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Inflation picks up to 6-month high

Inflation rose for a fourth straight month in May, the statistics agency said on Wednesday. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

INFLATION ACCELERATED to a six-month high in May, driven by the faster rise in utility and transport costs, the Philippine Statistics Authority (PSA) said on Wednesday.

The consumer price index (CPI) picked up to 3.9% year on year in May from 3.8% in April but slowed from 6.1% in the same month last year.

It was the fastest inflation since 4.1% in November and matched the 3.9% inflation in December.

Inflation rates in the Philippines

May inflation also fell within the Bangko Sentral ng Pilipinas’ (BSP) 3.7-4.5% forecast for the month. However, it was slightly below the 4% median estimate in a BusinessWorld poll of 16 analysts last week.

May also marked the fourth straight month of faster annual inflation, and the sixth straight month that inflation settled within the BSP’s 2-4% target band.

Month on month, inflation inched up by 0.1%. Stripping out seasonality factors, month-on-month inflation picked up by 0.3%.

Core inflation, which excludes volatile prices of food and fuel, slowed to 3.1% in May from 3.2% in April and 7.7% in the same month a year ago.

From January to May, headline inflation averaged 3.5%, matching the BSP’s full-year forecast.

“The inflation outturn is consistent with the BSP expectations that inflation could temporarily accelerate above the target range over the near term due to adverse weather conditions on domestic agricultural output and positive base effects,” the central bank said in a statement.

National Statistician Claire Dennis S. Mapa said the inflation uptick was driven by the faster increase in the housing, water, electricity, gas and other fuels index. It rose to 0.9% in May from 0.4% in April.

“One of the main contributors to the increase in housing, water, electricity, gas, and other fuels was the slower pace of decrease in electricity prices… (and) the faster rise in prices of liquified petroleum gas (LPG), which had 9.4% inflation,” he said in mixed English and Filipino.

He also noted that the yellow and red alerts placed on the Luzon and Visayas grids contributed to higher electricity prices.

Mr. Mapa also noted the faster annual growth in transport index at 3.5% in May from 2.6% in the previous month and -0.5% in May 2023. This was driven by higher gasoline and diesel prices, as well as rising fares for passenger transport by sea.

Meanwhile, the heavily weighted food and non-alcoholic beverages index was the main contributor to overall headline inflation, accounting for 56.6% or 2.2 percentage points (ppts).

The food index rose to 5.8% in May, slowing from 6% a month ago and 7.4% in May 2023. The cereals and cereal products index, which includes rice, eased to 16.6% from 16.9% in April.

Rice inflation eased to 23% from 23.9% a month earlier. May marked the second straight month of slower rice inflation.

PSA data showed that the average price of a kilo of well-milled rice declined to P56.06 in May from P56.42 in April while special rice dropped to P64.41 from P64.68 per kilo.

Mr. Mapa noted that rice prices continue to see “incremental decreases” as global rice prices are also going down.

He also cited faster inflation in the ready-made and other food products, particularly ginger. The average price of a kilo of ginger rose to P148.72 in May from P127.66 in April.

Meanwhile, the inflation rate for the bottom 30% of income households settled at 5.3% in May, the same as a month ago but slower than 6.7% a year earlier.

In the first five months, the inflation rate averaged 4.6% for the bottom 30%.

In the National Capital Region (NCR), inflation quickened to 3.1% from 2.8% in April. Inflation in areas outside NCR averaged 4.1%, unchanged from the previous month.

RISKS TO INFLATION
Meanwhile, the BSP said that risks to the inflation outlook continue to tilt toward the upside.

“Possible further price pressures are linked mainly to higher transport charges, elevated food prices, higher electricity rates, and increase in global oil prices,” it said.

However, the central bank said it still expects average inflation to return to the target range for both 2024 and 2025.

PSA’s Mr. Mapa said that inflation could ease further after the National Economic and Development Authority (NEDA) Board recently approved a medium-term plan to reduce tariffs on key agricultural and industrial products. Tariffs for rice imports will be slashed to 15% from 35% previously until 2028.

“Our inflation of rice has a very substantial contribution to overall inflation. It’s even bigger for the bottom 30% income households… It would reduce the overall inflation, given the contribution of rice to the overall inflation, all things being the same,” Mr. Mapa said.

NEDA Secretary Arsenio M. Balisacan said in a statement on Wednesday that the tariff reduction will “help manage food inflation, promote policy stability and investment planning, and enhance food security.”

How much did each commodity group contribute to May inflation?

POLICY IMPLICATIONS
The central bank said it will consider the latest inflation data in its next policy review on June 27.

