DALI Everyday Grocery operator widens net loss

July 1, 2024 | 12:04 am

Dali Grocery Store — DALI EVERYDAY GROCERY FACEBOOK PAGE

HARD DISCOUNT Philippines, Inc. (HDPI), the corporate entity behind the DALI discount grocery chain, reported a widened net loss in 2023 primarily due to increased operating expenses.

According to the company’s regulatory filing, HDPI recorded a net loss of P1.88 billion in 2023, marking a 110% increase from the P894.68-million loss in the previous year.

Despite the expanded net loss, HDPI achieved a revenue of P22.31 billion in 2023, a 141% surge compared to P9.27 billion in the prior year, driven by higher sales.

Operating expenses jumped by 255% to P3.01 billion in 2023 from P850.39 million in 2022, mainly attributed to increased expenditures on salaries, wages, and benefits.

As of the end of 2023, HDPI accumulated losses totaling P3.26 billion, resulting in a capital deficit of P1.29 billion for the same period.

It also disclosed that P4.67 billion worth of additional capital was infused by stockholders as of end-2023.

HDPI is a wholly owned subsidiary of HDPM Sin Pte. Ltd., a foreign company incorporated under Singaporean law. The ultimate parent of HDPI and HDPM Sin is Switzerland-founded Dali Discount AG.

“The company forecasts that profit margins will improve over the next five years resulting from the implementation of cost efficiency measures,” HDPI said.

“Management believes that with the planned increase in equity, the commitment of and continued financial support from the parent company and the projected improvement in net profit margin, the company will be able to generate sufficient cash flows from its operations to meet its obligations as and when they fall due,” it added.

In March, Singapore-based growth equity firm Venturi Partners announced a $25-million investment to fund the expansion of DALI.

DALI seeks to have up to 950 stores across the Philippines by yearend. — Revin Mikhael D. Ochave

T-bill, bond rates may be mixed on BSP cut bets

July 1, 2024 | 12:03 am

RATES of Treasury bills (T-bills) and bonds (T-bonds) could be mixed this week after the Bangko Sentral ng Pilipinas (BSP) chief reiterated that their policy easing cycle could start as early as next month.

The Bureau of the Treasury (BTr) will auction off P15 billion in T-bills on Monday, or P6.5 billion each in 91- and 183-day papers and P7 billion in 364-day notes. The six-month tenor on offer this week was adjusted as its maturity date falls on a holiday.

On Tuesday, the government will offer P30 billion in reissued seven-year T-bonds with a remaining life of four years and 10 months.

The rates of T-bills and T-bonds on offer this week could track the mixed movements in secondary market yields after BSP Governor Eli M. Remolona, Jr. said the Monetary Board could start cutting benchmark interest rates by August, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Secondary market levels ended mostly lower on Friday due to bargain hunting after the BSP meeting, a trader said in an e-mail.

The trader said the T-bonds on offer this week to be “well-received amid rate cut expectations,” adding they could fetch rates ranging from 6.25% to 6.4%.

At the secondary market on Friday, the rates of the 91-day and 182-day T-bills went up by 4.35 basis points (bps) and 5.72 bps week on week to end at 5.7433% and 6.0035%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data published on the Philippine Dealing System’s website.

Meanwhile, the 364-day T-bill’s yield went down by 1.55 bps week on week to 6.0741%.

On the other hand, the rate of seven-year bond decreased by 3.31 bps week on week to 6.5392% on Friday, while the five-year debt, the tenor closest to the remaining life of the papers to be offered this week, went down by 2.46 bps to yield 6.4298%.

Mr. Remolona on Thursday said the Monetary Board is “on track” and “somewhat more likely than before” to slash rates at its Aug. 15 policy meeting, well ahead of the US Federal Reserve, which has signaled it could begin easing by December.

The BSP could cut rates by 25 bps in the third quarter and by another 25 bps in the fourth quarter, he added.

The Monetary Board’s Aug. 15 review is its only meeting in the third quarter. Meanwhile, its last two reviews for the year will be held in the fourth quarter and are scheduled on Oct. 17 and Dec. 19.

The Monetary Board on Thursday left its target reverse repurchase rate unchanged at 6.5%, the highest in over 17 years, as expected by all 15 analysts in a BusinessWorld poll. Interest rates on the overnight deposit and lending facilities were also maintained at 6% and 7%, respectively.

