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No guts no glory

43rd Chess Olympiad (Open Division)
Batumi, Georgia
Sept. 23 -Oct. 6, 2018

Final Standings (Open)
Country Points TB1 TB2
1. China 18/22 372.5 28.5
2. USA 18/22 360.5 29.0
3. Russia 18/22 354.5 29.0
4. Poland 17/22 390.0 28.0
5. England 17/22 340.0 27.5
Total of 185 teams from 183 countries. Georgia as the host country was allowed to field three teams.
Time control is 90 minutes for the first 40 moves, then 30 minutes play-to-finish, with 30 seconds added to your clock after every move starting move 1.
During the 2018 Batumi Chess Olympiad there was a Brilliancy Prize awarded every round chosen by a special judging committee led by GM Susan Polgar. After all 11 rounds have been played the committee will then choose the “Overall Brilliant Game”. The winner was GM Tiger Hillarp Persson for his marvelous “the King is an attacking piece” demonstration.
First, let me give you a bit of background. Last year, around April, I wrote a column with the same title as the one you see above, “no guts no glory.” It is about this game, one of the most brilliant I have ever seen:

Short, Nigel D (2660) — Timman, Jan H (2630) [B04]
Tilburg (4), 1991

1.e4 Nf6
In 1985 there was a match between GM Lev Alburt (Champion of the USA) and Nigel Short (British Champion) called the Championship of the English-Speaking World. This experiment was never repeated because Short absolutely humiliated the American Champion by scoring six wins, two draws, no losses for a final score of 7.0-1.0. Not only that — Lev Alburt was the world’s greatest authority on the Alekhine’s Defense and even has a variation named after him, the so-called Alburt Variation 1.e4 Nf6 2.e5 Nd5 3.d4 d6 4.Nf3 g6. In all four of his White games Short allowed the Alekhine’s Defence and won all of them. In other words he defeated not only Alburt but his opening as well.
Now, as to Jan Timman, around this time he was rated around no. 3 in the world. He used the Alekhine with good effect against Robert Hubner in their 1991 Candidates match and decides to trot it out the Alburt Variation again vs Short. Same result.
2.e5 Nd5 3.d4 d6 4.Nf3 g6 5.Bc4 Nb6 6.Bb3 Bg7 7.Qe2 Nc6 8.0–0 0–0
[8…Bg4? 9.Bxf7+!]
9.h3!
Now that Black is really threatening to play …Bg4 White prevents it so as to maintain his bulkhead on e5.
9…a5 10.a4 dxe5 11.dxe5 Nd4! 12.Nxd4 Qxd4 13.Re1 e6 14.Nd2! Nd5 15.Nf3 Qc5 16.Qe4 Qb4 17.Bc4!
An excellent move preventing the queen exchange. 17.Bxd5 exd5 18.Qxd5 Be6 frees up Black’s position.
17…Nb6 18.b3! Nxc4 19.bxc4 Re8 20.Rd1 Qc5 21.Qh4 b6 22.Be3 Qc6 23.Bh6 Bh8 24.Rd8! Bb7 25.Rad1 Bg7 26.R8d7! Rf8
Alternatives:
Timman intended to play 26…Qe4 here but suddenly noticed 27.Rxf7!;
26…Bxe5 (hoping for 27.Nxe5?? Qxg2 mate) is refuted by 27.Rxf7! Kxf7 28.Nxe5+ with a family fork.
27.Bxg7 Kxg7 28.R1d4 Rae8 29.Qf6+ Kg8 30.h4 h5
And now we see a beautiful finish.
31.Kh2!! Rc8 32.Kg3! Rce8 33.Kf4! Bc8 34.Kg5!! 1–0
An amazing finish.
And now another of my columns, this time entitled “Too much guts you become gory.”

