Home Blog Page 1518

Amazon fined $5.9 million due to California warehouse worker quotas

REUTERS

AMAZON.COM has been fined $5.9 million by a California labor regulator who says the online retailer failed to properly inform workers of productivity quotas at two warehouses, including one where some workers are trying to unionize.

The office of California Labor Commissioner Lilia Garcia-Brower announced the fines, which were issued in May, this week.

A 2022 California law requires employers to provide written descriptions of quotas to workers if they can be disciplined for failing to complete jobs at a specified speed.

The commissioner said Amazon violated that law nearly 60,000 times in a five-month period ending in March at warehouses in Moreno Valley and Redlands, outside of Los Angeles.

Amazon spokesperson Maureen Lynch Vogel said the company is appealing the citations and denied that warehouse workers have fixed quotas.

“At Amazon, individual performance is evaluated over a long period of time, in relation to how the entire site’s team is performing. Employees can and are encouraged to review their performance whenever they wish,” Lynch Vogel said in a statement.

Criticism of Amazon’s alleged quota system have been a focal point of a nationwide campaign to unionize its warehouses. Workers at a New York City warehouse voted to join a union in 2022, while others at two facilities in New York and Alabama have since spurned unions.

A union in 2022 filed a petition to hold an election at the Moreno Valley warehouse, known as ONT8, which was later withdrawn amid allegations of illegal union-busting activity by Amazon.

An administrative judge is scheduled to hold a hearing on those claims, which Amazon has denied, in August.

Ms. Garcia-Brower, in a statement, said Amazon’s quota system is exactly what the California law was designed to prevent.

“Undisclosed quotas expose workers to increased pressure to work faster and can lead to higher injury rates and other violations by forcing workers to skip breaks,” she said.

Congress is considering a Democratic-backed bill that would largely mirror the California law by requiring written notice of quotas and prohibiting quotas that prevent workers from taking breaks or using bathrooms.

Senator Ed Markey of Massachusetts, one of the bill’s sponsors, said the fines against Amazon announced on Tuesday highlighted the need to crack down on “punishing” quota systems.

“We need more than a patchwork of state laws,” Mr. Markey said in a statement. — Reuters

Philippines improves in 2024 UN Sustainability Development Index

THE PHILIPPINES jumped six spots to 92nd out of 167 countries in achieving 17 sustainable development goals (SDGs), but still grapples with significant challenges in addressing poverty, hunger and low-quality education, a United Nations (UN) body said in its latest report. Read the full story.

Philippines improves in 2024 UN Sustainability Development Index

Chill in heat wave

TAKAHIRO TAGUCHI-UNSPLASH

The scorching sun and sweltering humidity cause the temperature to rise and tempers to flare.

Trapped in the blistering urban oven, our thoughts turn to cool temptations. To walk in the mist of a pine forest and smell the fresh flowers, to touch the wispy clouds as they drift by the mountains, to plunge into the azure sea and float on the rolling waves. To stand under a waterfall of cool spring water and wade around the crystal-clear stream. To stroll along a white powdery beach and pick tiny shells. To laze under palm fronds, sip icy coconut juice or a frozen shake, and gaze at the swirling kites in the cobalt sky.

The pace of life has been accelerating since the long lockdown ended. From the eerie silent stillness to a slowly rising tempo to a frantic frenzy. Unnerving and distracting.

Fast forward and upward.

Hurtling to the future, we often miss the essential things. We do not have time to pause long enough to savor life.

All we see are the four walls of the office, conference rooms, hallways, and more walls at home. Our reading materials consist of online financial statements, hard copies of annual reports, schedules, ledgers, official letters, and countless e-mails. We are preoccupied with deadlines, accounts, interest rates, market charts, analyses, surveys. There are many things to read that are urgent and others that are not important.

We downsize to save resources and deal with clutter and details.

Rushing back between Zoom meetings, live receptions, and socio-civic activities — to the gym, driving range, tennis and pickle ball courts, swimming pool, or track field. It is a constant series of catching up with people and goals.

Life on the semi-fast track is relatively active. We can barely keep up and catch our breath. Speed tends to distort one’s sense of perspective and vision. Harmony and balance are distorted. Everything becomes a blur of shapes, incoherent words, and discordant notes.

