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Ayala Group announces purchasing agreement with El Nido farm cooperatives

THE AYALA GROUP will buy fresh vegetables from a cooperative in El Nido, Palawan with a view towards possibly supplying its resort network in northern Palawan, the Department of Agriculture (DA) said on Wednesday.
The DA, in a statement, identified the cooperative as Asosasyon ng mga Mangingisda at Magsasaka ng Munisipyo ng El Nido, Palawan, Inc. (AMMMEPI) with the partnership also aiming to revive the agriculture industry in El Nido.
The vegetables covered by the deal are bitter gourd (ampalaya), squash, okra, eggplant and string beans.
The Ayala Multi-purpose Cooperative (AMPC) also lent P250,000 in working capital at a 1% interest rate, payable quarterly over two years.
“Very soon the farmers’ co-op might supply vegetables to the Ayala hotels and resorts if the vegetables meet quality standards,” Lourdes B. Orosa, General Manager of AMPC, was quoted as saying in the DA statement.
Ayala Land Inc. unit El Nido Resorts group manages properties in northern Palawan include locations in El Nido and Taytay municipalities. The Ayala Land website lists the properties as Miniloc Island Resort, Lagen Island Resort and the newly-opened Pangulasian Island Resort in El Nido, and Apulit Island Resort in Taytay.
The DA said its local office assisted the co-op in organizing a harvest festival for Ayala Group under the department’s High-Value Crops Development Program. — Reicelene Joy N. Ignacio

House committee approves tax measures on passive income

THE HOUSE WAYS and Means Committee on Wednesday approved the bill simplifying the tax regime for financial investors, which forms part of the government’s comprehensive tax reform program (CTRP).
After a fourth deliberation, the unnumbered Substitute Bill, which proposes to be the ”Passive Income and Financial Intermediary Taxation Act of 2019,” which proposed to a flat rate of 15% on dividend income, among others, cleared the panel in less than 10 minutes.
Committee chair Estrellita B. Suansing of the 1st district of Nueva Ecija said she targets plenary approval of the bill ahead of the congressional break on Dec. 14.
“I am suggesting a plenary next week, so we can finish before the Christmas break,” Ms. Suansing told reporters in a chance interview after the meeting.
The committee also approved a measure increasing the excise tax on alcohol products while the chamber approved on third reading the Tax Amnesty Bill.
The final version of the substitute bill removed the 1,000-member requirement for collective investment schemes (CIS), which are entitled to tax exemptions in the measure.
“There was an agreement to keep the 1,000 participant requirement for a collective investment scheme to be exempted. We proposed to altogether remove that requirement which may be difficult to achieve,” Finance Undersecretary Karl Kendrick T. Chua said.
The bill defined a CIS as “an arrangement whereby funds are solicited from the investing public and pooled together for the purpose of investing, re-investing, and/or trading in securities or other assets.”
The measure previously provided an exemption for a CIS from the 5% gross receipts tax, other percentage taxes and value-added tax imposed under the National Internal Revenue Code, only if it gathers at least 1,000 members.
The DoF also proposed to reinstate the documentary stamp tax on certificates, which the committee deleted during the technical working group meeting.
“This includes all types of certificates and it is a major revenue source, as a way to offset the first proposed removal of the 1,000 exemption, we proposed to reinstate but instead of P50 we can lower to P40 per certificate,” Mr. Chua said.
The present system imposes a P30 documentary stamp tax on certificates, which include certificates or documents issued by customs officers, marine surveyors, and notaries.
Among the key provisions of the measure is a flat rate of 15% on interest on certain passive income as well as on cash and/or property dividends of individuals, who are currently levied 20% and 10%, respectively.
The same 15% rate will also be levied on interest on certain passive income of domestic corporations, down from the current 20%.
A 15% rate will also be imposed on the net capital gains for the taxable year on the sale of stock not traded on the Stock Exchange or any registered and licensed organized market. The rate covers both individuals and domestic corporations.
The Code currently imposes a 10% rate on net capital gains of more than P100,000 and 5% on gains less than P100,000. — Charmaine A. Tadalan

