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Fancy paying P150 for a bottle of tea?

HTTPS://WWW.INSTAGRAM.COM/UPYOURANTE/

BRIGHT YELLOW packaging and a stylized label mostly devoid of information is how Ante Tea sets itself apart from its competitors in the bottled tea market.
The brand has a store in Makati’s Greenbelt 5, where the tea is cold-brewed and bottled. It has its merits: the tea comes in three flavors — Blacker Berry, Sunday Candy, and Ultralight Green — and discerning fans of rap stars Kendrick Lamar, Chance the Rapper, and Kanye West would know that the flavors are inspired by their hits.
It’s an edgy approach to bottled tea, which is sometimes seen as a stodgy drink. The tea — which costs P150 — is poured into a bottle then sealed when you buy it at the Greenbelt store. It is perishable, meant to be drank in a matter of hours, because it’s made fresh with no preservatives, and bits of herbs and fruits float around in the bottle.
Lorenzo Vega, founder of Ante, is also behind the Siklesa, a motorcycle-calesa hybrid, and the restaurant Sicilian Roast. “We are people who want to push things forward, who dare to be different,” said the 20-something in a black hoodie.
About the brand’s name, he said, “First of all, it kind of rolls of the tongue. Second of all, it has all these meanings to it.” He cites how it sounds a bit like “anti” as in “anti-establishment,” taking from the idiom “up the ante,” and the word “antecedent,” which means something that “existed before, or logically precedes another.”
But hasn’t bottled tea seen its day? People are now putting it down in favor of good, clean water. “As for bottled tea [having] seen its day, I can’t say that, because I know a lot of people who drink it,” he said.
Speaking about other people’s teas in the market, he said that it’s a misconception that Filipino like it sweet, resulting in big companies making their products a little too sweet. “You don’t taste the beautiful bitterness [of tea]. Essentially, you’re drinking sugar water.
“Whether or not bottled tea has seen its day, bottled tea has never seen Ante,” he declared.
Strip off the marketing, strip off the clever packaging, strip it of everything that makes Mr. Vega think his product is different, and what have you got?
“It’s a wonderful tasting product,” he said.
“What we wanted to do with tea was make it really, really cool.”
BusinessWorld took a sip from the Blacker Berry variety. It had a hint of what we think was raspberry, and had strawberries and mint leaves floating in it. It really wasn’t as sweet as other bottled teas, just as Mr. Vega described it. I wiped off the stray mint leaf that had travelled up to my upper lip. I came to a conclusion.
It was tea. — Joseph L. Garcia

Max’s Group Q2 income up 34%

MAX’S Group, Inc. (MGI)’s net income expanded by 34% in the second quarter of the year, as the company implemented operational efficiency initiatives to help temper rising costs of raw materials.
In a statement issued Wednesday, the listed casual dining restaurant group said net income picked up to million for the April to June period, accelerating from the million posted in the same period a year ago.
Systemwide sales went up by 11% to P4.9 billion, as same-store sales growth stood at six percent. New store sales also grew by five percent during the quarter.
“The results underpin prior initiatives to reorganize ourselves and invest on building professional capabilities to spearhead long-term growth,” MGI President and Chief Executive Officer Robert F. Trota said in a statement.
MGI has been consolidating its businesses in the previous months, merging a number of subsidiaries to achieve more efficient operations.
“We have effectively regrouped into various strategic functional teams, each with defined and uniformed objectives that promote cohesiveness and productive interactions within the group. This setup has allowed us to leverage and benefit from additional operational efficiencies across the business,” Mr. Trota added.
MGI’s systemwide sales expanded by 12% to P9.3 billion in the January to June period.
First half revenues meanwhile grew by 11% to P6.7 billion, while net income was flat at P332 million during what MGI described as ”cautious” start to the year.
MGI opened a total of 21 new stores over the first six months of 2018, three of which are located overseas. The company now has 678 branches, with 54 across several sites in North America, the Middle East, and Asia.
The company expects to sustain its growth in the remaining half of the year, amid the continuing headwinds in the prices of raw materials.
MGI Chief Operating Officer Ariel P. Fermin noted the company will continue to pursue expansion via franchising. It earlier said that it targets to have a 65% to 35% mix of franchised versus company-owned stores by 2020 when it will have 1,000 stores.
MGI’s brands include Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur de France, and Singkit.
Shares in MGI went up eight centavos or 0.61% to end at P13.18 each at the stock exchange on Wednesday. — Arra B. Francia

