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Infrastructure spending improves

Men are at work on a segment of Commonwealth Avenue in Quezon City, July 13, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Beatriz Marie D. Cruz, Reporter

THE NATIONAL Government’s (NG) spending on infrastructure jumped by 17% in June as it increased disbursements for completed public works projects, the Department of Budget and Management (DBM) said.

In its latest report, the DBM said infrastructure and other capital outlays rose by 17% to P139.7 billion in June from P119.4 billion in the same month a year ago.

Month on month, infrastructure spending inched up by 2.45% from P136.4 billion in May.

The uptick in June infrastructure spending was attributed to “disbursements made by the DPWH (Department of Public Works and Highways) for completed road, bridge and multi-purpose building projects, prior years of right-of-way claims, and progress billings for other road infrastructure projects funded under the Unprogrammed Appropriations,” the DBM said.

The NG also spent on capital outlay projects under the Department of National Defense’s Revised Armed Forces of the Philippines Modernization Program.

In June, infrastructure spending included locally funded projects under the Office of the Presidential Adviser on the Peace, Reconciliation and Unity’s PAyapa at MAsaganang PamayaNAn (PAMANA) Program such as road networks, flood control, and water supply systems, among others.

The government also spent on the construction, repair and rehabilitation of justice halls nationwide.

Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said the uptick in infrastructure spending in June was reflected in the faster second-quarter economic growth.

“The government pushed to spend and supported domestic demand weakness in the second quarter amid the El Niño impact and elevated interest rates,” he said in a Viber message.

Preliminary data released by the Philippine Statistics Authority (PSA) showed gross domestic product (GDP) expanded by an annual 6.3% in the April-to-June period, quicker than the revised 5.8% growth in the first quarter and 4.3% in the second quarter of 2023.

PSA data also showed government spending rose by 10.7% in the second quarter, a reversal of the 7.1% contraction a year earlier.

“Preparations for the midterm elections may have also increased the urgency to expedite the rollout and completion of more infrastructure projects before the election ban by early 2025, and to show more accomplishments/results that may be felt by the electorate,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Facebook Messenger chat.

FIRST HALF
For the first half, infrastructure and other capital outlays increased by 20.6% to P611.8 billion from P507.2 billion a year ago.

This exceeded the P545.3-billion program for the period by 12.2% “as a result of the efforts of the DPWH to speed up the completion of its ongoing projects and expedite the processing of payment claims both from prior year’s obligations and the current year’s budget,” the DBM said.

The DBM also said there were direct payments made for foreign-assisted road and rail transport projects under the Public Works and Transporation departments in the first half.

“As early as January, we already provided them (implementing agencies) their allotments and most of the DPWH projects were already undergoing early procurement… By January, they already implemented most of the projects,” Budget Secretary Amenah F. Pangandaman told a briefing on Wednesday.

Overall infrastructure disbursements, which also accounted for the infrastructure components of transfers to local government units (LGUs), and subsidy and equity to government-owned and -controlled corporations, rose by 18.4% to P720.5 billion as of end-June from P608.6 billion last year.

This exceeded the government’s P671.3-billion program for the period by 7.33%, data showed. It was also equivalent to 5.7% of gross domestic product (GDP).

“Infrastructure spending and MOOE (maintenance and other operating expenses) will continue to drive disbursements for the remaining months of the year, with 56.1% and nearly 52% of their full-year program, respectively, expected this second semester,” the DBM said.

For infrastructure spending, the DBM said this includes payments for ongoing construction works.

“The said expenditures will hopefully help buttress strong economic growth by creating demand in the construction sector or supporting other related services industries, while also facilitating the recovery of the agriculture sector,” the department said.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said he expects infrastructure spending to further increase this year.

“Infrastructure agencies should try their best to improve their absorptive capacities for this year’s projects, particularly as 2025 is an election year in which the law mandates a suspension of project implementation for a specific period of time,” he said in a Viber chat.

Mr. Asuncion said the government should focus spending on infrastructure, flood control and energy generation projects.

“The challenge is that it would take time to put new projects up and going,” he said.

The government aims to spend 5-6% of GDP annually for infrastructure through 2028.

Loan growth to pick up in 2025

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LOAN GROWTH is seen to improve next year as the Philippine central bank is expected to further cut policy rates, S&P Global Ratings said.

“We think that the loan growth will start to pick up, but at a very slow rate,” S&P Global Director and Lead Analyst Ivan Tan said in a webinar on Wednesday.

“We think that most of the loan growth pick-up is going to come in 2025. That’s when we are forecasting the policy rate will be cut to 5% by next year.”

The Monetary Board last week lowered the target reverse repurchase (RRP) rate by 25 basis points (bps) to 6.25% from 6.5%, which was the highest rate in over 17 years.

BSP Governor Eli M. Remolona, Jr. earlier signaled the possibility of another 25-bp cut in either October or December.

Mr. Tan said the recent rate cut by the BSP is unlikely to have any immediate impact on loan growth.

“The Philippines is usually a country where the policy rate is 3%, give or take… So even with this 25-bp rate cut, a 6.25% policy rate versus what I would consider a normalized 3% rate is still quite high,” he said.

The country’s loan growth in the pre-pandemic period had averaged 10% to 12% annually, Mr. Tan said.

