Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 9794

Investors continue to take cues from PLDT earnings report

pldt_logo
By Marissa Mae M. Ramos
Researcher
INVESTORS continued to take positions on PLDT, Inc. stock last week following the release of the company’s annual earnings results early this month.
Data from the Philippine Stock Exchange showed a total of P1.045-billion worth of 924,855 PLDT shares exchanged hands on the trading floor from March 11 to March 15.
Shares of the telecommunications company closed on Friday at P1,161.00, up by 2.56% from the previous trading day. It was also up 8% from its closing price of P1,075 the previous week, and 2.74% year to date.
In an e-mail to BusinessWorld, COL Financial Group, Inc. research analyst Adrian Alexander N. Yu said PLDT’s share price “rose significantly” last week as the market continued to price in the “positive results” from the telco giant’s earnings report on March 7.
“PLDT disclosed its full-year 2018 results with several noteworthy details, which may have caused the spike in trading volume,” Mr. Yu said.
“PLDT disclosed that in light of the strong full-year results, the company increased its full-year 2019 core net income guidance… In addition, PLDT’s results also showed a turnaround in its wireless business driven by improvement in subscriber count and average revenue per user,” he added.
Timson Securities, Inc. equities trader Jervin S. de Celis also pointed to the company’s earnings disclosure that drove up PLDT’s stock price.
“[T]he surge in [PLDT’s income] in 2018 may have helped and urged investors to buy PLDT shares at a discount since the company’s operation is returning to profitability…,” he said in a separate e-mail.
In its latest unaudited financial statements, PLDT reported its attributable net income surged 40.47% to P18.92 billion in 2018 from P13.37 billion the previous year, as revenues rose 3% to P164.75 billion on stronger demand for data.
On the other hand, PLDT’s core income dropped 5% to P26.2 billion, as it accounted for the P3-billion loss in digital arm Voyager Innovations, Inc. Excluding Voyager, the company said telco core income is 3% higher at P24.4 billion in 2018.
Service revenues grew 5% to P149.4 billion, 60% of which came from data services that generated P90.2 billion, up 37% year on year.
By business segment, PLDT’s enterprise unit contributed P38.4 billion in revenues, 10% higher than the previous year. PLDT Home also added P36.4 billion or 10% more from 2017, and wireless segment P62.5 billion or up 7%.
The company also declared a record-high allocation of capital expenditures (capex) in 2019 at P78.4 billion, an increase of 34% or P20 billion from the P58 billion realized last year. The aggressive capital spending allows the telco giant to expand its network amid the impending entry of a new player.
For 2019, PLDT has set a telco core income guidance of P26 billion, up 6.6% from last year’s P24.4 billion. Dividend payout is set at 60% of the core income.
Timson Securities’ Mr. De Celis expects PLDT to experience a slight pullback this week adding the company may “found support at P1,015 [per share] and may struggle going beyond P1,200 [per share]”
“Since the company is shelling out more capex for 2019, it may affect the bottomline performance of the firm for this year because that means more expenses that can cut its profit as it competes against [Globe Telecom, Inc.] So, PLDT may trade between P1,015 [per share] to P1,385 [per share] in the medium term as we wait for fresh catalyst to lift the company’s stock price,” he said.
For COL Financial’s Mr. Yu, “the higher-than-expected capacity should not be too worrying for investors.”
“Although PLDT had a record high capex, it is important to note that out of the additional P20-billion capex, P16 billion will be variable in nature, which implies that the capex will only be spent when there is revenue that is expected to be generated, while the remaining P4 billion is one off in nature related to additional vehicles and equipment to improve network rollout,” Mr. Yu said.
Mr. Yu sees PLDT’s support to be around P1,070 — the price per share of the stock “when the company released its earnings” — but still cautioned of the headwinds that a new telco player might bring.
“[W]e expect the share price to be volatile as the stock responds to a bevy of news related to the entry or the continued delay of the entry of the third player,” he said.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Changing how people take meals on the go

