Breakthrough athletes to be given special awards at PSA event

March 3, 2020 | 6:37 pm

By Michael Angelo S. Murillo
Senior Reporter

YOUNG and breakthrough athletes will get their share of the spotlight at the Annual Philippine Sportswriters Association Awards Night on March 6 at the Centennial Hall of the Manila Hotel.

Tennis phenom Alex Eala, gymnastics gold medal winner Daniela dela Pisa, future grandmaster Daniel Quizon and ace swimmer Miguel Barreto are to be conferred the Milo Junior Athletes of the Year award.

It is in recognition of their exemplary performance in their respective fields which brought not only individual recognition for them but also pride to the country.

Eala, 14, made tennis history for the country after winning the 2020 Australian Open Juniors women’s doubles title along with Indonesian partner Priska Nugroho.

The two beat the pair of Ziva Falkner of Slovenia and Matilda Mutavdzic of the United Kingdom in straight sets, 6-1, 6-2 to win the title.

Eala’s historic run and her strong performance in the singles’ competition gave her a total of 1,718.75 points to catapult her to fourth in the world currently from a previous career-best ninth.

With her steady ascent in the rankings, Eala is expected to be able to compete and see more action in high-level women’s tournaments in her bid to further improve her game.

Dela Pisa, meanwhile, provided one of the feel-good stories and standout moments in the 30^th Southeast Asian Games which the country hosted in December.

The 16-year-old Cebu native bagged a gold in the hoop final of the women’s rhythmic gymnastics competition of the recent biennial meet. It was the only gold produced by Filipino gymnasts outside of the two won by Olympic-bound Carlos Yulo (artistic all-around and floor).

Making her feat more impressive was the fact that when she was four years old Dela Pisa survived ovarian cancer and continued to pursue her passion for the sport.

Apart from a gold medal, she also won a pair of bronze in the rhythmic ball and clubs, respectively, at the SEA Games.

After winning gold in the U16 standard competition of the Eastern Asia Youth Chess Championships in Bangkok in August, 14-year-old Quizon earned an International Master title.

He was likewise the best-placed Filipino in the blitz side event of the Asian Continental Chess Championship in China in June where he toppled three Grandmasters in Wan Yunquo and Liu Yan of China, along with Venkataraman Karthik of India.

Quizon is the youngest in the top 20 Filipino chess players in the country today.

Barreto, meanwhile, distinguished himself as the most bemedalled athlete in last year’s Palarong Pambansa by winning a total of seven gold medals in anchoring the National Capital Region’s dominance over at the pool.

The 16-year-old pride of Malolos, Bulacan highlighted the feat by shattering the record in the boys’ 200-meter freestyle and 100-meter butterfly.

He was also part of the Philippine swimming team, which advanced to the men’s 400-meter freestyle in the SEA Games.

UST clinches fourth straight UAAP men’s judo title

March 3, 2020 | 6:36 pm

UNIVERSITY of Santo Tomas leaned on both a rookie and a seasoned senior to turn it around and edge out University of the Philippines, claiming its fourth straight UAAP men’s judo title on Sunday at the SM Mall of Asia Arena.

The Golden Judokas garnered 18 points off two golds, a silver, and a bronze in the day’s events to slip past Day 1 leaders Fighting Maroons, for a 34-32 final count.

League debutant Gabriel Ligero’s run set the tone for the day, stopping heavy favorite David Gordon of De La Salle University in the quarterfinals of the featherweight class. He eventually topped rookie Miguel Gonzalvo in the finals to claim an important gold for UST.

Ligero and his teammates went into the mats with no pressure despite the deficit going into the day. “Lagi lang sinasabi lang sa ‘min ni coach to play our best. Kung mananalo hanggang gold, eh ‘di better. ‘Yun lang naman din.

“Pinu-push pa rin naman kami ni coach na mag-champion. May mga natatalo, pero hindi namin sila hinahayaang matapos sa isang game. Pinapabawi namin sila sa mga next,” he continued.

