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Breakaway LIV Golf tour signs 2018 Masters champion Reed

THE LIV Golf International Series on Saturday announced the signing of 2018 Masters winner Patrick Reed.

The 31-year-old American has won nine Professional Golfers’ Association (PGA) Tour titles and earned nearly $37 million during his career.

He is the ninth major winner to join the Saudi-backed rival golf circuit, a list that includes Phil Mickelson, Dustin Johnson, Sergio Garcia and Bryson DeChambeau.

“(Reed) has a proven track record as one of the most consistent competitors in pro golf and adds yet another big presence at our tournaments,” LIV Golf CEO and commissioner Greg Norman said in a statement.

“He’s a major champion who has had a significant impact playing international team competitions, and he’ll bring another impressive dynamic to our team-based format at LIV Golf.”

Reed has represented the US at three Ryder Cup competitions (2014, 2016, 2018) and three Presidents Cup events (2015, 2017, 2019). “It’s refreshing to see team golf again. It takes me back to college and Ryder Cup days,” Reed said.

“You’re not just playing for yourself — you’re playing for your team over there and that camaraderie. I’m excited about seeing more golf. You’re not just seeing coverage from featured groups — you’re seeing it from everywhere.”

LIV Golf is currently playing its inaugural event outside London. Reed is expected to participate in the series’ first US-based event at Pumpkin Ridge in Portland from June 30-July 2.

Reed, who was hospitalized with double pneumonia in August, finished tied for 53rd last week at the Memorial.

He tied for 35th at this year’s Masters and tied for 34th at the PGA Championship.

Reed can expect to receive a suspension notice from the PGA Tour, which announced the suspensions on Thursday of Mickelson and 16 other tour members who are participating in this week’s LIV Golf event in London. — Reuters

Zion Williamson making it clear he wants to play for Pelicans

ZION WILLIAMSON — REUTERS

ZION Williamson is putting last season behind him and focusing on remaining with the New Orleans Pelicans.

Williamson missed the entire 2021-22 season due to a broken right foot, and speculation persisted that he might prefer to play elsewhere.

But while speaking to reporters at a local YMCA basketball camp he was holding, Williamson was all-in on playing for the Pelicans.

“I do want to be here. That’s no secret. I feel like I’ve stood on that when I spoke,” Williamson said on Saturday. “Currently, this does not really have anything to do with that. This is just me wanting to be a pillar in my community.”

Williamson, who turns 22 in July, was fully cleared physically by the team on May 26 and has been working out in New Orleans with some of his teammates. 

“It was a long year for me on rehab and mental battles,” Williamson said. “I’m fine now. I’m ready to get to work.”

Since being the No. 1 pick of the 2019 NBA Draft, Williamson has played just 85 games (all starts) for the Pelicans. He missed the first three months of the 2019-20 season due to a knee injury.

Williamson was an All-Star in the 2020-21 season, when he averaged 27.0 points and 7.2 rebounds per game in 61 contests. He has career averages of 25.7 points, 7.0 rebounds and 3.2 assists.

Williamson could be in line for a five-year, $186-million extension from the Pelicans. Speculation has New Orleans seeking protections in the deal due to Williamson’s injury history.

As for getting an extension, Williamson smiled and said, “You have to ask the Pels, baby.” Williamson is slated to make $13.5 million in base salary next season.

Even with Williamson sidelined, New Orleans advanced through the play-in format to make the playoffs this season and lost in six games against the top-seeded Phoenix Suns in the first round of the Western Conference playoffs.

An in-season trade for CJ McCollum bolstered the club while star Brandon Ingram had another big season.

In addition, some of the team’s emerging role players excited Williamson as he ticked off the names of Jose Alvarado, Trey Murphy III, Herbert Jones and Jaxson Hayes. “That’s all I needed to see to really be excited to get back out there,” Williamson said. — Reuters

Everything starts and ends with Steph

It was clear from the outset that Stephen Curry resolved to play better in Game Four of the National Basketball Association Finals. For all the deficiencies of the Warriors in the previous match, he understood that everything started and ended with him. And while he started out well at TD Garden in Game Three, he ended badly; a basket and a dime to accompany three turnovers and four missed shots in most certainly explained why they scored just 11 in the fourth quarter and ultimately bowed by 16. In short, he knew that he could carve the outcome of the first championship series match hosted by the Celtics in 12 years with his performance: Anything less than a singular showing would further tilt the balance of the best-of-seven affair against them.

That Curry would come up with exactly what the Warriors needed was, perhaps, to be expected. He was due for a breakout on the sport’s grandest stage — not the kind of supposition you would expect of a two-time Most Valuable Player awardee in his sixth title series appearance in eight years. And, under the circumstances, it was fitting that his star was brightest precisely when just about everyone else didn’t exactly live up to billing. Defensive anchor Draymond Green was once again a bust, and splash brother Klay Thompson still didn’t have the legs to provide more than mere support alongside the likes of Andrew Wiggins, Jordan Poole, and, yes, Kevon Looney. 