PEOPLE who pack their food for work or leisure may want to check out Vaya Tyffyn lunchboxes, whose makers tout as the “first and last lunchbox one will ever need.”
Now available in the Philippines, Vaya Tyffyn lunchboxes are designed by a team of highly seasoned professionals across the globe with the goal of improving the way people take food on the go with products that are stylish, durable, and travel-friendly.
Vaya said its products are suited for the Philippines where the practice of bringing food along is still very prevalent.
The lunchboxes of Vaya allow one the option to pack a multi-course meal every day instead of the typical combination of rice and a main dish. They are available in 600ml (two containers), 1,000ml (three containers) and 1,300ml (four containers).
Vaya Tyffyn lunchboxes also have collapsible handles and proprietary Vacutherm Insulation technology that keeps food hot or cold for six hours.
Their sleek, stainless steel body easily fit in one’s bag with no worries of leaks as their lids are leak-resistant with integrated gaskets.
The lunchboxes have partitions that can carry more than one dish in each container, have heat-protective finger grips, replaceable copper-finished, polished-stainless steel containers, and stainless steel pressurizing latches.
Apart from the Philippines, Vaya is available in 15 other countries, including Australia, Canada, France, Germany, Hong Kong, India, Singapore, Thailand, Taiwan, United Kingdom and the United States.
The company said it intends to bring an emotional component in everyday life through the concept of total user experience: a combination of innovative, carefully designed, high-quality products, and smart, useful, friendly services.
Vaya Tyffyn lunchboxes are sold online at vayalife.com. — Michael Angelo S. Murillo

How a new generation of customers relies on experience to shape products and services

By Vincent Mariel Galang
Reporter
A consumer group whose members’ buying habits depend on what others have experienced is changing how businesses are providing products and services to their target market.
The emergence of “generation customer experience” or GenCX has placed more weight on the opinion of others and has played a huge role on whether this consumer group will purchase a product or avail of a particular services.
“It is a shift of power from the sellers to the customers,” Alvin Ching, vice-president and seller engagement head of Lazada Philippines, said during the second Philippine Retail Summit with the theme #GenCX: The ultimate retail disruptors held at the SMX Convention Center Aura in Taguig City on March 14.
“Customers would listen more to those who have already experienced your product or service more than how you position in the market,” he added.
These buyers are not a new group. But their presence has become stronger especially in Southeast Asia with the emergence of e-commerce. Their strong influence on other consumers has pushed businesses to cater to what the group wants and needs to gain loyalty.
Jonathan Yabut, managing director of JY Consultancy Ventures, said the idea is to offer a “fantastic” customer experience that could lead consumers to stick to a product and referring it to others.
“I think the pinnacle of being a great CX provider is achieving the top of the pyramid,” he said during his presentation. He was referring to how to win the loyalty of one’s customers.
Mr. Yabut noted GenCX trends that firms should keep in mind to attract this consumer group. He said the most important factor is to have or develop a product or service that is “instagrammable” as GenCX consumers put more importance on what is visually appealing.
“Instagrammable does not only refer to Instagram,” he said, referring to the popular social media application. “It could be any platform where you can brag what you think you can talk about.”
He cited for instance the “unicorn” Frappuccino that Starbucks released in 2017. Many were attracted to the drink that gave the feel of a unicorn. More than the taste, it was the visual appeal of the product that made people buy it.
“The intention was that the entire product was so beautiful it pops out excellently on Instagram or on Facebook that when you take a photo of it and you’re the one who is able grab it and not your friends, you become the envy of your social circle,” he said.
“We decide not by the functionality of the product but because of the visual reasons that can make a better image out of us,” he added.
“We choose, therefore, not because of our senses of taste or our hearing. We choose because of our visual decisions behind it,” he said.
GenCX consumers also give importance to product reviews. They usually delay the purchase of a product until they are able to do enough research of it. Unboxing videos, ratings, and other ways of expressing one’s opinion of a product have influenced others’ decision on whether to buy or not.
“From 2D, we have become more 360 because if it’s only a photo, it can be easily faked, and we love videos because they are more authentic and they give us the real feel,” Yabut said.
Consumers rate a product even without an incentive to do so because it gives them a sense of being part of a community.
Regina Saquin, head of Zalora’s CX, said the company places a big importance to what its customers think. It usually reaches out to customers through ways like web surveys to know their preferences.
“In a data-driven society, it pays to take a step back and just listen to the customer,” she said in her presentation.
Mr. Yabut said these consumers are more inclined to products or services that are able to adapt to their needs. For instance, when Samsung developed its smartphones it asked customers about what they want on their phone. The response included better battery capacity and power, which the company applied to its products.
“That in itself is an example that when you really ask your customers what they want, they can offer it to you,” he noted.
Mr. Yabut emphasized the role of the customer’s idea, which may later shape what the business will be. He said some ideas cannot be ignored or resisted, and that certain aspects of customer experience could lead to “the next big thing” for a business.
For Mr. Ching, GenCX is not a trend.
“We are at an inflection point and again we can never go back to where we were before, and because it’s not a trend, it’s a new reality. One thing we have to do is to be very strategic about it, so you have to think of the long term,” he said.

