Local sports officials support Olympic delay

March 25, 2020 | 5:44 pm

By Michael Angelo S. Murillo
Senior Reporter

ORGANIZERS of the Summer Olympics in Tokyo this year on Tuesday moved for the postponement of the Games to 2021 over ongoing concerns on the coronavirus disease 2019 (COVID-19) pandemic.

It was a decision that Philippine sports officials support, seeing it as for the greater good of many in light of the very serious health crisis gripping the world.

In a conference call between Japanese Prime Minister Shinzo Abe and International Olympic Committee president Thomas Bach, it was agreed upon to delay the Tokyo Games for at least a year.

The 2020 Olympics was originally set to take place from July 24 to Aug. 9 and is now targeted to be staged no later in the summer of 2021.

It was the first time in the Olympics’ 124-year history that it had been postponed, though it was cancelled outright several times during the two 20^th-century World Wars.

Here in the Philippines, local sports officials said they fully support the decision to have the Olympic Games delayed as the battle against COVID-19 rages on.

“I favor a postponement because the health and safety of everyone in sports — both in the Philippines and all over the world — is paramount in this COVID-19 pandemic,” said Philippine Olympic Committee (POC) president Abraham Tolentino.

“A 2021 schedule is ideal enough,” he added, underscoring that hopefully by that time COVID-19 has been contained just as the delay would afford Filipino athletes added time to train and prepare in vying a spot in their respective Olympic events.

Mr. Tolentino’s views were shared by Philippine Sports Commission (PSC) chairman William Ramirez, who reiterated safety and health are primary in these times.

“I have always expressed that I favor its (Olympics) postponement, given the way this crisis seem to be taking. As I have mentioned before, safety and health of everyone is a top priority,” said Mr. Ramirez.

The PSC chairman said they are going to be active in giving the athletes what they need in this rough time and expressed readiness to address implications on the preparation budget brought about by the delay in the staging of the Olympics.

“In the meantime, we have mobilized our Sports Psychology unit to actively check on our athletes and conduct guidance counselling (online or by phone for now) for our athletes who might need their support given the challenges which resulted from these developments. Implications on the budget will remain manageable,” Mr. Ramirez said.

Messrs. Tolentino and Ramirez said preparations will continue as the situation permits and asked all athletes, coaches, officials and stakeholders to stay safe and observe government and Health Department protocols.

At the time the 2020 Olympics was postponed, four Filipino athletes had already qualified, namely EJ Obiena (athletics/pole vault), Carlos Yulo (gymnastics), Eumir Marcial and Irish Magno (boxing).

More athletes were expected to join the four from sports like boxing, canoe-kayak, golf, skateboarding, judo, wrestling, archery, cycling, weightlifting, table tennis, athletics, and wrestling as they were in the mix in their respective qualifiers which were also put on hold because of COVID-19.

In the lead-up, confidence was high that 2020 could be the year that the Philippines finally win its first-ever gold medal in the quadrennial sporting event, owing to having better-prepared athletes and jacked-up support given to them.

In nearly a century of competing in the Olympics, the Philippines has produced 10 medals to date — three silver and seven bronze.

Boxers Anthony Villanueva (1964) and Mansueto Velasco (1996), and weightlifter Hidilyn Diaz (2016) are the country’s silver medallists while bronze came from swimmer Teofilo Yldefonso (1928 and 1932), high jumper Simeon Toribio (1932), runner Miguel White (1936), and boxers Jose Villanueva (1964), Leopoldo Serantes (1988) and Roel Velasco (1992).

Meanwhile, postponement of the Tokyo Games is a massive logistical headache for host Japan, which has pumped in more than $12 billion of investment. But a poll showed about 70% of the Japanese agree with a delay.

Pressure on the IOC to postpone had been accelerating in recent days, with Canada and Australia even going as far as saying they would not participate if the Games pushed through as scheduled in July. — with Reuters

Nepomniachtchi leads the Candidates

March 25, 2020 | 5:43 pm

FIDE Candidates Tournament
Yekaterinburg, Russia
March 15–April 5, 2020

Current Standings (round 6 of 14)

1 Ian Nepomniachtchi RUS 2774, 4.5/6

2 Maxime Vachier-Lagrave FRA 2767, 3.5/6

3–6 Fabiano Caruana USA 2842, Alexander Grischuk RUS 2777, Anish Giri NED 2763, Wang Hao CHN 2762, 3.0/6

7–8 Ding Liren CHN 2805, Kirill Alekseenko RUS 2704, 2.0/6

Average Rating 2774 Category 21

Time Control: 100 minutes for the first 40 moves, then 50 minutes for the next 20 moves, then 15 minutes for the rest of the game with 30 seconds added to the clocks after every move starting move 1

Special Rules: No draw offers allowed until after move 40

Tie Breaks: The following are used to break a tie for 1^st place: (1) Direct encounter, (2) Wins, (3) Sonneborn-Berger. If they are still tied after the three systems are applied then a playoff beginning with four 25-minute games is played

Ian Nepomniachtchi (born July 14, 1990 in Bryansk, Russia), opened up a one-point lead against the field in the 2020 FIDE Candidates Tournament by winning three games and a performance rating of 2969. Really impressive.