The BSP hiked rates by a cumulative 450 bps from May 2022 to October 2023 to help bring down elevated inflation.

An August rate cut would be the first for the BSP in over three years, which last slashed borrowing costs by 25 bps in November 2020 to bring the policy rate to a record low of 2% during the height of the coronavirus pandemic.

Last week, the BTr raised P15 billion as planned from the T-bills it offered as total bids reached P39.795 billion, or more than twice the amount placed on the auction block.

Broken down, the Treasury borrowed P5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P14.81 billion. The average rate for the three-month paper was unchanged at 5.666%, from the previous week’s award. Accepted rates ranged from 5.648% to 5.675%.

The government likewise made a full P5-billion award of the 183-day securities, with bids reaching P10.71 billion. The average rate for the six-month T-bill stood at 5.93%, inching up by 1.6 bps, with accepted rates at 5.912% to 5.95%.

Lastly, the Treasury raised the planned P5 billion via the 364-day debt papers as demand for the tenor totaled P14.275 billion. The average rate of the one-year debt slipped by 1.5 bps to 6.031%. Accepted yields were from 6.029% to 6.034%.

Meanwhile, the reissued seven-year bonds to be auctioned off on Tuesday were last offered on June 20, 2023, where the government made a full P25-billion award, The papers fetched an average rate of 6.097%, 40.3 bps below the 6.5% coupon for the series.

The BTr wants to raise P215 billion from the domestic market this month, or P100 billion from T-bills and P115 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — AMCS

Analysts’ June inflation rate estimates

July 1, 2024 | 12:03 am

HEADLINE INFLATION likely remained steady in June and settled within the central bank’s 2-4% target for a seventh straight month, analysts said. Read the full story.

Mugwort, soybeans, deep sea water

July 1, 2024 | 12:03 am

Geomundo-Mugwort-Line — GEOMUNDO MUGWORT LINE

K-beauty brand uses Korean natural ingredients

USED by Korean celebrities, K-beauty brand Round Lab is now in the Philippines, having been launched at Rockwell’s Balmori tent on June 26. During the event, the brand emphasized its use of natural ingredients found only in select regions in Korea.

Round Lab’s Pine Cica product line uses pine trees from Yangyang County in Gangwon Province. This line has intensive calming properties and soothing effects, with products ranging from cleansers to pads, ampoules, creams, and masks.

Meanwhile, water from the deep seas around Ulleungdo Island in Ulleung County and the Dokdo Islands in the Sea of Japan is used in the brand’s 1025 Dokdo Toner. The line includes cleansing oil, balm, gel, bubble foam, pads, ampoules, a lotion, creams, gel masks, sunscreen, an eye cream, mud packs, and peeling gel. The products are meant to be used by people with sensitive skin.

Round Lab’s Birch Juice Moisture Line uses the sap of silver birch trees of Inje County in Gangwon Province. The sap is combined with Vita Hyaluronic Acid, providing deep hydration for dewy and healthy skin. The line’s Birch Juice Moisturizing Sunscreen with SPF 50+ has been awarded multiple awards by beauty app Hwahae, and the Glowpick Beauty Awards. Aside from the sunscreen, the line includes cleansers, toners, moisturizers, ampoules, and lotions. The sunscreen comes in creams, sticks, and cushions.

Round Lab’s Mugwort line contains an extract of Sea Breeze Artemisia and Madecassoside from mugwort grown on Geomundo Island near Jeju Island. The line consists of a cleanser, a toner, a serum, a mask, and soothing gels to help calm irritated skin.

Black soybeans from Jeogson County in Gangwon-do province are used in Round Lab’s Soybean product line, which includes a cleansing oil, a nourishing toner, a serum, a cream, and a mask. These are designed to provide deep nutrition and reinforce the skin barrier.

In a speech at the launch, Younghak Lee, Round Lab Chief Executive Officer/CEO, said, “Our company operates under the slogan ‘everyday strength that changes the skin and the all-round world.’ We always develop our products with the hope that the good ingredients we find around Korea can reach our consumers’ skin. We hope to create a world that is more well-rounded for everyone. Our actions may not be large, but we operate our company with the hope that our small, environment-conscious, and neighbor-considerate activities can spread a positive influence on all around the world.”

