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ALI plans KL residential project

By Arra B. Francia, Reporter
AYALA LAND, Inc. (ALI) is furthering its international ambition with the acquisition of a four-hectare property in Malaysia’s capital city for P2 billion, seeking to transform it into a residential area.
The listed property giant said its board of directors approved on Wednesday the purchase of the property located in Klang Valley, Kuala Lumpur. The acquisition was made through MCT Bhd., where ALI has secured a majority stake in the Malaysian property developer.
“Now that we are majority owner, we need to continue to expand in the area…(the property in Klang Valley) is our first land acquisition in Malaysia since we participated in MCT Bhd,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said in a press briefing after the company’s annual shareholders’ meeting in Makati City on Wednesday.
ALI looks to break ground for the project by next year, with 90% of the area allotted for both horizontal and vertical residential projects. The remaining 10% will be occupied by leasing spaces.
The development will target the middle income segment in Malaysia, with prices to start at around 750,000 ringgit, equivalent to around P10 million.
This will be MCT Bhd.’s fourth project in Klang Valley, as it is also currently constructing Cybersouth, Cyberjaya, and One City in the area.
ALI Group Head for Strategic Land bank management Anna Ma. Margarita B. Dy said that the company is looking at two more sites in Klang Valley for future expansion.
“We really want to be in multiple sites in Klang Valley, offering an affordable residential product,” Ms. Dy told reporters on the sidelines of the media briefing.
Ms. Dy said the company will first focus on residential projects in Malaysia given the current demand for the product, with plans to venture into leasing projects in the following years.
“There’s a bit of supply availability at this point (for residential). I guess leasing also as this company grows and the balance sheet grows with it then we will be in a better position to be investing in leasing assets. But right now it’s better equipped to grow residential products,” the ALI executive explained.
For now, the Malaysian business accounts for a small chunk of the ALI business, contributing less than 5% to ALI’s bottom line according to Ms. Dy. The company is testing the waters for the Malaysian market in order to see how to proceed with its international expansion.
“We’re hoping it will also establish the model for international growth, not just in Malaysia but to really know how to work the local market through a platform… I think it helps us in terms of learning and knowing how to maneuver local markets but there are always unique situations in markets so you always have to be aware of that,” Ms. Dy said.
Meanwhile, Mr. Dy said the company remains on track to meet its P40-billion profit goal by 2020, noting ALI would have to book a 17% annual increase from 2018 to 2020 to reach the target.
“Given the continued economic growth in the country… We feel very positive that we will be able to continue to introduce new projects in the market that will bring us closer to achieving our target,” Mr. Dy said.
BONDS
ALI is currently offering P10-billion bonds with a 10-year tenor at 5.92% per annum, to support its P111-billion capital spending for 2018. The company noted that the bond offering is “quite innovative” given its repricing feature, which will prompt ALI to set another coupon rate by the end of five years.
“We priced off the five-year benchmark, and we were able to get a credit spread of 75 basis points leading to a coupon rate of 5.92%. That was very tight pricing,” ALI Chief Financial Officer Augusto Cesar D. Bengzon said during the media briefing.
Mr. Bengzon said the bond issuance is something that investors were looking for in lieu of rising interest rates.
“We were able to price and get a lower coupon rate by virtue of the fact that we priced off the five-year benchmark. As you know the 10-year benchmark is quite volatile… The differential is easily 100 basis points. So the advantage for ALI is we were able to lock in a lower coupon rate,” Mr. Bengzon explained.
The offer period for the bonds started this Monday and will end on Friday, with listing at the Philippine Dealing and Exchange Corp. set for April 27.
Shares in ALI gained P1.25 or 3.14% to close at P41 each at the Philippine Stock Exchange on Wednesday.

