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Firms should optimize investments before tapping new tech for growth

FREEPIK

PHILIPPINE BUSINESSES should optimize their existing investments for efficiency and determine if they need to tap emerging technologies like artificial intelligence (AI) to boost their operations, a US-based software company said.

“Don’t always go looking for the shiny new toy. You have to work with the huge investments that you have. You can streamline them. You can make them more efficient,” Seth Ravin, chief executive officer (CEO) of Rimini Street, told BusinessWorld in a video interview on Oct. 4.

Rimini Street began operating in the Philippines in 2020. It offers third-party enterprise software support services to help companies reduce costs and improve the performance of their existing systems.

Mr. Ravin said most companies need to focus on existing system optimization to boost their operations rather than simply adopting the latest technologies.

“If I would say, 60 to 70% on existing structures and optimization and about 30% on new technology and innovation,” he said. “Sometimes, they’ve got a solution looking for a problem instead of a problem looking for a solution. The IT (information technology) department gets scared. They don’t want to tell the board they’re wrong.”

He noted how some boards in recent years wanted their firms to be cloud-first companies without knowing what it entailed, resulting in losses.

“Now, companies have so much cloud storage and so many different cloud providers and it’s costing them a fortune. They’re losing money. [Some companies] are now into cloud rationalization or even repatriation coming back from the cloud because [they] went too far,” Mr. Ravin said.

Similarly, firms are now overexcited about AI as the new toy, “but then when you look at it, you find out it’s very weak,” he said. “It’s not enterprise AI.”

“The reality is, to implement this new technology, whether it’s AI, big data, analytics, or even productivity and automation — which are great at reducing labor costs — the problem is everyone is trying to make investments from their daily operating budget as the board of directors does not generally approve additional money for the transformation costs,” Mr. Ravin said.

This leads to the companies being stuck as they have to pay their ongoing bills while having to fund their tech transformation, he said.

“We get to come in and find ways to find within their existing budgets. If we can reduce certain items, we can free up that capital to fund these other projects,” he said.

Philippine firms have tighter budgets than those in other countries, but this does not necessarily mean they need to scrimp on innovation, Mr. Ravin said.

He noted how one of Rimini’s local clients, Philippine Airlines, was able to maximize its investments as over 50% of its savings on annual maintenance costs were reinvested in expanded support, IT modernization, and business intelligence initiatives. — Aubrey Rose A. Inosante

PHL 7-Eleven plans 500 new stores with P6-B investment

PHILSTAR FILE PHOTO

LISTED Philippine Seven Corp. (PSC) is allotting P5 billion to P6 billion to open 500 new stores across the country next year, a company official said.

“For 2025, we are aiming to at least open 500 new stores all over the Philippines,” PSC Finance and Accounting Services Division Head Lawrence M. De Leon said during a media briefing in Pasay City on Tuesday.

“The capital expenditure for that is P5 billion to P6 billion,” he added.

PSC is the exclusive licensee of the 7-Eleven convenience store brand in the Philippines.

For this year, Mr. De Leon said the company is on track to open 450 branches, which will bring its store network to 4,100 stores.

“We are very encouraged by the sales performance of the new stores. We are aiming to open 450 stores this year. We’re already more than halfway there as we have already opened 270 stores by the end of the first three quarters. We expect to end the year with 4,100 stores all over the Philippines,” Mr. De Leon said.

“We have a lot of stores in the pipeline, so we are confident that we can achieve those 450 new stores target. This year, most of the stores are in residential clusters since the pandemic changed consumer behavior,” he added.

PSC President and Chief Executive Officer Jose Victor P. Paterno said in the same media briefing that the company is focused on opening new branches outside of Metro Manila.

“It’s basically outside (Metro Manila). The demand is outside. It’s also where the competition is. In Visayas and Mindanao, we’re the only ones with the logistics network,” Mr. Paterno said.

“(Visayas and Mindanao) are a quarter of our total stores. We’re scrambling to build fast enough, looking for contracts, sending people out, and hiring more people,” he added.

Mr. Paterno said PSC tapped an Australian-based artificial intelligence company to identify the products to be sold across 7-Eleven branches.

“People are shopping closer to home since they are already working from home. When they shop close to home, they buy different things than when they’re shopping from work. That’s how we stock the stores, by carrying only what the customers want in that location. We’re able to identify what’s needed,” he said.

On Tuesday, PSC opened its 4,000th 7-Eleven branch in Newport District, Pasay City.

PSC saw a 14% increase in its first-half net income to P1.76 billion from P1.55 billion a year ago. System-wide sales rose 18.6% to P45.9 billion.