Through an interpreter, he told BusinessWorld during a group interview that the K-pop bands Day6 and BTOB use their products. He also emphasized, “In order to maintain the Korean standard skin, using products like for cleansing, sunscreen, and toner: it’s really important.”

The products are distributed in the Philippines by Descorp, which also distributes other brands and is the maker of homegrown brand Quick FX. Its COO, Jenny Jabeguero Gozo, said, “Round Lab is a very unique product for us, because it offers a clean beauty option, which is a very big thing now amongst our Gen Z market.”

Round Lab products, ranging in price from P700 to P1,200, are available at Watsons stores. — Joseph L. Garcia

StartUp QC’s Cohort 3 offers up to P1-million grant

July 1, 2024 | 12:03 am

Following the success of its previous editions, the Quezon City Government opened applications for Cohort 3 of Startup QC Professional Category.

The program is designed to nurture the next wave of impactful startups propelling economic and innovation growth in the city.

The StartUp QC Program on-boards early-stage startups to enhance their readiness to enter the next stage of their entrepreneurial journey.

Qualified startups will engage in tailored Learning, Engagement, and Development (LEAD) sessions over three to four months and expose them to industry experts, mentors, advisors, and accelerators to help them advance from the prototype stage to develop market-ready products and services, and accelerate their business growth.

The program culminates in a Demo Day, where participants will pitch their innovative ideas to a distinguished audience of stakeholders from the startup ecosystem and will have the opportunity to receive equity-free financial grants of up to P1 million.

This initiative aligns with Mayor Joy Belmonte’s commitment to transforming Quezon City into the startup and innovation capital of the Philippines.

Through collaboration between government and nongovernment entities, the program is seen as a driver of local job creation and meaningful innovation for economic development.

StartUp QC is Quezon City Government’s initiative established under Ordinance SP-3109, S-2022, designed to support innovative startups.

The program is backed by esteemed institutions such as the Department of Information and Communications Technology (DICT), Department of Trade and Industry (DTI), Ateneo de Manila University, Miriam College, Technological Institute of the Philippines, Thames International Business School, University of the Philippines Diliman, and startup accelerators StartUp Village, and Launchgarage.

Startup applicants must have at least one member who is a resident of Quezon City and at least 21 years old. Additionally, program aspirants must have a Minimum Viable Product (MVP) that does not duplicate ongoing programs or projects as determined by the QCGov, and must submit a video pitch of up to 5 minutes along with a business plan not exceeding 10 pages.

StartUp QC Professional Category application ran until June 27.

Some Vietnam coffee farms thrive despite drought, but may not stop espresso price hikes

July 1, 2024 | 12:03 am

PLEIKU, Vietnam — Vietnamese coffee growers have been hit hard this year by the worst drought in nearly a decade, raising concerns of pricier espressos across the world, even as some farmers keep yields healthy with clever countermeasures.

Domestic forecasts for next season’s harvest in Vietnam, the world’s second biggest coffee producer, remain grim. The Mercantile Exchange of Vietnam expects a 10-16% fall in output because of the extreme heat that hit the Central Highlands coffee region between March and early May, according to deputy head Nguyen Ngoc Quynh.

However, a return of rains in recent weeks has improved the outlook, boosting confidence among farmers and officials. But it remains unclear whether the improved weather will help boost output and drive down prices of robusta beans, the variety most commonly found in espressos and instant coffees, of which Vietnam is the world’s top producer.

“I expect the country’s output to fall by 10-15%, but my farm will increase production,” said Nguyen Huu Long, who grows coffee in a 50-hectare plantation in Gia Lai, one of the top coffee-producing provinces in Vietnam.

To protect his trees during the heatwave, he kept the soil around the plants moist by covering it with leaves. Contrary to the local practice of cutting trees after a few years to boost soil quality, he keeps his growing for decades. As a result, plants have deeper roots and broader access to underground water reserves.

Farmers in his plantation also soften the soil around plants to improve absorption of rainwater and fertilizers, said Doan Van Thang, 39.

Tran Thi Huong, a tenant farmer who works in another plantation 20 km from Pleiku, Gia Lai’s capital, resorted to using more water than usual.