CLI brings Radisson Red Hotel to Cebu

CEBU Landmasters, Inc. is bringing the Radisson Red Hotel brand to Mandaue City, Cebu. — CEBU LANDMASTERS

CEBU Landmasters, Inc. (CLI) continues the expansion of its hotel portfolio with the introduction of Radisson Red Hotel in Mandaue City, Cebu.
In a statement issued Wednesday, the listed property developer said it has signed an agreement with Radisson Hotel Group to bring the hotel brand to the country.
CLI will develop the Radisson Red within its mixed-use project Astra Centre located along AS Fortuna Street in Mandaue City, and will offer 146 hotel rooms. The project will bring the company’s hotel room count to 756 once it opens by the fourth quarter of 2019.
“This unique hotel concept will offer a completely new style of hospitality in Cebu City, appealing to a generation of tech-savvy travelers who appreciate more fun hotel experiences and flexible stays,” CLI Chief Operating Officer Jose Franco B. Soberano said in a statement.
The Radisson group cited Cebu City as the “perfect location” for the brand’s introduction in the country.
“This is a dynamic, fast-paced urban center with a youthful vibe and positive outlook, and we look forward to welcoming guests at Radisson Red and introduce a new era of hospitality to the country,” Katerina Giannouka, Radisson Hotel Group president for the Asia Pacific was quoted in a statement as saying.
Ms. Giannouka added that the hotel will target a new generation of Asian travelers looking for experience and flexibility during their travels.
The hotel will feature two food and beverage outlets, Red Deli and OuiBar, as well as a 24-hour fitness gym. Guests can book through the Radisson Red app, which can also be used for unlocking their hotel room and bypassing reception.
CLI is leveraging on the positive outlook on the Visayas region for its bullish expansion. The company cited data from the National Economic and Development Authority saying that tourism-related activities will allow the Visayas area to outpace the projected 7-8% growth in the Philippines.
In particular, Cebu and Central Visayas are slated to benefit from the opening of the P17.5-billion Mactan Cebu International Airport in June. Data from the Department of Tourism also showed that Cebu accounted for majority of domestic and foreign arrivals in the first half of 2017, or 62% and 80%, respectively.
CLI booked a 66% increase in earnings in 2017 to P1.294 billion, supported by a 66% rise in revenues to P3.929 billion for the year.
This year, the company has allotted P8.8 billion in capital expenditures to fund its expansion. In a separate disclosure, CLI said its board of directors has approved the issuance of corporate notes to finance this year’s spending program. — Arra B. Francia

PLDT not ‘under pressure’ to sell remaining Rocket Internet shares

PLDT, Inc. said it is not under pressure to divest the remaining stake in Rocket Internet after it has started unloading its shares in German e-commerce investor as part of its plan to fund its massive capital expenditure program this year.
PLDT Chairman, President and CEO Manuel V. Pangilinan said there is no pressure to divest the remaining one-third of its stake in Rocket. This after PLDT earlier this week announced it has committed to sell at least 6.8 million Rocket shares back to the German company. This represents around 67.4% of the Rocket shares held by PLDT Online.
Mr. Pangilinan said this would depend on the movement of the share price of Rocket, but the telco sees its investments in Rocket as still valuable.
“I think their offer closes [on] May 2nd, so let’s see how the take up would be. The plan is for the two-thirds would be taken up by the offer… There’s no pressure on the part of PLDT to dispose the remaining one-third… [It’s] reasonably well despite the loss on the price but I think given the prospects that we’re seeing in Rocket, I think they’re quite optimistic,” Mr. Pangilinan told reporters on April 17.
“The value is still there, from that perspective it is still important to us. The amount of money that you generate from the values of the one-third. So I think the bias, I’d like to think is that given the prospects for Rocket Internet, the bias is share price should improve in the long term.”
Rocket Internet earlier announced the buyback of up to 15.47 million shares through a public share purchase offer at €24 per share. PLDT stands to get around €163.2 million or around P10.51 billion from the deal.
In February, Mr. Pangilinan said the company may sell its position in Rocket to fund its capital expenditure (capex), which is expected to stay above P50 billion for this year. PLDT is set to expand its fixed and mobile networks as part of its five-year P260-billion capital expenditure (capex) program.
PLDT invested €333 million (around $362 million) for a 10% stake in Rocket in August 2014. In October 2014, Rocket Internet went public, which effectively diluted PLDT’s stake, which now stands at 6.1%.
However, the Rocket investment proved disappointing, as its startups recorded heavy losses.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Starbucks to open 5th store in Davao City

