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Making HR a profit center

In general, the human resources (HR) department is a cost center. How do we correct that perception and convert it into a profit center? — Moon River.

THE first thing to do is to define and measure every important aspect of HR. If you can’t count the numbers, then it follows that you can’t manage HR. It’s a derivative of the famous line of Peter Drucker (1909-2005) who said: “You can’t manage what you can’t measure.” But first, you’ll have to focus on what’s important to your top management and the whole organization.

Unknown to many, HR’s basic role is to help the organization increase its profitability and sustainability. That’s one reason why people hate HR for many of its ills, like the perpetuation of “administrivia,” for example. Many don’t realize that HR can do more than that.

This can be done with the help of corporate-wide programs to improve labor productivity, enhance the quality of work life, energize employees through engagement, and reduce workplace tensions, among others. You can only do that if you know how to collect and measure the baseline issues and make improvements.

The trouble, however, is that HR people give little evidence to back their claims, other than giving motherhood statements and being satisfied with imaginary examples. More often than not, this happens because of HR’s inability to correlate their programs using the language of business.

If there are measurements, they usually measure the results of morale surveys, performance appraisals, and even absenteeism and tardiness rates. HR will always be happy with issuing year-to-year reports on how they reduced the attrition rate, but in terms of creating and emphasizing value out of cost reduction, for instance — less so.

HR can’t do this alone. It needs the active cooperation of line leaders, supervisors, managers, and other stakeholders.

COST-BENEFIT ANALYSIS
One common example of HR’s problem is its helplessness in declining many requests to hire additional employees for certain departments, like those in operations headed by someone with a difficult personality. HR tends to simply co-approve the request for additional manpower without presenting alternative options like hiring or promoting from within or introducing multitasking.

If other departments are using facts and figures to prove their performance, HR must do the same, starting with a freeze-hire policy. For all requests to hire replacements for resigned people and movement from within, HR must assist the departments in coming out with viable solutions other than hiring additional manpower.

One example is when HR spearheads labor productivity improvement. This could be an issue between HR and other departments that wish to build empires, to the detriment of the organization. This happens all the time when operations or production demand that they know the business better than HR.

Therefore, their request to hire additional manpower must be approved by HR before it reaches the chief executive officer (CEO). If HR is not serious about doing its job or would like to play politics, it would be all too easy to buckle down under the pressure. To correct this, let’s examine the difference between American and Japanese managers in improving labor productivity.

Here’s an example: A car manufacturer produces 100 cars a month with 10 workers. When pressured by the CEO to improve labor productivity by 20%, what options would American and Japanese managers pursue? The Americans would tend to terminate two workers, leaving only eight people producing the same 100 cars a month.

On the other hand, the Japanese approach would be to retain the same number of workers, and task them with producing 120 units a month, instead of 100 units. There should be no terminations at all costs. You can readily secure cooperation when you assure people of job security.

Which one would you choose?

LEAN HIRING
Once again, don’t forget to measure HR. Start today by knowing the baseline numbers. Look at the key variables. And prepare to be shocked by the cost. For example, let’s look at the recruitment process. Answer the following questions: What’s the average hiring cycle for new employees? For every day of delay, how much money is being lost by the organization?

How do you evaluate job applicants? What’s the first step in the evaluation process? What documents do you need from applicants before you start an online interview? How many interviewers do you need before you can come out with a shortlist of the top two candidates? Overall, how many man-hours do you need before the onboarding of successful candidates?

In general, what are the stumbling blocks in your evaluation process? And how do you remove those blocks to ensure a smooth transition? If you’re spending more than five working days before onboarding, then the presumption is that you don’t know about Lean Hiring, or simply, you don’t care.

 

Consult with Rey Elbo on Facebook, LinkedIn, and Twitter, or send your workplace questions to elbonomics@gmail.com or via https://reyelbo.com. Anonymity is guaranteed.

Trolling feels like a new phenomenon. But it existed long before the internet

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Trolling on the internet looks and feels like a new phenomenon. Abuse can rain down on a target instantly and from everywhere, in quantities never before seen. But as David Rudrum’s engaging book on the history of trolling shows, the desire to hurt or distract another with words goes back a very long way. The internet is a powerful new medium, but ancient messages travel on it.