“In 2023, it only grew about 7% to 8%. By the Philippines’ standard, it’s very low. It’s very low because the policy rate in the Philippines was very, very high,” he added.

The central bank has raised borrowing costs by a cumulative 450 bps from May 2022 to October 2023 to tame inflation.

The latest data from the BSP showed that bank lending rose by 10.1% year on year to P12.09 trillion in June.

The bank lending growth in June was unchanged from May, which was the fastest pace since the 10.2% recorded in March 2023.

Mr. Tan also noted that loan growth patterns are likely to change.

“We have been observing a risk-on behavior where the Philippine banks are maintaining the large corporate loans, but growing almost twice as fast in the higher-using and higher-risk consumer segment,” he said.

“Just to note, the Philippine nonperforming loan (NPL) [ratio] is at about 3%. Consumer NPL, the delinquency rate is twice as high,” he added.

The banking industry’s NPL ratio eased to 3.51% in June from 3.57% in May. The bad loan ratio in May was the highest in nearly two years.

“We are watching that very closely because there’s kind of a risk-on behavior. Philippine banks are growing consumer loans faster to improve the yield, for yield enhancement purposes, but they are taking on incremental risk in the process also,” he added. — Luisa Maria Jacinta C. Jocson

Lower airfares likely as CAB cuts fuel surcharge

AN AIRPLANE is seen landing at Ninoy Aquino International Airport, March 7, 2024. — PHILIPPINE STAR/RUSSELL PALMA

By Ashley Erika O. Jose, Reporter 

LOCAL AIRLINES anticipate an increase in passenger volume, following the reduction of fuel surcharges on airfares in September.

In an advisory on Wednesday, the Civil Aeronautics Board (CAB) downgraded fuel surcharge, which is added to the base fare, to Level 5 for Sept. 1-30 from Level 6 in August.

“Airlines wishing to impose or collect fuel surcharge for the same period must file their application with this office on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” CAB Executive Director Carmelo L. Arcilla said in an advisory.

At Level 5, the fuel surcharge for domestic flights ranges from P151 to P542.

For international flights, the fuel surcharge varies from P498 to P3,703.

A fuel surcharge may be collected by airlines based on movements in jet fuel prices, using a benchmark known as MOPS (Mean of Platts Singapore). CAB said the applicable conversion rate for September is P58.29 to a dollar. 

In August, the fuel surcharge was at Level 6. For domestic flights, it ranged from P185 to P665, while the surcharge for international flights ranged from P610 to P4,538.

Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said the CAB’s decision to lower the fuel surcharge is “a positive development that supports our efforts to offer more affordable travel options.”

“We look forward to carrying more passengers as we continue to boost connectivity across all our hubs,” he said in a Viber message on Wednesday.   

For the second quarter alone, Cebu Pacific said it carried a total of six million passengers. The budget carrier’s highest passenger count in a single quarter, the company said.

AirAsia Philippines Communications and Public Affairs Head Steve F. Dailisan said the lower fuel surcharge for September will heavily influence air travelers’ booking decisions.

With the implementation of lower surcharge, domestic passengers will see a reduction of P542 and P800 for international passengers, Mr. Dailisan said.

“Filipinos are always on the lookout for discounts. Any budget saved from airfares can be used as an additional budget for hotels, restaurants, activities, or souvenirs,” he said in a Viber message.

The low-cost carrier has flown more than five million passengers to date, AirAsia Philippines said, adding that with the current trend the airline is expecting to end the year with eight million passenger numbers.

In an earlier statement, Philippine Airlines President and Chief Operating Officer Stanley K. Ng said the company is on track to see a 20% rise in passenger numbers across its network by yearend.

According to PAL Holdings, Inc., the operator of Philippine Airlines, the company saw its passenger volume increase by 13% or a total of 7.9 million passengers in the first semester.

Data from CAB showed that air passenger volume increased by 25.6% to 29.52 million in the first semester from 23.5 million a year ago. Of this, 15.77 million were domestic passengers, while 13.75 were international passengers.

Meanwhile, the International Air Transport Association (IATA), a trade association of the world’s airlines, said crude oil prices will remain volatile for the rest of the year.

According to IATA’s jet fuel price monitor, jet fuel prices rose by 2.9% week on week to $95.91 per barrel as of Aug. 16. Year on year, jet fuel prices declined by an average of 14.6%.

Rodela I. Romero, assistant director of the Energy department’s Oil Industry Management Bureau, said in a Viber message that prices of kerosene, which is the base of jet fuel, are estimated to increase in the next three months.

MOPS, which is used as a benchmark of the country’s local oil industry, will continue to be influenced by geopolitical conflicts and the production cuts by Organization of the Petroleum Exporting Countries and its allies (OPEC+).

Philippines to continue participating in IMF lending operations

THE PHILIPPINES has maintained its net creditor position and will continue to participate in the International Monetary Fund’s (IMF) lending operations until early next year, the Bangko Sentral ng Pilipinas (BSP) said.

In a statement on Wednesday, the BSP said that the Monetary Board approved the continued participation of the Philippines in the IMF’s Financial Transactions Plan (FTP).

This would allow the country to participate in the FTP from August this year to January 2025.

“This means that the country has maintained its net creditor position in the IMF which underscores the country’s sound macroeconomic fundamentals,” the BSP said.

