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Customs bureau seeking to implement brokerless option for importers

THE Bureau of Customs (BoC) will formally ask President Rodrigo R. Duterte to issue a memorandum order giving importers the option to process transactions directly, without resorting to Customs brokers.

“We have drafted the necessary Customs memorandum order, and we are just preparing a brief going to the Department of Finance which we think will submit the same to the Office of the President for approval,” BoC Assistant Commissioner of the Post Clearance Audit Group Vincent Philip C. Maronilla told BusinessWorld in an interview at the Palace on Wednesday, when asked to comment on the President’s remarks against Customs brokers.

He added: “I think the goal of the President is to provide an option to our stakeholders that if they want to process for themselves or their representatives the release of their cargo at the Bureau of Customs, they can do it without the need to hire a Customs broker, and of course we have that option already under the Customs and Tariff Modernization Act, so what we are doing is not really a complete elimination of the Customs brokers but we will provide the importer the option to do it themselves.”

Mr. Duterte earlier said removing brokers from the bureau would eliminate corruption at the agency. “Take away the brokers and you would have cut corruption overnight,” he said.

Mr. Maronilla noted that being a Customs broker is a legitimate profession but said the bureau’s interpretation of the Palace’s intent is to provide a brokerless option.

Yung essence ng statement ng Presidente (The essence of the President’s statement) is to provide that option,” he said. “Ito ay formally ipro-propose namin sa kanya at hihingan namin ng approval (We will formally propose it to him and seek his approval). Before we go through with it, we will seek further guidance from the President.”

Adones S. Carmona, president of the Chamber of Customs Brokers, told ABS-CBN News last month that the country’s almost 12,000 brokers will resist the President’s plan to have them removed from the bureau.

Norberto V. Castillo, president of the Philippine Association of Customs Brokers in Education, said the government should also upgrade the bureau’s technology and professionalize its ranks.

He said Mr. Duterte cannot just order the removal of brokers because the government is mandated to enforce the Customs Brokers Act of 2004.

Customs brokers have rejected claims that they are to blame for corruption at the Customs bureau. — Arjay L. Balinbin

BPO demand for PEZA office space seen strong as supply runs down

OUTSOURCING industry demand for offices eligible for incentives is expected to top 400,00 square meters (sq.m.) this year and will be buoyant until 2020 as the supply of such projects begins to be depleted by a ban on new economic zones in Metro Manila, Santos Knight Frank said.

“PEZA (Philippine Economic Zone Authority) demand is still strong this year. It’s just been overshadowed by POGOs (Philippine Offshore Gaming Operators) because POGOs have taken up so much space, but we are still going to see BPO (Business Process Outsourcing companies) take-up, most of which is PEZA, probably over 400,000 square meters, and that can last through 2020, as well,” Morgan McGilvray, senior director for occupier services and commercial agency of Santos Knight Frank, said at a briefing last week in Makati City.

Administrative Order 18 took effect on June 22, freezing the processing of applications for the proclamation of economic zones in the capital region. There were 153 information technology (IT) centers and 10 IT parks that were affected by the AO. Of these, 22 were endorsed to the Office of the President and 131 approved by PEZA board but did not reach the OP.

“BPOs help create an ecosystem of growth, and that is especially magnified in provinces where the industry spurs not only real estate expansion but also economic development,” Rick M. Santos, chairman and chief executive officer of Santos Knight Frank, said.

Mr. McGilvray noted that as the capital exhausts its supply of PEZA-accredited buildings, many locators will shift their efforts to other cities.

“As we run out of PEZA-accredited space in Metro Manila… there will probably be less demand in Metro Manila,” he said with the industry possibly trying out different deal structures if they aren’t willing to relocate.

“Some of them will look at markets outside of Metro manila. They’ll look at Cebu, they’ll look at the provinces as potential next destinations for their offices,” he said.

“For those companies that just need to be in Metro manila for whatever reason, and don’t want to be in the provinces just yet, they might set up separate entities that are not PEZA-accredited so that they can lease in Metro Manila,” he added.

Santos Knight Frank noted that around 25% of the industry’s employees are based outside of Metro Manila, mainly in Baguio, Clark, Naga City, Iloilo, Cebu, Bacolod, Puerto Princesa, and Davao City, with their direct hires projected to grow to 500,000 by 2022. Overall, the industry employs 1.3 million directly and 4.1 million indirectly.

