LG ELECTRONICS Inc., which has been integrating artificial-intelligence (AI) functions into its home appliances and smartphones, is launching its first Canadian AI lab, the latest company seeking talent in the country’s burgeoning tech industry.
The Seoul-based company, part of the LG Corp. conglomerate, plans to open a research lab this fall in central Toronto, Chief Technology Officer I.P. Park said in a phone interview. The venture will employ “several dozen” people and includes a five-year, multimillion-dollar partnership with the University of Toronto. Park declined to be more precise about how much LG is investing.
Toronto’s tech scene is on a tear. LG competitor Samsung Electronics Co. is one of the newcomers, announcing in May it will open its own AI lab in the city, and the country’s largest tech incubator, MaRS Discovery District, plans to open a second Toronto location due to high demand for office space. A recent study said Canada’s largest city created more tech jobs last year than the San Francisco Bay area, Seattle and Washington combined.
Park said that while LG also considered Montreal for its Canadian location, it ultimately chose Toronto because it’s “pioneering in the area of deep learning.” The Toronto lab will be dedicated to fundamental AI research, Park said, and act as an extension of its Silicon Valley AI lab in Santa Clara, California, which focuses on application-driven projects.
University of Toronto Vice President of Research and Innovation Vivek Goel said corporate AI labs like this provide Canadian talent with opportunities to work on projects that are not just research driven but have a commercial focus.
“With companies like LG coming in, we have the opportunity to take that fundamental research that we’re so well-known for and give students and trainees opportunities to work with LG scientists and product developers,” Goel said. “If they develop their own startups and ideas in the future, they’ll be able to help build Canadian companies that can scale globally.” — Bloomberg
THE BOARD of Investments (BoI) has approved the application of the Ayala Group’s P1.7 billion Seda Lio Resort as the first inclusive business model (IB) project.
Constructed and operated by Econorth Resort Ventures, Inc. (ERVI), a subsidiary of the Ayala Land Hotel and Resorts Corp. (AHRC), the 153-guest-room resort is situated in the 325-hectare Lio Tourism Estate in El Nido, Palawan.
The estate is owned by AHRC’s parent company Ayala Land, Inc. and managed by Ten Knots Development Corp., also an ALI subsidiary.
“This development is a boost to Palawan not only as one of the country’s top tourist destinations but also as being at the forefront of promoting a healthier environment and having an inclusive business model wherein the community is engaged in a sustainable manner,” Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo said in a Wednesday statement.
IB projects aim at sourcing members of the low-income community to the company’s operations, ensuring that their contributions make an impact on the company’s financial performance. This is achieved through directly employing them and sourcing their produced goods and services to integrate into the value chain.
A project approved as an IB model is exempted from paying income tax holiday for a total of five years.
The criteria for IB models call for at least 25% of total costs of services to derive from the micro and small enterprises (MSE) and at least 25 direct jobs to be generated for individuals from the marginalized sector. Of this allocated job portion, 30% must comprise of women.
Income for those employed should reach minimum wage or a baseline income plus 20% increase, whichever is higher.
IB firms are also obliged to provide technical assistance and capacity-building to MSEs, and/or facilitate access to finance.
The Econorth projects total costs of about P243.8 million a year, with services sourced from MSMEs to reach around P60 million by the third year of operations.
The company has also committed to support staff development by holding courses on managing local suppliers, tax and proper documentation, environmental and educational course, among others.
The company says the project is an opportunity for shared value creation between Seda Lio and the engaged communities by tapping the potential of the locals as a young and trainable work force in the thriving tourism industry of the province.
The resort is slated to begin operations within this quarter. It is part of ALI’s plan to spend around P11 billion through 2022 to develop the Lio tourism estate in several phases. — J.C. Lim
CHINA BANKING Corp. (China Bank) saw its net profit unchanged in the first half of the year even as recurring income grew amid lower fee-based revenues.
In a statement on Wednesday, the Sy-led lender said it booked a net income of P3.6 billion in the January-June period, unchanged from the same period last year.
The bank’s recurring income came in at P13.3 billion, 15% higher year-on-year due to “sustained growth” in core businesses.
