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Factory output growth decelerates

By Christine J. S. Castañeda
Senior Researcher
FACTORY PRODUCTION continued growth in October, albeit at its slowest pace so far this year, the Philippine Statistics Authority (PSA) reported on Wednesday.
Preliminary results of the PSA’s Monthly Integrated Survey of Selected Industries (MISSI) showed that in October, factory output — as measured by the Volume of Production Index (VoPI) — grew 3.9% year-on-year.
This was slower than the revised 4.2% growth recorded in September and was the smallest increase so far in 2018. However, it was a turnaround from October 2017’s 6.6% decline.
Factory output volume averaged 11.1% in the 10 months to October, higher than the 1.9% in 2017’s comparable period.
A similar trend could be seen in factory output as measured by value of production index (VaPI), which registered a year-low 3.3%, even though it marked a turnaround from last year’s six percent decline.
Both VoPI and VaPI have gained since January.
In comparison, the Nikkei Philippines Manufacturing Purchasing Managers’ Index improved to 54 in October from 52 in September and 53.7 a year ago, reflecting “solid” improvement in business conditions from the preceding month that kept the Philippines in Southeast Asia’s lead in this regard.
Average capacity utilization — the extent by which industry resources are used in the production of goods — was estimated at 84.3%. Eleven of the 20 sectors registered capacity utilization rates of at least 80%.
“Increases in the production of petroleum, export-oriented products and non-metallic mineral products drove expansion of manufacturing output in October,” the National Economic and Development Authority (NEDA) said in a statement.
Nicholas Antonio T. Mapa, senior economist at ING Bank NV Manila, said: “Manufacturing sector appears to have recovered from contraction in 2017.”
“On VaPI, [it] may have been due to dollar value of petroleum products that helped the sector post positive growth. On VoPI, petroleum products also saw hefty gains, up 30.8% given the demand for fuel both locally and abroad,” he added.
Mitzie Irene P. Conchada, associate dean at the De La Salle University School of Economics, said: “With the depreciation of the peso against the dollar, imported inputs and raw materials have been more expensive, hence, a lower VoPI growth…”
Looking forward, NEDA expects the government’s spending on infrastructure and other capital outlays and expansion of private sector construction activities to drive growth in the manufacturing of construction-related products.
“Over the near-to medium-term, we see that the Build, Build, Build program and the recently signed Regular Foreign Investment Negative List will help in raising the productivity of the manufacturing sector,” NEDA’s statement quoted its director-general, Socioeconomic Planning Secretary Ernesto M. Pernia, as saying.
Meanwhile, Mr. Mapa noted that the reduction in food manufacturing might drag economic growth this quarter.
“One development I note as a concern is the contraction in food manufacturing, both in terms of VoPI and VaPI. In GDP (gross domestic product), food manufacturing accounts for the lion’s share of the total sector, which could mean fourth quarter GDP manufacturing may be hampered, unless we see a turnaround in November and December.”
The VaPI and VoPI of the food manufacturing segment posted 13.2% and 14.9% contractions in October, worsening from their respective declines of 8.2% and 8.3% in September.

