SRA sees 4.8% decline in sugar output

September 4, 2017 | 12:03 am

THE PHILIPPINES has allocated the bulk of this crop year’s sugar output to the domestic market amid an expected decline in production, though the regulator said it will be able to meet its US export commitments and ship some product to other markets as well.

In Sugar Order No.1 dated Aug. 31, 2017, the Sugar Regulatory Administration (SRA) board said sugarcane performance for crop year 2017 to 2018 is expected to hit 2.38 million metric tons (MT), down 4.8%.

Output for the crop year is also expected to cover the domestic requirement of “more or less” 2.17 million MT, with 1.9 million MT or 80% of total estimated production set aside for the Philippine market.

The Philippines consumes nearly 200,000 MT of sugar a month.

A sugar crop year in the Philippines runs from September to August.

Of the total 2.38 million MT production expected for this crop year, the US and other markets have been given 10% allocation each.

“In order to promote the effective merchandising of sugar and its products in the domestic, US and world markets, it will be necessary to allocate the crop year 2017-2018 sugar production to such quantities as to place those engaged in the sugar industry on a basis of economic viability,” the sugar order read.

“The US market continues to be a reliable market and remains an instrument to stabilize sugar supply that its allocation is imperative regardless of volume,” it added.

For this crop year, Manila has a regular US sugar quota of 138,827 MT in regular form or 142,160 MT in raw form. The volume may increase depending on Washington’s assessment of the stability of its stocks. The Philippines is one of the few countries given an annual allocation of sugar export to the US market under a quota scheme.

The SRA board added that it will continue to conduct periodic assessments of production for future adjustments of allocation and distribution. — Janina C. Lim

Ex-PBA cager, D-League stalwart join LGR Hoops Play For A Cause

September 4, 2017 | 12:03 am

FORMER PBA player Mark Andaya and Peejay Barua, who got his chance to play in the D-League after he last saw action for La Salle nine years ago, were among those who took part in the LGR Hoops Play For A Cause held over the weekend.

The 6-foot-9 center Andaya, who played for Talk ’N Text, Red Bull, Rain or Shine, and Air 21, before embarking a career in the entertainment circuit where he played different character roles in local movie and television shows, joined Mr. Barua, a former La Salle Green Archer, who recently inked a deal playing for the AMA Online Education in the PBA D-League Aspirants’ Cup.

Both players took part in this fund-raising 3×3 event initiated by organizers of LGR Hoops for the benefit of Mike Custodio, who was hospitalized recently after a bad fall. The player suffered a severe hip injury.

Several teams from more than 90 participants of the Season 4 event decided to throw in their support to the ailing player. LGR Hoops is the fastest growing league for people from all walks of life — from players in the corporate divisions, people looking for recreation and players who want to elevate their game to the next level.

For Mr. Andaya, taking part in activities like this is no brainer.

“We love basketball and we love to help people. Nobody wants to see a player get whether he’s your teammate or your opponent,” said Mr. Andaya, who also had a stint in the ASEAN Basketball league playing for the Philippine Patriots.

Mr. Barua, who went straight to the playing venue at the Makati Coliseum out of his office in Maynilad in Quezon City, joined the DBT squad that went on to face Wednesday Group in the finals.

Wednesday Group survived DBT, 22-21, to win the gold medal.

Mr. Barua said playing in the 3×3 event is the best way to keep him in shape in the D-League off season while taking pride of being able to help out one of their comrades.

“It’s a great feeling being able to help out,” added Mr. Barua. “I’m also trying to keep myself in shape so whenever my team needs me, I’ll be there to contribute.” — Rey Joble

Private firm proposes biomass power plant in Bohol

September 4, 2017 | 12:03 am

CIMON BAGO Bio-Power Plant, Inc. (Philippines) is proposing to build a biomass plant that could supply 100 megawatts (MW) to the island province of Bohol. “The proposal carries the integration of another renewable source of 30 MW of solar farm energy capacity,” the company’s technical director, Wilfredo Magallano, told The Freeman. The company presented its proposal during a recent meeting with the Bohol Energy Development Advisory Group in Tagbilaran City. CIMON Bago estimates that the power demand of Bohol would likely be about 100 MW by year 2043 from the present demand almost 70 MW, Mr. Magallano said. The company, in partnership with ICE Tech, Hamada and Lotus Engineering, has been operating a similar power plant in Bais City, Negros Oriental, using the so-called giant grass (pennisetum perpurium), also known as bana grass or Uganda grass, he added. The proposed biomass power plant in Bohol would be located at Barangay Poblacion in Trinidad town, where 25 hectares of the surrounding unproductive lands would be used to grow the needed grass input. — The Freeman

