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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

Profile of Power Plants in the Luzon Grid (As of Dec. 31, 2020)

Profile of Power Plants in the Luzon Grid (As of Dec. 31, 2020)

How PSEi member stocks performed — June 10, 2021

Here’s a quick glance at how PSEi stocks fared on Thursday, June 10, 2021.


Peso weakens vs dollar ahead of US inflation

BW FILE PHOTO

THE PESO weakened versus the greenback for a third straight day on Thursday on safe haven demand as the market awaits the release of US inflation data, which could dictate the pace of the Federal Reserve’s tapering.

The local unit closed at P47.765 per dollar on Thursday, shedding 3.4 centavos from its P47.731 finish the day prior, data from the Bankers Association of the Philippines’ website showed.

The peso opened Thursday’s session at P47.72 versus the dollar. Its weakest showing was at P47.777 while its peak for the session was at P47.68 against the greenback.

Dollars traded inched up to $680.2 million on Thursday from the $675 million seen on Wednesday.

The peso retreated versus the greenback ahead of the release of latest US inflation data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said on Thursday.

Meanwhile, a trader attributed the peso’s weakness to risk-off sentiment due to the risk of taper tantrum as the Fed looks to wind down its asset purchases.

The US Labor department was due to report May inflation data overnight. In April, US inflation stood at 0.8%, which was its quickest pace since June 2009.

Economists said the data will likely show the consumer price index (CPI) increased 0.4% last month after surging 0.8% in April, which was the largest gain since June 2009, Reuters reported.

In the 12 months through May, the CPI is forecast accelerating 4.7%. That would be the biggest year-on-year increase since September 2008 and follow a 4.2% rise in April. The anticipated jump will partly reflect the dropping of last spring’s weak readings from the calculation. These so-called base effects are expected to level off in June.

Inflation could also get a boost from employers raising wages as they compete for scarce workers, despite employment being still 7.6 million jobs below its peak in February 2020. There are a record 9.3 million unfilled jobs.

Federal Reserve Chair Jerome Powell has repeatedly stated that higher inflation will be transitory. The US central bank slashed its benchmark overnight interest rate to near zero last year and is pumping money into the economy through monthly bond purchases.

The Fed has signaled it could tolerate higher inflation for some time to offset years in which inflation was lodged below its 2% target, a flexible average. Its preferred inflation measure, the personal consumption expenditures price index, excluding the volatile food and energy components, increased 3.1% in April, the biggest rise since July 1992.

For Thursday, Mr. Ricafort gave a forecast range of P47.70 to P47.80 per dollar, while the trader expects the local unit to move within the P47.65 to P47.80 band. — with Reuters

PSEi drops on profit taking after market’s rally

PHILIPPINE shares declined on Thursday as the market corrected and as investors pocketed their profits following a two-day rally.

The bellwether Philippine Stock Exchange index (PSEi) went down by 26.83 points or 0.38% to close at 6,875.71 on Thursday, while the broader all shares index shed 5.85 points or 0.14% to finish at 4,154.36.

“Market went on profit taking today after it moved substantially up in the last two days of trading,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message on Thursday. “This is considered a healthy correction.”

“The market was unable to sustain its position at the 6,900 level, showing this to be a strong resistance so far,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Meanwhile, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said profit taking was expected as the week is about to end.

“The general sentiment continues to turn more optimistic as new COVID-19 (coronavirus disease 2019) cases begin to decline again after we saw higher cases in the last two weeks,” Mr. Mangun said in an e-mail. “The continuous progress in the rollout of vaccines also added to the optimism.”

The Health department reported 7,485 new infections on Thursday, bringing the country’s case tally to 1,293,687. Active cases stand at 56,921.

The country on Thursday received one million doses of the CoronaVac vaccine, which was made by China-based Sinovac Biotech Ltd. It was also expecting around 2.2 million doses of the Pfizer, Inc. and BioNTech SA vaccine.

Majority of sectoral indices closed in the red except for services, which rose by 6.54 points or 0.42% to 1,540.17; and industrials, which gained 10.02 points or 0.1% to end at 9,251.30.

Meanwhile, mining and oil shaved off 82.62 points or 0.86% to end at 9,471.34; property lost 29.33 points or 0.85% to 3,418.77; financials went down by 9.56 points or 0.65% to close at 1,456.43; and holding firms declined by 27.05 points or 0.38% to 6,917.86.