What can we do when the world spins out of control? We take flight, pray, fantasize, play music, work out, eat, play a sport, dance, paint, compose, write. There are many options.

A fantasy revives the tired spirit like a bracing tonic. When it is physically impossible to escape, we can switch reality off. Just for a spell.

“Come with me, and you’ll be in a world of pure imagination…” as the song goes.

In the world of imagination, one can wander to distant places in the future. Or back to an era of innocence.

One generation ago, life was less complex, less frenzied. People had simple needs and fewer wants.

In those days, people were content with less extravagant, less complicated desires. It was a more civilized world. People were kinder and more courteous. There was enough time to do certain things and interact with the friends who matter.

Summertime used to be a long sojourn in cool Baguio. For most people, it was heaven on earth. (This was before jet-setting and island hopping became fashionable.) The city, swathed in fog and dappled with silver clouds, was paradise found. It was everything wonderful wrapped in one bright, beautiful, and fragrant package. That was when families had close friends who formed the extended clan. It seemed that everyone knew each other and cared about the community.

Over the decades, the close-knit feeling has been eroded by inertia, indifference, apathy, and other material or cyber distractions. The fragile threads of friendship have been severed by geographical and emotional distance. Not necessarily by choice but by circumstances beyond our control.

People have moved on — to other places and new experiences. Some friends conveniently remained in a time warp, a defensive bubble. Unable or unwilling to change and go with the flow.

Long, lazy summers in the mountains are no longer the lifestyle. People prefer to travel to other countries, take cruises and explore exotic islands, chase the northern lights — the elusive aurora borealis —, ascend to Macchu Picchu of the Incas, climb Mount Everest, or chase happiness in Bhutan, see Antarctica and the penguin colonies.

Floating on a pool or surfing the waves, swimming with the whale sharks and dolphins, watching the sun set and moon rise are some of the pleasures one can imagine and do within a limited period. It could go on and on. The imagination expands and rises, lifting the dreamer to a different plane.

If only one could do everything all at once without the hassle of postponement. How much time does one have? The future is now here — in the present.

A sudden clap of thunder breaks the reverie.

Back to reality, the oppressive heat wave is aggravating the toxic atmosphere. People are anxious, vulnerable, tense and wary. There are too many worries in the mind — the crises in the world are overwhelming.

The feeling of suffocation will pass. The haze will eventually dissolve. We hold our breath — and wait for the steamy showers to fall. The rainy season is starting.

Hopefully, one can exhale and feel a blissful sense of relief.

 

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

mavrufino@gmail.com

BillEase eyes 50% income rise

CONSUMER FINANCE app BillEase wants to increase its net income by 50% this year as it looks to further expand its customer base, an official said.

The company recorded a net income of about P250 million in 2023, BillEase Chief Financial Officer Garret Go told reporters on the sidelines of an event on Tuesday.

The company earlier said its revenues doubled year on year in 2023.

Mr. Go said their 2023 performance was driven by repeat customers’ continued use of their app.

About “90% of our business is from repeat customers. These are customers we’ve onboarded even before 2023, and the longer they stay with us, the better our customers may become, so they have a bigger credit limit. And of course, their default rates are better,” he said.

BillEase onboarded 500,000 new users in 2023, Mr. Go said, adding the company recorded 1.3 million customers as of May.

The company aims to hit two million users by the end of this year, he said, with their monthly active users currently at around 400,000 to 500,000.

“We’re still at the phase where we know we can grow a lot. We only have a million users today, and that’s out of a population of 110 million in the country. I’m sure there’s a lot who are still unserved or underserved. So, we want to really target them. We think there’s a lot of room for growth, at least in the next couple of years,” Mr. Go said.

BillEase also aims to grow its loan portfolio by 50% this year from around P4 billion currently, he said.

“We continually improve our credit model to make sure we underwrite the right customers. We give customers who can afford installments the right credit limit… There’s a lot of people who want to borrow money, but we only want to give them enough so that it’s useful for them,” Mr. Go said.

“I think that’s one key difference with us and credit cards… That is better in terms of financial education for someone who’s new to borrowing money, because they can handle their finances better,” he said.

