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Pistons dump Warriors in Curry’s return to action; Celtics defeat T-Wolves

LOS ANGELES — Andre Drummond tipped in Detroit misses on consecutive possessions in the third quarter Saturday night to stall a Golden State Warriors comeback, and the host Pistons eased away in the fourth period for a 111-102 victory over the two-time defending champions in Stephen Curry’s return to action.
The former two-time NBA Most Valuable Player had 27 points, five rebounds, three assists and two steals in 37 minutes after having missed 11 consecutive games with a strained groin. He shot 10-for-21 from the field, including three-for-nine on 3-pointers, and committed seven turnovers.
Blake Griffin led Detroit with 26 points, while Drummond gathered a game-high 19 rebounds to go with 16 points.
The Pistons led 54-46 at halftime and by as many as 14 in the third period before the Warriors rallied within 78-76 on a 3-pointer by Andre Iguodala with 2:06 left in the period.
But Drummond, who had eight offensive rebounds in the game, dropped in a pair of follow shots and Stanley Johnson bombed in a 3-pointer as the Pistons closed the period with a 7-2 burst to re-establish command at 85-78.
The Warriors were unable to make much headway in the final period, thanks in large part to 6-for-26 shooting from 3-point range.
Johnson finished with 19 points, Reggie Jackson 17, Ish Smith 11 and Reggie Bullock 10 in a balanced attack for Detroit, which won its fifth straight and second in two nights. The Pistons beat Chicago 107-88 at home on Friday night.
Johnson and Smith were part of a bench crew that outscored their Golden State counterparts 42-13.
Kevin Durant had 28 points and a team-high seven assists, and Klay Thompson scored 21 points with a team-high eight rebounds for the Warriors, who lost their sixth straight on the road, their longest road losing streak since February 2013.
Coming off a 51-point explosion in a 131-128 overtime loss at Toronto on Thursday, Durant shot just one-for-seven on 3-pointers, while Thompson went just 1-for-5.
The Pistons outscored the Warriors 36-18 on 3-pointers in the win.
CELTICS BEAT T-WOLVES
Gordon Hayward enjoyed his best game of the season, scoring 30 points while also adding nine rebounds and eight assists to lead the visiting Boston Celtics to a 118-109 win over the Minnesota Timberwolves in Minneapolis on Saturday night.
The Celtics extended their modest win streak to three games, getting the last two on consecutive nights. The T-Wolves saw their season-best win streak snapped at four games.
In the first quarter, the Celtics crawled back from an early seven-point deficit to lead 29-26 through the end of the opening frame on the strength of strong ball movement.
The second quarter saw the Celtics expand that lead to 57-48 by halftime, built largely with nine 3-pointers to the T-Wolves’ four triples. Hayward (14 points) and Kyrie Irving (12) were already in double figures for the Celtics at the break, while Derrick Rose responded with 12 for Minnesota.
A high-scoring 3rd quarter saw the Timberwolves shave only two points from the halftime deficit. Boston relied heavily on an inside-out game between Karl-Anthony Towns and Andrew Wiggins.
Trailing 89-81 early in the final frame, the T-Wolves ripped off an 8-0 run to tie the game with less than nine minutes remaining before Boston responded with its own 9-0 run. The Celtics never looked back.
For the Celtics, in addition to Heyward they got big performances from Jayson Tatum, who scored 19 points and added nine rebounds. Irving also chipped in with 21 points and nine assists.
Jaylen Brown missed his third straight game for the Celtics because of a nagging back injury, resulting in Marcus Smart’s third start of the season.
The Timberwolves were led by Towns, who posted 20 points and nine rebounds. Robert Covington added 17 points, 10 rebounds and four steals in a spirited effort for the losing side. Rose scored 26 off the bench.
Up next for Boston is a four-day gap before the Celtics visit the New York Knicks on Thursday. Minnesota’s next contest is the third game of their current 4-game home stand as they host the Houston Rockets on Monday.
LEONARD’S 34 POINTS LEAD RAPTORS PAST CAVS
Kawhi Leonard scored 34 points and former Cavalier Danny Green added 15 points and seven rebounds to lead the visiting Toronto Raptors to a 106-95 win over the Cleveland Cavaliers on Saturday night.
Leonard connected on 11 of 21 field-goal attempts and was a perfect nine-for-nine from the foul line and grabbed nine rebounds for the Raptors, who boast the league’s best record at 20-4 and now have won eight straight games. All five Raptors starters scored in double figures.
Cleveland, which lost by 33 points on Friday to Boston, was led by Tristan Thompson and Jordan Clarkson, who each scored 18. Clarkson’s points came off the bench.
Thompson also had 19 rebounds for his 12th double-double of the season and his sixth in the past seven games.
Neither team shot very well in the first half. The Raptors, who came into the game shooting a league-leading 49.4 percent, connected on only 18 of 46 attempts (39.1 percent). Cleveland was worse at 35.9 percent.
The difference in the first half was Leonard, who scored 17 points. — Reuters