On Wednesday, PSC shares fell by 0.41% or 30 centavos to P72 apiece. — Revin Mikhael D. Ochave

Rossini celebrates its 1st anniversary

STEAK AND POTATO PIZZA

The Italian restaurant serves classics with a modern twist

ROSSINI at S Maison, Pasay City marks its first anniversary following its successful relaunch in October 2023. Known for Italian classics with a contemporary twist, Rossini continues to delight diners with its refreshed look and elevated menu.

“I like that we were able to transform the brand of Rossini from the past to now. It’s so much different. I just feel it’s so much fresher, it’s younger, and the food is still authentic Italian, but with a twist,” Mia Teng, the chief operating officer of Rossini, said during the anniversary celebration on Monday.

Rossini continues to evolve with modern sophistication, all while preserving the rich essence of authentic Italian flavors, she added.

During its anniversary celebration, Rossini brought together members of the media and other guests as it unveiled a selection of its newest favorites alongside popular classics.

TRYING IT OUT
Rossini kicked off the meal with its Fall Mix Salad, a mélange of textures and fall flavors. Featuring roasted pumpkin, cranberries, pepitas, and assorted greens tossed in a vinaigrette dressing, the salad surprised with the roasted pumpkin’s unexpected depth, giving the dish a vibrant burst of flavor. Then came the classic Minestrone, a delicate vegetable soup infused with fresh herbs and enriched with a tomato sauce. Its light, nuanced flavor profile served as the perfect prelude to what was to come.

From its holiday menu, Rossini showcased its signature Napoletana-style pizzas. Ms. Teng told BusinessWorld that all their pizzas are hand-rolled and made from scratch, ensuring their high quality.

The Napoletana-style crust — thick and chewy around the edges, known as cornicione in Italian — serves as a versatile canvas, allowing the traditional and Rossini’s modern twist to come together. “As simple as Napoletana-style pizzas, and you can come up with most insane things,” Ms. Teng said.

The crowd favorite among the pizzas served was Steak and Potato Pizza. The tenderloin steak — cooked to a perfect medium-rare — paired beautifully with rich salsa rosso and parmesan cream. It was topped with crispy potato crackers which added texture and crunch, elevating every bite.

Another intriguing addition to the menu is the Sausage and Pumpkin Cream Pizza, featuring a sauce of velvety pumpkin puree and topped with rosemary, Italian sausage, and fresh arugula. The pumpkin puree offers a subtle nuance and compliments the robust flavors of the Italian sausage.

This October, the restaurant’s anniversary special is Seafood Pizza paired with a refreshing Valdostan Salad for P999.

Also a crowd favorite was the Salmon in Squid Ink Risotto, which features a refined pairing of creamy, briny risotto and roasted salmon, enhanced by a burst of cherry tomato confit. Despite its bold appearance, the squid ink lent a delicate creaminess, balanced by the fresh acidity of the tomatoes.

A fitting finale to the feast was the indulgent Chocolate Torta, a rich flourless chocolate cake, and Rossini Tiramisu, featuring airy mascarpone cream with notes of espresso and cocoa. Both desserts offer a delicate sweetness for a perfectly balanced finish.

As the feast drew to a close, Ms. Teng spoke with BusinessWorld about her happiness regarding Rossini’s recent milestone. She noted that over the past year, they have successfully captured emerging markets, broadening their audience, and enhanced their culinary offerings, with hopes of delighting even more diners in the future. — Edg Adrian Eva

Metro Pacific Health, mWell ink referral partnership

Officials of Metro Pacific Health Corp. and mWell signed a strategic referral partnership on Oct. 12.

METRO PACIFIC Health Corp. (MPH) has teamed up with health and wellness application mWell to allow users to book and access its network of hospitals nationwide via the digital platform.

MPH has forged a referral partnership with mWell to help provide health services to the app’s users by referring them to its network of 26 hospitals, it said in a statement.

“mWell users can directly book services for themselves through the app and access services at Metro Pacific Health (MPH) hospitals,” Chaye Cabal-Revilla, president and chief executive officer at mWell, said.

mWell doctors and HealthHub partners can refer patients to MPH for ongoing care, making the entire healthcare process seamless and integrated within the app, she said.

The signing ceremony held on Oct. 12 was attended by key executives from both companies.

MPH said the ceremony highlighted how mWell’s digital solutions can enhance patient experience, offering convenience in accessing medical care.

