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Red tide warning up in San Pedro Bay, Western Samar   

THE BUREAU of Fisheries and Aquatic Resources (BFAR) issued a red tide warning in San Pedro Bay, Western Samar and advised consumers to avoid eating shellfish harvested from the area.    

BFAR said in its 22nd shellfish bulletin that areas still affected by red tide include Milagros, Masbate; Sorsogon Bay, Sorsogon; Dauis and Tagbilaran City, Bohol; Matarinao Bay, Eastern Samar; and Dumanquillas Bay, Zamboanga del Sur.   

Other parts of the country that have red tide warnings are Murcielagos Bay, Zamboanga del Norte; Murcielagos Bay (Sapang Dalaga and Baliangao), Misamis Occidental; Balite Bay, Davao Oriental; and Lianga Bay, Surigao del Sur.   

All types of shellfish and Acetes sp. or alamang sourced in areas with red tide warnings are unfit for human consumption. However, other marine produce harvested from the same areas can still be eaten with proper handling.   

Red tide occurs due to large concentrations of algae in the water. Human consumption of contaminated shellfish may result in paralytic shellfish poisoning, which affects the nervous system.   

Typical symptoms of paralytic shellfish poisoning are headaches, dizziness, and nausea. Severe cases may cause muscular paralysis and respiratory problems. — Revin Mikhael D. Ochave   

How high is a knee-deep flood? 

THE METROPOLITAN Manila Development Authority issued a “flood gauge” Sunday, assigning numerical equivalents to terms commonly used by Filipinos to describe the level of flooding such as hanggang tuhod (knee-high) or abot dibdib (chest level). The table also serves as a guide for motorists whether an area is passable or not to certain types of vehicles. The MMDA posts flood alerts in the capital region on its social media pages.  

Back on the grey list

BW FILE PHOTO

I am pleased to share with readers a June 29 note to subscribers of GlobalSource Partners (globalsourcepartners.com), a New York-based network of independent emerging market analysts. Christine Tang and I are their Philippine advisers.

At the end of its plenary on June 25, the Paris-based Financial Action Task Force (FATF) announced that it is adding the Philippines to its list of jurisdictions under increased monitoring, widely referred to as the “grey list.” The latest list contains 22 countries and includes only two other Southeast Asian nations, Cambodia and Myanmar.

Inclusion in the grey list does not carry sanctions but publicizes remaining deficiencies in the country’s efforts to combat money laundering and terrorist financing and its commitment to resolve these within agreed timeframes. Satisfactory progress in addressing the deficiencies will lead to removal from the FATF grey list while non-compliance risks landing the country in the dreaded “black list” or high-risk jurisdictions subject to countermeasures. Based on the assessment of Bangko Sentral ng Pilipinas Governor Benjamin Diokno, chairman of the Anti-Money Laundering Council (AMLC), the Philippines can expect delisting not earlier than January 2023, a good 18 months away.

The Philippines was on the FATF black list for almost five years, from 2000 to 2005, and was removed only after the Anti-Money Laundering Act (AMLA) — passed in 2001, the Act criminalized money laundering and created the AMLC — took effect. It landed on the grey list in 2010 and was removed in 2013 after various measures were taken to strengthen its anti-money laundering and countering the financing of terrorism (AML/CFT) regime, including legislation amending the CFT regime. It has since avoided the FATF’s increased scrutiny (even after the Bangladesh bank heist in 2016) through incremental improvements in its AML/CFT regime, including the coverage of casinos under the AMLA Law.

This time around, the grey listing happened after the country passed the controversial Anti-Terrorism Act last year and a stronger AMLA early this year. The former applied tougher financial sanctions on terrorism financing while the latter expanded the powers of AMLC and the law’s coverage to offshore gaming operators and real estate brokers and included tax crimes among predicate money laundering offenses. Based on the FATF summary of the Philippine action plan, remaining deficiencies are mostly implementation/operational issues, i.e., for authorities to demonstrate the various laws’ effectiveness.

The Philippine action plan to strengthen the AML/CFT regime follows:

1. demonstrating that effective risk-based supervision of designated non-financial businesses and professions (DNFBPs) is occurring;

2. demonstrating that supervisors are using AML/CFT controls to mitigate risks associated with casino junkets;

3. implementing the new registration requirements for money or value transfer services (MVTS) and applying sanctions to unregistered and illegal remittance operators;

4. enhancing and streamlining local enforcement agencies (LEA) access to beneficial ownership (BO) information and taking steps to ensure that BO information is accurate and up-to-date;

5. demonstrating an increase in the use of financial intelligence and an increase in ML investigations and prosecutions in line with risk;

6. demonstrating an increase in the identification, investigation and prosecution of terrorism financing (TF) cases;

7. demonstrating that appropriate measures are taken with respect to the non-profit organization (NPO) sector (including unregistered NPOs) without disrupting legitimate NPO activity; and,

8. enhancing the effectiveness of the targeted financial sanctions framework for both TF and proliferation financing (PF).

