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TNT KaTropa fight for playoff lives vs NLEX

By Michael Angelo S. Murillo
Senior Reporter

THE TNT KaTropa try to stave off outright elimination in the PBA Philippine Cup today when they take on the streaking NLEX Road Warriors in the resumption of league action at the Mall of Asia Arena.

Set for 4:30 p.m., TNT, currently outside of the quarterfinal picture with a 4-6 record, looks to make full use of its final game of the elimination round of the Philippine Basketball Association (PBA) to notch win number five and get a shot at a playoff for a quarterfinal spot.

A defeat would mean automatic exit for the KaTropa, joining already-eliminated Meralco Bolts and Kia Picanto.

The KaTropa have lost three straight entering the contest, a turn of events that has stymied considerably their push for the next round.

TNT last lost to GlobalPort Batang Pier, 99-84, in a game where it was practically dominated on right from the get-go.

It fell by 22 points, 34-12, by the end of the first quarter and just could not get much headway in their comeback bid the rest of the way.

Jayson Castro led TNT with 24 points while Kelly Williams added 21 of his own.

Despite walking on thin ice, the KaTropa remain upbeat of their chances of advancing provided they execute the way they are supposed to against Road Warriors.

“Our backs are against the wall but we still hold our fate in our hands and we can give ourselves the chance to advance if we win in our last game,” said TNT coach Nash Racela heading into today’s game.

“We need to correct some things in our game and hopefully we get to succeed in that,” he added.

TNT gets to parade new acquisition Jericho Cruz today after getting him via trade from the Rain or Shine Elasto Painters for rookie Sidney Onwubere, the KaTropa’s first-round pick in the 2018 draft and guard Kris Rosales.

FIFTH STRAIGHT WIN
Looking to crush TNT’s playoff hopes is NLEX, winner of its last four assignments and already assured of quarterfinal berth at 6-4 and is out to solidify its place in the top six and play in the best-of-three series in the next round.

As per tournament format, only the top eight teams at the end of the elimination round move on to the next phase with the top two enjoying a twice-to-beat edge over the two lowest teams while the middle teams battle in a best-of-three series — #3 vs. #6 and #4 vs. #5.

The Road Warriors’ latest win came over the Blackwater Elite, 93-90, on Feb. 18, which saw guard Kevin Alas ignite a huge fourth-quarter run to pull the rug from under the Elite.

Mr. Alas finished with 25 points, 16 coming in the payoff quarter where NLEX initially overhauled a nine-point deficit, 74-65, entering it before completing the come-from-behind win.

Rookie Kiefer Ravena, who is coming off a great showing in the second window of Gilas Pilipinas’ FIBA Asian World Cup Qualifiers bid, added 23 markers for NLEX last time around.

“According to our calculations, six wins get you to the quarterfinals. But there’s still a lot of games to be played,” said NLEX coach Yeng Guiao following their win.

“We’ll just try to avoid the seventh or eighth spot. Five or six is fine with us. We just want to compete on even terms in the next round,” he added.

Meanwhile, playing in the 7 p.m. main game are league-leading and defending champions San Miguel Beermen (8-2) and Rain or Shine (5-4).

San Miguel is already assured of a spot in the top two, along with the Magnolia Hotshots (8-2), while Rain or Shine is looking to propel its playoff push with two games left in its elimination-round schedule, including today’s game.

Lagging teams UST, UP tangle

By Michael Angelo S. Murillo
Senior Reporter

BOTTOM half teams in Season 80 of the University Athletic Association of the Philippines (UAAP) collide today as the University of Santo Tomas (UST) Golden Tigresses and University of the Philippines (UP) Lady Fighting Maroons go at it in the 2 p.m. opener of women’s volleyball play at the FilOil Flying V Centre in San Juan City.

Currently at sixth and seventh place, respectively, in the eight-team field, both UST and UP are eyeing a victory that could set them to a winning pattern as the first round of the eliminations closes out and have something to build on moving forward.

