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Hiring and retaining the brightest managers

Hiring people and losing them in a short period of time is always an expensive situation for any organization. In our case, it’s almost 50%-50% for those who resigned voluntarily and involuntarily within their first year of employment. Knowing this, what are the best strategies to reduce the chance of the wrong people being hired? How do we screen and hire the best and the brightest who will stick to our organization? — Water Lily.
A famous inspirational speaker on leadership is known for his popular public seminars on parenting, including a topic on “How to Raise Better Kids,” among other related concerns. As soon as his four kids grew up to become youngsters, he changed the title of his seminar to “Suggestions for Raising Children.”
When his kids reached their teen years, he discontinued the seminar with no explanation.
Sometimes, when we feel that what’s ideal is not working to our satisfaction, it’s better to move on to other things. In your case, if the trend appears irreversible and you keep on losing people within their first year of employment, chances are there’s something wrong with your screening process.
Yes, that’s right. It’s obvious that you made a mistake somewhere in your hiring process.
Reading books and even this article will not help in your quest for continuous improvement unless you distill the key takeaways and apply them in real work situations. After all, you can’t learn swimming by reading. You need to take the plunge. You must practice what you’ve learned, and then learn, unlearn, and relearn many things, including the lessons of other recruitment practitioners.
But let’s focus on what we can do in hiring and retaining managers and other key personnel with “hot skills.” For non-management people leaving within one year from their hiring date, you need not worry much about them going to other places. They deserve to fatten their work experience elsewhere. As long as you have a one-digit turnover rate, then there’s nothing to worry about.
On the other hand, if you don’t want even non-management people to leave and they have the potential to become future leaders, then create and maintain a systematic management training program for them instead.
Now, let’s explore how we can improve your screening process for managerial candidates and other workers who are difficult to source, screen, hire and motivate. Here are some suggestions for you:
One, choose job candidates who are not in the job market. Convince people who are not actively seeking work to try their luck with you. Indeed, it’s difficult if they’re happy and motivated with their current job. But that’s essentially the point. You don’t want to explore opportunities with active job hunters or job hoppers who shop their CVs around hoping to find the highest bidder. You should only talk to people who have served at least five years with their employers and need a lot of convincing to take a meeting with headhunters.
A note of caution: People who don’t want to leave their current employ are aware that their bosses could create a situation with the help of a friendly headhunter in setting up a fake headhunting situation to test their loyalty.
Two, require managerial applicants to undergo written tests. This requirement may prove the determination of applicants. This may include psychological testing on leadership by an in-house psychometrician or an external service provider like the Psychological Association of the Philippines. Aside from a written test, you can also require applicants to undergo job-related simulations.
Caution: Some people may object to the idea of a written exam. They may have credentials that include at least 10 years of work experience, with foreign scholarships or a post-graduate degree from a prestigious school.
Three, conduct a stressful panel interview with top executives. Stress interviews are done to put the job candidates in an awkward and uncomfortable work situation. The whole idea is to understand how a candidate will react to a stressful situation under scripted conditions. This may include yelling by a designated “bully” in the panel of interviewers.
Caution: Limit the “bully” to one person who must be “restrained” by other interviewers in line with the script. Otherwise, the stressful interview could backfire against the organization. To avoid this, the job applicant must be fully appraised of what happened after the interview.
Four, do background checks of people in the shortlist. Some employers make the mistake of doing background checks after the employment contract has been signed. This is a waste of time, effort and money by an employer. If you can make the background check an integral part of the hiring process, then you can minimize the involuntary resignations of people who may have been dishonest with some information in their application form.
Caution: Organizations don’t simply give out information, particularly if the inquiry is done by phone, text or email. They don’t know you and they’re conscious of the law on data privacy. Better hire a professional investigator with connections everywhere. They can give you an almost complete dossier on the people you want to hire.
Last, do the onboarding process prior to making a job offer. Or even ahead of the signing of an employment contract. Giving orientation to new employees on the first week of hiring is already too late. The best time to orient them is during the hiring process when they’re given the chance to understand the actual situation in the organization. This includes sessions on the company’s culture, management style and values.
Caution: Test the determination of candidates by giving them the chance to back out early. Instead of convincing people, explain the challenging aspects, instead of relying much on the goodness of working for the organization. This is difficult to do especially when the company is hard-pressed to hire somebody. But it is better that way rather than create a situation where everyone is disappointed in the short term.
ELBONOMICS: Set free the best talent so he can freely discover his best fit elsewhere.
 
