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June 2014 Issue




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ASEAN Insights

Who’s Afraid of ASEAN 2015? Let’s Be Honest About What ASEAN Can and Cannot Do Towards ASEAN Economic Community 2025 Foreign Investment: Key to Philippine Growth in 2014

We Transcend Cover Story

Dr. Stephen Zuellig: Pioneer ASEAN Business Leader Leading Development Management in Asia

AIM News

Napoleon L. Nazareno, MBM ’73 Named Best Regional CEO AIM Named Latest Member of the Graduate Management Admission Council AIM Hosts Book Launch and Lecture on ASEAN Economic Community

Alumni News

AIM Alumni Meeting in Bhutan FAIM Holds Annual General Meeting for 2014 FAIM: The Bridge of Alumni Chapters with AIM and the World AIM Alumni Association elects Wing Palmiery-Bayoneta as new Chairperson


MBM 1973 Turns over Donation to AIM Visitacion Mendoza, MBM 1984 Receives AIM Alumni Leadership Fund Award Alumni Donate to AIM’s 50 in 50 Campaign AIMAS Donates Books to AIM Library


MBM ‘74: Living the Values An Exhilarating Team Roller Coaster Ride!

Class Notes

46 AIMLEADER E D I T O R I A L T E A M Greg Atienza


Susan Africa-Manikan ASSOCIATE EDITOR


Maritess Aniago-Espiritu Bea delos Reyes Jennifer Jalandoni Annaliza Alegre


Haji Zulkifly Baharom Sanchita Basu Das Catherine C. Hartigan-Go Gary Grey Cielito F. Habito Jennifer Jalandoni Marilyn Juliano-Luciano Susan Africa-Manikan Rose Cheryl R. Orbigo Krizia Eleni Patrocinio Rodolfo C. Severino Lalaine Rodriguez-Valdes Cesar E. A. Virata CONTRIBUTORS



Romeo Catap, Jr.


Jovel Lorenzo Amy Nerona Jen Jalandoni


Lexmedia Digital PRINTING

Dr. Ricardo Lim Dean of the Institute Dennis Firmansjah



Marvee Bonoan

Augusto Antonio Serafica, Jr.

Perpilili Vivienne Tiongson




The AIM Alumni Leadership Magazine (AIM Leader) is a semi-annual publication of the Asian Institute of Management with editorial office at the Alumni Relations Office, Asian Institute of Management, 123 Paseo de Roxas, Makati City, 1260, Philippines. Telephone No: 8924011 Telefax: 8937410 Email: aimalumni@aim.edu. Online version is available at http://issuu.com/aimleadermagazine.


Copyright 2014, AIM Leader. All rights reserved. Reproduction in any manner, in whole or in print, in English or other languages, without written permission is prohibited. ISSN 1908-1081


We live in exciting times. The establishment of the ASEAN Economic Community (AEC) is fast approaching. With the goal of creating a single market and production base through a free flow of services, investment, skilled labor, goods and capital, businesses are already taking note. Business schools, however, are not. There is a growing vacuum of ASEAN management education, and it is this that the Institute is taking note of. To capitalize on this opportunity, AIM is focusing on ASEAN, by developing the expertise that the global world needs. This is articulated in our new vision of becoming the global source for ASEAN talent, insights and wisdom. What does this mean? The region will need a new brand of leaders who can respond to the demands of what the integration will bring. It is this that AIM responds to. Already, many projects have been put in place at AIM to provide opportunities to expand knowledge and share invaluable insights. In September 2013, the ASEAN Leaderspeak was launched through the AIM Policy Center with former Philippine President Fidel V. Ramos as speaker. New cases are being developed to provide relevant discussions in the case rooms. The Center for Development Management, now the Zuellig School of Development Management is continuing its Development at Work Series featuring officials from ASEAN and dialogue partners. EXCELL is looking at new partnerships in the ASEAN for nondegree courses. Our degree program faculty are already incorporating ASEAN cases and industry notes into their classrooms. To show their support for the AIM ASEAN strategy, the Alumni Association of AIM, Philippine Chapter (AAAIM) has partnered with the Institute to organize the 2nd Asian Business Conference (2nd ABC) on June 26-27, 2014. With the theme “2015 Approaching: Priming for ASEAN Integration,� the 2nd ABC aims to provide a platform to discuss opportunities and vital considerations for ASEAN as it becomes a regional economic community. It endeavors to differentiate itself among the various fora on ASEAN by asking the hard questions and striving for a more actionable approach. The conference outcomes will be shared with policy makers, business groups, key stakeholders from the region, and the ASEAN Secretariat as well, to lay bare the thought leadership and excellence that the Institute has been known for. Apart from reputation, AIM is all about quality. With these initiatives, we look forward to contributing a large extent of our insights, talent and wisdom to the ASEAN Economic Community, as we look forward to a progressive future for our society, our region and the global community as well.




By Cielito F. Habito


often hear the lament that we Filipinos are not as mindful as our neighbors appear to be of the impending closer integration of the Southeast Asian economies into the ASEAN Economic Community (AEC), to culminate less than two years from now. I have heard none of our candidates for national office in the coming elections address the topic, for example, in the way it figures in public discussions within our neighboring countries. And yet, this move of the 10 nations that make up the Association of Southeast Asian Nations (ASEAN) promises to have profound implications within and across their respective economies.

A bit of a background is in order for those of us who have not followed this issue closely, if at all (and that probably means more than nine out of every 10 Filipinos). The ASEAN leaders adopted the AEC Blueprint in November 2007, with the vision to “establish by 2015 a highly competitive single market and production base for its ten member economies that promotes their equitable economic development and facilitates their integration with the global community.” The following are the blueprint’s key elements: First, free flow of goods by reducing or eliminating import tariffs, facilitating trade, and enhancing key trade agreements already in place. Second, free flow of services across member-countries, particularly business and professional services, construction, distribution, education, environmental services, health care, maritime transport, telecommunication and tourism. Third, free flow of investment, by consolidating various investment agreements already in place into the ASEAN Comprehensive Investment Agreement. Fourth, freer flow of capital by moving faster toward an integrated ASEAN capital market, and by expanding a regional foreign exchange reserve pool, now amounting to $240 billion, established to deal with financial crises. Fifth, freer flow of skilled labor through mutual recognition agreements initially on seven professions, namely medical, dental, nursing, accountancy, engineering and architectural services, and surveying. Other measures further supplement the above, such as strengthened competition policy and consumer protection, transASEAN infrastructure development, and small and medium enterprise development. These various initiatives promise to affect the member economies in differing ways. The reality is that there are and will always be differential impacts across countries arising from these various moves to promote integration of our economies. Numerous studies have already shown that overall impacts will be positive. But the same studies consistently find that some economies stand to gain more than others, and in certain cases, some economies may be hurt. Furthermore, there will be winners and losers within individual economies from certain policy reforms that closer regional economic integration requires. These winners and losers must be clearly and deliberately identified, for our countries to properly gear up for ASEAN 2015. As differential impacts are inevitable, the premise and rationale for pursuing these measures is that the winners will ultimately outweigh the losers. ASEAN as a group, and its member-countries individually, must develop creative mechanisms that will permit losers to be effectively compensated by the winners. This could be effected, for example, through the governments’ tax and expenditure systems or through creative transfer schemes, in ways that could achieve winwin outcomes for all. turn to page 16



ore and more people, especially in the business sector, are asking whether the ASEAN Community can possibly be realized by 2015, as agreed upon by ASEAN leaders in both 2007 and 2009. Mindful of the possible impact on their bottom lines, ASEAN business leaders are even more specific: can the ASEAN Economic Community (AEC) be achieved by 2015? And will regional businesses face stiffer competition?



By Rodolfo C. Severino


ASEAN INSIGHTS One of the three pillars of the ASEAN Community (along with the ASEAN Political and Security Community and the ASEAN Socio-Cultural Community), the AEC is generally taken to refer to the desired free flow of goods and services, or the substantial integration of the regional economy and, therefore, increased regional competition. ASEAN is still far from being economically integrated as a region. And there is little prospect that it will be fully integrated, as envisioned, in the near future, much less by 2015. But whether or not the AEC is achieved by 2015 should not be held against the literal rendering of the specific measures to realize ASEAN economic integration, as provided for in the Strategic Schedule appended to the AEC Blueprint. Rather, the plan to realize the AEC by 2015 should be looked at as a reaffirmation of the ASEAN leaders’ aspiration for, and commitment to, efficiency in trading, market openness and links with the international community. The year 2015 should be considered not as a hard-and-fast target, in which ASEAN, its objectives and the way it conducts business are suddenly transformed. Rather, it should be regarded as a benchmark to help measure ASEAN’s progress toward regional economic integration. It should, however, still be recalled that ASEAN member countries have committed themselves to carry out certain measures that are intended to lead to regional economic integration within a given timeframe. While ASEAN should not be condemned for its members’ failure to make good on their commitments, any failure to deliver will likely lead to a loss of credibility and could mean that member countries fall further behind in the global competition for export markets and foreign direct investment (FDI). ASEAN will undoubtedly miss a number of targets defined in the AEC Blueprint, but the ASEAN spirit is still going strong. Moreover, the AEC should not be considered in separation from the other two components of the ASEAN Community: ASEAN’s supreme achievements have been in the political and security areas. By building confidence and dispelling mutual suspicion between members through frequent meetings and other cooperative activities, ASEAN has made Southeast Asia’s impressive economic growth possible. This has, in turn, enticed major global powers to seek, for strategic and economic reasons, relationships with


the Association as a group. Some observers may be disappointed by ASEAN’s failure to ‘resolve’ legal sovereignty and jurisdictional disputes involving member states, but they forget that ASEAN is not an adjudicating body and was never meant to function as such. The task of raising ASEAN’s public profile belongs to the ASEAN Socio-Cultural Community, and is essential if this and the AEC are to be effective or even realised. Partly for this reason, some observers have deplored the low level of ASEAN

2015 should be considered not as a hard-and-fast target...Rather, it should be regarded as a benchmark to help measure ASEAN’s progress toward regional economic integration.

awareness among ‘the people’, forgetting the fact that building awareness of any regional association takes time, that the level of regional awareness and identity in Southeast Asia is higher than in most other regional associations of sovereign states, that ASEAN’s expansion to include today’s 10 members took place only in 1999, and that many Europeans are aware of the European Union because, thanks to this organization, they can legally live, work and/or study just about anywhere in Europe — conditions that affect the daily lives of people in Europe, but are absent in Southeast Asia. By all means, let us think and talk about ASEAN, but on the basis of the current reality and the present facts. Let us acknowledge what ASEAN is and is not, what ASEAN can and cannot do. Rodolfo C. Severino is the head of the ASEAN Studies Centre, Institute of Southeast Asian Studies, Singapore. He is a former ASEAN secretary-general. This article was written for the East Asia Forum and a version of it was first published by The Straits Times in Singapore on 3 January 2014. It is reprinted here with the permission of the author.


s ASEAN moves closer to 2015 in its bid to build an economic community as envisioned in its first Blueprint, there will be increasing discussions about the organization’s possibilities beyond that crucial year. Should ASEAN have a second regional economic vision that builds on its earlier efforts? The answer is a definitive ‘yes’.



