THE PHILIPPINE ECONOMY expanded faster than expected pace in the third quarter, putting it on track to beat the government’s full-year target, but faces headwinds from soaring inflation and rising interest rates. Read the full story.
HOLCIM Philippines, Inc. swung to an attributable net loss of P173.28 million in the third quarter from a profit of P669.26 million in the same period last year.
Despite its total revenues increasing by 6.93% for the third quarter to P6.94 billion from P6.49 billion a year ago, Holcim posted a net loss due to higher expenses, its third-quarter report showed. Its gross expense increased by 13.3% to P6.37 billion from P5.62 billion a year ago.
For the nine-month period, Holcim’s net income declined by 21.2% to P487.39 million from P2.3 billion in the same period last year.
Meanwhile, the company’s revenues from January to September dropped by 5.2% to P19.11 billion from P20.15 billion a year ago, while its gross expense for the period went up by 1.6% to P17.33 billion from P17.06 billion last year.
Horia-Ciprian Adrian, president and chief executive officer of Holcim, said in a statement that the company is focusing on accelerating growth through sustainability and innovation.
Holcim said it would sustain its focus on manufacturing and logistics excellence to manage costs brought by the volatility of fuel and energy prices.
“Our positive momentum gives us confidence to further raise operational efficiency and expand offering building solutions with lower environmental footprint and better construction performance,” Mr. Adrian said.
Holcim said that it is accelerating digitalization initiatives to improve its operational efficiency and will continue to expand its waste management partnerships with local governments to increase usage of low-carbon alternative fuels and raw materials to temper the effect of fuel price increases.
On Thursday, shares in the company closed unchanged at P3.82 apiece. — Ashley Erika O. Jose
THE Department of Labor and Employment said on Thursday that it plans to make micro, small, and medium enterprises (MSMEs) the focus of improving the quality of jobs, following the release of underemployment data earlier this week.
“MSMEs are at the forefront of entrepreneurial innovation and serve as a buffer during economic downturns and displacement,” Labor Secretary Bienvenido E. Laguesma said in a speech at the 2022 National Productivity Conference streamed online.
“The challenge remains the quality of jobs and we hope to see more full-time, decent and quality jobs.”
Job quality continued to worsen in September as the percentage of the employed who said they are seeking more work rose to a six-month high of 15.4%. This translates to about 7.33 million classified as underemployed, the Philippine Statistics Authority (PSA) said on Tuesday.
The unemployment rate for that month dropped to 5%, the lowest since the start of the coronavirus pandemic.
Mr. Laguesma said the recovery from the pandemic remains on track.
“Our current growth path does not only show that we are nearing pre-pandemic growth levels but we are actually poised to exceed them in the coming months,” he said.
“We all know how important MSMEs are in driving growth, employment generation and creating income opportunities for our workers.”
MSMEs have outsized representation in rural areas, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
The PSA reported last year that MSMEs account for 99.58% of the 1.08 million businesses in the Philippines.
“Improving logistics, capacitating in digital technology (even in paying taxes), and reducing red tape, among others, will help MSMEs provide more jobs,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message.
Separately, Mr. Laguesma said that National Wages and Productivity Commission (NWPC) and regional tripartite wage boards are closely monitoring inflation as labor groups continue to press for higher wages.
Mr. Laguesma has said that he asked the NWPC to study the need for another wage increase in light of soaring prices.
At least nine regions are set to receive the second and third tranches of pay hikes ordered in June.
The department has said all regional minimum wages will be reset by between P30 and P110.
Workers need higher wages to deal with the increasing prices of food and utilities, Federation of Free Workers Vice-President Julius H. Cainglet said via phone on Tuesday.
Headline inflation surged to 7.7% in October from 6.9% in September, the largest increase in nearly 14 years.
“We will prudently take into account the need to balance the interests of workers and employers, especially at this time when our economic recovery is still at its very early stages,” said Mr. Laguesma said. — John Victor D. Ordoñez
QUEEN Ramonda, Shuri, M’Baku, Okoye, and the Dora Milaje fight to protect their nation, Wakanda, from intervening world powers in the wake of King T’Challa’s death. As they strive to embrace their next chapter, the heroes must band together with the help of War Dog Nakia and Everett Ross and forge a new path for the kingdom of Wakanda. Directed by Ryan Coogler, the film stars Lupita Nyong’o, Danai Gurira, Martin Freeman, Letitia Wright, Winston Duke, Angela Bassett, and Dominique Thorne. Rolling Stone’s K Austin Collins writes, “Wakanda Forever is two hours and 40 minutes long and much of it is good. The movie makes even better use of its stars than it did the first time out, adding more personality to its scaffolding, more time for the greatness of Gurira and for the quirky attitude of Wright, with more wisdom from Duke and Bassett and enjoyable asides from newcomers to the franchise, like Dominique Thorne and the genius Michaela Coel (I May Destroy You). It is a grim movie, in many ways, with a darker visual range than its predecessor and an overall heaviness that makes some of its forays into Marvel ensemble banter hit a little strangely.” Film review aggregate site Rotten Tomatoes’ Tomatometer gives it a score of 87%.
MTRCB Rating: PG
DIRECTOR Karlo Conge Montero’s Security Academy is an action and advocacy film that serves as a tribute to all security guards in the Philippines. It stars Jeric Raval, Ricardo Cepeda, Alma Concepcion, Witney Tyson, Janice Jurado, Bing Davao, Pamela Ortiz, Archie Adamos, and Tom Oliva.
MTRCB Rating: R-13
PHILIPPINE NET INFLOWS of foreign direct investments (FDI) declined in August as higher interest rates and a looming global economic slowdown hurt investor confidence. Read the full story.
WAWAJVCO, Inc., a unit of Prime Infrastructure Capital, Inc., has started the commercial operations of its bulk water supply project.
In a media release on Thursday, Prime Infra said the first phase of the project started operating on Oct. 25 to deliver 80 million liters per day (MLD) of raw water per day to Manila Water Co. and Metropolitan Waterworks and Sewerage System.
The project is divided into two phases — the first phase Tayabasan weir was completed in June. It will provide water supply to Metro Manila and Rizal province.
“Prime Infra fulfilled its promise to deliver on time a vital water infrastructure which will help ensure the reliability of raw water supply to customers of Manila Water at a cost-effective manner,” Enrique K. Razon, Jr., chairman of Prime Infra, said in a statement.
Prime Infra said the second phase is set to be completed by 2025 and will be able to supply at least 518 MLD of raw water. The company said that the construction of the second phase is on track with the river diversion expected to be done this week. WawaJVCo will begin the construction of the main dam body by December 2022.
Developed by WawaJVCo, the project is a joint venture of Prime Infra and San Lorenzo Ruiz Builders and Developers Group, Inc. — Ashley Erika O. Jose
We’re a small enterprise. Our accounting department manager has been assigned temporarily as an officer-in-charge (OIC) of the human resource (HR) department, which was previously headed by another manager who migrated. We were told by the chief executive officer (CEO) that an external replacement is forthcoming. That was more than 10 months ago. Today, it appears that the CEO is no longer interested in hiring a replacement. The OIC has told me he’s not interested in managing HR for life as he knows nothing about it and refuses to learn anything given his heavy accounting workload. As a senior HR clerk and long-time employee, how do I convince the CEO to take a chance on me? — Curve Ball.
It’s not easy. It depends much on the consistency of your performance over the years. Meritocracy takes precedence over seniority. In many cases, long years of service does not guarantee you a promotion. You must prove your competence as an HR person. But first, let’s explore why the CEO has not hired a full-time replacement.
It could be that there were no external candidates for reasons like the low pay being offered by your CEO, who may be taking care not to upset internal compensation equity. If he violates that, the first person to raise a howl would be the OIC who, I suppose, is managing the company’s payroll.
Also, there are many job hunters who don’t like to work for a small business, which suffer from image problems like the perception of limited opportunity. At times, small companies also don’t provide enough training.
Keeping those possibilities in mind, I would consider you as the best person to fill that vacancy given your interest and long experience with the company. But that’s me. In my view, meritocracy takes priority over seniority. I know nothing about your accomplishments in that company that you can use to convince the CEO to give you a chance to prove your worth.
RIGHT TIME
Fortunately, many things are in your favor. You already know the technical side of HR work, the company’s policies and regulations, plus a lot more that are not yet documented. It’s all in your head. I suppose you know the basics of social and labor legislation that could help you navigate the job’s intricacies.
You may have already established yourself with the employees and other managers as the go-to person on HR matters. And the OIC is not interested in HR work. It’s a letdown if you’re not considered even for a supervisory position by the CEO. So, what’s the cure? Take stock of everything in your favor.
First, prove your worth to the OIC. He’s your best ally in getting the promotion. If you can convince the OIC of your competence and integrity as an HR professional, he’ll give you a favorable recommendation when the time comes. Maybe earlier than you imagine. You must first prove that you’re not a threat to the OIC, who could change his mind anytime, particularly if the CEO offers him a substantial pay increase to handle both departments. This is the only issue that I can think of that will prevent you from assuming a higher post.
Second, understand the OIC’s style. It’s not enough to prove your competence. You must manage him, which doesn’t mean licking his boots. This means understanding his strengths and weaknesses. Does he want to be apprised of all details despite his apparent intention to remain hands-off? The sooner you understand this, the better for both of you.
Last, find out as much as you can from the OIC. Talk to other people at the accounting department. Find out what to expect without sounding worried. You need all the background information you can get. However, don’t rely solely on other people’s opinion. Form your own conclusions based on your personal experience with your boss.
PROACTIVE
Can you go directly to the CEO? No, be patient. It’s dangerous if the OIC discovers you’re bypassing the chain of command. It’s always possible that the CEO will confer with the OIC should you ever overstep. Remember, he trusts the OIC more than you. If you want to be noticed by the CEO, there are many ways of doing that.
Become a high-performing achiever. Be proactive in solving HR-related issues including the reduction of waste or inefficient hiring procedures. Reduce the attrition and tardiness rate by installing engagement and empowerment programs. You can learn best practices from major companies without spending much money in the process.
Remember that management is usually allergic to additional expenses when the return on investment is difficult to prove. Make it easy for the employees to love the company by teaching department managers how to perform regular engagement interviews with their workers so they can understand their common interests. In other words, learn to make HR a profit center rather than a traditional cost center.
There are many things to do if you’re focused on your career aspirations, which could be pursued inside and outside of your current employ.
Chat with Rey Elbo on Facebook, LinkedIn or Twitter or e-mail your workplace questions to elbonomics@gmail.com or via https://reyelbo.com
SILAY CITY — This component city of Negros Occidental province is the gateway to the “Sugar Bowl of the Philippines” and the site of the Bacolod-Silay International Airport. Home to more than 30 centuries-old heritage mansions, some of which have been converted into museums and restaurants, Silay is often referred to as the “Paris of Negros.”
Founded in 1565 during the Spanish colonial regime, Silay became a chartered city by virtue of Republic Act No. 1621 enacted during the administration of President Carlos P. Garcia in 1957. Today it is a vibrant cultural hub that belongs to the Metro Bacolod area, which consists of six cities and five municipalities in the central part of Negros Occidental.
Silaynons played a crucial role in the bloodless Negros Revolution against the Spaniards that led to the establishment of the Cantonal Republic of Negros on Nov. 5, 1898 led by generals Aniceto Lacson of Talisay City and Juan Araneta of Bago City. A historical monument along Cinco de Noviembre Street honors six Negrense revolutionaries from Silay, namely Nicolas Golez, Leandro Locsin, Timoteo Unson, Melecio Severino, Vicente Gamboa, and Olympia Severino.
Since 1989, every Nov. 5 has been celebrated as “Negros Day” after President Corazon C. Aquino signed into law Republic Act No. 6709, which declared “Al Cinco de Noviembre” as a special non-working holiday in Negros Occidental. The short-lived Negros Republic was a canton or administrative division of the First Philippine Republic and later became a protectorate of the American colonial government.
Here at the Silay Heritage Zone, the focal point of the Cinco de Noviembre commemoration was at Balay Puti, the Ledesma-Locsin family’s neo-classical mansion that has been transformed into a gourmet restaurant by chef Stephen Escalante. Balay Puti was designed in 1920 by Italian architect Lucio Bernasconi — who was also commissioned to redesign the San Diego Pro-Cathedral, the only domed church in the province.
Cinco de Noviembre was commemorated for the first time in Metro Manila through the inaugural Namit Namit Food Festival at Rockwell Center Makati last Nov. 4-6, 2022. “Namit” is the Hiligaynon word for delicious food, which was exhibited at the gustatory event sponsored by the University of St. La Salle Alumni Association’s Manila Chapter, Globe Telecom, San Miguel Brewery, Don Papa Rum, and Rockwell Center Bacolod.
Eleven iconic Negrense food brands participated in the weekend foodfest that featured heirloom recipes as well as novelty products, including authentic chicken inasal from JT’s Manukan, sate babi from Café Bob’s, napoleones from Roli’s Bakeshop, puffyanis from Quino’s, the Ilonggo version of bulalo from Pat-Pat’s Kansi, and Silay’s very own morcon from a half-century-old roadside eatery called Sir & Ma’am.