In the 1^st round Anish Giri hit him with a theoretical novelty from the White side of a Symmetrical English Opening. I was very impressed with the way GM Ian handled the situation — knowing that he had fallen for Giri’s preparation he nevertheless did not chicken out and bravely went into the most critical variation, even managing to outplay his Dutch foe in the complications. Giri then gave up his queen for a rook to set up a “fortress” (a position with the defending side down in material, yet impossible for the stronger side to make any decisive progress) to hold the draw.

Magnus Carlsen, the current world champion who was acting as a commentator on the game, was very confident that Nepom would not be able to breach the position but he really buckled down and found a way to win.

Giri, Anish (2763) — Nepomniachtchi, Ian (2774) [A33]
FIDE Candidates 2020
Yekaterinburg (1.3), 17.03.2020

Giri is well known for always being prepared. In this game he blitzed out his first 19 moves while Nepomniachtchi was giving his moves a lot of thought.

1.Nf3 Nf6 2.c4 c5 3.Nc3 Nc6 4.d4 cxd4 5.Nxd4 e6

GM Nepomniachtchi has a lot of experience with this line. I don’t think he has ever lost with it yet — he beat Wei Yi last year in the Jerusalem Grand Prix and the year before that took down Gelfand in the Poikovsky tournament.

6.g3 Qb6 7.Ndb5 Ne5 8.Bf4 Nfg4 9.e3 a6 10.h3 axb5 11.hxg4 Nxc4 12.Rc1!?

This is Giri’s new move. The previously seen 12.Qb3 d5 13.Bxc4 dxc4 14.Qxb5+ “is just draw” (Nepomniachtchi)

12…d5!

After 11 minutes.

13.b3 Bb4!

After another 10 minutes.

14.bxc4 Ra3! 15.Be5 f6! 16.Bd4 Qa5 17.Be2! Bxc3+ 18.Rxc3 Rxc3 19.Kf1!

All part of Giri’s preparation.

19…b4!

It appears that Giri expected 19…bxc4 because now, for the first time in the game, he stopped blitzing and took 10 minutes over his next move. After the game Giri remarked that he had looked at b4 but didn’t believe any person would play it as it was “very, very deep.”

20.g5! e5 21.Bxc3 bxc3 22.gxf6 gxf6 23.Qb1?

Targeting h7 but it turns out to be a mistake. It was already time to go for equality with 23.cxd5!? Qc5 24.Bd3 Ke7 25.Qb3.

23…Qc7! 24.Qd3 b5!

I believe white overlooked this. He was counting on 24…Qxc4 25.Rxh7! Rg8 26.Qxc4 dxc4 27.Ke1! b5 28.a4 the black pawns on the queenside are contained.

25.Qxc3 bxc4 26.e4! dxe4 27.Rh4 Be6 28.Rxe4 0–0 29.Bxc4? Kg7!

It turns out White’s bishop is pinned against his queen.

30.Qb3 Rb8 31.Bxe6

After long thought Giri decides to give up his queen to set up a fortress with rook and pawn on his kingside. He figures this should be good enough to draw. Other moves lose:

• 31.Qd3 Bf5;

• 31.Qa4 Bd7 32.Qd1 (32.Qc2? Bf5) 32…Bf5 33.Rh4 Rb1 wins the queen.

31…Rxb3 32.Rg4+ Kf8 33.Bxb3 Qc1+ 34.Kg2 Qc6+ 35.Kg1 h5 36.Rg8+ Ke7 37.Rg7+ Kd6 38.Rh7 Qf3 39.Rh8 e4 40.Rd8+ Ke7 41.Bd1 Qc3 42.Rd5 h4! 43.gxh4 f5! 44.Rxf5 Qe1+ 45.Kg2 Qxd1 46.Rg5

Why did Giri not take the e4–pawn? After 46.Re5+ Kf6 47.Rxe4 Qd5 48.f3 Black has no more pawn. The end game table bases say that “Black mates in 70 (!)” so it might theoretically be the best defense for White. However, Giri knew that with white’s pawn on f3 this endgame is lost. He has a drawing plan and is sticking with it — pawn on f2, king to e1/e2, rook to e3 and g3.

46…Qa1 47.Rg4 Qb1 48.Rg3 Qxa2 49.Rh3 Qd5 50.Kf1 Qd1+ 51.Kg2 Qg4+ 52.Rg3 Qh5!

Another very impressive point. It is not yet time to take the h4–pawn. As a general rule if the white king can get to e1 or e2 then with his pawn on f2 and rook on e3 we would have a fortress that Black cannot penetrate. After 52…Qxh4 53.Kf1 Qh1+ 54.Ke2 Ke6 55.Re3 it is a draw although by no means an easy one. Best try for Black is 55…Kd5 56.Rg3 rook intends to shuttle between e3 and g3. There is a trap he has to be wary of though 56…Kd4 57.Re3? (This exactly illustrates my warning that White should be alert to tactical traps. 57.Ra3! maintains the draw 57…Qh5+ 58.Ke1 Qb5 59.Rg3 Qb1+ 60.Ke2 Qc2+ 61.Ke1 Qc1+ Black cannot make progress) 57…Qh5+! 58.Ke1 (58.Kd2 Qg5 59.Ke2 Qxe3+ 60.fxe3+ Kc3 is a book win for Black) 58…Qa5+ 59.Ke2 Qb5+ 60.Ke1 Qb1+ 61.Ke2 Qc2+ 62.Ke1 Qc1+ 63.Ke2 Qxe3+ 64.fxe3+ Kc3 Black wins.

53.Ra3 Qd5!