By Sanchita Basu Das



Regional economic integration in ASEAN is gathering momentum, creating potential for a seamless competitive market of more than US$2.0 trillion. This is because building a community is an ongoing process in which new agreements and declarations will be needed in light of global political and economic changes. Moreover, ASEAN countries are at different developmental stages, meaning that the deepening of economic cooperation will require a judicious but steady approach. What can a new AEC Vision look like? To start answering this question, we have to focus on ASEAN’s strengths and weaknesses. At the same time, opportunities and threats after 2015 need to be recognized. STRENGTHS AND WEAKNESSES ASEAN is a growing market of 600 million people with a combined GDP of US$2.1 trillion. The region’s robust economic growth is primarily driven by its demographic dividend fuelling domestic consumption, as well as investments in productive sectors. These factors suggest confidence among international investors in ASEAN’s economic prospects. The countries’ strengths range from natural resource-based production to highly capital-intensive industries (electronics, textiles, automotive sector). Collectively, the region has a highly competitive production base, stemming from relatively good infrastructure and low wage skilled workers. Investors also benefit from ASEAN’s geographic location between India (South Asia) and China and Japan (East Asia) which, in turn, helps it to participate in the Asian production network. Consistently strong emphasis on education over the years has put ASEAN ahead of many emerging markets in meeting the needs of international businesses. Progressive liberalization policies contribute to maintaining ASEAN’s global competitiveness and this has made the region an ideal location for international firms to do business. Following the implementation of AFTA (ASEAN Free Trade Area), which has seen ASEAN-61 countries applying zero tariffs on 99 per cent of goods and the CLMV2 countries trading 98.6 per cent of goods at 0-5 per cent of tariff rate, ASEAN is now moving towards establishing the ASEAN Economic Community (AEC) by 2015. This promotes ASEAN not only as an integrated market but also as a single investment destination. The ASEAN Charter has also


conferred legal personality upon the regional grouping. However, while the preferred ‘ASEAN Way’ has allowed for maximum flexibility, taking into account changing domestic circumstances, the diversity of ASEAN members has made it harder for the organization to reach consensus. Some countries in ASEAN are also at risk of falling into the ‘middle income trap’. This represents a stage where a country is stuck at a relatively comfortable per capita income (US$7,500 to US$10,000) but cannot seem to take the next big step to become a developed nation. Another ASEAN weakness is the slow progress in domestic reforms and this has resulted in a lack of incentive for the private sector to fully utilize regional preferential measures. Despite ASEAN FTA

Table 1: GDP Growth Forecast (in %) of ASEAN vs Rest of the World (2013-2018) Source: author’s compilation; IMF World Economic Outlook, April 2013

being in place for the past two decades, the overall utilization rate is around 22 per cent for the region. In addition, many ASEAN countries (Singapore, Thailand, Malaysia, Indonesia and the Philippines) have a rapidly ageing society. The region also suffers from a weak institutional structure. Regional economic integration in ASEAN is gathering momentum, creating potential for a seamless competitive market of more than US$2.0 trillion. ASEAN is reaching out to establish FTAs with China, Japan, India, South Korea, and Australia-New Zealand, re-emphasizing its position as a major production base in the world market. It is also committed to deepening intra-regional economic integration with participation from the private sector. Over the years, with its development programs, ASEAN members have achieved substantial poverty next page, please

TOWARDS ASEAN ECONOMIC COMMUNITY 2025! reduction and the formation of a middle-income population. ASEAN is registering rapid growth in services and knowledge-intensive industries such as tourism, hospitality, education and biotechnology industries. The growing demand for infrastructure is opening new opportunities of investment and employment in the region. Given rapidly rising health care costs in many ASEAN countries due to ageing population, opportunities exist for mutually beneficial cooperation in health care activities, and in generic drugs. The rising affluence of the workforce has strong implications on demand for life-style consumer goods and financial products. However, ASEAN is still dependent on external demand and continues to be vulnerable to protectionist policies despite various efforts aimed at increasing domestic demand. Any slowdown in the US, the EU or the China market has significant implications in terms of GDP and employment growth for the ASEAN economies. The export competition posed by Chinese goods in the important markets of the United States and Japan is a major concern for regional policy makers. The region also faces some competition from India in the sphere of business process outsourcing, as both are popular destinations for lower-skilled jobs. The

simmering tensions in the South China Sea, a critical trade route, also threaten trade and stability in the region. Additionally, bird flu or a SARS outbreak poses a big risk to public health in the region. ASEAN also faces new challenges like global warming and climate change and these have implications for food security in the region. Nevertheless, these challenges will compel member-countries to shore up their strengths and fix their weaknesses. The growing competition from China, and to a lesser extent from India, will encourage ASEAN to hasten regional integration. A NEW AEC VISION Taking into account these strengths and weaknesses (refer to Figure 1 for a summary), what are the variables that ASEAN should look at if it is to deepen its economic cooperation after 2015? The new AEC Vision must serve three regional objectives: (i) it should be economically desirable; (ii) it should be administratively and politically acceptable; and (iii) it should be developmentally achievable. A region is ‘economically desirable’ when its export industries span multiple countries, depending on their comparative advantage. Many economic assets, such as natural resources, agricultural next page, please

Figure 1: Consolidated Analysis of ASEAN’s Strength and Weaknesses

Source: author’s contribution



The new AEC Vision must serve three regional objectives: (i) it should be economically desirable; (ii) it should be administratively and politically acceptable; and (iii) it should be developmentally achievable. continued from page 9

lands, industries, recreational opportunities, a better quality of life, and high levels of innovation and entrepreneurship, are shared across the region. In order to serve this objective, ASEAN must build on what has already been achieved under the three pillars of the 2007 AEC Blueprint — single market and production base, a competitive economic region and a region connected to the global value chain. Looking at ASEAN’s strengths and weaknesses, leaders need to work on the following issues. Avoid the middle-income trap and raise economic competitiveness ASEAN countries like Malaysia, Thailand, the Philippines and Vietnam are either in or are about to enter the middle income trap. In order to help these countries, ASEAN needs to invest in knowledge, innovation and human resources. The governments’ main focus should be to increase economic competitiveness through strong institutions, efficient infrastructure, better health, education and training, efficient labor and financial markets and more research, development and innovation. Enhance connectivity to facilitate trade Trade facilitation refers to a full set of at- and behind-the-border policies, designed to ease the movement of goods across borders and hence reduce trade transaction costs. With a decrease in tariff barriers, the importance of trade facilitation is likely to be a significant feature of the international economy in years to come. ASEAN economic integration can enhance regional demand and deliver sustainable growth only when the policy makers address restrictive non-tariff measures, complicated and time-consuming customs procedures, cross-country differences in legal and regulatory regimes and poor transport infrastructure. In the future, ASEAN needs to increase its connectivity to other economies in the Asian region (China, India, Japan, South Korea, Australia, and New Zealand). Explicit focus on services sector liberalization ASEAN should give explicit attention towards increasing services sector trade and investment across


borders. This is because sectors such as Information and Communication Technologies (ICT) can impact on producer services like transport, communications, finance and business services, which are then linked to ASEAN manufacturers for participation in international supply chains. Public-Private-Partnership Mode of Investment After preparing a high-class regional investment document like the ACIA, ASEAN should pay more attention to the investments. For an investor, there is no difference between an investment in goods and an investment in services. Both go hand-in-hand. Also, ASEAN is promoting the PPP model of funding for its big cross border infrastructure project. It is in the best interest of ASEAN to deliver on a regional PPP investment document. Deepen financial sector cooperation Although ASEAN will not seek financial and monetary integration anytime soon, it has discussed an ASEAN Bond Market Initiative for promoting longterm investment and financial stability. This will be an extended process. Nevertheless, it is worthwhile for ASEAN to look for greater cooperation in the monetary and financial sector. Empirical studies have shown that monetary cooperation strongly affects trade and investment flows. Identify new priority integration sectors Beyond 2015, ASEAN should move up the value chain of production and identify new priority integration sectors. This can for example be the food processing industry, since agriculture contributes around 50 per cent to Myanmar’s, and 33 per cent to Cambodia’s GDP. The food-processing sector contributes 3.5 per cent and 13.5 per cent of total GDP in Indonesia and the Philippines respectively. The maritime or ship building industry can also be priority sectors. Malaysia and Singapore are emerging fast after China, South Korea and Japan as the world’s largest shipbuilding nations. Other industries where ASEAN can have comparative advantage are in film making, healthcare devices and hospitality. next page, please

TOWARDS ASEAN ECONOMIC COMMUNITY 2025! Expand free trade area (FTA) partners Continuing with its motto of open regionalism, ASEAN can look for expanding its FTA partnership to the USA and the EU. This will also serve the final goal of the Regional Comprehensive Economic Partnership (RCEP) agreement to achieve an FTA for the Asia-Pacific. The above recommendations will allow the new AEC Vision to be economically desirable. Second, deeper economic cooperation must be ‘administratively and politically acceptable’. This implies that measures adopted to achieve economic integration should not involve large administrative costs, especially where less developed member countries are concerned. Moving to a new phase of integration, ASEAN should be more mindful of its less developed members. It should insist on sharing a common vision not only among the trade and foreign ministries of the member countries but also among key agencies (customs, telecommunication, transport, health, central banks) and among provincial and municipal governments. However, if the promises made for an economic community are not politically acceptable, it risks slowing down the implementation process and the regional organization may lose its credibility. This is a pertinent issue for ASEAN, because even if ASEAN has a good regional document (such as the ASEAN Comprehensive Investment Agreement or Mutual Recognition Agreement of Professionals), there is little evident support in the form of domestic reforms. Such support can sometimes be embedded in slowmoving legislations. ASEAN should therefore seek new modalities of regionalism that lean more towards deepening co-operation, reducing rigidity and inculcating more pragmatism. Last, and most crucial, any economic integration should lead to economic development i.e. ‘developmentally achievable’. This builds on AEC’s original third pillar of equitable economic development. ASEAN should continue with its efforts to promote SMEs in the region and tackle the difficulties of capital and knowledge through a combination of ‘hard’ measures, such as direct investment; and ‘soft’ ones, notably the provision of business support services, training, an innovative environment, financial engineering and technology transfer, as well as the creation of networks and clusters. In order to narrow the developmental gap in the region, ASEAN should look for new modalities. One

possible way is a nationalistic approach where funding and necessary support are provided to targeted countries and to targeted industries. Another drastic possibility is for ASEAN to establish a regional development bank, which will help nurture regional identity and solidarity. This bank can channel its lending to less developed areas. Moving ahead, ASEAN should address some 21st century issues in its new economic blueprint, such as climate change, environment protection, green technology and food security. OTHER CROSS-CUTTING INITIATIVES One of the cross-cutting measures that ASEAN must look at beyond 2015 is the issue of governance. Strategic and coherent planning at all levels is a vital first step. This will need to be supported by good governance. In order to achieve this, it is necessary for ASEAN countries to strengthen institutional capacity, and performance and transparency of public administrations. The next AEC vision should consider linking issues from other ASEAN Pillars — the security-political pillar and the socio-cultural pillar. This should for example involve the maintaining of ASEAN Centrality across all three pillars or making sure that the movement of labor is present in both the economic and socio-cultural pillars. For the future, ASEAN must also strengthen its economic scorecard so that it can serve as an unbiased assessment tool for the extent of integration among its members and for the economic health of the region. It should also provide relevant information about regional priorities and in this way foster productive, inclusive and sustainable growth. Moreover, these scores should create incentives for improvement by highlighting what is working and what is not. This entire framework is depicted in Figure 2 (see next page). TIMELINE FOR THE NEW VISION ASEAN should not look further than to 2025 as a deadline for its next vision statement. This is because the global economy is rapidly changing. ICT is paving the way for innovation, increased production and rapid diffusion of ideas in technology. In this scenario of changing circumstances, ASEAN should make continuous adjustments to its strategies and, therefore, should not take too long to realize its next vision statement. Moreover, ASEAN has had a history of moving its deadline. This happened in January 2007, when the Leaders decided to hasten the establishment of the AEC by 5 years, and moved the deadline to 2015. next page, please


ASEAN INSIGHTS continued from page 11

Figure 2: AEC 2025 - Objectives and Priorities

Source: author’s contribution


Indeed, December 31, 2015 is going to be a historic milestone for ASEAN when it announces the establishment of an economic community. The AEC will not look like the European Union. The institutional and the international economic environment facing ASEAN in the 21st century is far different than that of the European Economic Community (EEC) in the 1950s. What ASEAN will deliver is an FTA plus arrangement, meaning that there will be an increase in the flow of goods, services and investment across borders with additional provisions on labor and capital. With


its Plus 1 FTA, AEC will be viewed as an outwardoriented community. AEC 2025 should aim for an economically desirable, politically acceptable and developmentally achievable region. Delivering on its promises will help ASEAN collectively, not only to gradually transform itself from a passive participant on global rule-making to an active decision-maker on a global platform but also help ASEAN to maintain its Centrality in a future FTA of the Asia-Pacific. Sanchita Basu Das is an ISEAS Fellow and Lead Researcher (Economic Affairs) at the ASEAN Studies Centre, ISEAS, Singapore. This article is reprinted with permission from the author.


he Philippine economy is likely to register a GDP growth rate of 7 percent in 2013. This comes even after many challenging events throughout the year, including the US tapering announcement, territorial disputes in the West Philippine Sea with China, and the calamities that hit several areas in the central and southern Philippines.



