Hey, the bankers are rethinking

August 25, 2021 | 7:38 pm

businesspeople-meeting-plan-analysis-graph-company-finance-strat — OUR-TEAM-FREEPIK

I had tagged several bankers in my critique on whether or not the financial sector was doing enough during these COVID times, and Wick Veloso, current President of the Bankers Association of the Philippines dropped me a one-liner, “you should hear the Bankers’ plea to help — call me for clarity,” which I of course happily obliged. We discussed our mutual experience of the 2008 crisis and he pointed out the IFRS-9 regulation (IFRS stands for International Financial Reporting Standards), created by the International Accounting Standards Board (IASB) as a response to the crisis; the purpose of which was to protect citizens from a repeat of future irresponsibility by tying the banks’ hands from taking on too much risk. In effect, what IFRS-9 does is project risk of default of clients for the next several years (generally, five) into the future, attach a fair value of that to the present and then set provisions aside today to cover those risks. Which all sounds like a reasonable regulation no one would argue with, with no question to its premise, except apparently in the whammy that is COVID.

In COVID times, we are unable to determine what will happen in three days, let alone five years. We are unable to understand whether or not the replication rate of the virus will reach a point wherein the government must necessarily shut a business down, and if so, for how long, and, in the good scenario that the shut-down is a temporary thing, then how long until the revenues recover, and if the revenues do not recover, then how long until a permanent end to the business, and consequently how high of a risk the cash flows will not be able to cover the loans taken precisely to expand a pre-languishing business. If IFRS-9 were to put every business on the spot today, no one business would be able to provide an accurate description of their near-term cashflows, holding everyone as likely to default.

I said, why then can’t anyone lobby to just change these rules for now? Well, Veloso says, these rules are so entrenched in international best practice that no one would want to stick out like a sore thumb to rally against it. And indeed, it wouldn’t look too nice, admittedly, banks wanting to circumvent regulation to yet again get rid of bad debt, something we were all too familiar with during the global financial crisis. And obviously, the central bank, as much as it would want to encourage more lending, would never actively convince banks to undervalue their provisions; it is the central banks onus to make sure the banks keep these conservative.

And if this is the case, then what would any bank in their right mind, with all their sophisticated loan default modelling, have as an option? What then is there to be done when this fiduciary duty does not result in the betterment of society?

Veloso says, let’s classify all clients as current; that is, do not put them in the usual stages of provisional default, stage one, two, three. Instead, just label them as basically “clean” or “unclean” and allow those “clean” to borrow as if they are not in risk of default. Just by mere classification, banks are able to then implement IFRS-9 and yet have the latitude to decide on creditworthiness, apart from merely restructuring loans, to treat clients as non-defaulters. To wit, he says, let’s forgive anyone that needs to be forgiven today, without needing to look at their past records to compare with today, without needing to calculate in sophisticated ways their propensity for default. Because who even has that much of a crystal ball today? Certainly not financial theory and the credit scoring models crafted based on it.

I said, but for how long? You can’t just keep making banks current; and what about going even lower than previously? Lower rates, longer tenors. Isn’t that what we need, what we are clamouring for? A step further, go beyond. Pwede rin ‘yan! Tingnan din natin iyan. (That is also a possibility! Let us look into it.) And before he had to jump into another meeting, I said: But sir, if you base it on the bottom-line, banks are still healthy and relatively okay compared to other sectors; if you look at all the metrics, the margins aren’t squeezed if you don’t lend and you can well survive on other non-interest income, why even compromise the good standing when it doesn’t make business sense, not to mention effort to lend to the quote-unquote “unlendable.” (It sounds like such a microfinance story, perusing credit-worthiness of everyone, except now everyone is up for evaluation, even the billionaire tycoons, imagine that.) And Veloso said, because Danie, we want to help! So, there you go, the rebuttal to my last paragraph in that column where I said Banks are supposed to be pillars of the economy and not places to beg for loans.

And while we wait for such help to arrive, to me it is much more than circumventing rules written during different times for Black Swan events like the one we are in today. To me, it is the idea that during times of crises, there is a scramble for new solutions which leads to a flourishing of new ideas and alternative ways of thinking. Why even stick to financial theory? How do we even integrate physical health into calculations of financial risk, which has always just been measuring the volatility of stock returns over a period of time versus the mean return. That measure of risk has been thrown out the window these past 16 months. It’s the same way we should think of creditworthiness, how to determine whether a person will pay, when the past is no longer a valid reference and no statistics and scoring will make any pragmatic sense? Essentially: you think first of the outcome you want; and then you change the model. We created those tools, now we can edit them.

Daniela “Danie” Luz Laurel is a business journalist and anchor-producer of BusinessWorld Live on One News, formerly Bloomberg TV Philippines. Prior to this, she was a permanent professor of Finance at IÉSEG School of Management in Paris and maintains teaching affiliations at IÉSEG and the Ateneo School of Government. She has also worked as an investment banker in The Netherlands. Ms. Laurel holds a Ph.D. in Management Engineering with concentrations in Finance and Accounting from the Politecnico di Milano in Italy and an MBA from the Universidad Carlos III de Madrid.

