The Philippines is forecasted to be a high middle-income country within this decade and the 18th largest economy in the world by 2050. This growth is expected to be fueled by remittances, business process out-sourcing revenues, and the demographic dividend from a young population. Given the volatile environment filled with the complex issues that we face, 2024 FINEX President Augusto “Toti” Bengzon asked: “How can we achieve our growth agenda?”
President Toti was inspired by Andy Grove’s book Only the Paranoid Survive, which said: “A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation”.
The real challenge is how we can achieve “transformational growth” in what is perhaps the inflection point that will either see us rise to expected economic success or muddle along with the rest of the world. “How do we make it happen?” President Toti then proposed three components that drive transformational growth: sustainability, diversity, and digitalization.”
The first component: sustainability. In the realm of ESG, environmental sustainability stands out as a pivotal pillar. The urgency to preserve our planet has never been more apparent, with climate change and environmental degradation posing existential threats.
The Philippine government, he said, has demonstrated its commitment on the global stage by signing key international agreements. The Kyoto Protocol in 2003 and the Paris Agreement in 2016 affirmed the government’s intention to reduce greenhouse gas emissions and combat climate change. And more recently, it has actively participated in the Conference of the Parties (COP) meetings, including COP28, where nations come together to address global environmental challenges. These efforts underscore the country’s commitment to preserving biodiversity and fostering sustainability, nationally and internationally, and encourage us to integrate environmentally sustainable practices into our daily lives.
Diversity, he said, is the condition of having different elements or qualities. It is a growth enabler, fostering an inclusive environment that values and learns from diverse backgrounds, experiences, and perspectives. Recognizing the importance of diversity acts as a catalyst for innovation and untapped potential. Diverse teams bring fresh approaches to problem-solving, stimulating creativity and leading to more holistic solutions to complex challenges. He mentioned that studies show that companies with more diverse management teams had innovation revenues 19 percentage points higher than those with below average diversity scores. In addition, inclusive companies are 1.8 times more likely to be change-ready than their less inclusive peers. He mentioned Ayala Land, Inc. where he is treasurer and chief financial officer, and how it is now led by Meean Dy, the company’s first female chief executive officer in its 35-year history. He said the company is strategically incorporating talents and experts from various fields, including digitalization, HR, and hotel operations.
For digitalization, he said that in the rapidly evolving landscape of today’s global economy, it is not a mere choice but is imperative not only for growth, but also for survival and relevance. Nations and companies face complex challenges, ranging from managing vast amounts of data, ensuring efficient and transparent operations, and enhancing engagement with customers and stakeholders. Digitalization is the key to unlocking innovative solutions for these challenges.
How do sustainability, diversity, and digitalization lead to transformational growth? President Toti said sustainability guarantees our longevity and adaptability, diversity brings depth to our perspectives, fostering innovation and resilience, and digitalization, the backbone of modern enterprises, allows us to efficiently deliver new products and services, find new ways to engage customers, and turn them into lifelong partners.
The guest speaker at the FINEX inauguration was Mariana Zobel de Ayala, executive director of Ayala Corp. She spoke about the theme “Transformational Growth through Sustainability, Diversity and Digitalization” with great insights as a woman, a daughter, a sister, wife, mother, and a woman in business. She said: “Imagine it better and make it a reality. Act with future generations in mind, evolve, stay relevant and respond to the nation’s changing needs.” She also said that “transformational growth must come with a sense of purpose and imagining how growth can lead to a better world.”
With President Toti’s leadership, we can look forward to a vibrant FINEX year. Already, FINEX meetings are lined up with Maharlika Chairman Joel Consing on Feb. 21 and Bangko Sentral ng Pilipinas Governor Eli Remolona on March 20, among many exciting and relevant ones! Congratulations also to Wilson Tan, SGV Chairman and now FINEX Foundation president, and to Michael Guarin, who is now president of the FINEX Academy. It is truly an exciting year for FINEX, and I am hoping that we will all be transformed in 2024!
The views expressed herein are the author’s own and do not necessarily reflect the opinion of her office as well as FINEX.
FLOR G. TARRIELA was former PNB chairman and now serves as board advisor. A former undersecretary of Finance, she is lead independent director of Nickel Asia Corp., director of LTG, Inc. and FINEX. A gardener and an environmentalist, she founded Flor’s Garden in Antipolo, now an events destination.