The cities that these locators are considering are Iloilo, Bacolod, Clark, Cagayan de Oro, and Davao City. It projects that at least 360,000 sq.m. of new office supply will be added in these areas. — Vincent Mariel P. Galang

PCCI reports bottleneck in FDA product approvals

THE Philippine Chamber of Commerce and Industry (PCCI) said its members are reporting difficulty in obtaining approvals from the Food and Drug Administration (FDA) prior to offering their products on the market.

PCCI President Alegria Sibal-Limjoco told reporters after a media briefing Friday that Visayan firms expressed concerns about the FDA approval process at a meeting in early September.

The chamber is preparing resolutions to submit to the government at PCCI’s 45th Philippine Business Conference and Expo on Oct. 16 and 17.

“(The process) really dragged on for more than two years for them to get their products (approved). These are small, micro businesses. Even chocolate products did not get FDA approval.”

The Anti-Red Tape Authority (ARTA) in September ordered the FDA to clear its backlog of applications as part of a broader ease-of-doing-business effort.

Ms. Limjoco said that after members were told that many of their applications are deemed approved after a certain waiting time, the members sought FDA approval in “black and white” before they invest in marketing their products.

She noted that government processes may have begun to improve. She said that more local government units are now applying for PCCI’s annual “Most Business-Friendly LGU” award.

“At least now, with the new ARTA Director-General… there are more cities, provinces that make sure that they are (complying) with the ease of doing business law,” Ms. Limjoco said.

Jeremiah B. Belgica was appointed ARTA Director-General in July, more than a year after President Duterte signed the Ease of Doing Business Law.

Under the law, government agencies have three to 20 days to process permits. — Jenina P. Ibañez

Will REITs soon be within reach?

Real Estate Investment Trusts (REITs) had been gaining propulsion globally for many years. Locally however, since the introduction of REITs a decade ago, industry players have yet to launch the first such offering to the public. Recently, there have been positive regulatory developments that are expected to provide an attractive landscape for potential players to proceed. While it is true that there are many opportunities in this field, players must find ways to operate within the regulatory framework, allocate the asset portfolio effectively, comply with governance requirements, and adapt to continuing industry disruption.

THE SPONSOR
The big players in the real estate industry see REITs as an alternative venue for capital raising. It is a platform where Sponsors can unlock the value of their existing properties and receive upfront cash proceeds which can be redeployed to future growth projects. These big players act as Sponsors, who own the assets. They will need to weigh options as to the type of assets, among their portfolio, that can be contributed to the REIT company (REIT Co.), which will in turn operate the asset. A key point for the Sponsor in deciding on which asset to contribute is the asset’s ability to generate steady income since the law requires annual dividend declarations by the REIT Co. It is also equally important for the Sponsor to determine the proper valuation of the asset transferred, to ensure that shares received from the REIT Co. are commensurate to the value of the assets given up.

The Sponsor will have to be prepared for how the transaction will impact its financial reporting, for both the separate and consolidated financial statements given the continuing need for transparency to its stakeholders and compliance with governance requirements. Before the actual transaction, it is important for the Sponsor to simulate the accounting implications in its books, particularly for the transfer of property to the REIT Co. in exchange for cash/shares or other considerations, and the treatment of its investment in REIT Co., on a continuing basis.

It should be noted that in the separate financial statements, if the asset contributed by the Sponsor is other than cash, there is a need to assess how the value of the investment in REIT Co. will be booked, which may result in a gain or loss. Assuming the REIT Co. is controlled by the Sponsor at initial contribution, the transfer is a non-event transaction in the consolidated financial statements reporting.

Under the legal framework, the REIT Co. is required to sell its shares during the initial public offering (IPO) and this will continue in the subsequent three-year period to meet the Minimum Public Ownership (MPO) requirement of 33% to 67%. Given the MPO requirement, there should be a continuing assessment if the Sponsor still has control over the REIT Co., or if such control has been reduced to joint control or significant influence or a simple investment in a financial asset. The accounting for the type of relationship will impact the income reported and balance sheet of the Sponsor.

THE REIT CO.
Given the MPO requirement, the REIT Co. should have a clear plan on the timing of the share offering and the continuing ability to price the shares commensurate to their underlying value.

