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Gov’t support for manufacturing seen boosting job creation

MANUFACTURING must be made a government priority after the industry’s share of gross domestic product (GDP) and employment declined, according to an economic think tank.

“(The government) must provide means and opportunity for local manufacturers to flourish,” IBON Foundation Executive Director Jose Enrique A. Africa said at a briefing.

Mr. Africa called on the need to increase subsidies for research and development, technology, and worker training in manufacturing.

Citing the government’s public utility vehicle (PUV) modernization program, Mr. Africa said tariffs for imported PUVs must be increased to support manufacturers selling jeepneys for P1 million or less.

“If the government purchases vehicles for its local government units or line agencies, it must require them not to purchase foreign cars and instead buy locally manufactured and assembled goods,” Mr. Africa said.

The Land Transportation Franchising and Regulatory Board (LTFRB) told legislators last week that about 38,000 jeepney drivers could lose their jobs next month under the PUV modernization program.

This number represents 24% of jeepney drivers and operators that have not been reorganized as cooperatives or corporations, LTFRB Chairman Teofilo E. Guadiz III said.

Manufacturing’s share of GDP fell to 17.6%, the lowest since the 16.3% recorded in 1949, according to IBON Foundation.

Manufacturing also led the decline in number of employed persons with 656,000 between October and November, according to the Philippine Statistics Authority.

“The most stable, sustainable and important sources of work is industry, because this is where the productivity and competitiveness of a country comes from,” Mr. Africa said.

Manufacturing output rose to 1.9% in November, according to the Philippine Statistics Authority. However, the volume of production index for the manufacture of food products was at 5.0%, lower than the 5.7% posted in October and 7.7% in November 2022.

The economy grew 5.9% in the third quarter, the “strongest among major Asian economies,” according to the Finance department.

“Our main concern there (that this) is not the full picture of how the entire economy is running,” Mr. Africa.

IBON estimates that 78% or over 38.3 million workers are employed in “poor-quality work.”

Of this total, 43% or 21.3 million are in “visibly informal work.” Within this category, 14.2 million are self-employed, 5.1 million work in family farms or businesses, and 2.1 million are household help.

More than 17 million or 36% are wage earners in informal establishments, which are not covered by the labor code or have irregular work arrangements, IBON estimates. — Beatriz Marie D. Cruz

CIMB expects loans to grow by 40% this year

CIMB BANK Philippines, Inc. expects its loans to grow by 40% this year as the central bank is widely expected to start its easing cycle.

The digital commercial bank also aims to boost its deposits by more than 25%, while adding as many as 1.5 million customers, CIMB Bank PH Chief Business Strategy Officer Ankur Sehgal said to reporters on Thursday.

“In the next three years, we are expecting a continuous yearly growth of more than 25% for deposits. For lending, we are expecting growth to be much higher,” he said. “[For] loans… we are targeting a yearly growth of almost 40%. So we are targeting to double our balance sheet in the next three years.”

CIMB had more than 7.5 million customers at the end of last year. It expects the number of clients to exceed 10 million in the next three years.

“This is not an official target, but I think based on our projection, because we do see some competition coming in to be fair, and because of that, I think our three-year target of 10 million is conservative,” Mr. Sehgal said. “We may end up higher, but we do recognize the competition from other digital banks.”

Expected rate cuts by the Bangko Sentral ng Pilipinas (BSP) this year are seen helping the bank increase its loan margins.

CIMB expects BSP to cut key rates by 50 basis points (bps) in the next three to six months.

The central bank raised borrowing costs by 450 bps from May 2022 to October 2023, bringing the policy rate to a 16-year high of 6.5%.

To support growth, the bank will introduce new commercial and deposit products. It will also be “venturing into different segments.”

“We have a couple more partners that are coming up in the next couple of months,” Mr. Sehgal said. “With those new partners coming on board, we are expecting loan growth to be doubling down.”

CIMB assets had P33.52 billion in assets at the end of September, according to data from the central bank. — Aaron Michael C. Sy

PLDT says growth ‘getting tougher’ in telco industry, eyes lower capex

PLDT Inc. anticipates a challenging year for the telecommunications industry and plans to reduce its capital expenditure (capex) budget, the company’s chairman said.

