Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 2013

Inflation uptick may delay rate cuts

A VENDOR sells meat at a public market in Manila, March 5. Inflation data for March is scheduled to be released on April 5. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

A POTENTIAL uptick in inflation over the next few months could prompt the Bangko Sentral ng Pilipinas (BSP) to delay its rate easing cycle, analysts said.

“This could keep the BSP from cutting rates as anticipated by market players. If inflation persists, they might not cut at all,” Jonathan L. Ravelas, senior adviser at professional service firm Reyes Tacandong & Co., said in a Viber message.

BSP Governor Eli M. Remolona, Jr. last week said that inflation could have quickened further to 3.9% in March.

Inflation accelerated to 3.4% in February, the first time it quickened in five months. If the headline print picks up in March, this would mark the second straight month that inflation accelerated.

Inflation data for March is scheduled to be released on April 5.

The BSP earlier said that inflation could temporarily accelerate above the 2-4% target range in the second quarter due to the El Niño dry spell and positive base effects.

“The uptrend in inflation will definitely delay the decision to cut rates since inflation is the key variable that BSP is monitoring to guide its decision regarding policy rates,” University of Asia and the Pacific (UA&P) Senior Economist Cid L. Terosa said in an e-mail.

The Monetary Board kept its benchmark rate steady at a near 17-year high of 6.5% for a third straight meeting in February. From May 2022 to October 2023, the BSP has raised borrowing costs by 450 basis points (bps).

The Monetary Board moved its policy meeting, originally scheduled for April 4, to April 8, citing the timing of key data releases such as March inflation.

Finance Secretary Ralph G. Recto last week said that while inflation may remain elevated in the coming months, it will eventually return to within the 2-4% target.

Mr. Recto said he expects March inflation to settle at around 3.9%, similar to Mr. Remolona’s estimate.

“But, I think within the year, it’s still going to be within 2-4%. It’s going to be a bumpy road, but I think within the band. Even if it overshoots, it will return to target, more or less,” he said in mixed English and Filipino at the sidelines of an event last week.

This year, the BSP expects inflation to average 3.6%.

Mr. Ravelas said the central bank may begin to cut rates by the second semester.

“We will see after June if we can cut rates. But I am looking at the end of the third quarter as the first cut, if any,” he said.

The BSP is seen to begin slashing rates in sync with the US Federal Reserve, which is widely expected to start its easing cycle by June.

The FOMC (Federal Open Market Committee) stood pat at its meeting last week, keeping its fed funds steady at the 5.25-5.5% range. From March 2022 to July 2023, the Fed increased rates by a total of 525 bps.

Mr. Remolona earlier said that while the Monetary Board closely monitors the Fed, its own policy decisions are not dependent on the US central bank. He also said the BSP will likely begin cutting “in the next few policy meetings.”

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco likewise said that the BSP does not necessarily need to move in step with the Fed.

“I don’t think that the BSP needs to mirror the Fed, but when the latter does start cutting rates, it will give the former more confidence to do so, as cutting rates in such an environment will have less of an impact on the peso’s stability,” he said in an e-mail.

UA&P’s Mr. Terosa said the BSP is likely to mirror the Fed in terms of easing.

“While it will be economically advantageous for the country to mirror the Fed in terms of easing, I believe that there is leeway for the country to make decisions on rate cuts ahead of Fed depending on marginal changes in the inflation rate,” he said.

“Changes in the inflation rate that do not drastically move the economy away from its target range can give the country some room to cut rates ahead of the Fed. Given past decisions on policy rates, however, I think the BSP will mirror the Fed in terms of easing,” he added.

Bank of America (BofA) Global Research said that if the Fed cuts rates as expected in June, the BSP will likely begin rate cuts “around the same time or in the second half of 2024.”

However, if the Fed delays its first rate cut, this could also affect the BSP’s own policy easing.

“If the Fed’s first cut is delayed beyond June, the marginal impact will likely be more notable for a few regional central banks. The People’s Bank of China, Bank Indonesia and BSP might postpone rate cuts to safeguard foreign exchange stability,” it said in a report dated March 22.

Both Pantheon Macroeconomics and BofA expect the BSP to reduce borrowing costs by a total of 100 bps this year. If realized, this would bring the benchmark rate to 5.5% by year end.

New taxes ‘last resort’ — Recto

THE Bureau of Internal Revenue is encouraging taxpayers to file their tax returns ahead of the April 15 deadline.— PHILIPPINE STAR/ EDD GUMBAN

THE Finance department may not introduce any new tax proposals under the Marcos administration, but will instead focus on improving tax collection efficiency, its top official said.

“It is incumbent upon this administration that its last resort should always be to increase taxes,” Finance Secretary Ralph G. Recto told reporters in mixed English and Filipino at the sidelines of an Economic Journalists Association of the Philippines event last Thursday.

Asked if there is a chance that there will be no new tax measures until the end of the administration, Mr. Recto said: “There is a possibility. I think we should try first to collect what’s there. There are so many leakages.”

Latest Development Budget Coordination Committee (DBCC) data showed that the government is targeting to generate P4.235 trillion in revenues this year, equivalent to 15.5% of gross domestic product (GDP).

Of this, the Bureau of Internal Revenue and the Bureau of Customs are expected to collect P3.055 trillion and P959 billion, respectively.

Mr. Recto earlier said he does not plan to push for new tax measures at least this year and the next, save for the pending tax reforms in Congress, such as the rationalization of the mining fiscal regime and the Passive Income and Financial Intermediary Taxation Act.

Current tax rates are already high as is, Mr. Recto said. “In my view, taxes are already high. What can you tax? 60% of our revenue already is indirect tax. And it’s the most efficient way to collect, indirect tax.”

