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How PSEi member stocks performed — December 13, 2018

Here’s a quick glance at how PSEi stocks fared on Thursday, December 13, 2018.

 
Philippine Stock Exchange’s most active stocks by value turnover — December 13, 2018

DoT abandons 2018 visitor arrival target of 7.4 million

THE Department of Tourism (DoT) backed away from its full-year target of 7.4 million visitor arrivals, saying that the six-month closure of Boracay means the department’s new stretch goal is in the low 7 million range.
Tourism officials made the announcement in releasing the 10 months to October visitor arrival total of 5.88 million, up 7.43%.
Tourism Secretary Bernadette Romulo-Puyat told reporters Thursday that the 2018 visitor total is likely to surpass that of 2017, but the department may not meet its target.
“Though (arrivals have been) increasing, we have to admit (the impact of) the closure of Boracay… a top destination… for six months. I’m confident that (arrivals) will surpass the previous year but I doubt it will reach 7.4 million,” Ms. Romulo said, adding that she will be happy with a total of 7 to 7.2 million arrivals.
Arrivals for 2017 totaled 6.6 million.
The new, downgraded target means the number of visitors to the Philippines is roughly equivalent to the number of people who visit the Eiffel Tower each year.
Tourism Undersecretary Benito C. Bengzon, Jr. said that the target for 2019 is 8.2 million, subject to the final review of the National Tourism Development Plan (NTDP) next year.
“The instruction of the secretary is to review the NTDP next year. (…) We will not only be reviewing strategic directions and programs but we will also be reviewing indicators which include the number of arrivals, revenue, and other economic indicators,” he said. — Gillian M. Cortez

Senate presses Palace not to extend session for budget

SENATORS on Thursday asked Executive Secretary Salvador C. Medialdea not to endorse to the President a recommendation to call a special session of Congress next week to complete the budget.
Mr. Medialdea was present during the Senate’s morning session to answer questions on the 2019 budget of the Office of the President (OP).
Senator Panfilo M. Lacson said it was still impossible for the Senate to complete its budget deliberations within the year even with an extra five days of sessions next week.
He added that a number of government agencies with budget issues have yet to be tackled by the chamber, such as the Department of Tourism (DoT), Department of Public Works and Highways (DPWH), and the Department of Health (DoH).
“I’d like to take advantage of the presence of Executive Secretary Medialdea. I would like to issue an appeal to him not to endorse the anticipated recommendation of Secretary of DBM (Department of Budget and Management) Ben Diokno to call for a special session,” Mr. Lacson said.
Senate Majority Leader Juan Miguel F. Zubiri said: “To call for a special session, I doubt if we will have a quorum probably for both Houses. And we can work the budget as soon as we get back on Jan. 14.”
Senator Juan Edgardo M. Angara said: “Executive Secretary beside me is nodding. And he said he has duly noted the message and will relay it to the President.”
Mr. Angara is the vice chairperson of the Senate committee on finance.
Under the 1987 Constitution, the President can call on Congress to convene in special session at any time.
Speaking to reporters, Mr. Zubiri said the Senate has gone through about two-thirds of proposed budget, and that a special session in the run-up to the holidays will not be enough to complete work on the 2019 spending program.
House Majority Floor Leader Rolando G. Andaya, Jr. has said high chamber is ready for a special session.
“First of all, we are game. If he (Mr. Duterte) calls for a special session, we’re open to that,” he said in a briefing after the Congress joint session on Wednesday.
Mr. Diokno has warned that a reenacted 2018 budget, as called for if Congress fails to pass budget legislation for 2019,, will delay the implementation of new projects in light of the public works ban accompanying the May elections.
The Senate is planning to insert provisions in the General Appropriations Bill (GAB) or to pass a joint resolution that will remove the election ban on public works for 2019 to address the concerns of the executive branch. — Camille A. Aguinaldo

