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Too-big-to-fail banks still stable

BSP Governor Benjamin E. Diokno

TOO-BIG-TO-FAIL banks are in a strong position despite the ongoing coronavirus pandemic, supporting the financial system’s overall stability, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Thursday.

“D-SIBs (domestic systematically important banks) remain on solid footing amid the heath crisis. We see this contributing to the overall soundness of the domestic financial system and the country’s financial stability,” Mr. Diokno said at an online briefing.

The central bank does not disclose the actual number of lenders that are considered as D-SIBs. However, the central bank chief assured they will “continue to work in further deepening the public’s understanding of the nature of a D-SIB in the BSP’s regulatory framework.”

Central bank data showed the capital adequacy ratio of D-SIBS improved to 15.8% at end-2020 from 15.3% the year prior. This was above the 10% minimum requirement by the central bank and the 8% mandated under the Basel III standard.

Assets and deposits of these too-big-to-fail banks also rose by 6.2% and 8.5%, respectively, as of March.

On the other hand, D-SIBs’ loan portfolio shrank by 3.6% as of March. Their nonperforming loan (NPL) ratio stood at 3.3% while NPL coverage ratio was at 99.4%.

The central bank said it is on the lookout for systemic risks at the micro and macro level that could affect the financial system and, consequently, the economy.

In April, the central bank announced it would require too-big-to-fail banks to submit a separate recovery plan annually starting 2022. The BSP previously only required D-SIBs to submit an Internal Capital Adequacy Assessment Process document, which includes the recovery plan, annually every March 31.

“The issuance aims to tightly embed the recovery planning work in the broader crisis preparedness framework, as the importance of crafting a viable and sound recovery plan has been highlighted in this health crisis,” Mr. Diokno said on Thursday.

Last week, the interagency Financial Stability Coordination Council spearheaded by the BSP said most risks to the financial system have been “under control,” but noted borrowers’ impaired ability to pay their debts due to the crisis is among the top risks that could affect the sector.

Meanwhile, the central bank chief also said they will remain vigilant about the impact of the crisis on the country’s labor conditions, which could affect price stability.

“Changes in the labor market outcomes pose significant implications on wage dynamics, thereby affecting the rise in prices and the ability of the economy to recover from the crisis,” Mr. Diokno said.

He noted that the Philippine Statistics Authority’s (PSA) monthly release of the Labor Force Survey versus the previous quarterly schedule also allows the central bank to better monitor the labor market.

Latest PSA data showed the jobless rate stood at 8.7% in April, inching up from the 7.1% in March but still better than the 17.6% seen in April 2020. Analysts attributed the higher jobless rate to the impact of renewed lockdown restrictions in Metro Manila and nearby provinces.

The April unemployment rate represents 4.138 million unemployed Filipinos, up from the 3.441 million in March albeit lower than the 7.228 million in the same month of 2020.

Mr. Diokno has said the central bank will remain accommodative to support the country’s more “stable” bounce back. He said they will also monitor the labor market to assess the pace of economic recovery. — LWTN

URC sees possibility of flexible working beyond pandemic

UNIVERSAL ROBINA Corp. (URC) said the safety measures it undertook for its workers did not hinder the company from reporting a profit during the pandemic year, and added that it is considering extending the arrangements in some form beyond the pandemic.

The company, a unit of the Gokongwei group, makes food, including many consumer items that suffered minimal diminution in demand during the public health crisis. 

Elisa O. Abalajon, URC chief human resources officer, said in a statement Thursday that the company’s employees remained productive over the course of the troubled year.

“This has allowed URC to overcome headwinds caused by the COVID-19 pandemic.  It reported a 15% growth in net income to P11.6 billion last year,” Ms. Abalajon said.

Ms. Abalajon said the company has had health guidelines in place since February 2020, which initially started out as a flexible hours scheme for some employees, that became a five days a week work-from-home arrangement after the government announced a lockdown in March that year.

“In the months since the remote work system was implemented, it’s been proven that URC employees remain highly productive. The company is now considering keeping this arrangement post-pandemic,” Ms. Abalajon said.  

Ms. Abalajon said the company provided temporary lodging to 600 employees that needed to be on site such as machinery operators and technicians. URC also provided free shuttle services to employees who needed to travel daily.  

“Apart from easing the workers’ burden of commuting between their homes and URC’s plants, it also provided them an extra layer of safety as their outside exposure to the virus was minimized,” Ms. Abalajon said.