The FTP is the mechanism through which the IMF finances its lending and repayment operations, according to the multilateral institution. The Philippines first qualified for participation in the FTP in 2010.

“The FTP is a currency exchange arrangement between the IMF and eligible members to facilitate the IMF’s lending operations with other member countries. The IMF pays interest, called remuneration, to the FTP participants like the Philippines,” the BSP said.

In order to qualify for membership, the IMF assesses a country’s balance of payments (BoP), reserve position and market stability, among other indicators.

It also considers the “adequacy of a country’s international reserve assets to ensure that the participating country will fulfill its obligations during the specified FTP period.”

“The Philippines’ strong external position supports the country’s development goals which will be beneficial to the Filipino public,” the BSP said.

The latest data from the BSP showed that the country’s BoP position swung to a $62-million surplus in July from the $53-million deficit a year ago. In the January-to-July period, the BoP position registered a $1.504-billion surplus.

At its end-July position, the BoP reflected a final gross international reserve (GIR) level of $106.7 billion, higher than $105.2 billion as of end-June.

This year, the BSP expects the country’s BoP position to end at a $1.6-billion surplus, equivalent to 0.3% of GDP.

“Given that the country’s external position remains strong, with ample gross international reserves to withstand external shocks, the country has been assessed to be eligible for continued participation in the FTP,” the central bank said.

“This puts the Philippines in a favorable position to remain as a Fund financial partner, which is an indication of the country’s commitment to contribute to the global financial safety nets and support the resolution of possible crises.”

The latest data from the BSP showed that net international reserves inched up by 0.4% to $105.62 billion as of end-July from $105.16 billion the month prior.

Net international reserves are the difference between the BSP’s reserve assets or GIR and reserve liabilities, such as short-term foreign debt and credit and loans from the IMF.

The country’s reserve position in the IMF slid by 2.8% to $719.9 million as of end-July from $740.4 million as of end-June.

Special drawing rights (SDR), or the amount the country can tap from the IMF, was unchanged at $3.75 billion.

The Philippines through the BSP, has been contributing to the IMF’s fundraising initiatives to support its quota resources.

In July last year, the central bank approved a one-year extension of the Note Purchase Agreement (NPA) with the IMF. The BSP has a maximum commitment amount of $431 million under the NPA.

The Philippine central bank has also contributed $5 million and $4 million, respectively, to the IMF’s Poverty Reduction and Growth Trust (PRGT) and Catastrophe Containment and Relief Trust (CCRT).

The PRGT is a facility that supports low-income countries while the CCRT provides grants to low-income countries struck by natural disasters.

In December 2023, the BSP and Finance department also secured special authority to increase the Philippines’ quota in the IMF. The quota was hiked to 3.1 billion in SDRs from 2 billion in SDRs.

Member countries are allocated SDRs, which is the fund’s unit of exchange backed by dollars, euros, yen, sterling and yuan, in proportion to their quota shares in the multilateral institution, according to the IMF.

Under the IMF’s New Arrangements to Borrow, the BSP also earlier said it stands ready to provide loan resources with a maximum commitment amount of 680 million in SDRs, equivalent to $912 million. — Luisa Maria Jacinta C. Jocson

Going way beyond movie popcorn

TATERS’ first branch

In its 30 years, Taters has expanded locations and product lines

THE MOVIES may have always been the highlight, but movie snacks have always been a great part of going out. And one of the best-known movie snacks out there, Taters, turned 30 this year.

The event was celebrated with a day of games at the SM Mall of Asia Gamepark on Aug. 20. The company’s offerings — including hotdogs, burgers, popcorn, and fries — were overflowing that day, while influencers and guests shot some hoops or won at the pool tables.

“The idea came from an opportunity that arose from my grandfather,” said Taters Chief Operating Officer Joseph Brian Tanchanco in an interview with BusinessWorld. His grandfather had been an executive at the Ayala Corp., and in 1994, his retirement package included a space at then-relatively new Greenbelt 1 (which has been closed for demolition earlier this year). At that time, the family noted a dearth in good movie snacks.

“We offered something more premium, something better to the Filipino consumers,” said Mr. Tanchanco, pointing that popcorn flavors back then were limited to butter, barbecue, and cheese. His mother whipped up recipes for sour cream, white cheddar, and other flavors; their first offerings were popcorn, peanuts, and fries (sandwiches and heftier snacks came later). The idea caught on, and malls beyond Greenbelt asked them to come in. “The malls were very positive with the reception of the brand.”

While now having more than 100 branches within the country, there’s still a touch of home as the recipes turn out to be still family approved. “When my mom started the business, the first gen(eration), as a kid, I was actually one of the food tasters. R&D!,” said Mr. Tanchanco.

One might think that there’s little room for innovation in “sinful” snacks (the greasier, the better), but we noted healthier options like “churkey” (that’s chicken and turkey) dogs, and tofu chips. “My mom’s actually healthy,” said Mr. Tanchanco, who noted as well the vegetarianism of not only his mother, but his grandfather and sister. “She really wanted to have healthy options for snacks.”

“We’re always blessed to have opportunities like this,” he said, after BusinessWorld noted their luck in springing on the idea of healthy movie snacks first. “But it’s a gamble. Who would think of healthy snacks while bowling?”

