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Regional Updates (04/11/21)

Courts in Metro Manila, nearby provinces to remain closed

COURTS in the capital region and neighboring provinces of Bulacan, Cavite, Laguna, and Rizal will remain physically closed until April 18, the Supreme Court ordered on Saturday. “Considering the unabated rise of Covid-19 (coronavirus disease 2019) cases, the requests of the judges and court personnel, and upon the concurrence of the members of the Court en banc, all the courts and judicial offices in the (NCR Plus area) shall remain physically closed until 18 April 2021,” the high court said in a circular. The filing periods and service of pleadings and motions are also extended until the seventh calendar day after the relevant court is physically reopened. Affected courts will continue to function virtually through telephone and e-mail. Judges are also directed to conduct hearings via videoconferencing without the need for prior permission from the Office of the Court Administrator. — Bianca Angelica D. Añago

MinDA to set up economic recovery council to assist Mindanao businesses, workers

THE Mindanao Development Authority (MinDA) will set up a public-private sector council that will facilitate response to specific problems of businesses and workers affected by the coronavirus pandemic. “The purpose is to address issues and problems that may impede our economic recovery,” MinDA Chair Emmanuel F. Piñol said last week during the online Mindanao Economic Recovery Forum. The agency is proposing that private sector representatives lead what will be called Mindanao Economic Recovery Facilitation Council, which will have a 24/7 hotline for concerns. The tasks of the council will include providing expert advice on how to protect jobs during the ongoing economic crisis, identifying both short and long-term steps to address problems, and recommend specific local policy and strategies. “I would like to have this organized right away. The next step is to present the inputs today to the inter-agency group, particularly to agencies that deliver services like DA (Department of Agriculture), DSWD (Department of Social Welfare and Development),” Mr. Piñol said. MinDA will hold another forum involving government agencies. — Maya M. Padillo

DoT to propose adoption of IATA Travel Pass to IATF

IATA
IATA

By Arjay L. Balinbin, Senior Reporter

THE TOURISM department is set to present a proposal to the Inter-Agency Task Force on Emerging Infectious Diseases (IATF) for airlines to adopt a platform developed by the International Air Transport Association (IATA) that will enable passengers to digitally manage their travel documents and share their test and vaccination results.

“We will present it to the IATF next week,” Department of Tourism (DoT) Secretary Bernadette Romulo-Puyat told BusinessWorld in a phone message Friday.

The Air Carriers Association of the Philippines (ACAP) supports the proposal because it will help restart international travel, according to its executive director, Roberto C.O. Lim.

“ACAP supports the IATA industry initiative/tool for a standard and harmonized application to simplify international travel requirements,” Mr. Lim said in a phone message.

What is important is that IATA’s platform keeps data under the passenger’s control, he added.

He said testing and vaccination results issued by accredited and “reliable” medical providers will be uploaded by passengers as part of the platform’s security feature.

“The IATA Pass information is kept confidential because the information in the app is supplied by the medical provider who conducted the test/vaccine. No central repository holds information,” Mr. Lim explained.

For domestic travel, he said the DoT has an app called “Travel Philippines” that can be used to check on the entry requirements of local government units (LGUs).

The Travel Philippines app can be linked to the IATA Pass to create a unified digital travel pass, he noted.

Philippine Airlines Spokesperson Cielo C. Villaluna said the use of the IATA Pass will “most definitely” help restore customer confidence in air travel.

“We welcome the IATA travel pass initiative as it will enable travelers to comply and present travel and health document requirements with ease and convenience throughout the travel experience,” Ms. Villaluna said in a phone message.

“We look forward to working with IATA and industry stakeholders towards the eventual integration of the travel pass on our flights. After all, this concept is based on industry standards and IATA’s proven experience in managing information flows around complex travel requirements,” she added.

Philippines AirAsia said it has an ongoing regional integration for all its operation centers following the IATA Pass model.

“Although nothing is final yet, what’s certain is that AirAsia will fully support all measures that will further enhance safety and rebuild confidence in air travel,” Philippines AirAsia Spokesperson Steve F. Dailisan said in a phone message.