“The problem with the industry has always been growth. It is also getting tougher and tougher to realize growth across the board,” Manuel V. Pangilinan, chairman, president, and chief executive officer (CEO) of PLDT, told reporters on Thursday.

Despite industry challenges, Mr. Pangilinan expressed optimism for PLDT’s wireless business, expecting improved performance.

However, Toby Allan C. Arce, an analyst from Globalinks Securities and Stocks, Inc., said there may be increased profitability for telecommunications companies this year, but he cautioned that factors such as competition, network upgrade expenses, regulatory hurdles, and cybersecurity threats could influence profitability.

“The industry faces a potential obstacle in the form of cybersecurity attacks, which may persist and escalate in the coming years,” he said in a Viber message.

LOWER CAPEX
Mr. Pangilinan said the company’s capex budget may be lowered this year.

“We are getting a better idea of what the carry-over capex is from the issues related to 2022. It is likely to be overall lower than in 2023,” he said.

PLDT had set a capex guidance of P80 billion to P85 billion for 2023, which was also significantly lower than the P96.8 billion the company spent in 2022. 

To recall, the company announced in 2022 that it would begin reducing its capex budget starting in 2023 after discovering a P48-billion capex overrun.

PLDT met its capex target for 2023, Mr. Pangilinan said.

At the same time, he said that PLDT is currently searching for the next president and CEO after Alfredo S. Panlilio resigned from the role due to health reasons.

Mr. Pangilinan is temporarily holding Mr. Panlilio’s position until the company appoints a replacement.

Meanwhile, PLDT’s technology services company PLDT Global Corp. launched its collaboration with Overseas Workers Welfare Administration (OWWA).

The two parties have partnered to launch a new service that would allow Filipinos abroad to access OWWA’s helpline through PLDT Global’s  one-stop online marketplace, TINBO.

At the local bourse on Thursday, shares in the company closed P24 or 1.87% lower at P1,260 apiece.

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

Donald Glover brings Mr. & Mrs. Smith back on the screen

MR. & MRS. SMITH (2024) — IMDB
MR. & MRS. SMITH (2024) — IMDB

LONDON — The married couple of assassins from the hit movie Mr. & Mrs. Smith returns to action in a new TV reboot of the 2005 film.

Co-created by actor and musician Donald Glover and writer Francesca Sloane, the eight-episode series is a reimagining of the characters played by Brad Pitt and Angelina Jolie nearly two decades ago.

“The last bits of it are a lot like the movie but it’s pretty different actually,” said Mr. Glover as he premiered the show in London on Wednesday. “They’re differently set up. We have a lot more time to do things, too,” he said.

Also titled Mr. & Mrs. Smith, the series sees two outsiders (Mr. Glover and actress Maya Erskine) partake in a peculiar selection process to land jobs at an international spy agency and get paired up in a cover marriage. Now named John and Jane Smith, the couple must convince their new superiors of their spy skills, while adapting to sharing their daily lives with a stranger.

“I guess I just wanted to make a show about relationships because I think I’ve entered into a time in my life where it’s like, oh, more relationship talk, so it was fun to do that,” said Mr. Glover, 40, who releases music under the name Childish Gambino.

Ahead of the series debut, showrunner Ms. Sloane penned an open letter to “internet trolls” who questioned the need for the remake.

“I wanted to be very realistic about the fact that we understood where they were coming from,” she said. “There are 10 billion remakes out there, but we really tried to make something different.”

As the Smiths tackle missions in glamorous destinations including Lake Como and the Dolomites, they start developing feelings for one another and find that relationships and marriage sometimes take more effort than their undercover activities.

The show’s writing team drew inspiration from 1970s movies and modern-day reality TV, said Sloane.

“Reality shows about love and marriage really spoke to us. We feel like lonely people are everywhere and we really wanted to speak to those lonely people,” she said. “At the end of the day, it’s really a show about love. It really is a love story.”

Mr. & Mrs. Smith starts streaming on Prime Video on Feb. 2. — Reuters

Saving Gaza means pressing Iran as well as Israel

FLATART-FREEPIK

THE GULF between how Israel and much of the world thinks about events in Gaza is growing, and with it the risk of regional escalation. The nature of that disconnect needs to be better understood, and soon, to reduce the threat of a disastrous wider war with Iran.

