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Cosco Capital to acquire Matuno River Dev’t Corp.

LUCIO L. Co-led Cosco Capital, Inc. announced on Thursday the planned acquisition of Matuno River Development Corp. (MRDC), expanding its presence in the renewable energy sector.

In a disclosure to the stock exchange, Cosco Capital said it intends to acquire 9.18 million shares of MRDC. The company did not disclose the price.

“The intended transaction offers Cosco Capital the opportunity to enter into another profitable business within the renewable energy sector,” the listed company said.

“This strategic move will enhance its sustainability profile, demonstrate a commitment to environmental responsibility, while contributing to the country’s overall economic development,” it added.

MRDC is the developer of the 8.66-megawatt Matuno River Hydroelectric Power Plant in Bambang, Nueva Vizcaya. The power plant is covered by a hydropower service contract with the Energy department.

The power plant draws energy from the Matuno River, a tributary of the Magat Dam.

“This proposed acquisition will be an addition to the emerging renewable energy portfolio of Cosco Capital, Inc., as well as to its entire operating segment, generating more income for the company,” Cosco Capital said.

Cosco Capital said the shares will be paid through issuance of checks.

It added that the proposed acquisition will be submitted to the approval of the Philippine Competition Commission, if applicable.

Cosco Capital finalized its entry into the renewable energy sector in March after acquiring a 60% stake in Catuiran Hydropower Corp. for P551.88 million.

Catuiran operates an eight-megawatt hydropower plant in Naujan, Oriental Mindoro. The plant is covered by a renewable energy service contract with the Energy department.

On Thursday, Cosco Capital shares rose by 0.22% or one centavo, closing at P4.59 apiece. — Revin Mikhael D. Ochave

PHL banks’ nonperforming loans likely past peak, Fitch says

BW FILE PHOTO

PHILIPPINE BANKS’ nonperforming loans (NPL) may have already peaked amid an improving operating environment and expectations of benchmark interest rate cuts in the near term, Fitch Ratings said on Thursday.

“We believe that NPLs have already peaked in the Philippines. We’re actually forecasting for the major banks, for the impaired loan ratios to fall flattish this year for some of them,” Fitch Ratings Head of South and Southeast Asia Banks Tania Gold said in a webinar.

Ms. Gold said this outlook is mainly due to the “economic environment and then ratios declining next year on the back of lower interest rates.”

Latest data from the Bangjo Sentral ng Pilipinas (BSP) showed that the banking industry’s gross NPL ratio rose to 3.57% in May from 3.45% in April. This was also its highest in 23 months or since the 3.6% ratio in June 2022.

Soured loans rose by 3.1% to P495.67 billion in May from P480.65 billion a month earlier. Year on year, it jumped by 13.7% from P436.12 billion.

“Certain segments of the loan portfolio do have higher NPL ratios, but overall, we think that they think that they’ve been trending down with strong credit growth,” Fitch Ratings Head of Asia-Pacific Banks Jonathan Cornish said.

Fitch Ratings last month revised its outlook on the Philippine banking sector to “improving” from “neutral.”

“We revised the banking sector outlook to ‘improving’ from ‘neutral’ quite recently. This is really on the back of higher-for-longer interest rates, which means margin and interest income should hold up for longer than we previously expected,” Ms. Gold said.

Fitch also sees high net interest margins (NIM) amid increased unsecured lending.

“There’s even further upside if BSP reduces the deposit reserve requirements. To put some color on this, when we put the ‘neutral’ outlook for 2024 in the banking sector late last year, we were expecting a 7-basis-point (bp) NIM contraction, we’re now expecting a 7-bp increase,” she added.

BSP Governor Eli M. Remolona, Jr. earlier said they want to reduce big banks’ reserve requirement ratio to 5% from the current 9.5%.

The government’s infrastructure thrust will also drive loan growth, Fitch said.

Latest data from the BSP showed that bank lending grew by 9.6% to P11.91 trillion as of end-April from P10.87 trillion a year ago, its fastest pace of growth in 12 months.

