Take it or leave it!

In yesterday’s column I wrote about President Duterte’s pledge to look into Smartmatic. Too many have doubts about the vote counting machines. In today’s increasingly digital world we are often confronted with ‘blackbox’ technologies that we use but lack the capacity to fully understand. I am too old to start learning new ways of doing things.

Here are excerpts from the forum:

“Around the world governments and societies are debating the laws, rules and regulations for the digital economy,  the use of artificial intelligence, and all the whole suite of technological advances known as ‘The Fourth Industrial Revolution.’ These technologies have the ability to greatly improve our lives. Today most Filipinos have a mobile phone but only a quarter have a bank account.

However, it also means that we are unlikely to have the same number of bank branches and even ATMs than are currently  more advanced countries. China has already done this, more than two-thirds of internet users in China use mobile digital payments compared to just 15 percent in the US. Personally, I still prefer good old fashioned banking and don’t even use an ATM. I have a certain distrust of machines, but I can see why and how others can benefit from these technological advances – especially those in rural areas who are currently underserved by existing business models.

The broader question for us is whether or not we are ready for this and how to make sure that as we adopt these new technologies the impact is to include more people in growth. This was the subject of an international conference held in Manila this week organized by the Asia Society Philippines under the leadership of Doris Magsaysay-Ho and JP Morgan.

Experts gathered in Manila to share experiences of what they are doing to prepare workers for the changes that are taking place. (My son, Eduardo, Secretary General of the Pacific Economic Cooperation Council based in Singapore was one of the invited participants which is how I came to learn of this.)

The International Labour Organization estimates that 56 percent of jobs in ASEAN are at risk. According to a survey carried about by PECC, 47 percent of respondents expect new technology to have a negative overall impact on the number of jobs. Many of those occupations that will be impacted the most will be those that are more routine and less skills intensive. At the same time, while many new jobs will be created – they require more a more skills intensive workforce.

According to my son, there is a widespread perception across the region that the social policies and institutions in place are not ready for the changes that are coming.

Rosanna Urdaneta, deputy director-general of the Technical Education and Skills Authority (TESDA), said that “We are looking into industry participation in TVET (technical and vocational education and training).” Urdaneta said that aside from identifying industries that can ensure employment for their graduates, they are also working toward inclusive growth and social equality on the ground. “We can’t just conduct TVET within metro cities,” she said. “We have to come up with programs that will cater to the needs of indigenous people, former rebels, and rehabilitated drug addicts.”

At the event, Doris Magsaysay Ho called for a multistakeholder approach saying that “Now more than ever, employers, policy makers, educators, civil society and parents must communicate, must learn and collaborate to understand the fast approaching future.”

In his keynote address at the One Step Ahead Manila Forum, Jaime Zobel de Ayala said advanced technologies provide new avenues to unlock the talents and energies of workers.

One of the biggest fears automation brings is that thousands of workers will lose their jobs to machines. This is especially significant in the Asia Pacific region, which is home to the world’s leading industrial robot usage at 65 percent.

Boris Van, associate partner at McKinsey & Company, however, noted that automation and artificial intelligence (AI) will not replace humans in the workplace.

“AI does not necessarily replace jobs, but it replaces certain activities in jobs,” Van said. “This means that there’s a significant emphasis on reskilling – how do you repurpose your focus into more value-adding activities.”

For Ayala Corp. chair and CEO Jaime Zobel de Ayala, who gave the keynote address, more than improving the reskilling and upskilling of workers, companies should re-examine their business models and adapt to generational changes.

“You go back 20, 30 or 40 years from now, just getting a job is important – when [workers] didn’t earn a salary, they move on,” he said. “Nowadays, they want to have real meaning in what they do. They need to see the institutions they work for, whether big or small, contribute something significant.”

Zobel de Ayala said advanced technologies provide new avenues to unlock the talents and energies of workers, including flexible work schedules, cloud-based tools, people analytics and hybrid teams.

The Ayala Corp. chief is a strong believer in the private sector’s capacity to create meaningful change.

“Today’s dynamic and exciting times are slowly giving rise to new skills and ways of working and learning,” he said. “The continued relevance of our companies relies heavily on how well we will ride and adapt to the swing of change.”

Meanwhile, the Philippine government is also adapting to this changing dynamic by determining their priority areas, and working with industry leaders.

Other discussions in the forum focused on supply and demand in the labor market, vocational education, and reskilling and upskilling the workforce.

Other One Step Ahead forums were conducted in Beijing, Hong Kong, Singapore, and Mumbai in the last 5 years.

JP Morgan Philippines chair Roberto “Bobbit” Panlilio added: “We believe discussions like this will provide us with insights, foster new approaches to existing challenges, and generate awareness for a more coordinated and concerted effort to ensure that our youth have the skills, tools and the system they need to thrive in the coming generation.”