“Human resources noticed that employees seem to be working even harder than usual during this pandemic,” she added. — Revin Mikhael D. Ochave

Globe partners with Telus, AT&T for 5G roaming in Canada, US

REUTERS

GLOBE Telecom, Inc. announced on Thursday that it is working with Telus Corp. in Canada and AT&T, Inc. in the United States to roll out fifth-generation (5G) roaming services this month.

“The company’s venture to secure North American locations proved successful as they will officially launch the 5G roaming service through Canada-based Telus on June 15 and USA-based AT&T on June 17,” Globe said in an e-mailed statement.

Globe also announced it partnership with Vodafone Group plc, a telecommunications company in Europe.

“Globe roamers in Hungary, Germany, Ireland and Netherlands will get enhanced 5G connectivity experience by July 2021,” the Philippine telco said.

Globe’s 5G roaming is currently available in Finland, Denmark, Sweden, Norway and Estonia through Telia Company; Italy through Telecom Italia; and Hungary, Germany, Ireland, and the Netherlands through Vodafone.

“We will fulfill our commitment to continuously innovate with a purpose so our customers will be prepared to roam the world with 5G technology at their fingertips,” said Coco Domingo, Globe vice-president for Postpaid and International.

Globe’s 5G roaming is also available in Kuwait and Qatar through Ooredoo; Saudi Arabia through STC; Taiwan through Taiwan Mobile; Thailand through AIS Thailand; United Arab Emirates through Du and Etisalat; Hong Kong through CSL; South Korea through SK Telecom; Singapore through Singtel; Turkey through Turkcell; and Oman through Omantel. — Arjay L. Balinbin

Friends

Movie Review
Moral
Directed by Marilou Diaz-Abaya

Available on iTunes and KTX.PH

(Warning: narrative and plot twists discussed in explicit detail)

MARILOU Diaz-Abaya’s Moral (1982) bends stereotypes right from the start, beginning where most comedies and love stories end: with a marriage. Maritess (Anna Marin) is in the process of being wedded to (welded to?) Dodo (Ronald Bregendahl) when Joey (Lorna Tolentino) stumbles late into the church, fumbles her way to a seat, giggles at inappropriate moments; Kathy (Gina Alajar) sings a song, a heartfelt performance but — isn’t she a touch off-key? When the ceremonies end it’s not bride and groom running out from under a shower of tossed rice but bride and friend and friend and friend — Maritess and Joey and Kathy and Sylvia (Sandy Andolong) linked arm to arm, camera retreating before them as they march forth into the world.

We follow Maritess as she settles into the role of wife and mother in a large house (“it’s over 50 years old!”) and even larger family (children and infants crawling in and out of all corners). We learn about her friends — Kathy is an aspiring singer whose ambition outpaces her ability; Sylvia is an education major turned teacher (we see the four graduating from college) separated from her husband; Joey is the wild child that links the four. Joey can never tell where she’ll spend the night, in one of her friends’ spare bedrooms, at her mother’s, or with one of the many men she’s slept with.

Maritess chides Joey on her lifestyle: “Women aren’t supposed to be promiscuous, only men.” That I think is the key statement describing Joey: not that she’s a man with breasts and vagina attached but a woman who never really thought in those distinctions. Ironic twist: she does care about one man — political activist Jerry (Michael Sandico) who’s near-unattainable, committed to the idea of political commitment.

Ms. Diaz-Abaya is the director of this ensemble piece but it’s impossible to discuss the film without mentioning the rest of her ensemble, not just the actors (who are superb) but writer Ricky Lee. I’ve seen my share of Mr. Lee films, some which I’ve liked some which I, alas, haven’t; this may be his best work, and strong evidence to consider Mr. Lee a co-auteur. The writer-director team, coming off of the success of Brutal (one of Lee’s several reworkings of Kurosawa’s Rashomon), wanted to do a second film using the previous feature’s two stars, Gina Alajar and Amy Austria, involving a talented singer and a less talented one. But Austria left the production, and Mr. Lee reworked the script into a story of four friends.

The film’s form is an assumed formlessness but you can see the thinking that went into the script: Kathy’s story satirizes showbiz; Sylvia’s explores homosexuality; Maritess’ deals with the traditional role of women as selfless wife and mother. Joey, I suspect, represents Filipino feminism in the 1980s, a rebel in search for a cause — she’s just not sure what. That’s what attracts her to Jerry: he knows what he wants and is working passionately to achieve it.