Salem, AR (2652) — Vignesh, N R (2405) [E12]
1st Sharjah Masters 2017

Sharjah UAE (1.18), 23.03.2017
As many of our readers know, GM Salem AR Saleh is an attacking master and the strongest player ever to come out of the UAE. He invariably does well in these giant opens but in this game he got a little too inspired.
1.d4 Nf6 2.c4 e6 3.Nf3 b6 4.a3 Bb7 5.Nc3 d5 6.Qc2 Be7 7.cxd5 Nxd5 8.e4 Nxc3 9.bxc3 0–0 10.Bd3 c5 11.0–0 cxd4 12.cxd4 Qc8 13.Qe2 Ba6 14.Rd1 Bxd3 15.Rxd3 Nd7 16.e5 b5 17.Bg5 Qd8 18.Bxe7 Qxe7 19.d5 exd5 20.Rxd5 a6 21.Qe3 Rfc8 22.Rad1 Nc5 23.Nd4 g6 24.Rd6 Nb7 25.Rf6 Re8 26.Nc6 Qc5 27.Qb3 Qc4 28.Qf3 Rac8 29.h3 Nd8 30.Nxd8 Rcxd8 31.Rxd8 Rxd8 32.Rxa6 b4 33.Qf6 Re8 34.axb4 Qxb4 35.f4 Qc4
White is a pawn up and has good winning chances, but now a diabolical idea gets into his head — how about Short’s maneuver? What if he can get his king to h6?
36.Kh2 Qc7 37.Kg3 Qc3+ 38.Kh4? h6!
That is a big difference between this and the Short game — Black’s pawn is on h7 instead of h5 and can take away the g5 square from White’s king.
39.Ra7 Qe1+ 40.g3
[40.Kg4 Qe2+ (40…w+?? 41.Kg5 and White’s dream comes true) 41.Kg3 Qe3+ snags White’s rook on a7]
40…Rf8 41.Re7?
[41.e6 draws but White is playing for a win]
41…Qe2! 0–1
And now, to white’s horror, he is mated. Yup, too much guts …
Time to show you the “Overall Brilliant Game” of the 2018 Batumi Olympiad.

Hillarp Persson, Tiger (2544) — Laurusas, Tomas (2484) [A11]
43rd Olympiad 2018 Batumi GEO (7.2), 01.10.2018

Tiger Christopher Robin Hillarp Persson (parents were big Winnie the Pooh fans), or Tiger Hillarp Persson for short was born Oct. 28, 1970 in Malmo, Sweden. He is both a chess grandmaster (GM) and a 1–Dan in Go. This 2–time Swedish Champion is known as an attacking player and usually does well in team competitions. He scored individual bronze medals in the olympiads of Elista (1998) and Dresden (2008).
1.Nf3 d5 2.g3 Nf6 3.Bg2 g6 4.c4 c6 5.b3 Bg7 6.Bb2 0–0 7.0–0 a5 8.Nc3 Ne4 9.Na4 Bxb2 10.Nxb2 Nd7 11.d3 Nef6 12.d4 b6 13.Rc1 Bb7 14.Nd3 Rc8 15.Nfe5 Nxe5 16.dxe5 Nd7 17.Qd2
White’s idea is to play 18.e6! fxe6 19.Bh3 Rf6 because now he can follow-up with 20.Qe3 Nf8 21.c5 with pressure on the Black position.]
17…dxc4 18.Rxc4 Nxe5
Black has won a pawn because of the pin on the d3–knight, but it turns out that White’s attacking chances offer more than enough compensation. And attacking chances are dangerous in the hands of the Tiger.
19.Rh4 h5 20.Rd1 Nxd3 21.Qh6 Qd6 22.Rxd3 Qf6 23.Be4
Amongst others, there is a threat of 24.Rxh5 gxh5 25.Qh7 mate.
23…Ba6 24.Re3
[24.Rxh5 Qg7 25.Qxg7+ Kxg7 both of white’s rooks are under attack.]
24…Qg7 25.Qg5 Rcd8 26.Qxe7 Rd1+ 27.Kg2 Qa1 28.Bxc6 Rg1+ 29.Kf3 Qf1 <D> Position after 29…Qf1
The idea is 30…Qg2+ followed by 31.Qxc6.
30.Kf4!
Suddenly everything becomes clear — the white king is not running away, it is running towards.
30…Qxf2+ 31.Kg5! Kg7 32.Rf4 Qxh2 33.Qf6+ Kh7 34.Qxg6+! Kh8
[34…fxg6 35.Re7+ Kg8 36.Bd5+ forces mate]
35.Kh6! 1–0
What an amazing journey!
Before we close our report on the 2018 Batumi Olympiad here is the brilliancy prize winner from round 1 by IM (International Master) Davit Maghalashvili, playing for the 2nd team from Georgia. He is 31 yrs. old and not considered a world title contender, but he is a strong attacker, as you will see.
In the previous game Tiger’s king went up to board to checkmate his opponent this time the White player Renato Frick’s king was forced up the board to be checkmated.

Frick, Renato (2058) — Maghalashvili, Davit (2508) [B59]
43rd Olympiad 2018 Batumi GEO (1.1), 24.09.2018

