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Ronaldo hits 4 for Portugal in 5-1 rout of Lithuania

VILNIUS — Portugal captain Cristiano Ronaldo took his international tally to 93 goals when he scored four times to give the European champions a 5-1 win away to Lithuania in their Euro 2020 qualifier on Tuesday.

Playing in his 161st international, the 34-year-old notched his eighth hat-trick for his country and the 54th of his remarkable career to help Portugal through what had threatened to turn into a frustrating evening.

Unheralded midfielder William Carvalho completed the rout in stoppage time as Portugal stayed second in Group B with eight points, five behind leaders Ukraine with one game in hand.

Serbia are a further point behind in third after a 3-1 win in Luxemburg.

“I scored one goal against Serbia and four today and what I want most is to continue like this,” said Ronaldo, who converted an early penalty and then added three second-half goals.

Portugal coach Fernando Santos said: “Ronaldo is the best player in the world, this is clear and unmistakable proof.”

Lithuania, bottom with one point, missed an early chance when Vykintas Slivka fired over from close range and they quickly paid the price when Markus Palionis handled a Joao Felix cross and Ronaldo put away the spot kick in the fifth minute.

Lithuania goalkeeper Ernestas Setkus made an excellent save to prevent Edvinas Girdvainis turning the ball into his own net but Vytautas Andriuskevicius then grabbed a surprise equalizer, rising above his marker to head home from a corner in the 28th.

GOOD CHANCES
Ronaldo set up good chances for Felix and Bernardo Silva, which were wasted, after the break before taking matters into his own hands.

Just as Portugal were beginning to show signs of frustration, Ronaldo produced a low shot which bobbled twice in front of Setkus in the 62nd minute. The Lithuania goalkeeper got his hand to it, but it hit his head and bounced into the net.

Three minutes later, Ronaldo was left free in the area to sweep home Bernardo Silva’s cross and Silva also provided the pass for Ronaldo to sidefoot his fourth 11 minutes later.

Carvalho’s goal, his fourth in 60 games, was a fitting reward for a player who keeps the Portugal midfield ticking over without getting much attention.

“I’m convinced that these players are capable of finishing top of this group,” said Santos.

Aleksandar Mitrovic scored twice to keep Serbia’s hopes alive with a win in Luxemburg. He headed Serbia in front after 36 minutes and Nemanja Radonjic curled in the second 10 minutes after the restart.

Substitute David Turpel pulled one back and Serbia were on the ropes until Sergej Milinkovic-Savic produced a delightful reverse pass for Mitrovic to fire in the third. — Reuters

Petro Gazz Angels take further flight as they compete in Taiwan volleyball tourney

By Michael Angelo S. Murillo
Senior Reporter

FORMED just less than two years ago, the Petro Gazz Angels are steadily carving a name for themselves in the local volleyball scene. And they are set to take further flight next week as they represent the country in the 2019 Taichung Bank International Women’s Invitational Volleyball Tournament in Taiwan.

Happening from Sept. 15 to 19, the Angels will pit their skills against some of the top club teams in Asia — including those from China, Japan and Thailand — with the end view of not only performing well but also gaining valuable collective experience which they could use in their campaign in the Premier Volleyball League.

In a press conference on Tuesday at Brothers Burger at the FilOil Flying V Centre in San Juan, the team shared that it is looking forward to competing at the Taichung Bank tournament and representing the Petro Gazz brand and the country.

“The Taipei tournament is a big opportunity for our team. There we will be competing against club teams in China, Japan and Thailand. The competition will be high,” said Petro Gazz coach Arnold Laniog.

“The experience we will get there will be a big help for us, particularly in the ongoing PVL Open Conference,” he added.

For team captain Chie Saet, the Taiwan tournament should provide a gauge of where they are as a team.

“This is a gauge of where we are as a team. We are happy that we were selected to represent the country and we feel blessed to be given much support. We will try our best to have a favorable result in the tournament,” said Ms. Saet.

Petro Gazz, whose campaign has the backing of the Larong Volleyball sa Pilipinas Inc., will parade an All-Filipino team.

The team will have Ms. Saet (setter), Stephanie Mercado (outside hitter), Cherry Rose Nunag (middle blocker), Djanel Welch Cheng (setter), Jessy De Leon (MB), Maricar Baloaloa (opposite hitter), Rica Jane Enclona (libero), Alyssa Layug (OH/MB), Jonah Sabete (OH), Cienne Cruz (libero), Jeannette Panaga (MB) and Jovieyn Prado (OH).

The Year 2019 has been a banner one for Petro Gazz, highlighted so far by winning the PVL Season 3 Reinforced Conference.

In the ongoing Open Conference, the Angels are currently tied for second place with a 5-2 record and have won four straight matches.

Petro Gazz officials said that the Taichung Bank invitational tournament is further testament to how far the team has gone in just short a time, which they attribute to the conscious effort to bring in the right personnel to make up the team.

Najdorf Poisoned Pawn

7th Altibox Norway Chess
Stavanger, Norway
June 3–14, 2019

Final Standings

1. Magnus Carlsen NOR 2875, 13.5/18

2–3. Yu Yangyi CHN 2730, Levon Aronian ARM 2752, 10.5/18

4–5. Fabiano Caruana USA 2819, Wesley So USA 2754, 10.0/18

6. Ding Liren CHN 2805, 8.5/18

7–8. Maxime Vachier-Lagrave FRA 2779, Viswanathan Anand IND 2767, 8.0/18

9–10. Shakhriyar Mamedyarov AZE 2774, Alexander Grischuk RUS 2775, 5.0/18

You remember back in June there was this Altibox Norway Chess tournament where all games must be decisive? It went this way:

Players receive two hours for each classical game, with a 10-second increment only after move 40. No draw offers are allowed until move 30. Classical games are worth two points for a win, but in case of a draw players get half a point and play an Armageddon game for the remaining point.