Nepom is aware of White’s intention of putting his king on e1 or e2 so he places his queen on d5 so that he’d always have a check on d1 to drive it away. He will send his king to capture the h-pawn.

54.Kg1 Kf6 55.Rg3 Qd1+ 56.Kg2 Kf5 57.Rg5+ Kf4 58.Rg3 Qd5 59.Kf1 Qd2 60.Kg2 Qd1 61.Re3 Kf5 62.Rg3 Kf6 63.Rh3 Kg6 64.Rg3+ Kh5 65.Rh3 Qb1 66.Re3 Kxh4 67.Rg3 Kh5 68.Rh3+ Kg4 69.Rg3+ Kf4 70.Re3 Qd1 71.Ra3 Ke5 72.Rg3 Kd4 73.Re3

POSITION AFTER 73.RE3

73…Qd3! 0–1

Nepo will now exchange his queen for the rook and win the pawn ending. Let us demonstrate. 73…Qd3 74.Re1 (74.Rxd3+ exd3 75.Kf1 Kc3 76.Ke1 Kc2; 74.Rg3 Kc3) 74…Qc3 75.Kf1 (75.Re3 Qxe3 76.fxe3+ Kxe3 77.Kf1 Kd2) 75…Ke5 76.Re2 Qc4! 77.Ke1 Qc1#

In rounds 5 and 6 GM Ian had two consecutive white games against the two Chinese grandmasters Wang Hao and Ding Liren. They followed the same course — Nepomniachtchi emerged from the opening with pressure against the Black positions and then kept pushing until his opponents cracked. Especially for Ding Liren this was a painful loss, as it was his 3^rd loss in the tournament and it is really looking like he will no longer be challenging for 1st place. In the Candidates’ tournament only 1^st place matters and right now Ding is 2.5 points behind Nepomniachtchi.

The top seed Fabiano Caruana had an impressive win in the 1^st round.

Caruana, Fabiano (2842) — Alekseenko, Kirill (2698) [E20]
FIDE Candidates 2020
Yekaterinburg RUS (2.1), 18.03.2020

Fabiano went for something he’d never played before — the aggressive 4.f3! against the Nimzo-Indian. Anish Giri’s wife WGM Sopiko Guramishvili has done a video on this opening in the chess24 Website and he followed her recommendations all the way until Kirill deviated on the 10^th move.

1.d4 Nf6 2.c4 e6 3.Nc3 Bb4 4.f3 d5 5.a3 Be7 6.e4 dxe4 7.fxe4 c5 8.d5 exd5 9.exd5 0–0 10.Be2! Re8 11.Nf3 Bg4 12.0–0 Nbd7 13.d6!?

Caruana had looked at this position before the game but couldn’t recall all the lines.

13…Bf8 14.h3 Bh5

Alekseenko spent a combined 47 minutes over this and his next move.

15.Nb5 Re6 16.Bf4 a6 17.Nc7 Re4

Alekseenko was counting on this move which threatens the f4–bishop, giving his other rook on a8 time to swing into position.

18.Bh2 Rc8 19.g4!? Bxg4 20.hxg4 Nxg4 21.Bd3 Nxh2 22.Bxe4 Nxf1 23.Qxf1

Caruana had a lot of time here and felt his position was very advantageous because of the powerful outpost on d5.

23…Bxd6 24.Nd5 g6 25.Qh3 Kg7 26.Kh1 Ne5 27.Nh4!

[27.Nxe5 Bxe5 Would have let Black back in it]

27…h5 28.Rg1 Bf8 29.Nf4 Ng4 30.Nxh5+ gxh5 31.Bf5 Be7 32.Bxg4 hxg4 33.Qxg4+ Bg5 34.Qh5! 1–0

Nice. After 34.Qh5 f6 there is forced mate. One sample line is 35.Nf5+ Kf8 36.Qh8+ Kf7 37.Qh7+! Kf8 38.Qg7+ Ke8 39.Re1+

After six rounds Caruana has an even 3/6 score and is 1.5 points behind the tournament leader. I wouldn’t put it past him though to fight back into contention in the second half. Recall his 6.5/7 at the end to win 2020 Wijk aan Zee. He described his experiences in his two previous Candidates Tournament (Moscow 2016 where he finished second behind Karjakin and Berlin 2018 which he won) in an interview for New in Chess Magazine:

“The two Candidates tournaments I have played in were extremely different. One [in Moscow] where I struggled to win at the very start and also was extremely ill for the first seven rounds, and at some point I was fighting for the lead, but it didn’t work out. And the last one [in Berlin], where I had a very strong start, but I took some blows later in the tournament. I think the main thing is that you’re always going to have a difficult period in the Candidates, no matter what, there will be some struggle. I don’t think anyone ever wins cleanly; that just can’t happen.”

Well, we will see.

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net

Ready

March 25, 2020 | 5:42 pm

The decision to postpone the 2020 Tokyo Games was made not a moment too soon. Certainly, its effect on athletes who hitherto looked forward to the Olympics being held in July and trained accordingly cannot be underestimated. For countless who fixed their calendars so they could be in peak form for the quadrennial spectacle, the delay throws a monkey wrench on their bids for glory. The ideal would have been to push through with it, but the rapid spread of the new coronavirus and the need for containment made it untenable. And because lives were at stake, there was simply no choice but to move it back a year.

