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Global Ferronickel income slides nearly 69% to P195M

GLOBAL FERRONICKEL Holdings, Inc. (FNI) saw its attributable net income fall by 68.9% to P195.65 million for the second quarter from P628.63 million a year earlier amid lower revenues and higher costs and expenses.

“There are risk factors which we cannot predict or control but could adversely affect our business. Weather events such as changes in rainfall patterns that we experienced in Surigao is one of them,” FNI President Dante R. Bravo said in an e-mailed media release.

Nickel ore export revenues fell 8.3% to P1.98 million, which FNI attributed to lower volume shipped and average realized ore price of Surigao mining operations.

Moreover, the company’s expenses increased by 15.6% to P1.58 billion from P1.37 billion a year earlier.

Consolidated net income went down by 56.7% to P266.49 million from P615.58 million a year earlier, it said.

“We continue to assess and monitor such factors. Additionally, our ongoing diversification aims to respond to such risk and ultimately improve FNI’s portfolio quality and performance. ” Mr. Bravo said.

He saw the year-round operations to continue in the Palawan mine brought about by “milder weather” and “a wet season that is not very pronounced.” 

“As we step up efforts to further diversify, the combined strength of the Surigao and Palawan mines enable us to better navigate the short-term challenges ahead,” he added.

The Cagdianao Mine in Surigao del Norte and the Ipilan Nickel Mine in Palawan, both under FNI’s wholly-owned subsidiary Platinum Group Metal Corp., have a combined yearly shipment capacity of 6.5 million wet metric tons (WMT). 

This accounts for 15% of the total nickel ore exports in the country in terms of volume. 

Meanwhile, the company reported a 19.4% decrease in first-half attributable net income to P349.50 million from P433.71 million from the previous year.

In the six months ending in June, revenues increased by 41.2% to P3.1 billion from P2.2 billion last year. While costs and expenses increased further by 37.7% to P2.2 billion from P1.6 billion previously.

Consolidated net income grew by 49.8% to P625.32 million from P417.42 million a year earlier.

“Strong volumes and higher-grade ores at Palawan mine were the main drivers of growth, partially offset by weaker prices and lower-than-average volumes at Surigao mine,” the company said.

Heavy rains prevented the Surigao mine from gaining stronger production and shipment, it said.

Production of nickel ore reached 1.4 million WMT, up 36.7% from 1.08 million WMT last year. Of the total, Palawan mine output rose by 993.2% to 753,098 WMT while Cagdianao mine output dipped by 26.5% to 747,376 WMT.

Total volume of nickel ore sold also climbed by 41% to 1.46 million WMT which comprised 52% medium-grade and 48% low-grade nickel ore.

However, the average realized price went down by 2.2% to $38.37 from $39.21 a year ago, driven by lower selling prices due to expansion of market supply in Indonesia and “muted demand” in China.

Capital expenditures amounted to P145 million or 4.7% of the revenues for the first half, the company said.

“Looking forward, we remain committed to our capital management strategy that is balanced between investing in growth initiatives, providing returns to stakeholders, while maintaining a strong balance sheet,” Mr. Bravo said.

At the local bourse on Thursday, FNI shares went down by two centavos or 0.81% to end at P2.45 apiece. — Sheldeen Joy Talavera

Philippines’ 50 richest 2023

THE SY SIBLINGS remained the richest in the Philippines, as they added $1.8 billion to their net worth this year, Forbes Asia said on Thursday. Read the full story.

Searching for Sugar Man singer Sixto Rodriguez, 81

A young Sixto Rodriguez in Searching for Sugar Man. —IMDB.COM

SIXTO RODRIGUEZ, an American singer-songwriter whose outsized popularity in South Africa inspired the Oscar-winning documentary Searching for Sugar Man, passed away on Tuesday at the age of 81, a website dedicated to him said on Wednesday.

The Detroit-based Mr. Rodriguez did not know how popular he had become in South Africa, where his songs became anthems for the anti-apartheid struggle in the 1970s. Back in the United States, success had eluded him.