Source: http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/increased-monitoring-june-2021.html#Philippines

However, one remaining item that requires legislation is the proposed amendment to the bank secrecy law, reportedly the most restrictive in the world. Despite the backing of 26 business groups, the measure has yet to be certified as urgent by the President and appears to be languishing in both houses of Congress. In its latest Philippine Financial System Stability Assessment (FSSA), the IMF warned that the current arrangement, which limits direct access to information protected by deposit secrecy only to the AMLC, could weaken the AML/CFT regime’s effectiveness. It recommended giving direct and full access to financial sector regulators.

OUR VIEW
We agree with the Governor that it will take years, likely longer than he is expecting, for the country to be delisted, especially given the upcoming election season. Knowledgeable people we consulted think that it is unlikely the Philippines will be removed as long as: a.) the secrecy of bank deposit law is not relaxed; and, b.) the AMLC is unable to show that it can effectively investigate and act on reports of suspicious transactions submitted to it.

So far, financial markets seemed to have taken the grey listing in stride. However, given recent IMF findings that grey listing significantly affects capital flows, financial sector players are worried that an extended stay on the list would over time adversely affect remittances, starting with higher fees, and foreign investments. This would be a pity considering current efforts to liberalize foreign investment rules in order to attract foreign capital to aid the economy’s post-pandemic recovery.

 

Romeo L. Bernardo was Finance Undersecretary during the Cory Aquino and Fidel Ramos administrations. He serves as a Trustee/Director in the Foundation for Economic Freedom, The Management Association of the Philippines and The Finex Foundation.

romeo.lopez.bernardo@gmail.com

Implementing CREATE

JCOMP-FREEPIK

The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law is now ready to be implemented.

On June 21, Department of Trade and Industry (DTI) Secretary Ramon Lopez and Department of Finance (DoF) Secretary Carlos Dominguez III signed the implementing rules and regulations (IRR) detailing CREATE’s fiscal incentive provisions. The framework for the Strategic Investment Priority Plan (SIPP) drafted by the DTI’s Board of Investments has also been approved.

The IRR was crafted after lengthy public consultations with private sector stakeholders who raised concerns on how current incentives would be affected, the scope of enhanced deductions, and the incentive application process.

Transitioning to a new corporate income tax rate and fiscal incentive system is a complicated undertaking, which is why it is crucial that the IRR is clear and comprehensive.

We believe that the signed IRR is consistent with the law’s most essential principles and features. It ensures that the general provisions in the law will have a clear and airtight interpretation, reducing the likelihood of arbitrariness.

The most significant achievement of CREATE is making fiscal incentives performance-based, time-bound, targeted, and trans parent. CREATE uses rigorous economic criteria for rewarding incentives and strengthens governance through the Fiscal Incentives Review Board (FIRB).

After decades of struggle for fiscal incentive reform, CREATE finally gets rid of our outdated, redundant, arbitrary incentive system. Our incentive system was costing us billions in forgone revenues by rewarding incentives (some in perpetuity) to investors who would have invested even without these tax perks.

Despite the strength of the reform, there are also some weaknesses, compromises, and dangerous provisions present in the law.

The accommodation of corporate interests was snuck in at the very last minute during an unexpected assembly of the bicameral conference committee. A provision was inserted exempting local oil refineries from paying taxes on imported crude oil, clearly to grant incentives to the only existing local refinery, which is owned by Petron. These provisions lead to forgone revenues in an attempt to save an industry that is not competitive.

Provisions were inserted exempting legislative franchises from the jurisdiction of the FIRB, and the President to suspend or cancel incentives, possibly to avoid conflict between CREATE and the generous incentives Congress granted to the San Miguel Aerocity franchise in November of 2020. CREATE aims to make the granting of incentives transparent, fair, and justifiable, requires firms to meet performance targets in order to continue receiving incentives, and mandates the FIRB to conduct periodic performance reviews of said firms. The inserted provisions go against these key principles and may lead to abuse.

Unfortunately, despite calls on the President to veto the provisions unfairly favoring legislative franchises and the Petron refinery, these provisions remained in the final version of CREATE.

Additionally, the Bureau of Internal Revenue’s (BIR) Revenue Regulation 5-2021 misinterprets a provision in CREATE and effectively hikes taxes on private schools from 10% to 25%. The BIR was arbitrary in prohibiting for-profit proprietary schools from corporate tax benefits given to similarly situated parties. We urge the BIR and DoF to immediately repeal this unfair tax hike on private schools, which are already burdened by decreased enrollment as students have shifted to state universities and colleges as a consequence of free college education. The pandemic has also burdened private schools.

