Time for CEOs to redefine their growth paradigm

June 13, 2021 | 7:18 pm

(First of two parts)

In the current business environment, we keep hearing the term “new normal” being used by business and government leaders to provide context to the sweeping changes that have disrupted the global business ecosystem due to COVID-19. The question is, how can CEOs today realign their businesses to thrive in this “new normal?”

Reimagining and redefining the company’s growth strategy has become a new imperative for CEOs. As discussed in a recent article on ey.com, The CEO Imperative: Rebound to more sustainable growth, CEOs need to accept that a post-COVID growth strategy simply cannot rely on previous assumptions and principles. In order to create long-term value as the global economy recovers, CEOs need to shift their business paradigms to both redefine their strategy as well as focus on new platforms that are anchored on a clear purpose-led vision.

WHAT’S CHANGED?
With the numerous restrictions implemented by governments to help manage the pandemic, businesses’ growth has been severely and negatively impacted. But even as we plan for and work towards a global recovery, companies recognize that the basics of their business have changed. Even more so, companies also understand that their stakeholders — their employees, investors, regulators and especially, their customers, have developed a different perspective on the role of companies. Market forces have also changed, with governments taking more active and interventionist positions in creating policies, stakeholders increasing their scrutiny on sustainability programs — notably on the environment, social and corporate governance, customer behavior changes, more competition to find or develop the right talent to drive post-pandemic recovery, and an increasing need to invest in technology to sustain business continuity.

With these changes, it becomes even more imperative that organizations revisit their purpose in order to meet changing expectations. For some companies who have not yet firmly established their organizational purpose, this may mean a complete reboot.

PURPOSE AS AN ECONOMIC IMPERATIVE
Beyond financials, companies are now seeing that being purpose-led can have significant benefits such as stronger people and customer engagement and fostering a culture of innovation in the organization. In terms of metrics, studies have shown that companies with a focus on ESG can better find ways to lower their cost of capital, as discussed in a 2020 MSCI report, as well as promote long-term engagement.

It is worthwhile to note that establishing a purpose is a continuous and long-term journey for most companies. It goes beyond simply creating a purpose statement; there is also a need to drive fundamental organizational change to lay a solid foundation for purpose-led transformation.

For example, the SGV Purpose to nurture leaders and enable businesses for a better Philippines has been deeply embedded into our culture, programs and long-term strategy focusing on internal people development as well as external programs and activities to support business development, with a long-term vision of participating in and supporting national socio-economic development.

DRIVING PURPOSEFUL, SUSTAINABLE GROWTH
To drive a truly purpose-led strategy, CEOs may wish to consider incorporating these considerations into their programs, with an overarching emphasis on keeping people at the center of every decision.

TRUST AS AN ASSET WITH AN EMPHASIS ON SUSTAINABILITY
While trust has always been critical in the business-customer relationship, the disruptions driven by the pandemic have created fundamental changes in this relationship. With more people being online and expecting faster, near real-time responses to their needs, building and sustaining trust becomes even more important. In a sense, trust has also become a form of intangible currency for many companies.

What is also significant is that many sectors see the COVID crisis as an opportunity for large companies to reinvent themselves, with a shift to purpose-driven metrics on people, customers, communities and the environment. In fact, a number of business leaders believe that the pandemic has increased the expectation on businesses to drive, measure and report on social impact, sustainability and inclusive growth.

At the core of this need to strengthen trust is the need for greater transparency. There is now a stronger need for corporate reporting to include non-financial metrics, especially since doubt in corporate reporting has grown in recent years.

In the Philippines, the Securities and Exchange Commission in 2019 had mandated that companies produce an annual sustainability report to promote wider adherence to the principles of corporate governance. The benefit to companies of this requirement is the ability to disclose to the wider public their non-financial assets — including culture, intellectual and technology assets — and how they are used to create long-term ESG value under a purpose lens and not just a matter of compliance.

In a nutshell, for CEOs to gain the trust of stakeholders, they may wish to integrate more in-depth non-financial or sustainability reporting into their strategy while paying attention to the changing needs of their stakeholders and being transparent in articulating their purpose-led strategy.

In the next part of this article, we will discuss the other areas for CEOs to consider as they explore how they can redefine their companies’ growth paradigms. These include trade, technology, and people.

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 author and do not necessarily represent the views of SGV & Co.

Marie Stephanie C. Tan-Hamed is a Strategy and Transactions Partner of SGV & Co.

Red Alert and EPIRA

June 13, 2021 | 6:55 pm

1 of 2

From May 31 to June 1, thin power reserves resulted in the National Grid Corporation of the Philippines (NGCP) raising yellow and red alerts and hours-long rotational brownouts in some parts of Luzon. Understandably, this episode drew indignation from consumers and sharp criticism from pundits and politicians.

To me, this very much feels like déjà vu. On Jan. 27, 2014, I wrote an article (“The way forward for the power industry,” https://www.bworldonline.com/content.php?section=Opinion&title=The-way-forward-for-the-power-industry&id=82546) on the then price spikes and the hearings and investigations that ensued. Much like in 2014, the initial reaction and resulting discourse centered around short-cut solutions due to an oversimplified understanding of what is a difficult-to-understand industry. Much of the criticism was directed towards the Electric Power Industry Reform Act (EPIRA), which is the law passed in 2001 to reform the electricity industry.

I said then that a fair appraisal of EPIRA could be captured in the common idiom “so far, so good.” Seven years later, I would now submit that EPIRA, “like fine wine, has grown better with age.”