DAVAO CITY — Coffee chain Starbucks is planning to open its fifth store in the city within the year.
“We are planning on opening a new store in Davao in the coming months. It will be another stand-alone store,” said Ria Yatco, Starbucks public relations and digital communications head, in an interview during the recent Starbucks summer campaign launch here.
Starbucks currently has three mall-based shops and one stand-alone along F. Torres Street, considered as the city’s restaurant row.
Ms. Yatco did not divulge where the new café would be located, but said it would “have a bigger space” and they want it “to stand out on its own.”
She said all Davao branches are “performing great” and they aim to keep the market hooked with seasonal promotions such as the summer campaign.
“That is why we come up with new products and campaign to help our customers enjoy Starbucks more,” Ms. Yatco said.
Rustan Coffee Corp., a member of the Rustan’s Group of Companies, is the sole licensee of Starbucks Coffee International in the Philippines. — Maya M. Padillo

Buhay Carinderia to tour country in search of the best humble eateries


THE who’s who of Manila’s culinary scene were quite surprised to find out that Madrid Fusion Manila will not be pushing through in April this year (though some reports say that it will push through on a later date). Change came this year as the international culinary conference was replaced by something a lot closer to home: Buhay Carinderia… Redefined, by Marylindbert International, Inc., with the help of the Tourism Promotion Board(TPB) and the Department of Tourism (DoT).
The program is aimed at small to medium enterprises, aimed, to “improve the carinderia’s image, help the entrepreneurs behind them and present their unique style of cooking to a wider audience,” said in a press release.
From this moment on until June, the caravan will be touring the Philippines, beginning with northern Luzon, to find the best that the regions have to offer, culminating in a culinary exposition in Vigan in June. After this initial phase, the caravan will go all around the country, and each tour will be punctuated with culinary expositions of their own, with a final one in Metro Manila near the end of the year.
Said TPB Chief Operating Officer and sometime actor Cesar Montano in a speech during the launch earlier this month at the Rizal Park Hotel: “We, from the Tourism Promotions Board and the Department of Tourism, we believe that Philippine culinary… is not limited to the people who can afford it. This time, Buhay Carinderia…. Redefined will reach out [to] the grassroots.”
Meanwhile, Erlinda Legaspi, president of Marylindbert International (who has been staging the program since 2011, albeit on a smaller scale), said: “It’s going to be bigger, and will include all of the regions in the Philippines.”
Experts will also mentor culinary students during the program, and Ms. Legaspi said that they plan to come up with a star system à la the Michelin Guide. — JLG