Senior Eric Uy and sophomore Rafael De Leon finished 1-2 in the lightweight class to lead Ateneo de Manila University’s charge during the second day. They were in title contention but eventually finished in third place with 23 points.

UP needed to take both the golds in the extra-lightweight and half-lightweight class in order to end a 12-year drought, but only Edward Figueroa emerged with a title.

The graduating Fighting Maroon took care of a Ryan Benavides, who went into the final tired after a marathon semifinal against UP’s Hyesung Lee, to bag the -66 kg gold.

Russel Lorenzo needed to fend off UP sophomore Paolo Cruz in the -60 kg final in the golden score round to seal UST’s fourth straight crown.

Ligero, with his heroics and dominant showing, claimed the Most Valuable Player award. Meanwhile, middleweight gold medalist and Fighting Maroon Jayvee Ferrer bagged the Rookie of the Year title.

“Sa ‘kin, gusto ko lang mag-champion, paulit-ulit. ‘Yun lang naman ‘yung nasa isip ko. Masaya kasi first time ko, tapos champion ulit kami. Bonus na lang ‘tong kung ano man ‘tong mga nakuha ko,” the season MVP declared.

Fallorina barges into Last 64 of Predator-Volturi 9-Ball Cup

March 3, 2020 | 6:36 pm

MARK “Iron Fist” Fallorina toppled Rodel Adona, 6-3, to qualify in the tough Round of 64 of the Predator-Volturi 9-Ball Cup 2020 tournament at the AMF-Puyat Makati Cinema Square, Makati City over the weekend.

Fallorina relied on his solid breaks to reach relatively easy runouts and maintained the hot winning form.

“My opponent [Rodel Adona] was really good. He deserves to win too,” said Fallorina, a habitue of Top Cue Billiards Hall in Speaker Perez, Quezon City.

“I just played based on my experience.” added Fallorina, who dedicated his victory to his wife Mary Ann Chavez and his daughters Samantha and Sabrina and his sponsor/manager architect Eric “Teod” Salud.

Other cue artists moved on to the knockout phase include 14-year-old Dartagnan Philippe Bonode, Jun Cornista, William Brillantes, Ge Novales, Jaynard Orque, Alvin Barbero, Jaime Evangelista, Jean Berne, AJ Manas, Carlo Paniqui, Raffy Septimo, King Hubaldo, Richard Paraiso, Nimrod Ceniza, Albert Albano, Jomar Aribas, Jet Rabe, Aris Rosario, George Cajara, Jay Francis Cruz, Noel Cruz, JR Magpantay, Mone Velez, Darwin Canapi, Bryan Flores, Pat Galleto and Ren De Vera.

Bernie Regalario and Eric “Billiard Cop” Bayhon, earlier joined fellow Wilde Blu stablemate Bastien Cyril Olanda, Sofhia Rosales and James Lim in the Last 64.

The tournament is organized by the Makati Pool Players Association (MAPPA) and offers P250,000 in cash and prizes at stakes.

The remaining players in contention will vie for the P40,000 top prize. The runner-up will get P20,000 while the third and fourth placers will settle for P15,000 and P10,000 cash prices, respectively.

Cebu Country Club opens defense of Interclub title

March 3, 2020 | 6:36 pm

BACOLOD — With its tight, bending fairways and greens that are glass-like, Marapara will be the venue of the first and final rounds of the 73^rd playing of the Men’s Philippine Airlines Interclub championship.

And without needing to say so, that’s where the tournament will be decided. As gusts howl at this time of year, the par-71 course designed by the late great Golem Silverio will be the beast that the Championship field would need to tame, as, like in the talented Senior division won by Canlubang, scores aren’t expected to be low for the week.

Both layouts are in perfect shape and vary in character, with Binitin — aside from its thick tree-lined roughs — having unpredictable bounces on its fairways and small greens as its final line of defense.

Cebu Country Club (CC) will open defense of the premier crown coming from a lower division in the Founders bracket, as it would try to write a piece of history that only it can own with another win this year.

On home soil last year, Cebu CC surprised the field by also coming from the Founders class, leading from the first day and never relinquishing it to duplicate what only Aguinaldo did in 1988.

