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Market assessments: Hearing, heeding, and healing as one

Market assessments of the Philippine economy’s prospects for this year and the next, are commonly grim and underlined by pessimism.

Real GDP slipped by 0.2% in the first quarter 2020. It is expected to further decline in the second quarter.  For the rest of the year, some modest deceleration in recession is very likely. With a very low base this year, real output growth could easily bounce back to positive territory next year.

The National Government expects a -2% and -3.4% recession. International financial institutions and bank analysts are more pessimistic.

For instance, ADB projects real GDP at -3.8% (-2.3 to -5.3%), lower than the IMF’s -3.6% forecast. ADB cites the country’s strict lockdowns and the corresponding job losses totaling about 20% of the labor force, or about 7.3 million workers, as the basis. ADB claims that around five million Filipinos were pushed below the poverty line. It projects that consumption expenditure will definitely sag but that the “worse is most likely over now with the gradual opening of the economy.” With a possible bottoming-out in May 2020, based on indicators such as cement and vehicle sales, merchandise exports and imports, and the purchasing manager’s index, ADB concludes that for the Philippines, “recovery could be fragile (with a) protracted U-shape in 2020 and 2021.”

The IMF revised its modest forecast of the Philippine recession. When 2020 began, it announced a 0.6% growth forecast. Now, the IMF is looking at a 3.6% decline. It cites COVID19-related supply disruptions and weaker demand in the country’s major trading partners. The Fund also believes that in the Philippines, resolution of the pandemic would be gradual, and therefore, the economic hit would be more adverse as compared to other countries.

Credit rating giants, Moody’s and Fitch, are on the same wavelength. But their assessments differ on the extent of the downside.

Moody’s forecast is -4.5% real GDP for 2020. On a positive note, it expressed trust and confidence in the Philippines’ growth track record; prudent economic and fiscal management; and the robust banking system. Moody’s suggests that our strong buffers such as fiscal reforms and debt stabilization would serve us in good stead ahead. For this reason, Moody’s maintained our investment grade credit rating at Baa2, two notches below A3, with a sovereign outlook of “stable.”

Fitch was more ruthless in its assessment. While it expected the economy to slide by a smaller 4%, it nonetheless downgraded the credit outlook for some banks; assessed the near-term outlook for macro and fiscal as worse; and business conditions and profitability as weaker.

On the part of HSBC, private banking managing director and chief market strategist for Asia, Cheuk Wan Fan announced that “the economy will face the deepest downturn in 30 years. Currently, we project (Philippine) GDP to contract by 3.9% this year.” HSBC also cites pandemic restrictions for causing a steep downturn in private consumption and fixed investment. These two important drivers are projected to drag the Philippine economy into a deep recession.

These assessments and predictions are, sadly, not at all surprising.

Rather, what is baffling is how some segments of governance — specifically, Congress and the Health Department — do not seem to be acting on the grim forecasts with urgency. They would rather pick bones with social media posts and bloggers, actions not befitting a leadership who must guide and protect the people in a time of war and crisis.

We also stress that the duration and severity of the country’s variously labeled-lockdowns are a function of the weakness of our public health system and management. Our level of preparedness for any pandemic was considered lowest among the ASEAN 6. Among other indicators, that our health system is not close to fighting form was emphasized last April when Dr. Robert Dennis Garcia of the Makati Medical Center explained the need for an extended lockdown: “LGUs, hospitals, healthcare systems and the continuing education of our people are still far from ideal.”

Thankfully, the IATF did not heed the business sector’s advice to lift the quarantines much earlier. Otherwise, we would have even more infections and deaths given our abysmal capacities to test, trace, and treat.

Good thing, too, that we did not follow the World Bank’s suggestion of “sustained yet moderate social distancing — but not a lockdown.” Crowds in depressed communities and wet markets in both urban and rural areas truly discount the feasibility and effectivity of this suggestion. This prescription ignores that this pandemic assaults the many poor among us.

Gradual loosening of restrictions with specific safeguards and hygienic measures was thought to be sufficient to avoid the spread of the disease and limited resumption of economic activity. But even with these measures, infections and deaths now continue to rise alarmingly!

Consider the following: it took months before the Health department and the Food and Drug Administration gave the go signal to use the UP-developed test kits. Wasted was the golden opportunity to accelerate testing of suspected COVID-19 victims, and facilitate both tracing and treatment when infections were not as overwhelming as they are today.

If the situation were not so deplorable, we could just grin at Foreign Affairs Secretary Teodoro Locsin’s frank admission of the health sector’s ineptitude. On the lockdowns, he said: “Yes, it was wasted; that’s accepted by the IATF; partly paralysis, partly self-satisfied health bureaucrats — none competent…” While the Philippines was among the first to recognize the viral surge in January, Locsin argued that the problem was the Government “turned over the solution to health bureaucrats — the inert merchants of death.” Strong words from a co-equal member of the Cabinet. The irony of battling Presidential alter-egos!

We are wiser today and know that Sweden’s liberal approach did not prevent the upward march of the coronavirus. Herd immunity was not definitively established. Singapore and Korea had to re-impose lockdowns because of viral resurgence. Recent reports indicate that the virus continues to mutate. Immunity of those previously infected appears short-lived. No one can lightly dismiss COVID-19 as being just like the ordinary flu or pneumonia.