“The BSP also continues to support the National Government’s nonmonetary measures to address supply-side pressures on prices and sustain the disinflation process,” it added.

Chinabank Research said in an e-mail note that recent nonmonetary measures could result in a lower inflation path and ensure that full-year inflation falls within the BSP’s target.

“While unfavorable base effects will continue to help drive up inflation until July and upside risks persist, recent nonmonetary interventions such as tariff cuts on key commodities and the exemption of agri-trucks from toll fee hikes starting this month brought positive developments to the inflation outlook,” it said.

The BSP earlier said that inflation could overshoot the 2-4% target band from May to July amid base effects.

“The monthly year-on-year inflation is expected to peak in July and anticipated to begin its downward trend in August,” Metrobank Research and Market Strategy Department said in a report.

Pantheon Macroeconomics in an e-mail note said that it expects inflation to average 3.3% this year, below the BSP’s full-year target.

Chinabank Research said that latest inflation data may also prompt the BSP to begin policy easing earlier than expected.

“(This) could support possible local policy rate cuts as early as the latter part of 2024 especially if the Fed starts cutting rates,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Pantheon said it expects the BSP to cut by a total of 75 basis points (bps) this year, beginning in August.

The Monetary Board last month kept its benchmark steady at a 17-year high of 6.5%. The central bank raised borrowing costs by 450 bps from May 2022 to October 2023.

BSP Governor Eli M. Remolona, Jr. earlier said that the Monetary Board can begin policy easing as early as August.

Metrobank Research said it expects the BSP to begin its easing cycle in the fourth quarter should the US Federal Reserve start cutting in September.

Mr. Remolona earlier said that the BSP does not need to wait for the Fed and can cut ahead of the US central bank.

Lower rice tariffs to bring down retail prices as early as July

The National Economic and Development Authority (NEDA) Board has approved a medium-term plan to lower tariffs on agricultural and industrial products, including rice. — PHILIPPINE STAR/EDD GUMBAN

THE GOVERNMENT’S move to slash tariffs on imported rice could bring down average retail prices by P6-P7 per kilo as early as July, the Department of Agriculture (DA) said on Wednesday.

“The potential price reduction will be between P6 and P7 per kilo… In a month’s time we can expect that the prices would drop,” Agriculture Assistant Secretary and Spokesperson Arnel V. De Mesa said in a virtual briefing.

He said consumers could see the drop in retail prices of imported rice by July or August, noting that it takes around two to three weeks for imports to arrive in the country.

The National Economic and Development Authority (NEDA) Board has approved a medium-term plan to lower tariffs on agricultural and industrial products. This included the further reduction in rice import tariffs to 15% from 35% until 2028.

“We will do everything within our power to make sure the substantial cut in rice tariff will translate to a significant reduction in retail price of the grain,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said in a separate statement.

According to the DA’s Price monitoring of Metro Manila markets as of June 4, a kilo of imported well-milled rice was P52-P55, while regular milled rice was P49-P51 per kilo.

The Department of Finance earlier said that it is willing to forego an estimated P10 billion in tariff collections to lower the price of the food staple.

Mr. Tiu Laurel said the agency will plug the potential funding gaps for the Rice Competitive Enhancement Fund (RCEF). RCEF is funded by tariff collections on rice imports, mandated under Republic Act No. 11203, the Rice Tariffication Law.

“Our priority is to ensure that our rice farmers will continue to benefit from the Rice Fund created under the Rice Tariffication Law and is confident it will be extended until 2030 to improve the lives of millions of impoverished rice farmers,” he said.

The DA is seeking to extend RCEF and bring back some regulatory powers to the NFA to bring down rice prices.

LOWER INFLATION
Meanwhile, HSBC economist for ASEAN (Association of Southeast Asian Nations) Aris D. Dacanay said the implementation of lower tariffs on key commodities would likely help cool inflation,

The consumer price index (CPI) may ease by as much as 1.8 percentage points if the government swiftly implements the lower tariffs on rice, corn, pork and mechanically deboned meat, he said at a media briefing.

“But if, let’s say, the rice tariff rate cut happens tomorrow, or happens within June, I do think that’s a big downside risk to the inflation outlook, and perhaps, you know, inflation will not breach target,” he said.

Annual inflation quickened for a fourth straight month in May. Inflation rose to 3.9% year on year in May from 3.8% in April but slowed from 6.1% in the same month last year.

May marked the sixth straight month that inflation settled within the central bank’s 2-4% target band.

Mr. Dacanay said inflation may likely breach the government’s 2-4% target until July due to unfavorable base effects.