For USA Basketball, the development should enable it to stick to its plan to tap the best of the best in defense of the United States’ Olympic title. Had the show gone on as originally scheduled, it would likely have been forced to turn to players not currently in the National Basketball Association for the purpose. Managing director Jerry Colangelo was, in fact, preparing for the eventuality given contractual obligations of his preferred stalwarts. Instead, he’s looking ahead with optimism — to Games that can be held absent any fear of the virus and with marquee names on tap.

The assumption that the Olympics will still be scheduled in summer is, of course, a good one. That said, it can be moved earlier or later, in which case conflicts enter the equation. No doubt, USA Basketball will keep coordinating with the IOC and the NBA to minimize, if not altogether eradicate, obstacles to the show going on as finely as it can. And then there is the not insignificant factor of fatigue and age to contend with. Players will be a year older by then — not a problem for most, but certainly cause for pause to the likes of LeBron James, 35, and presumably just out of a prolonged run with the Lakers. Father Time never loses, not even to the extraordinarily durable; the circumstances may yet compel him to rethink his plans to claim a third gold.

In any case, Colangelo’s prepared, not to mention armed with the commitment of head coach Gregg Popovich. It was seemingly far from a slam dunk; he’s about to turn 72 and in danger of missing the NBA playoffs for the first time since 1998. On the other hand, the very pride that propelled him to succeed invariably spurred him to stay in the hot seat, if for no other reason than to erase the stigma of Team USA’s seventh-place finish in the FIBA World Cup last year from his resume. And, all other things being equal, there’s no better call to arms for players than his continued participation. They’ll go to war for him, they’ll defend the crown for him, and darned if mankind doesn’t win in the process.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

alcuaycong@bworldonline.com

Wilcon Depot allocates P100M financial assistance to aid employees and community partners during COVID-19 quarantine

March 25, 2020 | 4:38 pm

In the face of the Coronavirus Disease-2019 (COVID-19) pandemic, Wilcon Depot, the Philippines’ leading home improvement and construction supply retailer, releases a total of P100M financial assistance to its employees and community partners during the month-long enhanced community quarantine in Luzon.

Considering its employees as the company’s top asset, Wilcon allocates 80 million pesos to support its affected workforce in spite of the discontinuation of work in corporate offices and stores amidst COVID-19 crisis.

As the company responds to make provisions for their employees to cope with the situation, Wilcon employees will receive their salaries in full. Wilcon believes that during this challenging time, prioritizing its employees’ safety and well-being is essential.

Furthermore, with the company’s effort to contribute to the community in our ongoing battle against the pandemic, Wilcon has allocated another 20 million pesos to support ABS-CBN Lingkod Kapamilya Foundation and GMA Kapuso Foundation in their efforts to help provide basic medical supplies for the health and safety workers and supply food and basic needs to poor families whose source of living has been affected by the enhanced community quarantine.

To support the government’s effort in fighting against the spread of COVID-19, Wilcon Depot also announced temporary closure of its stores located in Metro Manila and Luzon areas and suspended its retail operations.

For more updates about Wilcon, you can log on to www.wilcon.com.ph and follow their social media accounts on Facebook and Instagram at @wilcondepot.ph.

Angkas launches food delivery service to support bikers, quarantined users

March 25, 2020 | 1:32 pm

Motorcycle-hailing startup Angkas announced yesterday a new food delivery service called Angkas Food, a solution the firm set up to support their community of bikers and quarantined users affected by the ongoing Covid-19 pandemic.

“Guys legit to, gumawa kami ng food delivery service oha,” the company’s Twitter announcement reads. “Para to sa mga bikers at sa inyo. We will not take any commission in this initiative. Sa kanila lahat to.”

(Guys this is legit. We made a food delivery service. This is for our bikers and for all of you. We won’t be taking any commission in this initiative. This all goes to them.)

“Delivering food isn’t our expertise. Madaming mas magaling diyan. Nakiki-epal lang kami, pero gagawin namin ito para may pagkakakitaan ng pera yung mga biker namin kahit pano, at sa kagustuhan din namin tumulong magdala ng mga pangangailangan ng ating komunidad na naka-quarantine.”

(“Delivering food isn’t our expertise. There are many more capable of doing that. We’re just taking up space here, but we’re doing it because we want our bikers to continue making a living, and because we want to help our communities get what they need despite the quarantine.”)

The new service is a limited engagement between Angkas and a number of partner restaurants. Interested diners need only place their orders directly with the restaurants and wait for an Angkas biker to deliver the food.

“No need to book through the app,” the announcement reads. “Baka sabihin niyo di gumagana eh. (Just in case you guys complain it won’t work.)”

In addition to any applicable parking fees, a delivery fee of P60 (cash only) is charged for the first three kilometers traveled, with an additional P10 per kilometer (up to five kilometers). The firm is also implementing a no-touch interaction rule, to support our public health sector’s social distancing mandate. Drivers will be placing items either on the seat of their motorcycles, or on customers’ doorsteps, before moving back a safe distance.

For a list of establishments partnered with Angkas, you can find their presentation here.

Filipino CTO builds app for COVID-19 contact tracing in Cebu

March 25, 2020 | 1:12 pm

A Filipino CTO has developed an app for contact tracing of COVID-19.

Eddie Ybañez of Payruler, a human resources management and payroll platform, designed WeTrace, which, upon activation via mobile data, generates a unique QR code per user and traces their timeline, movements, locations, and even other users of WeTrace that they were with. Should a user be confirmed to be infected with COVID-19, WeTrace notifies other users who were in contact with them so that they can seek immediate care.

