BIR to pursue rightsizing

August 19, 2022 | 5:40 pm

The Bureau of Internal Revenue (BIR) said that it will “rightsize” some of its offices as it ramps up its digitalization efforts, while also noting insufficiencies in the implementation of its electronic invoicing platform.

“[Rightsizing] is what we will do. We will scrap and build some items in the Bureau of Internal Revenue, and introduce cybersecurity experts [and] data scientists … as well as a data governance office; it is very important that we have such positions to make this digital transformation happen and be successful,” BIR Commissioner Lilia C. Guillermo said during the 1st SyCip Gorres Velayo & Co. (SGV) Tax Symposium on Friday.

The revenue collecting agency adheres to four pillars for its digitalization efforts: strengthening of the BIR organization; modernizing the digital backbone of the BIR; enhancing policies, governance, and standards; and elevating taxpayer experience and innovating BIR services.

In his first State of the Nation Address, President Ferdinand R. Marcos, Jr., cited the National Government Rightsizing Program as a legislative priority.

Budget Secretary Amenah F. Pangandaman also previously said that her department is finalizing a proposed measure to rightsize the bureaucracy, which will be submitted to Congress.

Meanwhile, Ms. Guillermo said that only 15 out of 100 large taxpayers have responded to the BIR’s invitation for digitalization through its e-receipts and e-invoicing system.

“Hindi lang po BIR dapat ang mag-digital transformation (The BIR shouldn’t be the only undergoing digital transformation)… [for] audits to be done very conveniently,” Ms. Guillermo said, citing how some firms still prefer a manual system. “Those who are prepared, please volunteer already.” — Diego Gabriel C. Robles

BoP deficit hits $1.82 billion in July

August 19, 2022 | 5:37 pm

US-dollar-currency — GIORGIO TROVATO-UNSPLASH

The country’s balance of payments (BoP) position remained in a deficit for a fourth straight month in July, as more dollars flowed out of the country to pay for the government’s foreign debt.

Data released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed the BoP deficit widened to $1.819 billion in July, a turnaround from the $642 million surplus in the same month last year.

This is also the widest deficit posted in 17 months or since $2.019 billion in February 2021. The July deficit is also higher than the $1.574 billion gap in June.

“The BoP deficit in July 2022 reflected outflows arising mainly from the National Government’s (NG) foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures,” the BSP said in a statement.

The BoP measures the country’s transactions with the rest of the world at a given time. A deficit means more funds fled the economy than what went in, while a surplus shows that more money entered the Philippines.

In the first seven months of the year, the BoP deficit widened to $4.920 billion, from the $1.297 billion deficit in the same period in 2021.

“Based on preliminary data, this cumulative BoP deficit reflected the widening trade in goods deficit,” the central bank said.

The trade deficit for January-June 2022 reached $29.793 billion, up from the $17.953 billion deficit posted in the same period last year, preliminary data from the Philippine Statistics Authority’s (PSA) showed.

The central bank also noted that this BoP position reflects the final gross international reserves (GIR) level of $99.8 billion as of end-July, 1.09% lower than the $100.9 billion as of end-June.

“Nonetheless, the latest GIR level represents a more than adequate external liquidity buffer equivalent to 8.3 months’ worth of imports of goods and payments of services and primary income,” the BSP said.

“Specifically, it ensures availability of foreign exchange to meet balance of payments financing needs, such as for payment of imports and debt service, in extreme conditions when there are no export earnings or foreign loans.”

The GIR can also cover up to 7.2 times the country’s short-term external debt based on original maturity and 4.6 times based on residual maturity.

“Short-term debt based on residual maturity refers to outstanding external debt with original maturity of one year or less, plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months,” the central bank said.

China Banking Corp. Chief Economist Domini S. Velasquez said the BoP deficit may narrow slightly in the next few months, as global commodity prices subside.

“Downside risks to BoP is that lower import prices will be challenged by anemic growth in exports as global growth slows. Additionally, as the national government pays off its foreign currency debt and shifts to domestic sources, additional withdrawals are likely,” Ms. Velasquez said.

Earlier, the Monetary Board revised its BoP deficit forecast to $6.3 billion, or equivalent to -1.5% of gross domestic product (GDP), higher than the previous projection of a $4.3 billion gap (-1% of GDP).

The BSP also projected a wider current account deficit at $19.1 billion (-4.6% of GDP) this year, from $16.3 billion (-3.8% of GDP) previously.

