Greece offers more aid to inflation-hit pensioners

February 17, 2023 | 12:02 am

ATHENS — Greece’s conservative government has announced more financial aid for pensioners, farmers and businesses hurt by inflation and costly energy bills, launching the latest measures months before a national election.

The government of Prime Minister Kyriakos Mitsotakis has spent more than €40 billion since 2020 on subsidies to support households and businesses struggling to cope with fallout from the COVID-19 pandemic and the Ukraine war.

Last month, it implemented an 8% payment rise for pensioners, the first since a 2010-2018 financial crisis which forced Greece to slash pensions in turn for about €260 billion in bailouts.

However, nearly half of the country’s pensioners did not benefit from the rise because they did not meet the original criteria. The new aid package, which will have a cost of about €800 million, includes a lump sum payment of between €200 and €300 for about one million pensioners by April, Finance Minister Christos Staikouras said in televised comments.

Mr. Staikouras added that a temporary reduction in sales tax for transport, coffee and non-alcoholic beverages would be extended for six months until the end of the year.

“The measure aims to support businesses, as those sectors, have been particularly hit by the financial impact of the pandemic and have still had increased operating costs, due to the energy crisis,” he said.

Greece’s annual EU-harmonized inflation slowed to 7.3% in January from 7.6% in December, easing to its lowest level since February last year, data showed on Wednesday.

Despite soaring energy costs since last year, Greece’s economy has fared well thanks to increased tourism revenue. This year, Greece expects economic output to rise by 1.8% and sees a small primary surplus of 0.7% of gross domestic product in 2023 for the first time since 2019.

Higher-than-expected budget revenue in 2022 and a positive economic performance means the new aid package will not jeopardize the country’s fiscal targets, Mr. Staikouras said.

Greek farmers will also get tax refunds for their transport fuel costs for 2023 and will benefit from a quicker disbursement of outstanding compensation for natural disasters. — Reuters

Manager refuses to delegate key tasks

February 17, 2023 | 12:01 am

I’m a longtime supervisor in our company’s operations department. Aside from me, there are other three junior supervisors who report directly to the operations manager, a 57-year-old pioneer in our company. My problem is the continuing “refusal” of my boss to delegate key tasks to me and other supervisors. We feel like we’re being treated like glorified clerks who are reduced to doing only routine administrative work, like monitoring the workers’ performance. The human resource (HR) manager, citing our succession plan, told me that I’m next in line to replace our department manager in case of his retirement, death or incapacity. However, it appears that he’s not interested in readying me to do his job. What can we do? — Rainbow Connection.

Oh, no! The HR manager should not be doing that. A succession plan is confidential. It’s only the HR manager, the department head and the chief executive officer (CEO) who should be privy to that information. That’s because its contents are not set in stone and could change anytime, depending on the result of one’s performance appraisal and related factors.

Even if your name continues to be on top of the list, it’s imperative for management to keep it a secret to avoid encouraging false expectations.

It’s also important to understand that it’s only your boss who can make a recommendation as to his successor. In the absence of your boss’s endorsement for some reason, a management committee composed of other department managers (including the HR manager) may do the vetting process before they look for external candidates.

However, that’s not the major issue here. With or without your name in the succession plan, your concern is how to enrich your work experience so that you’re prepared to assume the post of operations manager in your organization or elsewhere when the time comes.

INITIATIVE
How is your relationship with your boss? Is it possible that the succession plan that contains your name was prepared only to comply with certain procedures, like filling up a pro-forma template? Many organizations do that to update the succession plan in accordance with the instructions of HR. How serious is your boss in recommending you to take his post if necessary?

The answer to these questions will depend on your performance. How decent is your performance rating, at least for the past three years? I mean, you should have an “above average” and not merely “average” rating. It’s the best clue available.

