Home Blog Page 1015

BSP may cut by 100 bps more this year

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) may cut by a total of 100 basis points (bps) in the last three months of 2024, Fitch Solutions’ unit BMI said, amid a downtrend in inflation and the start of the US Federal Reserve’s own easing cycle.

“We expect the BSP to ease more aggressively over the coming months,” BMI said in a report.

“Crucially, we now forecast the Fed to cut by a total of 125 bps in 2024. On this projection, we think that the BSP will have more policy room to maneuver with a 100-bp cut of its own.”

If the BSP cuts by a cumulative 100 bps this year, this would bring the key rate to 5.5% by yearend.

BSP Governor Eli M. Remolona, Jr. earlier this week said that the central bank has room to deliver a 50-bp rate cut in one meeting, but this would only be in a “hard-landing” scenario.

The Monetary Board in August reduced the benchmark rate by 25 bps to 6.25% from 6.5%.

BMI previously projected two 25-bp rate cuts for the year but revised this outlook after the US Federal Reserve delivered a jumbo 50-bp cut in September.

“Such a move essentially provides the BSP with leeway to ease more aggressively,” it said.

BMI now expects the Monetary Board to deliver a 50-bp cut on Oct. 16 and another 25-bp cut on Dec. 19.

“We have highlighted that the economy is in need of support following second-quarter gross domestic product (GDP) data,” BMI said.

The Philippine economy grew by 6.3% in the second quarter, driven by the 11.5% expansion in gross capital formation. On the other hand, private consumption rose by 4.6% from 5.5% a year ago.

“The boost received from a surge in investment activity will prove difficult to sustain against the backdrop of high interest rates. In the face of an economic slowdown, policy makers will likely seek to unwind restrictive policy settings to bolster growth at the earliest possible time,” it added.

The government is targeting 6-7% growth this year. To meet the lower end of the target, the economy should expand by 6% in the second half.

“The BSP’s decision to lower interest rates ahead of the Fed is a sign that policy makers are starting to grow increasingly concerned about the economy’s health,” BMI said.

Easing inflation will help support further easing by the central bank, it said.

“For starters, inflation has become less of a concern. At 3.3% in August, the headline figure is now comfortably within the central bank’s target range of 2-4%.”

September inflation likely slowed to 2.5%, according to the median estimate in a BusinessWorld poll of 15 analysts conducted last week. If realized, this would also be the slowest inflation print in nearly four years or since the 2.3% clip in October 2020.

The recent tariff cut on rice imports is likely to lower inflation by 1.2 percentage points (ppts), which may bring inflation to 2.8% by end-2024,” BMI said. 

“What is more reassuring is that we think the Fed is set for another 50-bp cut in December, providing the BSP with more policy room to maneuver without external stability constraints. If we are right, nominal interest rate differentials between the two countries will be maintained at current levels of around 125 bps,” BMI said.

For next year, BMI said that the BSP will be able to continue on its easing cycle, likely cutting rates by a total of 100 bps.

“We expect the terminal rate to settle around 4.5%. This would represent 200 bps worth of cuts from the peak to the trough, bringing interest rates back to pre-pandemic levels,” it said.

It noted that this outlook is driven by anticipations of the Fed’s easing cycle to be in “full swing” by next year and expectations of inflation settling within the BSP’s 2-4% target range, barring any external shocks.

“Moreover, our 6.2% growth projection for 2025 is still below trend. And policy makers will look to lower rates further to bolster growth in the absence of additional constraints.”

The government is targeting 6.5-7.5% growth next year.

On the other hand, BMI flagged risks to its monetary policy outlook.

“While we are confident that the BSP will continue to loosen policy, we are less sure of its magnitude. The October meeting could very well conclude with just a 25-bp cut if policy makers adopt a more cautious approach towards easing following cuts in the reserve requirement ratio.”

The recent cuts in banks’ reserve requirement ratios (RRR) would give the central bank “less flexibility” to ease policy rates, BMI said.

The BSP last month announced it would reduce the RRR of banks and nonbanks, effective on Oct. 25. It will slash the ratio for big banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5%.

“On top of that, our BSP forecast hinges on the Fed’s interest rate trajectory. If the Fed chooses to cut by 25 bps in December instead of 50 bps, the BSP could stand pat in December,” BMI added. — Luisa Maria Jacinta C. Jocson

Sowing the seaweeds of success

The EY Entrepreneur Of The Year 2024 Philippines has concluded its search for the country’s most visionary leaders shaping opportunities and transforming industries. It is a program of the SGV Foundation, Inc., with co-presenters: the Asian Institute of Management, the Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange.

Ambassador Leehiong Wee
Chairman
W Group, Inc.

AMBASSADOR LEEHIONG T. WEE’S life story exemplifies the power of perseverance, vision, and entrepreneurial spirit.

From his early days of balancing a variety of jobs to support his family, to his ascent as the leader of the W Group, a multibillion-peso conglomerate, his journey embodies the quintessential rags-to-riches narrative.

Yet, it is his strategic foresight, commitment to innovation, and dedication to societal upliftment that set him apart as a paragon of entrepreneurial excellence.

“Being poor is a blessing,” said Mr. Wee whose early life was marked by financial hardship, but his resolve led him to pursue higher education against all odds.

Driven by his modest upbringing, he began his entrepreneurial journey at the age of 14, selling sweepstakes tickets to contribute to his family’s livelihood. At 16, he left Zamboanga on a ship bound for Manila, where he secured a job as a proofreader in a Quiapo printing press.