Winning again this year would make Cebu CC as the only team to do it twice, and playing skipper Bayani Garcia is optimistic that they have the tools — and the preparation — to pull it out back-to-back.

“Everyone that has come here has come very well prepared,” Garcia said. “Whether we play in the Championship or the Founders (division), we will give it our best shot and we are confident that we can do it.”

Player point averages (PPAs) of teams determine what division it will land in, and with Cebu CC losing three of its regulars to personal reasons, it was relegated to the Founders and left Manila Southwoods, Luisita and Del Monte in the Championship derby.

Southwoods will be shooting to touch off another title streak here as it brought in a team loaded with firepower. Japanese Yuto Katsuragawa spearheads the team, which activated Vince Lauron to join Jun Jun Plana as the veterans and steadying presence of a very young yet talented squad.

Del Monte and Luisita will be fielding teams made up of its grassroots program.

Hosted by the Philippine Airlines, the international event was backed by platinum sponsors Asian Air Safari, Vanguard Radio Network, Fox Networks Group, Radio Mindanao Network, Inc., Asian Journal Publications Philippines, Inc., Auto Nation Group, Inc. (Mercedes Benz), and SMDC.

Major sponsors include The Boeing Co., University of Mindanao Broadcasting Network, Avolon Aerospace Singapore Pte Ltd, Manila Broadcasting Co., Primax Broadcasting, Rolls-Royce Singapore Pte Ltd, CIGNAL TV, Inc., Travellers International Hotel Group, Inc. (Resorts World), and Airbus.

Other supporters are Uniglobe Travelware Co., Inc. (The Travel Club), Philippine Manila Standard Publishing Inc. (Manila Standard), Officine Corp., GE Aviation, SEDA Hotels, BDO Unibank, Smart Communications, Inc., People Asia Magazine, A+E Networks Asia (History), Allianz PNB Life, Phoenix Petroleum Philippines, Tanduay Brands, Rockwell Land Corp., Petron Corp., Splash Corp., AB Heineken Philippines Inc. and Asia Brewery, Inc.–Summit.

Detours

March 3, 2020 | 6:35 pm

When the season-opening PBA Philippine Cup unfurls later this week do not be surprised if as it progresses it makes detours in the cities of Manila and Pasig.

This, after the Philippine Basketball Association expressed its interest in bringing some of the games at the refurbished Rizal Memorial Coliseum in Manila and PhilSports Multipurpose Arena in Pasig apart from the usual league venues in the metro of Smart Araneta Coliseum and Mall of Asia Arena.

Both Rizal Memorial and PhilSports Arena were used as venues for the 30^th Southeast Asian Games which the country hosted last December and underwent significant renovations.

They were recently inspected by PBA personnel and reports have it that they came away impressed and are considering bringing league matches in said venues.

Being a long-time fan of the PBA, I surely welcome this planned detour to Rizal Memorial and PhilSports Arena, incidentally both managed by the Philippine Sports Commission (PSC).

I think it is a great opportunity to bring the league to the people in those parts of the metro who may find going to Araneta and MOA too much of a stretch considering, among other factors, the kind of traffic we have in Metro Manila.

I had the chance to check out the newly refurbished Rizal Memorial during the SEA Games and the recently held Badminton Asia Team Championship, and I must say I was impressed with what they have done with the venue.

When I was there some work is still being done but they were basically wrap-up work.

The “new” Rizal Memorial, with fully functioning air-conditioning system and comfortable seating, can surely accommodate a good-sized PBA crowd.

Bringing the PBA there will surely expose more people, especially the younger ones, to the rich history of the venue which was host to many marquee sports events in the past.

It can also help the PSC generate more funds, stemming from the income the games would generate, while also benefitting business in the surrounding areas.

Parking may be an issue at the moment in the venue especially with the expected work in the Harrison Plaza area, but all in all the PBA in Rizal Memorial is a good proposition.

The same goes for PhilSports Arena, or “ULTRA” for those in the same age bracket as me.