When discussing EPIRA, it is always important to start from the beginning. EPIRA was created to address long-term structural weaknesses in our power system that accumulated over time and resulted in crippling brownouts in the 1990s and a ballooning debt burden for the government. It was likewise meant to introduce competition to bring down power rates, give consumers more choice, and attract long-term private capital.

In 2014, I explained that EPIRA had advanced in the privatization of 80% of government assets. I mentioned that it had progressed, albeit at a slower pace than envisioned, in market formation with the Wholesale Electricity Spot Market (WESM) and Retail Competition and Open Access (RCOA), which has given businesses, and soon individual consumers, the choice of where they source their power and the ability to get better rates.

Since then, EPIRA has recorded more wins. From 2011 to 2020, we have seen a decline in the prices of electricity in most major markets. In this time period, WESM prices have fallen by 43%, Meralco generation rates by 16%, and RCOA (from 2017 only) by 17%.

We have seen the entry of new generation companies (gencos). The sale of assets to the private sector yielded the government P911 billion that reduced the obligations of the Power Sector Assets and Liabilities Management Corp. (PSALM), and, more importantly, unburdened the government from spending to build new plants to keep up with growing demand.

Now, you may wonder, if EPIRA has been mostly a success, why are we still experiencing rotational brownouts? Surely this is not evidence of success. To be clear, EPIRA as a law laid the legal foundation for a sustainable and competitive electricity sector, but like any law, it is only effective if we implement it properly, if market participants play by the rules, and if our regulators enforce the rules effectively.

By most measures, the implementation of EPIRA has been incomplete and slow. A clear example of this is the RCOA Market. It was intended to provide all consumers with the power to choose their power supplier not later than three years after EPIRA enactment, but the implementation started only in 2013. Today, 17 years have elapsed and we have only partially implemented it.

EPIRA’s implementation requires the private sector to carry a greater role in the mission of powering the country. On this front, we have seen a number of shortcomings. First, while we see significant growth in the generation side of the industry (capacity increased from 15 GWs in 2003 to 26 GWs in end-2020), we still experience gaps in power supply. This is primarily because as a fast-growing economy, power demand is expanding at a pace that gencos are hard-pressed to keep up with. A contributing factor is that much of our existing generation fleet is old and thus given to breakdowns.

On the transmission side of the industry, we have seen bottlenecks in the construction of transmission lines. On average, transmission lines are three to four years delayed in their implementation. Without certainty in transmission, generators are unable to build new power plants. We have also seen that the transmission line operator has not fully contracted firm power reserves. Where the system operator’s role is to procure reserves, much like procuring a genset for your home, to call on in a time of power crisis, it has not procured sufficient firm reserves and so is unable to faithfully perform its role as an emergency backstop.

Finally, our regulators play an important role in seeing to it that the rules are properly enforced. On this front, I can only describe our regulator’s approach as schizophrenic, where they have tended to over-regulate the competitive part of the industry and under-regulate the regulated part of the industry.

EPIRA designed the power generation side to be competitive, and allow competition to yield lower prices and higher reliability. There are rules in place, including market power restrictions, to keep any one player from unfairly prejudicing the consumer. Unfortunately, since then, the regulators have churned out regulation after regulation to curb the activities of generators. Each regulation is designed with the consumer in mind, but, as with many regulations and laws, they often carry unintended consequences that distort the behavior and incentives of market participants. When investors do not build new plants or do so slowly because the business environment has been riddled with regulatory uncertainty and risks, end consumers and our entire economy lose.

On the other hand, the regulators have fallen short in its responsibility to enforce the rules over NGCP, which has the monopoly over the transmission lines in the country. NGCP over the past 10 years has been non-compliant with the rules that require it to build transmission line infrastructure to ensure that we have the power when and where we need it, especially during times of power shortage. The non-compliances come in the form of a lack of transmission lines, a lack of redundancies in our network, a lack of power reserves, and not meeting the IPO requirement under the law.

The schizophrenic approach to regulation is also apparent in the approach to regulating the weighted average cost of capital (WACC) allowed different market participants. Where arguably the WACC used by regulators to regulate rates of competitive gencos should be higher than that of a monopoly, reflecting the higher risk environment, it is today the reverse. The monopoly (NGCP) earns a higher return in a market where it has no competitor.

Where do we go from here? If we want to avoid the power shortages that we just experienced, we need to first correct our regulatory approach. We have a strong legal and regulatory framework in EPIRA. Our regulators should focus on enforcing it rather than adding to it. More specifically, our regulators should focus on regulating the regulated business of transmission of power and consider simplifying the rules for gencos to allow the market to work, to de-risk the environment and to attract more long-term private capital.

In order to ensure that we have adequate reserves, the regulators should compel the Systems Operator to contract the full, firm reserve requirement. This can be done within 30 days, as there are genco offers today sitting on the desks at NGCP. This would ensure that we have the spare reserves the next time that the supply of power thins.

Lastly, we need to fast track the implementation of the transmission line network. A three to four-year year lag creates significant uncertainty and an imbalance in the market. Correcting this will de-risk the investment environment and will encourage the entry of more power capacity into the grid.

All in all, EPIRA has come a long way and has saved billions for consumers and taxpayers alike. Let’s focus our efforts on making it work.

The views and opinions in this article are those of the author and do not necessarily reflect the position of these Institutions.