Send anonymous workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting

How PSEi member stocks performed — March 28, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, March 28, 2019.

Ex-DPWH head backs creation of water department

PAST and present government officials are supporting the creation a Department of Water to serve as the one entity to oversee the operations of various agencies, a former Cabinet official said.
“I strongly suggest that we advocate… the creation of a Department of Water for more coherent, long-term plans and programs to manage our country’s biggest renewable resource next to air and the sun,” according to Rogelio L. Singson, Meralco PowerGen Corp. (MGen) president and chief executive officer.
Mr. Singson, a former Secretary of Public Works, made the statement during a forum hosted by the Philippine Disaster Resilience Foundation (PDRF) on Thursday.
Based on his count, Mr. Singson said there are at least “30 government agencies and instrumentalities” involved in water, each protective of their own turf and mandate, but with no single entity in charge.
“Creating a Department of Water, I believe, will be a game changer to address disasters caused by flooding, landslides, siltation, potable water shortages and with proper government funding. Or at the very least, if not a department, a strong agency with enough government clout and with somebody in charge,” he said.
Calls to create an overall water agency have come up after customers of Manila Water Co., Inc. experienced massive water service interruptions starting early this month, which prompted Metro Manila’s east zone concessionaire to announce a one-time bill waiver.
Mr. Singson said if the country properly manages its water resources, it could avoid loss of life, damage to property due to flooding and landslides, and prevent a water supply crisis. It could also have enough water to irrigate farmland and maximize the capacity of hydroelectric power plants.
“Yet we can’t seem to learn as these problems keep recurring almost in a cycle as sure as we will experience El Niño, La Niña every so often,” he said.
Mr. Singson said he had worked with the Department of Science and Technology (DoST) and Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA) to complete about masterplans for the country’s six major rivers to mitigate flooding and conserve water.
DoST Undersecretary Renato U. Solidum, Jr. said creating a new department should not be viewed simply from the perspective of adding more people or adding another organization, but the goal should be to make the activities and actions of the government more efficient.
“It is easier to have a coordinated effort if organizations related to water are under one roof rather than… heads of these various groups deciding independently,” he said in an interview.
He said global warming could have an impact on the distribution and supply of water, while also affecting the energy sector through hydropower as well as agriculture and public health.
Guillermo M. Luz, PDRF chief resilience officer, said the business sector has been backing the creation of a Department of Water for some time now.
“We can’t have over 30 agencies managing the water situation across the country. No one really knows who’s in charge, which agency is the in-charge agency, and which jurisdictions are overlapping. So I think it’s kind of practical to move to a single agency and manage water resources on a national basis,” he said.
Before his present post, Mr. Luz was the private sector’s link to the government in drafting initiatives to advance the ease of doing business. PDRF, a private sector vehicle and coordinator for disaster resilience, aims to contribute to the sustainable development and general welfare of Filipinos.
Emmanuel M. de Guzman, secretary and vice-chairperson of the Philippine Climate Change Commission, said he was holding off coming up with a position on the creation of a Department of Water until “we appreciate where we are right now and what is really needed to strengthen water governance in the country.”
“I couldn’t say outright now unless I see the justifications and the whole picture of where we are right now in terms of water governance. I know there are ongoing studies, but they have not been really concluded yet. There are policy reviews going on and also a review of the existing arrangements for water governance,” he said.
“But from what I heard, there really is fragmentation among water sector stakeholders,” he added. — Victor V. Saulon