It ain’t Uber till it’s Uber

September 4, 2017 | 12:03 am

The Uber-LTFRB controversy has highlighted, to our great inconvenience, what happens when modern technology clashes with antiquated laws and regulations. This is further complicated by the business conduct of a highly successful global upstart start-up confronting the dysfunctions of Philippine bureaucracy writ large in the DoTr agencies.

To be better educated on the subject, I turned to our eldest son, Ibba Rasul Bernardo. He is a net entrepreneur/geek with deep experience in tech start-ups and social enterprise.

After listening to him, I thought it best to relay it in his words. He also has written for a number of publications like Adobo Magazine, T3, and GamesMaster and co-hosts Ride PH TV.

“Gustavo Petro once said: “A developed country is not a place where the poor have cars. It’s where the rich use public transportation.”

Most people understand that when Petro said this, he contemplated public transportation so convenient that it was preferable to private car rides and luxury vehicles.

The founder of Uber is not “most people,” however. Upon hearing this quote, Travis Kalanick probably heard the ka-ching of a thousand cash registers and thought “OK, Mercedes Benz S Classes for us and a hundred friends!” And Uber was born.

Let me share with you the following potentially controversial thoughts about our favorite ride-sharing app.

Why It’s Game Uber in the Philippines

1. Boob-er
Many things said about Travis Kalanick are not fit for publication: He is a misogynistic creep who has created a toxic company culture. Uber is rife with stories/allegations of managers groping women, cocaine done in company retreats, to name a few. Kalanick even joked about an app for women on demand, “Yeah, we call that Boob-er.”

Ironically, because of the tracking and safety features inherent to Uber, women feel empowered to drive for Uber. Ask any Pinay Uber driver.

Good news: reports say that a new CEO will be stepping in, Dara Khosrowshahi of Expedia, an immigrant from Iran and poster child of the American Dream.

2. God View
Uber created a backdoor in their app called “God View” where they can track — stalk? — specific users. They’ve been accused of allowing some employees access to this information to follow exes, spouses, celebrities, and politicians. After a 14-month investigation by the New York State Attorney, Uber agreed to pay a fine and to encrypt passenger data.

Another privacy violating function was active until Aug. 29. Uber didn’t only track you while you were in one of their cars. They tracked you even after you’d gotten off.

3. Endo
Uber’s life blood is contractual labor whom they lovingly call “Partner Drivers.” Their business depends on actively finding ways to minimize support for drivers. This has led to a string of lawsuits and settlements in the US (Google “Uber labor law suit”).

In the Philippines, many UBER “Partner Drivers” work 10 to even 15 hours, by choice. An Uber driver I spoke with told me he earns more than twice what he earned when he was driving a taxi. Another driver told me she was getting P1200 pesos a day from Uber as support while they were banned from plying the streets of Manila.

Why do drivers and riders in the Philippines and in many countries all over the world love Uber, despite its many faults? Simple: in many of these countries, the transportation system is broken. Normal people are sick and tired of lousy, inefficient, expensive, and dangerous taxis. Most of these countries’ regulatory agencies are rent seeking, corrupt, and worst of all inept.

In a country like the Philippines, the few options commuters have are bad ones.

Uber gives the driver the perception of becoming their own boss, and the ability to own (finance) a car. Uber also gives the riding public convenient, reliable, and safe transportation. Even with Uber’s many faults, to the average commuter, UBER is heavenly ride compared to the commuting Hell we had to endure before Uber.”

Our laws have understandably not kept up with accelerating advances in technology in our globally wired sharing economy. Allow me to conclude by sharing and echoing the statement of our Foundation for Economic Freedom on this (see http://bit.ly/FEFUber).

Our Congress needs to move fast on a wide front less we be left further behind. FEF and others are pushing for legislation that can help open up our economy to foreign investments and innovations.

A key one is the amendment of the Public Services Act which will redefine the present ambiguous description of what constitutes a public utility, expanding the sphere for the private sector to meet growing demand of the public and a growing economy, since government alone cannot. (e. g. mass transport, ports, toll roads, info tech/telecommunications, water, etc.)

