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UK, PHL push greater use of preferential DCTS trade scheme

GOV.UK

THE UK and the Philippines are hoping for greater utilization of the UK’s Developing Countries Trading Scheme (DCTS), the British Embassy in Manila said.

“We are very pleased to be working with the government of the Philippines to try to increase utilization,” British Embassy Manila Director of Trade and Investment Lindsey Gilbert-Crouch said in a roundtable discussion late Tuesday.

“I believe in the next few days, we are going to be launching an exporters handbook to help support that,” she added.

Export Marketing Bureau (EMB) Director Bianca Pearl R. Sykimte said that the handbook aims to help exporters access the UK market.

“I think towards the end of the week, we’re launching the handbook as part of our Joint Economic and Trade Committee (JETCO). So, we are launching a guidebook on how to access the UK market, leveraging the DCTS,” Ms. Sykimte told reporters on Monday.

She said that the JETCO, aside from increasing trade, aims to improve the utilization rate of the DCTS, which is currently around 68%.

“We have also had discussions with the UK government on relaxing some of the rules for sectors that have underutilized the scheme, specifically garments,” she said.

“The UK has also had several consultations with other developing countries availing of DCTS. And one of the focus sectors is garments, because it has low utilization,” she added.

Ms. Gilbert-Crouch said DCTS utilization by the Philippines is “pretty high.”

“Obviously we would love to see utilization at 100%; that’s the dream. I don’t know if we will ever get there, but utilization is actually pretty high at the moment,” she said.

“So really, our goal at the moment is to work closely with the Department of Trade and Industry (DTI) to make sure that as many exporters as possible are aware of the scheme,” she added.

She also noted the UK’s work with Boston Consulting Group in exploring new industries that could benefit from the DCTS.

The UK and the Philippines held the inaugural JETCO meeting on March 17 with the aim of upgrading the growing bilateral economic relationship.

During the meeting, a program of work to advance bilateral cooperation over the next 12-18 months was endorsed, which includes government-to-government and government-to-business activities.

Collaboration will center on priority areas such as infrastructure, agriculture, energy, economic development, life sciences, and technology.

UK Trade Commissioner for the Asia-Pacific Martin Kent also said that the UK and the Philippines committed to progress a government-to-government financing framework partnership.

“That will unlock about 5 billion pounds worth of export finance to support sustainable public infrastructure and improve access to UK expertise and technology in the Philippines,” Mr. Kent said.

The government-to-government framework will also expand access to other sources of cooperation.

“Both countries agreed to develop a project pipeline through the Infrastructure Sectoral Working Group in anticipation of the establishment of the Framework,” the UK Department for Business and Trade said on March 19.

This year, the UK chose the Philippines to be the venue for the UK-Southeast Asia Tech Week. It brought 12 UK tech companies to meet 40 Filipino firms to explore and discuss commercial opportunities.

“The fact that this event is happening in the Philippines for the first time demonstrates just quite how much is happening bilaterally and quite how significant the potential for further partnerships is from the perspective of the UK,” British Ambassador to the Philippines Laure Beaufils said.

Mr. Kent said that there are no firm targets set in terms of how much investment the UK firms will be bringing in.

“But I think we’re going to be quite impressed by what we see over the short and medium term. There was a real buzz about this Southeast Asia Tech Week, and I think we’re going to see UK exports into the Philippines. We’re also going to see Philippine exports to the UK,” he said.

“I think we’re going to see investment from the UK into the Philippines and vice versa as well. And I think we’ll probably also start to see more British businesses setting up here and working in collaboration and partnerships, so no firm targets, but we are seeing some very promising early signs so far,” he added.

According to Ms. Gilbert-Crouch, the country’s talent and market make the Philippines an attractive destination for UK firms.

“This is a market filled with people who have the types of skills that tech companies are looking for, and that’s very important,” she said.

“(Another thing) is the size of the potential market. This is a country of over 100 million people, so there’s very strong demand for a lot of UK tech products and UK tech expertise. And I think UK companies are really just keen to tap into that,” she added. 