Billiards, snooker cue up for 2024 Games inclusion

PARIS — Billiards and snooker continued their bid to get included in the 2024 Olympic Games in Paris with an exhibition to showcase their sports at the Eiffel Tower on Friday.
Leading cue sports players travelled to Paris to press their case to the International Olympic Committee (IOC).
“It’s not like kicking the football into the goal or hit the ball with a golf club. Billiards sports are, I believe, the most difficult range of sport in the entire world,” former world snooker champion Shaun Murphy said.
Athletes from 33 sports will participate in the next Games in Tokyo in 2020, including the newly added ones of baseball/softball, karate, skateboarding, sport climbing, and surfing.
The admission process usually takes years and involves massive lobbying to convince IOC delegates, and cue sports face an uphill battle as many believe they do not require enough physical effort to be considered as real sports.
Snooker and billiards enthusiasts, however, believe they have a trump card to play given rising concerns over gender equality because their sports are among the few which allow men and women to compete against each other.
“It’s not about are you a man, are you a woman, are you a young person, are you a senior, we are complete level sports,” Mr. Murphy concluded. — Reuters

…but Olympic boxing out?

LONDON — The International Olympic Committee said on Friday it has stopped planning for the boxing tournament at Tokyo 2020 and launched an investigation into its governing body the International Boxing Association (AIBA).
The IOC said in a statement it had taken the decision after AIBA had submitted a progress report to the Olympic body, detailing its current situation regarding governance, financial management and sporting integrity.
AIBA has been in turmoil for several years and the IOC has warned previously that AIBA must sort out its finances and governance problems, as well as anti-doping issues in the sport, or risk missing out on the Tokyo 2020 Games.
Boxing has featured in all but one of the Summer Olympics since 1904 with Muhammad Ali, Joe Frazier, George Foreman, Sugar Ray Leonard, Anthony Joshua, and Katie Taylor among those to have won gold medals and gone on to claim professional world titles. — Reuters

Getting better

Enes Kanter has never been known for his defense. In fact, any mention of him regarding his work on the aforesaid end of the court would invariably concern his glaring lack thereof. Still, let it not be said he isn’t trying; he is, hard, and to the point where, over the last two years, advanced metrics have painted him to be a wash at the slot. No doubt, it’s a reflection of his increased importance to the Knicks. Whereas he used to be counted on as an offensive spark plus during his days with the Oklahoma City Thunder, he’s now required to start games.
To be sure, even casual observers would be hard-pressed to argue that they foresaw Kanter helping the New York Knicks with his defense. Yet, that’s exactly what he wound up doing in yesterday’s triumph over the East-leading Bucks. Interestingly, recaps of the match noted that he blocked leading Most Valuable Player candidate Giannis Antetokounmpo’s under-the-basket stab at the end of overtime to preserve the outcome. In truth, he simply stood his ground with his arms fully extended upwards — which proved to be more than enough under the circumstances.
Despite the absence of any proof of the late-game effort in official stats for the contest, Kanter and the rest of the Knicks will take the offshoot. If nothing else, he knew exactly what he needed to do under pressure. He didn’t foul, didn’t take a swipe at the ball, didn’t even body up; he knew well enough that Antetokounmpo was too near the baseline not to contort backwards just to try and get a shot up, and that staying where he was with his hands up was precisely the right stance to take.
In retrospect, what Kanter did has become typical of him in recent memory. Looking at the big picture, it also serves as a prime example of what the Knicks are these days. They’re not long on talent, but they’re sure to leave nothing in the tank whenever they trek to the court. As head coach David Fizdale noted, making the journey fruitful is just as important as reaching the destination. “Are we getting better? Are we competing at our highest levels? Are we growing each game from what we’ve been through before?” “They’re a hard-working, competitive group,” added Bucks counterpart Mike Budenholzer. “Different nights can be different guys (contributing). Impressed with what they’re doing.”
Indeed, the Knicks are scrapping under Fizdale’s steady hand. The playoffs may not be on the radar for them, but they’ll battle from opening tip until the final buzzer. And, once in a while, they’ll slay giants by being, well, themselves. Ask Kanter. He knows.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Shares likely to rise on seasonal spending surge