Vietnam’s pandemic management, though, is enviable. A Reuters account explained it well: “Vietnam was successful because it made early, decisive moves to restrict travel into the country, put tens of thousands of people into quarantine and quickly scaled up the use of tests and a system to track down people who might have been exposed to the virus.”

Vietnam did its homework early. With all of the preemptive measures, this nation of 95 million people supported the initial lockdown with quick fortification of its health sector. The Vietnamese were never left clueless and confused. Texts and various apps were leveraged by the Government to update civil society of daily progress in the battle against the virus. With less than 500 infections and zero deaths, Vietnam has all the basis for gradually opening up and accommodating business activities.

This was not done in the Philippines. Our health issue was addressed along military and police tracks with long lags and no leads.

Last April, The New York Times published a helpful study with criteria for reopening economies. The report was based on a study by health, law, security, and medicine experts — Scott Gottlieb, Caitlin Rivers, Mark McClellan, Lauren Silvis and Crystal Watson. It listed four guidelines for safe economic reopening:

1. Ability of hospitals to treat patients without assuming a crisis level of care;

2. Ability to promptly test everyone with symptoms;

3. Ability to effectively monitor confirmed cases and contacts even through cell phones; and,

4. Visible, sustained reduction of infection for at least 14 days.

It is obvious that these are all health parameters in the hands of health authorities and of Congress which holds the purse strings of the budget. With greater commitment and focus on the mandate to safeguard public health, economic recovery would be less complicated.

Will the country’s economy amount to something in 2020 and 2021?

Secretary Sonny Dominguez assures that “the Philippines has wielded enough fiscal space ahead of the deepening coronavirus crisis.” Whether this could indeed allow the Government to spend big on its strategy would be up to Congress. Implementation, decisiveness, and strategic management of public health must be carried out by a more competent Health Department.

Market assessments paint grim scenarios for the Philippines. Congress, and other line agencies must hear, heed, and address them AS ONE. Hearing and heeding these assessments and suggestions as one is a necessary and indispensable prerequisite for healing as one.

Otherwise, it is merely rhetoric and just a catchy slogan.

 

Diwa C. Guinigundo is the former Deputy Governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was Alternate Executive Director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Dismantling the oligarchy

 

An oligarchy is governed by a few families and individuals. While wealth is indeed among its members’ more obvious attributes, wealth alone does not make an oligarch. The capacity to influence or control government and governance does.

An oligarch is therefore someone who, by virtue of birth, wealth, religious affiliation, or control over the coercive powers of the state (the police, military, and judiciary) is able to influence government or even rule it in furtherance of his or her individual, family, and class interests, as well as those of his or her associates. If their failure to convince or influence Congress into renewing the ABS-CBN franchise is any indication, the Lopezes, as wealthy as they are, hardly qualify as oligarchs.

During the Martial Law period (1972-1986), Ferdinand Marcos’ cohorts were aptly known as cronies — those individuals who were more than the dictator’s and his family’s friends. They were also his most trusted accomplices and collaborators, who were able to amass wealth because of their closeness to him.

But neither the oligarchy nor cronyism were Marcos creations. The Philippines has always been ruled by a few — the handful of families whose sons and daughters, other kin and in-laws have monopolized political power in this country since the Commonwealth period. Some of these families do fade into obscurity, but they are soon replaced by others — by upstarts such as Marcos was, who have gained enough means to run for public office and to use it to recover the resources they spent campaigning for it, and to accumulate even more. The term “oligarchs” aptly describes them, although some prefer to call them “bureaucrat capitalists.”

What’s wrong with an oligarchy is quite simply it’s being no more than the control by a few over governance, and therefore their capacity to decide and shape the present and future of a country’s population, rather than the majority of that population’s deciding its own fate by delegating their sovereign power to do so through its chosen, duly- and wisely-elected representatives. An oligarchy is antithetical to democracy, which in contrast means the rule of the many.

Though they may not know it, the dismantling of the oligarchy — the rule of the few — is in the interest of the millions in the Philippines who are mired in poverty, injustice, ignorance, and misery that the political dynasties and their foreign overlords have been inflicting on them for decades.

In one of his most recent speeches, President Rodrigo Duterte claims to have done exactly that — to have demolished the oligarchy. The Presidential Communications Operations Office (PCOO) edited out of the transcript of his speech in Jolo before the military his admission — no, his boast — that he achieved this earthshaking feat by quite simply shutting down the free TV and radio operations of ABS-CBN network. Those present, including journalists, heard it, and audio recordings from various non-government media organizations prove he did say something to the effect that because the network offended him, he had vowed to demolish the oligarchy if he wins the Presidency — and that that is exactly what he did, without, he crowed, declaring martial law.

Mr. Duterte’s boast that the ABS-CBN shutdown is his doing came barely a week after the House Legislative Franchises Committee rejected by a vote of 70 to 11 to renew the network’s franchise. Before the committee vote, the House leadership had repeatedly assured the public that the House, being an independent body, its committee would vote according to the merits of ABS-CBN’s case. Mr. Duterte’s spokesperson also declared that he is neutral on the issue.

Few believed either. Mr. Duterte had been threatening to do all he can to stop the renewal of the ABS-CBN franchise since he came to power in 2016. His last declaration about it was in December last year, when he vowed to see to it that it would be “out,” and also suggested that the Lopezes should just sell the network.