Romeo L. Bernardo was Finance Undersecretary during the Cory Aquino and Fidel Ramos administrations. He is an Independent Director in a major publicly listed conglomerate active in the energy business and 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

The importance of tobacco taxes for post-pandemic recovery

June 13, 2021 | 6:54 pm

In December 2020, Tobacconomics launched the first edition of its “Cigarette Tax Scorecard,” a study assessing cigarette tax policy performance in more than 170 countries between 2012 and 2018. The good news is that the Philippines ranked seventh in total performance, together with Bahrain, Canada, and Saudi Arabia. Among all East Asian countries, the Philippines scored the highest, with an overall score of 3.75 out of five.

The scorecard, which uses data from the World Health Organization, took into account four scoring components: absolute price of cigarettes, changes in cigarette affordability, share of taxes in retail price, and tax structure.

While the study emphasized the huge impact of tax increases on reducing tobacco use among the vulnerable, it concluded that most countries are failing to tax cigarettes effectively. Almost half of the countries in the study scored less than two out of the maximum five points.

The Philippines, however, is cited as one of the five countries with the greatest improvements in cigarette tax policy from 2012 to 2018. In terms of change in cigarette affordability and tax structure, our cigarette tax policy received the highest possible score of five.

Our high overall score can be attributed to our landmark cigarette tax reforms over the past decade, particularly the Sin Tax Law of 2012 and the Tax Reform for Acceleration and Inclusion (TRAIN) Law of 2017, which significantly raised taxes on tobacco products, made cigarettes less affordable, and simplified our excise tax system.

The Sin Tax Law was the most critical of our excise tax reforms, as it overhauled our previously complicated excise tax system. Aside from an immediate increase in excise tax rates and automatic annual cigarette tax increases, it introduced unitary tax rates which simplified tax administration, removed the “price classification freeze” so that brands pay taxes based on their respective current prices rather than 1996 prices, and earmarked incremental excise tax revenues to fund universal health care (UHC) for Filipinos and alternative livelihood programs for tobacco farmers.

While the outcomes of these reforms are laudable, the study acknowledged that the four grading components in the scorecard failed to measure the effectiveness of tax administration, which is critical to minimize tax avoidance and evasion. Thus, for the gains from our past reforms to be sustained, we need to be vigilant in monitoring tax administration and compliance.

A 2020 study by Filomeno Sta. Ana III and Jo-ann Diosana showed that the series of disruptive tax rates imposed in the Philippines since 2012 creates an incentive for cigarette producers to take part in illicit trade. While we have strengthened tax administration, giving us relatively effective control of illicit trade, the government can do more to combat it through putting in place a tracing and tracking system to record the movement of cigarette packs through the supply chain and involving local government units in preventing illicit trade.

Aside from assessing countries’ cigarette tax policies, the study also articulated a crucial point moving forward: given the COVID-19 pandemic and economic crisis, improved tobacco tax policies are a golden opportunity to raise revenues for economic recovery while promoting public health.

Indeed, the Philippines needs to mobilize revenues to recover from the pandemic. Numerous surges, lockdowns and our inability to keep the virus at bay have taken their toll on our economy.

The pandemic has led to large deficit spending, although we urge government to spend more aggressively for health and social protection. But as the pandemic subsides, the deficit has to be rolled back gradually, even as necessary spending for the better normal remains. In this context, new tax revenues are critical, especially for health expenditures. Now, more than ever, we see the urgency of augmenting funding for universal health care, as the UHC Law has yet to be implemented since its passage in 2019. We need more fiscal space to mitigate the consequences of the pandemic and finance health system improvements, and raising tobacco taxes further can provide us that space. Thus, the next administration will find it relevant to again significantly increase tobacco taxes.

Beyond its revenue implications, tobacco taxation is primarily a public health strategy, as it leads to higher cigarette prices, which lower smoking prevalence and prevents the initiation of new smokers. The Department of Science and Technology – Food and Nutrition Research Institute’s 2019 Expanded National Nutrition Survey (ENNS) showed that smoking prevalence among adults over 20 is at 19.9%, a large drop from the 2018 rate of 20.7%, 2013 rate of 25.4% and 2008 rate of 31%. These huge drops in smoking prevalence can be attributed to our tobacco tax reforms in the past decade.

Smoking is linked to increased risk of disease severity in COVID-19 cases, which makes promoting public health and reducing smoking prevalence all the more important at this time. Reducing smoking prevalence will decrease the burden of tobacco-induced diseases on our overstretched health system and allow us to build a better, healthier new normal — one with a health system that has the capacity to handle future surges and pandemics.

Thus, tobacco taxes have three major benefits: they improve health outcomes and increase government revenue in the short term, but in the long term, they could reduce the impact of future COVID-19 surges and crises on our health system.

We hope that health advocates and legislators recognize the need for further increases on tobacco taxes post-pandemic. This is a crucial step we need to take to rebuild and strengthen our healthcare system and recover from this monumental health and economic crisis.

The Tobacconomics Cigarette Tax Scorecard can be accessed here: https://tobacconomics.org/research/cigarette-tax-scorecard/.

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

Just another Independence Day

June 13, 2021 | 6:53 pm

CALOOCAN PERSONNEL conduct maintenance work at Andres Bonifacio National Monument in Caloocan on June 10, a couple of days ahead of the 123rd Anniversary of Philippine Independence. — PHILIPPINE STAR/ MICHAEL VARCAS

June 12, 2021. It was the 123^rd anniversary of the declaration of Philippine independence from Spain by Emilio Aguinaldo at Kawit, Cavite. Why did it feel like it was just another Independence Day? The news preceding the day was hogged by this feisty-looking little woman with her jaw thrust out to challenge the world record for the oldest living female person in the world — 123-year-old Francisca Montes-Susano of the Philippines!

