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ROS stops Phoenix rise

By Michael Angelo S. Murillo
Senior Reporter
THE Rain or Shine Elasto Painters edged out the Phoenix Pulse Fuel Masters in their battle of league-leading teams in the PBA Philippine Cup on Sunday at the Smart Araneta Coliseum, winning, 98-94, in overtime.
Displaying anew their free-flowing attack with contributions coming from different directions, the Elasto Painters (6-1) held tough amid a stiff challenge to notch their fourth straight win in the season-opening Philippine Basketball Association tournament and overtaking the erstwhile undefeated Fuel Masters (5-1) at the top of the standings.
The two teams engaged in a slugfest to start the contest, at loggerheads at 17-all by the 5:02 mark of the opening quarter.
Rain or Shine though would have a stronger finish, outscoring Phoenix, 7-3, the rest of the period to go on top, 24-20.
The Elasto Painters sustained their control over the Fuel Masters to start the second frame.
They would hold a 33-26 advantage midway on the lead of big men Beau Belga and Raymond Almazan.
Jason Perkins and Calvin Abueva tried to rally back the Fuel Masters but the Elasto Painters would not budge to take a 45-36 lead at the break.
In the third period, Phoenix went on a ferocious rally, led by gunner Matthew Wright.
It pulled even at 56-all at the 5:45 mark.
Mr. Almazan though would string up six quick points after to start another Rain or Shine pullaway.
When the third-quarter smoke cleared, the Elasto Painters continued to hold sway, 70-61.
Phoenix opened the fourth quarter with a 4-0 run to narrow the gap at 70-65 in the opening two minutes.
Rain or Shine managed to keep its opponent at bay in the next six minutes but the Fuel Masters were undeterred, coming to within a point, 79-78, with 3:41 to go.
But much like what it has been doing all game long, the Elasto Painters would finds ways to extricate themselves from the bind, racing to an 83-78 lead with two minutes left on the game clock.
The Fuel Masters cut their deficit to three points a couple of times in the next minute but Gabe Norwood was able to answer for Rain or Shine each time.
The count stood at 87-82 with 57 seconds to go in favor of Rain or Shine.
Mr. Wright pushed Phoenix to within two points, 87-85, with a triple at the 47-second mark.
Mr. Norwood tried to add to their lead but his jumper was blocked by Mr. Abueva.
Phoenix sued for time with 21 seconds to go to set up a play.
It was a successful ploy as Mr. Perkins knotted the score at 87-all with 13 ticks left.
Rain or Shine had a chance to win the game but James Yap’s game-winning triple attempt failed to connect as regulation expired.
The dogfight continued in extra time with the two teams levelled at 92-all with two minutes to go.
Rey Nambatac broke the tie, 94-92, with 1:34 left off a lay-up before Mr. Almazan made it a four-point cushion, 96-92, with a pair of free throws with 53 seconds remaining.
Alex Mallari made it a two-point game, 96-94, with a lay-up with 35 seconds left.
Rain or Shine, however, was not to be denied a win as Mark Borboran, off a broken play, scored the basket with 12 seconds to go that sealed the win for the Elasto Painters.
Mr. Belga and Kris Rosales led Rain or Shine with 16 points apiece with Maverick Ahanmisi, Messrs. Almazan and Nambatac adding, 13, 12 and 10 points, respectively.
Mr. Perkins had a career-high 27 points for Phoenix with Messrs. Abueva and Wright adding 16 points apiece.
“It was another good win for us. But the thing about this was how we wanted it,” said winning coach Caloy Garcia in describing their victory.