Total operating income stood at P13.1 billion, up 7% from the comparable year-ago period.
China Bank’s loans grew to P469.4 billion as of end-June, up 18% from the same period in 2017, on the back of strong demand across all segments, with its consumer lending business growing 21%.
The bank’s net interest margin improved to 3.16% from the previous 3.07% as improving loan yields offset the rise in funding costs, it said.
Meanwhile, its non-preforming loans (NPL) dropped 4% or by P314 million, which led to an improved NPL ratio of 1.5%.
“Tighter loan monitoring and remedial efforts enabled the bank to maintain asset quality amid loan expansion,” China Bank said.
NPL coverage improved to 107% at the consolidated level from 93% in the previous year.
On the other hand, deposits climbed 18% to P653.4 billion on the back of a 32% increase in low cost funds to P374.6 billion.
Its loans-to-deposit ratio remained healthy at 72%.
Meanwhile, China Bank’s fee-based revenues declined 32% to P2.1 billion in the first semester as it reduced its reliance on securities trading.
Overall, the lender’s total assets expanded 17% to P768.4 billion.
Total capital funds climbed 4% to P83.6 billion at end-June. China Bank’s capital adequacy ratio stood at 13.3%, while its common equity Tier 1 ratio was at 12.6%, well above the minimum regulatory requirements.
Last month, China Bank raised P10.25 billion from the first tranche of its P20-billion long-term negotiable certificates of deposit program.
Proceeds from the fund raising activity will be used to support the bank’s expansion program and other initiatives.
China Bank shares went down 15 centavos or 0.45% to close at P33 apiece on Wednesday. — K.A.N. Vidal
MARCO POLO’s Mooncakes
MARCO POLO Ortigas Manila has launched its annual Mid-Autumn Festival offerings with Celestial Treasures, and this year’s featured mooncakes symbolize luck, prosperity, and honor. The Plum Blossom (set of four pieces) and Peony (half-dozen set) gift boxes are available at P2,588 and P3,588 respectively. Guests receive a 15% discount on orders received before Aug. 15. Meanwhile, as part of the hotel’s ongoing 4th anniversary celebration, foodies can feast on the flavors of the world with all-day dining destination Cucina for the discounted rate of P1,399 which applies to both the lunch and dinner buffet spread. Marco Polo Ortigas Manila is making the move towards becoming plastic straw-free — it now offers bamboo straws as an alternative to single-used plastic ones to reduce unnecessary waste. The hotel is working with socio-civic organization Bambuhay, which provides livelihood to communities in Central Luzon, to ensure all its restaurants and bars are without plastic straws. For details visit www.marcopolohotels.com
The Pen and Toyo Eatery
THE PENINSULA Manila and Toyo Eatery join forces for a months-long one-of-a-kind hotel staycation and dining experience called The Salu-salo Series Room Package. Each guest chef will partner with chef Jordy Navarra at his restaurant Toyo Eatery in Karrivin Plaza, Pasong Tamo Ext. in Makati City to create special, multi-course dinner menus two days each month, culminating on Nov. 14 at The Peninsula Manila’s Old Manila restaurant where Mr. Navarra teams up with Chef de Cuisine Allan Briones in a four-hands dinner. The dinners are: Nouri, Singapore with chef Ivan Brehm, four-hands dinner on Aug. 8 and 9; Restaurant Suhring, Bangkok with chefs Thomas and Mathias Sühring(No. 4, Asia’s 50 Best Restaurants), six-hands dinner on Aug. 16 and 17; Meme, Taipe with chef Richie Lin (No. 18, Asia’s 50 Best Restaurants; One-star Michelin Guide Taipei 2018), four-hands dinner on Sept. 26 and 27; JL Studio, Taichung, Taiwan with chef Jimmy Lim and Restaurant Labyrinth, Singapore with chef L.G. Han, six-hands dinner, October; Toyo Eatery, Manila with chef Jordy Navarra (Miele One To Watch Award — Asia 2018, Asia’s 50 Best Restaurants), four-hands dinner, Nov. 14. The package includes guaranteed seating for one person at a Salu-salo dinner in Toyo Eatery or Old Manila, on the night of the reservation and one welcome drink (additional fee of P5,000 per additional guest); accommodation in a Deluxe Room, Grand Deluxe Room, Club Deluxe Room, or a Premier Suite; a photograph with the featured chef on the night of the dinner; breakfast buffet for two adults in Escolta. Room rates start at P15,000 for a Deluxe Room. Valid for bookings on the following dates: Aug. 8 to 9; Aug. 16 to 17; Sept. 26 to 27; Oct. 6 to 7; and Nov. 14. Salu-salo Series Dinner seatings are at 6 p.m. or 8 p.m. only. For inquiries or reservations, call 887-2888, extensions 6630 (Room Reservations) or e-mail reservationpmn@peninsula.com.
