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Wage hike not expected to hurt foreign investor interest in PHL

PHILIPPINE STAR/BOY SANTOS

A WAGE hike is not expected to reduce the appeal of the Philippines to foreign investors, the British Chamber of Commerce of the Philippines (BCCP) said.

BCCP Executive Director and Trustee Christopher James Nelson said by phone that wage hikes will not necessarily mean the loss of foreign investors, contrary to the fears of other employers.

“It’s not the only factor… investors will also look at (other factors). There’s no single factor that will lead investors to say, ‘Okay, wages have gone up, that means I go somewhere else.’ It is a combination of factors,” he added.

The Philippine mechanism for raising minimum wages is via rulings issued by regional wage boards, which cannot hear wage hike appeals until the anniversary of the last ruling.

Mr. Nelson said the peso’s prolonged weakness and agriculture-related legislation would be the developments British investors are focused on.

He added that the Philippines remains attractive to foreign investors due to the recent executive orders of President Ferdinand R. Marcos, Jr., specifically the one cutting tariffs on imported rice.

“It’s those actions could have a greater impact (on foreign investors) because what drove inflation, particularly, is the cost of rice and meat products and foodstuffs,” he said.

He said regional boards should decide on wage hikes instead of Congress legislating higher wages.

“We were happy to see that they’ve gone back to the wage boards. That was how, in the Philippines, it has been previously done. That’s important as opposed to having a mandated increase from Congress,” he added.

An economist and some employers last week said a wage increase would drive away foreign investors, and turn to neighbors Vietnam and Cambodia.

Labor groups have said a skilled workforce is also an important factor for attracting foreign investors, though they need to be paid fairly.

The wage board for Metro Mania concluded a public hearing on wage hikes on Thursday, discussing petitions ranging from P100 to P750 from various labor groups. It is currently reviewing the proposals.

It is set to release its decision on or before July 20, the anniversary of the last wage order in the National Capital Region (NCR).

The daily minimum wage in the NCR is P610 for non-agriculture workers and P573 for agricultural workers, retailers with 15 workers or less, and manufacturing firms regularly employing fewer than 10 workers. — Chloe Mari A. Hufana

TIEZA sees changes to CREATE encouraging tourism investment

PHILSTAR FILE PHOTO

THE TOURISM INDUSTRY is expected to attract increased investments once the amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act are passed, an industry regulator said.

On the sidelines of the Philippine Tourism and Hotel Investment Summit on Friday, Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Chief Operating Officer Mark T. Lapid said investors “will benefit because that will level the playing field. Meaning, what you can get in the Philippine Economic Zone Authority (PEZA), you can also get in the Board of Investments (BoI) and in TIEZA,” Mr. Lapid said in a mix of English and Filipino.

“But the only thing that you cannot get from the other investment promotion agencies and you can get from us is the infrastructure support,” he said. “So yes, this will make the sector more attractive to investors.”

In March, the House of Representatives approved on final reading the CREATE to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which seeks to cut the corporate income tax to 20% from 25% The bill has been passed on to the Senate.

During the summit, the Philippine Hotel Owners Association, Inc. (PHOA) and Leechiu Property Consultants released the Philippine Hotel Investment Outlook Survey, which in part laid down government support recommendations that it hopes will attract more investment.

In particular, PHOA and Leechiu called for additional tax incentives and the extension of  current incentives to help offset setbacks during the pandemic and help proponents recover at least half of their construction and land acquisition costs.

Francis Nathaniel C. Gotianun, chairman of the organizing committee of the summit, said: “We are  trying to get a reinvestment allowance … since hotels require a lot of capital investment on an ongoing basis, we were hoping that we could get a 50% rebate on our renovation costs because we continuously renovate hotels,” Mr. Gotianun told BusinessWorld.

Another recommendation in the report is increased incentives for sustainability initiatives, which PHOA and Leechiu said will help “inspire both hospitality establishments and the public to integrate environmental stewardship into their operations.”

According to Mr. Gotianun, the government can help the industry by providing funding access for sustainability initiatives.

“It can be in the form of a subsidy or reimbursement for investment in sustainability. It would be good if there was some sort of financing facility, rebate, or tax break as a result of the investment,” he said.

“The idea is that if we can get some tax shielding as a result of that investment, it will encourage people to invest again. Obviously, the more government support we can get, the more we’d be happy to invest,” he added.

Meanwhile, Mr. Lapid said TIEZA is offering 10 assets for joint ventures or for public-private partnerships.