“It’s going to range between 4% and 4.5%, perhaps up until July. It’s only in August where it will return back to within target,” he said. — Adrian H. Halili with inputs from B.M.D.Cruz

HSBC sees above 6% growth for PHL in Q2

The Philippine economy is expected to grow by 6-7% this year. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE ECONOMY is expected to grow above 6% in the second quarter amid base effects and improved government spending, HSBC Global Research said on Wednesday.

“For the second quarter, [the economy is] going to grow above 6%, mainly because of base effects, because as you remember, in second quarter of last year, the government underspent their budget,” HSBC economist for ASEAN (Association of Southeast Asian Nations) Aris D. Dacanay said at a media briefing.

If realized, the second-quarter gross domestic product (GDP) growth would be faster than 4.3% in the same period in 2023, and the 5.7% expansion in the first quarter.

The government is targeting 6-7% GDP growth this year.

The Philippine Statistics Authority (PSA) will release second-quarter GDP data on Aug. 8.

“Right now, we’re not underspending. So, with the spending plan in check, with consumption slowing down but still robust; with investments, again, cooling, but not really falling off a cliff, quarter-on-quarter growth should be a little less than potential,” Mr. Dacanay said.

Household consumption, which accounts for about 80% of GDP, grew by 4.6% in the first-quarter period, the slowest since the coronavirus pandemic.

Government final consumption expenditure growth slowed to 1.7% in the first quarter from 6.2% in the same period in 2023.

Last week, Budget Secretary Amenah F. Pangandaman said measures on early procurement and digitization of state transactions would ensure that government spending is on track this year.

However, Mr. Dacanay said there is still a risk that weak consumption could weigh on growth. Consumption accounts for around a quarter of GDP growth.

“We do expect consumption or demand will likely be weak in the second or third quarter of 2024, since we’re still adjusting with high interest rates. We’re still adjusting to high inflation. We’re still building our savings back up,” Mr. Dacanay said.

The National Economic and Development Authority Board’s move to reduce tariffs on basic commodities like rice should ease pressure on household budgets and boost private spending, HSBC said.

“Cutting the tariff rate of rice by 20 percentage points (ppts) could unlock around 2% of household budgets to be spent on other things, more so for the low-income households who spend a larger portion of their budgets on rice,” Mr. Dacanay said, adding this could contribute around 1.4 ppts to overall growth.

Mr. Dacanay clarified that HSBC has yet to consider the recent tariff reduction in its official GDP growth forecast.

HSBC also expects the Bangko Sentral ng Pilipinas (BSP) to cut its key policy rate by 25 basis points (bps) in the fourth quarter after the US Federal Reserve starts its easing cycle. Another 125 bps of rate cuts is expected in 2025.

“With growth still strong, I do think the BSP will tilt towards the safer side of things, and basically lead to cut in the fourth quarter of 2024 after the Fed,” Mr. Dacanay said.

“Cutting ahead of the Fed would still be tricky and would depend on how fast the disinflationary impact of the tariff adjustment would come through,” Mr. Dacanay said.

The Philippines could potentially attract more foreign direct investments (FDIs) once central banks begin their easing cycles.

“When all the central banks in the world ease their policy rates, the Philippines will be one of the benefactors in terms of FDI, in terms of capital flowing in,” Mr. Dacanay said. 

However, he said the government needs to improve the ease of doing business in the country as well as lower power costs to attract investors. — B.M.D.Cruz

Government warned against low tariff regime

Workers arrange sacks of National Food Authority (NFA) rice in Balagtas, Bulacan. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Kyle Aristophere T. Atienza, Reporter

TRADE PROTECTION is needed if the government is serious about rescuing its agriculture and manufacturing sectors, experts said after the Philippines announced a new low tariff regime covering industrial and agricultural products.

Farmers, meanwhile, said the government has failed to keep its promise that it would not reduce tariffs for sensitive agricultural commodities while the Philippines is still a party to the world’s largest free trade agreement.

The country has been lowering tariffs since the early 1980s, with manufacturing falling to its smallest share of economic output since 1949 and agriculture down to its smallest in the country’s history, said Jose Enrique A. Africa, executive director of think tank Ibon Foundation.

“Mindlessly cutting tariffs further will just continue this long-term trend of weakening agriculture and manufacturing,” he said in a Facebook Messenger chat.

The National Economic and Development Authority (NEDA) Board on Monday approved a medium-term plan to lower tariffs on agricultural and industrial products, amid concerns over rising inflation, and slowing manufacturing output.

Under the Comprehensive Tariff Program for 2024 to 2028, the government would keep the rates for more than half of the tariff lines for products that have relatively low tariffs, a move that NEDA Secretary Arsenio M. Balisacan said would boost manufacturers’ competitiveness.