George’s 45 tops Harden’s 42 as Thunder ground Rockets

LOS ANGELES — Paul George outgunned James Harden in a matchup of MVP candidates, and the Oklahoma City Thunder erased a 26-point deficit to escape with a 117-112 win over the host Houston Rockets on Saturday.
George finished with a game-high 45 points plus 11 rebounds, torching the Houston defense with six 3-pointers plus 15-for-18 free throws.
George’s four free throws inside the final four seconds sealed the win after Russell Westbrook slipped through the defense to convert a layup and give the Thunder the lead for good at 113-112 with 26.9 seconds left.
Westbrook matched an NBA record set by Wilt Chamberlain with his ninth consecutive triple-double: 21 points, 12 rebounds, and 11 assists. The Thunder posted a 53-39 edge on the glass.
Harden totaled 42 points, his 29th consecutive game with at least 30, but he missed a contested 3-pointer after Westbrook pushed the Thunder ahead.
Chris Paul nearly posted a triple-double (18 points, 10 rebounds, nine assists) in his strongest performance since his return from a hamstring injury.
The Thunder matched the Rockets’ 42-point second quarter with a 42-point third period, keyed by 7-for-12 3-point shooting. After committing just two turnovers in the first half, the Rockets had six in the third quarter and collapsed with 1-for-9 shooting from behind the arc.
Still, the Rockets led 86-79 before Thunder guard Dennis Schroder closed the frame with 11 consecutive points to pull Oklahoma City even at 90-all entering the fourth. Less than three minutes into the final frame, the Thunder led 98-92, and the Rockets were left scrambling.
Two runs sparked the Rockets’ run to their 26-point lead in the first half.
Westbrook pulled the Thunder even with a midrange bank shot at the 1:47 mark of the first quarter before Houston bridged the opening two frames with an 11-0 burst that featured treys from Iman Shumpert, making his Rockets debut, Gerald Green, and Austin Rivers.
When Paul capped that rally with a midrange jumper, the Rockets led 36-25, and Oklahoma City struggled to build momentum against its lackadaisical ball security and the Rockets’ perimeter shooting.
Houston had pushed its lead to 58-42 despite a mini-surge from Westbrook before landing what appeared to be a devastating blow: a 10-0 run that included 3-pointers from Paul and Harden plus three Harden free throws after Paul converted a technical assessed against George for protesting a call.
The Rockets were 12 of 24 from deep late in the first half before missing five consecutive 3-pointers, leave the door ajar for a comeback.
RAPTORS SURVIVE KNICKS IN GASOL’S DEBUT
Kyle Lowry scored a game-high 22 points and hit the 3-pointer with 7:03 remaining that gave the Toronto Raptors the lead for good Saturday night in a 104-99 win over the host New York Knicks.
Serge Ibaka registered a double-double (15 points and 13 rebounds) for the Raptors, who have the second-best record in the Eastern Conference (41-16) and have won four consecutive games. Danny Green scored 14 points and sank three straight 3-pointers in the fourth for Toronto. Norman Powell also had 14 points, while Kawhi Leonard (11) and Pascal Siakam (10) also scored in double figures.
Marc Gasol, playing his first game for the Raptors since he was acquired from the Memphis Grizzlies on Thursday, scored seven points and pulled down six rebounds in 19 minutes as a reserve. Gasol came off the bench for the first time since his rookie season in 2008-09.
Kevin Knox scored 20 points, and DeAndre Jordan posted a double-double with 10 points and 18 rebounds for the Knicks, who tied a franchise record by losing their 16th straight game. Mitchell Robinson scored 15 points, Kadeem Allen added 14 points and Dennis Smith Jr. chipped in with 13 points and six assists for New York, which has the worst record in the NBA (10-45) and has dropped 24 of 25 and 29 of its last 31 games.
Despite the vast difference in fortunes between the teams, the Knicks gave the Raptors all they could handle Saturday.
After Leonard opened the game with a 3-pointer, the Knicks scored the next 14 points. They also tied the game three times early in the fourth quarter before Robinson’s old-fashioned three-point play gave them an 86-85 lead — their first since a 38-36 advantage with 3:48 left in the second quarter.
But Lowry responded for the Raptors with his go-ahead three. After Jordan missed a pair of free throws, Green drained three 3-pointers during a 9-4 run — interrupted only by a pair of free throws and a layup from Allen — to give Toronto a 97-90 lead with 3:28 left.
The Knicks closed within 99-96 on Knox’s 3-pointer with 1:59 left. They had two chances to get within one, but Mario Hezonja and Smith each missed jumpers, and the Raptors iced the game by hitting five of their final six free throws. — Reuters

‘Customer centricity’ key to success of Milo Summer Sports Clinics

FOR 36 years now, the annual Milo Sports Clinics have been a much-awaited activity for children in the summer as it continues to highlight sports as a means not only to get kids active but also to teach valuable lessons one can learn outside the classroom.
Started with just three sports in 1983, namely, basketball, swimming, and tennis, the Milo Summer Sports Clinics program throughout the years has expanded to include more sports in its roster to 19 now.
Milo officials said key to the success of the program all these years has been their thrust to partner with esteemed sports organizations with which they work with in developing a “customer-centric” approach in doing things.
“One of the key values we have as Milo Sports is customer centricity, meaning, we are sensitivity to the needs of our consumers. So we listen to their concerns and discuss them with our partner sports organizations and from there we create solutions that will better serve the consumers,” said Lester Castillo, Milo Philippines Sports Executive, in an interview with BusinessWorld at the launch of the 2019 edition of the summer clinics on Feb. 7.
This year, with clamor to expand the program south of the country, Milo is making it more accessible to aspiring young athletes in the Visayas and Mindanao region.
Officials said that beginning end-March, the clinics will be available in over 700 venues to more than 30,000 children nationwide.
Also this year, recognizing the tremendous pickup they have been getting from Filipinos and how such are performing well in international competitions, the sports of arnis, ultimate frisbee, and wushu are now part of the program.
Said sports join stable disciplines of badminton, basketball, chess, fencing, football, futsal, golf, gymnastics, karatedo, lawn tennis, parkour, swimming, table tennis, taekwondo, touch rugby and volleyball.
To enhance the summer clinic experience of the participants, select clinic organizers will offer a Milo Welcome Kit that contains an exclusive Summer Sports Clinics drawstring bag and Milo to ensure the participants will get the energy nutrients they need when they embark on their summer courses.
“We look forward to nurture more children to be champions not just athletes but also as individuals,” Luigi Pumaren, Milo Sports Marketing Executive, also said at the launch.
The 2019 Milo Summer Sports Clinics is endorsed by the Department of Education, Philippine Olympic Committee and Philippine Sportswriters Association.
To enroll and for more information on the clinics and Milo Philippines, log on to www.milo.com.ph or check out the Milo Philippines Facebook page at www.facebook.com/milo.ph. — Michael Angelo S. Murillo