Another strategic decision for the REIT Co. is to determine the composition of a Fund Manager, who will implement investment strategies, and a Property Manager, who will manage the real estate assets considering the need to sustain the annual earnings. As contained in the law, such earnings will be tax-free to the extent of income that is distributed, but the savings from taxes will have to be escrowed in the meantime with the Bureau of Internal Revenue (BIR) until the MPO requirement is met.

There is a need for a strong backbone to ensure continuing transparency and above-par governance. The REIT Co. will have to consider the financial reporting implications of the accounting for the asset received from the Sponsor; the classification of shares issued; the treatment of dividends; and the treatment of cash escrowed by tax authorities in relation to the MPO requirement.

Furthermore, the relationships of the REIT Co. and the Sponsor with each of the Property Manager and Fund Managers will have to be studied carefully to determine the existence of control, joint control or significant influence, or possible treatment as a financial asset investment.

Any tax implications from the perspective of all parties involved will have to be studied as well in order to ensure that the structure and the contracts are designed in a most tax efficient way.

THE NEED TO BE AGILE
The potential players will have to be cognizant of the continuing disruptive influences that are happening in the REITs space in other parts of the world. REIT assets today can just be in the form of malls, office space and industrial buildings. In the future, they can be assets in alternative sectors, such as data centers, wireline, communication towers, electronic vehicle charging zones, solar canopies, or battery storage, among others. In fact, several REIT jurisdictions have granted REIT status to these alternative property types. These influences may come from changing customer behaviors among space occupants, continuing demand for work and play balance, technological advancements and easing regulatory frameworks. Given these, it is of the utmost for the management to keep an open mind to these changes and be able shift the gears as quickly as needed.

Regulators on the other hand will have to continue paving the way for business-friendly legislation, which can translate to strong job growth, high occupancy and additional tax collections.

There are many moving parts in the REITs web. Hopefully, once the above fundamentals and preparations are put in place, the once blurry and far off horizon for REITs can soon be within reach.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Cyril Jasmin B. Valencia is the Real Estate Sector Leader and Partner of SGV & Co.

FEU begins second round with win over UP in OT

By Michael Angelo S. Murillo
Senior Reporter

THE Far Eastern University Tamaraws began the second round of University Athletic Association of the Philippines Season 82 on a winning note, outlasting the University of the Philippines Fighting Maroons, 82-79, in overtime on Sunday at the Mall of Asia Arena.

Had control of the game for much of the time, the Tamaraws (4-4) had to dig deep in the end and survive the ferocious fight back by the Maroons (5-3), who dropped back-to-back games with the loss.

Earlier in the day, the De La Salle Green Archers (4-4) improved to a .500 mark in the ongoing season with an 85-61 rout of the National University Bulldogs (1-7).

Showing better ball movement and steady defense, the Tamaraws got traction in the early goings of the first quarter, building an 18-5 lead over the Maroons by the four-minute mark.

UP though would finish the period strong with Kobe Paras at the forefront.

When the quarter smoke cleared, the Maroons were just down by a point, 18-17.

UP build on its run in the first canto to begin the second quarter, going on a 4-0 run in the opening moments to go on top, 21-18.

But Ino Comboy and Ken Tuffin helped FEU regain its footing, producing buckets to push their team ahead, 26-23, by the halfway point.

The Tamaraws stayed the course for the rest of quarter despite the UP challenge and were on top, 30-27, at the halftime break.

In the third quarter, UP attempted to regain some ground early but LJ Gonzales and the Tamaraws kept the impact of the Maroons’ charge back to a minimum.

FEU was still on top, 44-34, with five minutes to go.

The Tamaraws sustained the pile-on for the remainder of the frame on their way to a greater separation of 60-43 heading into final quarter.

Sensing that the game was slipping from their hands, UP came out with a sense of urgency to begin the fourth.

Ricci Rivero, Noah Webb and Bright Akhuetie pushed the Maroons to within 10 points, 62-52, with 8:28 still to go.

FEU though weathered the storm, creating more breathing space, 67-52, after a minute.

It maintained a safe distance of 69-54 with five minutes left in the game.

UP, however, made another rally to tie the score at 69-all with 24 ticks to go.

The Tamaraws sued for time after to set up a play to win.

FEU milked the clock all the way to the end but Comboy’s heave from beyond the arc failed to hit the mark, sending the game to overdrive.

The Tamaraws got it going first in overtime, going on a 8-3 run in the first three minutes to build a 77-72 lead.

UP then tied the score at 77-all with 1:05 before FEU went on a 5-2 run to take an 82-79 lead with 18 seconds left.