“Aside from having a standard set of requirements from the LGUs, there must always be stringent measures in place that will allow industry stakeholders to validate the authenticity of documents such as COVID-19 test results and vaccination certificates submitted by all our guests. This will enable swift coordination among LGUs, transport regulators, airline companies, molecular laboratories and health authorities,” he explained.

On its website, IATA said its platform also enables passengers to find testing centers and laboratories at their departure or arrival locations that can conduct coronavirus tests in accordance with the type of test required for their trips.

According to global travel technology company Amadeus, 91% of travelers are comfortable with digital health passports.

Amadeus’ recent study also found that the appetite for travel remains high, with 41% of travelers saying they plan to book international travel within six weeks of restrictions being lifted.

DoF pushing for localized lockdowns, unhampered logistics

PHILSTAR

THE GOVERNMENT needs to limit lockdowns to defined high-risk areas only and ensure smooth delivery of goods and services to minimize the impact on the economy, the Department of Finance (DoF) said.

“Like fiscal incentives that should be time-bound and targeted, strict quarantine measures, if and when they are called for, should be localized and time-bound while not unnecessarily hampering the transportation of goods and delivery of services so as to minimize the collateral damage on the economy and, consequently, employment,” the DoF said in an economic bulletin Sunday.

The number of unemployed rose to 4.2 million in February from 3.95 million in January, the Philippine Statistics Authority reported, bringing the jobless rate to 8.8% that month from 8.7% in the month prior.

Underemployment, which measures the number of workers still seeking more work, also rose to 18.2% in February from 16% previously.

Economic managers attributed the high underemployment rate to ongoing quarantine measures, which are reducing incomes.

The strictest lockdown setting was reimposed in Metro Manila, Bulacan, Cavite, Laguna and Rizal, and were due to end on April 11 after daily coronavirus cases hit new records. Malacañang had yet to announce new quarantine measures at deadline time.

On Saturday, the Health department reported 12,674 new infections to bring the total count to 853,209 so far. Deaths overall hit 14,744 after 225 new deaths were recorded that day.

Economic managers have been pushing for localized lockdowns to curb the high infection rate and allow areas with relatively few infections to operate normally.

The DoF said pharmaceutical and other non-medical interventions should be “managed effectively” to contain the outbreak that started more than a year ago, so the government will not be “forced to take the difficult and painful decision of imposing much stricter quarantine measures.”

“The timely passage of CREATE is a welcome development not only in improving the country’s long-term competitiveness but also in providing immediate relief and support for enterprises, the important players in providing employment opportunities to a large portion of the population,” the DoF added.

Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act was signed into law on March 26 and is set to take effect on Monday, April 12.

The law reduces the corporate income tax for small businesses to 20% from 30%, while the rates for all other companies will be lowered gradually until they hit 20% in 2027. It also reforms the tax incentive system to make it more time-bound and performance-based.

The Bureau of Internal Revenue on Friday released the implementing rules and regulations covering the tax provisions under CREATE. — Beatrice M. Laforga

Global renewable generating capacity rises 10% in 2020

GLOBAL RENEWABLE generating capacity grew 10% last year to around 2,799 gigawatts (GW) despite the economic slowdown caused by the pandemic, according to the International Renewable Energy Agency (IRENA).

An IRENA official said in a statement that 2020 is the beginning of the “decade of renewables.”

“Renewables’ rising share of the total is partly attributable to net decommissioning of fossil fuel power generation in Europe, North America and for the first time across Eurasia… The 10.3% rise in installed capacity represents expansion that beats long-term trends of more modest growth year on year,” IRENA said in the statement issued Sunday. In 2019, global renewable generation capacity stood at about 2,538 GW.

According to IRENA data, renewable capacity in the Philippines increased by 0.74% to 6.81 GW last year.

“Despite the difficult period, as we predicted, 2020 marks the start of the decade of renewables,” IRENA Director-General Francesco La Camera was quoted as saying.

“Costs are falling, clean tech markets are growing and never before have the benefits of the energy transition been so clear… Our 1.5 degree outlook shows significant planned energy investments must be redirected to support the transition if we are to achieve 2050 goals,” he added, referring to the Paris Agreement. The international treaty’s goal is to limit the global temperature rise to below 1.5 degrees Celsius.