Brazil import quota for US wheat could come with Bolsonaro visit

WASHINGTON — Brazil is considering granting an import quota of 750,000 tonnes of U.S. wheat per year without tariffs in exchange for other trade concessions, according to a Brazilian official with knowledge of the negotiations ahead of President Jair Bolsonaro’s visit to Washington.
That is about 10 percent of Brazilian annual wheat imports and is part of a two-decades-old commitment to import 750,000 tonnes of wheat a year free of tariffs that Brazil made during the World Trade Organization Uruguay Round of talks on agriculture but never adopted.
Bolsonaro is scheduled to arrive in Washington on Sunday and meet with U.S. President Donald Trump at the White House on Tuesday.
Farm state senators have asked that wheat sales be on the agenda, in a letter to Trump seen by Reuters. They estimate such a quota would increase U.S. wheat sales by between $75 million and $120 million a year.
Brazil buys most of its imported wheat from Argentina, and some for Uruguay and Paraguay, without paying tariffs because they are all members of the Mercosur South American customs’ union. Imports from other countries pay a 10 percent tariff.
The Brazilian official, who asked not to be named so he could speak freely, said the wheat quota could be sealed during a meeting between Brazil’s Agriculture Minister Teresa Cristina Dias and U.S. Secretary of Agriculture Sonny Perdue on Tuesday.
In return, the Brazilian government is hoping to see movement toward the reopening of the U.S. market to fresh beef imports from Brazil that were shut down after a meat-packing industry scandal involving bribed inspectors.
Brazil is also seeking U.S. market access for its exports of limes that are facing phytosanitary certification hurdles.
The world’s largest sugar producer also wants tariff-free access to the U.S. market. But Washington is not expected to budge on that issue until Brazil lifts a tariff it slapped on ethanol imports when they exceed 150 million liters in a quarter.
That is a major demand by U.S. biofuels producers who are the main suppliers of ethanol imported by Brazil. — Reuters

Allianz SE eyes Deutsche asset management arm

ALLIANZ SE is exploring the possibility of a combination of its asset management arm with Deutsche Bank AG’s DWS Group to create a national champion in active money management, according to people familiar with the matter.
The Munich-based insurer is looking at the feasibility of a deal with Germany’s largest lender to create a business with €1.17 trillion ($1.33 trillion) under management, said the people, who asked not to be identified discussing the private matter. Allianz’s deliberations are at an early stage and may not lead to any formal talks or agreement, the people said. DWS is one of Deutsche Bank’s crown jewels and the lender is reluctant to sell its holding in the stock-listed unit, one of the people said.
Still, such a transaction could help Deutsche Bank finance a merger with Commerzbank AG. The lender would have to come up with about €8 billion for restructuring expenses and revaluation of certain assets should it decide to combine with its cross-town rival, according to Christian Koch, a DZ Bank analyst. DWS has a market cap of €5.6 billion, valuing Deutsche Bank’s 78% stake at about €4.3 billion.
Deutsche Bank has already tapped shareholders for about €30 billion this decade, making the sale of an asset like DWS potentially more palatable. Representatives for Deutsche Bank, Allianz and DWS declined to comment.
Any sale of DWS could also attract interest from other firms looking to bolster their asset management business, including Amundi SA, Europe’s largest asset manager, UBS Group AG and Morgan Stanley. Amundi, majority owned by Credit Agricole SA, would take a look at DWS if it became available, according to people briefed on the matter. An Amundi representative declined to comment.
Deutsche Bank may need to sell its DWS stock for at least €32 per share to avoid a writedown on the value booked on the lender’s balance sheet, according to people familiar with the information. The stock closed on Friday at €27.95.
A combination of DWS, which oversees €662 billion, and German active money manager Allianz Global Investors, with €505 billion, would create a German champion in asset management.
For asset managers seeking scale — and there are a lot these days — a sale of DWS would present a rare opportunity for a large deal. The firm has one of Europe’s biggest offerings of exchange traded funds, as well as a sizable real estate business. — Bloomberg

Melissa launches collection with Sanrio’s Hello Kitty


Brazilian shoe brand Melissa has launched a collection with one of the most recognizable cats in the world, Hello Kitty, in a line which is said to blend the charming, be-ribboned Hello Kitty aesthetic with the sophisticated style of the footwear brand for a “cute-meets-chic” balance between form and function. The collection features sneakers, ballet flats and slippers. The Melissa x Hello Kitty collection is available online at www.melissaphilippines.com starting March 15, and in select Melissa Shoes outlet stores nationwide starting April 1.