The Tigresses (2-3) are having it up and down in Season 80 as they grapple with some players out injured, including EJ Laure, who is skipping the entire season because of shoulder injury, and Filipino-Italian rookie Milena Alessandrini (knee).

UST lost in its last game against still-undefeated National University (NU) Lady Bulldogs in four sets, 25-19, 25-14, 25-19 and 28-26, on Feb. 25.

It gave NU a spirited challenge but just could not seize every opportunity given to it in the game.

Sisi Rondina continued to lead the Tigresses with a game-high 25 points, 22 off spikes.

Carla Sandoval had 12 points while Dimdim Pacres added seven for Kungfu Reyes-coached UST.

UP (1-4), meanwhile, is in a far deeper hole as it has lost four straight matches after opening its season campaign with a victory.

The Lady Maroons lost in their “Battle of Katipunan” with the Ateneo Lady Eagles in their last game on Sunday, 25-20, 25-22 and 28-26.

While they brought on the fight against Ateneo, UP still wound up on the raw side of things as the Lady Eagles took advantage of the crevices presented to it and did just enough to edge out their opponents.

Tots Carlos paced UP with 20 points, 17 from attacks, while Isa Molde had 16 markers.

Apart from dropping the match, the Lady Maroons lost middle blocker Jessma Ramos to an apparent foot injury in the game, which could sideline her for a while.

NU LADY BULLDOGS
Meanwhile in the main game at 4 p.m., NU (5-0) tries to extend its undefeated run to date as it battles the Far Eastern University (FEU) Lady Tamaraws (3-2).

“There is no room to relax for us. We have to continue to train hard and deliver during games because we will never know what will happen in our coming games. So we have to be ready and prepared,” said NU skipper Jaja Santiago following their win over UST in their previous game.

Santiago incidentally is leading the Lady Bulldogs in scoring with an average of 22.2 points per game.

FEU, for its part, is out to win its third straight game in Season 80 apart from angling to deal NU its first defeat.

The Lady Tamaraws beat the still-winless University of the East Lady Warriors on Feb. 24 in four sets, 25-20, 25-17, 24-26 and 25-22.

Bernadeth Pons dropped 21 markers for FEU in the win with Celine Domingo adding 19.

Toni Rose Basas and Heather Guino-o each had 12 points for the Lady Tamaraws.

Undefeated Thai fighter ‘dwarf giant’ one win from Floyd Mayweather record

BANGKOK — Unsung outside the boxing world, a Thai fighter nicknamed the “dwarf giant” is quietly closing in on Floyd Mayweather’s undefeated 50 fight record and with it an unlikely place among the sport’s greats.

At 5 feet 2 inches (1.57 m.) and weighing just 105 lb. (47.6 kg.), minimum-weight Wanheng Menayothin is shorter, leaner and significantly less wealthy than “Money” Mayweather, the brash American who was teased from retirement last year by a $100-million purse to fight MMA star Conor McGregor.

But this spring Wanheng could tie Mayweather’s 50-0 record and enter boxing lore.

His 50th bout in April or May is set to be against Panama’s Leroy Estrada in Thailand, a low-key affair that will be followed by fans and boxing enthusiasts, but not the global audience drawn to the cross-discipline spectacle between Mayweather and McGregor.

The milestone is generating boxing buzz in a country that is better known for Muay Thai, the kingdom’s boxing-style martial art that also allows kicking, kneeing and elbows to the head.

“Am I proud? Yes I am, for being on par with the superstars,” the softly spoken 32-year-old said while sitting on a tire and wrapping his fists with gauze ahead of a training session at his Bangkok gym.

His record of 49 wins with 17 knockouts has been earned against relative minnows — many of them regional fighters — but he has been dominant in the minimum-weight division and holds the World Boxing Council belt.

With his present stats he has already matched the legendary fighter Rocky Marciano, but he doesn’t dwell too much on the numbers.