Filipinos are known throughout the world for their excellence in terms of hospitality. When it comes to entertaining guests and showcasing culinary ability, one can count on the Negrenses to turn up this level of hospitality by several notches.
***
The opinion expressed herein does not necessarily reflect the views of these institutions and BusinessWorld.
J. Albert Gamboa is the chief finance officer of Asian Center for Legal Excellence and chair of the FINEX Media Affairs Committee. #FinexPhils www.finex.org.ph
Here’s a quick glance at how PSEi stocks fared on Thursday, November 10, 2022.
THE PESO weakened against the dollar on Thursday on safe-haven demand as the market awaits the release of US inflation data, which could dictate the US Federal Reserve’s next move.
The local unit closed at P58.19 against the greenback on Thursday, weaker by 20 centavos from its P57.99-a-dollar finish on Wednesday.
The peso opened Thursday’s trading session weaker at P58.08 versus the dollar. Its weakest point for the day was at P58.25, while its intraday best was at P58 against the greenback.
Dollars traded on Thursday declined to $792 million from the $1.107 billion recorded on Wednesday.
“The peso weakened amid lingering market caution ahead of the US inflation report and US midterm election results,” a trader said in an e-mail.
The US Labor department was due to report October consumer price index (CPI) data overnight, which investors believe could provide clues on the pace of the Fed’s next policy move.
The Fed raised borrowing costs by 75 basis points (bps) for a fourth straight time earlier this month, bringing total increases since March to 375 bps.
The dollar inched higher ahead of the release of the CPI report. The greenback surged on Wednesday against its peers but later pared some of those gains as investors also priced in the results of the US midterm election.
The dollar index, which tracks the currency against major peers, was last up 0.11% to 110.48.
The greenback has lost some of its gains in the past weeks on hopes that the Fed would consider smaller rate hikes as early as its December meeting following dovish statements from policy makers.
Several Fed officials said the US central bank should be careful to not “over-tighten” to avoid tipping the world’s largest economy into a recession.
For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso weakened despite the stronger-than-expected Philippine gross domestic product (GDP) in the third quarter.
The Philippine economy expanded by 7.6% in the third quarter, faster than the revised 7.5% growth in the second quarter and the 7% in the same quarter a year ago, driven by household consumption and investment, as well as growth in the services and industry sectors.
The third-quarter print also beat the 6.1% median forecast in a BusinessWorld poll last week.
In the first nine months, GDP growth averaged 7.7%, above the government’s 6.5%-7.5% target for the year.
For Friday, Mr. Ricafort gave a forecast range of P58 to P58.30 per dollar, while the trader expects the local unit to move within the P58.10 to P58.30 band. — K.B. Ta-asan
STOCKS continued to decline on Thursday to track Wall Street’s drop overnight ahead of the release of latest US consumer inflation data.
The benchmark Philippine Stock Exchange index (PSEi) lost 74.11 points or 1.18% to end at 6,167.57 on Thursday, while the broader all shares index declined by 15.08 points or 0.45% to 3,277.66.
Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said the bellwether index ended in the red as it tracked US stocks lower.
“[The] initial returns of the US midterm elections offered no concise answer on which party will indeed take control of Congress. With the voting end result still uncertain, investors are paying close attention to the crucial release of the US October inflation data, which will provide hints on the path of prospective Fed interest rate increases,” Mr. Lood said in a Viber message.
“The PSEi ended in red as the market focuses more on the upcoming US inflation report due on Thursday night, ignoring the faster-than-expected Philippine GDP (gross domestic product) growth for the third quarter,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.
On Wednesday, Wall Street went down as investors awaited the results of the US midterm elections and the release of the October consumer price index (CPI) report.
The Dow Jones Industrial Average declined by 1.95% to 32,513.94; the S&P 500 dropped by 2.08% to 3,748.58; and the Nasdaq went down by 2.48% to 10,353.18.
October US CPI data were scheduled to be released overnight, which could give clues on the US Federal Reserve’s next policy move as investors remain divided on a possible dovish pivot by the central bank as early as next month. The Fed raised rates by 75 basis points (bps) for a fourth straight time this month, bringing total hikes since March to 375 bps.
Meanwhile, Philippine GDP grew by 7.6% in the third quarter, faster than the revised 7.5% in the preceding three-month period and the 7% seen in the same quarter last year.
Sectoral indices ended mixed on Thursday. Holding firms declined by 210.35 points or 3.5% to 5,793.77; financials went down by 15.90 points or 0.98% to 1,598.19; and industrials dropped 54.40 points or 0.6% to 9,005.23.
Meanwhile, property gained 34.88 points or 1.3% to end at 2,708.68; mining and oil rose by 108.93 points or 1.16% to 9,466.69; and services climbed by 5.18 points or 0.32% to 1,596.41.
Value turnover went down to P4.63 billion on Thursday with 455.57 million shares changing hands from P5.57 billion with 427.71 million issues traded on Wednesday.
Net foreign buying declined to P396.10 million on Thursday from P509.32 million on Wednesday.
AP Securities’ Mr. Temporal placed PSEi’s immediate support at 6,000 and resistance at 6,300. — A.E.O. Jose
A PHILIPPINE team headed by its Justice chief will head to Geneva this month to discuss the country’s human rights situation before the United Nations Human Rights Council.
Justice Secretary Jesus Crispin C. Remulla in a statement on Thursday said he would talk about government reforms for the justice system, including law enforcement and human rights, with UN member states on Nov. 14 to 16.
The universal periodic review is a UN mechanism to assess a country’s human rights situation. Member states are given the chance to review steps taken by a country to address human rights issues.
“Our delegation looks forward to listening to the observations and any new recommendations that UN member states will put forward,” Mr. Remulla said.
The Philippine delegation will include officials from the Department of Justice (DoJ) and Department of Foreign Affairs.
In August, the Philippine Commission on Human Rights (CHR) said it was consulting civic and grassroot groups on the UN mechanism.
Last month, the Justice chief told the Human Rights Council the government aims to change the culture of the justice system, which he said was prone to delays.
Mr. Remulla said the government would release about 5,000 inmates next year, as it tries to decongest the world’s most crowded jails.
With 215,000 prisoners nationwide, Philippine jails and prisons are overfilled more than five times their official capacity, making them the most overcrowded prison system in the world, according to the World Prison Brief.
The Justice department also plans to increase the prosecution success rate by streamlining processes involving government prosecutors and law enforcement agencies.
In a 13-page report dated Nov. 3, the UN Human Rights Committee said the Philippines should comply with international human rights mechanisms and cooperate with a potential probe of its deadly drug war by the International Criminal Court (ICC).
The Office of the High Commissioner for Human Rights earlier said the government’s probe of human rights violations in connection with its anti-illegal drug campaign lacked transparency.
Philippine Solicitor General Menardo I. Guevarra in September said the country would pursue all legal means to block an investigation by the ICC on the war on drugs and ensure suspects are tried by local courts.
The Hague-based tribunal, which prosecutes people charged with genocide, crimes against humanity, war crimes and aggression, suspended its probe of ex-President Rodrigo R. Duterte’s anti-illegal drug campaign upon the state’s request.
The CHR had said the Duterte government had encouraged a culture of impunity by hindering independent inquiries and failing to prosecute erring cops.
At least 6,117 suspected drugdealers had been killed in police operations, according to data released by the Philippine government in June last year. Human rights groups estimate that as many as 30,000 suspects died.
“The Philippines will engage constructively and openly based on the principles of sovereign equality, independence and dialogue,” Mr. Remulla said.
The Human Rights Council dealt victims of human rights violations in the Philippines a serious blow by failing to pass a resolution in October that would ensure continued scrutiny of the country’s rights situation, Human Rights Watch earlier said.
The council ended its 51st session in Geneva on Oct. 7 without taking action on the Philippines, despite dire expressions of concern from the UN human rights office, civic groups and families of victims of abuses, the global watchdog said.
The 2020 Human Rights Council resolution on the Philippines required the UN Office of the High Commissioner for Human Rights to monitor and report on the Philippine rights situation through 2022.
A September report by the high commissioner’s office highlighted prevailing rights violations and recommended continued monitoring and reporting to the council.
But council member states and donor countries that supported the 2020 resolution and the ensuing Philippine-UN Joint Program did not press for a 2022 resolution, Human Rights Watch said.
“The UN Human Rights Council’s failure to act on the Philippines is devastating for both the victims of human rights abuses and civil society groups that seek to uphold basic rights,” said Lucy McKernan, Geneva director at Human Rights Watch.
The watchdog in September told the UN council human rights violations in connection with the Philippines’ anti-illegal drug campaign continue under the Marcos government.
Continued UN scrutiny of the Philippines is important because drug war killings are still common and police impunity for rights violations remained the norm, it said. — John Victor D. Ordoñez