Some quarters have questioned the reduction of corporate income taxes at a time that government needs revenues for its pandemic spending. Although we believe that corporate tax relief is a tool for stimulus, the immediate reduction of corporate tax rates from 30% to 25% has limited stimulus effects, especially without safeguards on job preservation. We thus view the corporate income tax reduction as a compromise to get the political support of the business community and politicians for the successful passage of fiscal incentive rationalization.

The weaknesses in the law can be corrected, and addressing these weaknesses will be a continuing advocacy for Action for Economic Reforms. However, these weaknesses and compromises should not lead us to reject the great significance of the reform of the fiscal incentive system, a reform that took decades to happen.

Proper implementation of CREATE entails putting in place strong systems to prevent abuse and ensure transparency, which we believe are present in the IRR. We believe that the DoF and DTI have the ability to maximize CREATE’s gains and ensure that it creates jobs, enhances tax efficiency, encourages innovation, and promotes investments during our worst economic recession.

 

Pia Rodrigo is the strategic communications officer of Action for Economic Reforms.

The Department of Finance: Looking beyond 2022

“At the start of this pandemic, I warned that the battle could be long. Considering this, it was important to maintain fiscal responsibility. We must be ready for the long haul and keep our powder dry for a protracted battle.”

Finance Secretary Carlos G. Dominguez III thus started his keynote address at the Financial Executives Institute of the Philippines (Finex) general membership meeting on July 21, 2021. The conference theme was: “The DoF: Looking beyond 2022.”

“(But) unlike in a war where productive assets such as infrastructure and human capital are destroyed, the pandemic and the economic crisis it caused leave our economic resources intact. Our macroeconomic fundamentals remained solid,” he assured Filipinos via the Finex forum.

The long battle with this virus and the restrictions on movement to contain it have forced many economies to contract, Secretary Dominguez said. For 2020, our total revenues dropped by 9% to P2.856 trillion compared to P3.137 trillion in 2019. In the first five months of 2021, collections were 13% higher than the same period last year, reflecting the onset of recovery. Lower revenue collections and a higher public health bill translate into budget deficits, and we had to borrow more to cover the budget gap. “It is a necessity. This is the way the world works,” he said.

Dominguez admitted to “a temporary but controlled expansion of our deficit to-GDP ratio to 7.6% and debt-to-GDP ratio to 54.6% in 2020… these levels keep us well within the prescribed bounds of fiscal viability.” Yes, the Bureau of the Treasury said in February that “the deficit was more than double or 107% more than the P660.2-billion shortfall in 2019. The wider fiscal gap, however, was lower by 24.45% than the revised full-year program of P1.815 trillion” (Rappler.com, Feb. 26, 2021).

Questions from the floor showed worries about the “humongous” debt and alluded to the interest rates on those — a bugging concern for after 2022 and the repayment years. Dominguez gave an off-the-cuff answer that “of the $1.7 billion debt, $1.3 billion was from the Asian Development Bank (ADB), the World Bank (WB) and other international credit agencies, and the rest from our own (sourcing).” Another questioned about the drop in credit ratings.

Dominguez presented a chart that showed that credit agencies actually affirmed our high ratings, so that it was not difficult to engage in emergency financing with concessional rates. Dominguez rhetorically asked Fitch (the only credit agency that revised the outlook for the Philippines to negative) — “Have we slipped down the curve, or has the curve been forced down?”

“Although the negative impact of the pandemic on the Philippine economy has been significant, this will only be temporary. This outcome is mainly attributable to the fact that our economy is heavily consumption-driven. When the pandemic struck, consumer spending dropped. Many enterprises in the retail, hospitality, and tourism sectors were badly hit,” Dominguez said.

“We have the fiscal means to support not just our COVID-19 response, but also our long-term economic investments,” Dominguez assured all.

The Vaccination Program has a budget of P88.6 billion, enough to procure at least 148 million doses to inoculate 70 million adults or 100% of our adult population this year. He said the delay is because of the tight global vaccine supply. Plans for 2022 onwards include the inoculation of children and booster shots for those already vaccinated.

The Finance Department takes prides in its tax reform programs: the Financial Institutions Strategic Transfer (FIST) Act approved and implemented to help banks unload non-performing loans and assets to strengthen their lending capacity; and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act to help businesses keep afloat by leaving more cash resources for firms to sustain employment or use for investments, and to position them to be more regionally competitive and attractive to foreign capital infusion.

