Fed meeting, inflation outlook to drive trading

April 28, 2024 | 9:00 pm

PSE-building-090523 — The lobby of the Philippine Stock Exchange in Taguig City, Sept. 30, 2020. — REUTERS

SHARES may continue to move sideways this week as investors await the US Federal Reserve’s policy meeting and the release of Philippine April inflation data, which could both affect the direction of local benchmark interest rates.

On Friday, the Philippine Stock Exchange index (PSEi) rose by 0.81% or 53.87 points to 6,628.75, while the broader all shares index climbed by 0.71% or 24.78 points to 3,492.75.

Week on week, the PSEi also climbed by 2.88% or 185.75 points from its 6,443 close on April 19.

The Philippine stock market saw “calmer” sessions last week following the recent rout as investors look ahead to the Fed’s April 30-May 1 policy meeting, online brokerage 2TradeAsia.com said in a note.

For this week, the US central bank’s meeting will be in the spotlight as investors await hints on their next move, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Investors are… expected to watch out for policy outlook clues from the Fed’s meeting [this] week following the latest macroeconomic data from the United States wherein first-quarter gross domestic product grew below expectations, but first quarter personal consumption expenditures inflation accelerated compared to the preceding quarter,” Mr. Tantiangco said.

The US central bank last month kept its target rate at the 5.25%-5.5% range for a fifth straight meeting after raising interest rates by a cumulative 525 basis points from March 2022 to July 2023.

The Fed is widely expected to keep the policy rate steady and to continue to signal no urgency on cuts, Reuters reported. Fed Chair Jerome H. Powell has said the central bank needs more confidence that inflation is heading towards their 2% goal before cutting rates.

The Fed’s policy hints and the release of Philippine inflation data for April, scheduled on May 7, could affect the local interest rate outlook, Mr. Tantiangco added.

Headline inflation rose for a second straight month to 3.7% in March, bringing the first quarter average to 3.3%, within the Bangko Sentral ng Pilipinas’ 2-4% annual target.

2TradeAsia.com placed the PSEi’s immediate support at 6,300 and resistance at 6,550-6,600.

“The PSEi’s solid bounce at the 6,400 zone is a relief signal in an otherwise lackluster week… The split week ahead may further dilute volumes but earnings results and annual stockholders’ meetings should help inject excitement throughout early May,” it added.

Philippine financial markets will be closed on May 1, Wednesday, for Labor Day.

Mr. Tantiangco put support at 6,400 and resistance at 6,700.

“Chart-wise, last week, the market was able to close above its 200-day exponential moving average (EMA). This week, the market may test the validity of its breach of the said line. If it is able to hold its position above its 200-day EMA, we may see more upward momentum moving forward,” he added. — RMDO with Reuters

Peso to trade sideways ahead of Fed meeting

April 28, 2024 | 9:00 pm

THE PESO could trade sideways against the dollar this week as the market looks ahead to the US Federal Reserve’s meeting for policy signals.

The local unit closed at P57.71 per dollar on Friday, strengthening by seven centavos from its P57.78 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, however, the peso depreciated by six centavos from its P57.65 finish on April 19.

The peso appreciated against the dollar on Friday after Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said the central bank is closely monitoring the foreign exchange market and is prepared to manage volatility if needed, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Remolona last week said the peso’s decline was largely due to safe-haven demand for the dollar amid tensions in the Middle East.

The peso was also supported by the dollar weakening to two-week lows recently, Mr. Ricafort added.

For this week, the peso could trade sideways against the dollar as the market monitors the Fed’s April 30-May 1 meeting for possible signals on their future policy movements, he said

The US central bank last month kept its target rate at the 5.25%-5.5% range for a fifth straight meeting after raising interest rates by a cumulative 525 basis points (bps) from March 2022 to July 2023.

Fed policy makers sifting through the latest inflation data will find little to fuel a sense of urgency to cut interest rates, but also nothing to rule out the likelihood of rate reductions starting later this year, Reuters reported.

That was the view from financial markets and analysts following a government report on Friday that showed inflation rose last month largely in line with economist expectations, and with what Fed officials themselves had said they anticipated.