Taiwan chipmaker blames WannaCry ransomware for plant closures

TAIWAN chipmaker TSMC, reeling from a computer virus that shut down several plants over the weekend, is expected to be able to fill orders on time for Apple Inc. as it gears up to release new iPhones later this year.
Taiwan Semiconductor Manufacturing Co. said Monday that full operations have resumed after a variant of the 2017 WannaCry ransomware affected production over the weekend. The infection, which happened when a supplier connected tainted software to TSMC’s network without a virus scan, spread swiftly and hit facilities in Tainan, Hsinchu and Taichung — home to some of the cutting-edge plants that produce Apple’s semiconductors.
TSMC executives wouldn’t discuss the impact on its customers, but the fact that the malware made it past security protocols is a black eye for a corporation that prides itself on its technological and operational superiority. Its shares slid about another 1% on Tuesday.
“My suspicion is that there will be minimal impact on Apple,” said Nehal Chokshi, an analyst with Maxim Group LLC. The time Apple will have to wait to receive the chips will be extended only by the number of days production was delayed, which is about three days, he added.
“This is really minor,” Chokshi said. “I don’t think there’s a need to panic from Apple’s perspective or from an investor’s perspective.”
TSMC declined to discuss the implications for Apple, which also declined to comment.
Apple is said to be ramping up production of three new iPhone models for this fall, banking on them to continue its recent sales momentum. It’s also planning new iPad and Apple Watch models, devices that have historically used TSMC chips. Apple designs the processors that go into its devices, but uses TSMC to make the chips. In the past, the U.S. company has employed foundries owned by Samsung Electronics Co., its rival in global mobile devices.
TSMC intends to make up for the lost time as it heads into the critical holiday season, Apple’s most important quarter. The chipmaker will probably prioritize Apple, its largest customer, over smaller clients as it resumes normal operations, Chokshi said.
No hacker targeted TSMC, Chief Executive Officer C. C. Wei said Monday, explaining that the infected production tool was provided by an unidentified vendor. The company is overhauling its procedures after encountering a virus more complex than initially thought, he said.
“We are surprised and shocked,” Wei told reporters. “We have installed tens of thousands of tools before, and this is the first time this happened.”
Chief Financial Officer Lora Ho said the incident would have some impact on TSMC’s 2018 profit, declining to elaborate beyond an earlier warning that third-quarter gross margins would slip by about a percentage point.
This is the first time a virus had brought down a TSMC facility. The incident underscores the global nature of the technology supply chain, in which companies like Apple and Qualcomm Inc. depend on hundreds of suppliers around the world.
WannaCry spread across the globe in May 2017, rolling through corporations from FedEx Corp. to French carmaker Renault SA and infiltrating Russia’s interior ministry as well as British hospitals. Thought to have emanated from North Korea, it gave victims 72 hours to pay $300 in bitcoin or cough up twice as much, threatening a permanent loss of data. Wei said the variant that infected TSMC didn’t demand a ransom.
The rogue code was ultimately estimated to have infected hundreds of thousands of computers that run Microsoft’s Windows, in thousands of companies in about 150 countries. The ransomware however was considered unsophisticated and was quickly contained.
Gene Munster, co-founder of Loup Ventures and a long-time Apple watcher, agrees with other analysts that iPhone production is unlikely to be delayed but says the virus incident could affect Apple’s relationship with TSMC.
“My sense is that this is an issue for Apple because they’re going to take TSMC’s security problem more seriously than any other company,” he said. “Apple believes so strongly in privacy and security that this is something that could impact their relationship with TSMC.” — Bloomberg