True, the Warriors claimed Game Four on the strength of their stout defense in the crunch, during which they outscored the Celtics 17 to three. Then again, they would not have been able to generate as much offense against the equally stingy coverage of the competition had Curry not come up with 10 markers and required constant attention in the payoff period. Little wonder, then, that even fellow marquee names following the proceedings could not help but sing his praises on social media.

Indeed, the 43 (on 26 shots), 10, and four Curry put up stands as proof of his best Finals performance ever. He’s not done, though. If the Warriors want to bring home the Larry O’Brien Trophy, he can’t be done. He will welcome the myriad advantages that familiar Chase Center brings, and he needs to use them all in order to carry the rest of the blue and yellow on his shoulders. The Celtics have never lost back-to-back outings yet in the 2022 Playoffs for a reason, not least of which is superior play on the road. There’s one thing they don’t have, however. They don’t have him, and he’s bent on ensuring that it will make all the difference.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Chinese defense minister says country’s nuclear arsenal ‘for self-defense’

PIXABAY

CHINA has made “impressive progress” in developing new nuclear weapons, but will only use them for self-defense, and never use them first, Chinese Defense Minister Wei Fenghe told delegates at the Shangri-La Dialogue on Sunday.

In response to a question about reports last year on construction of more than 100 new nuclear missile silos in China’s east, he said China “has always pursued an appropriate path to developing nuclear capabilities for protection of our country”.

He added nuclear weapons displayed in a 2019 military parade in Beijing — which included upgraded launchers for China’s DF-41 intercontinental ballistic missiles — were operational and deployed.

“China has developed its capabilities for over five decades. It’s fair to say there has been impressive progress,” he said. “China’s … policy is consistent. We use it for self-defense. We will not be the first to use nuclear (weapons).”

He said the ultimate goal of China’s nuclear arsenal was to prevent nuclear war.

“We developed nuclear capabilities to protect the hard work of the Chinese people and protect our people from the scourge of the nuclear warfare,” he said.

The US State Department last year called China’s nuclear buildup concerning and said it appeared Beijing was deviating from decades of nuclear strategy based around minimal deterrence. It called on China to engage with it “on practical measures to reduce the risks of destabilizing arms races.” — Reuters

S. Korea says it will boost defense capacity to counter N. Korean threat

A view from South Korea towards North Korea in the Joint Security Area at Panmunjom. North and South Korean military personnel, as well as a single US soldier, are shown. — WIKIPEDIA

SINGAPORE — South Korean Defense Minister Lee Jong-sup said on Sunday that his country would dramatically enhance its defense capabilities and work closely with the United States and Japan to counter North Korea’s nuclear and missile threat.

Mr. Lee, speaking at an Asian security meeting in Singapore, said the situation on the Korean peninsula posed a global threat and he urged North Korea to immediately end its nuclear weapon and missile programs.

The United States warned this month that North Korea is preparing to conduct a seventh nuclear test, and says it will again push for United Nations sanctions if that happens.

“Our government will strengthen capabilities to better implement the US extended deterrents and will dramatically enhance response capabilities,” Mr. Lee said in a speech at the Shangri-La Dialogue, a top regional security summit.

“Moreover, we seek to strengthen ROK (Republic of Korea), US, Japan trilateral security cooperation to respond to North Korea’s nuclear and missile threats.”

North Korea promoted its key nuclear negotiator to foreign minister, state media said on Saturday, as leader Kim Jong Un vowed to his ruling party that he would use “power for power” to fight threats to the country’s sovereignty.

North Korea has carried out at least 18 rounds of weapons tests this year, underscoring its evolving nuclear and missile arsenals. — Reuters

Spain swelters in country’s hottest pre-summer heatwave for 20 years

PEOPLE are silhouetted against the setting sun at “El Mirador de la Alemana (The viewpoint of the German)” in Malaga, southern Spain, July 24, 2019. — REUTERS

SEVILLE, Spain — Fan-sellers were doing good business in the southern city of Seville on Saturday as Spain sizzled in the hottest pre-summer heatwave for at least 20 years.

Carriage drivers dampened down horses who take tourists around the historic sights of Seville such as the Real Alcazar Palace and Plaza de Espana.

Temperatures reached 40 C degrees in the Guadalquivir valley in Seville and the nearby city of Cordoba on Saturday, the national meteorological office AEMET said.

Temperatures could rise to 42 C degrees in the Guadiana valley in Extremadura and other parts of southern Spain later on Saturday, forecasters said.

On Sunday, the heatwave could intensify as temperatures could soar to 43 C (110 Fahrenheit) degrees in parts of southern Spain.

A cloud of hot air from North Africa has sent temperatures soaring, AEMET forecasters said, and the suffocating heatwave could last in most of Spain until June 15, six days before summer officially starts on June 21.

Forecasters predicted high winds and storms in some parts of Spain. — Reuters

Tunisia military prosecutors investigate journalist for ‘harming public order’

TUNIS — Tunisian military prosecutors said on Saturday they had begun investigating a journalist on suspicion of “harming public order” for saying the president had asked the army to close a powerful labor union’s headquarters, and a witness said the reporter had been arrested.