“We get nothing from a closed-minded attitude towards foreign investments. With the continued globalization of supply chains, we either liberalize at a quicker pace or risk getting left behind. Our economy should no longer labor under the weight of dead economic orthodoxies. We must open up to the most mutually beneficial arrangements we can get from the rest of the world,” Dominguez stressed. He urges Congress to pass the amendments to the Foreign Investments Act, the Public Service Act, and the Retail Trade Liberalization Act.

At the Finex forum’s Q&A section, the common perception was verbalized that the massive reform programs that sacrificed government revenues benefitted the big businesses more than the smaller enterprises, and the strong and profitable ones more than the weak and struggling (many do not now even have taxable income after losses). Dominguez countered that 90% to 98% of businesses are small and medium enterprises that enjoyed a tax cut from 30% to 25% versus the tax cut of the big corporations from 30% to 20%. CREATE provides more than P1 trillion ($20.5 billion) worth of tax relief over the next 10 years. It has given P160 billion in direct subsidies, Dominguez said.

Will there be new stimulus packages coming before the end of the present administration (June 2022), someone asked? “Only what is necessary, affordable, and reasonably sustainable,” Dominguez replied. It will be recalled that the Finance Department opposed the House-proposed P401-billion economic stimulus fund, Bayanihan III, in April. “The government has already provided $5.5 billion in unconditional grants to about 22 million people and lowered business taxes by around $2.6 billion per year,” he said. Dominguez had said efforts to provide substantial support to the economy amid the pandemic should not come at the expense of the government’s long-term debt sustainability (mb.com.ph, April 15, 2021).

The Finance Department instead exalts the Build, Build, Build infrastructure modernization program that “has played the lead role in the recovery.” Programmed infrastructure spending will remain above 5% of our GDP until the end of the President’s term. Such economic investments have the highest multiplier effect. The modernization of our public infrastructure will not only serve to offset weakness in private investment this year but will also lay down the foundation for higher growth in the coming period, Dominguez said.

“Before we end our term, the Duterte administration will make sure that we help the next President and the next generations address fiscal and economic risks,” Dominguez promised. In the countdown of his remaining “344 days to June 30, 2022,” he has laid out his fiscal consolidation program as a starting point for the next Department of Finance, with a “playbook” as a suggestion for the next steps to proceed.

Dominguez hopes for the last-minute passage of the Real Property Valuation and Assessment Reform Act and the Passive Income and Financial Intermediaries Taxation Act, as completion of the Finance Department’s fiscal reform program, to be fully implemented by the next administration. Also pending is the Military and Uniformed Personnel Pension reform that will keep the system fundable, manageable, and fiscally sustainable for the long term.

Note that the government will need P848.39 billion annually for the next 20 years to pay for the pension, according to the Government Service Insurance System (GSIS). The non-contributory military pension has long exceeded its actuarial projections with several salary adjustments given across the ranks, the latest by President Rodrigo Duterte, who promised early in his term to “double the soldiers’ pay,” including all up to the generals. The annual military pension amount is bigger than the entire 2021 budget of the Department of Education, the agency that is given the biggest chunk of annual budgets.

Have no fear, Secretary Dominguez says. “Our strongest asset continues to be our population. With an average age of 25, we have a very young and skilled workforce. They will sustain demand and create the wealth for the national economy to resume its path of rapid growth. It is because of this demographic sweet spot that we are confident we can bounce back strongly from the impact of the pandemic.”

 

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

ahcylagan@yahoo.com

More cracks at DepEd revealed

WIKIPEDIA.ORG

I wrote two columns in the last two months about the state of Philippine education under the leadership of Education Secretary Leonor Briones.

It will be recalled that three global academic rating organizations — Trends in International Mathematics and Science Study (TIMSS), Program for International Student Assessment (PISA), and the Southeast Asia Primary Learning Metrics (SEA-PLM) all told the same story about the state of Philippine education. The three attest that educational standards in the Philippines are at such a low level that our youth will be unable to compete with their global peers when they join the workforce. In a recent report, the World Bank affirmed that 80% of Filipino students don’t meet the standards for their grade level.

But instead of accepting the findings of the World Bank and instituting reforms as would be expected of a professional, Secretary Briones denied the findings and deflected blame back to the World Bank. She said the multilateral lender insulted the Filipino people. She further claimed that the World Bank failed to follow protocol in that it should have informed her office first. She demanded a public apology.

Despite multiple red flags raised by reputable rating organizations, Secretary Briones continues to be in denial and insists Philippine educational standards are better than what the rating organizations describe. The Secretary is apparently still not taking responsibility for the current state of Philippine education, and neither has she offered a definitive action plan to improve the situation — nothing published that I have encountered, at least.