“These are open for investment, so the private sector can come in or form a joint venture, and then from our part, we would be responsible for the property and the land cost,” he said.

The projects include the development of a critical tourism infrastructure project in Boracay Island, the rehabilitation and redevelopment of the Balicasag Island Dive Resort, the development of an integrated tourism complex in Ilocos Norte, and the development of an integrated drive complex in Moalboal in Cebu Province. — Justine Irish D. Tabile

ERC reviewing allowable power plant outage levels

THE Energy Regulatory Commission (ERC) said it is reviewing the reliability index that typically sets the allowable outages for energy facilities, to improve monitoring and set appropriate penalties.

“We are reviewing the reliability indices based on the petition filed by PIPPA (Philippine Independent Power Producers Association, Inc.) to make sure the indices are real measures of operational performance,” ERC Chairperson Monalisa C. Dimalanta said via Viber.

“We can then improve our monitoring tools and impose appropriate penalties,” she added.

The reliability index in force since 2020 allows the ERC to set the maximum days of planned and unplanned outages per year, varying by generating plant technology.

The ERC reviews non-compliance of power generators and issues notice with an order to comply and to explain. It will then impose fines and penalties to those that refuse or fail to comply.

The ERC reported that five power generation companies exceeded the unplanned outage allowance as of April 30, a period when the power grids declared red and yellow alerts.

Ms. Dimalanta said the ERC hopes to complete the review within the month.

At a forum last week, Ms. Dimalanta said many distribution utilities (DUs), primarily electric cooperatives, had nearly 100% exposure to the Wholesale Electricity Spot Market (WESM) over the last two months during the heatwave and subsequent red alerts.

“Almost all of their supply came from the WESM. They do not have bilateral contracts where  the price is locked in, where the supply is assured,” she said.

Ms. Dimalanta said that the ERC monitored about 30 DUs with 25% to 100% WESM exposure and verified whether they have power supply agreements (PSAs) for approval and whether they have asked for provisional authority.

“Hopefully, for the next few months, we will be able to clean up that list,” she said.

WESM is where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs, but they pay a premium for spot power.

Meanwhile, Ms. Dimalanta said the ERC expects more consumers to choose their own suppliers as the threshold for the Retail Competition and Open Access (RCOA) falls.

“As we lower the threshold for RCOA over the next 4-5 years, we see more consumers migrating from being captive by their DUs (distribution utilities) to being contestable customers choosing their own suppliers,” she said via Viber.

Under the Electric Power Industry Reform Act of 2001, qualified contestable customers, or end-users consuming at least 500 kilowatts a month, may choose their own power suppliers under the RCOA scheme.

End-users are given the opportunity to participate — on a voluntary basis — in the Competitive Retail Electricity Market, allowing them to choose from an array of power suppliers that offer cheaper electricity.

Captive customers are those served by DUs in areas which they are based.

During the forum, Ms. Dimalanta said the ERC projects that the conduct of the competitive selection process (CSP) “will not be as dominant in the space as we see them now” in the next few years.

She said that more consumers will migrate to the contestable market and “there will be less of the captive consumers that DUs will need to contract for.”

“In that near future, there will be fewer customers served by DUs under PSAs. So there will be less relevance for CSPs because customers will be contracting directly for their own supply,” Ms. Dimalanta said.

The government requires DUs to select the cheapest electricity through a CSP. — Sheldeen Joy Talavera

Fishport landed volume up 55% in May at 66,587.86 MT

PHILIPPINE STAR/ MICHAEL VARCAS

THE catch landed at regional fishports rose 55.5% by volume in May, according to the Philippine Fisheries Development Authority (PFDA).

In a report, the PFDA said the landed catch was 66,587.86 metric tons (MT) during the period, up from 42,814.9 MT a year earlier.

Month on month, fish deliveries rose 10.5% from April levels.

The PFDA said the increased fish catch came despite the “lingering effects of El Niño and the onset of the rainy season which may have affected fish and fishing activities.”

The General Santos Fishport Complex reported deliveries of 34,747.19 MT, more than double the 15,788 MT booked a year earlier.

Deliveries at the Navotas fishport increased 18.7% to 23,312.20 MT during the month.

The Iloilo fishport reported volume of 3,172.54 MT, followed by Bulan fishport in Sorsogon with 2,310.55 MT and the Lucena Fish Port Complex with 1,817.06 MT.