In the Armageddon game White has 10 minutes to Black’s 7, with a 3-second increment from move 61. In case of a draw the player with Black gets the full point.

Magnus Carlsen won this tournament with 13.5/10, three points ahead of the two players tied for second place, Yu Yangyi and Levon Aronian.

There was an exciting game played in the Najdorf Poisoned Pawn which I forgot to show to our readers. I am sure that BW readers who like me were brought up during the Bobby Fischer days would just love to see how the theory has evolved and so, albeit a bit late, I am presenting it now to you.

Caruana, Fabiano (2819) — Vachier Lagrave, Maxime (2779) [B97]
Norway Chess 7th Stavanger (2), 05.06.2019

1.e4 c5 2.Nf3 d6 3.d4 cxd4 4.Nxd4 Nf6 5.Nc3 a6 6.Bg5 e6 7.f4 Qb6

Pulses start pounding and excitement rises in anticipation of a cutthroat battle, we have a Najdorf Poisoned Pawn Variation on the board! The two protagonists have had great experience in the line — Maxime Vachier-Lagrave with Black (MVL is known to play the Sicilian Najdorf every chance he gets) and Caruana with White, and they have faced off against each other in this very line several times.

8.Qd2

There are some killjoys who play 8.a3 here with the trap 8…Qxb2? 9.Na4 in mind, winning the black queen. In response, Black can either play 8…Nc6 or 8…Nbd7, both of which should be studied in case you want to play the Poisoned Pawn.

Caruana has also played 8.Qd3 There is a case for calling this the “Azerbaijan Variation” as it was popularized by the late Vugar Gashimov and other young player from that country. Although it blocks her own bishop the queen controls the 3rd rank and in some cases is better placed to support the e5 push. Nowadays the main line seems to be 8…Qxb2 9.Rb1 Qa3 10.f5 Be7 11.fxe6 fxe6 12.Be2 Qa5 13.Bd2 Qc7 14.g4 h6 with chances for both sides. This is Caruana versus Nakamura from the 2017 Norway Chess tournament in Stavanger which the Italian-American won in 59 moves. This is also Gashimov, V. (2759)-Grischuk, A. (2736) Bursa TUR 2010 0–1 41. The reason I bring up this second game is because Grischuk considers it his best game ever and one of these days I will show it to you in full.

8…Qxb2 9.Rb1 Qa3 10.f5

Back when the Poisoned Pawn Variation began to appear in tournament practice (this is more than 60 years ago) White’s main idea was the central break 10.e5, blasting open the position to utilize his lead in development. However soon Black found several antidotes, and to every new White attack a counter was found, so much so that in the 1970s White started playing 10.f5. There was a resurgence in interest in 10.e4–e5 in the period 2005–2007 but nowadays the f-pawn push has returned as the main line.

10…Be7

MVL’s surprise. The main line is 10…Nc6 11.fxe6 fxe6 12.Nxc6 bxc6 and now either 13.e5 or 13.Be2, with tons of theory in either case.

11.fxe6 Bxe6

Much better than 11…fxe6, which just gives White a target after 12.Bc4. Now Black is forced to give back the sacrificed pawn as 12…d5 does not work: 13.exd5 Qc5 (13…exd5 14.Nxd5 Nxd5 15.Bxd5 Bxg5 16.Qxg5 Qe7+ 17.Qxe7+ Kxe7 18.Bxb7 White is clearly better) 14.Bb3 exd5 15.Na4 Ne4 16.Nxc5 Nxd2 17.Kxd2 Bxg5+ 18.Kd3 Black is temporarily a pawn up but hopelessly behind in development.

12.Nxe6 fxe6 13.Bc4 Nbd7 14.Bxe6 Nc5 15.Bc4!?

Even in this rare line Caruana has a novelty. Instead of defending his e4 pawn he instantly put his bishop on c4. By way of background, this exact same position after Black’s 14th move came up in Wei Yi versus Nepomniachtchi in the Moscow Grand Prix 2019. There Wei Yi played the obvious 15.Bf5 g6 16.Bh3 Ncxe4 17.Nxe4 Nxe4 18.Qd4 Qc3+ 19.Qxc3 Nxc3 20.Bxe7 Kxe7 (20…Nxb1 21.Bf6 Rf8 22.Bb2 the knight is caught) 21.Rb3 Ne4 22.Rxb7+ Kf6 23.0–0+ Kg5 24.g3 Rab8 25.Ra7 Rb2 26.Bg2 Black is under pressure but he should be able to hold. Wei Yi (2736)-Nepomniachtchi, I. (2773) Moscow Grand Prix 2019 1/2 70.

15…Ncxe4?!

MVL of course realized that he was facing some preparation by Caruana and took 12 minutes before capturing the central pawn. A better move though is 15…Rc8! putting pressure on the pieces along the c-file. If now White plays 16.0–0 Ncd7! 17.Rf5! (17.Bb3? Qc5+ wins a piece) 17…Ne5 (17…Rxc4 18.Rb3 the black queen is unexpectedly trapped) 18.Rxb7 Qc5+ 19.Kh1 Qxc4 Black is at least equal.

16.Nxe4 Nxe4 <D>

POSITION AFTER 16…NXE4

17.Bf7+!

Would you believe this is the idea behind his 15th move?

17…Kxf7 18.Qd5+ Ke8 19.Qxe4 Qa5+ 20.Kd1!