Kaya AFC Cup home games at Panaad Stadium

WITH its home turf unable to secure the nod to host an Asian Football Confederation (AFC) contest, Kaya FC-Iloilo will play its home matches at the Panaad Park and Football Stadium in Bacolod, the team had announced.
In a release shared to members of media late last week, Kaya, the Copa Paulino Alcantara champion, said “despite exhausting all efforts to prepare the venue,” the Iloilo Sports Complex was ruled still short of the stadium standards required to host an AFC event by organizer, prompting the team to turn to somewhere else.
It was able to find a willing and welcoming host in Panaad Stadium, home of Ceres-Negros FC, which incidentally is the only available AFC-approved stadium in the Philippines.
Despite not being to play its home matches in Iloilo, Kaya is still appreciative of the efforts of the local government of Iloilo to help the team in every possible way.
“Kaya FC–Iloilo would like to express our gratitude to the Provincial Government of Iloilo for their unwavering support over the first year of our flourishing partnership, and for all the efforts in upgrading the Iloilo Sports Complex. We remain committed to developing football in the region, and we are hopeful that soon we will be able to give Iloilo a firsthand experience of the excitement of hosting AFC matches,” the Kaya release stated.
It went on to say that it has Iloilo in its mind and heart as it trains hard for the AFC Cup even as it encourage its fans to come to Bacolod and support the team.
“The team still intends to train in Iloilo in the lead-up to our AFC Cup games, and the club would like to invite all our supporters to make the short trip with us from Iloilo to Bacolod. Your voice and encouragement would be a massive help in our return to the Asian stage,” said Kaya.
In the AFC Cup, which kicks off later this month, Kaya is bracketed in Group H along with Home United FC of Singapore, Lao Toyota FC of Laos and PSM Makassar of India.
It opens its campaign on March 13 at Panaad against Home United.
Also representing Philippine club football in the tournament is Ceres, which is lumped in Group G. — Michael Angelo S. Murillo

Pelicans’ Davis uncertain about Saturday status

ANTHONY DAVIS’ playing status for the New Orleans Pelicans’ Saturday road game against the Memphis Grizzlies was uncertain after the star forward made an awkward return to action Friday.
The six-time All-Star played for the first time in three weeks as the Pelicans posted a 122-117 home victory over the Minnesota Timberwolves on Friday, but he sat out the final 15-plus minutes even though the contest was close until the final seconds.
As the Pelicans prepared for their late-night flight to Memphis, Davis said he was going to talk to coach Alvin Gentry about whether he would play in the second of back-to-back games.
Davis was on the court Friday for the first time since making a trade request two weeks ago. He was sidelined by a finger injury at the time of the request, then the Pelicans held him out while waiting to see if they got a trade offer worth accepting before the Thursday deadline.
The New Orleans crowd booed Davis when he was introduced Friday, then each time he touched the ball in the early going.
“I was surprised,” Davis said. “It was definitely awkward, but it doesn’t bother me. I was just happy to be able to play the game I love.”
Gradually, more and more fans started cheering Davis as he went on to score 32 points and grab nine rebounds in a little less than 25 minutes, making 11 of 15 field-goal attempts and 10 of 11 foul shots.
Gentry ultimately left Davis on the bench with the game on the line.
“I was ready,” Davis said.
Gentry said he didn’t want Davis’ minutes to exceed his pre-determined number even as the once-hostile crowd chanted for Davis to go back in during a fourth-quarter time out.
“I think he played well when he was in there,” Gentry said. “We’ll figure out his minutes as we go along.” — Reuters

Benilde sports center, dorm set to open later this year

CONSTRUCTION of the first sports center and dormitory for scholars and athletes of the De La Salle-College of Saint Benilde is coming along well with the facility set to open its doors by August.
A five-storey structure, the Benilde Sports-Dorm Building will be the home of varsity players of different sports programs such as basketball, volleyball, badminton, and swimming. It will likewise feature studios and training rooms for taekwondo and other martial arts, a gym for weight and endurance drills, plus other physical therapy amenities.
In addition for athletes to have the access to several athletic facilities, the property is proposed to provide the necessary services for scholars to be more responsive to their academic needs.
The building, which broke ground in 2017, will likewise allocate accommodation for transient guests, such as visiting professors, lecturers, and exchange students from the partnerships with different academic and non-academic organizations and private corporations.
Located at a 4,196.8-square mater lot area at the end of San Isidro St. in Pasay City, the Sports-Dorm Building, too, is touted as introducing an inclusive approach for persons with disabilities.
Design-wise, the building is incorporating structure and elements consistent for tropical countries, taking into consideration proper natural ventilation and solar orientation for specific areas, fortified by advance engineering technology, the school officials said.
“The Sports-Dorm Building will serve as a sports center that can be called Home of the Blazers. It will be convenient for the athletes. They will not need to travel early in the morning from their respective homes for training. Once done, they return back to the dorm to prepare for school,” shared Stephen Fernandez, Director of the College’s Center for Sports Development. Adding, “It will likewise have sports facilities that are in accordance with internationals standards.”
The Sports-Dorm Building is part of the school’s Benilde Campus Development Master Plan (Benilde CDMP), which is designed to identify major infrastructure development in line with the push to constantly grow the institution. — Michael Angelo S. Murillo