Lacson confident Palace will partly veto budget

SENATOR Panfilo M. Lacson said Thursday that he is confident that President Rodrigo R. Duterte will veto parts of the P3.757-trillion 2019 budget now awaiting his signature, especially allegedly unauthorized items inserted after the bicameral conference committee approved the spending plan.
“To be honest about it, yes. We’re confident, at least in the Senate, that he will veto (parts of the budget we flagged). This is not a plucked-from-thin-air veto because (internal funding realignments) are wrong. That is why SP (Senate President Vicente C.) Sotto’s (III) attachments (to the enrolled copy of the national budget) were voluminous because we want complete information,” he said.
If no veto comes, “definitely, we’ll respect that because that’s within his authority but it will not prevent us, me particularly, to question. Because if the pork is approved and implemented, the funds are wasted,” he told reporters during the Kapihan sa Senado media forum on Thursday.
“We’re banking on the commitment of the President either publicly or when we met with him in Malacañang, that he will never sign anything that is illegal or unconstitutional,” he added.
Asked if Mr. Lacson plans to question the 2019 national budget over the internal realignments before the Supreme Court, he said he is reviewing his options.
“Not necessarily (before the SC)… It would be a long decision. We did that before in 2014, I think… Nothing happened,” he said.
The 2019 national budget was transmitted to Malacañang on Tuesday after a month-long standoff between the Senate and the House of Representatives over the post-ratification changes made by the House.
Mr. Sotto eventually signed the national budget but expressed “reservations” by attaching a note stating that the provisions added by the House of Representatives after the measure’s ratification on Feb. 8 are unconstitutional.
Members of the House claim that they “itemized” some lump-sum items to clarify how the funds can be spent.
The President’s Spokesperson Salvador S. Panelo told reporters on Tuesday that Mr. Duterte will exercise his judgment in agreeing to the changes made by the House of Representatives.
Mr. Lacson warned that the funds will be wasted if the alleged “pork” in the 2019 budget worth P75 billion is approved by the President because the implementing agency will not be able to implement the projects.
“These are the items not vetted by the agencies. This is always my question: If you do not consult the agencies that will implement and who conducted the preparation phase… and (only for it to be) altered whimsically when it came to the Senate and the House, you can just imagine what will happen to those items. It cannot be implemented,” he said.
He once more floated a plan to seek a supplemental budget to fund the House’s internal realignments worth P75 billion under the Department of Public Works and Highways (DPWH) if Mr. Duterte vetoed the provisions.
“We’ll make sure that the DPWH is present, because there will be committee hearings, to validate that they can implement it. At least the DPWH is aware. We don’t really mind that much to have infrastructure development in the districts. We really need those,” he said.
“For me, the bottom line is the agencies should be informed so it can be implemented properly,” he added. — Camille A. Aguinaldo

WHO finds broad gender disparities in health care top management

WOMEN hold a quarter of senior positions in health care globally despite accounting for about 70% of the total health work force, the World Health Organization (WHO) reported.
In partnership with the Global Health Workforce Network and Women in Global Health, WHO launched the ”Delivered by Women, Led by Men: A Gender and Equity Analysis of the Global Health and Social Workforce” report on March 20. The study found that 234 million people were health care and social services workers worldwide, most of them women, though few of the latter hold senior positions.
“The health and social care sector is the fastest growing employment sector for women, with women comprising seven out of 10 health and social care workers,” the study said.
“Women are 70% of the global health workforce but hold only 25% of the senior roles.”
Some 69% of global health organizations are led by men while 80% of the board chairs are also men. Only 20% of global health organizations have gender parity in their boards while 25% have gender parity at the senior management level.
“In general, women deliver global health and men lead it. Progress on gender parity in leadership varies by country and sector, but generally men hold the majority of senior roles in health from global to community level. Global health is predominantly led by men,” the study reported.
The study said women provide health care to 5 billion people and account for $3 trillion annually generated by the industry, equivalent to 5% of global GDP. The WHO said more than 50% of this value was from unpaid care work. Female health workers also do not equally contribute to the design and delivery of health systems.
“The unadjusted gender pay gap appears to be even higher in the health and social care sector, estimated at 26% in high-income countries and 29% in upper middle-income countries,” the WHO said.
WHO also noted that despite the dominant representation of women in the global health workforce, women earn on average 28% less than men. They added, “Occupational segregation (10%) and working hours (7%) can explain most of this gap, but even when considering ‘equal work’ an ‘equal pay’ gap of 11% remains.”
Occupational segregation is another issue faced by women in the health workforce, with women usually in the nursing sector while surgeons are dominated by men. WHO said, “One reason for this is the perception that surgical specialisms are a male domain where toxic masculinity is common, creating a hostile work environment for women.”
The Gender Equity Hub (Co-chaired by Women in Global Health and World Health Organization) will seek to create solutions in addressing these findings.
“(T)he GEH will develop advocacy and policy toolkits to target key stakeholders, including WHO Member States, to integrate gender-transformative health and social workforce policies into their national health workforce plans,” the WHO said. — Gillian M. Cortez