The legendary first satirist Archilochus is said to have wandered between the cities of pre-classical Greece, asking for food and accommodation. If a king was hospitable, the poet would sing a song of praise about his virtues. If he was turned away, Archilochus would go to the next place and sing a song so abusive of the spurning king that he is supposed to have actually killed at least one of his victims.

This is just-so story territory, somewhere in Greece in the first half of the 7th century BCE. Did anyone really die of shame because of Archilochus’s barbed words? I rather hope not, but the mythic power of the story rings down the ages. The Old English word for “story” was “spell” (hence “gospel,” which is OE gōd spel, good story). It only took on the sense of magic spell in the early Modern period.

Trolling aspires to the status of magic spell, hoping to silence an opponent through shame and ridicule, rather than cogent argument. Usually it is no more than noisy and irritating — but sometimes it takes flight, and a troll can change the world. It is likely to be vexatious, but if deployed in a just cause, it can sometimes be a good thing. As with anything that claims to be “just a joke,” context matters.

SLEDGING IN BEOWULF
Rudrum brings order to this melange of rhetoric, wit and malice with a handy working definition of trolling: “Trolling is to defame, insult, or humiliate an opponent in public, or else to make a public statement of views that are not sincerely held, but aim instead to cause controversy, or to be provocative and vexatious, sometimes with legal consequences.”

This is a lumpy and inclusive definition, the best kind because it provides a way into the trolling text-acts rather than an endless (and to my mind arid) line-drawing between items that are either in or out.

Trolling is a human phenomenon. Like nearly everything in cultural theory, from tragedy to deconstruction, it is really a fuzzy category. Thus, Rudrum sensibly suggests no single ingredient of his definition is needed to label a text trolling, as long as enough of the others are apparent.

He then, rather brilliantly, uses words from his lumpy definition for the titles of his seven chapters. He also proceeds chronologically in his tour through trolling in literature, starting with Unferth, the abusive Dane in Hrothgar’s Hall, who engages Beowulf in a combat of words called “flyting.”

This ritual of insults is immediately recognizable to Australians as sledging, the unsubtle art of trying to get your opponent to crack under insult, as a substitute or supplement for physical battle.

Unferth’s barb about Beowulf not even being able to win a swimming race with a mate would scarcely make the grade in the Australian cricket team, but Beowulf has to take the challenge seriously. Heroes cannot afford to lose face.

PATRIARCHAL UTTERANCES
Trolling, like satire and many elements of humor, is a shaming mechanism, more about destroying self-respect than about literal meaning. As Rudrum’s examples overwhelmingly indicate, it is a predominantly male-coded form of agonistic rhetoric. Women are often the targets of trolling, as are other disempowered groups, and rarely the provocateurs.

Like satire, trolling works with the CAD (Contempt, Anger, Disgust) triad of emotions, and the social license to express these publicly belongs historically to the patriarchs. This is a deep and troubling bias Rudrum gestures towards regularly, without making it a core focus of his critique.

His focus is on how it has worked in the centuries before the digital age, as a prior exploration to the question of how, or whether, it should work.

Trolling is a peculiarly vandalistic kind of public utterance. It provokes a target to “lose it,” and only by a precisely calibrated response can you hope to defuse or deflect it. It causes offence irresponsibly and perhaps there should be a law against it.

On balance, this would be both impossible and not always a good idea. Rudrum’s literary trolls are instructive — gadflies and polemicists who annoyed the pompous and sometimes even brought change to corrupt regimes. His main examples are Shakespeare, Jonathan Swift, Martin Luther, Oscar Wilde, Wyndham Lewis and Emile Zola.

The serial offender Lewis can descend into oblivion for all I care, but who would wish Wilde’s ironic trolling aphorisms, such as this one, undone?

“I do not approve of anything that tampers with natural ignorance. Ignorance is like a delicate exotic fruit; touch it and the bloom is gone. The whole theory of modern education is radically unsound. Fortunately in England, at any rate, education produces no effect whatsoever. If it did, it would prove a serious danger to the upper classes, and probably lead to acts of violence in Grosvenor Square.”

Even the most earnest teacher can afford to worry about the implications of Lady Bracknell’s brutal sledge. And which of us can resist the furtive joy of witnessing a good bit of trolling, at least when it happens to someone else?