Searching for Sugar Man follows two South African music fans on their journey to discover the fate of Mr. Rodriguez.

The 2012 documentary by Swedish filmmaker Malik Bendjelloul won the Oscar in 2013. Mr. Bendjelloul said at the time that he was drawn to the story because it was like a real-life fairy tale.

Mr. Rodriguez wrote and sang about the hard streets of Detroit in 1970 and was considered by many in the music profession to be a talent on the order of Bob Dylan. His lyrics, set to a heart-stirring rasp of a voice, told about the homeless and the working poor.

Songs titled “Street Boy,” and “Inner City Blues,” and “Cause” told the tale of society in decline and the cold comfort of the drug dealer around the corner: “Sugar Man.” His two albums of the 1970s, Cold Facts and Coming from Reality, had no commercial success in the United States.

“You have to be ready for rejection, criticism and disappointment, so those kinds of things are pretty much built into any career and so with music, it’s such,” Mr. Rodriguez said at the premiere of the documentary.

“So, yeah, it was a disappointment to me then, but look at this, it’s quite something to be here.”

His fame soared after the documentary and he performed at top music festivals like Glastonbury in Britain and Montreaux Jazz Festival in Switzerland.

The Sugarman.org site did not reveal the cause of death, but earlier this year said he underwent an operation to repair damage caused by a stroke in February. Mr. Rodriguez is survived by three daughters. — Reuters

PLDT signs talent engagement, retention partnership with LinkedIn

WIKIMEDIA COMMONS/PATRICKROQUE01

PLDT, Inc. said it has entered into a partnership with professional network LinkedIn to help engage and retain premium talent.

According to the partnership agreement, PLDT will be tapping LinkedIn solutions that give its employees access to over 20,000 courses on the professional network’s platform.

“LinkedIn will be in step with us on market intelligence, talent engagement and learning, to help achieve our aspiration of becoming the best workplace,” said Gina P. Ordoñez, PLDT’s chief people officer.

Aside from the online courses, the partnership will also allow employees of PLDT and wireless unit Smart Communications, Inc. to access LinkedIn’s Glint platform and LinkedIn Talent Insight system.

Glint is LinkedIn’s people success platform that leverages real-time data to help organizations increase employee engagement, while its Talent Insight system allows organizations to recruit and manage talent more strategically.

Atul Harkisanka, head of emerging markets for the Philippines at LinkedIn, said the company’s research shows that one of the top priorities for professionals when choosing or staying at a job is having adequate learning and development opportunities.

“By investing in all aspects of managing the employee experience, the PLDT Group shows that they are serious about building a people-centric culture, as well as an agile and resilient workforce,” he said.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Justine Irish D. Tabile

Evaluating the effectiveness of corporate strategies

In the dynamic and competitive landscape of the business world, corporate strategies play a pivotal role in determining an organization’s success. Developing and implementing effective strategies is essential for achieving long-term growth, sustainability, and competitive advantage.

However, the mere formulation of strategies is not enough; evaluating their effectiveness is crucial to ensure that they align with organizational goals and drive positive outcomes. There are several key considerations and methodologies for evaluating the effectiveness of corporate strategies.

Corporate strategy effectiveness refers to the extent to which a company’s strategies achieve their intended objectives and deliver value to stakeholders. This evaluation process involves assessing whether the strategies have led to improved financial performance, market share growth, increased customer satisfaction, enhanced operational efficiency, and other desired outcomes. Effective strategies should align with the organization’s mission, vision, and values while adapting to changes in the external environment.

To evaluate the effectiveness of corporate strategies, one key consideration is that organizations must establish clear and measurable objectives. These objectives should be translated into key performance indicators (KPIs) that can be tracked and monitored over time. KPIs provide a quantifiable way to assess progress and success.

Effective strategies should also meet the expectations of various stakeholders, including shareholders, customers, employees, and regulators. Regular feedback from stakeholders can provide insights into whether the strategies are meeting their needs and creating value.