Planning for the 2022 elections

August 25, 2021 | 7:38 pm

Voter registration is scheduled to end on Sept. 30. In Makati City, where I reside, registration has been temporarily suspended because of ECQ and MECQ (first and second most stringent levels of quarantine, respectively), and will resume on Sept. 1. That is, if MECQ will not be extended beyond Aug. 31. Or, that the COVID-19 situation will not worsen and send us back to ECQ by next month.

By the first week of October, the Commission on Elections (Comelec) will be accepting certificates of candidacy for the May 9, 2022 elections. For sure, we will not be short of candidates for presidential, vice-presidential, senatorial, congressional and other local positions up for grabs. But, will we have enough voters going to polling centers to constitute a simple majority of qualified voters?

Not that a majority is necessary. Presidential candidates have not won by a majority since 1986, anyway. Plurality of votes were enough to put people in Malacañang in the last 30 years. But, of those qualified to vote by May 2022, how many of them have actually registered? And, of those that would manage to register by the Sept. 30 deadline, how many of them would actually go out and vote on May 9 next year?

COVID-19 has not been kind to us in this regard. Since last year, voter registration was suspended nationwide for almost seven months. The first challenge to ensure meaningful elections in 2022, is how to get more people to register as voters by Sept. 30. The second challenge is how to ensure that registered voters actually vote in May 2022. And, this is without adding to the spread of the COVID-19 virus.

A tall order, if you ask me, considering that COVID-19 and the community transmission of its Delta variant affect not only registrants and voters but also registration and election workers. It is far from Business-As-Usual at Comelec, for sure, as is the case for the rest of the country. And for the large number of people out of work, hungry, or struggling daily, voter registration will not be a priority.

Voter turnout is already expected to be affected by COVID-19, according to Senator Migs Zubiri. In a privilege speech and then a press statement in late July, he said a survey done in June already indicated that if COVID-19 cases would remain high by election day, only 35% of voters would go out and vote; 46% would rather stay home or at work and skip voting; and 19% were undecided about voting.

In Metro Manila and Luzon Island, which are both vote-rich areas, 57% and 50% of survey respondents, respectively, said they would not go out and vote in May 2022 if COVID-19 cases remained high in these areas by then. This will cut voting turnout in these regions by half, which is a significant percentage.

Mind you, the survey was done in June, before the local or community transmission of the Delta variant was confirmed by the Department of Health. Since then, COVID daily case numbers have been hitting all-time highs nationally, and even locally in places like Makati City. And, at this point, there is no telling how things will be by May 2022. Voter turnout will surely take a hit.

Then, there are possible legal if not constitutional questions on the plan of President Rodrigo Duterte to run for vice-president. In this regard, we will have another situation where a sitting president (until June 30, 2022) is also a candidate in the May polls. In 2010, President Arroyo ran for Congress while she was still president. She won and later became Speaker of the House.

President Duterte’s move, however, may be legally questioned in light of the succession rule, which did not necessarily apply in the case of former President Arroyo’s 2010 candidacy for congresswoman. Assuming President Duterte successfully runs for vice-president, and the elected president leaves office for one reason or the other, by law he will succeed as president. To be two-time president is prohibited by law.

To address the COVID-election situation, Senator Zubiri wants Comelec to ensure that COVID-19 protocols would be observed at election sites; to extend the elections by one day to divide the crowd and avoid crowding; and, for the government to speed up vaccinations to reach the 70-million target by the end of 2021. Extending the election by a day, however, requires legislation.

But Comelec is not worried, and was even quoted in a news report as saying that it was “confident of a sizable voter turnout” in May 2022. “This projection is borne out by international experience — most, if not all, elections in other jurisdictions showed a higher-than-average voter turnout — and local experience in the Palawan Plebiscite last March 2021,” Comelec spokesman James Jimenez told media. “In any case, voter turnout is in no way determinative of the validity of electoral exercises.”

Comelec also noted that there were already 60 million voters registered for the 2022 national elections as of June, which is just two million short of its projected 62 million registered voters before the voter registration deadline on Sept. 30. Simply put, at this point, for Comelec, the 2022 elections will happen, and will have more than enough voters to ensure success and credibility.

I am not as confident as Comelec, however, with respect to turnout. I still believe that COVID-19 will be a major factor. In this line, I think all sectors should chime in on how to best approach the situation. We should already be planning for the worst-case scenarios, and should be looking at optimizing the use of technology to ensure the safety of voters. We need initiatives that are backed by data, metrics, science-based empirical research, and technical expertise.