Mr. Kent also announced the launch of the Tech Growth Program, which is a partnership with Philippine venture capital firm Kickstart Ventures.

“The program will match UK startups to potential investments from Kickstart ventures through the Economic Corporation Technology Innovation Venture Fund, one of the largest venture funds in the Philippines,” he said.

“This collaboration reflects the UK’s strong commitment to providing innovative tech to the Philippines. And our strategic partnership with FinTech Alliance Philippines, announced this week, marks the beginning of a new era in UK-Philippines fintech cooperation,” he added.

The EMB reported that total trade between the UK and the Philippines was $1.18 billion in 2024. The UK was the Philippines’ 23rd leading trading partner last year.

According to Mr. Kent, over 200 British companies are operating in the Philippines. — Justine Irish D. Tabile

Apparent bid to smuggle sweetener foiled

BUREAU OF CUSTOMS FACEBOOK PAGE

SOME 10,000 bags of sweetener have been seized on suspicion that the cargo was misdeclared, the Sugar Regulatory Administration (SRA) said.

The shipment was declared by importers as “white sweet powder” and is believed to contain 88% sugar and 12% glucose, SRA Administrator Pablo Luis S. Azcona said at a briefing late Tuesday.

The SRA is currently performing laboratory tests on the premixed products.

Mr. Azcona said imports of premixed products that contain more than the allowable sugar content are illegal.

“Anything that has 65% and up (of sugar) is sugar.”

Mr. Azcona said the suspected instance of technical smuggling disrupts the “whole price structure” for sugar and threatens the livelihoods of sugar farmers.

The SRA has yet to issue an import order for this year, he said.

The regulator said in February that it is upgrading its database of importers to clamp down on technical smuggling. — Kyle Aristophere T. Atienza

University of Tokyo to look into more intensive use of PHL sugar byproducts

FACEBOOK.COM/VICTORIASMILLINGCOMPANY

THE Sugar Regulatory Administration (SRA) said the University of Tokyo will study the Philippine sugar industry to determine ways to use sugar byproducts more intensively, following the signing of a memorandum of agreement on March 21.

In a three-year partnership, which may be extended for another three, the SRA and the university will entered into a partnership to share technical know-how, specifically in determining ways to achieve “high-level utilization” of sugar by-products and to assess “the future value of the sugarcane industry through technology assessments such as life cycle assessment.” — Kyle Aristophere T. Atienza

Paperless invoicing and sales reporting

The electronic invoicing system was first introduced via an amendment to the National Internal Revenue Code (NIRC or Tax Code) through the TRAIN Law, effective January 2018, and further amended by the recently signed CREATE MORE. To implement the updated provisions on electronic invoices, electronic sales reporting and additional allowable deductions, the BIR issued Revenue Regulations (RR) No. 11-2025.

ISSUANCE OF ELECTRONIC INVOICES
In compliance with the BIR’s directive, an Electronic Invoicing/Receipting System (EIS) was established where the data required to be transmitted are stored and processed using the Sales Data Transmission System. From the initial coverage of taxpayers required to issue electronic invoices based on the earlier RR No. 8-2022, the regulations added the following taxpayers to the list of those required to comply: (1) those classified as Large Taxpayers under the Ease of Paying Taxes (EoPT) Act and RR No. 8-2024 and (2) taxpayers using Computerized Accounting Systems (CAS), Computerized Books of Account (CBA) with electronic invoicing and other invoicing software.

Meanwhile, certain taxpayers are required to issue electronic invoices upon the BIR’s establishment of a system capable of storing and processing transmitted data: (1) Registered Business Enterprises (RBE) availing of tax incentives, except those using CAS, CBA with accounting records and other invoicing software; (2) taxpayers using point-of-sale systems (POS); and (3) other taxpayers as may be required by the Commissioner to issue electronic invoices.

Taxpayers classified as micro taxpayers in line with the EoPT Law are excluded from the requirement. Nonetheless, they may voluntarily issue or continue to issue electronic invoices (if already doing so). In such cases, they can avail of the additional deductions provided under CREATE MORE.

