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Most Japan firms see no need to follow the US with tariffs on China

REUTERS

 – Most Japanese companies see no need for their government to follow the US in raising tariffs on Chinese imports, saying excessive production capacity in China’s industrial sector does not affect them, a Reuters survey showed on Thursday.

US President Joe Biden last month unveiled steep tariff increases on an array of Chinese goods including electric vehicles, batteries and semiconductors, criticizing Beijing for generous subsidies and policies that he said help flood global markets with cheap goods.

The European Union has also slapped hefty duties on EV imports and the Group of Seven major economies, which includes Japan, last week echoed concerns about what they called harmful non-market practices by China.

But 61% of respondents to the survey, conducted June 5-14, said there was no need for Japan to embark on similar measures. The rest said Japan should. Around 53% said China’s excessive production capacity had little to no impact on their business.

“It could lead to an escalation in measures and countermeasures against each other and economic conditions will get worse,” a manager at a chemical company wrote in the comment section of the poll.

In response to the tariffs, China has accused the United States of subverting its own free trade principles and has said the G7 statement lacks factual basis.

The survey of 492 companies was conducted for Reuters by Nikkei Research, with firms responding on condition of anonymity. Roughly 230 companies responded.

The companies were also asked whether they think a pledge by Prime Minister Fumio Kishida to have wages consistently climb faster than inflation was attainable but only 7% did.

“I’m afraid there are many mid-sized and small companies that just can’t make ends meet if they implement wage hikes that keep pace with inflation,” a manager at a wholesale company wrote.

Half said the goal was not attainable while 43% said it was hard to tell.

As a temporary measure to cushion the economic blow from rising inflation, Mr. Kishida’s government is cutting annual income tax by 30,000 yen ($190) and the residential tax by 10,000 yen for each taxpaying citizen who can also claim the same amount in tax breaks for dependents and a spouse with limited income.

But 69% of the companies in the poll saw the measure as having little or no effect in stimulating consumer spending.

On domestic politics, 54% of the companies expect Mr. Kishida to be replaced as prime minister by the end of the year in the wake of a fund-raising scandal.

The ruling Liberal Democratic Party (LDP) has said more than 80 of its lawmakers received proceeds from fund-raising events that were kept off the books. Prosecutors have indicted three lawmakers.

An Asahi newspaper poll conducted last week showed support for Mr. Kishida’s government fell to 22%, down 2 percentage points from a month ago and the lowest since he took office in October 2021.

Former Defense Minister Shigeru Ishiba was corporate Japan’s top choice for the country’s next leader, with 24% of firms deeming him a suitable successor. Economic Security Minister Sanae Takaichi was next with 14%.

A security maven, Mr. Ishiba regularly ranks high in voter surveys on future prime ministers but is less popular with fellow LDP lawmakers whose backing is necessary to win the party’s leadership election.

About 80% of companies said they want the LDP and junior coalition partner Komeito to remain in power if Mr. Kishida calls a snap election this year.

If the coalition government were to lose power, “I fear that political confusion might develop into economic confusion and the weakening of Japan’s competitiveness,” a manager at a food company wrote.

Only 6% of the companies surveyed wanted a government led by the Constitutional Democratic Party of Japan, currently the largest opposition party. – Reuters

Canada to ban open-net salmon farms in British Columbia waters by 2029

STOCK PHOTOS | Image by Barbara Jackson from Pixabay

Canada will ban open-net salmon farms off the coast of British Columbia by the middle of 2029 in order to help protect dwindling wild Pacific salmon populations, the federal government said on Wednesday.

Salmon are a culturally and ecologically significant species on Canada’s west coast, but more than half of the 9,000 distinct populations in British Columbia are in a state of decline, according to the Pacific Salmon Foundation.

The province has dozens of open-net salmon farms, which campaigners say can spread lice and disease to wild fish. In 2019 Liberal Prime Minister Justin Trudeau pledged to phase out open-net farms by 2025.

In a statement released on Wednesday, Fisheries and Oceans Minister Diane Lebouthillier said existing salmon aquaculture licenses will be renewed for five years to ensure a successful transition, but with stricter conditions around managing sea lice on farmed fish, reporting requirements for the industry, and monitoring of marine mammal interactions.

“It’s great to see the federal government commit to concrete deadlines, even though they do not meet the government’s original commitment to transition from open-net pens by 2025 or the urgency of the moment given the dire state of many wild salmon runs,” said Kilian Stehfest, marine conservation specialist for the David Suzuki Foundation.

Salmon farming supports 7,000 jobs in coastal communities and contributes about C$1.5 billion ($1.09 billion) annually to the provincial economy, according to the BC Salmon Farmers Association.

A number of First Nations and coastal communities rely on open-net salmon farms for their livelihood and the government intends to release a draft salmon aquaculture transition plan by the end of July.