Facilities that are part of MPH’s network are Asian Hospital and Medical Center, Makati Medical Center, Cardinal Santos Medical Center, Commonwealth Hospital and Medical Center, De Los Santos Medical Center, Our Lady of Lourdes Hospital, Riverside Medical Center, Inc. and Davao Doctors Hospital, among others.

MPH is the healthcare arm of Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC), while mWell is its health technology platform.

MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — A.R.A. Inosante

Primex unit cancels deal for planned Pullman hotel in San Juan

EXTERIOR RENDERING of Primex Tower, Manila — PRESS.ACCOR.COM

LISTED Primex Corp. said its subsidiary has canceled the hotel management and consultancy services agreements for a planned Pullman hotel in San Juan City.

“Primex Realty Corp., a wholly owned subsidiary of Primex Corp., and S & P, Inc. have mutually agreed to disengage from their hotel management agreement and hotel consultancy services agreement for its proposed Pullman Manila at Primex Tower due to differences in design preference,” Primex Corp. said in a regulatory filing on Wednesday.

“Primex Realty is now exploring possible tie-ups with other world-renowned hotel operators,” it added.

In December 2020, Primex Realty tapped international hotel group Accor SA to manage the planned 200-room Pullman Manila at Primex Tower in the Greenhills district of San Juan.

The hotel would be at the topmost ten floors of the 50-storey Primex Tower, which also has retail and office spaces on the lower floors.

The Pullman brand is the high-end international brand of the Accor group.

Pullman Manila will feature two restaurants, a rooftop bar, a fitness center, a swimming pool, and event facilities. It was scheduled for completion last year.

Some of Primex Corp.’s other completed projects include the high-end residential developments Goldendale Village in Malabon and The Richdale in Antipolo City.

On Wednesday, Primex Corp. shares were unchanged at P2.17 apiece. — Revin Mikhael D. Ochave

India is finally becoming a clean energy superpower

FREEPIK

IT’S BETTER to under-promise and over-deliver. India’s clean power industry is finally making good on that dictum.

For several years, the country has fallen well short of the rosy visions proclaimed by its leaders. India should become the first major economy to industrialize without carbonizing, to paraphrase its Group of 20 sherpa Amitabh Kant. Prime Minister Narendra Modi promised to connect 500 gigawatts (GW) of clean energy by 2030, equivalent to all the generators in France, Germany, and Italy put together.

The picture on the ground has, until recently, been very different. A previous aspiration to hit 175 GW by 2022 came in 40% below target, and had to be fudged to avoid embarrassment. Ill-advised tariffs on solar panels, combined with contractual and political support for fossil fuels and constant changes to the rules of renewable power auctions, made matters worse.

Amid this policy chaos, wind and solar installations fell 19% last year, to 13 GW. That’s less than a third the level that would be needed for the country to be on track for Modi’s 2030 plan. Coal, the dirtiest fuel and the most readily available alternative to renewables in India, took up the slack: Usage by power plants jumped by 8.8% in the latest fiscal year through March. Plenty of analysts (including me) despaired about the prospects for a reversal.

The logjam, however, appears to be breaking. Solar panels and wind turbines have been springing up in 2024 like seedlings after the breaking of a drought. In the eight months through August, 18.8 GW of new renewable generators were connected, more than in the whole of 2023. Over the full year, that figure will increase to around 34 GW, the International Energy Agency (IEA) forecast last week, before nearly doubling to 62 GW in 2030.

Growth rates are set to overtake China in the second half of the decade and become the most rapid of any major nation, the IEA wrote.

The trend looks set to extend into next year as well. Tenders for renewable projects, a useful leading indicator, showed 70 GW of announcements and 33 GW of awards in the first half of the year alone, according to S&P Global Commodity Insights. Projects already in train would bring the total to 430 GW, renewable energy minister Pralhad Joshi told parliament in August. All but 76 GW of the total is either operating or under construction, sharply reducing the risk this is the same old case of over-promising and under-delivering.

Solar module manufacturers, encouraged by those counterproductive tariffs, have been busy building out factories. By 2026, the country will be able to assembly 172 GW of panels per year, according to Mercom India Research, a renewables consultancy. That’s sufficient to meet its own projected needs well into the 2040s, even on a pathway that takes the world to zero emissions.

While the Reserve Bank of India kept rates on hold last week, an easing of its monetary policy stance opens the way to cuts by the end of the year, which should also help: Finance costs have been one of the biggest factors holding back further renewable development in recent years.

The implications of all this could be profound. Rich countries and China each account for roughly a third of the world’s greenhouse pollution, but emissions from the former group have been declining for nearly two decades and China is likely to hit its peak this year. India, as the world’s most populous and fastest-growing major economy, is likely to be the biggest factor pushing up the world’s carbon footprint over the decades ahead.