IT-BPM companies fuel Q1 office space demand

THE information technology-business process management (IT-BPM) sector continued to fuel demand for office spaces in the first quarter, amid the retention of tax perks for outsourcing companies.
A first-quarter office market report by real estate consultancy firm Pronove Tai International showed that IT-BPM accounted for more than half of the actual take-up for office spaces in the January to March period. This is equivalent to around 135,000 square meters (sq.m.) of office spaces.
“They came in with a strong start despite the tax issues that brought about uncertainties in 2017. With the TRAIN (Tax Reform for Acceleration and Inclusion) implemented in January and the tax incentives retained, we have seen that uncertainty addressed for the IT-BPM sector,” Pronove Tai Chief Executive Officer Monique Cornelio-Pronove said in a media briefing in Makati City on Wednesday.
Majority of the transactions from IT-BPM firms were located in Taguig City, Muntinlupa City, and the Bay Area.
Also driving the demand during the first quarter were traditional offices, accounting for 30% or 79,000 sq.m. of the actual take-up for the period.
Philippine offshore gaming operators (POGOs), meanwhile, occupied an additional 48,000 sq.m. in the first quarter, or 19% of the actual take-up, locating primarily in the Bay Area, Pasig City, and Makati City.
Around 250,000 sq.m. of office spaces were added to the Metro Manila office supply in the first quarter of 2018, coming mostly from Taguig City, Quezon City, and the Bay Area.
“This is driven by the letters of no objection presented by LGUs (local government units),” Ms. Cornelio-Pronove said.
Letters of no objection are documents presented by LGUs to gaming firms in order to allow them to operate in a specific area. Pronove Tai noted earlier this year that demand from POGOs may slow down given tighter government restrictions against online gaming.
Meanwhile, the real estate services firm reported that around 250,000 sq.m. of supply was added to the Metro Manila office stock in the January to March period, bringing the total office stock in the metro to 10 million. This marks a 3% increase quarter on quarter.
Majority of the new office supply are located in Taguig City, followed by Quezon City and Mandaluyong City.
The company noted that the Bay Area — touted as the second-fastest growing district for last two years — recorded zero growth for the quarter. Replacing its growth momentum was Quezon City, which logged an additional 84,000-sq.m. supply for the period.
Vacancy rates were steady at 5%, with Quezon City posting the highest vacancy at 13%, followed by Mandaluyong City and Ortigas Center with 12% and 6%, respectively. — Arra B. Francia

9 Ways You’re Ruining Your Pasta Dinner

IN 2017, Italy landed the No. 1 spot on the Bloomberg Global Health Index. Eating all that pasta pays off. If there’s a chef in the US who can offer advice on the subject, it’s Missy Robbins of Lilia in Brooklyn’s Williamsburg neighborhood. Bloomberg pronounced the restaurant a “pasta destination” in a 2016 review after it opened. Lilia has earned praise from David Solomon, Goldman Sachs’s next chief executive officer, and has lured Jared Kushner and Ivanka Trump. In her 2017 cookbook, Breakfast, Lunch, Dinner… Life: Recipes and Adventures From My Home Kitchen (Rizzoli), Robbins divulges some of her favorite recipes, from 30 (garlic) clove sauce to fettuccine with butter and truffles.
As Robbins has mastered the art of pasta cooking, she’s become militant about the steps that go into creating a perfect bowl (and occasional plate) of the stuff. Here’s her advice on where you may be going wrong when you do it.
1. You use a small pot. “Even if it looks way too big, grab a large pot,” Robbins says. “And add more water than you think you need. There should be enough space for the pasta to move around so that it cooks evenly in water that’s at a rolling boil. If it looks like your pasta is crammed in a hot bathtub of simmering water, you were too skimpy with your pot and your water. And remember that heavily salted water is essential.”
2. You add oil to your cooking water. “Here’s the short reason why: It prevents sauce from sticking to the pasta. It’s basically like adding a raincoat to whatever shape you’re using, which is not what you want in a finished dish.”
3. You grab a colander. “If you’re draining your pasta in a colander in the sink, you’re losing all the cooking water — and that water is an important ingredient for a great dish. Some pots have a basket insert, which is a larger version of the pasta baskets we use in restaurants. You can also buy one separately. Alternately, you can remove pasta from the pot with tongs for long shapes or a spider or large slotted spoon for small ones. Just remember to work fast as you extract the pasta from the water.”
4. You discriminate against the classics. “Buying expensive artisanal pasta in eye-catching shapes isn’t essential to making a delicious dish. I happen to love the De Cecco brand — it cooks evenly, has good flavor and consistent quality. Whatever brand works for you, use it.”
5. You pour sauce on top. “You’ve seen those images on jars of someone pouring sauce onto a mountain of pasta: They are completely wrong. If you’re serving a sauced pasta, you should always add the pasta to a pan of sauce and finish cooking it there. These last few minutes are crucial: They ensure that the pasta absorbs more flavor. Allow for that additional time by undercooking your pasta a little bit in the boiling water. And add spoonfuls of the pasta cooking water you reserved to the sauce as you stir the pasta; it will be a little bit thick from the starch of the pasta and help thicken and flavor the sauce.”
6. And you use too much sauce. “You don’t want your pasta that you’ve cooked so carefully to be swimming in a pool of sauce, no matter how tasty that sauce is. Allow for 1-½ to 2 cups of sauce per pound of pasta. There should be next to nothing in your bowl or on the plate when you serve it.”
7. You believe pasta belongs on a plate. “I use bowls to serve almost all pastas, from long strands of spaghetti, fettuccine, and mafaldini to short shapes like rigatoni and gnocchi. Pasta is more comfortable in a bowl, it’s more fun to eat, and there’s less chance of cooling down quickly. The exceptions to my rule are flat-bottomed pasta, namely ravioli but also varieties like the coin-shaped crozetti, which can get broken up if they’re jumbled in a bowl.”
8. You think pasta is just for cold weather. “Not all pasta sauces need to simmer. Case in point: One of my favorite recipes in the book is a no-cook cherry tomato sauce, which works any time you’ve got decent little tomatoes. If you like garlic (I’m raising my hand), spring is the best time to make a sauce with it. Use spring garlic, scapes [the flowering green stalks], along with regular garlic — a celebration of garlic, if you will. It adds so much more depth than just regular garlic.”
9. You throw out the leftovers. “Almost any leftover pasta, with the exception of stuffed ones, can have a second life as a very delicious frittata or baked dish. Add a few beaten eggs, a lot of grated cheese, and any other ingredients that sound tasty such as cooked sausage and bake in a 350°F oven in a baking dish or heatproof skillet.” — Bloomberg