From July 1 this year only closed-containment systems on land or in the sea will be considered for new salmon aquaculture licenses.

Ms. Lebouthillier said the government recognized closed-containment systems would be a more expensive investment and planned to issue nine-year licenses to successful applicants to ensure greater certainty.

While some Indigenous communities in British Columbia have been calling for an end to open-net salmon farms, others criticized Ottawa for lack of adequate consultation and the speed of the phase-out.

“Five years to transition to land-based or closed-containment in my territory is the same as shutting our operations down,” said Hereditary Chief Hasheukumiss of the Ahousaht First Nation on the west coast of Vancouver Island at a press conference.

The British Columbia government urged Ottawa to support local communities through the transition period by funding new economic opportunities and creating good jobs.

“We recognize the importance of meaningful and thoughtful engagement with First Nations partners and communities as we move forward, in order to ensure that economic impacts are mitigated,” federal Natural Resources Minister Jonathan Wilkinson said in a statement. – Reuters

Globe earns spot on Fortune Southeast Asia 500 list

Inaugural regional list includes largest companies in the region

Globe, a leading telco and expanding technology company in the Philippines, has earned a spot on the inaugural Fortune Southeast Asia 500 list, cementing its stature as one of the largest companies in the region.

Globe ranked 111, with revenues at $3.240 billion and profits of $441 million as of end 2023. It joins 38 companies from the Philippines that made the list.

“Globe’s inclusion on the first-ever Fortune Southeast Asia 500 list is an affirmation of our success in serving our customers guided by our purpose, delivering products and services that impact lives and solving the pain points of Filipinos. The company grew serving millions of customers locally and now abroad. Amid the new digital landscape, we envision to continue growing through responsible use of technology to fill in the societal gaps and allow our country to reach economic prosperity,” said Ernest Cu, President and CEO of Globe.

“To uplift the nation is our North Star. This recognition inspires us to keep innovating to serve our customers as their needs evolve,” he added.

Globe has been the country’s mobile leader based on revenue market share for over seven years. It has 61.3 million subscribers as of Q1 2024, including 58.8 million mobile subscribers, 1.7 million home broadband customers, and 797,000 landline subscribers.

It employs over 7,200 employees and provides business to over 414,000 load retailers, distributors and business partners across the country as of the first quarter of this year.

Fortune’s new ranking indexed companies by total revenues as of Dec. 31, 2023. It said the list ”reflects the rise and fall of energy markets, multinational supply chains and tourism in some of the world’s most dynamic economies.”

“The Fortune Southeast Asia 500 reflects a dynamic and fast-changing region — one whose core economies are growing notably faster than those of Europe or the US. This is partly due to Southeast Asia taking on far greater significance in the global economy, not least because a host of Global 500 multinationals have shifted more of their supply chains to Southeast Asian nations,” says Clay Chandler, executive editor, Fortune Asia.

Fortune said companies on the regional list “join an elite group of firms recognized under the Fortune 500 franchise,” which includes Fortune 500, Fortune Global 500, Fortune Europe 500, and Fortune China 500.

Learn more about Fortune Southeast Asia 500 here. To know more about Globe, visit www.globe.com.ph.

 


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BingoPlus Foundation conducts flu vaccination, supports Palarong Pambarangay in Rizal

While flu-like illnesses may be on the rise due to the rainy season, getting vaccinated helps multiply the fun by providing Filipinos with healthier days ahead.

Health and wellness important during the rainy season

In the Philippines, rainy season is flu season. As PAGASA (Philippine Atmospheric, Geophysical, and Astronomical Services Administration) officially declared the start of the wet season in the country, the Department of Health (DoH), on the other hand, is monitoring cases of influenza-like illnesses, as it may increase during this period.

In response to this health challenge, BingoPlus Foundation, the social development arm of DigiPlus Interactive Corp. (DigiPlus) — one of the fastest-growing digital entertainment companies in the country — recently held its Barangay Bigayan medical mission program in Rizal Province.

BingoPlus Foundation provides vaccination and preventive healthcare in barangays to combat flu and other illnesses.

The Foundation rolled out free flu vaccination to 550 residents across Barangay Sta. Cruz in Antipolo City, aiming to save more lives, since flu vaccines can help protect against serious outcomes, such as hospitalization and death, especially among the immunocompromised. Flu, also known as influenza, is a contagious illness caused by influenza viruses. The DoH recommends an anti-flu shot yearly.

“We are conducting vaccination programs in different parts of the country to not only augment the DoH’s efforts to mitigate the spread of diseases but to also provide communities with better quality of life. This is us helping multiply the fun in communities by providing Filipinos with healthier days ahead,” said Andy Tsui, Digiplus president and Bingoplus Foundation chairman.