His tenacity shone through as he balanced a variety of jobs, from tutoring to the physical task of handling textile bales in Divisoria, all while attending night classes at the Mapua Institute of Technology, where he graduated with a degree in electrical engineering.

A potential academic future at the Massachusetts Institute of Technology (MIT) beckoned, but financial constraints and a sense of duty to his family led him down a different path. This decision would eventually pave the way for his success in the seaweed trading, export, manufacturing and processing industry.

Mr. Wee carved out a specialized segment within the seaweed processing industry by focusing on the extraction of carrageenan, a move that has had a significant impact on the sector and positioned the Philippines as a key player in the global carrageenan market. His stewardship has been instrumental in the growth of the W Group, which has diversified its portfolio to include a range of businesses, from food ingredients to real estate.

The group’s subsidiaries include W Hydrocolloids, Inc., a company that has been marketing and distributing high-quality carrageenan products throughout the world under the trade name, Rico Carrageenan. Another arm, the Marine Resources Development Corp. (MRDC), not only supplies carrageenan products within the Philippines but also invests in research and development to advance the industry.

Philippine Bio-Industries (PBI) stands out as Asia’s first fully automated facility dedicated to refined carrageenan production. Additionally, Cebu Carrageenan Corp. (CCC) focuses on processing and manufacturing seaweed chips, for distribution internationally and to its subsidiaries.

The W Group has also ventured into real estate through W Landmark, Inc. and First Marcel Properties, Inc., both of which are involved in property development projects.

The company’s dominance in the global seaweed market, holding a 40% share and anticipating 20% sales growth, speaks of Mr. Wee’s visionary approach. His strategic expansions into Indonesia and the pharmaceutical sector, along with efforts to increase the company’s real estate portfolio, underscore his commitment to growth and innovation.

His impact reaches far beyond his business achievements. His introduction of seaweed farming in Mindanao have played a role in transforming areas previously affected by conflict into regions of stability and growth, where many individuals have transitioned from conflict to embracing seaweed farming as a peaceful and sustainable means of livelihood. These efforts underscore the positive social, economic, and environmental impacts of seaweed farming.

The company’s products have become synonymous with quality, adhering to the highest standards and certifications with diverse blends for products such as frozen desserts, jellies, meats, dairy beverages, sauces, cheese, confectionary, beer, pet food, air fresheners and pharmaceuticals.

His efforts have not only elevated the W Group but have also contributed to poverty alleviation, food security, job creation, and the health of marine ecosystems. Recognized for his influential role and contributions, Mr. Wee was awarded the 2020 Outstanding Mapúan in Government Service. His tenure as Ambassador to Indonesia further highlights his impact on both the business and diplomatic fronts.

From humble beginnings to leading a global enterprise, Mr. Wee’s story is not just one of personal success but a blueprint for aspiring entrepreneurs. His advice to the next generation emphasizes the importance of passion, perseverance, and grit.

“No pain, no gain,” he advised, encapsulating the ethos that has guided his remarkable career.

His life and career serve as a beacon for those aspiring to make a mark in the world of business, demonstrating that with determination and vision, even the most humble beginnings can lead to extraordinary achievements.

Media sponsors are BusinessWorld and the ABS-CBN News Channel. Gold sponsors are SteelAsia Manufacturing Corp., Uratex, and Converge ICT Solutions, Inc. Silver sponsor is International Container Terminal Services, Inc. Bronze sponsor is Lausgroup Holdings, Inc. Banquet sponsors are Robert Blancaflor & Groups, Inc., Bounty Fresh Group Holdings, Inc., and Vista Land & Lifescapes, Inc.

The winners will be announced on Oct. 23, 2024. The EY Entrepreneur Of The Year 2024 Philippines will represent the country in the World Entrepreneur Of The Year 2025 in Monte Carlo, Monaco in June 2025. The EY Entrepreneur Of The Year program is produced globally by Ernst & Young (EY).

NAIA operator hikes fees for airlines starting this month

Passengers disembark from their vehicles in front of the Ninoy Aquino International Airport (NAIA) Terminal 1 in Pasay City, Oct. 6, 2023. — REUTERS

By Ashley Erika O. Jose, Reporter

SAN MIGUEL-LED New NAIA Infrastructure Corp. (NNIC), the new operator of the country’s main gateway, will now start collecting higher landing and take-off fees from airlines, the Department of Transportation (DoTr) said.

“The increase is actually high. It is almost double, but the rates — the last increase was in the year 2000 — so for the last 24 years, there have been no increases in fees that were charged at the airport,” Transportation Secretary Jaime J. Bautista said on the sidelines of the European Chamber of Commerce of the Philippines Aviation Summit 2024 on Wednesday.

Landing and take-off fees are charges levied for the use of airport facilities and services during aircraft landings and takeoffs.

Mr. Bautista said that the imposition of higher landing and take-off fees is effective Oct. 1, or at least 15 days after the official turnover of the operations and maintenance of NAIA to its private operator.

NNIC took over the operations and maintenance of the Philippines’ main airport on Sept. 14.

“The proposed revised fees, dues, charges and assessments for the use of the properties, facilities and services of the NAIA by the Airport Operator were approved through Cabinet Resolution No. 01 Series of 2024,” the Manila International Airport Authority (MIAA) said.

The imposition of higher landing and take-off fees does not necessarily mean that airfares will increase, Mr. Bautista said, adding that airlines have the option to absorb the higher fees or pass on the charges.