Job quality improves in October despite increased unemployment

By Marissa Mae M. Ramos
Researcher
THE LATEST labor data in October bared a mixed picture as unemployment inched up, but the ranks of those wanting more work thinned.
The preliminary report of the October 2018 round of the labor force survey (LFS) conducted by the Philippine Statistics Authority (PSA) and released yesterday put the unemployment rate at 5.1%, equivalent to 2.2 million individuals, compared to five percent in the year-ago survey.
For the year, unemployment rate averaged 5.3%, which is at the upper end of the 4.7-5.3% target set for 2018 under the Philippine Development Plan 2017-2022.
At the same time, the quality of available jobs improved as the underemployment rate — the proportion of those already working but still looking for more work or longer working hours — decreased to 13.3% from 15.9% in the same comparative periods, equivalent to 5.502 million Filipinos, from 6.616 million a year ago.
“This is equivalent to 1.1 million less underemployed workers from last year’s 6.6 million. This is the lowest underemployment rate recorded for all October rounds since 2006 (20.3%),” the National Economic and Development Authority (NEDA) said in a statement. “This signals that the quality of work is improving even outside the National Capital Region (NCR). We attributed this to expanding employment opportunities and the approval of nominal increases in regional wages supported by labor productivity improvements,” Socioeconomic Planning Secretary Ernesto M. Pernia was quoted in the NEDA statement as saying.
Underemployment rate in areas outside NCR “significantly declined” to 14.6% in October 2018 from last year’s 17%, which is also the lowest in over a decade, NEDA’s statement further read.
Underemployment in the NCR improved to 4.8% in October 2018 versus last year’s 8.6%.
Furthermore, the percentage of “discouraged job seekers” declined to 11.5%, which is better than the 12% target for 2018.
“However, of the total youth population, 19.9% is neither in employment nor in education in 2018, but still falling within the PDP target of 19.5-21.5%,” noted NEDA.
The size of the labor force was approximately 43.563 million out of 71.886 million Filipinos at least 15 years old, yielding a participation rate of 60.6%, down from 62.1% a year ago.
NEDA also noted that around 826,000 new jobs were generated in 2018, less than the government’s annual target of 900,000-1.1 million.
“This slightly higher [unemployment] and lower labor participation may actually point to declines in both agriculture and services sectors,” said Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines, Inc. (UnionBank).
Employment share of agriculture and services fell to 24.1% (from 25%) and 56.8% (from 57%). On the other hand, industry saw its share of employment go up to 19.1% from 18% previously.
Much of the increased underemployment rate was seen in agriculture, with a 37.9% rate in October that was worse than last year’s 32.6%. Underemployment in industry and services improved to 18.8% and 43.2% from 19.5% and 47.9%, respectively.
Mr. Asuncion attributed the weakness of the agriculture sector to “weather disturbance, particularly in the last 10 months of year” as farm output reeled from typhoon.
The economist likewise surmised that inflation may have played a role in worsened unemployment. “It seems that the heightened inflation has caused some firms to let go of their employees for cost-cutting reasons,” Mr. Asuncion said, adding that this may have influenced firms to “hire less or simply freeze hiring plans.”
Michael L. Ricafort, economist at Rizal Commercial Banking Corp. (RCBC) shared this assessment. “The slight increase in unemployment rate may have reflected the slower Philippine economic growth of 6.1% in 3Q 2018, after higher inflation rates amid higher global oil prices, higher food prices, weaker peso, and higher taxes under the TRAIN Law,” he said, referring to Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act that took effect in January. “These could have resulted in lower corporate earnings and reduced the ability of companies to generate new jobs through new investments and expansion projects.”
Asked on the lower underemployment rate, both economists said that this could be an effect of the country’s improving economy.
“I think it is a simple case of a continuously growing economy where many full-time job opportunities result. Philippine economic growth this 2018, though lower than 2017, is still a very respectable expansion,” UnionBank’s Mr. Asuncion said.
For RCBC’s Mr. Ricafort, the underemployment estimate “may also reflect the government’s increased infrastructure spending and the continued growth in both real estate and construction.”
“The lowest underemployment rate since records started in the 1990s may be brought about by more job opportunities and greater demand for jobs with longer working hours, amid the continued growth in the services sector and the pickup in manufacturing/industry sector,” he added.
Moving forward, the economists perceive the employment situation in the country to improve in the months ahead.
For RCBC’s Mr. Ricafort: “The country’s employment data could continue to improve in the coming months in view of increased and faster deployment of the government’s infrastructure projects, continued growth in real estate and construction including related/allied industries and businesses, and continued expansion of the country’s biggest businesses/conglomerates especially in areas outside Metro Manila as source of growth.”
He also cited the “[r]ecord-high foreign direct investments in recent years” to make the country a “compelling investment destination” that will lead to even more gainful jobs.
For UnionBank’s Mr. Asuncion: “[W]ith inflation showing early signs of easing, employment will continue to grow and more opportunities will be available for labor that look for full-time jobs.”

