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Treasury bill, bond rates may drop after key data

BW FILE PHOTO

RATES of Treasury bills (T-bills) and bonds (T-bonds) to be auctioned off this week may go down after June Philippine headline inflation came out below market expectations.

The Bureau of the Treasury (BTr) will auction off P20 billion in T-bills on Monday, or P6.5 billion each in 91- and 182-day papers and P7 billion in 364-day debt.

On Tuesday, the government will offer P30 billion in reissued 20-year T-bonds with a remaining life of seven years and nine days.

Rates of T-bills and T-bonds to be offered this week could track the mixed movements in secondary market yields in the past few days in anticipation of the release of Philippine June inflation and US jobs data on Friday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Easing June inflation boosted chances of a rate cut by the Bangko Sentral ng Pilipinas (BSP) by next month, which could lead to lower yields on government debt, a trader said in an e-mail.

The soft US nonfarm payrolls report released on Friday, which also renewed expectations of the US Federal Reserve easing its policy stance within this year, may also cause T-bill and T-bond rates to go down this week, the trader added.

“We expect another well-bid seven-year auction with a current indicative range of 6.3-6.4%,” the trader said.

At the secondary market on Friday, the rates of the 91-day and 182-day T-bills went down by 2.81 basis points (bps) and 3.66 bps week on week to end at 5.7152% and 5.9669%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website. Meanwhile, the 364-day T-bill’s yield went up by 1.07 bps week on week to 6.0848%.

On the other hand, the rate of 20-year bond decreased by 4.77 bps week on week to 6.7718% on Friday, while the seven-year debt, the tenor closest to the remaining life of the T-bonds on offer this week, fell by 10.28 bps to yield 6.4364%.

Philippine headline inflation rose to 3.7% year on year in June, easing from 3.9% in May and 5.4% in the same month a year ago.

This was below the 3.9% median estimate in a BusinessWorld poll of 14 analysts.

The June consumer price index (CPI) was within the BSP’s 3.4-4.2% forecast for the month, and also marked the seventh straight month that inflation settled within the central bank’s 2-4% annual target.

For the first six months, the CPI averaged 3.5%, slightly faster than the central bank’s 3.3% full-year forecast.

BSP Governor Eli M. Remolona, Jr. has said the Monetary Board may kick off its easing cycle at its Aug. 15 review — the only policy meeting scheduled in the third quarter — as they expect inflation to continue easing this semester.

Meanwhile, US employment increased solidly in June, but government and healthcare services hiring made up about three-quarters of the payrolls gain and the unemployment rate hit a 2-1/2-year high of 4.1%, pointing to a slackening labor market that keeps the Fed on course to start cutting interest rates soon, Reuters reported.

Nonfarm payrolls increased by 206,000 jobs last month, lifted by government hiring, the Labor department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls would increase by 190,000 last month, with the unemployment rate unchanged at 4%.

When added to the moderation in prices in May, the report could boost Fed policy makers’ confidence in the inflation outlook after the disinflationary trend was disrupted in the first quarter. Financial markets expect the US central bank, which aggressively tightened monetary policy in 2022 and 2023, to start its easing cycle in September.

Last week, the government raised P20 billion as planned from T-bills as total bids for its offer reached P43.025 billion, or more than twice the amount placed on the auction block.

Broken down, the BTr borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P19.06 billion. The average rate for the three-month paper rose by 2 bps to 5.686% from the previous week. Accepted rates ranged from 5.668% to 5.698%.

The government likewise made a full P6.5-billion award of the 183-day securities, with bids reaching P11.81 billion. The average rate for the six-month T-bill stood at 5.959%, up by 2.9 bps, with accepted rates at 5.918% to 5.999%. The six-month tenor was adjusted from the usual 182-day maturity due to a holiday.

Lastly, the Treasury raised the planned P7 billion via the 364-day debt papers as demand for the tenor totaled P12.155 billion. The average rate of the one-year debt increased by 1.9 bps to 6.05%. Accepted yields were from 6.03% to 6.085%.

Meanwhile, the reissued 20-year bonds to be auctioned off on Tuesday were last offered on June 4, where the government made a full P30-billion award at an average rate of 6.624%.

The BTr wants to raise P215 billion from the domestic market this month, or P100 billion from T-bills and P115 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — AMCS with Reuters

How minimum wages compared across regions in June

(After accounting for inflation)

In June, inflation-adjusted wages were 17.5% to 24.6% lower than the current daily minimum wages across the regions in the country. Meanwhile, in peso terms, real wages were lower by around P74.48 to P114.20 from the current daily minimum wages set by the Regional Tripartite Wages and Productivity Board.