The journalist, Salah Attia, told Al Jazeera on Saturday that President Kais Saied had asked the army to close the headquarters of the UGTT union and put political leaders under house arrest, but that the army had refused.

“Police in civilian clothes arrested Attia in a cafe in the suburb of Ibn Khaldoun in the capital,” the witness, who was with Attia, told Reuters by phone.

Authorities could not immediately be reached for comment.

Mr. Saied has been facing growing criticism that he seeks to consolidate one-man rule since seizing power last summer in a move his opponents called a coup. He subsequently set aside the 2014 constitution to rule by decree and dismissed the elected parliament.

The president last month called for a national dialogue to prepare a “new constitution for a new republic” and excluded main political parties. Other major players such as the UGTT refused to participate in what it said would be a dialogue with a predetermined outcome.

The leader of the UGTT, which has about 1 million members, said on Thursday it was being “targeted” by authorities after it refused to participate in the talks. — Reuters

Climate change: The missing agenda item

FREEPIK

Amid the noise and clutter of the just concluded election campaign, one urgent national — indeed global — issue went unnoticed: climate change.

Hardly surprising. Talking about climate change in a political rally is like delivering a speech with marbles in your mouth. The subject is complicated. It won’t win you votes.

Politicians prefer to talk about creating jobs, raising incomes, building homes, or providing free medical care. But unless we deal with climate change, those glitzy promises will soon lose their glitter.

The urgency of climate change action was highlighted by the latest report of the Intergovernmental Panel on Climate Change (IPCC), the international body for assessing the science related to climate change.

Released on April 4, the IPCC report warned that the world was running out of time. It said that unless countries acted quickly to cut greenhouse gas emissions, the goal of net zero emissions by 2050 will soon be beyond reach. Global temperatures will rise beyond the target range of 1.5° to 2° centigrade. This will result in severe changes in the climate.

Translation: Think of having more Typhoon Yolandas and Odettes every year. Or, the water level at Angat Dam regularly falling below critical levels. Or, more crops being devastated either by floods or droughts. Or, coral reefs being destroyed and fish stocks depleted. Or, coastal communities being flooded by rising sea levels.

SEA LEVEL RISE
The consequences of climate change can be so calamitous. Take sea level rise.

According to the IPCC, sea-level rise globally is speeding up. It rose from 1.4 millimeters per year in most of the 20th century to 3.6 millimeters per year from 2006 to 2015. It added that the population exposed to a 100-year coastal flood may rise to about 20% if the global sea level rises further.

This is bad news — particularly for the Philippines which has more than 7,640 islands. About 60% of Filipinos live at or near coastal areas. What’s more, the sea level is rising much faster in this country than elsewhere. According to a 2016 study, sea levels in the Philippines are rising at five times the global average due to regional variations in the impact of climate change on the oceans.

The Philippine government has been ringing alarm bells. At the United Nations (UN) meeting on Oceans and the Law of the Sea in June 2021, Director John Francis Herrera of the Department of Foreign Affairs warned that the future survival of the country is “at risk if sea level rise is allowed to go on unabated.”

The question is: What actions are being taken? This comes to mind when you hear about new reclamation projects being planned for in Manila, Cebu City, and Dumaguete. How can such plans fare given the rising sea levels?

What can be done to face such a problem? There are no easy answers. But some of our neighboring countries are already taking action.

In January 2022, Indonesia’s Parliament passed a law to relocate the nation’s capital from Jakarta to a jungled area of Kalimantan on Borneo island. The relocation program will cost $32 billion and will start sometime between 2022 and 2024. A megacity of 10 million people, Jakarta suffers from chronic congestion, air pollution, and floods due to the combined impact of sea level rise and land subsidence.

Can you imagine the Philippine Congress debating a law to transfer the capital from Manila to the elevated plateau of Bukidnon in Mindanao?

Well, what can the Philippines do to deal with climate change and still pursue development? There are many things. Let’s just take a look at two.

SHIFT TO GREEN ENERGY
First, shift from coal to renewable energy. In this way, the Philippines can help in implementing what experts consider a key action item in the climate agenda: cutting down the use of fossil fuels in power generation.

Right now, coal accounts for nearly 60% of the Philippines’ total energy mix. It has 28 operating coal-fired power plants and 22 more approved for construction by the Department of Energy. Coal is preferred because it is cheap. However, among fossil fuels, coal is the dirtiest. It is No. 1 in the global hit list for decommissioning.

At the UN Climate Change Conference in Glasgow, Scotland last year, the Philippines conditionally pledged to phase out coal in the coming decades. Conditionally, because it is asking for financial help to make that transition.

In line with this, the Philippines and Indonesia have signed a deal with the Asian Development Bank (ADB) under which existing coal power plants will be retired and replaced by renewable energy facilities. The ADB’s target is to retire half of Southeast Asia’s coal plants over the next 10 to 15 years to reduce carbon dioxide emissions by 200 million tons a year.

This transition to green energy will not be easy. Many of the country’s existing coal-fired plants are relatively new. This raises resistance to retiring them early. Moreover, the shift to renewables will also require redesigning and re-equipping the power grid to handle the variable power generated by renewable energy facilities like solar and wind.

Can the Philippines make this shift to renewables? The reward for this effort will be a new, efficient and sustainable power industry that will help reduce our climate change woes. The cost of failure: we will be left behind — again.

CLIMATE RESILIENT AGRICULTURE
Another urgent action agenda item is agriculture. To adapt to changing weather patterns, the Philippines must make its farmers not only more productive but also more climate resilient.

It may help that agriculture is sexy for our politicians. Many candidates in the last elections pledged to help the country’s farmers in various ways. Incoming President Ferdinand Marcos, Jr. said that giving agriculture a boost will be one of his top priorities to make the country food-secure and resilient.

For that to happen, farming advocates say the new President will have to reverse what they call the government’s decades-long bias against agriculture. For many years, they say, the government’s agriculture budget has been underfunded.

What complicates the situation is the food crisis that the world faces today. The global food system has been hit hard by COVID-19, the global energy shock, and the war in Ukraine. Price jumps and supply shortages of petroleum products have made fertilizers more scarce and expensive. In many countries, this forced farmers to cut back on fertilizers and feeds, which in turn is reducing their output and raising the cost of crops and livestock.

The Russian invasion of Ukraine has disrupted supplies of vital food items. Russia and Ukraine account for 28% of globally traded wheat, 29% of barley, and 15% of maize. The longer the war lasts, the larger the impact on global food supplies will be.

Meanwhile, bad weather is taking a heavy toll on farm output. China, the world’s largest wheat producer, has warned that its harvest this year will be its worst ever after major floods delayed planting last year. India, the world’s second largest wheat producer, has suspended wheat exports due to a severe drought. Dry weather has also hit other major wheat producing countries in North America, Europe, and Africa.

While supplies of rice and other key crops remain adequate, the overall food situation is volatile. Over 20 food producing countries have imposed restrictions on food exports. More than one-fifth of the world’s fertilizer exports have been constricted. UN officials warn that countries which rely on food imports may suffer shortages and high prices. The most vulnerable face possible famines.

For now, the Philippines has to play a balancing act of trying to keep local food crop and livestock production from falling while maintaining access to vital food imports. In the longer term, the country must invest heavily to make local agriculture not only more productive but also more climate resilient.

How can Philippine agriculture be made more climate resilient? The many ways this can be done have been spelled out in the “Compendium of Climate-Resilient Agriculture Technologies and Approaches in the Philippines” which was published in 2020.

This report provides a long checklist of action items. These range from using stress-tolerant varieties of rice, corn, and other major crops, to crop diversification and the use of agroforestry in rainfed lowlands, to multi-story cropping, livestock integration, and soil conservation in upland farms.

The Compendium also recommends the use of digital technologies such as mobile apps for remote, real-time pest and disease monitoring and reporting; and the deployment of automated weather stations and drone aircraft to provide farmers with real-time weather information.

All this will take time, money, and sustained effort. The cost of inaction will be much more painful. With climate change, development cannot be sustained if it is not climate resilient.

 

Ramon “Mon” Isberto is a former journalist and public affairs officer of PLDT and Smart, and upon retirement, is now associated with Action for Economic Reforms.

Fiscally challenged: Should we worry?

RAWPIXEL.COM-FREEPIK

In a two-part column last year, I listed the 10 Must Do’s for the next administration in its first 365 days in office (https://bit.ly/Bernardo365-01 and https://bit.ly/Bernardo365-02). A collective work with inputs from economists and subject matter experts from the Foundation for Economic Freedom (FEF), the Management Association of the Philippines (MAP), and Makati Business Club (MBC), we cast a wide net, covering health, education, energy security, public-private partnership (PPP) revival, labor policy, ease of doing business, and rule of law.

What was not elaborated in that list is the subject matter of this column: the fiscal/ financial component of the plan, “Develop and signal to financial markets a medium-term fiscal consolidation plan.”

The current economic team led by Finance Secretary Carlos “Sonny” Dominguez is bequeathing to their successors a fairly healthy fiscal position, especially robust if one considers the ravages the pandemic has wrought: required massive spending on one hand, and a decimated revenue base on the other. This led to our public debt-to-GDP to rise from the pre-pandemic 40%, to now in excess of 60% — the pre-pandemic norm before credit watchers flash yellow lights — and a current budget deficit to GDP that ballooned to 7%, twice the normal that is deemed sustainable.

The Philippines is far from being unique in this. Emerging market countries are confronted with the same pandemic history, plus new strong headwinds: potential COVID resurgence, the impact of the Russian invasion of Ukraine on energy and food prices, slowing global economic growth with the possibility of stagflation, the US Fed’s progressive tightening of monetary policy after a decade long expansion, the resulting financial shocks and end of cheap credit this will bring. Not to mention lingering and scarring effects of COVID on micro-, small- and medium-sized enterprises (MSMEs), certain sectors like tourism, labor mismatches, and the damage to education/training.

What potentially differentiates the Philippines is a strong starting position pre-COVID. Thanks to fiscal reforms done over successive administrations, especially the tax reforms done under TRAIN (Tax Reform for Acceleration and Inclusion Law), we have cushions that mitigate the risks. Buffers in the external accounts side, a robust international foreign exchange reserve position which at over twice what the IMF has assessed to be adequate, made credit rating agencies maintain our current investment grade rating, even as many EMCs have been downgraded.

Does this mean we can relax and behave like it’s “business as usual”? No, far from it.

These fearful headwinds will adversely impact us all, especially the poor and more vulnerable. It made the business community, and the larger public, loudly applaud President-elect Ferdinand Marcos, Jr.’s choice of his core economic team — Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno for Finance Secretary, Monetary Board Member Felipe Medalla for BSP Governor, Arsenio Balisacan for National Economic and Development Authority Secretary (NEDA), Alfredo Pascual for Department of Trade and Industry Secretary, and Bangko Sentral ng Pilipinas (BSP) Assistant Governor Amenah Pangandaman for Budget and Management Secretary— highly respected professionals who are knowledgeable, experienced, and who can hit the ground running. I dare say, anyone would be hard pressed to name a better team.

It’s also recognition of these challenges, and a noble intent to help the next team that may have prompted Mr. Dominguez, NEDA’s Karl Kendrick Chua and company to put forward recommendations for a well spelt out fiscal consolidation program for the next administration. (See the link on proposed program at https://bit.ly/FiscalPlan2022)

Among others it advocates some tweaking in the VAT to further plug leakages (like regressive and abused seniors and PWD discounts), deferment in the TRAIN personal income tax reduction, VAT on digital service providers, excise taxes on motorcycle, repeal of immediate expending of input VAT on capital goods.

The reaction of incoming Finance Secretary Diokno to these is also understandable: while appreciating the initiative, they would rather not comment on the specific measures being proposed at this time, especially the more painful and thus contentious ones. (Though they are rightly already trying to walk back some of the more extravagant promises like P20 per kilo rice and oil price re-regulation.)

Doubtless, the Marcos Jr. administration will in due course unveil a fully articulated program for the entire economy, not just on the fiscal front: one that balances the need for spending and investment to nurture the emergent recovery, protect the most vulnerable especially from the food inflation that is already upon us, and lay the foundations for future robust investment led growth, while taking the needed steps to bring down the debt ratios necessary for macro stability and continued access to financing at affordable terms.

An excellent paper co-authored by Philippines Institute for Development Studies’ Drs. Margarita Debuque-Gonzales, Charlotte Justine Diokno-Sicat et al, “The Fiscal Effects of the COVID Pandemic: Assessing Public Debt Sustainability in the Philippines” should help guide them. (https://bit.ly/PIDS_FiscalEffects)

This outstanding contribution covers all the aspects of the fiscal impact of COVID past and prospective, some of the looming risks from macro-financial shocks, and already visible “grey rhinos” like the Mandanas ruling and the snowballing unfunded pension debt of the uniformed personnel. I highly recommend it not just to policy makers in both the executive and legislative departments, but also to private sector analysts, and academics keen to understand debt sustainability dynamics, and what constraints face our collective quest for development.

The key conclusion of Gonzales, Sicat et al.: “Results suggest that the country’s debt position today is less worrisome than it had been during previous debt crises, and that the debt-to-GDP ratio will remain manageable despite peaking above 65% over the next couple of years. Given the need to spend to prevent possible scarring from the pandemic and give the economy time as well as room to recover from the pandemic crisis, it may not be feasible to immediately return to pre-COVID-19 debt ratios, based on fiscal gap computations. This underscores the need for a sound medium- to long-term fiscal consolidation plan to anchor sentiments… This presupposes however the absence of major fiscal policy reversals, especially of hard-won fiscal reforms since the mid-1980s.”

I highlight two key variables in the report that will define future debt sustainability: a.) the rate at which the economy grows, and, b.) the rate at which they can reduce the deficit to GDP. For example, if the aim is to bring it down back to 40% in 10 years, GDP will need to grow at 7% annually plus deficit reduction of two percentage points of GDP per year. Far from being an easy task given the global headwinds described earlier.

Our own Global Source forecast for the medium-term growth is that this will be scaled down to 5-6% (from 6-7% over the last decade pre-pandemic) because total factor productivity had been slowing even before the pandemic, the worrisome scarring effects in education, potential labor mismatches, and end of decade-long cheap capital globally.

A potential game changer that can raise our medium-term growth rate back to 6-7%: if the Marcos Jr. administration is able to build upon the reforms lately passed that opens up the economy to more foreign direct investments (Public Service Act Amendment Law, Retail Trade Law, and Foreign Investment Law). And is able to sustain the 5% infrastructure spending to GDP annually initiated by the current one under the Build, Build, Build program that was interrupted by the pandemic.