Thanks to abundant reserves from canals built by local authorities, she could keep her plants sufficiently irrigated during the heatwave.

Coffee cherries are smaller than in previous years, but she expects the overall output to be unaffected. It also helped that she timely intervened with biopesticides against bugs that were more numerous than usual because of the extreme weather.

That is in line with the forecast from the US Department of Agriculture which estimates Vietnam’s next harvest would be roughly steady versus the current season’s output — far less pessimistic than domestic projections.

Whatever the impact on the harvest will be, coffee prices for drinkers around the world are likely to rise. Wholesale prices in Vietnam and London-traded robusta futures have risen to record highs earlier this year mostly after an underwhelming harvest in Vietnam and because of fears over the country’s next harvest after the drought, according to multiple traders and analysts.

Record wholesale prices have so far had a limited impact on consumer prices, with coffee inflation up by only 1.6% in the 27-country European Union (EU) in April, according to the latest Eurostat data, and 2.5% in robusta-loving Italy.

While well below price rises from a year earlier, it was higher than 1% in the March EU reading, a sign roasters may have started to pass their higher costs on consumers.

Besides, worries about Vietnam are far from over, as insufficient rains after the drought or excessive downpours before the upcoming October harvest season could further reduce output, warned a Vietnam-based trader.

The high wholesale prices may also be there to stay, as robusta demand is growing globally and farmers have boosted their leverage in the current circumstances, with many having also replaced coffee plants with pungent smelling durian, a tropical fruit experiencing huge demand in China.

“They have the financial ability to hoard and hold on to goods, so they will not be in a hurry to sell,” said Le Thanh Son, of Simexco, one of Vietnam’s biggest coffee exporters. — Reuters

Maharlika 2: This time, PhilHealth members are the victims

July 1, 2024 | 12:03 am

Remember Maharlika?

I refer to the Maharlika Wealth Fund or Maharlika Investment Fund, now formalized in Republic Act No. 11954. It, especially its original version, was met with widespread and staunch opposition, forcing the proponents to retreat and make concessions.

The proposal was eventually passed by both Houses of Congress, but what the legislators approved was different from the original version. Congress struck out the ugliest provisions found in the original bill. So, the Maharlika we have today is less monstrous than the original bill. But it is still ugly.

The most controversial, most objectionable provision of the original Maharlika was having financial institutions like the Social Security System (SSS), the Government Service Insurance System (GSIS), the Bangko Sentral ng Pilipinas (BSP), the Development Bank of the Philippines (DBP), and the Land Bank of the Philippines (LANDBANK) transfer a substantial amount of their funds to capitalize Maharlika.

That would impair the operations of the financial institutions in fulfilling their core mandates. And for SSS and GSIS, that would have meant going into uncharted waters and exposing the contributions of members to unjustified elevated risk.

But because of the ensuing firestorm, Congress excluded the SSS, GSIS, and the BSP from contributing to Maharlika’s startup fund. Sorry for DBP and LANDBANK. Consequently, DBP and LANDBANK had to seek regulatory relief from the BSP because their capital infusions into Maharlika resulted in non-compliance with their minimum capitalization requirements.

Maharlika continues to haunt us. Now, a Maharlika 2 has reared its ugly head.

This time, the Maharlika is expressed through a provision in the Fiscal Year (FY) 2024 General Appropriations Act (GAA), stating that excess fund balances of Government-Owned and/or -Controlled Corporations (GOCCs) can become the funding source for Unprogrammed Appropriations (UA).

Unprogrammed Appropriations, to quote the Department of Budget and Management, “are standby appropriations outside the approved government fiscal program….” As such, they “are not automatically allocated, and can only be released if several funding conditions are met, such as when the government… is able to collect excess revenue in the total tax revenues or any of the identified non-tax revenue sources from its revenue target, or new revenue from new tax or non-tax sources, or should foreign or approved financial loans/grants proceeds are realized.”

But unlocking the funding for the UA faces problems. The administration frowns upon increasing taxes (even refusing efficient ones, which have popular support like the sin taxes). And excess revenue from current taxation is unlikely as the Bureau of Internal Revenue (BIR), despite serious effort, is struggling to meet its collection target for 2024. Excise tax collection, for example, is below the target.

Hence, the resort to an “innovation,” which is to obtain the excess fund balances of GOCCs. This is a Maharlika redux.