How minimum wages compared across regions in March

First Gen postpones delivery of LNG cargo

LOPEZ-LED First Gen Corp. has postponed the delivery of its fifth liquefied natural gas (LNG) cargo as it still has enough supply, its president said.

“Right now, we’re going through the operation and then there is the Malampaya. We still have the residual gas so we have to deplete residual gas,” First Gen President and Chief Operating Officer Francis Giles B. Puno told reporters on Friday last week.

In June, First Gen awarded Japanese company TG Global Trading Co. a contract to supply one LNG cargo of approximately 125,000 cubic meters with delivery scheduled this month.

”We have to defer to a time that [we are] ready,” Mr. Puno said.

The LNG will be used by First Gen’s four existing gas-fired power plants with a combined capacity of 2,017 megawatts (mw) that have been supplied for many years with gas from the Malampaya field, the country’s sole natural gas provider.

FGEN LNG Corp., a subsidiary of First Gen, constructed an interim offshore LNG terminal and executed a five-year time charter party for BW Batangas to provide LNG storage and regasification services.

In April, First Gen awarded a contract to Chinese company CNOOC Gas and Power Trading & Marketing Ltd. from its fourth tender process for one LNG cargo of approximately 130,000 cubic meters.

GEOTHERMAL
On Friday, First Gen’s renewable energy arm Energy Development Corp. officially unveiled its 28.9-MW Palayan Binary Geothermal Power Plant in Albay, as part of the expansion of its existing 140 MW Bacon-Manito (BacMan) facility.

The P7-billion project was synchronized with the Luzon grid in January and is one of the four geothermal projects targeted to be operational this year.

The other projects are the 28-MW Mahanagdong Binary in Leyte, 20-MW Tanawon Binary in BacMan, and the 5.6-MW Bago Binary in Neg-ros Occidental. — Sheldeen Joy Talavera

Allied Care Experts (ACE) Medical Center-Palawan, Inc. to hold Annual Meeting of Stockholders on Aug. 2

 


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PISA and quality education

PHILIPPINE STAR/WALTER BOLLOZOS

(First of two parts)

Almost everyone agrees that low quality is the biggest problem of Philippine education. The quality indicator that has captured the attention of education analysts, observers and advocates is the country’s performance in the Programme for International Student Assessment or PISA, which the Philippines participated in for the first time in 2018 and sustained in the 2022 round. Administered by the Organization for Economic Co-operation and Development (OECD), the PISA evokes significant public reaction because of its international character and the ranking of country scores.

But not many are aware of how the PISA is done and how the OECD itself interprets the results.

The PISA tests the proficiency of a representative sample of a country’s 15-year-old learners in reading, science, and mathematics. The scores are set in relation to the results observed across all participants, scaled to fit approximately normal distributions (means around 500 score points, and standard deviations around 100 score points). The PISA scales are then divided into proficiency levels ranged according to the degree of difficulty of the test items.

Mathematics and reading have eight levels, with level 1c corresponding to the simplest items, and the remaining seven levels (1b, 1a, 2, 3, 4, 5, and 6) corresponding to increasingly difficult items. For science, there are seven proficiency levels, namely, 1b, 1a, 2, 3, 4, 5, and 6.

PISA characterizes or describes the tasks that the student can do at the proficiency level corresponding to his or her score. The PISA has set a baseline score of Level 2, which, for reading and mathematics, is a monitoring tool for the minimum proficiency level under the United Nations Sustainable Development Goals (SDG) targets.

In the 2022 PISA, the Philippines tallied an average of 355 score points in mathematics (the lower range cut-off for level 2 is 420 points score), 347 in reading (the lower range cut-off for level 2 is 407 points score), and 356 in science (the lower range cut-off for level 2 is 410 points score). Our aggregate scores in all three subjects rank us 77th among 80 participating countries and economies.

The Philippine scores correspond to proficiency level 1b for mathematics (three score points shy of the cut-off to reach level 1a), level 1a for reading, and level 1a for science. Contrary to the perception that our PISA performance means that our 15-year-old learners do not know how to read nor count, what the Philippine average scores indicate is that our learners are only able to demonstrate low levels of knowledge and skills in these subjects.