“I cannot tax oil anymore. I cannot tax power anymore. I cannot increase the price of your vehicle anymore. I cannot increase the registration of your vehicle anymore,” he added.

Mr. Recto is also not keen on imposing luxury taxes.

Asked about taxing luxury cars, he said: “Cars already have excise and value-added tax (VAT). There’s registration fees, there’s motor vehicle user’s charge.”

Raising sin taxes such as a tobacco tax would also result in more smuggling, he added.

“Hopefully there will be no trigger (or need to impose new taxes). Collection efficiency first. But that will take time. You have to digitize, digitalization, so on and so forth. I think it is prudent for us to say, let’s first try to improve tax collection efficiency,” he said.

“The best way to grow your revenues is to grow the economy. If you grow the economy, you’ll collect more taxes.”

Instead of major tax proposals, Mr. Recto said he would be willing to study proposals on higher fees and charges. “We can probably look at fees and charges. I’m willing to take a look too. User fees, like that.”

The Finance department is also looking at ways to better tax the e-commerce sector, he said.

“People are shifting to e-commerce. It’s hard to collect there. We have to find a way, so let’s concentrate on that. But like we said, it’s easy to make a law but will you be able to enforce it? Maybe we should computerize that.”

“It’s unfair to brick-and-mortar (stores) that they pay taxes and those in e-commerce don’t,” he added.

A Senate bill seeking to impose a 12% VAT on digital transactions is now up for second reading, while the counterpart bill was approved by the House of Representatives in November 2022.

Latest data from the Bureau of the Treasury (BTr) showed that the National Government (NG) posted a budget surplus of P88 billion in January, driven by a 21.15% jump in revenues to P421.8 billion.

The NG’s deficit ceiling is capped at P1.39 trillion or 5.1% of GDP this year. As of end-2023, the deficit-to-GDP ratio stood at 6.2%. — Luisa Maria Jacinta C. Jocson

DoE sees yellow alert in April, May

The sun sets over Parañaque City, March 7, 2024. — PHILIPPINE STAR/RUSSELL PALMA

By Sheldeen Joy Talavera, Reporter

THE Luzon grid may potentially experience yellow alerts in April and May as the operations of several hydroelectric power plants have been affected by the El Niño weather event, according to the Department of Energy (DoE).

This comes after the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) on Friday declared the official start of summer in the country.

The country also continues to experience the effects of the El Niño weather event, which has triggered drought and dry spells around the country.

“Based on the latest DoE simulations, with hydroelectric power plants running below capacity level due to the El Niño phenomenon, the Luzon grid might experience yellow alert in April and May,” it said in a statement.

Yellow alerts are declared when supply available to the grid falls below a designated safety margin.

The DoE, however, said the Visayas and Mindanao grids will have “normal reserve level” during the second quarter.

Irma C. Exconde, director for DoE’s Electric Power Industry Management Bureau, said that the possible yellow alert in April and May is based on the scenario that “there’ll be 70% reduction” or “zero” capacity from hydropower plants.

“The demand forecasts remain as we have forecasted this year under an El Niño scenario of 12% increase from 2023,” Ms. Exconde told BusinessWorld in a Viber message.

However, Ms. Exconde said that the actual peak demand last week is lower by 1,585 megawatts (MW) compared to the week earlier which is “not yet as high” as forecasted for an extreme El Niño.

There are 44 existing hydropower plants with an installed capacity of 2,548 MW connected to the grid, according to the data from the DoE as of end-November 2023.

In its latest advisory, PAGASA said that the El Niño across the tropical Pacific Ocean is showing “signs of weakening” and is expected to persist until May.

Energy Secretary Raphael P.M. Lotilla said the DoE continues to monitor the power situation especially as “scorching temperatures” are expected in the next three months.

“The summer period exerts significant pressure on electricity demand due to increased cooling needs, leading to peak demand shifts in consumption and infrastructure strain,” he said in a statement on Sunday.

“We are, therefore, closely coordinating with all the stakeholders to carefully manage and plan for the effects of the summer period and the on-going El Niño to ensure reliable and sustainable electricity supply.”

As of Sunday morning, the Luzon grid has an available generating capacity of 13,715 MW and a system peak demand of 8,821 MW, data from the National Grid Corp. of the Philippines (NGCP) showed.

To avoid issuing alert notices, the DoE said that it is monitoring the grid by continuously updating the power outlook that “considers any changes particularly in the operations of power generating units.”

It added that it is coordinating with government agencies to facilitate timely approval of regulatory requirements for the completion of power facilities.

“The injection of power to the grid of generation facilities under testing and commissioning are allowed to provide additional capacity to the grid. The NGCP is likewise directed to expedite completion of this activity,” the DoE said.

The DoE also urged the public to continue practicing energy conservation “to minimize the cost of running oil-based power plants” during the period.

In 2023, the Philippines raised two red alerts and eight yellow alerts, according to the DoE, below the initial projection of 12 yellow alerts.

Gross borrowings slump in Jan.

JOHN GUCCIONE-PEXELS

THE National Government’s (NG) gross borrowings slumped by nearly half to P203.151 billion in January, the Bureau of the Treasury (BTr) said.

Data from the BTr showed that total gross borrowings declined by 44.6% in January from the P366.863 billion in the same month in 2023.

During the month, domestic borrowings accounted for more than two-thirds or 69.7% of the total.

Gross domestic debt stood at P141.505 billion in January, a 21.1% drop from the P179.3 billion seen a year ago.

This consisted of fixed-rate Treasury bonds amounting to P130 billion and Treasury bills worth P11.505 billion.

Meanwhile, gross external debt dropped by 67.1% to P61.646 billion in January from P187.563 billion a year ago.

Broken down, program loans stood at P56.298 billion and new project loans were recorded at P5.348 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the year-on-year drop in gross borrowings was primarily due to the dollar-bond offering in January 2023.