Moreover, corporate strategies should be consistent with environmental changes. Since the business environment is constantly evolving, strategies that were effective in the past may become obsolete due to technological advancements, regulatory changes, shifts in consumer preferences, or competitive pressures. Evaluating strategy effectiveness involves assessing whether the strategies remain relevant and adaptable in the face of these changes.

Successful strategy implementation also requires allocating the necessary resources, both financial and human, and executing plans effectively. Evaluation should consider whether resources were allocated optimally and if the execution followed the intended timeline and processes.

There are several methodologies for evaluating strategy effectiveness. One is measuring and comparing financial metrics. Financial performance metrics, such as revenue growth, profitability, return on investment (ROI), and shareholder value, are common indicators of strategy effectiveness. Comparing these metrics before and after strategy implementation can provide insights into its impact.

Changes in market share and the organization’s position within the industry can also indicate the success of competitive strategies. Gaining market share or moving up in industry rankings suggests that the strategy is effective in capturing customer attention and trust.

Measuring customer satisfaction and loyalty is another method. Strategies that focus on improving customer experience and satisfaction can be evaluated through customer feedback, surveys, and Net Promoter Score (NPS). Increased customer loyalty and positive sentiments suggest the strategy is resonating with the target audience.

Operational efficiency metrics can also be monitored and measured. Since streamlining operations and optimizing processes are often key components of corporate strategies, metrics like operational costs, production efficiency, and supply chain performance can indicate the success of such strategies.

For strategies centered around innovation and research and development, metrics might include the number of new products or services launched, patents filed, and the speed of bringing innovations to market.

In sum, evaluating the effectiveness of corporate strategies is a multidimensional endeavor that requires a holistic approach. By considering clear objectives, stakeholder alignment, adaptability, and resource utilization, organizations can assess the impact of their strategies on overall performance. Utilizing a combination of financial metrics, market indicators, customer satisfaction data, and operational efficiency measures provides a comprehensive picture of strategy effectiveness. Regular assessment and adjustment of strategies based on evaluation results are essential for maintaining competitiveness and achieving sustainable growth in today’s ever-changing business landscape.

 

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 chairman 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

Barbie is dull, dumb, and lifeless. Just a life in plastic

The biggest problem with the Barbie movie is that it’s built on a lie, illustrated by the fact (as reported by Variety) that its marketing budget ($150 million) was bigger than its production cost ($145 million). It was marketed as a cheery, family friendly, and — most importantly — child appropriate movie when in truth it is far from it.

Instead, Barbie is a vacuous, man-hating, anti-family, anti-marriage movie that presents an utterly confused view of femininity — vacillating between seeing it as an essence of womanhood and (quite ironically) a weakness.

“From the opening scenes of little girls bashing their baby dolls on rocks in a symbolic rejection of motherhood to the final scene where Barbie is so empowered and self-actualized that she visits a gynecologist for the first time, the film criticizes women’s impulses toward motherhood, love, and femininity and leaves the lead character standing alone in the real world with no friends, no husband, no children and only the medical industrial complex by her side,” writes Libby Emmons in the website Human Events (“The new Barbie movie is an anti-motherhood, man-hating tangle of daddy issues posing as a tale of female empowerment,” Human Events, July 2023).

“While the film has been touted as a feminist triumph, it could be more accurately described as a tale of Barbie’s downfall. She goes from a woman who knows what she wants to a woman without a home, without friends, without family, searching for meaning, desperate to ‘be part of the people who make meaning,’ and trying to find herself in the barren depths of her own, neutered reproductive system,” she writes.

The movie essentially hinges on creating a strawman against masculinity (aka “the patriarchy”): Ken is a weak and effeminate moron, an underdeveloped boy, the kind that grew up without a strong father figure — emotional, vain, always demanding to be the center of attention, manipulative, controlling everyone. That is not manhood — that is just a scorned bitter woman’s self-delusion about the ex that left them for a more beautiful woman.

The alleged moral plea of the movie, the one supposedly justifying the vapidness of the entire exercise, was America Ferrera’s monologue. But even that falls flat as a misguided, completely self-centered, and unaware bit of whining:

“It is literally impossible to be a woman. You are so beautiful, and so smart, and it kills me that you don’t think you’re good enough. Like, we have to always be extraordinary, but somehow we’re always doing it wrong.

“You have to be thin, but not too thin. And you can never say you want to be thin. You have to say you want to be healthy, but also you have to be thin. You have to have money, but you can’t ask for money because that’s crass. You have to be a boss, but you can’t be mean. You have to lead, but you can’t squash other people’s ideas. You’re supposed to love being a mother, but don’t talk about your kids all the damn time. You have to be a career woman but also always be looking out for other people.

“You have to answer for men’s bad behavior, which is insane, but if you point that out, you’re accused of complaining. You’re supposed to stay pretty for men, but not so pretty that you tempt them too much or that you threaten other women because you’re supposed to be a part of the sisterhood.

“But always stand out and always be grateful. But never forget that the system is rigged. So, find a way to acknowledge that but also always be grateful.

“You have to never get old, never be rude, never show off, never be selfish, never fall down, never fail, never show fear, never get out of line. It’s too hard! It’s too contradictory and nobody gives you a medal or says thank you! And it turns out in fact that not only are you doing everything wrong, but also everything is your fault.”

What’s so annoying about this spiel is how disconnected it is from reality, how utterly jejune, how passé. Male discrimination? In 2023, really?

The Philippines itself ranks among the world’s best places for a woman to live in, ranked fourth in the world in 2022 with the most women managers (including in media), had two women presidents, a former Chief Justice (and associate justices), and numerous members of Congress. The 2023 World, Business, and the Law report saw the Philippines having perfect scores for women in relation to “workplace,” “pay,” and “entrepreneurship.”

And yet the banal inanity of this entire speech could be simply exposed by exchanging “woman” with “man” and vice-versa — it is just a vain, self-pitying, infantile complaint not on the travails of being a woman but on adulthood. Each and every word describes a burden carried by any responsible grownup, woman or man. Get over it.

However, it is in this self-pitying, victimhood schtick that Barbie’s attraction precisely lies. So much so that “some women are even vowing to ditch their boyfriends if they don’t agree with the movie’s feminist message” (“Women are deciding to break up with their boyfriends after watching Barbie,” Unilad, August 2023). Aside from gratifyingly admitting that Barbie is indeed a feminist hit piece, it’s comforting to note that the movie does provide a public service: it at least makes woke women advertise their red flags and helpfully allow young men to escape the nut cases.

Which leads then to the truly damaging thing about Barbie and that is its feminist anti-marriage stance: glamorizing and idealizing the Eat Pray Love fantasy, of a woman’s life without husband and children, which reality exposes as a complete deception.

A new study (Peltzman, Sam, The Socio Political Demography of Happiness (July 12, 2023). Available at SSRN: https://ssrn.com/abstract=4508123 or http://dx.doi.org/10.2139/ssrn.4508123) found, accounting for “differences along standard socio demographic dimensions: age, race, gender, education, marital status income and geography,” including “political and social differences,” found that “being married is the most important differentiator with a 30-percentage point happy-unhappy gap over the unmarried” (emphasis supplied).

Barbie is just an overwrought self-absorbed solipsistic woke lecture that could ultimately harm the very women it supposedly sought to inspire.

 

Jemy Gatdula is a senior fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence

https://www.facebook.com/jigatdula/

Twitter  @jemygatdula

Cebu Landmasters records P1.68-B income for first half

LISTED Visayas-Mindanao developer Cebu Landmasters, Inc. saw a 9% rise in attributable net income to P1.68 billion for the first half from P1.55 billion a year prior amid a rise in revenues, an official said.

“CLI [took] opportunities of the advantages we have [as] we continued to grow at a strong pace…this is driven by a strong growth in revenue across all our segments; from premium, middle market, and affordable segments,” CLI Chief Operating Officer Jose Franco B. Soberano said in a media briefing on Thursday.

The company reported that consolidated revenues for the six-month period went up by 23% to P9.15 billion from P7.36 billion on the back of higher progress for construction and take-up of new launches.

CLI’s rental revenues went up by 41% to P50 million for the first semester, on the back of rental increases and higher occupancy rate.

Its hotel operation was further propelled by an increase in bookings and higher room rates at its Citadines Cebu City property, achieving 74% growth.

“[The] company is expected to grow its recurring income with three more hotels opening within the year, with the openings of lyf Cebu City, Citadines Bacolod City and CLI’s first co-living brand The Pad Co-Living in Banilad Cebu City,” it said in a disclosure.

CLI Property Management, Inc., its property management arm, reported a 26% increase in management revenues to P31 million after the completion of 28 projects during the period.

The majority of the company’s reservation sales, accounting for 35% of the period’s total, originated from Davao. CLI achieved substantial sales in the region by opening its inaugural house and lot project, achieving 80% sales within three days.

Furthermore, 31% of the sales were attributed to CLI’s Cebu operation, 15% from Bohol, 8% from Bacolod and Palawan combined, and the remainder from its properties in Dumaguete.

During the first half, the company launched six new projects worth a total of P13.5 billion. Its properties are no in 16 key cities throughout the country.

“CLI remains to be at the forefront of the action, while maintaining a strong financial and operational discipline in order to healthily sustain the company’s growth,” CLI Chairman, President and Chief Executive Officer Jose R. Soberano III said.

On Thursday, shares for CLI went up by 0.75% to P2.67 apiece. — Adrian H. Halili

How PSEi member stocks performed — August 10, 2023

Here’s a quick glance at how PSEi stocks fared on Thursday, August 10, 2023.


Selecting internal talent for promotion

Headhunters are having difficulty finding candidates to fill a management post after a long-time employee retired this year. Aside from headhunting, what’s the best way to find a suitable replacement? — Blind Mice.

I’m using the name “Blind Mice” (jokingly) to highlight what you’re missing in the process of succession planning to ensure business continuity. Talking to executive headhunters suggests that they don’t have a program designed to discover and nurture internal candidates.

Even without a formal succession plan, you should have known a long time ago that someone is retiring. That means you should have actively prepared some people as a possible replacement, assuming that your management decides to distribute the tasks to those who can perform them, which you need to explore as an option.

You can’t hide behind the excuse that the organization lacks internal talent. There’s no such thing if you know how to discover and nurture people so they can fit into management roles later on. Even if there are many internal candidates, the best approach is to send them to an external service provider who can assess their readiness for the job.

SIX STEPS
Forget the headhunters for a while. Instead, let’s focus on the many options that you can pursue under the circumstances. First and foremost, you must promote someone from within the organization. There’s no better choice but to look for talent inside the organization, even if the soon-to-retire executive believes no one can replace him yet.

Ignore him. After all, he shares the blame for the lack of talent and the unpreparedness of potential successor to assume the job. Now, do the following:

One, formalize the internal job vacancy announcement. Give applicants a reasonable timeline — not more than three weeks — to apply so potential candidates do not drag their feet. This allows candidates from other departments to come forward and bid for the position.

Outline the application process so internal candidates will know how to proceed, including the need for all applicants to undergo external assessments and the relevance of their performance over the last five years.

Two, require applicants to undergo a competency test. This is the best way to ensure objectivity in the process. Even if there’s only one candidate, it’s best for him to undergo such evaluations so that your organization will know if they’re fit for the job. If there appear to be many potential candidates, a service provider can recommend their number one choice for the job.

Three, ensure the completeness of the provider’s system. Central to this is the assessment center approach that includes the in-basket experience, case study and analysis, group discussions and role-playing, among others. All this must include the most common situations that are often experienced by the incumbent.

The more difficult the simulated situations are, the better that all candidates be put through them.

Four, decide on the result of the competency test. Even if all candidates fail the test, choose the candidate with the highest rating. Don’t stop there. Validate your decision by reviewing the performance of that candidate over the last five years. You may also include other job requirements but ensure they’re all objective and are included in the job vacancy announcement.

Five, consider other relevant leadership factors. This includes the candidate’s critical thinking skills, amiability, ability to work in teams, attitude, willingness to volunteer time and many more. Again, these requirements may be included in the job vacancy announcements so that candidates know where they stand at the outset.

Six, use seniority as a tie-breaker. Candidates with the most years of service must not be considered automatic shoo-ins for any promotion, especially if they show an average performance rating or poor attendance.

Last, create an ad hoc management committee to decide. You may include the incumbent executive in the committee. But be cautious about how the incumbent could derail the process or delay the proceedings. Remember that he was part of the problem for not ensuring that a successor is ready to come onboard anytime.

If you suspect as much, prepare for any eventuality. At any rate, I’m sure the department heads have a better sense of what to do, especially if they know that the outcome of the process will greatly benefit the organization’s future.

 

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

Shares drop on slower-than-expected GDP growth

PHILIPPINE STAR/KRIZ JOHN ROSALES

PHILIPPINE STOCKS dropped anew on Thursday as slower-than-expected economic growth in the second quarter soured investor sentiment.

The Philippine Stock Exchange index (PSEi) fell by 80.79 points or 1.23% to close at 6,449.66 on Thursday, while the broader all shares index went down by 34.78 points or 0.99% to end at 3,445.38.

“The market fell after a surprisingly disappointing Philippine second quarter GDP (gross domestic product) print of 4.3%, which was far below consensus forecast of 6%. This raised investor concerns that full-year growth will fall below the government’s target of 6-7% and drag the performance of listed companies,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“The local equities market tumbled after the Philippine statistics office reported second quarter GDP results, which was much lower than consensus estimates. This is relevant considering that the Philippines has been highly regarded to deliver one of the highest growth for this year and 2024. The latest report can lead to adjustments in growth projections,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan likewise said in a Viber message.

The Philippine economy grew by 4.3% in the second quarter, slower than the 6.4% expansion seen in the first quarter and the 7.5% in the same period a year ago, the Philippine Statistics Authority reported on Thursday.

The second quarter print fell below the 6% median estimate of 21 economists in a BusinessWorld poll conducted last week.

For the first half of the year, GDP growth averaged 5.3%, still below the government’s 6-7% goal for the year.

“That, coupled with the market bracing for an anticipated higher US CPI (consumer price index) data later today, spooked investors. Inflation concerns have resurfaced and can put pressure on CPI in the coming month,” Mr. Vistan added.

All sectoral indices declined on Thursday. Mining and oil plummeted by 315.71 points or 3.12% to 9,790.58; property dropped by 42.81 points or 1.56% to 2,699.68; services fell by 22.75 points or 1.43% to 1,567.95; industrials declined by 125.86 points or 1.37% to 9,010.62; holding firms went down by 78.25 points or 1.26% to 6,117.84; and financials lost 2.73 points or 0.14% to end at 1,912.91.

Value turnover went up to P3.64 billion on Thursday with 513.68 million shares changing hands from the P3.39 billion with 428.38 million issues seen on Wednesday.

Decliners outnumbered advancers, 107 versus 57, while 51 names closed unchanged.

Net foreign selling stood at P268.5 million on Thursday versus the P214.67 million in net buying recorded on Wednesday.

For Friday, Mr. Vistan placed the PSEi’s support at 6,400. — A.H. Halili

Peso slips on weaker Q2 economic growth

BW FILE PHOTO

THE PESO slipped against the dollar on Thursday following the release of data showing that the Philippine economy grew slower than expected in the second quarter.