Big banks post better earnings

BIG BANKS in the Philippines managed to grow their bottom lines during the first half of 2018 at a time of rising interest rates and bigger tax dues, latest central bank data showed.
Universal and commercial banks made a cumulative P77.364 billion net income as of end-June, 7.7% higher than the P71.842 billion they booked during first six months of 2017. These lenders made P39.768 billion during the first quarter, according to the Bangko Sentral ng Pilipinas (BSP). Big banks made P146.33 billion in 2017.
Net interest income surged by 14.9% to reach P202.492 billion during the first half of 2018, coming from P176.189 billion reported during the same period last year. So far, these big banks have granted a total of P8.331 trillion worth of loans and shored up P11.019 trillion in deposits as of June.
On the other hand, non-interest income hit P71.134 billion, up 27.2% from the P55.915 billion booked a year ago.
Trading income surged by 80% from a year ago to hit P25.876 billion, led by realized gains from dollar transactions. This came despite a 24% reduction in gains for foreign exchange trading, at a time when the peso is at trading 12-year lows versus the greenback.
Revenues from fees and commissions also grew by a tenth to hit P37.888 billion, helping offset a 12.5% drop in dividend income, data showed.
On the other hand, non-interest expenses rose by 16.9% to P174.513 billion, with spending on taxes and licenses up by a fourth to P18.576 billion.
Administrative expenses, which account for nearly half the sum, grew by 16% to P73.014 billion. Salaries for bank employees and officials also picked up by a tenth to hit P56.752 billion. — Melissa Luz T. Lopez

