint on Secretary Frederick Go's presentation about improving the Philippines' investment environment at the Share PHIL meeting. It covers initiatives like capital market reforms and law amendments to boost economic growth and position the Philippines as a top investment destination in Asia. For the full article access it here (click me) or read below. “The Philippines is open for business.” These were the parting words of Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) during the First General Membership Meeting of Share PHIL on January 26, 2024. Following the “whole of government approach,” the OSAPIEA was created through Executive Order 49 to ensure effective integration, coordination and implementation of the various investment and economic policies and programs of the government. Speaking on the theme of “Driving Sustainable Economic Development,” Secretary Go shared the various initiatives and priorities of the government to make the Philippines a top investment destination. Boosting the Philippine stock market With respect to the development of the capital market which is aligned with SharePHIL’s advocacies, the key objectives are: to reduce friction costs, improve liquidity and enhance ease of doing business. In line with these objectives, major reforms have been instituted such as the shortening of the settlement cycle from T+3 to T+2, shortening of the IPO processing to strictly adhere to the 45-day timeline for processing registration statements, simplifying the IPO application documentary requirements and implementing short selling, 27 years after this was first proposed. To further support the growth of the capital market, ongoing reforms include the reduction of sales tax from 0.6 percent to 0.1 percent, standardization of the withholding tax on dividends to 10 percent through proposed House Bill 9277, allowing the 15-minute after hours trading at VWAP through proposed amendments in the trading rules and guidelines and encouraging more IPOs and listings as the country has one of the fewest listings in the Asian market. Unlocking growth and potential investment opportunities The three key pillars of the drive to promote investments are: ease of doing business, simplifying processes and adopting a whole of nation approach. After 29 years, the BOT law was amended in December 2023 to revitalize PPPs and encourage unsolicited proposals while giving the original proponent the right to match comparative proposals and encouraging joint ventures as a PPP modality. The ongoing review of the CREATE and TRAIN Laws aims to restore certainty, protect investments and simplify incentives. Changes include restoring the powers of Investment Promotions Agencies (IPAs) such as the BOI and PEZA, simplification of VAT rules and clarifying sunset provisions. The Philippines has taken steps to improve its business environment by implementing several regulations and laws. EO 18 creates a “Green Lane for Strategic Investments” to streamline approval processes and enhance ease of doing business. EO 32 aims to expedite permitting for telecom infrastructure, expanding connectivity and creating jobs. The Ease of Paying Taxes Law simplifies tax administration, strengthens taxpayer rights and introduces reforms like taxpayer classification and enhanced refund processing. These measures aim to create a more conducive environment for businesses and boost economic growth. Priority industries Secretary Go identified five priority sectors: semiconductors and microelectronics, mining, agriculture, pharmaceuticals and steel. In the semiconductor industry, he aims to enhance assembly, testing and packaging while introducing higher value processes like design. He also emphasized the significance of promoting nickel and copper mining to accelerate exploration and follow Indonesia’s example in downstream processing. For agriculture, he highlighted the need to boost production and improve logistical chains for food security. He also stressed the need to lower healthcare costs through the pharmaceutical sector and the importance of the steel industry for growth. Investment performance to date Though some of the recent reforms are still in their nascent stage, these are good signals to the global investing community that the country is serious in its efforts to create a conducive investment climate for economic prosperity. Signs of improving investor sentiment is the performance of the Philippine stock market, measured by the Philippine Stock Exchange Index (PSEi). The PSEi reached an intraday-high of 7,070.72 on April 2, 2024, the highest in 52-weeks, though it has pulled back to 6,745.46 on April 5, 2024. In a report dated March 25, 2024, HSBC Global Research is optimistic about the Philippines’ ability to attract foreign direct investments (FDIs) in the coming years. According to HSBC, the country has implemented reforms since 2018 that have improved the business climate, making it more attractive to investors. As a result, the government is optimistic that the Philippines can become a premier investment destination for foreign businesses in Asia and achieve its goal of becoming the second top destination for FDI in Southeast Asia by the end of 2028. A recent US Investment Mission last March headed by Secretary of Commerce Gina Raimondo, announced investment commitments of over US $1 billion in high impact industries prioritized by the government such as renewable energy, electric vehicles, digitization and communication. The Department of Trade and Industry (DTI) reported that 46 projects valued at $14.2 billion are in various stages of preparation and implementation, representing 20 percent of the pledges made by foreign investors. Additionally, the DTI approved P1.4 trillion worth of investments in the first quarter of 2024 through the Green Lane program, bringing the total number of projects under this program to 59 since 2023, with an aggregate value of P1.9 trillion. Most of these projects involve renewable energy. There is no doubt that the country is moving in the right direction. The challenge is to keep the momentum and be resolute in increasing the Philippines’ attractiveness as an investment destination. We must build on our strong growth outlook and tell the world that “the Philippines is open for business.” Disclaimer: On April 16, 2024, “The Philippines is open for business” was published. It was authored by Ma. Aurora Geotina-Garcia, Fellow of the Institute of Corporate Directors. You can read more about this article through this link: https://www.philstar.com/business/2024/04/16/2347915/philippines-open-business