The Maroons called timeout after.

They went for a triple to try and level the score but Javi Gomez De Liano’s attempt did not go in, handing the win to the Tamaraws.

Tuffin top-scored for FEU with 18 points with Gonzales adding 17 and Pat Tchuente 11 points.

UP, meanwhile, was paced by Paras with 22 markers and Akhuetie following up with 14.

“It was a hard-earned win for us. It’s what we expected. We just focused on what was in front of us and what we had to do. We started well but did not end well in regulation. Good thing we were able to recover in overtime,” said FEU coach Olsen Racela after their win.

LA SALLE NOTCHES FOURTH WIN
Meanwhile in the first game, La Salle collared its fourth win in eight matches in Season 82 with a domination of NU.

Justine Baltazar led the Archers with 25 points and 25 rebounds followed by Andrei Caracut with 16 points.

Jamie Malonzo was the other La Salle player in double digits with 12 markers before fouling out.

For NU it was the Ildefonso brothers, Dave and Shaun, who showed the way with 11 and 10 points, respectively.

The loss was the second in a row for the Bulldogs.

Gregorius hits slam as Yanks extend dominance over Twins

NEW YORK — Didi Gregorius highlighted a seven-run third inning with a grand slam, and the New York Yankees seized a commanding two-games-to-none lead in the American League Division Series with an 8-2 victory over the Minnesota Twins on Saturday.

The Yankees won their 12th straight postseason game against the Twins, beginning with Game 2 of the 2004 ALDS. It is the longest winning streak by one team over any opponent in the postseason, and the Yankees are 15-2 all-time against Minnesota in the playoffs. What’s more, Minnesota has lost its last 15 postseason games, the longest playoff losing streak in major league history.

The Yankees led 3-0 when Gregorius came up against Tyler Duffey — who struck out Gregorius on four pitches in Game 1. Gregorius fell behind 0-2, took a ball in the dirt then fouled off a pitch before sending a high fastball into the second deck in right field, tucking the drive just a few feet inside the foul pole.

Gregorius appeared to will it fair and then earned a curtain call following his fourth career postseason homer.

“I knew it was fair, but just thinking back to my at-bats that I had against (Duffey) yesterday, and after I had two strikes, he threw me that fastball, so I was prepared for it this time after he threw me the curveball in the dirt,” Gregorius said after the game. “I was ready for it this time, so that’s why my reaction was like that.”

It was New York’s 12th postseason grand slam and first since Robinson Cano hit one in Game 1 of the 2011 ALDS against Detroit.

Edwin Encarnacion hit an RBI single in the first over the leap of shortstop Jorge Polanco, and the Yankees knocked out Minnesota starter Randy Dobnak (0-1) with two singles and a walk in the third inning. The Yankees extended the lead on Giancarlo Stanton’s warning-track sacrifice fly and Gleyber Torres’ RBI single to start the third.

After Gregorius homered, the Yankees added their eighth run when Brett Gardner hit an RBI single off Devin Smeltzer that scored DJ LeMahieu.

Mitch Garver hit an RBI single in the fourth inning, and he scored on an RBI double by Luis Arraez in the ninth for Minnesota, which has never overcome a 2-0 series deficit in the wild-card era.

“We handle our business and do what we do in a very particular way,” Twins manager Rocco Baldelli said, “and we’ve done it our way all year long. … We’re not going to change that because we’re down 0-2 in a playoff series or for any other reason.

“We rely on ourselves. We pick ourselves up. We’ve done a great job with that all year long. Any sort of stretch where things aren’t going well, that’s fine. We’re going to deal with that, and we’re going to be perfectly OK, and we’re going to come out fighting and ready to go.”

The Twins struck out 14 times and went 1-for-7 with runners in scoring position. Miguel Sano struck out four times, a night after hitting one of the Twins’ three homers in Game 1.

New York’s Masahiro Tanaka (1-0) allowed one run on three hits in five innings. He struck out seven and walked one.

The Twins squandered an early chance to go ahead when Eddie Rosario hit into a double play with runners on first and second to end the first. After Minnesota scored its run in the fourth inning and still had two on and one out, Tanaka ended the threat by striking out Arraez and Sano.

Four relievers followed Tanaka and allowed one run the rest of the way. The game ended when Jonathan Loaisiga struck out Sano.