By Cesar E. A. Virata, former Prime Minister of the Philippines

13 13

ASEAN INSIGHTS continued from page 13

2013 saw consumption levels maintained and robust construction activities in both the government and private sectors. The services sector continued its projected growth of about 13 per cent, and manufacturing also increased by about 10 per cent, though agriculture weakened towards the year’s end. For 2014, the country’s urgent priority is to rebuild in a better way the areas devastated by natural forces. Given the connection between global warming, climate change and natural disasters, the Philippines must become better prepared to deal with these challenges. The magnitude of damage from natural disasters in 2013 is estimated to be equivalent to the country’s yearly total infrastructure budget of about 3.5 per cent of GDP. But the Philippines’ infrastructure deficiencies are so great that there are plans to increase outlays on infrastructure to 5 per cent of GDP by 2016, with private sector involvement. Reconstruction will contribute to an increase in GDP for 2014, but this growth will only restore what was destroyed, not add to what was lacking before. And while financing for reconstruction is assisted by grants and loans from foreign governments and international financial institutions, there will still need to be a shift of government resources away from the original budget to current urgent reconstruction priorities. More foreign direct investment is needed in 2014 to sustain growth momentum. Various investment obstacles and possible reform measures must be resolved and implemented soon, otherwise the Philippines could miss out on investment opportunities, notwithstanding favorable ratings for improvements in governance achieved so far. Portfolio investments can help to some extent, but this could prove destabilizing as well because of frequent in- and outward capital flows. A number of restrictive provisions in the 1987 constitution are one impediment to foreign investment. In particular, pressure to pass constitutional and statutory amendments that would allow for participation in the ASEAN Economic Community 2015 and the Trans-Pacific Partnership is mounting. Foreign investors have also been deterred by problems in expanding power plant capacities, with investors unable to find reliable electricity cooperatives for distribution of their electricity output, leading to delays in commitments and the risk of energy deficiencies during peak periods. Still, in the manufacturing sector foreign investment is showing positive trends, with the Philippine Economic


Zone Authority having been successful in attracting investment thanks to simplified taxation and the removal of local government red tape. It is different story in the resources sector. The Philippines is known to be rich in mineral resources but the national government’s ongoing administrative and legal review has slowed down all major projects. Only the small mining groups continue to operate, employing crude ways of mining and processing that are bad for health and the environment. In a similar manner, there has been a congressional review of incentives given to investors. A successful closure to all these reviews is desirable soon, so a more definitive investment policy will prevail in the long run. It is necessary for government plans to emphasize inclusive growth, since high GDP growth alone has proven unsuccessful at reducing unemployment and under-employment levels, or the number of people below the poverty line. Rapid growth in the Philippines services sector, for instance, did not provide job opportunities to less educated and trained people in rural areas. Agribusiness development is a possible solution since agriculture production and processing can employ people in these areas. The coverage of agrarian reform, which has been extended to this year, hopefully for the last time, gives an opportunity to promote corporate investment in agriculture for the benefit of rural workers. Even if the Philippines’ agrarian reform were to end, there is still plenty of work to be done, particularly because the titling of land to individual beneficiaries has not been achieved to a great extent. Success requires infrastructure investment in roads, irrigation, farming implements, processing facilities, provision of credit, crop insurance and marketing activities. Basel III regulations were also fully implemented in the Philippines on 1 January 2014, requiring banks to comply with capital ratios, unlike in other countries which are adopting a phased implementation up to 2019. Consequently Philippine banks will be more conservative in their lending, meaning loan growth will be lower. Given these challenges, Philippine GDP growth in 2014 will probably be no higher than 6 per cent. To achieve higher levels into the future, basic improvements in investment policies of the kind identified above and more, that transcend presidential terms, is needed. Cesar E. A. Virata is president and chairman of C. Virata & Associates, incorporated management consultants, and former Prime Minister of the Philippines. This article is part of an East Asia Forum special feature series on 2013 in review and the year ahead and is reprinted with permission from www.eastasiaforum.org.


IM has a new vision to become the global source for ASEAN talent, insights and wisdom. This vision has given rise to a new goal, to be counted among the top five business schools in Asia in five years – Top Five in Five.

To reach the goal and fulfill the vision, the Institute focuses on four priority areas for growth and development: getting the best and the brightest students in the region, developing its faculty into a diverse mix of experience and expertise, increasing and strengthening its research towards becoming the ASEAN Knowledge Hub and developing its facilities to be comparable in the region. • Students. In continuing its mission of molding the next generation of leaders who can respond to the demands of a new ASEAN, AIM has put in place mechanisms to raise admission standards and student quality in order to attract only the best and the brightest. As education at AIM is a significant investment, the Institute will need scholarships amounting to P331 million to provide for enrollment of at least 16 additional students, in order to achieve the target 20% of total student population on scholarships. • Faculty. To continue to ensure faculty qualification and diversity, AIM requires a funding support of P902 million to attract and retain faculty who can match quality students with a tradition of teaching excellence and expertise.

• Research. AIM has been at the forefront of research in business, development and economics, as it continues to blaze new paths in emerging fields of knowledge. To sustain and further enrich its pioneering body of work, AIM will need P195 million in funding. • Facilities. To compete with the best in the region, AIM must upgrade its facilities and create a hub for learning that drives a message of creativity, innovation and thought leadership. A master development plan is in the works, which will require P528 million in capital funds. To achieve the quality and reputation that would land AIM in the Top Five, substantial resources must be mobilized. The goal is ambitious, but the response is equally so. AIM embarks on TRANSCEND. TRANSCEND is a five-year capital campaign to raise P2 billion over the next five years. It draws on the rich history of giving to AIM for the purpose of long-term institutional advancement. It applies a more scientific and strategic approach which calls for efficient coordination among alumni relations, fundraising and external relations and the rest of the AIM community in order to allow AIM to outdo itself and continue its proud history. next page, please


WE TRANSCEND continued from page 15

Fundraising goals and objectives were identified and have led to the development of a gift pyramid which depicts the strategies for the four interconnected priorities. Since the launch of the quiet phase of TRANSCEND in the middle of 2013, some of our partners have affirmed their support despite a slowdown in the global economy and a series of natural disasters that hit the region. Remarkably, social investments increased by approximately 159% in the six-month period after the quiet phase began, given by half the total number of donors of the preceding fiscal year. Such donor support is vital to our mission and emboldens us. We are gratified by the actions of our social investors which are testament to their generosity of spirit and affirm the nobility of our vision and goals. TRANSCEND is about meeting the challenges of an evolving region and, in doing so, redefining education of leaders and managers in Southeast Asia and throughout the world.

Be part of AIM TRANSCEND. Outdo yourself. Outgive to AIM. Contact: outgive@aim.edu. Tel. (632) 465-1842.

WHO’S AFRAID OF ASEAN 2015? from page 4

In the Philippines, we need to do this exercise now. A useful start would be to identify what types of goods, services, and professionals we are already importing from and exporting to our neighbors. I took a quick look at our trade statistics with major ASEAN trading partners and found the following: Our top imports from Thailand are motor vehicles, electronics, petroleum and chemicals; our top exports to them are motor vehicle parts, electronics and electricals, and minerals. From Singapore, we mostly import electronics, machinery and petroleum; we mostly export to them electronics and electricals, machinery, and petroleum as well. Our top imports from Malaysia are electronics, petroleum and chemicals. Unlike Thailand and Singapore, Malaysia is not among our top 10 export destinations, so I couldn’t readily find data on our exports to that country. What do the above tell us? Our trade with major ASEAN trade partners is largely intra-industry in nature; that is, we are exchanging products belonging to the same industries. For electronics, which is the biggest item in both directions (except for Thailand), we are exporting intermediate components but importing the finished products. The same is true in our trade with Thailand on


transport equipment; we sell them motor vehicle parts, and we in turn import from them motor vehicles. While we would do well to aspire to produce more of the finished products ourselves, one can see that our trade relationships in ASEAN are largely complementary rather than competitive in nature. There are many opportunities out there, then, and we shouldn’t be inordinately focused on perceived threats. There would be even more opportunities to tap as movement of workers is further freed up in 2015. And we, as a labor surplus country, stand to gain more than lose under such circumstances. We need to do a similar exercise as above to find where our best gains could be. Same holds for the other areas of the agreement. In any case, the time to do all these analyses is now. From what I can see, there may be more to get excited about than to fear about ASEAN 2015. Dr. Cielito Habito is Chief of Party, USAID TRADE Project at Deloitte Consulting LLP. He is former Director General of the Philippine National Economic and Development Authority. This article was first published in the Philippine Daily Inquirer on April 8th, 2013 and is reprinted here with permission from the author.


Dr. Stephen Zuellig: Pioneer ASEAN Business Leader By: Catherine C. Hartigan-Go

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r. Stephen Zuellig is a study in contrasts and symmetry. He is equal parts Europe and Asia, equal parts conservative and daring, equal parts intellect and intuition, equal parts skill and good fortune, equal parts old world and new. He is a maverick, a visionary, and a synergic product of his innate personality, unique upbringing and colorful life experiences.

His family’s early ventures into Asia and South America gave him an international perspective which was uncommon among his peers. A European education honed his natural predisposition for disciplined and orderly thinking, which has proven a major strength in business practice. Raised in a conservative manner, with a strong sense of ethics and duty, and commitment to family, he was determined not to squander the family fortune but rather to run a reputable, ethical business which would provide long-term security for the next generation.

Gamechanger Though it may not have been their choice to take over the family business after their father’s sudden passing, he and his brother Gilbert nevertheless rose to the occasion and squarely faced the challenges that came. That they had to deal with this personal upheaval in the midst of a world war is testament to their determination and resourcefulness. The war brought unpredictability, scarcity and danger. In the face of rampant looting, they had to sleep in their office or warehouse, and hide their merchandise from the Japanese, to preserve their inventory. They managed to keep the business in operation by buying and hiding kilos of gold to conserve the company’s assets. Their offices were raided and their papers confiscated; they were forced out of their homes in Manila and then in Baguio where they had subsequently evacuated. By the time it was all over, though they were physically unharmed by bombs and mines, the Zuellig brothers had lost family members, dear friends and valued staff, and returned to a decimated Manila, a different world than any they had yet known. They survived the destruction of World War II through resilience, level-headedness and no small amount of luck. They would survive the tumultuous succeeding years through strength of will and commitment to rebuild their father’s company, which set the company on the road to recovery, growth and regional expansion. It was by no means a certainty at the time. The company’s situation after the war was extremely precarious. Many of the staff were dead or missing. There were no stocks to be had. The Zuellig family was in debt to the Lutz family from whom their father had bought the business. He had still been paying off the debt when the war broke out, and his death raised financial and legal concerns, which Stephen had to travel to America and Europe to address. By using a subtle combination of charm and pressure, he succeeded in persuading creditors and bankers alike to extend some latitude to the foundering company. Just as importantly, he was able to convince his relatives to put up capital he needed to rebuild. Rebuilding and Consolidation Upon his return, he and Gilbert took stock of the company and sought business opportunities. They worked to strengthen existing partnerships and forge new ones to rebuild the foundation of their trading business. With steady growth, they eventually were able to pay their debts and even to buy out other European trading firms, former competitors, who were no longer keen to continue being in business. When foreign exchange and import controls became an issue, they deliberately moved away from trading and shifted to manufacturing. This was a pivotal decision for the company; the capital-intensive next page, please


nature of manufacturing was tantamount to a commitment to the region. Did they foresee the melding of Asian economies long before anyone could? For it was the manufacturing of goods for Asia that would lead to the company’s further regional expansion. It was thought leadership in Asian business unheard of in those days. Since then, there have been times when conviction spelled the difference between success and failure. When addressing the high cost of inventory financing in their pharmaceutical distribution business, Dr. Zuellig offered their principals an innovative solution which would change the way they did business together. He offered to accept a lower profit margin if the principals would take over financing of their respective inventories. Though it was a gamble, he was counting on his major advantage – economies of scale – to finally sway the principals to his way of thinking. The road to the present has not been smooth. There have been crises which have had to be headed off, be it a regional financial crisis or an unexpected move by a competitor. What is revealing is how Dr. Zuellig himself describes it, “We started small…Today, if somebody wanted to get into our pharmaceutical business, he would not only have to put up substantial sums of money for the infrastructure but he would also have to equal a relationship with principals and people we work with – possibly as many as 40 major well-known entities that work with us. That can’t be built in short order.”