Barangay Sta. Cruz of Antipolo City, together with BingoPlus Foundation and ArenaPlus, opened the SK Palarong Pambarangay basketball league, promoting health, wellness and good sportsmanship across its 55 sitios. The event was graced by Antipolo City District 1 Board Member Randy Puno, Councilor Susan Garcia Say, Councilor Agnes Oldan, Barangay Sta. Cruz Captain Cirilo Tenorio, Sangguniang Kabataan Chairperson Kent Masula and BingoPlus Foundation Executive Director Angela Camins-Wieneke.

To further support the health and wellness of residents in Rizal, ArenaPlus, DigiPlus’s 24/7 sports betting app, supported the SK Sta. Cruz Palarong Pambarangay in the same barangay, witnessing the opening of its basketball liga. These efforts aligned with one of the Foundation’s advocacy pillars, Bingo sa Kalusugan, providing accessible healthcare and sports programs to communities.

 


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IT-BPM industry likely to hit 7% goal

THE INFORMATION TECHNOLOGY and business process management (IT-BPM) industry is on track to achieve a 7% growth in revenue and headcount by the end of 2024, an industry group said.

Jack Madrid, president of the IT and Business Process Association of the Philippines (IBPAP), told reporters on Wednesday that the industry anticipates around 6.5-7.5% growth in headcount and revenue in 2024.

“In the next 60 to 90 days we will have a much clearer picture of the 2024 performance, but from all indications, I think it’s safe to say we will grow around 7% for both headcount and revenue,” he said in an online briefing.

However, Mr. Madrid noted that achieving 7% growth this year meant the industry would only be hitting the “baseline scenario” and not the aggressive targets set under the IT-BPM Industry Roadmap 2028.

The industry ended 2023 with 1.7 million direct jobs and $35.5 billion in export revenues. It is projected to hit 1.84 million in headcount and $40 billion in revenues in 2024 under the roadmap.

If the 7% growth projection is achieved, the industry will end the year with 1.82 million in headcount and around $38 billion in revenues.

“In our roadmap projections, we have three different scenarios: the aggressive scenario, the baseline scenario, which is in the middle, and the constrained scenario, which is the most conservative,” Mr. Madrid said. “What we are confident to achieve, obviously, are the baseline scenarios.”

Under the roadmap, the industry is targeting to reach 2.5 million jobs and generate $59 billion in revenues by 2028.

Asked why the industry is optimistic about achieving its growth targets, Mr. Madrid said the demand for Filipino IT-BPM workers remains strong.

“The number one reason is the same: there is still a very high demand for the Filipino workforce to continue delivering global business services to our global customers,” he said.

Mr. Madrid said that cost optimization in global companies is also driving the demand for outsourcing.

“Offshoring and outsourcing are ways to address cost optimization, so delivering more work from the Philippines or India still represents a way of cost optimization for global or North American customers,” he said.

The Bangko Sentral ng Pilipinas projects service exports to grow to $55.1 billion and $60.5 billion in 2024 and 2025, respectively, while it projects business process outsourcing revenues to grow 7% annually in 2024 and 2025.

“We are a world capital in the IT-BPM industry, which is why when our global customers decide where to offshore, they will always choose between India and the Philippines and maybe some other options outside of India and the Philippines,” Mr. Madrid said. — Justine Irish D. Tabile

PHL may grow below target until 2028

THE BANGKO Sentral ng Pilipinas (BSP) has kept its benchmark rate steady at a 17-year high of 6.5% since October 2023 to tame inflation. — REUTERS

THE PHILIPPINE ECONOMY may grow slower than the government’s targets this year through 2028, as high interest rates weigh on consumption, according to a global think tank.

“High interest rates constrict domestic demand, so that’s one of the reasons why we’re a bit more bearish on the [Philippine] economy,” Andrew J. Staples, Asia-Pacific head of thought leadership and public policy at the Economist Impact, told reporters on the sidelines of the forum.

Mr. Staples projected the Philippine economy will expand by 5.4% this year, below the government’s 6-7% gross domestic product (GDP) growth target for the year. It will also be a tad lower than the revised 5.5% GDP expansion in 2023.

The Bangko Sentral ng Pilipinas (BSP) has kept its benchmark rate steady at a 17-year high of 6.5% since October 2023 to tame inflation.

When asked if the BSP is likely to wait for the US Federal Reserve before easing, Mr. Staples said: “It’s so big and powerful that everybody sort of follows its wake.”

He said the Philippines is one of the fastest-growing economies in the region, but “interest rates as a result of inflation have been holding back growth somewhat.”

For 2025, Mr. Staples said Philippine GDP is expected to expand by 6.4%, slightly lower than the government’s 6.5-7.5% target.

He projects Philippine GDP growth to ease to 5.6% in 2026 and 5.9% in 2027 and 2028, also below the government’s 6.5-8% goal through 2028.