By Arra B. Francia
Reporter
SHARES are seen to rise in the week ahead as the seasonal consumer spending uptick kicks in, alongside expectations of slower inflation for November.
The benchmark Philippine Stock Exchange index (PSEi) dipped 0.19% or 14.58 points to 7,367.85 last Thursday. Despite the weakness on the last trading day of November, the main index was up 0.38% or 27.67 points on a weekly basis, and up 3.2% compared to the previous month.
The mining and oil and holding firm counters were top gainers last week, advancing 1.37% and 1.14%, respectively. Turnover climbed to P41.78 billion, which analysts attributed to month-end window dressing and MSCI rebalancing.
“With the current trajectory of the market it is possible that we will be seeing a ‘Christmas rally” this year. The continuing drop in oil prices will tame inflation coupled with the strengthening of the currency will entice investors to get back into the market,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a weekly market report.
The Christmas rally, also known as the Santa Claus rally, pertains to the sustained increase of stock markets in the month of December. This usually happens on the last trading week of the month.
Analysts are also counting on the release of November inflation data on Wednesday.
“Crude’s decline…plus the arrival of staple food supplies (i.e., rice) would support tamer inflation for November. If this trend is sustained, that would aid December’s seasonal consumer spending uptick, apart from influx of remittances,” online brokerage 2TradeAsia.com said in a weekly market note.
The Bangko Sentral ng Pilipinas’ Department of Economic Research pegged inflation to be within the 5.8-6.6% range for November. This is in line with government expectations that inflation has eased from the 6.7% peak in both September and October.
Mr. Mangun noted that the only concern would be the continuous outflow of foreign funds from the local market. Net foreign selling stood at P733 million last week.
“However, with western markets starting to correct, we may see them flock back to emerging markets like the Philippines…We may see the index test support in the shorter term but we still see index breaking above 7,500 before the end of year for a strong finish,” Mr. Mangun said.
Overseas, investors will be looking at how the United States and China iron out their trade relations at the G20 Summit in Argentina this weekend.
“We see global leaders coming to terms to avoid any regrettable outcome that would lead to repetition of history’s mistakes,” 2TradeAsia.com said.
Eagle Equities’ Mr. Mangun placed the PSEi’s support from 7,000 to 7,270, with resistance from 7,500 to 7,800.

AEV chairman Jon Ramon Aboitiz passes away

Aboitiz Equity Ventures, Inc. (AEV) Chairman Jon Ramon M. Aboitiz passed away on Friday, Nov. 30. He was 70, according to a company representative.
Mr. Aboitiz served as president and chief executive officer of AEV from 1994 to 2009, before passing on the post to cousin Erramon I. Aboitiz upon retirement. He served as chairman of the conglomerate’s board of directors until his death.
The Aboitiz Group of Companies dates as far back as the late 1800s, when Paulino Aboitiz founded Aboitiz & Company as an abaca trading and general merchandise business in Ormoc, Leyte, according to the company’s Web site.
Mr. Aboitiz belonged to the family’s fourth generation. He graduated from the University of Sta. Clara in California with a degree in BS Commerce in 1970, after which he joined the family business through Aboitiz Shipping Corp.
The Aboitiz group has since diversified its core businesses to power generation, distribution and retail electricity supply, financial services, food manufacturing, real estate, infrastructure, and portfolio investments. AEV’s subsidiaries include Aboitiz Power Corp.; Union Bank of the Philippines, Inc.; Pilmico Foods Corp.; Aboitiz Land, Inc. and Aboitiz InfraCapital, Inc.
Mr. Aboitiz and brother Mikel were ranked as 33<sup>rd</sup> richest Filipino by <i>Forbes</i> magazine in its 2018 list released on September, with a net worth of $265 million.
While serving as AEV’s chairman, Mr. Aboitiz also sat on the board of various listed companies, including Razon-led Bloomberry Resorts Corp. and International Container Terminal Services, Inc. — Arra B. Francia