“As a family, we’ve been doing business in Asia for more than 100 years and I do think we have fitted ourselves into the way Asians think and react in business. Having said this, I do recognize that Asia has developed tremendously within that period and in particular these last 50 years.” Dr. Stephen Zuellig

Dr. Zuellig: Asian Boss As leader of his company, Dr. Zuellig considers it his responsibility to provide vision and clarity of purpose. He is responsible for forming and motivating his team, and communicating his decisions. Being results-oriented, he allows his team members the leeway to hone their abilities and instincts as they carry out his direction. He takes the time to be a mentor to his executives, discussing problems and potential solutions with them. His loyalty to employees is legendary; as Mr. Roberto Romulo, former Chairman of Interpharma Investments Ltd., put it, “Zuellig employees never quite retire. They are retained somehow...It’s the Zuellig culture.” He values staff participation and encourages discussion and debate. All opinions are carefully considered; opposing ones are particularly useful in revealing other perspectives. In the end, he alone as the leader makes the decision; maintaining the hierarchy is necessary to effective leadership, particularly in Asia, he observes, “where the boss is expected to be the boss.” next page, please



continued from page 19

Before arriving at a decision, he deliberates over problems and concerns from every angle, weighs all the information he can gather, anticipates every possibility, puts himself in the place of his competitors. His ability to break down complex problems into simpler components is invaluable, as is his ability to predict the future. No magic is involved; by thoroughly gathering and analyzing information, he can almost foresee what will happen next politically, socially, economically, and these hunches inform his decisions. Once the decision is made, he takes full responsibility for the consequences and has had little cause for regret or self-doubt. Since its core business is in Asia, the Zuellig Group has had to take into account Asian values, be it the role of family in management, the strong work ethic, the long-term approach to business, or recognizing risk in opportunity. Asia has changed radically since the arrival of Dr. Frederick Zuellig, Stephen’s father. After the war, the strong relationships he had built were a major deciding factor for his sons, Stephen and Gilbert, to remain in the region and stay with the business. Since then, the region has developed beyond being a source of raw materials into a manufacturing powerhouse and economic giant, and the company which started out as a trading house has benefited from this phenomenal economic development largely due to Dr. Zuellig’s bold leadership. He has been known to make intuitive decisions after careful deliberation, choosing a path which may be inconsistent from what had been done before. This brand of audacity has contributed greatly to the success of the business. Strategic thinking and corporate agility – the ability and willingness to act or respond in a timely manner -- have allowed the company to take advantage of select opportunities to diversify into manufacturing and services. The Zuelligs have grown the business in a controlled manner to avoid over-extending beyond what is optimal. Even with the strategy to concentrate only on business areas they know, the company has had ample opportunity to grow and build synergy among their individual businesses.

Dr. Zuellig: ASEAN Businessman Looking Forward Dr. Frederick Zuellig began the expansion into ASEAN by opening a satellite office in Singapore before the war. In response to political realities in the Philippines after the war, the company later


expanded to Malaysia and Thailand. Today, it is one of the largest privately-owned companies in Asia. The Zuellig Group is currently represented in eight out of the ten ASEAN member countries, as well as in various other Asian countries. By developing a system which has achieved economy of scale and is more cost-effective for pharmaceutical companies to use than building their own, it has emerged the leader of pharmaceutical distribution in Southeast Asia, where the company employs approximately 10,000 people. next page, please


Dr. Zuellig with MDM students

Though the changing values and geopolitics in Asia today come with dangers and limitations, opportunities still abound for those who can interpret the signs. As he has throughout his life, Dr. Stephen Zuellig continues to watch patiently and remains actively involved as Chairman of the Zuellig Group. He recognizes the need for a strategic mind or group of minds to guide the company into the future, and he is faced with the Asian dilemma of considering whether this family corporation must necessarily continue to be managed by a family member.

It is evident that he has found fulfillment in managing and growing the business his father began. He displays a quiet affection toward the Philippines, the land of his birth, and an affinity for the Asian region where he has spent much of his life. Dr. Zuellig remains private and keeps a low profile but he speaks loudly through his philanthropy, which he has invested in Asia, particularly the Philippines, out of his concern to develop the region and improve the lives of its people. He has found common cause with the Asian Institute of Management (AIM) whose vision is to produce professional, entrepreneurial, socially responsible managers for Asia. He has made a generous donation to AIM to strengthen its unique Masters in Development Management program and the Institute has named the school in his honor. The funding will enable the AIM Stephen Zuellig Graduate School of Development Management to amplify its regional impact by offering more scholarships and programs, and to become the truly regional hub for development management. It is a fitting legacy. Mr. Washington SyCip, AIM Chairman Emeritus and his lifelong friend, calls Dr. Stephen Zuellig, “the best strategic thinker I have ever known.� From his unique vantage point and long view, Dr. Zuellig cautions against insularity, encouraging businesses to look beyond their borders. It would be to their benefit to heed his advice and follow his lead. Sources: A Sense of Balance: The Life of Stephen Zuellig, by Margaret Thomas, 2009, Marshall Cavendish International (Asia) Private Limited. The Swiss in Singapore, by Dr. Andreas Zangger, 2014, Didier Millet Csi. The Zuelligs of the Philippines, by Beth Day-Romulo, Manila Bulletin, March 27, 2014.



o make a difference in the sustainable growth of Asian societies is a mantra of development managers at the Asian Institute of Management.



Leading Development Management Education in Asia 23 23

COVER STORY from page 23

While the region has a rich diversity of cultures, economies and political structures, wide gaps continue to exist between the rich and the poor in Asia. “While the ASEAN Secretariat cites an average annual economic growth of 5 to 11 percent for ASEAN countries (October 2013), only a small percentage of Asian billionaires can indulge in fine wines and exotic cars,” notes AIM Dean Ricardo A. Lim. “A billion or more souls in Asia still do not have access to education, running water, or electricity.” A leadership with a social dimension to empower individuals and create enduring impacts in society is needed to address the unique challenges of sustaining Asian development. These are among the many things that the Stephen Zuellig Graduate School of Development Management (Zuellig School) at AIM seeks to address. It exemplifies the institute’s mission to form next-generation development managers who can lead organizations and communities in ways that can promote economic growth and human development.

Applying Management Science for Development Programs When AIM was established as a graduate school of management in 1968, the sole program offerings then were in the field of business administration. “Six years into AIM’s existence in 1974, faculty members began to ask themselves, ‘Could business management tools be used for development ends and objectives?’” shares the Dean of the Zuellig School, Juan Miguel Luz. Armed with a Ford Foundation grant, AIM set up the Rural Development Management Program (RDMP) as a program to work with government and non-government organizations on delivering on the promise of development using business management tools. In 1985, lessons from RDMP were developed into a four-week certificate course called the Program for Development Managers (PDM), which became the core of the first Master in Development Management (MDM) course in 1989, crafted at a time when extensive structural reforms and grassroots development were present across the region.


In 1991, the Center for Development Management was formally established as a program center and school, and in 2013, it was renamed as the Stephen Zuellig Graduate School of Development Management, in recognition of business leader and philanthropist Dr. Stephen Zuellig and the US$5 million he donated to the school to support initiatives under the Master in Development Management program. The uniqueness of the Master in Development Management program of AIM lies in developing a social dimension of leadership that will create a positive impact on communities and institutions. Managerial excellence is called for, as well as innovation and social responsibility. “Development management is the art of applying management science, tools, techniques and methods to the delivery of development programs for public good,” says Dean Luz. “The tools and techniques are not different from management in the corporate world; the difference is in the context where development focuses on public goods and policy as opposed to private goods and services.” At

the same time, these market solutions must also propose system-wide solutions “lest the poor and marginalized be excluded from the gains of economic growth.” “I like to think of business and development in today’s world as two sides of the same coin,” adds Dean Luz. Dean Lim shares the same view, and stressed that this business-and-development synergy is necessary because, in developing nations such as the Philippines and most of the countries in Asia, traditional MBA models don’t work. “The traditional MBA model is very Western,” Dean Lim said “with assumptions that communities are developed, with adequate infrastructure already in place, that there is a society that is ready and able to spend — that can’t be applied to emerging nations like those in Asia.” The development manager needs to work in an environment riddled with limitations such as inadequate infrastructure or imperfect governments. The ‘complete’ manager will also know about profit-making but would infuse the knowledge with human development. “He can’t just think about profit; he has to start thinking about how next page, please



he uniqueness of the Master in Development Management program of AIM lies in developing a social dimension of leadership that will create a positive impact on communities and institutions. Managerial excellence is called for, as well as innovation and social responsibility.

to make people at the bottom of society exist in a right way,” Dean Lim adds. AIM President Steven DeKrey also believes that the synergy between business and development is what makes the Zuellig School unique in Southeast Asia, as no other business school in the region has taken this path. “We’re uniquely poised to respond and we’re doing so,” said Dr. DeKrey. “We see our graduates as communityminded people: they can do well and also do good.”

Leading Change Since the first class of MDM was launched in 1989, a total of 975 development managers and leaders from 32 countries have graduated from the Institute. This makes the Zuellig School the most diverse of all the three schools within AIM. “The 2014 class of 57 come

from South Asia (Bangladesh, Bhutan, India, Nepal, Pakistan), Southeast Asia (Cambodia, Indonesia, Lao PDR, Myanmar, the Philippines, Timor Leste, Vietnam), Oceania (Papua New Guinea), East Asia (China) and Europe (Netherlands),” shares Dean Luz. Under the tutelage of faculty composed of development professionals and academics who have served at the highest levels of Philippine government as secretaries and undersecretaries (e.g. Labor, Education, Environment and Natural Resources, Office of the President) as well as in multilateral agencies all over the world (i.e. United Nations Development Programs, UNICEF, WHO), MDM students are taught to think strategically of important outcomes, and to act with confidence in leading and dealing with others. next page, please



At the IFT 2011 Lombok

continued from page 25

“When we talk about leadership in Asia, we look at the diversity of cultures and the richness of societies, so the challenge is very large,” says AIM President Dr. Steven J. DeKrey. “If you look at the type of people that is needed for Asia, what you are finding is that they need to be adaptable, open-minded, and very progressive.” “The philosophy of the Zuellig School is derived from the AIM brand of Bridging Leadership,” Dean Luz adds. “Bridging Leadership is the manner by which one can lead change over social divides which can create conflict if unattended or indifference if untended. “The key to leading societal change is individual mastery. Hence, change yourself before you can lead change in your organization or in society. As Mahatma Gandhi so eloquently said repeatedly, ‘Be the change you want to see in the world.’” MDM graduates leave AIM with the management skills and talent that will drive AIM’s mission of making a difference in promoting the sustainable development of Asian societies. Coming from a wide range of professions and sectors including the field of medicine, government,


military, police, academe, the Church, NGOs, and the private sector, they return to their respective countries to serve in high levels of office in government, or take over the reins of local NGOs and civil society organizations.

