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Solar irrigation rollout targeted for early 2020

THE Department of Agriculture (DA) and various other agencies have agreed to fast-track the Solar-Powered Irrigation project so the network will be largely in place by the next El Niño.

“Today with NIA (National Irrigation Administration) and BSWM (Bureau of Soils and Water Management), we agreed to fast-track the project because this is the only way we can protect our farmers from next El Niño,” Agriculture Secretary Emmanuel F. Piñol said in a briefing Thursday.

“We have to fast-track it because if hindi namin mahabol [the system is not in place] by early 2020, 2021 [will be the next window for] implementation,” he said.

Currently, the dry spell has caused crop damage worth P7.96 billion with an estimated volume of 447,889 MT worth of output lost.

The interagency committee met today to draft the national irrigation map (NIM), a plan which hopes to identify more areas for food production along with the needed water resources.

An Israeli company, LR Group, has offered to fund the deployment of 6,200 solar-powered irrigation units for P44 billion. These units have the capacity to irrigate 500,000 hectares, out of the over two million hectares estimated to be in need of irrigation.

“(LR Group) agreed that as things stand now, they are not part of the project because it will be a government-to-government engagement. We are waiting for a document from the Israeli government for a Memorandum of Agreement (MoA) on the solar-powered irrigation system project cooperation,” he said.

The Philippines has a total of 3.9 million hectares of farmland, with only 1.2 million hectares effectively irrigated.

After the document is studied by the DA’s legal team, it will be signed by the DA and the Israeli government. Then, the department will submit a proposal to the National Economic and Development Authority -Investment Coordination Committee (NEDA-ICC), which will then approve the project, setting up a Swiss Challenge, where alternate providers can submit better bids while LR holds the option to match them.

The funding plan calls for repayment within 10 years and a grace period of two years. The total cost of the project is P50.5 billion, including counterpart funding of P6.6 billion.

Mr. Piñol said the DA hopes to submit the proposal to the NEDA-ICC by June.

Mr. Piñol added that the current dry spell struck at a time when many crops were being harvested or had reached maturity. As a result, the DA is maintaining its 20 million metric-ton (MT) target for rice this year and 8.64 million MT for corn. — Vincent Mariel P. Galang

Piñol says pork imports cannot be restricted amid calls for protection

THE Department of Agriculture (DA) said pork is a deregulated commodity which businesses are free to import, amid complaints from domestic producers about oversupply and the resulting tight supply conditions for cold storage.

“We cannot stop it because it’s a deregulated commodity. For as long as you pay tariffs, for as long as you don’t smuggle it,” imports will be allowed, Agriculture Secretary Emmanuel F. Piñol said as he opened the Mango Festival at DA headquarters Thursday.

“We are looking at this problem not from a position that we offer temporary solutions, but institutionalized solutions,” he said when asked what can be done with the oversupply.

Mr. Piñol has announced possible plans to “rationalize” the importation of both hog and poultry. He noted that “poultry in cold storage right now is about 27.805 million kilos. For pork it’s 34.330 million kilos,” which he said was equivalent to three months’ supply.

Due to low world prices for hogs of hog, domestic producers cannot compete with imports due to high production costs, especially hog raisers using commercial feeds. In response, the government is aiming to expand sorghum production by next year to help keep a lid on feed costs. It hopes to expand the area planted to sorghum to 200,000 hectares by early 2020.

Sorghum is one of the five most important cereal crops along with rice, wheat, maize, and barley. It is also suited to hot and dry regions and able to withstand drought.

He said the DA is looking into encouraging the private sector to export pork to China to tap demand there due to the Chinese hog industry’s current struggles with African Swine Fever (ASF).He noted that about 20 million hogs in China have been affected by the virus.

The DA has banned imports of pork from affected countries such as Cambodia, Vietnam, Japan, China, Hungary, Belgium, Latvia, Poland, Romania, Russia, Ukraine, Bulgaria, the Czech Republic, Moldova, South Africa and Zambia.