“Agricultural and industrial competitiveness is, most of all, built up from the ground with state subsidies and support to build capacity astride judicious trade and tariff protection,” Mr. Africa said.

He cited the case of the United States, which has been on a mission to subsidize its manufacturing sector amid growing competition with China, which accounted for 28.4% of global manufacturing output last year.

“If an industrial power like the US sees the need for protection, it’s bizarre that the underdeveloped Philippines somehow thinks otherwise,” he said.

Under the tariff program, the reduced tariff rates for corn, pork and mechanically deboned meat that started in 2019 would be kept until 2028. Rice tariffs will go down to 15% from the current 35% until 2028.

Raul Q. Montemayor of the Federation of Free Farmers lamented that the government earlier assured farmers that rice and other sensitive agricultural commodities would not suffer any diminution in tariff protection while the Philippines is part of the Regional Comprehensive Economic Partnership (RCEP).

The National Government has also failed to consult stakeholders before deciding to lower tariffs for industrial and agricultural products including rice, he added in a Viber message.

“NEDA has deprived industry stakeholders of their right to genuine consultation and due process,” he said.

Proposed tariff changes have to undergo hearings conducted by the Tariff Commission, which will then give the recommendations to the NEDA Board chaired by the President.

Mr. Montemayor said further reduction in rice tariffs would “hugely” affect the “morale and productive efforts” of three million domestic rice farmers and the rice industry as a whole, noting that the country’s dependence on rice imports has grown to 25% from 10%.

“Our experience since trading in the rice industry was liberalized… and tariffs were lowered also on non-ASEAN (Association of Southeast Asian Nations) rice imports has not been salutary. But rice retail prices have risen,” he said. “That the 15% tariff on rice will provide major and lasting relief to consumers is more a shot in the dark than a probable result.”

The Samahan ng Industriya ng Agrikultura said that when the Finance department last year announced plans to lower rice tariff, Vietnam and Thailand started to increase rice prices to $680 per metric ton (MT) from $630/MT of the 5% broken rice variety.

Non-ASEAN rice exporters like India and Pakistan simply increased their export tax, it said in a Viber message.

As of end May, the Philippines has already imported two million MT of rice, equivalent to 53% of projected imports.

The agriculture sector’s contribution to the gross domestic product last year fell to 8.6% — the smallest in the country’s history — from 9.55% a year earlier.

Political economy researcher Hansley A. Juliano from the Ateneo de Manila University noted the farm sector’s weakening power in terms of policy lobbying.

“Unfortunately, our farmer sector is getting older so just by themselves, even the successful agrarian reform beneficiaries and cooperative farm movements, they’re not really a strong lobby,” he said via Messenger chat.

Meanwhile, the government’s move to reduce tariffs on coal is unlikely to lower the cost of electricity as coal prices continue to rise, Greenpeace Philippines campaigner Khevin Yu said via Messenger chat.

He said the move will prolong the country’s reliance on coal and affect its transition to renewables.

“The best way to reduce electricity cost is to utilize the cheapest source of energy which is renewable energy,” he added, blaming “faulty operational capacity” of coal-fired power plants that led to yellow power alerts across the main island of Luzon.

A 2024 Green Economy Report for Southeast Asia led by Bain & Company said the Philippines saw a 57% increase in “green” investments to $1.46 billion in 2023, but still falls short of the over $16 billion in required capital investments needed for its green transition.

“NEDA should instead create more incentives for power generators, distributors and even for electric consumers who use renewables,” Mr. Yu said.

Alternergy starts building P10-B Tanay Wind Power Project

MONICA DAHIYA-UNSPLASH

ALTERNERGY Holdings Corp. announced on Wednesday the start of the construction of its 112-megawatt (MW) Tanay Wind Power Project in Rizal.

The company, through its subsidiary Alternergy Tanay Wind Corp. (ATWC), aims to attain additional capacity by the end of 2025, Alternergy said in a statement.

“There will be a lot of growth that is going to happen in the next 18 months, but please bear with us for this construction phase,” ATWC President Knud Hedeager said, adding that the tourism industry in Tanay is expected to become “busier” by 2026.

The wind farm project has a total cost of P10 billion, of which up to P8 billion in funding came from the Bank of the Philippine Islands and Security Bank Corp.

“We are grateful for the huge support given to the Tanay Wind Power Project, which has finally led us to this groundbreaking. We are hoping that the same support will be extended to us as we move ahead with the construction phase,” Alternergy Chairman Vicente S. Pérez said.

Rizal Governor Nina Ricci Ynares-Chiongbian said that the Tanay Wind Power would be Alternergy’s second wind project in Rizal. The first, the Pililla Wind Project, commenced commercial operations in 2015.