That might be excusable in moral terms: India has barely contributed to the global climate problem so far, so can argue that countries who’ve been spewing CO2 for centuries should cut it some slack. But such rationalizations don’t offer much comfort to farmers in Uttar Pradesh hospitalized or killed by blistering summer heatwaves, or software developers in Bengaluru having to depend on water trucks because climate change is drying up the aquifers needed to keep India’s cities watered. What they need are signs that the upward trajectory of emissions is finally heading downwards.

We might be on the brink of that future. BloombergNEF estimates that an Indian power sector that was on track to install 506 GW of clean energy by the start of 2030 would see its own carbon footprint begin to decline as soon as 2026, putting the world as a whole on track to net zero emissions. Globally, we’re already installing enough solar and buying enough electric vehicles to avoid catastrophic climate change. Hitting Modi’s 500 GW target would be one more piece of the puzzle to avert that outcome.

Since coal furnaces kicked off Britain’s industrial revolution, it’s been an accepted fact that economic growth can only be bought at the cost of environmental damage. With the UK’s last coal-fired power station closing last month, that argument has been looking threadbare — and if India can now get rich without belching carbon, it may be dealt a decisive blow. For other emerging economies hoping to follow India’s development path, that would be a powerful lesson. The centuries-old nexus between pollution and wealth is finally being broken.

BLOOMBERG OPINION

Three decades of Happy Living

HAPPY LIVING GM Julian Gagliardi

THE CULMINATION of Happy Living’s 30th anniversary came on June 15 with their biggest event to date, a wine festival entitled “A Continuing Journey Across the World’s Most Famous Wine Regions and Wineries.”

This milestone event was held at The Tent at Enderun, McKinley Hill, Taguig and featured all of Happy Living’s portfolio that boasts of over 150 brands of wines and other libation drinks from over 50 suppliers around the world.

ABOUT HAPPY LIVING
Happy Living Philippines Corp. started out as a small family business importing premium quality Californian wines in 1994. Some of their earliest brands included Beringer, Chateau Montelena, Freeman Abbey, and Joseph Phelps — all of which remain in their portfolio today.

In the mid-1990s, Happy Living helped introduced the finest Californian wines to the country — before them, locally available California wines were just cheap, low-quality jug wines that included the still best-selling Carlo Rossi, plus others like Paul Masson, Almaden, Franzia and the old Inglenook generic wines.

Today, the Happy Living portfolio goes way beyond just Californian wines and includes wines from Australia, France and Chile among others.

In 2018, the company changed to new ownership and management, led by Managing Director Griffith Go and General Manager Julian Gagliardi.

MEET THE GM
I met the affable, yet confident Frenchman, Julian Gagliardi, way back in 2013 when he was still working for The Straits Wine Co. in their main Singapore hub. At that time, I was doing regional wine consultancy for an iconic Spanish winery from Rioja. The importer of this Rioja brand in Singapore at that time was The Straits Wine Co.

A few years later, I found out that Julian was assigned to their Philippine branch in Makati. He was then just in his late 20s, but even back then I knew he was someone to reckon with in the local wine industry as he was quite visible in the trade. And Julian surely did become someone to reckon with as he moved to and became the GM of the Happy Living “reboot” of 2018.

To say that Julian has lived a colorful life thus far is an understatement.

He started out as a young French boxer who traveled to Mexico to improve his boxing skills. He enrolled at the famed Marquez Boxing Gym where the legendary Marquez boxing brothers — three-division world champion Juan Manuel Marquez, best remembered as the biggest nemesis of our people’s champ Manny Pacquiao, and his younger brother two-division world champion Rafael Marquez — came from.

But this trip of over 9,000 kilometers from his homeland France to Mexico had two purposes as Julian was then concurrently studying for a masteral degree in International Management with Focus on Latin America at the Universidad Nacional Autonoma de Mexico or UNAM — so he was hitting two birds with one stone. Part of completing his UNAM masteral degree was a 10-month internship in Brazil, so Julian was once again on the move.

After this stint in Brazil, Julian had a change of heart about boxing and now wanted to be involved in the food and wine business. At that point he was already fluent in Spanish and Portuguese, on top of his mother tongue French, but he spoke no English at all.

He happened to have a cousin who lived in Singapore, so he set his sights on his new adventure here in Southeast Asia. Within three days upon arrival in Singapore, he found a job with The Straits Wine Co., where he was assigned to their back end, mainly in purchasing. Because Julian is French and can also communicate in Spanish and Portuguese, and since many of The Straits suppliers were French and Spanish speakers, it was not difficult for Julian to adapt immediately to his new role.