But the COVID-19 pandemic that has gripped the world for the past year and a half has choked enthusiasm for celebrations for Francisca for her Guinness World Record nor for the same-aged Philippine Independence. It is the second consecutive Independence Day spent in the pandemic. COVID has terrorized the whole country as it has intimidated and bullied the world to utmost self-restraint and obedience to the rigid protocols needed to contain it.

Freedoms lost in the COVID dystopia brutally shame the celebration of utopian freedoms in a democratic nation. Reality embarrasses gushy Idealism. The last grand Independence Day civil-military parade of uniformed organizations and public and private entities before the Luneta Grandstand in Manila was held in 2018 to mark the 120^th year of nationhood. Three years ago, way before COVID-19 was even a flu virus variant in that marketplace in Wuhan, China, where the pandemic is believed to have originated from.

It seems it might not be just the COVID then, that has doused the noticeably diminishing exuberance for Independence Day celebrations on June 12 each year. Some old-timers talk among themselves that Independence Day, back when it was celebrated on July 4 (for almost 20 years until 1964) was really a big bash — like Americans celebrate their own July 4^th Independence Day with fireworks to this day. But to jog the clingy memories of these nostalgic seniors: on May 12, 1962, President Diosdado Macapagal issued Presidential Proclamation No. 28, which declared June 12 as Philippine Independence Day, while Republic Act No. 4166 of Aug. 4, 1964 renamed the July 4 holiday as Philippine Republic Day. Then Philippine Flag Day, which was earlier celebrated on June 12 was moved to May 28 with Proclamation No. 374.

Some would still question the realignment of anniversaries to milestone events in Philippine independence. History textbooks (e.g., Agoncillo, Teodoro: A History of the Filipino People, 1990) tell of the sequence of events starting from the Philippine Revolution against the Spanish in 1896 to the granting of Philippine independence by the Americans in 1946. In 1897 the Revolution ended with a truce declared with the Pact of Biak-na-bato; Emilio Aguinaldo and other Filipino revolutionaries were exiled to Hong Kong. In May 1898, the Spanish-American War broke out; the Americans won and took control of the Philippines from Spain. Emilio Aguinaldo et al. were allowed to come back to the Philippines. The losing Spaniards later ceded the Philippine archipelago to the United States in the 1898 Treaty of Paris.

On June 12, 1898, Aguinaldo proclaimed Philippine Independence but failed to win international recognition of this.

In 1902, the United States Congress created the Philippine Assembly, with members to be elected by Filipinos (males only; women did not have the right to vote until after 1937). The 1916 Jones Act (Philippine Autonomy Act) declared the United States government’s commitment to eventually grant independence to the Philippines. The 1934 Tydings-McDuffie Act (Philippine Independence Act) created the Commonwealth of the Philippines the following year, increasing self-governance in advance of independence, and establishing a process towards full Philippine independence (originally scheduled for 1944, but interrupted and delayed by World War II). The United States granted independence on July 4, 1946, following World War II and the Japanese occupation of the Philippines, through the Treaty of Manila.

Some still ask, should Philippine Independence be celebrated on June 12, the anniversary of Aguinaldo’s failed declaration on June 12, 1898, or on July 4 based on the actual, real, and final granting of independence to the Philippines by the United States of America on July 4, 1946?

Perhaps the more technically inclined would tend to insist on July 4 as the factual marker of Philippine independence. But from the Philippine National Anthem’s lyric, “Lupang Hinirang” (beloved country) it can be gleaned that the Filipino passion for freedom could not just have been sated by the grandiose behest of the second historical colonizer, America. “Alab ng puso” or “fervor burning” must be inflamed by a revolution, as in the brave uprising of Andres Bonifacio’s Katipuneros and Emilio Aguinaldo’s challenge to the three centuries’ grip of the original colonizer, Spain. So it is that June 12, with its technical ambiguities, marks Philippine independence, though unilaterally declared, as “won” from passionate revolution.

As was Freedom won from the dictator Ferdinand Marcos with the EDSA People Power Revolution of February 1986 that ended the 14-year-long Martial Law from 1972. Fourteen years! How did a people, enlightened about Freedom and Rights, allow one of its sons to reverse and trample roles in a democracy, of a government of the people, for the people, and by the people? Thank God that there was an awakening, as the Snap Elections that Marcos himself earlier set into motion to “convince” the people (and himself, maybe) that the majority of Filipinos still wanted him to stay and be dictator for life. But the manipulation and cheating of election results, helped by active pre-election disinformation campaigns to glorify Marcos and pro-Marcos candidates while killing off chances of the oppositionists, had angered the people at last. Thus arose the groundswell of passion to fight for freedoms and rights lost, bursting fiery but unbloody in a second and perhaps more memorable “Independence Day,” on Feb. 25, 1986.

Passion for the independence of a people and a jealous awareness and close-guarding of freedoms and rights must be foremost for physical, moral, and spiritual/intellectual survival and development of society and individuals. The rule of law, derived from the Constitution and natural moral laws and values, must guide life and liberties for common peace and harmony. How sad that Independence Day commemorations are not as celebrated with the bravado of past years. There is subliminal value, or even just psychological and mental entrenchment of lessons learned from freedoms lost and won, in remembering freedom days.