That’s the agenda, and Mr. Lee and Ms. Diaz-Abaya work to fudge the outlines of that agenda, distract us from looking closely at the structure. The dialogue helps, the film featuring some of Lee’s funniest lines, including a discourse on underwear (“You can tell a man from the briefs he wears.”). You imagine Ms. Diaz-Abaya, like Fellini, taping a reminder to her camera: “remember this is a comedy.” Ms. Diaz-Abaya takes her cue from Joey as she jumps from one storyline to the next in apparent random order; she cuts (with help from husband Manolo Abaya and Marc Tarnate) with the no-nonsense air of a comic director keeping the pace brisk, the audience off-balanced. Mr. Lee further contributes by throwing the women curveballs: Jerry introduces Joey to his fiance Nita (Mia Gutierrez); Sylvia realizes her husband Robert (Juan Rodrigo) has a boyfriend Celso (Lito Pimentel) who dances in a nightclub; Kathy — well she’s in showbiz and showbiz is nothing but curveballs (that’s why industry folk are so paranoid); Maritess slowly realizes what kind of family she’s married into and what’s expected of her (she’s a factory worker expected to churn out babies).

Helps (again) that Lee’s curveballs themselves are sometimes fascinating. Mr. Pimentel’s Celso is a languid zen hedonist living in an airy apartment: tall grilled-iron windows draped with ribbony curtains, the naked concrete ornamented with carvings and Robert’s paintings; he serves Sylvia brewed coffee (this was before Starbuck’s aggressive worldwide expansion) and mentions a supplier in Batangas (he could almost be talking about quality cocaine). He insists that he and Robert are partners, suggesting a more enlightened arrangement than traditional marriage, though when he breaks down their respective duties — he does the shopping and cooking, Robert does the house repairs and pays the rent — you sense a more exploitative slant. Celso seems to consider himself a performing artist, and lives on his own terms (he loves Robert, but refuses to stay faithful); Sylvia looks on, appearing both enlightened and overwhelmed, and not a little envious.

Then there’s Joey’s mother Maggie (Laurice Guillen) who had been forced to give birth to Joey at 15 and left child and husband not much later. She’s had a tumultuous life to put it mildly and I don’t see anyone sending her a Happy Mother’s Day card anytime soon (for one she used to slap Joey for calling her “mother” instead of “Maggie”). Script and film seem to want to position her as a villain, but Ms. Guillen plays Maggie with defiant dignity; like Celso she may be morally questionable, but quietly insists on her right to exist.

I did mention Moral bends rather than breaks stereotypes; it has its predecessors in structure and subject matter, including Ishmael Bernal’s Aliw (1979) and Manila by Night (1980); Ingmar Bergman’s Cries and Whispers (1972); Kenji Mizoguchi’s Street of Shame (1956); even Gregory la Cava’s Stage Door (1937). What Ms. Diaz-Abaya and Mr. Lee add to a small but diverse library is a royal flush of performances, an understated comic sensibility, and the beautifully silvered yet naturalist glow of 1970s and early ‘80s Filipino cinema (brought about by, again, Manolo Abaya — there’s an argument to be made that he along with Mr. Lee and Ms. Diaz-Abaya are co-auteurs).

There’s predecessors and then there’s politics, and looking back almost 30 years later they seem surprisingly dated — surprising because we remember the film to be such a pioneering landmark. I’ve mentioned Maggie being set up as a villain (and submit Ms. Guillen’s performance mitigates that); Joey in turn is apparently punished for her promiscuity — she’s knocked up (doesn’t know by whom), goes around seeking money for an abortion. Maritess turns her down of course (“what you’re doing is wrong”); Maggie hems and haws (“you’ll only destroy your life”); Joey’s choice is ultimately taken from her —  she has a miscarriage —  and you wonder if Mr. Lee or Ms. Diaz-Abaya made the decision to unceremoniously pull the plug on that subplot. I’m thinking Ms. Diaz-Abaya —  she has both progressive beliefs and a strong Catholic faith and the struggle between the two plays out continuously onscreen.

Take Maritess’ storyline: she’s in over her head, even to the point of sexual assault (she’d refused her husband sex); she leaves him, but in the end relents to seeing her husband to negotiate a more equitable relationship. I can see the point to her capitulation — there’s no divorce in the Philippines, legal separation is obtained with much difficulty, and marital rape was belatedly outlawed in 1997 — but would have liked to have seen more ambivalence, even some bitterness, in Ms. Marin’s performance.