Value turnover went down to P7.40 billion with 3.06 billion issues traded on Thursday, from the P7.58 billion with 2.02 billion shares that changed hands the previous day.

Decliners outnumbered advancers, 118 versus 97, while 47 names closed unchanged.

Foreigners turned sellers anew on Thursday, logging P2.67 million in net outflows versus the P1.09 billion in net purchases seen on Wednesday.

Diversified Securities’ Mr. Pangan said he expects profit taking to continue on Friday and placed the PSEi’s support at 6,840.

Meanwhile, AAA Southeast Equities’ Mr. Mangun said the 30-member index may still close the week with some gains.

“There is stronger conviction now that the economy is on a better path to recovery than six months ago as we are seeing gains in almost all industries,” he said. — K.C.G. Valmonte

WB worried LGUs unable to spend Mandanas funds

THE World Bank (WB) has expressed concerns about the capacity of local government units (LGUs) to spend their expanded budgets following the implementation of a Supreme Court (SC) ruling that expanded their share of the National Government’s revenue.

World Bank Economist Kevin Cruz said funds left unspent by LGUs could increase by up to P155 billion next year, equivalent to 0.7% of gross domestic product, if their project implementation capabilities are not upgraded.

“Our analysis shows that the significant expansion of LGU budgets in 2022 may result in greater underspending, unless the ability of LGUs to effectively spend the additional resources improves,” Mr. Cruz said in an online forum Thursday.

“In the midst of the country’s worst social, economic and health crisis, unspent budgets are wasted opportunities to bring crucial services to communities that need it most,” he added.

The SC’s Mandanas ruling is so called because of Batangas Governor and former Representative Hermilando I. Mandanas’s successful challenge of the government’s previous position that LGUs were entitled to a smaller share of National Government funds. The government responded to the ruling by devolving more functions to LGUs starting next year, to compensate for the lost revenue, which will now go towards the LGUs’ internal revenue allotments (IRA).

IRAs could grow 55% to 1.08 trillion in 2022, according to World Bank estimates.

Mr. Cruz said LGUs with bigger budgets may also struggle to implement the expanded projects they will be inheriting, citing their history of low budget execution rates.

“All LGUs faced difficulty in implementing capital outlay or investment projects. In particular, nearly half of the annual budget for investment projects is not spent. As a result, LGUs that allocate a greater share of their budgets for investment projects typically have a larger amount of underspent budgets,” he added.

Increasing the budget for capital outlays by 15 percentage points (ppts) will result in a decline in LGU budget execution of 15 ppts for provinces and cities and 24 ppts for municipalities, he said.

Mr. Cruz said poor budget usage may be due to limited implementation capacity, weak planning, underdeveloped competencies in public financial management, shortage of human resources and process bottlenecks in processes, such as in procurement.

Meanwhile, inequality of fiscal allocations among LGUs will likely persist despite the increased budgets, he said, because the Mandanas ruling does not address the distribution formula between rich and poor LGUs.

He said the proposed Growth Equity Fund, which pools resources to provide financial aid to poorer and disadvantaged LGUs, can help address inequality.

“The National Government should pursue the equalization fund until this handicapped municipalities flourish in terms of development. But there is a caveat here: there should be mechanism to monitor programs in real time to actualize accountability,” said Cynthia Falcotelo Fortes, secretary general at League of Municipalities of the Philippines and also the mayor of Barcelona, Sorsogon, speaking at the same forum.

To ensure a smooth transition next year, the World Bank’s Mr. Cruz said LGUs should focus on funding programs and projects that are ready for implementation.

It is also crucial that the National Government and LGUs define roles and communicate clearly on the devolution.

“In the long term, the government may consider amendments to the Local Government Code. This includes strengthening the ability of LGUs to generate revenue and clarifying the assignment of service delivery responsibilities among the different levels of government to avoid overlaps,” he added.

The Department of the Interior and Local Government’s director for local government development, Anna Liza F. Bonagua, said the department expects LGUs to be more “progressive, self-reliant, transparent, (and) accountable” next year while delivering programs effectively.