Dirty money watchdog tightens rules

THE ANTI-MONEY LAUNDERING Council (AMLC) is stepping up its watch on dirty money by requiring all reporting firms to identify and disclose ultimate owners of accounts or products.
The financial watchdog released new rules on beneficial ownership last week, ordering all banks, insurance companies and other covered institutions to report the identities of people who actually own or control accounts and financial transactions which they process.
“These standards require banks, other financial institutions and certain professions to identify not only the customer with whom they transact, but also the beneficial owners,” the AMLC said in a statement published on its Web site.
“Covered persons must conduct [sic] the risks posed by the customer and the beneficial owners. If they pose a high risk for money laundering or terrorism financing, validation of information must be performed by the covered person.”
This stems from previous cases wherein the watchdog discovered that dummy accounts and even non-government organizations (NGOs) are used to “hide identities” and “blurring the illegal source of the funds.”
“Money launderers and terrorists routinely use the cloak of anonymity to prevent the AMLC and law enforcement agencies from tracking them down. In the case of the AMLC, they also seek to avoid freezing and forfeiture of their assets obtained through criminal activities,” the financial intelligence unit also said.
High-profile cases that are said to involve money laundering include the P10-billion pork barrel scam wherein several lawmakers reportedly channeled public funds to ghost livelihood projects from bogus NGOs controlled by businesswoman Janet Lim-Napoles, who is currently detained for multiple plunder and graft raps.
The new rules were signed on Nov. 23 and took effect on Nov. 27.
Earlier this year, the AMLC issued an advisory to reporting firms against dummy or “lend-out” accounts, saying all reporting parties should establish and record “the true and full identity” of account holders as well as transactors — or those who carry out fund transfers, deposits and withdrawals for every account.
Under the law, banks, insurance firms, casino operators and other covered entities need to report covered transactions — worth at least P500,000 — as well as suspicious transactions to the AMLC within 10 working days from occurrence.
These reports as leads in pursuing potential money laundering cases and predicate crimes.
Money laundering threat in the Philippines remained “high” in 2015 and 2016, according to the second national risk assessment report published by the AMLC in December last year. — Melissa Luz T. Lopez

First Gen, Tokyo Gas to develop LNG terminal in Batangas City

FIRST GEN Corp. signed on Wednesday a joint development agreement (JDA) with Tokyo Gas Co., Ltd. to build a liquefied natural gas (LNG) terminal within the Lopez-led company’s power generation complex in Batangas City.
“First Gen is excited to partner with Tokyo Gas, a world class natural gas and LNG company with vast experience in the development, financing, construction and operations of LNG storage and regasification facilities,” First Gen President Giles B. Puno said in a disclosure to the stock exchange on the same day of the signing.
The listed company, which runs most of the country’s gas-fired power plants, said JDA is a preliminary agreement between the parties at First Gen’s Batangas Clean Energy Complex.
For the Lopezes, the project will be through First Gen unit FGEN LNG Corp. The agreement comes after recent pronouncements from the government describing LNG as vital to ensure the country’s energy security once the Malampaya gas field, which fuels the company’s plants, is depleted.
Tokyo Gas will take a 20% participating interest in the LNG project and provide support in development work to achieve a final investment decision.
Upon reaching that decision under the JDA, the parties will enter into a definitive agreement to proceed with the construction of the project, First Gen said.
First Gen quoted Tokyo Gas President Takashi Uchida as saying that his company, “is pleased and delighted to have signed the agreement with First Gen which is the leading company utilizing environmentally-friendly natural gas in the Philippines, and which has been contributing to realize a low carbon society.”
“First Gen and Tokyo Gas share the common belief that the country needs clean natural gas to produce power which is not only cost-competitive but, given its flexible operations, is the perfect complement to a growing renewable energy industry,” Mr. Puno said.
“Finally, we both share the vision of the Department of Energy in the implementation of LNG projects in the Philippines. First Gen and Tokyo Gas intend to cooperate with all relevant stakeholders who share the same vision to participate in making LNG viable for the Philippines,” he added.
First Gen has around 2,000 MW in operating gas-powered plants, namely: the 1,000-megawatt (MW) Santa Rita power plant, the 500-MW San Lorenzo power plant, the 414-MW San Gabriel power plant and the 97-MW Avion power plant.
Tokyo-based Tokyo Gas is a leading LNG player with 130 years of experience and more than 50 years of experience in the LNG business. It is one of the largest buyers of LNG in the world with an annual volume of 14 million tons per annum (MTPA). Tokyo Gas has over 63,000 kilometers of gas pipelines serving more than 11 million customers.
“Tokyo Gas would like to be instrumental in introducing LNG to the Philippines by pursuing the FGEN LNG Project and developing a safe and stable energy infrastructure system, taking advantage of its LNG expertise accumulated for half a century,” said Mr. Uchida.
On Wednesday, shares in First Gen closed 42 centavos or 2.35% higher at P18.30 each. — Victor V. Saulon