1.e4 c5 2.Nf3 d6 3.d4 cxd4 4.Nxd4 Nf6 5.Nc3 Nc6 6.Be2 e5 7.Nb3 Be7 8.Be3 Be6 9.f3 0–0 10.Nd5 Bxd5 11.exd5 Nb4 12.c4 a5 13.Nd2 Nd7 14.0–0 f5! 15.Kh1 Bg5 16.Bg1 Qf6 17.Nb1
Repositioning his knight to c3 as it has nothing to do on d2.
17…Qh6 18.Nc3 Bf4 19.Rb1
White is playing as if nothing can happen to him. He should start pushing back with 19.a3 Na6 20.Bd3 when Black has the easier play but White is still ok.
19…Nf6 20.a3 Nh5!
Threatening 21…Ng3 checkmate.
21.Bf2 Bxh2! 0–1
White resigns because after 21…Bxh2 22.Kxh2 Ng3+! 23.Kxg3 (23.Kg1 Qh1#) 23…f4+ 24.Kg4 Rf5 25.Bh4 (25.Kxf5 Qg6#) 25…Rh5 26.Qe1 (26.Rh1 Qg6+ 27.Kh3 Qg3#) 26…Nc2! The ignored knight on b4 gets its revenge. 27.Qf2 Ne3+ 28.Kh3 Nf5 there is no defense.
And what of the Philippine women’s team? Team Captain GM Jayson Gonzales will be reporting on their performance and each of the members have chosen some games to share with our readers. Don’t miss our Thursday column!
 
Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.
bobby@cpamd.net

James home game

As expected, LeBron James’ home debut with the Lakers was an unparalleled spectacle. Accompanied by hype that began long before he formally committed to the purple and gold on the first day of free agency in July, his entrance at Staples Center was greeted with ovations from fans with tickets costing as much as four digits. Never mind that the public address announcer sounded bored with the four-time league Most Valuable Player’s introduction following those of the other starters.
If nothing else, the relatively subdued voice-over served as a stark counterbalance to the over-the-top welcome that James received from just about all other quarters. Business partners Nike and Beats celebrated the occasion with building-size billboards, while the Lakers themselves added to the reality-show atmosphere by showing on the Jumbotron before the game a one-and-a-half minute video invocation that, hosted by Alice Cube no less, featured their prized catch and promised “the dawn of a new kingdom.”
Needless to say, celebrities were on hand for the occasion; the usual suspects occupied their usual seats, of course — and noticeably early, too. Meanwhile, James himself arrived in casual wear and, in sporting a Dodgers cap, seemingly more interested in Game Seven of the National League Championship Series than in Game Two of his season. All the same, it was clear to all and sundry that, all the stars studding Staples Center aside, he owned the stage. And once the game began, he wasted no time showing why.
Unfortunately, James finished the night in less than desirable fashion. The Lakers didn’t just suffer their second straight setback to start the season; he had a hand in the outcome, going just one of eight in the fourth quarter, of which he played all 12 minutes and in which a one-point deficit turned into a nine-point loss. So, yes, he was still the brightest star on the court by far. But, no, it didn’t matter one bit. In fact, the lasting memory of the match won’t be any of his highlights; rather, it’s the fight that broke out two-thirds into the payoff period, during which time he acted as peacemaker.
To be sure, James was measured in his reaction. Pressed to consider the development in the aftermath, he preached patience and noted that the Lakers lost to the clearly superior Rockets. He spoke the truth, of course. Nonetheless, that he did so in defeat speaks volumes of the position he has put himself in. At 34 and in spite of his sterling resume, he’s compelled to take the long view. He will continue to be celebrated under the klieg lights, but as the losses pile up, he cannot but realize that his status as the best of the best counts for squat unless and until reasonable help arrives — and when can’t come soon enough.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Why you should probably be wary of “free” public WiFi

In today’s fast-paced and hyperconnected world, convenience often outweighs security, especially when it comes to conducting transactions on mobile phones. Filipinos are spoiled for choice when it comes to free public WiFi, and many do not hesitate to connect to unsecured networks, unmindful of the security risks that come with them.
“There are many digital conveniences that we take advantage of, either to save money or time,” said Jonathan B. Paz, BPI’s data protection and enterprise information security officer.  “This can lead to practices that can endanger our data and privacy—people not regularly changing their passwords, transactions that don’t come with an additional step for validation of purchase, and, riskier than most, connecting to unsecured WiFi networks commonly found in many public spaces.”

Why you should think twice before using free WiFi

The widespread availability of free WiFi has contributed to the increased threat of cyber-attacks. A quick search on the Internet shows numerous videos and tutorials showing hackers how to take advantage of public WiFi networks—some videos even have millions of views. But even as cyber-attacks have become a common concern in the Philippines, not enough people are aware that there are real risks in cyber fraud or having their information stolen.
One of the most common cyber-attacks people should be wary of is called “man-in-the-middle,” where hackers redirect connections from the free network to their own fake websites, making users think that they’re sending their private information to the legitimate website. For example, when users access their bank account through the bank’s website, the information is instead sent to the hacker, rather than to the bank.
Another method is known as “Evil Twin,” where hackers mask their computers to imitate a free WiFi network. Users think they are accessing secure pages, but the Evil Twin computer monitors and views email passwords and bank information, should the user access those pages.
Paz noted, “Though it depends on how free WiFi networks are set up, it’s definitely much safer to err on the side of caution and expect that these networks are not secure. To protect your data and prevent yourself from becoming a victim of cyber-attacks, it’s best to wait to carry out your transactions for a later time when you’re using a secure Internet connection.”