All of this is done without having to share any personal information. “The app does not ask for any personal or private data; no names, no photos nor any personal details of the user,” Ybañez said in a Manila Bulletin report. “What is visible is the individual’s unique ID number… to protect his or her identity as provided for under the privacy protection law.”

The WeTrace team is currently working with the Department of Health, the Philippine National Police, and concerned government agencies in their native Cebu on how they can firmly integrate the app in anti-COVID 19 outbreak measures.

The app is also currently pending approval on Google and Apple’s respective app stores.

Tips on running a remote office from a remote-first startup founder

March 25, 2020 | 11:22 am

I have had several years of experience working remotely for different companies in Vancouver and San Francisco, and I have tried many different arrangements and tools in this regard. Now that I have my own company (NextPay), I finally get to implement a lot of my learnings and experiences. I absolutely believe it is even more relevant here in Manila due to the fact that our team is located everywhere, and traffic in Metro Manila is quite unbearable. We’re fortunate to not have been affected much by lockdown/quarantine thanks to our already-established remote working setup.

Let me preface my tips with the following disclaimer: work from home (WFH) is not for everyone. It requires self-discipline, self-motivation, it can get lonely (if done wrong), and not everyone has the ability to be as productive at home. But in times like this, during a lockdown that leaves us no other choice, there are certain things that can be done to mitigate those drawbacks.

Set boundaries and expectations

It’s important to be clear with the team that even when working from home, as much as possible they are to behave as if they’re in the office: maintain professionalism. For example, don’t work from your bed. Ideally, use a desk. Even better is a home-office with a door that separates you from the rest of your home. Wear appropriate clothing (for video meetings). Try to adhere to agreed-upon working hours, or at least communicate when you are having to step out for errands or other things. Which leads to the next point.

Overcommunication and transparency

WFH requires communication to be turned up to 11. We never use email to communicate internally. We instead use chat software that allows for topical communication such as Slack. Our team uses Mattermost. Other chat apps like WhatsApp and Messenger work, but are less ideal since a lot of things tend to get lost. Avoid direct-messaging as much as possible, and instead post to public chat-rooms/channels for transparency and for everyone to be aligned. Default to public over private comms.

When it comes to the work we do, transparency is everything. Everything is treated as a draft. This means that the moment you start a new document or spreadsheet, it should already be accessible to everyone. This allows for a much quicker feedback loop from teammates. For instance, we use Google Drive for docs/spreadsheets, Figma for our designs, TeamViewer for pair-programming, and other real-time collaboration tools.

Video conferences are king. We have daily 10-min sync up meetings (standups) every morning. Furthermore, each of our team members meet via video conferencing (using Google Meet) several times a day. If you can’t do real-time videos, consider using tools like Loom where you can quickly record and send video messages. And on that note, show your face! It can be tempting to keep your webcam off during video meetings, but showing your face helps tremendously with getting messages across (they say 97% of communication is non-verbal). Furthermore, it helps with establishing and maintaining culture.

Culture and sense of belonging

It’s very easy to feel isolated and alone when working remotely, but there are things that can be done to alleviate this. Currently, we use a virtual office service called Sococo. Beyond looking cute, it allows us to simulate being in a real office, where we can spontaneously enter virtual office rooms, start audio/video conversations with colleagues (no need to schedule meetings), thus improving communication. There’s also a big psychological benefit: you never feel like you’re alone. And this matters a lot with motivation and productivity.

Organize online “events” for everyone to participate in. Just the other day, our team capped the day off with a game of Scribblio (multiplayer drawing & guessing game). For larger companies, consider assigning someone to organize remote team events.

Lastly, we still meet in-person a few times a month (prior to the COVID lockdown). In-person meetings are still great for building and maintaining company culture.

The costs of remote work

If you can really optimize your company’s remote-working setup, I believe that it can completely erase the need for a physical office and thus save your company a lot of money. Running the numbers, if we were to get a dedicated physical space for our team, we are looking at a monthly cost of Php 5,000 to Php 9,000 /person/month. This doesn’t include other costs and pitfalls of having an office such as maintenance, minimum lease agreements, etc.

With remote work however, we’re looking at around PHP 3,500 /person/month. This includes the costs of remote work tools, an internet allowance, and in-person gatherings twice a month with catered food.

Final words

Admittedly, not all companies can do remote work just yet. But as companies evolve to become more digital, there are several tools out there that can help. In fact, our company NextPay is building one such tool: a way for small businesses and entrepreneurs to easily pay their employees, contractors, and suppliers, in any bank or e-wallet. In light of the COVID situation, several businesses have recently sought out our disbursement service as an alternative to their go-to methods of cash/cheque deposits, or the severely-limited individual bank-transfers.

NEDA’S projected impact of COVID-19 on the Philippine economy

March 25, 2020 | 12:32 am

THE Philippine economy could contract by as much as 0.6% this year due to the widening fallout from the coronavirus disease 2019 (COVID-19) pandemic, according to the National Economic and Development Authority (NEDA). Read the full story.

Economy may contract this year: NEDA

March 25, 2020 | 12:32 am

By Beatrice M. Laforga
Reporter

In a report titled “Addressing the Social and Economic Impact of the COVID-19 Pandemic,” NEDA said economic drivers such as tourism, trade, remittances and consumption are being hurt amid the month-long Luzon-wide lockdown.