“The airlines won’t certainly like it, but I don’t think it would result in higher airfares since the take-off and landing fees are comparatively smaller compared the other operations and maintenance costs of running an airline,” Nigel Paul C. Villarete, senior adviser on PPP at the technical advisory group Libra Konsult, Inc., said via Viber.

BusinessWorld reached out to Philippine carriers for comments but has not received a response as of press time.

Under MIAA’s Revised Administrative Order No. 1, series of 2024, landing and take-off fees for international air traffic movement will be increased in a gradual manner within NNIC’s concession period.

For landing and take-off fees for international operations, an aircraft will be charged a minimum rate of $794, effective after one year.

Currently, aircraft weighing up to 50,000 kilograms will pay a fee of $2.48 per 500 kilograms, while those weighing 50,001 to 100,000 kilograms will pay a minimum rate of $248.12 or $3.11 per 500 kilograms or fraction thereof beyond 50,000.

Meanwhile, for domestic operations, an aircraft weighing up to 50,000 kilograms will be charged a minimum fee of P15,417 effective one year after the operations and maintenance contract.

For now, airlines with aircraft operating domestic operations will be charged P48.18 per 500 kilograms which will be increased to P154.17 after one year.

Further, an aircraft weighing 50,001 to 100,000 kilograms will be charged a minimum rate of P4,817.80 or P60.11 per 500 kilograms.

NNIC is also set to collect higher passenger service charges starting September 2025, Mr. Bautista said.

“All fee adjustments were pre-determined and set by the government and its financial adviser for the Public-Private Partnership project, the Asian Development Bank,” NNIC said.

Passenger service charges, also known as terminal fees, are imposed on departing passengers.

Currently, domestic travelers pay a passenger service charge of P200, while foreign travelers pay P550. It is anticipated that these fees will rise to P390 and P950, respectively.

In March, the NNIC, formerly SMC SAP & Co. Consortium, signed a P170.6-billion contract to operate, maintain, and upgrade the country’s primary gateway for 25 years.

The NNIC plans to construct a new passenger terminal building with a capacity of 35 million passengers annually, as part of efforts to alleviate airport congestion.

The government anticipates earning P900 billion from the project, equating to P36 billion per year. This figure is 20 times larger than the P1.17 billion annually remitted by the MIAA over the 13 years through 2023, according to the DoTr.

Aboitiz group to take over Laguindingan airport in 2025

PHILSTAR FILE PHOTO

THE INFRASTRUCTURE arm of the Aboitiz group is set to take over the operations and maintenance of the Laguindingan International Airport in Misamis Oriental next year, the Transportation department said.

“We are planning to sign the concession agreement for the Laguindingan airport within the month. The takeover will happen within four to six months,” Transportation Secretary Jaime J. Bautista told reporters on the sidelines of an aviation forum on Wednesday.

In September, the Department of Transportation (DoTr) said the contract to operate and maintain the Laguindingan International Airport would be awarded to Aboitiz InfraCapital, Inc., the original proponent.

This came after the DoTr received no counter proposal to challenge the unsolicited proposal of Aboitiz InfraCapital, Mr. Bautista said previously.

“Aboitiz InfraCapital is eager and ready to take on the operations, management, and expansion of the Laguindingan airport… We’re waiting on the direction from the government on this for the notice of award. From there, signing should follow, then after will be a transition period to takeover,” Aboitiz InfraCapital said in a statement to BusinessWorld.

Based on the Instructions to Challengers published by the DoTr and Civil Aviation Authority of the Philippines (CAAP), the notice of award and other post-award requirements would immediately be issued upon the approval of the award by the Transportation Secretary and the governing board of CAAP.

It added that the original proponent or the winning challenger would execute the concession agreement within five days from its receipt of notification of compliance with the post-award requirements.

IMMEDIATE PLANS
The company said its immediate plans for the airport include expanding its operating capacity.

“What we can share at this time is we plan on expanding the operating capacity of the airport given the growth potential we see in Northern Mindanao,” Aboitiz InfraCapital said.

The Transportation department aims to implement the first phase of the Laguindingan International Airport PPP project from 2024 to 2026.

The airport will have a capacity of 1.6 million passengers a year, which will increase to 3.9 million by the end of the first phase and to 6.1 million by the end of the second phase.

According to the Public-Private Partnership Center, the contract for the Laguindingan airport will run for a period of 35 years.

The company has also submitted unsolicited proposals for the operations, maintenance, and development of the New Bohol-Panglao International Airport, Bicol International Airport, and Iloilo International Airport.

The group secured original proponent status for the New Bohol-Panglao International Airport, which will undergo the Swiss challenge by November, according to Mr. Bautista.

In 2022, Aboitiz InfraCapital finalized a deal with Megawide Construction Corp. and GMR Airports International B.V., allowing it to acquire shares in GMR-Megawide Cebu Airport Corp., the company behind the Mactan-Cebu International Airport. — Ashley Erika O. Jose

EDC to explore geothermal fields in Indonesia

ENERGY DEVELOPMENT Corp. (EDC), the renewable energy arm of Lopez-led First Gen Corp., has obtained rights to explore and drill for two greenfield geothermal projects in Indonesia, the company said on Wednesday.

Indonesia’s Ministry of Energy and Mineral Resources awarded to EDC the preliminary survey assignments plus exploration for the Koto Sani Tanjung Bingkung and Bora Pulu geothermal projects, the company said in a statement.