Mr. Go added that they have seen steady consumer demand despite the high interest rate environment as inflation is already slowing down.

He said their overall nonperforming loan ratio is currently at around 7-8%, adding that they expect better asset quality as inflation continues to ease.

“I think we have one of the best collections among the players in the industry. Collections have been good. That’s also why we have been profitable,” he said.

The Bangko Sentral ng Pilipinas (BSP) has kept its policy rate at a 17-year high of 6.5% since October 2023 following cumulative hikes worth 450 basis points to help tame elevated inflation.

Headline inflation picked up to 3.9% year on year in May from 3.8% in April, but marked the sixth straight month that inflation settled within the BSP’s 2-4% target band. From January to May, the consumer price index averaged 3.5%, matching the central bank’s full-year forecast.

BillEase recently received $5 million in fresh capital from Saison Investment Management Private Ltd. for the expansion of its Helicap-led credit facility to $40 million. — AMCS

New evidence Baldwin was reckless with gun before Rust shooting, prosecutors say

ACTOR Alec Baldwin in a scene from Rust. — IMDB

NEW EVIDENCE shows that Alec Baldwin was reckless with a revolver before the weapon fired a live round that killed Rust cinematographer Halyna Hutchins in 2021, prosecutors alleged ahead of the actor’s July manslaughter trial.

The evidence, which includes images and video from crew and a set photographer, shows Mr. Baldwin pointed his gun at a crew member and fired a blank round, held his finger on the trigger when not supposed to and engaged in horseplay with the weapon, special state prosecutors said in a Monday filing. Mr. Baldwin’s legal team said in a Monday motion to dismiss charges that prosecutors had built their case around the unproven hypothesis the gun was properly functioning and could not have gone off unless he pulled the trigger, an act the actor denies.

Mr. Baldwin’s legal team argue the gun was modified, allowing it to fire without a trigger pull, an issue that has become central to the 17-month-old case. Ms. Hutchins died after Rust armorer Hannah Gutierrez mistakenly loaded a live round into Mr. Baldwin’s reproduction Colt .45 revolver during filming in a movie-set church near Santa Fe, New Mexico. Ms. Gutierrez in March was found guilty of involuntary manslaughter and was sentenced in April to 18 months in prison, the same term Mr. Baldwin will face if found guilty.

Mr. Baldwin, the star of 30 Rock, said he was directed to point the gun toward the camera, he cocked it, and it “went off” on its own.

Among apparently new evidence that prosecutors intend to show at the July 9 trial is an image by set photographer Karen Kuehn taken minutes before a 911 call on the shooting.

In the photo, Mr. Baldwin appears to have his finger inside the trigger guard and his thumb on the hammer, prosecutors Kari Morrissey and Erlinda Johnson said in the filing.

A video clip taken by script supervisor Mamie Mitchell a couple of hours prior to the shooting appears to show Mr. Baldwin cock the gun and possibly pull the trigger, the prosecutors said.

In a further unspecified video on the day of the shooting Baldwin is asked to point the revolver left of camera and cocks the gun, despite not being asked to. There is some evidence he also pulls the trigger of the gun, prosecutors alleged. Movie industry firearms safety guidelines tell actors never to put their finger on the trigger until ready to shoot, treat all firearms as though loaded, and not point a gun at anyone unless absolutely necessary, and then in consultation with a safety expert.

Some of the video evidence listed by prosecutors appeared to already have been shown at the March trial of Ms. Gutierrez. — Reuters

Vivant eyes P15 billion for RE projects until 2030

LISTED Cebu-based energy and water conglomerate Vivant Corp. said it plans to invest P15 billion for its renewable energy (RE) projects until 2030.

“To achieve our growth plans, our total equity investment requirement up to year 2030 is projected to reach P22 billion. Out of this, we target to earmark P15 billion for various renewable energy projects,” Vivant Energy President Emil Andre M. Garcia said in a disclosure on Thursday.

Vivant Chief Executive Officer Arlo Angelo G. Sarmiento said that the company sees a continued growth for 2024 after sustaining its revenue and operating income amounting to P2.3 billion in 2023.

“We are extremely proud of how we’ve been able to move the country forward with our significant investments in energy and water,” Mr. Sarmiento said.