The country’s GIR is expected to hit $105 billion by end-2022 and $106 billion by end-2023, lower than the March projections of $108 billion and $109 billion, respectively. – Keisha B. Ta-asan

PDP preliminary framework unveiled

August 19, 2022 | 5:32 pm

slum area — PHILIPPINE STAR/ MICHAEL VARCAS

The National Economic and Development Authority (NEDA) unveiled an updated preliminary framework for the Philippine Development Plan (PDP) for 2023 to 2028, focusing on human capital and income development, as well as revitalizing the major sectors of agriculture, industry, and services.

“It has to be about developing and protecting the capabilities of individuals and families. We want them to have the capabilities to be able to earn more and to be able to protect those earnings,” NEDA Undersecretary Rosemarie G. Edillon said during the 1st SyCip Gorres Velayo & Co. (SGV) Tax Symposium on Friday.

In an email to BusinessWorld, Ms. Edillon clarified that the framework she presented during the forum was updated just the previous day (Aug. 18).

As outlined in the presentation, promoting human capital and social development will entail boosting health and nutrition; improving education and lifelong learning; and establishing livable communities.

“We need to address these learning losses, pre-pandemic and then during the pandemic, so we can grow much faster going forward,” Ms. Edillon said in her presentation.

On the other hand, the goal of increasing income earning ability will require expanding training and skills development and intensifying employment facilitation.

At the same time, the protection of purchasing power is envisioned by ensuring food security and rationalizing social protection by targeting help to the most needy.

Meanwhile, another aspect of the framework concerns itself with transforming production sectors to generate more quality jobs and competitive products.

The modernization of agriculture and agri-business, the revitalization of industry, and the reinvigoration of the services sector will be achieved through advanced research and development, technology, and innovation; enhanced inter-industry linkages; and promoted trade and investments.

The framework also mentions appropriate government interventions, namely: to ensure macroeconomic stability; expand and upgrade infrastructure; promote competition and regulatory efficiency; attain peace and security; good governance and bureaucratic efficiency; and accelerate climate action and strengthen disaster resilience.

The framework will be finalized by next week, Ms. Edillon said.

“If ever, [there will be] very minimal changes and perhaps [it] will just need to be reflected in the long [and] more detailed PDP. If the latter, then there is no need to revise the PDP strategy framework,” she said in the email.

During the forum, Ms. Edillon acknowledged the risks to growth, which include inflation, high input costs, the fiscal deficit, and the slowdown in global demand.

“If this one actually factors into inflationary expectations, then it will have an impact on consumption, and that’s easily three-fourths of our GDP (gross domestic product), of our demand,” she said. “The slowdown on global demand would have an impact on our exports [and] manufacturing as well.”

Global commodity prices have surged in recent months due to the ongoing Russia-Ukraine war and supply chain disruptions. Prices of wheat and fertilizer have soared amid tight global supply, putting pressure on the domestic agriculture industry.

Inflation stood at 6.4% in July, bringing the seven-month average to 4.7%.

The government set its inflation rate assumption to 4.5-5.5% for 2022, reflecting the impact of soaring transport, fuel, and food expenses.

The debt-to-GDP also stood at 62.1% at the end of the second quarter, above the threshold prescribed by multilateral lenders for developing markets.

Earlier this week, Ms. Edillon told reporters that the NEDA is working to fast-track the submission of the new PDP before its deadline in December.

The PDP serves as the government’s overall guide in development planning. The new PDP being created by the NEDA is also anchored in an eight-point socioeconomic agenda that also mentions ensuring food security, reducing transportation and logistics costs, and bringing down the high cost of power.

The near-term agenda also includes mitigating the scarring impact of the pandemic by addressing learning losses and strengthening social protection, as well as ensuring sound macroeconomic fundamentals by improving bureaucratic efficiency.

The PDP coincides with the government’s medium-term fiscal strategy which aims to attain 6.5-7.5% GDP growth this year, and 6.5-8% next year until 2028.

BSP to respond, but not match Fed rate hikes

August 19, 2022 | 5:29 pm

The Philippine central bank will respond to the US Federal Reserve’s policy tightening, but does not have to match the magnitude of its rate hikes, its governor said on Friday.

“We will not match them (the Fed) point by point,” said Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla, in an ambush interview with reporters.

The Southeast Asian nation’s monetary policy remains accommodative and supportive of growth, Mr. Medalla told a business forum.