In its statement, IRENA said hydropower accounted for more than half of the world’s total renewable generation capacity at 1,211 GW last year, but solar and wind are “catching up fast.”

“The two variable sources of renewables dominated capacity expansion in 2020 with 127 GW and 111 GW of new installations for solar and wind respectively,” it said.

IRENA gathered its data from questionnaires, official statistics, industry association reports, other reports and news articles.

Meanwhile, total fossil fuel additions to the global generation capacity fell to 60 GW in 2020 from 64 GW previously. The organization said that this highlighted a “continued downward trend of fossil fuel expansion.”

On its website, IRENA said that it advocated the widespread adoption and sustainable use of all forms of RE in pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity. — Angelica Y. Yang

Marikina to Pasig cable car project endorsed to NEDA

DOTR

THE DEPARTMENT of Transportation (DoTr) said it recently endorsed a project proposal to the National Economic and Development Authority (NEDA) for the construction of a cable car transit system between the Light Rail Transit (LRT) Line 2’s Santolan Station in Marikina City and Barangay Rosario in Pasig City.

“The feasibility study as well as the other required studies by NEDA were completed by the French consultants. The project was endorsed by DoTr to NEDA for evaluation and approval on March 16, 2021,” Transportation Undersecretary for Finance Garry V. de Guzman said in a phone message to BusinessWorld on March 30.

The feasibility study for the Metro Manila urban cable car project was funded by the government of France, according to a copy of the project briefing document provided by Transportation Assistant Secretary Goddes Hope O. Libiran to BusinessWorld on Friday last week.

The selected alignment spans 4.5 kilometers and mostly follows the Marikina River profile, according to the document. It starts from LRT Line-2 Santolan Station and proceeds southward to Ortigas Avenue in Rosario, Pasig.

Four more sites for stations were identified between LRT-2 Santolan Station and Rosario: Quezon City’s Libis and Eastwood and Pasig City’s Santolan and Manggahan.

The proposed technology for the line is a monocable detachable gondola lift with closed cabins seating 10 each.

“Distances between towers can reach up to 250 meters to 300 meters depending on the topography, height of the towers, and spacing of cabins,” the DoTr said.

The project is expected to “play a major role in the development of an efficient public transport system” in Metro Manila.

“It is envisaged as an attractive mass transport option for the riding public but not necessarily substitutes for a railway system, particularly on its ridership capacity,” the DoTr said.

Transportation Secretary Arthur P. Tugade had an online meeting with French Ambassador to the Philippines Michèle Boccoz on March 29. They discussed programs, projects, and initiatives the Philippines and France can jointly explore, his department said in a statement.

“Secretary Tugade… put forth the plan of the department to partner with the French Government for the realization of the Urban Cable Car Project,” the DoTr added.

Asked to comment, transport expert Rene S. Santiago said by telephone: “There is nothing wrong per se with cable cars, but the choice of place is an important consideration as well as how it is going to be operated and maintained.”

“If the government operates and maintains a cable car whether in Boracay, Metro Manila or Baguio without a private (entity), you kiss it goodbye. Let’s call it ‘build and forget…’ because of our institutional weakness. Our government has the reverse Midas touch. Whatever they touch in terms of operations and maintenance becomes garbage in the air,” he said. — Arjay L. Balinbin

IPOPHL developing means to block online pirated content

THE INTELLECTUAL property office has partnered with the Asia Video Industry Association (AVIA) to develop site blocking measures for pirated content.

The Intellectual Property Office of the Philippines (IPOPHL) signed a memorandum of understanding with the association to share information and develop technical knowledge on piracy.

AVIA will provide information on piracy, conduct training on piracy matters, and make recommendations for IPOPHL’s online piracy monitoring and rolling site blocking, IPOPHL said in a statement Sunday.

IPOPHL in turn will review piracy issues and will act on piracy reports and tips from AVIA, an association that promotes the interests of the video industry in the Asia Pacific.

“Site blocking is a responsible means of not allowing access to pirated sites… We have experience now in multiple markets all around the region that site blocking, where it is done properly, can be incredibly effective at reducing the levels of piracy in a market,” AVIA Chief Executive Officer Louis Boswell said.

