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Why some managers are impotent on money matters

I’m a department manager for a major corporation that has averaged P700 million in net revenue in the past five years. What I cannot understand is that all managers are not allowed to make any independent decisions on disbursements as small as P500 for a single transaction. Our decisions on money matters are treated only as recommendations that need the approval of a high-ranking officer, like our vice president. On the other hand, my wife who works for a small corporation has the final authority to sign for as much as P100,000 provided that such expense is covered by a budget. Can you please enlighten me on this? – Pathetically Sad.
The following notice was seen at the desk of a small hotel in a far-flung rural area. “Please introduce yourself to your fellow guests. We are one big happy family here. But don’t leave valuables in your room.”
In many organizations, we are often encouraged by management to practice a proactive, two-way communication process with everyone as a manifestation of goodwill and as a trust offering. However, in actual practice, such reminders are often negated unconsciously through written or unwritten policies.
Many managers have been installed in such responsible positions because the appointing powers believe they can be trusted. Otherwise, if they can’t be trusted, they should not occupy even the post of a junior supervisor for a single minute. Beyond that, the ability of the organization to practice what it preaches can be easily destroyed by the kind of system which you have illustrated.
I’ve seen similar situations in many organizations and the managers appear unconcerned and not worried about its negative implications on their image and credibility. Perhaps they’ve accepted their fate. So, why do some corporations allow their managers to have the authority to sign for as much as P100,000 for a single transaction while others are not allowed to release P500 worth of petty cash without the counter-signature of another corporate official?
It depends on many factors, including the company’s centralization and decentralization policy, the size of the organization, industry practice, the volume of transactions, the ownership structure, the nature of the job or the business, management style, among other things. Most of the time, the expenditures are classified into cash-level disbursements, capital expenditure, and operating expenses. These factors are inter-related and cannot be separated from one another.
However, all of this must be understood within the context that all organizations (without exception), regardless of the size and nature of the business, follow three levels of hierarchical authority. They are situated in a pyramid-like structure that includes top level management, middle management, and junior management.
One, centralization or the concentration of authority at the top, is evident in many Filipino-Chinese companies that don’t give even an iota of signing authority to their managers, even for a P100 emergency cash purchase. Even giant, multinational Japanese corporations do that as a matter of practice, even while mouthing “employee empowerment” in their value statements. Their managers can only give recommendations. Nothing more than that.
Two, decentralization or the dispersal of authority. Approval of disbursements is distinguished between middle and junior managers with the former receiving higher amounts of discretionary authority but lower than that of the top level managers. Decentralization happens for practical reasons and for the convenience of the customers because of the volume of daily transactions. That’s not all, decentralization is also being touted by organizations to train their mid-level and junior management professionals to meet future challenges.
Three, nature of business and industry practice. In the case of the banking industry, bank tellers even if they’re not part of management are allowed to release P50,000 to service client withdrawals or check encashment without the approval of bank officers. Bank officials who are assigned to non-banking functions such as human resources, marketing, accounting, and administration are allowed to sign for as much as half a million pesos for lower-level executives up to one million for middle-level officials.
Being trustworthy is an absolute necessity for managers. A single iota of doubt on the manager’s integrity and trustworthiness is enough to sidetrack a career. Against this, we encounter managers who complain they have no authority to sign anything.
It is easy to commiserate and take pity on them over their predicament.
Is this an issue of trust? Not necessarily. I believe it’s a matter of management style, no matter how unacceptable it has become to the managers who suffer from lack of authority in many family-owned companies.
Some top managers give more senior job titles and pay and perks packages to favored managers even if they possess the same qualifications of their peers. That is their style of thinking. Take it or leave it. And we can’t question that.
ELBONOMICS: A man who doesn’t trust is like a mirror that can’t be trusted.
 
Send feedback or workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting.
Anonymity is guaranteed for those who seek it.