Necessary steps to security

To secure their clients’ data, many banks and other institutions have adopted Advanced Authentication, a more rigorous method of authenticating a user’s identity. This method requires a password, and a second step that asks a user to verify the transaction with a second factor device — most often, the user’s mobile phone, through One Time Passwords (OTPs). OTPs are unlike typical passwords, which are static. They are unique for every transaction.
“This feature, which may be viewed by some as contrary to the conveniences afforded by online and mobile transactions, was put in place for additional protection for users. However, OTPs are not fool-proof and still rely on the practices of the user. Protecting data is something that we need to work on together—both the bank and its clients,” said Paz. “Convenience and security don’t usually mix. To have more security usually means additional checks and additional effort.”
It’s a delicate balance, but with new developments in technology, consumers may soon have both. In the meantime, it’s best to be careful, or at least know the risks.

Megaworld eyes P700-M sales in new Cavite development

The 10-storey condominium will complement the Cavite township’s sustainable and environmentally-friendly features.

By Anna Gabriela A. Mogato
Listed property developer Megaworld Corp. is expecting to generate P700 million in sales from its recently-launched 10-storey condominium in General Trias, Cavite.
In a disclosure to the Stock Exchange on Monday, The Verdin at Maple Grove, located in its 140-hectare Maple Grove township, will be designed to complement the Cavite’s “green” central business district (CBD).
“A huge part of the masterplan will be Makati-inspired, where green parks and interconnected streets are surrounded by malls, office buildings and residential towers,” said Rachelle Peñaflorida, Megaworld vice president for sales and marketing.
“There will be fresh air to breathe, and enough space to relax and meditate,” she said. “There will be pocket gardens and areas to commune with nature.”
Accessible through Coastal Road and CAVITEX, Megaworld said that the township is only 30 to 45 minutes away from Makati CBD and Fort Bonifacio.
The Maple Grove township, containing 363 ‘prime lots’ for companies businesses to locate in, was announced just last year. The project was intended to be surrounded by seven open parks.
Megaworld said it’s new residential project will make use of solar-powered outlets in the outdoor amenity deck and energy-generating equipment in its outdoor fitness area. Recycled and indigenous materials will also be used for the pool deck and children’s playground.
Set to be complete by 2023, the condominium will comprise 140 units, ranging from 32 square meters to 79 square meters.

Emerging markets more upbeat in trade outlook — study

By  Anna Gabriela A. Mogato
Emerging economies are more confident that the global trade system will be restored than developed economies, Bloomberg found in its New Economy global survey released on Monday.
The study, which surveyed 2,000 business professionals in 20 markets, showed that 63% of respondents coming from emerging economies expressed confidence in the future of global trade, with only 36% from developed economies sharing the same sentiment.
Overall, the survey found that 70% of respondents have a positive outlook on the future of global trade, with 55% saying they see more global trade in five years’ time.
In the Philippines, the survey found that 51% of the respondents believe the global trade system will soon be restored, while 76% expressed confidence that there will be more trade in five years’ time.
The stark difference in outlooks between emerging and developed economies may suggest that “for emerging markets, the costs of the current slide towards a trade war could be less than expected,” Bloomberg Chief Economist Tom Orlik said.
“If businesses retain that fundamental optimism about the outlook for trade, continued hiring and investment could propel growth forward, even as tariff barriers rise,” he added.
Citing the International Monetary Fund, Bloomberg noted that the global growth forecast was reduced to 3.7% from 3.9%. Among survey respondents, 49% pointed to the US-China trade tensions as the reason behind hampered global growth.
Confidence in better global trade coming from emerging economies was most widely rooted in technology as the driver of their future. Some 66% of respondents said that they are actively adopting new technologies, particularly artificially intelligence, with 56% upskilling their workforces and taking additional professional courses. Specifically in the Philippines, 84% of the respondents said they are setting themselves up to adopt new technologies.
Bloomberg also noted that the 35% of the respondents in emerging economies acknowledged the need to start new business ventures, compared to the 10% from developed economies expressing the same.
The survey also noted that 71% of respondents in the Philippines saw that being environmentally conscious is needed to prepare for the future, aside from learning new technologies.
Globally, almost half of respondents from emerging economies saw the need for social consciousness in business. This, compared to the 37% from developed economies reporting the same.
Bloomberg Media Group Chief Executive Officer Justin B. Smith in the statement said that the survey shows the public sentiment on a world economy in transition, which will be further explored in its New Economy Forum next month.
Moving forward
Given the rise of new economies, 50% of global business professionals covered in the survey said that the globalization model focusing on multi-lateral free trade and open borders would only be effective if tweaked to spread its benefits evenly to reach more constituencies.
Amid this growing confidence, 50% of respondents in the Philippines. said that globalization benefits both developed and emerging economies. To navigate the uncertainty towards globalization, 35% of these respondents said that global businesses should increase investments in new economy markets.
While most respondents pointed to the need to adapt new technologies and become more environmentally conscious, global governance was noted to be the most critical concern among all global challenges which needs action.
To address this, 75% of respondents noted the need for world leaders and their governments to take initiative. Only 51% of respondents in the Philippines agreed with this sentiment.
Some 10%, on the other hand, said that the private sector should be taking the lead to further develop global trade.
Smith agreed with the minority, saying that the private sector should step up where governments have failed.
“New economies are playing an expanded role across trade and businesses today, and with a changing new world order, there is an urgent need for real dialogue and action on the long-term implications of this transitional moment,” he said.