I’ve worked with bosses before and I don’t remember asking them to give me important assignments. Of course, at times, they give me difficult projects. That’s all. Instead, what I did was to volunteer myself for many key tasks that were not part of my daily routine or tasks that could have been done by external consultants. Even when I was the HR department head, I volunteered to organize best-practices tours with dynamic companies, conduct focus group discussions on salary and benefits, tap volunteer resource speakers on certain leadership topics, create impactful sports and social activities for employees, research methods to raise employee engagement and retention, among other things.

My best memory of all my accomplishments was when I established a corporate-wide kaizen program that was participated by many employees that netted us millions of savings. At one time, I even volunteered myself as a conduit to a legislator from my home province to help us renew our franchise.

Initiative is key. It was all up to me to explore and discover those special projects that were not expected of me and yet I was able to deliver them all because my bosses gave me permission to do so. That’s very important. You must think of those special projects — the more difficult, the better — and secure management permission before doing anything.

He may disallow your well-thought-out ideas and drive you crazy for not allowing you to do what you want, but that’s the way it goes. That’s part of the learning process, which could be at times demoralizing. Nevertheless, it’s still the rule. You can’t bypass your bosses. Treat your bosses like effective and supportive coaches. Give them good reason to believe they were responsible for your career development.

GIVE CREDIT
Depending on your career aspirations, it’s better to show what you can do, not only to your boss but to your department and the whole organization. Be visible by doing all projects that could make top management take notice. You could run the risk of being viewed as someone who’s out to get the boss’s job.

Therefore, be careful. Disloyalty is a fast track to career failure. Be sensitive to your boss’s needs and wants. Give credit to him every step of the way.

In conclusion, don’t wait for opportunities to happen. Your name may be in the succession plan, but if you don’t have the right skill and depth of managerial experience, you’ll soon be dismissed as incompetent. This is the worst thing that could happen, even if you do get the promotion.

Learn as many things as possible about performing the job of operations manager, even without his assistance. Volunteer to do many things and make it easy for your boss to do his job.

Learn from Rey Elbo’s “Superior Subordinate Supervision” program to help train your line supervisors and managers. Or chat with him on Facebook, LinkedIn, Twitter or e-mail elbonomics@gmail.com or via https://reyelbo.com

Technology strategy

February 17, 2023 | 12:01 am

THERE is a growth in the appointment of chief digital transformation officers (CDTO) and chief digital officers (CDO) with the responsibility of charting the technology roadmap of an organization. While there are nuances in the role, these are similar to the traditional chief technology officers (CTO) that are responsible for formulating the technology strategy of an organization and implementing it.

But because of its relative novelty as an area of strategy and management, there is interestingly a dearth of material that directly describes what technology strategy is and how to formulate one. This is partly to blame for the misunderstanding of many companies, leading to missed opportunities or costly technology mistakes.

There is now a sea of supposed chief technologists who err in forecasting and estimating a technology’s potential, costing a company a fortune. For example, the CTO of a local firm invested heavily in buying the software asset of a foreign company with the aim of developing this for the company’s own use, only to discover later on that the company lacked competencies in wielding the software; hence putting the project to a full stop after several years.

So, what is technology strategy? A distillation of various descriptions available leads us to the following definition — that technology strategy is the alignment of technology vision with business strategy by integrating company processes with appropriate technologies. Technology vision should be inextricably linked to business strategy for increased efficiencies and growth opportunities.

A simple framework based on classical strategic management can help CTOs formulate technology strategy. The fundamental ideas of this framework are (1) that technology strategy is influenced by the external and internal environmental forces; (2) the business strategy influences the technology vision; (3) the technology strategy of a company emerges from its technological capabilities and competencies; and (4) the implementation of technology strategy, through the experience it generates, serves to further develop the firm’s technological capabilities and competencies.

