Free financial literacy program for workers sought

By Wilnard Bacelonia, April 22, 2024

Senator Jinggoy Estrada has filed a bill requiring The bill seeks to address the low financial literacy
employers to provide free financial literacy rate among Filipino adults, with only 1 percent
programs for their employees to help them make answering financial literacy questions correctly,
informed financial decisions. according to a Bangko Sentral ng Pilipinas survey
in 2021.
Senate Bill No. 2630 or the Personal Finance
Education in the Workplace Act, filed on April 14, Estrada, chair of the Senate Committee on Labor,
aims to equip workers with knowledge and skills Employment, and Human Resources
to manage their resources and become financially Development, said under the bill, employers would
stable. be mandated to cover topics such as behavioral
finance, savings, debt management, investment,
“The role of employers to take a lead in this
insurance, retirement planning, and other relevant
endeavor cannot be undermined because they
personal finance areas.
provide the most accessible venues and channels
for such initiatives," Estrada said in a statement
Monday.

Reference:

Bacelonia, W. (2024, April 22). Free financial literacy program for workers sought. Philippine
News Agency. [Link]
Chinese cities further ease home buying policies to spur
sales
April 11, 2024

SHANGHAI - China’s local governments are The moves did little to assure investors, with a
stepping up the easing of rules for their housing Bloomberg Intelligence gauge of China property
markets, as a protracted sales slump weighs on developer stocks falling 2 per cent on the morning
the economy and real estate developers. of April 11, extending 2023’s decline to 28 per
cent.
A total of 15 cities have removed the lower limit
for mortgage rates on first home purchases as at China’s residential sales slump dragged on in
April 10, the Economic Observer reported, citing March, dashing hopes for a turnaround during the
its tally of announcements by local governments. traditionally busy spring season. The downturn
has worsened a liquidity crisis at builders including
The move, powered by the central bank’s China Vanke, and swelled bad loans at the largest
relaxation of minimum mortgage rates in 2023, is state-owned banks.
designed to entice home buyers as prices fall.
“The fact that two tier-1 cities eased home buying
Four cities relaxed polices on housing provident policies raises the prospect for further local
fund loans, a cheaper bank loan that is mostly relaxations ahead,” said E-House China
used to buy apartments. Beijing increased the Enterprise Holdings executive director Ding Zuyu.
loan quota by 400,000 yuan (S$76,000) and “After all, expectations for a property recovery fell
southern trading hub Guangzhou raised it by short in the first quarter.
200,000 yuan.

Reference:
Chinese cities further ease home buying policies to spur sales. The Straits Times. (2024, April
11). [Link]
policies-to-spur-sales

DBM to ensure transparent use of 2024 budget

By Ruth Abbey Gita-Carlos, December 23, 2023

MANILA – The Department of Budget and “We are one with the President in ensuring that
Management on Saturday assured the public of we honor the taxpayers who make the national
the national government’s transparent utilization of budget possible. As what the President said, ‘Debt
the PHP5.768 trillion budget for 2024. is not the kind of inheritance we want for those
who will come after us. Good fiscal stewardship
The DBM shall continue to ensure "sound, imposes upon us discipline not to be led into the
efficient, and effective management and utilization temptation of bloating what we owe,’” she said.
of government resources to achieve our country’s
development goals,” Secretary Amenah Pangandaman also clarified that the
Pangandaman said in a statement. unprogrammed funds in the 2024 General
Appropriations Act are “standby appropriations”
To address concerns about fiscal prudence, distinct from the approved government fiscal
Pangandaman said the 2024 national budget program.
would continue to prioritize responsible debt
management, while supporting the country’s post- She said the unprogrammed funds for next will
pandemic recovery which is guided by the year would help the government address
Medium-Term Fiscal Framework (MTFF). unforeseen expenditures and prioritize essential
programs and projects.
She said there is a projected decrease in the
deficit from 6.1 percent in 2023 to a target of She noted that unprogrammed appropriations of
slightly above 5 percent in 2024, stressing that it the 2024 budget has built-in safeguards to prevent
demonstrates the Marcos administration’s unconstitutional spending.
commitment to fiscal consolidation over the long
term. The unprogrammed funds are not automatically
allocated and can only be released, if several
“Our MTFF started with a very high deficit, funding conditions are met, such as when the
exceeding 7 percent during the pandemic… We’re government, through the Bureau of the Treasury,
making steady progress, aiming to bring it down to is able to collect excess revenue or income
3 percent by 2028. Reducing the deficit translates beyond its initial projection, or should foreign or
to less borrowing, but responsible borrowing for approved financial loans or grants proceeds are
productive purposes remains crucial,” realized.
Pangandaman said.
Should there be excess revenues that may trigger
Pangandaman also echoed President Ferdinand the availability of the unprogrammed funds,
R. Marcos Jr.’s commitment to leaving a legacy government agencies are required to submit
that is “free of burdensome debt for future necessary requirements before given access to
generations.” the standby fund to ensure that spending stays
within legal limits.