“I cannot take the risk. We have to be very strict about this because the moment na pinasukan tayo ng ASF [ASF enters the country], mamamatay ang ating hog industry [our hog industry will die],” he said.

According to data from the Philippine Statistics Authority (PSA), the total Philippine swine population as of Jan. 1, this year, was 12.71 million head, up 0.83% from a year earlier. — Vincent Mariel P. Galang

OWWA, TESDA agree to provide skills training for OFWs

THE Overseas Workers Welfare Administration (OWWA) said it will tie up with the Technical Education and Skills Development Authority (TESDA) to provide skills training and technological education for returning Overseas Filipino Workers (OFWs).

OWWA and TESDA signed a memorandum of agreement (MoA) Wednesday “to collaborate in a partnership venture to strengthen TESDA’s purposive intervention for returning OFWs, and also explore the development of a joint project on technical education and skills training, as well as assessment and certification for returning overseas Filipinos through the Comprehensive OFW Reintegration Program Framework.”

“The primary purpose of this Agreement is to formalize the partnership between the parties in skills training, technical education and assessment & certification for returning OFWs,” according to the MoA.

The programs provided under the OWWA-TESDA MoA will admit OFWs and their families.

Present at the MoA signing were OWWA Administrator Hans Leo J. Cacdac; Department of Labor and Employment Secretary Silvestre H. Bello III; TESDA Secretary Isidro S. Lapeña; TESDA Director-General for Linkages and Partnerships Rebecca J. Calzado; and Trade and Industry Secretary Ramon M. Lopez.

Also covered by the MoA are the Onsite Assessment Program (OAP) and skills training which the OWWA and TESDA will bring to countries where OFWs are based, prioritizing countries with the high numbers of distressed OFWs.

OWWA and TESDA are also authorized to implement an “evaluation mechanism” which will measure the success rates of the initiatives provided under the agreement. — Gillian M. Cortez

Malaysia halal show generates $42M for Philippine firms

PHILIPPINE exhibitors generated $42.08 million worth of sales and investment leads from over 300 foreign buyers at the Malaysia International Halal Showcase (MIHAS) last month, led by food products.

In a statement Thursday, the Department of Trade and Industry (DTI) said 24 companies exhibited Philippine halal-certified products, as well as some of the country’s top tourism destinations, in a national pavilion set at the exhibit that ran four days to April 6 in Kuala Lumpur.

Firms from the Zamboanga City Special Economic Zone generated a total of $30.15 million worth of investment leads while halal products and services generated $11.93 million of sales and orders, up from the $10 million in 2018.

DTI’s Center for International Trade Expositions and Missions Executive Director Pauline Suaco-Juan said 11 out of 24 companies were first-time participants, part of an effort to tap a global halal market estimated at $3.2 trillion.

The eleven new companies were Aliments Makkhan Bistro and Café; Baker’s Field Enterprises; B&C Healthy Snack Foods, Inc.; Cassava Growers and Processors Association; EJT Food Products; Gee’s Agri Coco Products; General Nutrifoods Phils, Inc.; Herbio Agrinature Processing Center; Mira’s Turmeric Products; Permex Producer and Exporter Corp.; and RK Trading and Services.

Returning companies were Ahya Coco Organic Food Manufacturing Corp.; Alter Trade Corp.; Asian Halal Centre; Castillejos Agri-Farms, Inc.; Central Affirmative Co., Inc.; C&H Cosmetics Industry; Fruits of Life, Inc.; Greenlife Coconut Product Phils., Inc.; Magic Melt Foods, Inc.; MFP Home of Quality Products; Psalmstre Ent., Inc.; Stalder Laboratories, Inc.; and Wellness Care Int’l Corp.

Among the best-selling Philippine halal products were cassava chips, coconut water, virgin coconut oil, turmeric brew and canned tuna. For non-food products, whitening soaps and perfumes sold the most.

“We have been successful in our return to showcase our premier halal-certified products and make a statement that our country is ready to meet the demands of the growing global halal market,” said Ms. Suaco-Juan.