More Bordeaux labels to discover


I HAVE to hand it to Wine Story for being the runaway choice for the best and most compelling Bordeaux wine selection in the country. Bordeaux will always be the preeminent wine region of wine lovers. But Bordeaux is not as easy to approach, especially for the non-hardcore enthusiasts, as any New World wine region, either it be Napa Valley, Barossa, or Marlborough. For one, Bordeaux has over 120,000 hectares of vineyards, this is just 80,000 hectares less than the vineyards in California (which contributes 90%+ of US Wines). Bordeaux has over 8,500 wine producers, compared to California’s much fewer 400+ wineries. Bordeaux is also four times the size of fellow French wine region Burgundy and 1.5 times bigger than Rhone.
Then, there are the 54 appellations and sub-appellations within Bordeaux alone. In contrast, La Mancha is a solo Spanish appellation and yet it is bigger in size than Bordeaux, with over 190,000 hectares of vineyards — making it the world’s largest wine region/appellation. From there, it can get more complicated with details on terroir, right bank, left bank, Grand Cru Classifications, second labels, and more.
THE GRAND CRU MYSTIQUE
When it comes to expensive French wines, the term Grand Cru will be a staple on the label. This is more so when it relates to Bordeaux. Grand Cru is French for “Great Growth.” The term was part of the brilliant French wine classification system initiated by Emperor Napoleon III (successor of Napoleon Bonaparte) in the mid-19th century to rank wine labels from chateaux based on reputation and ongoing trading prices — which were directly related to quality. The first such classifications is the still much-revered 1855 Bordeaux Classification — which was really about Medoc wines, with the exception of the inclusion of Chateau Haut-Brion from Graves.
Then this was followed exactly a century later with the 1955 Saint-Emilion Classification, and then the 1959 Graves Classification (later renamed Pessac-Leognan).
Of these three classifications, only the Saint-Emilion Classification had evolved with updates supposedly every 10 years, though broken by the controversial 2006 classification, and rebounded with the latest 2012 classification. Also not surprisingly, Saint-Emilion wines also have the most “Grand Cru” indiscriminately indicated in their labels. This is because of a flaw in their classification where Grand Cru has almost zero bearing, and only Grand Cru “Classe” — literally, the word “Classe” has to be spelled out on the label — means inclusion in the Saint-Emilion Classification. Only 82 wines are Grand Cru Classe, with four being Premier Grand Cru Classe A (the highest tier), 14 being Premier Grand Cru Classe B, and the 64 being plain Grand Cru Classe.
Hundreds of other wines, all with the Saint-Emilion appellation controlee on them, are simply Grand Cru and can be bought as cheap as below P800/bottle. Needless to say, the vast majority of these ordinary Grand Cru wines are definitely not befitting the Grand Cru quality that it was intended for. Though I did come across (Chateau) Tertre Roteboeuf, an unclassified Grand Cru Saint-Emilion wine that is actually quite comparable and even better than many of the other Grand Cru Classe wines, but, sadly, it is priced as a Grand Cru Classe too, so no bargain here.
OTHER BORDEAUX GRAND CRU WINES TO DISCOVER
I attended for the nth time another special wine dinner at Wine Story Serendra. A Wine Story wine dinner is sure to be a hedonistic experience regardless of what Bordeaux wines are being featured. Also, when it comes to visiting wine dignitaries and wine verticals of top Bordeaux labels, it is also hard to match Wine Story, especially with the one and only Romy Sia at the helm.
Despite a busy schedule, I try not to miss any Wine Story event. And lucky for me, I was able to attend the last one which featured two wines that are not go-to Bordeaux brands locally, but renowned in their own rights. Both are legit Grand Cru wines: Chateau Smith-Haut Lafitte, a Grand Cru Classe Graves, and Chateau Clos Fourtet, a Premier Grand Cru Classe B Saint-Emilion.
NOT LAFITE, BUT LAFITTE (DOUBLE T)
The 1959 Graves Classification has only 16 labels listed from 13 Chateaux, including the original 1st Growth Chateau Haut-Brion. Unlike both the Medoc and Saint-Emilion Classifications, Graves Classification has no hierarchy and has only one classification, Grand Cru Classe. Of course, by virtue of its earlier recognition in the original 1855 Classification, Chateau Haut-Brion is just simply a league above every one of the Grand Cru Classe wines under Pessac Leognan. The 16 Crus (or Growths) are divided into seven Reds only, three Whites only, and six with Reds and Whites. For example, Domaine de Chevalier of Olivier Bernard (whom I met courtesy of Romy Sia) has Grand Cru Classe status in both red and white, while the wine being featured at Wine Story, Chateau Smith-Haut Lafitte, has Grand Cru Classe status only on its red wine. No relation to the 1st Growth Chateau Lafite-Rothschild.
I had a short but entertaining chat with the charismatic Ludovic Fradin, the commercial director of Chateau Smith-Haut Lafitte, during his visit to Wine Story in Taguig City. What immediately got my attention when I was poured the first wine, the white wine from Chateau Smith-Haut Lafitte, is the new black label (from their usual yellow label). When I asked Ludovic if Smith-Haut Lafitte will change its label, he explained that the black label is a special commemorative label for the 2015 vintage only, and it is honoring the 25th harvest year of the current ownership (Cathiard family), and also the Chateau’s 650th anniversary since its start in 1365.
While Smith-Haut Lafitte only has its red wine given Grand Cru Classe status, I actually have always loved their white version, which is to me the best expression of Sauvignon Blanc in Bordeaux, and even at times, I like it more than their more illustrious red counterpart.
But for this dinner, my loyalty to their white was tested when the Smith-Haut Lafitte red wines being served were two very good, more recent vintages, the 2012 and the 2005.
Chateau Smith-Haut Lafitte wines from the above mentioned vintages are available at all Wine Story stores: Serendra in The Fort, Taguig City, Shangri La Mall in EDSA, Mandaluyong, and One Rockwell West Tower in Makati. You can also visit their website at www.winestory.com.ph.
(The story is to be continued in my next column, complete with all tasting notes.)
 