In January last year, the Philippines raised $3 billion from its US dollar bond issuance. This was the second global bond offering under the Marcos administration.

“Global bond issuance by the National Government has yet to start but scheduled as early as the first half of 2024, thus resulting to the sharp year-on-year decline in gross borrowings,” Mr. Ricafort said in a Viber message.

Finance Secretary Ralph G. Recto earlier said that the Treasury is working on finalizing its first offshore issuance of the year. No details were available.

For the coming months, Mr. Ricafort said that the NG’s gross borrowings could rise. “Furthermore, the Retail Treasury Bond (RTB) issuance in the latter part of February 2024 would lead to some pick up in gross borrowings to start with, on top of other sources of borrowings,” he added.

In February, the government raised P584.86 billion from its offering of five-year RTBs, higher than the P400-billion target set by the BTr.

This year, the government’s borrowing program is set at P2.46 trillion, with P1.85 trillion to be raised from the domestic market and P606.85 billion from foreign sources.

In 2023, the NG’s gross borrowings rose by 1.38% to P2.193 trillion, but was slightly below the P2.207-trillion borrowing program for the year. — Luisa Maria Jacinta C. Jocson

Embracing the changing face of women leadership

Photo by katemangostar on Freepik

By Angela Kiara S. Brillantes, Special Features and Content Writer

According to the World Economic Forum’s “Gender Gap Report 2023,” women representation in the workforce is still lacking. Data showed that while 41.9% of the workforce last year is made up of women, senior leadership roles have decreased to 32.2%, which is almost 10% lower. This emphasizes the need to empower women to take on leadership positions more than ever.

“Recent years have seen major setbacks and the state of gender parity still varies widely by company, industry and economy. Yet, a growing number of actors have recognized the importance and urgency of taking action and evidence on effective gender parity initiatives is solidifying,” the report said.

Whether it’s climbing the corporate ladder or establishing their own businesses, more women are making their mark in the business realm. And as they are given these opportunities to take the lead, they are also paving the way to build more inclusive spaces for work and professional development.

In fact, the latest “Women in Business” report of global counting firm Grant Thornton ranks the Philippines first out of 28 countries in the percentage of women executives. The firm’s survey found that 43.1% of top executives in the country were women. Moreover, this is the third year the country is on top of the list.

Aleli Arcilla, Managing Director of Mondelez Philippines, Inc.

Among these women executives is Aleli Arcilla, managing director of Mondelez Philippines, Inc., a brand known for its snacks as well as its advocacy for healthy lifestyles. In an email interview with BusinessWorld, she shared the unique value brought by women leaders to organizations.

“Women leaders bring a diverse point of view into the table, the ability to continue looking at the big picture, while maintaining an eye for detail greatly helps an organization crystallize the what’s and the how’s of what an organization needs to do to grow, as well as developing an enabling culture that would drive growth,” Ms. Arcilla said.

Ms. Arcilla added that aside from large enterprises, women leadership is also thriving in terms of innovation-driven companies, particularly the tech industry.

“Female-led companies are breaking barriers and become innovative companies especially in the tech industry, as this requires a lot of visioning and an exacting level of detail to deliver products and solutions to consumers,” she said.

Beia Latay, Chief Executive Officer of KonsultaMD

Within the tech space, the Globe Group has grown an “inclusive ecosystem where women not only thrive but also lead with excellence.” Among the group’s women leaders, KonsultaMD Chief Executive Officer (CEO) Beia Latay has been at the helm of transforming the company into a premier telehealth platform that brings healthcare closer to Filipinos. She also believes in the potential of homegrown companies to serve as powerful examples for aspiring leaders.

“I want Filipinas to build more confidence, dream bigger, and aim higher. I hope to inspire future generations of women to pursue careers in healthcare and technology, knowing that their contributions can make a significant difference in the lives of others,” she was quoted as saying in a statement.

A steady progress

This growth in leadership is a result of women’s steady climb to the corporate ladder. Ms. Arcilla, for instance, started out as first level sales representative, after which she rose from the ranks to take more senior roles in the Nutrition Retail Sales industry.

This was followed by taking on brand marketing and commercial roles for big beverage and snacks brands, which gave her profit and loss responsibilities and a critical experience in startup operations. These roles, later on, led her to general management roles in industries such as nutrition, pharmaceuticals, and fast-moving consumer goods.

“I did aspire to be a leader as I rose up the ladder, with my motivation of setting a more defined path for future female leaders that will come after me,” she added.

Jennilyn Uy, President of WalterMart

Jennilyn Uy, president of community mall chain WalterMart, started her journey by working behind the register in one of WalterMart’s stores when she was in her first year of college.

“I remember working in the store as a cashier on weekends and during school breaks in the summer and the holiday season,” Ms. Uy shared in another statement. I rotated across different roles, whether it’s bagging groceries, visual merchandising, or stocking inventory you name it — I was able to do them.”

The 30-year veteran in the food retail industry also recalled her time packing holiday baskets for the Christmas festivities. Entering WalterMart’s management trainee program, Ms. Uy also learned the ropes working in different departments, from accounting to marketing and store setup.

When asked whether she saw herself leading the organization one day, she said it was always a dream job.

Along Ms. Arcilla’s ongoing journey in Mondelez International, where she initially struggled to operate as an end-to-end leader, she learned to leverage her depth of experience and soft skills to work effectively with the other functions, which she may not have had much experience on.

“I would get the best functional leader whom I can rely on, where expectations are set very clearly,” she shared.

She also noted the growing range of responsibilities while climbing up the corporate ladder, as well as the expanding of people and organization challenges to handle.