MIHAS is considered the world’s largest annual halal event, offering networking and business opportunities for halal exhibitors and buyers. In 2017, it welcomed over 22,000 trade visitors from more than 70 countries.

The four-day event is hosted by the Ministry of International Trade and Industry and organized by the Malaysia External Trade Development Corporation in association with the Halal Industry Development Corp. and the Department of Islamic Development Malaysia.

The DTI aims to increase the country’s exports of halal products by 6 to 8% to as much as $605 million in 2019, from $560 million in 2018. Of the halal exports last year, 90% were food and non-alcoholic beverages.

The DTI estimates that the country currently has more than a thousand halal-certified products. — Janina C. Lim

PSALM in new round of compensation payouts

THE Power Sector Assets and Liabilities Management Corp. (PSALM) resumed its distribution of compensation checks to individuals, families, and enterprises that were affected by the power barge 103 oil spill at the height of Super Typhoon Yolanda.

In a statement, PSALM said the new round of payouts took place on April 11.

The 32-megawatt PB 103 was moored at Barangay Botongon in Estancia, Iloilo when it ran aground due to strong winds and a storm surge on Nov. 8, 2013.

It said 23 of the 26 beneficiaries, hailing mostly from Barangays Botongon and Poblacion Zone I, form part of the sixth and latest batch of claimants where PSALM paid a total of P340,428 worth of indemnities. Beneficiaries who were not yet able to claim their checks may approach with the agency to arrange payouts.

PSALM’s settlement of third-party claims is based on the recommendation of the Government Service Insurance System (GSIS) adjuster, Claims Services International Adjusting Co., and the endorsement of GSIS.

It said to date, a total of P7,798,175 has been settled and released to the first to sixth batch of claimants.

Immediately after the incident, PSALM provided financial aid amounting to P2 million to Iloilo families affected by the oil spill through the provincial and municipal government. — Victor V. Saulon

Invitation still open for Chinese merchant power plant builders — Energy dep’t says

THE Department of Energy (DoE) said it will continue to pursue a program inviting China to put up merchant power plants in the Philippines to help augment the supply deficiency.

Energy Secretary Alfonso G. Cusi told a legislative hearing on Thursday;

“We asked both Japan and China to help us put up a merchant plant and this is part of an MoU (memorandum of understanding) that we successfully signed in China.”

He was appearing before the Joint Congressional Power Committee (JCPC) to present the DoE’s initiatives to respond to the deficient power supply on the Luzon grid, which resulted in yellow and red alert notices from the system operator as reserve power thinned, resulting in rotational brownouts in April.

Aside from the China-funded coal-fired power plants, the DoE has encouraged private sector investment in the construction of an import facility for liquefied natural gas (LNG).

In March, Mr. Cusi said he had issued the notice to proceed to Lopez-controlled First Gen Corp. and Tokyo Gas Co., Ltd., which have signed a joint development agreement to build an LNG facility.

“I have received the invitation of Tokyo Gas and First Gen (for) their ground-breaking (on) May 29,” he said.

Mr. Cusi said his invitation to China was first brought up during his visit to that country in 2016, which led to the signing of the MoU in 2017, and further firmed up during the visit of President Rodrigo R. Duterte to China last month.

Mr. Cusi was part of that visit for the second Belt and Road Forum, which came at a time when tension between the two countries had been heightened.

He said instead of asking for a grant, he had asked China to provide funding to Chinese investors in building merchant power plants, or those without a signed power supply agreement (PSA), but sell their output on the electricity spot market.

“The available supply will be put in the electricity market and will be there upon demand,” he said.

He said China had committed to build merchant plants with a capacity of between 600-1,200 megawatts (MW). Chinese investors are looking at putting up a plant in Luzon and another in Cebu, each with a capacity of between 300-600 MW.

Mr. Cusi said the specific location of the two plants will be up to the Chinese investors after taking into consideration the system impact study.

“DoE is trying to build capacity and we are technology-neutral because we understand the need to have sufficient capacity. Some LGUs (local government units) are prohibiting the establishment of some technology,” he said, referring to resistance by local officials to coal-fired power plants.