“And we’re very keen to see this happen in the Philippines.”

IPOPHL received 54 piracy complaints in 2020, more than the 51 reported for all intellectual property violations a year earlier. Around 94% of piracy complaints last year were based on online violations. — Jenina P. Ibañez

Redefining Philippine Taxation: CREATE

First of four parts

A long period of uncertainty was ended after President Rodrigo R. Duterte signed Republic Act No. 11534, known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act on March 26.

The CREATE Act is said to be the first-ever revenue-eroding tax reform package and the largest economic stimulus program in the country’s history, with major amendments to our tax and incentives laws. With the pandemic continuing to negatively impact the business landscape, it is hoped that these changes will support post-pandemic recovery while attracting more foreign investment into the country.

In the first part of this four-part series, we discuss the passage and goals of the CREATE Act and how it reduces Corporate Income Tax (CIT).

IMPROVING THE EFFICIENCY OF THE TAX SYSTEM
Set to take effect on April 11, this legislation is part of the Comprehensive Tax Reform Program rolled out by the Duterte administration in 2017. After the passage of TRAIN Law in December 2017, the House of Representatives passed the Tax Reform for Attracting Better and Higher Quality Opportunities (TRABAHO) bill in September 2018. A year after it was transmitted to the Senate, the Senate renamed its version to the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) bill.

Neither bill had seen the light of day when COVID-19 hit. To combat the pandemic, governments around the world imposed strict lockdown measures that led to the reduction of business operations or outright business closures. Extended lockdowns severely impacted the business community, leading the government to realign its priorities in response to the needs of the economy while simultaneously encouraging investor interest in the Philippines. With this in mind, CREATE was drafted to improve the equity and efficiency of the corporate tax system by lowering the tax rate, widening the tax base, reducing tax distortions and leakages, and developing a more responsive and globally-competitive tax incentives regime that is performance-based, targeted, time-bound, and transparent.

The House of Representatives and the Senate approved and passed different versions of the CREATE bill before deliberations by the Bicameral Conference Committee. On the last day of the 30-day period to act on the enrolled CREATE bill, the President signed it into law but vetoed certain provisions. These include the VAT-exempt threshold on the sale of real properties by real estate developers and the special corporate income tax incentive for domestic enterprises, among others.

REDUCTION IN CORPORATE INCOME TAX
As of 2020, the Philippines imposes the highest CIT rate at 30% in ASEAN, where the regional average is 23%. To address this, the CREATE Act lowers the CIT rate for domestic corporations (including one-person corporations) to 25% of the taxable income beginning July 1, 2020 while that for companies with total assets not exceeding P100 million and taxable income not exceeding P5 million is lowered to 20% of the taxable income. In valuing the P100 million threshold, we should note that the land on which the particular corporation’s office, plant and equipment are situated shall be excluded as the appreciation of its value may remove small businesses from the 20% bracket. This threshold shall be determined on a taxable year basis.

For resident foreign corporations (including branch offices), the CIT rate is lowered from 30% to 25% of the taxable income beginning July 1, 2020 while the interest income from a depository bank under the expanded foreign currency deposit system and gains from sale of shares not traded in the stock exchange received by the resident foreign corporations shall be taxed at 15%.

Regional operating headquarters are subject to 25% CIT beginning Jan. 1, 2022. However, they may apply for incentives under the CREATE Act. The CIT rate for non-resident foreign corporations is lowered from 30% to 25% of the gross income beginning Jan. 1, 2021.

With the lowering of the CIT rate, the non-allowable deduction for interest expense is likewise reduced from 33% to 20% of the interest income subjected to final tax. However, if the interest income tax is adjusted in the future, possibly in the tax reform package 4 or the proposed Passive Income and Financial Intermediary Taxation Act, the interest expense reduction rate may likewise be adjusted.

To compute the CIT due, corporations adopting calendar year ending Dec. 31, 2020 are to multiply the total annual taxable income by the effective rate of 27.5% (under the 25% CIT rate) or 25% (under the 20% CIT rate), whichever is applicable, for domestic corporations, and 27.5% for resident foreign corporations.

