Rosauro's Legacy Archive : How the Asian Crisis Nudges PH to Pivot Wisely in the AI Era

Updated September 23, 2025, Published September 17, 2025 at 7:37 PM PHT, 9 min read
by Dennis Cabrera

MSMEs & Remote Workers Can Learn from the Asian Crisis w/ AI

Introduction

The Asian Financial Crisis, which tested the resilience not only of the ASEAN region and East Asia, but every Filipino MSME, is a great lesson in "tibay" at "katatagan". Tibay at katatagan are two Tagalog words which mean: durability and stability (respectively).

Let me tell a story in this context.

As the Asian Crisis raged in the region beginning with Thailand's currency collapse in July 1997, our family, on the side of our father, Rosauro (d. July 1998), experienced 5 consecutive deaths since 1997. The younger sisters of my father complained to me in one of the funerals; they felt it was "malas" (translation: bad luck) not to change their black clothes of mourning for regular attire after a year ("hubaran ng luksa") - (translation: end of year of mourning). They wore black all the time in the span of just two years, with 5 funerals occurring one after the other, with a span of a few months! Our faith encouraged us not to give up; we kept on moving [1].

With a microfinancing family business suddenly to take care of from my father's management, we almost decided to close it. What kept us going were the sincere and honest demands of our clients/customers in September 1998:

"Naku, mag-pa-Pasko pa naman!" (translation: "OMG, it will be Christmas soon!")
"Sayang! stable naman 'yan." (translation: "It would be a waste if you do not continue.")

We had to think fast with a business strategy. I implemented it by raising our interest rate and increasing our membership fee just in time for the release of the Christmas bonus and 13th-month pay of the employees. With:

(1) a mission-fired people-first attitude learned from theological studies in CICM Maryhill School of Theology,
(2) the "men for others" motto of the Jesuits of Ateneo de Manila University in their spirituality and educational system,
(3) the "honor system" taught by well-seasoned teachers at La Salle Green Hills, and
(4) the conservative norms taught by our parents and the moral/financial support of our extended family system,

Our microfinancing business survived the Asian Financial Crisis. We recovered with the needed revenue and ROI. We learned in the long-run that the crisis and its effects are not only capable of being mitigated; with sound strategy and persistence, they become manageable and ultimately solvable.”

To what extent did the Asian Crisis affect the PH?

As the Philippines had all the symptoms of a financial crisis, it really was not a direct casualty of the crisis. What has kept it from acquiring the severity that others like Thailand and Indonesia have experienced is its late exposure to the symptoms. After the Thai Baht collapsed in value on July 2, 1997, the crisis was immediately transmitted to the country through the sharp depreciation of the Philippine peso, from a stable rate of Php 26.4 to a U.S. dollar in June 1997, to a rate of Php 42.7 by January 1998 [2].

How can financial awareness be a key to resilience?

A report and study from Germany concludes that the Philippines endured the Asian financial crisis relatively more successfully than its ASEAN neighbors for two reasons:

one, its financial system was in better shape than others in the region, and
two, because it had a uniquely low vulnerability to the financial contagion.

Because the Philippines had already been grappling with its own local financial crises (working against the uncalled-for tag of "the sick man of Asia"), it had been undertaking measures to strengthen its domestic financial system.

It was this "awareness" and the country's efforts to implement financial market reform that gave it just enough strength to adapt and manage the crisis. Other countries around the world can learn from the country's experience to avoid or mitigate an even bigger problem. From that experience, PH financial "resilience" stems from

working on the domestic level, and
working to mitigate the regional effects of the financial contagion [3].

How can PH MSMEs & Profs pivot wisely for the shift to AI?

If financial "awareness" and current proactive measures to stabilize income and a better-planned ROI are key to resilience, then to pivot wisely in the transition to AI, one must upskill in the integration of financial literacy and AI. This means PH MSMEs and professional remote workers ought to invest in:

people, such as clients/customers, (or stable financial connections with PH banks and fintech) that pay long-term revenue and ROI
the training of employees on AI collaboration (learning to work with, not compete with AI),
continually updating one's literacy in the digitalization of financial management, and
learning higher-order thinking skills that complement AI automation rather than compete with it [4].

Meta-learning (or learning how to learn) and high-level strategic thinking are the most future-proof human skills that are important in the pivot to AI. In today’s knowledge-driven world, marked by human resilience, rapidly evolving technology, and multi-purpose AI tools, the best upskilling strategy is to be adept at quickly learning, adapting, and synthesizing new knowledge in both work and life.

How to invest in sustainability rather than expansion?

The experience of the Asian financial crisis in our microfinance business was an important lesson in executing strategic timing and prudent financial management. To prepare for any disruption, such as a financial collapse, a proactive AI financial strategy is called for. This move ought to make MSMEs and professionals know:

how to strategically upskill in AI literacy and invest in AI financial tools adoption,
avoid the many debt traps of the past and prioritize conscientiously "the bottom line", and
to prioritize smart, sustainable growth over rapid, risky expansion [5].

The lessons of the Asian financial crisis reinforced our belief in conservatism, practicality, and the value of prudent financial management based on extended family traditions.

How AFC reminds us of community, connectivity, & people-1st

During the Asian Financial Crisis (AFC), communities across East and Southeast Asia relied on one another to survive. That is what we also did in our own family business, which was heavily invested and rooted in the culture of Asia's extended family system. In the transition to AI, this communal spirit is a very strong asset. Community, connectivity, and a people-first attitude are made stronger because they occur now on two planes that can be integrated: the on-site and interpersonal plane with the electronic world of digital communications. A proactive strategy, therefore, is to invest and build on shared digital hubs and social media networks that extend to the physical space. This certainly can help remote workers and MSMEs pool resources, share knowledge, and collectively navigate the challenges and opportunities of AI [6].

How "think global, act local" lead to sustainable growth?

From the lessons of the Asian Financial Crisis, MSMEs in the Philippines now face a new challenge: to wisely harness AI without losing sight of local realities. By adopting a 'think global, act local' mindset, entrepreneurs and professionals can profit from well-timed strategies that merge global AI innovations with practical, community-rooted solutions, driving sustainable growth and resilient global-local partnerships. Thinking long-term over short-term assures a better revenue stream and a realized ROI.