This most forward looking initiative is sponsored in the Senate by Public Services Committee Chair Sen. Grace Poe and championed in the House of Representatives by lawmakers Arroyo, Salceda, and Yap. We are pleased to learn that this is now in the LEDAC priority list, thanks to Planning Secretary Pernia.

Meanwhile, we plead with the authorities to be open to new private initiatives, regulate with a light touch, and take a broad view when interpreting our laws, with improved and expanded provision of public services as the primary concern. Don’t be like old generals fighting the last war.

Romeo L. Bernardo is a Board Director in the Institute for Development and Econometric Analysis and Vice Chair of the Foundation for Economic Freedom.

Peso expected to climb on weak US jobs report

September 4, 2017 | 12:02 am

THE PESO will likely trade higher against the dollar this week on the back of softer-than-expected US labor data and ahead of the European Central Bank’s (ECB) policy meeting, which investors are watching for hints on its future decisions.

The peso closed at P51.17 versus the greenback on Thursday, slumping four centavos from the previous session.

Week on week, the local currency lost nine centavos from a P51.08 close last Aug. 25.

Local financial markets were closed last Friday in observance of Eid’l Adha.

An economist from a local bank said the peso may rise versus the dollar this week, falling within a wide range of P50.90 to P51.30, on bets of hawkish comments from the ECB as well as weak US non-farm payrolls data.

“The dollar might depreciate this week, as weaker-than-expected US reports on non-farm payrolls and average hourly earnings might temper expectations of another US rate hike this year,” Land Bank of the Philippines (Landbank) market economist Guian Angelo S. Dumalagan said in an e-mail over the weekend.

The US Labor Department said on Friday non-farm payrolls increased by 156,000 last month. The economy created 399,000 jobs in June and July. Meanwhile, the unemployment rate ticked up one-tenth of a percentage point to 4.4% and average hourly earnings rose three cents or 0.1% after advancing 0.3% in July.

“Likely hawkish comments from the European Central Bank (ECB) might also weigh down on the greenback,” Mr. Dumalagan said. “The dollar might resume its downward trend on Friday due to potentially more hawkish guidance from the ECB during its September 2017 monetary policy meeting.”

“While the ECB might not yet begin its tapering this month, it might provide some hints about the timing of such tightening measure. The ECB’s hawkish remarks could weaken the greenback against the peso, as a ripple effect of the dollar’s potential depreciation against the euro,” he added.

The ECB holds its monetary policy meeting on Thursday.

“The factors that could reverse the dollar’s projected downward bias include an escalation in the geopolitical tension between the US and North Korea as well as possible dovish comments from the ECB during its monetary policy meeting,” Mr. Dumalagan said.

“Meanwhile, higher-than-expected Philippine inflation could further weaken the greenback, as such development could increase the chances of a rate hike from the BSP (Bangko Sentral ng Pilipinas) later this year,” he said.

The Philippine Statistics Authority will release official August inflation data tomorrow. BSP’s Department of Economic Research gave a 2.6-3.4% forecast range for the month due to higher oil and electricity costs and rising rise prices.

Meanwhile, another economist from a local bank had said the peso could trade lower against the dollar this week amid bets of an upbeat US economy.

“After the long weekend and the new month coming in, I expect the peso be weaker with the US economy expected to be better,” Union Bank of the Philippines (UnionBank) chief economist Ruben Carlo O. Asuncion said in an e-mail on Friday.

“However, I also see the peso gaining as the optimism on the Philippine economic fundamentals across the board weigh in heavy on investors’ perception of the economy and its potential growth in the medium term,” Mr. Asuncion said. — J.M.D. Soliman

Davao City sending trade, tourism delegation to Japan

September 4, 2017 | 12:02 am

DAVAO CITY — The city government will embark on a trade mission to four cities in Japan in October to attract tourists and line up potential investors in four priority industries, a top official said.

“We will be bringing agriculture, tourism, real property and manufacturing as the investment areas that we will promote in Japan,” said Lemuel G. Ortonio, acting head of the Davao City Investment Promotion Center (DCIPC).

Mr. Ortonio told the media last week that these sectors were put in the priority list following discussions between city officials and the Davao City Chamber of Commerce and Industry, Inc. (DCCCII).