The author has been a member of the Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux or FIJEV since 2010. For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.

How PSEi member stocks performed — August 8, 2018

Here’s a quick glance at how PSEi stocks fared on Wednesday, August 8, 2018.

Philippine Stock Exchange’s most active stocks by volume turnover — August 8, 2018

House version of tax reform bill could dampen expenditure

ECONOMIC MANAGERS warned of spending reductions due to weaker revenue prospects of the second tax reform package, amid attempts to keep military pensions under control and a Supreme Court ruling calling for more funding for local governments.
“TRAIN 2 is supposed to be revenue-natural,” Budget Secretary Benjamin E. Diokno said in a briefing on Wednesday, meaning that any foregone revenue needs to be offset by savings elsewhere, thereby preserving the spending program.
He was referring to the second package of the tax reform program, formerly known as Tax Reform for Acceleration and Inclusion (TRAIN) but now rebranded after modification in the House as Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO).
Commenting on the apparent change in emphasis in the House to focus on jobs, Mr. Diokno said TRAIN 2 was already expected “to attract more workers.”
The version that the House committee on ways and means approved on Tuesday did not include the Finance department’s proposal to index corporate income tax cuts to the savings generated from streamlining fiscal incentives.
Finance Undersecretary Karl Kendrick T. Chua said that in the first year of implementing the measure would cost about P62 billion.
“We’re not sure if that will stick. If it’s revenue negative, that’s serious. So we will try to convince them to try to make it at least revenue neutral,” he said, noting that the proposal has yet to pass through the House plenary. Other opportunities to modify the legislation are in the Senate, which must also pass its own version, and the bicameral conference committee, where the two versions must be reconciled.
“That is a serious fiscal breach. It could result in a higher deficit. We don’t want that to happen or we will have to cut back on our expenditures, which we also do not want to happen,” he added.
The House bill proposes to cut the corporate income tax rate to 20% from 30% gradually, or a 2 percentage-point reduction every other year beginning 2021.
It also proposed to limit incentives to a single menu, with perks capped for five years. The menu will only be available to industries included in the annual Strategic Investments Priority Plan (SIPP), and those availing of the perks must satisfy performance targets as determined by the Board of Investments. The bill also includes a sunset period of two to five years depending on the contracts that firms enjoying incentives have with investment-promotion agencies (IPAs).
Mr. Chua said: “It would be better if (tax rate cuts) are conditional to ensure revenue neutrality. We are not sure the version passed will be revenue neutral, but we will try our best.”
Mr. Diokno said government revenue is already under pressure because of a Supreme Court ruling ordering the automatic and prospective release of local government claims on national government revenue. The claims are known as internal revenue allotments (IRAs), which the court ruled are based on all national government taxes, including those collected by the Bureau of Customs. The current practice is to share out taxes collected by the Bureau of Internal Revenue.
He said during a Senate hearing yesterday that complying with the ruling would cost the government P195 billion on top of the funds already allocated for local government units (LGUs) this year.
Mr. Diokno said that the government through the Office of the Solicitor General submitted yesterday its motion for reconsideration to the high court, seeking clarification on which taxes are to be included in the computation of the IRA.
He added that giving LGUs the expanded share of national revenue will expand the fiscal deficit to 4% of the economy from 3% currently. He said that in the event the ruling is final and executory, the government will devolve some functions to LGUs to keep its fiscal position intact.
“We cannot afford a higher deficit, we cannot risk it.”
Mr. Diokno also identified the growing pension liabilities for uniformed personnel as a fiscal risk.
Finance Secretary Carlos G. Dominguez III in the same Senate hearing said that economic managers will submit to Congress a draft that will create a new contributory pension scheme, as the government budget currently shoulders over P33 billion of retiree’s pensions annually.
“We will be presenting the package to the President for his approval (and proceed to) legislation… to address the pension issue. It’s a very difficult problem and I’m not sure we can solve it all, but at least we are going to start solving it,” Mr. Dominguez said.
“He gave us until the end of the month for the package,” he added.
He said that the government’s outstanding liabilities to military retirees are at P4 trillion.
“For every position, we are paying two and a half people who are retired. You have the guy who is doing the job, and there are two more guys who are retired, and getting the pay of this guy now,” he said, referring to the indexing of retiree pensions to the levels enjoyed by active-duty personnel. — Elijah Joseph C. Tubayan