Ayala to reintroduce Kia to Philippine market

AC Industrial Technology Holdings, Inc. (AC Industrials) has sealed the deal to distribute Kia vehicles in the Philippines, expanding the number of auto brands under its portfolio.
In a disclosure to the stock exchange on Wednesday, parent Ayala Corp. said AC Industrials has signed a distribution agreement with Kia Motors Corp. (KMC) for the Philippines.
AC Industrials will establish a joint venture with Kia’s previous distributor, Columbian Autocar Corp. (CAC), with the former as majority shareholder. This will allow them to revamp the Kia brand in time for a targeted relaunch by January 2019.
“We are very excited to partner with Kia Motors in re-introducing the Kia brand to the Philippine market. With Kia’s dominant position globally, this partnership will undoubtedly boost AC Industrials’ automotive portfolio and enhance its position in the domestic automotive space,” AC Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said in a statement.
Meanwhile, AC Industrials President and CEO Arthur R. Tan said will be able to offer “competitive, technologically advanced vehicles in many key market segments.”
“As domestic automotive tastes rapidly evolve alongside the sector itself, AC Industrials, in partnership with Kia, is well-positioned to capitalize on this disruption and evolution and advance its strategic objective of becoming a leading player in the Philippine vehicle industry,” Mr. Tan was quoted as saying in a statement.
Founded in 1944 in Seoul, KMC has since grown to be a global automobile manufacturer selling vehicles in South Korea, North America, Europe, and other international markets. It became an affiliate of the Hyundai Motor Group in 1998.
KMC sold 2.76 million vehicles in 2017 across 185 countries. With this, the Hyundai-Kia group was ranked as the third largest automotive manufacturer in the world with 7.25 million vehicles sold.
The Kia group said its partnership with AC Industrials will allow them to accelerate their brand’s growth in the country.
“Together we will offer a refreshed, competitive model lineup and an outstanding sales and service experience. We also look forward to gradually bringing to the Filipino market many of the disruptive technologies now reshaping the future of the automotive industry,” according to a statement quoting Kia Motors Executive Vice-President and Chief Operating Officer Ho-Sung Song and Kia Motors Asia Regional HQ President Steve Lee.
AC Industrials will now have six brands under its vehicle distribution and dealership unit, AC Automotive.
AC Automotive currently distributes the Honda, Isuzu, Volkswagen, and KTM brands, under which it oversees a network of 27 company-owned and 30 third party-owned dealerships nationwide.
It partnered with Chinese automaker SAIC Motor Corp. to distribute Maxus commercial vehicles in the Philippines starting next year. — Arra B. Francia

PSEi expected to reach 8,300 level by end-2019

By Arra B. Francia, Reporter
BPI Securities Corp. projects the local bourse to reach the 8,300 level by the end of 2019, driven by a rebound from the consumer sector on expectations of slower inflation next year.
BPI Securities President and Chief Executive Officer Hermenegildo Z. Narvaez said the forecast is based on individual outlooks for the different stocks forming the Philippine Stock Exchange index (PSEi).
“Our expectation is the market will probably grow in line with earnings growth, so this will suggest that we’re looking at a 9-10% growth over the next year,” Mr. Narvaez said during a yearend market outlook briefing in Makati City on Wednesday.
BPI Securities predicts the PSEi will end the year at the 7,650 level.
The local brokerage is particularly upbeat on the consumer sector, which could benefit from higher margins once inflation slows down next year. BPI Lead Economist Emilio S. Neri, Jr. said during the same briefing that he expects inflation to fall below 4% by the middle of 2019, predicting full-year inflation to settle at 3.6%.
Slower inflation will address the key concern of higher input costs that consumer companies have been experiencing this year.
“The underlying numbers for the consumer sector is quite strong. If you look at the revenue growth of the likes of CNPF and DNL, you’re actually able to see a double-digit growth,” Mr. Narvaez said, referring to Century Pacific Food, Inc. and D&L Industries, Inc.
“It’s important to note that given that we’re expecting inflation to slow down, companies probably should be benefiting from some margin expansion in 2019,” he added.
Mr. Narvaez also noted the upcoming midterm elections will support spending in 2019, further helping boost consumer stocks.
BPI Securities’ stock pick for the consumer sector is CNPF, expecting an upside of 12.3% to P17.50 from its price of P15.58 on Tuesday.
Slower inflation is also seen to benefit retailers’ gross margins next year. Mr. Narvaez noted the business model of retailers already allow them to pass on higher input costs to end-consumers.
“Moving forward, they’re going to be able to continue to raise prices. They’ve been able to absorb the increase in input costs, and the growth of these input costs will probably slow down in 2019,” Mr. Narvaez explained.
The brokerage selected Puregold Price Club, Inc. as its top pick for the retail sector.
Meanwhile, the BPI Securities executive noted investors should be more selective when dealing with the restaurant sector. He cited Jollibee Foods Corp., which has been able to sustain healthy same-store sales growth as it was able to pass on higher input costs to consumers.
For the property sector, Mr. Narvaez said demand for real estate remains strong because of both domestic and overseas Filipino buyers, alongside demand from the offshore gaming sector.
The only concern for the property sector is that pre-sales have been “so strong” over the previous years, raising the question whether or not this high base can be sustained.
“The good thing though is a lot of property companies have anticipated this increase in interest rates, so a lot of them are moving away or trying to focus less on the development side of the business and more on the leasing side,” Mr. Narvaez said.
BPI Securities named Ayala Land, Inc. as its top pick for the property sector, expecting its shares to rise 21.2% to P51.69 each from its price of P42.65 on Tuesday.