The company’s water strategic business unit Vivant Infracore Holdings, Inc., with the brand name Vivant Water, recently had the first water out of the first skid or train of its utility-scale seawater desalination facility in Isla Mactan-Cordova Corp.

The Cebu desalination plant can produce 20 million liter per day of water. Its construction is now estimated at 90% and will be fully operational before the end of the year, Vivant said.

To date, Vivant Water has invested P2 billion in water infrastructure.

Vivant Water President and Chief Operating Officer Jess Anthony N. Garcia said that the company is expecting a total investment of about P8 billion over the next five years.

“While we remain focused in the near team to our home market of Cebu and other identified locations, we ultimately aim to be a major player in the water sector with operations in the country,” Mr. Garcia said.

At the local bourse on Thursday, shares in the company fell by P4.72 or 29.5% to close at P11.28 each. — Sheldeen Joy Talavera

How to take pride in your work

I’ve been in this job for more than five years without a promotion but have received an average of 4% in merit increases each year. Three days ago, my boss asked me if I’m enjoying my job. I said “yes,” and he smiled. Is he serious? What’s going on? — Blue Sky.

Don’t be fooled. The boss’s smile can mean many things. It could be a rictus or a fake smile that does not translate to genuine delight, but a horrified, involuntary grin that we see from like, an embarrassed stage actor who forgets his lines while performing. If that’s the case, then start worrying about your future in that organization.

Understand that having a good time at work and enjoying an annual pay increase are two different things. They are always a welcome development. Enjoying a job means you’re taking pride in what you’re doing even if there are occasional bad times, which are unavoidable.

This is best seen when you look forward to each day with genuine optimism and enthusiasm despite the rigors of daily commuting. A good sign of contentment is when you’re considered a candidate for a perfect attendance award, though there may have been some lapses due to circumstances beyond your control.

For some workers, having a good time means performing the minimum requirements of the job while spending much time doing unproductive things, engaging in office gossip or updating social media accounts during work hours. On the other hand, there are high achievers who are not happy doing the bare minimum, knowing that this does not serve their long-term career aspirations.

FIVE SOLUTIONS
So, which do you think is better? Having a good time doing the minimum requirements or exceeding expectations? At the end of each day, you’ll find out that doing the average thing is not sustainable. Sooner than later, your boss will make a decision that will make or break your career, and ultimately, your job security.

The basis of everything will be work performance. Therefore, if you’re enjoying your job for the wrong reasons, then think again. Repent right away. There are hundreds of solutions that you can consider. I’m listing here some of the most basic and practical approaches you can take right away:

One, have a reasonable performance plan and target. It must be consistent with your job description and performance standards agreed with the boss. Know your job well. Do it better than your colleagues. If necessary, or if you’re confused, better that you discuss things with your boss, who should be glad to assist you.

Two, create and showcase your big accomplishments. The best way to do this is by stepping outside of your work routine. Think of ways to become productive, cut costs, or be efficient all the time. Stop being a non-value proposition in your organization. If you’re successful, your reward or recognition will come in due time.

Three, volunteer for challenging assignments. That’s assuming you have the spare time to do them all. Before raising your hand, ask the following questions: Would this job make my image acceptable to all? Is this a dirty, demeaning, or difficult job that no one wants to do? Am I genuinely looking for acceptance? How will others look if I do the job?

Four, acquire a unique skill that others don’t have. How about becoming a technology wizard in ways that make your job easy? How about analyzing the future of your industry? Could you interpret the business pages and determine how your company will be affected? You should know what’s missing in your company — that’s where you enter the picture.

Five, show 100% commitment. That means working a lot harder, if not smarter than the rest of your team members. Don’t lose sight of your long-term goals, even for a second. If you’re fully committed, you’ll avoid personal downtime, mistakes, or deviation from your plan.

TAKING PRIDE
If you’re not enjoying your work, then that’s self-flagellation. If you’re not happy, then there’s no point in staying a minute longer in your job. You don’t have to be perpetually miserable trying to outdo other moaners. Conversely, if you’re happy because you’re getting paid for mediocre work, then that’s a shame.

Whatever the circumstances are, the ideal approach is to become happy with your work and make sure your boss and other people agree to that. Once you acknowledge that work is fun, you’ll find every step lighter. Having a good time at work and enjoying the pay is the ideal to shoot for in every workplace.