Sisig with a twist
ROMULO CAFÉ’s Chicken Inasal Sisig
ROMULO CAFÉ reinvents a classic Pinoy dish, sisig, with its Chicken Inasal Sisig which uses Chicken Inasal strips instead of traditional pork meat mixed with spices and chicken skin chicharon on top. The dish is now available in all Romulo Café local branches: Scout Tuazon, Tomas Morato, Quezon City; Jupiter St., Makati; and Azumi Hotel in Ayala Alabang.
New dishes at Starbucks
STARBUCKS’s Bretzel
STARBUCKS stores now offer new items from around the world. These include its take of the German pretzel, the Bretzel, which is topped with parmesan cheese and sea salt; a Ham and Cheese Toastie modelled after the French Croque Monsieur; a French Apple Tart; Chocolate Éclair and Chocolate Truffle Cake; Vietnamese Banh Mi, a wholesome sandwich layered with grilled chicken, ham and a rich smear of paté and a smattering of crunchy pickled vegetables on crusty Sriracha bread; and Chinese Char Siu Pork Baked Bao. Visit www.starbucks.ph to learn more.
Pancake House chicken
FOR FOUR decades, Pancake House has been serving tried and tested recipes. Recognizing Filipinos’ whopping appetite for chicken, it offers six affordable Classic Pan Chicken Solo Plates for as low as P185. Pancake House’s Classic Pan Chicken dishes are available until Aug. 31. The six combos are as follows: Pan Chicken with spaghetti, garlic bread and iced tea; Pan Chicken with taco, rice and iced tea; Pan Chicken with Golden Brown waffle and iced tea; two pieces of Pan Chicken with classic pancakes and iced tea; Pan Chicken with French fries, rice and iced tea; and, Pan Chicken with mashed potato, rice and iced tea. Visit www.pancakehouse.com.ph/ for details.
Japanese recipe book
IN JULY, a group of Japanese volunteers launched 10 Recipes to Stay Healthy, a recipe book on healthy food inspired by Japanese home cooking, to help address Filipino nutritional needs. The launch coincided with the Philippine government’s celebration of Nutrition Month in July. Japanese volunteer Ayaka Takagi under the Japan Overseas Cooperation Volunteers Program (JOCV) of the Japan International Cooperation Agency (JICA) together with former Japanese volunteers Yui Uneme and Momoe Nishizaki spearheaded the recipe book project along with seven other Japanese volunteers in the Philippines. “The recipe book is our contribution to the efforts of the Philippine government to encourage parents and children to improve the nutrition status of more Filipinos so they may live healthier and productive lives,” said Ms. Takagi, who was dispatched to the Office of the Provincial Agriculturist in Tagbilaran, Bohol. The recipe book introduced the health departments “10 Kumainments” — a set of nutritional guidelines for Filipinos — in the book to raise awareness on balanced diet and healthy living. The volunteers also showed how to use readily available local ingredients to come up with Japanese home cooking-inspired recipes. They also explained how to measure ingredients as some Filipino households do not have measuring implements. The book features recipes for okonomiyaki (pan-fried vegetable), oyako-don (chicken and egg bowl), udon (Japanese noodle), kaki-age (fried mix vegetable), and sweet squash. Copies of the book have been distributed to families, students, teachers, farmers, health centers, and government offices in the Philippines where the JOCVs are dispatched, including communities in Bohol, Samar, and Panay.