“The big shift is to think organization, culture, structure versus functional / KPI (key performance indicator) achievement only. The deliverables expand to corporate reputation, product quality, culture, apart from delivering the business and setting an agenda,” she said.

Furthermore, as she took on her leadership role at Mondelez International, Ms. Arcilla realized that leadership can also be a solitary journey, as the company’s global chief once briefed her about.

“That day when the Global CEO and I were on our way to a company dinner, I clearly remember what he said to me: ‘Our company wants to go places and we believe that you have the competency and potential to grow with us. I would like to confirm our intention of appointing you as the GM of the business, but it will be lonely at the top.’”

Having seen for herself how lonely it can be at the top, Ms. Arcilla stressed the importance of a strong support system in taking leadership roles.

“My mentor and leaders of the business gave their confidence on my capabilities and with an aligned ambition, I took the leap. It felt overwhelming and a daunting task, especially since it was a precarious situation, in the middle of a merger where the demands of integration and transition was so high,” she said.

Trust within the organization serves as a motivator for the managing director.

“What keeps me inspired is the trust of the organization, bringing the organization to the next level of growth and fulfill the vision of the company,” Ms. Arcilla shared.

Driving change

As leaders, women are already bringing change into businesses and society. They lead by example and mentor fellow women, inspiring growth and transformation in the industry.

For Ms. Arcilla, the way she is bringing driving change is through role modeling of key behaviors that are expected from a leader, modeling transformative leadership behaviors that inspire growth, and paying it forward by mentoring the leaders of tomorrow.

“One key shift is to synthesize and think in simple terms amidst a complex environment, and removing complicatedness in the way we do things,” Ms. Arcilla explained.

Ms. Latay of KonsultaMD, meanwhile, notes how their group has enabled “a safe space where we can debate openly without fear of judgment.”

“It helps that we’re able to be ourselves. Since there are a lot of women working and leading in the Globe Group, empathy is visible,” Ms. Latay noted.

For WalterMart’s Ms. Uy, aside from making a positive impact in the lives of the communities WalterMart serves, leading the company as a woman executive empowers her to embody empathy.

“And I think treading that journey with my mentors who empowered me to reach my full potential allowed me to feel more connected with our people now,” she added. “We seek to continue providing that same environment where individuals from all backgrounds are encouraged to showcase their best and bring out their utmost potential.”

More opportunities for next leaders

For Ms. Arcilla, strengthening women leadership in business starts with creating more opportunities for women, giving them a strong support system, and addressing existing gender stereotypes within companies.

“It all starts with a vision, create your small milestones so that you know if your vision is turning into reality. Solicit support from people who matter to you, and whom you think will impact your current realities. Advocate for yourself because no one else will,” she advised current and aspiring women leaders.

Ms. Latay, meanwhile, encourages aspiring young women to stay determined in their professional journey and keep an attitude of continuous learning.

“Stay true to your passions, embrace challenges for growth, and push boundaries. Surround yourself with supportive mentors, and never stop learning,” Ms. Latay shared.

IdeaSpace Accelerator Program Cohort 11 showcases six distinct startups in Demo Day

Cohort 11 startup founders celebrate a successful Demo Day with IdeaSpace President Butch Meily, outgoing Executive Director Katrina Rausa Chan, newly appointed Executive Director Jay Fajardo, former Head of Startup Development Alwyn Rosel, and Program Manager Shoraliah Macalbe.

PHL startup ecosystem pioneer introduced as IdeaSpace’s new executive director

Celebrating the spirit of innovation and entrepreneurship, IdeaSpace, a startup enabler supported by the PLDT and Metro Pacific group of companies, recently hosted a demo day for Cohort 11 of the IdeaSpace Accelerator Program.

The event provided a platform for visionary techpreneurs to pitch their ventures and showcase their journey towards reaching their growth targets and milestones throughout the program to investors, partners, and key ecosystem stakeholders. They were introduced to the community by IdeaSpace’s new Executive Director Jay Fajardo, one of the pioneers of the Philippine startup ecosystem.

Six groundbreaking startups pitched at the IdeaSpace Accelerator Program Cohort 11 Demo Day. Hey Roomie is a community engagement app propelling how people can connect and monetize their interests and passions online. ITOOH Homestyle is a digital platform that aggregates the finest local furniture and art.

kazam, meanwhile, is a platform that aims to directly connect kasambahays and homeowners, presenting safer and smarter online interactions; while Kintab is a mobile car care platform designed to cater to car owners with packed schedules.

Kippap Learning Corp. is an education tech startup focused on empowering students and regulated professionals to prepare for board exams; while Molinos de la Especia is a consumer packaged goods provider aiming to bring premium spices globally.

Each startup brought something unique to the table, demonstrating their significant growth, market traction, and bold visions for the future with innovative technologies and robust business models.

Throughout the 5-month IdeaSpace Accelerator Program, the startups had the opportunity to gain valuable insights into best practices for business operations, fund raising, marketing, and sales. They were guided by seasoned mentors with prominent roles in the local and global startup ecosystem, enriching their knowledge and capacities for success.

“Our latest cohort demonstrates the spirit of innovation and creativity that define the Philippine startup landscape. Through our Accelerator Program, we’ve not only provided them with the tools and guidance to thrive but also built a community where fresh ideas flourish. I am confident that these visionary entrepreneurs will continue to make waves, driving our nation towards a future brimming with opportunity and prosperity,” said Butch Meily, president of IdeaSpace.

Following the theme “Propelling Filipino Startups,” the IdeaSpace Accelerator Program continues to serve as an avenue for high-growth potential startups to reach the next step in their ventures. Committed to nurturing the next generation of Filipino entrepreneurs, IdeaSpace enables them to create positive change in society through innovative ideas.