“I never thought about breaking records. I just want to win every fight like all athletes who don’t want to lose. Keep winning until I quit.”

FIGHTING WORDS
Wanheng is from Thailand’s poor rural northeast.

Growing up he viewed fighting as a way out of poverty and moved to Bangkok at age 12 to train.

“When he arrived, he didn’t have the best skills, but he got to that point with determination,” gym owner Chaiyasit Menayothin said.

Wanheng’s legal name is Chayaphon Moonsri.

But like many fighters in Thailand, in both boxing and Muay Thai, he has several nom de guerres for the ring in a nod to sponsors, gyms and his own style.

His endurance in bouts combined with his size earned him the label “dwarf giant,” while his alias Wanheng Menayothin derives from the gym owner’s name.

To add to the confusion, a promotional tie-in sometimes sees him add “Five-Star Grilled Chicken” to his title because of a sponsorship deal with a Thai food giant CP.

He is not alone. Another Thai boxer competing around the same weight division punches under the alias “Knockout CP Freshmart” while other fighters have taken on the name of a Thai battery company.

Down a quiet Bangkok road fringed with palm fronds, Wanheng’s gym is in a large shed partially exposed to elements, with a ring, weights, rows of equipment, two cats and the occasional intrusive bird.

Wanheng started out in Muay Thai but made the career change as he was running out of opponents, according to the gym owner.

But the move to boxing can also bring a higher-profile and more prize money.

In preparation for the historic 50th bout, trainer Supap Boonrawd, 54, is working Wanheng hard through intense daily sparring and fitness sessions and the thud of punches landing on heavy bags fills the humid gym.

“It will be a moment of pride for him and the whole country too,” Supap said of the possible 50th victory. — AFP

SKYathon Beach Run takes on new dimension in 2018

IN recognition of the current environmental “troubles” plaguing the island paradise of Boracay, organizers of SKYathon Beach Run have stepped up their game and added jacked-up awareness on responsible tourism as part of their cause.

Now on its ninth year of staging, SKYathon is introducing #LoveBoracay as a call for a turn towards responsible tourism.

This apart from its main thrust of raising funds that would help rehabilitate the reefs of Boracay.

Happening on April 21 at Epic Boracay, SKYathon, brought forth by SKY Cable Corp., will feature three categories for runners to choose from — 3K, 5K, and 10K.

It has been opened to international runners as well so as to share their mission to more people and raise more funds for its cause.

Organizers of the first destination run in the country said reception to the changes to the run has been warm.

“Among the avid participants of the race are foreigners vacationing in the island. To open this to international delegates will elevate the race not just to a fun run but a race that the running communities around the world will look forward to each year,” said Delbert Santos, senior marketing manager from SKY, at the launch of SKYathon 2018 on Monday.

A portion of the proceeds from SKYathon will go to the coral reef rehabilitation program. Other than reef rehabilitation there is also a mangrove planting partnership with the Provincial Environment and Natural Resources Office of the Department of Environment and Natural Resources in the area.

#LOVEBORACAY
Meanwhile, #LoveBoracay is another dimension of the event that organizers are pushing for after “concerning” environmental issues were brought out by no less than President Rodrigo R. Duterte, including issues on surrounding waters and overall makeup of the island as well as violations of some business establishments.

“This year, besides pushing for the rehabilitation of the coral reefs in Boracay, we’d also like to send out a call to all tourists to take care of the places they are going to. We have to practice responsible tourism so that we can keep the beauty of nature not just for us but most especially for future generations,” Mr. Santos said.

Back to help SKY organize the SKYathon is running coach and event organizer Rio Dela Cruz with his RunRio group.

“Since it is RunRio’s fourth year in participating in the SKYathon run, I am glad that we still continue to organize events like this in Boracay island each year. I believe that because of this event we are not only promoting an active and healthy lifestyle to the people, but also saving Boracay island itself,’ said Mr. Dela Cruz of their involvement in the event.

