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POEA once more extends deadline to file reports on welfare of deployed workers

THE Philippine Overseas Employment Administration (POEA) has once again extended the deadline for recruitment and manning agencies to submit monitoring reports on their overseas-deployed workers.

In POEA Advisory No. 62, the agency said the new deadline is now June 20. The advisory applies to Philippine Recruitment Agencies (PRAs) and Licensed Manning Agencies (LMAs), which must report to the Overseas Filipino Worker (OFW) Welfare Monitoring System (OWMS).

“In view of the continuous requests received from the PRAs, LMAs, and industry organizations and associations, the deadline to create and/or update the welfare records in the OWMS of all OFWs onsite (workers) and seafarers onboard is hereby further extended until 20 June 2021,” according to the advisory.

The first deadline extension lapsed on April 30. The original deadline was March 31.

Submission of OFW welfare monitoring reports is required under the Migrant Workers and Overseas Filipinos Act of 1995.
The POEA said failure to submit the reports will trigger possible administrative sanctions. — Gillian M. Cortez

Employee experience a top priority

“Loyal employees in any company create loyal customers, who in turn create happy shareholders”

— Richard Branson,
founder of the Virgin Group

WORK-from-home (WFH) arrangements have truly transformed how employees got through their day-to-day tasks. This is supported by countless of anecdotes about the challenges faced by employees as well as their managers, such as employee on-boarding, talent development, coaching, and collaboration on projects.

In fact, there has been mixed findings on the impact of WFH on worker productivity. For instance, a University of Chicago survey of individuals indicates that most respondents who have adopted home working practices reported higher productivity than their expectation before the start of the pandemic; while another study in Japan showed that the productivity of employees adopting the home working arrangement during the COVID-19 pandemic is, on average, 30–40% lower than that in the office. Another study in the US among small and medium-sized firms reported a decrease in productivity of about 20% on average, as revealed in a paper by the National Bureau of Economic Research (NBER).

Customer experience likewise suffered because of WFH. I’m almost certain that readers of this article have experienced a breakdown of customer service from their supplier, who reason that most of their staff are working from home, bogged down by poor internet connection and distracting home environment.

Even most employees now do not like their WFH experience. What was initially thought by many as a dream job of working from home in one’s pyjamas has not turned into something dislikeable. More than half of the respondents in a survey conducted by Martec Group in the US said that they “dislike” working from home.

No wonder why 92% of human resource leaders in the US set employee experience as top priority in 2021 according to recent survey held by isolved and published in Forbes.  Employee experience is the employee’s perceptions about his or her journey through all the touchpoints at a particular company, from hiring, onboarding, engaging, performing, rewarding, developing, to departing.

A Gallup research shows that the employee experience matters because all of the individual moments of an employee’s experience play a role in how a worker feels about an employer’s purpose, brand and culture, which directly affect employee engagement, retention, and performance. Hence, it is directly linked to customer experience — happy employees equal happy customers.

So how can we make employee experience a “happy” one? Technology and people managers play key roles here.

Using collaboration tools, videoconferencing platforms, and employee engagement apps can do wonders, if properly deployed and used in companies. A reliable internet connection is a must to ensure uninterrupted and seamless communication among colleagues and to customers. Increasingly, small and medium businesses in the Philippines scores the lowest in Asia Pacific for WFH preparedness, according to a recent IDC study, citing “reliable network connectivity as a concern when supporting remote working.”

Another important factor in ensuring satisfactory employee experience are the people managers themselves. They need to acquire skills on how to effectively manage remote workers. They need to effectively plan for virtual meetings and catch-up sessions with employees, maintain effective lines of communications, and learn new techniques to measure performance. Virtual coaching skills is a key competency that managers need to develop in order to hep their employees through the stress of working from home.

Employee experience, indeed, should be a top priority of organizations, alongside customer experience in this time of WFH arrangements. While countries and organization race to have their citizens and employees vaccinated in order to return to work in the office setting, WFH will be a permanent set-up for a lot of jobs. Therefore, companies need to constantly revisit their employee experience.

It pays to have happy employees.