PHL asks Malaysia, Indonesia to moderate their palm oil exports

THE agriculture ministries of Malaysia and Indonesia have agreed to form a technical working group with the Philippine Department of Agriculture (DA) to address the issue of the oversupply of palm oil in the Philippines, to the detriment of the coconut industry.
“During yesterday’s meeting, it was agreed that the technical working group will draft recommendations on the rationalization of palm oil exports to the Philippines,” DA Secretary Emmanuel Piñol said in a social media post on Thursday, referring to his counterparts, Malaysia’s Ministry of Agriculture and Agro-based Industry and Indonesia’s Ministry of Agriculture.
Mr. Piñol said he proposed that the other two countries’ ministries maintain palm oil exports at a level that will not disadvantage the Philippines’ own coconut and palm oil industry and check the smuggling of crude and refined palm oil to the Philippines, whie opening their markets to Philippine agricultural products.
“Importation data gathered by the DA showed that exports of Palm Oil to the Philippines by both Indonesia and Malaysia have increased by 100% over the last three years,” Mr. Piñol said.
“Since Palm Oil is cheaper than coconut oil, the increase in Palm Oil exports was cited one of the reasons behind the collapse of copra prices,” Mr. Piñol added.
Mr. Piñol said in January that Indonesia is not willing to open its market to Philippine products.
“It looks like they are not really ready to open up their markets. Our negotiators came home disheartened but we are not giving up. We are pursuing,” Mr. Piñol said. — Reicelene Joy N. Ignacio

Regulator approves toll adjustments for SCTEx, MCX

THE TOLL Regulatory Board (TRB) said it approved toll adjustments for Subic-Clark-Tarlac Expressway (SCTEx) and Muntinlupa-Cavite Expressway (MCX) this week.
TRB Executive Director Abraham P. Sales told reporters on Thursday the agency is issuing resolutions to SCTEx operator NLEX Corp. and MCX operator Ayala Corp. approving their pending rate adjustments as provided for by their respective concession agreements with the government.
“They’re entitled [to] yearly adjustments actually. The 2011 [adjustment] has been pending for some time]. It’s the first of the petitions to be resolved for SCTEx,” Mr. Sales said.
For MCX, the adjustment covers 2016, which he described as small.
Mr. Sales said after the approval, the toll operators must follow publication requirements before they are allowed to start collection. He did not provide the approved toll increases, but said the operators are expected to publish the adjusted matrix by next week.
In 2011, the operator of SCTEx at the time, the Bases Conversion and Development Authority (BCDA), filed an application with the TRB to raise tolls for the 93.77-kilometer expressway. The application was not resolved at the time NLEX Corp. took over SCTEx management in October 2015.
“SCTEx is entitled to apply yearly. For NLEx (North Luzon Expressway), every two years… South Luzon Expressway (is also about) every two years. STAR (Southern Tagalog Arterial Road) and CAVITEx (Manila-Cavite Expressway) are about every three years,” Mr. Sales said.
He noted the remaining petitions in SCTEx for the rest of the years from 2011, and all the other petitions for other toll roads, are still being taken up by the TRB Board.
Earlier this month, the TRB also allowed NLEX Corp. to start collecting higher tolls in NLEx for petitions made in 2013 and 2015.
NLEX Corp. is part of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC).
MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. 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. — Denise A. Valdez