A week after getting married, Dobnak allowed four runs on six hits in two-plus innings, with two walks and no strikeouts. He was named the starter instead of Jake Odorizzi after the 10-4 loss in Game 1 on Friday.

Many fans in Yankee Stadium, aware of Dobnak’s background as an Uber driver, directed loud chants of “Uber, Uber” in his direction. — Reuters

Meralco Bolts defeat Fuel Masters to improve to 3-1

THE Meralco Bolts booked back-to-back wins in the Philippine Bassketball Association Governors’ Cup after defeating the Phoenix Pulse Fuel Masters, 111-94, in league action on Sunday at the Smart Araneta Coliseum.

Found its groove as a team early on, Meralco (3-1) just did not take its foot on the gas pedal to continuously build momentum and make its way to joining the early leaders of the season-ending PBA tournament with the win while adding to the woes of Phoenix Pulse (1-4).

The Bolts got off to a strong start led by Baser Amer and Bong Quinto.

They raced to a 20-9 lead in the opening seven minutes of the first quarter, holding sway until the end of the frame, 28-16.

In the second canto the two teams slugged it out at the start.

Meralco though still had control of the game midway, 42-27.

It kept Phoenix at bay for the rest of the period and held a 52-37 advantage at the half.

Import Eugene Phelps tried to rally the Fuel Masters at the start of the third canto only to be met by a Bolts crew determined to keep its hold on the game.

The two teams fought to a 66-48 count in favor of Meralco at the halfway juncture of the quarter.

It was something the Bolts used to build an 80-61 advantage after three quarters.

Had firm control of the contest as the fourth quarter unfurled, Meralco kept the storyline.

The Fuel Masters got early buckets to begin the payoff canto but they were not enough to chip significantly away at the Bolts’ lead with import Allen Durham throwing his weight around.

It was a huge 99-76 advantage for Meralco with 4:52 left in the game and it was all Bolts from there on.

Mr. Durham paced the Bolts with 27 points and 12 rebounds with Mr. Amer finishing with 26 points.

Mr. Quinto and Raymond Almazan had 14 each with Chris Newsome adding 13.

For Phoenix Pulse it was Mr. Phelps who led with 31 points and 24 rebounds. — Michael Angelo S. Murillo

Philippines settles for bronze in second leg of ASEAN volleyball grand prix

By John Bryan Ulanday

THE Philippine women’s volleyball team bowed to Indonesia, 21-25, 17-25, 25-21, 21-25, to settle for a bronze medal anew in the second stop of the inaugural ASEAN Grand Prix at the Sta. Rosa Multipurpose Sports Complex in Laguna on Sunday.

Veteran spiker Jovelyn Gonzaga nailed 14 points on 12 hits aside from 11 receptions while Alyssa Valdez chalked up 13 markers and 18 digs, in a losing cause for the home team which failed to improve on its similar third-place finish in the first leg held in Thailand a few weeks ago.

Playmaker Jia Morado dished 22 sets but her other usual attackers in Mylene Paat (9) and Ces Molina (6) got silenced en route to the painful loss of the Philippine volleybelles who even dragged the Indonesians to a thrilling five-setter match in the Thailand leg.

Pertiwi Megawati Hangestri erupted for 26 points on 21 kills, three blocks and two aces while Arsela Purnama Nuari and Ratri Wulandari contributed 17 and 12, respectively, for Indonesia which also repeated as the silver medalist of this first-ever ASEAN GP.

Thailand, which also mopped up the first leg, completed a sweep of the second leg once again en route to another gold medal finish after making short work of winless Vietnam, 25-21, 25-10, 25-11.

Despite the return of Valdez, Morado, Gonzaga and Maddie Madayag who missed the match versus Thailand the other day due to their club commitments, the Filipina spikers still succumbed against the visitors in the first two sets, 21-25 and 17-25.

But the nationals got energized by a frenetic Philippine home crowd as they escaped with 25-21 win in the third before falling short anew in the fourth as Indonesia proved to be the steadier team down the wire to clinch the win.

This second leg of the ASEAN GP was a test event of the Philippine Southeast Asian Games Organizing Committee (PHISGOC) for the volleyball competition in the biennial sports tilt set for Nov.30 — Dec. 11 here.