With Gina Alajar’s Kathy, Mr. Lee and Ms. Diaz-Abaya are on more comfortable ground and go for comic gold. Kathy is hilariously clueless; every time she opens her mouth you cringe in anticipation. In an interview she articulates her new Hare Krishna/Catholic mishmash of a faith, responding to the journalist’s pointed questions: “some call me Kathy, some Katherine, still others Kate, and when I was young Tate; if I can have four names why can’t God?” Kathy does have a nicely played scene where she’s in bed with the single most corrupt figure she’s encountered so far (Jess Ramos’ corpulent Mr. Suarez) and asks: do I have talent? Things may be going her way but Kathy, after all is said and done, values truth over showbiz achievement, and the poignancy of the moment is made sharper by all the comedy that came before.

My favorite moment is possibly the conclusion to Joey’s storyline (if anyone’s the protagonist it’s likely her, the Portnoy of Filipino feminism, comically neurotic and sympathetically stubborn). When Jerry suddenly shows up and asks Joey to take in his newly pregnant wife while he joins the rebels, Joey accepts; she’s still that much in love. Joey’s short with Nita at first, but Nita fights back with modesty (“don’t mind me too much”) and an underhanded guilt-trip campaign (“Don’t bother with that! I have someone come in twice a week,” “That’s okay, it gives me something to do”). Joey comes home one day and Nita gets up to fix her supper; in the midst of preparation Nita drops the bomb: “Jerry’s dead.”

It’s a great scene and I suspect Mr. Lee’s (he had once been arrested and enjoyed the full hospitality of Marcos’ enhanced interrogation officers), but Ms. Diaz-Abaya stages the scene with matter-of-fact directness and husband Manolo lights and shoots it with beguiling simplicity. Nita continues to prepare supper, recounting with quiet dignity how Jerry was captured, tortured, killed, the white kitchen tiles suggesting her just-canonized status as both political activist and soon-to-be mother; Joey on the other hand sits on her bed in the opposite corner of the studio apartment, the shadows gathered around suggesting the depths of her despair. The scene is sad of course, but also horrifyingly funny: how can Joey possibly compete? Nita doesn’t just have Jerry’s love, she carries Jerry’s child and is getting ready (has her bag all packed) to continue Jerry’s legacy. Game set match: Joey is left with hugging Nita and her unborn child tight, the only possible way she can bid Jerry farewell.

What else can I say? Moral is flawed yes but fascinatingly so, borne I suspect from the director’s inner contradictions; it’s an ensemble film about an ensemble of friends and while not as radical as we remember it, is still a well-rendered example of the genre. Great film? Thought so, and watching this restored version I’m happy to say still do.

A Minute With: The Queen Bees cast on age and role of older women

QUEENBEESFILM.COM/

NEW YORK — Oscar winner Ellen Burstyn plays a reluctant new arrival at a retirement home in comedy Queen Bees, where she comes face to face with a gang of “mean girls.”

Despite insisting on a temporary stay while her home is renovated, Ms. Burstyn’s character Helen soon makes friends with the women and finds romance as well.

The 88-year-old, known for her work in Hollywood, television and Broadway, spoke to Reuters about the role alongside co-stars Ann-Margret and Loretta Devine.

Below are excerpts edited for clarity and length.

Q: What made you want to do this film?

Burstyn: It was a different image of a retirement home that I was carrying in my head … We were in a real retirement home and it was beautiful. I was surprised at how many activities there were and the swimming pool and the beautiful dining room and good food and then a lot of love affairs were going on there.

Q: Did you have any hesitation in doing the film?

Ann-Margret: No hesitation at all, no. And it was so much fun having (actor) Christopher Lloyd as my boyfriend. He was so dear and full of life and so endearing.

Burstyn: Writers don’t write very often films for four women in their 70s and I’m in my 80s … it’s a rare thing and it’s a relief for me to see people that I recognize as somebody that I might actually know … and not older people just pictured as doddering old folks on their way out. I like that about it, it’s fun.

Q: Why are films like this important?

Devine: Someone very rich and famous told me to never tell my age … Now everything’s on the internet so, you go, what the hell? This is what it is. And so, what’s the point of hiding, you know?

Q: What are the joys of getting older?

Burstyn: It depends on your mindset … if you think about it as the end of the road and all the fun is gone, it’s not very fun. But if you keep on learning, like I try to keep on learning all the time, it just goes on being better and better. You feel more secure, you feel more confident, and you feel like you know what’s going on.

Devine: You get to say things you never would have had the courage to say when you were younger.

Ann-Margret: I notice people take my arm (and ask) “Are you OK?” It’s very sweet. — Reuters

Free-testing bill for jobseekers filed in Senate

REUTERS

A SENATE BILL is proposing to require free coronavirus testing for all jobseekers.