 

Reynaldo C. Lugtu, Jr. is CEO of Hungry Workhorse Consulting, a digital and culture transformation consulting firm. He is the Chairman of the Information and Communications Technology Committee of the Financial executives Institute of the Philippines (FINEX). He is Fellow at the US-based Institute for Digital Transformation. He teaches strategic management in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

Ginebra San Miguel’s profits soar 120% due to advertising campaigns

GINEBRA San Miguel, Inc. (GSMI) on Thursday said it posted a 120% increase in net income to P1.04 billion in the January-to-March period, compared with last year’s P474 million as advertising campaigns helped the company’s sales volume grow.

“Our continuous efforts to invest in strengthening Ginebra San Miguel’s brand equity, and build a deeper connection with consumers, carried us through these uncertain times,” GSMI President Ramon S. Ang said in a statement.

The company focused on sustaining the brand equity of Ginebra San Miguel, Vino Kulafu, and even put GSM Blue in the limelight.

It added that its flagship advertising campaign titled “Bagong Tapang sa One Ginebra Nation” helped volumes improve by a record 29% from last year.

Sales grew 52% year on year to P11.34 billion.

The company produces gin Ginebra San Miguel and distilled spirits, which include GSM Blue Light Gin and GSM Blue in Mojito, Margarita and Gin Pomelo, Ginebra San Miguel Premium Gin, Antonov Vodka, Don Enrique Mixkila, Anejo Gold Rum, Primera Light Brandy, and Chinese wine Vino Kulafu.

The spirits segment of San Miguel Food and Beverage, Inc. said its operating income also soared by 88% year on year to P1.3 billion.

“Complementing our strategy of leveraging on the strength of our brands, was a well-coordinated, quick return-to-trade strategy, upon the easing of ECQ (enhanced community quarantine) and implementation of general community quarantine,” Mr. Ang said.

The company saw a 65% profit increase in 2020 to a record P2.76 billion, while consolidated revenues went up by 25% to P36.2 billion despite liquor bans amid the quarantine.

“We also made our products more accessible to more consumers, with deliberate efforts to expand our distribution coverage in high-potential areas, even as restriction measures varied across the country,” Mr. Ang said.

GSMI produced 70% ethyl alcohol which it distributed to health facilities and government units for free during the early months of the pandemic. It was able to produce 1.3 million liters of San Miguel Ethyl Alcohol by the end of 2020, delivered to nearly 3,700 entities across the country.

Shares of GSMI went up by 3.7% or P2.7 on Thursday to close at P75.60 each. — Keren Concepcion G. Valmonte

Stuff to Do (05/28/21)

Federico Alcuaz Unveiled — ARTSPACES.KUNSTMATRIX.COM

Gallery relaunches with Alcuaz exhibit

ART LOUNGE Manila is relaunching in its new space at The Podium with the exhibit “Federico Alcuaz Unveiled: Select Works from the Alcuaz Family Collection.” In celebration of what would have been the National Artist for Visual Art’s 89th birthday, the Alcuaz family jointly presents the exhibition which features works representing almost all the decades of his artistic career. The exhibit runs until June 6, and can also be viewed online at  https://artspaces.kunstmatrix.com/en/exhibition/6560031/federico-aguilar-alcuaz-u-n-v-e-i-l-e-d. It is co-presented with the National Commission for Culture and the Arts. Art Lounge Manila is located at the Podium, Ortigas Center, Mandaluyong City. For inquiries and viewing appointment, send a message to 0977 -8398971, or 0998-9937968, or send an e-mail to artloungemanila@gmail.com. For more details visit https://artloungemanila.com.   

Book talk tackles Pilar Méndez’ Los mares de la canela

INSTITUTO Cervantes de Manila has been organizing online seminars on various topics linked to the cultural relations between Spain and the Philippines, including a series of talks dedicated to contemporary Spanish authors who have written novels featuring the Philippines. The series of literary talks resumes with the book presentation of Pilar Méndez’s Los mares de la canela on May 29, 6 p.m. The novel’s setting moves between the Spanish region of Galicia, the island of Kulangsu in China, and the city of Vigan in the Philippines. This is the first novel published by Pilar Méndez Jiménez, a career diplomat who is currently the Spanish Ambassador in Vietnam. In this book presentation, she will be interviewed by the Director of Instituto Cervantes de Manila, Javier Galván. To attend, the following link will be available 15 minutes before the event: https://zoom.us/j/96691945094.