5% tariff on key farm items may curb inflation

THE GOVERNMENT is considering lowering import tariffs to a uniform 5% rate for selected basic commodities as part of a broader effort to contain inflation.
“We are now considering reducing the tariff on those products like pork, corn and feed wheat, and fish. And therefore the economic managers are confident, that inflation will taper off in the second half of the year and it will go back to its normal range of 2-4% next year,” Budget Secretary Benjamin E. Diokno said in a briefing on Wednesday.
Inflation accelerated further to 5.7% in July, and now averages 4.5% in the seven months to July, breaching the upper end of the central bank’s target range.
“We’re leaning towards a uniform reduction to 5%. It’s not zero. But right now the tariffs are 20-30%. We want to make it 5% so it’s simpler, more uniform, a standard rate like five. It’s kind of neutral in the sense that it does not affect the consumption of goods,” Mr. Diokno said.
He said that the revenue losses from the tariff reductions are not expected to be significant.
Speaker Gloria M. Macapagal-Arroyo met with economic managers last week to propose measures against inflation, such as bringing meat and fish import tariffs to zero, among others.
Mr. Diokno said that the plan to lower tariffs was discussed in the Cabinet meeting last month, before the meeting with Ms. Arroyo, but noted that the economic managers “appreciate” her input.
“We are now in the process of deliberating on reducing the tariffs,” Socioeconomic Planning Secretary Ernesto M. Pernia said, noting that the economic team will meet on Friday to discuss further action.
Mr. Pernia said that the plan to lower tariffs will be temporary, returning to previous levels by 2019, as inflation is expected to be within the target range by then.
“That’s temporary (until inflation) goes back to the 2-4% next year,” Mr. Pernia said on the sidelines of a Senate hearing yesterday.
Congress has adjusted the legislative calendar for a recess between Aug. 16 and Aug. 27, which would permit President Rodrigo R. Duterte to lower tariffs via an Executive Order, as he is authorized to do under the Customs Modernization and Tariff Act, or Republic Act No. 10863.
Senate Minority Leader Franklin M. Drilon that such a move would “weaken further the agriculture sector.”
Asked to comment, Bernardo M. Villegas, an economics professor at the University of Asia & the Pacific, said that the foregone revenue and the potential weakening in the competitiveness of domestic goods is a worthwhile trade-off for lower inflation.
“It is worth it because the most important consideration at the moment is to alleviate the sufferings of the lower-income households because of high food prices,” he said in an e-mail.
Mr. Diokno said that the proposed lowering of tariff rates comes on top of the move to liberalize rice imports while collecting higher tariffs on imports of the staple. The tariff system is expected to reduce retail prices for rice by P7 per kilogram, while the tariffs will help fund measures to raise the competitiveness of the domestic rice industry by increasing mechanization and providing crop finance and insurance.
The rice tariff bill has hurdled the House of Representatives and remains pending in the Senate. It contemplates a 35% tariff on rice imports, in line with regional levels.
“All of (tariffs collected) will be put to good use, to provide assistance to farmers to become more productive so that we can compete,” he said.
“We will not give them cash gifts. We will invest in small irrigation facilities, high-yielding seed varieties, mechanization… this investment will increase productivity in agriculture,” Mr. Diokno added. — Elijah Joseph C. Tubayan