For corporations adopting fiscal years, the multiplier shall vary depending on the year ending. One way to compute the CIT due for those using fiscal years is to divide the total annual taxable income by 12 and multiply it by the number of months covered by the new rate. For example, for corporations with fiscal year ending March 31, 2021, the total annual taxable income shall be divided by 12 and the aggregate income from April 1, 2020 to June 30, 2020 is to be taxed at 30%, while the aggregate income from July 1, 2020 to March 31, 2021 will be taxed at 25% or 20%, whichever is applicable.

This was put in place to ensure that taxpayers do not resort to the allocation of income and expenses that will yield a lower tax due.

Since the CIT rate is reduced, a reduction of Expanded or Creditable Withholding Tax (EWT) rate should also follow suit to avoid any tax leakage. This will avoid a situation where the EWT tax due will be much higher compared to the income tax due of certain suppliers and hence, creating tax leakage. As a measure, the CREATE Act directs the Department of Finance (DoF) to revisit or amend EWT rules and regulations, including the tax rates, every 3 years.

An additional benefit in the form of a deduction from gross income is also provided under the CREATE Act wherein businesses are given an additional deduction of 50% of the value of labor training expenses incurred for skills gained by enterprise-based trainees enrolled in public senior high schools, public higher educational institutions, or public technical and vocational institutions covered by an Apprenticeship Agreement, provided they secure proper government certification and the additional 50% labor training expense deduction does not exceed 10% of the direct labor wage.

The CREATE Act also provides additional temporary relief to taxpayers beginning July 1, 2020 to June 30, 2023 by reducing the minimum corporate income tax from 2% to 1%, the CIT rate for proprietary educational institutions and non-stock and non-profit hospitals from 10% to 1%, and percentage tax from 3% to 1%.

The adjustments in CIT rates will not only support big businesses but will ultimately provide relief to micro, small and medium enterprises, which constitute 99.5% of the total business enterprises in the Philippines, employ 62.4% of the total labor force, and account for 35% of gross domestic product and 35.7% of economic value. While this tax reform package will reduce the government’s revenue, the DoF hopes that this will help revitalize businesses and consequently, create more jobs for workers who have been greatly affected by the pandemic.

While known for its skilled labor and professionals and relatively lower operating costs, the Philippines has unfortunately been left behind as investors tend to lean towards the more attractive fiscal system of our ASEAN neighbors. This recent development in our tax laws may be a good pull for foreign investors looking for more opportunities.

In the second part of this four-part series, we will discuss more effected changes: the exemption of foreign-sourced dividends, the repeal of improperly accumulated earnings tax, tax-free exchange, additional provisions to consider and provisions that were vetoed.

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

 

Karen Mae L. Calam And Aiza P. Giltendez are a Tax Senior Manager and Manager, respectively, of SGV & Co.

Ancajas still IBF champ

JERWIN ANCAJAS of the Philippines is still the IBF super flyweight champion after a successful title defense over Mexican Jonathan Javier Rodriguez on Sunday (Manila time) in Connecticut. — ALVIN S. GO

Magsayo keeps unblemished record intact

By Michael Angelo S. Murillo, Senior Reporter

FILIPINO world champion Jerwin “Pretty Boy” Ancajas retained his International Boxing Federation (IBF) super flyweight title in another successful defense on Sunday (Manila time) in Uncasville, Connecticut.

Davao del Norte native Ancajas, back in action after 16 months, defeated Mexican Jonathan Javier Rodriguez by unanimous decision (115-112, 116-111 and 117-110) in their 12-round collision held at the Mohegan Sun Arena.

It was the ninth successful title defense for Mr. Ancajas, who improved to 32 wins after the victory as opposed to two defeats.

Also victorious on Sunday was Mark “Magnifico” Magsayo of the Philippines over American Pablo Cruz by a fourth-round stoppage to keep his unblemished record intact.

Despite the long forced break from action he had because of the ongoing pandemic, Mr. Ancajas was on top of his game, holding his ground against the spirited challenge by Mr. Rodriguez.

The Filipino champion pummeled his Mexican opponent with telling shots throughout the fight, punctuated by a knockdown late in the eighth round.