Streamlining SBP program

Yeng Guiao, Patrick Aquino, Jong Uichcico, and possibly, Tab Baldwin are all under the coaching stable of the Samahang Basketball ng Pilipinas.
Al Panlilio, head of the basketball’s governing body, has streamlined the group’s program, naming three of these elite coaches to key positions.
“We have challenges and it’s about time changes are made,” said Panlilio. “The SBP’s vision is to be recognized in the regional and global levels as a world-class national governing federation.”
Guiao, presently the headcoach of Gilas Pilipinas in the ongoing FIBA World Cup qualifier, took over as head mentor for the squad just a few months ago right after the veteran bench tactician coached the national team to the Asian Games last year.
His current appointment would mean that he would call the shots for the men’s team for a longer term, one that would enable him to see young and up coming potential stars like 7-foot-1 center Kai Sotto, 6-foot-10 AJ Edu, 6-foot-6 Kobe Paras and guards Ricci Rivero and Thirdy Ravena among others.
Aquino, on the other hand, has been the most successful women’s team coach in the country. His National University Lady Bulldogs posted the longest winning streak of more than 100 games and captured five straight UAAP championships.
With the national women’s basketball team, Aquino has been with the program for five years.
Uichico, a multi-titled PBA champion like Guiao, has been delegated as head of the Coaches and Sports Development and Standards while ex-pro Ronnie Magsanoc is now the head of the 3X3 program.
Rebo Saguisag has also been named as head of the Technical Commission program, while appointed as deputy is Oscar Moreno Jr.
Then, there’s Baldwin, who led the Ateneo Blue Eagles to back-to-back championships, is the top candidate for the youth squad coaching job.
The SBP is also looking to form a referee’s organization and pool the different groups in the country to unite and create one solid group.
“We should be able to unite all the referees organizations. We’re hoping to have an accreditation process for referees so we can scale up their competencies,” said Panlilio.
Panlilio reports to the SBP Board of Trustees, while under him are executive director Sonny Barrios and special assistant to the president Ryan Gregorio.
 
Rey Joble is a member of the PBA Press Corps and Philippine Sports Writers Association.
reyjoble09@gmail.com

All-Star draft

“No matter where you get picked, it’s good to be an All-Star,” Kevin Durant noted as the media peppered him with queries regarding the draft process for the National Basketball Association’s annual spectacle. He was in a much better mood than that of the other day, when he pushed back at scribes for continually ruminating on his future even with free agency still five months out. Perhaps the relative ease with which the Warriors just won over the host Suns helped, as did the talk he had with head coach Steve Kerr. In any case, it looked to be a fitting start to a good weekend.
Durant was right, of course. Making the All-Star team is a privilege, and the order with which players get to be chosen by the team captains shouldn’t matter. That said, he is also being disingenuous. For the second straight year, leading vote getter LeBron James used the top pick on him, and he tipped his hand when, after being asked what he felt, he argued, “What else is he supposed to do?” There’s pride in being part of an elite group chosen by fans, scribes, and peers. And then there’s an altogether whole other level of satisfaction in knowing you’re first among equals.
Considering Durant’s stature and experience, it’s fair to wonder why he continues to be bothered by all the chatter around his offseason options. After all, the scrutiny comes with the territory, as he himself acknowledged when he once described the atmosphere around James as “toxic.” Significantly, the draft proceedings wound up playing into his sensitive nature; he couldn’t but have been pleased to see reigning Most Valuable Player James Harden go next to last among the starters, not to mention triple-double king Russell Westbrook get traded to a neophyte All-Star.
Indeed, Durant received validation, and in spades. He relished it, hence his sunny disposition. For the Warriors, the hope is that he’ll stay upbeat en route to yet another championship. He may not, though, not with all eyes on him as he presents just about the only uncertainty surrounding their campaign. Superstardom sucks in scrutiny. Speculation comes with the territory. Saturninity comes with him.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

To the Duterte Administration: pay attention to Agriculture!

The recent spike in rice inflation and its harm on the macro-economy and poverty incidence has focused attention to long-standing failures of our agricultural sector. This is evident in comparative statistics vs. peers, e.g. farm productivity (see table below), agriculture sector growth, rural poverty incidence.
Farm Productivity Rankings, 2003 and 2013
Failed policies over decades: tunnel vision on rice self sufficiency (rice related spending accounts for over 70% of public spending for agriculture), the neglect of other crops and aqua resources where the Philippines has higher actual or potential comparative advantage, and a seriously flawed agrarian reform program that has only transformed landless peasants into “impoverished landowners,” as National Scientist Raul Fabella has found in his research.
I would invite you to read Prof. Fabella’s column, “CARPER: Time to let go” (Oct. 28, 2013),and my other fellow Introspective columnist and Foundation for Economic Freedom (FEF) President Calixto Chikimaco’s more recent “Agriculture, Agriculture, Agriculture” (November 2018) for a deeper analysis of why we are in this hole.
Looking forward, may I share with readers our FEF Statement calling for action. Some personal annotations are in italics.
TO THE DUTERTE ADMINISTRATION: PAY ATTENTION TO AGRICULTURE!
We, the Foundation for Economic Freedom, are calling on the Duterte Administration to pay special attention to agriculture because low agricultural productivity and anemic agricultural growth will increase the risk of a return of high inflation and will drag down the economy as it has in 2018.
Agriculture posted a measly 0.56% growth in 2018, way below population growth of 1.6% pa, exposing the dismal performance of this sector. Climate change and weather disturbances cannot be blamed because our ASEAN neighbors are posting healthy growth rates despite similar weather disturbances.
Without significant improvement in the agricultural sector, the government cannot hope to alleviate poverty in the rural areas where most of the poor people live.
Poor agricultural productivity will remain also a drag on the Philippine economy. High food costs translate into high wages and uncompetitiveness of our manufacturing and export sectors. Agricultural products also serve as inputs into food manufacturing. Therefore, high agricultural input costs mean high manufacturing costs and poor competitiveness.
On enhancing agricultural productivity, we ask the Duterte Administration to do the following:

1. Ensure that the P10 billion competitiveness fund for affected rice farmers under the Rice Tariffication Law be properly used to increase agricultural productivity with tight measures to prevent misuse and leakages. (We are all too familiar with past examples of bad, possibly criminal, spending — election linked fertilizer and pesticide programs, most loans under the WTO adjustment fund that went bad, “farm to pocket roads,” and suspicious procurements by NFA. This will need to be addressed more strictly in the IRRs of this new law. A straightforward use should be to directly assist affected marginal rice farmers , along the lines of the Conditional Cash Transfers program. Another would be to support much needed farm mechanization to realize greater efficiencies.)

2. Make rural infrastructure a significant component of the country’s Build-Build-Build Program.

3. Certify the Public Service Act Amendments as urgent in order to increase foreign investments in shipping and ports and thereby lower logistical costs for farmers trying to reach the market.

4. Amend the Comprehensive Agrarian Reform Law to reverse the fragmentation of farmlands, make CARP lands bankable, and enable efficient farmers to expand beyond the legal ownership limit of five (5) hectares.

5. Increase the budget for agricultural research and development, especially for research into crops that will be resistant to climate change. (I would add here, revisit and revamp broken agriculture extension program. This has been ill-designed under the Local Government Code — devolved to the municipal level, when it should have been done at the provincial.)

6. Liberalize sugar imports in order to make local sugar production more competitive and to lower the input costs of our food export manufacturing sector. (Although we are bound under ASEAN to 5%, all imports now are required to pass through the Sugar Regulatory Commission. Another NFA-like situation that has already led to the exit of a large multinational investor in a beverage company because of inability to source their sugar requirements efficiently.)

To these six, allow me to add a couple more:

7. Urgent action to utilize the P80-billion coco levy funds to revive the long-neglected coconut industry. This industry employs 3.5 million Filipinos; 60% and their families live in poverty.

8. Refocus public financial institutions to support agriculture and rural development, especially the LANDBANK and the Development Bank of the Philippines. Over the years, they seem to have been distracted into simply duplicating commercial banking services of private financial institutions, instead of doing development. As a corollary, scrap the failed Agri-Agra Credit Reform Act which mandates banks to lend a certain percent of their portfolio for agrarian and agriculture activities. No private commercial bank has been able to nearly comply and all prudently chose to pay the fines instead of risking money of depositors on bad performing loans. Ultimately it is just a bad tax that raises the cost of credit to all.

 
Romeo L. Bernardo is vice chairman of the Foundation for Economic Freedom and GlobalSource Partners Philippine Advisor. He was Finance undersecretary during the Corazon Aquino and Fidel Ramos administrations.
romeo.lopez.bernardo@gmail.com