ULTRA was used to be a steady home to the PBA in the late ‘80s and early 1990s before the league moved to the Cuneta Astrodome in Pasay and back to Araneta.

With its location in the middle of the metropolis I think it can lure more people from the north and south as well as those from Pasig, Mandaluyong, San Juan and Rizal areas.

Like Rizal Memorial, facilities in PhilSports have improved and spectators trekking to the venue can bask in them as they enjoy the games.

Parking, too, is not so much a problem like back in the day with areas like the nearby Capitol Commons having ample parking slots, apart from the different dining areas in the place.

While it remains to be seen if the PBA does push through with plans to make detours to Rizal Memorial and PhilSports Arena, still, considering the upside these have it is worth exploring and making a go at.

Make it happen, PBA.

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@bworldonline.com

Finding their stride

March 3, 2020 | 6:35 pm

The Heat haven’t exactly had a good run since the turn of the year. After taking the National Basketball Association by storm with its overachieving ways to start the 2019–20 season, they promptly went a middling eight and six in January. They appeared to have righted the ship to start the next month, only to absorb three different losing skeins of three, two, and two games to finish five and seven. A glaring inability to both hold on to seemingly comfortable leads and play up to par in the crunch had them struggling to hold on to provisional fourth in the East.

For head coach Erik Spoelstra, however, it was just a matter of time before the Heat would again find their stride. After all, they boast of a clearly defined culture that emphasizes work long before the klieg lights are turned on, and that values collective over individual objectives. From the Tim Hardaway to the Alonzo Mourning to the Shaquille O’Neal to the Dwyane Wade to the Jimmy Butler eras, talent and the results it produces have worth only if they lead to team success. Which was why the outcome of their match yesterday didn’t surprise him even as it left just about everybody else in shock.

Indeed, the Heat didn’t just win. They won over the Bucks, who had hitherto been running roughshod over the competition. And they didn’t just win over the Bucks. They won in convincing fashion, turning a close first-half battle into a foregone conclusion with steady play en route to the final buzzer. To the delight of the 19,600 at the American Airlines Arena, the visitors wound up uncharacteristically outhustled. All-Star Giannis Antetokounmpo, a veritable cinch to repeat as league Most Valuable Player, was held to a decidedly inefficient 13 points on six-of-18 shooting from the field.

Ask Spoelstra, and he’d tell you the triumph was no fluke. For the record, it was the second for the Heat in as many meetings with the Bucks. Simply put, they possess the tools, not to mention the resolve, to take the measure of the erstwhile bullies. And, moving forward, the feat may yet provide the spark they need to meet the playoffs with momentum. In the short term, it may well restart their quest to take the second seed in the East; their third consecutive victory has them just three and a half games behind the reeling Raptors with still 21 left to play.

Admittedly, the Heat can likewise backslide and fall to sixth in conference standings. They’re not likely to, though — not when they’re psyched anew, and not when their conquest of the Bucks underscores their capacity to stand toe to toe with the best of the best. They’ve already equaled the win total of their 2018–19 campaign, and they’re not about to stop.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Think long-term for your financial security

March 3, 2020 | 12:00 pm

Some opportunities only come once in a lifetime. With the release of CIMB Bank Philippines’ (CIMB Bank PH) new ‘One Shot at Love’ short film, the digital bank wants to show every Filipino out there looking for love how having good saving habits can make them ready for those unexpected, life-changing moments.

The film tells the story of the typical working-class millennial: hard-working, future-oriented… and bored. The routine of every day gets exhausting, and without someone special to spend them with the days just blur on by until the next paycheck.

But life’s biggest moments hardly ever come with warning. You never know what each day can bring. But when the opportunity of a lifetime comes knocking on your door, you’d be happy to have some money in the bank to seize it.

Whether it’s for an unexpected plane ticket, for the capital for a new business, or for the funds to supplement a scholarship application, money allows freedom. This is the true meaning of financial inclusion — to give Filipinos the ability to seize the opportunities that life throws their way.

Bringing more Filipinos towards financial inclusion

Since its foundation in December 2018, CIMB Bank PH has aimed to bring more Filipinos towards financial inclusion. As an all-digital, mobile-first bank, it has served around two million customers since its first year of establishment, earning its reputation as the most awarded digital bank in the country in 2019, securing eight international awards, including Global Finance’s Best Digital Consumer Bank, Asian Banker’s Best Digital Bank, and International Finance’s Fastest Growing Digital Bank Award.

The all-digital bank seeks to empower Filipinos by giving them access to flexible, innovative products and services specifically designed to prepare them for every opportunity. Through the CIMB Bank PH mobile app, Filipinos can open a savings account and apply for a personal loan without the hassle of waiting in line or the extensive paperwork required by traditional banks.

Applicants can open an UpSave account seamlessly in 10 minutes, anytime all-year round, all without an initial deposit, minimum balance, nor any penalty charges for anytime withdrawal.

To help more Filipinos in their financial journey, UpSave account holders also have access to one of the highest savings interest rates in the market at a no-time-limit 4% per annum — 1600% higher than other major banks in the country. Account holders with P100,000 and above average daily balance can also get free life insurance coverage worth up to P2 million.

CIMB Bank PH’s digital model further accounts for Filipinos’ increasingly busy work schedules by forming strategic partnerships with local payment gateways, giving their account holders access to over 8,000 convenience partners to make their transactions, or withdraw in over 20,000 ATMs nationwide for free.

The all-digital bank eliminates the barriers of traditional borrowing methods offered by other banks through an all-digital loan application system. No need to appear for a personal review, as the system allows for initial loan approval of up to P1 million (with a minimum of P30,000), with zero processing fees and no hidden charges. Loans are payable within 12 to 60 months, providing flexibility and ease of mind for borrowers.

Giving everyone a chance to take charge of their life

Financial inclusion, after all, is giving every Filipino the chance to take charge of their life and make the decisions they need to create a better future.

How many people in the distant provinces remain unbanked without a choice? How many businesses failed to get off the ground because of a lack of capital? How much savings have been lost to inflation due to low interest rates?

With an always-accessible mobile app, best-in-market rates, and a hassle-free loan application system, financial inclusion for every Filipino might not be so far away.

“Highlighting how financial literacy is a main component of CIMB Bank’s operations in the Philippines as the company fulfills its mission in bringing Filipinos closer to their next step of achieving a comfortable future while enjoying today,” said CIMB Bank Philippines Chief Executive Officer Vijay Manoharan.

CIMB Bank PH is the newest member of the CIMB Group, one of ASEAN’s leading banks and is present in over 16 global markets. With the establishment of CIMB Bank PH, CIMB Group is able to extend its reach and transform the Filipino banking experience.

To know more about CIMB Bank PH, click here or download the app for Android and iOS.

Manufacturing purchasing managers’ index of select ASEAN economies, February (2020)

March 3, 2020 | 12:33 am

FACTORY ACTIVITY in the country improved in February to reach a 13-month high driven by sustained growth in output and new orders, despite delays in shipments from China due to the coronavirus disease 2019 (COVID-19) outbreak. Read the full story.

Factory activity hits 13-month high in Feb.

March 3, 2020 | 12:33 am

IHS Markit reported on Monday its Philippines Manufacturing purchasing managers’ index (PMI) slightly rose to 52.3 last month from 52.1 in January. This was PMI’s fastest pace in 13 months or since December 2018’s 53.2. Last month’s record also matched January 2019’s print.

“February survey data signalled a continuation of respectful growth across the Philippines’ manufacturing sector. Firms are enjoying resilient demand conditions, both domestically and abroad, with anecdotal evidence that pipeline work remains sufficient to support the positive production trend in the near term,” Joe Hayes, economist at IHS Markit, was quoted as saying.

The headline PMI measures manufacturing conditions through the weighted average of five indices: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%). A PMI reading above 50 denotes improvement in operating conditions compared to the preceding month, while a reading below 50 signals deterioration.

IHS Markit attributed the country’s improved headline PMI to a “modest” rise in output backed by “sustained growth in new orders from both domestic and overseas clients.”

“By increasing further above the neutral 50 mark, this was indicative of a faster rate of improvement in manufacturing sector operating conditions. That said, although the headline index reached its highest mark in just over one year, it remained below its historical average,” the report read.

Output volumes continued on an upward trend, but IHS Markit said the growth rate was “modest” and “little-changed” from the three-month high recorded in January.

IHS Markit said new orders rose by its fastest pace since October 2019, driven by higher demand for Filipino-manufactured goods and increased workload to foreign markets.

“COVID-19 poses a downside risk, but this seems to have been isolated to the supply-side so far as exports grew at the fastest rate in over one-and-a-half years,” Mr. Hayes said.

However, work backlog fell to its slowest pace in nearly four years, as shipments of raw materials from China were delayed. IHS Markit noted that February survey data “showed input delivery times lengthening to the greatest extent since December 2017,” adding to companies’ woes such as stock shortage and power outages.

“Given that stocks of purchases have risen strongly in recent months, firms should have appropriate buffers in place to withstand delivery disruptions, but if they continue, production volumes could be adversely impacted,” Mr. Hayes said.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said last month’s PMI was a “surprise” amid a “potential downturn of global manufacturing due to the COVID-19 outbreak.”

“This uptick is despite the decline of PMIs in neighboring countries, like Malaysia, Thailand, Vietnam, South Korea, Japan and China, and the cause of which was primarily because of the COVID-19 epidemic that originated from China,” Mr. Asuncion said in an e-mail.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the pick up in PMI last month may have been due to optimism after the phase one of the US-China trade deal was signed on Jan. 15, as well as the “positive effects of increased government spending, especially the catch-up plan on infrastructure spending.”

RECORD LOWS
Asia’s factories took a tumble in February under the weight of the rapidly spreading coronavirus outbreak, with a severe plunge in activity in China driving down output across the region.

China’s Caixin Media and IHS Markit purchasing managers’ index dropped to 40.3, its lowest reading since the series began in 2004, according to figures released Monday. South Korea’s PMI, a critical bellwether of global demand, dropped to a four-month low of 48.7 from 49.8 in January, while the Jibun Bank Japan index declined to 47.8, the lowest reading since May 2016.

Asia’s exporters see production woes amid coronavirus outbreak

Taiwan dropped below 50, the dividing line between expansion and contraction, while Thailand and Malaysia stayed in that territory. Vietnam’s PMI fell to a more than six-year low of 49. India’s Markit PMI cooled in February from the previous month’s level, which was the highest in almost eight years.

The factory sentiment data shows how the virus is rippling through the region, disrupting supply chains and depressing demand. Travel restrictions are widespread, schools and businesses are shuttered in parts of the region and governments are scrambling to provide stimulus to shore up their economies.

China’s official PMI plunged in February to a record-low 35.7 from 50 at the start of the year, according to data released Saturday. The big decline signals a worse-than-expected first-quarter contraction, with Nomura Holdings Inc. economists led by Lu Ting projecting the economy shrank 2.5% in the first three months of the year from the previous period.

For China, “evidence of factories re-starting — albeit very unevenly and tentatively — means that the recovery will be somewhat short of a resounding V-shaped rebound,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “The bigger picture of a tepid recovery from brutal seizures remains.” — B.M.Laforga with Bloomberg

Government spending to soften virus blow — analysts

March 3, 2020 | 12:32 am

By Luz Wendy T. Noble
Reporter

HIGHER government spending will probably cushion the effects of a deadly coronavirus outbreak on the Philippine economy, according to analysts.

Improved tax collection would also keep the budget deficit in check and maintain debt levels low amid an outbreak that has killed about 3,000 and sickened 88,000 more, mostly in China, they said.

“The pickup in infrastructure spending in (December) 2019, after a slow start at the beginning of the year suggests strong government commitment towards meeting its infrastructure targets,” Sagarika Chandra, associate director at Fitch Ratings’ Asia-Pacific Sovereigns team, said in an e-mailed reply to questions.

“If the strong pace of infrastructure spending is maintained this year, it would bode well for growth,” she added.