Specifically, level 1b in mathematics indicates that the student “can respond to questions involving easy to understand contexts where all information needed is clearly given in a simple representation (i.e., tabular or graphic) and, as necessary, recognize when some information is extraneous and can be ignored with respect to the specific question being asked. They are able to perform simple calculations with whole numbers, which follow from clearly prescribed instructions, defined in short, syntactically simple text.” In contrast, the baseline minimum of norm of level 2 indicates that “students can recognize situations where they need to design simple strategies to solve problems, including running straightforward simulations involving one variable as part of their solution strategy. They can extract relevant information from one or more sources that use slightly more complex modes of representation, such as two-way tables, charts, or two-dimensional representations of three-dimensional objects. Students at this level demonstrate a basic understanding of functional relationships and can solve problems involving simple ratios. They are capable of making literal interpretations of results.”

For reading, level 1a indicates that the learner “can understand the literal meaning of sentences or short passages. Readers at this level can also recognize the main theme or the author’s purpose in a piece of text about a familiar topic, and make a simple connection between several adjacent pieces of information, or between the given information and their own prior knowledge. They can select a relevant page from a small set based on simple prompts, and locate one or more independent pieces of information within short texts. Level 1a readers can reflect on the overall purpose and on the relative importance of information (e.g., the main idea vs. non-essential detail) in simple texts containing explicit cues. Most tasks at this level contain explicit cues regarding what needs to be done, how to do it, and where in the text(s) readers should focus their attention.”

In contrast, the baseline minimum norm of level 2 indicates that the learner “can identify the main idea in a piece of text of moderate length. They can understand relationships or construe meaning within a limited part of the text when the information is not prominent by producing basic inferences, and/or when the text(s) include some distracting information. They can select and access a page in a set based on explicit though sometimes complex prompts, and locate one or more pieces of information based on multiple, partly implicit criteria. Readers at Level 2 can, when explicitly cued, reflect on the overall purpose, or on the purpose of specific details, in texts of moderate length. They can reflect on simple visual or typographical features. They can compare claims and evaluate the reasons supporting them based on short, explicit statements. Tasks at Level 2 may involve comparisons or contrasts based on a single feature in the text. Typical reflective tasks at this level require readers to make a comparison or several connections between the text and outside knowledge by drawing on personal experience and attitudes.”

For science, level 1a indicates that a learner is “able to use basic or everyday content and procedural knowledge to recognize or identify explanations of simple scientific phenomena. With support, they can undertake structured scientific enquiries with no more than two variables. They are able to identify simple causal or correlational relationships and interpret graphical and visual data that require a low level of cognitive demand. Level 1a students can select the best scientific explanation for given data in familiar personal, local, and global contexts.”

At level 2, “students are able to draw on everyday content knowledge and basic procedural knowledge to identify an appropriate scientific explanation, interpret data and identify the question being addressed in a simple experimental design. They can use basic or everyday scientific knowledge to identify a valid conclusion from a simple data set. Level 2 students demonstrate basic epistemic knowledge by being able to identify questions that can be investigated scientifically.”

Given the country’s average point scores falling below the baseline minimum proficiency of level 2, and its low ranking among the participating countries, the apparent consensus is that we have an education crisis.

However, no matter how we describe the intensity and gravity of the problem in education, what the discourse must ask is what explains the problem, which in turn can lead us to the appropriate solutions to improve education outcomes quantitatively and qualitatively. The OECD report itself provides an answer: PISA performance is strongly correlated with the country’s economic status. As expounded in the OECD report on the 2022 PISA results, “the economic and social conditions of different countries/economies, which are often beyond the control of education policy makers and educators, can influence student performance.”

It adds that “some 62% of the difference in countries’/economies’ mean scores is related to per capita GDP.” The country’s GDP per capita in 2021 international dollar converted using PPPs is the fifth lowest among the 80 participating countries and economies. Of the participating ASEAN countries, our GDP per capita is higher only than Cambodia, which also scored lower than the Philippines in all subjects. Vietnam’s per capita GDP is 31% higher than ours, Indonesia’s is 46% higher, Thailand’s is 111% higher, and Malaysia’s is 225% higher.

While these countries scored higher than the Philippines in the PISA, both Indonesia’s and Thailand’s national averages also did not meet the level 2 baseline minimum proficiency, while Malaysia reached it only for science. It was only Vietnam that surpassed level 2 for all subjects.