ELECTRONIC SALES REPORTING REQUIREMENTS
The Electronic Sales Reporting System (ESRS) is the electronic reporting or process of storing, transmitting and/or receiving the electronic invoice data, through direct system-to-system data transfer without manual entry, to the BIR in a structured electronic format. The purpose of the system is for the taxpayers to electronically report their sales data to the BIR.

The same taxpayers required to issue electronic invoices are also required to comply with the ESRS, once the BIR has established a system capable of storing and processing the data that must be transmitted to it. Separate rules and regulations will be issued for this.

TAX INCENTIVES — ADDITIONAL DEDUCTION
As an incentive to taxpayers required or those who voluntarily comply with the electronic invoicing and sales data reporting requirements, an additional deduction from the taxable income will be allowed to help offset the cost of setting up the electronic reporting sales system. Micro and small taxpayers can additionally claim up to 100% of their total cost, while medium and large taxpayers can claim an additional deduction based on 50% of their total cost. This additional deduction may be availed of only once within the taxable year when the electronic sales reporting system is completed or when final payment for such a system is made. Additionally, imports connected with the electronic sales reporting system are exempt from taxes.

The expansion in the coverage of taxpayers highlights the importance of addressing significant concerns that require the BIR’s quick resolution in future issuances. One major concern remains: the establishment of a robust system for electronic sales reporting. Taxpayers need clear guidelines on how to transition from manual to electronic reporting and assurance that the BIR’s system can handle the required data. Additionally, there is a need for ongoing support and training to help taxpayers, especially the newly added ones, navigate and effectively comply with the new requirements.

In 2022, when RR No. 8-2022 was issued to promulgate the e-invoicing and electronic sales reporting provisions of the TRAIN Law, the EIS was put in place and a platform was made available to taxpayers who joined the BIR’s pilot program. Other covered taxpayers have been waiting for developments on when the e-invoicing/sales reporting would be rolled out for the rest of them. This RR No. 11-2025 seems to have answered that long-hanging question. Under RR No. 11-2025, covered taxpayers are given one year from the effectivity of the regulations (i.e., until March 14, 2026) to comply with the electronic invoicing requirements.

When this RR first came out, two and a half years after the issuance of the first regulations relating to e-invoicing, it did not clearly mention the connection with the previous issuance (2022 RR). But from the provisions, it appears to supplement RR No. 8-2022 by expanding the coverage of taxpayers required to comply and laying down the additional deductions. CREATE MORE did not provide for the expansion of covered taxpayers; this was the prerogative of the Department of Finance and the BIR. With this development, it would seem that the BIR is confident that it is now in a better position to establish a robust EIS and ESRS capable of taking in more sales data from even more taxpayers, leveraging the lessons from the pilot program in the previous years.

With the increasing digitalization in Philippine business and the economy, a shift from paper-based to paperless system of invoicing and sales reporting is a welcome development. During tax audits/investigations, refuting an assessment boils down to the taxpayers producing substantial and relevant pieces of evidence and documents sufficient to justify the cancellation or reduction of the tax assessment issues. The same goes for tax refund cases where the entitlement to the claim is mainly dictated by the level of documentation taxpayers can produce to support the refund sought. Currently, taxpayers need to manually retrieve the necessary documents required to support their claims. These efforts from the BIR, once substantially implemented, gives us an opportunity to maximize digitalization for audit and refund claims, and move forward from the previous status quo.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Mary Rose Lara is a manager at  the Tax group of Isla Lipana & Co.,  the Philippine member firm of the PricewaterhouseCoopers global network.

mary.rose.lara@pwc.com

UP Fighting Maroons stun NU Lady Bulldogs in 5 sets

UP FIGHTING MAROONS upset NU Lady Bulldogs. — FACEBOOK.COM/WEARETHEUAAP

Games on Saturday
(Smart Araneta Coliseum)
9 a.m. – DLSU vs UST (men)
11 a.m. – ADMU vs AdU (men)
1 p.m. – ADMU vs AdU (women)
5 p.m. – DLSU vs UST (women)

VENGEFUL University of the Philippines (UP) pulled the rug from under reigning champion National University (NU), 26-24, 23-25, 17-25, 25-23, 15-12, to snap its unbeaten run in the UAAP Season 87 women’s volleyball on Wednesday at the Filoil EcoOil Center in San Juan.