The year-over-year rise in personal consumption expenditures (PCE) price index, which the US central bank targets at 2%, accelerated to 2.7% in March from 2.5% in February. Core PCE, a measure of underlying inflation, came in at 2.8%, the same as February.

After the report, futures contracts that settle to the Fed’s policy rate interest-rate futures prices pointed to about a 60% chance of a rate cut at the US central bank’s mid-September meeting, slightly more than before the report. Traders continued to see about a 50-50 chance of a second rate cut by the end of the year.

Fed Chair Jerome H. Powell has said the central bank needs more confidence that inflation is heading towards their 2% goal before cutting rates.

Rate futures are pricing in about a 17% chance of no rate cuts at all this year, down about 20% before the report but elevated compared with a few weeks ago, when two or even three rate cuts this year was seen as most likely.

Mr. Ricafort expects the peso to move between P57.40 and P57.90 per dollar this week. — A.M.C. Sy with Reuters

PUVMP units unaffordable even with gov’t loans — biz groups

April 28, 2024 | 8:19 pm

THE modernized jeepneys on offer for the Public Utility Vehicle Modernization Program (PUVMP) are unaffordable even with the government providing financing for drivers, business groups said in a joint statement.

“It is evident that the principles of ‘just transition’ have not been upheld in the formulation, execution, and oversight of the PUVMP. Critically, jeepney operators and drivers were not consulted about the design of modern jeeps or alternative vehicles,” they said in a statement.

“There has been no compensation for the surrender of their existing units. Furthermore, imported modern jeepneys, which range from P2.5 million to P3 million… are prohibitively expensive, making ownership unfeasible for many, even with amortization options,” they added.

The business groups, led by the Philippine Chamber of Commerce and Industry, called for increased government support and a more realistic timetable to facilitate the transition.

“We call for an urgent review of the PUVMP in order to address its legal, financial, and human rights infirmities; a suspension of the deadline for consolidation for an indefinite period of time; and advocate for the creation of an affordable, sustainable, and carbon-neutral mass transport system,” they said.

“The government must also back research and development efforts and provide subsidies to ensure that amortization terms for operators and drivers — including those who have already consolidated and fought for elements of just transition into the PUVMP — are affordable and potentially profitable,” they added.

The statement was also signed by the Employers Confederation of the Philippines, the Federation of Free Workers, Sentro ng mga Nagkakaisa at Progresibong Manggagawa, the Philippine Exporters Confederation, Inc., and the Trade Union Congress of the Philippines. — Justine Irish D. Tabile

Hybrid seed proposals added to campaign for RCEF extension

April 28, 2024 | 8:18 pm

farmer-rice — PHILIPPINE STAR/MICHAEL VARCAS

By Beatriz Marie D. Cruz, Reporter

THE GOVERNMENT must extend the life of the Rice Competitiveness Enhancement Fund (RCEF) while adding programs promoting the use of hybrid seed to enhance productivity, analysts said.

“We support the move to extend RCEF given that it has clearly not achieved its objective of enhancing the competitiveness of rice farmers vis-à-vis imports and ensuring their profitability following the liberalization of the rice market,” Federation of Free Farmers National Manager Raul Q. Montemayor said in a Viber message.

Monetary Board member V. Bruce J. Tolentino also backed an RCEF extension and cited the need to fund and distribute hybrid seed.

“Over the past few years, the Philippines has been reaping record rice harvests. Fundamentally this is because of the increased access by farmers to good seed, distributed by PhilRice (Philippine Rice Research Institute) and funded by RCEF,” he said in a Viber message.

“This is very important to continue and even expand the seed development, improvement, and distribution program under RCEF,” he added.

On Monday, the Department of Agriculture (DA) will present to the House of Representatives Agriculture and Food panel its status report on the implementation of Republic Act No. 11203 or the Rice Tariffication Law of 2019, committee chairman and Quezon Rep. Wilfrido Mark M. Enverga said.

“We have requested a complete briefing on the efficacy of the law and the RCEF program five years running,” Mr. Enverga said in a Viber chat.