The 15-member trade mission, which will include city officials and business sector representatives, will go to the cities of Osaka, Kyoto, Yokohama and Tokyo on October 16-20.

Mr. Ortonio said some Japanese companies and officials from these four cities have previously visited Davao and “signified interest to help invite more companies.”

Arturo M. Milan, DCCCII trustee and organizing committee chair of this year’s Davao Investment Conference held last July, said the business sector is going the extra mile in helping promote the city to foreign investors.

“We need to provide efforts in inviting more business representatives of other countries to explore the potentials of the city, especially that President (Rodrigo R.) Duterte comes from the city,” said Mr. Milan.

City Tourism Operations Officer Regina Rosa B. Tecson, who will be part of the trade mission, said her agency aims to further strengthen the link between Davao and Japan.

“We are boosting our efforts to attract more Japanese tourists,” said Ms. Tecson.

Meanwhile, Mr. Ortonio said the DCIPC is currently reviewing four “big-ticket” projects: a hospital expansion, a boutique hotel, a fish feed mill plant, and low-cost housing in the first district.

The combined capital for the four projects is about P400 million, he said, but declined to give further details as the proponents have yet to submit the requirements listed by the DCIPC.

Several unsolicited public-private partnership (PPP) proposals, mostly involving solid waste management and street lighting, have also recently been submitted, he said.

Another PPP proposal, Mr. Ortonio said, is from a Japanese firm for a carpark facility.

There is a pending resolution before the city council to give parking facility investors a longer tax break period — six years for both business and real property taxes — under the incentives program as the return on investment for such projects are slower.

“We already discussed about this with the City Engineers Office, City Treasurers Office and DCIPC,” Mr. Ortonio said.

Investment in carparks is being encouraged as the city government aims to fully implement a “no street parking” policy.

“We cannot implement a no street parking policy if there is no alternative parking facility. What we are pushing now is incentives to attract investors,” he said

DCIPC records show investments in the city from in the eight months to August have hit P247 billion, about P17 billion more than the total for 2016. — Carmelito Q. Francisco and Maya M. Padillo

Asian state firms have weak disclosure system — OECD report

September 4, 2017 | 12:02 am

MAJORITY of state-owned enterprises (SOEs) in Asia do not systematically report to the public in a manner consistent with the practices of listed companies, a report released by the Organisation for Economic Co-operation and Development (OECD) said.

The report “Disclosure and Transparency in the State-Owned Enterprise Sector in Asia: Stocktaking of National Practices” provides an overview of national approaches to disclosure and transparency in state-owned firms in nine Asian economies, namely Bhutan, India, Kazakhstan, Korea, Malaysia, Pakistan, Philippines, Thailand and Vietnam.

“This is, however, by no means unique to Asia. Globally, SOEs are often subject to a weaker disclosure regime than that applicable to listed companies. This often reflects SOEs’ limited degree of corporatization and/or the fact that their accounts are incorporated into the general government budget,” it said.

The report, which is published under the responsibility of the secretary-general of the OECD, examined disclosure requirements and practices at the level of individual SOEs as well as measures taken by the state as an owner to report to the public on the operations and performance of SOEs.

“State ownership arrangements necessarily impact SOEs’ disclosure environment and the degree to which related requirements are harmonized across enterprises. Most of the countries examined herein have predominantly decentralized state ownership models, leading to a somewhat fragmented disclosure landscape,” the report said.

POLICY COORDINATION
The OECD report cited the Philippines and India as having introduced some degree of policy coordination through the establishment of central agencies responsible for developing and monitoring the implementation of governance and transparency standards.

“However, most have also introduced some degree of policy coordination — including in the domain of disclosure — through the establishment of a central coordinating agency or a holding company overseeing a non-trivial portfolio of SOEs. In practice, these coordinating entities have in most cases developed disclosure requirements for SOEs that either complement — or compensate for the lack of — requirements established via other legislation,” it said.

However, an overarching issue relates to the quality and credibility of corporate disclosure by SOEs. The report noted most national authorities do not systematically require that SOEs keep accounts in accordance with international accounting standards.

“This finding is somewhat countered by the fact that, in most countries, large SOEs reportedly do so in practice and in many countries, national accounting standards are reportedly broadly consistent with IFRS (International Financial Reporting Standards),” it said.

In South Korea, the Philippines, Thailand and Vietnam, the OECD report said the state ownership or coordinating entity has developed distinct reporting and disclosure requirements applicable to all SOEs.