We want to compare our PISA performance with Singapore which topped the country averages at 575 score points for Mathematics (level 4), 561 for Science (level 4), and 543 for reading (level 3)? Well, Singapore’s per capita GDP is higher than ours by 1,200%, and it has in fact the highest GDP per capita among all participating countries.

Thus, it will not be misplaced to say that our ability to address the challenge of education quality will depend a great deal on the ability of both the public and private sectors, specifically the President and his Cabinet, Congress and politicians, the economic managers and technocrats, and the businessmen and investors to dramatically improve our economic performance.

That said, other variables other than high economic growth explain better than average education outcomes. Improvements in education quality must supplement economic performance. Indeed, there are countries and economies that perform better than their country’s economic status would otherwise predict. Within participating ASEAN countries, Vietnam and Singapore are examples. As emphasized in the OECD report, “some 31% of differences in student performance are due to differences in countries’ education systems — mainly in how they are organized, financed, and use their resources.”

It goes without saying that the DepEd is likewise accountable in assuming the great tasks and responsibilities to improve the quality of Philippine education.

(To be continued.)

 

Nepomuceno Malaluan is a founding trustee of Action for Economic Reforms and a former DepEd undersecretary.

Move to impose rice safeguard measures seen negating impact of import tariff cut

PHILIPPINE STAR/RYAN BALDEMOR

By Adrian H. Halili, Reporter

THE use of safeguard measures against rice imports may end up canceling out any price declines resulting from tariff cuts, a government researcher said.

Roehlano M. Briones, a senior research fellow with the Philippine Institute for Development Studies, said safeguards measures against rice imports may “nullify the reduction in rice prices due to the tariff cut.”

“We cannot go on penalizing consumers as heavily as in the past,” Mr. Briones said via Viber.

Section 10 of Republic Act (RA) 11203 or the Rice Tariffication Law authorizes the government to impose special duties on rice imports in the event of ‘“sudden or extreme price fluctuations,” triggering a special safeguard duty under the procedures prescribed by RA 8800 or the Safeguard Measures Act.

“With tariffs at 15%, it will depend on what provisions the special safeguard duty will provide to protect farmers which will not run contrary to (the Rice Tariffication Law),” University of Asia and the Pacific Center for Food and Agribusiness Executive Director Senen U. Reyes said via Viber.

Mr. Reyes added that even with previous import tariffs at 35%, farmers have claimed that they are disadvantaged by foreign competition.

Farmers groups last week sought a delay in the execution of Executive Order (EO) No. 62 which lowered the tariffs on rice imports to 15%, until 2028, subject to a review of import duties every four months.

Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said that any delays in carrying out EO 62 could hinder the reduction of rice prices, with broader implications for the inflation-containment effort.

“If there is a delay in imports, it will also have an impact on our national rice inventory. And of course, the possible decrease in rice prices will also be delayed,” Mr. De Mesa told reporters last week.

The Department of Agriculture (DA) said that it was projecting national rice reserves at 3.64 million metric tons (MMT) by the end of the year, equivalent to about 95 days’ demand.

The national rice inventory rose 10.3% to 2.08 MMT as of May 1, according to the Philippine Statistics Authority.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. has said that the department would back a hike in rice tariffs once rice prices fall to P42 to P45 per kilogram.

Former Agriculture Undersecretary Fermin D. Adriano put forward a variable tariff regime that would save time on determining that dumping — the unfair pricing of exports — is taking place.

“The better alternative is a variable tariff system as adopted and implemented in Bangladesh,” Mr. Adriano said via Viber.

“The problem is to prove there is surge or dumping, which will take time to establish. DA does not have enough technical people to do the math and prove based on solid data that there or dumping or a surge in imports,” he added.

Leonardo A. Lanzona, Jr., an economics professor at the Ateneo de Manila, said that the government should also provide subsidies on a large scale.

“Agriculture cannot be ignored in this case. The government must subsidize a massive agricultural development program, not only raising production but distributing income as well,” Mr. Lanzona said via Messenger chat.

Tariff collections from rice imports support rice farmers through the Rice Competitiveness Enhancement Fund, with an annual allocation of P10 billion. The excess is also used for financial assistance to rice farmers.

The US Department of Agriculture is projecting Philippine imports at 4.6  MMT this year, driven by the cut in tariffs. If realized this would be 27.8% higher than the 3.6 MMT reported in 2023.