Each of the Koto Sani Tanjung Bingkung and Bora Pulu geothermal areas has an estimated potential capacity of 40 megawatts (MW) and both would require a total investment of $456 million.

“This achievement marks a significant milestone in realizing EDC’s mission to forge collaborative pathways to a decarbonized and regenerative future, not only in the Philippines but in the region as well and beyond,” said Jeff Aban Caranto, EDC’s head of business development-international.

EDC said that the development aligns with its growth strategy as part of the 13,000-MW low-carbon energy portfolio of First Gen targeted by 2030. Of the total, 9,000 MW will be from renewable energy.

Indonesia is the world’s second-largest geothermal producer with a capacity of more than two gigawatts (GW), according to the Asian Development Bank.

The Philippines, which places third, produced an installed geothermal energy capacity of nearly two GW last year, with an estimated potential geothermal capacity of 4.2 GW.

In July, EDC officially introduced its 28.9-MW Palayan Binary Geothermal Power Plant (PBGPP) in the province of Albay, as part of the expansion of its existing 140-MW Bacon-Manito (Bac-Man) facility.

PBGPP is one of the four geothermal projects in the company’s pipeline. Others are the 28-MW Mahanagdong Binary in Leyte, 20-MW Tanawon Binary in Bacman, and the 5.6-MW Bago Binary in Negros Occidental.

EDC has allocated an investment of about $400 million for these projects with a total capacity of 83 MW that are expected to come online this year.

At present, it has an installed capacity of 1,480.19 MW, accounting for about 20% of the country’s total installed renewable energy capacity. — Sheldeen Joy Talavera

A taste of Japan

SPICE & SOY’S Pork Belly Muy Chai

A food crawl through Mitsukoshi Mall

By Joseph L. Garcia, Senior Reporter

THE PROMISE for future residents of The Seasons Residences is “own a piece of Japan with The Seasons Residences in BGC” (from the Federal Land website). One of those pieces happens to be access to the Mitsukoshi BGC mall.

On Sept. 30, guests were taken around the mall’s many food spots (with access granted from the complex’s first tower, Haru — “Spring” — completed earlier this year). “What I wanted in this initiative is to reflect that when we promised that they can own a piece of Japan before, it’s not just the theme of the project that’s in just the architecture, but you can live it every day,” said Federal Land Marketing Head Jorell Bringas.

Our first stop was the Itadaki food court at the mall’s basement. That could have been the last stop by itself, for the vendors in the food court brought out their very best. Saboten Express’ offers alone could have tided us over for the rest of the day: there was lightly cooked Agedashi Tofu, and Chicken Karaage (Japanese-style fried chicken), but we were bowled over by the Tuna Katsu, still pink inside, and the perfect crispness contrasted with the fresh tenderness of the fish. An honorable mention was Lam Mein, which brought out a roast duck, perfect for dunking into their Beef Wonton Noodle Soup.

Close by was Ajisho Kaisendon, offering fresh sushi, sashimi, and the same delights presented in bowls. With most of their offerings flown in from Japan, the result was exquisite: the sea urchin was sweet and still bore a briny, oceanic flavor, and a surprise contender was the salmon roe, which popped repeatedly inside our mouth, bringing burst after burst of flavor.

In the same basement is the Iwada Ichigo Cafe, the first strawberry cafe in the country — Beni Hoppe strawberries are frozen and flown in from Japan, then crushed to be served in a variety of ways. Mixed with milk (no water in the equation, to further emphasize the strawberry flavor) and blended, they’re served as a smoothie. Crushed and served in a bowl, they make for a nice dessert. That day, we were served their seasonal frozen white strawberries in a bowl, resulting in a very creamy taste with little acidity.

Upstairs at Prologue D’Fined, a more upscale version of the Prologue chain, they served us their pasta lunch set, which included a Salsiccia (sausage) Arrabiata and a mild Black Truffle Carbonara served with buckwheat pasta. The taste was mild and the truffles were a mere hint, but what a great texture.

THE HIGHLIGHT
Those were only openers for what we thought was the food crawl’s highlight: Bijin Nabe by Tsukada Nojo. Jidori chickens from the Miyazaki prefecture (so perfectly bred they’re sometimes served raw) are cooked down for several hours into a white semi-solid teeming with collagen. That’s Bijin Nabe’s promise: the collagen in their Japanese Collagen Beauty Hotpot is supposed to help you become beautiful.

Never mind that: the broth itself is beautiful. In a pot, the pudding is melted until it becomes a rich soup. The trip could have ended here: the rich broth was revitalizing, and felt like it erased all my sins. As a plus, my companions during the trip noted that my cheeks regained a glow (so much so that we asked for a second bowl). No promises, but with a baseline price of P700 a pot for two people (the rest of the hotpot ingredients like vegetables and meat come with separate prices), one should give it a shot.

After the joys of Bijin Nabe, we thought we’d be let down by Spice and Soy’s Pork Belly Muy Chai (a braised pork dish), and El Born’s roast chicken. Not at all. In fact, El Born’s Burnt Basque Cheesecake gave us another reason to visit the Mitsukoshi Mall. The cheesecake has been making the rounds of social media, and for good reason: pushing down a fork on the cake brings out creamy and delicious feeling.

After a stop for coffee at Key Coffee Kissaten, we were taken down to the basement again, this time for the mall’s home court offering at Mitsukoshi Fresh, their supermarket brand.