Alain Ducasse: ‘Cuisine must respect the Earth and also people’

SEVERAL French chefs have gone down in history as the best: there’s Escoffier, and then there’s Careme; and many others besides. But these men were the best for personifying the cooking styles of their day: the excesses of the Belle Epoque are firmly stamped with Escoffier’s name, while the French Empire lives on with Careme’s. Alain Ducasse, the French superstar chef who currently has the most Michelin stars (21 at our last count; Joel Robuchon had 31) for his restaurants, will go down in our age perhaps, for understanding the Zeitgeist that has gripped our world, from lifestyle to climate change.
Mr. Ducasse was born in 1956 in southwestern France, and received his introduction to food in a farm. Beginning in the 1980s, his career expanded across continents, from most of Europe and on to the United States and Asia.
Last week, Mr. Ducasse visited the Ducasse Education institute in Enderun Colleges in Taguig City for his charity work and for the inauguration of a new kitchen. The Ducasse Education institute here, with the partnership of Enderun, is the first outside France.
“Filipino students are very eager to learn,” said Mr. Ducasse, speaking through an interpreter. “That’s something that really touches him,” said the interpreter, as the chef’s answer when asked why the Philippines is so lucky to boast of the first Ducasse institution in Asia.
Growing up near a farm was influential to Mr. Ducasse’s culinary philosophy, which works around natural ingredients and making them sublime through cooking them simply, with just the right seasoning and temperature. “Nature is an inexhaustible source of inspiration: it is nature that dictates the rhythm of the kitchen, of the farmers, breeders, and fishermen. Conscious of his responsibility to the preservation of natural resources, he works only with seasonal produce, produced naturally or fished durably,” it says on his Web site. “The original taste; the ingredients, they’re closest to the Earth. That’s what influenced him the most,” Mr. Ducasse told BusinessWorld. “You respect the products, and make it a star.”
Asked how he got so many Michelin stars, he said, “I work harder.”
“Just work more, and better.”
“Cuisine must respect the Earth, and also people. We must respect the palates as a whole,” he said. This lines up with his principle of “humanist cuisine” and on his Web site, it said, “For Alain Ducasse, the chef is the liaison between nature and humanity, the artisan whose role is to make happy those he feeds.”
Mr. Ducasse also cites working with the right suppliers “that respect the environment,” and use sustainable techniques, and “take care of the planet and society as a whole.”
Someday, Mr. Ducasse will join the late and great chefs of his tradition. The planet will live on long after he is gone, and an imprint he would like to leave is this. Grasping the world’s situation of inequality, set against an environment changing for the worse, he said, “We have societies which eat too much and have obesity problems and die from it.” On the other side of the spectrum, “Others who are underfed.” While he advocates reducing salt, fat, and sugar, he says, “Once we will find the middle-point, then the planet as a whole will be… happy.” — Joseph L. Garcia