Fifty shades of FINEX

1968 has been portrayed in many publications as the most turbulent year in the 20th century that rocked the very foundations of Planet Earth. It was the year when world history seemed to change daily — with the tumultuous 1960s reaching a political and cultural boiling point in dramatic, game-changing fashion.
In the US, 1968 is often remembered for the assassinations of Senator Robert Kennedy, Sr. and Dr. Martin Luther King, Jr. that triggered nationwide riots. In Europe, it was the year when a student rebellion paralyzed France, while the former Czechoslovakia tasted freedom briefly during the so-called Prague Spring that presaged the fall of the Soviet empire two decades later.
Closer to home, the Vietnam War was raging and the Tet Offensive resulted in heavy casualties on both sides. There was growing international disenchantment toward the war, which was turning into an election issue even in the Philippines where then President Ferdinand Marcos announced plans to seek reelection. Meanwhile, an expose by Senator Benigno Aquino, Jr. on the Jabidah Massacre in Corregidor Island triggered the passage of a bill in Congress calling for the annexation of Sabah in North Borneo.
Such was the backdrop of events when the Financial Executives Institute of the Philippines (FINEX) came into existence in 1968. The prevailing climate of change must have prompted a dozen finance men led by Arsenio Vistro to break away from the Philippine Institute of Certified Public Accountants and form FINEX as a vehicle for the development of financial management in the Philippines.
FINEX quickly established its presence in the national scene and made a mark during its first 25 years that straddled a tempestuous period in Philippine history, including Martial Law and the EDSA Revolution. Over the next 25 years, it survived the waves of global and domestic crises to become the foremost organization of finance professionals in the country today.
To commemorate FINEX’s first five decades of existence, a coffee table book titled FINEX 50: Leading On To Wider Frontiers will be published next month. This collectible edition documents the milestones of the organization, featuring the illustrious men and women who are products of the half-century-old institution.
The book will also offer invaluable information assembled as a comprehensive backgrounder to the FINEX Golden Jubilee celebration and the ensuing continuum of transformation. It hopes to capture the spirit of excellence in professional and capital market development as well as financial and economic reforms that has imbued the organization over a span of 50 years.
As 2018 comes to a close, parallelisms have been drawn between the current year and 1968, which is considered as one of the most divisive years in recent history. For instance, America’s trade war against China is seen as a flashpoint for the resurgence of the Cold War. Another example is the series of “yellow vest” protests in several French cities that are being compared to the Paris youth revolt circa 1968 in terms of impact and disruption.
On the other hand, Filipinos are hopeful that the coming year would be less chaotic and polarizing than the one about to end. This renewed sense of optimism stems from two recent developments: the return of the Balangiga bells signaling a closure to the Philippine-American War of 1899-1901, and the return of the Miss Universe crown with the victory of Catriona Gray in the “World Cup of beauty pageants.”
Have a Merry Christmas and all the best in 2019, dear readers!
 
J. Albert Gamboa is CFO of the Asian Center for Legal Excellence and Chairman of the FINEX Media Affairs Committee’s Golden Jubilee Book Project.

What to see this week

2 films to see on the week of December 21 – December 27, 2018

Haunting on Fraternity Row


A FRAT HOUSE throws the last big party of the year, but when frat brothers and coeds begin dying horrible deaths they discover an evil entity has taken over the house. Directed by Brant Sersen, the film stars Jacob Artist, Jayson Blair, and Shanley Caswell.
MTRCB Rating: R-16

Black Eagle 2 (a.k.a. Black Water)


A CIA agent finds himself imprisoned in a CIA black site on a nuclear submarine after a failed mission. With the help of a rookie agent and another prisoner, he escape and discover who set him up. Directed by Pasha Patriki, the film stars Jean-Claude Van Damme and Dolph Lundgren. “A mediocre submarine thriller that only really comes to life when co-star Dolph Lundgren gets to one-up the Muscles from Brussels,” writes Simon Abrams of RogerEbert.com.
MTRCB Rating: R-13