The significance of Mr. Duterte’s admission goes beyond merely confirming once again his power over a supposedly co-equal and independent body of government. It re-affirms as well that Philippine governance is in the control of a few and that, rather than demolishing the oligarchy, government is itself still the oligarchy that it has always been since Commonwealth days.

Additionally, however, because Mr. Duterte’s iron hold on the three branches of government is a reprise of Ferdinand Marcos’ total control over government during the Martial Law period, it also raises the question of how far the systematic destruction of the Republic has proceeded since 2016.

The fundamentals of that Republic after all include the system of checks and balances that’s premised on the independence of the legislative, judicial, and executive branches of government from each other, as well as representative government’s reflecting and heeding the wishes of its constituents.

The latter principle was of no moment to Mr. Duterte and his House cohort. They ignored the widespread call among the citizenry for the renewal of the ABS-CBN franchise, which a Social Weather Stations poll established is at 75%. And as if to further add to the suspicion that it wasn’t to demolish the oligarchy but to further strengthen it that ABS-CBN has been denied a franchise, one of Mr. Duterte’s House allies echoed his December proposal for the Lopezes to sell the network, and said that he would then support the grant of a franchise to the new owners.

Both the suggestion and the statement imply that what the regime wants is not only to get the Lopezes “out,” but also to transfer ownership of the network to someone or some group that’s “friendlier” and more acceptable to it — and who or which will transform ABS-CBN from a news provider into just another public relations flack of government like the PCOO and the state media system it controls.

And then there’s also Mr. Duterte’s saying while he was in Sulu last week that he would be more than happy should those friends of his who have been “helpful” to him grow even richer, adding that they would have to sit down and talk with him “because there is so much that we can do business” (sic).

His spokesperson, who at one point had falsely claimed that the denial of the ABS-CBN franchise was “the decision of the Filipino people,” was quick to deny it. But the only term that best describes Mr. Duterte’s encouraging those close to power to benefit from government by further enriching themselves, and his saying that they (Mr. Duterte and friends) “can do business” is — cronyism.

No one should be under the illusion that the shutdown of ABS-CBN has put an end to the oligarchy. On the contrary. It has widened the field of choice for Mr. Duterte’s friends, whoever they are, not only to enrich themselves further by adding the network to their billions in investments, but also to influence and shape public opinion through the facilities of the largest, most watched, heard, and most influential broadcast complex in the country of our despair.

To dismantle the oligarchy and make democratic rule a reality in these isles of fear, the real oligarchs and their cronies will have to start with themselves. But as this country’s decades-long experience and the failure of any anti-dynasty bill to make it in Congress has shown, that’s about as unlikely to happen as the return of civility and some sense in government.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

The world’s biggest case of Stockholm syndrome

In 1973, a year after Martial Law was declared in the Philippines, Jan-Erik Olsson bungled a robbery at the Kreditbanken bank in Stockholm, Sweden. He thereafter took four hostages, until the Swedish police subdued him six days later.

Then something strange happened.

The former hostages: three women, one man, started showing public support for Olsson. They talked of his kindness and how they were actually more scared of the police. They described having opportunities to escape but didn’t take them. They refused to testify against Olsson, visited him in prison, and even raised money for his defense.

That specific incident puzzled psychiatrists and led them to studying what is now known as the “Stockholm syndrome.” Celia Jameson, in the Journal of Cultural Research (2010), defines it as “a condition in which hostages develop a psychological alliance with their captors during captivity.” In other words, when the captive or hostage starts having positive feelings toward their captor or hostage taker. It is not, as LiveScience points out, a psychological disorder. Rather, it is a “psychological concept used to explain certain reactions.”

In a 1995 study led by University of Cincinnati’s Dr. Dee L. R. Graham, Stockholm syndrome is said to occur when the following conditions are present: the captive feels a perceived threat to their survival at the hands of their captors; the captive perceives small kindnesses coming from their captors, such as receiving food or not getting hurt; the captive is isolated from perspectives other than those of their captors; and the captive feels unable to escape from the situation.

Stockholm Syndrome is different from domestic abuse, as well as “trauma bonding” (i.e., loyalty or positive feelings toward a person who is destructive) in this one key aspect: in Stockholm Syndrome there is no previous relationship between hostage and captor.

Oftentimes, the symptoms of Stockholm syndrome involve having positive feelings towards the captor, negative feelings toward loved ones and authorities, and supportiveness towards the captor.

Those suffering from Stockholm syndrome may even justify or look for any reason — no matter how implausible — for continued captivity, and feel anger at those seeing reality and seeking freedom. They may even refuse to cooperate or work against those trying to help them.

Stockholm syndrome can happen within institutions as well. Psychology Today’s James Ullrich wrote of the “Corporate Stockholm Syndrome,” which happens when employees of a business begin to “identify with — and being deeply loyal to — an employer who mistreats them.”

The suffering employee “typically displays a tendency to become emotionally attached to the company to the detriment of their own emotional health. The employee will also rationalize to themselves and to others the employer’s poor treatment of them as necessary for the good of the organization as a whole, and angrily defend the employer’s actions when those actions are questioned by an outsider.”

Now this is significant because if a corporation or organization can trigger Stockholm syndrome among its employees, then there’s no reason why it cannot be done on a massive scale by a government on its citizens. And, interestingly enough, this has been indeed brought up before regarding the Philippines.