Primogeniture in family business

Primogeniture: the state of being firstborn of the same parents. In common practice since time immemorial in most cultures, the eldest child, most often specified to be the oldest male offspring, inherits real property and the family business. Is that still so in our culture?
When Henry Sy, Sr., 94 — the richest person in the Philippines and 53rd richest in the world — passed away on Jan. 19, 2019, minds riveted in awe to the estimated net worth of $19 billion that would be inherited and managed by his six children: Teresita, Elizabeth, Henry, Jr., Hans, Herbert, and Harley. Their inheritance was by automatic application of legal succession laws, although the curious question was the actual but masked real succession in corporate management above and beyond appointive top executives and the boards of his many businesses.
Henry Sy’s “SM” is a by-word for Filipino consumers, with its 63 malls all over the country which densely populated communities have come to live and depend on. As of end-2016, it also has 7 malls in China, 43 residential projects, six office buildings, and six hotels.
SM Investments owns 44.3% of the largest domestic bank in terms of assets — BDO Unibank ,Inc. It also owns 19.9% of China Banking Corp. Aside from banking, the group has investments in gaming through Belle Corp. (28%). Belle controls 78.74% of Premium Leisure Corp., which in turn owns 100% of Premium Leisure and Amusement, Inc. — owner of the license for Entertainment City. In 2017, SM Investments acquired a 34.5% stake in Negros Navigation Company, Inc., the parent company of 2GO Group, Inc., marking the conglomerate’s entry into the logistics sector (rappler.com, June 28, 2017).
Like many family businesses that have grown humongous in the patriarch’s Midas touch, Henry Sy’s conglomerate had been weaned from the founder’s direct “micro-managing” and gradually turned over to professional managers at the highest levels. ShoeMart (SM), a small shoe store set up in 1958 in Carriedo, evolved into SM Department Store, Inc, and branched out into supermarkets, after which the combined department stores and supermarkets became SM Megamall — all run directly by Henry Sy Sr. In the 1990s, these were already too big a group to handle directly by himself and his children, with the participation of long time-friends and other relatives, and SM Prime Holdings under streamlined professional management was listed in the Philippine Stock Exchange. By 2005, the SM Investments Corporation (SMIC) was inaugurated. When Henry Sy, Sr. turned 90 years old, only three of his children were on the board of SMIC: Teresita Sy-Coson as vice chairperson, Henry Sy, Jr as vice chairman, and Harley Sy as president. (rappler.com, Apr 12, 2014). In April 2017, SMIC appointed longtime chief finance officer Jose Sio as CEO, taking over the post long held by 93-year-old patriarch Henry Sy, Sr. since he founded the group in 1958 (philbizwatcher, Apr. 27. 2017).
But the oldest child in the family, the primogeniture, Teresita “Tessie” Sy-Coson, seems to be the de-facto successor to the business icon Henry Sy, Sr. and his conglomerate. Remember that in November 1972, when he opened SM Quiapo, SM’s first standalone department store, Henry Sr. entrusted his 22-year-old daughter Teresita to run the store (Forbes magazine, retrieved Jan. 19, 2019).
In an interview with Bloomberg, Tessie Sy-Coson said she sits down with her five siblings for lunch every Tuesday to plot the direction of the Philippines’ largest family-run conglomerate. The sessions start at 11:00 and invariably spill over the allotted two hours. “The meetings are not always quiet…the two daughters and four sons get one vote each, and the majority wins in the final decision” (Bloomberg.com, April 8, 2014). Very democratic and the group decision becomes impersonal and undifferentiated. But of course, the integrator clearly is Tessie, the oldest child, even more definitely now that the patriarch has passed on.
In a study by De La Salle University, “Filipino-Chinese Millennials’ Attitude on Family Businesses Succession (2017), birth order proved to be highly significant as it was in Zellweger, Sieger & Englisch’s (2015) paper that the rule of primogeniture remains to be a common practice in family businesses (dlsu.edu.ph/wp-content/uploads/2018/01). From a survey of Filipino-Chinese millennial successors, sex/gender (e.g., Tessie Sy-Coson is female) was found to be insignificant to the efficient and effective choice of an offspring successor, compared to other significant factors like the order of birth, predecessor’s trust in the successor’s abilities and intentions, personal needs alignment of the successor and rewards from the business (Ibid.).
The significance of the birth order is the built in, “in-house” preparation and pre-conditioning of the other children about the eldest carrying most of the burden of succession, as in, perhaps, Tessie Sy-Coson’s case. There would be less envying, less ambition if the eldest is already perceived to be succeeding, and in her case, Tessie Sy, at 22, was already heir apparent in her early responsibilities in the very young SM stores. The general finding on predecessor’s trust in the successor’s abilities and intentions, being as important to managing and communicating the predecessor’s expectations on the successor, was carefully and instinctively done by the patriarch. Home-grown, self-styled, street-smart Henry Sy, Sr. has shamed academics and other businessmen on effective succession planning.
In the critical human behavior in the family-business scenario (putting aside the “corporate façade” of “professional managers and hired non-family COOs/CEOs” vis-a-vis the family harmony of the COO — “child of the owner”), maintaining the pecking order in the family makes for ensuring peace and order among the siblings in their corporate roles.
Even then, Henry Sy, Sr. was not parochial and did not revolve his business around his family. Perhaps he was wary even before being warned by Harvard management experts that “only 30% of family businesses last into a second generation, 12% remain viable into a third, and 3% operate into the fourth generation or beyond. Even those that do continue often see their value decline significantly when power changes hands at the top” (Harvard Business Review, April 2015 Issue). When he started getting weaker (into his late 80s), he employed professional COOs and CEOs to help run his businesses and to train the third generation.
And so the Sy siblings do as their father did, in succession planning. In 2016, long-time SM Prime president Hans Sy announced “early retirement” and relinquished day-to-day operations to chief finance officer and executive vice-president Jeffrey Lim. Older brother Henry “Big Boy” Sy, Jr. remained chair of SM Prime. The Sys’ Banco De Oro Unibank, has had Nestor Tan at the helm even when BDO was still much smaller. Oldest in the third generation (Henry Sy, Sr.’s eldest grandchild), Hans’ son, Hans “Chico” Sy, Jr., is an Australian-educated engineer handling all the design and construction-related aspects of SM Prime.
Henry Sy, Sr. was a simple, humble man who was known to be most concerned about his family before the material bounty that had changed his life so dramatically — a family man who knew so wisely how to handle his family and how to handle his giant businesses.
 
Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.
ahcylagan@yahoo.com

Folks, meet Erin

With the Supreme Court under pressure to grant the wishes of Malacañang and a House of Representatives acting as its virtual rubber stamping, the Senate is the lone body that mitigates and provides checks and balances on the executive branch. Hence, having a strong Senate composed of competent lawmakers is vital to setting the nation on the right course.
Selecting senators should not be based on their popularity, their political alliance or who their relatives are. Rather, it should be based on the candidate’s qualifications and body of work. Let us not forget the role that a senator plays: A senator authors, co-authors, sponsors and passes laws. He scrutinizes bills/acts and evaluate its long terms effects. He amends, provides addendums and revises proposed laws. A senator approves and/or ratifies international treaties. He approves or rejects presidential appointments. He adjudicates impeachment proceedings and conducts inquiries on the missteps of presidential appointees.
To put it into metaphor, the Senate acts like the brakes and its steering wheel of national policy while the executive branch acts as its accelerator.
The demands of the job requires senators to have qualifications that are both diverse and extensive. Qualified senators must have a legal background, an economic background and exposure in social development work. They must have a working knowledge of how government operates and a deep understanding of the Philippines’ position in global geopolitical affairs. Above all, a senator must be beyond reproach in integrity, neither doubted for committing graft, let alone convicted for it. A senator must be young enough, healthy enough and lucid enough to meet the physical demands of the job. Comedians, actors and athletes should not be supported but looked upon for what they are, opportunists.
Political alliances should not matter. In fact, the more diverse the political leanings of our senators, the more advantageous it is for us. A politically diverse Senate assures us that bills are vetted without political bias and that inquiries are conducted without regard for political favor. It assures us that checks and balance are firmly in place.
A handful of incumbent senators have proven their independence, competence, diligence and moral integrity. They are the senators who have served the public well and whom I reckon deserve another term. They are: Senators Cynthia Villar, Grace Poe, Sonny Angara, Serge Osmeña and Bam Aquino. These five senators are real work horses whose loyalty to the Filipino people supersede party interest.
I also support certain candidates, who, while lesser known, possess the qualification of a good senator and whose presence in the Upper House will make it stronger. I intend to write about them one at a time in the hopes that it will give you, my readers, a chance to know them better. I already wrote about Chel Diokno (son of the late senator and nationalist Pepe Diokno) some weeks ago. I chose Chel because he has one of the sharpest legal minds in the country and because he is determined to fix our broken and corrupt justice system.
Another candidate I endorse is Lorenzo “Erin” Tañada III.
Erin’s name may sound familiar to some as he was a member of the House of Representatives in the 13th, 14th and 15th Congress. He is the son of senior statesman and former senator Wigberto Tañada, another leading light in the nationalist movement of the Rectos, Tañadas and Dioknos, among others.
Erin is a product of the Ateneo and also a lawyer like his father and his illustrious grandfather, Lorenzo Tañada, the Grand Old Man of the political opposition to the Marcos dictatorship in the 1970s.
Last week, Erin and I met for coffee, as I wanted to find out what he had been up to since ending his stint in Congress back in 2013. Erin has spent the last few years providing free legal consultation through his morning TV show at UNTV. He does pro bono legal work also for distressed listeners of DZMM. A dad of two children, Erin feeds the family by practicing corporate law.
People should be reminded about Erin’s impeccable body of work in Congress. He is best remembered as the champion of the Freedom of Information Bill, a bill that would have made all government transactions (except those that relate to national security, executive privilege, etc.) transparent to the public. But differences with the Aquino administration then, over that initiative, was a sensitive point in their alliance. FOI would have been a game changer in good governance. The bill made it past the bicameral hearing but fell short of being enacted into law due to lack of Palace support.
Other bills authored or co-authored by Erin were the Cheaper Medicines Law, Renewable Energy Law, CARP Extension Program, Anti-Torture Act and Amendment of the Amusement Tax, among others. Erin was one of the more prolific and hard-working congressmen of his time.
What will he bring to the Senate, if elected? Apart from his profound knowledge of the law, Erin’s purpose in the Senate will be to challenge the status quo. He intends to ask the hard and uncomfortable questions about the state of affairs today and come up with better alternatives. We talked about three issues, in particular, during our short time together.
One of them is why the country has not achieved food security despite more than 30 years of land reform and bestowing upon the Department of Agriculture one of the highest budget allotments year after year.
The time has come to change our agricultural policies as they are obviously not working, opined Erin. Not only have we been unable to achieve food security, our local agricultural products are among the most expensive in the region, unaffordable to the poorest among us. Our farmers are aging and there is no program to develop the next generation of agricultural workers. Productivity of the agricultural sector is so low that it is a drag to the economy.
There seems to be no relief in sight as Agricultural Secretary Emmanuel Piñol only offers excuses, not solutions, to the bleak realities of the agricultural sector.
We need to revolutionize the agricultural industry by investing in technology-based farming and post-harvest facilities, said Erin. We also need to incentivize the industry to attract investors engaged in large-scale industrial farming. What we need are more operations like that of Dole, Del Monte and Tadeco (banana plantations in Davao del Norte).
As for small-scale farmers, he says fertilizers should be subsidized by the state in order to make it more profitable for farmers.
Another question that Erin is keen to ask relates to foreign policy. While he agrees that the move of the President to adopt an independent foreign policy is correct, the reality is that the country has in fact tilted away from the US and leaned towards China. It is by no means an independent foreign policy — it is a pro-China policy.
The agreements entered into by Malacañang with China, particularly the Memorandum of Agreement to jointly explore the West Philippine Sea for oil and natural gas, should be carefully scrutinized. Neither the Senate nor the House has been furnished copies of the agreement and many fear that it may have sold the country to China for a song. Erin wants to make sure that Philippine sovereignty and Philippine interests are protected in all dealings with China.
China has expansionist ambitions and they have engaged in a creeping invasion of our territories. They cannot be trusted.
Contrary to Malacañang’s propaganda, it is not true that the Philippines has no options given China’s military strength and bullying tactics. Why should this government accede to everything China wants like a coward with its tail between its legs?
We have options. We still have the mutual defense treaty with the US. We can coalesce with other claimants of the West Philippine Sea — Vietnam, Indonesia, Brunei and Taiwan. We can go the diplomatic route and enforce our victory at the United Nations Arbitration Court in the Hague. The motives behind Malacañang’s red-carpet treatment towards China are suspect and should be looked into.
The state of corruption in government is another issue that needs to revisited.
Why have the triad of senators — Revilla, Estrada and Enrile — in the Napoles pork-barrel scam be allowed to walk away as free men?
Amid all the corruption going on, not the least of which are large-scale smuggling of drugs by Chinese nationals, why has there only been a handful of cases filed by the Ombudsman? And for whose benefit is that performance, as such? These are the hard questions that need to be answered.
A man like Erin will add substance to the Senate. By asking the inconvenient and uncomfortable questions, policies and laws will be better thought out.
 