Plan ahead for a Merry Christmas

So much had been speculated and observed as to the effect of Republic Act 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act, on inflation and the cost of basic commodities since it took effect this year. The lack of safety nets to counter the effects of inflation has been the source of much negative comment.
The positive impact of TRAIN on our wallets may only be a “pass-through” as prices of basic commodities and an unpredictable stock market continue to drain us financially, physically and mentally.
But wait! The TRAIN’s impact is not yet over as the close of the calendar year is barely five weeks away. Employers and employees may need to revisit how TRAIN could impact their most common concern at year-end — the annualization of withholding tax on compensation.
WHAT IS ANNUALIZATION?
Annualization is the process of determining the annual income tax due based on the total compensation earned, less all non-taxable earnings, including those from previous employer/s, taking into consideration the amount of taxes withheld, in order to arrive at the adjusted withholding tax due at year-end or as of Dec. 31.
WHAT ARE THE THINGS TO CONSIDER DURING ANNUALIZATION?
• BIR Form 2316 from previous employer
Employees with previous employers should provide their BIR Form 2316 from their previous employer to their current employer. Why? Because the current employer is required to consolidate the earnings from the previous and current employers for proper annualization of total earnings and taxes due for the calendar year.
This will also serve as reference in determining whether or not the employee has exhausted the P90,000 threshold for non-taxable 13th month pay and other benefits.
• Completion and implications of substituted filing survey
Section 51-A of the TRAIN provides that “individual taxpayers receiving purely compensation income regardless of amount, from only one employer in the Philippines for the calendar year, the income tax of which has been withheld correctly by the said employer (tax due equals tax withheld) shall not be required to file an annual income tax return. The certificate of withholding filed by the respective employers, duly stamped “received” by the BIR, shall be tantamount to the substituted filing of income tax returns by said employees.”
Substituted filing applies only to individuals who meet the above conditions, and whose spouse also complies with all the same conditions, or otherwise receives no income.
It is important to identify those employees qualified for substituted filing because there is a requirement to indicate in the alphalist whether or not an employee is qualified for substituted filing.
Those tagged as not qualified for substituted filing will be required to file personal income tax returns (BIR Form 1700 0r 1701, whichever is applicable) by April 15 of the following year.
When consolidating his earnings and taxes as indicated in the BIR Form 2316 issued by his respective employers for the year, the employee may note having a tax liability on his annual income tax return. Such tax liability can be settled by the employee on installment basis, i.e. the first 50% by April 15, then the next 50% by October 15, as provided in Section 56(A)(2) of the TRAIN.
Should the employee fail to file, this would be considered as non-compliance on the part of the employee and not of the employer.
OTHER EMPLOYER CONSIDERATIONS
• Impact of group health insurance per Revenue Memorandum Circular (RMC) 50-2018
The BIR issued RMC 50-2018 which provides clarifications on certain provisions of Revenue Regulations 8-2018 and 11-2018 implementing the Income Tax provisions of the TRAIN. One of the major concerns is the taxation of group health insurance paid by the employer for his employees. The RMC provides that “premium on health card paid by the employer for all employees, whether rank and file or managerial/supervisory, under a group insurance shall be included as part of other benefits of these employees which are subject to the P90,000.00 threshold. However, individual premiums (not part of group insurance) paid for selected employees holding managerial or supervisory functions are considered “fringe benefits” subject to fringe benefits tax”.
As of this time, there is no further clarification issued by the BIR on the said provision. Since employers are required to comply with the existing rules, this would mean additional taxable income on the part of the employee if the employee has exhausted the P90,000 non-taxable threshold.
• Issuance of BIR Form 2316 for taxable year 2018
As of this writing, the BIR has not issued any advisory on whether or not they will update the said form. It is hoped that the BIR will provide this soon so employers and tax practitioners will have ample time to study how to accomplish the form and to update their systems.
WHAT CAN EMPLOYERS DO TO REDUCE THE TAX IMPACT ON EMPLOYEES AT YEAR-END?
Most employers do interim annualization to project the annual tax due of their employees. Such a practice aids their employees in managing their Christmas holiday cash flow as well as the remittance of their taxes by spreading out the tax deductions/payments equally over the last two (or three) months of the year. Some employers remit these taxes in advance for the employees and eventually recover as a deduction in the succeeding payroll.
Whatever practice is being implemented by employers, it should be properly communicated to employees to manage expectations. Good employers plan ahead so that employees will have enough take-home pay during the most festive holiday of the year, and enjoy a Merry Christmas.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Bernadette R. Fama-Absolor is a Manager at the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.
+63 (2) 845-2728
bernadette.r.fama@ph.pwc.com

Where to with IKEA, China?

