Extraordinary Endeavors in Turbulent Times: Asian Innovation, Inclusion, and Impact during COVID-19

ASIA BUSINESS COUNCIL HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 1 6 Ayala Corp (Philippines) Extraordinary Endeavors in Turbulent Times Ayala Enterprise Circle Importantly, Ayala Corp also sought to support its business partners and customers, many of themmicro, small, and medium enterprises (MSMEs). “We made it a key priority to provide critical and direct support to the very stakeholder ecosystem that helped us become successful,” said JAZA. In addition to providing ₱6 billion ($125 million) in financial relief for these MSMEs during the crisis, the group began to invest in initiatives to encourage their longer-term development. One example is the Ayala Enterprise Circle program, launched in May 2020. The initiative offers MSMEs access to mentorship from industry leaders, online classes, and networking opportunities. In a sign of the demand for such services, the first webinar held during the pandemic was attended by over 900 MSME clients, suppliers, and partners. 13 Under Ayala Enterprise Circle, many of the Ayala subsidiaries provide services targeted at the MSMEs in their sectors. For example, AC Health offers unlimited consultation healthcare plans for individuals and small businesses that otherwise may not be able to access healthcare. Ayala Land provides digital tools for MSMEs, including home deliveries and online marketing support. Future Outlook While the short- and medium-term focus for Ayala is on returning employees to work safely and assessing immediate changes in the consumer landscape, over the longer term the group must evolve to keep pace with permanent changes in the economy. JAZA notes that three trends are expected to impact all aspects of the business. First, traditional working styles will be permanently disrupted. There may well be a “dual structure” where working from home or centers near home at least part of the time will become the norm. Ayala Corp. enabled working from home in the early stages of the pandemic by providing internet access, where needed, and free online learning tools. Secondly, Ayala Corp.’s focus on supporting the broader stakeholder community will become increasingly important. The company’s financial results are a sign of the company’s commitment. Net income after tax dropped by 79 percent in the first half of 2020 to ₱7.9 billion ($164 million). By comparison, the company directed a combined ₱9 billion ($187 million) before tax toward the COVID-19 response during that time. Thirdly, there will likely be a fundamental shift in consumer behavior, with COVID-19 accelerating financial inclusion and boosting digital businesses. Ayala Corp. has benefitted from investments it previously made in digitalization, including investments in telecommunications; a partnership between its GCash app and Alibaba Group’s financial services provider Ant Financial for mobile