Registration for SKYathon is now open and can be done online through www.runrio.com or onsite at selected branches of registration partners Rudy Project, Chris Sports, and Olympic Village. The Boracay Foundation, Inc. Secretariat in Boracay can also accept registrations. — Michael Angelo S. Murillo

Oba-ob and Barredo clinch Prima Pasta Badminton Open titles

RABIE JAYSON OBA-OB and Sarah Joy Barredo blasted their respective foes to capture the singles open title of the 11th Prima Badminton Championships over the weekend at the Powersmash Badminton Court in Chino Roces Avenue, Makati City.

After dethroning last year’s defending champion Malaysian Shahrul Shazwan (22-20, 21-14) in the semifinals, Oba-ob displayed consistency in both sets against fellow Michael Kevin Cudiamat in the finals to score a 22-20, 21-8 victory and bag the men’s open singles crown.

Barredo, 18, regained her women’s open singles title in third straight year by dismantling fellow national player Airah Mae Nicole Albo, 21-16, 21-13, in the championship round of the annual competition sanctioned by the Philippine Badminton Association and affiliated with the Philippine National Ranking System.

Jewel Angelo Albo seizes two singles titles by beating Lyrden Laborte twice. He rallied past Laborte, 18-21, 21-12, 21-8, to bag the boys’ singles Under-19 crown and he also beat Laborte anew in the boys’ singles U-17 finale for his second title.

Rey Angelo Pedron blasted Munir Bartolome, 17-21, 21-19, 21-14, for the boys’ singles U-15 title, while Aldreen Rae Concepcion overcame a bad start to beat Mikaela Joy De Guzman, 16-21, 21-11, 21-19, to clinch the girls’ U-19 diadem.

Anthea Marie Gonzalez won over Viana Meryl Antonio 21-15, 22-20, to take home the girls’ singles U-17 title while Angela Valle outlasted Athena Sonota, 21-14, 21-18, to cop the girls’ U-15 title.

Other champions in the competition organized by Prima Pasta chairman Alex Lim were Zeth Javier Quiambao (boys’ 13-U); Wijel Angelo Albo (boys’ U-11); Angelina Katrina De Guzman Vitangcol (girls’ U-13); and Gianna Gonzalez (girls’ U-11).

Work begins

The sought-out “change” in local sports leadership was consummated last Friday, Feb. 23, when long-time Philippine Olympic Committee (POC) President Jose “Peping” Cojuangco, Jr. lost his position to Victorico “Ricky” Vargas in special elections held at the Wack Wack Golf and Country Club.

Outvoted, 24-15, Association of Boxing Alliance of the Philippines president Vargas is now the new president of the local Olympic body and will be tasked to lead in the handling of various sports affairs in the country and look after the welfare of Filipino athletes.

Also winning at Friday’s elections was cycling federation head and Cavite Congressman Abraham Tolentino, who was voted in as POC chairman over table tennis chief Ting Ledesma, 23-15.

Mr. Tolentino ran in the same ticket as Mr. Vargas, making it a double-celebration for their group.

The election victory of Vargas was a “vindication” of sorts for his group after he ran against Mr. Cojuangco in 2016 but was eventually “disqualified” by the POC election committee at that time over “technicalities,” in particular for failing to be “an active member of the POC general assembly for two consecutive years at the time of their election” as stipulated in Article 7 Section 11 of the POC charter.

The group of Mr. Vargas contested the decision and filed for a temporary restraining order at the Pasig Regional Trial Court, which later denied the petition.

A breakthrough though happened in December last year when the Vargas camp won an election case it filed at the Pasig RTC.

The court decision ruled that POC elections on Nov. 25, 2016 for Chairman and President are “null and void” and set a reelection for Feb. 23, 2018.

Considering what they had to go through to secure the POC top post, congratulations have to go the way of Vargas and his camp.