Of the business developments in the last two days, what stand out — at least, in my opinion — are the commitment of furniture manufacturing giant IKEA to invest initially about P7 billion in putting up a Philippine store; and the government’s signing of more than 20 agreements with the People’s Republic of China on the occasion of the state visit of Chinese President Xi Jinping.
Between the two deals, many pundits will claim the IKEA investment is definite, with a local store set to open by 2020, while the China agreements are perhaps just a few notches above lip service. The latter, after all, are mostly Memoranda of Understanding, which may or may not result in actual or concrete investments or assistance from China in the future.
While these two developments appear independent of each other, I view them as intricately linked — with China as the common denominator — with respect to overall implication for the future of Philippine trade. China trades with its West by looking to its East, and we are smack in the middle of that. Meanwhile, we trade with Europe by looking to the West, and China is there in between. This, I believe, is a situation that we should exploit to our advantage.
The IKEA investment in a new store in the Philippines, touted to become the brand’s largest in the world in terms of size, may just be the start. That P7 billion investment, in dollar terms, is roughly $135 million. This is not really much, considering that it also includes “inventory” for the new store. The Philippines’ aim, in my opinion, should go beyond leased area and retail, and actually encourage IKEA to manufacture in the country.
This is for the simple reason that our people need work. And for what is touted to be a large investment, IKEA’s P7 billion is forecast to create only about 500 new jobs, and I guess consisting mostly of sales people and material handlers. Although the company also claims its investment will create spin-off jobs and business opportunities in logistics, food supply, transport, waste management, and security.
Long term, China can play a role in this, if its agreements with the Philippines can bear fruit. For one, a successful joint venture on oil and gas development between the Philippines and China can result in lower energy costs, which in turn can encourage more manufacturing; while successful cooperation in information and communication technology can boost e-commerce.
Successful infrastructure cooperation between the Philippines can also lead to new rail lines and thus boost logistics, while a joint project for industrial park development can provide for suitable locations for manufacturing facilities. In fact, it can make sense for IKEA to move some manufacturing in China to the Philippines, to bring products closer to the Southeast Asian market.
As of a year ago, IKEA reportedly owned and operated 415 stores in 49 countries, selling about 12,000 products. Its biggest market is reportedly still Germany, with 53 stores, and then the US, with 50 stores. It opened its first store in India last August, and it reportedly sees India as becoming its largest market in the future. Although the Philippine store that is opening in 2020 is still expected to be the largest in terms of size, so far.
trade
But targeting manufacturing — more than retail — is crucial to us. IKEA products are designed in Sweden, but they are all mostly made abroad, particularly in developing countries where costs are lower. A subsidiary in Southern Poland reportedly manufactures the wood-based products, but the particle boards used in production are supplied solely by a factory in Southern Sweden. To date, IKEA reportedly has over 16,000 employees across 50 sites in 10 countries to manufacture the 100 million pieces of furniture that it sells annually.
We need to become an IKEA manufacturer. In fact, we need to significantly boost manufacturing and industry if we want to sustain the economy’s growth and continue to provide for a growing population that is now over 100 million Filipinos. Investments from China and other foreign partners will play a big part in improving the countries’ capabilities in attracting business like IKEA to make products here.
I am uncertain how much IKEA produces in China, and how much of its Chinese production is exported abroad. But, about five years ago, one business report indicated that IKEA’s Chinese manufacturing produced mostly for the Chinese market. At the same time, to remain competitive in China, IKEA has had to rely on local sourcing to cut costs and sell at prices lower than in other markets. In this line, I am uncertain if manufacturing in China will be sustainable for them.
A recent report from CNN Business also indicate that IKEA is now under fire in China “for how it describes Taiwan, making it the latest in a string of global brands that have fallen foul of Beijing’s political sensitivities.” The public as well as state media have reportedly taken issue with IKEA packaging “that appeared to suggest that Taiwan is a separate country.” Given such non-business issues, perhaps it can consider doing some manufacturing here.
Meanwhile, we should also start exploring more products that can be made here and can be sold to China — either as raw materials, intermediate goods, or finished goods — that can eventually make their way to Russia and Europe. China is now our Asian gateway for these markets, and we should take advantage of our relations with Beijing to tap them. We need to get our goods into the high-speed train system that has been built that runs from China to Russia and Germany and back.
Two rails run the China-Europe route, running from Zhengzhou in Eastern China and through Central and Western China, and into Kazakhstan and Russia, and all the way to Poland and then Germany, particularly to the port city of Hamburg. Strong cooperation between Deutsche Bahn AG and China Railways starting 10 years ago has made this possible.
The two main rail lines are used by DB Schenker for freight, and are forecast to have carried around 90,000 containers between China in Europe this year. The project, reportedly the longest train connection in the world at 10,000 kilometers, started in 2008. Since then, freight has significantly risen in the last two years from 30,000 containers in 2016 and 80,000 containers in 2017, to 90,000 containers in 2018.
This train connection can now allow the Philippines and other Southeast Asia-based manufacturers to ship goods to China, which can then travel by land on rail — instead of mostly by sea — from China all the way to Poland and Germany. The freight rail is comparable to the ancient Silk Road that connected the East to the West.
For companies like IKEA that design in Sweden and manufacture in Poland, and with the biggest number of stores in Germany, this rail connection from Europe to China and back can provide a number of logistical and market advantages. The same with producers in the Philippines and other parts of Asia, but only if these see value in boosting relations with the “Middle Kingdom.”
 
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.
matort@yahoo.com

Please mind the curriculum gap

The ongoing academic year 2018-2019 is critical for Philippine higher education institutions as it is when they have to admit the pioneer batch of senior high school (SHS) graduates under the K-12 basic education reform program of the Department of Education (DepEd) into college. According to DepEd, of the more than 1.2 million graduates from public and private SHS’s in 2018, twenty-five percent (25%) or 300,000 learners will be able to obtain a college degree in the next four to five years. Factoring in the college completion rate of 30% as per Commission on Higher Education (CHEd), we are talking about 1 million (300,000/30%) learners entering college this year.
Reflecting on the situation, I could not help but ask, “How would these learners be any different from their predecessors? How would our newly minted college curriculum be more sensitive to what these learners bring and need?”
I am writing from the perspective of an accounting teacher who has handled classes in both SHS (the first and second batches) and college (intakes from the first batch of SHS graduates). In addition, I have conducted certification visits to feeder SHS’s of our university. Needless to say, my views are directed at the Accountancy, Business, and Management (ABM) strand of the academic track.
The main motivation behind this education reform is to ensure that graduates of our basic education system are at par with global standards. In more practical terms, the shift to K-12 aims to provide graduates with life skills in dealing with changes brought about by globalization, regulation, and technology. The reform is supposed to result in graduates who are prepared to analyze and solve problems, respond and adapt to changes, and internalize and live by the learning skills.
An important component of program management is monitoring and evaluation. DepEd Secretary Leonor Briones announced in July the plan to review the K-12 curriculum after two years of implementation. Responsive to feedback being received from the public, DepEd also welcomes inputs about the curriculum content.
Pondering upon the questions I posed earlier and appreciating the openness of DepEd to feedback have made me more enthusiastic about demystifying the concept of curriculum gap on this respect. Technical and complex as it may seem, the gap can be broken down into three sub-gaps: what to teach, how to teach, and whom to teach. For this article, I intend to delve on the first sub-gap, what to teach. Essentially, should shortcomings surface from this sub-gap, the learners are not to be blamed at all as this article focuses on content or subject matter.
The first shortcoming is the non-inclusion of basic partnership and corporation accounting in the curriculum. The non-inclusion is an oversight as this topic is necessary for learners to understand better financial statement analysis, which are covered in both Fundamentals of Accountancy, Business and Management 2 (FABM2) and Business Finance courses.
The second shortcoming is the non-inclusion of basic manufacturing accounting in the curriculum. This topic is integral for learners as they complete their capstone projects, which are usually on production of goods for sale.
The last shortcoming is the marginal regard for taxation, which was included only as a topic in FABM2. This topic may be enriched in college, but a deeper appreciation for preparing tax returns and eventually paying them early on is vital to honing responsible and honest business owners and taxpayers.
One suggestion to remedy the first two shortcomings is to re-plot the distribution of topics in FABM1 and FABM2. In line with outcome-based education, this may mean focusing on salient differences among basic financial statements of businesses according to activity (service, merchandising, and manufacturing) and according to ownership (sole proprietorship, partnership, and corporation).
The third shortcoming may be addressed by creating an additional basic course on regulatory requirements, which may include business permits, income and business tax returns, and remittances of mandatory payroll deductions to appropriate agencies.
Finally, I strongly suggest that DepEd create an alignment committee, with members representing entrepreneurs, the Bureau of Internal Revenue, the accountants, and the academe (SHS and college) to complement its own review process.
For now, let us be constructive in floating critical issues and providing creative recommendations concerning K-12 implementation. At the end of the day, we are all one in this noble endeavor of minding the curriculum gap.
 