RCEF receives P10 billion a year from rice import tariffs as a component of the Rice Tariffication Act, which liberalized rice imports but made traders pay tariffs on their rice shipments.

RCEF supports the distribution of machinery, seed, credit, and fertilizer for a six-year period. RCEF is set to expire in June.

“Improved yields not only increase production and domestic supply, but also decrease farm production costs and improve farmer incomes, enabling farmers to be more competitive with Vietnam or Thailand,” Mr. Tolentino said.

University of Asia and the Pacific Senior Economist Cid L. Terosa said a review of the RCEF would help determine the “best use” of the funding.

“The RCEF has achieved some gains, but, in my opinion, much can still be done to maximize benefits from it,” he said in an e-mail.

In its review, policymakers should look into RCEF as an “additional funding source for the whole DA rice program,” and not a “separate program.”

“RCEF funds should logically be coursed through the DA instead of being released directly to implementing agencies, to ensure that RCEF programs complement and do not duplicate or compete with DA rice program activities,” Mr. Montemayor said.

He also expressed skepticism about the “pre-allocation” of funds for farming activities, which is “based on what legislators think farmers need and not what farmers think they need for themselves.”

Last week, the National Economic and Development Authority backed a “well-targeted” RCEF, amid President Ferdinand R. Marcos, Jr.’s call to reduce unnecessary barriers to agricultural imports.

Back-office services seen benefiting from EU-PHL free trade agreement

April 28, 2024 | 8:17 pm

By Justine Irish D. Tabile, Reporter

A FREE trade agreement (FTA) between the Philippines and the European Union (EU) is expected to attract more European business for industries like information technology and business process management (IT-BPM) as well as financial and digital service providers, a business council official said.

Chris Humphrey, executive director of the EU-ASEAN Business Council (EU-ABC), told BusinessWorld that the Philippines currently enjoys a competitive advantage in its English-speaking population, which is deemed critical in IT-BPM services.

“I think you’re extremely well placed in the Philippines to provide more back-end office solutions for companies. Whether it’s call centers, data centers, or anything else in that vein, you have an excellent track record in this space,” Mr. Humphrey said.

“More companies around the world are looking to outsource some of their back-end requirements and some solutions. And I think with this FTA in place, it will open up the services sector even further. Again, that will put you in an excellent position to take advantage,” he added.

Aside from IT-BPM services, he said that the FTA could also attract EU companies to look into establishing a Philippine presence in financial and digital services.

“I think financial services are always attractive to the EU. And the Philippines being part of ASEAN means it’s going to be a good place to do business for the rest of the region as well,” Mr. Humphrey said.

He added that being part of the Regional Comprehensive Economic Partnership would also be attractive going forward.

“There is a lot of need, I think, in the digital economy space as well, for European businesses to want to come in and be attracted to using the Philippines as a springboard for the rest of the region,” he said.

“The Philippines sits in a region with 650 million people and a growing digital economy — a really fast-paced growth in the digital economy — and that has to be attractive,” he added.

Google, Temasek Holdings, and Bain & Co. projected the Philippine digital economy to grow to between $80 billion and $150 billion in gross merchandise value by 2030.

The EU and the Philippines announced the resumption of negotiations for an FTA in March. An FTA is expected to grow bilateral trade by 6 billion euros.

Last year, the Philippines saw a 17.4% increase in exports of services to $48.29 billion, which brought combined services and goods exports to $103.6 billion despite a 4.1% decline in the export of goods.

The Philippine Economic Zone Authority (PEZA) said that the IT-BPM industry accounts for 60%, or 1.1 million direct jobs generated within the economic zones (ecozones). In general, the sector also accounts for over 20% of gross domestic product.

“With IBPAP aiming to create a total of 2.5 million new jobs by the end of the Marcos administration in 2028, PEZA can commit at least 60%-70% of this 6-year target,” PEZA Director General Tereso O. Panga said in a statement on Sunday.

“As long as the Philippines remains a competitive investment destination, we can continue to draw more foreign direct investment that will set up facilities in the ecozones to provide goods and services for the global market,” he added.

PAGCOR revenue up over 42% in first quarter

April 28, 2024 | 8:16 pm

THE Philippine Amusement and Gaming Corp. (PAGCOR) said revenue was P25.24 billion in the first quarter, up 42.57% year on year.

In a statement on Sunday, PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said: “The three months’ (revenue) put the state gaming firm on track to generate P100 billion for the year, which would be a first in its 40-year history.”

Net operating income after expenses rose 54.22% year on year to P18.99 billion.

Gaming operations raised P22.9 billion, accounting for the bulk of revenue during the quarter.

“Of this amount, 43.46% or P9.69 billion came from the e-games sector (eBingo, eGames and Bingo grantees) while licensed casinos (integrated resorts) brought in P8.04 billion (36.06%),” it said.

On the other hand, revenue from its Casino Filipino business stood at P3.7 billion or 16.62% of overall revenue. This was lower than the 20.68% share from a year earlier.

Offshore gaming operations accounted for P860.89 million or 3.86% of the total.

“As we said earlier, the e-games sector will be our major source of gaming revenue this year and in the next few years as innovation and technological integration allows the sector to offer more excitement and convenience to gamers,” Mr. Tengco added.

PAGCOR said it expects to contribute P15.56 billion in dividends to the National Government.

Government-owned or -controlled corporations are required to turn over 50% of their profits to the government in the form of dividends. — Luisa Maria Jacinta C. Jocson

Japanese firm touts ecozone power savings from solar microgrid technology

April 28, 2024 | 8:15 pm

JAPANESE solar microgrid technology is projected to help economic zone (ecozone) locators save money on electricity, with the rollout ongoing in an ecozone in Pampanga and further expansion planned for Cavite.

Noriaki Sanada, president of Advantec Philippines, Inc., said that the company has rolled out the project in the Pampanga Economic Zone and is also planning to bring the solar microgrid to the Cavite Economic Zone.

Mr. Sanada estimated the potential savings on power costs at about P4.48 billion in Pampanga, with the potential to reduce electricity consumption by 335,578 kilowatts per hour (kWh), depending on how much space is usable on factory rooftops.

Last year, the Philippine Economic Zone Authority signed a memorandum of understanding with Advantec to conduct a feasibility study to determine the viability of the solar power technology operation in ecozones, including a study on the regulatory aspect of using microgrids in the zones.

Mr. Sanada said that the feasibility study found that the Pampanga Economic Zone hosted facilities with roof sizes of 300 square meters (sq.m.), 600 sq.m., and 1,200 sq.m.

“If we can use the full rooftop (in 300 sq.m. factories), we can generate about 27.84 kWh; for 600 sq.m., it is 83.56 kWh; and in the largest, we can generate 197.2 kWh,” he told reporters last week.

He said that locators in the Pampanga Economic Zone currently source their electricity from Angeles Electrical Corp., which charges P12.21 per kWh.

“If Advantec can supply solar power at P5.5 per kWh, they could have a total bill saving of more than 37%,” he said.

For the first phase of the project, 12 locators out of a total of 33 agreed to install the solar systems in their facilities, with the remainder also expressing interest.

“Right now, the solar systems are installed by 10 locators in the Pampanga Economic Zone. Their total electricity consumption was reduced from 934,559 kWh… and their carbon emission reduction was 204 tons per year,” Mr. Sanada said.

“Our solar microgrid can support other economic zones to reduce power consumption, save on electricity bills, and reduce carbon emissions,” he said.

For the second phase of the project, he said Advantec will look into the transfer of some locators’ excess power through the grid and the use of energy management systems.

This additional investment, he said, will help in maintaining energy supply for future semiconductor and food manufacturing locators in the Pampanga Economic Zone. — Justine Irish D. Tabile

Plans for value-added activities in mining endangered by high power costs — legislator

April 28, 2024 | 8:13 pm

HIGH POWER costs could derail plans to attract investment in the mining and mineral processing industries, a senior legislator said.

The industry could also be hurt by an export ban on unprocessed ores if domestic processing capacity is not built up, he added.

“If we cannot find a way for refining companies to access cheap power, we cannot build up a strong mining value chain,” Albay Rep. Jose Maria Clemente S. Salceda told BusinessWorld via Viber.

“An ore export ban could create the opposite effect of discouraging investment in mining, especially without pre-existing domestic refining capacity,” according to Mr. Salceda, a member of the House Natural Resources Committee.

The Philippines is estimated to have about $1 trillion worth of untapped mineral reserves.

Palawan Rep. Jose C. Alvarez, who is a vice-chair of the Natural Resources Committee, noted that the $1 trillion estimate for mineral reserves is low, noting that the actual valuation could be “several trillion.”

“It’s all about power costs,” Mr. Salceda said, as electricity expenses account for “15% to 40% of the operating costs of mining, smelting, and refining.”

The government could explore providing direct power access to mines and refineries to avoid diverting power supply from consumers, he said.

Terry L. Ridon, convener of the InfraWatch PH think tank, said providing mines and refineries direct access to power will require building dedicated power plants.

Mr. Ridon told BusinessWorld via Viber: “While it certainly would not compete with other grid users, mining firms should thoroughly assess whether this is commercially feasible.”

However, microgrids are “a reasonable alternative,” John Paolo R. Rivera, president and chief economist at Oikonomia Advisory & Research, Inc., said.

“An independent microgrid would be a good alternative for them to have a stable and unimpeded supply of power,” Mr. Rivera told BusinessWorld in a Viber message. “However, this will have huge setup costs. It will take time for these industries to commence operations.”

High power costs are due to the country’s reliance on coal and fossil fuels as power sources, he said. “High power cost makes their cost of operation higher. This is already expensive, it is also environmentally unsustainable which compounds the problem.”

Mining and mineral refinement facilities can only have access to cheap and reliable power if there is an adequate supply of energy that can meet the needs of all power consumers, Mr. Ridon said.

To meet power demand and achieve power stability, the government should facilitate the entry of power generation projects to meet increasing demand and achieve power stability, he added.

“The entry of more generation facilities at the soonest time, irrespective of technology, would certainly drive energy costs down,” he said.

The approval and subsequent development of the Leyte Ecological Industrial Zone could allow mining and mineral refiners to have access to cheaper power, further developing the minerals industry, Mr. Salceda said. — Kenneth Christiane L. Basilio

SteelAsia mill in Batangas approved for P8.3-billion loan by GSIS, banks

April 28, 2024 | 8:13 pm

GSIS,-DBP,-PBB,-SteelAsia-photo — Signing the loan agreement are, from left: Representing Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs, Asec Marvin Jason N. Bayang; President and CEO, PBB Rolando R. Avante; Chairman and CEO, SteelAsia Benjamin O. Yao; GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso; DBP President and CEO Michael O. De Jesus; and SteelAsia Director Rene J. Buenaventura

THE Government Service Insurance System (GSIS), the Development Bank of the Philippines, and the Philippine Business Bank have agreed to lend SteelAsia Manufacturing Corp. a combined P8.3 billion to help complete a steel mill in Batangas.

Projected to cost P18.3 billion, SteelAsia’s P18.3-billion steel section mill, the country’s first, will rise in Lemery, and will start production of beams and bars next year.

Benjamin Yao, SteelAsia chairman and chief executive officer, said that the Lemery Section Mill loan will help develop the steel industry.

“It will be fully commissioned in 2025 and will (compete with) imported steel section products like H beams, I beams, and angle bars that are used for infrastructure like bridges, railways, high-rises, industrial buildings, telco towers, and transmission towers,” Mr. Yao said in a statement.

Mr. Yao said developing the steel industry holds the potential to bring construction costs down and create new manufacturing industries and thousands of jobs.

“We invest in infrastructure projects that not only drive economic growth and ensure stability but also provide long-term sustainable returns. The SteelAsia plant is a prime example of such an investment,” GSIS President and General Manager Jose Arnulfo Veloso said.

“By enhancing our country’s manufacturing capabilities, this project sets the stage for increased domestic production and economic resilience. It addresses our need to reduce dependency on imported steel, which in turn helps balance our trade and keeps more capital within the Philippines,” he added.

The Philippines imports 80% of its steel requirements, excluding reinforcing bars or rebar. In 2022, the Philippines imported $5.25 billion worth of steel.

The Lemery Section Mill will be SteelAsia’s seventh plant in the Philippines. It operates steelmaking, rebar manufacturing, and rebar fabrication plants in Bulacan, Batangas, Cebu, and Davao.

In 2022, the company embarked on a five-year development plan to build the Philippine steel industry, of which the Lemery Section Mill is a component. — Justine Irish D. Tabile

How shifting dynamics can help revitalize your workforce

April 28, 2024 | 7:51 pm

IN BRIEF:

• The EY 2023 Work Reimagined Survey, which sourced data from 17,050 employees and 1,575 employers across 25 sectors and more than 20 geographies, highlights key workforce trends that are defining the “next normal” in the workplace.

• Employers and employees have distinctly different perspectives on the “next normal” of work, resulting in differences between employer and employee priorities.

• Leaders navigating the way forward will see the Great Rebalance as an opportunity to re-energize their workforce strategy, making it technologically evolved yet inherently people-centric, agile, and resilient.

In the aftermath of the COVID-19 pandemic, the Philippine labor market has shown a remarkable recovery and transformation. Comparing data from Philippine Statistics Authority (PSA) Labor Force Surveys in April 2020 and February 2024, an increase in employment rates — from 82.4% to 96.5% — has been noted. This represents a substantial growth of 15.15 million in the workforce, showing a robust entry of the working-age population into active employment since the onslaught of the pandemic.

Amidst the broader economic rebound, one of the most striking differences that can be derived from the pre-pandemic and post-pandemic Labor Force Surveys is the reduction of average weekly work hours, from 43.2 hours in 2019 to 40.1 hours in 2024. It coincides with a strong economic recovery post-pandemic. According to the Philippine News Agency (PNA), the government’s official news service, the economy continued to flourish after a sharp rebound to 5.6% GDP growth in 2021 from the 2020 downturn. According to the DoF, it achieved an unprecedented 7.6% growth in 2022, and last year, the country posted 5.6% growth, making it the fastest growing economy among its peers in the Association of Southeast Asian Nations (ASEAN).

This three-hour reduction might seem modest, but it serves as a microcosm of current global trends that have been magnified by the pandemic. These include the rapid adoption of remote work, increased flexibility, and a broader cultural shift towards the “Great Rebalancing” — a movement to recalibrate work policies and prioritize employee well-being and personalized work arrangements, often entailing shorter hours.

Today, employees are motivated by the desire for more comprehensive total rewards packages, improved well-being, and the necessary skills to thrive in a world that increasingly values work flexibility.

According to the EY 2023 Work Reimagined Survey, these trends are integral to the seismic shifts defining the “next normal” in work. This survey was conducted through an anonymous online poll involving 17,050 employees and 1,575 employers across 25 different sectors and more than 20 geographies, including the Americas, Asia-Pacific (including Southeast Asia (SEA) — Indonesia, Malaysia, the Philippines and Singapore), and EMEIA (Europe, the Middle East, India, and Africa).

The survey underscores distinct perspectives on work between employers and employees, particularly regarding the balance of power in the workplace. It highlights that while employers generally believe economic challenges will reduce employee turnover, as many as 34% of employees are considering changing jobs within this year. It also shows that as hybrid work evolves, it demands a deeper understanding of how technology, office infrastructure, and employee amenities impact productivity, organizational cohesion, and trust.

REBALANCING POWER DYNAMICS
Traditionally, employers held more influence and control in the workplace.

However, perceptions have shifted since the pre-pandemic period, with fewer respondents now believing that employers maintain the upper hand.

Interpreting current market conditions from various perspectives can influence how employers and employees perceive each other. For example, the disparity in their views on financial pressures can create an imbalance in workplace power dynamics. This imbalance is evident in survey findings, where only 47% of employees believe their organization is facing growth or profit challenges, compared to 61% of employers.

RIGHTSIZING REWARDS, BOOSTING RETENTION RATES
To secure sought-after skills, organizations must develop talent from within or recruit new hires effectively. One way to do this is to ensure that compensation and career opportunities are competitive, both internally and externally. Both employees (80%) and employers (79%) surveyed also agree that “total rewards” programs need “moderate” to “extensive” changes. Total rewards encompass various factors like time off, recognition, well-being, and health and retirement benefits.

Organizations can improve their ability to attract and retain talent by developing offerings that enhance the employee value proposition (EVP) through market benchmarking and internal surveys. By restructuring total rewards programs to align with the broader objectives of the EVP, these initiatives can positively impact perceptions of change and transformation, innovative work methods, and leadership approaches.

FOSTERING A PEOPLE-FIRST CULTURE
A major action point is to define and cultivate a people-first culture — with humans at the center — and emphasizing trust. However, only 64% of employees surveyed agreed with the statement that employees feel trusted and empowered by their leaders compared with employers who agreed (81%), showing a 17-point gap.

Trust and empathy foster positive results, essential for effective leadership, team cohesion, and organizational success. These work values can be exemplified by transitioning from individual to collaborative thinking — a shift from a “me” mindset to a co-created “we” mindset. Meanwhile, transparency and tracking of behaviors, attitudes, and results from diverse data can help build trust. Understanding these metrics can enhance a sustainable collective mission, purpose, and culture.

ENHANCING THE WORKPLACE EXPERIENCE
Employers and employees hold divergent views on talent, culture, and leadership. Specifically, 76% of employers agreed that “Leadership cares about employees as people,” compared to only 54% of employees. On the other hand, 59% of employees and 78% of employers agreed that “Employees have the ability to innovate and/or have time for unplanned collaboration.”

These gaps underscore the need for an overall workplace environment aligned with employees’ realities to foster a more engaging and supportive workspace, thereby boosting satisfaction, retention, and productivity.

REINVENTING WORK
In today’s work landscape, flexibility in work arrangements is not just desired but expected, especially for knowledge-based roles, with more than a third of employees expressing a preference for full remote work. To adapt, organizations must pinpoint which roles can effectively function remotely and devise comprehensive strategies, leveraging appropriate technologies and refining processes to facilitate seamless transitions to hybrid work environments. This approach should encompass not only work operations but also learning initiatives and the nurturing of company culture.

Moreover, establishing guidelines for sourcing talent across regions can mitigate risk while maximizing the advantages of flexible work for both the organization and its mobile employees. While real estate may not directly impact employee satisfaction, the study shows that it does influence culture, productivity, and retention. Therefore, investing in well-designed spaces that foster social connections and collaboration can yield significant returns.

UPSCALING AI
Both employers and employees recognize the promise of Generative Artificial Intelligence (GenAI), which has recently entered mainstream technology discussions. One of the key advantages of this disruptive technology is its ability to generate initial drafts of work, which can then be reviewed and refined by human users.

In Southeast Asia, as high as 64% of employees and 86% of employers have a positive outlook on the potential of GenAI to enhance working flexibility. Despite this, only 25% are committed to offering training in GenAI-related skills.

In addition to acquiring new technical skills such as in GenAI, organizations must also evaluate employee soft skills such as critical thinking and resilience to ensure that their talent strategies align with business objectives, commitments to diversity, equity, and inclusion (DE&I), and fosters a culture of trust.

REDEFINING WORKFORCE DYNAMICS
Amidst the evolving work landscape and dynamics, companies are urged to equip their teams to handle uncertainty and to offer the necessary financial, physical, emotional, and social support to help them excel. More and more, fostering an environment where employees can thrive and better support organizational success is becoming an imperative.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

Rossana A. Fajardo is the EY ASEAN business consulting leader and the consulting service line leader of SGV & Co.

Foil fencer Samantha Catantan qualifies for Paris Olympic Games

April 28, 2024 | 7:21 pm

NOTHING, not even a hurting left knee and a point deduction for a red card, could stop Filipino fencer Samantha Catantan from realizing her Olympic dream.

Armed with iron will and a strong heart, Ms. Catantan turned back a taller, longer Sofiya Aktayeva of Kazakhstan in a gripping, gut-wrenching 15-14 victory in the women’s foil finals of the Asia-Oceania Zonal Olympic Qualifier in Fujairah, United Arab Emirates Saturday.

That unforgettable night at the Zayed Sports Complex sent Ms. Catantan to the quadrennial games as the first fencer from the country to do so since Walter Torres, now Philippines Sports Commission board member, made it that far in the 1992 Barcelona edition.

The Penn State star also became the 12^thFilipino to book a ticket to the French capital next to pole-vaulter EJ Obiena, gymnasts Carlos Yulo, Aleah Finnegan and Levi Jung-Ruivivar, boxers Eumir Marcial, Nesthy Petecio and Aira Villegas, weightlifters Vanessa Sarno, John Ceniza and Elreen Ando, and rower Joanie Delgaco.

And it was a memorable one as the 22-year-old Ms. Catantan had to endure a point cut after she was assessed a red card for failing to return on her guard line on time and trailed 12-9 and a sharp pain on her surgically-repaired ACL (anterior cruciate ligament) that she tore during last year’s Southeast Asian Games in Phnom Penh, Cambodia when the score was knotted at 13.

After a medical timeout to address the issue, Ms. Catantan, still in excruciating pain, valiantly limped back to the piste, plodded on and courageously faced her Kazakh foe with what strength and power she had left.

It produced perhaps the most unforgettable moment in her life as she won two of the last three points to deliver a mammoth victory that reverberated back home to a country hungry for sporting glory.

The moment she realized she had already won, she fell to the mat, shed tears of joy and covered her face as a small but boisterous Filipino tearfully celebrated with her from the stands.

It was a conquest that erased all the heartaches and stigma Ms. Catantan felt after coming two steps short from making the Tokyo Games and missing out on a SEA Games gold last year in Cambodia after she tore her left ACL.

And now she’s back and on top of the world.

Interestingly, Ms. Catantan will join an Olympic field that included former national squad teammate Maxine Esteban, representing Ivory Coast who also made it through via the African qualifiers. — Joey Villar

Lionel Messi scores twice as Inter Miami beats New England

April 28, 2024 | 7:18 pm

LIONEL MESSI’s brace led Inter Miami to a 4-1 victory over the New England Revolution in Foxboro, Mass., on Saturday night.

Benjamin Cremaschi and Luis Suarez scored the other goals for Miami (6-2-3, 21 points), which has points in five straight games.

Inter Miami improved to 4-3-0 all-time against the Revolution and avoided a third straight loss in Foxboro.

The Revolution actually opened the scoring as Tomas Chancalay notched a goal in the first minute for New England (1-7-1, 4 points), which has lost three straight matches.

Mr. Messi tied the game 1-1 in the 32^nd minute, taking a through ball from Robert Taylor and putting a left-footed strike in past keeper Henrich Ravas.

Then, in the 68^th minute, the Argentine gave Miami a 2-1 lead, picking up a Sergio Busquets through ball and striking a left-footed shot for his team-leading ninth goal. With the two goals, Mr. Messi became the first player in MLS history to have five straight games with multiple goal contributions. With nine goals, Mr. Messi is one goal up on Cristian Arango for the MLS league lead.

In the 83^rd minute, Mr. Cremaschi gave Miami a 3-1 lead. Mr. Messi had the initial shot, which Mr. Ravas stopped, but Mr. Cremaschi was there to put in the rebound.

Miami took a 4-1 lead in the 88th minute as Mr. Suarez put a left-footed strike past Mr. Ravas for his seventh goal in 10 games.

Mr. Chancalay got the scoring going by chipping a shot up and over Miami keeper Drake Callender off a through ball from Carles Gil 37 seconds into the match.

The goal was the first for the Revs in three games. New England has just six goals over nine games this season.

New England next travels to Chicago while Miami hosts the New York Red Bulls. Both matches are set for May 4. — Reuters