Caruana has studied the position well. He gets his king out of the e-file so that Black cannot exchange queens after 20.Bd2 Qe5 21.Qxe5 dxe5 22.Rxb7 Rf8 the pressure has already been relieved and Black is ok now.

20…Qxg5

Did Caruana overlook this?

21.Rxb7

No! By the way, an important nuance of the position is that Black cannot castle because the King has already moved to f7 and back.

21…Rf8

[21…Qe5? 22.Re1! Kd8 23.Qc6 Black’s checks will run out: 23…Qd4+ 24.Ke2 Qg4+ 25.Kf1 (25.Kd3 is another way but it looks so risky) 25…Qf5+ 26.Kg1 Qc5+ 27.Qxc5 dxc5 28.Rexe7 the two rooks on the 7th rank ensure the win]

22.Re1

[22.Rxe7+? Qxe7 23.Qxa8+ Kd7 24.Qb7+ Kd8 25.Qxa6 Qe5 throws away the win]

22…Rf7 23.Rxe7+ Rxe7 24.Qxa8+ Kf7 25.Rf1+ Kg6 26.Qxa6 Qe5! 27.Qd3+ Kh6 28.c3?!

Fabiano gives up a pawn for no reason. There was nothing wrong with 28.g3.

28…Qxh2! 29.Qd2+ Kg6 30.Rf4 Re6 31.Qc2+ Kh6 32.Qf2 Qh5+! 33.Kd2

Not 33.Kc1? Re2 and it is Black who has the upper hand.

33…Qd5+ 34.Kc1 g6 35.a4 Qe5 36.Kc2 g5?!

With his pieces centralized MVL decides to play for a win. He could have had the draw with 36…Qe2+ would be quite an easy draw: 37.Qxe2 Rxe2+ 38.Kb3 Rxg2 39.a5 Re2 40.a6 Re8 41.Rd4 Kh5 42.Rxd6 g5 the two connected kingside passed pawns for Black should counterbalance White’s a6–pawn.

37.Rd4 Kg6 38.Qf3 h5 39.Rd5 Qe2+ 40.Qxe2 Rxe2+ 41.Rd2 Re6?

This very logical move, defending his d6–pawn, is actually a big mistake as Caruana will demonstrate. Correct was 41…Re5! 42.Rxd6+ Kf5 43.Kb3 h4 44.Rd2 g4 This is a draw. Let’s play through it a few more moves: 45.Kb4 Kf4 46.a5 h3 47.Rd4+ Kg3 48.gxh3 gxh3 49.a6 Kg2 50.Rh4 h2 51.a7 Re8 52.Rxh2+ Kxh2 53.c4 Kg3 54.c5 Kf4 55.c6 Ke5 56.Kc5 Ke6 57.Kb6 Kd6 58.Kb7 Re7+ 59.c7 Rxc7+ 60.Kb8 draw.

42.a5!

I think White is already winning here.

42…h4 43.Kb3 g4 44.Kb4 Re1 45.Ra2!

Preventing the black rook from getting behind his passed pawn.

45…Rb1+ 46.Kc4 h3 47.gxh3 gxh3 48.a6 Rb8 49.Kd5 Ra8 50.Kxd6

The difference between this and the previous line is the position of the kings.

50…h2 51.Rxh2 Rxa6+ 52.Kd5 Kf7 53.Re2!

Cutting off the black king, a standard maneuver in rook and pawn endings.

53…Ra8 54.c4 Rd8+ 55.Kc6 Rc8+ 56.Kb5 Rb8+ 57.Ka6 Rc8 58.Re4 Kf6 59.Kb7 Kf5 60.Rd4 1–0

[60.Rd4 Rc5 61.Rd5+! Rxd5 62.cxd5 Ke5 63.Kc6 there are no more unanswered questions]

An epic battle in the opening, middle game, and endgame!

 

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 (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

KD’s fresh start

Yesterday’s news on the National Basketball Association was dominated by Kevin Durant’s revelations to The Wall Street Journal. Not that what he told J.R. Moehringer were shockers; for a long, long while now, avid hoops fans have known him to be, well, conflicted. Successful and yet unfulfilled. Wanted and yet unsettled. Talented and yet unsure. It’s why his divorce from the Thunder in 2016 was met with derision, and why his decision to move on from the Warriors over the summer, in contrast, felt preordained. Ironically, he had given assurances he would stay with the former, and no indications of his intentions in regard to the latter.

Indeed, Durant’s pronouncements simply validated sentiments of those from the outside looking in. He’s a proud man, hence his insistence that his joining the Warriors wasn’t aimed at completing his career with a championship. “What are you going to teach me? How can you alter anything in my basketball life? I got an MVP already. I got scoring titles,” he argued. At the same time, he acknowledged that winning it all in 2017 “was a defining moment in my life — not just my basketball life.” It clearly didn’t last, though. They retained the Larry O’Brien Trophy the next year, and could very well have gone three of three last June had he not suffered from a calf injury in the second round of the playoffs. All evident brushes with greatness. And still he left.

Significantly, Durant noted that his move to the Nets was dictated by fit. He didn’t even need to be wooed, as much an indication as any that his mind was made up long before his 2018–19 campaign ended (and perhaps before it began). His discussion with agent Rich Kleiman on his options as a free agent, he recounted, lasted all of a lunch meeting — after which he simply said “All right. Well. I’m going with Brooklyn.” It’s where he can share the court with Kyrie Irving, his “best friend in the league. It’s where he felt respected as an opponent, and where he believes he will be welcomed, continually, without reservations.”