The catch landed at the Zamboanga fishport was 898.94 MT, while that in Davao was at 222.389 MT.

It added that fish landed at Sual, Pangasinan was 78.7 MT during the month. — Adrian H. Halili

Chinese e-vehicle firm invited to establish operations in PHL

PHILIPPINE STAR/EDD GUMBAN

THE Philippine Consulate in Chongqing, China and the Philippine Trade and Investment Center (PTIC) said they have invited Chongqing E-Cars Technology Co., Ltd. to set up an assembly plant and expand its operations in the Philippines.

Citing the market for electric tricycles, Chongqing Consul General Ivan Frank M. Olea and PTIC Commercial Consul Glenn G. Peñaranda met with Chongqing E-Cars Vice-President Alex Wang on June 21 to discuss plans for expanding e-trike deployments in the Philippines.

At the meeting, Mr. Wang said lithium-powered e-trikes can run for 140-170 kilometers on a single charge and are more sustainable than traditional gasoline-fueled tricycles.

In April, the Pakil, Laguna municipal government launched 12 three-wheelers made by Chongqing E-Cars, making Pakil the first local government unit to partner with the Chinese manufacturer in green transportation.

Mr. Peñaranda said the PTIC would be willing to assist the company in setting up a manufacturing or assembly plant in the country.

“Mr. Olea added that the Consulate General and Chongqing E-Cars can strengthen cooperation in terms of promoting people-to-people and business-to-business exchanges between the Philippines and China,” the consulate said. — John Victor D. Ordoñez

Instilling integrity into the corporate DNA

IN BRIEF: 

• Nearly half (49%) of global respondents believe that compliance with their organization’s standards of integrity has improved over the past two years, marking a 7% increase from 2022.

• Unethical mindset is more dominant in the upper echelons of organizations, with 67% of board members admitting they would consider unethical actions for their own benefit compared to only 25% of employees.

• Recent research indicates that corporate fraud shaves approximately 1.6% off a company’s equity value each year. In monetary terms, that equates to a staggering $830 billion.

The current climate of persistent macroeconomic, geopolitical, and market volatility, coupled with stringent regulatory scrutiny, continue to put the moral compass of organizations to the test. These global conditions underscore the critical importance of the values businesses uphold, particularly trust and integrity.

Trust serves as a significant competitive advantage, particularly when market unpredictability challenges business resilience. Without trust from employees, customers, suppliers, and investors, an organization’s future viability is jeopardized.

At the same time, companies rooted in integrity ensure long-term sustainability by adhering to ethical practices, which reinforce their brand and operational stability. A lack of integrity erodes trust, leading to significant operational and strategic challenges.

The interplay between these two raises a critical question: “How can trust endure without integrity?” This query forms the crux of the EY Global Integrity Report 2024, which surveyed over 5,400 respondents across 53 countries and territories.

On the upside, 49% of global respondents believe that compliance with their organization’s standards of integrity has improved over the past two years, marking a 7% increase from the EY Global Integrity Report 2022.

However, 38% of global respondents acknowledge a willingness to engage in unethical behavior to advance their career or remuneration. This pervasive mindset creates substantial risks that could lead to various adverse impacts within an organization.

The cost of low corporate integrity is high. Specifically, corporate violations in the US and the UK incurred penalties totaling $1 trillion, as a result of half a million infractions between 2010 and 2023. 

This article explores actionable insights from the EY Global Integrity Report 2024 and identifies human-centered approaches that leaders can use to build an integrity-first culture within their organizations.

THE CURRENT STATE OF INTEGRITY
Despite improved perceptions of organizational standards of integrity, companies continue to grapple with significant incidents and violations. The EY report highlights that 20% of companies acknowledge experiencing major integrity breaches, such as fraud, data privacy or security incidents, or regulatory compliance violations, within the past two years.

Notably, among those reporting significant integrity incidents, over two-thirds indicate the involvement of third parties.

An analysis of over 500,000 corporate violations from 2010 to 2023 reveals that certain financial and employment violations, including accounting deficiencies, AML deficiencies, tax violations, labor standards, workplace safety, and consumer privacy issues, have become 2 to 10 times more frequent since 2010.

Conversely, there has been a notable decline in violations related to employee compensation, public safety, banking, and environmental issues. However, progress remains limited in addressing anti-competitive behavior, discrimination, and whistleblower retaliation.