Dr. Florenz C. Tugas is a full-time faculty member of the Accountancy Department of the Ramon V. Del Rosario College of Business of De La Salle University. He specializes in Basic Accounting, Auditing and Assurance, and Management of Information Technology courses
florenz.tugas@dlsu.edu.ph

Can a candidate be sold like a product?

By Tony Samson
THERE is a school of marketing that believes that a political candidate is no different from a can of sardines or a shampoo. It’s just another product to be sold. In a 1969 book on the 1968 US elections, author Joe McGinniss exposed the Madison Avenue techniques used to successfully push the election of the already once-defeated Richard Nixon as president. Since then advertising types and market researchers/pollsters have jumped into the political process.
The brand manager can offer segmented products using different selling propositions addressed to the mass market or the high-end counterpart, as in selling condos. There are cabinet-sized spaces near cemeteries (a quiet neighborhood) and two-floor units in plush zones with an atrium for the chandelier (it fits your image).
Can politicians also adjust their messages according to the audience?
The varying messages employed by advertising types to target different segments of the market, in terms of socio-economic clusters or lifestyle categories (single moms with one child), can be perceived in a political context as pandering to different groups. What results is the image of a dissembling candidate who has no real stand on any issues, and just trying to delight different sets of customers…like a stand-up comedian.
If product marketing has now embraced social media, should its political equivalent be left behind? The digital missionary will tell his client candidate that the world belongs to the “millennials” and that the median age of this country is 23 years old. This segment, the voting population from 18 to 28 years old, comprises 70% of the voters. (Who checks these statistics?)
It is perhaps a culture shock for the wizened political handlers to sit still for the slide presentation of one, who just started shaving, promoting a digital approach to campaigning. He refers to bloggers and “brand ambassadors,” and letting messages be defined by the community. This crowd-sourcing of desired product attributes is how digital marketers like Trivago with its consumer reviews of hotels, restaurants, and destinations have quickly replaced the travel agents. Is this the way to go in selling a candidate?
The reason why traditional political handlers balk at the digital approach is its cheekiness and air of certitude — really, you can deliver 8 million votes using this approach? Yes, sir, if they will all register and bother to vote. We are not sure of their passion.
The digital missionary explains the characteristics of the 18 to 28, maybe stretching to 33-year old millennials. Remember, this is the 70% chunk mentioned before — are you paying attention, Sir? She (we only use this gender for convenience, and there are more women in the demographics) has a very short attention span (six seconds). She only stays connected when she’s interested in a topic. She doesn’t even watch TV or read the printed newspaper. (You need to understand your voter, Sir.)
One difference between a product and a candidate is the role of the consumer. In the case of the product, it is the seller who gets money from the consumer. In politics, the product and the buyer switch roles. Guess where the flow of money starts and ends — from the product to the customer. Please don’t call it vote buying. It is now called “incentivation.”
The candidate and his handlers may feel more comfortable with the traditional approach, like dynasty politics, which still works. (As Arnold S, the Terminator, puts it — I’m old but not obsolete). This entails going to wakes, organizing meetings, and giving out T-shirts. But the candidate may put some money too on the digital side, just to keep up. But which option should weigh more?
Good advertising for a bad product can doom its prospects by enticing more customers to use the product and be disappointed or even infuriated with its consumption. When a bad candidate wins because of good marketing and a compelling brand promise (he will solve EDSA traffic), there is no opportunity for a refund or an exchange because of a bad fit or a torn pocket.
Thankfully, for the politician, the product may already be well known with a high profile on his past achievements or lack thereof. As they say in sales — caveat emptor. The buyer must indeed be wary of a candidate who insists — that’s all history now, let’s just move on. Okay, hold on, what other products are on the shelf?
 