Durant has long been big on acceptance, and it’s fair to wonder if his latest stop will be his last. True, he’s 31 and in the midst of a long period of convalescence from an Achilles tear. True, he has a contract with the Nets that runs until 2023. Then again, if there’s anything recent events have proven, it’s that players can force change even when change doesn’t seem possible. And, in his case, change is just about the only constant. Still, the hope is that he finally finds cause to settle down. He truly has nothing left to prove, and he deserves the peace that comes with believing it himself.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Tala raises $210 Million Series D

Loaning app Tala’s new investment opens more financial opportunities for Filipinos

Three billion adults do not have access to basic financial services, including the ability to borrow, save, or grow their money.

Tala, the leading digital lender in the Philippines, is on a mission to build a financial system that works for everyone, beginning with the world’s most accessible consumer credit product.

Tala announcedits $210M Series D investment to accelerate financial inclusion around the world. The latest funding round is comprised of $110M in equity, led by RPS Ventures, and $100M in debt financing.

The new round will fuel continued growth in the Philippines and support the launch of new products in the Tala ecosystem that promote financial health and create value for its loyal customer base in the Philippines, Mexico, Kenya, and India.

“As the second largest market in Southeast Asia, the Philippines presents a massive opportunity. With a population of over 100 million, we have 70 million unbanked Filipinos with a widely unmet need for credit in a growing economy. In the two short years since we launched in the Philippines, Tala has emerged as the top digital lender in the market,” said Angelo Madrid, Tala’s Country Manager in the Philippines.

In 2014, Tala became the first in the world to offer unsecured loans via smartphone, instantly underwriting customers and disbursing credit entirely through an Android app.

The company has since loaned more than $1 billion to 4 million customers on 3 continents, with a 90% repayment rate that proves the potential of these previously overlooked consumers. Tala’s growth is fueled by a deep commitment to its customers, whose loyalty has helped make Tala a top digital lending app across its current markets.

“We attribute our rapid success to our lean 200-person team in Manila that works with Tala’s global team to deliver best-in-class localized experiences, and our amazing customers, who are the most engaged and loyal that we have seen in any market. With this round of funding, we look forward to continuing on the path to universal financial inclusion,” Madrid adds.

In the near term, Tala will leverage its proprietary technologies and customer trust to deliver additional products that accelerate financial health for the underserved in the Philippines and around the world.

The new round was led by RPS Ventures with participation from GGV Capital and previous investors including IVP, Revolution Growth, Lowercase Capital, Data Collective VC, ThomVest Ventures and PayPal Ventures. Kabir Misra, Founding General Partner at RPS Ventures, has joined Tala’s board of directors.

Tala has more than 500 employees across offices in Manila, Mexico City, Nairobi, Santa Monica, and Bangalore.

Progress and concerns in wastewater management

After water is used for laundry, bathing, dishwashing, using the toilet, and many more, it becomes wastewater. In order for this wastewater to be discharged back to the environment and be reused, it must be treated first. This means that wastewater should undergo a process wherein the water passes through several stages including filtering out of contaminants and cleansing before being sent back to the environment.

Wastewater treatment or management is a vital means of conserving the world’s most important natural resource. With water pollution becoming more challenging to be mitigated, wastewater treatment is essential. In fact, the United Nations stated in 2017 that 80% of the world’s wastewater, and over 95% in some least developed countries, is released to the environment without treatment.

Concerning wastewater management in the Philippines, much has been started and yet much more needs to be done. Notably, it started in 1995, when the Public Private Partnership center urged the government to transfer the burden of handling water supply and sanitation infrastructure to the private sector. Also, according to Metropolitan Water and Sewerage Systems, Inc., there was less than 8% sewer coverage and minimal septage treatment at those times.

To address these concerns, concession agreements that created Manila Water Company, Inc. (MWCI) and Maynilad Water Services, Inc. (MWSI) were signed for a 25-year period in 1997, and have since been extended for an additional 15 years. The agreements entail ensuring 100% wastewater collection and treatment for Metro Manila.

Furthermore, the treatment of wastewaters is also upheld in the Clean Water Act of 2004. It directs the Department of Environment and Natural Resources (DENR) to implement a wastewater charge system “in all management areas including the Laguna Lake Region and Regional Industrial Centers through the collection of wastewater charges/fees.” It also enforces a discharge permitting system which requires owners or operators of facilities that discharge regulated effluents to secure a wastewater discharge permit.

“Implementation of the polluter pays approach rather than issuing fines has been a key driver in incentivizing industries and residential compounds to install onsite/decentralised treatment systems,” stated the Wastewater Report 2018 by the OPEC Fund for International Development (OFID), an institution of the Organization of the Petroleum Exporting Countries.

In terms of treatment facilities, OFID’s report noted that “more than 58 decentralized treatment plants were constructed (in addition to the existing centralized plants), seeking low operation costs and the most potential for energy production while ensuring effluent standards were met.”

It also stated that in Metro Manila, “15% of the population is connected to sewer networks and 85% have access to onsite sanitation (septic tanks), of which 44% of the fecal sludge and effluent is safely managed.”

Amid these measures and developments, however, there is still ongoing concern about the lack of wastewater management.

Christian Walder, an urban development specialist (water supply and sanitation) at the Asian Development Bank (ADB), wrote in an article published in ADB’s web site last year that megacities like Metro Manila still do not have adequate sanitation and wastewater treatment regardless of important appearances of progress. “It is estimated that more than 11 million of Metro Manila’s population is using on-site sanitation facilities and that there are more than two million septic tanks installed in the Philippines’ capital region,” he added.

The World Bank, meanwhile, stated that Metro Manila generates about two million cubic meters of wastewater every day. “Without adequate sewerage facilities, only around 17% of this volume gets treated before being discharged into water channels in and around the metropolis, which end up mostly in Manila Bay,” the institution added.

