Track record of reinvention, resilience seen key to survival
Amid the massive economic damage caused by the coronavirus pandemic crisis, this pandemic may be a turning point for change and an opportunity for people and institutions to reinvent themselves and rebuild economies to new heights, business tycoon Jaime Augusto Zobel de Ayala said.
In a speech during the Arangkada Forum on Tuesday, the chief of the country’s oldest business house also said short-term gains and comforts might be sacrificed—as many private firms have already done—to focus on far-sighted solutions toward a recovery that would allow businesses to remain relevant to the country’s changing dynamics.
Both the private and public sectors would have equally important roles to navigate this health, economic and humanitarian crisis, he added.
“Companies that exhibit a track record of reinvention and resilience across multiple economic cycles are better positioned to attract capital and investors. Of late, there is also a growing number of investors who demand a mindset of sustainability as a criterion for investing in a venture or a company,” Zobel said.
Beyond environmental, social and governance or ESG criteria, Zobel said he was referring to sustainability in its broadest sense—where to be successful over time, enterprises need to commit to be adaptively relevant to changing consumer needs, give a fair return on capital, make a meaningful, positive impact to our local communities, and protect the environment for future generations.
During this time of risk-aversion, Zobel said he was comforted that the Ayala group had continued to attract strategic investments, which he said was likewise an encouraging sign about and for the Philippine economy. Ayala Land, Bank of the Philippine Islands, Globe Telecom and Manila Water raised $3 billion in combined proceeds from various domestic and international capital-raising initiatives in the last few months.
“The road ahead will not be easy or straightforward. But we believe there are fundamental ways that we can support the recovery of our country, participating in a whole of society approach. First, by effectively managing the health situation; second, by increasing the ease of doing business, and third, by restoring and encouraging consumer confidence,” he said.
First, the business tycoon said it was imperative for both business recovery and consumer confidence that the health situation be managed.
He noted that the private sector was continuing to work with the government to ramp up the country’s fight against COVID-19 through Task Force T3, which was initially mandated to build up testing and treatment capacity, but has since expanded greatly to include data management, tracing, local government unit training and now citizen education on minimum health standards.
While developments on the COVID-19 vaccine front are welcome news, Zobel said this was but a first step toward a comprehensive strategy that included a multivaccine portfolio and a multiyear approach, supported by a well-thought framework for supply and distribution.
“Our commitment extends —beyond our employees and their dependents—to the community at large, prioritizing those most in need. Our task extends—beyond procuring vaccines—toward helping optimize the end-to-end supply chain and distribution logistics. All of these things that address health-care issues will go a long way in creating the kind of environment that we need for recovery,” he said.
Zobel also recognized the efforts of the government to improve the ease of doing business in the country such as by improving the approval processes for permits and right-of-way acquisition.
“Aside from fostering the ease of doing business, a second crucial piece is ensuring the predictability of policy and the regulatory environment. Business thrives in an environment where the rules are clear, consistent and fairly applied. Enshrining stability and predictability, I believe, will set the Philippines alongside our peers when countries will compete for investments to boost their recovery in a post-COVID world,” he said.
For consumer demand to return, Zobel said it was imperative to create an environment where Filipinos would feel safe, financially secure and confident about the prospects of the future.
He encouraged businesses to find ways to collaborate, to multiply not divide, and to commit to finding solutions to the critical “pain points” of society, including and especially the inequalities that might worsen as a result of the pandemic. —Doris Dumlao-Abadilla INQ
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