“For example, Negros has a not-in-my-backyard policy,” he said. — Victor V. Saulon

MORE transparency in China deals

Three China-related business stories in BusinessWorld last week caught my attention, short quotes from them are shown:

1. PHL, Chinese firms sign $12-B in business deals (April 27):

“THE Philippine business delegation and Chinese companies on Friday signed 19 deals worth $12.165 billion… This included one contract agreement, three cooperation agreements, two purchase framework agreements, and 13 Memoranda of Agreement (MoA) or Understanding (MoU).”

2. ALI plans to develop country’s first Sino-PHL industrial park (April 29):

“AYALA LAND, Inc. (ALI) is riding on the influx of Chinese firms coming to the Philippines as it plans to acquire up to 200 hectares of land in Central Luzon.”

3. Udenna-China Telecom deal may prompt more Chinese firms to enter Philippines (April 29):

“THE $5.4-billion deal signed last week by Udenna Corp. and subsidiary Chelsea Logistics Holdings Corp. with China Telecommunications Corp. for a telecommunications joint venture may prompt more Chinese firms to pour investments in the Philippines.”

No details were given in story #1, the Ayala conglomerate is also cashing in on growing China investments in story #2, and Udenna seems to be the main entry point for more China investors.

Is the Philippines slowly being swamped by China capital, China imports, China tourism and visitors?

I checked relevant data to help me answer this question. On merchandise exports, China is the fourth market of the Philippines in 2018 while its dominance as #1 source of imports is further cemented in 2017-2018 (see table 1).

Philippines trade by trading partners, $ million

In foreign direct investments (FDIs), investors from China catapulted to #4 in 2018 with nearly $200 million, from below $30 million in 2016-2017. Investors from Singapore, Hong Kong and Japan remain the top sources of long-term capital in the Philippines (see table 2).

Net FDI by country of origin, $ million

And in tourism, Chinese tourists are inching fast with nearly 1.3 million visitors in 2018, hoping to dislodge S. Korean visitors in a few years while visitors from the US including Filipino-American balikbayans have also breached the 1 million level (see table 3).

Tourism arrivals in Philippines by country of origin

China is known for large-scale secrecy in business and political numbers, there is a tendency to understate or overstate certain figures. The imports from China figures, while already big, should be much bigger as it is common knowledge that large-scale smuggling occurs until now and most of the goods easily land in Divisoria, Quiapo, Baclaran, and other big mass-market areas.

The huge number of undocumented and un-permitted Chinese workers in the Philippines is another issue, especially in the Philippines overseas gaming operations (POGO).

The market-oriented reforms for efficiency (MORE) needed is to have more transparency in the actual number of workers, tourists, businesses, investments, imports from China. The DOF, DOLE, SEC, etc. are known to be strict with Filipino businesses but they seem to be grappling for regulations and taxation of these Chinese enterprises. President Duterte’s favoritism with China and Xi Jinping need not be followed by the line agencies. More on China later.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

What Press Freedom’s For

World Press Freedom Day has always been the occasion for responsible journalists to reexamine the state of one of the fundamental needs of ethical practice. This year as in 2018, May 3rd was not so much an occasion for celebration as for alarm. As in many other parts of the world, the independent press is under siege from a government that has made it its life work to harass, restrict, threaten and silence it, and to even arrest practitioners for daring to report the truth.

Filipinos should be asking why every regime from Ferdinand Marcos’ to Rodrigo Duterte’s has looked at independent journalists and media organizations as the enemy. The conventional answer is that governments fear a free press because it can expose official wrongdoing. But journalism is also one of those human enterprises that has the power to either help bring about change if the information it provides is accurate, fair, relevant and complete, or to retard and prevent it if its reports are false, biased for certain interests, irrelevant or just plain incompetent.

Change is this country is publicly accepted as urgent even by those opposed to it. Duterte came to power in 2016 on the wave of the demand for change and even revolution by promising that change is coming, and even Marcos promised to “make this nation great again” in 1965, and to “save the Republic and reform society” when he declared martial law in 1972.