GOCCs are constrained by their own charters. Some able to generate surpluses may need those funds for their future upkeep or investments to meet their goals. In other words, GOCCs have different specific characteristics, and thus a cookie-cutter approach by the National Government to extract excess funds from them is unsuitable, harsh, and inconsiderate.

And there is one GOCC whose mandate is to spend the funds it gets on its members. Surpluses should not be diverted elsewhere. We refer to the Philippine Health Insurance Corp. or PhilHealth.

But a Department of Finance (DoF) Circular (numbered 003—2024) regarding the fund balance of GOCCs argues otherwise. The DoF is being directed by the FY 2024 GAA, specifically Section XLIII (1) (d) on Unprogrammed Appropriations, to issue the implementation guidelines for the financing of UA sourced from the “[F]und balance of the GOCC from any remainder resulting from the review and reduction of their reserve funds to reasonable levels taking into account the disbursement from prior years.”

In pursuit of the above, the DoF Circular targets the excess funds of PhilHealth. The basis is that PhilHealth’s reserve fund by 2023 stood at P463.7 billion, and premium income since 2018 has substantially exceeded benefit claims and operating expenses. A further basis is that between 2021 and 2023, the cumulative unutilized government subsidy for the indirect contributors amounted to P89.9 billion. (The indirect contributors consist of indigents, beneficiaries of the Pantawid Pamilyang Pilipino Programs, senior citizens, persons with disabilities, Sangguniang Kabataan officials, individuals identified at point-of-service or those sponsored by local governments and other Filipinos aged 21 years old and above without capacity to pay premiums.)

The DoF arguments, which proceed from the above, are summarized as follows:

1. The unspent money is a benefit denied to Filipinos, and the unused subsidies have opportunity costs in terms of funding unappropriated programs.

2. The National Government, the DoF claims, “is in a better position to effectively utilize the unused subsidies for programs that directly and immediately benefits (sic) the Filipino people.

3. The National Government in the future has the flexibility to increase subsidies once PhilHealth has shown the capacity to speed up the use of its huge reserves for benefit payments.

4. Using the unutilized National Government subsidies to fund UA is a disciplining mechanism for PhilHealth “to use the funds or lose it.”

But here’s the rub: The DoF Circular is violating the law and is undermining Universal Health Care (UHC) for all Filipinos.

But let’s review Chapter III (National Health Insurance Program), Section 11 (Program Reserve Funds) of Republic Act No. 11223 (An Act Instituting Universal Health Care for all Filipinos):

“That whenever actual reserves exceed the required ceiling at the end of the fiscal year, the excess of the PhilHealth reserve fund shall be used to increase the Program’s benefits and to decrease the amount of members’ contributions.” (Underscoring mine.)

In short, the reserves PhilHealth has accumulated that “exceed the ceiling equivalent to the amount actuarially estimated for two years’ projected Program” must be used to increase benefits or services and reduce members’ contributions. The subsidies cannot be used for other purposes, like what the DoF Circular wants to do.

It must likewise be clarified that the government subsidies to PhilHealth are for the indirect contributors, mainly the poor. Thus, removing the subsidies to them is tantamount to degrading the indirect contributors.

The funds from the direct and indirect contributors are pooled to benefit everyone. The pooling of funds is an expression of solidarity. Pooled funds from the direct and indirect contributors likewise create economies of scale and strengthen government, including PhilHealth, to become a national strategic purchaser of health services. This results in reducing costs, achieving efficiency, and enhancing cost-effectiveness. In this regard, pulling out the subsidies to indirect contributors hurts everyone— not only the indirect contributors but also the direct contributors.

The DoF Circular also violates another law, Republic Act No. 11467, which earmarks revenues from sin taxes to the implementation of the Universal Health Care Act of 2019 (Republic Act No. 11223). Section 288-A of Republic Act No. 11467 stipulates that 60% of the total revenues from excise taxes on alcohol shall be earmarked for UHC, which includes PhilHealth contributions. For the tobacco excise tax, half of the revenues are earmarked for health, in which 80% of the health earmarking goes to PhilHealth.

Another law, Republic Act No. 10963 (or the TRAIN Law), mandates that from half of the excise taxes collected from sweetened beverages, 80% shall be designated to PhilHealth.