Energy dep’t wants immediate exploration talks with China

ENERGY SECRETARY Alfonso G. Cusi said his office has notified the Department of Foreign Affairs (DFA) to initiate discussions on how to proceed with activity in the disputed areas in the West Philippine Sea, or South China Sea.
“Instead of us sitting and waiting, I myself called for the start of the negotiation immediately,” Alfonso G. Cusi, secretary of the Department of Energy (DoE) told reporters on Wednesday night in an informal gathering.
“How did we give notice to China? Through DFA (the Philippine Department of Foreign Affairs),” he said. “I want it immediately.”
DoE Assistant Secretary Gerardo D. Erguiza, who was tasked to attend to the details by Mr. Cusi, said “We have advised the DFA.”
“We will wait for the timing,” he added.
Mr. Erguiza said he has spoken with his counterpart at the DFA, and the department is currently gathering “details” required under the memorandum of understanding (MoU) signed between the Philippines and China.
On Nov. 22 after the visit of China’s President Xi Jinping to the Philippines, Mr. Cusi said the two countries were to hold immediate discussions to arrive at a common position on the joint exploration within the disputed offshore areas.
He said that under the MoU, the two sides had to sit down and come up with their position within one year.
Mr. Erguiza said oil and gas development with China has to take place within the framework of the service contract system of the Philippines, which he said was also explained by DFA Secretary Teodoro L. Locsin, Jr.
“(The MoU) sets forth the elements of the Philippines jurisdiction,” he said. “It clearly stated also that it shall conform with international law, the UN charter, the UNCLOS (United Nations Convention on the Law of the Sea) [and the] South China Sea-related agreements,” he said.
He declined to say whether the framework leads to joint exploration by the two countries, but said only that it sets forth how the two countries could “work together towards being able to have an activity, a fruitful endeavor regarding these areas covered by service contracts.”
He said China National Offshore Oil Corp. (CNOOC) is China’s representative to a technical working group, while the Philippines is represented by the private corporations and the service contractors.
“These are corporations working, maybe, for profit. They need to decide what’s best for them,” he said. “On our part, at least we were able to come out with a framework that is acceptable to us, apparently acceptable to China also because it was signed,” he said.
He said Mr. Cusi would have wanted the formal discussions with the DFA to take place in December but Mr. Locsin will be out of the country. — Victor V. Saulon

PCC to require more information on ICTSI North Harbor deal

THE Philippine Competition Commission (PCC) said it needs a “more detailed analysis” of International Container Terminal Services, Inc.’s (ICTSI) acquisition of a stake in Manila North Harbour Port, Inc. (MNHPI).
In a statement on Thursday, the competition regulator said its Mergers and Acquisitions Office (MAO) decided to open a Phase 2 review, calling for additional information from the companies and stakeholders.
“The initial market investigation conducted by MAO indicates that the transaction may affect the port industry, particularly the markets for the provision of port operation and transshipment services in the Port of Manila. In accordance with the Philippine Competition Act and its Implementing Rules. PCC’s MAO has a period of 60 days from Nov. 15 to carry out Phase 2 of the review,” it said.
In September, ICTSI said it is raising its stake in MNHPI to 50% from 34.83% for P910 million. It bought 4,550,000 MNHPI shares valued at P200 each.
PCC said while it needs a more thorough analysis of the transaction, this does not mean it found a substantial reduction of competition due to the acquisition, saying that it needs more information before it arrives at a conclusion.
“Particularly, PCC’s merger review office seeks to investigate whether the transaction enhances the ability and incentive of the involved firms to engage in foreclosure of competitors where vertical relationships between the ICTSI and Manila North Harbour operations are present, including transshipments,” it added.
Once ICTSI completes the transaction, the remaining 43.33% share in MNHPI will be held by San Miguel Holdings Corp., 6.50% by IZ Investment Holdings, Inc. and 0.17% by Petron Corp.
ICTSI last year bought the 34.83% share of Petron in MNHPI for P1.75 billion.
MNHPI has a 25-year concession agreement to operate, manage and maintain the North Harbor, beginning in November 2009.
ICTSI said in September that the raising of its stake in MNHPI will “allow ICTSI to contribute its experience, expertise and state-of the-art technology and infrastructure to enhance the operational efficiency of the domestic terminal in the Port of Manila and improve traffic conditions in Metro Manila.” — Denise A. Valdez