Oreo Thins newest flavor
OREO THINS entered the Philippines in 2017 with the classic vanilla and tiramisu flavors. This year the Oreo Thins launches its newest flavor in the Philippines: Lemon Cheesecake. OREO Thins Lemon Cheesecake, Vanilla and Tiramisu are available in all stores nationwide at P41.50 per box.
By Carmelito Q. Francisco Correspondent
DAVAO CITY — The approved P56 increase in Davao Region’s minimum daily wage will come in two tranches, with the first installment of P30 taking effect on Aug. 16.
The second tranche of P26 takes effect on Feb. 16, 2019.
The Regional Tripartite Wages and Productivity Board (RTWPB) released on Aug. 1 Wage Order Number 20, which was approved on July 27.
The wage board “has determined the need to restore lost purchasing power of minimum wage earners in Davao Region for them to cope with the rising cost of living without impairing the productivity and viability of business and industries,” the order states.
Davao City Chamber of Commerce and Industry, Inc. President Arturo M. Milan, however, said the increase will hurt micro and small enterprises that make up a majority of businesses in the region.
“I’m scared for the micro and small businesses which comprise about 95% of the total businesses in Davao. They will not only contend with the P56 per day increase or 16% increase in minimum wage but also the 10% increase in local business tax plus the impact of TRAIN (Tax Reform for Acceleration and Inclusion) on their businesses,” Mr. Milan said in a text message.
“I really hope this will not result in retrenchment just for businesses to survive,” he added.
Under the new wage order, companies in the non-agriculture sector, or commercial, industrial, retail, and service businesses with more than 10 workers, will pay a P370 daily minimum salary by Aug. 16 and P396 by Feb. 16, while those with up to 10 employees will have a rate of P355 then P381.
Those in the agricultural sector, on the other hand, will receive P365, then P391.
Last month, the Pilipino Banana Growers and Exporters Association, Inc. (PBGEA) warned that the new wage order will inflict another blow on the industry.
PBGEA Executive Director Stephen A. Antig said the P56 increase was not “well thought out,” noting that the banana industry has been reeling from the impact of the TRAIN law and “market and production problems.”
By Vann Marlo M. Villegas
SECOND-QUARTER inflation, as reflected in goods and services widely used by low-income households, rose to 6.5%, its highest level in almost four years, led by utilities and staple food items, according to the Philippine Statistics Authority (PSA).
The inflation rate for the consumer basket configured for items likely to be purchased by the bottom 30% income category accelerated from 5.3% in the first quarter and 2.7% a year earlier. The second-quarter reading was the highest since the 6.8% posted in the third quarter of 2014.
For all households, the PSA is scheduled to report July inflation data on Aug. 7.
The Consumer Price Index (CPI) for the bottom 30% income segment reflects a heavier weighting for food, beverages and tobacco (FBT), to more accurately capture the spending patterns of the poor.
The PSA noted that all prices in those commodity groups rose at a faster rate in the second quarter.
“Annual inflation picked up in the second quarter primarily because of rising fuel costs and higher taxes on some products such as sugar-sweetened beverages and cigarettes,” said Guian Angelo S. Dumalagan, market economist at the Land Bank of the Philippines (LANDBANK).
“Weather disturbances and a weaker peso also played a role in pushing inflation higher,” he added.
Mr. Dumalagan was referring to the inflationary effects brought by the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which slashed personal income tax rates but also introduced additional levies on consumer goods such as fuel, cars and sugar-sweetened drinks.
Security Bank Corp. economist Angelo B. Taningco added: “The CPI inflation for the bottom 30% spiked in second quarter because of sharper price increases in food and tobacco as well as fuel, light, and water.”
“Food supply disruptions, higher excise taxes on tobacco, rising global oil prices, and peso depreciation have all contributed to the Q2 inflation for the bottom 30%,” he added.
For the quarter, the fuel, light, and water index led the charge as inflation in this segment was 8.7%, against the 6.1% recorded in the first quarter and 4.8% a year earlier.