A.R. Samson is chairman and CEO, TOUCH xda.
ar.samson@yahoo.com

Hubris is an ever-present risk for high-flying chief executives

The Editorial Board
Financial Times
A LEADER’S MOMENT of exit is crucial, Carlos Ghosn told the Financial Times in June, because it carries a message.
On Monday, Nissan, the Japanese car maker he once helped to rescue, abruptly accused him of “numerous . . . significant” acts of misconduct, including personal use of corporate assets and understating his pay. Tokyo prosecutors arrested him. The company said it would propose stripping the multinational executive of his chairmanship at a board meeting on Thursday.
Mr. Ghosn has not yet commented on the allegations but, whatever the eventual message of his exit, it will not be the one he wanted to send.
Mr. Ghosn’s reputation as the ringmaster of a tripartite worldwide automotive alliance between Nissan, Mitsubishi and Renault, where he is still chief executive, may now be irreparably damaged. The alliance itself, for which he provided the leadership glue, is under threat.
The executive’s fall from grace in Japan is particularly vertiginous. In the 1990s, he restructured Renault, earning the nickname “le cost killer.” He took the same techniques to ailing Nissan in 1999, winning applause from the Japanese, who celebrated his success with everything from a manga comic about his life to a bento — or packed lunchbox — in the shape of his face.
Colorful detail aside, though, Mr. Ghosn’s trajectory resembles that of many high-flying business leaders, for whom hubris is a constant threat. His descent indicates that the flight path of the jet-setting, globetrotting corporate leader has peaked, as barriers to world trade go up and popular tolerance of their pay, perks and lifestyle declines.
This is not to underestimate Mr. Ghosn’s initial success or his phenomenal skills as an executive. At a late-night press conference in Tokyo on Monday, Hiroto Saikawa, who took over from him as Nissan chief executive last year, drew a line under the Ghosn era. Even he conceded, though, that Mr. Ghosn had “done what not many other people could have done,” especially in the first stages of Nissan’s turnaround.
Understandably, shareholders and board members often join in such early acclaim for talented executives. As a result, though, many leaders draw an erroneous conclusion: that they are infallible or irreplaceable.
The strains of doing business across continents are alleviated by high pay and privileges, such as use of private jets and luxury accommodation. Dangers arise when leaders start to take those perks for granted. They untether from the communities where their companies are located, and float off in a gilded bubble with other similarly cocooned magnates. When the bubble bursts, the fall is particularly hard for those chief executives who were merely hired hands, such as Mr. Ghosn, rather than entrepreneurs or founders.
Like political lives, many executives’ careers end in failure. Those who over-extend their tenure are often prone to stumble in their last years in office. The intense focus on pay — a lightning rod for criticism of Mr. Ghosn — adds pressure for listed company executives to perform. Mr. Ghosn seemed to be doing some of the right things to cushion a hard exit. He had handed over to Mr. Saikawa at Nissan, and this year appointed a chief operating officer at Renault to allow him to concentrate on managing the alliance with Nissan and Mitsubishi.
Financial Times (FT) logo
In the end, though, Icarus-like, he may have flown his corporate jet too close to the sun. For chief executives who move in the same circles and who seem never to touch down, Mr. Ghosn’s fate sends an important warning that they had better come down to earth.

Former home Perpetual Help lauds Bright Akhuetie for UAAP MVP win

By Michael Angelo S. Murillo
Senior Reporter
WHILE no longer playing under their wings, the Perpetual Help Altas still support Nigerian player Bright Akhuetie and congratulate the latter for his impending most valuable player award in the University Athletic Association of the Philippines.
Left the Altas at the end of Season 92 of the National Collegiate Athletic Association to play in the UAAP with the University of the Philippines Fighting Maroons, Akhuetie is still appreciated by Perpetual Help, whom he helped to two Final Four appearances in his three seasons with the Las Piñas-based school.
“We congratulate our former Perpetual Help student and player Bright Akhuetie for his accomplishments,” said NCAA and Perpetual Help president Anthony Tamayo in a statement.
Akhuetie, who is playing in his first year with UP after serving residency for a year, has averaged 18.9 points, 14.6 rebounds, 2.8 assists and 1.1 steals in the ongoing season of the UAAP while helping the Maroons reach their first Final Four appearance after a two-decade drought.
The Nigerian collected 82.5 total statistical points, beating Ange Kouame of defending champions Ateneo Blue Eagles who finished with 76.21 SPs.
Akhuetie and the Maroons are to play the Adamson Soaring Falcons in the Final Four beginning on Saturday.
THIRD MVP
While happy for Akhuetie and proud of what he has accomplished outside Perpetual Help, the Altas also underscored that he is the third MVP that came out of the school’s basketball program.
Akhuetie joins former teammate Prince Eze and Scottie Thompson as NCAA MVP winners.
Eze was adjudged the top player in the just-concluded Season 94 of the NCAA while the now-professional Thompson won his in Season 90 of the countries longest-standing collegiate league.
Mr. Tamayo said their players’ success was attributable to the school’s ever-evolving basketball program.
He went on to say that they hope to build on the season they just had under coach Frankie Lim, where they were able to return to the Final Four.
“The team overachieved this season and we are optimistic we will continue to improve and hopefully win our very first senior basketball championship,” said Mr. Tamayo.