To accelerate growth, the Philippine government must focus on policies to bolster foreign direct investment (FDI) and improve domestic consumption, he said.

Mr. Staples said risks to the growth outlook include mass early retirement if the government pushes through with the military pension system reform.

Ongoing tensions with China may also cause delays in the country’s infrastructure development, Mr. Staples said. The Philippines last year dropped China as a funding source for two key railway projects due to slow negotiations.

TRUMP PRESIDENCY
The possible re-election of former US President Donald J. Trump may pose some risks to the Philippines’ relationship with the US.

“There would be some impact particularly on trade and security but not as pronounced as it would be for other countries,” Mr. Staples said during the Management Association of the Philippines (MAP) event on Wednesday.

He gave the country a “quite low” score of 31.60 in the Trump Risk Index, which measures the impact of a Trump presidency on other economies. A score of 100 means a country is “most exposed” while zero signals least exposure.

Mr. Staples said major US trading partners are likely to face higher tariff and trade restrictions, tighter border and security controls, and security burden-sharing under a Trump presidency.

If elected, he said Mr. Trump could also end the US’ participation in the Indo-Pacific Economic Framework for Prosperity (IPEF), a 14-member supply chain agreement with participating countries like the Philippines, Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore, Thailand, and Vietnam.

“Trump will probably kill IPEF,” Mr. Staples said. “[He] is all about transaction, so he doesn’t want to be tied down by big trade agreements and so on.”

The US presidential elections will be held on Nov. 5.

ROOM TO CUT
Meanwhile, HSBC Global Research said the BSP may have room to cut ahead of the US Federal Reserve amid the improving current account deficit and FDI outlook.

“By keeping its ‘less hawkish’ stance, we expect the BSP to stand in contrast to the Fed’s hawkish pause, suggesting that the BSP won’t necessarily need to wait for the Fed,” HSBC economist for ASEAN (Association of Southeast Asian Nations) Aris D. Dacanay said in a report.

“It will be a bold move by the central bank, but we think the BSP finds confidence in something market players may have been sleeping on — the economy’s fundamentals.”

HSBC noted factors that give the Philippine central bank “confidence” to cut ahead of the Fed, such as the faster-than-expected recovery in the current account deficit.

“The Philippine economy is known for its robust consumption and overseas remittances. And perhaps, this may be the reason why many may have overlooked the fact that the Philippines’ external fundamentals are improving faster than what many had anticipated,” Mr. Dacanay said.

The BSP projects the current account deficit to settle at $4.7 billion this year, equal to 1% of gross domestic product (GDP).

HSBC also said that FDI growth also makes the case for the BSP to cut ahead of the Fed.

Separate BSP data showed that FDI net inflows jumped by 42.1% to $2.969 billion in the first quarter from $2.09 billion a year ago.

Mr. Dacanay also noted the Philippines is the only ASEAN economy whose “real policy rate differential” with the US central bank exceeded pre-pandemic levels.

“This differential could widen further if the rice tariff rate cut pushes through. This would be a substantial decrease in inflation, which, in turn, would widen the Philippines’ real policy rate differential with the Fed. If there is one policy that we suggest keeping an eye on, it would be this. Its quick implementation could set the stage for the BSP to break free, even partially, from the Fed.”

However, HSBC said it is still holding on to its expectation that the BSP will only begin policy easing by the fourth quarter.

“We still don’t think the BSP will cut ahead of the Fed based on our baseline scenario of the Fed cutting as early as September this year,” Mr. Dacanay said. — B.M.D.Cruz and L.M.J.C.Jocson

Gov’t urged to boost education spending as students fare badly in latest PISA study

Students answer test questions at a state high school in Manila. — REUTERS

By John Victor D. Ordoñez, Reporter 

THE PHILIPPINE government should boost spending on its public education system, arts and technology, as well as improve on-the-job training programs for students after a global study found Filipino students among the worst in the world in creative thinking, according to economists and education experts.

In a study by the Organization for Economic Cooperation and Development (OECD), the Philippines ranked 63rd out of 64 countries in a 2022 global assessment that ranked 15-year-old students worldwide in producing and evaluating original ideas that would translate into effective solutions.

“It is time to seriously consider a comprehensive financial reform program in the whole education sector towards one that places a premium on foundational basic education and redistributes more funds to poor regions that sorely need to enhance education quality,” Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila University, said in a Facebook Messenger chat.

“Since learning is cumulative, this fundamental weakness in education will make our workers unproductive and unskilled, thus reducing our chances of reaching upper middle-income status.”

The government of President Ferdinand R. Marcos, Jr. is aiming for the Philippines to reach upper middle-income status by 2025. The Philippines is currently classified as a lower middle-income country.

IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa said the government should invest more in arts and culture, science, and technology to spur creative thinking in Filipino students.