Agriculture trade deficit widens in 4th quarter

A DEFICIT in the trade of agricultural products widened in the fourth quarter of 2018, with import growth outstripping exports, the Philippine Statistics Authority (PSA) said Thursday.
Total trade amounted to $5.23 billion during the period, up 15.9% from a year earlier, with exports at P1.66 billion, up 8.8% from a year earlier, and imports valued at $3.57 billion, up 19.6%.
PSA said exports were dominated by the top 10 commodity groups, which accounted for $1.58 billion, up 11.7% from a year earlier.
The top 10 consists of edible fruits and nuts, citrus fruit peels, and melons ($645.14 million); animal or vegetable fats, oils and their cleavage products, and prepared edible fats ($303.19 million); tobacco and manufactured tobacco substitutes ($128.06 million); preparations of meats, of fish, or of crustaceans, molluscs and other aquatic invertebrates ($122.30 million); preparations of vegetables, fruits, nuts, or other parts of plants ($94.81 million); fish and crustaceans, molluscs and other aquatic invertebrates ($91.72 million); preparations of cereals, flour, starch or milk, and pastry cooks’ products ($82.20 million); miscellaneous edible preparations ($44.56 million); lac, gums, resins and other vegetable saps and extracts ($42.67 million); residues and waste from the food industries, and prepared animal fodder ($28.77 million).
The top 10 import products, meanwhile, accounted for $743.55 million of the total, up 103.4% from a year earlier.
These are: cereals ($743.55 million); residues and waste from the food industries, prepared animal fodder ($438.63 million); sugar and sugar confectionery products ($190.64 million); animal or vegetable fats and oils, cleavage products, prepared edible fats ($269.57 million); meat and edible meat offal ($345.86 million); beverages, spirits and vinegar ($167.74 million); products of the milling industry: malt, starches, inulin, wheat gluten ($79.96 million); edible fruit and nuts, peel of citrus and melons ($158.35 million); dairy produce, birds’ eggs, natural honey, edible products of animal origin ($236.43 million); and miscellaneous edible preparations ($368.55 million).
Philippine exports to the European Union (EU) amounted to $269.09 million, with the Netherlands the top buyer at $120.62 million.
Imports from the EU amounted to $365.29 million, with the Netherlands also the top export source with $72.33 million.
Japan posted an agriculture trade surplus of $224.10 million, while Australia posted a deficit of $84.81 million. — Reicelene Joy N. Ignacio

Makabayan to ask Supreme Court to order withdrawal from Chico River China loan deal

THE MAKABAYAN BLOC of legislators said it will file on April 3 a petition before the Supreme Court to order the government to withdraw from the Chico River Pump Irrigation Project loan agreement, over questions about its constitutionality.
“On April 3, we will be filing a declaratory relief petition to the Supreme Court, forcing the GRP (Government of the Republic of the Philippines) to rescind (the loan agreement)… (because of a) dangerous provision that will… sell out our national sovereignty,” Anakpawis Rep. Ariel B. Casilao said in a briefing on Thursday.
The petitioners cited Article 8.1 of the Chico River Pump Irrigation Project loan agreement, signed on April 10, 2018, in which the Philippines “irrevocably waives any immunity on the grounds of sovereign or otherwise for itself or its property in connection with any arbitration proceeding.”
Supreme Court Associate Justice Antonio T. Carpio earlier flagged the same provision which he said allows China to seize the country’s “patrimonial assets and assets dedicated to commercial use.”
The 1987 Constitution requires the President to inform Congress of every contract the government enters into relating to foreign-funded exploration, development and utilization of minerals and petroleum, among others, within 30 days from execution.
Mr. Casilao asked the government to publicize all 19 loan agreements signed with China, of which the Makabayan bloc was able to obtain only three. “We call out to the government to disclose publicly all contracts engaged, loans, grants, ODAs (Official Development Assistance).”
“Out of the 19 agreements entered upon by the GRP and private entities of China, hindi lang po limited ‘yan sa Chinese Government, kundi may mga malalaking investors po, tatlo pa lang ang nakuha nating kontrata (not limited to the Chinese government, but even large private investors, we have been able to obtain only three),“ he said.
Mr. Casilao did not disclose details of the two other agreements the bloc was able to obtain.
ACT-Teachers Rep. Antonio L. Tinio said the Chico River Pump Irrigation Project loan agreement follows the template of loan deals China entered into with other nations.
“Basically, (our loan agreement) with China follows the same template of Chinese loans in other countries (that are victims of the) debt trap, including Sri Lanka and Ecuador,” he said in the same briefing. — Charmaine A. Tadalan