“Without mitigating measures, this would imply a reduction in the Philippine’s real GDP (gross domestic product) growth to -0.6% to 4.3% in 2020. The government’s swift and appropriate response remains crucial in the softening the blow of COVID-19, particularly on the most vulnerable members of our society,” the NEDA said.

NEDA noted that attaining the higher-end of the forecast range is possible only “if we are able to stem the impact of COVID-19 and the enhanced community quarantine (ECQ) to the rest of the economy.”

“(If) the ECQ is extended beyond one month, or if the spread of COVID-19 is unabated even after the ECQ, then even the low-end of the estimate is still too high,” it added.

If the low-end of the estimate is attained, 2020 would mark the first contraction of the Philippine economy since the -0.6% recorded in 1998.

The government has yet to revise the 6.5-7.5% GDP growth targets for this year. The economy grew by 5.9% in 2019.

As of Tuesday afternoon, the Philippines had 552 coronavirus infections, with 35 deaths.

For the first quarter, Socioeconomic Planning Secretary Ernesto M. Pernia told BusinessWorld the economy could still expand by five percent despite the disruption caused by the Taal Volcano’s eruption in late January and the ongoing COVID-19 pandemic.

Mr. Pernia said growth drivers for this quarter will likely come from the government’s “Build, Build, Build” program, recovery spending for Taal, as well as pickup in public consumption due to low inflation, prior to the lockdown.

LOSSES
The NEDA study also showed the country stands to lose between P428.7 billion to P1.355.6 trillion in gross value added (GVA) or equivalent to 2.1%-6.6% of its gross domestic product (GDP) this year, “given the simultaneous adverse effects on the supply and demand side of the economy.”

Around 116,000 to 1.8 million jobs are expected to be lost, NEDA said,

The economic planning office estimates the month-long ECQ in Luzon could result in P298 billion to P1.086 trillion in foregone GVA, accounting for 1.5%-5.3% of GDP. Luzon accounts for 73% of GDP.

The transport and tourism industry will suffer the most, with projected GVA losses of P77.5 billion due to the widespread travel bans. Around 33,800 to 56,000 jobs in the industry will be shed.

“Household consumption is expected to decelerate until June as consumer confidence dips due to health concerns and social distancing measures. In particular, a 5% to 10% decline in household consumption of non-essential commodities,” NEDA said, noting this will result in P45.1 to P93.6 billion in foregone GVA.

The exports sector is projected to lose between P4.9 to P9.8 billion in GVA, if the Philippines’ top 10 exports dependent on China and three consumer products dependent on Hong Kong fell for one month at rates ranging from 11% to 100%). Job losses in this sector may rise to as much as 6,700. China is the country’s single largest trading partner, making up a fifth of the country’s total trade.

Remittances will also take a hit, as some overseas Filipino workers (OFWs) are expected to be laid off due to the global downturn.

“If 30% of OFWs employed in tourism and tourism-related services lose their jobs (around 100,000 employees) as demand in the tourism sector plummets worldwide for five months, we expect to lose approximately P5.7 billion in foregone remittances,” NEDA said, noting this will result in GVA losses of between P3.9 to P8.5 billion.

NEDA said the estimates are based on the assumption that the adverse impact will be felt until June, although the biggest impact will be seen during the ECQ that is scheduled to end on April 12.

“External trade, however, is expected to recover beginning March, though will still be affected by the ECQ,” it said.

DEFICIT TO WIDEN
According to the NEDA report, the government’s budget deficit could balloon to 4.4% to 5.4% of GDP this year.

“Aggressive efforts to contain COVID-19, including the Luzon-wide quarantine, could by itself add pressure on the country’s fiscal position. Even without additional spending, the estimated decline in GDP (2.1% to 6.6%) can increase the national government budget deficit to 4.4-5.4% of GDP in 2020, assuming the same revenue effort,” NEDA said.

The government also breached its 3.2% budget gap limit last year, after the fiscal deficit widened to a record P660.2 billion in 2019 or 3.55% of GDP, largely from the P494.4 billion last-minute spending surge seen in December.

However, Mr. Pernia, warned the government should be cautious in widening the fiscal deficit to GDP ratio past the five percent level to avoid repeating the fiscal crisis in 2004 which he said will be a “very difficult to recover from.”

This, as the government plans more than P200 billion in additional fiscal stimulus to contain the outbreak while supporting the economy.

“We just have to watch the fiscal picture because we don’t want a repeat of the 2004 fiscal crisis, ballooning budget deficit as well as ballooning debt. That’s going to be bad for the economy, it’s very difficult to recover from such a situation like what we had in 2004. In 2004, our budget deficit was upwards of 5% of GDP and the external debt exceeded 75% of GDP, and we had fiscal crisis then and it was difficult to recover from that situation,” Mr. Pernia told ANC in an interview on Tuesday.

State budget planners set a 3.2% limit on fiscal deficit to GDP ratio for this year until 2022. However, economic managers earlier said the limit could be breached amid higher government spending and could reach to 3.6% of GDP.

The government has rolled out its initial P27.1 billion economic stimulus package to help affected sectors, while Congress has approved a measure that will allow the President to realign savings from the 2020 budgets of agencies under the Executive branch.

“The response measures going forward should be re-configured to delicately balance the health and economic objectives, particularly as the impact varies by economic class. Otherwise, the situation could deteriorate to a social and political crisis,” NEDA said.