“Creativity is both cause and effect of a progressive society and the state has a key role in fostering or suppressing this,” he said in a Viber message. ‘Our education system has to be at the forefront of pushing for all the factors needed for creativity, innovation and development.”

Filipino students got an average score of 14 on creative thinking, according to the 2022 Programme on International Student Assessment (PISA) Volume III. The Philippine score was way below the global average of 33, and only better than Albania which had a score of 13.

Singapore topped the list getting a score of 41, with South Korea and Canada trailing with a score of 38.

Maria Ella Calaor-Oplas, an economics professor who specializes in human capital development research at De La Salle University, said developing on-the-job training programs that focus on innovation and critical thinking would better prepare students to enter the workforce.

“I believe that we still confine education in a box. Our education should take into consideration that children have different gifts and that they should not be assessed according to common standards,” she said in a Facebook Messenger chat.

“We see education as something that can be assessed using exams, recitation, and other factors taken inside the classrooms.”

In the PISA’s 2022 assessment for student performance in mathematics, reading and science, Filipino students were among the world’s weakest in those subjects, ranking 77th out of 81 countries and performing worse than the global average in all categories.

On the other hand, the Philippines placed 22nd out of 111 countries in the 2022 English Proficiency Index by Education First.

Terry L. Ridon, a public investment analyst and convenor of the think tank InfraWatch PH, said the government must conduct a comprehensive review of the basic education system to address these learning gaps.

“It will take more than significant spending to improve our results,” he said in a Facebook Messenger chat. Government should continue to review its basic education curriculum and work on how to improve results.”

Senator Aquilino Martin D. Pimentel III earlier this month called on the government to upgrade teacher education training institutions to increase its pool of licensed teachers and raise the quality of education.

The government had allocated P924.7 billion for education in this year’s P5.768-trillion national budget, with the Department of Education receiving P758.6 billion. Under the Constitution, the government must prioritize funding the education sector.

The Second Congressional Commission on Education (EDCOM II) is prioritizing the internationalization of higher education and improving research productivity this year, EDCOM II Executive Director Karol Mark R. Yee told a Senate hearing in February.

EDCOM II and the Philippine Institute for Development Studies said in a report in May that there is a “severe underinvestment” in the welfare of very young children in the Philippines, causing their early education to suffer.

The government only spends about P3,870 per child for health, compared with the $150 (P8,809.95) that other lower and middle-income countries spend on children’s health, the report showed.

Philippines slips in WEF Energy Transition Index

SOLAR PANELS are seen on the roof deck of a parking building in Quezon City, April 18, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINES dropped 11 spots in an index that measures countries’ energy transition efforts, reflecting the slowing global momentum amid increasing uncertainty.

The Philippines ranked 105th out of 120 countries in the World Economic Forum’s (WEF) Energy Transition Index (ETI), from 94th in 2023.

The Philippines’ latest ranking was its lowest since 2015 when it ranked 87th in the ETI, which analyzes a country’s current energy system performance and enabling environment for energy transition.

Philippines falls in Energy Transition IndexIt scored 48.4% on a 0% to 100% scale, lower than 50.2% last year. This is below the global average score of 56.5% and emerging and developing Asia’s average score of 53.9%.

European countries topped this year’s index led by Sweden with a score of 78.4, followed by Denmark (75.2), Finland (74.5), and Switzerland (73.4).

Among the emerging and developing Asian countries, the Philippines had one of the lowest rankings, only ahead of Bangladesh (109th), Pakistan (113rd) and Mongolia (116th).

China had the highest ranking among Asian countries at 17th place, followed by South Korea (23rd), Japan (26th), Vietnam (32nd), Malaysia (40th) and Indonesia (54th).

“Ensuring equitable access to energy is a critical issue in this region, characterized by limited rural electricity access, affordability challenges, extensive energy subsidies and energy prices not returning to pre-pandemic levels,” the WEF said.

The WEF noted this year saw the highest global average scores in the history of the energy transition index, “with modest improvements in system performance of about 0.2% and strong progress in transition readiness, with a growth of 2%.”

“From 2015 to 2024, the global average scores for the ETI have consistently increased, driven by improvements in both system performance and transition readiness,” the report read.

However, WEF said the overall pace of energy transition has slowed worldwide, due to “economic volatility, heightened geopolitical tensions and technological shifts.”

“We must ensure that the energy transition is equitable, in and across emerging and developed economies,” Roberto Bocca, WEF’s head of the center for energy and materials, said in a news release.

“Transforming how we produce and consume energy is critical to success. We need to act on three key levers for the energy transition urgently: reforming the current energy system to reduce its emissions, deploying clean energy solutions at scale, and reducing energy intensity per unit of GDP (gross domestic product),” he added.

The latest annual edition of the report, published in collaboration with Accenture, used indicators such as energy access, energy affordability, economic development, supply, resilience, reliability, energy efficiency, decarbonized energy, clean energy, regulation and political commitment, finance and investment, education and human capital, innovation, and infrastructure.

Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said the Philippines still has limited innovation and research on low-carbon technology.

“Government should partner with other nations which have advanced low carbon research in order to develop our knowhow in this field,” he said in a Viber message. — S.J. Talavera

Panlasang Pinoy: Influencing homeland tastes from beyond the seas

IF ONE searches for a Filipino recipe on Google, chances are you’ll find Panlasang Pinoy’s website. Sure, cookbooks are available, but as the world goes increasingly digital, so have our references. Vanjo Merano, the website’s founder, has been at it since 2009, making him one of the first to send out Filipino recipes in the digital space.

Through our multiple searches (in writing this story, we realized that we had bookmarked Mr. Merano’s recipes for humba, a pork and salted black beans dish; and sago at gulaman, a Filipino sugar-based drink), we neglected to click on Mr. Merano’s video links, which led to his YouTube channel. We had zero idea on what the person behind the recipes was like (turns out he was a fit 45-year-old man; not the Filipino lola in our internal voiceover), and that he had 6.97 million subscribers on YouTube.

We met Mr. Merano during his introduction as another ambassador of instant food brand Maggi, under Nestle Philippines. Mr. Merano joined Maggi and media guests on a tour of their vegetable gardens at the Department of Agriculture – Bureau of Plant Industry (DA-BPI) center in Los Baños as part of their Sarap Sustansya advocacy campaign on June 5. In a partnership with the DA-BPI, Maggi has helped establish community gardens, with 14 baranggays as beneficiaries in Los Baños, Laguna, alone (they have others around the country). During the tour, the ladies of Brgy. Mayondon showed off crops like squash and beans. In another segment of the program, Mr. Merano helped in the harvest and cooked the vegetables in new ways (we’ve never had pinakbet empanada before), in a way teaching the ladies of the barangay how to stretch the vegetables to create more income (in case they decide to sell some of their produce).

Raine Calma, Service Pillar Head for Nestlé Cream, Carnation and Maggi told BusinessWorld about the partnership with Mr. Merano, “You search anything, a Pinoy a recipe, it’s always his website.”

“Maggi, as a leading culinary brand, (we’re looking for) credible authorities who can help us shape the landscape of Philippine cuisine,” she said in a mixture of English and Filipino. “It’s part of that whole vision that we need an arsenal of creators who are credible in their own fields.”

In a related event on June 7, Maggi and Nestle Cream unveiled their new roster of ambassadors,  including restaurateur-chef Myke “Tatung” Sarthou, author of the Simpol Young Chef’s Cookbook*; award-winning pastry chef, dessert connoisseur and Nestlé Homebakers Club expert resource chef Jackie Ang Po; Lalaine Manalo of Kawaling Pinoy; actor and cooking enthusiast David Licauco; actress Barbie Forteza; and Nestle Kitchen Studio Creators Seth Alonzo, Nica Soledad, Sam Bawasanta, and Trish Chua. Mr. Merano joins this roster along with actress Judy Ann Santos-Agoncillo, and comedienne Melai Cantiveros-Francisco.

While Mr. Merano admits that he was once an ambassador for a rival instant food brand, he said, “Our stars aligned. Our goal is the same: to promote nutritious food dito sa (here in) Pilipinas.”

PANLASANG PINOY
Mr. Merano’s website is going on to be one of the best archives of Filipino recipes, and it was all due to bad food. He and his family moved to the US in 2006, and he started the website, then the YouTube vlog, in 2009. In Chicago, “I tried one Filipino restaurant — that taste did not resonate.”

He tried another. “Ito na iyong pinaka-masarap dito? (This the tastiest here?)”

Nakakahiya sa Pinoy, kung nire-represent natin iyong lahi natin, iyong food natin, like this (it’s embarrassing for Filipinos, if we represent our race, our food, like this),” he said.

Working in the IT field, since he designed websites at a part-time job, he decided to document his own recipes online. “It was more than a hobby: I wanted something to happen. I want to share my recipes so that people will try this, and they can cook Filipino food for Filipinos (first), so they can serve it to their non-Filipino friends who visit their homes.

“Eventually, non-Filipinos, when they search for recipes, they see it, and they try it,” he said.

He’s an IT professional, but the recipes weren’t guesswork. He said that his mother had been a caterer, and he had been cooking since he was 12. “I watched her cook a lot. Mahilig akong kumain (I loved to eat). That’s what sparked my curiosity. I wanted to make menudo, which is my favorite food, and sinigang.”

His recipes are also based on trial-and-error. He goes on a lot of trips to the Philippines, and he visits multiple restaurants to get a taste of what he likes. After that, he forms his recipes according to what he liked, and of course, gets advice from his mother. In another step, he reformulates them to the baseline — a good recipe without frills, extra steps, and sweat. “I want people to not get intimidated. I want to present the simplest form, and I want to spark their creativity as well,” he said.