To address such inadequacy, in 2012, the World Bank approved a $275M project that aims to improve wastewater collection and treatment practices in several catchment areas of Metro Manila. Named the Metro Manila Wastewater Management Project (MWMP), the project supports the investments of MWCI and MWSI to improve collection and treatment of wastewater from households and other establishments in the metropolis.

BusinessWorld reported last December 2018 that at the end of November last year, the MWMP was 73% complete and it absorbed 65.42% of the loan facility offered by the World Bank.

In addition, Mr. Walder of ADB emphasized that innovative solutions for wastewater treatment cities and communities can leapfrog wastewater management challenges. He cited a treatment plant in Biñan City, Laguna as an example.

“The facility is located in a densely populated area and has applied a nature-based technology — comprised of plants, microorganisms, biofilms, and engineered media — to break down the wastewater in a biological process that requires less energy and produces less sludge compared to a conventional centralized treatment plant,” he explained. — Adrian Paul B. Conoza

FDI net inflow nearly halved in June

By Luz Wendy T. Noble

NET INFLOW of foreign direct investments (FDI) — involving long-term capital that generate jobs and transfer technologies — was nearly halved in June and fell by more than a third last semester, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday, with analysts blaming an escalating Sino-US trade war and uncertainty over proposed changes to tax incentives.

BSP data showed net FDI inflow dropping by 48.5% to $430 million in June from $836 million, even as the latest amount was 77.69% more than June’s $242 million.

“This decline relates to external environment issues such as the US-China trade conflict and other trade-related concerns since last year,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

On the domestic front, Mr. Asuncion believes that the lower FDI net inflow “stems from planned fiscal reforms that have somehow clouded the foreign investment space, whether fresh ones or expansions for existing ones.”

Also sought for comment, Michael L. Ricafort, Rizal Commercial Banking Corp.’s (RCBC) economics research division head, said in a separate e-mail: “Uncertainties related to the proposed rationalization of fiscal incentives kept some foreign investors on a wait-and-see attitude.”

The United States on Sept. 1 announced 15% tariffs on even more Chinese imports — including footwear, smart watches and flat-panel televisions — while China began imposing new duties on US crude oil. Beijing later lodged a complaint against Washington at the World Trade Organization over US import duties.

The International Monetary Fund released on Tuesday its World Uncertainty Index showing that concerns about global trade could shave about 0.75 percentage point off global economic growth this year.

At home, foreign business chambers in Philippine economic zones have been asking the government not to proceed with plans to overhaul the current tax incentives package by removing perks deemed redundant and making the rest more time-bound and tied to economic benefits from investments.

Mr. Ricafort added that “the declining trend in both local inflation and interest rates… kept some foreign investors on the sidelines while waiting for a bottom in interest rates (in able to further save on borrowing costs) and start to borrow more aggressively again to finance more FDIs into the country.”

June saw equity other than reinvested earnings plunge 86.5% to $25 million from $184 million a year ago, as gross placements dropped 64.7% to $73 million from $208 million and withdrawals more than doubled to $49 million from $24 million.

The BSP said that equity capital placements in June came mostly from Singapore, the United States, Japan, the Netherlands and China, and went mainly to real estate; manufacturing; financial and insurance; transportation and storage; as well as electricity, gas, steam and air conditioning supply industries.

Foreign firms’ investments in debt instruments of their Philippine affiliates similarly dropped 44% to $317 million from $570 million.

Only reinvested earnings grew — by 8.3% to $89 million in June from $82 million a year ago.

FIRST HALF TALLY
June brought year-to-date net inflows to $3.576 billion, 38.8% less than the $5.842 billion in last year’s first half.

The same comparable six-month periods saw equity other than reinvested earnings plunge by 77.2% to $361 million from $1.585 billion, while withdrawals grew more than threefold to $499 million from $163 million.

Equity capital placements last semester came chiefly from Japan, the United States, Singapore, China and South Korea, and benefited mainly financial and insurance, real estate, manufacturing, transportation and storage, as well as administrative and support services.

Intercompany borrowings dropped 28.8% to $2.708 billion from $3.805 billion, while reinvested earnings grew 12.1% to $507 million from $453 million.

Despite the fall in net FDI inflows, both economists believe that net inflows will bounce back.

“As the smoke clears from both external and domestic concerns, FDI net inflows are expected to pick up particularly as fiscal reforms are in place,” UnionBank’s Mr. Asuncion said.

For RCBC’s Mr. Ricafort, such inflows could turn around in the coming months “after long-term local interest rates recently declined to new lows in two to three years and have already declined by nearly 400 basis points from their decade-highs posted in October 2018.”

“Thus, demand for loans by businesses/investors, including for financing FDIs, could pick up due to much lower borrowing costs that encourage greater financing for new investments and expansion projects by both foreign and local investors, including the financing for more FDIs,” he explained.

Given appropriate policies, FDIs help fuel overall economic development by generating gainful employment, facilitating technology and knowledge transfer, enhancing international trade integration and creating more competitive business environment.

FDI net inflows dipped 4.4% to $9.802 billion last year from a record-high $10.256 billion in 2017. The BSP had said it expects such inflows to hit $10.2 billion this year.

BSP data on FDI cover actual capital inflows, in contrast to project commitments to state investment promotion agencies that are tracked by the Philippine Statistics Authority (PSA).

Moreover, BSP’s FDI data include investments in which foreign ownership is at least 10%, while PSA does not make use of this threshold and includes borrowings from foreign sources that are non-affiliates of the domestic company. Furthermore, PSA data do not account for equity withdrawals.