EMPLOYEES’ APPROACH TOWARD INTEGRITY
Although a majority of employees (58%) take a principled approach to integrity, there remains a substantial proportion (42%) who may compromise these standards under certain conditions.

In this dichotomy, the report shows that potentially compromised employees have a more negative view of their organization’s compliance environment. They are nearly three times more likely to say that unethical conduct is ignored within their teams, and more than five times more likely to say that unethical conduct is ignored within their organization’s supply or distribution chain.

LEADERS’ INTEGRITY DILEMMA
An unethical mindset towards career or pay is predominant in the upper echelons of organizations, with 67% of board members admitting they would consider unethical actions for their own benefit compared to only 25% of employees.

Moreover, 47% of board members and 40% of senior management have observed actions within the past two years that could damage their organization’s reputation if made public, yet no internal response was taken. This lack of action highlights a critical gap in ethical oversight and accountability.

WHAT BREEDS MISCONDUCT
The survey identifies several root causes of integrity incidents globally, including failure of financial processes and controls (27%), lack of internal resources to manage compliance and integrity activities (27%), employees not understanding policy and requirements (26%), and lack of appropriate tone from senior leadership (25%).

Equally significant, 45% of global respondents who reported integrity incidents attribute them to poor leadership tone or management pressure. This issue is compounded by the apparent reluctance among leaders to address misconduct.

Such factors contribute to an environment conducive to misconduct, emphasizing the need for robust controls, resources, and leadership commitment to foster a culture of integrity.

HIGH COST OF LOW INTEGRITY
Misconduct is an unpleasant reality, surfacing even within the most ethical organizations. Corporate infractions come at a high cost — not just in resources spent on internal investigations and remediation but also in fines and penalties paid to government regulators.

For instance, recent research indicates that corporate fraud shaves approximately 1.6% off a company’s equity value each year. In monetary terms, that equates to $830 billion in 2021 alone.

But the costs extend beyond the financial. A top-down, all talk, no walk mentality erodes trust both within the organization and in the public eye, placing the company’s reputation and financial health in jeopardy.

BUILDING AN INTEGRITY-FIRST CULTURE
Embracing the following integrity-first approaches — which put the right programs in place to drive behavior to create a strong culture and a strong belief in their commitment to integrity — can help organizations keep pace with evolving regulations and increasing societal expectations:

Lead from the top. Integrity can’t be built or sustained with all talk and no action. Organizations need to focus on preventing and addressing misconduct by starting from the top. Moreover, leaders need to listen and practice what they preach to instill integrity further down the line. Words alone won’t inspire integrity; leadership action is a must.

Design and implement a structure to execute strategy. To prevent unethical actions from the top down, organizations must implement robust governance structures within their integrity programs and strategies. Breaking down silos is also crucial to encourage a “speak up” culture against any misconduct.

Strengthen a culture of integrity across the organization. Organizations must recognize that integrity is a collaborative endeavor, not merely a stand-alone function. Embedding compliance directly into operations—from new business development to vendor payments—transforms corporate policies into actionable workflows.

Boost awareness, training and communication. The report indicates that fewer than 47% of management teams frequently communicate to their employees the importance of behaving with integrity. Making the rationale behind policies crystal clear fosters a resilient organization capable of thriving in both good and bad times.

Create a virtuous circle of integrity. In times of rapid change and difficult market conditions, maintaining, let alone enhancing, corporate integrity can seem daunting. But it is precisely in these challenging times that integrity must not only be preserved but also prioritized.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Roderick M. Vega is the Forensic and Integrity Services Leader of SGV & Co.

Cheng steps down as manager of PHL women’s football team

JEFFERSON CHENG — PWNT

BUSINESSMAN JEFFERSON CHENG, a key piece of the recent success of the Philippine women’s football team program, has stepped down as team manager of the Filipinas.

Mr. Cheng, the Filipinas’ chief backer and manager in their rise from minnows to a FIFA Women’s World Cup competitor, cited differences in priorities and goals with unnamed parties, presumably the current Philippine Football Federation leadership, as primary reason.

“For several months, we tried our best to make things work, under new and very different circumstances. Unfortunately, the situation is not workable,” Mr. Cheng said in a statement on Sunday.

“Our priorities and goals do not align, and the PWNT (Filipinas) organization that we worked hard to develop in the past years is incompatible with current methods,” he added.

Under Mr. Cheng’s management, the Filipinas made history after history on the international stage.