The technology strategy is shaped by the constantly evolving business environment, both in terms of new opportunities and new threats, may it be a new manufacturing process or a new software to make operations more efficient. Business strategy is developed to take advantage of or counter changes in the business environment. The CTO then aligns technology vision with business strategy by integrating company processes with the appropriate technologies. If the CTO has a good understanding of technology and changes in the technological environment, he or she can develop a technology strategy in advance of changes in the business environment.

Taking stock of the technological capabilities and competencies of a firm are a crucial starting point for a technology strategy. An inventory of these capabilities in terms of assets, people and other resources will help the CTO baseline his or her standing. From this baseline the CTO can assess the gaps relative to the technological vision.

Implementing the technology initiatives within the organization builds learning and experience among the CTO team members and the whole organization. To maximize the learning from technological mishaps, the implementation team should be accountable yet with enough room to make mistakes. A truly effective technology strategy not only takes into account the technology initiatives but the development of organization members themselves in terms of improvements in competencies and productivity.

The opinion expressed herein does not necessarily reflect the views of these institutions and BusinessWorld.

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

TomTom Traffic Index: Manila 9^th worst traffic-congested city in 2022

February 17, 2023 | 12:01 am

The Philippine capital ranked ninth most congested city out of 389 cities in the TomTom Trafﬁc Index 2022. On average, it took 27 minutes for Filipinos to travel 10 kilometers in Metro Manila last year. Across East and Southeast Asia, Manila was the second most trafﬁc-congested city after Sapporo, Japan (4th overall).

Napocor powers Roxas-Taytay transmission line

February 17, 2023 | 12:01 am

napocor-mindoro-power-philstar — PHILSTAR FILE PHOTO

STATE-owned National Power Corp. (Napocor) has energized the P691-million Roxas-Taytay 69 kilovolt (kV) transmission line in Palawan.

“With this new transmission line, we’ll not only improve power dispatch and eventually decrease system loss, but we can also accommodate more power generators to cater to the growing electricity needs of Palawan,” Napocor President and Chief Executive Officer Fernando Martin Y. Roxas said in a media release.

The transmission line stretches from the municipalities of Roxas to Taytay in the province of Palawan.

Mr. Roxas said that the completion of the transmission line, which was funded by the national government’s special allotment release order, is part of Napocor’s goal to provide reliable power in provinces.

The 71.3-circuit kilometer line was bid out and awarded in two schedules, with the first half awarded to SL Development Construction Corp. and the second half awarded to and completed by DM Consunji, Inc.

“We are happy to be part of this continuous progress of Palawan. We are sure that development doesn’t stop here as we are committed to energizing more areas, sustaining the operations of our power plants here, and optimizing the operations of our 69 kV transmission lines,” Mr. Roxas said.

Napocor’s mandate under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 is to provide power to so-called “missionary” markets, which are off-grid, or not connected to the national transmission system.

Napocor manages the transmission systems of Palawan, Masbate, Marinduque, Catanduanes, and Oriental and Occidental Mindoro. — Ashley Erika O. Jose

Rare footage of Titanic wreckage shot in 1986 released

February 17, 2023 | 12:01 am

Titanic (1997) — The sinking of the Titanic in James Cameron’s film Titanic.

RARE video footage showing the Titanic ocean liner on the floor of the Atlantic is being released on Wednesday, decades after the discovery of the wreckage and more than a century after the ship hit an iceberg and sunk.

The footage from Woods Hole Oceanographic Institution (WHOI) was shot about 2 miles (3 km) below the ocean’s surface, just months after explorers found the wreckage in 1985. Most of it has not been previously released to the public.

Since the discovery, several documentaries about the Titanic have showed footage of the wreckage scene. Some brief clips of the original dives have been aired, but Wednesday will see the release of a longer 80-minute video of uncut footage on YouTube.

The release of the footage “marks the first time humans set eyes on the ill-fated ship since 1912 and includes many other iconic scenes,” the WHOI said.