International attention continues to focus on Palestinian suffering, seen now through the prism of the International Court of Justice (ICJ) in The Hague, where South Africa has accused the Jewish state of genocide. Many in the Middle East and West take Israel’s guilt as a given. For them, after decades spent illegally occupying Palestinian lands, Israel is the problem and the solution is self-evident: The Israel Defense Forces (IDF) need to stop shooting and leave Gaza.

Within Israel, though, the ICJ case is seen by most as a calumny that only proves antisemitism’s enduring nature. Where, after all, is the case against Hamas, a group committed in its charter to Israel’s destruction? Did it drop leaflets warning people to move to safety before starting its meticulously planned rampage of murder and rape last October? No. It clearly sought to kill as many Jews as it could in the few hours it had.

The merits of the ICJ case are for another column. In the meantime, facts on the ground are changing in favor of escalation. The IDF, despite saying it was shifting to a lighter-touch strategy in Gaza, looks to be digging in for a long war. Houthi attacks launched against international shipping from Yemen, in the name of forcing an Israeli withdrawal from Gaza, have triggered retaliation by the US and UK. Tit-for-tat exchanges of fire between Hezbollah and the IDF in the north are shifting the attention of Israelis there.

Everywhere in the background stands Iran, which itself just launched missile strikes against targets in Iraq and Pakistan. It was avenging a recent terrorist bombing that it first linked to Israel despite a claim of responsibility by Islamic State.

Recent statements by Israel’s Prime Minister Benjamin Netanyahu can be seen as a warning that he considers opening a second front in Lebanon an option. So, too, the assassinations of not just a Hamas leader in Beirut, but also one of Hezbollah’s top military commanders. “We’re going to bring back safety to the south and to the north,” Netanyahu said in a Jan. 14 nationally televised address marking 100 days since the Oct. 7 attacks. “Nobody is going to stop us, neither The Hague, the axis of evil or anybody else.

Israel’s more conservative press currently gives the impression that a campaign is underway to build public support for attacking Hezbollah, whose missiles have forced tens of thousands of Israelis from their homes along the border. “Another war beckons,” Jacob Nagel, a former head of Netanyahu’s National Security Council, said in an op-ed he co-authored in the Jerusalem Post.

“The day will come sooner rather than later,” the same newspaper wrote two days later in an editorial, when “Israel will have to unleash its full firepower against Hezbollah.”

Neither Iran, the current US administration, nor Hezbollah — mindful of domestic opposition to war in an exhausted, economically spent Lebanon — wants a regional conflagration. But increasingly, Israelis see the root of their problem, and therefore the focus of any potential solution, as Iran.

If you see the world as a game of Risk, you can build a pretty convincing case for action. Iran, after all, has accelerated the rate at which it produces near-weapons-grade uranium, according to the United Nations International Atomic Energy Agency, bringing it closer to a potential nuclear breakout. For now, the estimated 100,000 Hezbollah troops and 150,000 rockets and missiles parked on Israel’s northern border provide Tehran with an insurance policy against any direct Israeli attack to prevent Iran from taking that step. But if a breakout were to happen, Iran could afford to risk Hezbollah in a fight with Israel.

Meanwhile, the Islamic Republic is engaging the US and Israel via proxies — not just in Gaza and Lebanon, but also Iraq, Syria, and Yemen — to keep their forces mired in asymmetric, reputation-sapping fights. So why not stop that by destroying Hezbollah, instead of waiting until the group and its Iranian backers are ready? Why not, to use the unforgettable phrase of Saudi Arabia’s then King Abdullah, cut off the head of the snake by attacking Iran directly?

“One Iranian proxy holds Israeli hostages, kidnapped in Gaza. Another, Hezbollah holds Israeli and Lebanese populations hostage with their attacks, and now the Houthis are holding the whole world hostage,” Avi Melamed, a former Israeli intelligence official, told me. “People have to understand that this war goes way beyond Hamas. This is a pivotal moment in the trajectory of the Middle East, for the US geopolitical position worldwide, and for story of Arab normalization with Israel.” And every event that pushes against regional stability, he said, leads back to Iran.