In “Philippine foreign policy afflicted with Stockholm Syndrome” (The Nation, 2018), it describes the Philippines behaving as if with Stockholm Syndrome in relation to China: “Philippine relationship with China is abusive. Imagine a farmer with a bully neighbor: The bully takes over the choicest part of the farm and then fences it. The bully proceeds to harvest all the fruits and crops in the area. Each time the farmer mentions the encroachment on his farm, the bully threatens him. In such a case, the victim would go to the police. But that will make the perpetrator look bad, and, as noted, victims afflicted with Stockholm Syndrome do not want to do that.”

So it’s no big leap to see that the Philippine population, under lockdown for 124 days as of today, may possibly — just possibly — be exhibiting the biggest Stockholm Syndrome in history.

Never mind that we have the world’s longest lockdown, never mind (as the YouGov/Imperial College survey pointed out), that Filipinos (at 92%) are amongst the world’s most compliant in wearing masks, never mind that the Google COVID-19 Community Mobility Report found Filipinos reducing activity and staying at home by as much as 90% at one time. It is — still — the “pasaway” Filipinos fault for the present dire situation.

What is tragic is that many Filipinos irrationally accept they’re to blame. They’re actually happy to continue this lockdown, with closed schools and churches, even lose their jobs. Constitutional rights are viewed as luxuries kindly gifted by the government. And anyone having the temerity to say that our present situation goes against science, reason, and sheer good sense are met with furious anger.

Psychologists and psychiatrists, of course, would know better, but that seems pretty much like a national Stockholm syndrome right there.

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

Eight ways ASEAN consumer habits will change by 2030 — shaped by COVID-19, tech and more

By Praneeth Yendamuri and Zara Ingilizian

WHILE COVID-19 will cause a significant economic impact with potential GDP contractions in 2020 and likely spill over to 2021, the long-term fundamentals of the 10 Association of Southeast Asian Nations (ASEAN) member states are on the cusp of a tremendous leap forward in socio-economic progress. Over the next decade, the region will be the world’s fourth largest economy, with a $4-trillion consumer market. While each of the 10 member states will evolve differently, all of them will offer abundant opportunities for growth.

The Future of Consumption in Fast-Growth Consumer Markets, a project in collaboration with Bain & Company, focuses on the emerging markets that comprise more than 40% of the world’s population. After studying China in 2017, India in 2018, for 2019-2020 it turned its attention to the ASEAN.

For now, the ASEAN region is in the throes of the health, humanitarian, and economic crisis resulting from the COVID-19 pandemic. A majority of ASEAN CEOs surveyed by Bain in April predict that COVID-related restrictions will last through Q3 and Q4 2020, with economic recovery in mid-2021.

The pandemic has caused noticeable changes in consumer behavior. Some of those changes bring short-term volatility while others will alter consumer relationships and spending patterns in the longer term. Overall, eight consumption themes will emerge across the ASEAN, in the post-pandemic world, with slight nuances in each country:

• Consumer spending will double, driven by ASEAN’s middle-class boom. While the looming recession triggered by COVID-19 will dampen consumer sentiment and reduce overall spending within the year, this behavior will self-correct as economies move into recovery. The Asian Development Bank (ADB) estimates Southeast Asian annual GDP growth to fall to 1% in 2020 and rebound to 5% in 2021. However, by 2030, 70% of the ASEAN population will be middle-class. The middle-class boom will more than double consumption in the region.

• Boundaries of premium and value shopping will blur. Consumption behavior has changed significantly as many communities quarantine across ASEAN. Disaster-preparedness categories and daily essentials spiked, while luxury and non-essential spending experienced a dip with a possible slow recovery. Goods focused on convenience and well-being are likely to see high demand persist even post-recovery.

Over the next decade, many of ASEAN’s new consumer class will buy their first luxury product and be willing to pay a premium for convenience, well-being and personalization. At the same time, they will seek more value for money, more than 60% of high-income consumers surveyed by Bain in 2019 rating price as a top purchase criterion.

• Digital ubiquity will become the norm. The pandemic is accelerating the digital future, with many consumers making their first digital purchases and existing consumers spending more time online. Across the region, total streaming time over mobile phones grew 60% from Jan. 20 to April 11 this year. In Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, consumers clock an average 4.2 hours of mobile screen time daily, or 1.2 times the global average, with the younger generations spending up to five hours, according to a report from Hootsuite. The abundance of information and choice will accentuate consumer repertoire behavior. Bain consumer research finds that roughly 65% will switch brands if their favorites were not available.

• Technology will tear down socio-economic walls. The COVID-19 pandemic will accelerate the digital transformation process as governments and businesses strive to provide connectivity and everyday essentials to vulnerable communities. As rural and low-income communities gain access and exposure to similar information as their urban and higher-income counterparts, digital will begin to homogenize consumer behavior. It will remove barriers for small businesses to flourish, enable delivery of basic services such as healthcare and education, and provide access to products with better price, quality, and assortment. Bain research finds that poor populations will be more financially included, leapfrogging directly to e-wallets at up to three times the current adoption rate by 2030.

• Local and regional competitive winds will prevail. Fully 80% of Indonesia’s consumers prefer local brands to global brands, especially in food categories. The trend will continue, even in times of crisis, as communities look to #SupportLocal. During COVID-19, local food and beverage conglomerates are also at an advantage, as consumers tend to prefer large, trusted brands — they look for lower prices, availability, and security, and prefer brands that offer farm to factory visibility. In a continuing trend, Korean, Japanese, and Chinese brands are gaining popularity over western brands. These brands are capturing significant market share — from 57% in the Philippines to 74% in Indonesia in 2019 — in categories such as beauty, fashion, and smartphones, according to Euromonitor.