Are VR gaming centers the new arcade?

SINGAPORE — Gamers wearing headsets and wielding rifles adorned with flashing lights battle a horde of zombies, letting out the occasional terrified shriek.
The virtual reality arcade in Singapore is part of a wave of such venues being opened as backers of the technology seek to shake off teething problems and break into the mainstream.
The buzz around virtual reality (VR) gaming has seen Taiwan-based HTC, Sony and Facebook-owned Oculus VR battling to woo consumers with a range of headgear.
But it has been slow to really take off, partly due to the hefty price of top-end headsets, beginning at around $350, and the challenges in setting up complex VR systems at home.
But VR arcades, which have been springing up around the world, particularly in Asia, are now giving people the chance to try it out more easily and for a fraction of the price.
“Given the complications of at-home, PC-based VR systems, pay-per-use, location-based entertainment venues can fill the gap,” said Bryan Ma, from International Data Corp. (IDC), a consumer technology market research firm, in a recent note on the industry.
Several VR gaming companies have made forays into Singapore, seeing the ultra-modern, affluent city-state that is home to hordes of expatriates as a good fit.
The zombie fight-out was taking place at a center where participants stalked a room with a black floor and walls.
“I did paintball before, it’s quite fun… but I think the whole scene is much more interesting here,” said Jack Backx, a 55-year-old from the Netherlands, who was playing with colleagues from the oil and gas industry on a work day out.
The location is run by VR gaming group Zero Latency, which started in Australia and has expanded to nine countries. It uses “free-roam” virtual reality — where gamers move around in large spaces and are not tethered to computers with cables.
It’s not all intense, shoot-’em-ups — VR group Virtual Room has an outlet in Singapore that transports gamers to scenarios in the prehistoric period, a medieval castle, ancient Egypt and even a lunar landing.
ASIA LEADS THE WAY
VR arcades have been springing up in other places. China was an early hotbed for virtual reality gaming although the industry has struggled in recent times, while they can also be found in countries across the region including Japan, Taiwan and Australia.
Many key industry milestones over the past two years have been in Asia but arcades have appeared elsewhere — London’s first one opened last year while there are also some in the United States.
Consumer spending on virtual reality hardware, software and services is expected to more than double from $2.2 billion in 2017, to $4.5 billion this year, according to gaming intelligence provider SuperData Research.
For the best-quality experience, it can be relatively expensive — a session in Singapore costs SG$59 ($45).
“The equipment here is not cheap,” said Simon Ogilvie, executive director of Tomorrow Entertainment, which runs the Zero Latency franchise in Singapore.
The industry faces huge challenges.
China offers a cautionary tale — according to IDC, VR arcades have struggled there after expanding too quickly.
There have also been warnings that improvements in home-based technology may eventually lead to VR gaming centers suffering the same fate as traditional arcades that were once filled with Pac-Man and Street Fighter machines.
“The rise and fall of coin-operated videogame arcades in the 1980s suggests that such VR arcades may eventually fade in relevance as home-based computing power and prices fall within mass consumer reach,” said the note from IDC’s Ma.
Rebecca Assice, who runs Virtual Room in Singapore, said one challenge was getting people interested in the first place as many still did not know about the arcades.
“VR is still a really new industry,” she said. “A lot of people just don’t know this sort of activity exists.” — AFP