Estancia mall to hold four-day sale

ENJOY an end-of-month shopping spree at Estancia’s upcoming four-day sale from May 28 to 31.  Participating brands include Avocadoria, Barenaked Sugaring Salon, Buffalo Wild Wings, Fino Leatherware, GNC, Happy Lemon, James & Daughters, Jipan Café & Bakeshop, Johnson Fitness, Lock & Lock, Luna Jewelry by Drake Dustin, Motorino Pizzeria, Motostyle, Naughty Nachos, Onezo Tapioca, Pancake House, Pet Express, Shadows & Patterns, Sigekiya Ramen, Skin Station, Toys R Us, and Uniqlo. For more information, visit Estancia’s official Facebook page.

UNIQLO holds 9th anniversary sale

UNIQLO opened its first retail location in the Philippines in June 2012 at the SM Mall of Asia. Since then, the Japanese retailer has expanded its presence in the country to 65 stores nationwide. To celebrate this occasion, UNIQLO will reward its customers with novelty items and exclusive offers. For every purchase worth P3,000 from any UNIQLO store and online, customers will get one free gray AIRism Mask pack. They are available from small to large sizes at physical stores and medium at its online store. Customers must have their UNIQLO App Membership ID scanned at the store to claim it. The promo is valid from May 28 to May 30. Selected items will be on sale. For a minimum purchase of P2,500 at the UNIQLO Manila Global Flagship Store at Glorietta 5, customers will receive one stamp card with rewards from partner merchants. Each card entitles customers to a free one-week trial pass at Anytime Fitness and a waived joining fee if they enroll at the Glorietta 5 branch, a buy-1-take-1 promo of Cold White Brew at Bo’s Coffee, and P200 off for the Fully Booked discount card. The promo is valid at branches located in Glorietta Mall. Once customers fill their stamp cards completely, they are qualified to receive an exclusive UNIQLO Manila tote bag. They must show their stamp card and the UNIQLO receipt when redeeming at partner merchants. Customers will receive their tote bag upon presenting the completed stamp card from May 28 to Aug. 3 at the Flagship Store. For more updates, visit UNIQLO Philippines’ website at uniqlo.com/ph and download the UNIQLO App via Google Play Store or Apple Store.

PINTIG, A Percussion Festival online

THE CULTURAL Center of the Philippines (CCP) and the Percussive Arts Society Philippines present PINTIG, A Percussion Festival, which will be held online from May 28 to 30. Percussionists and drummers from around the world will come together for a music festival that highlights percussion and drum instruments. Performances are scheduled at 7:30 p.m. nightly during the three-day festival. These will be streamed via the CCP Office of the President Facebook Page (http://facebook.com/ccp.officeofthepresident).

Improving an appraisal system without creating resentment

I was pirated from a business process outsourcing company (BPO) to head the human resource (HR) department of a medium-sized factory. During my first two months, I encountered policies and practices that I found unnecessary and unproductive. Top of my list is the perfect attendance award and the 15-minute grace period before the workers are recorded as tardy. May I have your insights on this? — Blue Whale.

A parish received a small gift box, which included a card that read: “Enclosed you will find a check for $5,000 to be used as a memorial for….”

The person who sent it forgot to sign the note and to enclose the check. There were no further details except for one clue. The card had a gold tint on the back with the words “Published by the Alzheimer’s Foundation.”

We often forget about important, basic things, like the rationale behind the policies you mentioned. It could be industry practice or a well-entrenched tradition observed by management since the company was established. The best approach, therefore is to rediscover and to understand why these policies are in place.

This isn’t difficult. All you have to do is to talk to the old-timers and dig deeper by looking at the records, if any.

Don’t rock the boat yet. Study it very carefully before changing anything. A long-time practice, in place say for five years, could be difficult to change unless you find a convincing legal reason to overturn it. Much also depends on whether a union negotiated those rules in collective bargaining.

APPRAISAL SYSTEM
Instead of focusing your attention on these entrenched policies, the best that you can do is review the performance appraisal system. Make it robust and objective. Establish your priorities. Take your cue from top management, but announce your intent to review the current system to make it easier and more practical for everyone to use.

The performance evaluation system is often viewed as an exercise in futility, not only by line supervisors and management but workers as well. Most supervisor would have difficulty summarizing a worker’s performance over a year into a series of check marks and brief sentences.