“What we have started here with our partnership is a testament to our commitment to bringing alternative energy as a source of clean energy to the fold of our daily living,” she said.

Last month, the company also hosted a groundbreaking ceremony for its P7-billion 64-MW Alabat Wind Power Project.

Alternergy President Gerry P. Magbanua said on Monday that the company has raised over P20 billion from its capital-raising activities over a period of 15 months since its initial public offering. This achievement occurred earlier than forecasted, which was expected to take three to five years.

The capital-raising program is aimed at funding the accelerated construction of its new projects with a capacity of up to 204 MW.

Alternergy hopes to develop up to 474 MW of additional wind, solar, and run-of-river hydropower projects in the next three years.

At the local bourse on Wednesday, shares in the company rose by two centavos or 2.94% to close at P0.70 each. — Sheldeen Joy Talavera

DMCI allots P6B for eco-agri condotel project in Benguet

CONSUNJI-LED DMCI Homes announced on Wednesday that it has allocated P6 billion for its eco-agri condotel Moncello Crest in Tuba, Benguet.

The residential resort project initially launched 522 units in May, DMCI Homes said in a statement on Wednesday.

The company stated its leisure arm, DMCI Homes Leisure Residences, is expanding in northern Luzon following the completion of its Solmera Coast property in San Juan, Batangas.

Moncello Crest, designed as a mountain resort, is equipped with amenities such as a heated outdoor jacuzzi, fire pits for guests, and a roof deck for visitors.

DMCI said that the complex will host an all-day dining restaurant, café, game room, spa, gym, multi-purpose athletics play area, daycare center, and convention center for large events.

“Moncello Crest’s name draws from montel, an Italian word for mountain, and the Spanish word ariceli referring to an “altar in the sky,” the company said.

Located in Tuba, the condotel is accessible via Marcos Highway and is within Barangay Poblacion. 

Within the municipality, residents can visit the BenCab Museum, hot spring resorts, and Pan Ay-Ayaman Eco Park. The “Bridal Veil” Falls, Aran Cave, and Ifugao Woodcarvers Village can also be explored while staying in Moncello Crest.

“Tuba, Benguet has emerged as a popular tourist destination given its proximity to Baguio City and its thriving agri-tourism industry,” the company said. — Aubrey Rose A. Inosante

Melo’s daughter reopens Carmelo’s

CHEF CRISTINA SANTIAGO of Carmelo’s Steakhouse

(The steaks are still the focus, as are her desserts)

By Joseph L. Garcia, Senior Reporter

FOR MANY Filipinos, their first taste of a really good steak was at Melo’s. Carmelo “Melo” Santiago, opening his first branch of Melo’s in 1987, popularized Angus steaks in the Philippines. Later projects also saw him bringing Japanese wagyu beef to the Philippines through House of Wagyu Stone Grill in 2007. Melo’s name thus still has some heft in the restaurant industry, despite his passing away in the middle of the COVID-19 pandemic in 2021.

He and his daughter, Cristina, had first opened Carmelo’s in Greenbelt in 2014 (according to her memory; some news outlets say they opened the year before that).

In an interview with BusinessWorld during a tasting on May 30, she recalled that their joint venture began after she set up her dessert business, Sweet Bella. A graduate of the California School of Culinary Arts, she had planned to open a cafe, but her father insisted they open a steakhouse instead, with her desserts included in the menu (she had, after all, won The Best Dessert award from the Philippine Daily Inquirer three times).

In 2020, while the restaurant was under renovation, the pandemic struck, and they decided not to reopen at the time. “Before he passed away, he even told me in the hospital: ‘Let’s build Carmelo’s again.’” She reassured him that they would, but mindful of his health, she also urged him to take it one step at a time.

“He passed away — I lost… naiiyak ako (I want to cry),” she said, her voice breaking slightly. “I lost my hero. I didn’t know what to do.”

She told us though that after seeing an available space at The Proscenium Retail Row at Rockwell, “There was something in me that I said, ‘I think I’m ready to build Carmelo’s.’

“I never really thought of opening na eh,” she said.

She was surprised by the ease with which she got the space, simply walking into Rockwell’s leasing department. “Somebody up there helped me.”

The space, as we entered it, had its ceilings dripping with golden chains, and was paneled in wood. The private dining room was modeled after her father’s music room at home (the electric fireplace was her idea, though), and his portrait and a book about his achievements (which she presented to him) are there.