Mr. Rodriguez tried to recover after being floored, but Mr. Ancajas stayed in control of the fight en route to the hard-earned unanimous decision victory.

“This is the toughest fight for me [so far],” said Mr. Ancajas post-fight as he described his battle with Mr. Rodriguez, which finally took place after being deferred a couple of times previously for varying reasons.

Mr. Ancajas, 29, who has been IBF super flyweight champion since 2016, now hopes his latest victory catapults him to more fights with elite fighters in his division.

With the loss, meanwhile, 25-year-old Rodriguez dropped to 22-2 and saw his winning streak stop at six fights.

MAGSAYO WINS, TOO
Also winning in Connecticut was top Filipino featherweight contender Magsayo.

The Boholano boxer impressed with a fourth-round technical knockout of Houston fighter Cruz in their 10-round undercard fight.

After feeling things out in the opening round, Mr. Magsayo upped the intensity in the succeeding rounds.

He scored a flash knockdown in the second round off a jab and dropped his opponent anew in the third.

Mr. Magsayo continued to put pressure on his opponent in the fourth round, eventually landing a right straight that sent Mr. Cruz to the canvas anew and signaled the end to the fight.

The win stretched his undefeated streak to 22 fights, 15 of which coming by way of knockout. 

It was Mr. Magsayo’s second victory under Manny Pacquiao’s MP Promotions, with whom he signed up with last year.

Japan’s Hideki Matsuyama carries four-shot lead into final round at Masters

FOUR YEARS since he last raised a trophy and in his 10th appearance at the Masters, Japan’s Hideki Matsuyama moved into position for his first major title with a late charge Saturday at Augusta National.

In fact, no native of Japan has ever won a men’s major tournament, with Matsuyama in position to be the first with a four-shot lead at 11-under 205 heading into Sunday’s final round at Augusta, Georgia. His 7-under-par 65 was the best round of the day by three shots.

England’s Justin Rose, the leader after the first two rounds, was in a group of four in second place at 7 under after shooting an even-par 72.

Xander Schauffele (68), Will Zalatoris (71), and Australia’s Marc Leishman (70) also were at 7 under and in position to make a charge if Matsuyama falters.

Another shot back at 6 under and in sixth place was Canada’s Corey Conners (68), who had a hole-in-one at No. 6 in the third round. Alone in seventh at 5 under was 2015 champion Jordan Spieth, who had to scramble for an even-par 72.

A five-time winner on the PGA Tour and a 14-time winner worldwide, Matsuyama has not finished on top since 2017. In the third round of the first major of 2021, though, he hardly looked like somebody who forgot what it takes to win.

“It’s going to be a new experience for me, being a leader going into the final round in a major,” Matsuyama said through an interpreter during the CBS broadcast. “I guess, all I can do is to just relax the best I can tonight, prepare well and just do my best (on Sunday).”

The 29-year-old Matsuyama once was low amateur at the Masters, in 2011, so his familiarity with Augusta’s challenges is rich. His best finish was fifth place in 2015.

After maneuvering through the course’s menacing opening six holes at even par, Matsuyama recorded his first birdie at the par-4 seventh hole with a 5-foot birdie putt. He was at 5 under for the tournament when he made the turn to the back nine.

After returning from the 77-minute weather delay, his back-nine charge started at No. 11 with a birdie. He followed that with another birdie at No. 12 to move to 7 under and into a tie for the lead with Rose. The stakes were raised just a few holes later.

Seconds after Rose moved into sole possession of the lead at 8 under with a 27-foot birdie putt at No. 12, Matsuyama answered with a 6-foot eagle putt at the par-5 15th hole to move to 9 under. Not content with that statement, Matsuyama then made birdies at Nos. 16 and 17 to reach 11 under.

What inspired Matsuyama during the delay?

“I spent the hour just sitting in my car, looking at my cell phone,” he said.