NEDA noted that widespread testing for coronavirus is the “key to a successful medical response.”

“A patient who is diagnosed earlier could be given care to prevent secondary infections. Moreover, early diagnosis will lead to early initiation of quarantine procedures and, therefore, limit or prevent the spread of the virus,” it said.

For the health sector, it said the government could build makeshift consultation facilities, set up health surveillance systems and provide financing to manufacturers that produces much-needed supplies such as personal protective equipment (PPE).

To mitigate the impact of the lockdown, NEDA said the government could provide regulatory relief through emergency funds or loans and amelioration funds to the travel and tourism sector as well as other affected businesses.

BSP pumps more cash into economy with cut in banks’ reserve requirements

March 25, 2020 | 12:31 am

THE Bangko Sentral ng Pilipinas (BSP) will slash the reserve requirement ratio (RRR) of universal and commercial banks by 200 basis points (bps) to release additional liquidity into the market amid the coronavirus disease 2019 (COVID-19) outbreak.

The Monetary Board (MB) also authorized BSP Governor Benjamin E. Diokno to cut the RRR of BSP-supervised financial institutions up to a maximum of 400 bps for 2020 in a special meeting on Monday, the central bank said in a statement released Tuesday.

The BSP said the RRR cut for big banks to 12% will take effect on March 30 and added it will issue guidelines on the adjustment.

“The RR cut is intended to calm the markets and to encourage banks to continue lending to both retail and corporate sectors. This will ensure sufficient domestic liquidity in support of economic activity amidst this global pandemic due to the coronavirus disease,” the central bank said.

Mr. Diokno said in a text message that the 200-bps reduction will release about P180 billion to P200 billion into the financial system.

The central bank said potential cuts to the reserve requirements for other banks and non-bank financial institutions will also be explored.

“To properly calibrate reduction in the RR, the MB likewise authorized the BSP Governor to determine the timing, extent, and coverage of the reduction in the RR, taking into consideration the impact of COVID-19 on domestic liquidity,” the BSP said. “The authority given to the Governor to adjust the RR allows the BSP flexibility to promptly address any possible liquidity strain in the industry.”

The reserve ratios of thrift and rural banks stand at four percent and three percent, respectively, while the RRR of non-banks with quasi-banking functions is at 14%.

In 2019, the BSP slashed RRR of big lenders by 400 bps. Mr. Diokno has said he wants to reduce big banks’ RRR to single digit level by the end of his term.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the RRR reduction will ensure credit and liquidity is available.

“Cash must continue to flow especially during these extraordinary times. We are, in a way, in a good place because we can still sort of ‘liquify’ the markets and keep the money flowing in the economy,” he said in an e-mail.

Mr. Asuncion added the BSP should cut other lenders’ reserve ratios “as soon as possible.”

“Do what is possible so that the economy can sidestep a potential recession in the next quarters,” he said.

For his part, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the additional liquidity from this fresh cut will support financial markets.

“Some of the peso funds may also be invested into the local financial markets, thereby could also somewhat help stabilize and support the local financial markets as well such as money markets, bonds, and other fixed income investments,” Mr. Ricafort said in an e-mail.

At this point, however, monetary policy is only one side of the equation in laying the groundwork for economic recovery, ING Bank N.V.-Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

“With central banks here and abroad [firing out stimulus], we wonder when the fiscal side will come in and join the rescue,” Mr. Mapa said in an e-mail.

The BSP last week cut rates by 50 bps to help boost the economy amid an expected slowdown due to the outbreak. This brought the overnight reverse repurchase rate to 3.25%, while overnight lending and deposit rates were trimmed to 3.75 to 2.75%, respectively.

On Monday, the central bank announced it will buy P300 billion in securities from the Bureau of the Treasury to help the government fund initiatives to help the economy weather COVID-19’s effects.

On the fiscal side, economic managers earlier announced a P27.1-billion stimulus package to help sectors most affected by the virus outbreak. — L.W.T. Noble

Fitch outlook on banking industry turns negative

March 25, 2020 | 12:30 am

FITCH RATINGS downgraded its outlook on the Philippine banking industry to “negative,” from “stable,” citing the growing fallout from the coronavirus disease 2019 (COVID-19) outbreak.

In a note sent to reporters on Tuesday, the global debt watcher said the outlook for the banking industry turned negative “in the face of rising asset-quality risks amid a deteriorating operating environment as a result of the global coronavirus outbreak.”

A negative outlook means that banks’ ratings might be downgraded in the short to medium-term or in about six months to two years.

“We also see pressure on revenue from declining interest rates and the resulting economic slowdown, as enhanced community quarantine on Luzon Island — which accounted for more than 70% of the nation’s output — dents business operations,” Fitch said.

“Lower revenue, in conjunction with slower credit growth, will weigh on banks’ profitability this year.”

The latest policy rate cut worth 50 basis points (bps) could put pressure on banks’ net interest margins (NIMs), Fitch added.

However, Fitch said that further reductions in the reserve requirement ratio (RRR) of banks could offset the yield compression up to a certain extent.

On Tuesday, the Bangko Sentral ng Pilipinas (BSP) slashed big lenders’ RRR by 200 basis points, effective March 30. The RRR for thrift and rural lenders was kept at its current levels of four percent and three percent, respectively, while those for non-bank financial institutions with quasi-banking functions was maintained at 14%.

In its note, Fitch Ratings outlined the BSP’s relief measures to cushion the impact of the pandemic on the banking industry, including increasing the single-borrower limit (SBL) to 30% from the initial 25%, the suspension of penalties for reserve deficiencies, as well as staggered booking of allowance for credit losses.

“Notwithstanding such measures, the weaker operating environment is still likely to exert pressure on loan quality, especially as the quality of recent rapid credit growth has not been tested over the course of an economic cycle,” Fitch said.

The debt watcher said that lenders that have higher exposure to small and medium-sized enterprises (SMEs) and tourism and hospitality sectors will face extra pressure on asset quality.

“The balance-sheet strength of large corporates, which make up the bulk of Philippine banking system loans, would for now help to cushion the impact on banks’ asset quality from a moderate slowdown in business operations,” Fitch said, but noted that “prolonged business disruptions could expose the banks to lumpy asset impairments.”

Fitch looked into the debt profile of listed companies to estimate the possible impact on banks’ asset quality.

“The proportion of ‘debt-at-risk’ — or those owned by non-financial corporates with interest coverage ratio of less than 1.2x — would only rise marginally from around 1% of total listed Philippine non-financial listed corporate debt at present if corporates earnings were to fall by 30%, but could jump to 57% assuming a uniformed 75% shock in listed non-financial corporates’ EBITDA, based on our estimates,” it said.

The default of big conglomerates will have “substantial repercussions on the banking system and the nation’s output, with total outstanding debt of listed non-financial corporates equivalent to around 35%-40% of GDP,” Fitch said.

Fitch said that Philippine banks are armed with enough loss-absorption and liquidity buffers to withstand moderate stresses in the system.

“Any negative rating implications, therefore, would depend largely on the extent the operating environment is likely to weaken and any material and sustained deterioration in asset quality, profitability and balance-sheet buffers,” it said.

Sought for comment, Fitch Ratings’ banking team clarified that they have not conducted a recent rating committee on Philippine banks.

The team noted that Issuer Default Ratings for the largest commercial banks including BDO Unibank, Inc., Metropolitan Bank & Trust Co., and Bank of the Philippine Islands were affirmed at “BBB-” as of October and November 2019.

Meanwhile, ratings of other lenders such as the Philippine National Bank and the China Banking Corp. were also affirmed at “BB+” late last year, “indicating that we have not taken into account recent developments into account.”

“The state-owned banks ratings (BBB/Positive) were revised this February, on account of revision in the sovereign rating outlook,” Fitch said.

Fitch placed the country’s credit rating at “BBB,” which is a notch above minimum investment grade, in December 2017. Meanwhile, it has upgraded its outlook for the country to “positive” from “stable” in February, which could mean that a rating upgrade could be kept or potentially upgraded. — Luz Wendy T. Noble

SB Corp. putting up P1-billion lending facility for small firms

March 25, 2020 | 12:07 am

SMALL Business Corp. (SB Corp.) is setting up a P1-billion loan program for micro and small enterprises that have been affected by the enhanced community quarantine in Luzon.

SB Corp. in a statement on Tuesday said the enterprise financing facility, under the Pondo sa Pagbabago at Pag-asenso (P3) program, will be implemented after the community quarantine declaration has been lifted by the national government or by the respective local government units.

Trade Secretary Ramon M. Lopez said the facility is under the government’s economic relief program for businesses affected by the new coronavirus disease 2019 (COVID-19) epidemic. The P3 program was allotted P1 billion in the P27.1 billion package to respond to the epidemic.

President Rodrigo R. Duterte last week announced a month-long Luzon lockdown in a bid to contain the spread of the coronavirus disease 2019 (COVID-19), closing most private business operations and banning public transport until mid-April.

The loan is open to micro and small businesses with at least one year of continuous operations by March 2020, and whose businesses “suffered drastic reduction” during the epidemic.

Loans can be used to recover losses such as updating loan amortizations for vehicle and other fixed asset loans, inventory replacement for damaged perishable stocks, and working capital replacement to restart the businesses.

Micro enterprises with an asset size up to P3 million may borrow between P10,000 to P200,000, while small enterprises with assets not bigger then P10 million may borrow up to P500,000.

The interest rate is 0.5% per month, and payments will be on grace period until “the economic crisis has abated.”

SB Corp. is also offering a month-long moratorium on loan payments for existing borrowers.

In a separate statement, SB Corp. said loan payments covering March 16 to April 14 2020 for micro-, small-, and medium-sized enterprise (MSME) borrowers and partner financial institutions (PFI) are on moratorium.

SB Corp. recognizes the impact of this public health crisis on the economy. This measure is to help our MSME borrowers and PFIs defray their expenses and focus on providing for the needs of their employees and businesses,” SB Corp. President and Chief Executive Officer Ma. Luna C. Cacanando said.

SB Corp’s MSME borrowers and PFIs within areas under the lockdown are eligible to apply for the moratorium.

Borrowers may also request to pay only the interest portion of monthly payments for the succeeding six months, and resume regular payments after. Loan terms may also be extended, depending on the situation.

SB Corp. said that it reserves the right to impose a shorter grace period or an extension of the loan term if merited by business developments.

Ms. Cacanando said SB Corp.’s decision on each request “shall take into consideration economic realities on the ground.”

SB Corp. is the financing arm of the Department of Trade and Industry. — Jenina P. Ibañez

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