To add insult to injury, the Secretary announced that the Department of Education (DepEd) will no longer participate in the PISA evaluation of 2022. This is clearly a move to conceal the true state of Philippine educational under her leadership.

With this petty, optics-driven attitude in the DepEd leadership, are we even surprised that our education standards are what they are today? I count the DepEd as negative equity to the Duterte government.

My column on educational standards emboldened numerous public-school teachers from across the country to write me and share what they perceive to be the “cracks” in the DepEd’s system. Although the feedback I am about to enumerate are mere testimonies, it nonetheless provides a rare and unfiltered point of view from teachers in the grass roots.

One of the most alarming flaws of the DepEd, according to several public-school teachers, is its system of Performance Based Bonus (PBB). PBBs are granted on the basis of drop-out rates and the passing rates in the National Achievement Tests (NAT). The prospect of receiving bonuses for high passing rates compels teachers to pass students even if they are undeserving. Worse, should a teacher fail a student for poor performance, he/she would be questioned by the principal, the DepEd’s District Supervisor, and the Division Superintendent. The specter of being questioned, interrogated, and sanctioned induces teachers to go the safe route and simply give the deficient student a passing grade.

This means that the DepEd’s record of passing scores do not accurately reflect the true aptitudes of the students. Not having accurate (more to the point, having false) data leads to wrong decisions, wrong strategies, and a waste of tax payers’ money.

This allegation was validated by another teacher. “No failing grades… No drop outs” … are the instructions of the higher ups at DepEd. To achieve this, teachers are tacitly made to lower their standards to pass students. While the DepEd records show a 98% passing rate on grade levels, the teacher estimates that the true passing rate is actually well below 50%.

Another example was cited, this time for the NAT. Although the mean percentage score of a class could be 40%, the greater majority would still be given a passing grade of 75%. Subsequently, District Supervisors would report an 85% average score to the DepEd.

And because there are bonuses to be gained for favorable NAT results, tests are leaked to the students by the faculty themselves so as to obtain a higher average score.

Performance Based Bonuses are based on the Individual Performance Commitment and Review Form (IPCRF), which in turn is connected to the Results-based Performance Management System (RPMS).

While it is true that the RPMS is designed to promote high performance among DepEd auditors and teachers, the method by which the final ratings are computed is based on false information, says a teacher. In a desire of District Supervisors and the Division Superintendents to portray their territories as excellent performers (thereby qualifying for a bonus), teachers are made to fabricate documents reflecting exemplary scores of students.

Another teacher agrees that the World Bank is indeed correct when it said that 80% of Filipino students do not meet the standards for their grade level. See, for a student to pass a particular grade level, he/she must achieve mastery of the lessons contained in the Curriculum Guide. However, the reality is that only the top 15% (at best) of students are able to comprehend the lessons and perform the learning activities contained in the Curriculum Guide. The rest are adrift due to the lack of foundational knowledge on the subject.

That said, teachers must constantly review past lessons at the expense of time that should be dedicated to the real lesson. In many cases, English grammar, reading, and writing are no longer taught as teachers must re-teach basic English words.

Other teachers complain that time is becoming increasingly scarce to cover the Curriculum Guide. This is because the DepEd requires too many reports — to a point that it deprives teachers of valuable instructional time with students.

Another teacher brought attention to a DepEd program called School-Based Management. This program rates schools from a scale of 1 to 3 based on the participation of parents (and the community) in the school’s learning curriculums. The much coveted “3 rating” is given if it is ascertained that the parents play a part in curriculum development. The teacher’s role, in this scheme, is to merely assist the parents. This is fundamentally wrong, laments a teacher. It should be the other way around where the teachers recommend improvements to the curriculum with the parents playing the supporting role.

I am fully aware that all these are anecdotal. But if they carry any credence, then it’s easy to understand why the DepEd thinks Filipino students are world class and that global academic rating organizations are all liars.

Still, it is hard to debunk the assessment of three global academic rating organizations and the public-school teachers who have nothing to gain by writing to me. I am inclined to believe them.

With a faulty system, and a culture of denial and finger pointing, the DepEd has consigned a whole generation of Filipino to be intellectually inferior to their global peers. I dread to think what their future will be — and what the country’s future will be.

The DepEd needs enlightened, humble, and professional leadership.

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

Boxer Petecio fights for spot in next round

FILIPINO boxer Nesthy Petecio tries to advance to the semifinals of the women’s featherweight division at the Tokyo Olympic Games on Monday against Lin Yu-Ting of Chinese Taipei. — NESTHY PETECIO FB PAGE

Gymnast Carlos Yulo through to vault final; taekwondo jin Kurt Barbosa exits

AFTER hurdling her first challenge at the Tokyo Olympic Games, Filipino women’s featherweight boxer Nesthy Petecio fights for a spot in the semifinals of her division on Monday at the Kokugikan Arena.