SWIVELING IN THE PANDEMIC
He said they had a vegetarian food outlet in Greenbelt too, but it closed in the pandemic.

The COVID-19 pandemic and the lockdowns of 2020 and beyond were instrumental in reshaping their business. “Super-solid, super confident. Overconfident to a certain degree,” he said about the business before the lockdowns.

While known for being a constant sight near the cinemas, the pandemic closed the movie houses, and their outlets were emptied. “Suddenly, nobody wanted to watch movies,” he said. Even after the pandemic, movie sales were still down, as people sat comfortably and safely in front of their screens at home.

So they swiveled.

“People still wanted these snacks,” he noted, so they concentrated on home delivery, building branches close to communities. And they started weaning Taters customers out of cinemas: they began opening kiosks on the shopping floors of their partner malls.

When the pandemic smoke cleared, they would open branches in gaming and play centers like in SM. Aside from cinemas, they’re now also found in bowling alleys and amusement parks and food courts. “It was a big gamble. But we said to ourselves, ‘if we’re going to do it, we have to listen to our customers’.”

Listening to their customers led to offering new items, especially for bowlers (turns out they like drinks and pizza). “… we’re going to evolve, naturally, with our customers,’ he said.

Evolution involves adding on to their baseline snacks, such as overloaded fries resembling Canada’s poutine, and theme-based toppings on their hotdogs and burgers (a Japanese-inspired line is coming up on the holiday season).

They’re not the only ones playing this game, and even movie houses now have their own concessionaires. But they have an edge, namely, “Adapting to change,” he said. “Probably, if you have product excellence, and service excellence, these two things are very memorable to people.”

During the anniversary event, Mr. Tanchanco dodged our question about how many branches they had, because a map marked with their branches had been set up as a game and the winner had to count all the branches on the map to win a prize (as we mentioned above, it’s more than a hundred). Still, scanning the map, we noted that Taters branches were scarce north and south of the map of the country (the Ilocos region and Mindanao). “We plan to expand with our mall partners as they grow,” he said.

To Mr. Tanchanco though, the real dream is to go international. “For me, that’s my own goal,” he said, and he’s working on it on a seven-to-eight-year plan. “My very first priority to make that happen is really all about having the right systems and digital infrastructure.” — Joseph L. Garcia

Meralco gives more time for 400-MW power supply bids

MANILA Electric Co. (Meralco) has extended the deadline for firms to submit bids for its 400-megawatt (MW) power supply requirement for next year to October, ensuring participants have more time to prepare their offers, the power distributor said on Wednesday.

The deadline to submit bids is now scheduled for Oct. 1, extended from the previous date of Sept. 3, Meralco said in a statement.

Meralco has set the pre-bid conference on Aug. 29, moved from the previous date of Aug. 1. 

Similarly, the bid submission deadline for its 600-MW power supply has been moved to Aug. 27 from Aug. 2.

Eight companies expressed interest and participated in the pre-bid conference last month for Meralco’s 600-MW power supply requirement.

These are First Gas Power Corp. and First NatGas Power Corp. of First Gen Corp.; Mariveles Power Generation Corp. and Masinloc Power Co. Ltd. of San Miguel Global Power Holdings Corp.; GNPower Dinginin Ltd. Co. and Therma Luzon, Inc. of Aboitiz Power Corp.; Southwest Luzon Power Generation Corp. of Semirara Mining and Power Corp.; and Quezon Power (Philippines) Ltd Co.

“We urge prospective bidders to submit their best offers for Meralco’s 600-MW and 400-MW supply requirements for next year,” said Lawrence S. Fernandez, Meralco’s chairman for bids and awards committee for power supply agreements.

“We look forward to receiving competitive offers that will help us fulfill our mandate of providing reliable and least-cost electricity to our customers,” he added.

The government requires distribution utilities to choose the cheapest electricity supply via a competitive selection process (CSP).

“We would also like to reiterate that the CSPs are being conducted in compliance with the rules and guidelines set by the Department of Energy and the Energy Regulatory Commission. We remain dedicated to conducting this process with utmost transparency and fairness,” Mr. Fernandez said.

Meralco resumed its bidding procedures for the 1,000-MW power supply requirement after the Taguig Regional Trial Court dismissed the injunction that had delayed the process.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Not just a cookbook

NATIONALBOOKSTORE.COM

THE ULTIMATE FILIPINO ADOBO by Claude Tayag might catch your eye at the bookstore by making you think that you’re about to make the ultimate adobo indeed, but you’re going to have to go through many steps to start.

It feels like an old martial arts trope, like Mr. Miyagi observing Daniel doing chores before teaching him his first kick in The Karate Kid. Before getting an actual usable recipe in the book, we have to go through several paragraphs about history, and vinegar, and even poetry. Still, adobo in theory left us as better people, and we now have a more meaningful relationship with the dish, which, as a staple, is easily taken for granted.

The first chapter includes an analysis on how the Spanish word adobo became a Filipino dish. The colonizers saw a familiar marinade; the difference being that in the Philippines, the marinade becomes the cooking liquid and sauce as well — strangely enough, daing na bangus (fried or grilled milkfish marinated in vinegar and spices), fits the bill for the Spanish definition. This chapter also includes a short study on the various vinegars of the Philippines, and how each kind imparts a different flavor to what they’re added to.