Exciting Enderun auction raises funds for Tuloy Foundation scholars


EXCITEMENT filled the Enderun Tent as the live auction of the Harvest of Hope fundraising dinner began. The sale’s tempo started off at a stately pace, with auctioneers setting bid increments at P10,000. By the end of the run, guests were furiously bidding for “72 Hours in the World of Alain Ducasse,” with each paddle raise corresponding to a price increase of P100,000.
The “72 Hour” lot was the biggest in the auction, and the only one that went live. Other lots that were silently auctioned off throughout the evening included the Livre Ducasse at Home cookbook; two-night stays at Hijo Resorts in Davao, Misibis Bay in Albay, and Donatella Hotel in Bohol; dinner for two at Rech Hong Kong; a bottle of Ducasse Champagne; the famous cookpot designed by the famous chef and Pierre Tachon; and a chef’s jacket signed by Mr. Ducasse.
Harvest of Hope was meant to raise funds for Youth With a Future, a program which provides scholarships at Ducasse Education Philippines at Enderun Colleges, along with job placements, to select culinary students of the Tuloy Foundation which provides shelter and education to former street children.
THE DINNER
Chef Alain Ducasse was the guest of honor on Nov. 27 at the sumptuous dinner created by teachers and alumni of Ducasse Education Philippines.
Front and center at the tent’s foyer were the items up for the silent auction, while lining the walls were booths featuring the organizations which were chosen to provide the ingredients used in the dinner — Kitayama Beef, Sambali Beach Farm, Pinkie’s Farm, Shumei Natural Agriculture, Hineleban Farms, Meliomar, DowntoEarth, Malagos Farmhouse, AWC Philippines, and Bestworld Beverage Brands and Federated Distributors, Inc. (distributors of Evian and Badoit). These organizations were featured in video clips shown during the dinner as the event’s different chefs introduced the next dish on the menu, giving the guests a glimpse into the secret life of the items on the plates before them.
Guests, who had each shelled out P10,000 for a seat at the table, were first served Greek-style micro cucumbers, local white cheese, and edible flowers — a balanced dish, with a sweetish dressing well matched by the sour yoghurt and strong feta cheese, and the miniature cucumbers adding crunch to the soft concoction. Then came Tuna belly escabeche with local fruit vegetables, a cold dish, almost “gazpacho-like” as someone at the table said. Made with exceedingly fresh vegetables — hydroponic peppers, eggplant, radish, squash blossoms, and cherry tomatoes on a bed of caramelized onions, the dish could almost stand on its own without the fish. The main course was Kitayama beef loin with local farm vegetables, dalandan and black pepper jus which had the carnivores at the table satisfied. The fact that it came with a tasty adlai risotto instead of regular rice was a bonus.
The meal ended with a plate of local artisanal cheese from Malagos Farmhouse paired with mulberry jam and pili nuts followed by Tropical Lemongrass Vacherin with mango, passion fruit and coconut, and tarragon tea.
RAISING MONEY
Tuloy Foundation Founder and President Fr. Marciano “Rocky” Evangelista took to the stage and talked about how the organization started back in 1993 with 12 children, and how it has 1,000 children today, with three dorms, a gym, a chapel, a football pitch, and workshops for nine skills that the children learn. And yet, he noted, they had no money then and they have no money today, and are reliant on donors like those filling the Enderun Tent, giving an impetus for the diners to open their wallets wider.
At the end of the dinner, another heartwarming video, featuring several of the successful Youth With a Future scholars was shown. According to a release from Enderun Colleges, “all 30 past scholars from the Youth with a Future initiative have flourishing careers worldwide: one is working in the prestigious Ducasse Sur Seine, a river cruise and restaurant boat in Paris, France, seven are employed in Four Seasons Resort Dubai, three in an international shipping line, and 19 are placed in restaurants in the Philippines.”
“In the coming year, Ducasse Education Philippines at Enderun Colleges is set to train 10 scholars from Tuloy Foundation with the proper knowledge and skills that they need to contribute and succeed in the tourism industry under the wing of its world-class chef instructors,” it continued.
Then came the main event — the auction of “72 Hours in the World of Alain Ducasse,” which includes three nights at Plaza Athenee in Paris, dinners and lunches for two at Ducasse Sur Seine (a river cruise and restaurant boat in Paris), the three-Michelin Star Plaza Athenee, at Allard, at Ore (with a tour of the castle of Versailles), and the two-Michelin Star restaurant Le Meurice, and a culinary short course for two at Ecole de Cuisine Alain Ducasse.
The bidding started at P280,000, and as the paddles were eagerly rising around the room, the auctioneers started to increase the increments, and the numbers quickly rose — P300,000, P350,000, P450,000, P500,000, P600,000… In the middle of the furious bidding, Ducasse Education CEO Cyril Lanrezac announced that they would be adding one more night to the package. After a bidding war between two tables, things stalled at P800,000, at which point Davao-based businessman Dennis A. Uy, founder, president, and CEO of UDENNA Corp. which acquired Enderun Colleges, went up on stage and announced that he would match the bid if it reached P1 million.
And it did.
And then two more tables announced that they too would buy the “72 Hour” package for P1 million.
By the end of the night, Mr. Uy again went up on the stage and announced that they had raised P6.5 million that evening.
Fr. Rocky had a big smile on his face. — AA Herrera