UFC seeks to complement growth in Asia with China performance institute

HAVING successfully grown its business in Asia throughout the years, the Ultimate Fighting Championship is out to enhance its ascent further with the establishment of a performance institute in China.
To rise in Shanghai, the UFC Performance Institute, expected to open in the second half of 2019 and the second of its kind in the world after the original institute in Las Vegas, is designed to bring the UFC to more people in Asia, be they athletes or fans, officials said.
Officially announced by the globally known promotion on Tuesday, the UFC Performance Institute Shanghai will serve as a training hub to develop and support mixed martial arts athletes from mainland China and the greater Asia-Pacific region, including the Philippines.
The UFC will also utilize the building as its headquarters in Asia, housing UFC employees and UFC Performance Institute staff, including experts in the fields of MMA, strength and conditioning, sports science, physical therapy, and nutrition.
The facility will also have built-in advanced production capabilities with spectator seating that will allow the UFC to produce and distribute live events and other original programming.
Additional features of the institute will include hospitality suites, dining, retail services, and a fan experience area. When completed, the multimillion-dollar facility will span more than 93,000 square feet, approximately three times the size of the original UFC Performance Institute in Las Vegas.
Speaking to BusinessWorld prior to the announcement of the establishment of the UFC Performance Institute Shanghai, Kevin Chang, UFC Vice-President of Asia-Pacific, said that considering how the UFC brand is being received in this part of the world, the setting up of the facility is a logical next step for them.
“Commercially we have had success here. Our business has grown and we continue to grow as a brand. Our fan base has grown and all indicators such as engagement on social media, viewership level and attendance in our events point upwards. And we believe this is the best time to build something like this. We hope for this to benefit the entire region in establishing a clear path for people to the UFC,” Mr. Chang said.
“The Institute should help MMA athletes bridge the gap for them to go to the next level and progress to their goals of making it to the UFC,” he added.
The UFC official went on to say that Filipinos are among the markets they hope would tap into the establishment of the institute as the Philippines is a place that is important for the UFC.
“The Philippines is one of our important markets in Asia given how passionate the fan base is there for combat sports in general and, recently, mixed martial arts in the UFC. What we really know that will set it on fire is having that transcendent athlete from the Philippines to have a lot of success. That’s not rocket science. It’s just a fact at the end of the day,” Mr. Chang said.
“We do have Filipino athletes competing in the UFC and this institute is for UFC athletes as well, much like that in Las Vegas where UFC athletes can use it. We know that there are still a lot athletes there who can benefit from this,” he added.
Expecting the MMA ecosystem in Asia to grow even further with the UFC figuring in it, Mr. Chang said it is possible that similar institutes could rise in other parts of Asia down the line even as he reaffirmed their commitment to the region with more engaging offering.
“Absolutely. All of those things are possible. We have our original performance institute in Las Vegas. This is only the second such institute and sure there are plans to replicate such as we continue to expand globally,” he said.
The UFC opened the first UFC Performance Institute in Las Vegas in 2017 as the world’s first MMA multidisciplinary research, innovation, and training center. Through the first 17 months of operation, over 400 athletes on the UFC roster have utilized the facility and the services provided remotely. In addition, several dozen National Football League, National Basketball Association, National Hockey League, Major League Baseball and Olympic sports athletes have visited the facility for support during their off-season training. — Michael Angelo S. Murillo

MPBL: Davao Occidental Tigers extend winning streak to nine

DAVAO Occidental, a team from down south in the MPBL Datu Cup, has joined the mix of championship contenders.
For nine straight games, the Cocolife-backed Tigers were able to dispatch their opponents to vault their way to the top capped by their latest 93-68 demolition of the Zamboanga Valientes-Family’s Brand Sardines Tuesday night.
Davao Occidental’s victory over Zamboanga enabled the team to improve to 11-3 mark to lead the pack in the southern division of this tournament put up by Senator Manny Pacquiao with PBA legend and member of 40 Greatest Players Kenneth Duremdes serving as the commissioner.
So steady were the Tigers that they were able to shoot 50% from the field (39-of-78). They were also more active in getting the rebounds as they clobbered the Valientes in the battle of the boards, 53-30. Davao Occidental unleashed its superiority by playing better as a team, dishing out 13 more assists than Zamboanga, 29-16.
Davao Occidental’s surge was led by veteran Mark Yee, the former PBA player, who is also one of the prime candidates for this season’s MVP award. The journeyman had a another double-double effort of 25 points and 12 rebounds.
The Tigers may be sitting comfortably at the top of the standings, but survival is the name of the game for the Classic of Valenzuela, which hammered out a 78-64 triumph over struggling Mandaluyong.
The host team posted its first back-to-back victories since Eric Samson took over as mentor of the Classic, who now improved their win-loss record to 6-9.
Chris de Chavez caught fire, hitting 20 markers highlighted by a steady six-of-10 shooting from the three-point region to lead the way for the Classic, who led by as many as 22 points, 65-43. — Rey Joble