Bots emerge as key tool in customer service — poll

By Zsarlene B. Chua
Reporter
CALIFORNIA-BASED communications company, Avaya, revealed key Philippine trends in customer experience in 2018 which highlights the increasing importance of communication tools and technologies in digital transformation.
“Businesses in the Philippines understand the importance of good customer experience and the increasing role that communications solutions will play in delivering it,” said Ferdinand Macatangay, country manager of Avaya Philippines during a media briefing on April 17 at the Shangri-La at the Fort, Bonifacio Global City in Taguig.
The survey, done together with IDC Insights (a research and consulting firm), was conducted in March and polled 29 executives from several industries in Metro Manila including business process outsourcing (BPOs), financial and manufacturing.
A similar survey was done globally in the fourth quarter of 2017 which polled 356 executives from different industries.
The first trend observed during the survey is that globally, enterprises will have enhanced capabilities to understand customers in 2018 largely due to “all the new technologies that are emerging [including] the capability to integrate multiple identities into one platform or one database and that’s a worldwide trend,” said Michael Araneta, associate vice-president for financial insights, IDC Philippines, during the briefing.
A person, he said, typically has about 28 digital IDs and once all these digital identities become integrated in one platform it will “hasten the data collection process,” and enable companies to deploy customer insights to the frontlines, among others.
In the Philippines, survey results showed that it is exactly the lack of these databases are what companies consider as the greatest barrier when attempting to improve customer experiences (59%).
In comparison, global trends point to diverse customer base expectations as the greatest barrier.
But even if enterprises manage to offer an omnichannel service, Sami Ammous, managing director of Avaya ASEAN, pointed out in the same briefing that the “omnichannel journey, there is no destination, it’s always a journey.”
The second trend the company saw is that there will be “an upsurge in the frequency of communication and interactions” as the average rate per capita of data-driven interactions per day is expected to increase 20-fold from 2015-2020.
The perceived increase in interaction was spurred by the fact that according to the Philippine survey results, most of the respondents rate the enabling of customer-to-employee communication via different channels (e.g. inbound phone, websites, SMS/chat platforms) as the most important consideration during digital transformation.
To that end, Filipino enterprises place much importance in messaging (71%), chat applications (59%) and social media (42%) as the third trend pointed towards the emergence of new channel types to serve the “truly omnichannel customer.”
Filipino companies are also much more keen on investing in advanced automated technologies such as bots and scripts compared to global results which sees blockchains as having more importance.
“The Philippine will probably lead the world in terms of having best practices in how to blend bots and scripts and augmenting them with human capabilities,” said Mr. Araneta of the fourth trend.
Finally, Avaya sees the introduction of new key performance indicators (KPIs) which will support profitable customer relations, improve customer net promoter scores and increase customer interactions for non-profitable products.
In the Philippines, companies see customer satisfaction as the most important customer service KPI at 67% followed by issue resolution rates at 56%.