Max populi

The updated Isuzu D-Max shows off its prowess through a challenging course. — PHOTO BY DYLAN AFUANG

This upgraded Isuzu truck picks up on ‘customer feedback’

By Dylan Afuang

ISUZU PHILIPPINES CORP. (IPC) recently brought in the revised version of the truck brand’s pickup model that was unveiled globally in late 2023. In IPC’s response to “customer and dealer feedback,” the new D-Max carries notable changes that include an exterior redesign, and drivetrain and technology additions.

“Over the years, we have continuously introduced numerous advancements to the D-Max, all the while ensuring that it remains true to its core values,” IPC President Tetsuya Fujita stated during the D-Max’s public launch in Pasay City.

The current D-Max, upon which this updated model is based, was introduced here in 2021.

“This latest evolution is the product of listening to the feedback of our customers and dealers, integrating their insights into the design and functionality of this new model,” Mr. Fujita added.

Perhaps in a bid to meet varying consumer budgets and use cases, the 2024 D-Max is available in total of 12 variants within four trim levels (Single Cab, LT, LS-A, and LS-E), with prices starting from P938,000 for the Single Cab RZ4E model and topping out at P1.945 million for the 4×4 LS-E AT.

“The Philippine market is important for Isuzu,” Isuzu Motors International Operations Thailand President Junya Fujiwara added during the D-Max’s unveiling. “We understand that Filipinos have a strong affinity with pickup trucks, and we are confident that the Philippine market will embrace the D-Max with the same enthusiasm that we have (seen) in other countries.”

Nikkei Asia reported that “Isuzu leads the Thai market for pickup trucks,” while automotive blog carscoops.com wrote that the said market accounted for “180,000 sales out of the (pickup’s) 340,000 global sales in 2022.”

The new D-Max is distinguished by a sharper front grille that’s finished in gunmetal and black chrome finish, and is flanked by LED headlamps with redesigned daytime running lights. The front fascia also sees fog lamps whose air curtains are designed to reduce aerodynamic drag.

Elsewhere around the pickup, it’s adorned by a “cargo sail” bed accessory, 18-inch matte dark-gray alloy wheels, and triple-wing LED tail lamps.

Moving inside, the D-Max’s new equipment includes a wireless charger, second-row air-con vents, and a seven-inch digital driver’s display. Infotainment is provided by screens sized at nine and 10.1 inches, with both featuring Apple CarPlay and Android Auto connectivity.

As “IPC aims to recapture the hardcore 4×4 enthusiasts,” the company said in a release, four-wheel drive guises of the new pickup are equipped with a rear differential lock system and Rough Terrain Mode for better traction on challenging terrain.

Updates extend to the safety tech, as Isuzu’s latest advanced driver assist system (ADAS) is supported by a camera with an enhanced field of view to improve accident-avoidance capabilities. Boosting driver’s visibility around the vehicle are a 360-degree camera, Rear Cross Traffic Brake (RCTB), and digital video recorder.

Under the hood, the truck remains unchanged as it retains its three-liter turbodiesel mill with 190hp and 450Nm of torque, which is then mated to either a six-speed manual or automatic transmissions powering the rear or all four wheels.

Those interested in the D-Max and the nationwide promotional activities IPC will hold for the model can follow Isuzu Philippines on Facebook.

China regulator to clamp down harder on capital market fraud

A MAn rides a bike on a street in Shanghai, China, Oct. 13, 2022. — REUTERS

SHANGHAI — China’s securities regulator vowed on Friday to clamp down harder on financial fraud, saying it is pushing for harsher punishment against lawbreakers as it seeks to revive confidence in the country’s struggling stock markets.

The China Securities Regulatory Commission (CSRC) and five other government agencies jointly published a set of guidelines against capital markets cheating, their latest efforts to address a deep-rooted issue that has plagued the world’s second-biggest stock market.

The statement, which promised coordinated crackdowns against corporate fraudsters and their accomplices, comes as regulators are investigating the role of PricewaterhouseCoopers (PwC) as the auditor of China Evergrande Group, whose main China unit was found cheating.

“Financial fraud seriously disturbs capital market order and shakes investor confidence,” the CSRC said in the joint statement.

Regulators will “go after chief evils,” “punish accomplices,” and make coordinated, systemic and comprehensive efforts against fraud, it said.

As part of the efforts to head off misbehavior, the CSRC said it has been working to revise laws toward harsher punishment.

For example, laws have been revised to fine a company up to 10 million yuan ($1.38 million) for dishonest disclosures, compared with 600,000 yuan ($82,568) previously, the watchdog said.