The Fighting Maroons unleashed a 4-0 bomb in the fourth set capped by Joan Monares’ hammer to complete the upset that ended the Lady Bulldogs’ perfect 8-0 start and pushed them to solo fifth place at 4-5.

Middle blocker Niña Ytang led the way with a career-high of 30 points on 27 hits and three blocks as UP, in the process, quenched a nine-game, seven-year losing drought to the mighty NU since Season 81 in 2019.

Ms. Ytang was the first middle blocker to breach 30 points since Jaja Santiago of NU tallied the same output in 2017.

But the veteran Fighting Maroon wasn’t alone in the massive win with Ms. Monares (16), Irah Jaboneta, Kianne Olango (10) and Bienne Bansil (10) chipping in solid contributions.

Ms. Jaboneta had 13 digs and 19 receptions for an all-around play while Jaz Manguilimotan engineered UP’s upset with 17 excellent sets and libero Yesha Capistrano provided 11 digs and seven receptions.

“I’m speechless. The ball is round,” said the 23-year-old middle blocker Ms. Ytang, who also came close to the UP women’s record of 32 points set by Tots Carlos in 2018.

UP did, erasing a 1-2 set deficit none bigger than a tall stand in the decider at the expense of the mighty NU side with a proven championship pedigree.

The Lady Bulldogs, who swept the Fighting Maroons in the first round, 25-13, 25-23, 25-22, were still protecting a 12-11 lead in the fifth set off an Alyssa Solomon hit before being stunned and blanked the rest of the way.

UP launched an onslaught in four straight possessions highlighted by Ms. Ytang’s quick hit and Ms. Monares’ finisher that went straight through NU’s defenders.

Reigning MVP Bella Belen had her numbers with 21 points on 16 hits and five aces while Ms. Solomon (19), Vange Alinsug (16) and Erin Pangilinan (11) were also solid but to no avail in NU’s first scar this season.

In the men’s division, four-peat champion NU (7-2) clobbered UP (2-7), 23-25, 25-14, 25-20, 25-23, for a good bounce-back win after a stunning loss to La Salle. — John Bryan Ulanday

Alexandra Eala set to enter Top 100 WTA ranking pending quarterfinal results

ALEX EALA — JIMMIE48/WTA

WIN OR LOSE, Alexandra “Alex” Eala is a cinch for her highest ranking ever in the Women’s Tennis Association (WTA).

Currently at No. 140, the Filipina tennis sensation is projected to enter the Top 100 for the first time in her rising career pending the results of her gigantic quarterfinal duel against her idol Iga Swiatek of Poland in the 2025 Miami Open at the Hard Rock Stadium in Florida.

Ms. Eala sports 524 points in 31 tournaments this season so far and is assured of at least 215 points with a quarterfinal appearance on the crest of a scintillating Cinderella run as an unheralded wildcard entry in the 128-player field.

The 19-year-old ace barged into the Last 8 — which has been moved as per the updated Miami Open schedule at 1 a.m. on Thursday (Manila time) — against Ms. Swiatek via walkover after world No. 10 Paula Badosa of Spain withdrew due to a lower back injury in the fourth round.

Ms. Swiatek, the five-time Grand Slam champion and was the No. 1 player for 125 weeks from 2022-2024, drubbed world No. 22 Elina Svitolina of Ukraine, 7-6 (5), 6-3, to arrange a date with the Filipina protégé.

Regardless of the result, Ms. Eala would breach more than 718 points, the current total of Romania’s Anca Todoni as the Top-100 player right now in the women’s pro circuit.

Should Ms. Eala manage to spring a monumental upset on the 23-year-old Ms. Swiatek, though for a seat in the semifinals, another 390 points await her that could propel her to at least a Top-80 placing.