There’s a Filipino contender there: Tayabas Bay Oysters, grown there for that specific area’s lack of history of red tide. Founded earlier this year, it’s the country’s first commercial hatchery-grown oysters. Still live, they were shucked in front of us and served fresh, and had a clear, clean taste.

Meanwhile, Mitsukoshi Fresh served up its Japanese-flown offerings, and we got to taste wagyu sushi for the first time (rich and refined; the beefy flavor was merely a hint).

THE JAPANESE TOUCH
Mr. Bringas explained that the tripartite collaboration between Federal Land, Inc., Japan’s Nomura Real Estate Development Co., Ltd., and Isetan Mitsukoshi Holdings Ltd. is what makes the complex (the mall and the residences) unique. “Everyone… has brought something important here,” he said.

According to him, while other mall developments may have Japanese branding and occasional themes, not many have a renowned Japanese retail group having a hand in how things are run daily. “Here, the Japanese, as you’ve seen it, are very much included in the day-to-day operations, the envisioning, the planning of things.”

The rest of the Seasons Residences towers are set to be completed by 2027. Prices for the units start at about P23 million for a 51.5-sq.m. one-bedroom unit.

Franchise for Elon Musk’s Starlink PHL pushed

BRISA PALOMAR/PACIFIC PRESS/SIPA USA VIA REUTERS CONNECT

A PHILIPPINE senator has filed a bill seeking to grant a franchise to Elon Musk’s Starlink Internet Services Philippines, Inc., which is seen as an option to expand internet connectivity to far-flung areas.

“Starlink is seen to bridge the digital gap by providing satellite-based internet connectivity in areas not covered by traditional terrestrial networks and in remote areas where it is difficult to build telecommunications infrastructure,” Senator Mary Grace Natividad S. Poe-Llamanzares said in Senate Bill No. 2844, which she filed on Oct. 1.

Citing the 1931 Radio Control Act, she said Starlink wants to build gateway earth stations, which are “radio stations” that need a legislative franchise.

Gateway earth stations are large dish space stations that are used to send and receive TV and internet signals.

The bill seeks to extend the company’s services to unserved or underserved areas, specifically those at risk of typhoons and other natural disasters as determined by the National Disaster Risk Reduction Management Council.

The Department of Information and Communications Technology has accredited Starlink as a satellite systems provider, allowing it to provide internet services in the country.

Ms. Poe said gateway earth stations would extend the reach of Starlink’s services.

The franchise would be revoked if Starlink fails to operate continuously for two years, based on a copy of the bill.

The satellite internet provider would also be subject to a fine of P1 million if it fails to submit an annual report to Congress about its operations.

Last year, Henry T. Sy, Jr. — owned Data Lake, Inc., inked a deal with Starlink to distribute its satellite kits and to carry out data services and solutions nationwide.

Under the deal, Starlink satellite kits are priced at P29,000, inclusive of a dish, modem, power supply, and mounting tripod at SM Malls.

Starlink is a satellite internet service of Space Exploration Technologies Corp. (SpaceX). According to its website, SpaceX continues to launch satellites into orbit to bring high-speed broadband to rural and remote areas. Earlier this year, SpaceX’s Starlink deployed about 200 units across the country.

“Poor internet access limits the opportunities available to Filipinos, particularly for low-income households,” Ms. Poe said.

“The entry of a new player brings bright prospects in our telecommunications industry.” — John Victor D. Ordoñez

Mott 32 deserves all its accolades

By Joseph L. Garcia, Senior Reporter

DURING a recent media NUSTAR on Sept. 25*, its famed restaurant, Mott 32, brought out a special menu for the occasion of The Mall | NUSTAR’s completion. It also happened to be the restaurant’s second anniversary.

Founded by Xuan Mu, Malcolm Wood and Group Executive Chef Lee Man Sing, the restaurant has several locations around the world: Hong Kong, Vancouver, Singapore, Dubai, Toronto, Bangkok, Seoul, and Cebu. In all its locations, they’ve garnered several awards: badges we recognized on their website included accolades from Wine Spectator, The Forbes Travel Guide, The Michelin Guide, Tatler, and Traveler’s Choice (the complete number of award badges numbers over 50).

Lunch on Sept. 25 opened with a Fujian Negroni (Amaro, Aperol, ginseng, Lapsang Souchong tea, Sichuan pepper). This tasted quite complex, but softer than a usual Negroni, with no sharp edges. The Hanami (rye whisky, gin, umeshu, yuzu, shiso, ginger beer, and chrysanthemum), meanwhile, was such an easy drink, we could have had four (we didn’t).

A Traditional Iberico Pork Shanghainese Soup Dumpling had an expectedly delicate texture, and a nuanced, very rich broth inside that surprisingly had little weight. It had a clean and clear taste; almost pure, like just water and flavor. It came with a Salty Egg Pumpkin: it had a light, crispy batter, contrasting in texture to the creamy pumpkin, its mildness given excitement with the spicy salted egg seasoning. Our notes simply read “yum yum.”

The Cold Free-Range Chicken, with Szechuan Peppercorns and Chili Sauce had an excellent gelatinous texture paired with a delicately smoky flavor — combined with the cold, it tasted what something wet and smoky smells like: think the taste of embers extinguished in water, if there was such a thing. Given vivacity by the Szechuan peppercorns, it cleared the nostrils and left a last lingering note of earthiness.

A Hot and Sour Soup was very heavy with flavor, dripping with importance and the taste of expensive seafood. It displayed a perfectly balanced heat that coated and tickled the lips.