Tata Steel India

Back in the 1980s there was a big push to promote rapid chess events all over the world and Yasser Seirawan’s “Inside Chess” publication even took it upon itself to administer rapid ratings in the United States. This was in addition to the World Blitz Chess Association (WBCA) of GM Walter Shawn Browne. What is the difference between “Rapid” and “Blitz”? Surprisingly a lot of people do not know the demarcation point at which a game becomes either rapid or blitz. For example, what is the classification of a 15-minute game? Take note that the rules for over-the-board games are not the same as in online chess. We will confine our discussion today to over-the-board.
According to FIDE, Rapid chess is when the total time per player for a 60-move game must be more than 10 minutes but less than 60 minutes. For the FIDE World Rapid Championship, each player will have 15 minutes, plus 10 seconds additional time per move starting from move 1.
Blitz chess is when the total time per player for a 60-move game must be 10 minutes or less. For the FIDE World Blitz Championship, each player has three minutes, plus two seconds additional time per move starting from move 1.
Let’s go through some examples. A five-minute game is of course blitz while a five minute + five second increment is still blitz. Going through the numbers, five-second increment over a 60-move game comes up to 300 seconds or exactly five minutes. Five minutes + total five-minute increment over 60 moves equals exactly 10 minutes, which is the upper limit of a blitz game.
More than that, for example five minutes + six seconds, already falls under the realm of Rapid Chess.
After an initial surge of popularity the momentum did not quite carry and both “Inside Chess” and WBCA experienced financial difficulties and folded in the 1990s.
That was then, this is now. Rapid and Blitz chess are currently experiencing a resurgence and even have their own ratings now.
Some people think that the biggest reason for the new interest is that FIDE has started rating games in these new time controls but I do not agree. I think that the biggest reason is the QUALITY of the games.
Back in the early days the greatest compliment that could be paid to a rapid game was that its quality was almost like that of a regular tournament game. Well, it is true that when the time remaining falls to the last minutes a lot of slamming (of pieces) and banging (of clocks) occurs and it becomes a matter of whose flag falls first and not whose moves are better. However with the introduction of Fischer clocks in the 1990s with their time increment added after every move the result of the game becomes less random — the players now have time to think a bit before executing their moves.
Of course, this is to say nothing about the rise of computers and chess databases and that nowadays players can zip through the first 20-25 moves in under a minute.
The Tata Steel Group of India has lately organized the first super-tournament in many years in India and it is a five-day speed chess event — three days for the rapid portion (3 games per day for a total of nine games) and two days for the blitz (total of 18 games). Here are the results.

Tata Steel Rapid
Kolkata, India
November 9-11, 2018

Final Standings

1. Hikaru Nakamura USA 2844, 6.0/9

2-3. Pentala Harikrishna IND 2743, Levon Aronian ARM 2802, 5.5/9

4-5. Wesley So USA 2808, Shakhriyar Mamedyarov AZE 2794, 5.0/9

6. Sergey Karjakin RUS 2792, 4.5/9

7-8. Viswanathan Anand IND 2737, Vidit Santosh Gujrathi IND 2660, 4.0/9

9. Nihal Sarin IND 2127, 3.0/9

10. Surya Shekhar Ganguly IND 2608, 2.5/9

Time Control: 25 minutes for the entire game with 10 seconds added to your clock after every move starting move 1.
The Rapid portion was scheduled for three games a day. Hikaru Nakamura drew all his games in the first day, won all three of them in the second, and then drew all of his games in the third to capture first.
Wesley So came in fourth with a steady two-win one-loss six draws. Here is his best game.

So, Wesley (2808) — Vidit, Santosh Gujrathi (2660) [B33]
Tata Steel Chess India 2018 — Rapid Kolkata (5.3), 10.11.2018

1.e4 c5 2.Nf3 Nc6 3.d4 cxd4 4.Nxd4 Nf6 5.Nc3 e5 6.Ndb5 d6 7.Bg5 a6 8.Na3 b5 9.Nd5 Be7 10.Bxf6 Bxf6 11.c4 b4 12.Nc2 0 — 0
Black used to defend the b4 — pawn with either 12…a5 or 12…Rb8, but why defend the pawn at all? After 12…0-0 13.Ncxb4 Nxb4 14.Nxb4 Qb6 Black wins back the pawn with no problems.
13.h4 a5 14.g3 a4 15.Ndxb4 Nxb4 16.Nxb4 Qa5
A good candidate move is 16…Qb6 17.a3 Bd8! 18.Bd3 Qb7 19.0 — 0 Bb6 Black has good compensation with outposts for his bishops at d4 and h3. Sikula,V (2520) — Konnyu, J (2375)/Hungary 2010.
17.Qd2 Rb8 18.a3 Be6 19.0 — 0 — 0 Rfc8 20.Kb1 Qa8 21.f3 Be7 22.Bh3 Rxc4 23.Bxe6 fxe6 24.Rc1 Rbc8 25.Rxc4 Rxc4 26.Rc1 Qc8 27.Rxc4 Qxc4 28.Qd3 Qc5
[28…Qxd3+ 29.Nxd3 plays into White’s hands as the a4 — pawn is now a glaring weakness].
29.Ka2 Kf7 30.Qa6 d5? <D>
POSITION AFTER 30…D5
[30…Qe3 keeps the balance]
31.Nc6!
Apparently overlooked by Black who probably expected only 31.Qxa4 dxe4 32.fxe4 Qc4+ and Black holds the balance.
31…Bf6 32.Qxa4
White gets to keep his extra pawn.
32…Kg6 33.Na5 Kh6 34.Nb3 Qf2 35.g4 Qxh4 36.Qc6 Qf2 37.Qxe6 dxe4 38.Qf5 Bg5
[38…Qxf3 39.Qh5#]
39.Qxe4 g6 40.Qa8 Bf4 41.Qf8+ Kg5 42.Qd8+ Kh6 43.Qd5 Kg5 44.a4 h5 45.Qd8+ Kh6 46.g5+ Kh7
[46…Bxg5 47.Qh8#]
47.Qe7+ Kg8 48.Qe6+ Kg7 49.Qf6+ Kh7 50.Qf7+ Kh8 51.Qxg6 Qxf3 52.Qe8+ Kg7 53.Qe7+ Kg8 54.g6 Qd5 55.Qh7+ 1 — 0