The meal opened with oysters, served on a bed of dry ice (lending a smoky effect); the oysters were very plump and had a very clean flavor. Despite the theatrical flair with which it was served, her father’s old-world imprimatur was still present: the oysters were served with a small bowl of mid-20th century cocktail sauce (not a bad addition, and I could pretend for the few seconds that I was swallowing an oyster that I was somehow on a transatlantic flight back in the 1960s). Her father’s classic paté was also on the table.

“Times are changing. Now they like new sauces, like miso sauce or something,” she said. Other changes included more flair in the service (as in the oysters, and later for the main course when sides were served on tiny copper pots).

The tuna tataki that came next was definitely modern: it had a very mild flavor, given some power by the savory miso sauce. The grilled Octopus a la Plancha was the yang to the tuna’s yin: the octopus itself was robust, while the creamy cauliflower puree was a clever way to tame the octopus. All these were served with a La Fiole Cote du Rhone Blanc, which also complimented the Prawn Bisque (the plate arrived with the prawns curled up in it, then the soup itself was poured out of a teapot; lovely videos await).

Then the Grilled Wagyu Ribeye arrived (perhaps a nod to the changing times — this, instead of her father’s Angus, was her showpiece for that day; though of course, Angus is also on the menu). A knife cut through it like butter, and it tasted luxurious. It was all very simply grilled, letting the beef speak for itself. It was served with steak rice, mashed potatoes, and grilled vegetables. We left exactly one bite of steak on the plate, for we had unfortunately filled up on the excellent bread and the truffle burrata pasta (good, but could be better; we note the pasta’s mushiness). These were paired with Cabernet Sauvignon-Merlot Chateau Loyasson from Bordeaux, which added even more dimension to the otherwise already-perfect steak.

A headache kept us from Ms. Santiago’s award-winning desserts (her Pearl, guava mousse with fresh mango coulis, looked like a real treat), but the two bites we took of the Angelina — her hazelnut mousse with a hazelnut praline crust, adorned with vibrant raspberry coulis and edible red magnolia flowers — left us wishing we felt better so we could enjoy it.

While Carmelo’s bears her father’s name, it’s run independently from the Melo’s chain which is operated by her siblings. Still, family and tradition leave a heavy imprint.

“Always make sure that your food is the best quality,” she said, asked about the things she learned about the business from her father. “The only thing that my dad really requested is never change my supplier.” Her father’s steaks, and now hers, are sourced from Australia and the United States.

“Always connect with your customers. When they come back, they feel like a special person,” she added.

“For me, it was a moving forward also. I’ve accepted that he’s gone, and now I can do the things that he had implanted, and practice it, and make a name; knowing that he was the one who polished me, how to be who I am now,” she said.

Carmelo’s Steakhouse is located at the second floor of The Proscenium Retail Row, Rockwell, Makati. Follow @carmelossteakhouse on Instagram for updates on the restaurant. For reservations, contact 0915-903-8005.

Leviste boosts ABS-CBN stake to 10%

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Revin Mikhael D. Ochave, Reporter

BUSINESSMAN Leandro Antonio L. Leviste, founder of Solar Philippines Power Project Holdings, Inc., has increased his stake in ABS-CBN Corp. to 10% from the previous 8.5%, bringing him closer to securing a seat on the board of the listed media company.

Mr. Leviste now owns 90 million ABS-CBN shares, equivalent to a 10% beneficial ownership, ABS-CBN said in a stock exchange disclosure dated June 4.

These consist of 87.66 million ABS-CBN Corp. shares and 1.718 million ABS-CBN Holdings Corp. shares, owned by Leviste-led LL Holdings, Inc. and its parent company Countryside Investments Holdings Corp.

In May, Mr. Leviste announced his acquisition of an 8.5% stake in ABS-CBN, making him the second largest ABS-CBN shareholder after Lopez, Inc.

Mr. Leviste is the son of Senator Loren Regina “Loren” B. Legarda, a former ABS-CBN producer and news anchor.

With the closing share price of ABS-CBN stocks on Wednesday at P7.69 apiece, Mr. Leviste’s shares have an estimated value of P692.1 million. 

Sought for comment, Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message: “The increased stake puts him in a good position to gain a board seat and thereby influence the direction of the company.”

He now has almost a fifth of the 502 million shares owned by Lopez, Inc.

Mr. Colet said that at least a 10% stake would be sufficient for Mr. Leviste to secure a board seat in ABS-CBN.

“So far, the market has viewed his entry positively as the stock price has risen nearly 80% since he first disclosed his stake in May. Many investors think Mr. Leviste can use his business acumen and valuable relationships to help turn around the fortunes of ABS-CBN,” he said.

On May 30, ABS-CBN’s board elected Ma. Rosario Santos-Concio as a director, filling the vacancy created by the passing of Augusto Almeda-Lopez.