State expenditures in December surged by 57.83% to a record P494.4 billion, while revenue grew by 4.77% to P243.3 billion, according to the Bureau of the Treasury data.

The budget deficit widened to a record P660.2 billion in 2019 as a result of the government spending mainly for infrastructure projects and social protection programs.

The full-year budget gap breached the P620-billion deficit programmed for the year, and was 18.27% higher than the deficit in 2018. The deficit was 3.55% of the gross domestic product (GDP), exceeding the 3.25% limit for the year.

“The unexpectedly large rise in government spending at the end of 2019 provides some comfort that fiscal expenditure can provide a buffer against the negative impact of the coronavirus outbreak on exports, tourism and other sectors of the Philippine economy,” Christian de Guzman, senior vice-president of Sovereign Risk Group at Moody’s Investor Service said in an e-mail last week.

“At the same time, an increase in revenue on the back of higher taxes effective at the beginning of the year helps to ensure that deficits will not widen more significantly, keeping debt levels in check,” he added.

The government collected P2.827 trillion in taxes last year, missing its P2.955-trillion goal. It seeks to collect P3.3 trillion this year.

Socioeconomic Planning Secretary Ernesto M. Pernia on Monday said the budget deficit was likely to settle at 3.5% of GDP this year, adding that “we have to borrow more to accommodate it.”

He added that higher state spending this year could offset the effects of the coronavirus disease 2019 (COVID-19) outbreak on the economy “to some extent.”

The outbreak could dent growth in the next two quarters by an average 0.3 percentage point, the central bank said last month.

Bangko Sentral ng Pilipinas would be re-assessing the impact of the virus as it spreads to more countries outside China including Italy, South Korea and Iran, Governor Benjamin E. Diokno said last week.

The National Economic and Development Authority last month said the tourism sector could lose about P22.7 billion in monthly revenue because of the outbreak.

The Tourism department had estimated P42.9 billion in losses from February to April as flights got canceled and events were postponed.

The government eyes growth of 6.5-7.5% this year after a 5.9% economic expansion last year.

NEDA: Virus fallout could shave 1-pct point off GDP growth

March 3, 2020 | 12:31 am

SOCIOECONOMIC Secretary Ernesto M. Pernia on Monday said the economy could take an even bigger hit if the coronavirus disease 2019 (COVID-19) outbreak persists until yearend, estimating a one-percentage point reduction in 2020 gross domestic product (GDP) growth.

On Monday, Mr. Pernia told reporters that the National Economic and Development Authority (NEDA) revised the preliminary estimates of the COVID-19 outbreak’s impact on the economy. Earlier this month, NEDA said it estimated a 0.7 percentage point loss in GDP growth if the outbreak continues until end-2020.

The NEDA chief said the assessments were made based on a scenario where inbound Chinese tourists will be cut by 100% and foreign tourist arrivals will be reduced by 10%, while trade will be “drastically reduced.”

“The impact of travel and tourism as well as trade, assuming that travel and tourism will go down to zero from China and 10% reduction from other countries, and trade will also be drastically reduced, our preliminary estimate is that, just the direct effect, 0.3 percentage point to one (percentage point)… of percentage point of GDP growth,” Mr. Pernia said on the sidelines of an event in Pasay City on Monday.

“That’s direct effect eh, we haven’t taken into account the indirect effect and the multiplier effects, maraming (there are many) multiplier eh, that could still go up.”

NEDA earlier estimated that 0.3% could be shaved off GDP growth this year if the COVID-19 outbreak lasts until June. This only took into account the impact on travel and tourism sector, not the effect on imports and export.

Mr. Pernia said the Development Budget Coordination Committee (DBCC) will meet “soon” to review its macroeconomic assumptions and projections.

The Philippine government is targeting 6.5-7.5% GDP growth this year.

To offset the negative impact of COVID-19, the NEDA chief said the government could increase its spending and accommodate a wider deficit of 3.3-3.5% of GDP.

Asked if higher state spending can offset the negative impact of the virus to the economy, Mr. Pernia said: “To some extent but not entirely.”