• Shoppers will move beyond omni-channel to expect omni-presence. The pandemic is likely to expedite the shift, especially in categories and consumer groups that were previously more resistant to e-commerce. COVID-19 has led older consumers to make their first online grocery purchases, and many enjoy the convenience of home delivery. This is the first step toward a change in channel preferences. Overall, e-commerce is likely to grow at double-digit rates, accounting for roughly 13% of retail by 2030, close to US penetration today, according to research from both Bain and Forrester. While social distancing has taken a toll on offline channels, convenience stores and traditional trade will remain relevant, evolving to offer services beyond retail such as digital financial services or last-mile delivery for e-commerce. For now, though, some small retailers who work on credit and rely on foot traffic will run out of cash and are unlikely to recover if they do not receive support.

• Convenience will be the new currency. Two out of three urban consumers in the ASEAN rank convenience as one of their top three criteria for purchases, according to a Bain survey. Also, two out of three consumers are willing to give up data privacy for convenience. These findings suggest that there is a huge opportunity for “super-apps” and FinTech to streamline across such verticals as shopping and food delivery.

• Sustainability will be non-negotiable. While 80% of ASEAN consumers in one Bain offline consumer study said they value sustainability and have made changes to their lifestyle to be more eco-friendly, the pandemic could trigger a short-term reversal of sustainability trends. Cash-strapped governments and businesses across the ASEAN are likely to put sustainability goals on the back burner as they focus on jumpstarting the economy. Yet there may be tailwinds that are longer lasting. For example, telework is showing organizations that they can reduce travel, allowing employees greater flexibility and reducing air pollution for a healthier ASEAN in 2030.

The ASEAN is poised to become a dramatic consumption opportunity, driven by four mega-forces: strong demographic trends; rising income levels; geopolitical shifts increasing foreign investment; and digital advances opening new consumer markets. Achieving this vision requires dedicated collaboration across stakeholders, through innovative and inclusive business models supported by a favorable policy environment. The private sector will be required to prioritize consumer relationships and sustainability. For its part, the public sector will need to create trade and investor-friendly reforms, invest in socio-economic inclusion through talent development, and upgrading infrastructure for a connected and sustainable future. These public-private partnerships are critical to unlock the full potential of ASEAN and to safeguard the region’s future as one of the three fastest-growing consumer markets in the world.

This article originally appeared on the World Economic Forum Global Agenda.

 

Praneeth Yendamuri is a Bain & Company partner and Zara Ingilizian is Head of Shaping the Future of Consumption and member of the executive committee, World Economic Forum.

Westbrook returns to practice

NBA team scrimmages resume

HOUSTON Rockets point guard Russell Westbrook participated in his first practice Wednesday since clearing the National Basketball Association’s (NBA) coronavirus quarantine protocol.

He said he was “thankful and blessed” to rejoin his teammates to prepare for the upcoming restart at the ESPN Wide World of Sports Complex near Orlando.

The nine-time All-Star announced his positive COVID-19 test on July 13. He told reporters Wednesday he was largely asymptomatic “other than a stuffy nose.”

“I’ve been at home, trying to be productive,” he said. “Obviously, not able to get on the basketball floor, but finding ways to stay active, doing as much conditioning as I can probably do. We’ll see (the conditioning level) when I get out there, but that’s the last thing that I worry about. I’m in pretty good shape, so I should be all right.”

Coach Mike D’Antoni said Westbrook could participate in Friday’s scrimmage against the Toronto Raptors.

“Whatever he wants is cool,” D’Antoni said. “He knows his body. Again, we’re not talking about just a normal athlete. We’re talking about a super athlete, and I sometimes underestimate it. … We rely on him and the medical staff to make an informed decision, and whatever that decision is, we’ll go with it.”

The Rockets resume the season on July 31 against the Dallas Mavericks.

Westbrook, 31, averaged 27.5 points, 8.0 rebounds and 7.0 assists in 53 games before the season came to a halt on March 11 amid the pandemic.

Westbrook is in his first season with the Rockets after being acquired in a trade with the Oklahoma City Thunder last summer. He played 11 seasons with the Thunder, highlighted by a 2016-17 campaign in which he earned MVP honors after averaging a career-best 31.6 points to go along with 10.7 rebounds and 10.4 assists.

SCRIMMAGES RESUME
Meanwhile, NBA team scrimmages resumed on Wednesday in Orlando since the league suspended the season on March 12 because of the COVID-19 pandemic.

Winning their matches were the Los Angeles Clippers, who defeated the Orlando Magic, 99-90.

Also going away with a win were the Denver Nuggets over the Washington Wizards, 89-82; New Orleans Pelicans over the Brooklyn Nets, 99-68; and the Miami Heat over the Sacramento Kings, 104-98.

The NBA is set to resume its season on July 30 at the ESPN Wide World of Sports Complex in Orlando. — Reuters

NBA, Titan ink multiyear merchandising partnership

LOCAL National Basketball Association (NBA) fans looking for authentic league merchandise will once again have their fill beginning next month after the NBA and Titanomachy International, Inc. (Titan) inked a multiyear merchandising partnership to relaunch the official online NBA Store in the Philippines. 