There were other dishes on the menu: a Yeung Chow-style Fried Rice, with Diced Sea Cucumber, a Whole Leopard Coral Garoupa (delicate and fresh), Wok-Fried Romaine Lettuce (surprisingly substantial), and Stir-fried Australian M9 Wagyu (spicy and aggressive). However, the star of the show was Mott 32’s signature Applewood Roasted 42 Days Peking Duck.

The menu says it’s “smoked with sweet aromas of dried applewood, served with freshly steamed pancakes, thinly sliced cucumber and scallions, raw cane sugar, and house-made special hoisin sauce.” They carve it using a “unique technique that locks in all the juices” that was developed by their founders “making it a true feast fit for royalty as it was intended.” The duck is available in limited quantities, and is available by pre-order only.

Well: the duck’s skin was first served to us, with a strange, puffed-up texture, and tasted very crispy, like a glossy, red chicharon (pork crackling). The puffed-up texture gave it a multi-dimensional bite: it was almost like the air within the duck was flavored. The duck was served anew in pancakes, but we had to do without them: the pancake’s taste was concealing the flavors of the duck’s dense, tender flesh.

The dessert was a light coconut ice cream with pomelo, grapefruit, and honeycomb.

Fili Hotel General Manager Roel Constantino said, “Even in just two years, we are known in Cebu already. I believe that even in just two years, we’ve already imprinted the brand in the culinary map of the Philippines.”

Mott 32 is located in NUSTAR in Cebu.

*https://tinyurl.com/bdfrtfbe

IMI expects $5-M boost from global restructuring

INTEGRATED Micro-Electronics, Inc. (IMI) expects a $5-million boost to its net income as a result of its global restructuring, the company said on Wednesday.

“The office restructuring efforts in the four locations (United States, Japan, Singapore, and Malaysia) are part of the company’s initiatives to align the cost structure with the current business needs and are not expected to disrupt the company’s operations. These activities will yield annual cost savings of approximately $5 million, improving net income,” IMI said in a regulatory filing.

On Tuesday, IMI said it would close its Japan sales office. It is also currently downsizing its Singapore and Malaysia offices to improve margins.

The company also said that IMI USA would stop prototyping and manufacturing activities by yearend. The production functions of IMI USA will be transitioned to IMI facilities across North America, Europe, and Asia.

“The cessation of prototyping and manufacturing activities in IMI USA will have a minimal effect on IMI group’s revenue since it is only approximately 0.30% of the total IMI group revenues,” IMI said.

IMI USA will also channel prototyping needs of selected customers to California-based XLR8 Corp. as part of a new agreement. In turn, XLR8 will transition mass production projects to IMI as its preferred manufacturing partner.

For the first half, IMI trimmed its attributable net loss by 89.5% to $8.77 million from $83.66 million last year on “cost rationalization activities.”

January-to-June revenue dropped by 18% to $565.8 million from $691.89 million last year, partly attributed to the divestment of British subsidiary STI Enterprises Ltd., which was still part of the group in early 2023.

“Market softness in the industrial sector has affected IMI’s Philippine operations, with reduced demand from end markets delaying launches of new models as customers continue to trim down existing inventory levels,” IMI said.

“In response, IMI continues to optimize its customer portfolio by reducing involvement in lower-margin projects, aiming to enhance profitability and focus on higher-value opportunities within its pipeline,” it added.

IMI is a global electronics manufacturing solutions expert specializing in highly reliable and quality electronics for long product life-cycle segments in the automotive, industrial, power electronics, communications, and medical industries.

On Wednesday, IMI shares fell 4.92% or nine centavos to P1.74 per share. — Revin Mikhael D. Ochave

Tasty tater recipes

FILIPINOS often think of potatoes in the context of snacks, like fries or chips. After all, the US potato industry supplies their products mainly to various snack food manufacturers in the Philippines.

Potatoes USA, the marketing arm of the US potato industry, introduced members of the media to different recipes that Filipino consumers can try. These all have potatoes as the main ingredient, using their fresh, frozen, or instant (dehydrated) potatoes, all found in Philippine supermarkets.

Mapo Tofu Potato Cheese Fries

Chef Kalel Chan of The Raintree Restaurant Group told BusinessWorld that a fun way to jazz up a serving of fries is to incorporate a spicy dish like mapo tofu to the mix. “I make this a lot at home and it really hits the spot,” he said.

INGREDIENTS
Cooking oil, 20 gm
Garlic, 20 gm
Ginger, 20 gm
Onions, 20 gm
Ground pork, 200 gm
Shoyu, 40 gm
Sake, 60 gm
Mirin, 20 gm
Sugar, 20 gm
Water, 200 gm
Sichuan ground pepper, 2 gm
Tobanjan bean paste, 60 gm
Sesame oil, 30 gm
Soft tofu, 200 gm
Grated cheddar cheese, 50 gm
Grated pepper jack cheese, 50 gm
Chopped spring onions, 20 gm
US seasoned crisp fries, 400 gm
Slurry, 10 ml

PROCEDURE
1. Heat oil and sauté garlic, ginger, onions, and ground pork.
2. Brown the ground pork and add sake, mirin, shoyu, sugar, Sichuan pepper, tobanjan paste, sesame oil, and water.
3. Simmer for 2 minutes and thicken with slurry.
4. When the sauce becomes thick add in the soft tofu.
5. Pour the mapo tofu on the side of the fried seasoned crisp fries and top it off with grated cheese.
6. Garnish with chopped spring onions.