No one in power has ever said they’re against change for obvious reasons. Some 22 million Filipinos are officially considered poor, with some 50 to 60 million more being vulnerable enough for the quality of their lives and those of their families to be at risk when illness, the loss of a job, or the death of a breadwinner, a son or a daughter, or runaway inflation, befall them.

Social unrest and the rise of revolutionary movements are among the consequences of this true state of the nation. But the oligarchs in control of the Philippine state, while claiming to be committed to change, have used various means including violence and force to suppress the social and political consequences of poverty rather than address their causes. The outstanding example so far is the declaration of martial law in 1972. But a repeat of it is increasingly becoming likely in these perilous times — if an undeclared version of it isn’t already here.

It should be more than evident that under these conditions, the primary task of journalism is to provide the information and analysis crucial to mass understanding of the dimensions and roots of, and the possible solutions to, Philippine poverty and its attendant consequences. It is the necessary condition to putting in place the changes so urgently needed in this vale of tears. But as an institution that can flourish and achieve that task only under conditions of freedom not only for itself but also for all, the press is also called upon to combat dictatorship and tyranny and to defend and enhance everyone else’s freedom as well as its own.

The bad news is that, with very rare exceptions, much of the journalism that we see is not doing either. The verbal, physical and supposedly “legal” attacks and pressures against the press are continuing. There is the ban on some reporters’ coverage of Malacañang and the cancellation of online news site Rappler’s registration and the tax evasion cases that have been filed against it.

The same public relations rag that claimed that some independent media organizations are part of a conspiracy to overthrow the Duterte regime has urged its government sponsors to shut down media groups that receive foreign funding. The insults and hate speech directed at critical journalists not only by regime-paid trolls and its old media mercenaries, but even by President Duterte himself have not abated.

Despite these assaults on individual practitioners and media organizations, and the consequent need to be better at describing and explaining what is happening and why, there is little sense of urgency evident in much of the reporting in broadcasting, print and online news sites.

However, despite the threats, the insults, the harassments, and the killings — 164 since 1986, of which 12 happened during the current regime — there are nevertheless journalists in both the corporate and alternative media who’re doing the best they can by getting at the truth, and reporting and interpreting it.

There is indeed corruption in the media, as President Duterte has often said. It is a reality every honest practitioner knows, and which has been amply documented. But it isn’t the Philippine Center for Investigative Journalism (PCIJ) or Rappler he should be accusing of being bought and paid for, but those practitioners and media organizations that daily subject the media audience and social media with false and misleading information in behalf of his government and other interests. Corruption in the media is real enough, but it is mostly the vice of those “journalists” in the pay of government and the media organizations they work for whose interests are closely linked with those of the powerful.

There are journalists in this country who are making the best of a bad situation, who daily risk life, limb and fortune in the service of getting at the truth, and who are therefore competently discharging the fundamental responsibility of providing the media audiences the information they need to make sense of what is happening. But there are also those creatures — one hesitates to call them journalists — who have made a career out of spreading false and distorted information to serve the political and business ends of their patrons as well as of themselves.

What’s even worse, however, is that the vast majority of media practitioners assume that their responsibility ends once they’ve quoted the powerful despite the urgency of combating misinformation and disinformation. Their work mostly consists of “he-said-she-said” reporting, in which the claims, no matter how ridiculous, stupid, tasteless and dangerous of this or that side in any issue, as well as the lies of those whose agenda is to mislead media audiences with false, misleading and distorted information in order to retard change and frustrate the democratization of Philippine society, are quoted without analysis, critical discernment, or context.

This kind of reporting isn’t journalism but stenography, as the Australian film maker and journalist John Pilger warns. The journalist’s task, in the words of Bob Woodward who, together with Carl Bernstein, exposed the conspiracy behind the Watergate break-in that led to the resignation of then US President Richard Nixon, “is getting the full story — and the meaning of that story.”