A Gift for Growth In 2013, business leader and philanthropist Dr. Stephen Zuellig made a personal donation of US$5 million to AIM. “Dr. Zuellig has always cared a lot about education ever since he was forced to give up his dreams of having an academic career to attend to more pressing business matters,” Dr. DeKrey explained. “I think when Dr. Zuellig heard about the school’s initiatives and the team’s new approach to moving forward, he got quite excited about it. He was willing to step up and support us.” In recognition of his magnanimity, commitment and support, AIM officially renamed the Center for Development Management to the Stephen Zuellig Graduate School of Development on March 13, 2014. “The gift of Dr. Zuellig will enable the school to increase the number of scholarships, hire international next page, please


MDM Students in Sorsogon, Philippines

MDM Students on International Field Review 2013 in Cambodia

faculty and co-finance more in-country programs in Southeast Asia and South Asia over the next five years,� says Dean Luz. It will also enable the school to increase student diversity, develop knowledge hubs for disaster risk reduction and management, and establish a program for social enterprises over the next four years. Scholarships to the MDM program shall be provided for women leaders in development management covering ASEAN, South Asia, China, Korea, and Japan; and scholarships for Muslim Fellows in Development Management, covering China, Indonesia, South Thailand, Southern Philippines, Pakistan, India, Bangladesh, and Central Asia. In addition, faculty development scholarships for universities in emerging/post-conflict economies, covering Cambodia, Lao PDR, Myanmar, and Timor Leste, will also be provided. Moreover, scholarships will be given for accepted applicants from the Departments of Education, Health, Social Welfare and Development, and Interior and Local Government, as well as from the Philippine National Police and the Armed Forces of the Philippines. The Zuellig School will also be undertaking new development executive programs in the Greater Mekong Sub-region, particularly the Program for next page, please



MDM Students in Sorsogon, Philippines.

MDM Students on International Field Review 2013 in Cambodia.


continued from page 27

Senior Public Managers, which aims to build the capacity of senior public managers in government, private sector, and civil society in Cambodia, Lao PDR, and Myanmar. The program will specifically delve into the management of organizations, project management, public expenditures management, results-based management, and leadership and the management of change. Knowledge hubs will also be a key feature of the Zuellig School. Included in its focus areas for research are: disaster risk reduction and management (global); livable cities (Asia); and small and medium enterprise development (Philippines). Moreover, the Zuellig School will also act as a development incubator in social enterprise, particularly as a social enterprise action research laboratory to help start-ups and as an organizer of social enterprise business plan competitions, in partnership with the AIM-Washington SyCip Graduate School of Business. “This gift — it fits right into the impetus we’re having and where we want the institute to go,” says Dean Lim. “It’s going to give us a chance to fill the classrooms with more diverse students, build a better profile, and give us the visibility we need to grow the institute.” As a result of the philanthropist’s gift, Dean Lim said the Zuellig School has already experienced a 20% increase in scholarship applications this year from

countries that would not normally enroll. “Because of Dr. Stephen Zuellig’s generosity, we are now able to bring in the best and the brightest scholars,” he expounded. Dr. Zuellig’s gift will also support AIM’s vision to become the global source of ASEAN talent, insights, and wisdom.”The realization of the ASEAN Economic Community in 2015 will require inputs and programs in the social and political agenda,” says Dean Luz. “Integration is assumed to be economic but good economics require sound social and political initiatives. ASEAN is not a homogenous market and differences from country to country in economic prosperity and technological knowhow is significant. Development managers are those who are probably best equipped to handle these divides and to find ways in bridging these differences. That is a role the Zuellig School would like to play in helping ASEAN achieve its long-term goals.” With over 45 years of leadership in management education in the region, AIM has been part of Asia’s growth history. As it continues to educate the future leaders of the region and the world, the Zuellig School will continue to make a difference in management and development- by renewing organizations, bridging divides, changing leaders, and building a better ASEAN— to drive Asian development and sustain Asia’s growth over the long-term.


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DAY 1 , JUNE 26, 2014 0900H-0930H

Plenary Session 2, Strategy Session Reinforcing the groundwork for an actionable ASEAN integration Presenter

Dato Timothy Ong

Opening Ceremony Welcome Remarks Mr. Augusto Antonio C. Serafica, Jr.

Chairman and Founder, Asia Inc. Forum Panelists

Sir David K. Newbigging O.B.E.

Chairman, AAAIM

Chairman, Kennedy Financial Services Limited

Dr. Steven J. DeKrey

Mr. Serge Pun

President, Asian Institute of Management

Executive Chairman, Yoma Strategic Holdings and Serge Pun and Associates

Plenary Address Mr. Napoleon L. Nazareno

Mr. Iwan J. Azis

Chairperson, AIM Board of Trustees

Head, Office of Regional Economic Integration, Asian Development Bank


Plenary Session 1 Building an Economic Community: Lessons and Key Considerations

Mr. Rodolfo Severino


Part 1 The ASEAN Economic Community: Perspectives of Thought Leaders

Dr. Suthad Setboonsarng

“The European Monetary Union and the Euro Crisis: Lessons for ASEAN” Dr. Laurent L. Jacque

Dr. Sam Bernal

Walter B. Wriston Professor of International Finance & Banking and Academic Director of the Masters of International Business, The Fletcher School, Tufts University

Mr. Jay Y. Yuvallos

ASEAN Economic Community: What does this mean for its people? Dr. Nalinee Taveesin


Former Thailand Trade Representative and Former Minister Attached to the Prime Minister’s Office

AIM ASEAN 2015 Project Leader

1015H-1030H 1030H-1200H

Coffee Break Part 2 Conversation with Business and Thought Leaders on the ASEAN Economic Community (Dr. Laurent Jacque and Dr. Nalinee Taveesin will join the panel) Mr. Diosdado Banatao Founder and Managing Partner of Tallwood Venture Capital

Dr. Ralph Sorenson

Head, ASEAN Studies Centre, Institute of Southeast Asian Studies, Singapore Former Thailand Trade Representative Philippine Representative, ASEAN Law Association Philippine Representative, ASEAN Business Advisory Council and President, Interior Basics Export Corporation

Dr. Federico M. Macaranas


Coffee Break


Plenary Session 3, Strategy and Demonstration Session ASEAN 2015: Building Innovation and Creativity Presenter

Mr. Soon Ghee Chua Managing Partner South East Asia, AT Kearney Panelists

Mr. Jaime Augusto Zobel de Ayala

Managing Partner, Sorenson Limited Partnership and Professor Emeritus, University of Colorado at Boulder

Chairman and Chief Executive Officer, Ayala Corporation

Ms. Cecilia Reyes

Chairman and Chief Mentor Officer, Infosys Technologies Limited

Chief Investment Officer, Zurich Insurance Group

Dr. Steven J. DeKrey

Mr. N.R. Narayana Murthy

President, Asian Institute of Management

Mr. Paulius Kuncinas Regional Editor, Asia, Oxford Business Group

Mr. Manuel R. Salak III Head of Clients and Corporate Finance, Asia, ING Bank N.V.

Dr. Jaime Aristotle Alip Founder and Managing Director, Center for Agriculture and Rural Development – Mutually Reinforcing Institutions

Victor Jose Luciano President and CEO, Clark International Airport Authority


Mr. Teymoor Nabili Presenter and Executive Editor, Channel News Asia

Edward Teather Senior Economist for ASEAN and India, UBS AG Moderators

Veronica Uy


Luncheon Networking

Senior Editor, InterAksyon.com TV5

Arnold Tenorio Business Editor, InterAksyon.com TV5


DAY 2: JUNE 27, 2014 Simultaneous Track Sessions, 9:00am-11:20am, Asian Institute of Management Harnessing Banking and Financial Markets

Realizing ASEAN’s Full Human Capital Potential

Strengthening Connectivity

Strengthening Leadership and Governance

Building a Resilient ASEAN Economic Community

Opening Remarks:

Opening Remarks:

Opening Remarks:

Opening Remarks:

Opening Remarks:

Dr. Roberto F. de Ocampo, OBE

Ms. Delia D. Albert

Mr. Stephen Reilly

Dr. Cielito Habito

Roberto R. Romulo

Former Secretary of Finance and Executive Director AIM- Gov. Jose B. Fernandez, Jr. Center for Banking and Finance

Senior Adviser SGV & Co.

COO, Resorts World Manila

Chief of Party, USAID TRADE Project at Deloitte Consulting LLP

Chairman, Board of Advisors AIM Policy Center


Ms. Melissa Crucillo Presenters:

Mr. Noritaka Akamatsu Deputy Head Office of Regional Economic Integration Asian Development Bank

Grenville Thynne Managing Director Head, Corporate Finance, Asia ING Bank N.V. Panelists:

CEO, JWT Manila and Ms. Pam Garcia Director of Planning, JWT Manila

Chairman and Chief Mentor Officer Infosys Technologies Limited


Panelists: Mr. Jose Luis U. Yulo, Jr.

Chairman and President, Premiere Horizon

Mr. James P. Villafuerte

Dr. Primitivo C. Cal

Atty. Michael T. Toledo Senior Vice President of Corporate Affairs Philex Mining

Dr. Francisco “Pancho” Lara, Jr. Philippine Country Director Alert International

President Central Visayan Institute Foundation


Non-Executive Vice Chairman Serge Pun and Associates (Myanmar) Ltd.

Mr. N.R. Narayana Murthy

Mr. Augusto Serafica

Senior Economist for ASEAN and India UBS AG

Martin Pun

Senior Specialist on Skills and Employability International Labor Organization Regional Office for Asia and the Pacific

Dr. Christopher Bernido

Edward Teather

Part I: “The Interconnectivity of Tourism and the BPO/KPO Sector”



President BDO Unibank, Inc.

Team Leader, Asia Regional Integration Center Office of the Regional Economic Integration Asian Development Bank

Prof. David Gulliver Go Executive Director, Andrew L. Tan Center for Tourism, AIM

Ms. Carmela Torres

President Chamber of Commerce of the Philippine Islands Inc.

Nestor Tan



Mr. Jose Mari Mercado President and CEO Business Processing Association of the Philippines (BPAP)

Closing Remarks:

Dean Juan Miguel Luz Stephen Zuellig Graduate School of Development, AIM Moderator:

Mayor, Cagayan de Oro City

Mr. Senen Bacani President, Ultrex Management and Investments, Corp.

Mr. Monchito B. Ibrahim Deputy Executive Director Department of Science and Technology – ICTO

Mr. See Cheong Yan Culinary Head, Enderun Colleges

Executive Director Planning and Development Research Foundation, Inc. University of the Philippines

Hon. Oscar Moreno

Part II:“The Role of Web-Based Platform in Facilitating Travel, Relationship with the Airline Industry, and Promoting The Tourism Industry.

Ms. Jainab Abdulmajid Provincial Tourism Officer Sulu Province

Mr. Roderick de Castro Executive Director Team Energy Foundation, Inc.

Talk on Post-Conflict-Conflict: Dr. Nalinee Taveesin Permanent Trade Representative Minister at the Prime Minister’s Office Royal Thai Government


Mr. Roberto Lim

Closing Remarks:

Country Manager, International Air Transport Association (IATA)

Dean Francisco Roman

Ms. Charly Atienza

Dr. Kenneth Y. Hartigan-Go

Industry Manager, Google Philippines

Acting Director-General Food and Drug


Victor Jose Luciano President and CEO, Clark International Airport Authority

Executive Director Ramon V. del Rosario, Sr. – C.V. Starr Center for Corporate Governance


Dr. Rodel Lasco Scientific Director Oscar M. Lopez Center for Climate Change Adaptation and Disaster Risk Management Foundation, Inc. (OML Center)

Antonia Loyzaga Executive Director Manila Observatory Panelists:

Undersecretary Danilo Antonio Office of the Presidential Assistant for Rehabilitation and Recovery

Governor Edgardo Chatto Province of Bohol Philippines Closing Remarks:

Mr. Guillermo Luchangco Chairman & CEO Investment & Capital

Corporation of the Philippines Moderator:

Prof. Jamil Paolo Francisco Core Faculty Washington SyCip Graduate School of Business, AIM


Ms. Nikki Philline dela Rosa Programme Manager International Alert

Mr. Rogelio Umali Mobile Apps and API Innovation Program Smart Communications, Inc.