To accommodate wider deficit, the government will have to borrow more to offset possible lower revenue collections due to the impact of the virus.

“Our revenue from (the Bureau of) Customs will also go down so we will have less fiscal space to help. Well, I don’t know how it’s going to be done when it comes to cash transfers. Mahirap ang cash transfers (cash transfers are difficult). We will try to scale up domestic tourism (since it) has a higher impact,” Mr. Pernia said when asked on possible plans to help affected sector.

Meanwhile, Philippine National Bank’s (PNB) research unit said the Philippines could suffer a “modest losses” worth $12.2 billion or equivalent to two percent of total production in 2017 due to disruptions in global supply chains by the COVID-19.

“Using production data from the ADB’s input-output tables (2017), we estimate a potential, annual production (not value added) loss of $12.2 billion (2% of 2017 production) assuming we miss out on 100% of China imports (non-oil) and limited substitutes are found,” PNB Research said in a report released on Monday.

PNB Research said the estimated opportunity loss is “modest” and could be offset once COVID-19 abates.

“Unlike a negative shock due to natural disasters, recovery from COVID-19 downside risks does not require infrastructure repair nor capacity restoration,” it added.

PNB Research slashed its growth outlook for the economy this year to 6.2-6.4%, from the 6.6% projection it gave before the COVID-19 outbreak started. — Beatrice M. Laforga

BSP chief not ‘totally’ ruling out another rate cut

March 3, 2020 | 12:30 am

BANGKO SENTRAL ng Pilipinas Governor Benjamin E. Diokno said it may be more apt to push for fiscal stimulus rather than monetary easing as the government looks to shield the country against the economic fallout from the spread of the coronavirus disease 2019 (COVID-19), even as he said a policy rate cut may still be on the table this year.

“At this time, maybe the fiscal stimulus is much more effective than monetary stimulus. Kasi if you’re going to stay at home…then you’re not going to spend money, wala masyadong stimulus d’un (Because if you’re staying at home, then you’re not going to spend money. There will be no stimulus from that end),” Mr. Diokno told reporters on the sidelines of his book launch held in Pasay City on Monday.

“On the other hand if…we accelerate the Build, Build, Build program, mas effective ’yun (it will be more effective) to address the slowdown,” he said.

The government targets gross domestic product (GDP) growth of 6.5-7.5% this year, coming from a 5.9% expansion in 2019 which fell short of the minimum six percent goal.

Economic managers have said GDP growth could take a hit from the virus, with the extent of the impact dependent on how long the outbreak persists.

Despite this, Mr. Diokno said another 25-basis-point (bp) cut is still on the table for the year, adding that they will assess anew the impact of the virus on the economy during the Monetary Board’s policy-setting meeting on March 19.

Amid the continued spread of the COVID-19, Mr. Diokno said that they are not “totally ruling out” another cut, but this will depend on their assessment of risks from the virus outbreak.

“The 50 [bps] that I promised last year, we’re done with 25 [bps]. That’s still on the table. And we’re going to meet on March 19. So we’ll see what’s happening,” Mr. Diokno said.

The BSP chief said in December that the BSP is looking to cut rates by 50 bps this year as they continue to unwind the 175 bps in hikes done in 2018 amid rising inflation.

The Monetary Board on Feb. 6 already cut rates by 25 bps as a “preemptive move” as COVID-19 caused fears of a possible economic slowdown in financial markets. This followed the 75 bps worth of cuts done in 2019.

The rates on the BSP’s reverse repurchase, overnight lending and deposit facilities now stand at 3.75%, 4.25%, and 3.25%, respectively.

Mr. Diokno previously said the country has enough fiscal and monetary space, which will allow the government to help soften the blow from the spread of COVID-19.

“To me there are many other things that we can do, like maybe yung (reforms on) ease of doing business… [Those are] the things we need to do with or without the COVID-19 virus,” he said on Monday.

“Let’s do it now habang (while) the whole world is in shambles so that, as I said, when things recover, then we will be stronger,” Mr. Diokno added. — L.W.T. Noble

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