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Sustainable development is also about inequality and human rights

August 25, 2021 | 7:37 pm

skyline-buildings — PHILIPPINE STAR/MICHAEL VARCAS

Our rapidly moving world has developed actionable concepts in response to the problems created by rising consumption, intense economic activity, and, in general, because of the greed of man and the lack of effective action on long-standing problems on the part of those in power.

Some of these concepts include “corporate social responsibility” which is an act of volunteerism of men and women who are willing to assume personal responsibility for helping solve problems of the community.

Another concept that has gained traction among enlightened organizations is “shared prosperity” which is dedicated to the proposition that the least of the community deserve more attention and the opportunity to participate in the program planning process and the fruits of prosperity.

A fairly recent construct is ECG or “economy for the common good” or for everyone. It is a principle that is anchored on the notion that what is shared and enjoyed by everyone is a common good. To put it simplistically, a public park is for the common good and is constructed for everyone to enjoy.

A fairly well known and established concept is “sustainable development.” The accepted and conventional definition of sustainable development is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” In short, we are advocating intragenerational equity.

The concept of sustainable development has, over the years, been interpreted mainly to refer to conservation, preservation, and prudent exploitation of the earth’s resources. Its influence has been so widespread that organizations have formulated programs and established organizations dedicated to the strategic implementation of the concept.

In the course of the study and analysis of the concept over the years, we came across a very interesting and all-encompassing definition of sustainable development.

Olav Kjorven, former official of the United Nations Development Program (UNDP) and who also served as the UNICEF’s director for public partnerships, says:

“Sustainable development is as much about health, education, and jobs as it is about ever widening inclusion and movement away from decisions that erode democratic space and do not address social inequality, intolerance, and violence. Sustainable development is about change that transforms impoverished persons, communities, and countries into informed, educated, healthy, and productive societies. It is about wealth creation that generates equality and opportunity. It is about consumption and production patterns that respect planetary boundaries; it is about increasing tolerance and respect for human rights.”

Kjorven’s definition is, as one can see, both comprehensive and fascinating. He draws attention to the intimate links among violence, sustainability, and how intolerance and lack of respect for human rights could have a negative impact on sustainability. It is easy to realize how difficult it would be to attain sustainability in the midst of war and conflict: less funds will go to new farming technologies, addressing climate change for example when precious resources are used instead for deadly and destructive armaments.

The late president of South Africa, the icon of non-violent change, Nelson Mandela, echoes the views of Kjorven especially on the imperative of defeating poverty as a way of protecting human rights, “…. Overcoming poverty is not a gesture of charity, it is an act of justice. It is the protection of a fundamental human right, the right to dignity and a decent life.”

In the Philippine context and in most emerging markets like India, Brazil, Indonesia, and Thailand, the COVID pandemic has, after 17 months, deeply affected the global effort to satisfy the right to dignity and a decent life of communities and societies.

In a paper entitled “Poverty and Human Rights,” Amnesty International (AI) points out that “all over the world, people living in poverty are frequently denied the full range of human rights.”

The paper, published around 2009, still remains relevant today for the basic issues behind a health emergency and pandemic are similar. Both impact the economy, livelihood, food security, and other urgent national concerns. It is in the gravity and rapid spread of COVID, its complex mutating nature, despite or because of the vaccines, and number of fatalities where one finds the noticeable difference between the two pandemics.

The one thing both pandemics have in common is that they further exacerbate the worldwide poverty and hunger problems. Both serve to create further inequalities and increase instances of poverty-related human rights abuses.

The evidence of poverty is all over the world. Millions suffer from chronic hunger and a bigger number live in slums which, because they lack basic services, are veritable super spreader centers.

AI and other observers predict that poverty is likely to worsen with the economic slowdown and climate change especially among those who live in high-risk areas. In addition, there must be more vigorous and intelligent campaign against the disinformation campaign directed at vaccines.

AI points out that poverty also has a disproportionate impact on women and girls. The World Bank states that of the 1.3 billion people living in absolute poverty around the world, 70% are women. AI adds that “living in poverty means much more than simply lacking income or resources. It brings a daily existence of deprivation, insecurity, powerlessness and exclusion — in other words, human rights abuses that work in combination to keep people poor. Human rights are the key for people to break out of the poverty trap.”

While noting that this particular insight of AI is consistent with Kjorven’s comprehensive definition of sustainable development, we present our wish list in the hope that its elements can help trigger others to augment this initial list.

In the short run, former Socio-Economic Planning Secretary Felipe Medalla says to “vaccinate and stimulate (the economy).” Over the medium term (one to two years), some strategic moves may be given priority. Promote and practice inclusivity and representation especially from the marginalized. In response to the phenomenon that women and girls are disproportionately impacted by poverty, strengthen the cash transfer system that provides monthly household subsidies. Open up access to health and education opportunities and new agricultural and food production technologies and more cost-effective processing and marketing channels.