It means taking pride in what you do every step of the way.

 

Bring Rey Elbo’s “Kaizen Blitz Workshop” to your organization and discover how to solve problems with low-cost, practical solutions. Contact him on Facebook, LinkedIn, X or e-mail elbonomics@gmail.com or via https://reyelbo.com

Philippines: Balance of Payments (BoP) Position

THE COUNTRY’S balance of payments (BoP) position swung to a surplus in May, data from the Bangko Sentral ng Pilipinas (BSP) showed. Read the full story.

Philippines: Balance of Payments (BoP) Position

If China were a person, would it be a psychopath?

ALEJANDRO LUENGO-UNSPLASH

Time was when multinational corporations had such a bad rap — books early this century emphasized the alleged exploitive nature of companies, the apparent lack of accountability, or that they had become (allegedly) more powerful than nation states. But one interesting point made was that corporations have the nature of sociopaths or psychotics.

Thus, Psychology Today, for example, noted that “if corporations are indeed ‘persons,’ their mental condition can accurately be described as pathological. Corporations have no innate moral impulses, and in fact they exist solely for the purpose of making money. As such, these ‘persons’ are systemically driven to do whatever is necessary to increase revenues and profits, with no regard for ethical issues that might nag real people.” (“Why Corporations Are Psychotic,” March 2011)

What exactly is a psychopath? Again, Psychology Today: “The sociopathic and/or psychopathic pathology is often intertwined with other traits, including and not limited to bullying, narcissism, gaslighting, bigotry, and misogyny,” with such traits normally being:

1. Pathological Lying and Manipulation

2. Lack of Morality and Rule Breaking

3. Lack of Empathy and Cold-Heartedness

4. Narcissism and False Superiority Complex

5. Gaslighting and Psychological Bullying

6. Lack of Contrition and Self-Serving Victimhood

7. The “Situational” Sociopath or Psychopath

As to lack of empathy, such compels “the sociopath or psychopath to commit trespasses with little or no moral conflict. Knowing the suffering of their victims does not bring about ethical pause. Just the opposite — it may encourage the sociopath or psychopath to do more harm (for they feel like they’re ‘winning’).” Furthermore, “sociopaths and psychopaths often blame their victims for causing their own victimization.”

As to “false superiority complex,” in the “mindset of many sociopaths and psychopaths, being ‘better’ than others provides them with twisted justification to exploit and mistreat people at will. Those who are ‘inferior’ deserve their downtrodden fate, and should only be regarded with contempt” (“7 Characteristics of the Modern Psychopath,” Psychology Today, October 2018).

Enter Paul Midler, who has lived in East Asia for 20 years while working as a consultant to companies doing business in the region. His first book, Poorly Made in China, was widely acclaimed. But it is his second book, What’s Wrong with China, that is of interest to us here:

“The most controversial of Midler’s theories,” according to Anders Corr in a review of the book in the Journal of Political Risk*, “is in his suggestion that China is home to a higher percentage of sociopaths. ‘Checklists for sociopathy — referred to also as antisocial personality disorder — read like a description of every factory boss I ever met,’ he writes.”

Corr contacted Midler and asked “if there is indeed a higher sociopathic strain in China, why that feature is not also present in Chinese cultures such as Taiwan or Hong Kong? He answered that Hong Kong, Taiwan, and even Shanghai were all to a great extent driven by foreign investment and influenced by foreign culture. ‘Mainland China is culturally distinct from Hong Kong and Taiwan,’ he wrote in an e-mail. ‘Hong Kong was of course formerly a colony, built up by the British. The foreign influence there remains significant, despite the handover to Beijing.’” He goes on to point out that Taiwan and Shanghai also had considerable outside influences.

What’s Wrong with China reveals the profound problems besetting Chinese society and points out that the nation’s most intrinsic problem is social rather than governmental. As pointed out here previously (“Pro-China ‘independent foreign policy’ and other fallacies,” BusinessWorld, May 2024): That “China’s economic progress is proving to be ultimately unsustainable is rooted in the fact that it is anchored on a wholly unsuitable metaphysic.”