Cheesy Potato Kaldereta Bake

This is a layer of potatoes with spicy tomato-based beef stew, topped with grated cheese then baked until melted. It is a dish for those seeking a twist on a classic Filipino dish.

INGREDIENTS
US fresh potatoes, sliced thinly and pre-boiled, 200 gm
Beef sirloin, pre-boiled and shredded, 500 gm
Garlic, minced, 4 cloves
Beef broth, 1 cup
Tomato paste, 2 tbsp
Tomato sauce, 1 cup
Liver spread, 1/2 cup
Siling labuyo (bird’s eye chili), chopped, 1 piece
Bay leaf, 1 piece
Carrot, small cubes, 1 piece
Pepper
Fish sauce
Cooking oil, 2 tbsp
Cheddar cheese, 1/2 cup
Mozzarella cheese, 1/2 cup
Basil for garnish

PROCEDURE
1. Cook the kaldereta: Saute onions and garlic. Add beef. Add carrots and cook until soft.
2. Add the tomato paste and cook.
3. Add the tomato sauce. Pour in the beef broth.
4. Add the liver spread. Let simmer and season with pepper and fish sauce, then add the bay leaf.
5. Place the thinly sliced potatoes at the bottom of an oven proof dish.
6. Top with the kaldereta mixture.
7. Combine the cheeses and place on top of the kaldereta mixture.
8. Broil in the oven for at least 10 minutes at 150C or until the cheese melts and has browned.
9. Serve hot.

US Potato Ramen

Mr. Chan recommended this next dish for those curious about the taste and texture of noodles made of potato. “It’s a very filling and satisfying dish consisting of handmade potato noodles with Sichuan dandan sauce,” he said.

INGREDIENTS
Standard potato granules, 200 gm
All-purpose flour, 250 gm
Salt, 3 gm
Egg, 4 pieces
Water, 200 ml
All-purpose flour (for dusting), 50 gm
Dandan sauce
Sichuan ground pepper, 3 gm
Sugar, 10 gm
Prepared chili oil (ryu oil), 20 gm
Grated garlic, 5 gm
Tahini, 100 gm
Soy sauce, 15 gm
Five spice, 1 gm
Hot chicken stock, 1 cup

PROCEDURE
1. Mix the dry ingredients together in a big stainless bowl, with a wire whisk, except the 50 gm of flour for dusting.
2. Make a well in the middle of the dry ingredients and mix the wet and dry ingredients together.
3. When it gets stiff, knead the dough by hand.
4. When a ball of dough is formed, rest the dough in the chiller for one hour.
5. After one hour, cut the ball into four and form each part like a ball.
6. Dust the table with flour and dust the four balls.
7. Flatten the balls one by one with a rolling pin.
8. When flattened to the desired thickness, fold and cut out the noodles by hand.
9. Dust with flour so it won’t stick together.
10. Boil water with salt and cook the noodles for two min.
11. Strain and pour the dandan sauce on top.
12. Add chicken stock if you want to make the dandan sauce thinner.
13. In a bowl, mix tahini, soy sauce, prepared chili oil, sugar, Sichuan pepper, grated garlic, and five spice.
14. Add hot chicken stock till the sauce is of the desired thickness.

Shrimp Skewer and US Tater

Finally, the shrimp and US tater drum cocktail is for those who want the taste of seafood with potatoes.

INGREDIENTS
US Tater Drums, 500 gm
Seasoning, 1 tsp
Lemon rind and juice, 1 tbsp
Garlic, minced, 1 tbsp
Salt, 1 tsp
Shrimp, 200 gm
Tomato, crushed, 1/2 cup
Chili ketchup, 1 tbsp
Horseradish, 1 tbsp
Sugar, 1 tsp
Salt, 1/2 tsp
Olive Oil, 1 tbsp
Lemon juice, 1 tbsp
Cilantro, 5 gm
Garlic, fried

PROCEDURE
1. Skewer the shrimps and season with seasoning, lemon, garlic, and salt.
2. Grill or bake at 350°F until the color turns pink. Set aside.
3. Spray US tater drums with olive oil and bake/air fry at 232°C (450°F) for 17 minutes.
4. Mix all the ingredients of the cocktail sauce and refrigerate.
5. Garnish the shrimp and US tater drums with garlic and cilantro.
6. Serve with cocktail sauce.

B.H. Lacsamana

Oil prices may climb with tensions, but bearish factors persist — DoE official

PHILSTAR FILE PHOTO

By Sheldeen Joy Talavera, Reporter

THE TENSION between Israel and Iran could cause upward adjustments in the prices of petroleum products if it continues to escalate, but other factors such as oil production still weigh down possibilities, an official from the Department of Energy (DoE) said on Wednesday.

“If the tensions continue to escalate, expect increases in the prices of petroleum products but there are lingering bearish factors that pull the prices down such as increased oil production, economic indicators and supply and demand outlook,” DoE Oil Industry Management Bureau (OIMB) Assistant Director Rodela I. Romero said in a Viber message.

Oil prices rose by more than 2% on Wednesday as the tensions in the Middle East raised concerns that it could escalate and disrupt crude oil output from the region, following Iran’s missile attack on Israel, Reuters reported.

In separate advisories on Monday, oil companies said pump prices would climb by P0.45 per liter of gasoline, P0.90 per liter of diesel, and P0.30 per liter of kerosene.

This marks the second straight week that prices of gasoline and diesel have increased.

