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The mistakes that pushed Melbourne back into lockdown

ALL it took was missteps in the handling of travelers returning from overseas and complacency in a handful of neighborhoods to plunge Australia’s second-largest city into lockdown for the second time in four months.

Even as life in most of the nation returns to normal with offices, schools and bars all open, from midnight Wednesday the 5 million residents of Melbourne will be back under stay-at-home orders that were first imposed in March. The capital of Victoria state is responsible for the vast majority of Australia’s new COVID-19 (coronavirus disease 2019) cases in the past month, plagued by a level of community transmission previously unseen in the country.

The six-week lockdown will cause “enormous amounts of damage” to the economy and people’s welfare, state Premier Daniel Andrews conceded as he announced Tuesday that residents will be forced to stay at home except for essential work, study, medical care or shopping.

“It is not over in so many parts of the world,” he said, “and it is not over in metropolitan Melbourne.”

The measures have included barring about 3,000 residents of public-housing tower blocks from leaving their apartments even for food — reminiscent of the stringent controls imposed in Wuhan, the Chinese city where the virus first emerged, and making Australia one of the only western democracies to mandate that people cannot step outside their homes.

The drastic move highlights how approaches to mitigating the virus have diverged, with some US cities allowing businesses and social activities to resume even as they record daily infection numbers many times Melbourne’s tally. Melbourne provides a cautionary tale for other big, service economy-driven cities like London that are behind Australia and in the pandemic cycle.

It also shows the fragility of early success in battling the virus. Two months ago, Australia’s buoyant Prime Minister Scott Morrison outlined a three-stage plan to lift most restrictions nationwide by the end of July — a goal now in tatters.

The unraveling of what had largely been a success story in Victoria — the country’s second-most populous state and an engine of the nation’s economy — can be attributed to rushed policy decisions, botched execution and instances of public complacency.

Like other states and territories, Victoria had ordered all citizens and permanent residents returning from overseas to undertake 14 days of quarantine at hotels leased by the government. But instead of drafting in police to oversee the operation, as was done elsewhere in the country, the state farmed the task out to security firms without even inviting tenders for the contract, according to local media reports.

A litany of malpractice followed, the Herald Sun newspaper reported, including improper use of personal protection equipment, allowing families to mix in each other’s rooms, and even some guards having sex with quarantined guests.

According to the report, the virus spread among the guards who car-pooled or shared cigarette lighters. They then unwittingly introduced the disease to their own communities in Melbourne’s poorer and more multicultural suburbs where it spread through large family gatherings that breached social-distancing rules.

Social welfare lobbyists also say the government failed to properly convey public health advice to multicultural communities, with leaflets not translated into enough languages.

“Opening up obviously is a natural thing where you have successful control,” said Linfa Wang, director of the program in emerging infectious diseases at the Duke-NUS Medical School in Singapore. “But whether the society and every citizen is ready and educated enough to cope with the ‘new norm’ of COVID-19” is another matter, he said.

Stung into action, Mr. Andrews announced a judicial review into the alleged hotel quarantine breaches. And after the city experienced about two weeks of double-digit daily increases in infections, he ordered the lockdown of 12 suburbs in Melbourne’s northern and western fringes.

But it wasn’t enough. On Monday, Victoria’s neighboring state New South Wales announced it would be closing their shared border for the first time since the 1919 Spanish Flu pandemic. Residents of Victoria have also been barred from other parts of the country where community transmission has largely been halted.

By Tuesday, as the daily tally reached a new state record of 191, Mr. Andrews extended the lockdown across the entire metropolitan area.

Australia has been one of the standout performers globally in limiting the spread of the virus. It achieved that by closing international and state borders, quarantining returning residents, social distancing measures and a widespread testing and tracing regime.

As of Tuesday, the nation had recorded just 8,755 cases and 106 deaths, the latter putting it on par with Maine, one of the least-affected US states.

In Queensland state, which had two active cases as of Tuesday, people have been able to enjoy a beer in a pub and watch live sport with some restrictions on numbers, while the Northern Territory, where there is just one active case, removed almost all restrictions last month but still encourages social distancing.

Meanwhile, in Melbourne on Wednesday residents were rushing to supermarkets to stock up. Citizens living in towns near the border with New South Wales who needed to cross to the other side for work waited in long queues for police to check their hastily printed permits.

Australian Treasurer Josh Frydenberg wrote in an op-ed published Wednesday that the outbreak in Victoria, which contributes about a quarter of national gross domestic product, had already eroded the nation’s economic recovery. The lockdown could cost A$1 billion ($695 million) a week, he said.

“It shows us how quickly the pandemic can change,” Australia’s Deputy Chief Medical Officer Michael Kidd said this week. “The situation in Melbourne has come as a jolt — not just of the people of Melbourne but people right across Australia who may have thought that this was all behind us. It is not.” — Bloomberg

Officials: PFL ready when given nod to return

WHILE WAITING for word for their season to start, officials of the Philippines Football League (PFL) said they are ready to get the action going if and when given the approval to do so.

They made the assurance on Wednesday in a virtual press conference hosted by the league and the Philippine Football Federation (PFF) where they gave updates on the goings-on with the PFL and what is to be expected from it when the season does kick off.

Currently the start of the PFL’s fourth season is on hold as the coronavirus disease 2019 (COVID-19) pandemic remains a concern for the country.

It was supposed to start in March but with COVID-19 starting to take further toll, PFL officials deemed it necessary to postpone it to a still-to-be-determined later date.

PFF President Mariano Araneta, whose organization oversees the affairs of the PFL, said the league has been busy fulfilling all the requirements needed for a possible resumption especially after they got approval from the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) for PFL teams to resume practices albeit needing to follow strict health and safety guidelines.

Players, too, he said, are currently undergoing swab testing as part of the requirements to participate in team practices, and later on, in the tournament.

Mr. Araneta was also happy to share that Qatar Airways remains committed to sponsor the PFL despite the impact COVID-19 has had on the company.

They are constantly in contact with their Qatar Airways counterparts, keeping the latter updated on the status of the league amid the pandemic.

The airline company, Mr. Araneta said, as an act of good will has already remitted 50% of its committed sponsorship budget to the league.

PFL Commissioner Coco Torre, meanwhile, shared that for this season seven teams could participate, including Ceres-Negros FC, which recently was rumored to be on its way out as it is having a hard time dealing with the pandemic.

“Ceres is still part of the PFL. We have not heard anything official from them yet,” said Mr. Torre.

The “Busmen,” though, in a statement on Wednesday said management is currently talking with investors who will be taking over the management and ownership of the club in the PFL.

The league said it has no problem with new stakeholders taking over Ceres and that they are looking forward to working with them.

Another team is also trying to enter the PFL and join the roster which includes Ceres, Kaya FC-Iloilo, Stallion Laguna FC, Azkals Development Team, Global FC and Mendiola FC.

It is currently working on the needed requirements to be eligible.

Mr. Torre said at this point there is no definite time frame on when the PFL season would start but they are continuously monitoring the situation with COVID-19 and would make further announcements on it when the time comes even as he said they are committed to resuming action.

“Just continue supporting the PFL. To the fans, we feel you, but football we will be back. Right now safety of everybody is primary for us and we just have to be patient,” the PFL commissioner said. — Michael Angelo S. Murillo

PBA sets meeting with head coaches and team managers to discuss league’s return protocols

By Michael Angelo S. Murillo, Senior Reporter

THE Philippine Basketball Association’s (PBA) push to return to some activities cranks up further as the league is to meet with the coaches and team managers of member teams on Friday to discuss with them the protocols to be implemented.

Got the nod from the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) last week to have teams under it resume practices albeit following strict health and safety guidelines, the PBA is now busy getting hold of stakeholders to lay the groundwork for the resumption of league activities after suspending its season on March 11 because of the coronavirus disease 2019 (COVID-19) pandemic.

It was a decision that the league welcomed with enthusiasm, seeing how it could well pave the way for the possible resumption of the halted season by September or October.

“We are very happy with the development and that the IATF considered our request for our teams and players to at least squeeze in some activities, particularly practicing and conditioning,” PBA Commissioner Willie Marcial told BusinessWorld in an interview.

“This is a significant step towards our push to resuming the season and we will use the IATF approval as a direction as we continue to work in the coming days,” he added.

Recently, Mr. Marcial met with player-representatives of the different teams, who, in turn, unanimously signed off on the league’s plans to return.

It is the same consensus the PBA wants to get from the coaches and team managers.

“We will meet with the coaches and team managers on Friday to talk to them about the plans of the league for a return. We will discuss the protocols and at the same time get their comments and suggestions to further improve on them,” Mr. Marcial was quoted as saying by the official league website.

The PBA then plans to hold a board meeting to finalize things and then after a week give the teams the go-ahead.

Under the approved guidelines of the IATF the league must ensure that during practices only six people, including four players, are allowed at a time.

Also, temperatures of players will have to be taken before the practice, while sanitizers and alcohols will be put in strategic places for use by the teams. Practice facilities have to be disinfected before and after use as well.

No scrimmages would take place, only conditioning for players. Players and staff members are also prohibited from taking showers after the workout.

The “no test, no practice” policy would also be strictly imposed, meaning players have to be tested for COVID-19 first for them to be allowed to participate in the practices.

“We have to ensure that by the time teams go to practice everything is clear to them and all protocols will be followed,” Mr. Marcial reiterated.

SBP SAYS BALDWIN STAYS IN POST
Meanwhile, in a separate development, the Samahang Basketbol ng Pilipinas (SBP) said project director Tab Baldwin remains in his post despite the uproar the latter’s comments caused recently.

“Right now nothing has changed,” SBP Executive Director Sonny Barrios shared at the online Philippine Sportswriters Association Forum on Tuesday.

“Mr. Panlilio said the opinions that Tab Baldwin expressed were his personal ones, they were not aligned with the position of the SBP and certainly, not aligned with the personal opinion of president Al Panlilio,” he added.

Mr. Baldwin drew the ire of the PBA and other local basketball stakeholders for his comments critical of the hoops landscape in the country, including how Filipino coaches are “tactically immature” and how the PBA conference format is flawed.

The SBP project director and concurrent Ateneo Blue Eagles coach already talked to PBA and SBP officials to explain his side.

Silver: ‘Significant spread’ of virus could shut season again

NATIONAL Basketball Association (NBA) commissioner Adam Silver on Tuesday voiced concern that a “significant spread” of the coronavirus could potentially expose a “hole in our bubble” and shut down the season a second time.

Silver made the comments during Fortune’s virtual “Brainstorm Health” conference.

The NBA commissioner expects that players will test positive for the coronavirus but said he’s “not sure yet” what the league’s threshold will be for having to shut down the season at ESPN’s Wide World of Sports campus at Disney World near Orlando.

“Certainly, if we had any sort of a significant spread at all within our campus, we would be shut down again,” Silver said. “It would be concerning if once [the players] sit through our quarantine period, and then were to test positive, we would know that, in essence, there’s a hole in our bubble.

“That our campus is not working in some way.”

The season is set to restart July 30 with a 22-team tournament, with scrimmages slated to begin July 22. Silver postponed the season March 11 after Rudy Gobert of the Utah Jazz was the first NBA player to test positive for COVID-19.

Strict protocols — including quarantines and COVID-19 testing for players and personnel — will be in place, including contact tracing.

“We can analyze the virus itself and try to track whether, if there’s more than one case, if it’s in essence the same virus, the same genetic variation of the virus that has passed from one player to another,” Silver said.

Silver said he’s confident enough in the league’s protocols that he plans to attend after being tested himself, but added he will “stay far away from players.”

“This should work,” he said. “But again, this virus has humbled many, so I am not going to express any higher level of confidence than we are following the protocols and we hope it works as we designed it.”

PRINCE TESTS POSITIVE
Meanwhile, a fourth Brooklyn Nets player, forward Taurean Prince, has tested positive for COVID-19 and will sit out the NBA’s restart later this month, ESPN reported Tuesday.

The Nets were already without center DeAndre Jordan, guard Spencer Dinwiddie and forward Wilson Chandler, who opted out after positive tests. Forward Kevin Durant (torn Achilles) and guard Kyrie Irving (shoulder) were never expected to play as they continue to recovery from surgeries.

According to ESPN, the Nets left for Florida on Tuesday evening.

The Nets, who sit seventh in the Eastern Conference at 30-34, can add four players to the roster to replace the four who have tested positive. Training camps are expected to open next week, with games beginning July 30.

Brooklyn’s first game is against the Orlando Magic, currently a half-game back in eighth in the East, on July 31. The Nets will play seven more games while trying to avoid a play-in for a playoff spot.

Prince, 26, averaged 12.1 points and six rebounds in 64 games (61 starts) before the regular season was paused in March. In his fourth NBA season and his first with Brooklyn, he has career averages of 11.6 points and 4.3 rebounds. — Reuters

Eduard Folayang says he is up for Christian Lee challenge

GOT wind that reigning ONE Championship lightweight champ Christian “The Unstoppable” Lee considers him a great challenge, Filipino mixed martial arts (MMA) star Eduard “Landslide” Folayang said he is ready to respond to the task if such a fight is granted.

The two-time lightweight champ Mr. Folayang said as much as Singaporean Lee views him as a worthy opponent for the title, he, too, looks at the reigning champion as a solid opponent who would present a different challenge and only bring out the best in him.

“It would be an honor for me, and of course it will be a different challenge,” 35-year-old Mr. Folayang said of a possible matchup with Mr. Lee, 23, younger brother of ONE women’s atomweight champion Angela.

Baguio native Mr. Folayang was responding to the recent pronouncement of Mr. Lee that as champion is ready to take on all-comers who are out to get the lightweight title for him, including Mr. Folayang, who held the belt two separate times in the last four years.

Others in the list of Mr. Lee as quality opponents are MMA veteran star Eddie “The Underground King” Alvarez, undefeated and current number one contender Moldovan Iuri Lapicus, and Russian Saygid Guseyn Arslanaliev.

Mr. Folayang (22-9) recognizes that Mr. Lee (13-3) has come a long way in his MMA journey and is deserving of where he is right now in the game.

“I am very impressed with his improvements. I saw his growth as an athlete,” said Mr. Folayang.

But after going 1-3 in his last four matches, Mr. Folayang admits that having a shot at the lightweight title may take time to happen but nonetheless he said he is willing to step in when called up.

“It’s going to be a very challenging match if I face Christian Lee. I know I am still far from a world title match, but in the future, I look forward to facing him,” Mr. Folayang said.

Adding, “It will be a big challenge for me if we face each other. I want to face him, and I hope he remains the champ by then.”

NEW PARTNERS
Meanwhile, ONE Championship recently announced new strategic partners on board.

Partner brands include Grab and Everise, which will both work with ONE on the upcoming The Apprentice: ONE Championship Edition.

Other notable brands that partnered with ONE Championship include YOU.C1000, SilverQueen, Kaskus, LU Global, Myanmar Airways International (MAI) & Air KBZ, and Fairtex.

In addition, ONE Esports has also announced partnerships with Toyota Motor Asia Pacific and Vidio.

“ONE Championship’s latest strategic partnerships with some of the world’s best brands are further proof that our reach — and ability to deliver fans the absolute best of engaging martial arts and esports content — offer undeniable value. Each of these partners shares with us a culture of excellence and innovation, and contribute in our mission to ignite the world with hope, strength, dreams, and inspiration,” said Chatri Sityodtong, Chairman and CEO of ONE Championship, in a statement. — Michael Angelo S. Murillo

Tennis: What revised rankings mean for top five men

MUMBAI — Men’s governing body Association of Tennis Professionals (ATP) on Monday unveiled a revised system for calculating world rankings when the season resumes in August following a five-month suspension due to the COVID-19 pandemic.

Traditionally the ATP rankings operates on a formula of 18 best results over 52 weeks but will now cover a 22-month period from March 2019 through December 2020.

While the new model provides impetus for players to improve results from their 2019 performance, it will also provide stability to those who choose not to play due to the pandemic as they would not need to defend points.

The ATP’s rejigged calendar for the year includes two Grand Slam events in the US Open and the French Open and three Masters 1000 events.

Novak Djokovic, World Number One

The Serb will be favorite to keep his number one ranking at the end of year as he retains the points he earned from his 2019 Wimbledon win till 2021 with the grasscourt Grand Slam canceled due to the pandemic in 2020.

Djokovic will also keep points from his Madrid and Paris Masters wins even if he decides to skip the events in 2020 or fares badly in them.

He could also strengthen his position at the top of the rankings by improving on his fourth-round exit at the US Open and defeats in the semifinals of the French Open and the Cincinnati Masters.

Rafa Nadal, World Number Two

The Spaniard had to previously defend more than 5,000 points over six weeks, having won the Grand Slams in New York and Paris in 2019 and also the Rome Masters. But he will now get to keep all those points even if he does not hit a ball.

If Nadal decides to travel to the United States for the hardcourt season, he would have a chance to pick up points from the Cincinnati Masters after he skipped the event in 2019.

Dominic Thiem, World Number Three

Thiem will retain the points he gained from his appearance in last year’s French Open final and his semifinal appearance at the Madrid Masters.

The Austrian will also have the scope to improve on his first round exit at the US Open and the early loss in Rome.

Roger Federer, World Number Four

The biggest gainer from the revised rankings will be Federer, with the Swiss ruling himself out of the rest of the season after undergoing a second knee surgery during the year.

The 20-time Grand Slam winner has not played since his semifinal defeat by Djokovic at the Australian Open and would be able to keep most of the points from 2019 that he would have otherwise lost in normal circumstances.

Daniil Medvedev, World Number Five

The Russian has the chance to make significant gains during the rest of the year, having lost in the first round at the Madrid and Rome Masters and also the French Open in Paris.

If the results do not go his way, Medvedev will still have the cushion of the significant points he earned by winning the Cincinnati Masters and reaching the US Open final in 2019. — Reuters

Alonso set for F1 return with Renault in 2021 — report

BENGALURU — Two-time world champion Fernando Alonso is set to return to Formula One with Renault in 2021, the BBC reported on Tuesday.

Alonso, who left Formula One at the end of 2018 after a final season with McLaren, won his championship titles with Renault in 2005 and 2006.

The Spaniard, 38, has made no secret of his desire to return to the Formula One grid, with the French manufacturer having a vacancy.

Alonso could join Frenchman Esteban Ocon and replace Australian Daniel Ricciardo, who is moving to McLaren at the end of the 2020 season.

“I don’t know if he is going to join or not with us but definitely if he could come back here I’d be very happy,” Ocon said last week.

Renault was not immediately available for comment. – Reuters

Travelers are venturing out again but avoiding planes, international trips — survey

Travelers are hitting the road again and taking vacations even as the coronavirus pandemic shows no signs of abating in many countries, a survey on Tuesday showed.

About 51% of people in North America and Latin America plan to book trips in the next six months, compared with 38% in Asia and Europe, according to the survey by software maker Oracle Corp.

However, travelers want to stay close to home, preferring to drive and to avoid international trips.

Due to travel restrictions and lengthy lockdowns in many countries to control the spread of the novel coronavirus, tens of thousands of hotels have closed and occupancy levels have fallen below 20% for weeks, said Alex Alt, general manager of Oracle Hospitality.

“One thing that’s refreshing is that consumers want to travel,” he told Reuters. “There is a resilience and an appetite to be on the road, to explore, to experience.”

With US coastal towns a favorite destination, occupancy among 600 US hotels that Oracle tracks has risen for five straight weeks and recently hit its highest levels since mid-March.

“I’d say the industry largely expects it to continue through the summer months,” Mr. Alt said. “The key will be for the business travel to come back to complement that leisure travel.”

COVID-19 cases have surged around the United States and the death toll has topped 130,000, prompting the European Union last week to exclude Americans travelers for its “safe” travel list.

To assuage concerns about infections, 90% of hotels have increased or planned to increase cleaning and disinfecting. In addition, 70% of hotels already are or are planning to adopt contactless technology for check-in, food ordering, and concierge services, according to the survey.

Oracle surveyed 4,600 consumers and 1,800 hotel executives in the United States, Mexico, United Kingdom, Germany, Singapore and Australia in mid-April through early May. — Reuters

Who you gonna call? Germbusters! Pandemic drives boom in spray machines

The Goodway Technologies BioSpray Sanitation System & BioSpray D2 Sanitizer that Marcel Interiors uses to prevent the spread of coronavirus disease (COVID-19) in Apopka, Florida. Marcel Interiors also sprays before and after jobs due to COVID-19 to keep their employees safe during construction and interior work. Image via Reuters.

STAMFORD, Connecticut — Timothy Kane, CEO of Goodway Technologies Corp, has never been so popular. Making machines that spray disinfectant, once a niche business, is now an essential service — and the phone is ringing off the hook.

“Our orders jumped 50-fold in April, it was like a switch got flipped,” said Mr. Kane.

Goodway, which has a factory in Stamford, Connecticut, builds machines that spray an alcohol-infused mist to sanitize surfaces. Until a few months ago, those devices were just a tiny part of its business, catering mostly to places like industrial bakeries that had to constantly clean surfaces.

Now, as the COVID-19 pandemic grips the United States, everyone wants one.

Mr. Kane, who employs 110 workers in the family-owned company, has fielded calls from hotels, gyms and casinos, as well as factories and warehouses. Many would previously never have thought they needed such machines, which often look much like souped-up vacuum cleaners.

The rise of this industry is one example of a sector that is booming during a pandemic that has laid waste to so many parts of the economy.

America’s battle against the novel coronavirus is driving demand for everything from hand sanitizer and masks to thermometer guns and plexiglass. But one enduring image of this crisis may be the foggers and spraying machines that are now being set loose in airports, sports arenas and subways.

Yvon Brunache bought a Goodway sprayer to help his Florida construction business because clients fearing COVID-19 were reluctant to have his team in their buildings. “My customers are asking more and more for the space to be sanitized,” he said.

The surge of business is, however, putting strain on producers that never envisaged such a situation and their supply chains.

Victory Innovations, another maker of hi-tech spray machines, is sold out through September. Its shipments have surged 10-fold since the start of the pandemic, to about 100,000 units a month, according to the company, based in Eden Prairie, Minnesota.

ROBOT FLEET
Servpro Industries LLC has completed 10,000 coronavirus-related deep cleaning operations in the last 90 days, according to Chief Operating Officer John Sooker.

“We’ve always done biohazard cleaning, but never at this scale.”

Servpro, based in Gallatin, Tennessee, is majority owned by the Blackstone Group and runs franchised cleaning businesses across the United States and Canada.

The company, which had sales of about $3 billion last year, figures biohazard cleaning — such as sanitizing a cruise ship after an outbreak of illness—constituted only about 5% of its business then, or $150 million.

Mr. Sooker said he expects COVID-19-related cleaning alone to bring in at least $250 million to $300 million this year.

The crisis is sparking innovation.

Albuquerque’s airport has just introduced a fleet of four robots, each about the size of a small trash can on wheels, which trundle around the terminals every night spraying a disinfectant mist.

“It costs a fraction of what it would cost to have a team of people doing it,” said Kimberly Corbitt, chief commercial officer of Build With Robots, one of the machines’ developers, although she declined to reveal the cost.

The airport emphasized that none of its janitors would get laid off as a result, since the fogging is an added layer of overnight cleaning.

FLAMETHROWER
Sophisticated spraying machines don’t come cheap, though, even the less automated ones; a small human-operated sprayer mounted in a backpack can set you back about $5,000.

Biomist Inc., a manufacturer in Wheeling, Ill., has installed spraying systems custom-designed for a facility that cost over $50,000, said Robert Cook, a vice president.

Goodway, meanwhile, has doubled the number of models it is selling to six, creating designs tailored to specific uses such as restaurants and health clubs.

Workers at its factory can be seen hunched over a row of curved stainless-steel machines mounted on wheels being built on the production floor.

Mr. Kane said there were many ways to spray disinfectants, and that the process could be surprisingly complex, and even potentially dangerous.

Some machines use water-based cleansers, which take time to dry or must be followed by people wiping the surfaces. Other devices, like those made by Goodway, mix alcohol—which dries almost instantly—with the same chemicals used in fire extinguishers, Mr. Kane said.

“If you don’t do it right, you can end up with a flamethrower.” — Reuters

Why the cars of our self-driving future will be electric

Cars aren’t going away any time soon. So the ultimate green move will be combining two emerging technologies: autonomous driving and fully electric cars. Autonomy brings efficiency in driving and battery use, while electric cars drastically cut emissions, fuel costs, and maintenance.

Even so, a rift has developed within the automobile industry about the best way to move forward. Skeptics believe self-driving technology will have a serious impact on an electric car’s range and degrade batteries; optimists think improvements in technology will likely mitigate much of that trade-off.

The split has manifested in established automakers choosing different paths to pursue. Ford Motor Co. is planning to launch self-driving tech in 2022 but in hybrid cars first. The company’s testing found computers and sensors powering self-driving could cut the electric car’s range by more than 50%. Meanwhile, the only autonomous cars Volkswagen AG plans to build are fully electric vehicles. The company will begin field tests that same year.

A new study in Nature Energy may lay the debate to rest. Venkat Viswanathan, an associate professor of mechanical engineering at Carnegie Mellon University, finds that the range trade-off is likely to be less than 15% for city driving and as low as 5% for suburban driving.

“We’re getting to a point where we won’t need to choose between autonomous driving and electric cars,” said Mr. Viswanathan.

At the heart of the challenge of self-driving cars is that it is hard to replicate human understanding of sight and sound. Even with the latest image-recognition technology, computers struggle to do what humans instinctively manage: understand the small but myriad changes happening on a road, in real-time. Luckily, computers can use other inputs, such as radio waves (through a radar) or lasers (through a lidar).

Lidars, which you may have seen on prototype self-driving cars, are generally considered crucial. They need to protrude outward to project lasers beyond the car body and thus “sense” surrounding obstacles even as the car moves at great speeds. But the necessary bulge limits the aerodynamic shape of the car, increasing the amount of energy needed to drive and thus lowering how far an electric car can travel on a full charge.

Moreover, on-board computers need to analyze thousands of images every second that lidars capture to help make driving decisions. Even with modern computing technology, that takes up a lot of energy. The combination of sensors and computers does drain an electric-car’s battery more quickly than if a human driver were at the wheel.

Nevertheless, Mr. Viswanathan found that lidars and computers are both getting better at their task, while consuming less and less energy. In the case of computers, custom-built chips that can perform the specific image analysis needed for autonomous driving are able to lower energy consumption by 50% or more compared with traditional graphics processing chips. These are likely to keep getting better, which means Mr. Viswanathan’s own estimates may be out of date soon.

Better still, companies like China’s Contemporary Amperex Technology Co. Ltd., the world’s largest battery maker, are developing batteries that can last 2 million kilometers (1.25 million miles) or 16 years. That’s a vast improvement on current batteries that have a warranty for 150,000 miles or eight years. If widely adopted, these newer batteries could mean car owners won’t have to worry much about battery degradation.

And even if none of these technology trends play out as expected, Mr. Viswanathan found that computer-driven cars end up with energy savings of as much as 10% simply by making better decisions about braking, accelerating and turning than human drivers. The extra energy the computers and sensors consume could be balanced out by better driving—the direct result of the automation it enabled.

Regulators might not give automakers an option. “Many of the tier 1 cities where we expect to see self-driving cars are incentivizing or requiring fleet cars to be zero emissions,” said Nick Albanese, head of intelligent mobility at BloombergNEF. “Non-electric autonomous vehicles will likely be short-lived.” — Bloomberg

DOST set to release funding guidelines for OFWs starting tech-based businesses

By Patricia B. Mirasol

The Department of Science and Technology (DOST) is set to release the guidelines for a program that provides interest-free loans to overseas Filipino workers (OFWs) looking to establish technology-based enterprises in the country.

Launched in May with an initial funding of P5 million, iFWD PH (Innovation for Filipinos Working Distantly from the Philippines) will first be available in the National Capital Region before being rolled out to other regions.

The program will be implemented in two phases: a “Capability Building for the Development and Management of Technology-Based Enterprise” phase, and an “Innovation Funding for Technology-based Enterprise” phase.

Other strategies include technical consultancy and advisory sessions, access to DOST facilities, linkages and networks with existing clients of the Department, pitching of DOST-developed technologies including presentation of business opportunity packages and instructional videos, and access to business core training modules through the iFWD PH e-portal system.

DOST’s Regional Offices will be involved in the funding, management, and monitoring of the projects to be provided with the innovation-enabling fund (iFund), which has a ceiling of P250,000 per project. Part of DOST’s annual budget will be allocated for the second phase of the program.

Projects funded under Phase 2 should be completed within a period of three to five years, depending on what was agreed in the Memorandum of Agreement. Ownership of the equipment shall be transferred to the OFW-beneficiary through the issuance of a Certificate of Completion and Ownership including the Property Transfer Report duly signed by the DOST Regional Director.

In an e-mail interview with BusinessWorld, Bianca Canlas, iFWD PH science research specialist, answered questions regarding eligibility and funding:

APPLICATION ELIGIBILITY
Eligible to apply to the program are OFWs who came home within the last three years, with or without contract. If with a contract, they need to have a representative who shall co-sign a certification for the Program. OFWs who have been repatriated since March 2020 are eligible. OFWs who will qualify will be validated with the Overseas Workers Welfare Administration (OWWA).

FUNDING ASSISTANCE
The maximum amount of funding is P250,000. As mentioned above, the iFund is covered by Phase 2 of the program. It will be used exclusively for any or all of the following:

a.1. Entrepreneurship and technical training
a.2. Product development and market testing
a.3. Operational consultancy services
a.4. Initial laboratory testing
a.5. Packaging and labeling design and execution for market testing
a.6. Equipment acquisition

30% of the iFund will be allotted for a.1 to a.5, while a maximum of 70% may be for equipment acquisition. The fund allotted for equipment acquisition shall be refunded to DOST with no interest for 3–5 years.

This funding will vary depending on the proposed business. At the end of Phase 1, the OFW should present a business plan indicative of the amount s/he needs for the tech-based business.

SECTORS COVERED
The OFW has to highlight innovations in the chosen business for it to qualify as a technology-based enterprise. The program shall cover the following sectors:

• Food processing
• Furniture-making
• Gifts, houseware, decor
• Marine and aquatic resources
• Horticulture and agriculture
• Metals and engineering
• Health products and services/pharmaceuticals
• Information and communications technology/electronics
• Science-and-technology services (technical consultancy, IT firms, engineering firms, etc.)

PROPOSED BUSINESSES
Thus far, DOST has received proposals from OFWs pushing the following businesses:

• Information technology/systems development
• Cacao processing
• Seedling propagation for forest trees
• Piggery/poultry
• Metal fabrication for boat propellers
• Hybrid bikes

PILOT RUN
The office officially began receiving applications yesterday, July 7. The program’s first phase (Capability Building Phase) will start in August; the pilot run will run until December.

“While we have not yet started, we have OFWs who are already engaged in technical consultancy with DOST’s Regional Offices and Research and Development Institutes for advisory sessions on the particular businesses they have in mind,” Ms. Canlas said.

 

All program inquiries can be coursed through https://tinyurl.com/inquire-ifwd-ph, ifwdph@ncr.dost.gov.ph, or +632 8837-2071 to 82 local 2043, 2403, and 2404.

The virus has trapped $111 billion of luxury spending in China

Jeff Meng, a 25-year-old watch lover from a well-heeled Guangdong family, had 160,000 yuan ($22,800) burning a hole in his pocket. He could not find the Rolex Daytona watch he wanted, dubbed “panda” for its black-and-white face, anywhere in China.

Thanks to the coronavirus pandemic that’s halted travel and disrupted networks of parallel importers, Chinese high-end shoppers like Mr. Meng—who collectively spend $111 billion a year on luxury goods, powering over a third of the global industry—are finding it hard to spend their cash.

That’s forcing global luxury houses from Balenciaga to Montblanc to rethink how to reach Chinese consumers on the mainland, despite long-standing concerns that range from counterfeiters to powerful e-commerce platforms that set the rules. The halt to travel is also fueling the rise of a second-hand luxury market in China as consumers seek certain styles or models they can’t find in local stores.

Prior to the pandemic, two-thirds of Chinese luxury purchases were made overseas, according to consultancy Bain & Co. The spending took place either on shopping spree vacations or through resellers called “daigou.” Meaning to “buy on behalf,” these were platforms or individuals who used Chinese people living, studying or traveling abroad to purchase sought-after goods from boutiques in Europe or the US and bring them back home.

“Now, travel is impossible, and daigou sellers are either back on the mainland or stranded in Europe,” said Mr. Meng. “The pandemic made me realize you can’t easily get what you fancy in China.”

Cognizant of the potential of Chinese consumers who don’t travel overseas, luxury houses had already been rolling out plans to expand on the mainland. The pandemic has now hastened that shift and imbued it with urgency.

With other factors like perceived anti-Chinese racism in western countries exacerbated by the coronavirus, and the Chinese government’s desire to bring spending home to boost its ailing economy, it’s likely that Chinese luxury buyers won’t revert to previous patterns even after the crisis passes.

More than half of Chinese purchases for luxury goods will happen domestically by 2025, Bain & Co estimated in May, compared to a third in 2019.

“Chinese feel unsafe in foreign countries, which is why they consume at home,” said Amrita Banta, managing director at luxury consultancy Agility Research. “Brands should increase importing from foreign countries into China and offer a wider and well-priced range. They can now expand their reach to more cities—even smaller towns which have a propensity to spend.”

E-COMMERCE, LIVE-STREAMING
With China having largely contained its epidemic, including a new outbreak in Beijing last month, shoppers are spending again. This is set to boost the luxury market on the mainland as much as 10% this year, compared to a 45% plunge in the global industry, according to estimates by Boston Consulting Group.

“Things are normal again internally, and we are seeing the results throughout our stores,” Richemont Chairman Johann Rupert said of China, where it has around 460 boutiques. “But they’re not traveling. Nobody is traveling. And until people feel sufficiently safe, I doubt that we will return to a pre-COVID stage.”

The loss of Chinese travel spending has been cited as a blow to earnings by companies from LVMH to Moncler SpA in recent months. While luxury companies mostly do not break out mainland China numbers, sales to Chinese tourists is likely to far outstrip revenue from local boutiques, analysts say.

The trend of more spending within China “will push us to reconsider our store network,” said Jean-Marc Duplaix, chief financial officer of Gucci-owner Kering SA during an April 21 earnings call. “It will lead to a clear re-shuffling of the distribution.”

A wave of luxury brands like Prada, Miu Miu, Balenciaga, Piaget and Montblanc have opened virtual storefronts on Alibaba Group Holding’s Tmall luxury platform this year, some setting aside long-standing objections to working with third-party online channels.

Brands like Louis Vuitton, Givenchy and Chloe have started using live-streaming to push products in China, a popular style of social commerce where an influencer speaks live to audiences for hours at a time, promoting and trying out items.

In the past, luxury houses were worried about diluting brand prestige and losing control of customer data by working with Chinese internet giants like Alibaba, but the urgency of reaching Chinese shoppers has now eclipsed those concerns.

“Most luxury brands were too reliant on their offline experience and they lacked presence outside major cities where there is no decent shopping mall,” said Jason Yu, managing director at Kantar Worldpanel Greater China. “Counterfeits and resellers were also prevalent on e-commerce platforms in the past. But that is fast changing now.”

TIGHT SUPPLY
Demand for some items has surged past supply in China. In May, Swiss watch exports to China fell 55% from a year ago, according to industry data, largely due to supply bottlenecks.

“Due to the travel curbs during the pandemic, all the consumption power is locked inside China, so our sales there are growing,” said Alain Lam, the finance director of Oriental Watch Holdings Ltd. The high-end watch seller has 46 stores in mainland China. “But the supply is very tight, as Swiss factories are not yet fully returned to work.”

Prior to the pandemic, luxury brands largely avoided stockpiling in China and kept local manufacturing to a minimum. Brands will now need to rethink how to avoid delayed stock and lost sales, said Agility’s Banta. — Bloomberg