Livewire Adiwang makes ONE debut and everybody should take notice

By Michael Angelo S. Murillo
Senior Reporter

WHEN ONE Championship holds its centenary show — “ONE: Century” — on Oct. 13 in Tokyo, Japan, Team Lakay will have a new face competing from its roster of athletes in livewire strawweight fighter Lito “Thunder Kid” Adiwang.

A product of the highly successful ONE Warrior Series, Mr. Adiwang plays the main show of Asia’s steadily growing combats sports promotion for the first time as he takes on hometown bet Senzo Ikeda in a preliminary fight in part one the two-pronged ONE: Century event happening at the famed Ryogoku Kokugikan in Sumida City.

Mr. Adiwang (9-2) will try to get his ONE career on a winning start after earning a contract to be part of its lineup of fighters following his topping of “Warriors Series 7” in August, where he defeated Anthony Do of Vietnam by unanimous decision in the main event.

For local fight analyst Nissi Icasiano, Benguet native Adiwang is a talent to watch out for and take notice on his debut just as he said that the entry of Mr. Adiwang into ONE is a testament to the organization that Team Lakay is.

“When we talk about Team Lakay it is synonymous to Philippine MMA and throughout the years since its inception it has produced a number of homegrown talents who have competed not only in the local scene but also international. You have guys like Eduard Folayang, Geje Eustaquio and Kevin Belingon to the new generation of fighters who have established their mark like Danny Kingad, Stephen Loman and Joshua Pacio. And, now, you have Lito adding his name to that. It shows that Team Lakay is evolving and continuing to grow,” said Mr. Icasiano in an interview.

“Lito is a talented fighter who I consider as a livewire opponent. You cannot underestimate a fighter like him because he is very unpredictable but exciting. I consider him as a throwback Team Lakay fighter because he is a pure striker though he has a good takedown defense. He draws cheers because of his standup game and very effective which is very rare in MMA,” said the analyst.

Mr. Icasiano likened Mr. Adiwang to teammate and former ONE bantamweight champion Belingon, saying “they have the same style and demeanor and always go for the knockout,” adding such qualities should serve Mr. Adiwang well as he further establishes his footing in ONE.

But the analyst said Mr. Adiwang still needs to polish his game if he wants to go places.

“Lito is still a diamond in the rough but I see as a perennial contender in him. This is strawweight and he can handle it. I believe he is going to be successful and his style is great to watch,” said Mr. Icasiano.

Zeroing in on the Adiwang-Ikeda fight, the analyst said it has the makings of an explosive encounter between two highly capable strikers.

“His fight versus Ikeda is a great pairing as far as I’m concerned. To have these two strikers — Adiwang’s muay thai which he complements with wushu, and on the other hand Ikeda, a former boxer and whose boxing skills he pairs with grappling — should be a good one. Ikeda poses a problem for Adiwang as he is coming from flyweight and should have the power and size but Adiwang is a versatile fighter and has the ability to adjust,” Mr. Icasiano said.

“I see both fighters not going for the takedown and stand and bang for three rounds. I don’t see it going the full route,” he added.

PHL water polo team in Singapore as part of SEA Games preparation

LOOKING to sharpen its game as its aims for a first-ever gold medal in the Southeast Asian Games, the Philippine water polo team is in Singapore to compete at the FINA Water Polo Challengers Cup 2019.

Happening from Oct. 8 to 13 at the OCBC Aquatic Centre, the event will see the nationals pit their skills with some of the best teams in the world.

It will mark the second time that the Philippines is competing in the tournament after the 2008 edition of it held in Kuwait.

Having the chance to compete in the tournament, the country’s water polo team said it would go a long way in their push to finish at the top of the podium at the 30th SEA Games here later this year.

“It’s (Challengers Cup) a very important event for the national team. It’s an event where we can gauge where we are in terms of our readiness, our preparation for the SEA Games because other Southeast Asian nations are also participating in this tournament,” said veteran coach Rey Galang of the Singapore tournament.

Mr. Galang and the Philippine team arrived in Singapore on Saturday morning.

In the Challengers Cup, the nationals are in Group A with Ireland, Malaysia, Zimbabwe and host Singapore. In Group B are Austria, India, Chinese Taipei, Hong Kong and Indonesia.

The Philippines will open its campaign on Oct. 8 against Ireland.

“This is really good for our national team because it’s an opportunity for the players to improve and get experience because we’ll be able to face tough competition in the Challengers’ Cup,” said former water polo star turned coach Dale Evangelista.