The Pinay booters, boosted by the entry of topnotch recruits and regular high-level training camps and tournaments overseas, reached the semis of the 2022 AFC Women’s Asian Cup in India, which served as their ticket to the following year’s Women’s World Cup (WC).

A few months later, they netted a bronze medal in the 31st Southeast Asian Games in Vietnam — the country’s first football medal in the Games since 1985 — then followed it up with a milestone gold in the Asean Football Federation Women’s Championship on home soil.

They reached the pinnacle of success by scoring a historic 1-0 upset of host New Zealand in their WC debut in 2023.

“I want to thank all of you for the support and kindness that you have shown me. It is through you that our efforts have not gone unnoticed and I am grateful to have shared some of the best football experiences with all of you,” said Mr. Cheng.

It’s not immediately known whether Marc Torcaso, whom Mr. Cheng hired after the departure of the team’s World Cup mentor Alen Stajcic, will continue to coach the Filipinas following his departure. — Olmin Leyba

Watanabe assured of Paris Games berth — Carter

KIYOMI WATANABE — PHILSTAR FILE PHOTO

GOOD as in.

Philippine Judo Federation Secretary-General Dave Carter recently said Kiyomi Watanabe is virtually assured of a berth in the Paris Olympics set next month as a recipient of one of the two continental quotas allotted for Asia.

“Kiyomi (Watanabe) is good as in but the official announcement will come from the IFJ (International Judo Federation),” said Mr. Carter.

The IFJ announcement will come Tuesday.

The four-time Southeast Asian Games gold winner is currently ranked No. 92 in the women’s -63-kilogram Olympic qualifying ratings where the top 17 get the Paris ticket.

Although the Filipina-Japanese judoka has ranked lowly, she should still book a berth since only one per country can make the Olympic cut per weight category and gender.

Also, 10 quota places for each gender for Asia will also be given in each weight division.

Ms. Watanabe should be one of them.

Mr. Carter said Ms. Watanabe is currently training and is scheduled to fly to the French capital on July 22, or five days before the judo event, which is slated July 27 to Aug. 3.

It will be the second Olympics for Ms. Watanabe after making the cut in Tokyo three years ago.

“Kiyomi (Watanabe) is training hard and will proudly represent the country,” said Mr. Carter. — Joey Villar

Nike introduces new ’24 Gilas Pilipinas basketball team kit

JUNE MAR FAJARDO

IN a moment to celebrate a summer of sport, Nike reveals the 2024 Gilas Pilipinas national team kits for the men’s, women’s, 3X3, and youth basketball teams. Players will be wearing the most athlete-informed, data-driven, and visually unified team kit that the brand has ever produced.

To create the kit, Nike design teams first listened to the voice of the athlete, finding out their needs and preferences, then obsessed about every detail. The goal was to offer options that met athletes’ desires for choice, comfort, and performance.

Based on 4D motion-capture data algorithmically honed with pixel-level precision and engineered specifically for each competition, the kit was inspired by the distinct identity and diverse community that the country and the sport represent. The result was team kits that sport an entirely new chassis designed to answer the athletes’ preference for mobility and breathability and engineered to the exact specifications of the body in motion.

Gilas Pilipinas women Under 18 starts bid for Division A promotion against Maldives in China

Game Monday
(Futian Sports Park, Shenzhen, China)
4:30 p.m. — Philippines vs Maldives

GILAS PILIPINAS women begin its quest for Division A promotion against Maldives in the opener of the 2024 FIBA Under 18 (U18) Women’s Asia Cup Division B at the Futian Sports Park in Shenzhen, China.

Game time is at 4:30 p.m. with the Filipina ballers eyeing a flying start to their qualification bid in the bigger stage among the Asia’s titans. The wards of coach Julie Amos brim with confidence in getting the job done following a dominant performance in the Southeast Asia Basketball Association (SEABA) Qualifiers marked by an average winning margin of 37.6 points.

Ava Fajardo, Gabby Ramos, Alicia Villanueva, Tiffany Reyes, Maria Lapasaran, Ashlyn Abong and Margarette Duenas will spearhead Gilas, which clobbered Thailand, 103-58, Malaysia, 100-68, and Indonesia, 73-37 en route to Division B qualification.

In the Division B, Gilas will also duke it out against Lebanon on Tuesday and Syria on Wednesday in Group B with hopes of finishing in the top two for an automatic semifinal ticket.

Group A in the second-level Asian tourney running until the weekend features Iran, Samoa, Hong Kong and Kyrgyzstan.