Chapter 2 sees the classics and their variations, and opens with a standard recipe, plus illustrations. It picks up the speed with explanations for the various forms and colors of adobo (white, brown, yellow, even red), and accompanying recipes. It becomes more intimate with the addition of a completely documented and photographed recipe for adobo sa palayok from the author’s family’s cook.

Mr. Tayag, well-known locally and internationally as a huge name in the Filipino food and restaurant business (an artist, he also does rounds in the art and literary industry as well), notes that there are as many recipes of adobo as there are households.

Chapter 3 includes native dishes that resembled adobo before receiving the Spanish name, while Chapter 4 sees records of adobo in print (even during the American occupation, the recipes have varied). That chapter also sees contributions by people he has met in the field, whose names might be familiar to readers. Art enthusiasts will be surprised to note that Anita Magsaysay-Ho and Benedicto “BenCab” Cabrera cherished certain adobo recipes (hers sounds Francophile and a little bit worldly; his sounds Filipino with a capital F, but with an edge). Even former news anchor Ces Drilon and beauty queen and writer Gemma Cruz Araneta join the game (her recipe, a family heirloom, gains historical significance when the book notes that she is an indirect descendant of hero Jose Rizal through his sister). Fans of restaurateurs Sau del Rosario, Myke “Tatung” Sarthou, and Jordy Navarra will be more than tickled to find out that they have shared their own adobo recipes here.

Chapter 5 features adobo recipes from Filipino chefs who have flourished abroad, but, more than that, it tells of adobo through the lens of the Filipino diaspora. How does one recreate the flavors of home when home and its familiar ingredients are far away? Hence, there are recipes by writer Jennifer Fergesen for arctic adobo made with seal and whale. There are bonuses: if you thought the names in Chapter 4 were big, wait until you read former Black Eyed Peas member Apl.de.Ap’s recipe, or even one by the present Duchess of Sussex (from back when she was Meghan Markle, the actress). Chapter 6 includes the author’s own recipes for adobo, done at his restaurants, or his various international engagements.

The book ends with a mapping of adobo’s close cousins, and a praise of pork, then rice.

The book will make an amusing gift to someone encountering Filipino culture for the first time — but Filipinos familiar to the dish and where it comes from will benefit from the book as well. In it, humble fare becomes a record of a people, a method of diplomacy, and an encouraging pat on the back. — Joseph L. Garcia

PHL assures Netflix of industry support amid VAT discussions

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FINANCE Secretary Ralph G. Recto recently met with senior officials of streaming platform operator Netflix, Inc. to clarify the proposed value-added tax (VAT) law for foreign digital service providers, the Department of Finance (DoF) said on Wednesday.

“Secretary Recto provided clarifications on the bill and assured Netflix of the government’s commitment to supporting the industry’s growth,” the DoF said of Mr. Recto’s meeting with the Netflix officials on Aug. 20.

The meeting included key Netflix representatives, such as Indirect Tax Senior Manager Davy Chen and Public Policy Manager for Southeast Asia Shangari Kiruppalini.  

Also present were Chief-of-Staff and Undersecretary Maria Luwalhati C. Dorotan Tiuseco, Assistant Secretary Karlo Fermin S. Adriano, Assistant Secretary Gerald Alan A. Quebral, and Bureau of Internal Revenue (BIR) Chief-of-Staff Luis Sixtus A. Esquivias.  

“Netflix representatives expressed strong support for the measure, emphasizing that it would level the playing field between local and international digital service providers,” the DoF said.

“This will help generate additional government revenues for development projects and programs for the Filipino people,” it added.

The proposed law seeks to levy a 12% VAT on resident and non-resident digital service providers. It was passed by Congress in June and only lacks the signature of President Ferdinand R. Marcos, Jr. to become a law.  

The Finance department expects to collect P10.87 billion in 2025 if the VAT on digital services becomes a law. This is seen increasing to P21.35 billion in 2026 and P22.81 billion in 2027.  

Digital services refer to those provided over the internet or other electronic networks through information technology. These include online search engines, online marketplaces, cloud services, online media and advertising, online platforms, and digital goods.  

Failure to tax foreign digital companies harms their domestic counterparts, lawmakers said.  

During the bicameral conference committee on the proposed measure, lawmakers pushed to earmark 5% of the bill’s revenues to support the domestic digital creative industry. — B.M.D. Cruz

Dining In/Out (08/22/24)

Jollibee’s Peach Mango Pie is now chunkier

JOLLIBEE’s Peach Mango Pie now has an improved pie filling recipe and is also more affordable. The price for a regular solo order has been reduced from P45 to P40. The pie now features an improved recipe, boasting of more real peach and mango bits, making it chunkier than the previous recipe; but is still packed in Jollibee’s sweet-salty signature crust. While the Peach Mango Pie is available for P40, there is also the large Peach Mango Pie solo for P60. The pie is available through dine-in, take-out, or drive-through, and for delivery via the Jollibee App, JollibeeDelivery.com, #8-7000, GrabFood, and Foodpanda.