AP Securities, Inc. Senior Research Analyst Francis Ferdinand D. Subido said in a Viber message that any price movement on ABS-CBN shares would be “speculation-driven since investors may be anticipating what Mr. Leviste’s actions will be once he does get a board seat.”

“Likely people are hoping that this can eventually be parlayed into a discussion on bringing back ABS-CBN’s media franchise given the past ties that Senator Legarda had with ABS-CBN,” he said.

“In terms of the financials, however, we have yet to see anything tangible given that the share purchases are not translating into liquidity infusions for ABS-CBN to service its debt,” he added.

Solar Philippines sold over P6 billion worth of shares of SP New Energy Corp. (SPNEC) in the previous year. The company and its affiliates still have 20.6 billion shares of SPNEC valued at around P22 billion.

SPNEC was founded by Mr. Leviste but is now controlled by the Pangilinan group via MGen Renewable Energy, Inc.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

ABS-CBN Corp. to hold annual meeting of stockholders on June 20 via remote communication

 

 

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Shanghai’s ‘kitchen’ skyline

THE BUND SKYLINE — JUSTINE IRISH D. TABILE

SHANGHAI, the city most visited by tourists in Mainland China, is known for its iconic skyline and rich cultural heritage.

The Bund, Shanghai’s famous waterfront area along the western bank of the Huangpu River, is home to luxury hotels, restaurants, and high-end shops. It is also where one finds what is known as the Bund Skyline. Its distinct look comes from a number of skyscrapers that together look like a set of kitchen tools.

  One of these “kitchen tools” is one of the tallest buildings in the world, the Shanghai Tower.

Standing 2,073 feet tall, Shanghai Tower is currently the third-highest building in the world according to the Council on Tall Buildings and Urban Habitat. With its twisting structure that gradually narrows as it ascends the sky, the tower is called the “egg whisk.”

Known for its striking appearance, the tower’s spiral design was meant to enhance its structural stability and resistance to wind forces.

Next to the whisk is the “bottle opener,” or the mixed-used Shanghai World Financial Center.

With a height of 492 meters, or 1,614 feet, it is another prominent skyscraper, especially with its distinctive trapezoidal aperture at the peak.

The building serves as a financial hub with office spaces, conference facilities, hotels, and observation decks.

The third tool in Shanghai’s kitchen set is a cooking syringe, or the 1,380-foot Jin Mao Tower.

Completed in 1999, the building houses a five-star hotel, exhibition halls, banquet halls, an observation deck, and entertainment facilities.

The tower offers a “wander in the cloud” service wherein visitors can stroll along a glass skywalk — without rails! — on its 88th floor.

These three together are the tallest buildings in Shanghai and are among the many tourist destinations in the city.

SHOPPING
Located on the eastern coast of China, Shanghai is home to almost 29.87 million people, making it the third largest city by population in the world, according to the World Population Review.

To cater to the shopping needs of so many people, the city has the pedestrianized Nanjing Road, which spans approximately 5.5 kilometers. Known to be among the world’s longest shopping precincts, the street starts from the Bund facing the Huangpu River in the east to Jing’an Temple in the west.

The stores lining the street sell Chinese delicacies like candies, pastries, and teas; clothes and accessories; and cosmetics.

The street also has stalls for artists who do caricatures of tourists, with prices starting at 20 Chinese yuan, depending on the drawing style.

The road is also home to famous international brands housed inside the many department stores scattered along its length. One of these department stores focuses on collectibles for animé, manga, games, and manhua fans, and is easily recognized by the large inflatable animé character, Anya, on its rooftop.

Not every building along Nanjing Road is dedicated to shopping.

One of the buildings with a colorful history is the Fairmont Peace Hotel, first opened in 1929. Previously called the Cathay Hotel, it is located in the Sassoon House of Anglo-Jewish real estate tycoon Victor Sassoon. The hotel welcomed many distinguished guests through the years, including General George C. Marshall, actors Charlie Chaplin and Douglas Fairbanks, and playwrights Noel Coward and George Bernard Shaw. During World War II, the hotel was occupied by the Japanese army and later used as a social club for officers.

Nanjing Road is not the city’s only shopping area. Another is Tianzifang, a trendy area known for its boutiques, galleries, and vibrant nightlife.

Located in the French Concession area of Shanghai, Tianzifang is made up of narrow alleyways where visitors can browse through shops selling handicrafts, artwork, clothing, and souvenirs.