The Titanic, thought to be nearly impregnable when it was built, was the largest ocean liner in service at the time. It struck an iceberg on April 14, 1912, in the Atlantic as it made its maiden voyage from Southampton, England, to New York. More than 1,500 people died in the sinking, shocking the world and prompting outrage over a lack of lifeboats on board.

A team from WHOI and the French National Institute of Oceanography found the sunken ship broken in two pieces southeast of Canada’s Newfoundland on Sept. 1, 1985.

During 11 dives in July 1986, footage was shot by cameras on a human-occupied submersible and a small remotely operated vessel that maneuvered through tight spaces.

The unveiling of the footage has been timed with the re-release of director James Cameron’s 1997 film Titanic on its 25^th anniversary. The movie won 11 Academy Awards, including for best picture.

“The human stories embodied in the great ship continue to resonate,” Mr. Cameron said in a statement. “By releasing this footage, WHOI is helping tell an important part of a story that spans generations and circles the globe.”— Reuters

Film academy response to Will Smith slap was ‘inadequate,’ group’s president says

February 17, 2023 | 12:00 am

BEVERLY HILLS, Calif. — Hollywood’s film academy did not adequately respond to Will Smith’s slap of Chris Rock at the Academy Awards last March, the organization’s president said on Monday at a gathering of this year’s Oscar nominees.

The Academy of Motion Picture Arts and Sciences was criticized for allowing Mr. Smith to remain in his seat, and accept the best actor trophy, after he assaulted Mr. Rock on stage.

“What happened on stage was totally unacceptable,” academy president Janet Yang said at the annual Oscar nominees’ luncheon in Beverly Hills. “And the response from the organization was inadequate.

“We learned from this that the academy must be fully transparent and accountable in our actions, and particularly in times of crisis,” she added.

Mr. Smith resigned from the academy after the incident, and the academy banned him from attending the Oscars for 10 years. He remains eligible to be nominated for and win Academy Awards.

At Tuesday’s lunch, nominees including Tom Cruise, Steven Spielberg, Michelle Yeoh and Angela Bassett schmoozed and posed for a group photo.

Winners will be announced at a ceremony televised live on Walt Disney Co.’s ABC on March 12. — Reuters

How PSEi member stocks performed — February 16, 2023

February 17, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, February 16, 2023.

Fujifilm PHL plans to introduce more healthcare solutions

February 16, 2023 | 9:48 pm

Fujifilm-Uehara — Fujifilm Philippines President Masahiro Uehara

Fujifilm Philippines plans to introduce more healthcare solutions in response to rising local demand, its newly appointed president announced on Thursday.

“Fujifilm will continue to provide a range of products and services that address the needs of healthcare personnel, helping to improve medical care and supporting the well-being of people,” Fujifilm Philippines President Masahiro Uehara said during a briefing.

The Japanese brand, which has been operating in the Philippines since 2012, is working to increase its presence in the healthcare and graphic sectors, he noted.

According to the company, it began offering healthcare solutions to the local market in 2021, when its parent company, Fujifilm Corp., acquired the diagnostic imaging-related business of Hitachi, Ltd.

“It covers computed tomography (CT) and magnetic resonance imaging (MRI), X-ray, ultrasound systems, endoscopy, in-vitro diagnostic systems, and picture archiving and communications systems (PACS),” Fujifilm Philippines said in a statement.

According to Mr. Uehara, Fujifilm Philippines is now focusing on the “health and well-being of the Filipino people.”

“At the height of the pandemic, Fujifilm Philippines installed FDR Go PLUS, a digital mobile X-ray, in various hospitals across the country to help frontliners do chest X-rays and determine patients with COVID-19 symptoms,” the company noted.

Fujifilm Philippines, which has expanded far beyond its roots in photography, has become known for its technology-driven solutions.

“In 2019, the company established its first outlet in Cebu to address the increasing demand and make sure that the quality of its products and services in the Visayas and adjacent places in Mindanao are maintained,” the company noted.