How eerily alarming that today the Philippines is facing a national election, to be held on May 6, 2022 — barely a year from now, while still under the stranglehold of the COVID-19 pandemic, and with the political unrest that competes for the people’s distracted focus. It jars concerns and anxieties that the dilemma of political confirmation of present leadership vis-à-vis a change in government comes so like the Snap Elections that could have confirmed approval of a dynastic dictatorship by Marcos in 1986.

The Rappler List of 2021 Independence Day protests and activities announced actual street protests and online discussions “in light of issues of Philippine sovereignty involving the Chinese militarization of the West Philippine Sea and President Rodrigo Duterte’s policy of dealing with China and its encroachment into Philippine waters,” is said. “Groups have also emphasized that this year’s celebration will renew calls urging Filipinos to vote and choose the right leaders as the 2022 Philippine elections draw nearer.”

Among the groups mobilized were Anakbayan, League of Filipino Students (LFS), Kabataan Party list, and the 1Sambayan opposition coalition.

Independence Day 2021, before the 2022 elections, tremulously feels like the days before the Filipinos’ immediately-past (1986) revolution for Freedom.

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

ahcylagan@yahoo.com

An American affront to PAL and the Filipino community

June 13, 2021 | 6:53 pm

LAX-International-checkin — CHECK-IN COUNTERS at the Tom Bradley International Terminal. — TIMBRAY/WIKIPEDIA

When one of our kababayan (countrymen) is picked-on or becomes a victim of injustice, the rest of us rally behind them. This is the essence of being Filipino.

I was quite affected when I found out that the Los Angeles World Airport (LAWA), the airport authority that owns and operates the Los Angeles International Airport (LAX), unilaterally decided to move all departing and arriving Philippine Airlines (PAL) flights from the main Tom Bradley International Terminal of LAX to the Midfield Satellite Concourse, effective tomorrow.

The Midfield Satellite Concourse, to which PAL flights will be transferred, is a separate building from the main terminal that can only be accessed via underground tunnel. This means PAL passengers will have to embark on a 20-minute walk from immigration and security clearance to the gates, and vice versa. Mind you, the kilometric walk will require passengers to navigate escalators and/or elevators as well as an underground tunnelway whilst carrying their hand-carried luggage.

Los Angeles is home to some 600,000 Filipinos-Americans and the direct flights between Manila and Los Angeles, via PAL, is one of the densest in terms of load factor. Records show that more than a third of all passengers for this route are senior citizens, 59 years old or older. Many of them have disabilities and are unable to walk more than 200 meters, let alone manage a 20-minute trek with their carry-on luggage on hand. Making matters worse is that the Midfield Satellite Concourse has little or no food outlets yet.

Without doubt, the transfer to the Midfield Satellite Concourse will compromise the travel experience onboard PAL, not only for senior citizens but for everyone. Upon further investigation, I found out that the air carriers mandated by LAWA to move to far flung gates are those that don’t belong to a particular air alliance.

Although LAWA informed PAL of its intention to move the airline to the Midfield Satellite Concourse back in 2017 and 2018, PAL never agreed to such an arrangement. It was a surprise for PAL to receive an advisory from LAWA that they were enforcing the move anyway.

The flag carrier has filed an official protest to challenge LAWA’s decision and is demanding a reversal. PAL argues that LAWA’s decision was handed down without its consent and without considering the needs of the elderly who comprise a third of PAL’s passengers. It was a decision bereft of humanitarian considerations.

LAWA responded by saying, and I quote: “The New Tom Bradley International Airport west gates make up a brand-new state-of-the-art concourse that is designed as a seamless extension of the Tom Bradley International Terminal (TBIT). Therefore, the operational parameters of airline functions at the TBIT west gates are expected to be substantially similar to current practices for airlines operating at TBIT. The innovations and technology at the TBIT West Gates will enhance the overall efficiency and experience for guests and operators.”

On concerns about the el ders and PWD passengers, LAWA says it is committed to providing efficient transit of these passengers, mentioning the use of at least 12 terminal transport vehicles (buggies) that can transport four to five people at any time.

LAWA’s response simply tries to justify its decision. But it does not negate the fact that the new gates assigned to PAL are 20 minutes away on foot. Sure, the new concourse is state-of-the-art but it will still be a colossal inconvenience (and challenge) to Filipino passengers and those traveling to and from Manila.

LAWA is not budging on PAL’s appeal. This stings acerbically since PAL is both a historic and strategic partner to LAWA and the county of Los Angeles. It will be recalled that at the end of the Second World War, it was PAL that repatriated stranded American servicemen back to the US west coast. PAL did the same for the remaining servicemen stranded during the eruption of Mount Pinatubo and withdrawal of American military bases. The national carrier has been calling on LAX for 75 years (since 1946), without interruption, and has been a good “customer” to LAWA all throughout. PAL is the lone airline that offers direct service between the Los Angeles and Manila.

Last week, the Filipino-America community, led by Ethel Rubio, made an urgent petition to the Los Angeles City Council to intervene in the LAWA row. It is not certain yet what will come out of this request.

On behalf of PAL, I make an appeal to my old acquaintance, John C. Law, who is the Chargé of Affairs of the American Embassy in Manila. Surely the cultural, economic, diplomatic, and even familial ties that exist between the Philippines and the United States are far deeper and infinitely more important than the interest of an airline alliance.