SEC flags 14 cryptocurrency investment companies

THE Securities and Exchange Commission (SEC) warned the investing public against 14 online investment scams, including entities riding on the growing popularity of Bitcoin and other cryptocurrencies to lure investors.
The country’s corporate regulator advised against investing in the following entities: NewG, Smart Capital, Gener8X, Paid2Prosper, CMT (Coins and Mining Trading), PSO (PSOPOWER Apps), TradeConnect, IronTrading (Team Bangon), ExpertTrading, OneCash, Lucky Coins, Miner’s Investment Group,
Digital Coin Trading, and All Pal for All Seasons.
The commission said the companies have been soliciting investments from the public through social networking site Facebook, promising returns of as high as 200% per month. The mentioned entities allegedly claim that funds from investors will be converted into cryptocurrency, thus justifying the investment’s earning capacity.
The SEC emphasized that none of the firms are registered with the commission, nor are they allowed to solicit investments from the public as they have no prior registration and/or license to engage in such activities.
As per the Securities Regulation Code, people who act as salesmen, brokers, dealers, or agents of the companies may be penalized with a maximum fine of P5 million or imprisonment of 21 years, or both.
Similarly, those found to be inviting the public to join such investment scams may also be held criminally liable or be sanctioned in accordance with the law.
Meanwhile, the SEC also cautioned against Internet-based Bitcoin and cryptocurrency Ponzi schemes, where entities usually offer investments in cryptocurrencies to yield high returns in a short period of time.
“This investment scheme ordinarily collapses as fast as they are created while leaving its investors behind and unable to recoup their investments,” the SEC said.
The commission said that such entities, as well as their investment offers, are not registered with the SEC.
“The public is hereby advised to exercise prudence before investing in these kinds of activities and to take the necessary precaution in dealing with these unregistered investment entities,” the SEC said. — Arra B. Francia

A taste of Philippine summer at China Blue


CELEBRITY CHEF Jereme Leung (by celebrity, we mean he was once recognized as one of the world’s best chefs by the American Academy of Hospitality Science) heads a lot of restaurants around the world, at select cities in China, aboard cruise ships, the tiny nation of the Maldives, and Manila. He visits each one of his locations twice a year, and this season, at the height of Manila’s summer, he presented to China Blue in Conrad Manila a menu called “Majestic Summer.”
The menu began with appetizers of braised beef and eggplant roll, barbecue chicken skewers in tamarind sauce, and wok-fried pork spare ribs in Batangas coffee sauce and pili nuts. China is in the restaurant’s name, and yet Mr. Leung, fascinated with the ingredients that the Philippines can offer, scouted out his favorites, and apparently, if they work, he plans to take a few things and serve these at his other locations.
The beef roll, meanwhile, was surprisingly light in flavor and texture, while the spare ribs jolted one awake from its crunch and the coffee sauce.
The soup was served next, poached scallops and dried fish lips in cherry tomato-kamias consomme. China Blue could possibly be a genius in soup. Despite the Filipino ingredients, it feels almost as if one has been transported to summer in old Shanghai while sipping the soup.
The main course were deep-fried fillets of lapu-lapu in sweet and sour mango and calamansi sauce, paired with poached moringa seafood wontons and crispy black rice-coated king prawns, all lying on a splash of pumpkin sauce. The sweet and sour fish tasted like a morning in summer: sweet and crisp, while the king prawns tasted indulgent.
Dessert meanwhile was a moringa and cucumber sorbet with chia seeds, and that was a great palate cleanser and a balm from the summer sun.
Said Mr. Leung on how the dishes still remain Chinese despite the not-so-light Filipino touch: “It’s important for every market — even China Blue now — part of the discipline to make it good is to understand what works for the customers.”
The set menu is available for P4,000 net per person. — J.L. Garcia