Ms. Bonagua said the guidance and continued support of the National Government to LGUs will also play a key role in the effective implementation of the Mandanas ruling. — Beatrice M. Laforga

DTI seeking more funds for small business loans

THE TRADE department is seeking additional funding for small business loans, saying that it expects to commit P5 billion to finance such companies by the end of June.

The program for businesses affected by the economic downturn caused by the coronavirus disease 2019 (COVID-19) has tallied P4.5 billion worth of loans for 30,408 applicants, the Department of Trade and Industry (DTI) said in a statement Thursday.

“In view of this, there is a need to replenish this fund if we are to lend out to more MSMEs (micro-, small-, and medium-sized enterprises) affected by the pandemic,” Trade Secretary Ramon M. Lopez said.

The COVID-19 Assistance to Restart Enterprises (CARES) program of the Small Business Corp. draws P1 billion from the 2021 General Appropriations Act and P4 billion from Bayanihan II, or the Bayanihan to Recover as One Act.

Expecting these funds to be fully committed by the end of this month, Mr. Lopez said it “will be requiring replenishment as the country continues to rebuild economically from the ongoing worldwide pandemic.”

He said small businesses should continue to apply for such loans.

“With this microfinancing program providing collateral-free and interest-free loans to businesses affected by the pandemic, our MSMEs can begin to rebuild their respective businesses and take part in the recovery that has started around the world,” he said. 

Another P6 billion in loans reserved for tourism businesses are still being issued. The DTI is working with the Tourism department to promote the program.

“The two agencies expect an acceleration in the utilization of CARES for travel as more tourism economic activities are starting to reopen with the easing of community quarantine restrictions,” the DTI said.

Tourism businesses have been reluctant to apply for the loans, the Tourism Congress of the Philippines said in January. The DTI earlier this year said fewer small businesses had been applying for the loan program due to low business confidence. — Jenina P. Ibañez

NGCP: Power bills to rise if DoE enforces rules on full reserves

WHATWOLF-FREEPIK

THE contracting of ancillary services (AS) will not solve the issue of low power supply, the National Grid Corp. of the Philippines (NGCP) said Thursday, and warned that consumers will see “astronomical” increases in their electricity bills if the company follows the energy department’s proposal to take out reserve contracts that fully cover expected demand.

Earlier Thursday, Energy Secretary Alfonso G. Cusi said that the lack of adequate cover via contract reserves have worsened the power situation over the past few weeks. The NGCP placed the Luzon grid on red alert for three consecutive days in late May and early June, as rotating outages hit portions of the island.

“The red alerts experienced on May 31 and June 1 were due to generation deficiency since several power plants went on forced or unplanned outages while others were running on de-rated capacities. AS contracting will not solve this supply problem, new power plants will,” NGCP President and Chief Executive Officer Anthony L. Almeda said during a public hearing on the power situation Thursday.

Mr. Almeda said AS, which come in the form of regulating, contingency and dispatchable reserves, are “only there to address fluctuations in the grid.”

“It is not meant to run as baseload power or augment the lack of supply… AS is not extra energy, nor is it replacement power for power plants that go down. If power supply is not enough to meet the needs of the consumers, how can there still be power for AS?” he said.

He also claimed that the entity has become the “whipping boy for the power shortage issue to protect vested interests within the industry.”

“NGCP has constantly been bullied not just over the past couple of days, but in the past years — being used as the scapegoat; the easy target to blame for the issue. We were blamed for not contracting enough AS, as if it were the solution to the problem,” Mr. Almeda said.

NGCP Spokesperson Cynthia P. Alabanza has said that the company has contracted most of its reserves through a combination of firm and non-firm arrangements.

“With the exception of a contingency AS which is short by 11% (or 72 megawatts) of the required levels, NGCP has contracted more than enough capacity to meet its obligations,” she said.

Under a 2019 department circular which details the AS rules, the grid operator can only procure regulating, contingency and dispatchable reserves “through firm contracts.”

“This will not create additional supply. It will just change the pricing and charging framework,” Ms. Alabanza said, of the Department of Energy rule compelling the system operator to fully contract reserves.

Ms. Alabanza said that, if NGCP implements a 100% firm-contracted requirement for AS, power rates are expected to “astronomically rise,” according to the group’s initial calculations.