The airlinks between Los Angeles and Manila is an umbilical cord that keeps this relationship thriving. It is foolhardy to stress that umbilical cord for commercial reasons or, worse, for the interest of that single airline alliance. It is not worth it, especially now that our relations are strengthening anew after the unfortunate (and hugely regrettable) statements made by our Chief Executive.

If only for the contributions of the Filipino community to American society, to its healthcare system, and to its economy, we ask that this undue burden not be inflicted upon PAL passengers. Your intercession, Mr. Law, will affect more than 300,000 Filipino passengers that fly to and from LA every year and will be deeply appreciated.

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook @AndrewJ. Masigan

Twitter @aj_masigan

Second Grand Slam tournament junior doubles title for Alex Eala

June 13, 2021 | 6:46 pm

EalaFrench — FILIPINO tennis ace Alex Eala (left) is now a two-time Grand Slam junior doubles champion after claiming the 2021 French Open girls’ title on Saturday evening. — ROLAND-GARROS/TWITTER

FILIPINO tennis ace Alex Eala is now a two-time Grand Slam junior doubles champion after claiming the 2021 French Open girls’ title on Saturday evening (Manila time).

Ms. Eala, a Rafa Nadal Academy scholar, and Russian partner Oksana Selekhmeteva defeated the pair of Amarissa Toth of Russia and Maria Bondarenko of Hungary (6-0, 7-5) in the finals at the Stade Roland-Garros in Paris, France.

The title was the second in Grand Slam events for 16-year-old Eala, who won the 2020 Australian Open title with Indonesian partner Priska Nugroho.

The Filipino-Russian tandem dominated its opponent in the opening set of the finals, winning, 6-0, in just 20 minutes.

In the second set, it encountered a stiffer challenge, forced to a 5-5 tie after 10 games. But much like what the duo did all tournament long, it held steady in the clutch, taking the next two games to close out the proceedings and secure the title.

The win was a culmination of the impressive run of Mses. Eala and Selekhmeteva, who did not drop a single set in their five matches in the competition.

In her speech after, Ms. Eala, a long-time Globe ambassador, thanked all the Filipino supporters who rallied behind them, taking note as well that their feat came on Philippine Independence Day.

“To all the Filipinos who watched us and gave their support, thank you so much!” said Ms. Eala in Filipino. “It is actually Independence Day today, so I hope I made my contribution to the country.”

She went on to thank her partner Selekhmeteva, who she underscored “fought really, really hard,” as well as family and friends and the Rafa Nadal Academy.

It has been a solid year for Ms. Eala in 2021 to date, which has seen her make waves in the pro circuit and rise in the world rankings. — Michael Angelo S. Murillo

French Open champion Barbora Krejčíková

June 13, 2021 | 6:46 pm

FACTBOX on Barbora Krejčíková, who defeated Anastasia Pavlyuchenkova (6-1, 2-6, 6-4) to win her maiden Grand Slam title at the French Open on Saturday.

Age: 25

Nation: Czech Republic

WTA ranking: 33 (Highest ranking: 33)

Seeding: Unseeded

Grand Slam titles: 1 (French Open 2021)

ROAD TO FINAL

First round: Kristýna Plíšková

(Czech Republic) 5-7 6-4 6-2

Second round: 32-Ekaterina Alexandrova (Russia) 6-2 6-3

Third round: 5-Elina Svitolina (Ukraine) 6-3 6-2

Fourth round: Sloane Stephens (US) 6-2 6-0

Quarterfinals: 24-Coco Gauff (US) 7-6(6) 6-3

Semifinals: 17-Maria Sakkari (Greece) 7-5 4-6 9-7

EARLY LIFE

* Born in Brno, Czech Republic. Started playing tennis aged six and was later coached by 1998 Wimbledon women’s singles champion Jana Novotná.

CAREER TO DATE

* Started her professional career on the ITF circuit in 2010 and was ranked junior world number three in 2013, when she won the French Open, Wimbledon and US Open girls’ doubles titles with compatriot Kateřina Siniaková.

* Made her WTA Tour debut in 2014 and won her first WTA doubles titles with An-Sophie Mestach at the Coupe Banque Nationale in 2015.

* Made her breakthrough in 2016 by qualifying for the women’s doubles semifinals at the French Open with Siniaková. Also reached the US Open quarterfinals with her Czech partner the same year.

* Won the women’s doubles title in 2018 at the French Open and Wimbledon with Siniaková, with the pair ending the year as the top-ranked doubles players.

* Won the mixed doubles title with American Rajeev Ram at the 2019 Australian Open, while also reaching the Wimbledon women’s doubles semis with Siniaková.

* Won her maiden WTA singles title at Strasbourg, a day before the start of this year’s French Open.

* In only her fifth main draw singles appearance at a major, she won the French Open in 2021. — Reuters

‘Extraordinary’ NCAA season officially kicks off

June 13, 2021 | 6:46 pm

By Michael Angelo S. Murillo, Senior Reporter

SEASON 96 of the National Collegiate Athletic Association (NCAA) conducted in extraordinary circumstances because of the pandemic officially kicked off on Sunday with a virtual opening ceremony.

Playing under the theme “Rise Up Stronger: NCAA Season 96,” the new season of the country’s oldest collegiate league serves to start the move towards the return of varsity sports in the Philippines, which was effectively halted by the health crisis.