They were determined to see their cause through and was eventually rewarded with majority of the country’s National Sports Associations throwing their support behind them.

Now that they are in position of leadership, the work begins for Vargas and Co.

And if you have been following the goings-on in that front, a lot of challenges present itself, a lot of “healing” as well.

As the Cojuangco regime, which spanned 13 years, wound up, various “problems” were presented left and right, resulting in much accusations and counter-accusations among stakeholders.

The underwhelming performances of our athletes in the last decade or so was “blamed” by critics on the leadership, or lack thereof, of Cojuangco, which the latter debunks, saying they did well with what “little” they had and won in some battlefronts.

That being said, Vargas‘ work is really cut out for him, especially in gaining back confidence at various levels in the country’s sports program and setting into motion their plans which they touted as bringing forth much-needed change.

Vargas was quoted as saying upon his election, “We are committed to the athletes. We are going to make it happen and set things right”; a welcome pronouncement and something to hold on to.

Reports have it that support has begun to pour in for Vargas from the private sector, with companies like San Miguel, Hapee Toothpaste and Ayala signifying their intention to help.

This is apart from the P20 million that sports patron Manuel Pangilinan pledged for the POC as seed money upon Vargas’ election.

The private sector support is indeed a good sign as the role it plays in sports development in the country could not be more pronounced with government resources admittedly limited.

So to Messrs. Vargas and Tolentino, and the other officials who will be put in place in the POC, all the best.

May you continue to strive in the positions you are in now and deliver on your promises and champion Philippine sports.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@www.bworldonline.com

T-Wolves sans Butler

The weekend was not a good one for the Timberwolves. After seeing acknowledged leader Jimmy Butler go down with a knee injury, they prepped themselves for the worst; given their luck, (or, rather, profound lack thereof), the development seemed to dash all hopes of a playoff run. In fact, heads were held so low that news of him suffering from a tear in his right meniscus — instead of to his anterior cruciate ligament — elicited sighs of relief. He has already had surgery, and is expected to be back in action before the end of the regular season.

Despite the unforeseen turn of events, the Timberwolves have reason to be confident of their chances to make the playoffs for the first time since 2004. They’re third in the highly competitive West with 18 games left to play, as good a spot as any to weather the short-term storm. Moreover, they have another All-Star in Karl-Anthony Towns to lean on, with such notables as Andrew Wiggins, Jeff Teague, Taj Gibson, and Jamal Crawford lending support. And it certainly helps that former Coach of the Year Tom Thibodeau is at the helm.

On the other hand, Butler’s importance to the Timberwolves’ cause cannot be overemphasized. He’s not just their leading scorer; he’s likewise their defensive anchor and, even more importantly, the foundation of their crunchtime stands. Given his unparalleled two-way play, it’s no wonder he sports a positive-15.1 net differential, which is to say they’re otherworldly when he’s on the court, and atrocious when he’s not. There’s also the not-so-small problem that the schedule presents; they may provisionally have homecourt advantage in the first round of the playoffs, but the gap between them and the 10th seed in the conference is small enough to be overcome in the homestretch.

In other words, the Timberwolves figure to be just fine once Butler convalesces, but will have to make sure he still has something to return to in the interim. It’s a tall order, to say the least, but one that Thibodeau is banking Towns & Company will be ready for given their association with their temporarily fallen leader. Presumably, the latter’s unquestioned work ethic and positive locker-room influence will have already rubbed off on them — enough, at least, to tide them over until he’s back.

Will the Timberwolves manage to stay the course? The answer won’t just determine if they’ll get to the playoffs. It’ll also underscore how ready they are for the challenges to come.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

PHL to receive some 5K firearms from ‘friendly country’ — Duterte

By Arjay L. Balinbin

SOME 5,000 new firearms from a “friendly country” will be imported to the Philippines in the next few days, President Rodrigo R. Duterte announced on Monday, Feb. 26.