“There will be an increase equivalent to P0.64 per kilowatt hour (kWh) for Luzon, P0.54/kWh for Visayas, and P1.39/kWh for Mindanao. For a household consuming 200 kWh, this would mean an additional P128 in electric bills of consumers from Luzon, P108 for those in Visayas, and P278 for those in Mindanao,” she explained.

POWER PLANT OUTAGES
During the hearing, Mr. Cusi said that the rotating brownouts last week were mainly caused by power plants going on forced outage.

Nagkasabay sabay po ang pagkawala ng supply galing sa ilang malalaking planta. (The big plants went down at the same time). That is the ultimate cause, we are already investigating these power plants and we have asked the assistance of the Department of Justice, Philippine Competition Commission and the Energy Regulatory Commission to determine if there was collusion,” he said.

He said charges are forthcoming if collusion is found.

However, other factors which worsened the rotating brownouts included the de-rating of several plants which provided reduced output, and the absence of adequate reserves, he said.

“The lack of adequate contracted reserves further aggravated the situation. Dun po nagkaroon na (Because of these, there were) automatic load drops. The cause of these load drops is lack of ancillary reserves.”

According to Mr. Cusi, the department was in communication with the NGCP about the reserve situation in four years ago, but the lack of AS still remains to be “a major problem.”

“We are demanding that NGCP… comply with their concession agreement by contracting the required reserves. Compliance by NGCP… to ensure adequate ancillary services is mandatory and not optional. By not contracting the reserves, NGCP is enjoying benefits without accepting the burden required by its franchise,” Mr. Cusi said.

The department has flagged the system operator for its non-compliance with the reserve rules after noting its compliance as of the end of 2020.

Energy department estimates released in April indicate that the NGCP had contracted regulating, contingency, and dispatchable reserves of 237 megawatts (MW), 180 MW, and 145 MW, respectively, for the Luzon grid as of the fourth quarter of 2020.

The Luzon grid norms for regulating, contingency and dispatchable reserves are 491 MW, 647 MW, and 647 MW.  — Angelica Y. Yang

PHL meat imports rise 26.7% in first five months led by pork

MEAT IMPORTS in the first five months rose 26.7% year on year to 440,018.87 metric tons (MT), led by a sharp increase in pork shipments. 

According to the Bureau of Animal Industry (BAI), pork imports in the first five months rose 146.7% to 215,883.30 MT.

Buffalo imports rose 52.1% to 19,635.60 MT during the period.

Turkey imports rose 15.6% to 710.28 kilograms.

The BAI said chicken imports fell 23.3% to 136,822.39 MT in the five months to May.

Imports of mechanically deboned meat (MDM) from chicken, used in the production of processed meat products such as sausages and dimsum, fell 33.8% t0 71,836.20 MT.

Beef imports declined 0.4% to 66,678.76 MT, while duck imports fell 18.4% to 53.89 MT. Lamb imports dropped 71.9% to 236.66 MT.

Jesus C. Cham, Meat Importers and Traders Association president, said in a phone message that the imports reflect the severity of the pork shortage.

“Imports of pork belly and cuts increased much more than the by-products. This shows the stronger purchasing power of the middle class, although the lower classes seem to be consuming more than last year,” Mr. Cham said.  

The Philippine Statistics Authority estimates that the hog inventory as of April 1 was 9.55 million animals, 22.6% lower from a year earlier, due to the effects of the African Swine Fever (ASF) outbreak.

The government’s response was to bring in pork imports at lower tariffs.

On May 10, President Rodrigo R. Duterte signed Executive Order (EO) No. 133 that increased the minimum access volume (MAV) quota of pork imports to 254,210 MT, from the previous 54,210 MT, after the Department of Agriculture (DA) estimated a looming pork deficit of 388,790 MT.

MAV is the quota for farm commodities that can be imported at favorable tariffs under the World Trade Organization system.

Another initiative to augment pork supply was EO 134, signed by Mr. Duterte on May 15, which adjusted the tariff rates of pork imports for one year.

He lowered the tariff on pork imports within the MAV quota to 10% in the first three months and 15% over the subsequent nine months. Out-of-quota pork imports were to be charged 20% and 25% over the same periods.

Before the EO, the tariffs on pork within the MAV quota were 30%. Out-of-quota pork paid 40%.

Mr. Duterte also signed Proclamation No. 1143 that declared a state of calamity nationwide due to the effects of ASF.