May 3rd was appropriately the occasion to lament, and to pledge resistance to, the attempts of government to abridge press freedom. But to that should have been added the need for much of the media to re-examine how they have been doing their job, and how their reluctance to go beyond simply quoting what this or that source, specially the powerful, say has contributed to keeping their audiences clueless about the most important issues of our time — and in the process has made a mockery of such democratic exercises as elections.

Journalists must ask a multiplicity of sources the right questions not only to get the facts but also to provide their print, broadcast or online audiences the meaning of events. Freedom of the press is not just about the right to air, say or print anything according to one’s best lights and conscience. Even more urgently does its practice include the duty of creating the informed and engaged audience that is urgently needed in times of peril to both the press as well as the entire nation such as the present.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

May Day and the march of the machines

What should be utopia could become dystopian.

So Bloomberg reports that “almost half of all jobs could be wiped out or radically altered in the next two decades due to automation.”

And these “changes in employment will hit some workers more than others — particularly young people with lower levels of education and women who are more likely to be under-employed and working in low paid jobs” (“Automation Could Wipe Out Almost Half of All Jobs in 20 Years,” 25 April 2019).

To the glee of some, the “hit” includes the legal profession. The World Economic Forum (“This AI outperformed 20 corporate lawyers at legal work,” 15 Nov. 2018) relates how “a group of 20 experienced lawyers [was challenged] to test their skills and knowledge against its AI-powered algorithm.”

“When it came to speed, the AI far surpassed the legal minds, taking just 26 seconds to review all five documents compared to the lawyers’ average speed of 92 minutes.”

The WEF thus goes on to point out that 23% of a lawyer’s function can now be duplicated by artificial intelligence. However, it is posited here that more likely another 25% could be removed from lawyers due to technology as a whole.

This indicates that the law profession and legal education are strongly invited to change and adapt as efficiently and quickly as possible.

In which case, the proper direction for legal education is not technical specialization at the law school level but rather one that will lead to a profession that is more analytical, capable of melding different disciplines, and can lead in identifying opportunities or open strategic possibilities rather than mere solutions.

This would in greater probability entail either far far fewer but far far better lawyers.

The other route is to bifurcate the profession, either by competence or expertise (e.g., Britain’s solicitor/barrister model or medicine’s fellow/diplomate stratification).

The better strategy seems to be both: develop better lawyers first, then bifurcate the profession.

But for overall, the effects of automation seem indeed bleak. Particularly because not many have gone beyond the stage of accepting there is indeed a problem.

assembly line factory

This matter of automation should be an election issue, considering the likely damage it could cause to Philippine levels of employment and economic development if not managed properly.

That is within the current context of 2.2 million Filipinos unemployed, around 5 million underemployed, and 10 million Filipinos forced to go overseas due to lack of comparable work.

A paper by the Center for Global Development’s Lukas Schlogl and Andy Sumner (see “Economists worry we aren’t prepared for the fallout from automation,” The Verge, 02 July 2018) precisely asked if we are “focusing too much on analyzing exactly how many jobs could be destroyed by the coming wave of automation, and not enough on how to actually fix the problem?”

Both Schlogl and Sumner “say it’s impossible to know exactly how many jobs will be destroyed or disrupted by new technology. But, they add, it’s fairly certain there are going to be significant effects — especially in developing economies, where the labor market is skewed toward work that requires the sort of routine, manual labor that’s so susceptible to automation. Think unskilled jobs in factories or agriculture.”

Interestingly, Schlogl and Sumner “think the effects of automation on these and other nations is not likely to be mass unemployment, but the stagnation of wages and polarization of the labor market.”

Yet, at the other end of the employment spectrum, “there will continue to be a small number of rich and super-rich individuals who reap the benefits of increased productivity created by technology.”

Overall, the “changes will likely mean a decline in job security and standards of living for many, which in turn could lead to political dissatisfaction.”

So how should automation be confronted?

Some opt for deceleration in reliance on machines. And there have been calls, for example, to rid fast-food centers of computerized wait staff, as a start. Another option is to look to retraining of people and enable a shift to different industries.

Both are unworkable, the former for being nearly impossible to implement and the latter for being too slow regarding results and overly demanding on the workers involved.