Australia’s Maya Joint is the current 80th-ranked player in the WTA with 853 points.

As early as the Round of 16 though, unofficial live ranking has Ms. Eala at No. 102 given the points she collected from three straight upset victories against top-ranked and former Grand Slam champion players.

Ms. Eala stunned world No. 73 Katie Volynets of the United States, 6-3, 7-6(3), in the Round of 128, world No. 25 and 2017 French Open champion Jelena Ostapenko of Latvia, 7-6(2), 7-5, in the Round of 64; and world No. 5 and reigning Australian Open champion Madison Keys of the United States, 6-4, 6-2, in the Round of 32.

With that giant-killing spree, Ms. Eala is the first Filipino to beat a Top-25 and Top-5 player ever and against Ms. Swiatek, she’s out for more history. — John Bryan Ulanday

Philippines dominates Maldives, leads Group A of AFC Asian Qualifiers

PHILIPPINES NATIONAL FOOTBALL TEAM — PHILIPPINE FOOTBALL FEDERATION

BOLSTERED by exciting new additions, the Philippines beat Maldives, 4-1, to take pole position in Group A at the start of the AFC Asian Qualifiers on Tuesday in Capas, Tarlac.

The Filipinos turned in a dominant performance at the New Clark City Stadium, storming to a 2-0 lead in the first 45 minutes then offsetting the Maldivians’ breakthrough goal with two outstanding strikes in the last 17 minutes.

The three-goal home victory put Albert Capellas’ side to the top of the table with three points ahead of fellow opening-night winner Tajikistan on goal difference. The Tajiks, quarterfinalists in the 2019 Asian Cup, scored a rather dull 1-0 disposal of lightweight Timor-Leste over in Dushanbe.

“Job done. It’s these kinds of games that we have to win if we want to qualify (for the 2027 AC),” said Mr. Capellas, whose charges will seek to make it two in a row in a marquee home duel with Tajikistan in June.

“At home in our first game, it’s always important to start with a win. There’s also a difference of goals and now we’re in the top and we can’t wait to play Tajikistan at home.”

Fil-Swiss Randy Schneider introduced himself to Asian football and Philippine fans as he figured prominently in the first three goals and won Man of the Match honors.

Mr. Schneider launched the corner kick that led to Jefferson Tabinas’ sixth-minute opener then he assisted Bjorn Kristensen for the second goal (19th) before sending it to the back of the net himself in 77th to restore a two-goal cushion after Maldives pulled one back via Ali Fasir’s 62nd-minute strike. Sandro Reyes, on a set up by another debutant, Josef Baccay, wrapped up the scoring in the second minute of stoppage time.

“I’m proud to play for the Philippines and help the team,” said Mr. Schneider. “I think with my goal and my assists, I helped them a lot and that’s the first step for the qualification for the Asian Cup 2027.” — Olmin Leyba

Djokovic trounces Musetti to reach Miami Open quarters

NOVAK DJOKOVIC — MIAMIOPEN.COM

Paolini defeats Linette and Sabalenka beats Zheng

NOVAK DJOKOVIC won 12 of the last 14 games of his match against Lorenzo Musetti to crush the Italian 6-2, 6-2 and move into the quarterfinals of the Miami Open in his best performance since the Australian Open.

The momentum in the rain-delayed match seemed to swing in Djokovic’s favor when he complained to the chair umpire in the opening set over a serve clock warning.

That frustration seemed to spark the Serbian, who broke the next game for a 4-2 lead and never looked back in the presence of an adoring crowd that included tennis greats Serena Williams and Juan Martin del Potro.

“I was star-struck. It was amazing to see first DelPo, obviously a long-time friend and a rival, so happy to have him around and get his support from the box,” Djokovic said.

“It was amazing, it was (the) first time to have DelPo in the box, so I want to thank him really for coming. And Serena, that was a surprise.”

Six-time Miami champion Djokovic crushed an exquisite backhand winner for a 5-2 second-set lead and sealed the win when Musetti double-faulted on match point.