Candice A. Iyog Vice President, Marketing and Distribution, Cebu-Pacific Air, Inc. Closing Remarks:

Mr. Rolando Canizal Assistant Secretary Department of Tourism Moderator:

Mr. Teymoor Nabili Presenter and Executive Editor, Channel News Asia





apoleon Nazareno, MBM 1973, President and CEO of the Philippine Long Distance Telephone Co. (PLDT) and Smart Communications, Inc. (Smart) was named best regional CEO in an investor poll conducted by Hong Kong-based Finance Asia.

Nazareno, who has led the country’s biggest telecommunications provider since 2004, has been cited for his role in transforming PLDT’s business from a landline and voice-call service provider into a broadbanddriven, multimedia service provider. PLDT was cited in five other categories in the 14th Finance Asia survey, which was conducted among investors and analysts from February to March 2014. PLDT ranked number one in the Best Investor Relations and Most Committed to a Strong Dividend Policy categories for the sixth consecutive year. “This recognition affirms how committed we are in consistently adding value to the investments of our shareholders,” said PLDT chair Manuel V. Pangilinan. “As an example, PLDT has maintained a policy of declaring 100 percent of its core income as cash dividends for shareholders, with cumulative payout reaching P310 billion for the past 10 years,” he added. In other categories, PLDT ranked second in the Best Corporate Governance (from number 4 last year), Best Managed Company (from number 7 last year), and


Best Corporate Social Responsibility (CSR) categories. This is the first year that PLDT was recognized for its CSR efforts, which emphasizes its leadership not only in the telecommunications business but also in social responsibility, particularly in disaster relief and rehabilitation efforts. The company is also active in community building and employee volunteer programs geared toward education, poverty alleviation and social entrepreneurship. “We at PLDT are most appreciative of all these recognitions from the investor community, and we will continue to change lives by providing world-class integrated services that benefit all our stakeholders,” Nazareno said. Finance Asia is a leading online and magazine publication that reports on Asia’s financial and capital markets. It carries out the ‘Asia’s Best Companies’ annual survey to determine the best performing establishments in the region. Source: http://business.inquirer.net/167306/pldt-execemerges-in-finance-asia-poll-as-best-ceo-in-region


AIM NAMED LATEST MEMBER OF THE GRADUATE MANAGEMENT ADMISSION COUNCIL AIM Brings the Number of Member Schools to 212 Worldwide The Asian Institute of Management (AIM) is the latest member institution of the Graduate Management Admission Council (GMAC). GMAC is a non-profit education organization of leading graduate schools and is the owner of the Graduate Management Admission Test (GMAT), used by more than 6,000 graduate business and management programs nationwide. “We at AIM feel privileged and delighted to be invited to join GMAC. We are GMAC’s first member in the Philippines and are pleased to join others in the rapidly growing region of Southeast Asia,” says AIM President Steven J. DeKrey. “We intend to be an active member by availing ourselves of GMAC’s various services and marketing and networking opportunities. Like GMAC, we are committed to excellence in graduate management education.” AIM was established in partnership with Harvard Business School in 1968, and is fully accredited by the Association to Advance Collegiate Schools of Business (AACSB). AIM’s mission is to produce managers who can operate amidst Asia’s rapid changes and opportunities. This is captured in its vision of being the global source of ASEAN talent, insights, and wisdom. “We are very pleased to welcome such an important university as Asian Institute of Management, and

to extend our work in a market as important as the Philippines,” said Sangeet Chowfla, GMAC’s president and CEO. “AIM has built a strong reputation of excellence and leadership across the Pacific region. GMAC has worked with President DeKrey over the years, and we look forward to getting to know more about AIM and working together on promoting and developing graduate management education.” AIM is one of the schools in the Philippines that require the GMAT for its prospective students. The test scores are combined with an applicant’s interview scores to determine admission into the institution.

About GMAC The Graduate Management Admission Council (gmac. com) is a nonprofit education organization of leading graduate business schools and owner of the Graduate Management Admission Test (GMAT exam), used by more than 6,000 graduate business and management programs worldwide. GMAC is based in Reston, Virginia, and has regional offices in London, New Delhi and Hong Kong. The GMAT exam -- the only standardized test designed expressly for graduate business and management programs worldwide -- is continuously available at 600 test centers in 113 countries. More information about the GMAT exam is available at mba.com. For more information about GMAC, please visit www.gmac.com/newscenter.

AIM HOSTS BOOK LAUNCH AND LECTURE ON ASEAN ECONOMIC COMMUNITY A book on ASEAN integration entitled, “The ASEAN Economic Community: A Work in Progress”, published by the Asian Development Bank (ADB) and Institute of Southeast Asian Studies (ISEAS), was recently launched at the Asian Institute of Management (AIM). The launch was also marked with lectures from the book’s editors, Ambassador Rodolfo Severino (2nd from left), Dr. Jayant Menon (3rd from left), and Dr. Omkar Lal Shrestha (rightmost). The photo also shows AIM President Steven J. DeKrey (3rd from right), AIM Dean Ricardo Lim (leftmost), and Ambassador Delia Domingo Albert (2nd from right) receiving copies of the book.



The newly formed AIM Alumni of Bhutan pro tem committee with FAIM Vice Chair Haji Zul (6th from left).



n December 15, 2013, nine AIM graduates from Bhutan attended a gathering spearheaded by the Vice Chairman of the Federation of AIM Alumni (FAIM), Haji Zulkifly Baharom, MM 1989.

A Pro Tem committee was formed with the following members: Karma W. Penjor, MDM 1998, Chairman; Sonam Tobgay, MBM 2000, Vice Chairman; Suman Pradhan, MDM 2003, Honorary Secretary; Sangye Dorji, MBA 2009, Treasurer; Sonam Rigyel, MDM 2009; Pema Tshewang, MBA 2009; Nidup Tshering, MDM 2007; Phuchu Dorji, MM 1998 and Tshering Dukpa, MDM 2003 as committee members. FAIM Vice Chair Haji Zul presented a sample of an AIM Alumni Chapter Constitution to Suman Pradhan, Honorary Secretary of AIM Alumni of Bhutan. A general meeting will be held soon to discuss the charter and to reconnect with more alumni from the country.





he Federation of AIM Alumni, representing 30 alumni chapters around the world held their Annual General Meeting (AGM) last February 28, 2014 at the AIM campus.

Present were the heads and representatives of various FAIM chapters: Dani Firmansjah, MM’94, FAIM Chairman (Indonesia), Datuk Rozman Datuk Haji Isli, MM’99, Vice-president (Malaysia), Augusto Antonio C. Serafica, Jr, MBM’91 (Philippines), Patrick Hsiao, MM’90 (Taiwan), Sandeep Ghate, MBM’87 (India), Dr. Gan Cheong Eng, MBM’82 (Singapore), Md. Anwar Hossain Chowdhury, MM’98 (Bangladesh), Ms. Catherine Xianyan Chen, BM’95, MBM’98, Vice-chair Shanghai (China), Ms. TaeSook Han, MBM’84, representative (Korea), Teerachai Chemnasiri, MBM’73, representative (Thailand) and Greg Atienza, MBM’83 (Secretary-General). Also present were Renny Yeo, MM’81, Vicechair (Singapore), Ofelia Odilao-Bisnar, MBM’88, former FAIM chair (Philippines), Dato’ Raduan Bin Haji MD Taib, MM’83, and Kasmuri Bin Sukardi, MM’94, members

(Malaysia) and by written proxy Nguyen Thi Thuan, MDM ’98 (Vietnam) and Sanjay Sathe, MBM’88 (Chairman, AIM Alumni USA- West Coast Chapter). The members held the election of FAIM Officers for 2014-2015 during the AGM and the following Board of Trustees were elected: Dani Firmansjah, Chairman; Haji Zulkifly Baharom, ViceChairman; Augusto Antonio C. Serafica, Jr., Treasurer; Sandeep Ghate (Chairman, Alumni Association India), Jack Niu, MM 1998 (Chairman, AIM Alumni Association Beijing), Patrick Hsiao, MM’90 (Chairman, AIM Alumni Association Taiwan), Dr. Gan Cheong Eng (President, AIM Alumni Association of Singapore), Md. Anwar Hossain Chowdhury (Convenor, Bangladesh Alumni Association), Teerachai Chemnasiri (AIM Alumni Club - Thailand), Tae-Sook Han (Korea), and Greg Atienza (Secretary-General) as members.

Front row: Ms. Ofelia Odilao-Bisnar (MBM’88), Mr. Teerachai Chemnasiri (MBM’73), Mr. Dani Firmansjah (MM’94), Ms. Tae-Sook Han (MBM’84), Dr. Gan Cheong Eng (MBM’82), Ms. Catherine Xianyan Chen (BMP’95, MBM’98). 2nd row: Mr. Augusto Antonio C. Serafica, Jr. (MBM’91), Mr. Md. Anwar Hossain Chowdhury (MM’98), Mr. Sandeep Ghate (MBM’87), Mr. Ching-Kuo “Patrick” Hsiao (MM’90), Mr. Renny Yeo (MM’81), Datuk Rozman Datuk Haji Isli (MM’99), Dato’ Raduan Bin Haji MD Taib (MM’83), Kasmuri Bin Sukardi (MM’94) and Greg Atienza (MBM ’83).



FAIM: THE BRIDGE OF ALUMNI CHAPTERS WITH AIM AND THE WORLD By Haji Zulkifly Baharom, PhD., FAIM Vice Chair and Kelab AIM President


s a non-profit international organization, committed to support alumni worldwide and to represent a link between AIM Alumni Chapters and clubs at regional and international levels, the Federation of Asian Institute of Management Alumni Associations, Inc., (FAIM) has already set up the formally required procedure to reach out to AIM Board of Trustees, top management, faculty and alumni around the world.

Particularly, FAIM has a permanent secretariat at the AIM Alumni Relations Office (ARO) with the Executive Managing Director of ARO as the Secretary General of FAIM who coordinates alumni relations, networking, and social activities of FAIM and its chapters.


Much progress has been made. The FAIM Board of Trustees is proud of what we have achieved so far and the important role it plays in our reality and in the name of 40,000 alumni around the world. Because of the active role that FAIM has been able to assume, those involved in the development activities of

FAIM are now more aware than ever of our presence on the world stage, as well as our active participation with regard to FAIM’s growth and development on a local, national, regional and global basis. During the first two months of activity after its AGM, FAIM was welcomed by its Chapters in Bangladesh, Malaysia, Philippines and Vietnam with positive results, and that is what we are proud of. On March 3, 2014, FAIM Chair DF and Vice Chair Zul touched base with leaders of Vietnam AIM Alumni Association led by Prof Dr Thuan in Hanoi. There was much camaraderie at the alumni dinner and some work even got done.

On March 30, 2014, Kelab President Dr Haji Zul who is also FAIM Vice Chair hosted lunch in honour of FAIM Chair Bapak Dennis Firmansjah (who is also President of the Ikatan Alumni AIM Indonesia) at Lake Club Putrajaya. Also present to welcome DF were Board member Sifu Louis Oui and Prof Khaerudin Sudharmin (K). The regular meetings of FAIM leaders are a strong platform for alumni who are members of both associations to take stock of their bilateral cooperation. It also provides the leaders with the avenue to explore and discuss new initiatives and further collaboration at either at A2A, B2B, G2G and O2O levels.



he AIM Alumni Association Philippine Chapter (AAAIM) Board of Directors held their elections of new officers last May 13, 2014. Starting this June, MBM 1992 alumna Ms. Rowena “Wing” PalmieryBayoneta will be leading the chapter together with Francisco Bernardo, III, MBM 1993 as her Vice-Chairman. Wing Palmiery-Bayoneta first served as a director of the Board of the AAAIM last June 2012 after being involved and heading her batch during their alumni homecoming on February of the same year. “Working on the 2012 Homecoming, and in the process becoming more aware of what was happening in AIM, reawakened the desire to be more engaged. At that time, I believed that the opportunity to be involved could not have come at a better time—AIM was undergoing changes, the alumni’s role in AIM was also transforming. I believed it was a privilege to be given the chance to be part of that transformation,” she said. One of the key strategies that Ms. Palmiery-Bayoneta has planned during her post is to engage the alumni community by remaining relevant. For the Chairwoman, that should translate to projects that are high impact, purposeful, and with multiplier effect. One of these high impact projects is the two-day conference of the AAAIM in partnership with the Asian Institute of Management: the Asian Business Conference “2015 Approaching: Priming for ASEAN Integration” that will be held at the Makati Shangri-La and AIM campus on June 26 to 27 respectively. To remain relevant, she also believes that AAAIM’s programs need to be meaningful to the alumni, whether in terms of continued education, enhancing career options, privileges or simply networking. As such, another project of the AAAIM is the alumni privilege card for smart phone users, also called the AIM Alumni MobKard. The privilege card offers the AIM alumni many discounts, promos and benefits from partner establishments, including alumni-owned or managed establishments which can be accredited for free. It is available for download at the Apple Store and Google Play Store. The AAAIM also launched the PNB - AIM Alumni credit card in partnership with PNB. The card offers superior credit card benefits exclusive to AIM alumni. The Chairperson also aims to create as many avenues for the alumni to engage. Last year, the AAAIM renewed the Cagayan de Oro chapter and started the SGV corporate chapter. “We will continue our geographical chapter and corporate chapter development efforts. We hope to expand this year to more locations and more corporations where there are a significant number of AIM alumni. At the same time, we hope to supplement that by creating shared interest groups to expand common ties among the alumni “, said Palmiery-Bayoneta.