Market expects rate hike in May — DBS

By Melissa Luz T. Lopez, Senior Reporter
MARKET participants are pricing in a rate hike from the Bangko Sentral ng Pilipinas (BSP) next month, analysts at DBS Bank said, amid concerns that the uptick in inflation and a wider current account deficit have rendered tightening moves necessary.
“The Philippine markets are positioning for a rate hike at the next monetary policy meeting on May 10,” DBS Group Research said in a market commentary yesterday.
“The 10-year bond yield has also risen above 7% [on Tuesday]. More importantly, the 3-month Philippine interbank reference rate has been moving higher with CPI inflation since the start of the year.”
Yields on 10-year bonds stood at 7.2607% at the secondary market on early Wednesday, higher than the 7.1714% seen the previous day. However, the government was able to raise 10-year Treasury bonds at a lower average yield of 6.213% during Tuesday’s auction.
The BSP’s policy-setting Monetary Board will conduct its third rate-setting meeting on May 10. The board has kept its policy stance unchanged in nearly four years, with benchmark spreads ranging from 2.5-3.5% since procedural cuts were introduced in June 2016 for the interest rate corridor scheme.
The board kept rates steady during the March 22 meeting even as inflation maintained its ascent for a third straight month. Instead, policy makers cited robust domestic economic activity and limited concern over higher inflation as reasons for staying on hold.
Price increases of widely used goods accelerated to 4.3% in March under the 2012 base year, led by a surge in the prices of cigarettes and alcohol as well as rice, according to the Philippine Statistics Authority.
This is the fastest price pickup seen in at least five years which brought the three-month average to 3.8%, close to the high end of the BSP’s 2-4% target.
Market watchers are expecting policy tweaks from the BSP as they expect inflation to “top out around 5-6% in May-June from the tax reforms,” DBS strategists Philip Wee and Duncan Tan said.
The central bank expects monthly inflation to keep rising and peak between July and September.
The weakening trend of the peso is likewise aggravating the situation, the bank analysts added, pointing out the unit’s 4.3% depreciation so far this year. This follows two straight years of a weaker peso-dollar rate.
“With the country’s current account and fiscal balances both in deficits amidst mildly hawkish Fed hikes, the government may be looking to issue more bonds to retail investors ahead. As for the next central bank meeting on May 10, we see the overnight borrowing rate higher by 25bps to 3.25%,” DBS added.
The Federal Reserve hiked key rates by 25 basis points in March, with new chair Jerome H. Powell hinting at succeeding adjustments later this year.
BSP Deputy Governor Diwa C. Guinigundo said earlier this month that there remains no need to adjust interest rates: “While some market indications point to rising inflation expectations, nothing at this point suggests that the market expects persistent significant surge in consumer prices through 2019 that would warrant a change in the monetary policy stance.”
He added that the BSP does not have to match the Fed’s rate tweaks as they come, as current rates remain supportive of domestic liquidity and financial conditions.
BSP Governor Nestor A. Espenilla, Jr. said separately that the low interest rate environment is proving conducive to growth without triggering runaway inflation, thus leaving no need to adjust so far.
Mr. Espenilla, however, said the BSP stands ready to raise loan rates should price increases turn more broad-based. He added that the Philippine economy is robust enough “to absorb some policy tightening if warranted,” saying that the above-six percent growth remains sustainable.
As of its March 22 meeting, the Monetary Board expects inflation to average 3.9% this year, which would represent a sharp increase from the 2.9% rate tallied in 2017. Using the original 2006 base year, inflation will soar to 4.5% from 3.2% a year earlier.
BSP officials, however, find comfort in estimates showing that inflation will decelerate to a 3% average by 2019 — in line with expectations that the impact of tax reform on prices will be temporary.
Some analysts have called off their forecasts for rate hikes in 2018, citing the “reluctance” of key BSP officials to touch key rates anytime soon. Other observers, however, remain of the view that the central bank is already behind the curve at a time of steadily rising global yields.

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