Most Filipino line leaders would prefer to give average ratings to avoid making unpopular decisions. The net result is that these supervisors don’t like employee reviews.

As soon as you got the go-signal from top management to review the appraisal system, focus on those issues that could give you instant success. The items that follow will help you do that towards attaining the maximum benefit for HR and the whole organization:

One, change the frequency of appraisals from one year to quarterly. Instead of waiting a year to evaluate the workers’ performance, make it a quarterly routine. As soon as they become comfortable with the increased frequency, make it a monthly event. This will be the cue for everyone to stay on their toes.

Two, use technology to monitor daily performance. There’s a lot of new software that can help management track worker performance, sometimes almost in real time. Accurate data can give the system an air of objectivity and eliminate the need for leaders to manually intervene.

Last, improve the format or the assessment form. If you don’t have a technology budget and must remain with a manual appraisal set-up, the next best thing is to improve the evaluation form. Many of these are poorly designed and contribute a great deal to the stress experienced by executives that use them.

GROUP DISCUSSIONS
I know how a newcomer feels in these situations. You want to make your presence felt, but while ruffling the fewest feathers possible. Focus on the low-hanging fruit. There are things that can be easily changed without generating resentment from those who might be adversely affected. To soften any impact of the changes you are planning, consult all department managers and note their concerns.

Conduct an informal survey among your colleagues. Schedule a focus group discussion facilitated by an external consultant. This is imperative to avoid having the results being tainted by office politics. Don’t forget to take into consideration the personality of each department manager, any one of which could make it difficult for you to do your job. You may also want to anticipate all possible issues that may arise from staff.

Discuss the result with your CEO and agree on your proposed solutions. Take the time to do the job right. This is something that should not be rushed. If and when you obtain buy-in from the department managers, the next thing to focus on is an employee morale survey, which can be done every two years.

Bringing all workers and their line leaders to their full potential doesn’t end with a formal evaluation process. In general, the extent of your contribution will depend much on how you successfully reconcile the interests of labor and management while promoting the principle of meritocracy across the organization.

 

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

MORE sees ‘unimpeded’ power delivery in Iloilo after Supreme Court ruling

RAZON-LED MORE Electric and Power Corp. said the Supreme Court’s decision upholding its authority to distribute electricity in Iloilo City would make its work “unimpeded” in the area.

“This decision is very much welcome so we could concentrate on the operations of MORE Power in delivering the best services to the consumers of Iloilo City. It gives us the assurance that what we are doing here in Iloilo City will be unimpeded as far as the constitutionality issue is concerned,” MORE President and Chief Operating Officer Roel Z. Castro told BusinessWorld in a text message on Thursday.

He added that the firm was “very happy” that the court affirmed its previous decision declaring that two provisions of Republic Act No. 11212 or the law granting MORE a franchise to operate a power distribution system in Iloilo are within the bounds of the law.

Section 10 of R.A. 11212 allows MORE to exercise the power of eminent domain as needed for the “efficient establishment, improvement, and maintenance of its services and acquire private property.”

Section 17 authorizes Panay Electric Co., Inc. (PECO) to operate the existing distribution system in its franchise until MORE completes its own distribution system within two years.

In an 18-page document posted on its website this week, the Supreme Court said that it had no reason to change its September 2020 ruling, which upheld the validity of provisions of the law for MORE to take over power distribution assets in Iloilo City.

“After a careful review of the arguments raised by PECO, the Court finds no reason to depart from its Decision dated September 15, 2020,” the court said in a decision shared on May 25.

The court said PECO, which has been the electric provider of Iloilo for more than 90 years but whose legislative franchise expired in January 2019, asked the court to take a second look at the legal implications of its earlier decision.

“In its motion for reconsideration, PECO faults the Court in allowing the expropriation of its distribution system for the same public purpose it was already devoted to. While PECO concedes that its previous legislative franchise allows expropriation of its assets and distribution system upon the termination of its franchise, it also asserts that this power may be exercised only by the government and its political subdivisions, and not by private entities such as MORE,” the decision read.

PECO’s argument did not convince the court.

“The exercise of the right to expropriate given to MORE under its franchise is a delegated authority granted by Congress. The restrictive view that expropriation may be exercised by the State alone, without any consideration for the State’s authority to delegate its powers, cannot be upheld,” the High Court said.

MORE, led by businessman Enrique K. Razon, Jr., was granted a 25-year franchise in February 2019 to provide power to Iloilo City, replacing PECO.

BusinessWorld reached out to PECO, which has not yet replied as of press time. — Angelica Y. Yang

How PSEi member stocks performed — May 27, 2021

Here’s a quick glance at how PSEi stocks fared on Thursday, May 27, 2021.

Manila among the cheapest cities for construction

Manila among the cheapest cities for construction

Stocks rally on stimulus hopes, MSCI rebalancing

PHILIPPINE shares rallied for a third straight day on Thursday as the possibility of the government approving another round of stimulus and the MSCI rebalancing boosted market sentiment.

The 30-member Philippine Stock Exchange index (PSEi) gained 323.90 points or 5.1% to close at 6,665.14 on Thursday, while the all shares index also went up by 135.53 points or 3.47% to finish at 4,034.92.

“The local market rallied this Thursday… on the back of optimism towards more fiscal stimulus for the Philippine economy,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The House of Representatives approved the second reading House Bill 9411 or the Bayanihan to Arise as One Bill, it is due for third and final reading next week.

“The bill, if passed into law and implemented, is seen to boost aggregate spending which in turn would help in the economic recovery,” Mr. Tantiangco added.

Meanwhile, the rebalancing of the MSCI index also improved market sentiment.

“The index continued its hot streak with the effect of the MSCI rebalancing taking place and window dressing coming into full swing, while sentiment overseas was swayed as investors focused on retailers, travel, and leisure companies,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message.

“This is the reversal that we have been waiting for and prices may continue higher as more investors gain confidence,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

All sectoral indices closed higher on Thursday. Holding firms climbed 485.55 points or 7.65% to finish at 6,829.81; property increased by 187.24 points or 6.13% to 3,239.24; industrials gained 322.47 points or 3.74% to end at 8,923.89; financials went up by 10.92 points or 0.78% to 1,405.48; mining and oil improved by 62.25 points or 0.66% to close at 9,394.89; and services inched up by 3.47 points or 0.23% to 1,482.18.

Value turnover nearly doubled to P23.81 billion with 2.29 billion shares switching hands on Thursday from the P13.09 billion with 1.26 billion issues traded on Wednesday.

Advancers trumped decliners, 145 versus 60, while 39 names closed unchanged.

Net foreign selling fell to P889.04 million on Thursday from the P6.48 billion in net outflows logged on Wednesday.

Philstocks Financial’s Mr. Tantiangco said he expects the index to move sideways on Friday as the market’s recent rally may cause investors to pocket some of their gains.

“This makes it susceptible to profit taking which we may see [on Friday,]” Mr. Tantiangco said. “Still, prospects of more fiscal stimulus amid the developments with the Bayanihan III Bill may help sustain positive sentiment.” — Keren Concepcion G. Valmonte

Peso strengthens vs dollar as third stimulus bill nears approval

BW FILE PHOTO

THE PESO strengthened against the greenback on Thursday after the House of Representatives approved on second reading a third economic stimulus package as the country continues to grapple with the impact of the coronavirus pandemic.

The local unit closed at P47.985 versus the dollar on Thursday, rising by 16.5 centavos from Wednesday’s finish of P48.15, data from the Bankers Association of the Philippines’ website showed.

The peso opened Thursday’s session weaker at P48.18 against the dollar. It dropped to as low as P48.19 during the day but recouped losses to close nearer to its intraday high of P47.977 versus the greenback.

Dollars traded went up $1.089 billion on Thursday from the $746.88 million seen on Wednesday.

“The peso…appreciated after the recent progress at the House of Representatives, where Bayanihan III nears its final approval as it moves onto the [third] reading,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a text message.

The House of Representatives on Tuesday evening approved on second reading the proposed P401-billion economic stimulus measure, which seeks to drive recovery with additional support for pandemic-hit businesses and families.

Since it is not certified by Malacañang as urgent, Bayanihan III can only be approved on third and final reading next week.

The peso also rose amid recent fundraising activities at the local stock market that attracted foreign inflows, Mr. Ricafort added.

Meanwhile, a trader said peso appreciated amid market expectations of looser quarantine restrictions in June.