From the Front Page: Green-light for fuel tax hike, rebuilding Marawi

In a reversal from their initial stance earlier this month, economic managers are set to issue another recommendation to Malacañang next week, this time to proceed with the scheduled P2 per liter fuel excise tax hike. Should this proceed, the January-slated hike will be implemented only four months ahead of next year’s mid-term elections.
Expenditures outpaced revenue increases in October, causing the national government’s budget deficit to more than double in size. The fiscal gap surged by 175% to P59.9 billion in October from P21.8 billion a year ago. Experts expect that this deficit will continue to widen, in alignment with President Duterte’s plans for higher infrastructure spending.
Analysts at S&P Global Ratings hold that inflation has reached its peak this year, but will likely remain high through early 2019. As a result, any increases in household consumption will be dampened by elevated price hikes and higher interest rates. One credit rater suggests that the government could ease on state spending, in a bid to narrow the widening account deficit.
Meanwhile, Budget Secretary Benjamin Diokno says the economy won’t be seeing any boosts from state spending over the first half of next year, due to an expected delay in enactment of the proposed budget and the ban on public works ahead of May’s mid-term elections. Expect a five-month pause in the implementation of new projects, Secretary Diokno says.
Multilateral funding agencies (ADB, World Bank, IFAD) and foreign governments (China, Japan, Spain) have pledged P35.1 billion in assistance for the rehabilitation of war-torn Marawi City, covering almost half of the estimated P72.58 billion needed for the overall recovery program. The balance, Finance Secretary Carlos G. Dominguez III says, will be sourced locally.

The journey of tycoon and philanthropist George Ty

The local business scene was once filled with deep sadness as business icon and philanthropist Dr. George S.K. Ty, founder of Metropolitan Bank & Trust Co. (Metrobank), passed away last Nov. 23. In his 86 years of existence, Dr. Ty had an incredible journey to success, a tale that truly inspires.

Dr. Ty built a fortune in the financial services industry after experiencing difficulty in securing a loan for his family business. Despite not having extensive knowledge of the banking industry, the then 29-year-old Dr. Ty established the first office of Metrobank in 1962 on the first and second floors of Wellington Building in Plaza Calderon, Binondo, Manila.

In a short span of time, Metrobank has grown to be a leading provider of corporate and consumer banking products and services in the Philippines. With such success, Dr. Ty decided to give back to the society by establishing the Metrobank Foundation, Inc. in 1979.

The foundation has served as the primary vehicle of Metrobank Group of Companies for its corporate social responsibility initiatives. Through the years, it has implemented various programs in key sectors, including education, visual arts and design, and health care; and has maintained a dynamic partnership with other organizations that provide assistance to the underprivileged and marginalized sectors of the society. The foundation is guided by Dr. Ty’s principle that “leadership in business implied leadership in community service.”

Beyond banking, the Chinese-Filipino businessman succeeded in other industries, holding chairmanship in various giant Philippine firms. Among others, Dr. Ty served as the group chairman of GT Capital Holdings, Inc., one of the biggest conglomerates listed on the Philippine Stock Exchange today.

GT Capital is the primary vehicle of the Ty family for holding and managing its diversified business interests. The investment group has directly-held interests in Metrobank, Toyota Motor Philippines Corp., Federal Land, Inc., Property Company of Friends, Inc., Philippine AXA Life Insurance Corp., Metro Pacific Investments Corp., Toyota Financial Services Philippines Corp., and Toyota Manila Bay Corp.

Through his entrepreneurial spirit and hard work, Dr. Ty, whose net worth hit $2.8 billion as of Nov. 28 based on data from Forbes Magazine, became the ninth wealthiest Filipino on Forbes’ 2018 list of 50 richest people in the Philippines.

Over the years, the visionary businessman received various accolades and citations for his outstanding leadership, remarkable accomplishments, and substantial contributions to nation-building. Among these are the Management Man of the Year 2006 from the Management Association of the Philippines (MAP) in 2007; the Order of Lakandula with a rank of Bayani conferred by former President Gloria Macapagal-Arroyo in 2010; the Gawad Lakan ng Kalakalan presented by former President Benigno S. C. Aquino III in 2011; the CEO (Communication Excellence in Organizations) Excel Lifetime Award from the International Association of Business Communicators in 2012; and the Grand Exemplar Medallion in 2014.