“Actually, when I had that down-the-line passing shot, I pointed to her and asked her whether it was okay,” he added.

“She said, ‘yeah, it was fine.’ If Serena says it was fine, then it was amazing by everyone else’s standards.”

Next up for fourth-seeded Djokovic is American Sebastian Korda, who prevailed 6-4, 2-6, 6-4 over veteran Frenchman Gael Monfils earlier in the day.

Korda lost a thrilling three-setter to 24-time Grand Slam champion Djokovic in their only previous meeting in the Adelaide final in 2023.

Argentine Francisco Cerundolo upset three-time major finalist Casper Ruud 6-4, 6-2 to reach the quarterfinal of the tournament for the third time in four years.

Cerundolo never faced a break as he pummeled the fifth-seeded Norwegian with six aces and 21 winners, setting up a meeting with 14th seed Grigor Dimitrov, who defeated home hope Brandon Nakashima 6-4, 7-5.

WOMEN’S SIDE
On the women’s side, Italian sixth-seed Jasmine Paolini saved seven of the eight break points she faced to defeat Magda Linette and reach the semifinals.

Paolini will next face world number one and first-time Miami semifinalist Aryna Sabalenka, who beat China’s Zheng Qinwen 6-2, 7-5 in a rematch of their 2024 Australian Open final.

“Always tough battles against her,” Sabalenka said after extending her head-to-head record against Zheng to 6-0.

“Today I had to work really hard, especially in that second set. I’m really proud of the way I handled my emotions.

“Even when something didn’t work well, I was there and I was fighting for every point.” — Reuters

OKC Thunder win 60th victory

SHAI GILGEOUS-ALEXANDER had 18 of his game-high 32 points in a lead-creating first half, Alex Caruso and Isaiah Joe helped squash a Sacramento rally with contributions to a fourth-quarter run and the Oklahoma City (OKC) Thunder won their 60th game Tuesday night, 121-105 over the host Kings.

Chet Holmgren posted an 18-point, 10-rebound double-double for the Thunder (60-12), who reached 60 wins in the regular season for the fifth time in franchise history, which dates back to an earlier life as the Seattle SuperSonics.

The loss was a fourth straight for the Kings (35-37), who fell into a tie with the Phoenix Suns for ninth place in the Western Conference, both just a half-game up on the 11th-place Dallas Mavericks.

Down 64-42 at the break after Gilgeous-Alexander’s big first half and by as many as 25 early in the third period, the Kings, getting four 3-pointers from Keegan Murray, rallied within eight by quarter’s end.

But Caruso opened the fourth period with a three-point play and an interior hoop, and after Joe dropped in his second 3-pointer of the quarter, the Thunder had lengthened the lead to 105-89 with just 6:59 remaining.

The Kings, who fell to 2-4 on a seven-game homestand, got no closer than 13 after that as the Thunder coasted to a seventh straight win.

Gilgeous-Alexander was one of six Oklahoma City players with two or more 3-pointers, connecting on 3-for-6. Joe went 4-for-6 from deep in a 14-point performance, while Kenrich Williams was 3-for-4, Lu Dort 3-for-6, Caruso 2-for-3 and Jaylin Williams 2-for-4.

As a team, the Thunder shot 19-for-32 from beyond the arc. They were outscored 69-57 from deep, but it took the Kings 16 additional attempts to convert four more.

Caruso finished with 15 points, Dort 13 and Williams 11 for the visitors, whose Isaiah Hartenstein collected 10 rebounds to go with four points. Caruso and Williams shared team assist honors with six apiece.

Murray shot 9-for-13 on 3-pointers to account for all but one of his team-high 28 points.