“We saw some high NPLs during COVID, even on the mortgage side, so we’re watching to see how these unsecured loans season. However, all our issuer default ratings in the Philippines are driven by government support rather than the standalone ratings,” Ms. Gold added. — Luisa Maria Jacinta C. Jocson

London exhibition looks at Barbie’s design evolution over 65 years

LONDON — A new exhibition looking at the evolution of Barbie opens in London this week as the famed Mattel doll celebrates her 65th birthday this year.

Barbie: The Exhibition,” running at the Design Museum from July 5 to Feb. 23, features more than 250 items from the Barbie universe, including an array of dolls showing her changing appearance, design sketches, and dream houses.

On display is a first edition of the first Barbie released in 1959 with blonde hair, angled eyes, dressed in a black-and-white swimsuit, along with later models representing different races, hair textures and shapes.

Other “firsts” include a Black Barbie and one in a wheelchair. One section dedicated to career roles includes a police officer, scientist, doctor, presidents and a voter, while another focuses on Barbie’s long-term companion Ken, who was introduced in 1961.

“I hope that whatever your reason for coming to this show …, whether you’re a Barbie fanatic or whether you’re a Barbie sceptic, you come away with an appreciation of detailed research and the rigorous design thinking that goes into the making of Barbie,” curator Danielle Thom said in an interview.

“I do hope that people come away having learned something about … how this brand has come into being and managed to dominate the toy market for such a long period of time.”

The exhibition coincides with Barbie’s 65th birthday this year and follows on the huge success of last year’s Barbie movie starring Margot Robbie, which grossed $1.4 billion at the global box office.

“Barbie’s resonance and culture has never been larger, more prominent,” Kim Culmone, senior vice-president of design for Mattel, said. — Reuters

A private equity rebound remains elusive

DC STUDIO-FREEPIK

ASIA-PACIFIC private equity (PE) markets plunged again in 2023 as investors fretted about slowing economic growth, high interest rates, and volatile public stock markets. Deal value fell to $149 billion, extending the dealmaking slump that began in 2022. Exits fell sharply, and fund-raising declined to its lowest level in 10 years.

Investors remained especially cautious of buying companies in Greater China, and a murky economic outlook affected the entire region. Southeast Asia deal value fell 39% compared with the previous five-year average and exit value declined 58% over 2022.  In the first quarter of 2024, Southeast Asia deal value fell to $1.4 billion, down 46% from the previous quarter.

Japan was the only market to buck the trend, with a rise in deal activity. Investors found comfort in Japan’s deep pool of target companies with performance improvement potential, its stable regulatory environment, and persistently low interest rates.

Technology was again the largest industry sector in terms of deals and exits across the region. But investors continued shifting away from riskier, more speculative assets to defensive assets, including manufacturing companies and firms linked to the energy transition. The energy and natural resources sector was the only investment area in which deal value and volume grew in 2023. Deal value rose to $22 billion, up 7% versus the prior five-year average. In Southeast Asia, several large deals boosted healthcare’s proportion of overall deal value.

For the first time since 2017, buyouts represented the largest proportion of Asia-Pacific deal value, pushing growth deals to second place. Buyouts accounted for 48% of deal value, up from the prior five-year average of 32%. Growth deals represented 41% of deal value. However, in Southeast Asia, growth capital continued to account for 70% of deal value in 2023.

Asia-Pacific median deal multiples — the ratio of enterprise value to EBITDA — fell sharply in 2023 to 10.1 from 14.8 a year earlier, according to data reported at year-end. In Southeast Asia, the median multiple dipped slightly to 11.6%.

Facing the sixth year in a row of low or negative net cash flow, limited partners (LPs) put new allocations largely on hold. Investors focused on funds with demonstrated success, exposure to preferred markets, and differentiated strategies.

By year-end, signs of market improvement began to appear, but the timing of a recovery remains unclear. Inflation rates began falling in most markets after spiking in 2022. Interest rates in most Asia-Pacific markets are forecast to decline in late 2024 or 2025. And some currencies that depreciated against the US dollar in 2022 and 2023 started to recover.

Returns were a bright spot in 2023, reconfirming that private equity is still an attractive investment class, far outperforming public markets over 5-, 10-, and 20-year horizons. And the volume of dry powder remains at a record level.

New sectors hold promise once private equity rebounds: Disruptive innovations like generative AI are creating fresh opportunities. Bain research shows most general partners (GPs) are using generative AI to mitigate risk, enhance operations, and improve the performance of portfolio companies. GPs already are scouting for generative AI assets coming to market and are assessing how generative AI can be useful during diligence on potential targets.

LPs are still optimistic about some countries within the region. Japan ranked among the top three developed markets for PE investment opportunities over the next 12 months, according to Preqin’s 2023 investor survey. India and Southeast Asia ranked best in terms of emerging market investment opportunities.

The two-year drop in dealmaking has put GPs under growing pressure to exit aging investments and return cash to LPs. The most common reason that efforts to sell portfolio companies have failed is the buyer and seller cannot agree on the valuation. To improve their odds, leaders are shifting their attention to portfolio management and exit planning. Bain research shows that developing a pre-sales strategy and a compelling equity story can help funds attract buyers and exit successfully despite difficult market conditions.

In a turbulent year for private equity, many leading funds also started to explore alternative asset classes, including infrastructure and private credit, as a key source of growth. Both of these asset classes have room to grow in the Asia-Pacific region.

In our experience, diversification is challenging. Those who get it right build needed capabilities and invest close to their core business.

 

Usman Akhtar is a senior partner and head of Southeast Asia Private Equity practice at Bain & Company based in Singapore. Sebastien Lamy is a senior partner and head of Asia-Pacific Private Equity practice based in Singapore, and Lachlan McMurdo is a partner based in Melbourne.

Workers in PHL reporting mental health issues at rate exceeding global average

UNSPLASH

SOME 87% of professionals in the Philippines reported experiencing work-related mental health issues, far exceed the global average of 76%, insurance company AXA said.

The issues cited included at least one of the effects of their work environment: fatigue, trouble sleeping, stress and anxiety, loss of interest, difficulty concentrating, loss of self-confidence, a feeling of worthlessness, and appetite or eating disorders.

Half of respondents reported experience more than four of the effects, against the global rate of over 10%.

“Despite evidence indicating work-related mental health issues, most employees don’t perceive work as the main source of their difficulties. In fact, fewer than a quarter attribute their mental health challenges to their jobs, highlighting a significant disconnect from the actual causes of their struggles,” AXA said in a statement.

AXA added twhat the effects of poor mental health in the workplace lead to “significant disengagement.” It said 85% of workers in the Philippines are thinking of stepping back from work, while 68% are considering quitting or changing jobs.

Over 55% of respondents said they disengage by taking training courses for new jobs, 54% choose to work remotely to escape the workplace, while half take sick leave. It added that 31% have called in sick due to mental health issues.

Burnout is a key issue for employees, with 33% saying they experienced it in 2023. This is above the global average of 20%. Only 22% of employees who experienced this said they sought professional help.

The study found 64% of Philippine respondents are more likely to seek support from their supervisors, well above the global average of 46%.

Over 70% said their companies are providing mental health support, compared to 57% globally.

This brings the satisfaction rate of Filipino workers to 68%, though it dips to 58% for those experiencing burnout.

“Given the variety of mind health problems and difficulties encountered in the workplace, businesses should have a diverse range of solutions on their radar to meet everyone’s needs,” AXA said.

Almost half of respondents expect their employers to offer mental health workshops, 43% expect external consultation services, and 38% expect to be granted mental health days.

The study added that 49% of respondents in the Philippines expressed a strong preference for mental health education, against the global average of 36%.

“Prioritizing the health of employees and recognizing how critical it is to ensure they maintain a positive state of being in and out of the workplace is a business imperative,” Sharon C. Hernandez, chief human resources officer of AXA Philippines said in a statement. — Chloe Mari A. Hufana

Why companies need an AI policy

The integration of artificial intelligence (AI) into business operations is rapidly transforming industries, creating new opportunities, and posing significant challenges. As AI systems become more advanced and ubiquitous, the need for companies to develop comprehensive AI policies has become critical. These policies serve as a framework for responsible AI deployment, ensuring that the technology is used ethically, legally, and effectively. The importance of having an AI policy is underscored by the actions of several leading organizations that have already established such guidelines.

Firstly, AI policies are essential for managing ethical considerations. AI systems can make decisions that have profound implications on people’s lives, such as in hiring processes, loan approvals, and law enforcement. Without proper guidelines, these systems can perpetuate or even exacerbate biases and discrimination. An AI policy helps companies identify potential ethical issues and implement measures to mitigate them. For instance, Google has developed its AI Principles, which outline objectives such as avoiding unfair bias, being accountable to people, and ensuring privacy and security. These principles guide Google’s AI development and use, aiming to prevent harm and promote fairness.

Secondly, AI policies are crucial for legal compliance. The regulatory landscape for AI is evolving, with governments around the world introducing new laws and regulations to govern its use. Companies need to navigate this complex environment to avoid legal pitfalls. An AI policy provides a structured approach to compliance, helping organizations adhere to relevant regulations. For instance, the European Union’s General Data Protection Regulation (GDPR) includes explicit rules governing automated decision-making and profiling. Companies operating in the EU must ensure their AI systems comply with these rules, and having a robust AI policy can facilitate this process.

Moreover, AI policies help safeguard user privacy and data security. AI systems often rely on large datasets to function effectively, which raises concerns about how this data is collected, stored, and used. A well-defined AI policy addresses these issues by establishing standards for data governance, including data anonymization, consent, and access controls. Microsoft’s AI principles emphasize the importance of privacy and security, committing to stringent data protection measures and transparent data practices. This safeguards users and at the same time fosters trust among customers and stakeholders.

AI policies also play a vital role in fostering transparency and accountability. As AI systems and platforms become more complex, understanding their decision-making processes becomes increasingly challenging. This opacity can lead to mistrust and skepticism among users and the public. An AI policy that promotes transparency can help demystify these systems. For instance, IBM has published its AI Ethics and Principles, which include commitments to transparency and explainability. IBM aims to ensure that AI decisions are understandable and that there is clarity about how data is used, and AI models are trained.

Furthermore, AI policies encourage innovation and sustainable growth. By providing clear guidelines, these policies can help companies navigate the ethical and legal challenges associated with AI, allowing them to focus on innovation and development. A structured approach to AI can lead to the creation of more reliable and effective AI solutions. For example, Accenture’s Responsible AI framework is designed to foster innovation while ensuring ethical use of AI. This approach balances the need for cutting-edge technology with the imperative to act responsibly.

In addition, AI policies support workforce preparedness and development. The rise of AI is reshaping job roles and skill requirements, necessitating new training and education programs. An AI policy can include strategies for workforce development, ensuring employees have the skills needed to work with AI technologies. This is essential for maintaining a competitive edge and for mitigating the potential displacement of workers. For instance, Deloitte’s AI Institute focuses on understanding the impact of AI on the workforce and developing strategies to upskill employees, thereby supporting a smooth transition to an AI-driven workplace.

The importance of having an AI policy is also reflected in the initiatives of industry consortia and standard-setting bodies. Organizations like the Partnership on AI, which includes members such as Amazon, Facebook, and Apple, work to establish best practices and standards for AI. These efforts underscore the collective recognition of the need for responsible AI development and deployment.

In the end, the necessity for companies to adopt an AI policy cannot be overstated. Such policies provide a framework for addressing ethical concerns, ensuring legal compliance, protecting privacy and data security, fostering transparency and accountability, encouraging innovation, and supporting workforce development. By adopting and adhering to AI policies, companies can harness the transformative potential of AI in a responsible and sustainable manner, ultimately contributing to societal well-being and progress.

The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX

 

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

FedEx to expand facility at Clark airport

FEDERAL EXPRESS Corp. (FedEx) plans to expand its facility at Clark International Airport (CIA) to accommodate increasing demand from small- and medium-sized enterprises and large freight shippers seeking access to global markets, the company announced on Thursday.

The company has entered into an agreement with Luzon International Premiere Airport Development (LIPAD), the operator of CIA, to initiate the expansion project, FedEx said in a statement.

Upon completion, the expansion will increase the size of the company’s current 17,000-square-meter facility twofold.

The facility currently boasts a sorting capacity of 9,000 parcels per hour and includes a 630-square-meter area dedicated to freight handling.

“The new facility is set to offer enhanced capabilities that will benefit local businesses looking to amplify their presence in international markets and support the growing demand for e-commerce, freight, and cold-chain shipments across the Asia-Pacific region,” said the company.

FedEx also said that the expansion encompasses the establishment of additional aprons and taxiways, aimed at enhancing cargo handling capabilities.

“These developments are expected to bring economic benefits to the northern Luzon region, providing job opportunities for the local community and serving as an economic stimulus in the region,” it added.

FedEx established its presence in Clark in October 2021, marking an extension of its 40-year history in the Philippines. — Justine Irish D. Tabile

Roger Waters busy on new album, says Pink Floyd reunion ‘not in me’

ROGER WATERS — COMMONS.WIKIMEDIA.ORG

LONDON — Roger Waters has dismissed the idea of Pink Floyd reuniting on stage again, saying he is “busy doing other things” including working on a new album and writing a memoir.

In an interview with Reuters, the guitarist and singer-songwriter said he loved his time in the rock group he co-founded in 1965 but had no plans to perform again with his two former surviving bandmates, drummer Nick Mason and guitarist David Gilmour.

Mr. Waters, the creative force behind albums like The Dark Side of the Moon and The Wall, left Pink Floyd in 1985 following personal and creative differences.

He was embroiled in legal wrangles over use of the group’s name as his former bandmates continued without him.

He and Mr. Gilmour have been at odds for years in one of rock’s most famous feuds, clashing more recently on social media over the Russia-Ukraine war.

Asked if the three might ever perform together again, Waters said: “No, whatever for?”

He said the idea of a reunion was like a nostalgic need in some people but added “it’s not in me.”

Pink Floyd last performed together at the Live 8 charity concert in London in 2005, when Mr. Waters joined Mr. Mason, with whom he is friendly, Mr. Gilmour, and keyboardist Richard Wright on stage.

“We did it. And I don’t regret it because Rick (Wright) was still alive, and I’m so glad that we had the opportunity to at least do three or four numbers,” Mr. Waters said.

“We played reasonably well, and the people liked it. And so I’m really, really glad. Do I want to do anything like (it)? No, I don’t, particularly as there’s only three of us left alive.”

Mr. Wright died in 2008. Original frontman Syd Barrett, who left the band in 1968 due to his erratic behavior brought on by drug abuse, died in 2006.

Mr. Mason told Reuters in May he would be open to a reunion but that there was no such appetite from Mr. Waters and Mr. Gilmour.

“I’m busy doing other things… it has nothing to do with any rancor or anything. People are different,” Mr. Waters said.

“David and I are very, very different people and that’s okay.”

Mr. Waters, 80, said he currently was working on his new album, called The Bar as well as a memoir.

“I’ve been working on (it) for a couple of years… and I’m in sort of an editing process with that now. So, I’m a busy chap,” he said. — Reuters

Name recall and art

THE BURNED Manila Central Post Office. — CRECENCIO I. CRUZ

The spirit of creative genius is in every work. An artwork is a child of the mind or the spirit. The artist is a mortal human being, but a good artwork is immortal.

Woody Allen, the witty comedic actor, film director and producer, commented dryly, “I don’t want to achieve immortality through my work… I want to achieve it by not dying.” Greek physician Hippocrates (c. 440 BC – 377 BC) once wrote, “Life is short, but art is long.”

Every successful individual – in politics, education, business, science, the arts — desires recognition. The scientist and inventor, for example, work persistently and intensely to discover the “eureka” formula and “aha” gadget that would make a lasting impact on the world.

Many politicians use public infrastructure — airports, bridges, monuments, highways, dams, town halls and cities — to achieve fame. Their faces and names are emblazoned on billboards at the construction site. Although public funds are used, they claim credit for the projects. It is a not-so-subtle hint to the potential new voters. For name and face recall.

Endowments from private or corporate foundations are given to universities and schools, which often name buildings after them as a way of honoring the illustrious alumni. In some cases, ego gratification is the motive of donors who are not alumni of that school.

Sponsors for specific disciplines and research donate professorial chairs, classrooms, auditoriums, libraries and chapels. This is the best way to help the institution and support dedicated professors who need adequate compensation and upgrade the education programs.

Skyscrapers, elite clubs, headquarters, and churches have plaques engraved with the names of the founders, directors, and charter members. Almost every street, road, highway, and lane is named after a hero, a famous individual, or a pseudo-celebrity. There are just too many new street names that change as a result of having more people to honor than streets. No wonder people get lost in our city. (The signage is not clear in some parts.)

There are special exceptions that truly deserve credit, such as those in old European capitals. For example, the Florentine families that dominated the Renaissance period in the 15th century, such as the Medici family — bankers, aristocrats — who were the most important art patrons and benefactors. Six centuries later, Florence is still a center of the arts, with every piazza, church, and open space filled with precious artworks, public monuments, private sculptures and paintings, thanks to patrons. The Uffizi Gallery holds a vast trove of paintings by the masters — Leonardo, Michelangelo, Raffaello — again thanks to patrons.

Venice and Milan and, of course, Rome are also filled with works so grand and impressive. The Vatican has the Sistine Chapel with Michelangelo’s breathtaking murals and frescoes — Genesis and The Last Judgment. Emperors, kings and the Church financed the magnificent monuments and sculptures, among them La Pieta and Moses. It was the patrons’ collective vision to preserve the artistic spirit of the era.

Behind the grand gesture was the egoistic desire to perpetuate themselves as great cultural and historical icons.

Through the centuries, the practice has continued in different countries and in diverse ways.

In the Philippines, we can be proud of our stunning structures — historic churches and cathedrals. There are marvelous pre-war buildings designed and built in Manila such as the Post Office (that was burned recently and is being rebuilt), the old Senate building that is now the National Museum of Fine Arts, and two other buildings in the complex, the National Museum of Natural History and National Museum of Anthropology.

But in recent years, the practice of naming buildings, airports, streets, and public spaces has been taken to the extreme. Some publicity-conscious personalities want their images or busts and plaques displayed.

The worst ego-boosting visual pollutants are the distracting, unsightly billboards that sprout along the highways.

Are these commercial monstrosities going to be our pathetic form of public art? Just asking…

On a lighter note, there was a recent exhibition of contemporary art and a live event which were a collaboration between French and Filipino artists KATRE, NEBAY, QUICCS, TRIP63. Called NOW SPRAYING, it was spearheaded by the Metropolitan Museum (a.k.a. The M) in BGC and the Embassy of France, and was a fun, creative form of expression to embellish the exterior of the museum building. That was a delightful afternoon event for the spectators and the public.

Bravo, Ambassador Marie Fontanel and Cultural Counsellor Marc Piton of the Embassy of France and The M president Tina Colayco!

 

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

mavrufino@gmail.com

Screening job candidates efficiently

We are hiring at least 300 workers for our projected expansion early next year. What would be the most efficient and effective approach to take in evaluating job candidates? — Long Shot.

Many of today’s recruiters don’t realize there are various approaches you can take in evaluating job applicants. Such lack of awareness can be problematic in the long term, to the point of adversely affecting the organization’s performance.

For one thing, there’s no one-size-fits-all solution to hiring candidates. Much depends on the nature of the job and sensitivity of the position. If you’re advertising for non-management jobs, the standard approach is to administer a standard intelligence quotient (IQ) test, which you can get for free from the internet, although the number of questions may be limited.

Sometimes, organizations rely on the recommendation of manpower agencies, which are not usually equipped with the right internal hiring talent and tools which must go through a certain special process. Many times, they bypass the process because they want their candidates to be accepted right away by their clients, who are in a rush to get people on board.

RIGHT APPROACH
So, what’s the right approach? As I said, non-management applicants must pass the IQ test as a first step. If they pass the test, they can proceed to a series of interviews by a hiring clerk in human resources (HR), a ranking member of HR, and an official representing the requesting department, in that order.

By using the following process, you should have a better understanding of how to identify potential employees who could help you in your expansion:

First step: Screening interview. Assign your hiring clerk to perform an online interview. Normally, this takes only 30 minutes. This short-duration interview must test the veracity of the applicant’s qualifications, including educational attainment, employment history, and other basic requirements as identified by the requisitioning department.

When an applicant gives at least three “wrong” answers, the HR clerk must disengage diplomatically. This is efficient as you can schedule at least 20 candidates in one day to determine which one among them has the basic qualifications to warrant an in-depth, face-to-face interview with a ranking HR official. This process should not be repeated by other interviewers.

Second step: Face-to-face interview. Those who pass the online screening process may proceed to be interviewed by an HR official. The questions asked are open-ended, situational, and pertinent to the job. If a job vacancy is for an accounting clerk, one question that may be asked is: What accounting standards and procedure that are difficult to perform? Why?

Further, when choosing the situational approach, HR must assess the candidates’ answers based on certain standards like resourcefulness, conceptual ability, logic, and communication skills, among others.

Third step: Targeted interview. This is to be done by an official of the requesting department. In this case, the interviewer must define the key qualifications which are imperative for an applicant to perform the job successfully. The interview questions are designed in advance and should be asked of all applicants.

To ensure the process is objective, whoever is tasked to conduct the interview must use a standard form that assigns weight or value to each question. The form must allow some flexibility to accommodate questions that will isolate the most interesting qualities of an applicant that cannot be found in his or her resume.

To do this, the following questions may be asked: If we talk to your former boss, what do you think the boss would say about you and your performance? What were your most significant accomplishments with the help of your boss? How would you describe your boss’s management style?

BIAS FOR THE FUTURE
At times, the interviewers may be tempted to hire an applicant without completing the three-stage interview process. That happens when the requesting department finds someone who appears to be unique from other applicants, when in fact, they are not.

This is the halo effect, a type of bias which colors our positive and overall impression of a candidate while rejecting that person’s major flaws. The challenge, therefore is how to manage a job vacancy that may become obsolete in the future due to various factors, like the advancement of technology.

The important consideration, therefore, is to screen candidates based on the future needs of the organization, including the possibility of performing certain jobs with fewer people on board.

 

Bring Rey Elbo’s leadership program called “Superior Subordinate Supervision” to your management team. Contact him on Facebook, LinkedIn, X or e-mail elbonomics@gmail.com or via https://reyelbo.com

Banks to publish exposure to crypto assets from 2026

MICHAEL FÖRTSCH-UNSPLASH

LONDON — Global banking regulators have approved templates for banks to disclose their exposure to crypto assets from January 2026, they said on Wednesday, a year later than originally indicated.

“These disclosures aim to enhance information availability and support market discipline,” the Basel Committee on Banking Supervision said in a statement.

The committee, made up of banking regulators from the world’s main economies who commit to applying agreed standards, discussed the prudential or impact on capital of tokenized deposits and stablecoins, a cryptocurrency backed by an asset such as the dollar.

Based on current market developments, risks from these are “broadly captured” by existing Basel standards, an indication that additional capital rules are not being planned for now.

“The Committee will continue to monitor this area and other developments in the crypto asset markets,” the statement added.

Basel members also agreed to take a more hands-on approach to dealing with risks for banks from their increasing use of third parties, such as for cloud computing to run key activities.

It also updated on a now closed public consultation into new rules for banks to disclose their climate-related financial risks under so-called “Pillar III” of their capital rules.

“It agreed to continue to work on finalizing such a framework as part of its holistic approach to addressing climate-related financial risks,” the statement said. — Reuters

The Marketplace opens at Opus Mall QC

PREMIUM supermarket The Marketplace has opened a branch at Opus Mall in Quezon City.

This expansion aims to capture upscale consumer segments with premium meats, exclusive brands, a diverse selection of cheeses, and top-tier wines from global vineyards, the company said on Thursday.

Customers can explore a brand shop featuring labels such as Casino, Waitrose, El Corte Inglés, No Brand, and Meadows, it said.

Specialty offerings include customized charcuterie with cheeses and deli selections from around the world.

The Marketplace Opus also features a bar in partnership with the Philippine Wine Merchants.

The company said it uses carbon dioxide refrigeration to reduce emissions and repurpose heat for building heating.

Located at Robinsons Land Corp.’s Bridgetowne Estate, Opus Mall spans 50,000 square meters, offering shopping, dining, and entertainment. — Revin Mikhael D. Ochave