The short answer to the questions posed above is that this isn’t a board game. As should be evident by now, neither the US nor Iran is in full control of either their allies or events. From day one, the Biden administration has been shouting itself hoarse for Israel to adopt a less scorched-earth approach to Gaza, to little effect. The Houthis have paid still less attention to US warnings, or — for now at least — its missile strikes. Meanwhile, the costs of invading Lebanon, in human and economic terms, almost certainly would be larger in Lebanon than in Gaza. Ballistic missiles would rain on Tel Aviv, and the Israeli response, likely against Beirut, would be devastating.

Yet Iran does see itself as the spider at the center of the web of proxy forces it calls the axis of resistance, and the risk of escalation is real. For now, most Israelis don’t want the IDF to invade Lebanon, but with every exchange of rockets the number who believe there is no choice will grow. The US and its allies need to find non-military means of pressuring Tehran — from squeezing Iranian oil exports to cyberattacks — to back off or risk that events spin toward a much larger conflict.

Changing Israel’s behavior toward the occupied territories is an essential requirement for restoring stability in the Middle East, but it’s only part of the solution. Israel won’t relent until the root threat posed to it by Iran and its proxies also gets addressed, even once Netanyahu and his extremist coalition are out of the picture. No matter how much you hate US hegemony, only a tougher, braver wielding of sticks and carrots against the governments of both countries is likely to work.

BLOOMBERG OPINION

Reverie

ERIC WARD-UNSPLASH

The creative process in various forms — such as composing a song, writing a book or a play, painting a landscape, chiseling a sculpture, choreographing a ballet, inventing a diagnostic machine, or discovering a formula is an extension of the Divine. Each piece is unique, and it has soul.

The murals that surrounded and animated the house on the cliff are gone. The lonely structure remains. It looks vacant despite being occupied. The bougainvillea on the steps and yellow bell vines on the trellis seem to have lost volume and color.

However, to the creator, the original art (frescoes) is never lost. It remains alive as surreal seascapes and sunscapes in the imagination, waiting to be reborn and painted in another form, a new medium.

Like the biblical story of Noah, a faint rainbow arched across the sky — radiating colors of the prism.

Tracing tentative steps, the beachcomber climbed the familiar craggy cliff. The panorama was breathtaking. The heaving sea, azure blue with white caps tossed a banca (small outrigger boat) and a catamaran with colorful sails. Powder puff clouds drifted across the sky. There were no traces of the recent storm — except for driftwood washed ashore and hundreds of leaves and broken branches on the beach. The high tide claimed the shells and swept over the steppingstones and pebbles.

For many decades, the rustic beach in the cove had been the seaside refuge from urban stress. It was a playground. A place to chill.

Déjà vu. It seems nothing has changed yet everything is different. Probably the changes are internal.

Perspective and perception.

The rolling waves crashed and splashed into millions of bubbles against the rocks. A seagull soared and dipped like a wayward kite. Little billy goats tiptoed along the steep trail of the cliff.

Not too long ago, two generations of fearless kids and their parents jumped from the popular cliff of another cove into the cerulean water below. They used to swim into the grotto underneath and played hide and seek inside the cave. Their carefree laughter magnified into deafening echoes. Those kids have grown up and now have small children and teenagers who want to jump into the chilly water too.

The grownups caution their little ones and defiant teens. They are protective because of the sharp rocks and strong waves. Where did their sense of adventure and fun go? Do people lose that mischievous streak of the Puer (eternal child) as they grow older and wiser?

Perched on the side of the cliff, a wanderer marveled as the Divine Hand took a giant brush and palette to paint the sky. The canvas was splattered with impressionistic dots and strong, energetic brushstrokes. A work in progress.

The golden orb began its solemn descent into a hazy horizon. Streaks of copper and rust rippled on the water as the sky turned into shades of peach, orange, magenta, crimson, and lavender.

The fresh salty air was heady — a cocktail of oxygen and the fragrance of wildflowers and wet grass.

The heart felt a sharp sting, a tight tug. The minutes ticked ever so slowly as the sun vanished while the moon rose from behind.