IdeaSpace’s newly appointed Executive Director Jay Fajardo

Mr. Fajardo, the new executive director, also brings a fresh perspective and strategic vision to the forefront of the organization. Mr. Fajardo’s leadership heralds an exciting new chapter for the accelerator program, allowing a booming landscape where Filipino entrepreneurs can thrive.

“Cohort 11 represents an emerging breed of robust startups focused on practical fundamentals and sound unit economics. The founders have placed great emphasis on generating sustainable revenues and maintaining profitability while delivering tech-enabled innovation. This trend is particularly common with resilient startups during economic downturns in the past and is typical of the winners when economic cycles resume their upward trend. We’re glad to have played a role in strengthening Cohort 11’s best practices, business models, and value proposition — increasing their chances for success,” shared Mr. Fajardo.

To know more about the IdeaSpace Accelerator Program Cohort 11 startup participants, view the online magazine at https://heyzine.com/flip-book/8e67aa6b48.html.

Meralco Female Linecrew: Breaking Gender Stereotypes in a Male-Dominated Field

Meralco female linecrew Zuzette Castro shows that women can excel in any field.

By Mhicole A. Moral

For many years, the field of electricity line work has been dominated by men. It has traditionally been considered a physically demanding and dangerous job, leading many to assume that men are better suited for the role. However, the perception of this profession has begun to change, and women are now entering the field and making their mark in this previously male-dominated industry.

Meralco has taken a bold step towards pursuing excellence while promoting gender diversity and inclusion in the field of electrical linework. To keep up with the industry’s increasing demands and contribute to the development of knowledgeable lineworkers, the distribution utility has established the Meralco Linecrew Training Program (MLTP) that aims to equip individuals with the necessary skills, knowledge, and commitment to excel in the challenging field of power distribution.

In 2013, Meralco introduced female linecrew trainees into the MLTP, becoming the first power distributor in Southeast Asia to offer this opportunity to women. The move was motivated by Meralco’s belief in the competence of women to excel in technical roles and its commitment to providing equal opportunities for both men and women in the field.

Meralco ensures that the training provided to both male and female linecrew aspirants is equal, emphasizing its commitment to treating all employees with fairness and equality. The MLTP spans six months, with three months dedicated to training at the camp and three months for on-the-job training, allowing aspirants to apply the knowledge gained in practical scenarios.

Upon successfully completing the MLTP, graduates are formally endorsed to Meralco for the hiring process. Once they fulfill all hiring requirements, they are ready to be deployed and actively contribute to Meralco’s mission of providing reliable and efficient electrical services.

Equal opportunities for all

Zuzette Castro, a 34-year-old former overseas Filipino worker from Dubai, joined Meralco as a linecrew last year after participating in the MLTP in 2022. Her journey reflects a significant career shift from being a gasoline station cashier to becoming a third-class female linecrew at Meralco.

Ms. Castro’s motivation stems from her dedication to her son and pride in serving the public through her work.

“It’s really hard to be a linecrew, but I get motivated when I think of my son and of course the pride in my job that I can serve the public,” Ms. Castro said in Tagalog. “My life has changed a lot since I joined Meralco because I can take better care of my son.”

Karen Cañizares, part of the pioneering group of female linecrew trainees in 2013, has progressed within Meralco from being a trainee to currently holding the position of Quality Inspector. Ms. Cañizares emphasizes the career growth opportunities at Meralco and highlights the importance of perseverance and dedication in achieving success within the company.

“There is career growth here at Meralco and they will not treat you differently because you are a woman. As long as you persevere and improve your work, you will succeed,” she shared.

As a result, the inclusion of women in the MLTP not only promotes gender equality but also brings a diverse range of perspectives, skills, and experiences to the table. Meralco’s program ensures that trainees, regardless of gender, are provided with the necessary opportunities to excel in their respective roles.

Meralco is shaping a new generation of lineworkers and setting a precedent for other organizations to follow. Hence, the success of the program not only lies in producing skilled professionals but also in fostering a culture of equality and empowerment within the dynamic world of power distribution.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

UST’s SDG-inspired hackathon promotes healthy living, renewable energy, alternative communication

Team InnoVision, first-place winner of UST’s first university-wide hackathon

To foster interdisciplinary collaboration among students, the University of Santo Tomas (UST) TOMASInno Center, UST’s official technology business incubator, hosted the first university-wide hackathon with the theme “Hack-a-Thom: The UST Hackathon on Sustainable Development Goals — Health, Environment, and Education” last Nov. 24 at the Benavides Auditorium.

This inaugural hackathon brought together 14 teams composed of 83 students from various disciplines. Transcending the boundaries of traditional academic silos, it encouraged students to collaborate, innovate, and create solutions to real-world problems.

TOMASInno Center made the event inclusive and appealing to students with varied interests and skills by conducting bootcamps where professional practitioners coming from the field of engineering, business, programming, and other related trades and professions gave lecture sessions.

Vice-Chairperson and Executive Director of Climate Change Commission, Secretary Robert E.A. Borje delivered a keynote message, addressing key issues and emphasizing the importance of innovation. He highlighted the challenges, which range from developing innovative solutions to societal problems to creating new technologies that could disrupt existing industries.

During the competition, the teams presented their innovations on their chosen SDG focus with a five-minute pitch.

In first place was Team INNOvision with their project “AERLYTE.” The project aims to solve rising problems among geriatrics like health risks, reduced mobility, social isolation, and lack of motivation for exercise. This will be addressed through technology, specifically, a revolutionary exer-gaming app that seamlessly blends entertainment and health that enables a personalized and immersive fitness experience, fostering a new era of active aging for a healthier and happier senior community. Members include Julianne Kyle D. Abello, FJ Rio Rey Bantugan, Karl Dominic F. Placido, and Ydel Dominique C. Villariba.