Celebrity chef Jereme Leung returns to Conrad

CONRAD Manila celebrates the anticipated return of celebrity chef Jereme Leung, who will be featured at the 2024 Legendary Chefs Series – The Emperor’s Table from Aug. 22 to 28, exclusively at China Blue by Jereme Leung. Fabio Berto, Conrad Manila’s General Manager, said, “As his home in the Philippines, we are always thrilled to welcome chef Jereme Leung and his culinary genius back to Conrad Manila. Year after year, he always brings something new and unique to the table, and 2024 is surely not an exception.” During his visit, Mr. Leung will present his special set menu, priced at P6,588 net per person. This includes starters such as Marinated crabmeat with avocado and crispy puff roll, Marinated sweet plum drunken King Prawn, and Double-boiled sturgeon tendon and dry sea conch with morel mushroom Kung Fu soup. Main course selections feature Wasabi beef wagyu pistachio, Green bamboo shoot, Pan-fried black cod with torched ginger flower gravy sauce and pomelo, Braised Yin Yang rice (Orza rice, Tibet Rock Grain) with dry scallop and dry fish maw, and oyster-ginger taste. The cherry on top is a savory dessert: chocolate egg coconut mousse with mango puree. Patrons will also have the chance to meet Mr. Leung. The Legendary Chef’s Series: The Emperor’s Table exclusive set menu will be available for both lunch (11 a.m. to 2:30 p.m.) and dinner (6 to 10 p.m.), daily from Aug. 22 to Sept. 30. For inquiries and reservations, call 8833-9999, 00917-650-4043,, or email MNLMB.FB@ConradHotels.com. To learn more, visit China Blue by Jereme Leung – Eat. Drink. Hilton. (eatdrinkhilton.com).

Casa Buenas’ Sunday Brunch Buffet at NWR

STARTING this August, Newport World Resorts’ (NWR) signature restaurant that pays homage to the flavors of the Philippines is serving a feast every Sunday from 11:30 a.m. to 2:30 p.m. The Casa Buenas Sunday Brunch Buffet features an array of savory and sweet a la minute courses and a spread of fresh seafood on ice (Boston lobster, prawns, mussels, and crab legs), charcuterie cuts of meats and cheeses, a salad bar, tapas, and a carving station with lechon baka and cochinillo. The seafood specialty section serves Lobster Thermidor, Crispy fried prawns, and Baked Oyster Rockefeller. Buffet rates start at P4,500+ per person up to P5,500+ for a more indulgent experience with free-flowing champagne and other premium beverages. Advance bookings can be made online via https://tickets.newportworldresorts.com/products/casa-buenas-brunch-buffet?group=experiences. For more information, visit www.newportworldresorts.com and follow @newportworldresorts on Facebook, Instagram, and TikTok.

Kenny Rogers Roasters’ Flamin’ Hot Pepper Roast

KENNY Rogers Roasters’ new recipe for Flamin’ Hot Pepper Roast and Ribs goes beyond the usual. The roast (P770) is marinated in herbs and spices, and basted in a fiery hot pepper sauce. The Flamin’ Hot Pepper Roast Solo B (P310) is a quarter roast chicken marinated in herbs and spices, basted in a fiery hot pepper sauce; served with two side dishes, one rice, and signature corn muffin. The Flamin’ Hot Pepper Ribs (P835) are basted in the same sauce, and are available as a meal: the Flamin’ Hot Pepper Ribs Solo B (P480). This includes a 1/2 slab of ribs, rib sauce, one cup of rice, one side dish, and a corn muffin. Kenny Rogers’ new Flamin’ Hot Pepper Roast and Ribs is available for dine-in or takeout. For delivery, visit www.kennyrogersdelivery.com.ph, call the hotline 8-555-9000, or order via Grab Food and Food Panda.

New flavors at McCafé

MCDONALD’s welcomes a new McCafé Iced Coffee lineup, featuring new flavors and a bolder, creamier taste, all served up in newly designed yellow cups. McDonald’s Philippines Marketing Director for Channels Ashley Santillan-Delgado said: “Our customers take their beverages seriously, and so do we — the new and better McCafé Iced Coffee is a result of months of development and research, delivering an expanded taste journey that everyone can enjoy.” Starting at P50, the lineup includes McCafé Iced Coffee Original, McCafé Iced Coffee Vanilla, and McCafé Iced Coffee Chocolate. There are also McCafé Coffee and McCafé Iced Coffee Black. The variants are available via dine-in, delivery, drive-through and at McDonald’s Fries and Dessert stations nationwide. McDonald’s App Drive Thru VIPs can get their Medium Iced Coffee for P35 until Aug. 24. There will be more McCafé Iced Coffee promos and deals in the coming days.

SEC warns against investing in Glass Coin, Vaultrade

THE SECURITIES and Exchange Commission (SEC) cautioned the public against investing in Glass Coin and Vaultrade, as neither is registered to solicit investments.

In two separate advisories on its website, the commission said that Glass Coin and Vaultrade are not authorized to solicit, accept, or take investments from the public.

The SEC said that Glass Coin allegedly claims to be a trust fund company expert in crypto asset management. The entity also reportedly claims that investors only need to invest in their “smart contracts” to earn money.

The minimum investment is P600, with a daily earning of P66 and a total revenue of P1,980 after 30 days, while the maximum investment is P200,000, with a daily earning of P6,666 and a total revenue of P199,980 after 30 days.  