2019 launch looms for LNG project

A PROPOSED natural gas terminal in Pagbilao, Quezon is on the brink of a “breakthrough moment” and is likely to launch operations by 2019 if it wins certification as a project of national significance, Fitch Solutions Group Ltd. said.
In its outlook for Philippine oil and gas, Fitch Solutions said a certification granted to Hong Kong’s Energy World Corp. Ltd. (EWC), which is building the LNG import terminal entitles the much-delayed project to expedited government approvals.
EWC has been developing the LNG-to-power project since 2011, comprising a 4.1 billion cubic meter (bcm) import terminal and a 650-megawatt (MW) gas-fired power plant.
The Philippines will need to resort to gas imports once production from the Malampaya field winds down in the next decade.
“Despite the clear need for more gas and EWC’s repeated commitment to the project, Pagbilao LNG has suffered numerous delays due to issues ranging from volatile LNG prices, funding, regulatory obstacles and confusion over transmission arrangements,” Fitch Solutions said.
“Most recently, EWC cited delays to securing government approval to connect to the local grid as holding up the start of its project, despite it being over 90% complete,” it added.
The DoE earlier clarified that it granted a limited certification confined to EWC’s gas-fired power plant project.
On Wednesday, DoE Undersecretary Donato D. Marcos confirmed that EWC had sought certification for its import terminal project. The department clears LNG hub facilities if these are also meant for third-party customers. He said at the time that the DoE had yet to issue an approval for any of the interested proponents.
Fitch Solutions said a certification paves the way for EWC to benefit from a host of provisions set out under Executive Order 30, which was issued in 2017 to streamline approval processes and provides administrative and technical support for projects deemed critical to the development and security of the Philippines.
“This likely puts the project on track to begin commercial operations within 2019, eight years after it broke ground,” it said.
The research firm also said the outlook for the Philippines’ second LNG project “has considerably improved in recent months, with the introduction of a formidable joint-venture (JV) into the mix.”
It said Manila’s desire for a second LNG project stems from the fact that even at full capacity, EWC’s Pagbilao LNG would be sufficient to meet about 83% or 4.1 bcm out of the 4.9 bcm believed required to support the government’s gas power expansion plans.
Fitch Solutions said in addition to supplying LNG to five existing power plants with a combined generation capacity of 3,200 MW currently supplied by Malampaya’s gas at about 3.8-3.9 bcm per annum, the government plans to develop an additional 1,500 MW of new gas-fired generation capacity.
The new plants are to be built in Pagbilao at 650 MW, Batangas at 415 MW and Bataan at 480 MW by 2021. They will require an additional 1 bcm of gas feedstock.
“After multiple calls for tenders and plenty of expressions of interest from a vast array of domestic and foreign firms, the keys to the Philippines’ second LNG development appears to be held by Tanglawan Philippines LNG Inc.,” the firm said.
It said Tanglawan was reportedly winning the race to be the DoE’s choice to lead the project. The company is a joint venture between China National Offshore Oil Corp. (CNOOC) and independent oil firm Phoenix Petroleum Philippines, Inc. led by businessman Dennis A. Uy.
The partners are looking to develop an integrated LNG-to-power project in Batangas, which would involve the construction of a regasification terminal with a capacity of 5 million tons per annum (MTPA) and gas-fired power generation capacity of 1,000-2,000 MW, costing around $1-2 billion.
Fitch Solutions said Tanglawan’s case for the project “is strong, not least due to ample funding and an assured market for imported gas.”
A third partner being considered for the project is the Philippines’ largest power distribution firm Manila Electric Co., which holds preferential rights to join Mr. Uy in future LNG ventures.
The research firm said the inclusion of CNOOC in the partnership “adds a political element to the mix,” adding further incentive for the DoE to approve the project, “particularly in light of increasing efforts between Beijing and Manila to improve bilateral ties and boost economic and trade cooperation.” — Victor V. Saulon

WB sees NEDA approval for wastewater project in Jan.