“I am not at liberty to divulge it. But in the next few days, we will have about 5,000 more, a shipment coming from a friendly country,” Mr. Duterte said during the inauguration of the ARMSCOR Shooting Center, Incorporated (ASCI) in Davao City.

He added: “We will survive and we will win these pocket wars, and we will be a great nation someday.”

The President also pointed said he is considering the arming of civilians and reservists “if things get worse.”

“So I am not ready to make the order… I’m addressing myself to the civilians, [you may use] shotguns [or] .22 caliber [pistols]….If things get worse, I will allow the mobilization and maybe the purchase of [firearms for] the ROTC and those guys who have had military training. I will allow you to use high-caliber firearms.”

Mr. Duterte said his administration targets to eliminate terrorist elements in the country, notably the New People’s Army (NPA) and the ISIS group.

“These terrorists, including the ISIS and the NPA…the ISIS is really the ISIS. I do not want to expand the definition any longer because all the rebellious factions in the Moro land area are all affiliated with the ISIS,” he said.

“At the end of the day, they would group. I would not want to speculate about the MILF [Moro Islamic Liberation Front] and the MNLF [Moro National Liberation Front] but there is really a problem in the horizon, the darkening clouds of terrorism. So we will deal with them the same way.”

The President likewise stressed that all rebel groups in Mindanao will be treated as terrorists. “The way we treat the terrorists in the southern part, most of them, we will treat them the same way… I do not believe in the ideology anymore, because it is not really one which is good…”

ICC CAN’T END THE DRUG WAR
As for his war on drugs, the President emphasized that he only wants to build a strong nation for future generations. “So we might come up with a strong nation for our children and our grandchildren who are in front of us now.”

According to Mr. Duterte, “with or without the ICC [International Criminal Court]” currently conducting a preliminary examination into the “crimes against humanity” charges against him, his war against illegal drugs “will proceed,” and will “last until the last day of [his] term.”

“Let us end this. I have more than three years [left]; and, maybe at the end of my term, we would…not really get rid of everything because that’s impossible, but bring it to the barest minimum with the least casualty of people getting crazy,” the President said.

Sereno to take brief leave ahead of anticipated impeachment battle

CHIEF Justice Maria Lourdes PA. Sereno is set to take a 15-day “wellness leave” starting on the first day of March, according to her spokesperson, lawyer Jojo Lacanilao.

Mr. Lacanilao said on Tuesday the Chief Justice was scheduled to take a brief break on a later date but the expected impeachment battle made her decide to have it sooner.

“Meron siyang scheduled na wellness leave sa March. (She has a scheduled wellness leave on March),” said Mr. Lacanilao during Tuesday’s impeachment hearing by the House committee on justice. He followed by saying, “Desisyon niya, personal nya, na i-advance yung scheduled wellness leave nya sa March to a few weeks earlier. Yun yung desisyon niya. (It was her personal decision to advance the scheduled wellness leave in March by a few weeks. It was her decision.)”

Duterte: Compromise on ‘endo’ needed; ‘capitalists’ can’t be forced

By Arjay L. Balinbin

PRESIDENT Rodrigo R. Duterte, who promised to end labor contractualization or “endo” during his 2016 presidential campaign, announced on Monday, Feb. 26, that he may not be able to give what labor groups want, stressing that a compromise is needed.

“I don’t think that I can really give them all because we cannot force the capitalists [to absorb their workers]. Maybe [their employers] don’t have money, or they don’t like them, or they are lazy,” Mr. Duterte said during the inauguration of the ARMSCOR Shooting Center, Incorporated (ASCI) in Davao City.

“Don’t make it hard for them to run the business the way they like it because that’s their money. So something of a compromise must be…maybe acceptable to everybody,” he added.

Mr. Duterte pointed out that only a few businesses in the country can absorb workers, noting as well the “sheer number of people who need jobs.”

“So they [the employers] want some radical changes,” he said.