Said differently, the said laws which subsidize PhilHealth prevent National Government from using the earmarked revenues for other purposes.

To be sure, the PhilHealth leadership must be made accountable for its gross negligence and incompetence for not using PhilHealth’s substantial excess funds to increase the benefits and services for its members and reduce the members’ premium payments. But the DoF must likewise be called out for mocking existing laws, undermining PhilHealth’s mandate, and hurting the health interests of all Filipinos, all members of PhilHealth.

The DoF Circular must be exposed as a new but still ignominious Maharlika, a Maharlika 2. All members of PhilHealth, the media, and Congress must politically and legally challenge the DoF Circular and push it back.

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

ACEN to power ADB headquarters with 100% RE

July 1, 2024 | 12:03 am

AYALA-LED ACEN Corp.’s supply retail arm has signed a deal with the Asian Development Bank (ADB) to power the latter’ headquarters in Mandaluyong with 100% renewable energy (RE).

ACEN Renewable Energy Solutions will power ADB’s facilities using renewable energy from its portfolio, including solar and wind sources, it said in a statement on Sunday.

“As Asia and the Pacific’s climate bank, ADB is committed to lowering its carbon footprint. This includes sourcing electricity from renewable energy sources such as solar and wind,” said Bruce Gosper, ADB vice-president for administration and corporate management.

Lakshmi Menon, ADB director general for corporate services, said that the development bank has continued to source power from renewable energy sources since 2014 as part of its sustainability efforts.

“ADB has been instrumental in driving the growth of our renewable energy portfolio in the Philippines and around the region through sustainable financing,” ACEN President and Chief Executive Officer Eric T. Francia said.

ACEN currently holds about 4.8 gigawatts (GW) of attributable renewables capacity in operation and under construction, as well as signed agreements and won competitive tenders worth over one GW.

With this, the company said it has already effectively surpassed its original goal of reaching five GW of renewables by 2025. — Sheldeen Joy Talavera

Financial firms grappling with AI’s gifts and perils, execs say

July 1, 2024 | 12:02 am

CHICAGO — The spread of artificial intelligence (AI)-based systems offers big opportunities for financial services firms, executives say, but asset managers also face higher stakes than other consumer-facing businesses because they manage sensitive information.

For example, AI systems could be better than humans at explaining to clients why they arrived at recommendations like portfolio allocations or lending decisions, said Zack Kass, a former head of business partnerships at OpenAI. People, he said, are not good at explaining subconscious biases that could affect such decisions.

“AI should make that a ton better. The problem is, if we’re not careful, it will just make it worse,” Mr. Kass said at an investor conference staged by Morningstar last week in Chicago where the rise of AI systems was a frequent topic of discussion.

In theory AI, will simplify many routine tasks like filling out compliance forms or developing portfolios that are not so complex, leaving financial professionals more time to focus on human interactions or problems that require deeper thinking, said several investors and technology experts.

“There are some things that the machines could smooth over, and then a financial adviser could spend more time servicing their client,” said Karen Zaya, a Morningstar senior research analyst who follows investment managers’ use of technology.

But the depth of human interactions with AI will vary, she said. While AI-powered chatbots have become common for tasks like helping to choose an airline seat or to check a bank account balance, she said, the variables are much more complex for things like arranging investments in a retirement plan.

“I don’t think that’s on the agenda for the industry right now,” Ms. Zaya said. “All these firms we’ve spoken with are being very thoughtful and careful in how they implement these things. They want to be very considered.”

US regulators are seeking public comments about the use of AI by financial companies, looking to promote inclusive and equitable access to their services. Treasury Secretary Janet Yellen warned last month that the use of AI in finance could lower transaction costs but comes with “significant risks.”

The spread of AI could tempt companies to cut jobs in areas such as at call centers or in software-development facilities, but it is still likely they will need human workers to handle more complex questions, said Margaret Vitrano, portfolio manager for ClearBridge Investments.

“AI could be used to develop code, but that doesn’t mean you lay off all your developers. Maybe you use it to develop the first pass of code, and then you still need someone who’s sophisticated and knows code to look at it and say, let’s think about the user experience here,” Ms. Vitrano said.

Brenda Ingram, a Chicago-based financial adviser, said she hopes AI systems could save time and expenses on preparing things like compliance reports.