The FBT index rose 7.1% in the second quarter compared to 5.9% in the first quarter and 2.8% in the second quarter of 2017.
The index for food only accelerated to 6.2% from 5.3% in the first quarter and 2.7% a year earlier.
The PSA noted a 10.8% gain in corn prices during the period compared with the 8.5% year-on-year increase in the first quarter. Higher annual mark-ups were also recorded in fruits and vegetables (7.5% from 6.5%), cereals (6.0% from 4.1%), rice (4.9% from 3.1%), cereal preparations (2.3% from 2.1%), dairy products (2.1% from 1.6%), and “miscellaneous foods” (2% from 0.6%).
On the other hand, price growth slowed though inflation remained high in meat (6.4% from 7.3%) and fish (11.1% from 11.5%). Price growth in eggs, meanwhile, remained steady at 2.1%.
Inflation for the bottom 30% segment in the National Capital Region (NCR) was 6.6%, accelerating from the 5.9% posted in the first quarter. Those outside the NCR saw a price pickup of 6.5% from 5.3% in the previous quarter.
On a quarter-on-quarter basis, inflation for the bottom 30% slowed to 1.4% from 2.8% in the first quarter, with the PSA noting that all commodity groups recorded slower quarterly increases during the period except for services and miscellaneous goods.
“This reflects the easing impact of the TRAIN law. In particular, price adjustments were much less in the second quarter as majority of the planned price hikes were already implemented in the prior quarter,” said LANDBANK’s Mr. Dumalagan.
Still, the economist expects “a higher level of inflation” in the third quarter due to rising fuel prices, “elevated” food costs, and a depreciating peso.
“Inflation might peak in July or August,” Mr. Dumalagan said.
Security Bank’s Mr. Taningco added: “I continue to expect inflation for the bottom 30% to remain elevated in the third quarter given adverse weather conditions, food supply disruptions, peso depreciation, high oil prices, and hikes in minimum wages and transport fares.”
THE GOVERNMENT said it has relaxed the eligibility rules for companies seeking to participate in the auction for the operations and management (O&M) contract of the Clark International Airport.
The bidding qualifications released in May required prospective bidders to not have “a majority equity interest in a concession holder of an International Airport in the Philippines,” which would have eliminated a major construction company that runs the airport in Cebu as part of a consortium.
Bases Conversion and Development Authority (BCDA) President Vivencio B. Dizon said in a briefing on Wednesday that the eligibility terms have since been relaxed, which opens the door to companies such as Megawide Construction Corp., which operates the Mactan-Cebu International Airport.
“That was in the original terms of reference, but we have already adjusted that. And Megawide, if it wants to, can join the bid. They are not disqualified,” he said.
Mr. Dizon said the new terms of reference now rule out companies currently operating such airports within the same main island group.
“So meaning, if you’re operating an airport in Luzon, then you cannot have another major airport in the same island group. Obviously Cebu is not part of Luzon where Clark is, so Megawide can participate,” he added.
The Department of Transportation (DoTr) and BCDA are currently bidding out the 25-year, P5.61-billion contract for the O&M of the Clark International Airport. The development of the gateway in Pampanga aims to decongest the Ninoy Aquino International Airport (NAIA) in Metro Manila.
Megawide, along with its Indian consortium partner GMR Infrastructure Ltd. won the engineering, procurement and construction (EPC) contract for the Clark airport in December 2017. The hybrid public-private partnership structure being tested for the Clark airport separates the contracts for EPC and O&M.
BCDA said in May that eight companies bought bid documents for the O&M contract — Megawide-GMR; Metro Pacific Investments Corp.; Filinvest Development Corp.; San Miguel Holdings Corp.; Prime Asset Ventures, Inc.; the Central Luzon Infrastructure Consultancy, Inc. consortium; GVK Airport Developers Ltd.; and Groupe ADP.
Around 30 groups also attended the pre-bid conference for the project held on May 21, including Udenna Corp.; JG Summit Holdings, Inc.; Aboitiz InfraCapital, Inc.; PAL Express and AirAsia Group.
The preliminary timeline for the project indicates a target for contract awarding and signing on Aug. 30, but Mr. Dizon said on Wednesday the BCDA will accept bids until late August.