Shares seen sideways as gov’t cuts growth goal

SHARES MAY continue to trade sideways in the week ahead as investors digest the government’s decision to cut growth targets.
The benchmark Philippine Stock Exchange index (PSEi) climbed 0.61% or 47.86 points to 7,798.28 last Friday. Last-minute buying allowed the index to register gains on a weekly basis, although only minimally at 0.02%. The services counter’s 1.83% weekly gain was offset by a 1.6% drop in holding firms.
Average turnover for the week increased by 42% to P8.54 billion as Friday’s P21-billion turnout lifted the thin trading that settled just above P5 billion for most of the week. Net foreign buying averaged at P280 billion, versus a net selling position of P59 million in the week before.
“The main index may continue to trade between the trading range between 7,600 and 7,900 in the coming weeks,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a weekly market report.
Mr. Mangun noted how the government last week cut its 2019 gross domestic product (GDP) growth target to 6-7% from 7-8% previously due to delays in approving the National Expenditure Program.
Socioeconomic Planning Secretary Ernesto M. Pernia said last week that operating on a reenacted budget will likely stunt GDP growth to as low as 4.2-4.9% this year versus the country’s 6.2% growth last year.
“Investors may have been expecting this, thus the cautious sentiment,” Mr. Mangun added.
Meanwhile, growth is seen picking up to 6.5-7.5% in 2020 before rising to 7-8% in 2021 and 2022.
On the other hand, the economic team retained their inflation forecast at 3-4% this year and 2-4% annually until 2022, confident that price increases will go back to normal from last year’s surge.
Online brokerage 2TradeAsia.com added that investors will be looking at results of the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) happening this week.
The Federal Open Market Committee will convene on March 19-20, while the BSP policy review will follow on March 21.
“The likelihood for a status quo on the Fed rate is gaining ground, especially with the recent weakness in select key spending data in the US. At home, several players are starting to price in a cut in the reserve requirement from the new BSP chief, a move that should help induce lending to support capital rollout,” 2TradeAsia.com said in a weekly market note.
The online brokerage said risks are still present for local equities as the Senate and House of Representatives have yet to approve the national budget. Both houses of Congress are currently on recess. The session will resume on May 20 until June 7.
“Efforts must also be made in addressing the water shortage dilemma, on top of countering efforts to mitigate El Niño’s impact on agriculture,” 2TradeAsia.com said.
Eagle Equities’ Mr. Mangun placed the PSEi’s support at the range of 7,600 to 7,700, while resistance is from 7,900 to 8,000. — Arra B. Francia

How PSEi member stocks performed — March 15, 2019

Here’s a quick glance at how PSEi stocks fared on Friday, March 15, 2019.
psei031519
 
Philippine Stock Exchange’s most active stocks by value turnover — March 15, 2019.
pseiactive031519