Last year, Dr. Ty received the 2017 Ramon V. Del Rosario Award for Nation Building conferred by the Junior Chamber International Manila and the Asian Institute of Management’s Center for Corporate Responsibility.

In the same year, he was conferred with The Order of the Rising Sun, Gold and Silver Star by Japanese Prime Minister Shinzo Abe in Tokyo, Japan. It is one of the highest awards in Japan given to persons who have made invaluable contributions to international relations, promotion of Japanese culture, advancements in their field, development in social welfare, and preservation of the environment.

In particular, Dr. Ty was recognized for his efforts in strengthening Philippine-Japanese economic relations. He undertook landmark joint ventures with several Japanese companies in key sectors, including automotive, real estate development, investment banking, insurance and consumer finance. Dr. Ty also played a critical role in facilitating the entry of Japanese investments into the Philippines, which contributed significantly to the country’s economic development.

Earlier this month, Dr. Ty also received the 2018 MVP Bossing Lifetime Achievement Award from PLDT, Inc., in recognition of his successful career in business, built with an unwavering honesty and commitment to entrepreneurial vision.

Dr. Ty’s journey, however, came to an end. It was confirmed by Metrobank last Friday through a statement, but the cause of death was not disclosed.

“It is with deep sadness that we announce the peaceful passing of our beloved Founder and Group Chairman Dr. George S.K. Ty. He was surrounded by family and loved ones at the time,” Metrobank said.

Meanwhile, the Department of Education (DepEd) extended its sincerest condolences to the family and friends of Dr. Ty through a statement last Sunday, Nov. 24, noting that it will always be grateful to Dr. Ty for his lifelong commitment to the advancement of education, culture and arts in the country through various programs and initiatives spearheaded by the Metrobank Foundation.

“The life and works of Dr. Ty reflect his genuine desire and noble goal to contribute to societal development and nation-building. His legacy will live on as every year outstanding Filipinos will remind us that where there is service beyond excellence, there is joy, and there is a future for our learners,” DepEd said.

Malacañang also paid tribute to Dr. Ty. In a statement on Monday, Nov. 25, Presidential Spokesperson Salvador Panelo described the late businessman as a “visionary and pillar of the Philippine economy.”

“Mr. Ty indeed exemplified the outstanding Filipino. He will be missed,” he said. — Mark Louis F. Ferrolino

The legacy of a great man

The loss of banking and business magnate Dr. George S.K. Ty is being felt in all the corners of the Philippine business community.

Though chiefly known as the titan who founded the Metropolitan Bank & Trust Company (Metrobank), the country’s second largest bank, Dr. Ty held various roles that extended to industries like insurance, automotive, and property. GT Capital Holdings, Inc., where he served as chairman emeritus and group chairman, is one of the largest conglomerates listed on the Philippine Stock Exchange.

Under GT Capital are companies that are market leaders through their own right, like Toyota Motor Philippines Corp., Federal Land, Inc., Property Company of Friends, Inc., Philippine AXA Life Insurance Corp., Metro Pacific Investments Corp., Toyota Financial Services Philippines Corp., and Toyota Manila Bay Corp. In all of which Dr. Ty played integral roles, one way or another.

The enduring quality and influence of such companies are a testament to the values that Dr. Ty imbued in all his work. None more so than Metrobank. When he founded Metrobank alongside colleagues in September 1962, he did so pursuant to a mission of serving the Filipino-Chinese community, acting as the established lender of businesses needed to take off  during a time when securing loans for local enterprises was a difficult affair.

It was never an easy journey. As a 29-year-old Chinese-Filipino businessman, whose primary experience had been managing his family’s already-successful flour business, there was a lot he needed to learn.

“What do I know about banking? I’ve never worked in a bank, so nobody would help us so we had a hard time… but I said I would put up a bank and to be the biggest one day, I put up Metrobank,” Dr. Ty once said.