TV5 franchise extension gets House approval

THE House of Representatives on Tuesday approved on third and final reading the renewal of the legislative franchise of ABC Development Corp., currently known as TV5 Network, Inc.
House bill no. 8630, which extends the broadcast operations of TV5 by another 25 years, received 207 affirmative votes and one negative vote.
TV5 mainly airs sports programs, through ESPN, and news programs, through News5. TV5 also caters to overseas Filipino audiences through Kapatid International.
Once HB 8630 is signed into law, TV5 can continue to operate and maintain its radio and television broadcasting facilities in the Philippines.
Under the measure, TV5 is required to provide the government with adequate public service time or a maximum aggregate of 10% of the paid commercials or advertisements.
The network is prohibited from broadcasting obscenity, indecent language, speech and the like, as well as the deliberate dissemination of false information.
Under the bill, the Philippine President is given the right to temporarily take over and operate the TV station and its facilities; to temporarily suspend its operations in interest of public safety, security and public welfare; and to authorize the temporary use and operation of any government agency in times of “war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order.”
In compliance with the Constitutional provision promoting public participation in public utilities, TV5 is required to conduct a public offering of at least 30% of its outstanding capital stock within five years from commencement of operations.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — C.A.Tadalan

An abundance of seafood


SELECTING a variety of seafood dishes for a meal may be a tough decision, but a pleasant one. And over at Isla Sugbu Seafood City you can choose, cook, and eat; but unlike a regular dampa restaurant, it offers a fourth step — repeat.
First opened in Cebu in 1989, the restaurant was re-established as Isla Sugbu Seafood City in 2014 after a hiatus. Since its reopening, it has won the Sunstar’s Best of Cebu Award for Best Seafood Restaurant from 2014 to 2017.
The restaurant recently opened its first branch in Manila at the Venice Grand Canal mall in Taguig City.
“It’s a nice addition to the food scene in Manila. It’s not common. It’s a place that you can bring guests to if you feel like spending some money that’s not going to burn a hole in your pocket,” Winglip K. Chang, president of Kuya J Holdings Group, Inc., told BusinessWorld shortly after the program at last week’s launch.
The restaurant offers Paluto All-You-Can — a buffet concept with its all-seafood station. Guests choose from a variety of locally sourced fresh seafood including shrimps, scallops, oysters, mud crabs, and king fish. The seafood is then prepared in an open kitchen according to the cooking style guests prefer. Items labeled “premium” are excluded from the offer. Diners can keep returning to the buffet to get more choice seafood cooked at no extra cost.
As part of its launch, promo rates are being offered — P848 for weekday lunch, and P888 for dinner and weekends. The regular rate is P1,300 per head.
Mr. Chang noted that guests are obliged to finish their food. “The Paluto All-You-Can has no limit on what you can eat. But we want people to also be responsible in picking how much food they want to have cooked,” he said about the leftover charge which is twice the promo rate.
Mr. Chang said the promo rate will remain for quite a while. “We want to get as many people to enjoy the restaurant,” he said. “It doesn’t have to be fancy. It’s just nice and fresh seafood, cooked well at a very good price.”
The P848 promo rate is available from Monday to Thursday, 11 a.m. to 3 p.m.; and P888 from Monday to Thursday, 6-11 p.m.; and on weekends, 11 a.m. to 3 p.m., and 6-11 p.m. on Fridays, and 10 a.m. to 3 p.m., 6-11 p.m. on Saturday and Sunday.
For information, visit www.seafoodcity.ph. — Michelle Anne P. Soliman