The latest adjustments bring the year-to-date net increases of gasoline and diesel prices to P6.40 per liter and P2.85 per liter, respectively. Kerosene has a net decrease of P6.05 per liter.

Ms. Rodela said that the oil price hike has already factored in the geopolitical conflict in the Middle East, along with the US Federal Reserve rate cut, the withdrawal in the US inventories, and production cut of the Organization of the Petroleum Exporting Countries and its allies, also known as OPEC+.

“On the increase yesterday (Oct. 1), part of the reasons is the fear over escalated tension due to the Israel and Iran conflict because of additional premium on the cost of the petroleum products plus the potential supply disruption,” she said.

OIMB Director Rino E. Abad said that the agency bases its reference on Mean of Platts Singapore price benchmarks, hence the actual movement of the daily price will dictate the adjustment next week.

“The daily price movement for the past two days indicated a decreasing trend, hence the estimate of possible decrease of price adjustment next week, but still subject to the price movements in the next three days of the week,” Mr. Abad said.

The Philippines is a net importer of petroleum products. In the first half of 2023, the country imported 3.476 billion liters of crude oil, up 23.7% from 2022, data from the DoE showed.

Gerry C. Arances, executive director of the Center for Energy, Ecology, and Development, said that the possible rise in oil and diesel rates due to the Middle East conflict puts off-grid areas in a dire situation as they rely on diesel-powered plants for electricity.

“The Philippine government must immediately implement measures to relieve consumers from fuel price hikes, especially in transport, and in electricity in off-grid areas. If circumstances take the turn for the worse, price caps should also be put in place,” he said in a Viber message.

Dining In/Out (10/03/24)


Hope & Sesame’s Bastien Ciocca takes over The Pen’s Bar

ON FRIDAY, Oct. 4, starting at 8 p.m., The Bar at The Peninsula Manila welcomes cocktail aficionados for an evening with Bastien Ciocca, co-founder of Guangzhou’s speakeasy, Hope & Sesame. Hope & Sesame has been a consistent standout in Asia’s 50 Best Bars list for the past six years, and ranked No. 14 in the 2024 list. Mr. Ciocca is the final guest mixologist in The Peninsula Manila 2024 Bar Takeover Series. This year, Masahiko Endo of The Library in Hong Kong, Toru Ariyoshi and Keisuke Yamamoto of Kyoto’s Bee’s Knees, Fauzan Ramon and Fabri Duemillio of Jakarta’s top-rated Pantja, and Ryota Tokomitsu of Tokyo’s legendary The SG Club have collaborated with The Bar in a bid to introduce to the city the cocktail cultures of Japan, Indonesia, and Hong Kong. During his one-night takeover, Mr. Ciocca will take Manila on a sensory cocktail journey. For inquiries, call 8887-2888, extension 6694 (Restaurant Reservations) or e-mail diningpmn@peninsula.com.


Nobu Manila celebrates brand’s 30th anniversary

THE MANILA outpost of Nobu Restaurant is among the 57 Nobu locations in the world celebrating the 30th anniversary of the brand. The milestone celebrates chef Nobu Matsuhisa’s innovative take on Japanese cuisine with Peruvian ingredients. For the occasion, Nobu presents a special five-course dinner omakase menu that is offered worldwide from Oct. 7 to 13, celebrating the rich three-decade history of Nobu. Each featured dish is imbued with Chef Nobu’s personal story. The limited-time special tasting menu is priced at P8,871.43 net per person, which commences with a four-way starter of Toro Tartar, Salmon Tataki in Karashi Su Miso, White Fish Tiradito, and Yellowtail Jalapeño. A selection of sushi will then be served, followed by Black Cod Butter Lettuce and Crab Amazu Ponzu, Japanese Beef Anticucho with hijiki seaweed, grilled tomato, and oshinko. The meal concludes with a selection of mini desserts. The experience offers diners a full taste of Nobu’s signature dressings and sauces. For pre-dinner cocktails or simply to hang out, Nobu Manila also offers during the same period Nobu’s Anniversary Bar Bites. Guests can opt to lounge at the Nobu bar, cabanas, or main dining area and pair their choice of bar bites with the featured anniversary cocktail Matsuhisa Martini (P560) or their favorite beverage. Nobu Hotel’s in-room dining menu also offers the anniversary special Four-Way Starter selection. Nobu Manila is open from 5 to 10 p.m., Sunday to Thursday, and until 11 p.m. on Fridays and Saturdays. For inquiries, call 8800-8080 or e-mail noburestaurant@cod-manila.com.


Newport World Resorts does Jura

THE Whisky Library opens its doors to Jura Single Malt Scotch Whisky. Brand spokesperson George Schulze will oversee the single-malt whisky flight showcasing the Jura 12, Jura 12 Sherry Cask, and newly launched Jura 15 Sherry Cask. The session will also feature a bespoke menu that pairs with the whisky flight. The exclusive masterclass is on Oct. 16, 6:30 to 8:30 p.m. Tickets are P4,000 net per person via https://tickets.newportworldresorts.com/products/jura-masterclass?group=experiences.


Jollibee has a new dessert

JOLLIBEE now offers its new Cookies & Cream Sundae: creamy vanilla soft serve topped with crushed Oreo cookies and a chocolate shell coating. The Jolly Sweet Treats lineup also includes Iced Mocha and Peach Mango Pie. They are available at Jollibee branches via dine-in, take-out, or drive-through, with prices starting at P40. Delivery is available via the Jollibee App, JollibeeDelivery.com, #87000, GrabFood, and Foodpanda.