In the 2017 edition of the SEA Games, Singapore took the gold medal, followed by Indonesia and host Malaysia.

The water polo event in the 2019 SEA Games will take place at the Aquatic Centre in New Clark City in Tarlac.

The 30th SEA Games, happening from Nov. 30 to Dec. 11, is touted to be the biggest to be staged in the Philippines, involving 11,000 athletes and officials from the 11 member nations , 9,000 volunteers, 530 events and 56 sports.

Forty-four venues have been short-listed for the event scattered in different parts of the country.

The last time the country hosted the SEA Games was in 2005. — Michael Angelo S. Murillo

ALDS: Cole fans 15, Astros’ pen holds on to down Rays

HOUSTON — Gerrit Cole set a club postseason record with 15 strikeouts, while battery mate Martin Maldonado delivered both at the plate and behind it as the Houston Astros held on for a 3-1 win over the visiting Tampa Bay Rays in Game 2 of their American League Division Series on Saturday.

Cole (1-0) became just the seventh pitcher in postseason history to record at least 15 strikeouts, the first since Roger Clemens posted 15 against the Seattle Mariners in Game 4 of the 2000 AL Championship Series. Mike Scott held the franchise postseason record for strikeouts with 14 set Oct. 8, 1986, against the New York Mets in the National League Championship Series.

“He’s unbelievable,” Astros shortstop Alex Bregman said of Cole afterward. “Seriously, he’s got the best stuff in baseball. He’s a bulldog on the mound. He’s more prepared than anybody.”

Dominant by every measure, Cole surrendered just four hits and did not issue a walk until his 3-2 slider to Rays shortstop Willy Adames just missed the outside part of the plate with two outs in the top of the eighth.

Cole ceded the mound to closer Roberto Osuna, who promptly struck out Yandy Diaz on three pitches to preserve what was then the Astros’ two-run advantage.

After the Astros added a run in the bottom of the eighth, Osuna surrendered a run in the ninth and was pulled with the bases loaded with one out.

Will Harris came on, striking out Travis d’Arnaud and getting Kevin Kiermaier to ground out to get the save. The Astros will take a 2-0 series lead to St. Petersburg for Game 3 on Monday.

Cole threw 118 pitches, 83 for strikes, and his 33 swinging strikes were the most in a playoff start in the data-tracking era. He averaged 97.9 miles per hour on 60 four-seam fastballs, struck out every batter at least once, and fanned Ji-Man Choi and Brandon Lowe three times each.

“It’s hard to put into words exactly what his performance meant to us tonight,” Houston manager AJ Hinch said of Cole. “But, man, he was good. What a game.”

“He was majestic today,” Adames added. “… He was commanding all the pitches tonight and making it tough.”

The Astros scratched across one run off Rays starter Blake Snell (0-1), with Bregman winning a seven-pitch confrontation by drilling a leadoff home run to left field in the fourth inning.Houston had runners on the corners with no outs in the fifth yet failed to score against Rays right-hander Diego Castillo.

The Astros needed a bloop single to center from Maldonado in the seventh to double their 1-0 lead. Maldonado, who erased Adames as part of a strikeout-throw out double play in the sixth, drove home Yuli Gurriel after twice failing to deliver a safety squeeze bunt. — Reuters

Racasa rules PAPRISA chess meet; vying for Thailand chess tourney

THE COUNTRY’S youngest Woman Fide Master Antonella Berthe Murillo Racasa swept her all matches to bag a gold medal of the Pasig City Association of Private School Administrators (PAPRISA) district chess meet of elementary girls division held at the St. Paul College Pasig last Friday.

Racasa, a grade 6 pupil of Home School Global finished undefeated with 6.0 points of Chess Standard Competition.

The 12-year-old Racasa scored victories over Arielle Cayanan, Reign Janilla Cacela, Christelle Abeleda, Krisna Louise Jose, Agatha Jane Bonafe and Kyle Jhazmin Clarito, respectively.

Racasa next assignment is Pattaya Chess Club Open 2019 slated from Oct. 19–30 in Pattaya, Thailand.

Her local and international chess campaign wouldn’t be possible with the support of Mandaluyong Mayor Menchie Abalos, councilor Charisse Abalos, Rotary Club past president Rogelio Lim of Boni Towers, Rose Montenegro, immediate past president/CEO of Makati Med. and president/CEO of the ALC Group of Companies, D. Edgard A. Cabangon. — Marlon Bernardino