The PSA released preliminary data on Sept. 6 showing that FDI commitments approved by the country’s seven main investment promotion agencies grew 60.2% year-on-year to P49.58 billion last quarter from P30.95 billion a year ago, making such pledges more than double to P95.56 billion last semester from P45.154 billion in 2018’s first half.

Fitch sees 2nd half GDP growth picking up ‘modestly’

AFTER a not-so-stellar 5.5% first-half economic expansion amid budget delays and headwinds from abroad, Fitch Ratings expects Philippine growth to catch up with a modest improvement this semester.

In its APAC Sovereign Credit Overview report for the third quarter, the global debt watcher — which has a “BBB” sovereign rating for the country, a notch above minimum investment grade, with a stable outlook — said it expects gross domestic product (GDP) “growth to improve modestly” in the second half and was “maintaining its full-year 2019 growth forecast of 6.1%…”

“At a growth rate of 6.1% for 2019, we think the Philippines would still remain among the fastest-growing economies in Asia-Pacific,” Sagarika Chandra, associate director for Asia Pacific Sovereigns at Fitch, said via e-mail.

Philippine GDP growth slowed to 6.2% last year from 6.7% in 2017.

“Continued strong growth while maintaining macroeconomic stability could trigger a positive rating action,” Ms. Chandra said.

Weak global growth amid an escalating Sino-US trade war could weigh on overall Philippine economic expansion, which could clock in at 6.3% in 2020 and 2021.

Fitch noted that the Bangko Sentral ng Pilipinas’ (BSP) move to raise benchmark interest rates by a total of 175 basis points in 2018, paired with slowing growth, have lowered overheating risks. The BSP has partially dialed back last year’s tightening amid currently easing inflation by reducing key rates by a total of 50 bps so far, and has signalled another 25 bp cut towards yearend. “Inflation has generally been on a declining trend in 2019 so far and for the first eight months average inflation is within the central bank’s target range. We think this, along with weaker growth in the first half of 2019, offers some room for monetary easing,” Ms. Chandra said.

On the other hand, the report forecasts the country’s current account to remain in deficit at about 2.4% of GDP in 2019, no thanks to weak export performance, as exports contracted by about 0.5% in the first half of the year versus the 1.1% growth in the same period last year. Imports fell in the first half of the year as well, “although this was due mainly to the delay in passing the 2019 budget which affected spending on infrastructure,” Fitch noted in its report.

“We expect imports to rise somewhat in the second half with the passing of the budget. The agency expects subdued export performance and generally strong import growth in 2020 and 2021 to keep the current account in a deficit of between 2.5-2.6% of GDP.”

Fitch also called for further improvement in revenue generation. “Better governance standards could bode well for the business environment and support higher investment levels over time. We think progress made on tax reforms so far and our expectation of further reforms, would lead to a gradual increase in central government revenues,” Ms. Chandra said. “We are expecting central government revenues to increase to about 16.9% of GDP by 2021 from 16.4% of GDP in 2018. As such we expect the budget deficit to stabilize at around three percent of GDP in 2020 and 2021, as higher spending on infrastructure is offset by the improvement in revenues.”

Ms. Chandra said tax reforms will “support a gradual improvement in central government revenues and keep budget deficits within manageable levels,” cautioning that “significant widening of budget deficits, steady increase in inflation alongside wider current account deficits signal an increase in macro instability.” — Luz Wendy T. Noble

Philippine trade year-on-year performance (July 2019)

THE COUNTRY’s trade-in-goods deficit narrowed in July as merchandise exports grew at their fastest pace in nine months while imports declined, the Philippine Statistics Authority (PSA) reported on Tuesday. Read the full story.

Philippine trade year-on-year performance (July 2019)

Trade-in-goods deficit narrows in July — PSA

THE COUNTRY’s trade-in-goods deficit narrowed in July as merchandise exports grew at their fastest pace in nine months while imports declined, the Philippine Statistics Authority (PSA) reported on Tuesday.

Preliminary PSA data showed July’s trade deficit at $3.393 billion, compared to a $4.016-billion gap in the same month last year.

Philippine trade year-on-year performance (July 2019)

The value of goods sold abroad grew by 3.5% to $6.174 billion in July, faster than 3.3% in June and 2.3% in July 2018.

On the other hand, import payments fell 4.2% year-on-year to $9.567 billion in July, improving from a 10.4% decline observed in June albeit a reversal from the 39.8% growth in July 2018.

July marked the fourth straight month of growth in export goods and was the fastest in nine months or since the 6.7% growth in October 2018.

Meanwhile, the country’s total external trade in goods — the sum of export and import goods — was $15.742 billion in July, 1.3% less than the $15.949 billion total in same month last year.

To date, merchandise exports are up 0.1% to $40.391 billion against the two-percent growth target of the Development Budget Coordination Committee (DBCC) for full-year 2019.

On the other hand, the merchandise import bill declined 1.5% to $62.685 billion on a cumulative basis against the DBCC’s seven-percent projection for the year.

That brought the year-to-date trade balance to a $22.294-billion deficit, smaller than the $23.251-billion gap in 2018’s comparable seven months.

According to a statement by the National Economic and Development Authority (NEDA), the Philippines registered the third-fastest growth in exports among select Asian economies in July, next to Thailand and Vietnam. “Philippine exports remained resilient during the second quarter of 2019 despite the continuing external challenges such as trade tensions between the US and China, the bleak outlook in Europe, and the uncertainty of the future of Brexit,” Socioeconomic Planning Secretary Ernesto M. Pernia was quoted in the NEDA statement as saying.