Philip Ella Juico’s areas of interest include the protection and promotion of democracy, free markets, sustainable development, social responsibility and sports as a tool for social development. He obtained his doctorate in business at De La Salle University. Dr. Juico served as Secretary of Agrarian Reform during the Corazon C. Aquino administration.

Attaining celebrity status

August 25, 2021 | 7:37 pm

At this time, nobody is likely to question, much less shrug off, all the accolades, gifts, and cash being showered on the medalists in the recent Tokyo Olympics. The conversations around this subject center on the hard work and training getting to the podium and the support (or lack thereof) from the public and private sector. In general, many just want to bask in the reflected glory of these new entrants in the country’s celebrity club.

It has even become an issue on who has the right to offer congratulations, as if the vicarious titillation of victory needs to be earned. Should former red taggers also join the reception line? (Lower your eyebrow please.)

Maybe, it’s the shared gloom of the lockdowns and frustration over the pandemic that made the playing of our national anthem with a compatriot on the podium so uplifting for the country’s spirit. Would the jubilation be as pronounced in more normal times when all are caught up in the busy hustle of life?

It is the unique bestowal of attention on these postponed games, when nothing else but rising numbers of a second wave seemed to earn anybody’s interest, that might have raised the value of unexpected wins. And the cash awards, especially for the early gold winner just three days into the games, seemed to have turned into a contest of generosity among the local moguls.

So, the remaining events and competitors became more closely watched with pressure building not just for more medals, but even a few more golds.

Winning world contests for the country, while not frequent, has occurred often enough. There were beauty contests with the first Miss Universe from the Philippines oddly having the same surname as the first and, so far only, Olympic gold medalist. There were also sports winners of world events in chess, bowling, billiards, and, yes, professional boxing.

The “fuss factor” over the Tokyo medalists seemed unprecedented. Or are we just forgetful of reactions to those other winners? But for sure, any cash awards for previous non-Olympic winners were limited to the ones given by the contest itself. There was no rush to throw money into the pot.

The accompanying narratives for the new medalists have been about poverty. Contests like fencing or equestrian sports would probably not yield such a storyline. But weightlifting and boxing somehow lend themselves to stories of struggle and perseverance in small towns. And after the podium finishes, the rags-to-riches tale is complete.

What happens next to these new celebrities?

The publicly announced haul of cash, free air miles, condo units, and assorted benefits like free insurance are sure to require a new type of coach for the successful athletes. How do they fend off the line of newly discovered relatives and friends wanting a share of the loot? The weight of sudden fame and wealth can be a heavy lift too. Are murmurings of disappointment (and envy) far behind? (She has forgotten her roots.)

What about decisions like celebrity endorsements? Is acceptance of a furnished condo unit for free justification enough to promote the celebrity’s endorsement of the company’s projects? Yes, the sports celebrity, like the movie or TV star, needs a manager to sort this out. She had coaches for diet, training and strength-building, and mental health. Now she needs a business coach to make sure the cash and celebrity value are properly managed.

Celebrity status is not easily attained, even with an efficient PR machinery. Politicians who are “thinking of running for the highest post” understand this. But winning in the recent games quickly bestowed instant fame. Perhaps, the obligatory face mask can give some privacy to the newly famous. But the not-so-socially-distanced entourage that now accompanies the celebrity can be a dead giveaway to the crowd. Can a selfie with the celebrity be far behind? And then the barely whispered comment — she’s so short!

The loneliness of training to compete in a sport, and the anonymity that comes with it, has for the new celebrity been quickly replaced by the frenzy of media interviews, reception at the airport, swarming fans, and a hectic schedule.

Isn’t coping with success anyway a good problem to have? It only requires new training and perseverance in handling demands. The mind shifts from “Yes, I can” to “Let me think about it.”

Tony Samson is Chairman and CEO of TOUCH xda

ar.samson@yahoo.com

China reopens terminal at world’s 3^rd busiest port

August 25, 2021 | 7:01 pm

CRANES AND CONTAINERS are seen at the Yantian port in Shenzhen, following the novel coronavirus disease 2019 (COVID-19) outbreak, Guangdong province, China. Picture taken May 17, 2020. — REUTERS

THE MEISHAN TERMINAL at China’s second-busiest port reopened Wednesday following a two-week shutdown that further snarled already stressed shipping routes in Asia.

The terminal will start the resumption of normal operations Wednesday, a port official said at a press conference in the city of Ningbo. The terminal was about a quarter of the Ningbo-Zhoushan port’s capacity and was shut from Aug. 11 after a worker was found to be infected with coronavirus disease 2019 (COVID-19).

The congestion and delays on global shipping routes due to COVID has only worsened this year as Chinese exports hit new records due to rising global demand. This was the second closure of part of a port in China this year due to a COVID outbreak, after the month-long shutdown of Yantian port from late May.

With demand for vessels and containers rising this year and companies ramping up exports to Europe and the US for the year-end holiday shopping season, even a limited closure of part of a port is costly for both shoppers and shippers. Even though the Meishan terminal was only shut for a few weeks, it will likely take a while for the congestion to ease.