“The majority of countries do not require that SOEs’ financial statements undergo an independent external audit, as called for by the SOE Guidelines. Most countries appear to mandate some form of internal audit function, but further research would be warranted to shed light on the effectiveness of these corporate organs. Together, these findings point to significant scope for strengthening the accounting and audit environment for SOEs in Asia,” it said.

The OECD report mentioned the Philippines as having an arrangement wherein all SOEs are subject to specific disclosure requirements under the Ownership and Operations Manual and the Code of Corporate Governance for GOCCs (government-owned and -controlled corporations).

It added the Philippines’ Governance Commission for GOCCs (GCG) in the country is also reportedly in the process of establishing an integrated reporting system which would contain elements similar to those of South Korea’s system “and would notably result in public disclosure of all GOCCs’ financial statements and corporate operating budgets.”

INCENTIVES, PENALTIES
The OECD report said a few countries have sought to encourage better quality disclosure by SOEs through incentives or penalties. These include a rating for quality and timeliness of disclosure in SOEs’ annual performance evaluations.

“The effectiveness of these compliance mechanisms could be an area for further investigation,” it said.

In the Philippines, the report noted that timely and accurate disclosure is one element taken into account in the annual performance evaluation, which informs performance-based bonuses accorded to GOCC executives.

Overall, the report said surveyed countries have taken “important” steps to strengthen and harmonize disclosure requirements on the SOEs.

“However, the fact that SOEs’ financial statements are not systematically subject to an external audit constitutes a departure from international good practice… In many cases, the different audit practices reflect the low degree of corporatization of SOEs in many Asian countries as well as their closeness to the public administration. As more SOEs are corporatized — and in some cases listed — the quality and credibility of disclosure can be expected to improve,” it said. — Victor V. Saulon

Mercy and forgiveness in justice and injustice

September 4, 2017 | 12:02 am

“Have you done your corporate examination of consciousness? Are the poor in the mission-vision statement of your company? Are the underprivileged in society somewhere there, in your corporate decision trees as you deliberate on how much richer you can yet be? Are you living, not just mouthing, feel-good CSR (corporate social responsibility) as you pose for those photo-press releases of how generously you have given (tax-deductible, anyway) to the marginalized in society?”

His Excellency, Luis Cardinal Tagle was speaker at last week’s first-of-a-series of lectures to alumni of the Asian Institute of Management (AIM), in the build up to the elite business school’s 50th founding anniversary in 2018. Opening ecumenical prayers by a Protestant, a Muslim, and a Buddhist set the theme of “Total inclusion in development.”

“I am sorry I am not an economist,” Cardinal Tagle said, “so, I will speak from my discipline (theology) — and of the basic foundation of human values in all religions and even non-religion.” He was speaking as leader and follower of the Catholic faith — for the 1960s ecumenical Vatican II Council under Popes John XXIII and Paul VI has re-defined “the Church” not as the hierarchy, but as the community of shared faith and values.

“Eight men own the same wealth as the 3.6 billion people who make up the poorest half of humanity,” Cardinal Tagle said. The Oxfam anti-poverty report shows that “the gap between rich and poor is far greater than had been feared. It details how big business and the super-rich are fueling the inequality crisis by dodging taxes, driving down wages and using their power to influence politics. It calls for a fundamental change in the way we manage our economies so that they work for all people and not just a fortunate few (oxfam.org, 01.16.2017).”

At the annual gathering of the global political and business elites in Davos in January, two of those richest eight men in the world — Bill Gates (richest, with $75 billion net worth) and Michael Bloomberg ($48.8 billion) attended. “It is obscene for so much wealth to be held in the hands of so few when one in 10 people survive on less than $2 a day,” Winnie Byanyima, executive director of Oxfam International had said at a pre-launch conference (aljazeera.com, 01.17.2017).

“Poverty is not just numbers,” Cardinal Tagle said at the AIM conference. The statistics are a call to action for sharing and helping towards a more equitable distribution of wealth. Think about it, he asked — why do you have more, and some others, less? Could it have happened that you were born into the half of humanity that was poor? Having more is a big responsibility not only towards those who have less, but towards yourself, as you must even out the opportunities for the survival and well-being of all — otherwise your own extra wealth will cause you fear and anxiety for the maintenance of your power and influence.