Sophos flags emergence of targeted cyber attacks

By Denise A. Valdez
Reporter
CYBERSECURITY COMPANY Sophos said next-generation technology is needed to address new types of cyber attacks, which it found are starting to be more targeted based on its 2019 Threat Report.
The United Kingdom-based firm said many businesses that are affected by cybersecurity breaches are subscribed to antivirus softwares, but are still penetrated because cybercriminals have also started to adapt.
“Next generation threats are not the traditional threats we know of in the past, where we could stop them with traditional antivirus. We need to look at new ways to stop them,” Sophos Managing Director for ASEAN and Korea Sumit Bansal said in a media roundtable on Tuesday.
It said its survey of 2,000 organizations globally found that 54% were hit by ransomware last year, and 77% of the those had an up-to-date antivirus at the time of the attack. It added that the average cost for every ransomware attack is $133,000.
“The threat landscape is undoubtedly evolving ‚ a less skilled cyber criminals are being forced out of business, the fittest among them step up their game to survive and we will eventually be left with fewer, but smarter and stronger, adversaries,” Sophos Chief Technology Officer Joe Levy said in a statement.
Sophos Senior Manager for Security Solutions Engineering in ASEAN Julius Suarez explained the start of targeted attacks that’s veering from emailed viruses. He said cybercriminals are using a search engine for Internet-connected devices to find those that use vulnerable softwares.
“Cybercriminals are targeting any server that has this vulnerability… They are not infecting the server, but they are using the server to hop into your network,” Mr. Suarez said.
He added that aside from targeted attacks, some attackers are also beginning to utilize Windows system administration tools which are already installed in one’s computer. He said with this, cybercriminals may more easily hack into a device by uploading just a script and exploiting built-in tools to execute an attack.
To address these emerging trends in cyber breaches, Mr. Suarez said it is important for business organizations to tap next-generation antivirus tools that are more equipped to detect and address the new forms of attacks.
He added that it is also helpful to employ security basics such as a using virtual public network and multi-factor authentication, reassigning default applications in a device and restricting the applications that a work station can run.

Yields on term deposits go up

By Melissa Luz T. Lopez, Senior Reporter
DEMAND for term deposits improved this week but failed to fill the auction amount set by the central bank, driving yields higher into the five percent level.
Banks wanted to place P69.643 billion under the term deposit facility (TDF) yesterday, higher than the P59.428 billion tenders received the previous week although still short of the P70 billion which the Bangko Sentral ng Pilipinas (BSP) wanted to sell.
Bids for all tenors improved, although appetite for the one-week papers settled just below the BSP’s offer weeks into the Christmas season.
Players put forward P36.406 billion in bids under the seven-day term, surging from the P28.894 billion placements a week ago. However, this fell short of the P40 billion which the central bank placed on the auction block.
Still, lenders asked for bigger margins for the term deposits, with the average yield rising to 5.0168% from the 4.942% fetched during the Nov. 28 exercise.
The 14-day papers also saw stronger demand as offers improved to P20.057 billion from last week’s P19.837 billion, with banks maximizing the P20-billion offering made by the BSP.
Players then sought for higher rates at 5.1271%, inching up from the 5.0715% fetched the prior week.
Appetite likewise improved for the 28-day deposits as tenders reached P13.18 billion on Wednesday, up from P10.697 billion previously to sustain a trend oversubscription.
Yields climbed ahead to 5.1433% from 5.1103% a week ago.
The TDF has been the central bank’s main tool in mopping up excess liquidity, which they also expect to push short-term interest rates. Through the weekly auctions, the BSP can bring market and interbank rates closer to its desired range by setting the standard for short-term instruments via the margins that they pay to bank for these placements.
The rise in TDF rates reflect market players taking advantage of higher policy rates after another hike worth 25 basis points took effect in November. This marked the fifth straight hike from the BSP this year, which brought benchmark rates between 4.25-5.25%.
BSP Deputy Governor Diwa C. Guinigundo said stronger appetite for the longer tenors are due to improving market sentiment.
“They can now afford to go a little longer knowing that lower inflation gives the BSP greater latitude in terms of monetary policy options,” the BSP official said in a text message.
He added that banks are likely holding on to more money to service bigger client payments and withdrawals, as demand for cash usually spikes going into the Christmas season.
Mr. Guinigundo likewise pointed out that liquidity will improve in the coming weeks given more dollar inflows from remittances, outsourcing revenues, and tourism, which often peak during the holidays.
The central bank is keeping its auction volumes steady for next week’s offering.

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