Twenty-nine-year-old Petecio, a gold medalist in the 2019 International Boxing Association (AIBA) Women’s World Boxing Championships, will take on former world champion and top seed in the 54 to 57-kg division Lin Yu-Ting of Chinese Taipei in their quarterfinal bout set for 12:39 p.m. (Philippine time).

Ms. Petecio bucked a slow start in her Round of 16 encounter with Marcelat Sakobi Matshu of Congo on Saturday to advance to the quarterfinals.

The Davao del Sur native picked up her game in the second and third rounds of the fight, turning to her lateral movements to create angles and land power blows to get the better of her opponent for the win.

She won by unanimous decision, 30-27, 30-27, 29-28, 30-27, 30-27.

Out to frustrate Ms. Petecio in her semifinal push is Ms. Lin, the women’s bantamweight champion in the 2018 World Championships in New Delhi, India, who a year later climbed to featherweight and finished third at the 2019 World Championships in Ulan-Ude, Russia, where Ms. Petecio was the champion in the division.

The Taiwanese, however, was the featherweight titlist in the same year in the Asian Championships, where Ms. Petecio only finished ninth.

Meanwhile, Ms. Petecio’s teammate Irish Magno was to begin her Olympic campaign on Sunday in the women’s flyweight division against Christine Ongare of Kenya.

In gymnastics, lone Filipino representative Carlos Yulo advanced to the final of the men’s vault event but unfortunately did not make the cut in his pet event floor exercise in the qualification phase on Saturday at the Ariake Gymnastics Centre.

The Manila native, who spent much of the last three years training in Japan, ended up with an average of 14.712 in the vault to finish sixth, well inside of the top eight needed to advance to the final on Aug. 2 (5:30 p.m., PST).

Mr. Yulo, however, saw his bid in the floor exercise quashed after finishing with a score of 13.566 in the event, good only for 44th place, doomed by errors early in his routine.

He, too, failed to advance in the individual all-around event where only the top 24 earned spots in the final. The 21-year-old finished at 47th.

In other apparatuses, Mr. Yulo finished 69th in the pommel horse, 24th in rings, 55th in parallel bars and 63rd horizontal bar.

After qualification, Mr. Yulo expressed his disappointment over the outcome of his performance but is looking forward to doing better in the vault final.

Incidentally, it was reported that Mr. Yulo suffered a hip injury two weeks before the start of the Tokyo Olympics on July 23.

TAEKWONDO
Meanwhile, taekwondo jin Kurt Barbosa exited earlier than hoped after falling to Korean top seed Jun Jang in the opening round of the -58kg division on Saturday.

He lost, 6-26, relegating him to the repechage later in the day.

Unfortunately for Mr. Barbosa, his hopes of at least salvaging a bronze medal through the repechage were dashed after Mr. Jun suffered an upset loss, 19-25, in the semifinals at the hands of Tunisia’s Mohamed Khalil Jendoubi. Had the Korean made it to the finals, Mr. Barbosa would have seen action still and vie for a podium finish.

Despite falling short in his first-ever Olympics, Mr. Barbosa, 22, was grateful for the opportunity given to him and vowed to come back stronger and compete in future competitions, including the next edition of the quadrennial Olympic Games in Paris.

Also on Monday, 2016 silver medal-winning weightlifter Hidilyn Diaz and debuting skateboarder Margielyn Didal make a go for the gold in their respective sports. — Michael Angelo S. Murillo

2020 Tokyo Olympic Games opening draws 16.7 million US TV viewers, a 33-year low

NAOMI Osaka of Japan holds the Olympic torch after lighting the cauldron at the Tokyo 2020 Olympics opening ceremony, July 23. — REUTERS

NBC’s broadcast of the Tokyo Olympic Games opening ceremony drew 16.7 million viewers, the smallest US television audience for the event in the past 33 years, according to preliminary data from Comcast-owned NBCUniversal on Saturday.

Across all platforms, including NBCOlympics.com and the National Broadcasting Company (NBC) Sports app, 17 million people watched the ceremony, NBCUniversal said in an e-mail.

The streaming audience on those platforms grew 76% from the 2018 PyeongChang opening ceremony and 72% from the 2016 Rio opener, reflecting a change in viewing habits.

Friday’s audience reflects a steep drop, despite difficult comparisons with previous opening ceremonies when viewers had fewer streaming options.

The Tokyo opener TV audience declined 37% from 2016, when 26.5 million people watched the Rio de Janeiro Games opener, and 59% from 2012, when 40.7 million people watched the London ceremony.