BSP increased its benchmark interest rates by half a percentage point to 3.75% on Thursday, as expected, ahead of a widely anticipated 50 or 75 basis points rate hike by the Fed next month.

“If they do (raise rates by 75 basis points) … that needs a reaction,” Mr. Medalla said.

BSP will consider a pause in rate hikes if the Fed “has very mild increases” or if the US goes into a “fairly deep recession,” he added.

“One scenario is the pause starts next meeting. The other scenario the pause starts two meetings from now. The other one, the pause comes next year. All of these are possible at this point,” Mr. Medalla said. — Keisha B. Ta-asan with Reuters

Big data to expedite PHL post-pandemic recovery — ADB

August 19, 2022 | 5:24 pm

Art-big-data-blur-373543 — Pixabay, CC0, via Wikimedia Commons

Big data holds “immense promise” for expediting the region’s post-pandemic recovery, the Asian Development Bank said.

According to a 2022 report on the potential of big data in Southeast Asia (SEA), there are vast amounts of information that can be used to optimize public health, education, and social protection.

“Public institutions have turned to big data because of its analytical power to turn voluminous datasets into actionable insights that can help them respond swiftly to crises, improve their services, and enhance resilience to future shocks,” it said.

In the Philippines, where there are 17 health care workers (four doctors, nine nurses, and four midwives) for every 10,000 persons, big data can be leveraged through remote monitoring systems to reduce patient hospitalization and emergency room visits, the report said.

It can likewise be used to analyze job portals to understand skill trends and develop courses that respond to industry needs.

In the social welfare and protection sector, big data can provide an alternative source of poverty estimates to complement traditional statistics such as household-based surveys.

A challenge the Philippine Identification System (PhilSys) encountered when it extended social assistance this pandemic was the lack of identification cards (IDs) among Filipinos, said Emily R. Pagador, an assistant national statistician at PhilSys, in a webinar organized by the ADB on Aug. 17.

The current system, Ms. Pagador said, has multiple records and beneficiary registries, which are siloed.

“PhilSys can connect these different registries,” she said. “With the digital IDs we provide, we can ensure the uniqueness of each beneficiary.”

“The [Philippines’] main challenge is readiness in terms of interoperability — especially in the government sector, where some of our systems are still legacy systems,” she added.

Governments need to calibrate their policies and programs with aggregated data because people’s needs are diverse and ever-changing, said Elaine Tan, advisor and head of the statistics and data innovation unit of ADB’s economic research and regional cooperation department.

“Governments … need timely and future information from which to aggregate and apply algorithms on raw insights with high frequency. Governments can use it to track changes,” she said at the same event.

“We don’t want data insights and policies that are based on data a few years old — especially when we have such fast-moving disasters and global environments,” she added. “We need to take the perspective that data is an asset, and therefore, the costs related to getting these data systems up is an investment.”

In Cambodia, PPP projects seen as key to capitalizing on big data

In Cambodia, public-private partnerships are encouraged to develop big data applications.

“[We don’t have] the human resources able to capitalize that big data into its full potential,” said Nguonly Taing, executive director of Techo Startup Center, a public administrative institution under the guardianship of Cambodia’s Ministry of Economy and Finance.

“That’s why we need entrepreneurs and the private sector to help the government,” he added.

The Cambodia Data eXchange (CamDX), patterned after Estonia’s X-Road, builds an infrastructure that allows for secure data access across government databases, with minimal technical changes in existing information systems.

“We allow each line ministry to have their own system to create and manage data by themselves, with one condition: that they open up their data and share it with others,” Mr. Taing said. “We thought that we could try Estonia’s model, [to be an] information highway for data to flow from one to another … We are providing the experimentation to support this concept.”

The country’s Ministry of Health has also recently partnered with Metfone, a local telecommunications company, to provide digital services for Cambodia’s medical sector. This includes the utilization of a Picture Archiving and Communication System (PACS) to store and share images created by medical equipment such as ultrasounds and X-rays. – Patricia B. Mirasol

Globe bags UN SDG Award for ‘People’ in 1st SDG Awards in the Philippines

August 19, 2022 | 3:18 pm

Globe, the country’s digital solutions provider, leveraged its strength in technology to keep its 8,000 employees safe, connected, and engaged during the pandemic. With this, Globe took home the first-ever United Nations Sustainable Development Goal (UN SDG) Awards under the People Category hosted by the UN Global Compact Network Philippines (UNGCP).