Investors could also earn a maximum of P3,650 for inviting others to join, and a P10,000 daily cash reward for following the entity’s Telegram channel.

Moreover, the SEC said that Vaultrade is allegedly enticing the public to invest money with a promise of high profits. The entity reportedly offers two plans that will earn 60% and 140% in just 10 to 200 days.

The entity also allegedly promises a 5% referral bonus and another 5% whenever the new investors reinvest their earnings.

According to the corporate regulator, the schemes of the two entities have characteristics of a Ponzi scheme, where money from new investors is used to pay fake profits to prior investors. This is designed mainly to favor its top recruiters and prior risk-takers and is detrimental to subsequent members in case of scarcity of new investors.  

“The offering and selling of securities in the form of investment contracts using the Ponzi Scheme, which is fraudulent and unsustainable, is not a registrable security. The commission will not issue a license to sell securities to the public to persons or entities engaged in this business or scheme,” the SEC said.  

The SEC also warned that individuals acting as salesmen, brokers, dealers, agents, or enablers for the two entities could face a maximum fine of P5 million, 21 years of imprisonment, or both, under the Securities Regulation Code. — Revin Mikhael D. Ochave

Why you should always wash fruit and veg before eating them — and the best technique to use

FREEPIK

EATING fruits and vegetables every day is a great way to stay healthy — just make sure you wash them properly first.

While most people are aware of the dangers raw meat and fish can pose to health, many consider fresh produce to be “safe.” But each year, one in 10 people gets ill by eating unsafe food — and approximately 46% of these cases of food-borne illness come from eating vegetables and fruit.

The fact is most fresh produce is grown in the open where anyone or anything — such as insects and birds — can touch it. This means as well as dirt, unwashed produce may contain a variety of potentially harmful matter — including bacteria, fungi, viruses and pesticides.

Fresh produce may also become contaminated during packaging, preparation, or storage. Even produce grown in greenhouses hydroponically can still harbor germs and pesticides.

Washing fruits and vegetables is of real food safety importance. But what’s the best way to do it?

WASHING YOUR PRODUCE
First, wash your hands. This prevents germs on your skin from contaminating the produce you’re cleaning.

The simplest and safest way to wash fresh produce is by hand, under cold, running water. Rub the fruits and veggies with your hands to remove dirt, pesticides and some surface germs. Wash until the surface no longer looks dirty. If you’re going to soak produce in water, make sure you use a clean bowl instead of the sink — which may be full of germs.

Never wash produce with detergent or bleach, as the skin of some fruits and veg are porous and could absorb these chemicals. This could not only change their taste and texture, but could make them unsafe to eat.

There are some safe chemical methods for cleaning your fruits and veggies (and which you may have already spotted on TikTok). Vinegar and baking soda can both be used to wash fresh produce. They can reduce bacteria and pesticides on the produce.

For vinegar washes, you can use distilled malt, cider, or wine vinegars. Use just half a cup of vinegar per cup of water, soaking the produce while stirring occasionally for two to three minutes. Then rinse in fresh cold water for at least one minute.

One downside with using vinegar, however, is that the acetic acid it contains may alter the taste and texture — particularly of soft fruits — if you soak longer than two to three minutes and don’t rinse thoroughly enough.

For baking soda, around 0.84gm of baking soda per 100ml of water — just under six tablespoons (tbsp) — was shown to stop the growth of germs on fresh produce. Soaking for 15 minutes with baking soda was also shown to remove nearly all traces of pesticides from fresh produce.

However, you really only need one teaspoon of baking soda per cup of cold water to wash produce. This will still remove microbes and pesticides without altering the produce’s taste. Soak fruits and vegetables in a clean bowl for 15 minutes, stirring occasionally.

As baking soda is alkaline, soaking longer than 15 minutes and not rinsing thoroughly may break down the skins of delicate fruits and vegetables, affecting their texture and flavor.

Research which compared the effect of washing apples with water alone versus soaking them in baking soda found water was almost as effective as baking soda at removing pesticides. It’s also worth noting that most traces of pesticides found in fresh produce are at non-hazardous levels — and the trace levels we consume in the United Kingdom are not thought to cause illness.

But one very recent study using apples found pesticides penetrate deeper than the skin. So in addition to washing, the authors suggest that peeling apples before eating can further cut down on any traces of pesticides you may be exposed to.

One downside with peeling is that you miss out on the many valuable nutrients fruit and vegetables skins contain. And, then again, many fruits and vegetables can’t be peeled (such as grapes or lettuce).

So based on the body of evidence we currently have available, water alone is still the best way to clean fresh produce. There’s no real advantage to using vinegar or baking soda.

VEGESTABLE VS FRUIT
Produce with a hard rind (such as squashes) or a firm skin (such as potatoes, sweet potatoes, and root vegetables), may be scrubbed with a vegetable brush until clean looking. Tomatoes can simply be rinsed under a running tap for around 30 seconds, rubbing gently with your hands.

To wash leafy green vegetables — such as lettuce, broccoli, cauliflower, kale, or cabbage — separate into leaves or florets and individually rinse under the tap, rubbing with your hands for up to a minute. Since lettuce is usually eaten uncooked, it’s safer to discard any damaged outer leaves as these are most likely to be contaminated with bacteria.