Season 96 is being done under strict health and safety protocols but still bent on showcasing the world-class talent of young Filipino student-athletes from the 10-member schools of the NCAA, led by this season’s host, Colegio de San Juan de Letran.

“Since the COVID-19 pandemic shut us down last year, the NCAA has resolved to move forward and to carry the good fight, for our love of the game,” shared Season 96 Policy Board President Fr. Rector Clarence Victor C. Marquez, OP of Letran, of the league’s drive to push through with its new season.

“NCAA would like to show the creativity and resilience of the Filipinos, especially in the pandemic. We don’t give up — that’s the message we want to deliver. We have to adjust to the situation and make the most of it,” NCAA Season 96 Management Committee Chairman Rev. Fr. Victor Calvo, Jr., OP, also of Letran, for his part, said.

To make the staging of Season 96 a reality, the NCAA actively worked with its new television partner GMA Network.

The two groups have put in place some tweaks on how the season will be presented so as to adapt with the current situation with the pandemic.

For now, the league will be staging virtual competitions which include those for chess and taekwondo (poomsae and speed kicking).

Later on, after further clarification from government authorities and other league stakeholders, virtual basketball and volleyball skills challenges will be staged.

“We are grateful to the NCAA for their confidence in GMA Network as their new home and to our student-athletes for keeping the passion for sports alive,” said GMA Regional TV and Synergy First Vice-President and Head Oliver Victor Amoroso.

NCAA Season 96 competition will be aired on GTV while fans abroad can catch all the action via GMA Pinoy TV and GMA News TV. Action can also be seen on the NCAA Philippines mobile app.

Beginning Monday, June 14, sports fans can catch the Taekwondo Poomsae in the Men’s and Women’s Divisions to be followed by a Speed Kicking tournament, a new competition designed by the Philippine Taekwondo Association for NCAA Season 96.

Sports commentator Anton Roxas will give the blow-by-blow account of every game as well as highlights.

Apart from Letran, other member teams of the NCAA are Arellano University, De La Salle-College of Saint Benilde, Emilio Aguinaldo College, Jose Rizal University, Lyceum of the Philippines University, Mapua University, San Beda University, San Sebastian College-Recoletos, and University of Perpetual Help System DALTA, were all represented.

Rise Up Stronger: NCAA Season 96 airs weekdays at 2:45 p.m., Saturdays at 4:30 p.m., and Sundays at 5:05 p.m. For more updates on NCAA, visit its official website www.ncaa.com.ph. Follow @ncaaphilippines, @gmasynergy, and @gmasports on social media.

Despite challenges, Gilas Pilipinas looks to do well at FIBA Asia Cup Qualifiers in Clark ‘bubble’

June 13, 2021 | 6:46 pm

THE Philippine national men’s basketball team looks to do well in the third window of the International Basketball Federation (FIBA) Asia Cup Qualifiers (ACQ) beginning this week despite the challenges it has to deal with in the lead-up.

This was shared by Ryan Gregorio, special assistant to Samahang Basketbol ng Pilipinas President Al S. Panlilio, as Gilas Pilipinas, made up of an all-cadet roster, on Sunday entered the “bubble” at Clark City in Angeles, Pampanga, where the qualifiers will take place from June 16 to 20.

The SBP official said the team’s preparation was not easy as it had to grapple with limitations in training presented by the pandemic as well as injuries to key players.

“We are bringing a relatively young team to the competition and it’s important for them to get a better understanding of what to expect. We know it’s not easy for them because they have been training in a bubble for nine weeks now. They have sacrificed a lot, being away from their family and not being able to do what they usually do,” said Mr. Gregorio during his session on The Chasedown program on Saturday.

Gilas had its training bubble at the INSPIRE Sports Academy in Calamba, Laguna, in the past months before entering the Clark bubble yesterday.

Mr. Gregorio went on to say, “Also, injuries are really an issue for us. It’s a challenge for the coaching staff since the players that went down play a huge role in the team. So we’re trying to inculcate to them the ‘Next man up’ mentality. That is stepping up and being ready because we cannot be sure injuries will not happen in the tournament.”

Out injured for the FIBA Asia Cup third window are Matt Nieto (hand), Dave Ildefonso (foot) and Rey Suerte (ankle).

In their absence, Gilas will turn to the remaining players in the pool to carry the fight.

They include Dwight Ramos, Mike Nieto, Isaac Go, Will Navarro, Jaydee Tungcab, Justine Baltazar and Javi Gomez de Liaño, who all played in the second window in Jordan last November.

Also in the pool are Jordan Heading, Tzaddy Rangel, SJ Belangel, RJ Abarrientos, Carl Tamayo, Jason Credo, Geo Chiu and Lebron Lopez.

Part of the roster of players as well is newly naturalized player Angelo Kouame, who the SBP believes will be a big boost to the team.

International basketball campaigner Kai Sotto, who is currently in the country, is being considered to be part of the qualifiers.

But Mr. Gregorio said Mr. Sotto suiting up for the team all depends on his game shape after undergoing quarantine since arriving from the United States two weeks ago.

“We don’t want him to play just for the sake of suiting up. We want him to play the best basketball he can.”

Group A-leading Gilas (3-0), which is to be coached by Gilas program director Tab Baldwin, opens its campaign on June 16 against Korea (2-0). It then returns on June 18 versus Indonesia (1-2) and on June 20 versus Korea anew.

GILAS GAMES ON GIGAFEST.SMART
Meanwhile, Gilas games as well as other matches in the FIBA Asia Cup Qualifiers will be streamed by Smart Communications, Inc. by way of gigafest.smart.