Senator Juan Edgardo M. Angara filed Senate Bill No. 2291 which will require the government to pay for testing costs of those seeking employment.

“Through this proposed measure, the government by covering the additional pre-employment cost (of) COVID-19 tests, promotes the safety of jobseekers and ensures the sustainability of businesses and jobs by subsidizing the COVID-19 testing especially for the micro, small and medium enterprises,” he said in the bill’s explanatory note.

“Through this policy, we are not only recognizing the importance of ensuring the safety and health of our entire workforce but we are also providing equal employment opportunities for younger cohorts and those who became unemployed during the pandemic to enter the labor market,” he added.

Mr. Angara cited the World Employment and Social Outlook Trends 2021 report by the International Labor Organization released in June which estimated that the pandemic resulted in the loss of 8.8% of total working hours in 2020 or the equivalent of the hours worked in one year by 255 million full-time workers.

Unemployment in the Philippines was 8.7% in April, representing about 4.14 million jobless. The rate rose from 7.1% in March, according to the Philippine Statistics Authority.

The bill will require the Health department, in cooperation with the Department of the Interior and Local Government, the Department of Labor and Employment (DoLE) and the Department of Trade and Industry (DTI) to provide free and accessible coronavirus testing for jobseekers.

The measure covers first-time jobseekers, unemployed persons actively seeking work, and displaced workers who were terminated for various acceptable reasons, including the pandemic.

Testing centers are to allocate a percentage of their daily testing slots for jobseekers covered by the bill.

The DoLE and DTI in a memorandum circular in August clarified that coronavirus testing is not recommended nor required for employees without symptoms who are returning to work.

Mr. Angara also noted that while there is free coronavirus testing offered by the Philippine Health Insurance Corp., it is only limited to at-risk individuals with severe and mild symptoms with travel histories or contact with known victims, healthcare workers, senior citizens, and returning overseas Filipino workers. — Vann Marlo M. Villegas

Rediscount facility untapped for eighth month in a row

BANKS DID NOT avail of the central bank’s rediscount facility in May, reflecting ample liquidity in the financial system.

“There are no availments under the Peso Rediscount Facility and the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) covering the period Jan. 1 to May 31,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.

May was the eighth straight month that lenders left the rediscount facility untapped.

Through the rediscount window, the central bank lets banks get additional money supply by posting their collectibles from clients as collateral.

For their part, banks may use the cash — denominated in peso, dollar or yen — to disburse more loans for corporate or retail clients and tend to unexpected withdrawals.

In 2020, the rediscount window was only tapped by banks in March, April, August and September. Total loan availments last year dropped 77.7% to P26.9 billion from the 2019 level.

Meanwhile, the EDYRF was left untouched last year.

Banks have no urger need to tap the rediscount window due to the robust liquidity level in the financial system, which came on the back of central bank intervention at the height of the crisis paired with lower demand for loans, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said on Thursday.

Last year, the central bank slashed the reserve requirements of big banks by 200 basis points (bps) to 12% and trimmed those for thrift and rural banks by 100 bps to 3% and 2%, respectively.

BSP Governor Benjamin E. Diokno has said the regulator’s policy actions have infused over P2 trillion in fresh liquidity into the financial system.

But even with banks being awash with cash, lending has remained tepid as both financial institutions and borrowers continue to be risk averse due to lingering uncertainty as the crisis stretches on. Outstanding loans by big banks contracted for the fifth straight month in April, dropping by 5% from the year prior.

Meanwhile, for this month, applicable rates for peso rediscount loans will be at 2.5%, regardless of maturity.

On the other hand, rates for dollar and yen-denominated rediscount borrowings regardless of maturity are set at 2.17638% and 1.91417%, respectively. — L.W.T. Noble

Two more firms join green energy option program

PHOTOANGEL/FREEPIK.COM

THE Department of Energy (DoE) has authorized two more suppliers of renewable energy (RE) to participate in the government’s green energy option program (GEOP), bringing up the number of eligible firms to 12.

In an announcement on Thursday, the DoE said that Shell Energy Philippines, Inc. (SEPH) and Green Core Geothermal, Inc. (GCGI) can now participate in the GEOP. SEPH is a retail electricity supplier of Pilipinas Shell Petroleum Corp., while GCGI is owned by Energy Development Corp.

The two firms join 10 renewable energy suppliers that were previously announced as qualified to join the program, and were awarded GEOP operating permits by the DoE.