THE WORLD Bank expects government approvals for a Metro Manila wastewater management project to be completed by January.
“LBP (Land Bank of the Philippines) and MWCI (Manila Water Company Inc.) are working on the completion of all the project evaluation requirements of NEDA (National Economic and Development Authority). NEDA approval/decision is being awaited and is expected to be received within January 2019,” the World Bank said in its implementation and status report yesterday.
The project seeks to improve wastewater collection and treatment practices in catchment areas of Metro Manila by supporting investments of water concessionaires MWCI and Maynilad Water Services, Inc. (MWSI) — through LBP.
The project began in October 2012. At the end of November 2018 it was 73% complete and absorbed 65.42% of the $275 loan facility offered by the World Bank.
“The support mission conducted in May 2018 and its consequent monthly follow-through activities maintain the findings from earlier missions that MWSI will fully disburse and physically complete its programmed works, while MWCI may not fully complete its programmed works. MWCI’s implementation program continues to experience delays due to the local government’s action to limit construction works that affect roads (i.e. sewer pipe laying) and worsen traffic congestion in the densely populated project areas,” the World Bank said.
NEDA and the World Bank recommended to have seven additional sewer network sub-projects from the Marikina and UP Sewerage Systems to replace the four conveyance sub-projects in the Ilugin Sewerage System.
“The replacement of delayed conveyance sub-projects of MWCI with fast-moving conveyance sub-projects will allow the full utilization of the loan and the achievement the PDO (project development objective). The project is being closely supervised and monitored by the Bank and LBP team through monthly coordination reporting since June 2018.”
According to the World Bank, Metro Manila generates about 2 million cubic meters of wastewater daily, with only 17% of the total treated before being discharged and largely ending up in Manila Bay. — Elijah Joseph C. Tubayan

DA suspends Indian buffalo meat importers

THE Department of Agriculture (DA) has suspended two importers of Indian buffalo meat — Alm Food Products Ltd. and Mirha Exports PVT Ltd — due to outbreak of foot and mouth disease (FMD) in India’s Punjab state.
According to the memorandum order, the government aims to block the entry of FMD-susceptible products from Punjab to safeguard Philippine livestock.
The DA said asked India in November 2017 for an update on the FMD situation in the states of Uttar Pradesh, Andhra Pradesh, Punjab, Maharashtra, and Telengana, but has not received a reply from India’s chief veterinary officer.
The outbreak was first reported in September 2017.
The order also suspends immediately the processing and evaluation of applications and issuances of sanitary and phytosanitary (SPS) import clearances for buffalo meat.
The DA has active bans on items that might be affected by African Swine Fever, bird flu and Newcastle disease. — Reicelene Joy N. Ignacio