For Friday, the trader said the local unit might weaken versus the dollar on expectations of an upbeat US initial jobless claims report that was due for release overnight.

The trader expects the peso to move between P47.90 and P48.10 versus the dollar, while RCBC’s Mr. Ricafort gave a forecast range of P47.90 to P48.05. — IBC

Power spot market prices double in May as warm weather sets in

THE AVERAGE power price on the wholesale electricity spot market (WESM) more than doubled this month to average P7.72 per kilowatt hour (kWh) from P3.85 in April, following a surge in demand and supply disruptions, the Independent Electricity Market Operator of the Philippines (IEMOP) said Thursday.

“For the month of May, the market operator noted an increasing demand trend as warmer temperature prevailed throughout the country. As the dry season (progresses), average demand increased from 10,120 MW (megawatts) from the previous month to 11,091 MW in May,” the IEMOP said in a statement Thursday.

The rise in demand was accompanied by lower supply due to generator outages.

IEMOP Chief Operating Officer Robinson P. Descanzo called this month’s average “significantly high.” The next-highest monthly price average was recorded in March at P4.16 per kWh.

“Given the sustained high prices, the secondary price cap was imposed on May 7 and May 20 to 22. The secondary price cap is a price-mitigating mechanism designed to limit the persistent high market prices,” the IEMOP said in a statement.

On Thursday, the market operator also delivered an update to market participants, laying down the protocols on limited live dispatch operations (LLDO) for the three major island grids, which will come into force on May 29.

“The conduct of the LLDO is the final step prior to the commercial operations of WESM Mindanao and EWDO (enhanced WESM design and operations) on June 26. This effort is also in line with the Market Operator’s pursuit to provide sustainable market solutions and services to its stakeholders and participants,” it said.

The proposed changes to the WESM operations include reducing the time between scheduling and dispatch of power, and implementing automatic pricing corrections, among others. — Angelica Y. Yang

BSP wary of inflation impact of oil prices

PIXABAY

THE Bangko Sentral ng Pilipinas (BSP) said it is monitoring the markets for any possible second-round effects resulting from rising oil prices, particularly their impact on inflation, though it called such an eventuality unlikely in the near term.

The Monetary Board of the central bank has taken into account the effect of higher oil prices in its latest inflation forecast for the year but will remain vigilant should any monetary response be needed, BSP Governor Benjamin E. Diokno said in a briefing Thursday.

“Rising oil prices as global demand recovers will require more vigilance from monetary authorities. In the Philippines, underlying price pressures remain subdued given the prevailing slack in the domestic economy. However, the BSP remains on the lookout for possible second-round effects,” he said.

While central banks have been anticipating the increase in oil prices as global demand picks up while supply remains tight, Mr. Diokno cautioned that the impact may become “more persistent” and cause second-round effects on oil-importing countries like the Philippines.

Headline inflation was unchanged at 4.5% in April after the rate of increase in food prices slowed.

Any increase in crude prices oil could affect goods and services in the Philippines through transport costs and other energy-related items in the consumer price index (CPI), according to Mr. Diokno.

Tricycles and pedicab fare hikes have been driving inflation recently in the shortage of other transport options during the pandemic.

“(An) example of higher oil prices’ second-round effects could be demand for higher transport costs, which I don’t think is likely to happen (given) the slack in the economy,” Mr. Diokno said.

Transport prices grew 17.6% year on year in April and accounted for 1.4 percentage points of headline inflation that month.

Energy-related CPI, which includes transport fares and fuel products, accounted for 8.3% of the CPI number with all its components more than doubling last month against March levels, after the Dubai crude benchmark hit $62.32 per barrel in April, doubling its year-earlier level.

The economic team projects Dubai crude, a benchmark for oil transported to Asia, to trade between $50-70 per barrel in 2021-2024.

Despite the risk from oil, BSP Monetary Policy Sub-Sector Officer-In-Charge Dennis D. Lapid said near-term inflation is still expected to remain in line with the central bank’s projection of a 3.9% average CPI this year and 3% next year.

“(Based on our) simulations of different levels of world oil prices… even with further increases in oil prices, headline inflation will still decelerate within the target going into next year,” he said.

Mr. Lapid said muted domestic demand could temper possible second-round effects of stronger oil prices.

The central bank aims to keep inflation within 2-4% each year until 2024. — Beatrice M. Laforga

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