AAAIM also plans to venture more into social media. According to Chair Palmiery-Bayoneta “We are looking at relaunching the alumni portal as well as strengthening our reach through Facebook, LinkedIn and other social media sites, maybe even Pinterest and Instagram. We need light moments too!” On a more strategic note, the Board of Directors of the AAAIM is also reviewing the organization to determine if there are structural process changes that need to be instituted in order to achieve financial and administrative sustainability. They have already started to make changes in the by-laws through electoral reforms that were approved in a referendum during the last Homecoming Night. Another one of these changes is to increase the number of members in the Executive Committee to make sure the Chapter has enough champions for the programs they intend to pursue. “We have endeavored to build the foundation towards financial sustainability through a number of programs which are envisioned to provide recurring income, if not the seed to mount projects that provide steady cash flow. While not the primary intent for launching these programs, the PNBAIM Alumni Credit Card and the forthcoming Asian Business Conference also support our financial goals. We are in the process of studying other opportunities that will support this goal,” she states. Ms. Palmiery-Bayoneta believes that the AAAIM will only be as effective as the feedback and support it gets from alumni and from AIM. “We are, after all, working for the same goal: to bring the Institute, and in the process all its stakeholders, to a position of prominence.” The Chairperson calls on her fellow alumni to be engaged by updating their contact details, giving feedback, supporting projects, attending events, and sharing their time, talents, and resources. “At the risk of sounding like a broken record, I’ve been saying this since 2012 - AIM and AAAIM are at a crossroad, with many changes taking place. There is no better time, no more interesting time to be involved and make a difference. Carpe diem!” The new AAAIM Board of Directors will be officially inducted into office at the Fuller Hall, Asian Institute of Management this June.


GIVING From left: Felipe Diego, Poly Nazareno, Bobby Garcia, Steve DeKrey, Mar Gatus, Teddy Villanueva and Alumni Relations Director Greg Atienza.

MBM 1973 TURNS OVER DONATION TO AIM In simple ceremonies last April 11, 2014, the Class of MBM 1973 turned over their donation of PHP 2,000,000 to AIM President Dr. Steve J. DeKrey at the AIM Lopez Gallery. This latest gift of the batch represents their pledge made during Homecoming 2013 where they were honored as the Ruby celebrants for their 40th anniversary as AIM alumni. MBM 1973 was represented by their class president, Roberto Garcia, with AIM Chairman, Napoleon Nazareno, former AAAIM Chairmen, Felipe Diego and Teddy Villanueva, and Mar Gatus attending. “We wish that this donation take this nature of a directed fund for a purpose that we will subsequently decide,” said Mr. Garcia. “This now brings our total donation to this Institute to around PHP 7 million.

The Class is committed to contribute further to the development of AIM.” Dr. DeKrey expressed his gratitude to the class for their generous gift. “Your donation will certainly assist AIM’s efforts to be one of the top five business schools in the region in time for the Institute’s 50th anniversary in 2018,” he said. MBM 1973 has fully supported the significant projects of the school, generously supporting the construction of the AIM Conference Center in 1994 and the Alumni Fund for Faculty Development in 2003 among many others. In March 1994, the President’s Room at the second floor of the school was re-dedicated to the name “MBM ‘73” in honor of the illustrious batch.

VISITACION MENDOZA, MBM 1984 RECEIVES AIM ALUMNI LEADERSHIP FUND AWARD In gratitude for her generous gift to the AIM Alumni Scholarship Fund (50 in 50 Campaign), Visitacion “Siony” Mendoza, MBM 1984 was awarded the Blue Leadership Award during the Triple A and Alumni Recognition Ceremony held at the AIM Stephen Fuller Hall on February 26, 2014. During the ceremony, Executive Managing Director of the Alumni Relations Office, Greg Atienza shared that “In June 2013, we were pleasantly surprised by the visit of a lovely lady who shared that she felt that it was time to give back to the Institute that helped shape her future, along with her classmate and husband, Butch Mendoza, the son of our beloved Professor Gaby Mendoza. With a generous gift of one million pesos, she established the SiBu scholarship fund which is her and her late husband’s lasting legacy for a student from Cebu.” AIM President Steve DeKrey thanked Ms Mendoza and said, “We are delighted to honor today an alumna, who has graciously made a difference in AIM, and will certainly make a difference in the life of a future scholar through her gift to the AIM Alumni Fund for Scholarships.” The AIM Alumni Scholarship Fund (50 in 50 Campaign) aims to raise PHP 50 million in time for AIM’s 50th anniversary. To make a gift, please contact the Alumni Relations Office at aimalumni@aim.edu. AIM President Steve DeKrey hands over the Blue Leadership trophy to Mendoza in gratitude for her generous donation.


GIVING From left: Greg Atienza, FAIM Secretary General, Dato’ Raduan Bin Haji MD Taib, Mr. and Mrs. Haji Kasmuri Sukardi, Datuk Rozman Datuk Haji Isli, Steve DeKrey, Dr. Gan Cheong Eng, President of the AIM Alumni Association in Singapore, Catherine Chen, Vice Chairman of the AIM Alumni Association in Shanghai, Anwar Chowdhury, President of the AIM Alumni Association in Bangladesh, and Dani Firmansjah, FAIM Chairman.

ALUMNI DONATE TO AIM’S 50 IN 50 CAMPAIGN In celebration of AIM’s 46th anniversary, alumni generously contributed to the AIM Alumni Fund for Scholarship’s “50 in 50 Campaign” last February 28 during the Homecoming festivities at the AIM campus. The “50 in 50 Campaign” aims to raise 50 million pesos in alumni donations in time for AIM’s 50th anniversary in 2018. Three donors from Malaysia and one from Indonesia generously supported the fund. The three Malaysian donors include Haji Kasmuri Sukardi, MM 1994, Director, KAZ Corporation SDN BHD; Triple A awardee Dato’ Raduan Bin Haji MD Taib, MM 1983, Chairman &

CEO, DRT Setia HLDG SDN BHD and Datuk Rozman Datuk Haji Isli, MM 1999, Group Managing Director (CEO) of the ISRO Group of Companies and Vice President of Kelab AIM Malaysia. Kelab President Haji Zulkifly Baharom provided exemplary assistance to the donors. AIM President, Steve DeKrey warmly welcomed the alumni back to the campus as they personally visited him at his office, along with members of the Federation of AIM alumni. Dr. DeKrey presented all with modest tokens of appreciation in gratitude for their generosity.

From left: AIM Dean Ricardo Lim ,Wee Woon, MM 1986, Cipriano “Ning” De Guzman, MBM 1973, AIM President Steve DeKrey, Renny Yeo, MM 1981, Amarjit Singh, MM 1981, Emil Cruz, MM 2011, and WSGSB Dean Horacio M. Borromeo Jr.

AIMAS DONATES BOOKS TO AIM LIBRARY In celebration of their 40th anniversary in May 2014, AIM Alumni Association Singapore (AIMAS) donated 13 books on Singapore business culture and leadership written by Singaporeans to the AIM Library. AIM President Steve DeKrey expressed his appreciation for the generosity of the alumni as he remarked, “Your generous donation will benefit not only our current students and alumni, but the AIM community as well.” Also present during the turnover were AIM Dean Ricardo Lim, and Dean of the Washington SyCip Graduate School of Business, Horacio M. Borromeo Jr.

The following are the books donated by AIMAS currently at the AIM Library: “Building people : Sunday emails from a CEO” by Liew, Mun Leong (2013); “Building people : Sunday emails from a CEO” (Vol. 2) by Liew, Mun Leong (2013); “Building people : Sunday emails from a CEO” (Vol. 3) by Liew, Mun Leong (2013); “Singapore Perspectives 2013 : Governance”, Koh, Gillian (Ed) (2013); “Lee Kuan Yew’s Strategic Thought” by Ang, Cheng Gua (2013); “A Mandarin and the Making of Public Policy: Reflections by Ngiam Tong Dow”, Tay, Simon S.C. (Ed) (2006); “Dynamic Governance: Embedding Culture, Capabilities and Change in Singapore” by Neo, Boon Siong and Chen, Geraldine (2007); “Catalyst for change : Chinese Business in Asia (Asia-Pacific Business Series” (Vol. 8), Chay, Yue Wah; Hans-Dieter, Evers; and Hoon, Chang Yau (Eds) (2014); “Government in Business: Friend or Foe? Finding Entry and Exit Points” by Lim, Hwee Hua (2014); “Heart Work 2: EDB and Partners: New Frontiers for the Singapore Economy”, by Chan, Chin Bock (2011); “Singapore, Insights from the Inside”, Fedo, David (Ed) (2012); “Management of Success: Singapore Revisited”, Chong, Terence (Ed) (2010); and “Pioneers Once More: The Singapore Public Services” by Chua, Mui Hoong (2010) 1959-2009, Singapore: Straits Times Press and Public Service Division.





Excerpted from “The Class of 1974: A Story Still Unfinished” and “The Story Continues” by Marilyn Juliano-Luciano and Gary Grey

The last 40 years has been a journey through peaks and valleys for MBM ‘74. The Class of ‘74 can now look back through the various stages of the pilgrimage, from the start of their heroic journey in AIM, to seeking their individual and cohort self- identity, to reaching a crisis of limitations, and now going through their wisdom journey like “holy fools” chasing after the light of infinity through their individual “bucket lists”. This time as we have reached middle age (as they say our 60’s are the new 40’s) perhaps it is the lyrics of the Beatles “When I’m 64” that captures this stage of the new 40’s. The certitude with which we tackled life has faded a little. There are quite a number of instances that names escape us and faces have blurred over. But our recollection of details that happened 40 years ago is as intact as they have ever been. The year we first walked into AIM in 1972 didn’t seem so far back in time until we received notice that we were the honorees in this year’s Homecoming as it was our Ruby Anniversary. Only then did it hit us that we were 40 years away from our graduation. And so it was that during our series of gettogethers before the homecoming, if one made it a point to really scan the room and discern whether we looked 40 years older- it didn’t seem that we did. Maybe 40 pounds heavier, 40% less hair, 40 crow’s feet and laugh lines more but once conversations started, all the years



The MBM ‘74 logo was inspired by our Professor Rafael Azanza who remarked that “You have lived good lives. You have already lived your theme. It’s hard to express it in words, but you have lived it.” Thus, the words “Think it! Feel it! Live it!” came about with the “it” being the values that we have evolved through our last 40 years. The logo itself shows the peaks and valleys that the class has gone through from going through a heroic journey in our first twenty years, to reaching mid-life crisis realizing our limitations, and finally transcending trials to go into a wisdom journey.

dropped away like water off a duck’s back. The Class of 1974 started with about 140 students, 125 of whom were men and about 15 women. Our average age was 24 (because, according to Soledad Jimenez, Mr. Pedro Calimlim, one of our more senior classmates, skewed the average age upward). A lot of the classmates came in straight out of college because of outstanding academic and extracurricular records. We also had a sizeable group of military men, a smattering of people from India, two Caucasian-Americans, and some students from Taiwan, Malaysia, Singapore, Thailand, Indonesia and Hong Kong. By the time Martial Law was declared, we had lost a few of them to foreign schools. We left the Institute fired up with conquering the world. The years between 1974 and 1984 and 2014 were spent pursuing and fulfilling our needs, in many different ways. Power, wealth, recognition. Very few of us went back to visit AIM in those years. In 1984, when we celebrated our 10th year, under the theme “Back to Basics”, we tried to present in pantomime and music what those ten years were like. Slogging it out in the marketplace, we all felt like Sisyphus pushing that big rock called success up the mountain called career. Some of us, though, went on to live the AIM dream – founding our own companies, becoming company presidents and vice next page, please


The Class of MBM 1974 at the Sibal’s residence.