Episode 2 cannot come soon enough


By Anthony L. Cuaycong
IT’s a testament to the critical and commercial success of Life is Strange that Dontnod Entertainment had already begun work on a sequel even as its final episode was just being released. When the French developer confirmed the piece of news in January 2016, sales had already reached the three-million mark and physical copies were already making their way to store shelves. Episodic adventure games weren’t new to the industry, and yet it managed to present a choice-driven, coming-of-age narrative that transcended the genre. And, understandably, it wanted to build on its singular achievement.
Parenthetically, it was no surprise to find Dontnod leaning on the same group that produced Life is Strange for the next title in the series. Directors Michel Koch and Raoul Barbet were again tapped to lead the effort, backstopped by writers Christian Divine and Jean-Luc Cano, voice director Phil Bache, producer Luc Baghadoust, and composer Jonathan Morali. From the outset, however, it made clear its intent to come up with an altogether new story for the sequel, featuring new characters, new locations, new milieus, and, yes, new dilemmas.
The result, released two and three-quarters years later, is nothing short of remarkable. Considering that only the first episode has been made available, it may well be premature to say Life is Strange 2 is better and more polished. Yet, if Roads is any indication, it’s well on its way to earning its status as a superior sibling. It certainly runs and thrives with concepts and frameworks established by such disparate wordsmiths as John Steinbeck and Jon Krakauer, showing the good and bad sides of the United States while its protagonists travel across the country.
Life is Strange 2 has players in control of Mexican-American high-school teen Sean Diaz. With nine-year-old brother Daniel, he goes on the run from the authorities following an unfortunate development that disrupts their otherwise uneventful lives in suburban Seattle. En route to Mexico with no money and armed only with supplies from the backpack they’re carrying, they experience bigotry and racism, politics and violence (and not always of the physical kind), and a hint of the supernatural. The circumstances they find themselves in inform their relationship, with the elder sibling’s choices — even the seemingly small ones — firming up the younger’s moral code and affecting the direction of the narrative.
As with the original, Life is Strange 2 compels players to make hard decisions, and how they act determines the course of the game. And because nothing is presented in black and white, there is no right or wrong choice. Then again, there are consequences, and the gravity of the effects are certain to be felt moving forward. Sean is faced with having to protect Daniel by the means at his disposal, but at the same time needs to weigh the demands of expediency with their long-term repercussions on an impressionable companion.
In terms of actual length of play, the first episode of Life is Strange 2 is short; Roads won’t take players five hours to finish. Then again, the sure-footed manner with which Dontnod lays it out may well have them playing it anew, or, at the very least, appreciating their experience. Often, the turns in the story will give them pause and make them wonder if things would have been the same had they done something else or gone another way earlier. And if they’re left to their thoughts in the end, looking back wistfully and ahead impatiently, it’s because the game succeeded in moving them.
Certainly, much of Life is Strange 2’s capacity to immerse players in its world can be traced to Dontnod’s painstaking care in making visual and aural cues as realistic as possible. Settings are extremely detailed, and the smoothness of the character animations complement the excellent voice acting. The soundtrack is spot-on, with background music and ambient noise appropriately enhancing the mood at the moment. That said, the taut script and dialogue add the most weight; taking in the plot as it unfolds, players simply cannot help but be caught up in Sean and Daniel’s travails, and, in so doing, reflect on their own.
If there’s any negative to Life is Strange 2, it’s that the second segment cannot come soon enough. Even as Roads possesses high review and replay value, its very excellence figures to make waiting for Episode 2 seem interminable. The original appears to have already been surpassed, with the best yet to come.
POSTSCRIPT:
Shadow of the Tomb Raider (PlayStation 4) — It’s surprising to think that Lara Croft, one of the most iconic videogame badasses ever, could have almost been relegated to the dustbins of history. While Eidos Interactive’s Tomb Raider in 1996 catapulted her to stardom, her subsequent appearances were met with mixed reception. After a decade and a half of ups and downs that included a change in developers, the series suffered from waning public interest, and she was effectively put on hiatus.