SC dismisses challenge to bundling process for auctioning airport projects

THE Supreme Court (SC) dismissed a petition questioning the constitutionality of “bundling” of airport development projects in five provinces, ruling that the matter must first be tested in a lower court.
In a 42-page decision written by Associate Justice Francis H. Jardeleza, the SC said the arguments of the Gios-Samar, Inc., a nongovernmental organization composed of farmers and fisherfolk from Samar who were among the victims of Typhoon Yolanda, “are inextricably intertwined with underlying questions of fact.”
“This Court, however, is not a trier of fact. We cannot resolve these factual issues at the first instance. For this reason, we dismiss the petition,” the SC said.
The court said that it is not mandated by “structure or rule” to receive or evaluate evidence “in the first instance” as those are the primary functions of lower courts such as regional trial courts or the Court of Appeals.
“The doctrine of hierarchy of courts dictates that, direct recourse to this Court is allowed only to resolve questions of law, notwithstanding the invocation of paramount or transcendental importance of the action,” the high court ruled.
“This doctrine is not mere policy, rather, it is a constitutional filtering mechanism designed to enable the Court to focus on the more fundamental and essential tasks assigned to it by the highest law of the land,” it added.
The case stemmed from the March 2015 decision of the Department of Transportation and Communication and the Civil Aviation Authority of the Philippines to bundle into two groups the airport development projects to offer to bidders.
The combined Bacolod-Silay and Iloilo projects represented Bundle 1, valued at P50.66 billion, while Davao, Laguindingan, and New Bohol (Panglao) made up Bundle 2 worth P59.66 billion.
In the petition, Gios-Samar said the bundling of projects will allow companies with “questionable or shaky financial background” to have access to the projects by joining consortia. It also claimed the process violates the constitutional prohibition on monopolies and that bundling will “surely perpetrate the undue restraint of trade.”
The SC ruled that the petitioner failed to show how the process violates the Anti-Dummy Law and did not identify which corporation made false claims about its capital structure.
The high court also rejected the claim that the process allows companies of questionable background to access projects, noting that these matters were questions of fact.
“Even assuming that petitioner is referring to any or all of the five companies who have been pre-qualified to bid in the projects, its assertion that these companies are not financially able to undertake the project raises a question of fact, financial ability being a pre-qualification requirement,” the SC ruled.
The high court also added that the bundling of projects does not violate the constitutional prohibition on monopolies and restraint of trade.
“(W)e find that the grant of a concession agreement to an entity, as a winning bidder, for the exclusive development, operation, and maintenance of any or all of the Projects, does not by itself create a monopoly violative of the provisions of the Constitution,” the SC said, citing precedent which allows certain public utilities to be given exclusive franchises. — Vann Marlo M. Villegas