Our class trek to Slovenia.

presidents, general managers and acquiring postings abroad. But in our 30’s, majority of us realized that we had left AIM but the friendships we forged there had been unbroken and would sustain our AIM experience through 30 years. Then we proceeded to celebrate our 20th, 30th, and 35th anniversaries and now our Ruby Anniversary. In between these years, traditions were made: • Annual Christmas parties at Oogie Pena Dolina’s house • Our class Treks. Mindanao Trek, Northern Trek, Slovenia and recently Thailand. We believe these were important events. For many of us, this was the first time we appreciated the beauty of our country, meeting provincial and foreign based classmates, and bonding together. • Our Annual and Regular Golf Games. The Gary Lim Challenge, Lolong Navarra Invitational, Rene Montemayor Golf Classic, The Sibal-Young-Cokeng-Limon Open. The games started with small bets for beer money and now all winnings go to the Safety Net Fund. In addition to the fun, these outings also keep us fit. • The MBM’74 e-group has over the years kept everyone apprised of important events and happenings. Reminds us of how old we are with the birthday announcements, greetings and pictures. Issues concerning health, careers and promotions, food and nutrition, business, gizmos, golf, etc. Thanks to the e-group moderators. • In addition to the TR Mohan Annual Curried Crab dinners, there are the Christmas and birthday dinners and lunches at the De Veyras, Dolinas, Sibals, Yulos. The class get togethers at Dulcinea, the Galley. Yogi’s Ballroom Dancing Challenge. • Periodic birthday parties at favorite watering holes here and abroad. • And, most regular and enduring of all, 30 years of Indian crab curry dinners at TR Mohan’s condo. Initially the menu involved beef, pork and chicken as well as the delicious crab curry. Now the menu includes salad, fish and fruit compotes. And the crab curry! At this stage of our journey, we are at the junction of trying to hold together the paradox of our lives. In the words of Richard Rohr: “It’s a return to simplicity, to the garden; beyond judgments, reason, and control to wisdom. Being human is more important than selfimage, role, power, prestige, or possessions.”

Our trek to Bangkok.



The lead host class for Homecoming 2014, MBM 1994 is recognized onstage.

Anticipation. Excitement. Fear. Engagement. Impatience. Hope. Frustration. Understanding. Persistence. Jubilation. Exhaustion. Introspection. Deliberation. Exhilaration. Anxiety. Euphoria.


ROLLER COASTER RIDE! By Lalaine Rodriguez-Valdes, MBM 1994 Homecoming 2014 Co-Chair

Mobilizing and preparing for the 2014 Alumni Homecoming brings out all these emotions, mutated in different combinations, packaged in a roller coaster ride format! Armed with high energy and noble aspiration to give the best of ourselves and “to give back” to the Asian Institute of Management, we reached out to batch mates and enticed them to team up and make a difference through this once in a life’s AIM journey. Convinced, functional committees were formed and chaired. Initial and regular meetings were held, starting as early as June 2013, ranging from weekly, on weekdays and Saturdays, either during lunchtime or over dinner, at times even after dinner, to parallel meetings when needed as mobilization and delivery intensified toward 28th February 2014. We even adopted clear strategies – divide and conquer, buddying up for back-up and contingency, Pareto’s 80:20 rule in prioritizing sponsors and audiences, guerilla tactics come execution time – to enable the team to prioritize and deliver tasks at hand. More often than not, dead serious in tone during team meetings, special moments of genuine fun, laughter and memories of friendship and camaraderie were experienced anew. Super typhoon Haiyan/Yolanda in October 2013 presented us with a wild card that was unforeseen, unprecedented that it devastated the nation and


dramatically challenged the team’s perspective on the target scholarship. It but only led us to the better answer – that with the same overarching objectives, the program for the intended AIM scholarship shifted from a “for-profit” or business-driven to a more developmental orientation that is beyond corporate and the AIM but for the broader Philippine and civil society. The answer was from the Master in Business Management to the Master in Development Management as the new and prioritized degree program for the target scholarship, to benefit the country, typhoon-prone and calamity-stricken that it is, in the long-term amidst climate change and emerging role of the Philippines in the increasing role of Asia in the global economy. Ultimately, the endeavor of organizing the 2014 Alumni Homecoming was a journey of setting an overarching set of team objectives, creating a shared vision and mantra, managing diversity and adversity, recalibrating plans, team building and learning, and sharing ownership of efforts and results. It is a microcosm of the real world – of people, profiles and styles, interests, ways of working, collaboration and engagement. Thinking about it, it is the journey and reality that the AIM has trained us to do. Nostalgic as the team started, we aligned as we looked ahead and “AIMed Forward!”

AIM FORWARD: Homecoming 2014 Activities To kick-off the AIM Alumni Homecoming week, the very first AIM Alumni Family Fun Run was held last February 23 at the Asian Institute of Management campus. Organized by MDM 1999, MDM 2009 and MBM 1994, more than 300 runners gathered for a 3 km (adults) or 500 meters (kids) run. Alumni and their families, AIM staff, and participants from PNP Calabarzon and NCRPO enjoyed the event. “I was impressed by the turnout and how well-organized it was. I had not intended to run; I thought my role was ceremonial. But I was buoyed by the enthusiasm of the group that I ran the entire three kilometers and I jogged with the AIM President Steve DeKrey (8th from left) join hundreds kids, too,” said AIM President Steven J. DeKrey of participants at the starting line. who was at the kick-off event. The traditional AIM Masters Homecoming Golf Tournament was held on February 25 at the Wack Wack Golf and Country Club. A total of 57 participants teed off with AIM president Steve DeKrey, former AIM president Roberto de Ocampo, AIM professor Jun Borromeo and Co-Chairman of Homecoming 2014, Ramon Agustines, MBM 1994 leading the ceremonial tee off. The event was organized by the Ruby Celebrants, MBM 1974. From left: Ramon Agustines, MBM 1994, Philip Juiico, MBM 1973, President Steven J DeKrey, Ed Limon, MBM 1974, Tony Ongpin, MBM 1974 and Roland Young, MBM 1974

Last February 26, MBM 1994 organized the second AIM Homecoming “Poker Tournament” at Genting Club Resorts World Manila. Texas Hold Em Poker was the format of the tournament where 61 enthusiasts participated. Mark Pe, VIE 2002, won 1st place.

Alumni watch intensely as the deal is made during the AIM Poker Tournament at Resorts World.

On February 26-27, alumni trouped back to AIM to reminisce their case room moments with the much revered Fr James Donelan through a private viewing of his two lectures, “The Grandeur of Rome” and “The Miracle of Greece”. These are part of his popular series “The Grand Tour”. Fr Donelan’s “The Grand Tour” is viewed by the alumni at the AIM Global Distance Learning Center.

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H O M E CO M I N G On February 27, development minded alumni also gathered to listen to marketing guru, Dr. Ned Roberto who talked about Social Marketing and Inclusive Growth, and

Prof. Danilo A. Antonio, MBM1978, Undersecretary of the Presidential Assistant for Rehabilitation and Recovery (PARR) who shared about the PARR objectives, plans, and challenges. More than 80 alumni, students, and guests attended the event.

Dr. Ned Roberto, marketing guru, speaks on Undersecretary Danny Antonio (MBM ‘78) talks Social Marketing and Inclusive Growth. about PARR: Objectives, Plans, and Challenges

Wrapping up the weeklong celebration was the much awaited Grand Alumni Homecoming night held last February 28 at the AIM Campus. MBM 1994 made sure that the celebration would be nostalgic, fun and unforgettable. Undeniably, they did not disappoint. As Homecoming 2014

Chairperson Lalaine Rodriguez-Valdes shared, “When we started we had 3 main objectives: raise money for the scholarship fund, gather a good attendance and of course to have a lot of fun. Initially we The Ruby Celebrants, MBM 1974, relive their case room days. were trying to raise 1.4M pesos for an MBA scholar but due to recent events that happened in our country we decided to raise funds for two MDM scholarships. And with humility, we would like to announce that we were able to raise 2.4 million pesos for the scholarship fund.” “This homecoming allowed our batch to get together after 20 years, and following the footsteps of earlier batches, we really really feel that we have come a little closer together. Maybe it’s not going to be another five years before we get together again. We really had a lot Members of the class of MBM 1979 dance onstage to celebrate their of fun,” Ramon Agustines added. 35th anniversary as AIM alumni.

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Highlight of the 2014 Homecoming was the raffle with a brand new Toyota Vios as the grand prize. The winner was Vanessa Santos-Cano, MBM 1994. Alex Macapagal, MBM 1994, VP of Toyota Pasong Tamo pose with the winners.

AIM President Steve DeKrey and his beautiful wife, Veronica DeKrey gamely join the fashion show organized by MDM 2009.

Students and alumni alike bonded during the happy celebration.

Lalaine Valdez and Ramon Agustines, co-chairs of Homecoming 2014 turn over the symbolic flame trophy to MBM 1995, the lead host class for Homecoming 2015.

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CLASS NOTES Tony Soriano (MM ’84), writes: “Here’s probably the only group photo of MM ‘84 during its reunion in KL in 2006. I’m the only Filipino MM ‘84 in the picture, and I was hosted by the Malaysians of MM ‘84 in KL. I am the youngest in the batch at 27 at that time. Datuk Annas, third from right, already passed away.

Hon. Martin Tofinga (MDM ’99), Member of Parliament (MP) of Kiribati represented the Pacific Island nations as resource person during the Asian Forum of Parliamentarians on Population and Development, held at the PICC on January 24, 2014.

Jerry Quibilan (MM ’76), writes: “The thinning ranks of MM 1976 had a dinner get-together last August 2013 at the Elks Club, headed by a batchmate, Humphrey O’Leary, whose family, at one time, ran the famous Chinese Restaurant, named after the legendary Venetian explorer and merchant, Marco Polo. “As always, we had a grand time and lots of laughter while sharing experiences during and after our AIM days. “

Raymond Yap Yin Min (MM ’96), (second from

left) is currently the Senior Vice President of Macau Galaxy, in charge of games, entertainment and business development. Prior to this international posting, he was with Resort World Bhd, a subsidiary of Genting Group serving as Senior Vice President in charge of theme park and first world plaza operations. With him in the photo are (from left) Mrs Tse, Mr Paul Tse, President of Macau Management Association, Prof Datuk Seri Haji Mohamed Iqbal, Chairman of the Malaysian Institute of Management (MIM) and Haji Zulkifly Baharom, MM 1989, Vice Chairman of the Federation of AIM Alumni.


Aldrin Bernardo (BMP-CS ’13), writes: “I fortunately passed and topped two examinations. I was Rank 1 in the October 2013 Registered Marketing Professional certification examination by the Junior Achievement of the Philippines and the Chartered Association of Marketing and Business Professionals. Also, I was Top 6 in the March 2014 Real Estate Broker Licensure Examination by the Professional Regulation Commission and the Professional Regulatory Board of Real Estate Service. “Through these achievements, I hope I have brought honor to our school. And I am thrilled to share this wonderful news to my fellow alumni, especially to my former classmates and professors.”


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Profile for AIM Alumni Publication

AIM Leader June 2014 Issue  

AIM Leader June 2014 Issue