It now costs almost $11,000 for a container to ship goods from Shanghai to Los Angeles, a new record and more than 220% higher than a year ago.

An outbreak at the cargo terminal at Shanghai’s Pudong International Airport is also disrupting air freight shipments. Five workers at the terminal were found to be infected with Covid last week, according to the China Daily, and the entire cargo zone at the airport was shut Friday, the Global Times reported Sunday.

Cargo-handling “capacity has been cut by an estimated 80-90%. We anticipate congestion to continue through the week of Aug. 30, with the hopes we can get back to ‘normal’ by early September,” according to Neel Jones Shah, executive vice president at Flexport Inc., a digital freight forwarder. “To keep goods moving, Flexport has been trucking significant quantities of client cargo from Pudong to Hong Kong.”

A worker who answered the phone at the company running the cargo area said the terminal was still operating although the number of flights had been reduced. He declined to give his name or details of the reduction, and other officials at the company which runs the terminal declined to comment when contacted by phone. — Bloomberg

South Korea’s youth debt binge shows no sign of slowing as rate hike looms

August 25, 2021 | 6:57 pm

CURRENCY DEALERS walk past an electronic board showing the Korea Composite Stock Price Index (KOSPI) at a dealing room of a bank in Seoul, South Korea, March 13, 2020. — REUTERS

SEOUL — When South Korea announced new lending curbs last month, Joe Park, a 34-year-old grocery chain purchasing manager, scrambled to borrow more money before the tighter rules took effect.

After his loan broker said no, he sought alternative financing including much costlier credit card options, knowing such loans would leave him with less money for food and savings.

A debt binge fueled by young Koreans like Mr. Park desperate to invest is one of the trends worrying the country’s central bank, which could deliver its first interest rate rise in three years on Thursday.

“It’s extremely unfair that they are cutting loan limits now. My credit rating is perfect, and I am ready to pay more interest payment if policy rates go up,” said Mr. Park, who claims he has never been behind on his bills since he started working five years ago. “So why cut loans? Am I in a socialist country?”

One particular concern for policymakers is the fact that recent curbs appear to have had little immediate impact on such borrowing.

Bank lending to households for mortgages, stocks and living expenses rose 168.6 trillion won from a year earlier to a record 1,805.9 trillion won ($1.54 trillion) in the June quarter, roughly equivalent to the country’s GDP and the biggest annual increase since the central bank began releasing relevant data in 2003.

Even after the government enforced new caps on bank loans in July, lending to households grew 9.7 trillion won last month alone, bigger than June’s 6.3 trillion won increase before the new rules kicked in.

Many millennials like Mr. Park have resorted to bittoo, Korean slang for borrowing to invest, as the only way to outpace richer babyboomer parents, having seen President Moon Jae-in’s policies to make housing cheaper fail time and again.

Mr. Park has taken out 120 million won ($102,263.43) from his overdraft account to trade stocks, but his frustration at being priced out of one of the world’s hottest real estate markets has turned into desperation.

DESPERATE TIMES
Analysts say the debt surge shows no sign of slowing even after local lending rates began their upward trajectory a few weeks ago and policymakers signalled higher rates.

Risks among young Koreans have been building for some time.

Those under 40 purchased 272,638 apartments in 2020, a near 77% jump from a year earlier, outweighing the 64% and 63% rises seen respectively in those in their 40s and 50s.

Those in their 30s are heavily exposed as the most indebted relative to their income, with total borrowings amounting to about 270% of their annual income, central bank data showed.

Loan brokers say more clients are heading to high-cost lenders, which will eventually worsen household finances and hit private consumption, which accounts for about half of the economy.

“As banks cut loans, those who need money will seek other ways,” said Kong Dong-rak, an economist at Daishin Securities. “Some will go to their parents, and then to high-cost lenders to skirt restrictions, and end up with bigger risks.”

Having failed to cool property speculation after dozens of separate tax and loan restrictions, the government last month pleaded with the public to stop their debt binge.

The Financial Services Commission (FSC) in July further tightened the maximum amount of bank loans individuals can take relative to their incomes to 40%, and vowed to tighten limits further as debt threatened financial stability.

Local banks are noticeably cutting loans.

Nonghyup Bank, popular with the working class and farmers, last week suspended mortgage lending and loans for rent deposits. Woori Bank also said it stopped approving mortgage lending until end-September, while Kakao Bank is among those considering loan curbs, the banks told Reuters.

All that appears to have done is drive borrowers to higher-cost lenders not bound by the same restrictions.

“Many of my clients with top credit rating are going to credit card loans because I had to turn them down,” a loan broker who agreed to be identified only by his surname Lee at Standard Chartered Bank Korea said.

In July, Bank of Korea Governor Lee Ju-yeol said most of the bank’s board agreed it was time to make financial imbalances a priority, and that adjusting policies could help curb housing market bets.