Domantas Sabonis was the game’s leading rebounder with 12 and top assist man with eight to go with eight points, while Zach LaVine had 19 points, Keon Ellis 12, Jake LaRavia 11 and DeMar DeRozan 10. — Reuters

Maasin, Leyte bids to be premier football venue with FIFA-certified field

MAASIN CITY, the capital of Southern Leyte, is well underway of becoming a premier destination for competitive football due to its newly-launched FIFA quality football pitch. Located in Barangay Tam-is, the Maasin City Tigers Football Field is the first FIFA-quality pitch in the Visayas. The pitch is part of the soon-to-rise Maasin City Sports Complex that will also house an oval track, basketball stadium, volleyball gym, badminton courts, swimming pools, a grandstand and a convention center under strict standards for future international tournaments, particularly FIFA matches.

“The city’s decision to collaborate with DPWH’s (Department of Public Works and Highways) investment in the football field and oval track stems from our commitment to promote sports as a vital platform for youth engagement, physical health, and fostering community pride. Football and track and field are steadily gaining popularity among the youth in Maasin City, with increasing participation in schools and local tournaments,” said Mayor Nacional Mercado, Maasin City. “As someone who has personally experienced the joys and discipline of football as a high school varsity player, I am deeply passionate about introducing this sport to our younger generation.

This investment by DPWH, through the efforts of former DPWH Secretary, Atty. Roger Mercado, is not just about building infrastructure but about creating opportunities for our youth to discover their potential, build character, and cultivate a lifelong love for sports.”

Built by E-Sports International, the Maasin football field’s durability, playability and aesthetic design was achieved with the use of Duo Shape turf, the FIFA-preferred brand of the renowned Italian sports surfaces expert, Limonta.

Currently in the pipeline is a track oval around the football field which will also be constructed by E-Sports International. The oval track will utilize the Polytan Rekortan M performance surfaces and will be tested for the World Athletics Class 2 certification. The Polytan Rekortan M track system is the most certified track in the world, with 153 World Athletics-certified installations across the globe.

E-Sports International has built 10 FIFA-certified football fields nationwide, including the Rizal Memorial Stadium in Manila, University of the Philippines (UP) Diliman field in Quezon City, Biñan Football Stadium in Laguna and the Philippines’ 1st IAAF-standard track and field oval at the New Clark City in Capas, Tarlac for the 30th SEA Games in 2019.

POC asks PSC to release Harbin gold winner curling team incentives

THE Philippine Olympic Committee (POC) on Wednesday asked the Philippine Sports Commission (PSC) to release the incentives due the national curling team that struck a historic gold in the Asian Winter Games in Harbin, China last month.

POC President Abraham Tolentino said the incentives, worth P2 million as mandated by law, has not been released to the triumphant Filipino curlers Marc and Erico Pfister, Alan Frei and Benjo Delarmente, which, the former said, could affect their training for the qualifier to next year’s Winter Olympics in Italy.

“This delay is hurting the momentum of our historic gold medallist in curling in Harbin with strong consideration that the victory — a first by the country and any Southeast Asian nation in any winter sports — is our springboard to a potential gold in next year’s Winter Olympics,” said the Tagaytay City Mayor and PhilCycling chief.

“Let’s give what’s due this team because before their historic success in Harbin, they’ve been competing under the Philippine flag at their own expense and without any support from our government,” he added.

The POC had already given the team $5,000, or around P286,000, before the squad left to resume training abroad.

The Philippine Sports Commission has yet to respond to the issue as of this writing.

“I’m hoping they release incentives the soonest and avoid any delays because this may affect the team’s preparations on their campaign to qualify for the Winter Olympics,” he said. — Joey Villar

Stagflation on the radar for US economy, but no repeat of ’70s

A SHOPPING CART is seen in a supermarket in Manhattan, New York City, June 10, 2022. — REUTERS

WASHINGTON — Recent economic projections from Federal Reserve officials had shades of “Stagflation-lite,” in the words of one economist, a sentiment increasingly echoed among other observers of the US economy and central bank wondering if the country’s outperformance during the pandemic is about to slide.

So what is stagflation and why is it suddenly on everyone’s mind?

THAT (BAD) ’70s SHOW
Stagflation, or a period of both high inflation and high joblessness, hit the US notably in the 1970s, which may have featured the worst US economic leadership since the Great Depression. Fed officials had their data and their framework wrong, and elected officials flailed against inflation with price controls and what now seem quaint public relations efforts, most notoriously the Ford administration’s “Whip Inflation Now (WIN)” button campaign.