Reference:
Gita-Carlos, R. A. (2023, December 23). DBM to ensure transparent use of 2024 budget |
Philippine News Agency. Philippine News Agency.
[Link]

Cash flow the biggest problem facing business during COVID-19

crisis
November 27, 2020

GENEVA (ILO News) – A new report on the were able to continue operating in some form
impact of the COVID-19 pandemic on businesses despite measures arising from government
shows that their greatest challenges have been restrictions. Eighty-five per cent had already
insufficient cash flow to maintain staff and implemented measures to protect staff from the
operations, supplier disruptions and access to raw virus.
materials.
Nearly 80 per cent said they planned to retain
With businesses already undergoing significant their staff – larger companies were more likely to
competitive pressure prior to the crisis, say this. However, around a quarter reported that
government restrictions, health challenges and they anticipated losing more than 40 per cent of
the economic fall-out brought by COVID-19 further their staff.
set back many enterprises.
Looking into the future, preparing for unforeseen
Interrupted cash flow was the greatest problem, circumstances and mitigating risks associated with
the survey found. More than 85 per cent reported a disruption of business operations is needed.
the pandemic had a high or medium financial Fewer than half the enterprises surveyed had a
impact on their operations. Only a third said they business continuity plan (BCP) when the
had sufficient funding for recovery. Micro and pandemic hit, with micro and small businesses the
small enterprises (those with 99 employees or least likely to have made such preparations.
fewer) were worst affected. Additionally, only 26 per cent of the enterprises
who responded said they were fully insured and
The survey, carried out by Employers and 54 per cent had no coverage at all. Medium-sized
Business Membership Organizations (EBMOs), enterprises, (those with 100 to 250 employees),
involved more than 4,500 enterprises in 45 were most likely to have full or partial coverage.
countries worldwide. EBMOs gathered data from
their enterprise members between March and Strengthening government support measures for
June 2020. The businesses were asked about enterprises are also vital for their recovery. Four
operational continuity, financial health, and their out of ten enterprises said they had no funding to
workforce. support business recovery while two-thirds said
funding was insufficient. Of the sectors analysed,
At that time, 78 per cent of those surveyed the tourism and hospitality sector, followed by
reported that they had changed their operations to retail and sales, were most likely to report funding
protect them from COVID-19, but three-quarters issues.

Reference:
Cash flow the biggest problem facing business during COVID-19 crisis. International Labour
Organization. (2024, February 1). [Link]
problem-facing-business-during-covid-19-crisis

Loyalty Landslide: US Consumers Demand More as Brand

Loyalty Declines

INDIANAPOLIS--(BUSINESS WIRE)--The shifting This represents a huge opportunity for brands. It is

tides of the US economy, the dynamic digital retail imperative retailers show customers they ‘get’
landscape and evolving consumer preferences them because even when inactive, consumers
could return to a brand once they can afford to do
are triggering seismic changes in brand loyalty.
so, as 18% agree that they no longer feel they can
SAP Emarsys – a global leader in customer afford to be loyal.
engagement for companies such as Gibson,
Puma and Pizza Hut – unveiled its findings from
In today's loyalty landscape, US consumers now
the 2023 Customer Loyalty Index, a
demand tangible rewards for their allegiance.
comprehensive study surveying more than 10,000 Discounts and deals work best when tailored to
individuals worldwide, with over 4,000 in the US. the individual, as 50% of respondents believe that
The report provides an in-depth perspective on having a loyalty card or account significantly
how consumers are engaging with brands and influences their spending with a brand.
their ever-evolving patterns of loyalty. Furthermore, 43% of US respondents anticipate
better prices as loyal customers, while 46%
In a year marked by global loyalty erosion, the US expect their loyalty to be rewarded by exclusive
experienced a 14% decline in customer loyalty, offers.
that is those who are loyal to one brand or more,
plunging from 79% in 2022 to 68% in 2023.
Achieving this level of customer devotion is made
possible with AI-driven technologies, empowering
Among the five loyalty types defined by the SAP retail marketers to gain precise insights into
Emarsys Customer Loyalty Index, for the third customer preferences, so they can deliver
year in a row, the majority (49%) of consumers fall perfectly timed and tailored experiences at every
under incentivized loyalty. However, incentivized touchpoint.
loyalty, has plummeted 36% from 76% to 49%.
“Loyalty isn't just a metric; it's the foundation of a
The decline in those attracted by incentivized brand's success. We work together to empower
loyalty in 2023, may seem contradictory, but businesses with the insights and tools they need
incentivized loyalty depends on the suspension of to connect with customers on a personal level, to
normal prices. Incentivized loyalty is fleeting, and make them feel valued and heard. In this dynamic
while 49% of Americans expect regular discounts, digital retail landscape, we aim to help brands
loyalty points and incentives, 59% of consumers build lasting relationships with their customers,
would also typically switch products if a cheaper ensuring they are rewarded with tailored, value-
option were available, making cost the top reason adding experiences at every touchpoint. True
a shopper would leave a brand. customer loyalty is not just a goal; it's the path to
sustainable success in an ever-changing market."

Reference:
Loyalty landslide: US consumers demand more as brand loyalty declines. Business Wire. (2023,
October 17). [Link]
Landslide-US-Consumers-Demand-More-as-Brand-Loyalty-Declines