Smart subscribers can get access to action live and on-demand on their mobile devices through the offering.

Prepaid subscribers can watch the action by turning on their mobile data and visiting gigafest.smart.

For the best streaming experience, they can register to Double GIGA Video 99, which gives them 2 GB data every day for YouTube, Cignal, iWant, and NBA League Pass plus 2 GB of open access data, valid for seven days. To register, just choose Double GIGA Video on the GigaLife App, or dial *123# on your smartphone.

Smart Signature subscribers can also stream the show seamlessly on gigafest.smart.

Streaming of the games on June 12 with the match between Qatar and Iran in Group E. — Michael Angelo S. Murillo

Biden supports Tokyo Olympics

June 13, 2021 | 6:45 pm

US PRESIDENT Joe Biden reaffirmed his support for the Tokyo Olympics at a meeting with the Japanese Prime Minister Yoshihide Suga on Saturday, highlighting the necessity of imposing public health measures ensuring the safety of those involved.

The Tokyo 2020 Olympic Games, which were postponed last year due to the global spread of the coronavirus, are scheduled to start on July 23, in the face of opposition from most of the public, many Japanese companies and medical staff.

“President Biden affirmed his support for the Tokyo Olympic Games moving forward with all public health measures necessary to protect athletes, staff and spectators,” it said. — Reuters

Filipino beach spikers to compete at Continental Cup in Thailand

June 13, 2021 | 6:45 pm

BERNADETH Pons (in photo) partners with Sisi Rondina to form one of the tandems for the Philippine beach volleyball team seeing action at the Asian Volleyball Confederation Continental Cup in Thailand. — PNVF

THE Philippine beach volleyball team left for Thailand on Sunday to compete at the Asian Volleyball Confederation (AVC) Continental Cup.

The nationals are vying to secure a spot in the rescheduled Olympic Games in the two-day competition to be held in Nakhon Pathom province. Two slots in Tokyo — top men and women finishers — are up for grabs in the tournament, which begins on Friday.

Making up the two women’s teams are the pairs of Sisi Rondina and Bernadeth Pons and Dij Rodriguez and Babylove Barbon. Mer Jauculan and Gen Eslapor are the reserves.

The men’s squads, meanwhile, are composed of the tandems of Jaron Requinton and James Buytrago, and Jude Garcia and Anthony Arbasto. Alternates are Ranran Abdilla and Philip Bagalay.

“We are hoping for a strong finish for our men and women beach volleyball teams in this Olympic qualifier,” said Philippine National Volleyball Federation (PNVF) President Ramon Suzara.

He took note that “our athletes are adequately prepared for the competition,” owing to the fact that the national squad had set up training camp in Pagudpud, Ilocos Norte, since last month.

In the tournament, the Philippines will face Japan, New Zealand and Sri Lanka in the women’s contest with the top two teams advancing to the final phase from June 25 to 27.

The men’s national teams will face Australia, Japan, Kazakhstan and Lebanon.

The teams will be accompanied by national coaches Paul Jan Doloiras (women) and Rhovyl Verayo (men) and PNVF board member and Beach Volleyball Commission chairperson Charo Soriano. — Michael Angelo S. Murillo

Brewers stay hot, rally for 7-4 victory over Pirates

June 13, 2021 | 6:45 pm

CHRISTIAN Yelich had a three-run double during a five-run fourth inning on Saturday as the host Milwaukee Brewers erased an early four-run deficit to earn a 7-4 victory over the Pittsburgh Pirates.

Willy Adames added an RBI double in the fourth, while Omar Narvaez capped the inning with an RBI single. The Brewers have won eight of nine.

Milwaukee starter Corbin Burnes pitched into the fifth, allowing four runs (two earned) on eight hits, with three walks and eight strikeouts. He also had an RBI single.

Trevor Richards (1-0) gave up one hit over two scoreless innings, and Josh Hader pitched the ninth for his 16^th save.

Ka’ai Tom had an RBI triple for the Pirates, who have lost six straight.

Pittsburgh starter Chad Kuhl (0-4) gave up six runs (five earned) over 3 1/3 innings, with four walks and two strikeouts.

The Pirates took a 3-0 lead in the first. Adam Frazier singled, stole second and went to third on Phillip Evans’ single. They both scored when Bryan Reynolds raced to third on Burnes’ fielding error. An out later, Reynolds scored on Jacob Stallings’ double-play grounder.

In the second, Erik Gonzalez and Tom led off with back-to-back triples to push Pittsburgh’s lead to 4-0. Burnes then struck out the next three batters.

Milwaukee got on the scoreboard in the second with two outs. Pablo Reyes ended up at third on errors by Gonzalez at short and Reynolds in center on the same play. Burnes drove in Reyes with an infield single.

The Brewers closed it to 4-2 in the third. Yelich hit a one-out single and scored on Narvaez’s base hit.

Reyes led off the fourth with a single and stole second. An out later, Jace Peterson and Daniel Vogelbach walked to load the bases. Yelich’s bases-clearing double put the Brewers ahead 5-4.

That chased Kuhl, with Clay Holmes giving up an RBI double to Adames and an RBI single to Narvaez to make it 7-4.

Pittsburgh loaded the bases with no outs in the fifth on singles by Reynolds and Colin Moran and Stallings’ walk. Richards spelled Burnes and struck out the next three batters. — Reuters