It was the lowest audience for the opening ceremony since the 1988 Seoul Games, which attracted 22.7 million TV viewers. It was also lower than the 1992 Barcelona Games, when 21.6 million people tuned in, according to Nielsen data.

The Rio, London, Barcelona and Seoul numbers reflect final ratings data not yet available for the Tokyo Games opener.

As a result of the coronavirus disease 2019 (COVID-19) pandemic, Friday’s scaled-down opening event took place with fewer than 1,000 attendees at the Olympic Stadium under strict social distancing rules.

Major absences included former Japanese Prime Minister Shinzo Abe, who had wooed the games to Tokyo, and top sponsors, as the event faced strong opposition in COVID-fatigued Japan.

With Tokyo 13 hours ahead of the US East Coast, NBC for the first time broadcast the ceremony live in the morning, at 6:55 a.m. ET Friday. NBC’s taped, prime-time broadcast began at 7:30 p.m. ET.

In its prime-time coverage, NBC acknowledged the pandemic and its toll while presenting the Olympics as a positive event.

“Absence makes the heart grow fonder,” said host Savannah Guthrie, co-anchor of NBC News’ Today morning show. “There’s nothing like an opening ceremony to really get you excited for the Olympic Games.”

NBCUniversal has aggressively pushed its digital platforms this year and views the Olympics as a vital driver of subscribers for its Peacock streaming service.

The company plans to air an “unprecedented” 7,000 hours of Olympics coverage across its multiple television networks and Peacock. These include some of the most anticipated events, such as gymnastics and US Men’s basketball, on the streaming platform. It will also stream over 5,500 hours of the Olympics on NBCOlympics.com and its sports app.

Not all athletes were present at the teams’ parade during the opening ceremony, due to rules that require many to fly in just before their competitions and leave shortly after to limit social contact.

The TV ratings drop is part of a trend among live TV events, including awards shows and sports.

February’s Super Bowl broadcast on CBS, a ViacomCBS unit, attracted an average of about 92 million viewers, according to Nielsen data, the lowest since 2006. The April Oscars telecast on Walt Disney Co.’s ABC broadcast network averaged 10.4 million, a record low, Nielsen said. Audiences for the most recent Emmys and Grammys also hit new lows.

NBCUniversal, which paid $7.65 billion to extend its US broadcast rights for the Olympics through 2032, is framing the games as a “healing” event, despite skepticism from many Japanese citizens about the wisdom of holding even a scaled-down Games during a pandemic.

In June, NBCUniversal said it had signed over 120 advertisers for the games, more than any other Olympics broadcast. An NBCUniversal spokesperson said that month, the company was on track to exceed the $1.2 billion in ads sold for the 2016 Rio Olympics, but declined to say whether it would beat the $1.25 billion sold last year before the Tokyo Games were postponed.

Ratings are not an indication of profitability. Despite a drop in overall viewership from the 2012 London Olympics, NBC earned more than $250 million from its Rio Olympics coverage, with ad sales up more than 20% from London.

In June, NBCUniversal Chief Executive Jeff Shell said the Tokyo Games could be the most profitable Olympics in NBC’s history. — Reuters

Japan wins skateboarding’s maiden gold; Tunisian swimmer stuns superpowers

TOKYO — Japan bagged skateboarding’s first ever gold medal and notched a surprise win in the pool on Sunday, in a day of high drama where 18-year-old Tunisian Ahmed Hafnaoui stunned swimming superpowers with victory in the men’s 400m freestyle.

Skateboarder Yuto Horigome, who grew up in the Tokyo ward where the event is being held, took gold at the debut of a sport once seen as a symbol of counterculture. That followed surprise medal joy in the pool for Yui Ohashi in the 400m women’s medley.

The gold haul, which came after judoka Naohisa Takato won the host nation’s first gold on Saturday, offers organizers hope of boosting enthusiasm for the delayed Olympics among the Japanese public, who are laboring under a state of emergency in the capital amid elevated COVID-19 cases.

But the biggest shock of the day came when Tunisia’s Hafnaoui won the swimming event.

“I just can’t believe it. It’s a dream and it became true. It was great. It was my best race ever,” Hafnaoui said after he produced a blistering finish to pip Australia’s Jack McLoughlin, with US swimmer Kieran Smith taking bronze.

The joy in the teenager’s face was in sharp contrast to the misery of Wimbledon champion Ash Barty upon her shock departure in the first round.

Britain’s twice Olympic champion Andy Murray didn’t even get that far. He pulled out of the tournament injured before his opening singles match.