Only the champion team from Division B will gain a promotion to Division A, where Australia, Japan, China, South Korea, New Zealand and Chinese Taipei as well as former Division B winners Indonesia and Malaysia will also slug it out simultaneously in China for Asian supremacy.

The Gilas U16 team had already achieved the feat in its age bracket, ruling the Division B via sweep last year to barge into the Division A as the newest squad.

Under the overall guidance of program director and women’s national team head coach Patrick “Pat” Aquino, that dream for the U18 team this time around is for the taking in Shenzhen. — John Bryan Ulanday

Pagdanganan slips to joint 25th place in KPMG tilt

BIANCA PAGDANGANAN’S title bid in the KPMG Women’s PGA Championship hit a major snag as she struggled with a two-over 74 in the third round Saturday in Sammamish, Washington.

After back-to-back rounds of 72, Ms. Pagdanganan managed only three birdies against five bogeys at the challenging Sahalee Country Club this time to slip seven places down to joint 25th.

Just six shots off the pace after two rounds, the 26-year-old Pinay, with her 218, now trails Korean leader Amy Yang (209 after a 71) by nine strokes going to the last 18 holes of the prestigious major.

ICTSI-backed Ms. Pagdanganan actually had a promising start on moving day as she gunned down two birdies in the first six holes. But she lost steam, dropping a shot on Nos. 8, 9, 12 and 13 before closing with a birdie-bogey in the last two holes.

Filipina-Japanese Yuka Saso, the reigning US Women’s Open titlist, had it worse as she coughed a five-over 77.

Ms. Saso, who barely made the weekend cut of five-over 149, fell to 67th with her 54-hole card of 226.

Mmess. Pagdanganan and Saso hope to finish strong in the final round to boost their confidence and create momentum for next week’s major, the Evian Championship in France, and ultimately the Paris Olympics.

Ms. Yang, meanwhile, is up by two against American Lauren Hartlage (69) and Japanese Miya Yamashita (70) who are at 211. One stroke back is second-round co-leader Sarah Schmelzel, who went two-over on moving day for 212. — Olmin Leyba

Portugal coasts into Euro 2024 last 16 with victory over Turkey

DORTMUND, Germany — Bernardo Silva’s first goal at a major tournament, a calamitous own goal from Samet Akaydin and a Bruno Fernandes tap-in gave Portugal a comfortable 3-0 win over Turkey on Saturday to guarantee qualification for the last 16 as Group F winners.

Silva gave Portugal the lead in the 21st minute, rifling home after Nuno Mendes’ cross deflected kindly into his path before Mr. Akaydin failed to look and passed the ball beyond onrushing goalkeeper Altay Bayindir seven minutes later.

Mr. Fernandes effectively ended the contest after 56 minutes when Cristiano Ronaldo — who could have become the oldest goalscorer in European Championship history — selflessly passed to his former Manchester United teammate to tap home.

The victory secures Portugal’s progress while Turkey must avoid defeat on Wednesday to the Czech Republic, who drew 1-1 with Georgia earlier on Saturday, to be certain of qualifying for the knockout rounds.

Portugal started sharply and were unfazed by the deafening whistles from Turkey’s supporters when in possession, with Ronaldo drawing an easy save from Mr. Bayindir inside two minutes.

Turkey — who had lost all three of their previous European Championship games against Portugal without scoring — set up more defensively after they gave up multiple chances to tournament debutants Georgia in their opening match.

They nonetheless often played out from the back and the gamble almost paid off after 20 minutes, but 41-year-old defender Pepe’s last-man challenge stopped Orkun Kokcu from breaking clear.

Portugal scored shortly after through a quick break down the left, when Mr. Mendes played a dangerous ball across goal which Silva turned home for his first major tournament goal in his 15th game at either the World Cup or European Championship.

A defensive mix-up doubled their lead when Mr. Bayindir, who was in the side for Mert Gunok, wandered out of his goal to collect a misplaced pass from Joao Cancelo towards Mr. Ronaldo.

But, as Mr. Ronaldo and Mr. Cancelo remonstrated, Mr. Akaydin played a no-look backpass which rolled past Mr. Bayindir in slow motion and evaded Zeki Celik’s desperate slide to cross the line.

Kerem Akturkoglu forced a great save from Diogo Costa almost immediately after, but Turkey otherwise created precious few chances.

Turkey pressed late on for a goal that would not have changed the result but would have improved their goal difference. — Reuters