Launched in 2018, the GEOP is a voluntary policy mechanism that allows users consuming at least 100 kilowatts of power to source their supply from qualified retail energy suppliers that source electricity from renewables.

Sources at EDC said on Thursday, GCGI will be allocating over 200 megawatts (MW) in capacity for the program. They added that the Luzon-based Bacman Geothermal, Inc., which earlier received clearance to participate in the GEOP, will allot 130 MW.

BusinessWorld reached out to Pilipinas Shell on the planned attributable capacity of SEPH for the GEOP, but the firm has yet to comment as of deadline time.

In April last year, the DoE issued guidelines for suppliers that wanted to participate in the program.

The department circular, “guidelines governing the issuance of operating permits to renewable energy suppliers under the green energy option program” states that RE suppliers covered by the program must:

– Comply with the terms and conditions of the GEOP operating permit;

– Submit annual reports to the DoE’s Renewable Energy Management Board on or before Jan. 30;

– Ensure that the total power from its facilities are greater or equal to the total kilowatt hour sold to its consumers;

– Register in the Wholesale Electricity Spot Market and with the Central Registration Body before supplying power to end users; and

– Register with the RE Registrar.

The GEOP gives more end users the chance to access clean power from qualified RE firms. — Angelica Y. Yang

Stuff to do (06/11/21)

Lapu Lapu rock opera streams this weekend

AS an Independence Day treat, the Earthday Jam team will be streaming the musical Lapu Lapu, the Neo Classic Ethno Rock Opera on YouTube on June 12 for 24 hours, for free. With music by Jose “Toto” Gentica V and libretto by Victor Henry Tejero, the opera follows the 1521 story of how Ferdinand Magellan brings Christianity to the country and ultimately dies in battle with Lapu-Lapu in Mactan. To watch, visit https://www.youtube.com/watch?v=JDO9HwGhY5s.

Arts and crafts market at Eton Centris

PUESTO Manila and Eton Centris present We Art Centris, a pocket arts and crafts market arrives in Quezon City. There will be artworks, stickers, keepsakes, handmade jewelry, journals, shirts, bags and other handcrafts on sale on June 11 to 13, and June 18 to 20 at the Centris Walk, Eton Centris. The art and craft booths will be set apart from each other. Face masks and face shields should be worn at all times. For more information, visit www.facebook.com/puesto.manila/posts/4131227710325916.

Art Fair closes with talk on Arturo Luz

THE ART Fair Philippines 2021 website will close with an event celebrating National Artist Arturo Luz, who passed away recently at the age of 94. RTFAIRPH/TALKArturo Luz: Personal Views will be held on June 15, 6 p.m. A panel composed of Ambeth Ocampo, Andy Locsin, Tina Bonoan, and Malu Gamboa will share reminiscences and personal stories of the artist. It will be moderated by Boots Herrera.

A global mindset

THE recent exploits of Yuka Saso, a teener who won the golf majors will surely get a lot of coverage in the news for it represents a first for the Philippines. But it validates what we all know from our army of overseas Filipino workers. We may be a small nation but in the global stage, we are a people who can compete and perform in the highest level.

In order to do so, we need to support those with the potential. Yuka was lucky to have a private company, ICTSI, that backed her up at the start. There’s a running joke in one of my Viber groups that lauded the private sector’s support and hoped the government wouldn’t step in as it might jinx the winning streak. Levity aside, young athletes like Yuka should get support from all sides if the Philippines is to showcase its talent.

The support need not be totally financial. It can be seen in other forms. Look at the case of Kiefer Ravena, the local basketball phenomenon trying to get into a Japanese league. A column by sportswriter Homer Sayson says it all in its title, “As basketball goes global, PBA sets clock back a hundred years.” Of course, the PBA has legal ground as it has contract stipulations that apparently prevent the move. But as Sayson argues, the PBA needs to be open-minded to provide “a free-flowing bridge that allows our homegrown talents to spread their wings overseas.”

Consider the case of chess wiz Wesley So. A full-blooded Filipino, Wesley was the youngest Filipino International Master at age 12 and his world ranking skyrocketed to number 2 in 2017. Yet sometime in 2014, So joined the United States chess federation after becoming disenchanted with local sports politics. Apparently, he was denied a P1 million incentive from winning the gold medal in the World Universiade Games. Today, he competes for the USA and no longer for our country.

It is sad that the prevailing trend in many economies these days is to be protectionist, a move borne out of a defensive, politically motivated policy meant to shield domestic businesses. In the long run, such acts are ultimately harmful to consumers as protectionism weakens domestic industries. Competition is the ultimate vehicle that fosters creativity, innovation and improvement. And, as in sports, to really do well, we must check the quality and standards at the international scene. That’s what Saso has done, what Kiefer hopes to achieve, and what So has demonstrated. Our thinking should go beyond the limits of our geo-physical boundary.