It had been so long since one had seen the phenomenon of simultaneous sunset and moonrise. A splendid synchronicity in nature.

Twilight turned the sky into a velvet backdrop. The evening star twinkled close to the moon. The planets and stars aligned into constellations. The north star was brilliant.

The luminous moon ascended and bathed the scene with a silvery sheen. The radiance of reflection was gentle and soothing to the heart.

In the mind’s eye, one saw the image of the beloved ones who used to share the glorious sunsets, the dramatic evenings with Mars so close to Earth, the random shooting stars on the windswept cliffs. The briny aroma of the monsoon wind.

After the storm, there is hope for a new life and more dreams.

 

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

mavrufino@gmail.com

Businesses aren’t doing enough to address green skills shortages — report

REUTERS

MADRID — Businesses are failing to tackle a shortage of green skills among workers, risking delays in the transition to a lower carbon economy, a report prepared with the participation of Spanish renewable energy giant Iberdrola IBE.MC shows.

As the world transitions away from fossil fuels, a global lack of skills is emerging as a major hurdle holding back the development of greener industries.

“The green transition is threatened by business leaders’ failure to develop and source green skills,” the Green Skills Outlook report by Economist Impact and Iberdrola says.

The report, which includes a survey of 1,000 business leaders, looks at nine countries, including the United States, China, Britain and Spain, focusing on the energy, technology, infrastructure, transport and logistics sectors. 

It defines green skills as “the knowledge, competencies, values and attributes needed to develop and support a sustainable, low-carbon and resource-efficient society,” be it via technical skills, such as installing solar panels, or broader practices like corporate sustainability reporting.

While a vast majority of business leaders surveyed see skills as the main driver of the green transition, only 55% of them have put in place, or plan to, programs for their workers to get these skills.

“This leaves a large fraction of the workforce without crucial skills training, which risks obstructing progress in the green transition,” said the report.

Overall, 62% of respondents expect such bottlenecks to delay the transition, and many respondents want governments to pitch in with grants or tax relief for companies investing in green skill programs, as well as funding for educational courses.

The research found a majority of businesses seeing more opportunities than challenges in the transition, expecting it to create more jobs than it will destroy.

Estimates by the International Energy Agency show that clean energy could create 30 million new jobs by 2030, while 13 million jobs are seen at risk in industries tied to fossil fuels.

“Skills and labor are the real key to transitioning to a greener economy and lowering carbon emissions,” said Iberdrola Executive Chairman Ignacio Galan, whose firm has deployed a number of programs for that purpose and teamed up with shipbuilder Navantia to help it diversify into offshore wind farms. — Reuters

PH1 World Developers seen ripe for IPO by 2025

REAL ESTATE developer PH1 World Developers, Inc. (PH1) is expected to be ready to go public as early as 2025, according to its parent company Megawide Construction Corp.

“Around 2025 or 2026, PH1 will be ripe [for initial public offering],” Megawide Chairman Edgar B. Saavedra told reporters on Wednesday.

Listed infrastructure company Megawide acquired PH1 from Citicore Holdings Investment, Inc. in July for P5.2 billion to tap the properties market, as it aims to target affordable housing in the below-middle-income and middle-income levels.

If realized, PH1 would be Mr. Saavedra’s fourth publicly listed company.

According to Mr. Saavedra, PH1’s earnings before interest, taxes, depreciation, and amortization or EBITDA is seen to hit about P5 billion by then, higher than the P2 to P3 billion EBITDA logged by Megawide.

He said that Megawide usually has high revenues but low margins when compared to PH1’s real estate business.

“Our business model is we normally do joint ventures so that it won’t be heavy in terms of capital. But when we have an IPO (initial public offering), it would change because the fundraising would be easier,” Mr. Saavedra said.

He also said that PH1 currently has about five projects and is expected to launch two projects every year.

“By 2026, we should have eight to ten projects with an order book of ten years. The inventory of units to sell will be valued at P200 billion in ten years,” Mr. Saavedra said.  

“When we launch projects, our medium-rise developments are usually big with a minimum of five to ten projects,” he added.