Mr. Duterte also cited other countries “like Hong Kong and the United States, (where, if) you work for a certain guy and if he does not like the quality that you produce, you get out, you get paid, separated and that’s it. Ganun lang sana (That’s how they are).”

Earlier this month, Mr. Duterte asked for more time to study a proposed executive order (EO) on contractualization drafted by labor groups.

Labor Secretary Silvestre H. Bello III had also announced that the President will be signing the said EO “by March.”

Report: Price spike to spur Q1 rate hike

INFLATION will likely speed further to 4.5% in the next two months on the back of higher crude prices and new taxes on some basic goods, according to a monthly report that said this expectation could trigger a rate hike from the central bank by March.

Analysts at First Metro Investment Corp. (FMIC) and the University of Asia & the Pacific (UA&P) said they expect inflation to pick up in March and April at 4.5%, which will overshoot the 2-4% target band set by the Bangko Sentral ng Pilipinas (BSP) for 2018.

“[W]e think that inflation will accelerate in H1 but will start to decelerate thereafter as food and crude oil prices normalize,” FMIC and UA&P said in the February issue of The Market Call published yesterday.

Prices shot up overall by four percent in January, beating market expectations to clock the fastest in over three years.

BSP Governor Nestor A. Espenilla, Jr. has attributed the overall price spike to the implementation of Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act, as well as to rising oil and food prices. At the same time, the BSP chief said the impact of tax reform is likely temporary and that price hikes would eventually “stabilize.”

The TRAIN law introduced higher or additional taxes on fuel, cars, coal, sugar-sweetened drinks, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for stocks not in the stock exchange, and stock transactions. It also introduced an excise tax for cosmetic surgery.

These are expected to more than offset lower rates for personal income taxes for those earning below P2 million, alongside a simpler system for computing donor and estate taxes.

For FMIC and UA&P, inflation will likely linger above four percent in the coming months after clocking another four percent in February. Inflation clocked 3.3% in February last year and 3.4% in March and April 2017.

POLICY HIKE
With faster price increases, the FMIC said a rate hike from the central bank can be expected at the March 22 policy review of its Monetary Board.

“With breaching of the upper limit of the BSP’s inflation target and consistent with its desire to avoid overheating (esp. manifested in asset prices), we think BSP will raise its policy rate by 25 bps (basis points) to 3.25% in Q1,” the FMIC said.

The central bank has already bumped up its 2018 full-year inflation forecast to 4.3%, admitting that price movements this year will push inflation beyond the target range. If realized, inflation will surge from the 3.2% average in 2017.

The BSP’s Monetary Board kept benchmark interest rates unchanged during their Feb. 8 meeting, but noted that the central bank is “watchful” of inflation trends, particularly for second-round effects of the tax reform.

Analysts have said that surging prices, coupled with the one-percentage-point cut in reserve requirement ratio for big banks that takes effect next week, bolster the need for rate tightening.

Mr. Espenilla, however, said the reserve adjustment has a “neutral” effect on monetary policy.

Any additional money supply unleashed into the system — estimated at P90 billion — will be mopped up by the BSP through its weekly term deposit auctions, Mr. Espenilla added.

Zeno Ronald R. Abenoja, director at the BSP’s Department of Economic Research, said separately that while inflation is likely to trend higher in the months ahead, the central bank is not hard-pressed to raise rates.

“Price pressures from previous tax reform episodes were viewed as temporary in nature and did not require a policy response from the BSP,” Mr. Abenoja said in a presentation before the Bank Marketing Association of the Philippines, citing data from the implementation of the 12% value-added tax starting February 2006 — from 10% previously — as well as implementation of “sin” tax reform from January 2013.

Despite surging prices of some basic goods, FMIC and UA&P said they expect gross domestic product (GDP) growth to pick up to 7-7.5% this year — from 2017’s 6.7%, 2016’s 6.9% and a 6.2% average in 2010-2015 — amid expectations that the government’s infrastructure development program will go “full speed” after a rather slow start.