This time around, government will need to depend on more private sector investments under PPP (public-private partnerships) due to constrained fiscal space, a subject covered by my esteemed Introspective co-columnist Dr. Raul Fabella (“Rule of Law, Credible Commitment and Investment under President Marcos” (https://bit.ly/Fabella060622) and my earlier columns “PPP: partnerships towards a progressive Philippines” (a two-part column, https://bit.ly/Bernardo_PPP).

In this regard, allow me to end by quoting TINA: “There Is No Alternative.”

 

Romeo L. Bernardo was finance undersecretary from 1990-96. He is a trustee/director of the Foundation for Economic Freedom, Management Association of the Philippines, and FINEX Foundation. He is Philippines principal adviser to Globalsource Partners

globalsourcepartners.com

romeo.lopez.bernardo@gmail.com

Shoppertainment

UPKLYAK-FREEPIK

Technology has disrupted the way brands are built and the way products are sold.

Whereas in the tri-media world (TV, radio, and print), ads spoke “at” you with messages that persuaded you to buy. In the social media world, ads speak “to,” “with,” and “through” you with messages that entertain, engage, and educate. With a full video and sound experience, social media ads connect to consumers at a different level, leading them towards brand discovery, conversion, and purchase.

There are two channels for advertising on social media. The first are online marketplaces like Amazon, Lazada, and Shopee. Although these online marketplaces are effective portals for e-commerce, it has become a crowded marketplace with little opportunities for brand building. The site format and sheer number of products on offer do not allow brands to stand out. The experience in online marketplaces is generally transactional.

The second channel is social media commerce and this is where TikTok, Instagram, Facebook, and Twitter come in. Through short-form videos, advertisers are able to create joyful experiences that draw their brands closer to consumers. Studies show that brands that elicit joy through humor, music, dance, or dialogue have greater chances of making it to shopping carts than traditional ads. Joyful content is the first step towards brand discovery, triggering brand desire, inducing trial usage, and fostering brand loyalty. A recent TikTok survey showed that 67% of users were introduced to new brands and realized new needs and desires they never thought they had before by way of joyful content.

Another way of looking at it is like this — while traditional advertising “push” products at you, social media advertising, through short form videos, draw you in through a “pull effect.”

This is how the word “shoppertainment” was coined. Shoppertainment is the space where entertainment and commercial advertising co-operate.

E-commerce has reached its inflection point in six of ASEAN’s largest economies. Although growth of e-commerce is seen to increase from $970 billion in 2021 to $1.19 trillion in 2025, its growth rates are generally decelerating across the region. E-commerce is mature in most markets. The Philippines, however, bucks the trend. E-commerce is still growing by a whopping 20% per annum, which is the highest in the region. Growth in the Philippines is buoyed by better internet connections and more consumer brands entering the e-commerce space.

In social media commerce, the shopping journey happens at lightning speed. For those unaware, the shopping journey consists of four steps — discovery, engagement, consideration, and conversion. While it could take months to go from brand discovery to conversion in traditional advertising, the same could happen in just a few minutes in the social media universe.

What is even more compelling about social media advertising is that after going through the four-step shopping journey, users are taken to a second adjunct journey consisting of four additional steps. The first is product review. This is when content creators talk about their experiences about the product. The second is audience participation. This is when other creators chime in to agree, disagree, fortify, or debunk the review. The third is amplification. The more a brand or product is reviewed, the greater mileage it gets on the platform. The fourth leads users to conversion all over again. So, in this sense, social media advertising does not end in the first conversion — it goes on and on in an intensifying loop.

All social media channels have an algorithm that feeds you only the videos that are of interest to you. In TikTok, it’s called “For you feeds.” For example, if you are an athletic man, the commercial feeds you get are akin to walking through the sporting goods section of a department store.

There are also ads called “Dynamic Showcase Ads.” These ads promote products that the user browsed through on other platforms before (many refer to these ads as “re-targeting ads”). The idea is to induce a snap sale. Re-targeting ads are powerful tools to make that final push towards closing the sale.

Still on that final push, advertisers can also offer “gift codes” (perks or discounts) as a final incentive to purchase.

Advertisers can also opt for “Spark Ads.” Spark ads are native, organic content (content not produced by the brand but by creators) that endorses a product or brand favorably. Advertisers can put money behind these videos to boost them to the target market.

Finding content creators whose style is in sync with the brand could be a challenge. For this, some social media platforms offer a creator marketplace. Here, brands can negotiate ad production or endorsement deals directly with seasoned creators.

Soon, social media channels will be offering commercial livestreams. Here, apparel brands can air live fashion shows and users can order the goods in real time. The same can be done with utility products and appliances where live demonstrations are beamed to a live audience.