In separate e-mails, ING Bank N.V. Manila senior economist Nicholas Antonio T. Mapa and Security Bank Corp. chief economist Robert Dan J. Roces noted the growth in electronic exports, which accounted for 55.6% of the country’s export sales in July.

Exports of electronic products grew 2.9% annually to $3.433 billion in July from $3.335 billion in July last year. Electronics accounted for 55.6% of total export goods and 66.2% of manufactured goods.

Year-to-date, electronics sales grew 1.1% to $22.379 billion from $22.133 billion in 2018’s first seven months.

“Interestingly, it was these exports to the US that helped us clear a [fourth-straight] month of gain, with products probably imported from China [and] re-exported to the US as manufacturers [are] getting creative on how to skirt tariffs,” ING Bank’s Mr. Mapa said.

For Security Bank’s Mr. Roces, the country is said to be “picking up some slack” in terms of demand for semiconductors, which grew 2.4% to $2.488 billion in July. Semiconductors make up 72.5% of electronic products and 40.3% of total exports.

Among major types of goods, manufactured goods exports increased 4.2% to $5.185 billion from $4.975 billion in the same month last year. This was followed by exports of agro-based products, which saw an 11.7% growth to $413.401 million in July from last year’s $370.222 million.

Exports of forest and mineral products likewise increased by 50.6% and 12.2%, respectively, to $31.113 million and $421.721 million.

On the import side, payments for raw materials and intermediate goods dropped 11.7% to $3.447 billion from last year’s $3.902 billion. Likewise, imports of mineral fuels, lubricant and related materials fell 14.5% to $1.114 billion from $1.303 billion

Bucking the trend were imports of capital goods and consumer goods, which grew by 3.4% (to $3.273 billion) and 7.6% ($1.659 billion).

“[The decline in imports of raw materials and intermediate goods] moves directly in line with the budget impasse as construction materials such as iron, steel and non-ferrous metals contracted,” said ING’s Mr. Mapa.

The economist also cited the 10% drop in raw materials used for electronics, “which could mean that the fledgling export growth trend could peter out.”

On the other hand, Security Bank’s Mr. Roces noted the slower contraction in imports in July compared to that of June, which is “consistent with the turnaround in government spending…”

Data from the Treasury bureau showed a P75.3-billion fiscal deficit in July, 12.8% smaller than the P86.4 billion in July last year. However, July’s fiscal deficit compared with the P41.8-billion deficit in June as well as the fiscal surpluses of $86.872 billion and $2.564 billion in April and May, respectively.

Analysts have blamed the recent decline in imports and government spending to the delay in the passage of the 2019 national budget. To recall, the government operated on a reenacted 2018 budget from January to April 15, when President Rodrigo R. Duterte signed this year’s national budget into law four months late, but vetoed P95.3 billion in funds that were not in sync with his administration’s priorities.

“For the rest of the year, we expect trade deficit to widen as import demand starts to pick up,” Security Bank’s Mr. Roces said moving forward.

For ING Bank’s Mr. Mapa: “We could see a rebound in capital goods imports as the BSP (Bangko Sentral ng Pilipinas) cuts policy rates and boosts investment activity.”

The BSP has cut benchmark interest rates by a total of 50 basis points (bp) so far this year, partially dialing back the 175-bp cumulative hikes triggered last year by successive multi-year high inflation that peaked at a nine-year high.

Meanwhile, JPMorgan Chase Bank NA Singapore Branch economist Nur Raisah Rasid said in a note that a “gradual” recovery in capital expenditures (capex) is underway this quarter given the July turnout, but noted “seasonal weather issues” as a downside risk to the country’s infrastructure and capex recovery.

“Thus, we continue to watch capital goods imports to determine the direction of the capex trend,” Ms. Rasid said.

NEDA’s Mr. Pernia said that the effects caused by the ongoing trade tensions between the US and China are “beginning to show” through decreased global manufacturing sentiment, but remained hopeful on the country’s manufacturing sector. Of note, manufactured goods make up 84% of total exports.

“We are optimistic as we see a reduction of global oil prices, the recent cuts in electricity rates, and the lower import costs due to the appreciation of the peso,” said Mr. Pernia, adding that this resiliency may “find relevance” in attracting foreign investments as investors are seeking alternatives to China, where goods are subject to increasing US tariffs. — Lourdes O. Pilar

Senate leaders unconvinced extra powers needed vs traffic

By Charmaine A. Tadalan
Reporter

SENATE leaders remain unconvinced that the Executive branch needs emergency powers to solve worsening traffic in Metro Manila and other key urban centers, citing in a public hearing on Tuesday the Department of Transportation’s (DoTr) lack of a master plan.

Transportation Secretary Arthur P. Tugade asked Congress to grant the Executive emergency powers in order to hasten procurement, acquisition of right-of-way and implementation of priority projects. “Kung nagkaroon sana ng emergency powers noon, dapat ngayon nirerepaso na natin ‘yung nagawa (Had we been granted emergency powers before, we should now be reviewing what had been accomplished),” Mr. Tugade told the Senate Public Services committee.

The committee was tackling Senate Resolution No. 81, filed by Senate President Pro Tempore Ralph G. Recto, which sought an inquiry on the government’s transportation master plan, and Senate Bill No. 213, or the proposed “Special Emergency Powers Act,” authored by Senator Francis N. Tolentino.

Mr. Recto, however, learned during the hearing that the government did not have a comprehensive plan. “I was hoping that there would be a presentation from DoTr kung ano talaga itong planong ito (on such a plan). Did we adopt this plan? Is it feasible, viable? Magkano ba? (How much would it cost us?)” he said. “Kung pinagkasunduan natin na ito ang gagawin natin, makikita natin kung kailangan ng additional power, emergency powers (Had we agreed on what needs to be done, we would have seen if we need additional power, emergency powers).”