Thankfully, Square Enix’s 2013 reboot of the Tomb Raider franchise — via the release of, well, Tomb Raider — was a success, and its 2015 sequel, Rise of the Tomb Raider, was met with similar praise. Critics hailed their stories, dramatic set pieces, and stunning mix of action, adventure, and exploration. And Shadow of the Tomb Raider, last month’s followup on the PlayStation 4, Xbox One, and Personal Computer platforms, looks to provide much of the same.
Shadow of the Tomb Raider finds Croft exploring ancient ruins and vast jungles in Mesoamerica and South America, all in an effort to recover an important artifact stolen by Trinity, a shadowy paramilitary organization bent on triggering a new world order. Amidst the backdrop of apocalyptic disasters, Lara navigates through tombs, avoids deadly traps, hunts animals, and crafts outfits and upgrades for her equipment. Along the way, she relies on her guns, trusty knife, climbing axe, and bow to solve the various environmental puzzles and overcome the many obstacles that bar her path.
As you might expect from a Square Enix game, Shadow of the Tomb Raider looks absolutely gorgeous. Stunning visuals interlaced with amazing, lifelike cutscenes is Square Enix’s forte, and Shadow of the Tomb Raider does not disappoint in this aspect. While some texture pop-ins may occur from time to time, the overall visual fidelity is stunning, and there’s never any point where the game appears ugly.
Everything in Shadow of the Tomb Raider — from Lara herself to the enemies she faces to the environments she traverses — just looks great. The forested areas are brightly lit, vibrant with life and color, while the tombs and crypts are dark and musty with age and dust. Even the odd open-area hubs are forgivable in their appearance; filled with friendly non-playable characters, these are where she accepts side quests from and explores around in for secrets and supplies at leisure.
Yes. Open-area hubs. While a vast majority of Shadow of the Tomb Raider’s gameplay should be familiar to series regulars, the appearance of merchants and introduction of side quests make exploration more appealing. Items found in tombs are no longer just collectibles, but actually add to Lara’s ever-growing inventory of toys to play with. As a result, progression seems fluid and natural. Gold, found in the unlikeliest of places, can be used to purchase guns, ammunition, and extra upgrades. Things like leather and wood can be used to upgrade her bow or repair outfits that give passive boosts to her performance. Exploring optional tombs gives the player better rewards as well, be they in the form of money, items, or experience for skill points. All in all, they serve as wonderful incentives to keep moving forward and search for hidden items and pathways seemingly just out of reach.
Players will quickly move from area to area, hunting, fighting, and swimming their way through the story with little difficulty. Exploration is key in Shadow of the Tomb Raider, and long segments of the campaign have Lara trudging through the forest, alone in the wilderness with nothing but the animals around her for company. Combat sections are placed now and then, though these sequences occur less frequently compared to previous titles, and most of the fighting is purely optional as stealth kills are still available.
The tomb-raiding part of Tomb Raider is still ever present, relying on players’ wits to avoid traps and fast reactions to maneuver through scripted sequences that result in instant death. These are fun, though, sadly, most are locked behind story progression, requiring tools that can be accessed only later in the game. Thankfully, fast travel between areas does exist, making back-tracking an ultimately forgivable annoyance.
All of these things blend together wonderfully in Shadow of the Tomb Raider. It delivers pretty much everything it has set out to do. It’s a very polished but safe title, playing very well and very smoothly, and content to present what the series has already done so before. Efforts to make itself stand out are evident in its progression system and its pacing, but, all told, it provides exactly what it is expected to.
Fans who love the Tomb Raider series will no doubt find themselves spending hours upon hours in Shadow of the Tomb Raider. With a keener focus on exploration and survival, it hits the right notes, and well. (8.5/10)

Ayala Land unit to expand projects in North Luzon

AMAIA LAND Corp. on Thursday said it will start construction of more than 100 units in its residential developments in North Luzon.
In a statement, the economic housing unit of Ayala Land, Inc. said it has completed more than 300 units in its Amaia Scapes projects in Bulacan, Pampanga, Capas, Urdaneta, San Fernando and Cabanatuan.
“This season of goodwill, we can’t think of a more rewarding way to give back to the community than the timely completion and delivery of superior-quality abodes to our future residents. This also reinforces our commitment to making quality home living more accessible to even more Filipinos,” the company said.
Last October, Amaia Land said it launched a 7.8-hectare expansion for Amaia Scapes Bulacan in Sta. Maria, Bulacan. The expansion includes 306 new units in the development in the said area.
This year also marked the completion of Amaia’s amenities in the North Luzon projects. The amenities include village pavilion, basketball court, children’s playground, and swimming pool.
Last month, the company also announced it is developing Amaia Steps Altaraza in San Jose Del Monte, Bulacan. This is the company’s first affordable mid-rise condominium located in the 55-hectare Altaraza Town Center, along Quirino Avenue corner Governor F. Halili Avenue in Brgy. Tungkong Mangga.
“As it enables Filipino families to own affordable yet quality homes, Amaia Land commits to building sustainable communities that support comfortable lives today and in many years to come. Amaia CARES for life, the living, and the spaces around it,” the company said. — Vincent Mariel P. Galang

Disney on Ice

DISNEY On Ice presents Mickey’s Super Celebration will run from Dec. 25 to Jan. 6 at the Mall of Asia Arena. This year’s show is special as it celebrates the 90th anniversary of Mickey Mouse in a worldwide party. Produced by Feld Entertainment Inc., the show opens with Mickey and his friends, Minnie, Donald, and Goofy venturing through the various Disney stories and sharing meaningful moments from treasured tales spanning generations to determine what Mickey’s favorite memory of all time is.

How much have prices of noche buena items risen?

How much have prices of noche buena items risen?

How PSEi member stocks performed — December 20, 2018

Here’s a quick glance at how PSEi stocks fared on Thursday, December 20, 2018.

 
Philippine Stock Exchange’s most active stocks by value turnover — December 20, 2018

Kaliwa Dam completion timeline accelerated

By Victor V. Saulon
Sub-Editor
THE TARGET completion date of the P12.1-billion Kaliwa dam project has been moved forward by a year to 2022, or in time for the current government steps down, a water industry regulator said.
“We have an original timeline of 2023, but I want to finish the project by 2022 before President [Rodrigo R.] Duterte ends his term,” Reynaldo V. Velasco, the administrator of the Metropolitan Waterworks and Sewerage System (MWSS), told reporters after a briefing on the accomplishments of the MWSS this year.
Kaliwa is expected to ensure water security of Metro Manila by tapping the Kaliwa River east of the capital. The Kaliwa River watershed is located in Rizal and Quezon provinces.
He said the Philippines and China signed a loan agreement for the project on Nov. 20 to fund the construction of the dam. It will be built by China Energy Engineering Co. Ltd. starting next year with 2023 as the target completion date.
The award to China Energy includes the design and construction of a 60-meter high dam and a 27.7-kilometer raw water conveyance tunnel.
Mr. Velasco said the loan agreement calls for the Philippines to pay for 15% or about P1.82 billion of the project, which the MWSS previously estimated to cost P12.1 billion.
Kaliwa dam — or the New Centennial Water Supply Project — will be built along the Kaliwa River in the towns of General Nakar and Infanta, Quezon province. It is expected to provide 600 million liters per day (MLD), adding to the existing supply to Metro Manila of 4,132 MLD.
Mr. Velasco said the construction of the dam has not yet started, but the P565 million road leading to it is being built by the Department of Public Works and Highways (DPWH).
He said when the National Economic and Development Authority (NEDA) approved the project, he made it clear that MWSS cannot pay for the 15% share called for under the official development assistance (ODA) agreement with China.
He said he had been given assurances that the funding will be shared with other government agencies, with the DPWH funding the roads and bridges.
He also said the government funding will be paid out over five years, lightening the burden on the MWSS.
Mr. Velasco said MWSS has yet to receive an environmental compliance certificate (ECC) from the Department of Environment and Natural Resources (DENR) ahead of construction. He said he had submitted all the requirements for an ECC to the DENR.
“The timeline (for the ECC) before March because we want that by March… otherwise it will be delayed,” he said, referring to the dry season when construction projects can go full swing.
He said he asked Environment Secretary Roy A. Cimatu for assistance in expediting the ECC approval process as the Kaliwa dam is a national government project approved by NEDA and backed by the president.
Mr. Velasco has said that the construction of the project was first approved by NEDA on May 29, 2014, and also on June 27, 2017 when the financing mode was changed from a public-private partnership to ODA.
He said Kaliwa dam was first proposed 34 years ago. When completed, it hopes to meet the water needs of Metro Manila, Cavite, Rizal and Bulacan.

DICT signs agreement to assist common tower firm with permits

THE Department of Information and Communications Technology (DICT) signed on Thursday a memorandum of understanding (MoU) with ISOC Infrastructures, Inc. and ISOC Asia Telecom Towers, Inc., which plans to build towers for the common use of telecommunications companies.
The MoU signed by DICT Acting Secretary Eliseo M. Rio, Jr. and ISOC President Jesus G. Chua, Jr. allows the company to tap the DICT’s assistance in gaining regulatory approval once it has tower orders from the various telcos.
“The Parties hereby agree that the cooperation between ISOC and the DICT shall be conditioned upon the former securing an agreement with any telecommunications operator in the country which clearly states that such telco operator would avail of the services or make use of the common tower/s of ISOC through lease or otherwise,” it said.
In July, ISOC Infrastructure submitted a P100-billion proposal to the DICT to build 25,000 cellular towers over a seven-year period. The company is a subsidiary of ISOC Holdings, Inc., which is chaired by Megawide cofounder Michael C. Cosiquien.
The MoU signed yesterday will be effective for 12 months. But it specified the need for a separate memorandum of agreement between the government and the private sector which will guide the two on duties and responsibilities for the project.
“The MoU is a commitment for both parties to assist in the common tower scheme… ISOC commits to work with the telco companies in the roll-out of their improvement and expansion plans, especially for those areas that are in immediate need of access and connectivity,” the company said in a statement.
The government is currently seeking to implement a telco infrastructure sharing policy that will require service providers such as PLDT, Inc. and Globe Telecom, Inc. to use cellular towers that may be used by more than one company.
Mr. Rio has said that a common tower policy will reduce the cost of infrastructure roll-out, thereby reducing the cost passed on to consumers.
The draft common tower policy presented in September limits the number of registered tower companies to two, but this restriction was questioned by potential tower builders, telco operators and the Philippine Competition Commission.
The DICT is currently revising a draft policy in accordance with stakeholder comment.
In a text message, Mr. Rio said the agreement does not reflect any features of the upcoming common tower policy, but will allow prospective common tower providers (CTPs) “to immediately start operating based on their capability to get contracts from telcos.” .
“The MoU simply states that once a CTP gets a contract or any commercial arrangement with telcos, DICT will be responsible in facilitating all government permits, right of way, etc, for the installation of towers which could be leased to all telcos. All interested CTPs can send their proposals (5 already did) to DICT, and when found capable, a similar MoU can be signed between DICT and the CTP. The results of these MoUs will also give important inputs in coming up with a final Common Tower Policy. The MoU does not impose any commitment, but to start the building of common towers, and be indicators how the telcos will react to common towers. — Denise A. Valdez