Midler himself writes in his book: “Whatever its actual rate of sociopathy, China is widely understood to be a more difficult place in which to do business, and my own experience in the country suggests this is due to a higher-than-average concentration of a certain bad element, but who knows? In any case, we do not need mountains of quantitative data to ask a potentially interesting qualitative question: Would we not see signs of societal strain in a population that has a higher concentration of sociopaths?”

Incidentally, “sociopath is an unofficial term to describe a person who has antisocial personality disorder (ASPD), whereas psychopathy describes a set of personality traits. However, ASPD and psychopathy can overlap” and people do tend to “use the terms sociopathy and psychopathy interchangeably, but they have different meanings. ASPD and psychopathy share some similar traits, including aggression and a lack of remorse. Additionally, both can occur due to genetic and environmental factors” (“What is the difference between sociopathy and psychopathy?,” Medical News Today, July 2021)

And indeed, China’s rates of personality disorder, depression, and suicide has been increasing (the latter particularly for those aged 5-14 and recently 15-24 years) or at least at disconcerting levels.

Bottom line is that, considering China’s insistent behavior of lying to the world about the West Philippine Sea, followed by constant gaslighting of everyone, its remorseless aggressive behavior towards our fishermen and Coast Guard, its obvious contempt for democracy and the rule of law, there may be a need to recalibrate our foreign policy from openness with a modus vivendi to outright containment of an amoral foreign player.

* “China’s Sociopathy, and its Cowardly Watchers,” Journal of Political Risk, Vol. 6, No. 2, February 2018

The views expressed here are his own and not necessarily those of the institutions to which he belongs.

 

Jemy Gatdula is the dean of the Institute of Law of the University of Asia and the Pacific and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence. He read international law at the University of Cambridge.

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

Life cycle theory: Savings behavior of baby boomers

How much should a person save for his retirement? In 1976, Milton Friedman was awarded the Nobel Prize in economic science and one of his contributions was his theory that permanent income and not year-to-year income is the determining factor when assessing total consumption outlay. The present value of one’s future labor income is called human capital. Permanent income then is the constant level of consumption spending that has a present value equal to one’s human capital.

By understanding this model, one can consider possible approaches in computing how much to save for retirement. The first is to aim for a target replacement rate of preretirement income. This involves computing the amount you need to have accumulated in your personal retirement account when you reach retirement age. Then compute the annual amount of savings needed to reach that future value. The problem with this approach is it does not lead to your having the same consumption level after retirement as you did during your working years.

Here is where Friedman’s model comes into play. It is possible, in theory, to save as much so that one can spend the same amount on consumption before and after retiring. By computing for permanent income, one’s quality of life is preserved. Once a person can compute the present value of one’s lifetime resources, compute the annual constant level of consumption spending up to the expected life span.

All of these are simplification that gets muddled up when we consider inflation and the volatility of interest rates over time, especially over one’s lifetime. Likewise, the model should include initial wealth (representing inheritance) and desired bequests (for the next generation). Just the same, it is a framework that should guide any individual with a long-term view of life.

Complementing this is a life cycle hypothesis of household savings pioneered by Franco Modigliani, Nobel Prize winner in 1985. The simple model shows young people spending more than their incomes as they borrow for investment in education or their houses. The middle age is the time to accumulate money for retirement. And in the old age, one eats into savings as spending is generally higher than earnings. Assets can also be disposed of to support old age requirements and as one downsizes.

In a recent article by The Economist, the baby boomers — those born between 1946 and 1964 — have been cited as today’s generation that are either retired or retiring. Surveys show that this generation appears to own 52% of the net wealth in the US, even as they comprise 20% of the population. Not all are rich, but in the aggregate, they have amassed wealth. Because of medical and scientific advances, many remain strong and healthy. They are a big economic group with substantive purchasing power.

The Economist reports that the boomers are generally endowed and have saved enough, at least in developed countries like the US, Italy, Japan, England, Australia and Canada. For this reason, economists following the “life cycle theory” expect the boomers to shift from accumulating wealth to spending it. But the evidence says otherwise. Academics point to the “wealth decumulation puzzle,” where oldies spend less than what the theory predicts.

The data show retired households saving more today than in past years. The savings rate of people over 65 are in fact rising in the US, Canada, South Korea, Britain and Australia. Boomers are observed to be more miserly; hoarders, not bent on splurges.

Perhaps, improving health allows boomers to delay retirement and accumulate more wealth. The Economist, however, cites three phenomena affecting the observed puzzle: “bequest motives,” the pandemic and worries about care.

While boomers feel lucky about their fortune, they fear for the next generation who face more economic struggles. The response is they aim to leave more to pass on to their children as inheritance. The pandemic changed spending patterns and while the world has largely recovered, boomers are still spending less. With longer life expectations, the confidence that the savings will be enough with age is lower, especially with challenges of possible healthcare needs. This is called longevity risk or the risk of outliving your savings.

These studies are in developed countries with well-established pension and social security plans. In the Philippines, one wonders if the boomers have enough retirement savings at all. How much is the SSS benefit? Maintaining a comfortable lifestyle will likely be difficult for the many who have not planned for this life stage. Healthcare can be very expensive without health insurance.

With the higher likelihood that Filipino boomers have less savings than their developed country counterparts, the “bequest motive” and longevity risk add more pressure. Thus, the next generation must beware. Calculating one’s permanent income, no matter how rough, needs to be an exercise for all. Life spans are now generally longer, and young people must start early in thinking about their savings and retirement preparation.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

Benel Dela Paz Lagua was previously EVP and chief development officer at the Development Bank of the Philippines.  He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.

PSEi member stocks performed — June 20, 2024

Here’s a quick glance at how PSEi stocks fared on Thursday, June 20, 2024.


PSEi extends slide on weak economic outlook

BW FILE PHOTO

THE MAIN INDEX ended lower for the seventh straight session on Thursday after a global think tank said the Philippine economy is expected to grow slower than the government’s targets from 2024 to 2028.

The Philippine Stock Exchange index (PSEi) fell by 0.33% or 21.47 points to end at 6,344.56 on Thursday, while the broader all shares index rose by 0.05% or 1.85 points to close at 3,440.31.

“Economist Impact Asia Pacific’s projection that the Philippine economy will grow below the government’s target until 2028 weighed on sentiment,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

Andrew J. Staples, Asia-Pacific head of thought leadership and public policy at global think tank the Economist Impact, on Wednesday said they expect the Philippine economy to expand by 5.4% this year, below the government’s 6-7% gross domestic product (GDP) growth target for the year. It will also be a tad lower than the revised 5.5% GDP expansion in 2023.

For 2025, Mr. Staples said Philippine GDP is expected to expand by 6.4%, slightly lower than the government’s 6.5-7.5% target. He expects GDP growth to ease to 5.6% in 2026 and 5.9% in 2027 and 2028, also below the 6.5-8% goal through 2028.

“The local stock market lost its early momentum, ending in negative territory for the seventh consecutive session. The lack of catalysts to boost investor sentiment contributed to the benchmark index’s decline,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local bourse dropped amid a lack of fresh leads to drive the market upwards… Investors are seeking clear direction on interest rates amid mixed signals, making them wait for the next policy meeting despite expectations that the BSP (Bangko Sentral ng Pilipinas) won’t cut rates,” Ms. Alviar added.

The BSP will next meet to review policy on June 27.

The Monetary Board has kept its benchmark rate steady at a 17-year high of 6.5% since October 2023 following increases worth 450 basis points to bring down inflation.

Majority of sectoral indices closed lower on Thursday. Services dropped by 0.68% or 13.34 points to 1,945.59; financials declined by 0.68% or 13.33 points to 1,921.53; property retreated by 0.48% or 11.93 points to 2,426.32; and industrials went down by 0.3% or 27.48 points to 8,939.10.

Meanwhile, mining and oil rose by 1.6% or 140.48 points to 8,889.54, and holding firms increased by 0.37% or 21.19 points to 5,619.52.

Value turnover dropped to P3.94 billion on Thursday with 328.28 million shares changing hands from the P4.07 billion with 363.03 million issues traded on Wednesday.

Advancers beat decliners, 92 against 86, while 58 names closed unchanged.

Net foreign selling declined to P552.19 million on Thursday from P594.67 million on Wednesday. — R.M.D. Ochave