So while viable solutions are still being sought, nevertheless, Dr Hayaatun Sillem, Chief Executive of the Royal Academy of Engineering, says (“Automation Is An Opportunity Not A Threat, Says Top U.K. Engineering Academic,” 11 July 2018, Forbes): “People should look at the ongoing transformation from a prism of not how many jobs will go, but rather at the changing nature and scope of roles and tasks. We should be optimistic that there would be many new jobs created partly through the fact that technology would enable us to do things we could not previously do.”

Most importantly, “we all need to have a degree of humility when it comes to the subject of predicting the skills that we need for the future.”

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

jemygatdula@yahoo.com

www.jemygatdula.blogspot.com

facebook.com/jemy.gatdula

Twitter @jemygatdula

a pebble

A pebble tossed into a pond creates ripples. A small deed has the same effect by the tiny ripples that reverberate and swell into bigger, wider circles. The slightest pressure can topple a series of unsecured bricks in a domino pattern. Over a period of time, a hairline fissure or flaw widens into a yawning chasm with movement underneath it.

dug out pool hand
PEXELS.COM_ISANDRÉA CARLA

These metaphors illustrate the possible effects of our actions.

When viewed from the objective perspective of time and distance, a perplexing jigsaw puzzle could finally make sense. An obscure image would slowly clarify and emerge and into the light.

As we arrive the crossroads of a career or deliberate the choice of a lifestyle, we are forced to select from diverse options. The dilemma of divergent directions.

In a quandary, the horizon may appear hazy. Perhaps the timing is off. To take a calculated risk, one weighs the available data and attempts to assess the odds.

Rational thinking is a major component of any decision. Whenever possible, we should balance objectivity with a dose of intuition or gut feel. The subconscious is an alternative source. It is a fountain of possibilities.

It may not be possible to predict the outcome or the future consequences if any decision. If we are cautious, we can make a calculated risk and hedge against probable obstacles. This would cushion or diffuse the final impact.

A developed sense of intuition may help resolves a problem. It could provide the hidden insights or leads that are valuable.

In Jungian parlance, we should tap into the collective unconscious for the answer. Listening to the inner voice would make all the difference.

***

In the normal course of one’s profession an individual has to make critical and painful decisions such as downsizing a department or retrenchment. Or it means the transfer and retraining of personnel in the re-engineering program. A boss would have to select people to retain or recycle when an interpersonal conflict arises or a big snafu happens.

Where doe one draw the line between what is good for the company or what will benefit only a chosen few?

The institution, without question, always takes precedence over everything else. Business over personal interest. What is good for the company prevails.

In the technologically progressive company, at tug-of-war happens. Human resources versus electronic machines. On the basis of standards of efficiency, the use of automation has already effectively reduced the number of employees and manpower hours. Expenses could be further minimized. Profit margins could be increased.

Our concern is the human factor. How does the individual fit into the entire scheme, the corporate strategy? In the spirit of modernization, technological advancement and re-engineering, will the individual eventually be replaced by a robot or computer? Will he be sacrificed in the race?

A drastic cut in manpower would result in job displacement – underemployment and unemployment. Many lives, the employees and their extended families, would be adversely affected.

While business people are primarily concerned with attaining a healthy bottom line and profits, there are other meaningful factors. One should consider the intangibles such as the human dimension, social responsibility, and environment.

In the ideal balance sheet, the bottom line should include: Net Profit plus Values.

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

Peso rises on S&P move

THE PESO strengthened against the dollar on Thursday, returning to the P51 level, as the sovereign credit rating upgrade from S&P Global Ratings boosted investor appetite for the local currency.

The peso closed Thursday’s session at P51.87 versus the greenback, 23.5 centavos stronger than the P52.105-per-dollar finish on Tuesday.

The peso traded stronger the whole day, opening the session at P51.77 versus the dollar. It dropped to as low as P51.945, while its intraday high reached P51.74 against the US unit.

Trading volume slipped to $1.246 billion from the $1.404 billion that switched hands the previous session.