Andrew J. Masigan is an economist.

The prophet motive

By Tony Samson
THE TV interview format has become quite a staple. These are now accompanied by visuals like graphs, charts, picture windows in the background with trees and moving traffic, and videos of people walking fast along the sidewalks to enhance the drabness of talking heads. The interviewer features a designated resource person to provide some expertise on the topic at hand.
Not only are such experts supposed to explain the jargon and context of any topic, say, on economics, they are also asked to give forecasts on GDP growth, tourist arrivals, exchange rate of the peso, inflation, stock market prices, and the property market. And they unhesitatingly oblige. Seldom do they demur — that’s not my area of expertise.
But how are these experts chosen to serve as resource persons? Is the claimed expertise vetted by an objective process, like an exam? (What are the components of GDP?) Is there a group that bestows legitimacy on an interviewee’s expertise, like maybe “Experts R Us”?
Certain areas of knowledge require formal education such as medicine, engineering, or law. These disciplines/careers involve at least a four-year academic preparation and require passing government tests to be bestowed a title. The method ensures a minimum level of knowledge on a subject. Even here, a civil rights lawyer may not be able to explain the legal aspects of mergers and acquisitions. Neither can an obstetrician explain the dementia of public officials.
Softer areas like political analysis, film criticism, writing, or physical fitness rely on a mix of reputation, word of mouth, work experience, citations, dissertations, awards, and taste. Such porous standards allow the glib ones to claim appropriate knowledge, needing only the endorsement of someone known to the production assistant of the talk show.
As a resource person, it is important to appear to know what you are talking about. The ability to dazzle requires the dispensing of a fair amount of male cow manure.
Let’s take a presumptive expert on digital marketing. It is not necessary for her to understand concepts, only to confidently use buzz words like condiments to spice up an otherwise bland piece of meat. The farther off from ordinary English something strays, the better. Thus, “share of market” may be too readily understood. It’s better to use “big data” and “customer insighting” in one sentence. While these sound like ordinary words, they will seem unfamiliar when combined to come up with unrelated meanings.
More often, resource persons on TV hew to political analysis. Somebody with the appropriate jargon can talk about random samplings and share of mind, the effect of perception on reality, and how to address a drop in “positives.” This talking head, usually from academe, is identified in the character generator crawling below his face as a “political analyst.” If he is insistent, he can even choose his own of “political strategist” to achieve credibility with potential clients.
Claims of expertise in soft fields are not as life-threatening as feigning mastery of brain surgery in a hospital. No life is at risk if a worthless opinion is proffered on national TV. The illusion of knowledge can even be entertaining.
TV moderators don’t mind guests losing their cool. Ironically, it is the most knowledgeable and informed guest who is so overwhelmed by the patent ignorance of his co-panelists that he can comes across as incoherent. Frustration with non-experts can render the truly conversant guest apoplectic and yes, discombobulated. He then gets to look like the blubbering idiot in the group of ignoramuses.
The hardest to catch are the prophets of boom who exhibit the enthusiasm of a used car salesman. They back up their forecasts with stats — 20% of new office buildings ready for occupancy in three years have already been locked up. Follow-up question: At what prices?
What is the motivation of the faux expert for this version of a con game? The illusion of expertise can translate into commercial consultancies. The false prophet can have a financial motive after all.
The poseur manages to get invited again and again on TV to offer his voodoo analysis. However, repetition, especially of the same jokes, in different programs (with the same audience profile) can send this resource person to the sidelines. He resurrects himself much later for his fake expertise, also known as artificial intelligence. Now, there’s another topic to sink his teeth into. It just takes machine learning.
 
Tony Samson is chairman and CEO, TOUCH xda.
ar.samson@yahoo.com