In second place was Team Thoma5eekers with their project “Charging Point,” which aims to solve the problems brought by car-centricity by creating bike-friendly campuses and allowing the community to contribute in generating renewable energy. Mikayla Vera G. Cabildo, Kyle Christian Joshua M. Elgarico, Ronrico Miguel M. Kho, Niña Darlene S. Sebastian, and Russell L. Serranillo are the team members.

In third place is Team “MATCHA” with “Project Gesto,” an app made for everyone who desires to communicate and learn using sign language. Aside from its purpose to communicate, this will also help people who are willing to learn Braille and Sign Language. The team includes Abby Joyce E. Borromeo, Johann Louise V. Castillo, Alyssa Cherrylyn S. Guinto, and Lance Raphael H. Perez.

Team Synapse’s “Sewalert” was recognized as the top environment-related pitch for tackling the causes of flooding by leveraging their innovative flood sensor technology and helping to alert the appropriate authorities. Team members are Marc Angelo S. Ching, Miguel Felipe E. Lugay, Kercwin Paul F. Ocampo, Carl Diego L. Sadie, and Colleen Fritzi Santiago.

Team T6’s project “KKB,” which stands for “kumain ka na ba?” (Did you already eat?) aims to solve lack of nutrition, foster healthy eating habits, and embracing connectivity among college students through an app with interconnected features of assisting users in locating food shops according to their preferences and constraints, providing easy nutrient-tracking through artificial intelligence (AI) photography, and promoting a social community that reminds each other to eat rightfully and healthily. It was recognized as the top health-related pitch.

The top education-related entry was Team Incinque’s ABARKADA, which aims to provide inclusive, accessible, and quality education for all through an interactive learning platform integrated with innovative and inclusive features for children with limited hearing capacities, such as AI learning assistant and digital classrooms.

Winning teams were awarded with cash prizes, medals, and tokens for the overall effectiveness of their interdisciplinary teamwork.

Serving as the competition’s panelists were the Philippine Council for Health Research and Development (PCHRD) Head Dr. Kenneth Paul S. Ong, Cerebro CEO/Founder Justine Itugot, Accenture Managing Director Nepthalie Cruz, UST Hospital Medical Director Dr. Charito P. Malong-Consolacion, UST Alumni Association, Inc. President Atty. Dwight Ramos, and UST EdTech Director Asst. Prof. Anna Cherylle M. Ramos.

This event was generously supported by its major sponsors, Accenture and Climate Change Commission, and minor sponsors, Basic Environmental Systems & Technologies, Inc., Unify Platform AG, and Thomasian Employees’ Credit Cooperative.

The struggles and progress towards gender equality in the workplace

Photo by macrovector on Freepik

In the early 20th century, women encountered substantial difficulties entering the workforce due to societal norms and gender-based expectations that restricted their professional growth and limited them to domestic duties. Merits, an open access peer-reviewed journal, revealed that the prevailing belief that women were less capable than men in professional settings perpetuated gender inequality.

Since then, women have been breaking down barriers in traditionally male-dominated industries, paving the way for future generations, setting up successful businesses, and ascending to leadership positions in companies and governments across the world.

According to United Nations (UN) Women, legal frameworks, such as anti-discrimination laws and affirmative action policies, have paved the way for greater gender diversity in various industries. Women now represent a substantial portion of the global workforce, holding positions across diverse sectors, including science, technology, engineering and mathematics (STEM); finance; politics; and entrepreneurship.

Globally, a data from the World Bank indicated that more girls are attending school and completing higher levels of education than ever before. In some regions, the gender gap in education has narrowed significantly, with girls outperforming boys in academic performance in certain subjects.

The “Women in the Workplace 2023” report by McKinsey & Company and LeanIn.Org, also revealed that women’s representation in the C-suite has reached its highest level ever, showing encouraging gains at the top levels of organizations.

Furthermore, entrepreneurship rates are high among women in lower- and middle-income countries where job options are limited, highlighting the link between employment and entrepreneurship, based on the latest report from the Global Entrepreneurship Monitor.

Meanwhile, the Philippines achieved the 19th position out of 146 countries as a gender-equal country in the world in the “2022 Global Gender Gap Index” report by the World Economic Forum (WEF). The “Gender Gap Index” measures gender equality based on the economic participation and opportunity, educational attainment, health and survival, and political empowerment, and the Philippines has long been considered as the top gender-equal nation in Southeast Asia.

According to a report conducted by World Bank, the Philippine government is taking steps to increase female participation in the labor force by promoting policies supporting flexible work arrangements, addressing gendered social norms, and enhancing childcare support.

For instance, the Philippine Magna Carta for Women, officially known as Republic Act 9710, aims to eradicate discrimination against women and bridge the gender gap in various sectors. One of the key provisions of this law is to ensure that women have equal access and opportunities in education, employment, and all aspects of society. The Act recognizes and affirms the important role of women in nation-building, promotes their empowerment, and ensures that men and women have equal rights and opportunities.

As per the Asian Development Bank, the government has initiated Women’s EDGE Plan, which consists of policy studies, pilot projects, technical services and resources to support the economic empowerment and advancement of women across various sectors.

Similarly, the Philippine Commission on Women (PCW) has developed sector plans and national development strategies to ensure the mainstreaming of gender equality across all government agencies. These efforts are being executed through the Philippine Plan for Gender-Responsive Development 1995-2025 and the Women’s Empowerment, Development, and Gender Equality Plan for 2013-2016.

The persistent challenges

Despite the progress towards gender equality, women still face challenges and disparities globally and locally. According to the UN Women’s report on “Progress on the Sustainable Development Goals: The Gender Snapshot 2023,” approximately one in every ten women worldwide lives in extreme poverty. If the trend persists, an estimated 8% of the global female population, totaling 342.4 million women and girls, will still be living on less than $2.15 a day by 2023.