Jerome D. Ong, Philippine Association of Meat Processors, Inc. vice-president, said in a statement that lower chicken imports, particularly MDM, were expected after the Philippines imposed restrictions on European sources such as the UK and Germany.

“Limited supply from the few remaining sources led to spiraling MDM prices, at levels 150-200% higher than last year’s,” Mr. Ong said.  

“We continue to appeal to the DA and the Bureau of Animal Industry to relax restrictions in accordance with World Organisation for Animal Health guidelines, so that trade may slowly normalize, and our sector can continue to provide steady supply of affordable meat protein to the masses,” he added.

Mr. Ong also said higher pork import volumes help meat processors manage their costs and minimize price adjustments.

“The ultimate victor here is the Filipino consumer who now has access to more affordable pork,” Mr. Ong said. — Revin Mikhael D. Ochave

Building permit approvals rise 1.4% in 1st quarter

BW FILE PHOTO

APPROVED building permit applications increased 1.4% from a year earlier in the first quarter to 33,627, signaling improvement in construction demand, according to preliminary data issued by the Philippine Statistics Authority.

The building projects covered by the permits were equivalent to 6.44 million square meters, valued at P80.02 billion. Floor size and value totals were down 23% and 12.1%, respectively, from a year earlier.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the decline in overall value and scope of building projects “may mean that potential (start of) momentum for the industry is still far off,” he said in an e-mail.

“But, the uptick in permits is a great sign going in the right direction,” he added.

Residential permits accounted for 69.5% of the total, with their number rising 6.2% to 23,364 during the period.

Single homes made up 89.4% of total residential construction, and accounted for 20,881 permits, up 6.3%.

Apartment/accessoria building project approvals rose 4.8% to 2,127, while approvals for duplexes and quadruplexes rose 24.9% to 321.

Residential condominium permits fell 44% to 14.

Meanwhile, non-residential construction starts declined 13.5% to 5,297 in the first three months.

Within this segment, commercial construction declined 12.1% to 3,570. This category accounted for 67.4% of non-residential construction during the period.

Institutional, industrial, and agricultural building permits also declined 19.3% (to 897), 19.3% (to 459), and 17.7% (to 209), respectively.

Bucking the trend was permit approvals for “other non-residential” buildings, which increased 25.6% to 162.

Applications to make additions to standing structures dropped 30.4% to 872, while alteration and repair permits rose 7.7% to 4,094.

Calabarzon — composed of Cavite, Laguna, Batangas, Rizal, and Quezon provinces — accounted for 21.7% of approved building permits in the first three months at 7,288. It was followed by the Ilocos Region (11.9% or 4,015) and Central Luzon (11.1% or 3,722).

“As the economy continues to reopen and as more vaccines come and people actually get the jab, the succeeding quarters for construction may continue to improve and we may see momentum gaining very soon,” Mr. Asuncion said. — Bernadette Therese M. Gadon

Eligibility rules eased for potential tractor suppliers

THE eligibility rules have been eased for prospective suppliers of four-wheel tractors to the farm mechanization program, with the Department of Agriculture (DA) requiring that they need to have been present in the market for 10 years instead of 25-30 previously.

Agriculture Secretary William D. Dar said he signed Memorandum Order No. 34 on May 12 which eased the “market presence” requirement for distributors or manufacturers.

“The policy democratizes the procurement process and makes the bidding more competitive,” Mr. Dar said in a statement Thursday.

“It avoids allegations of tailor-fitting the bidding process to favor a few suppliers. It also responds to complaints of prospective bidders as the 25-year to 30-year market presence requirement has (prevented) them from participating in the DA farm mechanization program,” he added.  

Various arms of the agriculture bureaucracy have not harmonized their market presence standards for procurement. The Philippine Center for Postharvest Development and Mechanization and the DA field offices in Regions 1, 3, and 6 require 30 years; the Sugar Regulatory Administration 25 years; and the DA field office in Region 2 10 years.  

The DA added that bidders for tractor contracts need to provide a minimum one-year warranty, meet Philippine National Standards and Philippine Agricultural and Biosystems Engineering Standards, provide after-sale services, conduct maintenance, and prove their products have no history of major breakdowns. — Revin Mikhael D. Ochave