Meanwhile, those who violate disclosure rules could be imprisoned for up to 10 years, compared with three years previously. Intermediaries who publish false documents can also be subject to 10-year imprisonment, the CSRC said. — Reuters

Inflation rates in the Philippines

Headline inflation eased to 3.7% in June after four straight months of acceleration due to a slower rise in electricity and transport costs, the Philippine Statistics Authority (PSA) said. Read the full story.

Inflation rates in the Philippines

DMCI Power’s Antonino Gatdula, Jr. sets sights on lowering off-grid power costs

ANTONINO E. GATDULA, JR.

By Sheldeen Joy Talavera, Reporter

ANTONINO E. Gatdula, Jr., president of off-grid power generator DMCI Power Corp., prioritizes reducing power generation costs and strategically incorporating renewable energy sources into the company’s portfolio.

“Aside from the fact that we have to provide reliable, quality, stable supply of power, I think most importantly… we have to bring down the cost of power in the off-grid,” Mr. Gatdula said in an interview with BusinessWorld.

“The effect is not just limited to the area where we are operating; it extends to the entire country. So, if we bring down the cost of power in the off-grid, the UCME (Universal Charge for Missionary Electrification) rate that consumers are paying will decrease,” he added.

To further reduce costs, he mentioned plans to integrate renewable energy into the company’s portfolio, noting that it is “much cheaper than bunker and diesel.”

Mr. Gatdula said the company aims to maintain DMCI Power’s leadership position as “the largest privately owned power provider in the off-grid sector.”

DMCI Power currently operates and maintains bunker-fired power plants, diesel generating sets, and thermal power plants in Masbate, Palawan, and Oriental Mindoro.

PROFESSIONAL JOURNEY
Mr. Gatdula, a certified public accountant, began his professional journey as an audit associate in 2000 and an instructor at San Beda College.

“It is really my passion to teach as I feel relaxed every time I share what I know… Teaching is a two-way stream, right? You teach and then at the same time you learn,” he said.

He entered the energy industry in 2003, starting at the Energy Regulatory Commission before moving to the state-led Power Sector Assets and Liabilities Management Corp.

In 2008, Mr. Gatdula joined DMCI Power as a marketing and business development officer. Recognized for his expertise in accounting and finance, he was later promoted to controller and subsequently assumed the role of chief finance officer. Approximately seven years later, he was appointed as the company’s chief operating officer.

He assumed the presidency of DMCI Power in 2022 amidst unprecedentedly high fuel prices, which posed challenges for the company given its reliance on bunker and diesel power plants.

Under the Electric Power Industry Reform Act of 2001, UCME is collected from electricity end users to fund electrification programs of the National Power Corp.

“Because of the elevated price of fuel, the amount of subsidy that they collected is not enough to settle the subsidy entitlement of generators in the off-grid. As a result, there had been a delay in the payment of subsidy,” he said.

During this period, Mr. Gatdula emphasized the challenge of meeting financial obligations to banks and fuel suppliers to prevent disruptions in the areas served by the company.

He noted that suppliers understood the situation, and the company’s banks extended credit terms and short-term loans to support its operational needs.

“I think teamwork is really important…That is why I am so happy that I have a team that is dedicated and share the same passion, the same level of commitment to deliver,” Mr. Gatdula said.

He described his leadership approach as focused on empowering employees to achieve their full potential, drawing on his passion for teaching.

Entering the energy industry at 23, Mr. Gatdula gained insights into the critical role of collaboration between government and private sectors in addressing energy sector challenges.

“The power industry is complex due to its diverse stakeholders. It’s crucial for government and private sectors to collaborate effectively to enhance the quality of life for every Filipino,” he said.

For 2024, DMCI Power will be spending its “biggest annual capital expenditure,” which amounts to about P2 billion, on various energy projects.

One of these projects involves the construction of a 12-megawatt wind farm on Semirara Island, Antique province, scheduled to commence operations in the first quarter of 2025. Mr. Gatdula noted that wind turbine testing is slated for December.

The company anticipates higher energy sales volume this year, driven by increased demand and reliable operational performance.

“I can say that it should be a lot higher than last year because, (in) our experience, for the first five months of this year, it has been a lot higher than last year; (we’ve seen) double-digit growth in volume,” Mr. Gatdula said.