Special session may herald possible budget compromise

THE Senate’s proposal to hold a special session for the approval of a supplemental budget is a “workable compromise” to settle the impasse over the 2019 national budget, an analyst said Sunday.
The Senate last week asked the House of Representatives to recall the 2019 national budget, signed by Speaker Gloria Macapagal-Arroyo, which it transmitted on March 11.
“We only suggest it if the House recalls what they sent and resend what we approved in the plenary. Then in case the President vetoes the lump sum, we can go into a special session to approve a supplemental budget,” Senate President Vicente C. Sotto III said in a phone message to BusinessWorld, Saturday.
He noted this has been relayed by Senator Panfilo M. Lacson to the House, through San Juan Rep. Ronaldo B. Zamora. When asked whether there has been any development since, Mr. Sotto said “none yet.”
Mr. Zamora, for his part, said in a phone message, Sunday, “there is nothing yet to report. We have finished some preliminary issues, but there are still large gaps to bridge between the versions of the two Houses of Congress.”
“We will, at all costs as soon as we can, have a budget for 2019.”
Ateneo Policy Center research fellow Michael Henry Ll. Yusingco said via e-mail Sunday that “this week, Senate’s proposal could be the likely way out of this budget deadlock.”
“The Senate’s suggestion to hold a special session for a supplemental budget to accommodate the House’s position looks like a workable compromise. Initial reactions from some Congressmen to this proposal are not encouraging. But this weekend may have given our lawmakers the time to reconsider the backlash if they remain intransigent. They could enter this week with a softer attitude towards each other,” he said.
Dr. Perlita M. Frago-Marasigan, a University of the Philippines Political Science assistant professor, said if the House maintains its position, “the deadlock may continue until after the mid-term elections.”
“Two, the government projects will be funded by a reenacted budget. Third, the path of least resistance might be chosen. The Senate usually bases its decision on popular support,” she said in a phone message on Sunday.
Both analysts said any more delay in the budget enactment will have a severe impact on the economy. “The planned infrastructure projects will have no funds and therefore cannot proceed as planned. This is just one outcome our lawmakers must not trivialize,” Mr. Yusingco said, adding that health and social welfare services will also suffer.
“We need the new budget passed soon. This is the bottom line,” he added.
The House has been firm in its insistence on “itemizing” the P3.757-trillion budget following its ratification by both chambers on Feb. 8. The House has argued that keeping some funds in lump sum form, as approved in the committee report, makes the budget prone to corruption.
When asked what it sees as a possible compromise, given the opposing positions, House Majority Leader Fredenil H. Castro of the 2nd district of Capiz merely said the Senate should sign the transmitted budget.
“The House has done its obligation. It has forwarded to the Senate the Enrolled Bill duly signed by the Speaker,” Mr. Castro said in a phone message Sunday. “It’s now the turn of the Senate to comply with its obligation by signing the Enrolled Bill and transmit it to the President for his signature.”
Meanwhile, in a statement on Sunday, appropriations committee chair Rolando G. Andaya, Jr. of the 1st district of Camarines Sur said the Budget itemized by the House will “not cripple” President Rodrigo R. Duterte’s “Build, Build, Build” program, contrary to claims made by Mr. Lacson.
“What may stall the acceleration of infrastructure spending was the Senate’s unilateral decision to remove P17 billion for the right-of-way funding of BBB projects,” he said in a statement. — Charmaine A. Tadalan

Foreign debt rises 8%

OUTSTANDING foreign debt rose 8% in 2018 as companies and the national government resorted to foreign sources for funding, the Bangko Sentral ng Pilipinas (BSP) said.
External debt grew to $79 billion at the end of 2018 from the year-earlier total of $73.1 billion, the central bank said late Friday.
Last year, the government borrowed $3.5 billion from external creditors, while the private sector availed of $3.2 billion worth of overseas loans.
The government’s external debt rose to $39.7 billion at the end of 2018 from $39.5 billion at the end of the third quarter. Its share of total external debt declined to 50.3% from the previous quarter’s 51.8%.
Meanwhile, the private sector’s overseas obligations “substantially” increased to $39.3 billion at the end of the year from the end-September level of $36.9 billion, with its share of the total increasing to 49.7% from the previous quarter’s 48.2%.
The central bank attributed the year-on-year growth of external debt to the government’s increased financing needs for its infrastructure and social spending programs.
Banks were also preparing for the higher liquidity coverage ratio threshold prescribed by the Basel 3 reform package issued by the Basel Committee on Banking Supervision, while also seeking additional funding for their purchases of Philippine sovereign debt.
The central bank also attributed the higher foreign debt to the private sector’s increased working capital needs, expanded funding base and extended term liabilities.
External debt refers to all types of borrowing by Philippine residents from non-residents, following the residency criterion for international statistics.
In the fourth quarter, outstanding foreign debt rose 3.3% compared with the end-September level of $76.4 billion.
At the end of 2018, the maturity profile of the foreign debt remained predominantly medium- to long-term (MLT) in nature, or those with original maturities longer than one year, accounting for 79.7% of the total or $62.9 billion.
Meanwhile, short-term accounts comprised 20.3% of the debt stock, mainly bank liabilities, trade credits and others.
“The weighted average maturity for all MLT accounts remained at 17.0 years in December 2018, with public sector borrowings having a longer average term of 21.3 years compared to 7.7 years for the private sector,” the BSP said.
“This means that FX requirements for debt payments are well spread out and, thus, more manageable.
Japan was the biggest creditor at $14.4 billion. This was followed by the United States ($4 billion), the Netherlands ($3.6 billion) and the UK ($3.2 billion).
Obligations to foreign banks and other financial institutions accounted for the largest share of outstanding debt at 33.6%.
Loans from official sources stood at 31.2%, broken down into multilateral creditors (17.4%) and bilateral creditors (13.8%).
Bilateral loans amounted to $10.9 billion, with Japan providing $7.9 billion, China $772 million and Germany $426 million.
Foreign debt remained largely dollar-denominated at 61.1% while yen debt accounted for 13.2%.
The BSP also said the debt service ratio — a measure of the adequacy of foreign exchange earnings to meet maturing debt obligations — was 6.3% at the end of 2018 from 6.2% a year earlier.
The external debt ratio — or total outstanding debt as a percentage of Gross National Income — measures solvency. It grew to 19.9% at the end of September from 19.4% a year earlier, indicating the country’s “sustained strong position” to service offshore borrowings in the medium to long term. — Karl Angelo N. Vidal