Through persistence and a willingness to give back to the community that he served, he led Metrobank to become a premier universal bank and one of the foremost financial institutions in the Philippines. From a small local bank in Manila, Metrobank soon expanded beyond the country’s shores only a few years after its establishment. Its first international branch opened in Taipei in 1970 and a representative office launched in Hong Kong in 1973. In 1975, Metrobank became the first of the private banks to move into American territory when it opened its office in Guam. It later established branches in the United States mainland cities of Los Angeles and New York, and continued its growth from there.

Metrobank now offers a full range of banking and other financial products and services, including corporate, commercial and consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking. Metrobank currently spans a consolidated network of over 2,300 ATMs nationwide, over 950 domestic branches, and over 30 foreign branches, subsidiaries, and representative offices.

Never losing focus of his initial mission to give back to his community, Dr. Ty also founded the Metrobank Foundation, which emerged as one of the country’s most active corporate philanthropic organizations and one of the biggest nonprofit organizations in the Philippines. The foundation aims to help with sustaining and developing education, arts and culture, health in the country, as well as recognizing excellence in key professions and providing services for the underprivileged and marginalized sectors of society.

In affecting and improving so much of the Philippine landscape, Dr. Ty leaves the world far better than when he found it. He will be missed. — Bjorn Biel M. Beltran

A leader in community service

Business magnate Dr. George S.K. Ty is not only known as a remarkable businessman who founded Metropolitan Bank & Trust Co. (Metrobank) and ventured into a wide range of industries through GT Capital Holdings, Inc. He will also be remembered as a Filipino who gave back and paid forward, championing advocacies and upholding causes.

Giving back

Sixteen years after establishing Metrobank in the 60’s, Dr. Ty initiated his philanthropic endeavors by setting up Metrobank Foundation, Inc. (MBFI) in 1979.

MBFI implements various programs on education, visual arts, health, and in the recognition of excellence among key professions,

In recognizing noteworthy Filipinos, MBFI instituted the Search for Outstanding Teachers (SOT), The Outstanding Philippine Soldiers (TOPS), Country’s Outstanding Police Officers in Service (COPS), Metrobank Art & Design Excellence (MADE), Search for Journalists of the Year (JOY), and the Professorial Chair Lectures.

The foundation also works on promoting education — one of the advocacies close to Dr. Ty’s heart — through Metrobank-MTAP-DepEd Math Challenge (MMC), MetroGold Scholarship Program, and the National Teachers’ Month celebration.

Furthermore, MBFI became the majority owner of the highly esteemed Manila Doctors Hospital. With the foundation’s involvement, Manila Doctors has always been on call as a provider of a wide array of social services such as subsidies for in-house patients, outreach programs, medical missions, and other health-related interventions in adopted communities.

Paying forward

The former chairman emeritus of GT Capital Holdings — which holds 51% of Toyota Motors Philippines (TMP) — continued extending his helping hands through Toyota Motor Philippines Foundation (TMPF), established in 1990 as the corporate social responsibility arm of TMP.

TMPF has become TMP’s constant partner in pursuing social development projects, particularly in the fields of education, health, environment, and community service.

Moreover, in 2013, Dr. Ty expressed his gratitude to Toyota by building and opening the P1-billion, 10-hectare, world-class, nonstock, nonprofit Toyota Motor Philippines School of Technology (TMP Tech) in Santa Rosa, Laguna.

Reaching out

Dr. Ty and his family, continued their personal advocacies and philanthropic pursuits by establishing GT Foundation, Inc. (GTFI) in 2009.

GTFI’s projects include the following: the Bags of Blessing (BOB) project, in which bags containing assorted food items are distributed to underprivileged families every Chinese New Year; the GTFI Scholarships for Technical Vocational Education Program, which have benefited 261 students to date; and surgical missions and programs catering to patients with dermatological issues including hernia, gallstones, clubfoot, and cleft lip and palate.

GTFI also responded to the Marawi crisis, granting assistance to families of soldiers killed in action as well as uniformed personnel who fought during the Marawi siege.

Dr. Ty excelled not only as an industry leader, but also as a philanthropist. The accolades he received, from the Order of Lakandula in 2010 to the Grand Exemplar Medallion in 2014, reflect his dedication to giving back and paying forward. His legacy of bringing service to Filipinos is worth remembering and emulating by the next generation of leaders who are following in his steps. — Adrian Paul B. Conoza

DBCC: Oil tax hike should proceed

By Elijah Joseph C. Tubayan
Reporter
STATE economic managers will recommend to Malacañang next week that the government proceed with a P2 per liter fuel excise tax hike scheduled in January, reversing their initial recommendation that was approved by President Rodrigo R. Duterte just earlier this month, the Finance chief announced on Thursday.
Should the tax hike proceed, it will come just four months ahead of the May 2019 mid-term congressional and local elections.
The Development Budget Coordination Committee (DBCC) convened on Thursday to study whether the government should push through with the suspension of the second tranch of the fuel tax hike that had been decided in the wake of above-$80 per barrel Dubai crude prices seen in late September to early October.
Republic Act No. 10963, which took effect last January, had set a $80/bbl average price for three months as a trigger for automatic suspension of a scheduled tax increase.
The law, among other major adjustments to the local tax structure, imposed a P6 per liter fuel tax spread out through three years, with the first tranche of P2.50 per liter imposed last January, a P2 per liter increase set in 2019 and P1.5 per liter for 2020.
“… [A] special meeting conducted earlier today has decided to recommend the continued implementation of the second tranche of excise taxes on petroleum products under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act. The recommendation comes in light of the favorable outlook in world oil prices, where Dubai crude oil prices have gone down by 14% from an average of $79 per barrel in October down to $68 per barrel, so far, in November,” Finance Secretary Carlos G. Dominguez III said in a media briefing after their meeting.
Dubai crude price — Asia’s benchmark — had breached $80/bbl between Sept. 26 and Oct. 17, save for Oct. 15 and 16 which saw prices sink below that trigger, range from $61.05-78.40/bbl on Oct. 18-Nov. 23, and drop to $59.20/bbl, $59.10/bbl and $60.2/bbl on Nov. 26, 27 and 28, respectively.
Mr. Dominguez added that Dubai futures market prices are below $60/bbl in 2019, “indicating a downward trend in world oil prices.”
“Together with other measures to increase food supply in the country — particularly rice — the suspension of the second tranche of excise taxes on petroleum was intended to curb inflationary pressure and relieve the Filipino people of the high prices of goods. With month-on-month inflation moderating due to supply-side reforms initiated by the government, coupled with falling petroleum prices in the world market, the DBCC deems the suspension unnecessary,” said Mr. Dominguez, noting that looming shift from rice import restrictions to a regular tariff scheme will contribute to bringing down inflation next year — by up to 0.85 percentage point according to latest official estimates.
Malacañang announced in mid-October that it will suspend the P2 per liter fuel excise tax, acting upon the economic managers’ recommendations when Dubai crude oil spot and futures prices were above $80 per barrel.
Economic managers earlier said that their move was meant to rein in inflation expectations at a time that inflation spiked to a nine-year-high 6.7% in September and October. Inflation averaged 5.1% in the 10 months to October, breaching the central bank’s 2-4% full-year target for 2018.
Latest DBCC projections distributed to reporters show that local pump prices are now expected to go down even if the fuel excise tax is implemented, with diesel — used by public utility vehicles — projected to settle at P34 per liter in January 2019 from P40.45 in the same month this year and P38.80 currently. Moreover, the price of gasoline is seen to reach P44 per liter in January 2019 from P51.81 at the start of this year and P47.14 currently.
“Circumstances have changed drastically. If we ignore this change, we will not be acting as what we have promised, and basically that is to act on facts and to make decisions rationally, based on the prevailing information available,” said Mr. Dominguez.
“We are doing the President a disservice if we do not discuss these facts and developments,” he added.
“Our recommendation to continue the scheduled increase of excise taxes on petroleum products will be discussed in the Cabinet meeting on Tuesday, Dec. 4, and will be subject to the approval of President Rodrigo R. Duterte.”
At the same time, Mr. Dominguez said “the DBCC will also keep an eye on the trends of the world oil market,” as well as the Dec. 6 regular meeting of the Organization of Petroleum Exporting Countries (OPEC). Reuters reported on Wednesday that world crude prices’ drop since October has been on a par with the 2008 price crash and steeper than that of 2014-2015, both of which prompted OPEC to agree output curbs to support the market. Reuters cited OPEC sources as saying that producers are now considering a supply cut of at least 1-1.4 million barrels per day to support prices.
The DBCC also revised its assumptions for Dubai crude oil prices to $60-75/bbl in 2019, from $75-85/bbl initially programmed in its October meeting, and the $70-75/bbl programmed for this year.
Mr. Dominguez also said that the DBCC’s recommendation for the continued implementation of the fuel tax hike took into consideration projections that full-year suspension in 2019 will result in P43.4-billion foregone revenues. “The erosion in revenue will lead to a commensurate decrease in government expenditures so as not to breach the target deficit level of 3.2% of gross domestic product in 2019,” he said.
INFLATION SOON BACK ON TARGET
Sought for comment, Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. said in a mobile phone message: “The planned suspension of the second tranche is premised on the view that oil prices will likely breach $80/barrel.”
“That view has now changed with recent developments of much lower oil prices. Excise tax hike can proceed without adverse impact on fuel pump prices previously factored in. With lower oil prices ahead overall, that’s going to further reinforce our expectation that inflation will return to target by 2019-20. This will also support attainment of the fiscal deficit target.”
BSP Deputy Governor Diwa C. Guinigundo said in a separate text that the suspension of the fuel excise hike will cut inflation by just 0.1 percentage point.
Sought separately for comment, Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers, a member-institute of Economic Freedom Network Asia, said in a mobile phone message: “We have high inflation this year. We should aspire for near-zero inflation next year, stronger household consumption, higher GDP growth…”
For United Filipino Consumers and Commuters President Rodolfo B. Javellana, Jr., meanwhile, “Mataas ang presyo ng pagkain, presyo ng bilihin… Binabalewala nila ang posisyon ng presidente. Gumaganda na ang market so pag tinaggal mo ang excise, mas lalo itong mabuti… (Prices of food and other basic goods are high… state economic managers are defying the President’s stand. The market is improving, and if you suspend the excise tax hike, things should get even better…”)

BSP sees November inflation slowdown

By Melissa Luz T. Lopez
Senior Reporter
INFLATION likely slowed sharply in November from a nine-year peak, the central bank said on Thursday, citing falling oil prices and improved rice supply despite higher transport fares.
Prices of widely used goods rose 5.8-6.6% overall last month, the Bangko Sentral ng Pilipinas (BSP) Department of Economic Research said.
This estimate jibes with government expectations that inflation has begun easing from the 6.7% multiyear peak in September and October, though it will still be faster than November 2017’s three percent.
The Philippine Statistics Authority will report latest inflation data on Wednesday.
Inflation averaged 5.1% in January-October, short of the central bank’s 5.3% upgraded full-year forecast but well above the original 2-4% target band for 2018.
“The deceleration of inflation for the month could be attributed to the sharp decline in petroleum prices, the normalization of supply conditions in rice and other agricultural commodities, and the peso appreciation,” the central bank unit said in a statement.
Fuel companies announced a series of price rollback for diesel and gasoline products in November, reflecting declines in the benchmark Dubai crude amid ample supply.
Moreover, additional rice supply after the October harvests as well as arrival of imports have brought down retail prices of the staple.
The peso also pared its losses this month, returning to the P52 level versus the dollar.
These price declines are expected to have offset higher transport costs and power rates that took effect in November, the central bank added.
The Land Transportation Franchising and Regulatory Board approved a higher P10 basic fare for public utility jeepneys in Metro Manila, Central and southern Luzon, as well as provisional fare increases for public buses plying Metro Manila and provincial routes effective November.
At the same time, the Manila Electric Co. announced a P0.1135 per kilowatt-hour increase in basic rate.
Central bank officials have noted that inflation pressures “have subsided” in recent weeks, following a mix of rate hikes and non-monetary interventions by government.
The Monetary Board has raised rates by a cumulative 175 basis points (bp) since May, with a “proactive” 25bp increase announced on Nov. 15 despite signs that inflation has begun easing, as reflected in the month-on-month rate.
Some monetary policy makers previously signalled that they can pause their tightening cycle should inflation momentum show signs of easing.
Prices of widely used goods are expected to drop next year to 3.5% — back on target — due to the looming replacement of rice import restrictions with a regular tariff scheme, a move that is estimated to bring down the headline rate by as much as 0.85 percentage point.
Still, monetary authorities said they “will remain watchful” of latest developments as they calibrate their next policy moves to ensure price and financial stability. The central bank’s Monetary Board meets for 2018’s eight and last policy review on Dec. 13.

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