Labor group says to seek bigger Metro Manila wage hike

THE COUNTRY’S biggest labor group plans to raise today its daily minimum wage hike petition for Metro Manila’s private sector workers in the face of a rising inflation rate, according to a notice which the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) e-mailed to journalists on Sunday.
The National Capital Region (NCR) Regional Tripartite Wages and Productivity Board is scheduled to hold on Monday, Oct. 22, consultations with labor sector leaders. The Employers Confederation of the Philippines (ECoP) announced last Oct. 19 that the NCR wage board will meet next with leaders of employers’ groups on Oct. 24, Wednesday (9-11 a.m. at D Circle Hotel, 2063 M.H. Del Pilar Malate, Manila). A public hearing on NCR wage adjustments will take place on Oct. 26, Friday (9-11 a. m. at Room A & B, 2nd floor of the Philippine Trade Training Center, PTTC Building at Senator Gil J. Puyat Ave corner Roxas Boulevard in Pasay City).
An ALU-TUCP statement quoted its spokesman, Alan A. Tanjusay, as saying it “will submit a supplementary position paper amending [its] P320 daily wage hike petition filed in June… to P334 a day.”
Metro Manila’s current daily minimum wage for private sector workers now amounts to P475 for those in agriculture, retail/service businesses employing up to 15 workers and manufacturing establishments regularly employing less than 10 workers; and P512 for non-agriculture workers.
Mr. Tanjusay said in yesterday’s statement that with nationwide headline inflation clocking in at a fresh nine-year-high 6.7% in September, compared to 5.2% in June when his group filed the current P320 petition, ALU-TUCP “deemed it necessary to raise the amount to reflect the current conditions around workers and their families.”
September marked the ninth straight month of inflation rate increase, with monthly rates since March breaching the central bank’s 2-4% full-year target for 2018.
Year-to-date headline inflation clocked in at five percent against that full-year target, with the rate for Metro Manila logging 5.5% and the one for areas outside NCR at 4.8%.
ALU-TUCP’s statement on Sunday said that “with the continuing increases in prices of goods and services since January… the value of P512 (daily minimum wage) fell… to a meager P340 a day.”
Sought for comment, ECoP Acting President Sergio R. Ortiz-Luis Jr. said in a telephone interview that “… P334 is really way off what should be reasonable,” noting “[t]hat P334 is more than 60% of the present minimum wage.”
He echoed ECoP’s earlier warnings that increases in daily minimum wage hit micro, small- and medium-scale enterprises (MSMEs) hardest. MSMEs account for 99% of businesses and 60% of jobs in the Philippines but contribute only 36% of gross value added, according to the May 2016 Investment Policy Review of the Organization for Economic Cooperation and Development.
“We expect that by the end of the month, we will be able to know how much is the wage hike amount,” Mr. Tanjusay said in the statement on Sunday, with the increase to take effect “by mid-November.”
Labor Secretary Silvestre H. Bello III had said in September that Metro Manila’s private sector minimum wage earners can expect an increase of at least P20 some time this month.
So far, 12 of the country’s 17 regions have increased their daily minimum wage rates: Cordillera Administrative Region, Ilocos Region (Region 1), Central Luzon (Region 3), Calabarzon (Region 4A covering Cavite, Laguna, Batangas, Rizal, Quezon), Bicol Region (Region 5), Western Visayas (Region 6), Central Visayas (Region 7), Eastern Visayas (Region 8), Zamboanga Peninsula (Region 9), Davao Region (Region 11), Soccsksargen (Region 12 covering South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City) and the Autonomous Region in Muslim Mindanao. — with Gillian M. Cortez

Fitch eases Philippine GDP growth projection

By Melissa Luz T. Lopez
Senior Reporter
FITCH RATINGS has tempered its growth forecast for the Philippines to match the low end of the government’s projection, in the wake of last semester’s slower expansion and amid rising interest rates.
The credit rater scaled down its full-year estimate for Philippine gross domestic product (GDP) growth to 6.5%, lower than the 6.8% given in July.
“The downward revision to our growth forecast reflects our expectation that the cumulative rate hikes by the Bangko Sentral ng Pilipinas (BSP) of 150 basis points (bp) so far this year, would support some moderation in growth,” sovereign analyst Sagarika Chandra said in an e-mail interview.
“Further, GDP growth in the first half of 2018 of 6.3% was weaker-than-expected, which is also a reason for the downward revision to our growth forecast.”
The Philippine economy grew by a slower-than-expected six percent in the second quarter as household spending cooled at a time of surging consumer prices.
Both the second-quarter and first-half GDP growth rates compare to 6.6% a year ago.
The central bank has also stepped in to raise rates in four consecutive meetings since May, including a back-to-back 50-bp hikes in August and September in an attempt to rein in inflation expectations.
Inflation averaged five percent in the nine months to September, well above the central bank’s 2-4% target.
Fitch’s slower growth forecast matches tempered outlooks of the World Bank and the International Monetary Fund, while the Asian Development Bank pencilled in an even lower forecast of 6.4% earlier this month.
Economic managers of President Rodrigo R. Duterte followed suit and announced on Tuesday that GDP growth will likely clock in at 6.5-6.9% in 2018, slower than the original 7-8% target, amid escalating global trade tensions, tighter credit conditions and elevated world crude prices.
The Philippines holds a “BBB” rating — a notch above minimum investment grade — with a “stable” outlook from Fitch. The debt watcher said this rating balances a “favorable” growth outlook and modest debt burden against a lower per-capita income as well as “weaker governance and business environment indicators” compared to those of similarly rated economies.
Prospects look better in the next two years, Ms. Chandra said. “… [W]e expect the economy to grow at 6.7% in 2019 and 2020 driven by strong domestic demand,” she explained. “We think policy tightening by the BSP of cumulative 150 basis points so far in 2018 should help to keep inflationary pressures under control.”
The projection compares to the 7-8% annual growth goal set by the government for 2019 and 2020.

Gov’t charting return to foreign debt marts

THE GOVERNMENT is now charting the country’s return to the dollar, euro, yuan and yen debt markets, the Finance chief said on Friday last week.
“We… told the other bankers that our policy now is not to be absent from any major market for long periods,” Finance Secretary Carlos G. Dominguez said at the Finance department’s headquarters in Manila, recalling discussions on the sidelines of economic managers’ briefing in London last month.
“We are going to explore doing something in England, and now we are getting an invitation from some of the ambassadors from Europe to have a road show again,” said Mr. Dominguez when asked about a possible bond offer there.
“I don’t know if we can finish the euro [bond sale] this year, but certainly next year,” he added when asked for a time table.
The government last borrowed euros in 2010, raising €75 million in three- and five-year multi-currency retail Treasury bonds that also raised $400 million. It also raised €500 million in 10-year debt in 2006 in a multi-currency global bond offer along with $1.5 billion.
“The euro debt market, in fact I also told [National Treasurer Rosalia] Lea [V. de Leon] maybe we should make a private presentation to the wealth fund of Norway. That’s the biggest in the world,” said Mr. Dominguez.
He noted that the timing and the size of the offer would depend on prevailing market conditions, saying: “At this point in time, we will feel the market first.”
Moreover, he said that the government’s dollar-denominated bonds usually offered late in January will likely be sold ahead of schedule due to external uncertainties caused by the Federal Reserve’s continued monetary policy tightening and the US’ trade war with China.
“I asked Lea [Ms. De Leon] to please bring the schedule forward rather than wait for next year because of all the announcements and the uncertainties that are, I think, going to start hitting more, impacting the market more, better make the issuance program earlier rather than keep it at the end of January,” he explained.
He said that the size will be “about a billion or two billion (US dollars) more or less.”
Mr. Dominguez also said that they will return to the renminbi and yen debt marts.
“‘Yung samurai we are going to come back within 12-18 months from August. In China, we will come back to the market again within 12-18 months from last March,” he said.
This year, the government raised $2 billion in 10-year securities with $750 million in new money and swapping the balance in a liability management exercise — the second dollar bond offer of the Duterte administration.
It also raised $230 million in its maiden renminbi-denominated “panda” bond float in March consisting of three-year notes; and $1.39 billion worth of three-, five-, and 10-year papers in August in its return to the “Samurai” bond market after eight years.
The government has programmed a 75-25 ratio in its borrowing plan for 2019-2022, favoring local lenders. — Elijah Joseph C. Tubayan

PSE on track to breach P200-B fund-raising target

THE PHILIPPINE STOCK Exchange, Inc. (PSE) is optimistic it can breach its P200-billion full-year target for fund-raising activities at the local bourse, as the share sale of San Miguel Corp.’s food and beverage unit pushes through in the fourth quarter.
PSE Chief Operating Officer Roel A. Refran said in a panel discussion at the Philippine Investments Forum in Makati last Friday that capital raised at the stock exchange has so far reached P181.68 billion. The figure already exceeds the P160 billion worth of funds raised at the PSE in 2017.
“We’ve been hoping to hit that P200 billion (target) since Hans (former PSE President Hans B. Sicat). We’ve never reached that,” Mr. Refran told reporters in Filipino on the sidelines of the forum.
The remaining three months of 2018 will see the conduct of a follow on offering by San Miguel Food and Beverage, Inc. (SMFB). The food and beverage giant targets to sell up to 522.96 million common shares at P85 to P95 each. This excludes an over-allotment option of up to 15% of the offer shares.
Without the over-allotment option, this could bring in P49.68 billion worth of fresh funds for SMFB, allowing the PSE to hit its fund-raising target for the year.
SMFB will announce the final price of the share sale on Oct. 25, with the settlement and delivery of shares scheduled for Nov. 12.
The expected record-breaking fund-raising activity comes amid the persistent volatility at the PSE for most of the year, which has prompted two firms — Del Monte Philippines, Inc. and Cal-Comp Technology (Philippines), Inc. — to push back their initial public offerings (IPO) until market conditions improve.
Funds raised as of September came mostly from stock rights offerings, including P758.3 million from PetroEnergy Resources Corp., P20 billion from Robinsons Land Corp., P5 billion from Integrated Micro-electronics, Inc., P2.898 billion from The Philippine Stock Exchange, Inc., P60 billion from Metropolitan Bank and Trust Co., P50 billion from the Bank of the Philippine Islands, and P15 billion from Rizal Commercial Banking Corp.
Only one company braved to enter the stock exchange this year, as property developer and construction firm D.M. Wenceslao, Inc. raised P8.15 billion from its IPO for its expansion plans.
Global Ferronickel Holdings, Inc. and DoubleDragon Properties Corp. also conducted follow-on offerings, raising P517.5 million and P4.5 billion, respectively.
Funds raised also includes those from private placements of IRC Properties, Inc., China Banking Corp., Basic Energy Corp., and Golden Bria Holdings, Inc.
Meanwhile, Mr. Refran said the PSE also targets to launch the program for securities borrowing and lending and short-selling before the year ends.
Short selling pertains to the sale of a security which “the seller does not own or any sale which is consummated by the delivery of a security borrowed by, or for the account of the seller.”
The approved guidelines indicate that only PSE member stocks and exchange traded funds are eligible for short selling, in addition to a limit of 10% of the outstanding shares of an eligible security to be sold.
The PSE executive explained that they are now finalizing the systems for short selling and SBL, which will be transacted through the Central Securities Depository of the Philippine Depository & Trust Corp.
Short-selling and SBL will also be made available to both local and foreign investors. — Arra B. Francia

MPTC to invest $20M in Indonesian toll road

THE Metro Pacific Tollways Corp. (MPTC) said it is investing around $20 million for a new project under its Indonesian subsidiary PT Nusantara Infrastructure Tbk.
MPTC President Rodrigo E. Franco told reporters on Friday the company is working on the Pettarani project, which is an extension of a toll road going to the airport in Makassar, the capital of South Sulawesi province.
“They are doing a project… may tinatawag silang Pettarani project [they have something called Pettarani project]. In fact that would require funding eventually. For that, we’re looking at additional $20 million,” he said.
In a text message on Sunday, Mr. Franco noted the funds will be internally generated.
“We can just source the funding need from internal cash. Pettarani project is an elevated toll road in the port city of Makassar in South Sulawesi,” he said.
The 4.4-kilometer A.P. Pettarani elevated toll road will connect Soekarno-Hatta Port (Makassar) and Sultan Hasanuddin Airport to Makassar’s business district and city center. Construction of the toll road started in April.
Last month, the Indonesian unit of MPTC, PT Metro Pacific Tollways Indonesia (PT MPTI), raised its stake in PT Nusantara to 77.94% for P2.86 billion.
Aside from Indonesia, MPTC also has stakes in infrastructure companies in two other Southeast Asian countries, namely: Don Muang Tollway Public Company Limited in Thailand up to 29.45%, and CII Bridges and Roads in Vietnam up to 44.9%.
In the Philippines, MPTC operates three toll roads: the North Luzon Expressway (NLEx), Subic Clark Tarlac Expressway and Manila-Cavite Expressway.
MPTC is the tollways unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

ABS-CBN forges deal with JKN Global

ABS-CBN Corp. said it signed a deal with Thai content provider JKN Global Media Public Co. Ltd., which will broadcast more Filipino shows in Thailand and Laos.
“More Filipino dramas are set to air in Thai and Laos television after JKN Global, the top content provider and channel operator in Thailand, bought over 290 hours of content from ABS-CBN,” the company said in a statement on Friday.
ABS-CBN said among the shows purchased by JKN Global are “Brothers” (“FPJ’s Ang Probinsyano”), “La Luna Sangre” and “Till I Met You.”
The two companies first signed a deal in 2016, with ABS-CBN saying its shows such as “Got To Believe,” “The Legal Wife,” and “Bridges of Love” became hits in Thailand.
ABS-CBN also said they are currently discussing with JKN Global new opportunities for co-production in the future.
The listed company reported its net attributable income dropped 41% in the first half to P849.88 million, pulled by higher production costs in the second quarter. — Denise A. Valdez

Exquisite finds at Manila FAME 2018


MODES OF transportation made of bamboo; patterns representing daily life handwoven in blankets; recycled materials transformed into jewelry; and interesting pieces of furniture which serve as conversation starters are some of the products one could find among the 366 micro-, small- and medium-enterprises (MSMEs) showcased at the 68th Manila FAME fair last weekend.
The biannual event, organized by the Department of Trade and Industry through the Center for International Trade Expositions and Mission (DTI-CITEM), aims to showcase various products — from fashion to home décor and furniture — for global trade markets such as the US, Japan, Korea, and Europe.
During walk around the World Trade Center last weekend, BusinessWorld noticed how Filipino craftsmanship transforms various resources into exquisite and sustainable products.
BANATTI’S THE GREEN FALCON SERIES
Meep, Inc.’s subsidiary Banatti (derived from the Filipino word “banat” or “pull tight”) showcased The Green Falcon series of bamboo electric motorcycles. Meep, Inc. president and COO Christopher Paris Lacson designed it as a “metro bike” for the city. It runs on batteries and may also be pedalled.
Website: www.meepney.com
DESIGN EJ PASIA
Architect and furniture designer EJ Pasia presented hedonism in furniture with a Cast Away daybed. Hailing from Mindanao, Mr. Pasia expressed the simple provincial life through the piece of furniture — made of pine wood with mahogany — ideal for a poolside cabana.
Website: ejpasia.com
FINALI FURNITURE
AND HOME ACCESSORIES CO.
Established in Cebu city in 1999, Finali designs wall décor, furnishing, sculptures, and figurines. For the trade show, the brand showcased a bird-shaped seat made of rattan and Italian leather; framed wall décor of birds made of wood, steel, and banana bark; and a dog-shaped stool made of looped wire.
Website: www.facebook.com/finali.furniture
ABEL ILOCO PRODUCTS
The handwoven blankets from Ilocos Sur are designed with patterns and details — fishermen, river frogs, comets, and shields — that tell the stories of the Ilocano environment.
“We are doing efforts to educate the younger ones (weavers). When we started there were about less than 50 weavers — all in their 80s and 90s. We took on the advocacy of helping revive the dying industry of weaving,” Dina Bonnevie-Savellano, general manager of the La Bon Vie enterprise, told BusinessWorld. “Now we have younger weavers (in their 30s to 40s),” Ms. Bonnevie-Savellano said, adding that making the products available commercially helped weavers realized that weaving is a lucrative business.
Abel Iloco products are sold at SM Kultura store branches.
Prices: P350 to P7,500
Website: www.manilafame.com/webtemplate/ylocosheritageartsandcrafts/about
CRYSTAL SEAS
Promoting Mindanao’s handloom weaving and beadwork, Crystal Seas uses traditional textiles such as tinalak, yakan, and balud, as well as, pandan (screwpine) fiber for its products.
“Most of the souvenir products in Davao are not made there,” designer Carmela Alcantara told BusinessWorld. “So, it is a challenge to make beautiful things out of our traditional crafts and materials.
“We work with different communities. We don’t just buy from them but [we also] partner with them in terms of product development, improving the efficiency of processes, and inputting technology to make the materials more durable,” she said, adding that they are currently working on new products to be crafted by the disabled and out of school youth.
Prices: P1,800 to P6,000
Website: www.facebook.com/CrystalSeas/
VIRTUCIO
Virtucio designs jewelry for women made from recycled plastic bags, made by women of the Kalipi Foundation in Bohol. The plastic is cut to pieces, pressed, and melted to achieve a mosaic-like detail.
Prices: P799 to P3,099
Website: www.facebook.com/virtuciodesigns/
MELE + MARIE
The quirky handbags — mostly manufactured in Cebu City — are made of natural and industrial materials. Its signature design is the Hannah Minaudiere — a handbag which comes 24 colors made of different kinds of shells. Its current popular design is the “Love” bag which was recently used by Kris Aquino at the Crazy Rich Asians premiere in Hollywood, California.
Prices: P25,000 to P250,000
Website: www.meleandmarie.com
— Michelle Anne P. Soliman

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