Technology has changed traditional advertising practices in the same way it has changed almost every aspect of our lives. Businesses will do well to include shoppertainment in their marketing mix as it is the trend of the future.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

Independence Day 2022

124th Independence Day celebration at the Aguinaldo shrine in Kaingen, Kawit, Cavite on June 12 — PHILIPPINE STAR/EDD GUMBAN

It had to be clarified in Memorandum 2022-066 dated May 22, 2022 by the Department of Interior and Local Government (DILG) that directed the Independence Day flag-raising to local government units that it was the 124th Independence Day, reckoning from June 12, 1898 when Emilio Aguinaldo declared from his residence balcony in Kawit, Cavite that Pilipinas was free from the colonizer Spain. The DILG Memo is based on “Republic Act No. 4166 (An Act changing the date of Philippine Independence Day from July 4 to June 12 and declaring July 4 as Philippine Republic Day”).

But here we go again, debating and quarreling about when Filipinos really gained their independence. Perhaps the rise and fall of self-doubt are urged as historical events are celebrated (or generally ignored) such as Independence Day, the most significant marker of nationhood. But history is about concluded events more than emotional assumptions about the whys and wherefores that made it happen. Nor can post-facto emotions or changed principles and values justify any revision of what had already happened in history.

What better written history is there than the Official Gazette to review the events leading to the granting of Philippine Independence:

“The Philippine Revolution of 1896 was led by the Katipunan, a secret society led by Andres Bonifacio, which aimed to attain independence for the Philippines. The Katipunan expanded and affiliated with other revolutionary groups in Manila and other provinces in the Philippines. Due to political and other differences among the leaders, divisions arose in the organization. The Magdalo group headed by Emilio Aguinaldo of Cavite soon controlled the revolutionary movement. In the power play, Andres Bonifacio was accused of treason against the combined organization, and was arrested and sentenced to death in Maragondon, Cavite.”

When the Revolution was failing, “Aguinaldo entered into negotiations with the Spanish government. This resulted in an agreement under which Philippine Revolutionaries would go into exile in Hong Kong and surrender their arms in exchange for financial indemnities and pardons” (Official Gazette, “Araw ng Republikang Filipino, 1899”). That was just about the time that Spain was very busy, besieged and embattled by the United States of America, who came in to assist in the war for Cuban independence from Spain. That was the 10-week Spanish-American War for the colonies, fought in both the Caribbean and the Pacific, including the Philippines.

“The war ended with the 1898 Treaty of Paris (signed Oct. 1, 1898), negotiated on terms favorable to the United States. The treaty ceded ownership of Puerto Rico, Guam, and the Philippine islands from Spain to the United States and granted the United States temporary control of Cuba. The cession of the Philippines involved payment of $20 million to Spain by the US to cover infrastructure owned by Spain” (Benjamin R. Beede, The War of 1898 and US Interventions; 2013).

“Aguinaldo had returned to Manila on May 19, 1898 and declared Philippine independence on June 12. When it became clear that the United States had no interest in the liberation of the islands, Aguinaldo’s forces remained apart from US troops. On Jan. 1, 1899 following the meetings of a constitutional convention, Aguinaldo was proclaimed (by a rebel junta) president of the Philippine Republic. Not surprisingly, the United States refused to recognize Aguinaldo’s authority and on Feb. 4, 1899 he declared war on the US forces in the islands. After his capture on March 23, 1901, Aguinaldo agreed to swear allegiance to the United States, and then left public life. His dream of Philippine independence came true on July 4, 1946. He died in Manila in 1964.” (US Library of Congress: The World of 1898: The Spanish-American War: Emilio Aguinaldo y Famy 1869-1964)

“During the American occupation of the Philippines (1898-1946), the Filipinos were governed by the Commonwealth of the Philippines (since Nov. 15, 1935) and earlier by the Government of the Philippine Islands or PI, both under the Americans” (pna.gov.ph, July 4, 2021). Meantime, World War II broke out, and the Japanese Army overran all of the Philippines during the first half of 1942. “On Oct. 14, 1943, Japan symbolically granted independence to the Philippines by establishing a new government headed by its Filipino president, Jose P. Laurel. The government was branded by historians as a ‘Puppet Government’ because of the tight control that the Japanese wielded over its affairs.” (esquiremag.ph, June 7, 2019).

“The United States and Philippine Commonwealth military forces fought together to liberate the Philippines until the Japanese forces were ordered to surrender by Tokyo on Aug. 15, 1945.

“On July 4, 1946, pursuant to the provisions of the Tydings-McDuffie Law or the Philippine Independence Act, the Commonwealth of the Philippines became the Republic of the Philippines — the Third Republic. It was on this date that the United States of America formally recognized the independence of the Philippines and withdrew its sovereignty over the country.

“The independence of the Philippines — and the inauguration of its Third Republic — was marked by Manuel Roxas, third president of the Commonwealth, re-taking his oath, eliminating the pledge of allegiance to the United States of America which was required prior to independence, this time as the first President of the Republic of the Philippines. The Congress of the Commonwealth then became the First Congress of the Republic, and international recognition was finally achieved as governments entered into treaties with the new republic.” (officialgazette.gov.ph).