“Government will just accept whatever bids are finally submitted by the deadline (in late August),” he said.
The O&M concession is due to start on Dec. 1 for the current passenger terminal. The new terminal is scheduled to open in July 2020. — Denise A. Valdez
TRANSPORTATION Secretary Arthur P. Tugade said the government’s aggressive infrastructure program will create 1.8 million jobs a year, both directly and indirectly through related industries and suppliers.
In a briefing at Malacañang, Mr. Tugade of the Department of Transportation (DoTr) said that the extent of the job creation was due partly to critical projects being run in multiple shifts.
“The economic cluster is assuming that for projects to be completed within the term of the President, we can’t be doing one shift a day,” he added.
“We need 24-hour work in three shifts of eight hours each. In other words, if you have a project that needs masonry, you’ll need three masons, not one.”
Mr. Tugade also cited the employment to be created from the operation of trains and related service jobs, which the Department of Labor and Employment estimates at 1.8 million, which is sustained by the National Economic and Development Auhority (NEDA).
Labor Secretary Silvestre H. Bello III, also speaking at the briefing, also noted that “other businesses will grow as a consequence of these projects. So the impact is large. In some cases, as Secretary Tugade noted, it’s times three. It could be as high as times five” because of the job generation in business establishments that will operate in the buildings put up.
Mr. Bello also announced that the Department of Labor and Employment (DoLE) will seek to sustain the momentum in the creation of quality jobs.
“In order for us to sustain the growth momentum of the generation of not just jobs but decent jobs, we have put in place a number of interventions targeted at poor workers engaged in precarious and vulnerable work,” Mr. Bello said.
He estimated that in April, employment in construction was “4.012 million from 3.544 million during the same period in 2017. This is a 13.2% increase.” — Gillian M. Cortez
THE HOUSE of Representatives was working on the approval on second reading of a bill seeking to impose tariffs on rice imports, a scheme which has been estimated to cut retail prices by up to P7 per kilo.
As of early evening Wednesday, the House was debating provisions of House Bill 7735, the “Revised Agricultural Tarrification Act,” which is among the priority bills identified by the Legislative-Executive Development Advisory Council.
Its counterpart measure, Senate Bill 1839, authored by Senator Sherwin T. Gatchalian, is pending at the committee level.
If passed, the proposed measure will replace the current system for importing rice via government procurement. The new import arrangements will be opened up to private parties, while inbound shipments will be subject to tariffs, to protect local farmers and also to raise funds to improve their productivity and competitiveness.
The bill provides for the creation of the “Rice Competitiveness Enhancement Fund,” financed from the duties collected.
The tariffs will also finance an endowment fund for credit subsidies and crop financing, among others. — Camille A. Aguinaldo
THE DEPARTMENT of Budget and Management (DBM) will eliminate government jobs that have remained chronically unfilled and warned agencies to fill any such vacancies by year’s end.
Budget Secretary Benjamin E. Diokno said on Wednesday that the job vacancies across the entire government amount to 264,000 positions, and called on the public to take up more jobs in public service.
“The DBM will be issuing a circular directing all agencies to fill all authorized positions available to them or risk abolition of positions left unfilled after five years from creation,” Mr. Diokno said in a media briefing yesterday.
He said that the circular will come “soon,” and an evaluation of which jobs will survive will happen “by the end of September.” Mr. Diokno also noted that the order to abolish positions left unfilled in the last five years will come “before the end of the year.”
As of July 30, Mr. Diokno said that about 125,000, or 47.4% of the vacancies are teaching-related positions.
Mr. Diokno noted that public school teachers’ salaries are about double that of their private sector counterparts.
There are also about 90,000 jobs in the general civil service, about 34,000 in the uniformed services, and 14,000 in medical and allied health care jobs.
“We cannot deliver our programs and services as efficiently and effectively as possible without our civil servants there doing the work. This vacuum is unacceptable,” Mr. Diokno said.
“We want qualified individuals to apply and help contribute to a better functioning bureaucracy. — Elijah Joseph C. Tubayan