Getting away with plunder

The acquittal last week of former Senator Ramon “Bong” Revilla, Jr., and his alleged accomplices’ being found guilty and sentenced to the mandatory penalty for plunder of reclusion perpetua (20 to 30 years’ imprisonment) has understandably raised doubts over the justice of the decision. Two of the five associate justices of the Sandiganbayan’s First Division that tried the case are even questioning the majority opinion.
Among the questions that have been raised is why, if Revilla is indeed innocent, he is being ordered to return at least part of the P124.5 million in pork barrel funds pocketed by his alleged accomplices, and if his former chief of staff who has been convicted of the offense could have done it on his own and without Revilla’s approval and even instigation.
But what is more at issue is what the outcome of this case — and of others like it — says about how ineffective the law has been, and why. This is specially relevant today, when a selected few so handily escape prosecution — or, even when already convicted, elude arrest and punishment. In sharp contrast, government critics are routinely arrested and detained on the most ludicrous charges based on planted evidence and the scripted testimonies of “witnesses.”
The Philippine plunder law, Republic Act 7080, mandates reclusion perpetua to death for those convicted of plunder, plus permanent disqualification from holding public office. It defines plunder as an act or combination of acts by a public officer and the members of his family, his relatives, business associates, subordinates, friends or other persons through which he “amasses or acquires ill-gotten wealth” from the misuse of public funds amounting to at least P50 million.
Signed into law in 1991 by then President Corazon Aquino, its enactment was driven by her administration’s realization that the Anti-Graft and Corrupt Practices Act (RA 3019) and similar laws were not enough to prevent a repetition of the immense corruption that put the Marcos regime in the Guinness Book of World Records for committing the “Greatest Robbery of Government.” (The 1986 civilian and military mutiny known as EDSA 1 had overthrown that kleptocracy only five years earlier.) Consolidated later into RA 7080, the Senate version of the plunder bill was filed by the late Senator Jovito Salonga, while Congresswoman Lorna Yap filed the House version.
The filing of the first plunder charge was somewhat encouraging, but as the years passed, the results lent validity to the view that there is a double standard of justice at work in these isles of gross inequality and worse injustice.
In the first case of its kind, a cashier of the Bureau of Internal Revenue (BIR) and six of her co-workers were accused of diverting to their private accounts some P260 million in taxes. The cashier and four of her accomplices were found guilty, and sentenced to reclusion perpetua, with the cashier being meted out two consecutive terms. The cashier is still serving her sentence.
At about the same time in 2001, the plunder charge against ousted President Joseph Estrada and seven others including his son Jinggoy raised hopes that a justice system truly blind to social class, power, and wealth had come into being, or was at least in the process of developing. Those hopes were soon dashed to pieces by subsequent developments.
It took six years for Estrada to be convicted in September 2007 of pocketing the equivalent of $80 million while he was President, and sentenced to the mandatory 20 to 30 years in prison. But barely a month later, he was pardoned by Gloria Macapagal-Arroyo, his erstwhile rival who had replaced him as President in 2001. Despite the accessory prohibition in his plunder conviction against his ever serving in government, he ran again for President of the Republic in 2010, and later, in 2013, for Mayor of Manila, a post he won, still holds, and will again contest in 2019.
In 2012, Arroyo became the second Philippine President to be accused of plunder. Together with seven Philippine Charity Sweepstakes Office (PCSO) and two Commission on Audit (CoA) officials, she was accused of misusing P366 million in PCSO funds. But Arroyo was acquitted by the Supreme Court in 2016. Making a miraculous recovery from an array of illnesses she claimed she was suffering from during the pendency of her case, she has since become a congresswoman and Speaker of the House of Representatives.
Revilla has been acquitted, but two other former senators are still facing plunder charges in connection with the pork barrel scandal of 2013: Jose “Jinggoy” Estrada and Juan Ponce Enrile. Enrile is out on bail and running again for senator, while Estrada has expressed confidence that, like Revilla, he too will be acquitted.
RA 7080’s record so far in stopping and preventing corruption is not encouraging. It invites comparisons with the way other seemingly well-intentioned laws and government issuances have been as ineffective, and in some instances have even enhanced and encouraged the very practices they were supposed to stop or prevent.
The acquittals, pardons and dismissals of plunder cases have hardened the prevalent culture of impunity, in which wrong-doers who are powerful, wealthy, and well-connected escape punishment. The law is hardly convincing as a deterrent to the corruption that has metastasized throughout government.
Among the laws that have generated outcomes contrary to their intentions is the Party List Act (RA 7941). Meant to correct the non-representation of marginalized groups in a government that has always been dominated by a few families, it has been so perverted in practice that it has become just another means for the dynasts, local despots, and warlords in control of long-established political parties to harden their dominance in Congress.
Although not a law but a Duterte Executive Order, the Freedom of Information Program of July 2016 is another example among many. It has become another means for government offices under the executive branch to restrict the release of information they hold. Some Police Districts, for example, now require the filing of applications before journalists can look at police blotters, thus making even such government-held information that is usually publicly available difficult to access.
Among the key questions that must be asked about Philippine laws and even executive orders are, for example, why the plunder law has become a means of getting away with plunder, why many of the party-list groups in Congress represent vested interests, and why Executive Order No. 2 has become another form of restricting access to information rather than making it easier.
The answer lies in the character of the political oligarchy — the bureaucrat capitalists — that rule this rumored democracy. Focused entirely on keeping and enhancing their power for no purpose worthier than self-aggrandizement, they are the first to claim they are for change but are actually the least committed to that imperative. (Even Ferdinand Marcos claimed he wanted to “save the Republic and reform society” while he was destroying both.)
Because they have the power themselves as well as indirectly through their surrogates and captives in the civilian and military bureaucracy, it is they who ultimately decide how laws are interpreted and implemented. They are the true enemies of the very State to whose protection they pretend to be dedicated, and on behalf of which they steal and lie and kill with impunity.
The views expressed in Vantage Point are his own and do not represent the views of the Center for Media Freedom and Responsibility.
 
Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).
www.luisteodoro.com

The LNG bill

To have cheaper, stable energy sources, especially in electricity generation, there should be maximum competition and minimum taxation, distortion and government favoritism among players using different technologies and energy sources.
So if an energy or environment tax should be imposed, it should apply to all energy technologies and sources. If a subsidy should be given, it should also apply to all energy technologies.
This does not happen in the Philippines and many other countries in the world. There is always a double standard, like high taxes, unguaranteed dispatch to the grid for some technologies, and high subsidies and guaranteed dispatch to the grid for wind-solar and other new renewables.
Among power plants using fossil fuels — oil, coal and natural gas — there is also favoritism. Oil and coal are slammed with higher excise taxes to make them more expensive while natural gas has no excise tax, which makes it artificially cheaper.
Now another favoritism scheme is being prepared in Congress. I saw at least two reports in BusinessWorld on the subject this year:
1. “Gov’t may need to finance natural gas infrastructure” (June 21)
2. “LNG bill to require guaranteed offtake of import shipments” (Dec. 6)
If report #1 is done, it will compromise Philippine taxpayers. Firms put up big hydro, geothermal, coal plants using their own money and they are fine. But construction of liquefied natural gas (LNG) infrastructure — terminal, storage, regasification facilities — will be passed to taxpayers, before private natural gas plants can use the gas for their power generation.
If report #2 is done, it will compromise Philippine energy consumers. If LNG prices go up, consumers must pay for it even if cheaper energy is available during that period.
It is also related to constant lobby that government should set the energy mix, which is wrong. Setting the energy mix should be done by the market, by the energy consumers and suppliers, and not by the government.
Energy table
Anti-coal hysteria and drama in the Philippines, among the reasons that renewables and natural gas are favored, is based on the wrong premise that the country’s coal use is high. Far from it. Compared to our neighbors, we have low coal use (see Table 1).
Another reason for renewable energy and gas favoritism is the belief that the Philippines is poor in environmental sustainability in its energy development. This too is wrong.
The World Energy Council (WEC) publishes an annual study, the World Energy Trilemma Index. WEC is a United Nations-accredited global energy body with over 3,000 member organizations in over 90 countries, from governments, private and state corporations, academia, nongovernmental organizations and energy stakeholders.
The Trilemma Index is composed of three factors:
1. Energy Security — reliability of energy infrastructure, ability of energy providers to meet current, and future demand
2. Energy Equity — accessibility and affordability of energy supply
3. Environmental Sustainability — energy efficiencies and energy supply from renewable and other low-carbon sources
Out of 125 countries covered, the Philippines ranked 74th overall; 96th in energy equity because of our expensive energy prices; and 1st in environmental stability (we’ve come in first for several years now) because of the country’s high input from geothermal and big hydro, energy sources that are available all year round (see Table 2).
The Department of Energy itself and Energy Secretary Alfonso G. Cusi are using and citing the WEC annual reports and take pride in our #1 global ranking in environmental sustainability. The Secretary has adopted a technology-neutral energy mix policy — it is the good and right thing to do.
 
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.
minimalgovernment@gmail.com

If college degrees are not important, have companies dumbed down?