The local currency closed at P56.22 versus the dollar on Thursday, weakening by two centavos from Wednesday’s P56.20 finish, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Thursday’s session weaker at P56.25 per dollar. Its intraday best was at P56.13, while its worst showing was at P56.45 against the greenback.

Dollars traded rose to $1.24 billion on Thursday from $996.2 million on Wednesday.

The peso was dragged down by data showing slower gross domestic product (GDP) growth last quarter, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The peso depreciated following the weaker-than-expected Philippine GDP report for the second quarter,” a trader likewise said in an e-mail.

The Philippine economy expanded by 4.3% in the second quarter, the slowest in two years, Philippine Statistics Authority data released on Thursday showed.

The second-quarter print was slower than the revised 6.4% growth in the first quarter and 7.5% in the same period a year earlier. It was also well below the 6% median forecast in a BusinessWorld poll of 21 economists conducted last week.

For the first half, GDP growth averaged 5.3%, lower than the government’s 6-7% target.

Mr. Ricafort added that global crude oil prices hitting new highs recently also contributed to the weaker peso.

On Thursday, Brent crude edged up by 14 cents to $87.69 a barrel by 0757 GMT while West Texas Intermediate crude (WTI) crept up by 1 cent to $84.5, Reuters reported.

Oil prices hit new peaks on Wednesday with the global Brent benchmark touching its highest since January after a steep drawdown in US fuel stockpiles and Saudi and Russian output cuts offset concerns about slow demand from China.

Brent crude settled $1.38 or 1.6% higher at $87.55 a barrel, its highest since Jan. 27.

WTI closed $1.48 or 1.8% higher at $84.40, its highest since November 2022

For Friday, the trader said the market could react to the US consumer price inflation report set to be released overnight.

The trader expects the peso to move between P56.15 and P56.35 per dollar on Friday, while Mr. Ricafort sees it ranging from P56.10 to P56.30. — A.M.C. Sy with Reuters

Agencies ordered to draft catch-up spending plans

BW FILE PHOTO

THE Department of Budget and Management (DBM) said it issued a circular directing government agencies to submit their spending catch-up plans next month.

“There is a need to ascertain the underlying causes or reasons for the underperformance (in spending) and undertake measures to address them,” according to the circular, which was released to reporters.

The DBM acknowledged, though, that preliminary data indicated that the implementation of programs was ongoing or were encountering billing or payment concerns or other issues.

Nevertheless, the department “will be requiring all agencies to periodically undertake a data analysis which will cover programs and projects with historical trends of low disbursement and those with anticipated delays.”

The analysis needs to include a comparison of project performance against targets, and a delivery and execution strategy to address delays.

Agencies must also submit to the DBM a list of their latest available financial and physical accomplishments, updates on the status of flagship programs, and catch-up plans to meet their spending targets for the year. The deadline for these reports is Sept. 15.

The DBM said it will “closely monitor the status of program and project implementation to ensure that the government achieves disbursement targets.”

The economic managers in a joint statement on Thursday said that they will work on accelerating budget execution for the remainder of the year.

“While government expenditure contracted by 7.1% in the absence of election-related spending in the first half of the year, government spending will accelerate in the coming quarters to allow us to recover our growth momentum,” according to the joint statement.

“Government agencies, including local and regional government entities, are encouraged, if not instructed, to formulate catch-up plans, accelerate, and even frontload the implementation of said programs and projects. Line agencies already have their catch-up plans and are enjoined to implement these urgently,” it added.

Government spending rose 0.42% to P2.41 trillion in the first six months. However, this was 6.6% lower than the P2.58 trillion targeted for the first half.

The DBM reported a cash utilization rate by government agencies of 98% at the end of June, behind the year-earlier pace of 99%.

The National Government, local governments and state-owned companies used P2.01 trillion out of the P2.06 trillion worth of Notices for Cash Allocation issued as of the end of June. — Luisa Maria Jacinta C. Jocson

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