The Australians got their moment in the pool in the last of the morning races when the Dolphins beat their own world record of 3:29.69 in the 4x100m women’s freestyle relay. Chase Kalisz delivered Team USA its first gold in the men’s 400m medley. — Reuters

IOC to back schedule changes due to heat if needed

TOKYO — Intense heat and humidity could force competition schedule changes at the Tokyo Olympics and the International Olympic Committee (IOC) said on Sunday it would back any such plans if needed.

Athletes across several sports have complained that competing in midday heat, where temperatures regularly hit or exceed 33 degrees Celsius (91.4°F), has hampered their performances.

High humidity has added to discomfort, and athletes have failed to find much relief from ice bags and hoses blowing cool air, part of a series of contingency measures brought in by organizers’ to battle the stifling heat.

Novak Djokovic and Daniil Medvedev — the world’s top two men’s tennis players — led calls to organizers on Saturday to move matches to the late afternoon for the rest of the competition to save players from the stifling conditions.

World No. 2 Medvedev suggested moving all matches to the evening.

“Competition schedules have been built where possible to avoid the hottest parts of the day, but that is not possible with every sport,” the IOC’s sports director Kit McConnell said on Sunday.

The ITF said the weather was monitored constantly and should temperatures rise, an advisory group would decide on possible suspension of play. — Reuters

Americans begin pursuit of gold vs France

TOKYO — The United States men’s basketball team will begin their pursuit of a fourth successive Olympic title on Sunday with an intriguing match-up against a French squad led by a man the Americans will know well — Utah Jazz center Rudy Gobert.

Spearheaded by double Olympic champion Kevin Durant, the Americans have endured a bumpy lead-up to Tokyo as they were unexpectedly beaten by Nigeria and Australia.

But they made sure they arrived at the Games in the right frame of mind by beating Argentina and Spain, the 2019 World Cup winners, in their last two exhibition games before flying to Tokyo.

Since 1992, the United States have dominated the Olympics, with the “Dream Team” that included the likes of Michael Jordan and Magic Johnson beginning a run in which the US men captured six of the next seven Olympic titles.

But the 2-2 record in the buildup to Tokyo have raised questions on whether the US can continue their Olympic reign.

France also boasts some National Basketball Association (NBA) pedigree. Along with center Gobert, a three-time league defensive player of the year, the French can also count on Boston Celtics forward Evan Fournier and Nicolas Batum of the Los Angeles Clippers.

Also on Sunday, Iran will face Czech Republic, who will making their Olympic debut in the sport. — Reuters

Fate

Bryson DeChambeau was most certainly disappointed to learn he would not be able to participate in the Tokyo Olympics. He had been looking forward to representing the United States since March, when World Number One Dustin Johnson formally announced his decision to stay home instead of make the cross-Pacific journey. Unfortunately, his last COVID-19 test, a prerequisite prior to making the half-day-plus trip by air, yielded a positive result, automatically disqualifying him from competition. Needless to say, it was the latest in a series of setbacks fate seems to be in abundance of in recent memory.

Indeed, to argue that DeChambeau has had rotten luck throughout the summer would be an understatement. He can’t seem to get out of an unwanted feud with fellow American and major winner Brooks Koepka. He has posted poor showings in golf’s biggest events. He broke up with longtime caddie Tim Tucker — or, to be more precise, the latter broke up with him. Heck, he even saw fit to publicly lambast his driver. It “sucks,” he disclosed. “It’s not a good face for me, and we’re still trying to figure out how to make it good on the mishits. I’m living on the razor’s edge, like I’ve told people for a long time.”

The last example shows just how disjointed DeChambeau had been of late. The other party in the “we” that he mentioned, as fans know, is Cobra PUMA Golf, which had dutifully stuck with him throughout his bulk-up, beef-up phase in an arms race against, well, himself. “It’s just really, really painful when he says something that stupid,” noted Ben Schomin, the equipment manufacturer’s pro tour services manager. “He has never been really happy, ever.” And how could he, when he’s asking for perfection while swinging a 46-inch Radspeed club with five degrees of loft at 200 miles per hour?

DeChambeau has since apologized for his faux pas, and he pledged to extricate himself from his beef with Koepka. Amid the mending of fences, he likewise sought to improve his general standing. Going to the quadrennial Games would have been a good way to do so — until, that is, fate intervened to give him one more unexpected blow. “I am deeply disappointed not to be able to compete in the Olympics,” he said. “Representing my country means the world to me, and it is was a tremendous honor to make this team.”

For now, DeChambeau is keen “on getting healthy.” It’s fair to contend that he means to do so in all his concerns, acknowledged or not. Whether he will succeed is subject to debate. Meanwhile, he would do well to use the time for introspection. And who knows? The break may yet serve him in good stead. He needed one, literally and figuratively.

 

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.

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