DoE identifies 6 regions to be opened for electrification ventures

THE Department of Energy (DoE) has identified six regions with electrification levels falling below 80% where private ventures will be encouraged to help bring power to barangays, sitios and households.
“The regions can be served by private corporations in partnership with the distribution utilities,” Energy Undersecretary Felix Wiliam B. Fuentebella told reporters on Wednesday after a Senate hearing.
In a statement, the DoE said of the six underserved regions, four are in Mindanao — the Autonomous Region in Muslim Mindanao, with an electrification rate of 27.4%; SOCCSKARGEN at 65.6%; Zamboanga peninsula at 67%; and Davao region at 68.2%. The SOCCSKARGEN region covers South Cotabato, Cotabato City, Cotabato Province, Sultan Kudarat, Sarangani and General Santos City.
The other two are the now-defunct Negros Island Region, which has since reverted to the Western Visayas, with a rate of 79.3%; and MIMAROPA with a rate of 79.9%. The MIMAROPA components are the Mindoro provinces of Occidental Mindoro, Oriental Mindoro, as well as Marinduque, Romblon and Palawan.
Mr. Fuentebella said there are other areas in the country where the distribution utility has waived its electrification franchise in favor of a qualified third party and open to participation from the private sector. If these areas are not attractive for investment, state-led National Power Corp. (Napocor) can come in with its missionary electrification program, he added.
The DoE said it was determined to bring electricity to three million households more “at the soonest possible time” through its total electrification program (TEP).
The department is seeking a budget of P2 billion for 2019 to intensify efforts to provide electricity access throughout the country.
“We are aggressively pursuing initiatives catering to the unserved and underserved areas of the country to promote inclusive growth. This initiative supports Ambisyon Natin 2040 — providing a strongly-rooted, comfortable and secure life for all Filipinos,” DoE Secretary Alfonso C. Cusi said during a budget hearing at the House of Representatives on Tuesday.
The DoE said that based on the 2015 census, it estimates a household electrification level as of end-2017 at 88.3%, with 21 million of the 24 million households in the country having access to electricity.
In the department’s proposed 2019 budget, the TEP accounts for about 25% representing an initial allocation of P505 million. The DoE said it will align its efforts with the National Electrification Administration, Napocor, the distribution utilities and other energy to provide power to about 14,320 households. — Victor V. Saulon

DTI sees imports easing inflation in 2-3 months

THE Department of Trade and Industry said it expects inflation to ease in two or three months based on the expected arrival of commodity imports, which will boost domestic supply and ease price pressures.
Trade Secretary Ramon M. Lopez said in a recording sent to reporters on Wednesday that if the commodities arrive as expected and retailers receive the goods “in two or three months, we hope we can start to feel a tapering off of inflation.”
On Tuesday, the Philippine Statistics Authority reported a 5.7% inflation rate for July, the seventh consecutive year-on-year rise.
The PSA attributed the July rate to price gains in food and non-alcoholic beverages (up 7.1%, compared with 6.1% in June 2018); alcoholic beverages and tobacco (21.5%, from 20.8%); transport (7.9%, from 7.1%); housing, water, electricity, gas, and other fuels (5.6%, from 4.6%); and health (3.7%, from 2.7%).
Mr. Lopez noted that he is receiving complaints of high retail prices for agricultural products which have low farm gate prices.
“We need to speak with the traders about that. We’re going to ask them to police themselves and not take advantage of the situation and to make sure that the supply will always be there for the retailers,” he said.
He acknowledged that some commodities are in short supply, such as sugar, and expressed support for lowering tariffs on some agricultural products and implementing a system that will allow imports to go directly to retailers.
“When we talk of importation, we need to ensure that it will really go to the retailers or industrial users. For example, when we talk of importing sugar, it should not be limited to a few traders or millers. It should be open to all,” he said.
On Monday, the Department of Agriculture said it is considering reviewing the issuance of sugar import permits, noting that the current process of coursing the permits through planters associations and traders takes time and imposes additional costs. — Janina C. Lim