Last week, incoming chief at the FSC Koh Seung-beom pledged to take action and said household debt management was his top priority.

For Mr. Park, there’s an irony that tighter lending standards are making things less affordable.

“I want to borrow more because everything’s gone up, be it rents, stocks but my pay hasn’t. I don’t understand why the government doesn’t get this.” — Reuters

US, China accuse each other of ‘bullying’ nations

August 25, 2021 | 6:56 pm

HANOI — US Vice President Kamala Harris on Wednesday again charged China with bullying its Southeast Asian neighbors, the second time in two days she has attacked Beijing during a regional visit aimed at countering China’s growing influence.

Earlier on Wednesday, Chinese state media accused Ms. Harris of seeking to drive a wedge between China and Southeast Asian nations with comments in Singapore that Beijing used coercion and intimidation to back its unlawful South China Sea claims.

Speaking in Hanoi on Wednesday, Ms. Harris said there was a need to increase pressure on Beijing over its maritime claims. “We need to find ways to pressure, raise the pressure…on Beijing to abide by the United Nations Convention on the Law of the Sea, and to challenge, its bullying and excessive maritime claims,” said Ms. Harris during a meeting with Vietnamese President Nguyen Xuan Phuc.

China, Vietnam, Brunei, Malaysia, the Philippines and Taiwan, lay claim to parts of the South China Sea, which is crossed by vital shipping lanes and contains gas fields and rich fishing grounds.

China has established military outposts on artificial islands in the South China Sea and objects to foreign warships sailing through what it claims is its sovereign waters.

The US Navy regularly conducts “freedom of navigation” operations through the disputed waters, which China objects to, saying they do not help promote peace or stability.

In 2016, the Hague-based Permanent Court of Arbitration ruled against China’s claim, but Beijing has rejected the ruling.

“While pointing a finger at China and accusing it of ‘coercion’ and ‘intimidation,’ Ms. Harris willfully ignored her own hypocrisy in attempting to coerce and intimidate regional countries to join Washington in its scheme to contain China,” the state-run China Daily said in an editorial responding to Harris’s comments in Singapore.

Ms. Harris’s Singapore speech was a baseless attack on China, the editorial said. “It seems that the United States’ only commitment to Southeast Asia is its dedicated efforts to drive a wedge between the Southeast Asian nations and China,” it added.

In Hanoi, Ms. Harris met with Vietnam’s top leaders and offered support in several key areas, including the enhancement of its maritime security and more US Navy ship visits to Vietnam.

The US administration has called rivalry with China “the biggest geopolitical test” of the century and Southeast Asia has seen a series of high-profile visits by top administration officials, including Secretary of Defense Lloyd Austin, who visited Hanoi in late July.

Ms. Harris’s arrival in Hanoi was delayed on Tuesday after the US Embassy in Vietnam said it had detected an “anomalous health incident,” potentially related to the mysterious Havana Syndrome.

During the delay, Vietnam’s Prime Minister Pham Minh Chinh and China’s ambassador to Vietnam held a previously unannounced meeting, during which Mr. Chinh said Vietnam does not take sides in foreign policy. The Chinese ambassador promised a donation of 2 million COVID-19 vaccines during the meeting.

China is Vietnam’s largest trading partner and Vietnam is heavily reliant on materials and equipment from China for its manufacturing activities.

Their ruling Communist Parties maintain close ties, but Vietnam and China have been embroiled in a longstanding dispute over maritime claims in the South China Sea, known as the East Sea in Vietnam.

The tensions have propelled Vietnam into being one of the most vocal opponents of Beijing’s claims in the disputed waterway and Hanoi has received US military hardware, including coastguard cutters.

Ties between Hanoi and Washington have grown closer more than four decades after the Vietnam War ended in 1975, although Washington has said there are limits to the relationship until Hanoi makes progress on human rights.

Analysts say Vietnam wants to upgrade its diplomatic relationship with the United States to a “strategic partnership” but is concerned such a move would anger Beijing. — Reuters

Ravena and Parks set to see action in Japanese B.League

August 25, 2021 | 6:55 pm

Kief-Ray — LOCAL basketball stars Kiefer Ravena and Ray Parks, Jr. are among the Filipino players seeing action in the upcoming season of the Japan B.League. — PBA IMAGES

LOCAL basketball stars Kiefer Ravena and Ray Parks, Jr. are among the Filipino players seeing action in the upcoming season of the Japan B.League.

Mr. Ravena will be suiting up for the Shiga Lakestars as announced by the team in June.

His Japan contract, however, came as a shock to the Philippine Basketball Association (PBA), since he signed a fresh contract with the NLEX Road Warriors last year, and was only resolved recently after all parties involved came to an agreement.

Under the deal, Mr. Ravena’s current PBA contract will be terminated, and he will sign a fresh one when he returns.