Mr. Bing Matoto discusses the study conducted by the Institute of Corporate Directors (ICD) together with Malaysia on how Filipino board members view handpicked directors as less engaged due to traditional mindsets and a lack of open discussion about strategic priorities. He emphasizes the need for proactive boards with impartial assessments, director education, talent management strategies, and ESSG integration for effective addressing of diverse challenges. For the complete article, click (here) or continue reading below. If you are or have been an independent member of the board of directors or trustees of a for-profit or non-profit private or public corporation in the Philippines, you may likely have witnessed a scenario wherein the handpicked directors of the principal owner would generally be not too participative or oppose propositions of non-independent directors appointed by the main principal during board deliberations and would just assent to motions for approval by the director allied with the principal or chairman who would typically be either the main principal or his scion. This penchant for docility seems to be particularly prevalent in family-owned or tightly-held corporations. Is this trait born of our Pinoy “hiya” culture or our predisposition to not confront or be combative, particularly in an open meeting? Is this just unique to the Philippines? For our local good governance adherents, particularly the main actors in governance, meaning the board and management, how their views compare regionally is a topic that has not been covered in any forum, written or otherwise, that I am aware of. Well, the good news is that we now have a report that can serve as a benchmark for the future focus on good governance. The Institute of Corporate Directors recently released survey results on the current thinking across the regions as of November 2023. ICD collaborated with Malaysia, which took the lead in the study. The study had 335 participants composed of board members and management, the majority (83 percent) of whom have revenues of $200M to $500M. Apart from Malaysia, which accounted for 37 percent (%) of the survey, other participating countries included the Philippines, which constituted 12% of the respondents; Vietnam 11%, Singapore 4%, Indonesia 3%, Thailand 15%, Myanmar 9%, Brunei 6%, and Cambodia 1%. And what were the findings? Surprisingly, most board members' mindsets are still premised on yesterday’s focus, and they have not really crafted more current strategies and priorities relevant to the key risks and issues confronting organizations presently. More particularly, there is a perceived widespread lack of prioritizing, managing, and mitigating identified threats. In other words, it's still a business as in the past of “as usual” mindset. To be effective corporate stewards, however, boards must have the ability to constantly reassess and realign strategies, moving from the traditional to a more futuristic-oriented approach to strategies in a Volatile, Uncertain, Complex, and Ambiguous environment marked by a depressed global economic environment and potentially highly explosive geopolitical flashpoints. The survey also highlighted a high incidence of misalignment between the board and management on key operating issues due to inappropriate board architecture and outdated culture, which resulted in a lack of open and objective discussions of strategic priorities. Equally pressing is a call for boards to be more progressive and forward-looking, able to identify a rapidly shifting business landscape that necessitates diverse skills and broad knowledge and cultivate a culture of open dialogue among directors and with management to provide effective and credible oversight. To achieve this, boards must submit themselves to an objective evaluation of skills gaps analysis, board deliberations, and decision-making processes, preferably by professional third-party evaluators. In this regard, constant retooling of directors through further education is imperative. Critical as well as directors is the organization’s talent recruitment, management, development, and preservation policy to ensure the non-disruption of business operations. Finally, in an era of heightened awareness of Environmental, Social, Sustainability, and Governance concerns, boards must be fully aware, suitably educated, and have deep knowledge of these issues. The ESSG agenda should be clearly reflected and critically integrated into an organization’s strategic planning and must go beyond empty lip-service gestures such as greenwashing or greenhushing. Disclaimer: On April 16, 2024, “2024 ASEAN Board Trends” was published. It was authored by Mr. Bing Matoto, a Fellow of the Institute of Corporate Directors’ Board of Trustees. You can read more about this article through this link: https://tribune.net.ph/2024/04/16/2024-asean-board-trends