Tata Steel Blitz
Kolkata, India
November 13-14, 2018

Final Standings

1-2. Viswanathan Anand IND 2786, Hikaru Nakamura USA 2893, 12.5/18

3. Levon Aronian ARM 2854, 12.0/18

4. Wesley So USA 2771, 10.0/18

5-7. Shakhriyar Mamedyarov AZE 2808, Pentala Harikrishna IND 2706, Vidit Santosh Gujrathi IND 2727, 8.0/18

8. Sergey Karjakin RUS 2836, 7.5/18

9. Surya Shekhar Ganguly IND 2547, 6.0/18

10. R Praggnanandthaa IND 2366, 5.5/18

Time Control: five minutes for the entire game with three seconds added to your clock after every move starting move 1.
There was a play-off to break the tie at 1st place. Anand won 1 and drew 1 to clinch the gold medal.
Vishy Anand, the undisputed speed chess for two decades starting the 90s, brought back some of his magic by tying for 1st and prevailing in the tie-breaks to win the blitz portion of Tata Steel Indoa.
It was still very much Nakamura’s show here too as his tactical skills were just devastating.

Mamedyarov, Shakhriyar (2817) — Nakamura, Hikaru (2746) [D24]
Tata Steel India Blitz Kolkata IND (5.1), 13.11.2018

1.d4 Nf6 2.c4 e6 3.Nf3 d5 4.Bg5 dxc4 5.Nc3 a6 6.a4 c6 7.e3 b5!?
Offering the exchange for a raging attack on the uncastled King. Watch.
8.axb5 cxb5 9.Bxf6
White can of course take the b5 pawn right away but Shakh prefers to take out the knight first.
9…gxf6
Not 9…Qxf6? 10.Nxb5 axb5 11.Rxa8 is an inferior form of this line as Black’s queen needs to be on d8 so that he can play Bb7.
10.Nxb5 axb5 11.Rxa8 Bb7 12.Ra1 Bb4+ 13.Ke2
No choice. 13.Nd2 e5 opens up the position in the center where White’s king is.
13…0 — 0 14.Qc2?
You will see why this is a bad move soon.
14…f5
With the idea of Be4.
15.Nd2 Nc6 16.Rd1 Qxd4!
The point.
17.Nf3
[17.exd4 Nxd4+ 18.Ke1 Nxc2+ 19.Ke2 Nd4+ 20.Ke3 e5 Black is clearly winning]
17…Qf6 18.b3 Bc3 19.Rc1 Bb2 20.bxc4 Nb4 21.Qb3 Bxc1 22.Qxb4 Ra8 23.Nd4 f4 24.Qxb5 fxe3 25.Qxb7 Ra2+ 26.Kd3 Rd2+ 0 — 1
Even here in the Philippines many tournaments are now held in rapid format. I should caution the National Chess Federation of the Philippines, though. The world championship cycle is still based on standard chess — the difference between standard and speed chess is not only in the time control. Standard chess you take less risks, your openings are different, there is more room for planning and strategy, and endgame play is much more important. Please do not think that a steady diet of speed chess is sufficient for our players — standard chess is still the norm.
 
Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.
bobby@cpamd.net

Wizards woes

Such was the state of turmoil within the Washington Wizards that only 14,499 fans bothered to show up at the Capital One Arena last night. It wasn’t simply that they had lost their last two contests, and, up against the surging Los Angeles Clippers, looked ready to claim their 12th in 17 since the start of the season. It was why: Their last practice session had players barking at each other and head coach Scott Brooks, a reflection of the disarray that had hitherto marked their gross underachievement.
Indeed, the Wizards had been so plagued by listless play that the competition could not help but count on a triumph even before the opening tip. And, for a while there, they seemed to want to prove all and sundry right; they faced a whopping 24-point deficit with 6:01 left in the second quarter. To their credit, though, they kept plugging away and finally proved able to cut it to single digits shortly before the end of the third.
Significantly, the Wizards were even better in the payoff period, scoring 39 while limiting the Clippers to 23 en route to an emphatic victory. Needless to say, they stepped up their level of engagement in a show of force that underscored their potential. To be sure, it likewise put to the fore their inability — or, as the case may be, unwillingness to compete with consistency. They possess the talent to take the measure of the league’s best, and yet time and again succumb to seeming ennui.
Before the 2018-19 campaign began, the Wizards were tagged among the beasts of the East. With erstwhile conference king LeBron James gone and the race to the top bursting open as a result, they figured to crowd other contenders for the opportunity to make the Finals. Instead, they began their campaign with disappointment. Heading into yesterday’s homestand, they had earned the dubious distinction of compiling losing streaks of five and two games (thrice), with the last breaking a short skein of prosperity.
Only the Wizards know how the rest of the season will fare. If there’s any silver lining, it’s that they still have 65 matches to negotiate. And if they know what’s good for them, they would do well to build on their strong comeback yesterday. Otherwise, it will wind up to be nothing but a forgettable reprieve.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

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