The Awards, which recognize companies that have showcased best practices in implementing the UN SDGs in their operations, recognized Globe for its outstanding contributions to people’s overall wellness.

The recognition affirms Globe’s commitment to the United Nations Sustainable Development Goals, particularly UN SDG No. 3, which promotes healthy lives and well-being for all, and SDG No. 9 on fostering innovation.

“It is with deep gratitude and thanks that we receive this award. The pandemic has taught us to maximize the power of technology to bridge connections and keep our employees together. This award inspires us to stay true to our commitment,” said Nico Bambao, Globe’s People Experience Director, during the virtual awards ceremonies held recently.

Globe immediately saw the need to support and enhance the physical and mental well-being of its workforce, especially during the lockdowns when people were forced to juggle responsibilities at home and at work.

With technology within its reach, Globe used the opportunity to develop internal digital solutions for employee communication and connection such as:

DUDE Bot – Digital Usher for Disaster and Emergencies, a Workplace chatbot designed to perform automated daily health checks and direct employees to relevant sources of information, links to healthcare partners, and direct contacts to the company’s COVID-19 Response Team for immediate support.
HopeChat – a 24/7 counseling platform co-developed with Australia-based Virtual Psychologist (VP) in July 2020 to help employees cope with the psychological impact of COVID-19.
GCheck – a self-assessment tool that determines if an employee is allowed to enter Globe premises for the day. Fit-to-work unlocks GAccess space features, while the latter triggers the HR COVID-19 team for support.
Wanda – a recognition chatbot that enables employees to send special e-Cards to one another to nurture Globe’s culture of recognition even while working apart.

By implementing these technologies, Globe was able to manage employees’ health remotely and when they needed to visit the office.

“Our employees and workforce are major factors in delivering uninterrupted services to Filipinos, especially during the pandemic so we had to keep them safe and healthy. We value our connections at work the way we value our customers,” said Bambao.

To learn more about Globe’s sustainability initiatives, visit https://www.globe.com.ph/about-us/sustainability.htm l.

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7 Kitchen products to make your space more comfortable and organized

August 19, 2022 | 3:00 pm

If you plan to build a space for a countertop in your kitchen, this is your sign to do it because it is versatile and space-efficient. Consider these bar chairs, trays, jar canisters, mugs, mug tree holders, charger plates, and fruit baskets from Heim decors and organizational products, which Wilcon Depot exclusively offers for an opulent-looking bar that your family will enjoy.

Comfortable Bar Chairs

A bar or breakfast countertop setup will never be complete without bar chairs for comfortable seating while waiting for breakfast or eating snacks. These sleek bar chairs are designed with adjustable height to fit your kitchen’s size and make you comfortable while unwinding. In addition, these bar chairs have a variety of colors and designs to choose from that can add texture and style depending on your home themes.

Modern Trays

From being a tool to serve food quickly, these trays can also be decorations on countertops or a place for the powdered beverages jar to organize your bar or coffee table. The aesthetic patterns and opulent style colors can add elegance to your breakfast countertops or coffee table. Make your kitchen tidy and aesthetically pleasing to the eyes with these trays.

NEW: Organize Your Countertops With These Jar Canister

Start organizing your countertops with these jar canisters that are reusable and sustainable. Jar canisters are made of glass, which is an excellent choice for your minimalist coffee table and countertops. These are also easy to clean and sanitize. In addition, the transparent design of these jars allows you to check the content inside without a hassle.

NEW: Your New Coffee Or Tea Partner

One of the essentials that we must not forget in creating breakfast countertops is the mug. These bright color mugs will be your new favorite tea or coffee partner because it is made in porcelain which is heat resistant and durable. These mugs are a must-purchase to add aesthetics to your breakfast countertops or coffee table.

Versatile Mug Tree Holders

For convenience, these mug tree holders are perfect for those who want a quick coffee time. A mug tree holder is an energy-efficient item that can be used for your mug collections because its job is to organize your favorite mugs in one place by hanging the handle on the hook of the tree holder. In addition, it has versatile designs and colors suitable for any kitchen theme. Decorate your kitchen by placing it on your breakfast countertops and coffee table to make your kitchen stylish.

Classy Charger Plate

Charger plates are typically used in catering businesses for a casual dining setup because they are smaller in size than regular plates and can hold appetizers, hors d’oeuvres, or desserts. On the other hand, you can use these charger plates in your home as decorative elements because they come in various designs and colors that add elegance to a kitchen. These plates make breakfast countertops and coffee tables ideal for a much more inviting morning breakfast or snacks.

Functional Fruit Basket

These sleek fruit baskets are functional, especially if you want a tidy, organized fruit section for your kitchen countertops. These are made of metal, which makes these items durable and easy to sanitize for you to set fruits, vegetables, or snacks. Make your countertops ideal by using these fruit baskets as your centerpiece in your countertops.

It is imperative to consider what you purchase for your house because creating a pleasing ambiance in every angle of your home is the right choice for your well-being. These items from Heim decors provide an aesthetically alluring appearance that feels welcoming.

Explore the limitless product selections that Wilcon offers, ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Building Materials, Hardware, Electrical, Appliances, and other DIY items.

For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook, Instagram, and Tiktok and subscribe and connect with them on Viber Community, LinkedIn, and YouTube.

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Jan.-April births, deaths fall

August 19, 2022 | 2:21 pm

The number of registered births, deaths, and marriages fell in the first four months of the year versus the same period in 2021, preliminary data from the Philippine Statistics Authority (PSA) showed.

Preliminary vital statistics data from the PSA said births registered in the January to April period this year fell 34.7% to 250,866 from 384,154 last year.

The Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) Region accounted for 15.9% of the total births in the first four months of the year at 39,872. This was down 10.5% from the 44,549 recorded in 2021.

It was followed by National Capital Region (NCR) with 13.2% share of the total births at 33,135, Central Luzon (10.6% at 26,630), Bicol Region (6.8% at 17,126), and Central Visayas (6.3% at 15,726).

NCR registered the biggest drop in births at 72.2%.

By sex, male births were tallied at 52% of the total, or 130,462. While female births were registered at 48% or 120,404 of the total.

Meanwhile, deaths were tallied at 157,507, 34.4% down from 240,240 in the same period in 2021.

Calabarzon likewise had the largest share of registered deceased at 15.5% (24,417). This was down 35.6% from the 37,934 tallied deaths in 2021.

Metro Manila is second at 13.1% (20,687), followed by Central Luzon at 12.3% (19,417), Western Visayas 9.2% (14,436), and Central Visayas at 6.8% (10,702).

In terms of assigned sex, male deaths stood at 56% or 88,484 of the total. Female deaths tallied 69,023 or 44% of the total deaths in January to April this year.

Similarly, marriages registered dropped 13.9% to 100,171 registered unions from 116,373 last year.

Calabarzon also had the most share in nuptials accumulated for January to April this year at 15.9% (15,926). This was 25.8% more than the registered marriages last year at 12,660.

Second to that was Central Luzon with 13% (13,030) share of the total marriages in January to April, followed by Metro Manila at 11.7% (11,690), Western Visayas at 7.6% (7,641), and Ilocos Region at 6.4% (6,360).

The information in the vital statistics report was compiled from tallies generated by city or municipal Civil Registrars during the period, consolidated by the PSA’s Provincial Statistical Offices and then submitted to the Office of the Civil Registrar General as of May 31.

The PSA also noted that vital events by sex, region, province, and highly urbanized city for Filipinos abroad are not included in the preliminary dataset. — Ana Olivia A. Tirona

Indonesia president wants Tesla to make electric cars in country — Bloomberg News

August 19, 2022 | 1:49 pm

JAKARTA — Indonesian President Joko Widodo has urged electric vehicle (EV) maker Tesla to manufacture its cars, as well as batteries, in the country, in comments made to Bloomberg News on Thursday.

Jokowi, as the president is popularly known, said in an interview that Indonesia wants a “huge ecosystem of electric cars,” rather than simply draw on its natural resources to make batteries.

He also said Indonesia was considering imposing a tax on nickel exports this year to boost revenue. Officials have previously said this could come as soon as the third quarter.

The president and senior government officials held meetings earlier this year with Tesla’s founder Elon Musk, during which they said they had asked him to consider the Southeast Asian country as a car manufacturing hub, on top of making batteries.

Tesla representatives did not immediately respond to a request for comment. Indonesia’s investment ministry did not respond to questions regarding progress on the potential deal with Tesla.

Luhut Pandjaitan, a senior Indonesian minister overseeing talks with Tesla, earlier this month told media the US firm has struck deals worth about $5 billion to buy nickel products from nickel processing companies operating out of Indonesia’s Morowali in Sulawesi island. The nickel materials will be used in Tesla’s lithium batteries.

Mr. Luhut added his ministry was still negotiating with Tesla, but that Musk was “busy with domestic matters, regarding Twitter.”

Social media company Twitter Inc. and Mr. Musk are currently suing each other over Mr. Musk’s attempt to walk away from his deal to acquire Twitter for $44 billion.

During their meeting in May, Jokowi invited Mr. Musk to visit Indonesia in November, when the country will host a leaders summit for the Group of 20 major economies.

Companies that have invested or have announced their planned investment in EV manufacturing in Indonesia include Japanese firms Toyota Motor Corp and Mitsubishi Motors Corp and South Korea’s Hyundai Motor Group.

SGMW Motor Indonesia, part of a joint venture of SAIC Motor

Corp Ltd., General Motors Co and Wuling Motors, has an EV assembly factory in the resource-rich country. — Reuters

Taiwan farmers find space for solar to meet renewable energy targets

August 19, 2022 | 1:45 pm

solar-panels — STOCK PHOTO | Image from Pixabay

TAOYUAN — At a row of greenhouses around 50 kilometers from Taiwan’s capital Taipei, vanilla farmer Tseng Tien-fu is installing dozens of solar panels, part of the island’s plan to meet its renewable energy goals without sacrificing scarce farmland.

Mr. Tseng, who exports most of his crop to Japan, is expanding his business to meet demand from elsewhere and government payments for solar energy will reduce any risk to his livelihood while he waits for the slow maturing plants to develop.

The use of “distributed” solar — panels installed on walls and rooftops — has become increasingly popular in regions where land is at a premium. Taiwan provides generous subsidies for rooftop panels, and the government is also obliged to buy the surplus electricity they produce, providing Mr. Tseng’s greenhouses with a vital new earning opportunity.

“It takes a long time to grow vanilla before there are any crops, but we can sell (electricity) from solar panels to the government for 20 years as soon as they are installed and have an income from that,” he said.

“So especially for plants like vanilla that take three years before there are any crops, I think (solar panels) are a very good combination.”

Mr. Tseng’s shift to solar is part of a wider attempt to solve one of the biggest challenges facing Taiwan as it strives to meet its renewable energy targets.

Agricultural land accounts for about a fifth of the densely populated island’s total area, and there is little room for sprawling wind and solar farms, which take up significantly more space than conventional energy sources.

Land shortages are one of the biggest obstacles to renewable energy development, which is estimated to require around 10 times more land per unit of power than conventional power sources.

As they try to decarbonize their energy systems, governments across the world have been trying to figure out how to minimize disruptions, avoid conflicts with farmers and prevent further agricultural and biodiversity losses.

In the United States, dozens of wind and solar projects have been blocked amid concerns about the occupation of farmland, and developers in China — the world’s biggest renewable energy market — are now being encouraged to make use of depleted mines, mountain slopes and deserts.

Taiwan failed to meet its interim solar capacity target of 11.25 GW this year and has little room for maneuver as it tries to raise solar capacity to 20 GW by 2025.

“There are not a lot of large-scale (solar energy installations): Taiwan has no desert and Taiwan’s land use is very intensive,” said Juang Lao-Dar, the Director of Planning at the Taiwan Executive Yuan Council of Agriculture.

“So when we develop green energy, from the country’s perspective, we have to look at solar panels that have a smaller impact on production, and it’s the same for the agricultural sector.” — Reuters

Record numbers resign in France as bargaining power balance shifts — labor ministry

August 19, 2022 | 1:41 pm

PARIS — More French employees than ever quit their jobs at the end of 2021 and start of 2022, as the balance of bargaining power shifts away from employers, a labor ministry study showed on Thursday.

Over one million quit between October and March, the study by the ministry’s Dares research body showed, 90% of whom had coveted permanent labor contracts offering some of the highest level of job protection in the world.

Even though the figures were historically high, the trend was not as strong when viewed in relative terms, taking into account that the overall workforce has been growing in recent years, Dares said.

Growing numbers of people across many countries have left their jobs during the coronavirus disease 2019 (COVID-19) pandemic as skilled workers start to re-evaluate careers and life choices — a phenomenon that a US management professor famously dubbed the “Great Resignation.”

Dares said the latest French figures did not point to a shrinkage of the workforce on that scale.