For fruits, water is again the best way to wash off contaminants. For stone fruits, apples, and cucumbers, rinse in cold, running water for up to a minute to remove dirt, microbes, and any wax coating.

The high water content of cherries, grapes, strawberries, and other berries, makes these fruits particularly perishable. Wetting berries will increase the growth of any germs present and reduce their shelf life. As such, it’s best to store these unwashed in the fridge, only washing when you’re ready to eat them. Remove any spoiled or moldy berries before refrigerating.

Any fruits and veggies you aren’t going to eat immediately should be blotted with a dry paper towel or put in a salad spinner to remove moisture and reduce germ growth. Then store in a lidded container in the fridge. It’s also a good idea to clean kitchen sinks, surfaces, and utensils before washing and preparing your produce.

Note that no home washing method can completely remove or kill all the germs which may be present on fruit and vegetables. Only cooking with heat above 60oC can do this.

 

Primrose Freestone is a senior lecturer in Clinical Microbiology, University of Leicester.

Burn more fuel to stop air travel cooking the planet

FREEPIK

AIRLINES aren’t always the best allies in the fight against climate change. But one place where they’re world leaders is in their fanatical drive to burn less petroleum.

Jet fuel typically comprises about a quarter of costs for most carriers. Anything that enables them to consume less of it raises profits and enhances their ability to outcompete rivals in the cutthroat battle to fill planes with passengers.

The efficiencies this has generated over the decades are genuinely astonishing. Modern aircraft can transport passengers twice the distance for the same fuel burn as planes in 1960. Line up a fully laden Airbus SE A320neo or Boeing Co. 787 against an efficient hybrid car like Toyota Motor Corp.’s Prius with only one or two people in it, and in most cases the fuel consumption and carbon emissions per passenger, per kilometer are lower in the skies.

To tackle one of flying’s most insidious contributions to global warming, however, airlines may have to get more comfortable burning more kerosene. That’s because the biggest way that aircraft engines are heating the planet comes not from the carbon dioxide they emit, but from the contrails that form as they fly.1

Anyone who has stared at the sky near an airport would have seen the tracks of puffy white cloud that about 15% of flights draw behind themselves. They’re most often created when planes fly through cold, humid regions of clear sky where water vapor is just on the verge of freezing. Soot emitted from the engines provides the seed around which ice crystals can grow, creating a high-altitude cloud that in turn acts as a blanket preventing heat from escaping the Earth.

They might seem innocent, but those human-made cirrus clouds are responsible for more than half of the climate damage from aviation, and 2% of all the warming that humans are causing. What’s more, 80% of them are caused by about one in 50 flights passing through so-called “ice supersaturated regions” or ISSRs, pockets of the sky particularly prone to contrail formation. If we could forecast where those areas are and route aircraft to fly under, over or around them, we might occasionally burn a little more jet fuel — but we would vastly reduce the climate impact of aviation.

Predicting the location of ISSRs is challenging because they’re still not well understood, but a major part of fixing that problem is a matter of data collection. Fix humidity sensors to a tiny proportion of civil aircraft, and you would immediately have hundreds of observation platforms to help build a picture of ISSR formation in exactly the regions where planes are flying. A government program to fly weather balloons into areas more distant from flight paths would help build a more comprehensive picture of the role of ISSRs in the climate system more generally.

Once we’ve improved the understanding of ISSRs, the next challenge is to actually get airlines to avoid them.

Again, governments have a lot of ability to influence outcomes. After jet fuel and wages, the biggest expense for most airlines is the route navigation and landing services they have to pay to (typically state-owned) air traffic control agencies and airports.

ISSRs are most likely to form over temperate regions of the Northern Hemisphere such as the US, Europe, and to a lesser extent north Asia. The three areas have busy skies and well-run aviation regulators who can force aircraft to divert around ISSR pockets if they want to avoid paying a climate penalty. Airlines might not like having to risk that cost, but it’s likely to be vastly cheaper (and more beneficial, in climate terms) than the mandates to buy sustainable aviation fuel that aircraft landing at European Union airports will start paying from next year.

At present, contrails are a classic example of a climate externality, something that no one fixes, because no one is forced to pay money to deal with them. That doesn’t need to be the case. Airspace is already an extremely heavily regulated part of the planet. If airlines faced costs as well as benefits from flying the short route through an ISSR, they’d do their best to avoid them. Aerospace manufacturers might also find innovative solutions to reduce contrail formation, much as they’ve managed to reduce the amount of air fuel that their engines use over the decades.2

No single solution is going to solve the problem of airlines’ climate impact, especially not as rising incomes lead to a general increase in air travel. It’s precisely because of the multi-pronged nature of the problem that we need to take contrails seriously. By plucking such low-hanging fruit, we’ll buy ourselves time to tackle the far more tricky conundrum of carbon emissions from planes, before it gets out of control.

BLOOMBERG OPINION

1This genuine bad side effect of contrails is not to be confused with the widespread “chemtrails” conspiracy theory that the clouds themselves are part of a government plan to poison the world’s population by secretly crop-dusting chemicals from civil aircraft.

2Even sustainable aviation fuel may play a role here: The sooty byproducts that it forms seem to be less conducive to contrail formation than those from conventional jet kerosene.

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