In October, PH1 introduced two projects in the greater Manila area worth P10.6 billion: the horizontal housing Northscapes San Jose Del Monte in Bulacan and the high-rise development Modan Lofts Ortigas Hills in Taytay, Rizal.  

The real estate developer also has other vertical developments such as The Hive Residences in Taytay, Rizal, as well as the My Enso Lofts condo in Quezon City.

On Thursday, Megawide shares dropped by one centavo or 0.30% to P3.30 apiece while CREIT stocks rose by two centavos or 0.75% to P2.68 each. — Revin Mikhael D. Ochave

ECB faces bumpy road to low prices as wages rise

REUTERS

FRANKFURT — Workers in Europe are hoping this year’s pay round will help restore incomes eroded by higher prices, but the expected boost to their purchasing power could hamper the European Central Bank’s efforts to bring inflation back to target.

The ECB has singled out wages as the single biggest risk to its one-and-a-half-year crusade against inflation. It expects salary growth across the euro zone of 4.6% this year, far more than the 3% it considers consistent with inflation at its 2% target.

Higher wage settlements would be a risk to interest-rate cuts that financial markets are betting will start in April.

“We see a path to 3% (wage growth) but it will be a bumpy road,” Reamonn Lydon, an economist at the Central Bank of Ireland and one of the minds behind the popular Indeed Wage Tracker, said in an interview.

Pay hikes increase costs for companies and boost household income, both factors that might push up prices and require the ECB to keep rates high.

Unions see a combination of gradually cooling inflation, low unemployment and fat corporate profit margins as their best and possibly last shot this economic cycle at restoring workers’ living standards.

And after seeing their real wages drop by roughly 5% in 2022 to 2023 — and decades in which labor has lost its leverage — wage-earners are ready to fight. US giants Tesla and Amazon are among companies already grappling with strikes in Europe.

Unlike in the United States, there is no real-time wage data for the 20-country euro zone.

But the Indeed Wage Tracker, which measures salaries advertised on that website, is closely watched by the ECB as an indicator of future trends. It ticked higher in December to 3.8% from 3.7%, although that was well below a peak of 5.2% in October 2022, when inflation was at its peak.

Lydon and Indeed’s Pawel Adrjan said December’s increase was probably driven by new wage deals, an effect they saw continuing in early 2024 as more agreements are struck and minimum wage increases kick in.

DEALS
Among recent settlements, wages rose by 4.5% for employees at Spanish stores of Carrefour SA and IKEA, 5% at French energy major TotalEnergies and 6.6% for Dutch rail workers. French Uber drivers’ minimum hourly rate rose 17.6%.

Minimum wages were meanwhile lifted by 3.4% in Germany, 3.8% in the Netherlands and 5% in Spain.

“Everything points to a return to real wage growth,” said Martin Hoepner, a professor at the Max-Planck-Institute for the study of society in Cologne, Germany.

Emboldened by worker shortages that have only started easing, labor unions hope to reverse a trend of falling membership that accelerated with globalization in the 1990s.

Employees at French state-owned power group EDF are demanding a 6% wage increase or they will go on strike while some German rail workers turned down an 11% rise, spread over time, because they wanted a shorter working week.

Some Amazon workers in Spain staged walkouts during the crucial holiday season and Tesla has faced blockades in Nordic countries aimed at making it sign a collective bargaining agreement in Sweden.

“At the moment the economic conditions are obviously conducive to strengthening the unions’ bargaining position,” Torsten Mueller, a researcher at the trade union institute, said.

But Lucio Baccaro, also a professor at the Max Planck Institute, said such “wage militancy” could backfire if it caused the ECB to keep interest rates higher to curb demand.

“If a wage-price spiral is triggered, or if the central bank fears that it is, it will intervene to cool off the economy,” he said.

Mr. Baccaro advocated smaller but tax-free, one-off increases like those deployed by Germany, which are set to expire at the end of this year, adding they could be financed by taxes on excess corporate profits.

So far there are few signs of a wage-price spiral, as ECB policy maker Mario Centeno pointed out.

And most economists expect companies to absorb the higher wage costs this time – not least because of the overall stagnant outlook for the European economy.

“Given that aggregate demand is more depressed now than in 2022 to 2023 also due to the rate hikes, firms might be more willing to allow this to happen to boost sales,” said Mattias Vermeiren, a professor at Ghent University.