Dr. Gary Ranker defined a global mindset as the ability to step outside one’s base culture and to understand there is no universally correct way to do things. The definition calls for a willingness to take risks, to explore, to learn and to adapt. This means having an inclusive and learning mindset and going out of your comfort zone to proactively explore opportunities. It presumes learning and understanding common patterns across cultures, countries and markets. Decisions will then be culturally sensitive and will take advantage of opportunities the differences bring. The global mindset is situational and diverse. It makes no presumptive judgment that differences and similarities are neither positive nor negative.

Given the pandemic, it is understandable that countries look inward to save themselves first before opening to the world. Unfortunately, this type of thinking has also led to irrational behavior like the hoarding of the vaccines by developed countries and an exclusion mentality. Yes, there is a need to be open, to step outside one’s base and to remember that ultimately, we are all interconnected.

In many economies, the “buy local” campaign has become a major initiative. In one such blurb, subscribers are exhorted to “keep your money where your heart lives, support an economy of friends and neighbors, and build a community that thrives by thinking local first.” It makes good sense for products and services that are best sourced locally for so many reasons — reducing environmental impacts, creating local jobs, building unilateral resilience. Such initiatives deserve support but only up to what can be sourced locally. To extend it further is irrational. The local economy must specialize on what they do best and surely it is not designed to produce everything its people need and want. Go local but think globally.

Philippine Independence Day is just around the corner. We have to let the nationalistic fervor burn. But we have to realize we cannot be myopic and we should allow opportunities for the country and our people to shine in the international arena when we can. We should defend what we have while we keep an open view on what we can achieve or do elsewhere. The best in the world should be our standard if we want to break out of our laggard position in this part of the globe. We cannot have a parochial mentality. What works at the city level need not work at the country level. What works at the country level must be benchmarked against the best in the world. We need to embrace a global mindset.

 

Benel Dela Paz Lagua was previously Executive Vice-President and Chief Development Officer at the Development Bank of the Philippines.  He is an active FINEX member and an advocate of risk-based lending for SMEs.  The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

How HR must monitor all employee issues

I’m the operations manager of a medium-sized factory. In recent months, I’ve noticed an increasing number of issues raised by workers against line leaders and supervisors. I’m afraid that those issues could ripen into major ones, if not galvanize the workers to agitate against management. Our human resource (HR) manager appears not to be bothered by this and considers it part of a “healthy proactive communication process” which he initiated six months ago. What do you think? — Yellow Bell.

There’s one game that I love to share with participants attending my management seminars. The participants are grouped into three to five teams with a minimum of three members each. The teams are given plastic drinking straws and masking tape. The challenge is to build the tallest and sturdiest structure representing a condominium building in 15 minutes.

They are free to do whatever is necessary to accomplish the goal. No further rules are imposed except for the time constraint. Some teams just go to work without planning. Others appoint a leader, while other groups allow a volunteer to take the lead in the construction process. Some spend a lot of time choosing their leader, others take so much time to plan that they have little time to do the actual construction work.

The game offers fascinating lessons for everyone. Many efforts fail due to bickering, superiority complexes, a lack of teamwork, personality conflicts. Some relish a project with so few rules. Some of these elements could be present in the rash of complaints you have been experiencing.

MONITORING SYSTEM
If any one thing can generate employee enthusiasm and foster loyalty, I would say it is a healthy, proactive, two-way communication process.

If the workers don’t trust management, they will not bring up these issues. Such a program cannot be rolled out overnight. Even six months or one year might not be enough. It requires a long-term commitment by management, along with a considerable investment of time, effort, and energy.

The HR department must take an active role, not only in encouraging people to voice out their ideas, suggestions, even complaints. For HR to become a key player in this “healthy proactive communication process,” it must create and sustain a formal monitoring system that tracks how employee issues are resolved.

In doing so, HR must establish the following rules:

One, all issues must be tackled first by line leaders. They are the company’s first line of defense. Therefore, all leaders, supervisors, and managers must undergo formal training on how to handle such issues. The training may include how to conduct meaningful and productive dialogue.

Two, line leaders must send a formal report to HR. This means sending an e-mail to the HR manager, with the operations manager copied in. The report should contain a full discussion of the issue, detailing the five Ws (who, what, where, when, and why). The “how” may be included as well. It’s better if HR comes out with a standard form for uniformity and classification of issues.