Traders interviewed yesterday attributed the peso’s strength to the debt rating upgrade from S&P.

On Tuesday, the debt watcher raised the country’s long-term sovereign credit rating to “BBB+” from “BBB,” two notches above the minimum investment grade.

A higher credit rating can enable the government and private companies in the country to borrow funds abroad at a cheaper cost.

The debt watcher took note above-average growth and strong external and fiscal position which have boosted the country’s economic profile.

“The peso opened significantly stronger, although it went higher intraday since the story was still a strong dollar overnight following the pronouncement of Fed (US Federal Reserve) Chair Jerome Powell,” a trader said in a phone interview.

The US central bank kept its rates steady at 2.25-2.5%, despite pressure from US President Donald Trump to ease policy rates to stimulate the economy.

“We have an economy where the expansion is continuing, growth is at a healthy level, the labor market is strong, we see job creation, we see wages moving up. Inflation is low, which gives us the ability to be patient,” Mr. Powell said.

The trader added that the US central bank’s statement was “more hawkish than expected,” as market participants awaited hints of a rate cut.

“Powell said they believe current policy stance is okay at the moment. They don’t see changes to come any time.”

For today, the trader expects the peso to move between P51.65 and P51.90, while another trader gave a P51.70-P52 range.

“The local currency might strengthen ahead of slightly weaker US non-farm payrolls report,” the second trader said in an e-mail. — Karl Angelo N. Vidal

PSE index returns to 8,000 level on S&P upgrade

By Arra B. Francia, Senior Reporter

LOCAL EQUITIES firmed up on Thursday, as investors reacted positively to the country’s rating upgrade from S&P Global Ratings.

The benchmark Philippine Stock Exchange index (PSEi) breached the 8,000 mark yesterday after it climbed 0.61% or 48.85 points to 8,001.57. This marks the PSEi’s return to the 8,000 level since April 10.

The broader all-shares index likewise climbed 0.47% or 23.33 points to 4,912.89.

“The spotlight focused on the Philippine market as the country got a boost from its credit rating courtesy of S&P,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

S&P raised the Philippines’ long-term sovereign credit rating to “BBB+” from “BBB” on Tuesday, marking the first upgrade since 2013 as it cited the country’s strong economic growth supported by solid government fiscal accounts, low public indebtedness, and the economy’s sound external settings. The rating carries a stable outlook, which means it is unlikely to change in the next six months to two years.

Philstocks Financial, Inc. Research Associate Japhet Louis O. Tantiangco also attributed the PSEi’s increase to the rating upgrade.

“The main driver was the upgrade in the Philippines’ credit rating from BBB to BBB+ by S&P Global Ratings. The upgrade elevated confidence on our country’s macroeconomic fundamentals and opened more economic opportunities through easier debt access, something which cheered investors,” Mr. Tantiangco said in a text message.

Aside from lifting the PSEi, Mr. Limlingan added that the rating upgrade is seen to strengthen the peso against the dollar in the near term, under the assumption that investors are likely to put more money in the Philippines.

Four sectoral indices moved to positive territory, led by industrials which jumped 1.64% or 190.71 points to 11,799.63. Services rose 1.41% or 22.36 points to 1,608.54; financials increased 0.85% or 14.97 points to 1,758.63; and holding firms added 0.39% or 30.19 points to 7,668.39.

In contrast, property fell 0.24% or 10.78 points to 4,318.22, while mining and oil slipped 0.15% or 11.56 points to 7,709.05 on Thursday.

Some 746.08 million issues switched hands valued at P8.17 billion, higher than Tuesday’s P6.98 billion.

Advancers outpaced decliners, 109 to 81, while 52 names were unchanged.

Foreign investors extended their net buying position to P293.17 million on Thursday, although lower than the previous session’s P413.29 million.

The PSEi bucked the negativity in markets overseas. The Dow Jones Industrial Average dropped 0.61% or 162.77 points to 26,430.14; the S&P 500 index fell 0.75% or 22.10 points to 2,923.73; while the Nasdaq Composite index dipped 0.57% or 45.75 points to 8,049.64.

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