But the latest wage settlements have strengthened investors’ confidence that higher wage growth is here to stay. With rising trade protectionism reducing companies’ access to cheaper labor markets, that points to higher inflation and rates.

“Labor is taking a greater share of the pie again,” Janus Henderson’s European equities portfolio manager Tom O’Hara said.

“Labor and, related to that, deglobalization are two of the strongest reasons why we think inflation persists in a way that means rates can’t just pivot back to zero.” — Reuters

Malaysia court charges filmmakers for ‘wounding religious feelings’

MENTEGA TERBANG (2021) — IMDB
MENTEGA TERBANG (2021) — IMDB

KUALA LUMPUR — A Malaysian court on Wednesday charged two local filmmakers for intentionally “wounding the religious feelings of others” through their film, their lawyer said, in a move condemned by rights groups as a threat to freedom of expression in the country.

The director and producer of local film, Mentega Terbang, were charged under the penal code and face a one-year jail sentence and fines if convicted. The duo, Khairi Anwar and Tan Meng Kheng, pleaded not guilty to the charges.

Their lawyer, N Surendran, said the charges send a “chilling message” to the local film industry and filmmakers throughout Malaysia.

“The government must take responsibility and the attorney-general ought to withdraw the charges,” Surendran said.

Mentega Terbang was first released on a video streaming platform in 2021 but was banned in Malaysia by authorities last September after it was criticized for containing scenes that were said to go against Islamic religious teachings.

The film follows a young Muslim Malay girl who grieves the death of her mother by researching the teachings of other religions on life after death.

The rise to power of Malaysia Prime Minister Anwar Ibrahim’s progressive and reformist coalition in November 2022 had renewed hope of greater freedom of speech in the country. However, Mr. Anwar’s administration has faced accusations of back-pedaling on its promises to protect free speech, following a clampdown on content pertaining to racial and religious sensitivities.

The government has denied allegations of stifling dissent, saying it wanted to curb harmful content that touched on race and religion, both of which are sensitive issues in Muslim-majority Malaysia.

Rights groups Article 19, Amnesty International and Human Rights Watch have condemned the charges against the filmmakers as “outrageous and unacceptable,” calling for the charges to be immediately and unconditionally dropped.

They also urged the Malaysian government to end the criminalization of religious offense and the use of “other vague provisions in the law” to curtail freedom of expression.

“This sort of crude political pandering at the expense of human rights is precisely the sort of thing that Mr. Anwar accused previous governments of doing when he was in the opposition but now, he’s hypocritically changed his tune after assuming power, and using the same censorship and persecution,” said Phil Robertson, deputy Asia director of Human Rights Watch. — Reuters

The basics of talent management

How do we attract and retain the best and brightest for the long term? We have a full-service human resources (HR) department incharge of the entire personnel process — from hiring to firing. We’re also involved in training, compensation, labor relations, and total rewards, among others. So, what are we missing? — Jamaican Salad.

Well, I don’t know. I’m not privy to your HR operations. The best thing that you can do aside from consulting me is to read a lot and be aware of the best practices in your industry. Failing that, it’s time to think outside the box. Try major organizations who may be willing to share their best practices.

Unfortunately, that’s one big challenge as they may not be open to sharing their model practices. This is why you should join professional organizations like the People Management Association of the Philippines and the Employers Confederation of the Philippines. They can help you stay abreast of the latest trends and developments in HR and industrial relations.

Another option is to join organizations in your own business community, export processing zone or similar locations. However, this may take a lot of your time, effort and a little money, with the biggest issue coming from your boss, who may not like the idea. Your initiative may be misinterpreted to mean you’re only interested in expanding your network in the hope of getting a lucrative job somewhere.

EMPLOYER BRANDING
Another issue when you try to attract and retain hardworking employees is to keep tabs on what your current and former employees, even job applicants, say when they’re outside of your organization. It’s easy to keep track of this. Check out what people think about your online presence. Then improve on it. That’s being conscious of employer branding.

What makes your company special in the eyes of employees, the customers, and the general public? Is it training? A competitive pay and perks package? Management style?