After making statements of his own on the back nine during the first two rounds, Rose did not have enough answers on Saturday. Rose was 6 under on the back nine on Thursday and 3 under Friday, but finished even par over his final nine holes. — Reuters

Rafa Nadal Academy hails Eala’s spirited run in Bellinzona event

ALEX EALA FB PAGE
THE Rafa Nadal Academy hailed the spirited run of its scholar Alex Eala in the recent W60 Bellinzona tournament in Switzerland. — ALEX EALA FB PAGE

FILIPINO Alex Eala’s bid in the W60 Bellinzona tournament stopped in the Round of 16, but for her team at the Rafa Nadal Academy, the spirited run was a testament to the young tennis ace’s continuing improvement and to be celebrated about.

Fifteen-year-old Eala made it all the way to the third round of her first-ever $60,000 tournament in Switzerland before bowing to hometown bet Simona Waltert in three sets (5-7, 6-3, 2-6) last Friday (Manila time).

Before exiting the tournament, Ms. Eala, a Rafa Nadal Academy scholar and long-time Globe ambassador, produced two quality wins.

She beat Margot Yerolymos of France in the first round in three sets while easily handling the more experienced Laura-Ioana Paar of Romania in the second round.

For the Rafa Nadal Academy, the twin wins bode well for their scholar moving forward, especially in her singles rankings in the Women’s Tennis Association (WTA).

“Great work in Switzerland! @alex.eala has achieved two important victories at the ITF tournament in Ballonzona and will climb more than 200 places in the @wta rankings. VAMOS! MABUHAY!” the Academy wrote on its official Facebook page following Ms. Eala’s Bellinzona campaign.

Prior to entering her first W60 tournament, Ms. Eala hit a career-high in the WTA rankings at 715th, a jump of 22 places from her previous spot.

She began the year at no. 1,190, but continued to rise up rapidly in the professional ranks.

Ms. Eala won her first professional singles title at W15 Manacor in Mallorca, Spain in January. She then recorded three consecutive quarterfinal appearances in her next three tournaments.

In Bellinzona, Ms. Eala qualified as a junior exempt being the third-ranked juniors player in the world. — Michael Angelo S. Murillo

Short-handed Lakers deal Nets home loss

NBA.COM/LAKERS

THE Los Angeles (LA) Lakers entered a prime-time matchup missing five rotational players and lost another early in the second half.

Didn’t matter.

The energetic Lakers used ball pressure, sticky defense, and good perimeter shooting to run past the Brooklyn Nets (126-101) on the road last Saturday night. The Lakers corralled one steal and posted four blocks, forcing 19 Brooklyn turnovers while converting those into 25 points.

The Lakers also held the Nets to 43.8% shooting from the field and 101 total points, 18 below their league-leading average of 119 a contest.

In his second game back from a hamstring injury, Kevin Durant led the Nets with 22 points, seven rebounds and five assists in 24 minutes. LaMarcus Aldridge added 12 points.

Point guard Dennis Schröder carried the short-handed Lakers early, scoring all 19 points in the first half. Even an injured tailbone suffered while taking a charge on a baseline drive by Brooklyn’s Blake Griffin could not slow Schröder, who remained in the game.

Los Angeles surprisingly jumped out to an 18-7 lead on the strength of 54.% shooting from the field in the first quarter. The Lakers led by as many as 11 points in the opening quarter.

LA played without five of their rotational players due to injury. LeBron James missed his 11th straight game because of a right, high-ankle sprain. Anthony Davis missed his 25th game in a row due to a right calf strain.

Along with those two, Kyle Kuzma (right calf strain), Marc Gasol (hamstring), and Wesley Matthews (right Achilles soreness) were ruled out before the game on Saturday.

Predictably, the Nets reeled the Lakers in during a second quarter led by Kyrie Irving’s 18 points in the first half. They grabbed a four-point lead with just over three minutes left. However, the Lakers closed out strong and took a 61-58 lead into half time.

With 9:41 left in the third quarter and the Lakers up four points, the game produced some fireworks. Schröder and Irving had words during an inbounds play, which led to a double-technical foul and both getting ejected soon after for jawing at each other and the officials.

Irving had to be escorted off the floor and threw his No. 11 jersey into the stands as he exited to the locker room.

While Schröder had it going early, Andre Drummond took over in the second half, finishing with a double-double of 20 points and 11 rebounds. The Lakers promptly went on a 26-15 run to finish out the quarter with a 15-point lead, and the Nets wilted from there.