Cardinal Tagle called for renewed personal attitudes and sensitivities in this rapidly changing world that has pushed materiality to the forefront of human activity. Those in higher positions of influence have the heavier responsibility for inclusive growth and development towards peace and equality in the world. Indifference or non-involvement is a sin of omission as grave as the commission of crimes against the laws of God and the laws of Men. There are many changes in society that must not alter fundamental human values. Globalization, rapid communication and ever-improving technology and knowledge have proven to have both advantages and disadvantages to inclusion and human development. It has exacerbated the culture of greed and individualism, and created the dubious New Normal for private/public ethics and morality.

The question was asked: in the context of Christian values of mercy and forgiveness, how and when do we protest against injustice and fight for the rights of the downtrodden? In exercising mercy and forgiveness for the transgressor, do we not slump into that non-involvement and effectively allow wrongs and injustices to thrive and replicate in more atrocious transgressions and impunities?

It is difficult to paraphrase Cardinal Tagle’s answer, which was too theologically technical for a simple Catholic mind and soul to process, if not only buoyed up by the simplistic “I believe even if I do not understand” faith that martyrs died for. Basically, Cardinal Tagle emphasized that the virtues of mercy and forgiveness do not conflict with justice, where personal forgiveness for the transgressor-perpetuator of the injustice resides in the heart, while the remedies under restorative justice (the laws of the land) must be carried through, to preserve the common good. It is the duty of Christians and all other religions to actively fight for this, as it is expressly the “Love your neighbor as yourself,” quite similar to the encompassing Golden Rule in all human relations, “Do unto others what you would have others do unto you.”

Cardinal Tagle, self-effacing as always, told a touching story relevant to his main pitch for sharing and giving material wealth towards inclusion of the less-privileged, as well as participating in the preservation of the common good by adherence to (and protest against) injustice and wrong-doing in society:

Driving down Quirino Avenue with a (rich?) friend, their car was stopped by the red traffic light, whereupon hordes of tattered young children descended upon them, offering various cheap goods in exchange for alms. Their driver quickly tapped on the glass window, shooing the kids away. All quickly moved to the car waiting behind, except for one boy, who suddenly shouted, “Cardinal Tagle!” in recognition of him. The driver again tapped on the window to shoo the boy away. “I told you we are not buying,” the driver said. “But I am not selling,” the boy said. “I am giving this to the Cardinal.”

Such is the pure generosity of a simple, poor young child. We can only solve our problems with the declining morality in our country with the purity of our minds and hearts to actively right what is wrong, and to give generously of ourselves and of our wealth.

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

All great things must come to an end

September 4, 2017 | 12:02 am

After 17 years of playing in the PBA, Mick Pennisi, one of the best shooting big men the league has ever produced, is calling it quits.

GlobalPort-Mick Pennisi — Photo by PBAonTV5 via Twitter

The 6-foot-9 center’s contract with GlobalPort ended by the end of August and the veteran slotman decided to finally end a long fruitful career that saw him won five championships, two All-Star selections, and inclusion in the national teams several times.

Pennisi told GlobalPort coach Franz Pumaren of his intention to retire as he wanted to concentrate on his poultry business.

The Fil-Australian player had a wonderful career in the PBA. He came to the league Year 2000, joining the Batang Red Bull Thunder team coached by Yeng Guiao and immediately became an integral part of the squad.

In just his second season, Pennisi won a championship while playing for the Photokina franchise and helping the squad claiming another title the following season in partnership with several key players that include Willie Miller, Davon Harp, Jimwell Torion, Junthy Valenzuela and Lordy Tugade among others.

Pennisi isn’t just your typical big man and there’s a better reason why he stayed long enough in the PBA.

He has wide range in his game. He’s probably one of the all-time best shooting big men the PBA has ever produced. His three-point shooting accuracy redefined centers playing in the pro league, giving every team he played for a new dimension in their game.

But more than his inside and out game, Pennisi is also a decent defender, part of the reason why he played for the national team several times. At a time when previous Philippine squads didn’t have naturalized players, he was able to fill in that huge hole at the middle alongside Asi Taulava.

Inside the court, Pennisi brings in the fun element in basketball. He is one of the jolliest players out there, but able to strike a balance between his fierce competitiveness and happy personality.

During the 2009 FIBA Asia Championship in Tianjin, China Pennisi would stumble a Kia Picanto, one of the well-loved compact cars in the industry up to date, and the veteran player decided to purchase the brand as soon as he went back home.