In terms of employment, gender bias remains a pervasive issue in many workplaces. Women often encounter stereotypes and discriminatory attitudes that undermine their professional credibility and opportunities for advancement. According to the World Bank’s “Women, Business and the Law 2023” report, over 2.7 billion women worldwide are legally restricted from accessing the same job opportunities as men. More than one-third of economies globally have laws constraining women’s ability to work, with 43 economies lacking any laws addressing sexual harassment in the workplace.

The International Labour Organization (ILO) also emphasized on the gender disparities in access to social protection. According to their report, women are significantly less likely to have access to social protection acquired through employment, such as pensions, unemployment benefits, or maternity protection. Globally, women lag behind men by 8% in terms of coverage, with 73.5% of women in wage employment lacking access to social protection.

Despite ranking high out of 146 countries in the WEF’s Global Gender Gap Index, the Philippines still faces challenges in achieving full gender parity, particularly in political empowerment. According to a report titled “Gender Equality in the Labor Market in the Philippines” by the Asian Development Bank (ADB) and the ILO, the country has struggled to generate sufficient employment, particularly for women. The share of women in waged employment in the non-agriculture sector remains disproportionately low, indicating a persistent gender gap in labor force participation.

There is also a substantial gender gap in labor force participation, with only 49% of women actively engaged in the workforce compared to 76% of men, according to the World Bank. The similar data also revealed that several factors hinder women’s entry and advancement in the labor market, including limited skills development opportunities, care responsibilities, and gendered social norms.

One of the most common issues faced by women in the Philippine workforce is the significant wage gap. The ADB revealed that the estimated proportion of women’s annual earnings to men’s annual earnings stands at less than 60%. Similarly, the Philippine Institute for Development Studies (PIDS) reported that women earn only 71.6% of men’s income. A similar study also found that women in digital jobs earn 18.4% less than men.

Meanwhile, the United Nations Development Programme (UNDP) recently highlighted a statistic about the state of gender biases in Filipino society. According to their findings, 99.5% of the population holds biases against women. Such biases can lead to discrimination against women in various aspects of life, including education, employment, and social status.

A path forward

The future of women in the workplace hinges on concerted efforts to break down barriers, promote inclusivity, and create a culture that values diversity.

One of the most critical aspects of advancing women in the workplace is breaking down the barriers that prevent them from reaching their full potential. According to the ILO, these barriers can include systemic biases, unequal pay, lack of access to leadership positions, and work-life balance challenges.

Research conducted by McKinsey suggests that companies with inclusive cultures are more likely to outperform their peers. Diverse teams are better able to innovate, problem-solve, and adapt to change, making them more competitive in today’s rapidly evolving business landscape. This effort involves implementing policies and practices that support diversity, equity, and inclusion, as well as fostering a culture of belonging.

In addition, organizations globally are encouraged to actively work to address unconscious biases that may influence hiring, promotion, and performance evaluation decisions. Based on an article published by Harvard Business School, training programs, diversity initiatives, and mentorship opportunities can all help to mitigate these biases and create a more level playing field for women in the workplace.

In the Philippine context, the primary factors that limit women’s participation in the labor market are their responsibilities towards domestic work and caregiving, as well as their restricted access to resources such as education, training, government services, credit, and financial services, as mentioned by the ADB and ILO.

To address these issues, the ADB’s and ILO’s joint report recommends that the public and private sectors should take into account gender perspectives while making economic decisions. Gender mainstreaming, a principle on incorporating gender perspectives into all policies and programs, can help reduce the negative impact of policies on women and improve their economic empowerment. This can be achieved through initiatives such as collecting data that is disaggregated by sex, implementing gender-responsive budgeting, and setting targets and quotas to ensure that women are adequately represented in decision-making roles across all sectors.

Efforts to increase the engagement of women in technical and vocational education programs, particularly in nontraditional fields, are also encouraged for breaking gender stereotypes and expanding career options. Since women are often underrepresented in technical fields such as engineering, information technology, and manufacturing, providing women with the access to relevant technical and vocational education and training (TVET) programs is important to address this disparity. It is also suggested that the government must prioritize the development of tailored training initiatives that cater to the needs and interests of women.

Despite women making up a significant portion of the workforce in the Philippines, they continue to earn less than their male counterparts. The ADB and ILO stated that the concept of “equal remuneration for work of equal value” is crucial in addressing this disparity. While legislation exists to prohibit gender-based discrimination in wages, the report highlighted that comprehensive reforms are needed to enforce equal pay principles effectively.

To pave the way for a more inclusive and equitable workplace, it is suggested that policy makers should consider amending existing legislation to strengthen provisions related to equal pay and ensure enforcement mechanisms; developing and implementing an independent minimum wage-setting process that is transparent and inclusive; and introducing measures to limit the use of precarious work arrangements, such as multiple short-term contracts, to provide greater job security. — Mhicole A. Moral

SMC studying Metro Pacific’s Indonesian tollway assets for merger

SAN MIGUEL CORP. (SMC) said it anticipates finalizing the planned joint venture with Metro Pacific Investments Corp. (MPIC) in the coming months, pending the evaluation of its tollway arm’s Indonesian assets. 

“We will finalize this very soon, maybe in the next few months. The reason why I cannot say ‘yes’ entirely is we need to evaluate the Indonesian tollway, but Indonesia’s economy is very promising,” SMC President and Chief Executive Officer Ramon S. Ang told reporters last week.

SMC and MPIC have been in discussions regarding a possible joint venture for a toll road business.

MPIC Chairman, President and Chief Executive Officer Manuel V. Pangilinan is hoping to complete and publicly list the planned merger with SMC within the year.