Mr. Uehara also vowed to make the company’s products more accessible to local businesses.

“We are confident that we can help the local businesses in the Philippines to reach their goals and grow their businesses even further,” he said. — Arjay L. Balinbin

Peso rebounds vs dollar as BSP delivers large interest rate hike

February 16, 2023 | 9:00 pm

THE PESO strengthened against the dollar on Thursday after the Bangko Sentral ng Pilipinas (BSP) delivered another large increase in benchmark interest rates.

The local currency closed at P55.12 versus the greenback on Thursday, climbing by five centavos from Wednesday’s P55.17 finish, Bankers Association of the Philippines data showed.

The peso opened Thursday’s trading session weaker at P55.35 per dollar. Its intraday best was at P55.02, while its worst showing was at P55.39 against the greenback.

Dollars traded rose to $1.14 billion on Thursday from $1.072 billion on Wednesday.

“The peso appreciated amid expectations of a strong BSP policy rate hike today,” a trader said in a Viber message on Thursday.

The peso strengthened “after the larger local policy rate hike of 50 basis points (bps) to 6%… that could support the peso with higher interest differential versus the dollar,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

The BSP on Thursday hiked benchmark interest rates by 50 bps for a second straight meeting, bringing its policy rate to 6%, amid higher prices and rising inflation expectations.

The rates on the central bank’s overnight deposit and lending facilities were also increased to 5.5% and 6.5%, respectively.

The BSP has now hiked borrowing costs by 400 bps since May 2022.

Headline inflation rose by 8.7% year on year in January, faster than 8.1% in December 2022 and marking the 10^th straight month that it exceeded the central bank’s 2-4% target for the year.

Meanwhile, the US Federal Reserve earlier this month raised its target interest rate by 25 bps to a range between 4.5% and 4.75%, bringing cumulative hikes since March 2022 to 450 bps.

Stronger foreign investments data for 2022 and the government’s recently concluded retail Treasury bond (RTB) offer also supported the peso, Mr. Ricafort added.

Approved foreign investment pledges rose by 25.6% last year, preliminary data from the Philippine Statistics Authority showed.

Total approved foreign investments stood at P241.89 billion last year, higher than the P192.55 billion in 2021 and more than double the P112.12 billion recorded in 2020.

Foreign investments jumped by 30.1% year on year to P173.61 billion in the fourth quarter of 2022. The growth was slower than the 265.8% seen in the final three months of 2021 but was a turnaround from the 22.4% decline in the third quarter last year.

Last quarter’s foreign investment haul was the largest in 13 straight quarters or since the P182.44 billion seen in the third quarter of 2019.

Meanwhile, the government raised P283.711 billion from its offering of 5.5-year RTBs that ended two days ahead of schedule, National Treasurer Rosalia V. de Leon told reporters on Wednesday.

Of this total, the government raised P31.671 billion from the bond exchange offer program.

The 5.5-year retail bonds carry a coupon rate of 6.125%.

For Friday, the trader said the peso may strengthen further against the dollar following the BSP’s latest policy move.

“The 25-bp differential from the Fed’s adjustment will be beneficial in favor of the peso relative to the greenback,” the trader added.

The trader sees the peso moving between P54.95 and P55.20 versus the greenback on Friday, while Mr. Ricafort gave a forecast range of P55 to P55.20. — AMCS

Stocks slip on last-minute selling after BSP move

February 16, 2023 | 9:00 pm

STOCKS dropped on Thursday on last-minute profit taking amid the Bangko Sentral ng Pilipinas’ (BSP) decision to hike borrowing costs anew.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 6.18 points or 0.09% to close at 6,815.91 on Thursday, while the broader all shares index gained 2.90 points or 0.08 % to end at 3,639.08.