What is your turnover rate? Absenteeism and punctuality level? How about labor productivity and the image of your product or service among customers? In other words, how would you define the company’s reputation and popularity? Note however, that we’re not talking here of high salary and benefits.

Even if you’re giving the people the most competitive rate in the job market, applicants and your workers would still reject you if your line leaders have a toxic style. No matter what you do, you should focus on knowing how your company is perceived outside and inside the organization.

TALENT MANAGEMENT
In addition to employer branding, you should understand talent management and how to fully manage the Knowledge, Attitude, Skills and Habits (KASH) of all employees. Talent management means a comprehensive coverage of all HR policies and procedures to attract, develop, motivate and retain high-flying performers.

You need to be proactive in doing KASH. You must know your people very well, including their strengths, weaknesses and career aspirations. And how they must contribute to the attainment of the overall business goals. Take stock of the following basic elements:

One, keep abreast of employee morale and satisfaction levels. This requires an annual organizational climate survey of all employees, who should be allowed to respond anonymously. You can do this once every two years with dedicated and talented line leaders, supervisors, and managers who can help detect even minor employee issues.

Other two-way communication channels include the casual, one-on-one engagement dialogue between a boss and direct reports. This is best completed when done with the help of other platforms like an employee suggestion scheme and quality circles or kaizen problem-solving teams. 

Two, conduct a training needs analysis. However, not all work performance deficiencies can be easily cured through training. First of all, you must work back to include the overall corporate strategy as the central point in assessing employee training needs. There must be a link between the company’s strategies that include vision, mission and value statements.

The activity involves identifying KASH aspects that need to be emphasized for employees in order for them to complete their tasks. This describes what needs to be done in the job and what qualifications are necessary to accomplish them.

Three, maintain an employee KASH board in every department. A KASH board displays the competencies of each worker as required by a particular department. It contains employee names, job titles, photographs and the KASH profile of each worker.

It includes a circle divided into four parts depicting an employee competency level. Each part represents Knowledge, Attitude, Skills and Habits. If an employee is deemed fully competent, with all four parts darkened. Conversely, if only one or two are darkened, that means a worker must work hard to be deemed fully qualified within a certain time period.

 

Bring Rey Elbo’s leadership program on Superior Subordinate Supervision to your management team. Chat with him via Facebook, LinkedIn, X (Twitter) or e-mail elbonomics@gmail.com or via https://reyelbo.com

Bridging gaps in key sectors needed to boost competitiveness — JAZA

ADDRESSING gaps in agriculture, infrastructure, healthcare, and education is needed to enhance the country’s competitiveness, Ayala Corp. Chairman Jaime Augusto Zobel de Ayala (JAZA) said.

In his keynote speech at the Management Association of the Philippines inaugural meeting in Taguig City on Thursday, Mr. Zobel emphasized the need for collaborative efforts across institutions for “exponential growth and equitable progress” to position the Philippines as globally competitive in the next 40 years.

“To illustrate the scale of the challenge, the government aims to nearly triple income per capita to $11,000 by 2040, compared to just around $3,950 today,” Mr. Zobel said, emphasizing the significant gap compared to Singapore’s per capita income of $82,807 in 2022.

He identified gaps in agriculture, infrastructure, healthcare, and education as opportunities to create value, stressing the necessity for collective efforts to address challenges related to climate change, economic inequities, and elevating living standards.

He also acknowledged the challenges faced by the country’s agriculture sector due to persistent structural issues and expressed hope for increased private sector participation in addressing these challenges.

In terms of infrastructure, Mr. Zobel called for larger investments to make the Philippines more attractive, considering its relatively low foreign direct investment (FDI) compared to other economies in the region.

On the impact of the pandemic, Mr. Zobel underscored the need for improvements in healthcare capacity, including an increase in hospital capacity and a higher number of healthcare practitioners.

On education, he acknowledged a “creeping learning challenge” among young Filipinos and emphasized the importance of support and investment to enhance literacy, mathematics, and science performance.

“We note the tremendous contributions of various groups, such as Philippine Business for Education along this front. We are likewise dedicating capital in this sector, together with the Yuchengco Group, through iPeople,” he said. — Revin Mikhael D. Ochave