Burberry preparing to cut hundreds of jobs, Telegraph reports

BRITISH fashion house Burberry Group Plc is expected to shed hundreds of jobs, mostly in the United Kingdom (UK), following a sharp drop in its stock market value, the Telegraph reported.

Employees were informed during a Zoom meeting in late June, with those affected told they were facing redundancy or having to reapply for their roles, the newspaper reported, without saying where it got the information.

Burberry has reportedly begun a 45-day consultation, signaling that hundreds of positions could be cut.

It’s understood that union officials are coordinating redundancy settlements with a select group of employees. Employees fear as many as 400 jobs could be at risk. Burberry declined to comment to the Telegraph.

Burberry employed an average of 9,169 full-time equivalent workers during the 2023-24 fiscal year, according to its most recent annual report.

The reported cuts would follow 500 positions slashed in 2020, when the iconic trench-coat maker sought to save £55 million ($70.5m) amid pressures from the pandemic. — Bloomberg

How do you English this?

FREEPIK

Was it a joke for comic relief, or was it a truly desperate grasping for the right words on an impassioned plea for understanding and consideration at a videoed high-level government committee meeting investigating accusations raised on human rights transgressions?

Serious matters are not joked about. A clasping for the proper and exact translation to English describes the worrisome suspicion: are Filipinos losing their proud and confident proficiency in the English language, a reputation long held since American rule from 1898-1946?

“How do you English this?” should be unheard of in what sociolinguistics would call the “diglossia” or bilingualism in a country raised on English as the dominant choice of formal communication for the past century and a quarter (125 years!) versus some 80-130 various regional dialects/languages including the national language, Filipino, which is mostly spoken in the Tagalog region (Metro Manila, the province of Rizal, and the Calabarzon region which is composed of the provinces of Cavite, Laguna, Batangas, and Quezon).

Of course, extreme nationalists might dislike the Americans for the “sin” of colonization, and protest rabidly against the continuing imposition of English as the formal language for communication and the medium of instruction in secondary and tertiary schools. The 1935 Philippine Constitution mandated that “Tagalog” (changed later to “Pilipino,” and now “Filipino”) is the national language. In 1940, Executive Order No. 263 ordered the teaching of the national language in all public and private schools in the country.

“The school system was reorganized when the Americans came to liberate the Philippines from the Japanese invasion. English, again, became the principal medium of instruction with Tagalog taught as a required subject in the elementary and secondary levels.

“In 1957 a new language policy was adopted in Philippine schools. The Board of National Education decided that the ‘medium of instruction in the first two grades of the elementary school shall be the local vernacular; that at the same time the national language shall be taught informally beginning in Grade I and given emphasis as a subject in the higher grades; that English shall be taught as a subject in Grades I and II and used as a medium of instruction beginning in Grade III.’

“This revised Educational Program of 1957 was criticized strongly due to the observed weakness of the multilingual policy which it promoted” (web.stanford.edu).

But the bilingual method of instruction in schools continued —until the fall of the martial law dictator Ferdinand E. Marcos, Sr. in the EDSA People Power Revolution of February 1986. An explosion of extreme nationalism brought the 1987 Constitution which reaffirmed the human rights and freedoms of the Filipino people that were curtailed in martial law. Love of country was most symbolized in the love of the “Inang Wika” (Mother Tongue), Filipino. “For the purposes of communication and instruction, the official languages of the Philippines are Filipino, and until otherwise provided by the law, English…” In 1990, a Congressional Commission was created to survey Philippine education. The EDCOM recommended the use of Filipino as the language of instruction at all levels by the year 2000.

Purists in academe added chaos to chaos as all scrambled to find translations of technical and even ordinary words in English or the regional vernacular to Filipino. The Filipino language should have no “recall” to Spanish, English, or other dialect. Absurd translations like “salum-puwet” were invented to replace the long-used “silya” (silla in Spanish) which meant “chair.” At the tertiary and post-graduate levels, technical papers were written in English, and translators hired if needed, for the final thesis or dissertation to be submitted in straight Filipino. How can, when there were sometimes no official Filipino words for certain basics, like for “community,” shunning “komunidad,” which is adopted from the Spanish?

In this discomfiture, formal education reverted to English. Instruction in the public-school primary and secondary levels became hybrid Filipino-English, with most starting to teach in English in Grade III, as in the old system.

“How do you English this?” became a pathetic cry of the younger generations who had lost the opportunity to be grilled in the English language in their formative years. “Taglish,” a creatively lax and “groovy” (fashionable and exciting) conjoining of English and Filipino within a sentence, or the sudden shift of English to Filipino and vice versa within a thought was permissible and accepted, from children and upward to adults and old people. Pure, grammatical English was generally overridden by the convenience of Taglish.

Alas, this cumbrous time in national sociolinguistics was also the era of liberalized global commerce and trade, and the stepping up of demand for goods and services from supplier nations. Particularly drawn into the boom and bounty were the small developing countries like the Philippines. The demand for overseas foreign labor was filled by at least 1 million overseas Filipino workers (OFWs) deployed or redeployed every year from 2006 through 2019, a figure that increased to an average of 1.9 million during the 2016-19 period. This figure dropped to 550,000 during the COVID-19 pandemic until more than 1.2 million OFWs were deployed in 2022 (migrationpolicy.org). According to the preliminary figures reported for 2023, the value of cash remittances sent to the Philippines by overseas workers reached approximately $33.5 billion (statista.com, April 19, 2024).

Guess what? A requirement for OFWs is that they are English-speaking. Thank God we still use English as the major language of instruction in our schools (Filipino is used from Kindergarten to Grade III in public schools; Most private schools use English throughout grades 1-12.)

More than 27.2 million students were enrolled in 2021, 23.9 million of whom were in public schools. An estimated 2 million students aged 16 to 18 were not attending school as of 2023. As of 2023, there were 327,851 school buildings in the country, 104,536 of which are in good condition. The 2019 National School Building Inventory reported a shortage of 167,901 classrooms in the country. The Senate Committee on basic education estimates that P420 billion is needed to build classrooms for the country’s education system. (Philippine Star. Jan. 31, 2023).

The approved budget for the Department of Education in 2024 is P715,294,186,000. The original proposal under Vice-President Sara Duterte who was then also the Education secretary, was P924.7 billion, which included a P150-million confidential fund, aside from confidential and intelligence funds amounting to P500 million for the Office of the Vice-President in 2024. Both confidential funds were disapproved by Congress, “following the controversy about the P125 million in secret funds it spent in 11 days in 2022,” (politico.com.ph, June 29, 2024).

President Ferdinand R. Marcos, Jr. named Senator Juan Edgardo “Sonny” Angara as the new secretary of the Department of Education, effective July 19. Mr. Angara, whose Senate term was supposed to end in 2025, will replace Ms. Duterte, who resigned as education chief on June 19. Mr. Angara vowed to coordinate with his predecessor for guidance in managing the department, and bared his priorities which include the streamlining of the curriculum of basic education. “I think that’s the right direction. I think the program started at certain grade levels. Good programs will be continued. There are ongoing reviews of existing programs started by the Vice-President, so whatever the results of those reviews, we will adopt the recommendation,” Mr. Angara said (philstar.com, July 4, 2024).

Sonny Angara has more concerns than money at the department. He must improve the quality and delivery of education in the country. Critical to this is the review of the “Return to K-10” bill of former President now Senior Deputy Speaker and Pampanga Rep. Gloria Macapagal Arroyo, which seeks to return the basic education system to its previous K-10 setup, with students considered as high school graduates after completing kindergarten, six years of elementary school, and four years of secondary school. Grades 11 and 12, currently known as senior high school (SHS), would be required only for those pursuing a college degree. Ms. Duterte endorsed this and prepared for its implementation in 2024.

But the K-10 program was already deemed inadequate and ineffective by previous Education department heads before Ms. Duterte. The improvement, the K-12 program, launched and implemented in the term of President Benigno Simeon Aquino III and continued in President Rodrigo Duterte’s time, has not had time to take effect, having been deterred by the COVID-19 pandemic and the political tensions of two national elections.

The Organization for Economic Co-operation and Development (OECD) conducts the Programme for International Student Assessment (PISA) every three years to evaluate the knowledge and skills of 15-year-old students globally. Filipino students were still among the world’s weakest in math, reading, and science in the latest assessment, with the country ranking 77th out of 81 countries and performing worse than the global average in all categories.

“The weaknesses in our basic education system will eventually translate into the weakness of our workforce, affecting the productivity and key source of our economic growth and competitiveness,” Philippine Business for Education said in a statement following the PISA evaluation (BusinessWorld, Dec. 7, 2023).

“The state of education in the Philippines demands immediate attention, collective effort, and a commitment to improvement so we can give our children the best learning experience that they deserve.”

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com