“The local market declined due to last-minute profit taking. Investors secured gains ahead of the Bangko Sentral ng Pilipinas’ monetary policy decision to avoid losses in case there will be hawkish statements from the central bank,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“The local bourse ended relatively flat as last-minute selling erased most of its early gains following the news of the BSP hiking rates by 50 basis points (bps),” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

The BSP’s policy-setting Monetary Board on Thursday raised benchmark interest rates by 50 bps for a second straight meeting after headline inflation surprised to the upside last month, indicating widening price pressures.

The latest increase brought the policy rate to 6%, the highest since August 2008. The BSP has now hiked borrowing costs by 400 bps since May 2022.

Inflation climbed 8.7% year on year in January, faster than 8.1% in December 2022. It was the 10^th consecutive month that it exceeded the central bank’s 2-4% target range for the year.

“Philippine shares closed slightly lower even after a stronger-than-expected January retail sales report was released, which suggested that the Federal Reserve may have further to go in its efforts to tame inflation,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

US retail sales improved to 3% in January driven by motor vehicle sales and other goods.

The US central bank raised the fed funds rate by 25 bps earlier this month to a range between 4.5% and 4.75%, bringing cumulative hikes since March 2022 to 450 bps.

Back home, sectoral indices were split on Thursday. Mining and oil declined by 126.22 points or 1.11% to 11,222.48; financials went down by 16.95 points or 0.92% to 1,819.19; and services lost 0.22 point or 0.01% to end at 1,689.74.

Meanwhile, property went up by 9.53 points or 0.31% to 3,011.85; holding firms added 9.27 points or 0.14% to close at 6,539.44; and industrials gained 4.50 points or 0.04% to 9,879.04.

Value turnover went up to P12.23 billion on Thursday with 1.2 billion shares changing hands from the P5.26 billion with 1.09 billion issues traded on Wednesday.

Decliners outnumbered advancers, 102 versus 80, while 54 names closed unchanged.

Net foreign selling stood at P421.32 million on Thursday versus the P143.88 million in net foreign buying seen on Wednesday.

AP Securities’ Mr. Temporal placed the PSEi’s immediate support at 6,700 and resistance at 7,000. — Ashley Erika O. Jose

MRT-3, LRT Line 2 could be bundled for privatization

February 16, 2023 | 8:32 pm

MRT-3-PHILSTAR-MICHAELVARCAS — PHILIPPINE STAR/ MICHAEL VARCAS

By Justine Irish D. Tabile, Reporter

THE Department of Transportation (DoTr) is considering offering Metro Rail Transit Line 3 (MRT-3) with Light Rail Transit Line 2 (LRT Line 2) as a bundle when the commuter transport services are privatized.

Transportation Undersecretary for Railways Cesar B. Chavez said in an interview that the DoTr has created a task force to plan out the privatization of MRT-3, which traverses the main Metro Manila artery, Epifanio de los Santos Avenue, and LRT Line 2, which links the City of Manila to eastern Metro Manila.

“Wala pang final (decision) pero in principle approved na ni Secretary Jaime J. Bautista ang bundling (Nothing is final yet, but Secretary Bautista has approved in principle the bundling for privatization),” Mr. Chavez said.

The DoTr is planning ahead for the expiry of the MRT-3 operator Metro Rail Transit Corp.’s build, lease, and transfer agreement in 2025.

A separate company, Light Rail Manila Corp. (LRMC), operates LRT Line 2.

“Ang daming options either independent operation and maintenance under LRMC or i-bundle namin ’yung MRT-3 sa LRT Line 2 (There are many options: either independent operation and maintenance under LRMC or bundle MRT-3 with LRT Line 2),” Mr. Chavez said.

Mr. Chavez also said that the department is considering variations to its plan of privatizing the operations and maintenance (O&M) of MRT-3 and LRT Line 2.

The options the DoTr is considering are: O&M of both railway systems with the LRT Line 2 extension to Tutuban, Divisoria and Pier 4; O&M plus the rehabilitation of light rail vehicles; or O&M and the replacement of the light rail vehicles.