News cropped up on social media, to the apparent glee of those who hate schooling or were mediocre in academics, that university degrees are no longer considered necessary in the workplace.
A CNBC report listed Google, Penguin Random House, Costco Wholesale, Whole Foods, Hilton, Publix, Apple, Starbucks, Nordstrom, Home Depot, IBM, Bank of America, Chipotle, and Lowe’s as examples of companies that do not require college degrees.
Interesting that, despite the anti-intellectualism the foregoing implies, the consequences are actually quite counterintuitive.
Offhand, grades may not seem to matter. Business columnist Becky Vaughn-Furlow writes in that what is paramount today is “a strong work ethic. Every employee, from CEO to entry-level worker, must have a good work ethic to keep the company functioning at its peak. A work ethic is a set of moral principles an employee uses in his or her job.”
Some characteristics of such ethic are said to be: dependability, dedication, productivity, character, integrity, discipline, respectfulness, determination, accountability, humility, passion, and adaptability.
Now such is difficult to disagree with. Excellent grades and other signs of high intelligence may indeed have their place but it’s the other things — those that signify good character — that truly make the difference.
Thus, in the Society for Human Resource Management 2016 Entry-Level Applicant Job Skills Survey, 97% of HR professionals surveyed declared the utter importance of dependability and reliability (e.g., punctual attendance) in determining whether an applicant is hired.
On the other hand, 87% leaned on integrity. Here, it is defined as honesty and treating others (including company time and resources) with fairness and respect.
Other important traits are: respect (84%), the ability to work well within teams (83%), and caring for customer needs (or customer care, at 78%).
This aligns with what Stephane Kasriel, Upwork CEO and commentator for CNBC, once wrote: “Too often, degrees are still thought of as lifelong stamps of professional competency. They tend to create a false sense of security, perpetuating the illusion that work — and the knowledge it requires — is static. It’s not.”
She, in turn, points to the Freelancing in America 2018 survey, which finds that “the future of work won’t be about college degrees, it will be about job skills.” Thus, 93% of the freelancers interviewed said that “skills training was useful,” while only 79% said the same about their college education.
graduation
More interestingly, reference is also made to the World Economic Forum’s The Future of Jobs report, which predicts that 65% of “children entering primary school will end up in jobs that don’t yet exist.”
The foregoing trend is partially reflected in the latest Social Weather Station’s (SWS) survey on unemployment, with around 9.8 million Filipinos unemployed in this year’s third quarter. This represents an adult joblessness rate of 22%, 2.3% higher than June’s 19.7%.
What is significant is that 8.4% of that, representing 3.7 million, actually left their jobs voluntarily without another job prospectively lined up to take its place.
What can be gleaned from the foregoing?
First, as Ms. Kasriel cautions, it is a mistake to think that “college is a waste of time and money for everyone. But if there’s one takeaway, it’s this: The future of work won’t be about degrees. More and more, it’ll be about skills. And no one school, whether it be Harvard, General Assembly or Udacity, can ever insulate us from the unpredictability of technological progression and disruption.”
From there, we can perceive other possible insights, such as the negative effect of radically increased access to education. Not democratization (which is a good thing) but more popularization. Or perhaps a better framing: the imprudent allowing of liberal over-inclusiveness to dominate the education sector.
Because ironically, those who hate schooling and are now celebrating the relative decrease of its importance, were, perhaps, only able to get into school in the first place because standards were lowered to allow them in.
In other words, even though commonsensically not everyone is fit for a university degree, to avoid offending those unfit for such, to make education more “inclusive” (a term worth despising), admissions and education criteria were adjusted to allow almost anyone to get a degree. And it’s also not far-fetched to think that commercial interests played a role.
The point: university degrees used to be compelling because schools previously took only those with clear talent and then sifted out or molded that talent even further. That rigorous process gave employers an obvious incentive to prefer university graduates.
But if anyone can now become a university graduate, then a degree practically means nothing. As a consequence, employers logically search for other credible criteria to separate the good from the mediocre.
The alternatives employers are now starting to use — skills, adaptability, and work ethic — are, ironically, actually more exclusive, making it even harder for applicants since these qualities require more time, commitment, and humility on their part.
But in these self-entitled times, perhaps that’s not a bad thing.
 
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