C5 South Link phase 1 to open in 2nd quarter

METRO Pacific Tollways Corp. (MPTC) said a portion of the C5 South Link Expressway is scheduled to open by the second quarter, which will connect C5 road to Merville in Parañaque City.
MPTC President Rodrigo E. Franco said on Wednesday that the 2-kilometer Segment 3A-1 of the 7.7-kilometer expressway is now nearing completion.
“Here in South Luzon, we have the C5 South Link project, of which the first section we expect to open in two months’ time,” he announced during the groundbreaking program for the Cavite-Laguna Expressway.
The P10-billion C5 South Link project was awarded by the Department of Public Works and Highways (DPWH) to Cavitex Infrastructure Corp. (CIC), the operator of the Manila-Cavite Expressway (CAVITEx). The C5 South Link aims to connect Taguig to Parañaque, Las Piñas and Cavite through CAVITEx, with a driving time of about 30 minutes from the former duration of one hour.
The complete length of the toll road is scheduled for completion by 2020. This covers the segment from C5 to Merville, then Merville to Sucat, then Sucat to the R1 Expressway.
Meanwhile, Toll Regulatory Board (TRB) Executive Director Abraham P. Sales also announced on Thursday that the Metro Manila Skyway Stage 3 (Skyway 3) of San Miguel Corp. is expected to be completed by end-2019.
“They committed to complete the Buendia to NLEx (North Luzon Expressway) segment by end of this year. That means that by first quarter of next year, it will be opened,” he said at an event in Pasay City.
The 18.38-kilometer Skyway 3 is an elevated expressway that will start in Buendia, Makati, traversing Sta. Mesa, Manila and running to the Balintawak exit of NLEx. This is expected to reduce travel time end-to-end to 20 minutes from the former two hours.
MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Foreign Investments Act amendments being rushed

SENATOR Sherwin T. Gatchalian said Thursday that he intends to present to the plenary a bill amending the Foreign Investments Act (FIA) of 1991 to improve the country’s standing as a foreign investment destination in Southeast Asia.
“With only nine session days remaining, we hope to sponsor a measure amending the Foreign Investments Act (FIA) of 1991, which is essential to put the country in a competitive position over other ASEAN (Association of Southeast Asian Nations) countries in terms of attracting businesses and investments by providing clarity to foreigners who are interested in investing in small and medium enterprises or practicing their profession in the Philippines,” Mr. Gatchalian said in a statement.
Asked on the chances of the proposed measure to achieve third-reading approval in the Senate before the 17th Congress ends, Senate President Vicente C. Sotto III said in a text message to BusinessWorld, “It depends on whether it’s controversial or not.”
The chair of the Senate committee on economic affairs said the “poor standing” of the country’s Foreign Direct Investment (FDI) inflows among ASEAN member states signals the need for “immediate implementation of economic reforms that will foster a more competitive business environment.”
“Based on our own analysis, macroeconomic risks such as higher than expected inflation in 2018, the country’s restrictive investment environment, and poor infrastructure quality — particularly on transportation and logistical infrastructure — remain the key stumbling blocks,” he said.
Senate Bill No. 2102, filed by Mr. Gatchalian, reduces to 15 from the present 50 direct local hires the minimum employment requirement for small- and medium-sized domestic enterprises with 40% equity with minimum paid-in capital of $100,000 that will be allowed to set up shop in the country.
It also excludes the practice of professions from the coverage of the Foreign Investment Act (FIA) to allow other laws to govern the rules regarding foreign nationals practicing their profession in the Philippines.
Mr. Gatchalian has said the bill would be among the priority measures of the Senate committee on economic affairs for the remainder of the 17th Congress. Its counterpart measure in the House of Representatives obtained third-reading approval on Jan. 14.
The Joint Foreign Chambers (JFC) of the Philippines has expressed support for such amendments. In a statement on Jan. 24, the JFC said that the minimal restrictions for foreign investors will enable the development of small foreign-owned enterprises in the design and information technology sectors as well as other similar businesses started with a few employees.
According to the Bangko Sentral ng Pilipinas (BSP), foreign direct investment net inflows fell 4.4% to $9.802 billion in 2018.
Aside from the proposed amendments to the FIA, Mr. Gatchalian called for the passage of the bills amending the Public Services Act and the Retail Trade Liberalization Act to “foster an inclusive, efficient, and competitive business environment in the Philippines.” — Camille A. Aguinaldo