More seriously, Swift’s “A Modest Proposal” and Zola’s “J’Accuse” are justly defended as a satire and a polemic. They maliciously attack and belittle corrupt and complacent establishments in 18th century Ireland and 19th century France with potent moral justification. When power refuses to listen to truth, speaking insolence instead certainly feels good and can, when the circumstances so conspire, even do good.

‘THE FARTING DONKEY AT ROME’
But it is the image of the 16th century German theologian Martin Luther as troll that is most arresting. By trolling the Catholic church through the new medium of print, in German rather than the learned language of Latin, Luther drove on one of the greatest revolutions in European history, namely the Protestant reformation. He was profuse, abusive, and very scatological in his writings. The Ninety Five theses, which he pinned on the church door in Wittenberg, are an angry listicle of the problems attendant on turning a religion based in poverty and humility into a multinational business.

His reformation surged through Europe because people “got” the basic criticism, much as people “get” a joke. Others built the detailed theological architecture of Protestantism, but Luther went viral with a New Testament he translated in 10 hot months and descriptions of the pope as “the Farting Donkey at Rome.”

There are two messages here for our present moment in the history of trolling.

One is that the message is most volatile when the medium is new and uncontrolled by established conventions. Flyting competitions and sledging in sport and politics are contained by understood rituals of rhetorical combat. “Because I want to do you slowly,” Paul Keating once said to John Hewson across the despatch box in 1992, before going on to win the 1993 election.

It is when the rules of the game are fluid that big effects, for good and ill, can explode uncontrollably, leaving targets confused about how to respond, if at all. Should you just refuse to feed the trolls?

Donald Trump’s use of Twitter’s speed and ubiquity last decade to disrupt the mass-media conventions of politics is another trolling revolution, with consequences that are still playing out.

And this leads to the second message, the one we will always have with us even when we have worked out how to live with (anti-)social media. As Rudrum puts it: “Someone who trolls may be ‘just trolling,’ but they’re not ‘just a troll’ if they can successfully portray themselves as trolling in a noble cause.”

Recently I wrote about why I did not think that the benefits of labeling satire online outweighed the costs. It’s impractical — people can avoid labels in bad faith. And it treats the public as helplessly in need of protection by a group (or even an algorithm) of guardians who protect us from making mistakes when presented with satire, irony, sarcasm, and the rest.

If an algorithm for trolling could be devised, I would briefly be tempted to turn it on. On reflection, I’d resist the mechanical fix. It probably wouldn’t work reliably anyway. If it did, however, that might one day be worse.

If the history of censorship is anything to go by, the definition of trolling will expand to include a lot that is better described as robust critique.

Zola was a great novelist who chronicled late 19th century French society in rich detail. In “J’Accuse,” by contrast, he deliberately and disruptively used newspapers to break the law. His brief and explosive foray into journalism exposed the cover-up of the corrupt military trial and imprisonment of Alfred Dreyfus, wrongly fitted up for treason because he was Jewish. We should, I think, be prepared to put up with a fair bit of malicious nonsense to avoid having this kind provocation silenced as “trolling” before it can reach the public.

WHAT MAKE OF THIS?
So what does this tour through the literature of the literature of provocation tell you about the raucous world we inhabit? That provocation, when harnessed to a coherent cause, can change the world (as with Luther or Zola), or at least irritate and expose the self-flattering exploiters (as with Swift and Wilde).

However, when not anchored to a clear ethical cause, trolling is a dangerous weapon for bullshit, in the late philosopher Harry Frankfurt’s technical sense. Bullshitters may or may not lie deliberately. The crucial thing is that they speak recklessly, whatever suits their purpose. They don’t care if it’s true or not as long as it has the effect they are after. This is the essence of trolling and a worrying phenomenon in the “post-truth” world.

In this sense, Trump seems to be the troll-in-chief, closely followed in the rankings by Elon Musk, the first buddy. To be fair, politicians and other public figures, abetted by their media and marketing departments, have been chipping away at the convention that they should tell a direct version of the truth for a very long time, but public discourse by trolling (turn Gaza into a beach resort, anyone?) is a step change, perhaps a revolution.

Like Luther’s pamphlets, this depends on a technological change in the speed and ubiquity of communication people have not digested yet.

Great things, but also much chaos flowed from the Reformation (and if you count the consequences of the Protestant missionary effort in later centuries, a whole lot of chaos). My guess is that the present assault on received views and standards about the way government should work will be less consequential, but I have been wrong about a few things lately.

All I have to recommend in the present time of instant and near universal trolling is the thin reed of our personal and civic responsibility as readers.

If it smells of cruelty, malice, or bullshit, doubt it. If it perfectly fits your prejudices, pause and reflect. All the systems and platforms tend to bend to power and wealth. They cannot be trusted to serve democratic interests alone. So, the mere citizen’s least worst protection is, as it has always been, caveat lector: let the reader beware.

 

Robert Phiddian is a professor of English at Flinders University. He receives funding from the ARC for the Cartoon Nation Discovery Project.

Figaro Coffee Group rebrands as Figaro Culinary Group to expand offerings

FIGARO COFFEE FACEBOOK PAGE

FIGARO COFFEE Group, Inc. is changing its name to Figaro Culinary Group, Inc. as it expands its brand identity.

The Securities and Exchange Commission (SEC) approved the name change on Feb. 18, Figaro said in a regulatory filing on Thursday.

“The board has determined that it is in the best interest of the company to change its corporate name to better reflect its strategic vision and broaden its brand identity. The new name will outline the company’s commitment to quality and innovation as it expands its offerings to include a wide range of culinary products and experiences,” Figaro said.

Figaro’s board approved the name change in October last year. Despite the rebranding, the company will continue using the stock symbol ‘FCG.’

For the first half of its fiscal year ending in June, Figaro recorded a 15% increase in net profit to P325.53 million from P282.94 million a year earlier.

Revenue rose by 2.5% to P2.84 billion, while operating expenses declined by 16.3% to P777.85 million.

As of end-2024, Figaro operated 216 stores nationwide, including 142 under the Angel’s Pizza brand, 63 Figaro Coffee locations, eight Tien Ma’s branches, two Café Portofino outlets, and one Koobideh Kebabs store.

On Thursday, Figaro shares gained 2.67% or two centavos to close at 77 centavos per share. — Revin Mikhael D. Ochave

Testing change for better results

Organizations are under constant churn today from new technology, changing customer expectations or competitive pressures. To succeed and adapt to these changes, one approach is to implement A/B testing. The use of A/B testing is most commonly associated with marketing and product development, but it is also a useful technique for assessing incremental changes across virtually any field in a controlled, data-driven way. This enables organizations to make rational choices, mitigate risks, and increase the likelihood of a successful transformation.

A/B testing at a high level is simply a test that compares two variations of a change to see which one produces a better result. Within the business context, this may include trying various management styles, forms of communication, or implementing changes in workflows.

Consider a company implementing a new software system. They could compare two onboarding practices — one focused on hands-on training, and the other providing a self-paced tutorial. By measuring engagement, error rates, and user feedback, they can know which approach drives better adoption and efficiency.

The benefit of A/B testing for managing change is that it decreases uncertainty. Employees are usually scared of the unknown and will question everything unless it can guarantee that their life will be easier. Instead of pushing for drastic changes overnight, organizations can make small, actionable changes that can be put into practice. Say a company is mulling a new policy about flexible or remote work, it can conduct pilots of varying extents of flexibility with small groups. These limited pilots can produce actual data on employee satisfaction, productivity and cooperation, contributing to refining the policy ahead of broader adoption.

Beyond easing resistance, A/B testing nurtures a culture of learning and adaptability. Many organizations struggle with change because they treat it as a rigid, one-and-done process. By embracing A/B testing, businesses empower employees to engage, provide feedback, and contribute to improvements. This approach not only makes change initiatives more effective but also boosts morale, as employees feel they have a voice in shaping company policies.

A second useful application for A/B testing is in how leaders communicate. Good change management requires open communication because employees look to leaders for guidance, clarity, and reassurance in turbulent times. Instead of making assumptions on what type of messaging might work better, organizations can experiment with different formats. One might focus on detailed explanations with Q&As and another on short, high-impact messages with surveys. How employees respond to these different approaches enables leaders to hone their communication strategies to improve engagement and trust.

Beyond internal mechanics, A/B testing enables organizations to test customer responses to external changes. Let’s say a retail brand wants to switch to sustainable packaging. Rather than rolling them out company-wide, they could test various packaging styles in targeted markets first. They can use information gathered via the test to make a data-driven decision that considers the interests of both the business and its customers.

While A/B testing in change management can be useful, there are also certain challenges associated with it. A common mistake is overemphasizing short-term results. There are changes that might not yield immediate positive results, such as those related to the culture of a workplace or long-term business strategies, but you can still implement them if they seem like a step in the right direction. Organizations must select their performance metrics carefully to ensure they capture both short-term response drivers and long-term impacts.

Another challenge is ensuring that test groups represent the entire organization. If testing is conducted only among highly engaged employees, the findings may not apply to everyone. Proper planning, randomized sampling, and diverse test groups are essential to obtaining reliable insights.

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

A/B testing should also be used to ensure continual improvement in the change management process. Change is not a one-time event — it is a continual process. Thus, an A/B test should be viewed as a means towards iterative learning over a final decision. Iterating constantly, testing, refining and adapting ensures that your business develops more resilience and agility, making one be better prepared when the circumstances change again.

In the end, the success or failure of any change is owned by the people involved — the better these changes are understood and implemented, the more they are accepted. During the period of experimentation where you A/B test, you can include adequate, real evidence-based insights, which can result in developing better channels for communication to reach the target audience. Organizations that implement this methodology are more likely to make data-informed decisions, overcome resistance, and build an adaptive culture. As change accelerates, this capacity for iteration before committing to large-scale transformations will be a growing source of competitive advantage for organizations seeking sustained success.

 

Reynaldo C. Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He is the chair of the Digital Transformation: IT Governance Committee of FINEX Academy. He teaches strategic management and digital transformation in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

How PSEi member stocks performed — February 20, 2025

Here’s a quick glance at how PSEi stocks fared on Thursday, February 20, 2025.


BPOs see competitiveness boost from CREATE MORE

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THE Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act is expected to enhance the competitiveness of the information technology and business process management (IT-BPM) industry, an industry association said.

“This landmark reform directly addresses key industry concerns,” according to an IT and Business Process Association of the Philippines (IBPAP) statement issued Thursday, in response to the signing of the law’s implementing rules and regulations (IRR).

In particular, the industry group said that the law provides “a long-term legal basis for work-from-home (WFH) and hybrid work arrangements for registered business enterprises (RBEs) located in economic zones (ecozones) and freeports.”

It added that CREATE MORE and its IRR will help address ease of doing business challenges encountered by RBEs following the passage of CREATE MORE’s precursor, the CREATE Law.

“With CREATE MORE, the IBPAP expects a more stable, cost-efficient, and investor-friendly ecosystem through more streamlined and clearer regulations that can reduce administrative burdens on IT-BPM RBEs,” it said.

Earlier this week, Secretary Frederick D. Go, the Special Assistant to the President for Investment and Economic Affairs said CREATE MORE allows investment promotion agencies (IPAs) that oversee ecozones to allow up to 50% WFH for their locators.

“IBPAP should be very happy with that outcome. And I have to tell you that when CREATE MORE was being drafted, there were many stakeholders who contributed their comments to the law. I would say that IBPAP was definitely one of the more active associations,” he added.

Prior to CREATE MORE, RBEs overseen by IPAs administering ecozones or freeports, such as the Philippine Economic Zone Authority (PEZA), were not entitled to incentives if their project or activity is conducted outside the geographical boundaries of the ecozone.

This has resulted in the transfer of some of the IT locators of PEZA to the Board of Investments (BoI), which allows 100% work flexibility.

“From a zero WFH baseline, I am sure our IT locators will be happy with the 50% allowable WFH arrangement under the CREATE MORE,” PEZA Director General Tereso O. Panga told BusinessWorld.

“The IT developers will benefit as well from this new policy given the expected increase in the take-up of office space by new and expanding PEZA RBEs,” he added. — Justine Irish D. Tabile

Building permit approvals fall ahead of rate easing

PHILSTAR FILE PHOTO

APPROVED building permits declined 10.8% in December, a turnaround from the 1% growth posted a year earlier, the Philippine Statistics Authority (PSA) reported.

The PSA, citing preliminary data, said building projects covered by the permits numbered 10,809 in December, down from 12,116 a year earlier.

The November growth rate had been 9.3%.

Building projects in December covered a floor area of 2.63 million square meters, down 20.7% from a year earlier.

During the period, construction projects represented by the permits were valued at P32.94 billion, down 11% from a year earlier.

“GlobalSource Partners Country Analyst and former Bangko Sentral Deputy Governor Diwa C. Guinigundo said a housing glut may help explain the building slowdown.

The Bangko Sentral ng Pilipinas (BSP) Residential Real Estate Price Index (RREPI) declined 2.3% during the three months to September period, a reversal from the 2.7% growth a quarter earlier.

This marked the first decline for the RREPI since the 9.4% contraction in the second quarter of 2021.

“There is a possible glut in the market especially in the high end of the retail residential sector,” Mr. Guinigundo said via Viber.

He also added that high lending rates may be a factor behind the weak building activity.

Oikonomia Advisory and Research, Inc. economist Reinielle Matt M. Erece said weakness in building activity could indicate that project proponents are pausing until interest rate cuts materialize in 2025.

“It is in their best interest to time their capital raising and expenditures correctly to take advantage of relatively lower borrowing costs,” he said via e-mail.

Since August, the BSP cut interest rates by 25 basis points at each of its three subsequent meetings.

Permits for residential projects, which accounted for 62.2% of the total, fell 15.7% to 6,728.

These projects were valued at P13.62 billion, compared to P14.86 billion a year earlier.

Single homes accounted for 91.2% of the residential category with approved permits contracting 7.9% to 6,138.

Applications for apartment buildings declined 57.8% to 494 while applications for duplex or quadruplex homes fell 32.1% to 89.

Nonresidential projects were steady year on year at 2,589 permits, accounting for 24% of the total.

Nonresidential permits were valued at P16.26 billion, down 9.7% from a year earlier. This accounted for 24% of the total.

Commercial construction applications accounted for 67.3% of nonresidential projects, up 0.4% to 2,165.

Institutional permits rose 1.8% to 461 while industrial permits fell 7.1% to 222. Alteration and repair permits amounted to 837, down 7.9% year on year and were valued at P1.79 billion.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved building projects, accounting for 22.6% of the total, with 2,441 construction projects, followed by the Central Visayas (1,239 permits) and Central Luzon (1,143 permits).

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials nationwide. — Kenneth H. Hernandez

Durian exporter ships P8.2-M order to China

BW FILE PHOTO/

DAVAO CITY company Maylong Enterprises Corp. completed its first frozen durian shipment to China valued at P8.2 million.

In a statement on Thursday, the Department of Agriculture (DA) said the shipment consisted of  1,050 boxes of frozen durian meat and 300 boxes of durian paste, which arrived in Guangzhou on Feb. 18.

Maylong was the first Philippine enterprise to be approved by the General Administration of Customs of the People’s Republic of China to export frozen durian meat and paste.

“Our frozen durian represents the hopes and dreams of countless farmers,” DA Region XI Executive Director Macario Gonzaga said.

Maylong Chief Operating Officer May Li said that the company commits to helping Davao’s durian growers access international markets.

“Our goal is (to ensure) that Philippine durian earns the recognition it truly deserves,” she added.

The Philippines started exporting fresh durian to China in April 2023, following the signing of a bilateral agreement governing shipments of fresh durian to China. — Justine Irish D. Tabile

Bunker traders ordered to comply with sulfur standards for marine fuel

STOCK PHOTO | Image by iliastefanidis30 from Pixabay

THE Department of Energy (DoE) said it is requiring traders of marine fuel, known as bunker, to comply with fuel quality standards for sulfur content.

In a department circular dated Jan. 28, the DoE said sulfur content in residual marine fuel may not exceed 0.50% by mass. This cap applies to fuel for domestic use.

Residual marine fuel is a petroleum fuel containing residue of distillation processes that meet the international marine fuel limits on the flash point of fuels.

Traders or marine distillate fuels were instructed to refer to the Philippine National Standard (PNS) for automotive diesel oil and PNS for industrial diesel oil at the time of application.

The guidelines cover all downstream oil industry participants engaged in bunker trading.