He would fit in his long frame to drive this small vehicle. He considered it one of his most precious possessions, especially at a time when fuel prices continuously goes up.

But behind Pennisi’s happy persona, there was a dark moment, too, that nearly overshadowed his career.

In 2005, the big man accidentally fell on Eugene Tejada during the game between Red Bull and Purefoods at the Ynares Center in Antipolo City. Tejada was unable to continue playing after his body was nearly paralyzed after suffering a spinal column injury.

The incident haunted Pennisi for many years as he had difficulty moving on from that incident, but knowing the guy, there was no evil intent on his part. He continued with his journey and for the next 12 years, he would find a spot at every team he’s needed.

In 2012, Pennisi made the headlines and ended up in ESPN’s blooper videos. He is still considered the best flopper the PBA has ever produced.

The lefty center is leaving the game happy and contented, but more than the comic relief he provided us, Pennisi has established a legacy — a legacy that big men can also become multi-skilled, which will serve as their ticket to longevity.

Rey Joble has been a sportswriter covering the PBA games for more than a decade. He is a member of the PBA Press Corps and Philippine Sportswriters Association, the oldest journalism group in the country.

reyjoble09@gmail.com

Defensor politicians jumping to ruling PDP-Laban party

September 4, 2017 | 12:02 am

GOVERNOR ARTHUR D. Defensor of Iloilo province and his two sons, 3rd district Rep. Arthur “Toto” R. Defensor, Jr. and 3rd district Board Member Lorenz “Nonoy” R. Defensor, are leaving the Liberal Party (LP) to join the ruling Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban). The governor said Friday that he has already informed Senate President Aquilino “Koko” L. Pimentel III, also currently the PDP-Laban president, of their decision. “He told me that he was glad with my decision as I can be of great help to them in espousing especially the plan to shift from a unitary form of government to a federal form. Ever since I was an assembly man, I always battled for federalism,” Mr. Defensor said in a press conference. He added that he has earlier met with defeated LP presidential bet Manuel “Mar” A. Roxas and Ilonggo Senator Franklin M. Drilon to say his goodbyes to the LP, which he has been part of since 2013. Mr. Defensor said he will be in Manila this week to discuss with House Speaker Pantaleon D. Alvarez the details of his oath taking. Mr. Defensor admitted that the shift to PDP-Laban is also intended to strengthen the position of his congressman son who has signified interest to run for governor in the 2019 elections. “That is practical politics. That is the reality of politics,” he said. — Louine Hope U. Conserva

Monolith: marketing agency returns home to digitally ready clients

September 4, 2017 | 12:01 am

By Arra B. Francia, Reporter

When Filipino-owned digital marketing agency Monolith Growth Ventures Pte. Ltd. started operations a year ago, the numerous hurdles in closing a deal in the Philippines pushed its business away to the foreign market. With clients from the United States and Australia, the privately held firm is now looking to get a slice of the Filipino market in a bid to attract more companies into the digital space.

Monolith founder Kenn Francis R. Costales, said he is in talks with large companies to take charge of digital marketing campaigns, such as the purchase of ad placements online.

“In the Philippines we’re targeting large companies talaga (really), because I know that they’ll say yes eventually. It’s just a matter of convincing them,” the 27-year-old entrepreneur said in an interview last week.

“For fourth quarter this year until first quarter next year Philippines ang focus ko talaga (is really my focus). I want to close mga (about) three to five big clients,” said Mr. Costales, who held various positions in brand management and business development for consumer goods giant Procter & Gamble in Singapore for four years before setting up his own business.

The Singapore-based firm previously signed only foreign clients as Mr. Costales noted that the Philippines is not yet ready for digital marketing, given the length of time it takes to explain the benefits of the service to local clients compared to that of foreign companies.

“So when I was starting out, I decided na unahin muna ang foreign market kasi ready na sila and naghahanap na sila ng digital marketing agency,” Mr. Costales said.

(So when I was starting out, I decided to prioritize foreign markets because they were ready and looking for a digital marketing agency.)

“Sa Philippines kasi sobrang tagal — mga five months to eight months in closing a deal,” he added.

(In the Philippines, it takes so long — about eight months in closing a deal.)

That length of time compares with just three to five weeks when dealing with foreign clients, he said.