Originally filled with factories along its lanes, the area was renamed after the earliest recorded painter in China after it developed a thriving art scene. — Justine Irish D. Tabile

Prime Infra says P1-B Porac facility to address Pampanga’s waste challenges

PNA.GOV.PH

By Sheldeen Joy Talavera, Reporter

THE new waste processing facility of Razon-led Prime Infrastructure Capital, Inc.’s (Prime Infra) unit in Porac, Pampanga, will serve as an alternative solution amid the looming closure of sanitary landfill facilities that cater to Clark City, the company said on Wednesday.

“We’re a very different set of operations, so as you can see, we’re materials recovering facility, not landfill, so indeed we are an alternative for any other waste facility,” Cara T. Peralta, Prime Infra’s market sector lead for waste, told reporters.

The development follows the recent announcement from the Bases Conversion and Development Authority (BCDA) regarding the impending expiration of a contract for the Kalangitan sanitary landfill facilities in Capas, Tarlac.

The 25-year contract between Metro Clark Waste Management Corp. and Clark Development Corp. is set to expire in October.

BCDA has said that it will help find alternative solutions for the waste disposal requirements of affected stakeholders.

Prime Integrated Waste Solutions (PWS) on Wednesday inaugurated its automated materials recovery facility (MRF), which has an investment of over P1 billion. 

“The idea is to ensure segregation, storage, efficient processing, and the ultimate outcome is to minimize environmental impacts and the residue of the waste coming into the facility,” Prime Infra President and Chief Executive Officer Guillaume Lucci said.

The waste processing facility, with a site area of about 10 hectares, is capable of segregating and treating 5,000 tons of garbage per day, the company said.

It will handle the waste from north Luzon and the northern part of Metro Manila.

Ms. Peralta said the Pampanga facility can accommodate up to 80-90% of the total waste received.

The Pampanga MRF is PWS’s first greenfield development, and the company’s second operational facility after Cebu City.

Ms. Peralta said the company would enter into a joint venture within the next two to three years with US-based WasteFuel Global to convert the waste into energy.

PWS was established in response to the increasing demand for proper waste management and resource recovery solutions in industrialized and fast-growing cities in the Philippines.

Prime Infra said that its business model is based on the company’s overall objective of converting recovered resources into sustainable fuels.

Cybercrime, fraud may pose risks to digital economy, financial inclusion

FREEPIK

THE GOVERNMENT must prioritize measures to address the proliferation of cybercrime and online fraud as these could affect the digital economy and hamper financial inclusion efforts, analysts said.

“Cyber fraud and cybercrime create disincentives to participate in the digital economy, leading to loss of potential monetary gains and slower financial inclusion,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail.

Cybersecurity breaches result in losses for individuals and businesses, he said. These include financial losses from fraud and data breaches, operational and business activity disruption, intellectual property theft, and loss of customer trust and loyalty.

“Technological limitations in our country have enabled many to flagrantly defy the SIM Registration Law,” he said.

“It appears that loopholes in the institutional governance and implementation of the law have been exploited by cybercriminals,” Mr. Terosa added.

President Ferdinand R. Marcos, Jr. enacted Republic Act No. 11934 in 2022 to “aid law enforcers to track perpetrators of crimes committed through phones.”

Ronald B. Gustilo, national campaigner of Digital Pinoys, said the government must increase funding support for efforts to combat cybercrime and online threats.

“They should use these funds to hire experts and acquire the technology needed. The government also needs to craft a program to develop more cybersecurity, legal and digital forensics experts who will eventually aid its campaign to eradicate these criminals,” Mr. Gustilo said in a Viber message.

Fintech Alliance.PH Chairman and Rizal Commercial Banking Corp. Executive Vice-President and Chief Innovation and Inclusion Officer Angelito “Lito” M. Villanueva said in a speech last week that nearly a quarter of Filipinos fall prey to digital fraud.

“The detrimental impact of this issue is reflected in the 4.3% revenue loss experienced by e-commerce platforms [in the Asia-Pacific region] due to cybercrime,” he said, citing data from the Merchant Risk Council’s 2022 Global Payments and Fraud Report.

“Education is the cornerstone of our mission, and transparent discussions on all facets of the finance industry are imperative to enhance consumer awareness and resilience,” he said.

He noted the importance of digital and financial literacy to help combat cybercrime and fraud.

For their part, financial firms want to be “multiple steps ahead” in ensuring the security of their clients, Mr. Villanueva said.

“That’s the only thing that we have to protect: trust amongst our public, our consumers, our customers to make sure that they will have that faith in terms of the reliability and transparency of the system,” he added.

Mr. Gustilo also emphasized the need to include digital literacy in the country’s basic and secondary education curriculum.

“With the ongoing crisis in cyberspace, people are being driven away from the efforts of the government and the private sector to promote digitalization,” he said. — B.M.D. Cruz

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