Mr. Ravena, though, was only allowed to leave once the Road Warriors are no longer in contention in the about-to-resume Philippine Cup while NLEX was fined an undisclosed amount of money for supposedly violating the Uniform Player’s Contract (UPC), because there is no buyout clause in the deal.

As a warning, too, the PBA said Mr. Ravena will be sanctioned if he fails to return after the agreed-upon one season.

On Wednesday, Mr. Ravena left for Japan to attend to some documents needed for his B.League stint, but is set to return immediately to fulfil his commitment with NLEX and then go back to join the Lakestars in the season beginning in October.

The PBA Philippine Cup is currently on hold because of the recent rise in coronavirus disease 2019 (COVID-19) cases, particularly the Delta variant, but is targeted to resume in the first week of September in Pampanga.

NLEX was sporting a 2-2 record when the tournament was halted early this month.

Mr. Parks, meanwhile, was formally introduced by Division 1 team Nagoya Diamond Dolphins as their Asian player quota signing and will be playing for them in the 2021-22 season.

“We are pleased to announce that we have signed Bobby Ray Parks, Jr. from the Philippines for the B.League 2021-22 season. Ray will be registered as the Asian Player Quotas. His contract will become official as soon as he gets his medical clearance,” the Diamond Dolphins said in a statement.

Mr. Park, son of legendary PBA import Bobby, last played with the TNT Tropang Giga in the PBA Philippine Cup “bubble” last year, where he helped the team make it all the way to the finals.

He averaged 22.4 points, 7.8 rebounds, and 3.1 assists in the tournament.

To the surprise of many, however, he chose not to re-sign with TNT in the offseason.

But after some time of discussion, TNT and the PBA allowed him to sign up in the Japanese league as a free agent, provided he comes back after no more than five years with the Tropang Giga still holding the rights to him.

Messrs. Ravena and Parks are among the players set to play in Japan, joining Thirdy Ravena (San-En NeoPhoenix), Javi Gomez De Liaño (Ibaraki Robots), Juan Gomez De Liaño (Earth Friends Tokyo Z) and Kemark Cariño (Aomori Wat’s). — Michael Angelo S. Murillo

Lady Lakay Jenelyn Olsim takes on ONE atomweight challenge

August 25, 2021 | 6:55 pm

TEAM Lakay female fighter Jenelyn Olsim returns to ONE Championship action on Friday, taking on a new challenge in the atomweight division.

Ms. Olsim, 24, a natural strawweight, has moved down in weight class to throw her hat for a possible trip to ONE’s women’s atomweight world grand prix.

She will take on American-Vietnamese Bi “Killer Bee” Nguyen in “ONE: Battleground III,” airing from the Singapore Indoor Stadium on Friday, Aug. 27, with the winner advancing to a showdown against Grace “Thai Kitten” Cleveland of the United States in a grand prix alternate bout, part of the historic “Empower” event happening next week.

It is a challenge that Ms. Olsim (4-2) expressed readiness for, with her team backing her every step of the way.

“We have been training hard for this, physically, mentally. I believe I am ready and I know she is also ready. It’s going to be a good show,” she said.

Ms. Olsim is coming off a successful ONE main draw debut in March where she defeated Brazilian Maira Mazar by way of submission (guillotine choke).

In her maiden fight, the Filipina fighter showed her all-around arsenal, punishing her opponent early with power strikes before displaying her submission skills to finish off Ms. Mazar.

“After my first fight in ONE Championship, I became more confident in my ground game. I knew the things that I had to do and if I had the chance to lock in a submission, I should never waver and lock it in,” said the ONE Warrior Series standout.

Against Ms. Nguyen (6-6), a tough challenge awaits, Ms. Olsim recognizes. But she is nonetheless confident of getting the job done.

“Bi is a tough fighter. She has that strong heart and I admire her for that. I have seen her fights and undoubtedly, she has that will power that I have to watch out for. But I believe with the training that we’ve had, I will have an answer for that,” she said.

Adding, “Fans can expect a more technical Jenelyn. I don’t want to predict what the finish will be, but either way, I’m going there with all my heart and I’ll do everything just to get the win; whatever it takes.”

ONE: Battleground III is headlined by the featherweight muay thai battle between Thais Sitthichai and Tawanchai.

It will shown over One Sports beginning 8:30 p.m. — Michael Angelo S. Murillo

New MPL Philippines season fires off on Aug. 27

August 25, 2021 | 6:55 pm

THE new season of Mobile Legends: Bang Bang Professional League (MPL) Philippines finally takes off this weekend, promising exciting action, enhanced features and more fan engagement.

In a release, organizers of the popular online competition said the eighth season of MPL Philippines kicks off on Aug. 27, guided by government protocols and in-house measures to ensure the safety of all participants and the successful staging of the event amid the prevailing conditions with the pandemic.