In an announcement made on Thursday, the NBA said it is very thrilled to partner with Titan in bringing to Filipino fans anew official league products.

“Our partnership with Titan provides an exciting opportunity to engage and deliver an enhanced digital retail experience to NBA fans in the Philippines,” said Lesley Rulloda, NBA Asia associate vice-president of global merchandising, in a statement.

“We look forward to providing passionate Filipino fans with unprecedented access to authentic NBA products through the relaunch of the league’s online store,” she said.

Under the newly forged partnership, Titan will operate NBAStore.com.ph, which will go live beginning Aug. 6.

The online store will offer a comprehensive selection of authentic NBA merchandise from all 30 teams, including jerseys, shirts, footwear, headwear, outerwear, accessories, and equipment from brands including Nike, Jordan Brand, Mitchell & Ness, New Era, Herschel, Spalding and Stance.  

Titan said in a separate statement that it welcomes the opportunity to link up with the NBA for the online store, seeing the endeavour as being in line with its thrust as an organization.

“At Titan, our mission is to inspire consumers to love the game through the best basketball products, stories and experiences,” said Mike Ignacio, managing director of Titanomachy International, Inc.

“Our newly forged partnership with the NBA will enable us to cater to a wider range of Filipino basketball fans and equip them with new ways to express their love for their favorite teams, players and league.”

The league’s 25th branded international online store, NBAStore.com.ph will offer special collections and exclusive product releases highlighted by locally designed apparel.

During the launch, the store will showcase the NBA Philippines Tees Collection, featuring four unique designs inspired by the country’s premier NBA fanbase and passion for the game of basketball.

For more information, fans can visit www.nbastore.com.ph and follow NBAStore.com.ph on Facebook and Instagram. — Michael Angelo S. Murillo

Ceres-Negros to be renamed as United City Football Club; PFL, Global meet

Ceres-Negros FC will play under the name United City Football Club when the fourth season of the PFL unfurls after the completion of the transfer of ownership of the club.

By Michael Angelo S. Murillo, Senior Reporter

Top local football club Ceres-Negros FC is set to be renamed as United City Football Club following the completion of the transfer of  ownership of the team to a group of private investors which is managed by MMC Sportz Asia.

In an announcement made on Thursday, MMC Sportz said it has cemented the agreement to take over from the group of Ceres-Negros  owner Leo Rey Yanson and continue to participate in the fourth season of the Philippines Football League (PFL) under a new name.

To recall, Mr. Yanson and the Ceres group had decided to leave the PFL as the ongoing coronavirus disease 2019 (COVID-19) pandemic made it hard for them to sustain the team in a manner they wanted to.

Ceres-Negros leaves the PFL as the lone champion the league has known to date, winning the title in each of the PFL’s first three seasons, and as one of the top teams in Southeast Asia.

“We would like to thank Mr. Yanson and his team for agreeing to the transfer of the club into our name as this allows the players to continue participating in the Philippines Football League and hopefully also in the AFC Cup for the 2020 season,” said Eric Gottschalk, CEO of MMC Sportz Asia, in a statement.

“We will now immediately apply for the permission with the PFF (Philippine Football Federation) to rename the Club to ‘United City Football Club’ and request the PFF to support our statement of intent to continue participating in the AFC Cup,” he added.

The MMC Sportz official went on to say that they recognize they have big shoes to fill since Mr. Yanson and his group accomplished a lot in football in the country but they are determined to establish their own mark in the league.

Mr. Gottschalk said they are now in the process of negotiating with the Ceres players and staff and are hoping to keep the team intact as much as possible.

“The aim is to keep the team and staff together as much as possible, and allow them the well-deserved chance to continue to play football amid all the challenges that everyone has been facing,” he said.

PFL-GLOBAL MEETING
Meanwhile, the PFL met with management of Global FC on Thursday to find workable solutions to complaints lodged against the club over non-fulfilment of contractual obligations to players and staff.

In the meeting, Global addressed the allegations raised against it and expressed its commitment “to settle all overdue payables to players and staff within the next 10 days.”

The PFL also said the PFF Club Licensing First Instance Body, the PFF’s decision-making body responsible for the issuance of licenses to Professional Clubs, shall convene prior to the start of the league to discuss the status of Global and its participation.

“It is highly important for the league to preserve the integrity among clubs. Players are the league’s primary stakeholders and so we should treat issues such as these with utmost importance. I trust the club to resolve all these issues before proceeding with further plans,” said PFL Commissioner Coco Torre following the meeting.

Team OG’s N0tail grateful for how esports journey is panning out

By Michael Angelo S. Murillo, Senior Reporter

ONE of the top esports players in the world right now, Johan “N0tail” Sundstein of OG said he is grateful for how his career has shaped up so far and how the sacrifices he has put in to improve his game is steadily bearing fruit.

Recently met a small group of local media via Zoom call as part of the recent staging of the Red Bull R1v1r Runes event, N0tail, 26, shared that his journey in esports, which he describes as a “natural process” for him, is something that he is very proud of and happy about.

Started doing games at a very young age as a hobby, N0tail, a two-time The International champion and team captain of OG, is now basking in playing against the best gamers in the world and having the opportunity to inspire others through what he does.

“I always loved games. So I played games before it became a sport. I played ever since I was a baby basically. I think it was a natural process for me. We went to tournaments where we paid for ourselves to go there and stay there, bringing our own stuff,” said N0tail of his early days in esports.

“So it started from a place where we just wanted to do it, a hobby. We started playing for mouse pads, headsets and now it’s at a whole new level where we’re playing for huge amounts of money. It went from a hobby you pay for to something you do for a living. It has been a long road [but it’s worth it],” he added.

But while he has had a lot of success doing esports, N0tail admits that succeeding in it is not going to be a walk in the park, and that one has to really want it badly and put in the needed time and effort to make it work.

“It’s a competition. Not everybody’s gonna make it. And that is a harsh reality. In competitions there are winners and there are losers. It’s rough. I cannot really recommend it (esports) if you’re not the type who takes risks. Because going into it has a lot of risks,” said the gamer from Denmark.

“If you want to succeed in it you have to want it. You have to want it really badly to have a chance. Even if you want it, it doesn’t mean you’re gonna make it. But if you don’t want it you’re not gonna make it. Motivation should really be out of this world. You can’t be afraid of failing although failure can really hurt,” he added.

N0tail went on to share that the ongoing coronavirus disease 2019 (COVID-19) pandemic has made it challenging even for those who are engaging in esports but he is nonetheless thankful that they are in such a field during these trying times.

“I think esports is in a way better shape than other physical sports. Sports in general are used to offline events and [benefitting from] fans coming into the stadium. They are obviously having a harder time than we are. We come from a place where we are used to having online tournaments, doing things purely online and when corona happened all streaming entertainment platforms have these opportunities to thrive and exist. Yeah, corona hit everybody hard but it’s a good day doing this,” he said.

Meanwhile, N0tail lost to Ateneo student Zedrik “Jeff” Dizon, 2-1, in their Red Bull R1v1r Runes Civil War one-on-one joust early this week.

Mr. Dizon got the chance to face N0tail after topping the regional qualifiers here.

Red Bull R1v1r Runes takes places on a custom map built in the DOTA 2 environment and pits players in a fast-paced 1-versus-1 mirror battle that rewards intuition and the ability to make quick decisions. The first player to achieve three kills or collects the first kill on an enemy T1 Tower wins the match.

Marcial excited over concurrent boxing journey

RECENTLY signed a deal as a professional boxer, Tokyo Olympics-bound fighter Eumir Felix Marcial said work is cut out for him as he juggles duties both as a pro and a national athlete but expressed readiness for it.

Now part of Manny Pacquiao (MP) Promotions after inking a six-year deal with the group, Mr. Marcial, 24, is now preparing to live his pro boxing dreams while keeping his focus on his gold medal quest at the rescheduled Olympic Games next year.

While the setup presents several challenges, Zamboanga native Mr. Marcial said he is fully aware of what he has gotten himself into and is determined to make it work.

“As a boxer, I’m always ready to train. I’m also excited to fight in the pros and to continue my training with my coaches for the Olympics. I’m ready any time,” said Mr. Marcial during his session at the online Philippine Sportswriters Association Forum last Tuesday where he was joined by MP Promotions President Sean Gibbons.

Mr. Marcial, who booked a spot in the Olympics last March at the 2020 Asia and Oceania Olympic boxing qualifiers in Jordan, said he is going to take it one step at a time in his pro boxing career, working his way up and eventually fighting the top names in the 160-lb division (welterweight).

Recognizing the unique situation Mr. Marcial is in as a “pro-Olympian fighter,” Mr. Gibbons reiterated their support for the former, especially since the contract Mr. Marcial signed with MP Promotions was built around the Filipino’s desire to still continue representing the country in various sporting tournaments like the Southeast Asian Games, Asian Games and the Olympics while parlaying his wares in the professional ranks.

The MP Promotions president said that the first year of Mr. Marcial’s contract would largely be dedicated to complementing his preparations for the Games.

They are currently working with the boxer for the best possible arrangement for his training, including considering Mr. Marcial’s request to bring over his coaches from the amateur ranks, like Don Abnett and Ronald Chavez, citing familiarity, as well as in consideration of the current situation with the coronavirus disease 2019 (COVID-19) pandemic.

“We are working with Eumir and the federation (Alliance of Boxing Associations of the Philippines),” said Mr. Gibbons.

Mr. Gibbons went on to say that they do not see Mr. Marcial’s decision to turn professional getting in the way of what he wants to accomplish in the Olympics.

MP Promotions is looking to give Mr. Marcial a couple of fights before he plunges to exclusive Olympic training next year.

“Right now, we’re looking at possibly three fights. Hopefully, we do something in October and then take it from there,” said Mr. Gibbons. – Michael Angelo S. Murillo

Nominations for sports tourism awards now open

WHILE the coronavirus disease 2019 (COVID-19) pandemic has effectively limited the conduct of sporting activities in the country, the people behind the annual Philippine Sports Tourism Awards (PSTA) still opened the nominations for this year’s edition of the event with the end view of pushing for the sector’s recovery.

Organized by Cebu-based Selrahco Management and Consultancy Services, and supported by the Department of Tourism and the Philippine Sports Commission, the Awards will honor sports groups, private entities and government agencies based on events organized or hosted in 2019.

The only one of its kind in the country, PSTA encourages professionalism in the planning and management of sporting events to help promote tourism.

Categories open for nominations are Sports Tourism Destination of the Year, Sports Tourism Organizer (private and government), Sports Tourism Event (domestic and international), Sports Tourism Sport Association, Sports Tourism Destination Marketing, Sports Tourism Hotel, Sports Tourism Event Sponsorship, Sports Tourism Charity Event, Sports Tourism Airline, Sports Tour Operator, Adventure Event, Sports Venue, Sports MICE Event, and Sports Media Coverage.

Two special awards will also be given to prominent sports personalities in the private and government sector.

PSTA founder and president Charles Lim said that with the opening of the nominations for the Awards they hope sports and sports tourism stakeholders will be inspired to do whatever they can in pushing for gradual recovery of the sector from the impact of the COVID-19 pandemic.

Previous winners in the PSTA awards include Ironman 70.3, Sunrise Events, Philippine Football Association, Tabuelan 111, SunPiology, the Philippine Inter-Island Sailing Federation, Clark Development Corp., Subic Bay Metropolitan Authority, Province of Cebu, City of Dumaguete and the Municipality of Lubao (Pampanga).

Also winning awards are Philippine Airlines, Cebu Pacific Resorts World Manila, Shangri-La’s Mactan Resort and Spa, and the Automobile Association Philippines.

For more information on the PSTA nominations, e-mail gabe.selrahco@gmail.com or contact 0906-4067051 or 0949-4628108. — Michael Angelo S. Murillo

NBA scrimmages

The first set of scrimmages in the National Basketball Association’s bubble environment got under way yesterday. To be sure, the four matches on tap weren’t representative of the quality expected from the restart to the 2019-20 season. That said, teeming fans deprived of pro hoops competition since it was halted by the novel coronavirus pandemic last March were willing to overlook the fact that they bore witness to more misses than makes, and more miscues than moments of marvel. They understood that all and sundry still needed to adjust to the demands of full-bore action, not to mention the unique court setup at the ESPN Wide World of Sports Complex in Orlando, Florida.

Considering the circumstances surrounding the league’s efforts to complete its interrupted campaign, yesterday’s set-tos proved remarkable in and of themselves. With infection a continuing threat, their completion sans incident served to inject more optimism into what can best be described as an experiment. Health and safety measures are constantly being checked and, when necessary, fortified. On the flipside, they are also constantly being challenged — not out of a desire to highlight their failings, but by human nature.

Indeed, the so-called bubble can burst anytime. Daily testing and the willingness of players and personnel to adhere to set regulations have so far led to zero positive results, but the threat of a breach can never be eradicated. It takes only one adverse development for the fragility of the campus to be exposed. And, creditably, the NBA is ready; because not all employees of the Walt Disney World are within its purview, it, in fact, expects infection to be a matter of when and not if. What it’s gearing up for, while armed with no small measure of hope: containment.

In this regard, the league is candid at best. It doesn’t yet know at what point in a breach will it be compelled to halt proceedings anew. After the restart, up to how many players in quarantine will it accept? And “who” may even be more important: What if, for instance, reigning and presumptive Most Valuable Player Giannis Antetokounmpo tests positive for the virus? It’s only proper for officials to discuss these and countless other scenarios this early, and, at the same time, understandable for them to have no solutions — at least not yet.

Amid all the haziness, one thing’s clear, though: The eventual champions will have earned their spoils. If there is any asterisk accompanying their achievement, it will be in recognition of their capacity to hurdle unprecedented obstacles.

 

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.

China launches independent mission to Mars

WENCHANG, China — China successfully launched an unmanned probe to Mars on Thursday in its first independent mission to another planet, a bid for global leadership in space and a display of its technological prowess and ambition.

China’s largest carrier rocket, the Long March 5 Y-4, blasted off with the probe at 12:41 p.m. (0441 GMT) from Wenchang Space Launch Centre on the southern island of Hainan.

The probe is expected to reach Mars in February where it will attempt to deploy a rover to explore the planet for 90 days.

If successful, the Tianwen-1, or “Questions to Heaven,” which is the name of a poem written two millennia ago, will make China the first country to orbit, land and deploy a rover in its inaugural mission.

There will be challenges ahead as the craft nears Mars, Liu Tongjie, spokesman for the mission, told reporters ahead of the launch.

“When arriving in the vicinity of Mars, it is very critical to decelerate,” he said.

“If the deceleration process is not right, or if flight precision is not sufficient, the probe would not be captured by Mars,” he said, referring to gravity on Mars taking the craft down to the surface.

Liu said the probe would orbit Mars for about two and a half months and look for an opportunity to enter its atmosphere and make a soft landing.

“Entering, deceleration and landing (EDL) is a very difficult (process). We believe China’s EDL process can still be successful, and the spacecraft can land safely,” Liu said.

Eight spacecraft – American, European and Indian – are either orbiting Mars or on its surface with other missions underway or planned.

The United Arab Emirates launched a mission to Mars on Monday, an orbiter that will study the planet’s atmosphere.

The United States has plans to send a probe in coming months that will deploy a rover called Perseverance, the biggest, heaviest, most advanced vehicle sent to the Red Planet by the National Aeronautics and Space Administration (NASA).

China’s probe will carry several scientific instruments to observe the planet’s atmosphere and surface, searching for signs of water and ice.

China previously made a Mars bid in 2011 with Russia, but the Russian spacecraft carrying the probe failed to exit the Earth’s orbit and disintegrated over the Pacific Ocean.

A fourth planned launch for Mars, the EU-Russian ExoMars, was postponed for two years due to the coronavirus pandemic and technical issues. — Reuters