“It will be a significant company in the Philippines with starting EBITDA (earnings before interest, taxes, depreciation, and amortization) of around P50 billion,” he said in February.

The valuation of the planned joint venture company also includes Metro Pacific Tollways Corp.’s (MPTC) Indonesian assets. 

MPIC’s tollways unit MPTC, through Metro Pacific Tollways Asia, holds 76.31% share in PT Nusantara Infrastructure in Indonesia. 

PT Nusantara Infrastructure owns infrastructure concessions in both the western and eastern portions of Indonesia. It operates businesses in transportation, toll roads, communication, and distribution networks.

In 2019, MPTC announced that it had purchased a significant share of PT Jasamarga Jalanlayang Cikampek, the concessionaire of the Sheikh Mohamed Bin Zayed Elevated Toll Road, which is a 38-kilometer flyover aimed at decongesting traffic in Jakarta.

“I think the Indonesian tollway [assets] should be good, but as I have said, I do not know the details. We cannot agree on something we don’t know,” Mr. Ang said. 

Among the considerations and issues being evaluated for the possible merger is that both companies will have to go to Congress to apply for a franchise for their operations, according to MPIC’s Mr. Pangilinan.

Mr. Ang said he is confident that securing the necessary approvals from the government will not be a problem for the two parties.

“For as long as your intentions are good, it  will be easy to put forward in Congress,” he said.

MPTC has announced that it is deferring its initial public offering plans to 2025 as the company weighs its options to form a joint venture with SMC.

MPIC is one of the three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Mining companies seen to pose mixed results this year

BW FILE PHOTO

By Sheldeen Joy Talavera, Reporter

LISTED mining companies are expected to deliver mixed results this year, buoyed by global demand for essential metals but weighed down by regulatory and environmental uncertainties, according to analysts.

“The outlook for mining companies in FY (financial year) 2024 appears promising, driven by both domestic and global factors supporting growth and expansion,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message last week.

Essential metals such as gold, nickel, cobalt, copper, and iron are “in demand” due to their importance in renewable initiatives and emerging technologies, he said.

“As the global shift towards these technologies continues, the demand for these metals is expected to remain strong, benefiting mining companies,” Mr. Arce said.

Investors consider risks such as regulatory changes, environmental concerns, and global market dynamics when evaluating investment opportunities in the mining sector, he also said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that there is still cautious optimism regarding the performance of mining firms for the year.

“Although favorable commodity prices and regulatory enhancements could boost growth, challenges such as regulatory uncertainties and environmental issues remain significant,” Mr. Limlingan said in a Viber message.

For 2023, nickel ore producer Global Ferronickel Holdings, Inc. reported a 19.6% decline in its attributable net income of P1.5 billion while revenues grew by 30.5% to P8.8 billion.

Philex Mining Corp. recorded an attributable net income of P1.02 billion, down 43.3% from the previous year, mainly due to lower revenues from its gold and copper operations. Revenues dropped by 16.3% to P7.73 billion.

Atlas Consolidated Mining and Development Corp. saw a decline of 65% in its consolidated net income to P1.1 billion as the company repaid loans and prices of copper decreased.

The company’s revenues went up by 13% to P19.91 billion last year.

Meanwhile, Nickel Asia Corp. enjoyed a 1.5% increase in its attributable net income to P7.93 billion brought by higher nickel ore prices. Revenues from ore sales dropped by 16% to P21.4 billion.

For the third quarter, Apex Mining Co., Inc. posted an attributable net income of P1.03 billion, higher by 14.4% from the previous year.

Gross revenues rose by 10.7% to P3.04 billion in 2024.

“Bottom line is, mining firms have potential for growth, but they must effectively manage challenges in order to capitalize on opportunities this year,” Mr. Limlingan said.

For 2023, the country’s metal production by value increased by 4.8% to P249.05 billion driven by the improved prices and higher output, data from the Mines and Geosciences Bureau showed.

Orient Star opens first boutique in the Philippines

HOST DAVID CELDRAN welcoming the guests

ORIENT STAR, a higher-end brand of popular watch brand Orient, opened its first boutique in the Philippines at the Mitsukoshi BGC mall on March 21.

While the company started making watches in 1901, the company was formally known as the Orient Watch Company in 1951. During the quartz watch boom in the 70s and 80s, the company sought a revival of mechanical watches, many of which are still made today.

In 2017, the brand became a part of Epson (as in the printer company). Toru Murauchi, General Manager for WP Sales and Marketing Department, Sales and Marketing Division for Epson, outlined the relationship between the electronics company and the watch brand. “Epson has been providing timepieces for over 80 years,” he said. While Epson began as a company manufacturing parts for the Seiko group, it began to make printers in response to a requirement during the 1964 Tokyo Olympics.  He gave an example of Epson’s know-how helping give rise to their new F8 movement, launched in 2021, which uses a silicon escape wheel, that allows the watches to have a 70-hour power reserve.

Meanwhile, Naoto Ueda, Deputy Chief Operating Officer of Wearable Products Operations Division of Seiko Epson, said, “As we expand Orient Star in the Philippines, we want to share our masterful range of models, which expertly balance precision mechanical movement with modern design and fashion-forward color combinations. Our Japanese artisans have masterfully crafted the mechanical watches to endure over time. We also can’t imagine a better place to open the first Orient Star boutique than Mitsukoshi BGC.”

Mr. Murauchi said, “For a long time, Orient Star focused on the Japanese market. We’ve just started Orient Star branding relationships worldwide. Fortunately, we met with the Lucerne Group, and we caught a big opportunity to start the Orient Star business in the Philippine market.” He also said that they plan to open more boutiques in the country in the future.

The boutique is located on the Ground Floor of Mitsukoshi BGC. — JLG

1...2,0122,0132,014...12,774Page 2,013 of 12,774
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube