BPI income up 1.8% as of Sept.

October 22, 2021 | 12:04 am

BANK OF THE Philippine Islands (BPI) posted higher net earnings in the first nine months of the year, even as its net interest and non-interest incomes declined from their year-ago levels, amid lower provisions for loan losses.

The Ayala-led bank’s net income increased by 1.8% year on year to P17.5 billion in the first nine months from P17.3 billion in the same period in 2020, it said in a filing with the local bourse on Thursday.

The bank’s net interest income in the January to September period declined by 5.6% year on year to P51.2 billion. This, as its net interest margin shrank by 21 basis points to 3.31% amid lower yields across its loan portfolios and treasury assets, BPI said.

Meanwhile, the bank’s non-interest earnings went down by 7% year on year to P20.5 billion at end-September due to weaker trading gains. This was partially offset by the 27.2% climb in its fee income.

BPI’s revenues dropped by 6% to P71.6 billion at end-September from a year earlier.

On the other hand, total operating expenses increased by 3.5% year on year to P36.5 billion in the first nine months, driven by the bank’s investments for its digitalization. Cost-to-income ratio was at 50.95%.

The bank cut its loan loss provisions by 49.9% to P10.3 billion as of end-September from the P20.5 billion it set aside in the same period last year.

BPI’s loans rose by 0.9% year on year to P1.4 trillion as of end-September, backed by an increase in mortgage, credit card and microfinance credit.

Despite this increase in credit, its nonperforming loan (NPL) ratio fell to 2.73% from 2.98% a year earlier, while NPL coverage ratio improved to 130.72% from 100.45%.

On the funding side, deposits with the bank likewise increased 6.6% year on year to P1.8 trillion as of September.

The bank’s current account, savings account (CASA) deposits grew 12.1%, offsetting the 11% decline in time deposits. With this, BPI’s CASA ratio stood at 80.1%.

BPI’s loan-to-deposit ratio was at 77.2% at end-September.

The bank’s assets increased 3.3% year on year to P2.3 trillion in the January to September period, while total equity stood at P291.8 billion.

Return on equity and return on assets stood at 8.3% and 1.1%, respectively.

The bank’s common equity Tier 1 ratio was at 16.81% at end-September, while its capital adequacy ratio was at 17.69%.

BPI is in the process of completing its merger with its sister unit BPI Family Savings Bank, which is expected to be finished by 2022.

The transaction was approved by the central bank on Sept. 30. Its effectivity depends on the issuance of the certificate of merger by the Securities and Exchange Commission.

BPI shares closed at P84.90 apiece on Thursday, down by P1.10 from its previous finish. — Luz Wendy T. Noble

PHL ‘might stand a chance’ on achieving sustainable dev’t goals

October 22, 2021 | 12:04 am

THE Securities and Exchange Commission’s (SEC) is “cautiously optimistic” that business institutions in the country can help move the sustainability agenda forward as they are encouraged to adopt sustainable business practices.

In an afternoon GRI-SM ASEAN Sustainability E-Summit webinar session on Thursday, SEC Commissioner Kelvin Lester K. Lee said he is “cautiously optimistic” that the country “might stand a chance” to meet the sustainable development goals by 2030 with all the ongoing initiatives in the financial markets.

For its part, the commission is “encouraging” all publicly listed companies to report on their sustainability practices, the guidelines of which are set in the SEC’s Memorandum Circular No. 4 series of 2019. The SEC said this is part of its mission to make the country’s capital markets one of the best in the Southeast Asian region.

The SEC also plans to make the sustainability reporting mandatory for all companies.

“We are encouraging them, we’re essentially asking them and mandating that they report on their initiatives and if that proceeds in that direction, that’s over 600,000 active corporations in the Philippines,” Mr. Lee said.

“If even some number of that starts to seriously engage in sustainable practices, I believe we can make a dent in the sustainability issues and hopefully help the country meet the sustainability goals,” he added.

The SEC said around 93% of the publicly listed companies have complied with the sustainability reporting this year, up from last year’s 90%.

The commission is also collaborating with the ASEAN Capital Markets Forum to create projects such as an “ASEAN Taxonomy,” which aims to “provide a common language for sustainable finance among the ASEAN states,” among its other initiatives.

“We have some more upcoming rules on the sustainable and responsible investment funds that will be focusing on mutual funds that will be focusing on mutual funds that will engage on ESG-related investments,” Mr. Lee said. “We’re looking at issuing that sometime next year or the year after.” — Keren Concepcion G. Valmonte

Stuff to do (10/22/21)

October 22, 2021 | 12:04 am

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Sheryn Regis holds first online concert

SINGER Sheryn Regis will stage her first online concert, Love United, via KTX.ph, iWantTFC, and TFC IPTV on Oct. 23, with a re-run on Oct. 24. The singer will be sharing the virtual stage with EZ Mil, Filipino pop-rapper H-BOM, Kaela Francheska, former Tawag ng Tanghalan finalist Froilan Canlas, and the all-boys trio of Francis Concepcion, Keifer Sanchez, and Mackie Empuerto also known as the TNT Boys. Tickets for the concert are now available online for P899/$17.99 (regular) and P1,4999/$30 (VIP with access to digital after party). Love United will stream via KTX.ph, iWantTFC, and TFC IPTV on Oct. 23, 8 p.m. (Manila time) and Oct. 24, 10 a.m. (Manila time).

Palacio de Memoria holds guided tours, flea market

PRE-WAR MANSION Palacio de Memoria is now open for guided tours. Experience a one-and-a-half hour guided tour of the galleries, rooms, gardens, the aircraft, and museum on the mansion grounds. Admission prices are P250 for adults, P200 for students, and P179 for seniors/PWD. Guided tours are priced at P500 (regular). For more information and booking appointments, visit https://www.palaciodememoria.com/tours/. Meanwhile, an open-air flea market will be held at the mansion grounds on Oct. 23 and 24. Inspired by Madrid’s E Rastro, the flea market will have antiques, paintings, sculptures, accessories, textiles, home furnishings and décor, wall art, gift items, toys, artisanal/designer specialty items, and collectors’ items. There will also be a Don Papa booth and Margarita Fores’ The Loggia food and drinks booth. ABS-CBN Film Restoration, Inc. will hold a free screening of the newly restored 1941 film Ibong Adarna on Oct. 24.

Zone V photos on virtual exhibit, sale

THE ZONE Five Camera Club (ZVCC or Zone V), one of the country’s top fine-art photography clubs, will be holding an online exhibit and sale at www.zonev.org from Oct. 23 to Nov. 3. Called Images of H.O.P.E. (Helping Others Prosper & Excel), the week-long event will showcase some of the best still camera work by Zone V. Many of these images have gained recognition in local and international photography competitions. Proceeds from the sale benefit the Assumption Development Foundation (ADF), a non-profit organization dedicated to the learning development of select youths of Sapang Palay, Bulacan. From its regular meetings and photo contests held at the Old Swiss Inn at Makati, the Club reached a milestone when it transitioned onto online platforms in the first quarter of last year due to the pandemic lockdowns. This virtual medium will serve as the stage for the Images of H.O.P.E. exhibit/sale. Featured will be color and black & white prints from its 50 members, including Jay Camus, Manny Inumerable, Cha Pagdilao, James Singlador, Danny Yu, and Ruben Castor Ranin, who was himself a recipient of an ADF scholarship.

Indie films on streaming platform, drive-in movie theater

Independent films from across Asia will be screened in Watch and Chill, an online streaming platform and a drive-in-theater, all free and open to the public. The initiative is a collaboration between Museum of Contemporary Art and Design (MCAD) of the De La Salle-College of Saint Benilde, National Museum of Modern and Contemporary Art (MMCA) in Seoul, MAIIAM Contemporary Art Museum in Chiang Mai, and M+ West Kowloon Cultural District in Hong Kong, to gather major video works across the region in a subscription-based streaming platform and traveling exhibition. It features motion pictures by 20 artists. The movies are divided into four categories: Things in My Living Room, By the Other Being, Community of Houses and Meta-Home. All videos may be accessed through the Watch and Chill streaming website. Interested viewers must subscribe for free to gain online access until Feb. 2022. For the drive-in-theater, MCAD converted the Dominga Street carpark of Benilde to accommodate a maximum of six vehicles per screening. Audio will be transmitted through an unoccupied FM frequency, accessible through their car radios and other portable devices. Guests may likewise watch the films at the museum’s designated area, which entertains up to 10 visitors per show. The physical screening is likewise free and open to the public. Visits must be booked in advance through MCAD’s website. Only fully-vaccinated individuals with presented vaccination cards will be allowed entry. MCAD will screen Watch and Chill every Thursday to Sunday from 6:30 to 8 p.m. from Oct. 29 until Dec. 5 Visit the Watch and Chill platform at https://watchandchill.kr/en/. To book an appointment for MCAD’s physical exhibition, go to http://www.mcadmanila.org.ph/watchandchill/.

Virtual tour of haunted Manila

AFTER the success of last year’s “One Night in Intramuros” online Halloween tour, the tour and experiential company WanderManila steps out of the walled city to uncover the darker history of Manila’s iconic areas. The tour, “One Night in Manila: an online Halloween tour” will be livestreamed for free on Oct. 30, 9 p.m., on the WanderManila Facebook page. Conducted by WanderManila’ head tour guide Benjamin Canapi, the one-hour tour will feature a mix of history and horror. Among the locations to be visited virtually are Escolta, Paco Park, Arroceros, the University of Santo Tomas, and Manila City Hall,

PPO holds Tricks and Musical Treats concert

THE CULTURAL Center of the Philippines (CCP) will hold a family-friendly virtual Halloween concert titled Tricks and Musical Treats: A PPO Family Concert on Oct. 31, 4 p.m. via Zoom. With the theme “A Musical Voyage to Outer Space,” the Philippine Philharmonic Orchestra (PPO) and guest performers from the UST (University of Santo Tomas) Symphony Orchestra will introduce children to the basic concepts of music and present orchestral music in a fun memorable adventure package. Hosted by award-winning actor Liesl Batucan, families will also learn about the benefits of music in brain development, especially in language and reading skills, mathematical learning through playing of musical instruments, memory skills, and mind-and-body coordination. As a fun activity, kids will be taught how to “conduct” the orchestra. To make the event even more engaging, participants are encouraged to be in space-themed costumes made using their creativity, resourcefulness, and improvisational skills. Best in Costume Winners will receive recognition and prizes. Register at https://neon.ly/MusicalTreats2021_register.

China Bank gets highest grade from PhilRatings

October 22, 2021 | 12:03 am

CHINA BANKING Corp. (China Bank) was rated “PRS Aaa (corp)” by the Philippine Rating Services Corp. (PhilRatings) on Thursday, with the debt watcher citing the bank’s sound funding profile and improving asset quality.

“The rating takes into account China Bank’s established track record and resiliency, and strong and experienced shareholders who have navigated the bank through various changes in the economic environment; its sound funding profile; its lower interest expense that will support short-term profit performance; and its more than satisfactory asset quality, with ample capital buffer,” PhilRatings said in a statement that was filed by China Bank with the local bourse on Thursday.

Under the PRS scale, the PRS Aaa (corp.) rating is the highest for corporations and signifies the firm “has a very strong capacity to meet its financial commitments relative to that of other Philippine corporates.”

The rating has a “stable” outlook, which indicates it will likely be kept for a year.

PhilRatings said it expects China Bank to maintain its sound credit profile due to its core strengths that boost the lender’s resilience and operations amid the “new normal.” It noted the 101-year-old bank was able to survive past downturns, including the Great Depression in 1931 and the Asian Financial Crisis in 1997.

The credit watcher, however, warned recovery is still dependent on the economy’s ability to rebound from the ongoing crisis.

“China Bank will focus on core business growth, asset quality improvement, and digital banking transformation,” PhilRatings said.

PhilRatings said China Bank also benefits from being a part of SM Investments Corp., which owns 22.55% of the lender.

“Advantages enjoyed by China Bank as part of the SM Group include: priority rights to locate branches and ATMs in SM shopping malls; China Bank Savings mini-branches in SaveMore and CityMall locations, and ATMs in Alfamart stores; and the use of SM Group’s retail network to promote new products,” it said.

China Bank’s asset quality also remains satisfactory versus its peers despite the rise in NPLs during the crisis, PhilRatings said.

It added that more stable and low-cost current account, savings account deposits account for more than half of China Bank’s deposit base, and this is expected to continue this year and next.

The debt watcher also expects the bank’s net interest income to have a bigger share in its revenues moving forward compared with 2019 and 2020.

“Driven by a large decline in interest expense, net interest income growth is expected to be sustained in 2021,” PhilRatings said.

China Bank’s net profit jumped 39% to P7.3 billion in the first half of 2021 from P5.2 billion a year earlier.

Its shares slipped by 10 centavos to close at P24.30 apiece on Thursday. — L.W.T. Noble

PAL seeks easier entry for vaccinated passengers from North America

October 22, 2021 | 12:03 am

FLAG carrier Philippine Airlines, Inc. (PAL) on Thursday said it has proposed to pilot test a “no facility quarantine protocol” for vaccinated passengers from North America.

The policy will cover “North American vaccinated passengers arriving in the Philippines and… Filipinos fully vaccinated in the Philippines who traveled to North America and are returning to the country,” PAL Senior Vice-President for Strategy Dexter C. Lee said in an e-mailed statement.

Mr. Lee said the airline coordinated with Presidential Adviser for Entrepreneurship Jose Ma. “Joey” A. Concepcion III and OCTA Research group on the matter.

“Our suggestions have received positive feedback and are now with the IATF (Inter-Agency Task Force) Technical Working Group for further deliberation,” he noted.

Official announcement on the matter will emanate from the IATF.

In September, PAL also sought to shorten the quarantine period for all arriving passengers from abroad.

PAL has filed for Chapter 11 creditor protection in the United States.

Its listed holding company, PAL Holdings, Inc. (not included in the Chapter 11 filing), had been incurring losses even before the global health crisis. Its attributable net loss widened to P71.91 billion in 2020 from P10.31 billion in 2019. — Arjay L. Balinbin

Pinoy group SB19 bags MTV EMA nomination

October 22, 2021 | 12:03 am

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FILIPINO group SB19 has been nominated as Best Southeast Asia Act at the 2021 MTV Europe Music Awards (EMA) which will take place in Hungary, and broadcast live on MTV channels in 180 countries on Nov. 14 (Nov. 15 in the Philippines).

Viewers from the Philippines can catch the same-day premiere on the MTV Asia channel at 8 p.m.

The winners are chosen by audience vote. Voting is now open at mtvema.com until Nov. 10.

A five-member boy band — the members are Josh, Pablo, Stell, Ken, and Justin — were trained for three years by ShowBT Philippines before making their debut in 2018. Even before the MTV EVA nomination, it has already been making waves internationally: it is the first Filipino and Southeast Asian act to be nominated in Billboard Music Awards for the Top Social Artist category and the first Southeast Asian act to enter the top 10 of Billboard Social 50 weekly and year-end charts.

SB19 is up against Ink Waruntorn (Thailand, JJ Lin (Singapore), K-ICM (Vietnam), Lyodra (Indonesia), and Naim Daniel (Malaysia) in the category.

Justin Bieber leads the nominations for the MTV EMA this year, followed by Doja Cat, lil Nas X, Ed Sheeran, Olivia Rodrigo, and The Kid Laroi.

The 2021 MTV EMA nominees are:

Best Artist — Doja Cat, Ed Sheeran, Justin Bieber, Lady Gaga, Lil Nas X, The Weeknd
Best Pop — BTS, Doja Cat, Dua Lipa, Ed Sheeran, Justin Bieber, Olivia Rodrigo
Best Song — Doja Cat ft. SZA, “Kiss Me More”; Ed Sheeran, “Bad Habits”; Justin Bieber, “Peaches ft. Daniel Caesar, Giveon”; Lil Nas X, “MONTERO (Call Me By Your Name)”; Olivia Rodrigo, “Drivers License”; The Kid LAROI, Justin Bieber, “STAY”
Best Video — Doja Cat ft. SZA, “Kiss Me More”; Ed Sheeran, “Bad Habits”; Justin Bieber, “Peaches ft. Daniel Caesar, Giveon”; Lil Nas X, “MONTERO (Call Me By Your Name)”; Normani ft. Cardi B, “Wild Side”; Taylor Swift, “willow”
Best Collaboration — Black Eyed Peas, Shakira, “GIRL LIKE ME”; Bruno Mars, Anderson .Paak, Silk Sonic, “Leave the Door Open”; Doja Cat ft. SZA, “Kiss Me More”; Lil Nas X, Jack Harlow, “INDUSTRY BABY”; The Kid LAROI, Justin Bieber, “STAY”; The Weeknd and Ariana Grande, “Save Your Tears (Remix)”
Best K-Pop — BTS, LISA, Monsta X, NCT 127, ROSÉ, TWICE
Best Group — BTS, Imagine Dragons
Jonas Brothers, Little Mix, Måneskin, Silk Sonic
Best Southeast Asia Act — SB19 (Philippines), Ink Waruntorn (Thailand), JJ Lin (Singapore), K-ICM (Vietnam), Lyodra (Indonesia), Naim Daniel (Malaysia)

In the Philippines, MTV can be watched on Cignal Ch 151, SKYcable, and Cable Link among others.

DBP approves P38.28B in credit for local gov’t units

October 22, 2021 | 12:02 am

DEVELOPMENT BANK of the Philippines (DBP) approved P38.28 billion in credit for more than 100 local government units (LGUs) for the first six months of 2021.

The state-run lender’s funding will support infrastructure and socioeconomic development initiatives in 110 LGUs, DBP said in a statement on Thursday.

These loans are under the Assistance for Economic and Social Development (ASENSO) for LGUs financing program, which is designed to aid them in their recovery from the effects of the pandemic, especially those in the countryside.

“We have fast-tracked the provision of credit assistance to all levels of local governments as they scale up social and economic interventions,’’ DBP President Emmanuel G. Herbosa said. “We are also helping the LGU sector boost their resiliency against future economic downturns.”

Launched last year, the ASENSO program has helped fund infrastructure, housing, sanitation, telecommunications, and disaster management programs in 51 Luzon LGUs, along with 40 in Mindanao and 19 in the Visayas.

Mr. Herbosa said DBP extended P330 million in interest subsidies to 80 local government borrowers in the first half.

The DBP last year put up a P1-billion interest rate subsidy program for loans taken out by LGUs to help them finance their relief programs and recovery measures

The interest rate subsidy is offered on a first-come, first-served basis.

DBP is working with the Department of Finance, state regulators and multilateral banks to set up a credit rating system for LGUs by next year to encourage local governments to issue bonds to fund development projects. — J.P. Ibañez

Most bosses plan benefit tweaks due to pandemic

October 22, 2021 | 12:02 am

SOME 76% of Philippine employers plan to adjust their benefit programs in response to workplace changes caused by the pandemic, balancing the need for wellness programs to support workers against their cost containment imperatives.

“Employers are under increasing pressure to manage their benefit costs while at the same time finding new ways to support their employees’ overall wellbeing,” Head of Health and Benefits at Willis Towers Watson (WTW) Philippines Susan La Chica said in a statement Thursday.

Of the 154 employers surveyed, 50% said their benefit packages address the individual needs of the workforce, 32% offered flexibility and choice in benefits, and 60% believe that their current benefits are competitive.

However, 80% of the employers said they see the need to integrate employee wellbeing into their benefit packages over the next two years. Specifically, 86% said they will prioritize emotional wellbeing, followed by physical wellbeing with 76%, and social wellbeing 73%.

“Employees’ stress, burnout and mental health issues exacerbated by the pandemic continue to be the main workforce concern of employers,” Medical Director and Head of Business Development at WTW Philippines Demosthenes Villarin, Jr. said.

“Fostering employee wellbeing and resilience, therefore remains a top employer priority for the foreseeable future,” he added.

Another wellbeing study conducted by WTW also indicates that organizations are starting to focus on wellbeing as a key management issue.

In that study, 47% said they plan to promote physical wellbeing by using virtual care applications, 61% will focus on emotional wellbeing by assessing employee stress levels, 45% plan to help employees in financial difficulty, and 36% plan to develop inclusion and diversity policies to enhance social wellbeing.

The WTW survey on employee benefits was conducted in May and June 2021 involving employers with 646,000 employees. — Bianca Angelica D. Añago

Ayala aims to reach net zero emissions by 2050

October 22, 2021 | 12:02 am

AYALA Corp. has pledged to work towards achieving net zero carbon emissions by 2050, according to the firm’s top official.

“Today, we are announcing our commitment to achieve net zero greenhouse gas emissions by 2050. We are aligning ourselves with the global movement for climate action as our way to help secure our country’s future from the threats brought by climate change,” Ayala President and Chief Executive Officer Fernando Zobel de Ayala said in a briefing on Thursday.

He said Ayala expects each of its business units to have its own net zero road map, which will be updated regularly.

In a separate statement, the firm said its net zero target will cover: direct emissions from owned or controlled sources (Scope 1), indirect emissions from the generation of purchased power (Scope 2), and all other indirect emissions in the value chain (Scope 3).

“Scope 3 emissions are expected to make up the majority of Ayala’s footprint and can be complex to address, but Ayala is committed to net zero best practices and driving meaningful change in its business ecosystem,” Ayala said.

The company is partnering up with global climate solutions provider South Pole which will help Ayala in coming up with a road map as well as an accurate outlook of its emissions across its core business units.

Ayala said some of its firms are already making strides towards its collective goal, citing the initiatives of AC Energy Corp., Bank of the Philippine Islands (BPI) and Globe Telecom, Inc.

It said AC Energy is working towards its target of reaching 5 gigawatts of renewable energy (RE) capacity by 2025.

It added that BPI has pledged to do away with the financing of greenfield coal power projects, while Globe is now buying energy from RE producers to power up its headquarters in Taguig as well as six of its facilities.

“Our commitment to Net Zero greenhouse gas emissions by 2050 signifies Ayala’s intent to contribute to the greater good, and to be a significant partner for sustainable development, a progressive Philippines, and a better world,” said Mr. Zobel.

Ayala Corp. is the listed holdings company of the Ayala group of companies. Shares in the company improved 0.69% or P6 to close at P871 apiece on Thursday. — Angelica Y. Yang

K-pop leads to K-drama leads to webtoons

October 22, 2021 | 12:02 am

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Twitter names the Top 20 most-mentioned Korean dramas, webtoons, movies

K-POP serves as a “gateway drug” into K-drama. That was one of the big data insights from Twitter’s #BeyondKpop: Globalization of K-Culture from Music to Drama, Webtoon, Movie and Beyond report, and Top 20 most Tweeted K-content.

The results of data aggregation were conducted by Twitter and the company VAIV through big data text mining techniques that analyzed global English Tweets from July 2018 to June 2021.

The most-mentioned K-dramas show clear connection to K-pop. For many K-pop fans, K-dramas were the next type of K-content they tried after K-pop, and the most popular K-dramas reflect this preference. The top four most-mentioned K-dramas around the world were: 1.) Kingdom , 2.) Itaewon Class (based on the original webtoon), 3.) True Beauty, and, 4.) Vincenzo. True Beauty and Vincenzo both feature K-pop stars, with Cha Eun-woo (a member of the male K-pop group ASTRO) appearing in True Beauty, and Ok Taec-yeon (a member of the male K-pop group 2PM) starring in Vincenzo.

Twitter’s analysis of the word cloud for Tweets mentioning Itaewon Class confirmed that many Tweets about the show mentioned its soundtrack’s song “Sweet Night” by V, a member of the male K-pop group BTS. The word cloud also connected Itaewon Class to 11 other dramas during the first half of 2021. This shows that interest in Itaewon Class led fans to other K-dramas, making Itaewon Class a critical influence for K-content and new fans getting more interested.

MOST-MENTIONED WEBTOONS
With K-pop reaching all-time highs, and the popularity of K-dramas surging accordingly, original webtoons are also seeing increased interest, especially for webtoons that have been turned into K-dramas.

Many of the most-mentioned webtoons have been turned into K-dramas. True Beauty, which ranked third in the most-mentioned K-dramas on Twitter, ranked first in the most-mentioned K-webtoons on Twitter. Sweet Home, which was turned into a Netflix original series, ranked second in the most mentioned K-webtoons. Itaewon Class, which ranked fourth, was later turned into a K-drama, while Navillera (sixth) not only was later turned into a K-drama, but also benefited from BTS member V recommending the drama on a fan cafe.

KOREA’S BIGGEST DIRECTORS
Just three film directors accounted for nine of the top 20 K-movies that are most-mentioned on Twitter.

Parasite, directed by Bong Joon-ho, was the most-mentioned K-movie on Twitter, but Bong’s other movies, Snowpiercer, Okja, Mother, and The Host, were all among the top 20. Directors Park Chan-wook and Yeon Sang-ho also accounted for two K-movies apiece, with Oldboy and Thirst, and Peninsula and Train to Busan, respectively.

Twitter’s analysis of Tweets related to Bong Joon-ho showed keywords related to Parasite (which won four Academy Awards in 2020), Mother, and Snowpiercer respectively, as well as works by other prominent directors Park Chan-wook and Lee Chang-dong. Twitter’s analysis shows that interest in Bong Joon-ho helped to drive interest in K-movies broadly.

K-CONTENT WILL CONTINUE TO EXPAND
“Twitter has proven that K-pop — along with many other fandoms — thrive due to the characteristics of Twitter: live, public, and conversational,” said Yeon-jeong Kim, head of Twitter’s Global K-pop and K-content partnerships.

“People are consuming K-content through various channels, but in the end, the conversations are being held on Twitter. K-content has limitless potential as the fandom culture that started with K-pop has taken an interest in other forms of Korean content, which has led to the spread of the culture. Twitter will dedicate itself in the fullest to supporting the globalization of K-content and the fandom it empowers.”

Should average performers get merit increases?

October 22, 2021 | 12:01 am

I’m working on creating a new management system for our non-management employees. Is it advisable to give merit pay to people with average work performance? Why or why not? — Pink Panther.

My answer is the same answer I would give to organizations that recognize people for perfect attendance. It’s not an answer, but a question, so that these organizations may realize the folly of their ways. Why would you give out perfect attendance awards if workers who are required to report for work (either physically or virtually) and on time?

In other words, aside from salary and benefits, why reward people whose interest is to be “present” eight hours a day. In this country, the perfect attendance award is of little comfort to workers, who suffer a lot in the absence of a decent mass transport system.

Who cares about receiving free t-shirts or coffee mugs signifying perfect attendance? Big deal! That’s the reason why companies here have absence or tardiness problems. Unless you can go beyond the tokenism your recognition system seems to value, then your attendance award is all for nothing.

Professor Jeffrey Liker in “The Toyota Way” (2004) believes, i.e., “a splashy reward system” if worker attendance is critical to your company. In many Toyota factories in the US “those who make the perfect attendance club are invited to a big banquet at a major convention center. About a dozen brand-new Toyota vehicles are then paraded on stage. Winners selected by lottery drive home the vehicles with taxes and fees all fully paid.

“About 60% to 70% of Toyota associates (workers) get into the perfect attendance club — not a single day of missed work or lateness. The total cost of this one-night extravaganza to Toyota for getting thousands of associates to come to work on time every day is peanuts.”

PAY FOR PERFORMANCE
Pardon my over-reaction to the perfect attendance award. That’s only to emphasize the point that you need to focus your attention on creating and strengthening a robust pay-for-performance system. So, to answer your question, I would say it is not advisable to give merit pay increases to average performers.

If you did that, a time will come when you are saddled with average workers who come and go for their usual pay and perks without any motivation to exceed expectations. In addition, when creating a pay-for-performance system, remember the following:

One, have an objective performance appraisal system. This is very important in this country. In my experience, many managers prefer to give average ratings to workers who should have been booted out a long time ago. For reasons of camaraderie, familiarity, and compassion, they avoid creating difficult relationships with their workers.

Two, establish a robust salary scale and structure. This is a prerequisite to managing for performance. It should be the first thing to do before hiring your first employee. This sets price ranges for various job grades — for example grade one (entry level) to grade ten (for those preparing to hold a supervisorial post). It’s also important that the rates are roughly within industry standards to keep turnover low.

Three, consider inflation. If the average rate is 4%, then consider that the minimum increase for those who exceed performance standards. Other factors you need to consider like job’s importance and the difficulty of finding replacements for people with “hot skills.” For these, you may have to give an additional 10% to 15% minimum increase.

Last, monitor cases of ‘red circle’ pay. This happens when line managers, for fear of being unpopular, give merit increases to below-standard workers. If this happens, line executives must consult their human resource (HR) department before recommending any pay increase. One solution would be to assign additional tasks to the worker to reconcile the pay level with the salary scale.

This list is not complete. There are many objective approaches to help you measure performance. Therefore, when a line manager uses the word “average” to describe a worker’s performance, think twice. Then compare how the manager rates workers with how you would assess performance. Chances are, they won’t line up.