Leading the cast of teams for the new season is defending champion Blacklist International, which is coming back with an almost intact roster, namely: Johnmar “OhMyV33nus” Villaluna, Danerie “Wise” Del Rosario, Kiel “OHEB” Soriano, Mark “ESON” Gerardo, Dexter “DEX STAR” Alaba, Edward “EDWARD” Dapadap, Salic “Hadjizy” Iman (formerly Omega PH) and Kristoffer “BON CHAN” Ricaplaza (team coach).

Also competing are BREN Esports, Smart Omega, Nexplay EVOS, RSG, Onic PH, TNC Pro Team, and Echo (formerly Aura PH).

The league is also beginning a new season where it has adopted a franchise model, similar to that employed in MPL Indonesia.

Included in the model is a more professional and standardized management system and team operation, providing players the much-needed stability they need, involving, among other things, their salary.

It also involves a diversified revenue model where earnings will be shared among franchise teams over the next three years.

“The launch of the franchise model marks a momentous chapter in MPL PH’s journey as a league,” said Matt Jaron, Director of Business Development, MPL Philippines, in a statement. “It will provide players greater sustainability and protection — a goal that we’ve been working and striving towards for ever since the inception of MPL PH. We hope that the shift will encourage more players to participate or compete for MPL PH, and boost growth within the local esports ecosystem.”

Tournament matches take place every weekend — Friday beginning at 6 p.m., and Saturday and Sunday beginning at 4 p.m.

On opening day, playing are Onic and Echo at 6 p.m. followed by TNC and Blacklist at 8 p.m.

The regular season will take place until Oct. 10. After that, the top six teams will proceed to the playoffs, which will be played in best-of-five matches. The grand final will be a best-of-seven.

Organizers said the Mythical Raffle Draw will be coming back for the new season, enabling fans to win exciting prizes every week. Participants stand to win more than 600,000 diamonds per week, marking it up to four million diamonds to be won during the regular season.

Mobile Legends: Bang Bang is developed and published by Shanghai-based Moonton.

MPL-PH Season 8 has Smart Communications as presenting sponsor. — Michael Angelo S. Murillo

Para-swimmer Gary Bejino starts Team Philippines’ Paralympics campaign

August 25, 2021 | 6:54 pm

TEAM Philippines plunges into action in the Paralympic Games in Tokyo on Thursday with para-swimmer Gary Bejino first to compete.

Mr. Bejino, 23, will swim in the 200m individual medley T52 event set in the morning (8:32 a.m. Manila time) for the heats and in the afternoon (4:22 p.m.) for the finals if he manages to qualify.

Had his arm and leg amputated when he was seven years old after being electrocuted, Mr. Bejino is looking to do well in his debut competition and set the tone for the five-athlete contingent in the sporting event for the differently abled.

“I’m a bit nervous because I’m the first to compete for the Philippines but everything is okay and I’m ready to go,” said Mr. Bejino, a back-to-back gold medalist in the ASEAN Para Games (Singapore, 2015 and Malaysia, 2017), in Filipino. Mr. Bejino will also see action in the men’s 50m butterfly S6 event on Sept. 2 and in the men’s 400m freestyle S6 on Sept. 3.

Another Filipino para-swimmer competing in Tokyo is Ernie Gawilan.

Incidentally, Mr. Bejino was to be joined in the Thursday events by para-powerlifter Achelle Guion, who had to stay at home in the country after testing positive for coronavirus disease 2019 (COVID-19) on the day of the Philippine contingent’s departure for Tokyo last Sunday. — Michael Angelo S. Murillo

Real Madrid bids €160M for Mbappé

August 25, 2021 | 6:54 pm

PARIS — Real Madrid have made a €160-million ($188.11-million) bid for Paris St.-Germain’s (PSG) France forward Kylian Mbappé, Spanish and French media reported on Tuesday.

There was no immediate comment from either club.

France’s L’Equipe said PSG’s position remained unchanged, with the Ligue 1 club determined to keep Mbappé until at least the end of his contract in June next year even if he could then leave for nothing.

Spain’s Marca said the move was a first step by Real, who have long had their sights on the 22-year-old World Cup-winner who scored 42 goals in all competitions for PSG last season and has reportedly said he wants to move to Spain.

The AS.com website quoted Real sources as saying however that the fact money was not an issue for wealthy Qatar-owned PSG was an obstacle for Real. Britain’s Sky Sports said the offer was made on Sunday.

Any sale of Mbappé would allow PSG to recoup some of the costs of Lionel Messi’s salary package after they signed the Argentina forward and six times Ballon d’Or winner from Barcelona earlier this month.

PSG ended last season with only one major trophy, the French Cup, after losing the league title by one point to Lille and crashing out in the Champions League semifinals.

Real, now managed by Italian Carlo Ancelotti, were runners-up domestically last season to city rivals Atletico.

Mbappé joined PSG from AS Monaco in 2017, on loan initially and then permanently a year later in a deal valued at €180 million. — Reuters

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