Mr. Merano is part of the Filipino diaspora, and in a strange turn, his work abroad is influencing the tastes of the Filipinos still in the homeland (that is, if we take it from the Filipinos who look up and replicate his recipes). “I also am surprised. That’s pride for me, to represent Filipino cuisine. I don’t think that it matters that I’m there because I’m Filipino. I was born here. That’s how I feel. Anything that I like, in terms of making dishes, when I imagine it — I just close my eyes, and pretend that I’m in that location.

“Physical lang naman ang location ng US. Your heart, your mind, is still in the Philippines.” — Joseph L. Garcia

* https://tinyurl.com/mwn982sf

Taylor Swift just proved the power of Greggs

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On Michelin stars, food awards, and fast food

By Howard Chua-Eoan

WHEN you can pay for any number of famous chefs to cater your economy-shaking concert tour, but you choose a takeout chain instead…

Taylor Swift’s decision to pick Greggs — the United Kingdom’s (UK) beloved bakery-turned-takeaway franchise — to feed her team after a gig in Edinburgh last week set me thinking about the nature of eating out. Not that I need much of an excuse — I rarely eat at home. The timing was provocative: Several prominent events ranking the best restaurants in the UK, US, and around the world happened recently. Greggs — with 2,500 branches (as well as food trucks) across the country — wasn’t among the nominees.

The ones that were say more about the politics of these lists than the cuisine.

At ceremonies in Las Vegas last week, Barcelona’s Disfrutar came out on top of the World’s 50 Best Restaurants, an annual, highly competitive roster with undertones of patriotism and regionalism in its celebration of global cuisine. Indeed, four other Spanish restaurants were on the list: Asador Etxebarri, outside Bilbao (No. 2), Diverxo in Madrid (No. 4), Quique Dacosta, down the coast from Valencia (No. 14), and Elkano on the Basque coast (No. 28).  Two British restaurants — both in London — made the cut: Kol in Marylebone (No. 17) and Ikoyi, on the Strand (No. 42).

Only two American entries were in the 50: Single Thread in Healdsburg, California (No. 46), and Atomix in my hometown across the Atlantic, New York (No. 6). The entire US was matched by Hong Kong, which had Wing (No. 20) and The Chairman (No. 26), and outclassed by Mexico City (with three restaurants), Lima (three), Bangkok (three), and Paris (four).

This doesn’t mean the rest of the UK and US culinary scene is mediocre. The World’s 50 Best lends itself to these kinds of parochial perspectives because restaurants are contained within borders — and thus have native-born cheering sections. (Most who vote for these awards are chefs, restaurant owners, and food writers, who, of course, have parochial interests.) Out of these come collaborative efforts to promote compatriots in your-turn-this-year, my-turn-next campaigns. For many, national representation — which benefits tourism and local business — is almost as important as culinary innovation. British and American restaurants haven’t quite figured out how to hang together to game the system.

Culinary politics is different within the UK and US. On Monday, Britain’s National Restaurant Awards put out its annual ranking of the UK’s top 100 — 48 were in London, including Ikoyi (No. 10) and Kol (No. 49), also in the World’s 50 Best. The NRA (an unfortunate echo of a more notorious non-culinary organization) consciously makes forays beyond the capital’s gravitational pull, but the sheer size and convenience of the metropolis keeps its restaurants not just in the top ranks but dominating the entire list. This year, the Ledbury in London took over the top spot from Ynyshir, the Welsh wonder that held the first position for two years in a row.

In the US, James Beard Awards solution to what would have been the predominance of the strongholds of New York, Chicago, and San Francisco is twofold: One is to actively nominate smaller restaurants outside of the big cities to the most prestigious national awards and to recognize the top kitchens in 12 regions (from states like California, Texas, and New York to regional agglomerations like the Midwest, South and so on). It’s a heartwarming judiciousness but also results in the impression that the US has no real culinary center of gravity.

One other thing: A vibrant industry of public relations consultants fuels the overt and subtle campaigns of contenders in the World’s 50 Best, the National Restaurant Awards, and, to a lesser extent, the Beard Foundation honors. When I attend these galas, I’m often confused whether I’m meeting a chef or someone managing his or her PR. You must maneuver through lots of cogs in this machinery of influence before you get to eat.

As a foodie, I like to root for my favorite chefs and restaurants. As a local in both London in New York, I cheered for my friend Adejoke Bakare when her Fitzrovia restaurant Chishuru came in 31st and she got the chef of the year award. And I celebrated the news that Charlie Mitchell of Clover Hill in Brooklyn got the Beard’s best chef in New York State prize. But you must remember that these rankings should not dictate what you enjoy. You can still have a terrible time in the world’s best restaurant.