It said the resignation rate in the euro zone’s second-biggest economy stood at 2.7% in the first quarter of 2022, the highest since the 2008-2009 financial crisis but below the level of 2.9% it had reached just before then.

“In the current context, the increase in the resignation rate thus appears to be normal, in line with the economic recovery from the COVID-19 crisis,” it said.

Tensions in the labor market, where bosses in some branches such as construction or hospitality increasingly struggle to recruit enough people, fed the trend, translating into job opportunities for many employees.

“Bargaining power is changing in favor of employees,” Dares said. — Reuters

OPEC chief says blame policymakers, lawmakers for oil price rises

August 19, 2022 | 1:31 pm

oil-refinery — STOCK PHOTO | ZBYNEK BURIVAL-UNSPLASH

LONDON — Policymakers, lawmakers, and insufficient oil and gas sector investments are to blame for high energy prices, not OPEC (Organization of the Petroleum Exporting Countries), the producer group’s new Secretary General Haitham Al Ghais told Reuters on Thursday.

A lack of investment in the oil and gas sector following a price slump sparked by coronavirus disease 2019 (COVID-19) has significantly reduced OPEC’s spare production capacity and limited the group’s ability to respond quickly to further potential supply disruption.

The price of Brent crude came close to an all-time high of $147 a barrel in March, after Russia’s ordering of troops into Ukraine exacerbated supply concerns. While prices have since declined, they are still painfully high for consumers and businesses globally.

“Don’t blame OPEC, blame your own policymakers and lawmakers, because OPEC and the producing countries have been pushing time and time again for investing in oil (and gas),” Al Ghais, who took office on Aug. 1, said in an online interview.

Oil and gas investment is up 10% from last year but remains well below 2019 levels, the International Energy Agency said last month, adding that some of the immediate shortfalls in Russian exports needed to be met by production elsewhere.

The OPEC official also pointed the finger at a lack of investment in the downstream sector, adding that OPEC members had increased refining capacity to balance the decline in Europe and the United States.

“We are not saying that the world will live on fossil fuels forever … but by saying we’re not going to invest in fossil fuels … you have to move from point A to point B overnight,” Mr. Al Ghais said.

OPEC exists to ensure the world gets enough oil, but “it’s going to be very challenging and very difficult if there is no buy-in into the importance of investing,” he said, adding that he hopes “investors, financial institutions, policymakers as well globally seriously take this matter (to) heart and take it into their plans for the future.”

RELATIVELY OPTIMISTIC

Oil has tumbled since March and Brent hit a six-month low below $92 a barrel this week.

The slide reflects fears of economic slowdown and masks physical market fundamentals, Mr. Al Ghais said as he took a relatively optimistic view on the outlook for 2023 as the world tackles rising inflation.

“There is a lot of fear,” he said. “There is a lot of speculation and anxiety, and that’s what’s predominantly driving the drop in prices.”

“Whereas in the physical market we see things much differently. Demand is still robust. We still feel very bullish on demand and very optimistic on demand for the rest of this year.”

“The fears about China are really taken out of proportion in my view,” said Mr. Al Ghais, who worked in China for four years earlier in his career. “China is a phenomenal place of economic growth still.”

OPEC, plus Russia and other allies, known as OPEC+, has unwound record oil-output cuts made in 2020 at the height of the pandemic and in September is raising output by 100,000 barrels per day.

Ahead of the next meeting which OPEC+ holds on Sept. 5, Mr. Al Ghais said it was premature to say what it will decide, although he was positive about the outlook for next year.

“I want to be very clear about it — we could cut production if necessary, we could add production if necessary.”

“It all depends on how things unfold. But we are still optimistic, as I said. We do see a slowdown in 2023 in demand growth, but it should not be worse than what we’ve had historically.”

“Yes, I am relatively optimistic,” he added of the 2023 outlook. “I think the world is dealing with the economic pressures of inflation in a very good way.”

OPEC+ began to restrain supply in 2017 to tackle a supply glut that built up in 2014-2016, and OPEC is keen to ensure Russia remains part of the OPEC+ oil production deal after 2022, Mr. Al Ghais said.

“We would love to extend the deal with Russia and the other non-OPEC producers,” he said.

“This is a long-term relationship that encompasses broader and more comprehensive forms of communication and cooperation between 23 countries. It’s not just in terms of production adjustment.” — Reuters

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