Mr. Recto recalled that, in 2014, the National Economic and Development Authority and the Japan International Cooperation Agency drew up a “Dream Plan” to eventually ease traffic, but it was not adopted in full.

“Ang istraktura ba natin, ang (Are structures) institutions in place ay capable ba to implement this plan? Ang MMDA (Metropolitan Manila Development Authority), DoTr, DPWH (Department of Public Works and Highways) dahil lahat kayo ay nakatuon sa problema ng (because all of you are involved in) infra(structure), transport operations at traffic management,” he added, recalling that DoTR did not present any plan to the 17th Congress that ended in June.

Transport expert Rene S. Santiago, who was among those who formulated the “Dream Plan,” volunteered to submit a master plan for the panel’s consideration. He noted that the government has been implementing select segments of the plan as well as other projects, and that these will have to be considered in any master plan.

“The construction of subway, the Mega Manila subway, the North-South commuter railway are part of that plan. The BRT (Bus Rapid Transit) is not,” he said. “Adjustments are acceptable, but if they change the whole behavior of the network, they change the integrity of the plan.”

Senator Grace S. Poe-Llamanzares, committee chairman, for her part, said the committee is still not convinced the government needs emergency powers.

“Kung naipresenta lamang nila na emergency powers lang ang makakapagbigay ng solusyon, mabilis pa sa alas quatro, lahat ng Senador papayag, kaso walang nakumbinsi sa mga kasama namin (If DoTr officials explain that it will take no less than emergency powers to solve traffic, all senators will agree to grant them, but none of us are convinced,” she told reporters in a briefing on Tuesday.

“Sa ngayon ang (For now, my) stand ko, marami silang nagawa dapat na kahit walang (is that DoTr should have achieved much even without) emergency powers.”

Technical working group meetings starting next week will finalize the committee report on the traffic crisis bill “within a month,” she added.

President Rodrigo R. Duterte on Aug. 21 hit an unnamed “lady” public official for preventing government from addressing traffic.

“Members of the Senate should consider the grant of emergency powers given that particular situation wherein even patients are dying because the ambulance carrying them could not reach the hospital on time,” Presidential Spokesperson Salvador S. Panelo said in a briefing in Malacañang on Tuesday.

“Well, I think the position of the President remains: from the very start he wanted emergency powers to solve the traffic problem/mess but when some senators issued statements against it and insinuated that there might be some abuse of power, he said, “O sige, ‘di kayo na lang,(it’s up to you) at let EDSA rot’,” he added.

“In other words, the President wants to solve that and he really needs emergency powers. Now Secretary [Tugade] is pursuing it. But I understand some of the senators are for it, so let’s see how it goes.”

The proposed “National Traffic and Congestion Crisis Act” is among the proposals which 14 local and foreign business groups pitched to Malacañang and Congress in July.

In the 17th Congress, the measure bagged final reading at the House of Representatives, but remained unacted on in the Senate up to the June 3 adjournment. — with Arjay L. Balinbin

On life and love with Company

BEING in your 30s means finding a partner, settling down, and having children. Or so they say. The expectations for people this age what Company: A Musical Comedy — the first of three Stephen Sondheim musicals to be staged in Metro Manila this year — revolves around.

Company, which will run from Sept. 13 to 22, is produced by Upstart Productions.

With music and lyrics by Stephen Sondheim and book by George Furth, the Tony award-winning musical follows 35-year-old Bobby, a bachelor who is unable to commit to a steady relationship or marriage. The story explores his relationships with his friends — five married couples and three girlfriends — through a series of short vignettes.

Actor and singer — appropriately with The CompanY — OJ Mariano takes on the role of Bobby. He shares the stage with his fellow The CompanY member Sweet Plantado-Tiongson who plays Sarah, one of Bobby’s many married friends.

Joining them in the cast are: Michael Williams, Cathy Azanza-Dy, Ariel Reonal, Nicky Triviño, Chino Veguillas, Bianca Lopez, Cathy Azanza-Dy, James Uy, Caisa Borromeo, Jill Peña, Maronne Cruz, and Upstart Productions’ artistic director Joel Trinidad.

The musical was first staged in the country by Repertory Philippines in 1997, with Cocoy Laurel as Bobby.

Menchu Lauchengco-Yulo is reprising her role she played in that first production — Joanne, a cynical woman who is on her third marriage with the understanding Larry. Joanne’s is the powerful song “Ladies Who Lunch,” first sung by comedienne Elaine Stritch.

“I was very happy when Topper asked me if I was willing to come back and do Joanne again because I felt when I did it in the ’90s, I was a little too young for it. I feel I can connect with the character more,” Ms. Lauchengco-Yulo said, during the press launch on Sept. 5 at the Maybank Performing Arts Theater in Taguig City.

“Joanna is much older, and she’s been through several marriages. So, I understand what she’s going through more now,” she added.

“It’s basically about marriage, commitment, and friendships. It’s also about how relationships evolve over time. Everyone kind of goes through it,” director Topper Fabregas said of the story.

“When Stephen Sondheim writes his musicals, everything he writes has purpose — the way a song is written, the lyric[s] he says, and a fun part of the process is learning the music and trying to understand it and hoping that the cast understands it as well. So that the choices they make are from the evidence in the music,” musical director Rony Fortich said.

Company: A Musical Comedy runs from Sept. 13 to 22 at the Globe Auditorium, Maybank Performing Arts Theater, BGC Arts Center, Taguig City. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999). — Michelle Anne P. Soliman

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