I’m not averse to tasting menus, but many prominent critics lately have opposed them — especially the massive multi-hour extravaganzas of small snacks that move the diner through specialized rooms, billing themselves as “culinary experiences.” I guess you’d feel that way if you had to write weekly restaurant reviews. Not every meal has to be the equivalent of Lawrence of Arabia. Some things should be experienced only once or twice a year — or in a lifetime.

Happiness doesn’t have to come with Michelin stars. The most memorable plate I had last week was a tagliarini with red mullet and olives, produced over a single induction burner at the back of a tiny kitchen of a wine bar, in London’s decidedly mixed-income Lower Clapton. Delicate and complex, I will remember its joys for a long time.

And then there’s Greggs.

I’m an admitted food snob, and my first venture into an outpost of the Newcastle upon Tyne-based pastry kingdom didn’t impress. The share of poultry in the chicken nuggets was paltry — and the grease-to-batter ratio was high. The cheese-and-onion pie demanded more flavorful cheese. And onions. I picked up an orange on the way back to work to cleanse my palate, puzzling over the company’s market cap of more than $3.6 billion and nearly 30% return on equity.

But the other day, I was walking the streets furious about something petty. Fortunately, I realized I was just hungry. Greggs on Cheapside, here in the City of London, was the closest place to self-medicate. I approached the counter, pointing to the first thing I saw under glass. Sanity returned with each bite of a sausage roll. Maybe it was the proportion of fat to breading? Maybe it was the barley-and-wheat-and-soy filling with a percentage of meat slightly redolent of Spam, a happy memory from my childhood? All I know is that it took the “I” out of irate faster than anything else I’ve ingested. It wasn’t a Proustian madeleine, but it altered my reality for the better. For that I’m grateful.

Now, how do I get tickets for the Eras tour?

BLOOMBERG OPINION

Megawide gets SEC’s approval for its P5-billion bond offering

THE Securities and Exchange Commission (SEC) has approved the planned bond offering of Saavedra-led infrastructure conglomerate Megawide Construction Corp. worth up to P5 billion.

The commission en banc rendered effective the registration statement of Megawide’s bond offer during a meeting on June 18, the SEC said in an e-mailed statement on Wednesday.

Megawide’s bond offer will consist of up to P4 billion of fixed-rate bonds with an oversubscription option of up to P1 billion.

The bond offer will be made up of series C bonds due 2027, series D bonds due 2029, and series E bonds due 2031.

Megawide expects to generate P4.93 billion worth of net proceeds from the offer, assuming that the oversubscription option is fully exercised.

“Proceeds will be used for the refinancing of the company’s existing debt obligations and funding of business development opportunities, as well as other general purposes,” the SEC said. 

Based on Megawide’s latest timetable sent to the SEC, the bonds will be offered at face value from June 24 to July 3, with listing at the Philippine Dealing & Exchange Corp. set on July 11.

Megawide has tapped PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters, and bookrunners for the offer.

For the first quarter, Megawide recorded P183.4 million in consolidated net income, a turnaround from the P7.4-million net loss last year. Consolidated revenue increased by 19% to P5.2 billion.

Megawide shares rose by 0.33% or one centavo to close at P3.06 apiece on Wednesday. — Revin Mikhael D. Ochave

Katy Perry-backed food products firm Bragg explores sale, sources say

BRAGG.COM

NEW YORK — Bragg Live Food Products, which is backed by celebrities Katy Perry and Orlando Bloom, is exploring a sale that could value the maker of apple cider vinegar at more than $500 million, including debt, according to people familiar with the matter.

The Santa Barbara, California-based company, which also counts investment firm Swander Pace Capital among its investors, is working with Bank of America to solicit interest from potential buyers, which include private equity firms, the sources said, speaking on condition of anonymity.

Swander Pace and Bank of America declined to comment. Bragg did not respond to requests for comment.

Founded in 1912 by Paul Bragg, the company is known for its apple cider vinegar products, as well as its salad dressings, seasoning blends, olive oil, beverages, and other food ingredients.

Patricia Bragg, Paul’s adopted daughter, led the business for 65 years, until it was sold in 2019 to Ms. Perry, Mr. Bloom and other investors including Dragoneer Investment Group and Pressed Juicery founder Hayden Slater.

Bragg’s products are sold through supermarkets, e-commerce retailers, and natural foods stores in the United States and in other countries.

The company’s owners are expecting to command a valuation for Bragg equivalent to at least 10 times the company’s earnings before interest, taxes, depreciation and amortization of about $50 million, the sources said.

The food ingredients sector has been an active area for dealmaking in recent months. Private equity firm Butterfly Equity is exploring a sale of Chosen Foods, while Falfurrias Capital is running a sale process for Sauer Brands, Reuters has previously reported. — Reuters