Yet despite the tight chronology of events that built up to the sure pinpointing of when is the factual date of Philippine Independence, President Diosdado Macapagal issued Proclamation No. 28 in 1962, moving the anniversary date from July 4 to June 12 — the date independence from Spain was proclaimed in Emilio Aguinaldo’s home in Kawit, Cavite. In his proclamation, President Macapagal cited “the establishment of the Philippine Republic by the Revolutionary Government under General Emilio Aguinaldo on June 12, 1898, marked our people’s declaration and exercise of their right to self-determination, liberty and independence” (Ibid.).

The Official Gazette says it for the record, “the move was made in the context of the rejection of the US House of Representatives on the proposed $73 million additional war reparation bill for the Philippines on May 28, 1962. The rejection, according to President Macapagal, caused ‘indignation among the Filipinos’ and a ‘loss of American good will in the Philippines.’ He explained that he deemed it the right time to push the change of the independence date, a political move he was planning even before his ascent to the presidency.”

There is surely no further protest or even the last whimper to review and possibly change Independence Day back to July 4, or to again consider yet another anniversary date. But it is still important that historical facts and events are accurate so that the remembering of a nation of its history is always in the context of the experiences, good or bad, that have shaped its soul and spirit.

It is thanks to President Corazon C. Aquino, president after the 1986 EDSA People Power Revolution, who by Executive Order No. 200 revived the Official Gazette that was stifled in Ferdinand Marcos’ martial law dictatorship 1972 to 1986. The Official Gazette, which is printed by the National Printing Office (NPO), is the public journal and main publication of the government of the Philippines. Its website only uploads what has been published; it is managed by the Presidential Communications Operations Office [PCOO] (based on the attribution found in the footer of the Official Gazette website).

Look it up, it’s there: “A History of the Philippine Political Protest — Official Gazette.” (www.officialgazette.gov.ph)

 

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

ahcylagan@yahoo.com

Filipinos value honesty in the workplace the most — study

UNSPLASH

Honesty is highly valued by Filipino workers according to 78% of respondents in a May 2022 study by Milieu Insight, a Singapore-based market research firm, that surveyed employees in Southeast Asia on the importance of values at work.

This was true across age groups (75% among professionals who are 25–34 years old; 82% for those over the age of 55), and employment levels (77% for both directors and entry-level executives). 

The second and third most important work values, respectively, are taking responsibility (71%), and quality work (70%). 

Most respondents in the Philippines (93%) think the values of the company they work for are important, higher than the average, said Sonia Elicia D., associate director for marketing at Milieu Insight, in an email.  

“People yearn for a sense of humanity and community as part of the workplace experience, and being the ‘good guy’ by strengthening personal values and morals is fundamental to a strong, positive working culture,” she said. “This ensures that employees feel valued and never forced to compromise who they are or what is important to them.” 

Across the four Southeast Asian (SEA) countries represented by the study (Singapore, Thailand, Malaysia, and the Philippines), 71% of respondents indicated that the values of the company they work for matter to them. 

While close to half (49%) say they will not work in a job where the nature of it requires them to go against their values, about two-fifths (41%) also indicated their willingness to do so as long as it’s not illegal. 

“In an ideal world, you wouldn’t be working in a job that clashed with your values — but leaving a job out of principle is a rare luxury,” Ms. D. said. “Authentic expression of values might set someone on a collision path with the culture of a workplace, which is why they have to find a way to bridge the gaps they find between their values and the culture they work in.” 

The Milieu Insight study further found that only 40% of the respondents with a household income less than SG$3,000 answered “yes” to the question “Would you work in a job where the nature of it requires you to go against your values?” 

Meanwhile, 48% of those with a household income of at least SG$9,000 answered “yes” to the same question. 

“This is opposite the notion that people care a lot more about ESG [environmental, social, and corporate governance] goals when their finances can afford it,” she said.  

In terms of workplace camaraderie, meanwhile, 64% in the Philippines said they like most or all of their colleagues (23% strongly agree; 41% somewhat agree). Three quarters (76%) also said that their colleagues help each other out. The regional average for both points, respectively, were 57% and 73%. 

VOLUNTARY RESIGNATION 

Although The Great Resignation — where employees voluntarily resign from their jobs en masse — is more pronounced in countries like the US, the pandemic has compelled a number of white-collar workers in the Asia Pacific to seek a more equitable work-life balance. 

CBRE, a real estate brokerage from Dallas, reported in its 2022 market outlook that lower unemployment in the region has sparked a talent war. 

Workplaces, it added, “will need to be designed in such a way as to attract people and make them want to choose to work there.”  

The disruption caused by the pandemic has put the spotlight on factors beyond financial incentives, noted Mercer in a September 2021 SEA survey.  

“The challenges and sentiments of [Southeast Asians] with regards to work are definitely real. Factors such as intense work hours, burnout, rising stress levels and the lack of satisfaction from work are felt by workers in the region too,” said Ms. D. 

This is why in countries like Singapore, organizations are amping up their employee engagement efforts, flexible working arrangements, and job enrichment and redesign, she added.  

The Milieu Insight survey was conducted May 2022 with 1000 employed respondents each in Singapore, Thailand, Malaysia, and the Philippines. — Patricia B. Mirasol

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