Three, all issues must be resolved promptly. A quick resolution prevents escalation to the next level. To make it easy for everyone, HR may single out those issues that should be resolved within a certain timeline. For example, minor issues must be resolved within one calendar week, while major ones are to be dealt with within 30 calendar days.

Four, unresolved cases are elevated to the next level. Even though the participation of line leaders is important, disgruntled workers may still seek to appeal to higher-ups. If this happens, the next level must think hard about overturning any decision reached by the supervisors. 

Last, HR must compile best practices. The focus is to determine the key ingredients behind the quick resolution of employee cases. These must serve as live examples in the training program to be given to line leaders and supervisors. The model supervisors with high success rates in resolving issues must also be commended.

MANAGEMENT COMPETENCE
Over a reasonable period, the task should be easy for line leaders, supervisors, and other managers if they start and maintain regular one-on-one discussions with their workers. It is time-consuming but worth the effort to build the needed trust and confidence that only personal contact can bring about.

The key is to show these line executives how to be competent and decisive in doing their jobs. This is very important. When workers feel they’re dealing with nincompoops, they tend to spread the word and silently question their capacity to communicate and operate effectively.

“Supervisor X can’t make an instant decision, even on the easy cases.” This sums up how negative such perceptions can be. Whether true or not, it can weigh heavily on the success or failure of one’s career in management. To further complicate things, it is usually the boss of these “incompetents” who holds the key. At times, they rein in their line leaders so much that they can’t make independent decisions.

The remedy, of course is to empower line leaders to a certain extent. Regard them as management’s strongest ally in good governance.

 

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

SEC backs easing of bank secrecy law

REUTERS

THE Securities and Exchange Commission (SEC) is backing the amendment of the Republic Act No. 1405 or the Secrecy of Bank Deposits Law to further strengthen its efforts against dirty money, tax evasion, and other financial crimes.

“Such provisions will lift a long-standing barrier to effective investigation and prosecution of financial crimes,” the corporate watchdog said.

The amendments under House Bill No. 8991 will empower the SEC, the Bangko Sentral ng Pilipinas, the Philippine Deposit Insurance Corp., the Anti-Money Laundering Council, the Department of Justice, and other courts to look into the deposits of supervised institutions or persons should there be reasonable grounds to do so.

The commission said the law has hampered investigations of the SEC.

“The Secrecy of Bank Deposits Law has limited the effectiveness of the SEC, for instance, to establish the owners of bank accounts used in cases of violations of the Republic Act No. 8799 or the Securities Regulation Code, Republic Act No. 11232 or the Revised Corporation Code of the Philippines, and other laws implemented by the commission,” the SEC said.

It has also prevented the commission from validating declared financial positions of companies “where there are ground to believe that there is an effort to conceal misconduct, corporate fraud or noncompliance with certain requirements.”

The SEC added that the amendments would lead to lower costs in cross-border transactions, as well as eased restrictions in investment and foreign currency inflows.

“[It would] keep the Philippines off the FATF (Financial Action Task Force) ‘grey list’ of jurisdictions under increased monitoring for high risks of money laundering and terrorist financing,” the commission said.

PROGRAM AGAINST DIRTY MONEY
Meanwhile, the SEC is requiring newly covered financing companies, lending institutions, and those applying for a certificate of authority to operate as financers and lenders to create a “comprehensive and risk-based Money Laundering and Terrorist Financing Prevention Program” (MTPP).

In a notice published on its website, the commission said details of their programs should be submitted by June 21.

“Those who have not yet submitted their MTPPs, you are given until June 21, 2021 to submit your MTPP to the Anti-Money Laundering Division of the Enforcement and Investor Protection Department (AMLD-EIPD) of the commission,” the SEC said, adding that those who fail to comply will be subjected to penalties.

Covered firms are asked to submit their programs to eipd-amld@sec.gov.ph using their official e-mail addresses, along with a copy of a board resolution or certification by their country/regional/area head or equivalent stating that they have approved of the MTPP.

The SEC’s AMLD-EIPD will send a confirmation once they have received a copy of the program. A physical copy of the MTPP and the required attachment is no longer needed.

Meanwhile, for those still applying for a certificate of authority to operate a financing company or lending company will need to present a sworn certification. It will be part of their documentary requirements for licensing.

Once their application for registration or licensing is greenlit, they will be required to submit a soft copy of their MTPP within 10 days after receiving a registration certification or a secondary license from the commission. — Keren Concepcion G. Valmonte