“There is a global thrust towards the harmonization of fuel quality standard specifications and vehicle technology and emission standards, with due regard to the environment, vehicle performance, health and safety and for easier global/international trade,” the DoE said. — Sheldeen Joy Talavera

DBM, DepEd sign joint circular on teacher career progression

PHILIPPINE STAR/ WALTER BOLLOZOS

THE Department of Budget and Management (DBM) and the Department of Education (DepEd) signed a joint memorandum circular to guide the career progression of teachers and school heads.

In a statement on Wednesday, the DBM said the joint circular for the “modified position classification and compensation scheme and system of career progression for teachers and school heads in the public basic education system” was signed during the 2025 Human Resource and Organizational Development Convention on Feb. 19.

Secretary Amenah F. Pangandaman was joined by the Senate Committee on Basic Education Chairman, Senator Sherwin T. Gatchalian, and Education Secretary Juan Edgardo M. Angara.

The DBM said the circular builds on Executive Order No. 174, establishing the expanded career progression system for public school teachers.

Last year, President Ferdinand R. Marcos, Jr. signed the implementing rules and regulations of EO 174 or the Expanded Career Progression system.

It updates the position classification and compensation scheme to add the new positions of Teacher IV to VII and Master Teacher V, the DBM said.

The DBM said this “defines new reclassification guidelines for teachers, including Senior High School teachers and school principals.” — Aubrey Rose A. Inosante

Gov’t agencies post 78% Jan. cash utilization rate

BW FILE PHOTO

THE cash utilization rate posted by government agencies was 78% in January, according to the Department of Budget and Management (DBM).

The National Government, local governments, and government-owned and –controlled corporations (GOCCs) used P233.80 billion worth of notices of cash allocation (NCAs) issued as of the end of January.

Meanwhile, unused NCAs amounted to P66.87 billion, against the P300.67 billion released during the period.

The January utilization rate was ahead of the year-earlier pace of 70%, the DBM said.

In January, the utilization rate of departments was 70% or P143.10 billion of its P202.99 billion in allocations, leaving P59.89 billion unused.

NCAs are a quarterly disbursement authority that the DBM issues to agencies, a requirement to withdraw funds from the Treasury to support their spending needs.

The Office of the Vice-President posted a 100% utilization rate at the end of January, followed by the Department of Foreign Affairs at 95% and the Department of Budget and Management (DBM) at 91%.

Budgetary Support to GOCCs was 100% utilized, with P4.39 billion of funds released.

The departments of Energy and Migrant Workers both posted an 89% release rate in January.

Meanwhile, the Office of the Ombudsman (28%) and the Commission on Elections (32%) posted the lowest utilization rates.

The DBM has yet to release the full-year cash utilization rate by government agencies and GOCCs for 2024. — Aubrey Rose A. Inosante

AI deepfakes a concern for PHL companies

REUTERS

PHILIPPINE companies must upgrade detection and infiltration methods to protect consumers against artificial intelligence-(AI) generated deepfakes, according to mobile app security solutions provider Appdome.

“The reality is the line between what’s real and not real is not that bright anymore, and so it’s very hard for the average consumer to know when something’s fake versus when it’s not,” Tom Tovar, co-creator and CEO of Appdome, said in an interview on Money Talks with Cathy Yang on One News on Feb. 20.

“I really think the responsibility is on the brands and the people who provide the applications to consumers to step forward and put (detection technology) in the application to keep users safe (by detecting) those methods of infiltration, manipulation, and substitution that AI needs to get fake content and fake images into your user experience.”

According to Mr. Tovar, the Philippines is considered a “mobile-first” economy, with its average use of mobile apps higher than the global average.

About 54.7% of Filipino consumers said they use mobile applications more than the web, according to Appdome’s Consumer Survey of Mobile App Security.

However, high dependency on mobile apps makes it vulnerable AI-driven fraud, including deepfakes, Mr. Tovar said.

“Deepfakes are one of the top attack vectors that have emerged in the last two to three months,” he added, noting that mobile-driven countries must prioritize authentication and user login.

With AI, deepfakes have evolved more sophisticated manipulation techniques such as face, image, and voice cloning. This also increases the risk of disinformation ahead of this year’s midterm elections.

“You might think you’re getting a call from your government official when reality, it’s not (them). It might sound like them, it might appear like them,” Mr. Tovar said. “So, AI has the potential of also being a mechanism for disinformation as much as it is a wonder to use in a legitimate way.” — Beatriz Marie D. Cruz