“The mundane, if you can get the AI to do it, I think we’re going to like it,” she said. — Reuters

Accelerating Asia Ventures looks to invest in 10 high-growth startups by 4^th quarter of the year

July 1, 2024 | 12:02 am

Singapore-based venture capital accelerator Accelerating Asia Ventures has officially opened applications for the 10^th Cohort of its flagship accelerator program — a milestone achievement for one of the longest running regional accelerator-VCs.

With a portfolio of over 80 startups, the flagship 100-day accelerator has helped many startups achieve significant growth. Startups accelerated have collectively raised over US$64 million in funding and seen on average a 300% growth in their business during the 100-day program.

Founded by Amra Naidoo and Craig Dixon in 2018, Accelerating Asia Ventures invests up to US$250,000 in each startup accepted into the program. Apart from the investment and the program, successful startups gain access to qualified mentorship opportunities, access to a global network of investors and industry experts, access to private portfolio investor networking events and join a thriving alumni community of over 150 founders.

Accelerating Asia Ventures works closely with angel investors, family offices and other institutional investors who are looking for diversified investment opportunities into early-stage startups. Through the accelerator program, the Accelerating Asia Ventures team works hands-on with these startups and provides opportunities to investors, benefiting both startups and investors in our network.

Accelerating Asia Ventures identifies startups with tech-based solutions, revenue and early traction; that are in high-growth, underserved Southeast Asia and South Asia markets; and are falling in the seed-pre-series A funding gap.

“Accelerating Asia Ventures is the Y Combinator of Southeast Asia, with a more relevant program for Founders in the region. After the accelerator we were better able to focus on building and scaling our business,” said Anggia Meisesari, co-founder of TransTrackID in Indonesia.

“The Accelerating Asia Ventures team helped us sharpen our messages and approach to fund-raising and to accelerate our growth. The program is tailored to the needs of each startup, so people that go through the program get maximum benefit for their stage,” added Tim Davies, co-founder of Waitrr, based in Singapore.

“Accelerating Asia Ventures successfully melds a highly skilled and passionate team who are not hesitant to share their knowledge, a smart and engaging accelerator program with useful startup resources, and a strong network of investors, mentors and alumni,” noted JT Solis, co-founder of Philippines’ very own Mayani.

“We really like the no-nonsense approach that was the key thing, and the second was the help with fund-raising. The reason we joined the accelerator was because we are first-time founders. There are a lot of things, we don’t know what we don’t know, and that is the gap we wanted to bridge with the accelerator program,” said Dirk-Jan ter Horst, co-founder of Drive-Lah.

“[While] there is a ton of generic information available about running a startup, at Accelerating Asia Ventures the focus is on immediately actionable tactics,” Project Pro Co-Founder & CEO Binny Mathews added. “It also really helps that the Accelerating Asia team is a set of people who genuinely want us to succeed so they are hustling for us every day.”

In Accelerating Asia Ventures’ accelerator program, cohorts set the goals and priorities for the week; review progress from the past week; gain insights from fellow founders and leverage the knowledge, power and value of the cohort.

There are also master-classes with mentors, each of which are tailored to address the needs of the cohort, from SEO deep dives to financial modeling and capital-raising. These are coupled with customized one-to-one sessions with entrepreneurs-in-residence for deep dives on fund-raising strategy, business models, growth loops and product, and storytelling and pitch coaching designed to better communicate startups investor value proposition.

The accelerator program also offers operational support to ensure startups from all markets across the region have solid company and governance practices to make them international investor-ready.

The program also connects and introduces cohorts to active angels ready to invest now and later-stage VCs to shore up opportunities for follow-on investment.

For any startup looking to apply to the program, a webinar is set on July 3, where Accelerating Asia Ventures’s Co-Founder and General Partner Amra Naidoo will answer questions in an “Ask Me Anything” session. Interested participants may visit https://www.acceleratingasia.com/events/ama-with-amra-naidoo to register.

The application deadline for Cohort 10 is July 5. Interested applicants may submit by visiting https://www.acceleratingasia.com/programs/accelerating-asia-flagship-program.

Rustan’s: Taking care of men (and local designers)

July 1, 2024 | 12:02 am

WHILE Father’s Day has come and gone, Rustan’s still has a lot of treats for daddies.