Ben McLemore totaled 17 points on 5 of 10 shooting from the 3-point line for the Lakers. Markieff Morris added 14 points, while Kentavious Caldwell-Pope contributed 14 points and five assists.

NEW TIMBERWOLVES OWNERS?
Meanwhile, former MLB star Alex Rodriguez and billionaire Marc Lore appear to be close to owning the Minnesota Timberwolves, finalizing a deal with current owner Glen Taylor, according to reports.

The pair released a statement on Saturday.

“We look forward to entering this phase of the process with Glen Taylor. Our respect for him and the legacy he built lays an amazing foundation for what is to come. We are excited by the prospect of getting to know the Timberwolves organization, the talented team and their incredible fans.”

The letter of intent paves the way for a 30-day exclusive negotiating window. If a deal is finalized, they would first become minority owners, according to The Athletic, and in 2023, would gain full control.

The Athletic reported an agreement was reached on a $1.5-billion price and that the team would remain in Minneapolis — a requirement from Taylor, who has owned the team for almost 30 years. — Reuters

New league Pilipinas VisMin Super Cup successfully rolls out

THE start of new basketball league Pilipinas VisMin Super Cup was successfully held at the weekend in Cebu. (Pilipinas VisMin Super Cup)

OPENING weekend of new regional basketball league Pilipinas VisMin Super Cup was successfully held with the Visayas leg in the municipality of Alcantara in Cebu.

Geared towards renewing the push to spotlight basketball talents in the south, the tournament, which has roast chicken chain Chooks-to-Go as title sponsor, kicked off with four matches held under strict monitoring on Friday and Saturday at the Alcantara Civic Center.

MJAS Zenith-Talisay City Aquastars were big opening-day winners, pounding on the Tubigon Bohol Mariners (104-66) in the first game of the Visayas leg.

Patrick Cabahug was on fire all game long as he led the way for the Aquastars with 22 points on 9-of-16 shooting. The former Adamson Falcon also had two rebounds, an assist, and a block in a game that was decidedly over by halftime after Talisay City blitzed Tubigon Bohol in the first half for a massive 58-32 lead.

Pari Llagas, meanwhile, paced the Mariners with 19 points, six rebounds, four assists, and three blocks.

In the second game last Friday, KCS Computer Specialist-Mandaue topped the Siquijor Mystics (66-46). 

Mandaue led by 20 early, but saw its lead dwindle to as little as five, 42-37, late in the third canto. However, KCS got its act together in the payoff period where it held the Mystics to a mere five points to snatch the win.

Far Eastern University products Gryann Mendoza and Al Francis Tamsi led Mandaue with 17 and 12 points, respectively.

Miguel Castellano was the lone player to score in double-figures for Siquijor with 14 points to go with eight boards and two assists.

On Saturday, the ARQ Builders-Lapu Lapu City Heroes got their VisMin Super Cup campaign off to a good start with a 75-61 victory over the Tabongon Voyagers.

ARQ was up by just eight early in the third canto but turned it on late in that stretch, uncorking 11 unanswered points to build a huge 25-point lead, 63-38, heading to the final period.

The Voyagers could not recover from there.

Big man Dawn Ochea and veteran wingman Reed Juntilla led the way for ARQ with 12 points each, with the former also chipping in seven rebounds and two assists while the latter contributed six assists and three steals.

Jethro Sombero and Peter de Ocampo had nine points each for Tabogon.

In the main game on Saturday, Siquijor bounced back from its opening day loss with a 105-100 win over the Dumaguete Warriors.

Ryan Buenafe, who was held scoreless in their first game loss, stepped up for the Mystics, scoring eight of his total 24 points in the fourth quarter to tow his team to the victory.

The former Ateneo player also had six rebounds and six assists.

Ronald Roy and James Regalado led Dumaguete in scoring with 18 points apiece.

VisMin Super Cup action resumes on April 13.

The tournament, conducted within a Modified General Community Quarantine area, is being held under a “bubble” setup as required by authorities to guard against the spread of the coronavirus.

Only essential personnel are allowed inside the game venue. — Michael Angelo S. Murillo