Mr. Costales cited differences in digital marketing strategies abroad and in the country, where the latter usually focuses on activities that would raise awareness and increase engagement rather than look at return on investment (ROI).

“Number one challenge is always about what is the value of digital marketing,” he said, adding that this prompts questions on whether an ROI exists, which leads to an ROE-based marketing.

“[My advantage now is] I have experience with much more developed clients in the US and Australia so I know what I’m doing. I am now launching this in the Philippines. Ready na (It’s ready). We know what works now. Transfer na lang natin (Let’s just transfer them),” Mr. Costales said.

The company managed to realize P6 million in revenues during its first year of operations. In the future, Mr. Costales is hopeful that the company will post as much as P50 million in annual revenues.

Its clients include Australian fitness e-commerce brand The WOD Life AU, which it helped generate $1 million in additional revenue after eight months of Facebook ad placements. This indicated to a 10-to-1 return on ad spend. In the United States, Monolith helped dance studio Arthur Murray USA pick up thrice the number of monthly qualified leads, allowing it to further expand to the Midwest.

To stamp its presence in the country, Mr. Costales said the company is preparing to put up an office in Bonifacio Global City in Taguig before the year ends. This will house seven employees who had initially been working remotely. The executive is also targeting to hire at least two employees every month to support Monolith’s expansion.

Mr. Costales said companies should now start building up their digital presence, as it would be a vital component to their growth.

“I would say it’s definitely vital to their growth, especially when it’s cheap now,” he said.

He said this is because buying ads is done through auction. If there are many bidders in one side, the ads are expensive.

“Sa US, each click mga $15 siya. Sa Philippines it’s in centavos pa. My advice actually is to start and test now habang mura pa instead of waiting for later. Kung magiging mainstream na siya, saka siya mamahal,” he said.

(In the US, each click is about $15. In the Philippines it’s in centavos. My advice actually is to start and test now while it is inexpensive instead of waiting for later. When it becomes mainstream, it will become expensive.)

Competitiveness

September 4, 2017 | 12:01 am

If there’s anything Maria Sharapova has shown so far through her comeback in the United States Open, it’s that determination fuels her competitiveness. For all her talent, she thrives on purpose, and she is willing to do all she can in order to meet it. It would have been hard enough for her to try to make her way back to the top after having been sidelined from major tennis for 19 months. To seek redemption with hardly any peers on her side makes her effort doubly difficult.

Truth to tell, Sharapova doesn’t need the aggravation. If she retired now, at 30, she will already have proven herself to be among the sport’s all-time greats: She became World Number One in her teens, she boasts of five majors, and, with it, a career Grand Slam, and she would most certainly have a longer resume had she not found herself toiling in the Serena Williams Era. And she isn’t in it for the money or fame: She’s the highest-paid female athlete in the world, and only those who have lived under a rock in the last decade or so will not recognize her mug and the figure she cuts in myriad media productions.

Yet, it’s precisely because Sharapova resolves to keep wielding her racket until she has absolutely nothing left to give that separates her from the rest. It’s clearly why fans love her despite her supposedly stained past. Not everyone gets another crack after having been banned for doping, but there she is, in Williams’ absence the organizers’ biggest draw at Flushing Meadows.

Admittedly, the optics aren’t kind to Grand Slam tennis. It’s why fifth-seed Caroline Wozniacki couldn’t help but complain in the aftermath of a loss on Court no. 17. Then again, it’s not Sharapova’s fault that many more paying spectators want to watch her, and that the only way to serve the increased interest would be to place her at the imposing Arthur Ashe Stadium, never mind her World Number 146 ranking and status as a wild-card entry. As she herself said, “I’m a pretty big competitor. If you put on out on the parking lot of Queens, in New York City, I’m happy to play there.” And, in a deliberately biting tone that demonstrates her feistiness, she added, “That’s not what matters to me. All that matters is I’m in the fourth round. I’m not sure where she is.”

Whether Sharapova will succeed in surviving the entire fortnight remains to be seen. At this point, her body is already complaining from all the stress it has been subjected to after a long period of inactivity. And she won’t have many — if at all — sympathetic voices inside the locker room. Then again, her position isn’t new to her; she has long been prepping for matches alone in front of her stall, lost in her own world. And then when she steps on the court, she let’s it all out. Amid the din of the support and opposition she is greeted with, she is at peace.

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.

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