At a belated Father’s Day event on June 27 (Father’s Day was on June 16), the luxury retailer styled politicians and former basketball players Franz Pumaren and Mikee Romero (as well as restaurateur Rikki Dee). The styling event was also a way to launch the new Men’s Floor, at the second floor, as part of the ongoing renovations of Rustan’s flagship Makati store. The new beauty floor on the first level was launched just last year, and there will be more to come.

Jackie Avecilla, Head of Marketing for Rustan’s pointed out the new brands occupying the men’s floor. While local designer RJ Santos’ brand, Randolf Clothing, was onboarded a few years ago, his fellow Filipino designers Kelvin Morales, Viña Romero, and Christian Edward Dalogaog (through brand Ched Studio) have also joined the roster. “Our goal is really to highlight these local designers. At the end of the day, they’re really very artistic and creative. What better way to highlight them than here?,” said Ms. Avecilla.

She also pointed out the various new brands from around the world that they have started to carry in the store, such as Canadian brand Psycho Bunny and American brand Faherty. Not exactly household names, but, “The goal is to launch many more niche brands. A lot of men don’t like wearing the common ones that you see — and fast fashion,” she said. “The pieces are unique; they’re also very limited. You’re sure that what you’re wearing is one-of-a-kind.”

While Ms. Avecilla acknowledges that a lot of Rustan’s customers are women (as evidenced by the large beauty floor below), there’s always room for the men. “This used to be a women’s section also,” she said about the second floor. “But the space was carved out to now be a men’s section. We know that men, of course, they want to see collections that are really for them. Yes, our shoppers are predominantly women, but we do realize that there’s a lack of men’s fashionable brands in the Philippines.”

The next stage of Rustan’s renovations will be seen in the Home department. “We believe in Filipino talent; not just in fashion, but also in home. That would be next. This stems from the desire of our founders, where they really took pride in local artisans and craftsmanship,” said Ms. Avecilla. Designer Kenneth Cobonpue already occupies a space upstairs; more local designers and brands will follow.

“Where else can you find such good talent?,” she said. — Joseph L. Garcia

US food safety regulators expand bird flu testing in milk products

July 1, 2024 | 12:02 am

THE US Food and Drug Administration (FDA) has begun testing more dairy products for evidence of the bird flu virus as outbreaks spread among dairy herds.

More than 120 dairy herds in 12 states have tested positive for bird flu since March, according to the US Department of Agriculture (USDA). Federal officials have warned that further spread among dairy cows could heighten the risk of human infections.

The risk to the general public from bird flu remains low, federal officials have said, though it is higher for workers on dairy farms, who should wear personal protective equipment to reduce the risk of infection.

The focus of additional testing, which will sample 155 products, is to ensure that pasteurization inactivates the virus, said Don Prater, acting director of the FDA’s Center for Food Safety and Applied Nutrition, on a call with reporters.

Prior FDA testing of 297 retail dairy samples came back negative for evidence of the virus. The agency continues to strongly advise against consumption of raw milk products, Mr. Prater said.

No infected dairy cow herds are known to be contributing to the raw milk supply, said Eric Deeble, USDA’s acting senior adviser for its bird flu response.

More than 690 people who were exposed to infected or suspected infected animals have been monitored for flu symptoms, and 51 people who developed flu-like symptoms have been tested, Demetre Daskalakis, director of the US Centers for Disease Control and Prevention’s (CDC) National Center for Immunization and Respiratory Diseases, said on the press call.

Three dairy farm workers have tested positive for the virus with mild respiratory or conjunctivitis symptoms, and all have recovered.

The CDC is providing technical support to the state of Michigan as it begins serological testing of farm workers for signs of prior infection by the virus and will ensure the testing can be completed in other states, Mr. Daskalakis said.

The USDA is conducting research on how dairy cattle contract the virus through contact with infected milk or respiratory droplets, Mr. Deeble said.

The development of a bird flu vaccine for dairy cows “is going to take some time,” and the agency hopes to eradicate the virus in dairy cattle without the use of a vaccine, Mr. Deeble said.

Agriculture Secretary Tom Vilsack told Reuters on June 12 that the agency is in talks with two dozen companies on the development of a bird flu vaccine for cattle. — Reuters

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