NEDA expects demographic dividend impact felt by 2025

THE NATIONAL Economic and Development Authority (NEDA) said the economic productivity benefits from the demographic dividend will start to be evident by 2025.
“The Philippines is expected to be the last major Asian economy to benefit from the demographic dividend between the years 2025-2070. If not properly addressed, the country would need to wait until at least 2050 to benefit from the demographic dividend, or possibly miss it all together,” the NEDA said in a statement on Thursday.
NEDA said that it is banking on the full implementation of the Responsible Parenthood & Reproductive Health (RPRH) Act of 2012, after the lapse of a two-year temporary restraining order in 2017.
“We need to fully implement the RPRH Law to speed up the demographic transition. If fully implemented now, we should get there by 2025. When people are able to care for their reproductive health and plan for their families, they can save more and invest in their children better. This will lead to a population that is healthier and well educated,” Socioeconomic Planning Secretary Ernesto M. Pernia said.
The law provides universal access to contraception, fertility control, sexual education, and maternal care.
A demographic dividend is marked by accelerated economic growth resulting from the productivity of an expanding work force.
“This transition leads to steadily rising savings and investment rates and, hence, faster economic growth and improved living standards… With a bigger work force that can generate higher income and a less dependent population, the government can allocate its resources for economic development and social services (education, health and nutrition). This is also often referred to as the demographic-economic window of opportunity,” NEDA said.
South Korea, Taiwan and Hong Kong started reaping the dividend in the 1980s, while Singapore and Thailand reached that level in the 1990s.
Thailand was earlier roughly at par with the Philippines in terms of economic and population growth rates. However, Thailand reduced its fertility rate much faster, and was in a position to benefit from the demographic dividend as early as 2000, and hit upper-middle income status in 2011. The Philippines is expected to reach that income level next year.
The Philippines’ fertility rate — or the number of children born per 1,000 women — is 2.9, with a total population of 106 million as of 2017. Thailand’s comparable numbers are 1.5 children per thousand with an overall population of 68 million.
“The time is ripe to lay down the foundation for the Philippines to harness its demographic dividend. It is imperative for both the public and private sectors to work together toward this goal today,” Mr. Pernia said.
“It is to the country’s advantage to make the best of the increasing labor force in order to boost economic output. But the government must invest in human capital through family health and educational interventions,” he added.
Currently, the population is still dominated by dependents amid slow growth in the takeup rate for contraceptives, at 40.4% in 2017 from 37.6% in 2013.
Youth unemployment as of October was 13.3%, against the 5.1% unemployment rate overall.
The government aims to cut youth unemployment to about 8% by 2022.
NEDA also noted that some 4.4 million young Filipinos are not benefiting from skill enhancement provided by education, training, or employment.
Ateneo de Manila University professor Cielito F. Habito has warned that the forthcoming shift to a “demographic sweet spot” may not deliver the promised results, citing a study that about a third of Filipino youth are physically and mentally stunted, pointing to the need for more spending on health and education. — Elijah Joseph C. Tubayan

DENR positive on mining industry’s revenue capacity

THE Department of Environment and Natural Resources (DENR) said its outlook for the revenue to be generated by the mining industry for the government is positive despite changes to the industry’s tax regime being proposed in various tax reform bills.
“We see a positive outlook for the mining industry. What the MICC (Mining Industry Coordinating Council) is saying was the new fiscal regime will happen once the second package of the TRAIN Law is passed and that will really provide a more advantageous package for the government,” DENR Undersecretary Analiza A. Rebuelta-Teh told reporters in a briefing on Thursday.
“In that case, although (a pending bill decreases) the royalty for the mineral reservations, it can be offset (elsewhere) in the new fiscal regime,” Ms. Teh added.
The Department of Finance (DoF) announced this week that the MICC has agreed to conduct the second round of an ”objective, science-based, and fact-finding” review of mining operations for next year to cover the 15 remaining mining firms out of the 41 initially reviewed by the DENR under its former Secretary Regina Paz L. Lopez.
During the meeting, the MICC deferred a recommendation to remove the moratorium on the issuance of new mineral agreements.
“TRAIN only increased the excise taxes and did not cover the implementation of a new fiscal regime for mining. The new fiscal regime proposed by the DoF covers other taxes and fees, such as royalty, windfall, profit and incentives,” the DoF said in the statement, noting that this clarification led the MICC to defer the recommendation.
DENR Undersecretary Jonas R. Leones said that suspended mining companies have to submit their action plans which will be composed of rehabilitation actions to the environmental damage they have caused.
He also noted that mining companies whose operations were ordered to cease also have to submit a progressive rehabilitation plan as well. — Reicelene Joy N. Ignacio