“Accelerating infrastructure spending and likely double-digit growth of capital goods imports in 2018 should combine with robust export growth to drive faster GDP growth in 2018,” the report read.

“We believe that global recovery in some markets (US, EU, China and Japan) will continue to prop up export demand from the Philippines and will bring 2018 exports to a faster growth pace.”

The current administration plans to spend P1.1 trillion this year on priority infrastructure projects, representing one-fourth of the full-year national budget and equivalent to 6.3% of GDP. This forms part of the P8.13-trillion infrastructure spending plan until 2022, when President Rodrigo R. Duterte ends his six-year term.

Meanwhile, exports grew by 9.5% in 2017, recovering from a 2.4% contraction the previous year, according to the Philippine Statistics Authority.

If realized, The Market Call’s GDP growth forecast means that the government’s 7-8% target for 2018 will be attained, keeping the Philippines in the ranks of the fastest-growing major economies in Asia and the Pacific. — Melissa Luz T. Lopez

Market says no jitters over BSP chief’s health

By Melissa Luz T. Lopez
Senior Reporter

CONCERNS about the health of Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. have not roiled market sentiment, with players still expecting a firm hand on monetary policy and financial market reforms to continue.

Mr. Espenilla on Sunday bared his bout with early-stage tongue cancer that was diagnosed in November 2017. The central bank chief, 59, said he is now cancer-free after surgery and radiation therapy, with full recovery expected in a month or so even as he now bears some speaking difficulty.

Sought for comment, economists and fund managers said the market has not been shaken by the news, given the assurance that Mr. Espenilla is recovering.

“No jitters. We believe it is minor and he healed,” said Eduardo V. Francisco, BDO Capital & Investment Corp.

“At this point, I do not think the situation is a hindrance to continuity. As long as he can fundamentally carry out his duties as chief banks regulator, I see no immediate concern about the future of monetary policy and central banking in the country,” Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines, said in an e-mail, even as he noted that such news could leave some “unsettled.”

A bond trader also said that Mr. Espenilla’s health concern will “not affect” markets, even as another noted there could be some “disruption” should his condition worsen.

“Meanwhile, it’s work as usual for me. Onward with financial market reforms,” Mr. Espenilla said after sharing his story with reporters.

Mr. Espenilla took the helm of the central bank in July 2017 after he was appointed successor to former BSP Governor Amando M. Tetangco, Jr. He has been on a pilgrimage in Israel with his wife and friends since Feb. 16.

“I don’t see any adverse market reaction. The decline of stock prices [from Feb. 21 up to early Monday afternoon] is a mere continuation of the consolidation we’ve been seeing the last few days. I think monetary policy transcends beyond the governor’s health,” added Augusto M. Cosio, Jr., president at First Metro Asset Management, Inc.

The Philippine Stock Exchange index closed 0.38% higher at 8,499.98 on Monday, while the peso strengthened to end P51.86 to the dollar from its P51.89 finish on Friday.

“Remember that there’s a complete macroeconomic staff that supports policy decision of the Monetary Board. The gradual increase in interest rates is still what market participants expect,” Mr. Cosio added.

The Monetary Board opted to keep policy rates steady at 2.5-3.5% during its Feb. 8 review. This was followed by an “operational” cut in bank reserve requirement the following week, which Mr. Espenilla said was in keeping with plans to deepen the debt market and should not be taken as an easing of monetary policy.

Bank economists expect the BSP to raise interest rates this year to keep up with rising inflation, given expectations that prices will surge past four percent for the full year.

In August last year, the BSP and other government agencies unveiled an 18-month road map meant to deepen the local debt market. The goal is to provide an alternative source of financing for companies, especially for long-term borrowing for big-ticket infrastructure projects.

The central bank has also been leading efforts to spur wider use of digital platforms for payments and fund transfers, as part of its financial inclusion drive.

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