Supply chain trade group to establish Davao chapter

DAVAO CITY — The Supply Chain Management Association of the Philippines (SCMAP) said it is preparing to set up a chapter in Davao, in part to work out solutions for the industry’s issues in Mindanao.
“What we do, we put people together in one group so that they can identify the issues and come up with solutions together, which is a collaborative effort,” SCMAP Executive Director Norman H. Adriano said in an interview on the sidelines of the recent Mindanao Shipping Conference held in the city.
SCMAP counts among its members the country’s major manufacturers, logistics providers, and retailers.
Mr. Adriano said having a sub-group in Davao will help address supply chain challenges within the local context, such as high shipping costs.
He cited as an example the SCMAP chapter in northern Luzon: “Our chapter in northern Luzon based in Clark is promoting the use of Subic Port. The problem is there is very little participation because people think that using the Subic Port is more expensive than Manila port. The chapter came up with a number showing people that it is not true.”
He said making supply chains more efficient ultimately benefits consumers.
“We believe that if people collaborate along the supply chain, the cost (of goods) will be at least maintained, not increase,” he said.
The added that the group is looking at forming a chapter in Palawan, which also has unique supply chain needs.
“In Palawan tourism is growing, so the logistics are tourism-related. We are going to push for another chapter in Palawan,” Mr. Adriano said. — Maya M. Padillo

5G opens up $1.8-billion revenue opportunity for telco — Ericsson study

Telecommunication companies in the Philippines should tap into 5G technology’s potential digitalization revenues, which could reach $1.8 billion by 2026, a study by Ericsson showed.
Ericsson Philippines, the local arm of the Swedish mobile telco equipment maker, released details of Ericsson’s 5G Business Potential report in a press event on Wednesday, Aug. 8, as part of the company’s 30th anniversary celebration.
“For the Philippines, in 2026, there will be an anticipated USD 1.8 billion revenue opportunity for telecom operators addressing industry digitalization with 5G technology. The largest opportunity for operator-addressable 5G-related revenues will be in the manufacturing and energy and utilities sectors,” Ericsson said in the report.
In the press event, Ericsson showcased different industry applications of 5G technology. It also used a 5G trial system to demonstrate the technology’s data speed of up to 23 gigabits per second.
“5G will open up new revenue streams for operators as they go beyond being connectivity and infrastructure providers to become service enablers and service creators,” Nunzio Mirtillo, Ericsson’s head of Market Area in South East Asia, Oceania and India, said in a statement.
As the next generation of mobile connectivity, 5G promises blazing fast internet speeds, lower latency (i.e. significantly less or no video playback buffering) and better capacity. Based on the IMT-2020 standard set by the International Telecommunication Union (ITU) — the United Nations’ specialized agency for ICT — 5G has a theoretical peak download capacity of 20 gigabits.
Both the country’s telco giants Smart and Globe have announced the roll out of their respective 5G networks. Smart targets to have 5G-ready network by 2020 while Globe said it will deploy 5G next year.
Ericsson said its 5G platform will address the country’s growing data traffic and will enable easier access to multimedia content, such as 4K/8K video streaming and virtual reality/augmented reality. It added that 5G offers ten times lower cost per gigabyte than current 4G networks.
“Ericsson has been a key part of the telecom ecosystem in the Philippines for thirty years, bringing voice and data services to millions of customers in the country. We are the first to market with solutions that enable today’s networks to evolve smoothly to the next generation of technologies. 4G is the foundation of 5G, and Ericsson is well poised to help the operators in the Philippines to transition seamlessly from 4G to 5G,” said Mr. Mirtillo.

Ericsson’s 5G platform comprises the 5G core, radio and transport portfolios, together with digital support systems, transformation services and security. Ericsson has recently expanded its 5G Core System offering with new capabilities to support 5G NR (New Radio) and also enhanced its Distributed Cloud solution. — V. M. Villegas

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