As economists in recent weeks have begun marking down their estimates of economic growth and marking up estimates of inflation in the face of dramatic economic policy shifts under President Donald Trump, it has sparked debate about whether that could be unfolding again now.

In theory, a weak economy with rising unemployment undercuts inflation, so the two should not coexist. But as with oil price shocks in the 1970s that drove prices higher, the tariff shock anticipated from Mr. Trump’s trade policies now has the world guessing.

The Trump administration says the tariffs are part of what they bill as a transition for the economy that, coupled with other efforts to deregulate industry and cut taxes, will produce both plentiful jobs and lower inflation.

The hints of stagflation in current forecasts aren’t near as bad as the 1970s, a decade in a league of its own when a surge in the so-called “misery index” combining the unemployment and inflation rates still stands out in charts of postwar economy.

But the direction of travel for major aspects of the economy has caught economists’ attention. When Fed officials this week assessed the risks they see ahead they pointed uniformly towards higher inflation and higher unemployment than previously expected.

“Stagflation-lite,” is what RSM chief economist Joe Brusuelas titled his analysis of the Fed’s meeting last week. Policymakers’ forecasts “implied mild stagflation ahead in the near term as growth slows and inflation increases,” he said, noting the “pervasive uncertainty around the size and magnitude of the trade shock.”

‘NOTHING MORE UNCOMFORTABLE’
Fed policymakers last week left interest rates unchanged but still anticipate two quarter-point cuts by yearend. Their new economic projections, however, laid bare their conundrum. Growth is anticipated to slow, unemployment to rise a bit more than expected, and inflation to accelerate in the face of existing and widening tariffs.

Implied by their forecasts of rate cuts and higher inflation is a belief that tariff-triggered price increases would be one-off jumps, the same assumption the Fed made early in the pandemic when it called rising prices “transitory” — and was proven wrong.

Things are different now. Factories and ports are open and goods are flowing.

But given the scope and breadth of what Mr. Trump is planning, officials say the outcome remains unpredictable.

Hard macroeconomic data, as Fed Chair Jerome Powell noted in his press conference last week, remain solid. The misery index is rather low in fact.

But softer measures like sentiment are sliding, something policymakers feel could cause businesses to stall investment and hiring and households to cut back, even as tariffs lead prices to keep rising. Fed officials note growing concern among business contacts, and have begun discussing the difficult choice moments of stagflation pose for a central bank tasked with controlling inflation while sustaining employment.

“There is nothing more uncomfortable than the stagflationary environment…where both sides of the mandate start going wrong. There is not a generic answer…Which is worse? Is it bigger on the inflation side? Is it bigger on the job market side?” Chicago Fed President Austan Goolsbee said Friday on CNBC. “Higher tariffs raise prices and reduce output so that is a stagflationary impulse.”

NOTHING TAKEN FOR GRANTED
If the Fed is caught in the middle, their priority is clear: To ensure that not just inflation, but public expectations about inflation, remain under control.

Perhaps the key mistake of the 1970s was a failure to understand better the role that public psychology plays in future inflation. Scarred by rising prices, Americans’ belief that costs would keep on rising kept pushing prices higher even as the economy weakened.

It took punishing interest rates and two successive recessions under Fed chief Paul Volcker to begin to establish the Fed’s credibility and reset expectations through the rest of the 1980s and into the 1990s.

That’s a lesson Mr. Powell has said he takes to heart, and one he says he won’t repeat.

“I don’t see any reason to think that we’re looking at a replay of the ’70s or anything like that…Underlying inflation is still running in the twos, with probably a little bit of a pickup associated with tariffs,” Mr. Powell said at a press conference after the Fed’s most recent meeting. “I wouldn’t say we’re in a situation that’s remotely comparable to that.

But stable inflation expectations are “at the very heart of our framework,” he said. “We will be watching all of it very, very carefully. We do not take anything for granted.” — Reuters

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