Have a chat with Rey Elbo via Facebook, LinkedIn or Twitter or send your workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting

Assessing the chances of the presidentiables

October 22, 2021 | 12:01 am

At the close of the registration of candidates for the 2022 elections, an astounding number of 97 persons registered their desire to be presidential candidates. Based on their qualifications, political machinery, and access to financial resources, I believe that less than a dozen will be winnable candidates.

With the elections just seven months away and the fate of a nation mired in Covid and unemployment at stake, it would not be hyperbole to say that the next president will lift us from gloom or further sink us to the depths.

Serious candidates should have the machinery, credible platform, name recall, record of service, and financial resources to back up their candidacy. At this stage these would include Panfilo Lacson, Francisco Domagoso, Manny Pacquiao, Ferdinand Marcos ,Jr., Ma. Leonor Robredo, and Ronald dela Rosa, who filed his candidacy at the last hour.

In 2016, the economy was buoyant with a decent 6.8% GDP growth rate. In 2021, because of the combined effects of the pandemic and the ineptitude of the government response, that growth rate will be about 4.5 %, but that simply means that we will still be in the hole as the GDP growth rate collapsed to -9.6%, which means we still have a contracted economy at end-2021. The jobless level is at 3.7 million as of June 2021, and many overseas Filipinos are being sent home most visibly those employed in the cruise ship industry. In short, it is unlikely that this will be a shining light of this current administration.

In a many sided battle, which is shaping up in this coming election, it is extremely likely that the next president will be a plurality president, garnering at best around 20% of the vote. The C, D, and E economic brackets will be a major battleground with the advantage not going to any particular candidate (unlike 2016), but will be divided among those with the best message, machinery, and money.

I see the weakest of the candidates in Manny Pacquiao. He may be wealthy and have some resources, which literally were the work of his blood and sweat. He may have the name recall, for having brought home honors to our country through his boxing exploits. However, as his current disastrous interviews with international journalists have shown, he likely will not be the one to lead as he has a platform principally based on faith and motherhood statements. In a presidential debate with the other candidates, he will likely take a bath. Politically, he may be headed to a Yordenis Ugas type of beating.

The candidacy of Bato dela Rosa is one based on following the dictates of his former master. He is viewed as being a placeholder for the eventual entry of Sara Duterte. He obviously has no long-term views of the presidency, as shown in his post-certification interviews. His party is credible, however, as it is viewed to have the government machinery to back up whoever will wind up as the official candidate post Nov. 15. It is touted that this candidate has tons of money backing him up, plus likely the support of Beijing whose credibility in the bogus “9-Dash Line” was bolstered by his master.

Isko Domagoso is a reprise of the surprise win of a former Davao mayor. He has had credible performance as a local official and the backing of one or more tycoons. He has not had any link to scandals. The choice of a weak VP candidate, however, is almost a sure sign that his role is to take away votes from the opposition.

Bongbong Marcos’ pronouncements of nation building has really only one goal, and that is to rewrite history and the international opprobrium that goes with the Marcos name. His record as a senator was one marked with mediocrity and his prime focus is to keep his base in the North satiated with projects and political largesse. Very few disagree that his candidacy will be well funded from the legendary but dubious Marcos wealth.

Ping Lacson has a credible candidacy. Politically, he has not in recent times been linked to any scandal. He exposed the nefarious plot of government to import overpriced vaccines and was able to prevent it. He seems to have the backing of a good number of local Chinese businessmen and has had the experience of running a presidential campaign. His past taste to resorting to EJK may be resurrected but this may not have recall among younger voters. It is disturbing that his running mate has received praises from Duterte, but the important thing is really the presidency.

Finally, there is the late-filer Leni Robredo. Her political career and public service record are unblemished. She has run variously as congresswoman then as vice-president on principles, a wing, and a prayer. For the 2022 race, she is doing this again. Way down in the polls in 2016, with very little financial backing, she beat Bongbong Marcos. She beat him again in the Supreme Court, winding up with more votes. Arrayed against her are the massively funded opponents. No telling where her candidacy will go and certainly, she is not the front runner for today.

Philippine elections are like horse races. There is so much cheating that it may actually turn out honest.

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

Edwin V. Fernandez is the chairman of Armada Rescue and Safety Equipment Corp., vice-president of the Development Center for Finance, and past president of FINEX.