Cement importers say products meet gov’t norms

IMPORTERS disputed claims that their cement fails to meet regulatory standards, noting that Vietnamese cement in particular meets government standards.
“All legally-imported cement retailed in the Philippine market is guaranteed to meet stringent quality controls. Our members import cement from various countries, including Vietnam. But wherever imported cement is sourced, we wish to stress that imported cement undergoes a three-tier quality control procedure mandated by (Department of Trade and Industry),” the Cement Importers Association of the Philippines (CIAP) said in a statement over the weekend.
According to news reports and online rumors, substandard Vietnam-sourced cement is proliferating in Philippine markets.
CIAP said quality controls imposed by DTI on imported cement are more stringent than those for domestic cement, whose manufacturers undergo one annual audit.
“Although the ideal situation is for unannounced audits, local manufacturers undergo only once-a-year audits and the audits are even announced and mutually scheduled. In other words, cement products of local manufacturers are tested only once a year,” CIAP said.
“On the other hand, for imported cement, each and every batch is tested by the DTI. If there is more than one batch in one shipment, we are required to provide samples for each batch for DTI to test,” it added.
The group noted that repeat orders from customers who have used imported cement for their projects show that “imported cement can be far superior to locally-manufactured cement.”
Under DTI Department Administrative Order (DAO) 17-06 issued in 2017, cement can only be imported from manufacturing plants that have been pre-screened and have passed stringent accreditation standards, which is the first stage of DTI’s quality control procedures.
Upon accreditation, foreign plants are given a Philippine standards (PS) quality mark and/or a safety certification (SC) mark. All cement destined for the Philippines must carry the PS or SC mark on the packaging.
On behalf of DTI, accreditation is undertaken by international organizations such as Société Générale de Surveillance or TUV Rheinland, among others, which conduct factory and product audits to ensure compliance with Philippine standards.
Upon arrival at Philippine ports, imported cement undergoes post-shipment inspection and testing for quality confirmation conducted respectively by the Bureau of Customs and the DTI.
The Philippines has seen a surge in cement imports in recent years due to rising demand, which CIAP claims cannot be met by domestic manufacturers.
CIAP members account for more than 50% of the volume of cement imports. — Janina C. Lim

DoLE to sign labor deal with Japan for at least 100,000 specialized jobs

THE Department of Labor and Employment (DoLE) said it will sign an agreement with Japan on Tuesday that could result in at least 100,000 workers with specialized skills, including caregivers.
Labor Secretary Silvestre H. Bello III said that he will fly to Japan to sign a new bilateral following the adoption of a new immigration policy for foreign workers. The memorandum of cooperation will be between DoLE and Japan’s Ministries of Justice, Foreign Affairs, Health, Labor and Welfare and the National Police Agency.
“Signing will be on the 19th,” he told reporters.
The new immigration policy will take effect next month, which marks the start of Japan’s fiscal year. New work visas will be issued under the category “Specified Skilled Worker.”
The 14 specified sectors prioritized by the new policy are care workers; building management specialists; machine parts and tooling craftsmen; industrial machinery operators; workers in the electrical, electronics, and information sector; construction workers; ship building and ship machinery workers; auto repair and maintenance workers; aviation workers; accommodations specialists; agriculture workers; fisheries and aquaculture workers; food and beverage manufacturing specialists; and food service workers.
The agreement between Japan and DoLE makes available a substantial share of the 350,000 available jobs under the new law, with Filipinos considered a preferred nationality for the program.
In a statement on Sunday, Mr. Bello said: “This agreement, aside from providing better opportunities, is geared toward ensuring their protection by means of implementing a basic framework that will promote smooth and proper mechanisms in sending, accepting, and residence management of incoming specified skilled workers in Japan,” he said. — Gillian M. Cortez

1...9,7939,7949,795...12,803Page 9,794 of 12,803
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube