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Duterte signs EO authorizing nuclear energy study

PRESIDENT Rodrigo R. Duterte signed an executive order (EO) authorizing a feasibility study to evaluate the introduction of nuclear energy into the energy mix.

The Palace on Wednesday released Executive Order No. 116 which ordered the adoption of a national position on nuclear energy and establishing a committee to study the possibility of nuclear energy adoption.

“The government shall conduct a study for the adoption of a national position on a Nuclear Energy Program (NEP) in accordance with pertinent IAEA (International Atomic Energy Agency) guidelines and relevant laws, rules, and regulations,” Mr. Duterte said in the EO, signed on July 24.

The Department of Energy (DoE), assisted by the IAEA, has started the nuclear power issue via energy planning studies.

The EO constitutes the Nuclear Energy program Inter-Agency Committee to be chaired by the DoE. The committee is tasked to conduct a study to evaluate and assess the adoption of nuclear energy and consider the economic, security, and environmental implications.

Mr. Duterte said, “(T)he experience of a number of countries has shown that nuclear power can be a reliable, cost-competitive and environment friendly energy source.” — Gillian M. Cortez

DoE to expedite national renewables plan update

THE Department of Energy (DoE) said it is working to complete the “long-overdue” update to the national renewable energy plan (NREP).

Energy Secretary Alfonso G. Cusi ordered the department’s Renewable Energy Management Bureau to prioritize the update. The government targets the installation of at least 20 gigawatts of clean energy over the next two decades.

“There is a need to fast-track the NREP to help the country achieve the goals set forth in the Renewable Energy Act of 2008,” the Energy chief said.

The department introduced the goals of the updated renewables plan for 2020-2040 in its accomplishment report for President Rodrigo R. Duterte’s fifth State of the Nation Address.

It said the plan involves a “paradigm shift” in favor of renewable energy systems, including utilization by the agriculture, fisheries, health, and education sectors.

Aside from large-scale renewable energy projects, it will seek more investment in net metering, a billing mechanism that credits owners of solar energy systems for any surplus energy they inject into the grid.

It is also expecting the compliance of the energy industry with the department’s various renewable energy policies, such as the Renewable Portfolio Standards, the Green Energy Auction Policy, Renewable Energy Market Rules, the Green Energy Option Program, and the Smart Grid Policy.

The DoE hopes to bring renewables to 35% of the country’s generation mix over the next decades. Last year, the energy source accounted for 21% of the mix, down from over 25% in 2014, according to the National Renewable Energy Board. — Adam J. Ang

Creating solutions through ‘traditioned innovation’

Heraclitus, a Greek philosopher once said, “πάντα ῥεῖ (panta rhei) — everything flows.” In modern-day English, this translates to the age-old adage “the only constant in life is change.” Everything is in a constant state of flux, whether that’s the things or people around us, or even ourselves. Change is a universal fact of life and because of this, we can say that innovation is inevitable. It will happen, whether we want it or not. The only question is when.

The field of sustainability is steeped in traditioned innovation.

In recent years, we’ve seen numerous developments in the field of sustainability. These were primarily driven by an increasingly vocal group of scientists, world leaders, and members of civil society who saw the importance of urgently pushing the sustainability agenda today, rather than later, in order to safeguard the future of humanity. In the past decade alone, this resulted in the adoption of major initiatives such as the United Nations Sustainable Development Goals (UN SDGs) and the Paris Climate Agreement.

These “innovations” in sustainability had organizations actively looking into how to change their business model in the next few years to promote more sustainable practices. These may entail going back to the R&D drawing board and redesigning products to consume fewer resources and materials, expanding the utility of existing products by identifying an alternative use for them, as well as expanding into providing supporting services such as repairs & maintenance. At present, there’s even a fair number of companies that are in the process of executing their plans.

In this regard, it’s also quite worthwhile to note how “tradition” serves as a foundation for these innovations. Going back to the two global initiatives I mentioned, those are in fact revamped sustainability campaigns that were built upon earlier versions, the UN Millennium Development Goals and the Kyoto Protocol respectively, as a response to the demands of the changing times.

Another popular sustainability topic nowadays is the concept of the circular economy, which the Ellen MacArthur Foundation explains as being based upon the principles of designing out waste and pollution, keeping products and materials in use, and regenerating natural systems. Personally, I find traditioned innovation to be an underlying theme of the circular economy. This is because the circular economy is all about getting the maximum possible value out of an existing product (tradition) by going beyond and revisiting how it can be used alternatively (innovation) once it’s no longer appropriate for its originally intended purpose.

To me, these are but a few instances that showcase why tradition and innovation are both needed together in creating solutions that respond to actual needs.

MODERN PROBLEMS REQUIRE MODERN SOLUTIONS
We need to innovate because we need to be flexible and adaptable to change. With new information coming in every second, the key to a successful organization in modern society is being agile in finding the right solutions to get things done. At times, this means thinking out of the box to find creative solutions like how business models have changed their service delivery models in response to the COVID-19 pandemic. Other times require us to break barriers and take in different perspectives. This is why it’s important to empower those who may not be heard.

TRADITION IS SIMPLY OLD INNOVATION
This is why looking back is important in creating new solutions. Fresh ideas are, more often than not, ultimately good; however, they can be unwelcome without the proper context. The reason why the greatest scientists in our history were often labelled heretics (such as Galileo) is that they ran contrary to what was held to be conventional wisdom. It took a group of likeminded people, a society, to mutually agree that these theories were true before they were taken to be fact.

To gain support for innovation, we first need to have a good grasp of how things came to be. We also need a common purpose, shared values that bring people together. To do things faster and better, we need to look to history, learn and build upon it and get people on board to help. Most of the countries that are heralded as examples of what a good COVID-19 response should look like learned from prior outbreaks and made preparations to respond to new pandemics.

THE KEY TO TRADITIONED INNOVATION IS DESIGN THINKING
The first step is to empathize. As a management consultant, I’ve seen instances of successful and failed change projects at companies. The key difference was that successful innovation teams had been able to truly understand what was at stake. They did the necessary research and took the time to gather insights from the people around them. This is also a great time to gather allies to support you on the change to be implemented.

Next, try to find a logical structure to the data and define the problem. This is extremely crucial to design thinking as this would determine what solutions the innovation team would come up with. In the process of creating the ideal solution, it is important to remember that oftentimes, there are multiple ways to go about developing it. In fact, it may even be worthwhile to develop multiple prototypes just so that the team would have options to pick from in case the first one doesn’t work out during testing.

Most importantly, we must remember that design thinking and traditioned innovation is a continuous cycle. As change continues to happen, so must the process of inventing and reinventing solutions.

In conclusion — why traditioned innovation? Because it’s a winning formula that creates the best solution in the shortest time.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Rochelle Dichaves, CPA, GRCP, GRCA, is a manager with the Management & Risk Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.

+63 (2) 8845-2728

rochelle.dichaves@pwc.com

More water and investments, less political whims

During President Rodrigo Duterte’s State of the Nation Address (SONA) 2020 last Monday, he lashed out again at the Lopezes and other conglomerates and companies:

1.) Telecom: “… if you are not ready to improve …I might just as well close all of you and we revert back to the line telephone at kukunin ko ‘yan, i-expropriate ko sa gobyerno (and I will get them, I will expropriate that for the government).”

2.) Innovator pharma: “…Executive Order No. 104, which imposed ceilings on the retail prices of at least 133 drugs and medicines…”

3.) Water concessionaires: “… I would insist that you pay the billions and billions that you collected. For example, water treatment. O, nandiyan sa kontrata (It is in the contract). It’s in the billing, they are being collected since 1997. Ilang bilyon na nga wala ni isa (How many billion and there is not even one), not even a faucet was built for a water treatment facility.”

4.) Electricity: “This is the oligarchy that controls the Philippines by… taking control of the water and the electricity and power.”

These four sectors alone would involve tens of billions of dollars of private investments, local and foreign, to put up and maintain. By threatening them with government expropriation and imposing price controls, the President is sending a message to the international investment community that he can arbitrarily change rules midway at anytime and penalize certain businesses.

Two pieces of investment data here. Foreign direct investments (FDI) inward stocks to reflect yearly inflows minus outflows over time, data from the UN Conference on Trade and Development (UNCTAD) World Investment Report (WIR). And stock market capitalization, data from the World Federation of Exchanges (WFE). Until today, the Philippines is the least attractive to FDIs and portfolio investments among major economies in the Asia-Pacific (see the table).


On a per capita basis, the Philippines has the lowest in FDI inward stock and third lowest in stock market capitalization. This is not something to brag about and the President should be aware of the implications of his whimsical pronouncements.

The Maynilad and Manila Water concessions in particular — the President has demonized them since December 2019 and arbitrarily canceled the contract extension from 2022 to 2037. The privatization of Metropolitan Waterworks and Sewerage System (MWSS) in 1997 into two areas was due to an admission by the government that it did not have the financial and technical resources to significantly improve water supply delivery to the people of Metro Manila and nearby cities.

Of the estimated eight million customers in 1997, only 26% had 24-hours water supply, and non-revenue water (NRW) due to leaks and theft was 62%. By 2019, water customers had doubled to 16.5 million and 96% of them have 24-hours water supply, NRW has declined to only 19%, meaning higher water pressure for consumers. Plus 100% sanitation coverage and over 50 new wastewater treatment plants which brought waste water coverage from almost zero to 30% of the metropolis. The capital expenditures (capex) to make these drastic improvements should be at least P300 billion.

And more investments will be needed because of two big challenges: rising urbanization and customer base, and stricter environmental regulations. The new Department of Environment and Natural Resources standards for biological nutrient removal are more stringent than the European Community standards. The estimated costs to comply with these new standards is around 30% on both capex and operating expenses.

And why should the contract extension to 2037 proceed, and not be arbitrarily canceled and abrogated?

Because in the last rate rebasing exercise by the MWSS Regulatory Office, the required combined capex of both concessionaires to complete the targeted water and sewerage systems by 2037 would amount to over P465 billion. The Clean Water Act plus the Supreme Court Mandamus have jointly raised the requirement from 50% to 100% sewerage coverage.

Government is now borrowing left and right to re-stimulate the economy. It is not prudent to borrow even more if it will re-nationalize the water sector in the metropolis and do the huge capex. And why should taxpayers from northern and southern Luzon, Visayas, and Mindanao, pay for the continued water supply improvement of people in Metro Manila?

President Duterte should respect the rule of law, respect the sanctity of contracts even by the previous administrations because future administrations are also obliged to honor and respect the contracts that his administration has entered into during its term.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

Adapting to change

It is never easy to adapt to change. We are creatures of habit, and tend to get comfortable with “what is” over time. We rarely welcome disruptions. Occasional change can offer us some relief, but nothing more than to break monotony or to keep us relatively dynamic, or to fend off stagnation. However, little change over a long time can also mean little growth.

COVID-19 is the biggest game-changer I have so far seen in my half a century. I have witnessed and lived through a few political and economic disruptions, but nothing as significant and as fluid — and as deadly — as the latest coronavirus. For many of us, this is our first global pandemic. And its negative impact on the global economy and society in general has truly been catastrophic.

But this does not mean that we cannot survive it. However, I am also sure that it will leave us forever changed as well, especially now that COVID-19 seems to be here for the long haul. No vaccine can offer 100% immunity or protection. At some point, we had practically eradicated polio, but now it is back. We have had to restart a new round of polio vaccinations for children.

We had gotten rid of smallpox and yellow fever decades ago, and we continue to vaccinate our young against mumps and chickenpox, among other diseases. But year in year out, we still have children — and some adults — getting sick of them. Flu shots and pneumonia vaccines are also now widely available, but people still die from pneumonia.

We need to accept the fact that we have to co-exist with COVID-19 — or any other virus, for that matter — because that is just the way things are. It was Spanish Flu in 1918, it is COVID-19 in 2020, and it can be some other virus next year or maybe 10 years down the road. We need to adapt to change, and accept that change, whatever it may be, may be permanent.

I usually work from home, like many other people now. But I have been doing so since 2011, so this particular change has not been very disruptive for me. But I can just imagine how big a change it has been for millions of workers worldwide who for years have been used to reporting for work at the office daily from 8 a.m. to 5 p.m.

Google has just announced a decision to keep a big chunk of its workforce at home until mid-2021. Earlier, it said the work-from-home (WFH) arrangement will last until the end of 2020. We can only assume that recent developments regarding COVID-19 particularly in the United States prompted the decision to sustain WFH for a longer period of time. A consideration is the uncertainty of school opening and how this affects parents among the employees.

My decision in 2011 to work from home was prompted mainly by the birth of my son the year before. And realizing that the kind of work I do does not require a physical office outside the home, I opted for WFH so I can spend more time with him during his growing up years. I adapted to the change, thinking it was to be a “temporary” thing until he started elementary school.

But while I was doing WFH then, I still attended a lot of business meetings outside. Business lunches were fairly common. I still did interviews face to face, and occasionally via phone calls or e-mails. I never did video calls. Also, like many others, I was out most weekends, for out of town trips or to attend lunches and dinners with family.

And while I have been doing online shopping since 2011, this was limited to maybe twice a year on Amazon for items that can be shipped directly to the Philippines. I was in the supermarket or in the mall at least three times a week to get stuff. We went to the movies and ate out, and would travel locally or abroad at least once every year.

However, all that changed four months ago. I have rarely been out of my city of residence since mid-March. I go out of the house only to get supplies. I have also learned to buy more things online, and have more items or food delivered to the house. Going to the movies and eating out is now a thing of the past. We have not visited relatives since mid-March as well.

Nine years since I started WFH, I am still doing WFH. And I am back where I started in 2011, practically. School has been disrupted, so my son is also now at home again, doing online/distance learning. Even my wife now works from home every other week. And looking at how things are going with COVID, what I used to think was a “temporary” WFH and school-from-home (SFH) arrangement for the family is obviously here to stay until the next “disruption.”

In the last few months, I have had to go beyond Viber and regular text messaging and phone calls and learn to use Zoom, Google Meet, Messenger video call, and Webex. I have had to do interviews on Zoom and Viber, aside from receiving most work-related documents and utility bills via e-mail. Most of my banking is also done electronically as well. Even food take-out counters and deliveries are paid via electronic channels. I hold and use cash sparingly nowadays.

I have accepted the fact that this will be the business norm from now on, at least for me. And it doesn’t seem like there will be any going back from this. Pre-COVID days are done, as far as I am concerned. The work and home environments are evolving and will continue to evolve just as technology and tools also evolve. And change is affecting not only how we do business but how we do every day things in general. It is not a welcome disruption, but change never is. But I have to learn to live with it. For with or without COVID, life will have to go on.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council

matort@yahoo.com

Every dog has his day

If you look up English idioms involving dogs, there are enough of them to fit a wide range of situations.

In Aesop’s fable, for example, there is the “dog in the manger.” This canine decides to lie down in the box used for hay, and barks away at the cow trying to access it for his meal. The idiom then refers to a spoiler who prevents another from rightfully enjoying something that the snarly one does not need, or can even take pleasure in. What is the frequency of such a churlish attitude?

Can, for instance, something already in use and providing benefit to millions be simply snatched away by a dog in the manger, just to be rendered useless — just because this snarler enjoys seeing others suffer? Of course. It happens in real life.

Here are more dog phrases to think about.

Contestants for supremacy in a ferocious contest are in a “dog fight.” Those cast away to limbo from once powerful perches are “in the dog house.” And the one running the show in an organization is the “top dog.” (He may even have canine features and a dog hairdo.)

What about the “underdog”? The word is traced to the 19th century referring to the beaten contestant in a gamblers’ dog fight. The prefix “under” refers to the weaker contestant which may surrender even before the fight, rolling over on its back, and assuming an inferior position with the stronger dog standing over him. The weaker dog then is literally under the “top dog.” (There is no “over dog” in English usage, except perhaps to indicate certain sleeping positions found in the Kama Sutra.)

Going by etymology, the underdog is at a disadvantage, sometimes, waving the white flag even before the bell rings. An underdog also refers to an unsuccessful person with a string of defeats behind him. Going by this characterization, the underdog is a loser. The tag attaches to one who fails in a contest where reason and moderation succumb to brute force.

There seems to be little upside for the underdog. Supporters can abandon him and move to the winner’s table. The underdog is often consigned to last week’s news, as victors gloat and announce their next targets — there is no rest for the wicked.

So, why do we as a people root for the underdog?

Here is a case of linguistic misunderstanding. There is another dimension to the underdog which sheds light on its erratic usage. An underdog is also one bullied unjustly and subjected to unfair treatment — a victim of persecution, with all the odds stacked against him. Still, this underdog persistently fights on to the discomfort of his tormentors. He eventually attracts sympathy and support, maybe from other underdogs too. After a while, a whole nation may feel like underdogs.

In the corporate world, underdogs are not popular. In the occasional turf wars that beset companies where one faction is pitted against another with perhaps a third waiting in the wings for the winner, the underdog is allied with the weaker camp and most likely headed for the doghouse.

It is the top dog (canis dominantis) that gets the power. One look from him, or the raising of a paw (Sir, can I kiss it now?) is enough for lesser dogs to assume the supine position.

As for spectators in dog fights, the bystander is sometimes asked — “do you have a dog in this fight”? The question checks whether one has a stake, whether financial or emotional, in the outcome of a particular contest. Often, the cautious observer avoids getting involved by stating that he will just “let sleeping dogs lie.” This proclaimed indifference to the outcome is meant to avoid the attention of the alpha dog whose snarl can unhinge a not-so-innocent bystander.

Anyway, power is transitory. Today’s top dog whose growl echoes through the corridors of power can tomorrow be a whipped dog whose text messages are ignored. The confident snarl of the dog, once at the top, turns into the whimpering of a lost puppy looking for the next meal.

The fallen Mark Anthony (in Shakespeare’s Julius Caesar) famously struck back at the assassins of Caesar in the senate to enjoin his fellow underdogs to “cry havoc and let slip the dogs of war.”

Maybe, a beaten pup takes comfort in the belief that… every dog has his day.

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Malaysia didn’t go back to the future for Najib’s 1MDB verdict

By Daniel Moss

THIS DEVELOPMENT, in a Malaysian courtroom, truly is unprecedented.

Former Prime Minister Najib Razak was found guilty Tuesday on charges of abusing power, money laundering and criminal breach of trust. The verdicts in the high court capped the first of a series of trials stemming from scandals at state investment firm 1Malaysia Development Bhd., or 1MDB. The judge sentenced Najib to 12 years in prison and a fine of 210 million ringgit (nearly $50 million). His legal team will work to keep him out of custody during the appeals process.

The saga enmeshed Goldman Sachs Group, Inc. and Hollywood and spurred an outcry that helped drive Najib’s party from government in 2018, the first time the long-suffering opposition won a general election. The revolution was short-lived; the new cabinet collapsed less than halfway through its five-year term, largely because its two leaders, Mahathir Mohamad and Anwar Ibrahim, couldn’t bury decades of rivalry. But the team was in power long enough to preside over something extremely important — the arrest and charging of Najib with an array of corruption offenses, a first for anyone who ever held Malaysia’s top office.

For all the rancor and disillusionment that accompanied the implosion of Mahathir’s second spell as premier — he ran the country between 1981 and 2003, at the head of the party that Najib later led — the nonagenarian politician engineered a couple of big things. Najib’s appearance in a courtroom as a defendant was one of them. The pursuit of former leaders has characterized the transition to a fuller version of democracy in places like South Korea, the Philippines, and Indonesia.

Malaysia has now had its turn. Najib, who maintains his innocence, will appeal, and the legal process still has a long course to run. No matter. The Southeast Asian country has crossed a milestone in the rule of law. Goldman, which settled with the government last week for $3.9 billion, will be content to have sealed that deal before there’s any fallout.

When I was Bloomberg News’s bureau chief in Kuala Lumpur during the late 1990s, I couldn’t conceive of a prime minister busted for so much as a parking infringement, such was the authority of the long-ruling United Malays National Organization. Mahathir sat atop the power structure and survived a serious challenge during the Asian financial crisis from his deputy, Anwar, that ended in trials and imprisonment for his erstwhile protege.

Najib, then an up-and-comer, was never just a run-of-the-mill politician. Even after leading UMNO to historic defeat and being charged, he has rebounded as a popular figure. His pedigree is deeply woven into Malaysia’s political, economic, and social fabric. He is descended from aristocrats and is the son of the country’s second prime minister, who presided over contentious affirmative-action laws that enshrine benefits and preferences for the Malay majority.

Najib’s status is what makes it amazing that things got as far as a courtroom, much less that the judge turned thumbs down on all seven counts. The decision is emphatic enough that the appeals process will have to stand up to scrutiny. While it runs, Najib can keep rebuilding his following in UMNO and await a shift in the political winds; by-election candidates are happy to have selfies with him and his supporters are scattered through many branches of the party. There’s always the prospect of a royal pardon.

When UMNO maneuvered its way back into power in March by allying with defectors from Mahathir’s camp, the disappointment among reformers was palpable. Many feared political expediency would mean that the new prime minister, Muhyiddin Yassin, a party stalwart, would take a more lenient stance and that Najib would somehow escape the law. After all, given the pandemic and a deep economic slump, who could blame voters if they lost interest?

The real significance of these court proceedings so far is that they happened, period. Granted, it took a historic change of government. That may be one of Mahathir’s real services to his country after a life in and around politics. He created the circumstances that facilitated this unprecedented chain of events. The opposition now knows it can win, under the right circumstances, and leaders can be held to account.

BLOOMBERG OPINION

HK facing worst wave of virus

ONCE a coronavirus success story, Hong Kong is facing its worst outbreak yet, and policy makers are realizing how little they can do without making a bad situation worse.

New infections have broken records in nine of the last 20 days. But unlike other global cities, Hong Kong has been reluctant to impose stay-at-home restrictions or close nonessential businesses. Instead, the rules have gotten incrementally tighter, changing by the week. Public gatherings were limited to four people, then two. Dining-in was banned for dinner, then lunch. Masks were required on public transport, then all indoor public spaces, now everywhere outdoors as well.

The steady drip of half-measures goes against what the short history of the pandemic has shown to work: broad and stringent lockdowns levied early on the infection curve. In Australia and other places currently fighting flare-ups, officials have quickly reinstated tight restrictions.

While still modest compared with outbreaks in many global cities, the uptick in Hong Kong is particularly troubling, arriving after months with near-zero community transmission and from as yet untraceable origins — exactly the circumstances in which the tightest restrictions are thought to be the most effective.

But going further in Hong Kong could lead to a humanitarian crisis. “It is extremely difficult to enforce a lockdown in Hong Kong,” said Fernando Cheung, a lawmaker with a record of social advocacy. “There are more than 200,000 people living in subdivided units, some without private toilets and others combining their kitchens, toilets, and sleeping places all in one room. To ask people not to step out of that environment for a long period of time is inhumane and impractical.”

With the average apartment running around 500 square feet -— about the size of a New York City studio — it’s not just the city’s 1.4 million poorest residents living in tiny spaces. Refrigerators are too small, shelf space too limited to stock up on a week’s worth of food at a time. And while ordering groceries online has become standard in other modern cities, it isn’t common or easy in Hong Kong.

“A full lockdown? Nobody will say that this isn’t in the arsenal, but logistically it’s a nightmare,” Bernard Chan, a top adviser to Chief Executive Carrie Lam, said in an interview. “People still need to go out and buy groceries. And people live in such a tight environment, even going down the lift you’re exposed.”

NANO HOMES
The challenge facing Hong Kong offers more evidence of the disparate impact of the pandemic along existing social and economic fault lines. From the US to parts of Europe and South America, the most vulnerable populations are bearing the brunt of the health crisis, made worse by dysfunctional institutions and structures.

The city’s lockdown dilemma has already played out in some developing countries like India, where the measure caused economic devastation and starvation without slowing down the virus. The country abandoned its lockdown last month and cases have accelerated to nearly 50,000 a day.

Whether or not Hong Kong officials tighten restrictions further, time is running out on the current strategy. Some 80% of isolation beds and wards in public hospitals are full, and the city’s testing capacity is limited. The government is trying to add capacity with private testing labs in Hong Kong and mainland China, and preparing community isolation centers for patients in stable condition.

Meanwhile, the economy is already in deep recession, rocked first by months of anti-Beijing protests, then by the pandemic. The government reports second-quarter growth figures on Wednesday, and economists expect a contraction of 8.2% compared with a year ago and near the record first-quarter decline of 8.9%. The unemployment rate has more than doubled to 6.2% in the past 12 months, reaching a 15-year high.

In its current state of political and economic fragility, Hong Kong can’t impose heavy lockdowns to eliminate all cases the way mainland China does, said Lam Ching Choi, a medical doctor and adviser to Ms. Lam. Instead, the measures have to balance personal and economic needs with public health outcomes, and allow the city to remain an open, international financial center.

“Our trust level is maybe the lowest compared with western countries because of the social events that happened this year,” Ms. Lam said in an interview. “So we must listen to our people and not affect their work, their daily lives — like shopping or visiting their family members.”

The poorest in one of the world’s most unequal societies are already suffering under the new restrictions, even if they’re not officially locked down.

“This is a humanitarian disaster for the poor,” said Ng Wai Tung, a social worker at the Society for Communication Organization. Some of the city’s poorest families have to share masks because they can’t afford more. Many have lost jobs, he said, and homeless people have lost access to public showers.

At 62, Yu Kwan-yee works two cleaning jobs to afford the rent on a subdivided unit in a poor neighborhood. “I feel depressed, as I have to sit on the bed and face the walls,” she said. “When others can have room to hoard food, I need to go to wet markets every day. It’s risky — who wouldn’t worry?” — Bloomberg

US warns vs planting mystery seeds from China

US FEDERAL AGENCIES are investigating suspicious and unsolicited packages of seeds that have been arriving at addresses across America and appear to come from China.

Anyone who receives the shipments should hold onto the seeds and packaging and immediately contact officials, the US Department of Agriculture (USDA) said in a statement.

The USDA doesn’t have any evidence to indicate this is something other than a “brushing scam,” where a seller sends unsolicited packages so they can post false customer reviews online and boost sales, it said.

Authorities in Canada also said there have been reports of its citizens receiving unsolicited seed packages, echoing the USDA’s warning not to plant them.

“Unauthorized seeds could be the seeds of invasive plants, or carry plant pests, which can be harmful when introduced into Canada,” the Canadian Food Inspection Agency said in a statement. “These species can invade agricultural and natural areas, causing serious damage to our plant resources.”

China’s foreign ministry on Tuesday said that the problem parcels are forged and not from the Asian nation. China Post has strictly followed regulations that ban the sending and receiving of seeds, and has talked to its US counterparts about returning parcels to the Asian nation so it can investigate further, Foreign Ministry spokesman Wang Wenbin said.

The USDA is collecting the seed packages and will test their contents for anything that could be of concern to US agriculture or the environment, it said. — Bloomberg

Bio-secure bubble presents unusual challenges for NBA

LOS ANGELES — An NBA season like no other resumes inside a bio-secure bubble in Orlando this week, following a four-and-a-half month break, in what will probably be the most uniquely challenging title run in the 74-year history of the league.

Bringing home the Larry O’Brien trophy in October will require a level of mental toughness never seen before. Players have to stay away from their families for three months, play in front of empty stands and also subject themselves to regular COVID-19 tests.

“We are in uncharted waters,” Hall of Famer Reggie Miller said on Tuesday.

“Twenty two teams in a bubble, isolated on a campus, in a dorm living together in the middle of a pandemic. We’ve got civil unrest in our country and players have left their families at home.

“Whoever wins this championship, with everything that’s going on in the world, they will have wanted it.”

Miller, who will be calling games for broadcaster TNT, said he had only been at the Orlando campus for three days and was already “going crazy.”

Some players have even likened their stay at the Walt Disney World Resort to being in jail.

“Just left the crib to head to the bubble … felt like I’m headed to do a bid man!” Los Angeles Lakers forward LeBron James said on Twitter earlier this month, using a slang term to compare the stint in Florida to a prison sentence.

Milwaukee Bucks forward Giannis Antetokounmpo, an MVP candidate in search of his first championship, added: “This is going be the toughest championship you could ever win because circumstances are really, really tough.”

OFF-COURT CHALLENGES
The challenges extend beyond the bubble and the still raging pandemic that forced the NBA to shut down on March 11.

The death of several high profile Black people, including George Floyd who died in police custody in Minneapolis in May, has also galvanized the league to take action against racial injustice and police brutality.

The basketball courts at the Orlando campus will have the words “Black Lives Matter” written on them and players will be permitted to put social justice messages on their jerseys, shoes and warm up shirts.

“People talk about the physical aspect it takes to win a championship, and it’s a lot,” Miller said.

“But whoever wins this championship, that team is going to have to be mentally locked in.”

And the challenges the bubble presents will only grow as time passes.

“It’s fun now because they’ve been off for four-and-a-half months and they’re just glad to be playing basketball,” Miller said.

“Once teams start dwindling down and you’re still in the bubble, you’re still on the campus, you’re still getting that room service, your family is still not there and there’s still no fans, there’s still a pandemic on the outside and you’re still getting tested every single day.

“You, your team mates, your coaches, your support staff — everyone has to be mentally strong. All it takes is a small sliver for that to be fractured.”

No matter who wins the title, they will not have long to celebrate.

The finals are scheduled to end no later than Oct. 13 and training camps for the next season could begin as early as Nov. 10 with opening night on Dec. 1, according to ESPN.

The NBA also hopes teams can play in their home markets next season since asking all 30 teams to spend another season inside a bubble is probably not realistic. — Reuters

Elite new coach Racela confident wards can make things happen

TASKED to help steer the Blackwater Elite to respectability in the Philippine Basketball Association, new coach Nash Racela said he is confident of his wards making things happen but admittedly in a gradual manner.

Mr. Racela, 48, joined the Elite in the offseason and is looking to take a young crew and the struggling squad to a level of consistency in winning in the local pro league.

And having had the opportunity to work for some time with the pieces at his disposal, the former TNT KaTropa coach said the outlook for the team is positive and that they cannot wait to explore the team’s potential.

“Our mindset is to improve day-to-day and we always believe in the saying that slow progress is still progress,” Mr. Racela shared during his recent guesting, along with older brother Olsen, on Tiebreaker Vods’ Coaches Unfiltered podcast.

Mr. Racela, who also had a stint with Far Eastern University as coach, said they were seeing continued development in the team until the coronavirus disease 2019 (COVID-19) pandemic ground everything to a halt.

“Before the pandemic we were seeing improvements already in the team. If you watched us during our first tune-up game, we were beaten by a wide margin which was really embarrassing. But towards the end of February, our performance improved. Then came the pandemic and all the activities stopped. But again, as long as we focus on continuing to grow, I think we will be okay in time; that Blackwater can be competitive,” he said.

For the currently suspended PBA season, the Elite are made up of young veterans and upstarts.

With the team are Rabeh Al-Hussaini, Mac Belo, Niño Canaleta, Mike Cortez, Carl Bryan Cruz, Ed Daquioag, James Sena, Don Trollano, Yousef Taha and Roi Sumang.

Also in the lineup are Paul Desiderio, Chris Javier, Marion Magat, Diego Dario, Ron Dennison, Mike Tolomia and rookie Maurice Shaw.

Mr. Racela said with the kind of team they have he sees a running squad that could also put pressure on the defensive end.

“In terms of system, I’ve been consistent ever since that I want a team that runs. I think with Blackwater I’m very fortunate to have a young group of players at least majority of them who could really run and put pressure on the defensive end. That is what we want to be consistent with in our game,” he said.

The Blackwater coach went on to say that they see rookie Shaw as being of help although they are not putting too much pressure on the Filipino-American player in his first year with the team.

“With Maurice Shaw, initially we’re not setting high goals for him. We want him to be very serviceable, be a defender, be an anchor of the defense, grab some rebounds, intimidate the opposing teams especially when they attack the basket,” said Mr. Racela of his 35-year-old rookie, the second overall pick in last year’s draft.

“Based on our tuneup games, he has been able to do what we are asking of him. Slowly he has been adjusting to the style of play here in the PBA. We’re very positive with Maurice Shaw,” he added.

Like the rest of the league, Blackwater is preparing to return to gym training sessions after the PBA was given the nod to do so with the issuance of the Joint Administrative Order (JAO) from the government.

The JAO came from the Games and Amusements Board, Department of Health and the Philippine Sports Commission and contains the implementing guidelines governing the conduct of professional and nonprofessional sports training while the country is under community quarantine brought about by the COVID-19 pandemic.

Blackwater hopes to begin non-scrimmage workouts once it completes the first of a series of swab testings for all of its team personnel, which is one of the conditions set by the league, and approved by the government, for the return of activities. — Michael Angelo S. Murillo

Abelardo seeks to get back to winning in ONE Championship return

SET TO SEE action when ONE Championship makes its comeback tomorrow from a months-long, coronavirus-forced break, Filipino-Kiwi fighter Mark “Tyson” Fairtex Abelardo is angling to make it a winning return for him after losing in his previous fight.

Part of “ONE: No Surrender” on Friday in Bangkok, Thailand, Mr. Abelardo (19-7) is set to face promotion-debuting Fabrício “Wonder Boy” Andrade (2-2) of Brazil in a 67-kilogram catchweight encounter. 

Mr. Abelardo is coming off a loss to Troy Worthen in February this year in Singapore, the last live event staged by ONE before going to a break because of the coronavirus disease 2019 (COVID-19) pandemic. He yielded to his American opponent via unanimous decision.

Given the chance to get back on the winning track just as ONE makes its return, Mr. Abelardo said he is very excited about his upcoming fight.

“It’s amazing, it’s good to be back, especially with competing. When ONE said they were going to come back and they announced the show, it was perfect. I wanted to get on it and I was like, let’s do it,” said 28-year-old Abelardo.

Coming off a loss, Mr. Abelardo knows that his upcoming fight is important to stabilize his ONE career.

The Fil-Kiwi won his first three fights in the promotion, before going 1-2 in his last three assignments.

Despite that, Mr. Abelardo remains undeterred and views his recent “struggles” as opportunities to get better.

“It’s just like a small bump in the journey. You know you can’t win them all, you just got to get better, prove yourself and put on a better performance in the next fight and that’s what I plan to do,” he said.

No Surrender will be headlined by the flyweight muay thai world championship clash between reigning champion Rodtang Jitmuangnon of Thailand and compatriot Petchdam Petchyindee Academy.

Co-headlining is the featherweight muay thai world championship battle of champion Petchmorakot Petchyindee Academy of Thailand against Yodsanklai Iwe Fairtex.

The event will be played at the Impact Arena in Bangkok without live audience as a precautionary measure against the spread of the COVID-19 virus.

No Surrender will be aired live over ONE Sports+ and ONE Sports on July 31 at 8:30 p.m. with an encore telecast on Aug. 1 at 8 a.m. and Aug. 3 at 9 p.m. over ONE Sports, and on Aug. 1 at 11 p.m. over TV5. — Michael Angelo S. Murillo

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