And as quickly as he picked up Spanish and Portuguese, Julian’s English also improved, and luckily without the Singlish accent.

Julian was dealing with over 300 wineries from around the world as a purchaser — a great start on his path to the wine industry.

As can be seen from the rapid increase in their portfolio, Julian has made his mark all over the present direction of Happy Living. In his last 10 years in the Philippines, Julian has slowly carved his name in the local wine industry.

On-premise accounts distribution in hotels and restaurants — simply known as on-premise accounts — is where Happy Living has thrived and this is where they get over 50% of their revenue. But as every wine importer in this industry knows, on-premise can be one of toughest channels to manage. It is a “dog eat dog” world in this channel, as most wine importers are not big enough to invest in retail listing fees, with the running rate being at P5,000/SKU per store, so you will find every wine importer competing in this channel.

Also, during the height of the COVID pandemic, several on-premise establishments closed down, and many bad debts were incurred among wine suppliers.

Yet for Julian and Happy Living, there were opportunities to be made, and they seized the moment when, towards the last quarter of 2020, many on-premise accounts re-opened and a lot of them were looking for wine suppliers who could service their needs.

I remembered that during those days — including from my personal experience — the wine industry was in shambles as even within Metro Manila, the different local city governments had different protocol procedures on social distancing, curfews, and even alcohol selling that affected the overall wine business. But as Julian proudly stated, Happy Living was able to fill in the gaps left by other wine suppliers, as they were able to service these on-premise accounts, especially big hotels that badly needed wines to resume their F&B operations.

Being strategically located in Makati also helped their cause, as Makati City was one of the first local governments to open up after the COVID scare started fading.

MOVING FORWARD
When asked what is in store for Happy Living, Julian just mentioned that they live by three principles: 1.) To pay tribute to their past legacy, respecting what the original owners had started; 2.) Embrace the current and adapt to the challenges at present; and, 3.) Look and prepare for the future.

These may be general statements, but Julian emphatically mentioned service. Service translates to giving clients the right products, at the right prices, at the right time.

Choosing Enderun, a hospitality school, as the venue for their 30th anniversary event, was also part of the Happy Living credo — to educate the new breed of hospitality practitioners. Surely, these practitioners will eventually be managing on-premise accounts, whether as owners or employees, and Happy Living will be there more than happy to service these accounts.

RECOMMENDED WINES
When I asked Julian what he feels are the best wines in their portfolio to recommend, he quickly replied, in true French fashion: “Bordeaux second or third labels from Grand Cru classified Chateaux, like the Aspirant de Beychevelle (the 3rd label of 4th growth Chateau Beychevelle in St-Julien region), and Labastide Dauzac (the 2nd label of 5th growth Chateau Dauzac in Margaux region). Bordeaux is the only region in the world that has wines that are of great quality and age very well. No other region in the world can have these types of quality and age-ability at the mid P2,000.00 range.” Amen to that, Julian.

To get to know more about Happy Living, visit their website at https://www.happylivingph.com/.

 

Sherwin A. Lao is the first Filipino wine writer member of both the Bordeaux-based Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux (FIJEV) and the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, e-mail the author at wineprotege@gmail.com, or check his wine training website https://thewinetrainingcamp.wordpress.com/services/.

Anker’s new Zolo power banks, chargers now available in PHL

ANKER INNOVATIONS has launched its Zolo line of portable power banks and charger adapters in the Philippines.

The Zolo Power Bank series is available in two power capacities, namely 10,000mAh and 20,000mAh.

“Anker’s Zolo Power Bank Series allows users to charge two devices simultaneously, offering a compact yet powerful charging solution for those always on the move. With a lightweight build, it’s the perfect travel companion, whether for a quick day trip or a long journey,” the company said in a statement.

Both models have built-in USB-C and Lightning cables and have a total of four outputs, two inputs and an integrated display.

The Zolo Power Bank 10K mAh model has dimensions of 109.9 x 65.5 x 25 millimeters (mm), while the 20K variant measures 119.9 x 73.4 x 31.4 mm.

Anker said the 10,000 mAh model can provide at least two full charges for most smartphones.

“With 30 watts (W) of fast charging power, the Anker Zolo cuts charging times significantly, which means there’s no need for breaks; you’ll catch the sunset in time to take those pics because the Zolo Power Bank can power up the iPhone 15 by up to 57% in just 30 minutes,” it said.

“The Zolo Power Bank also comes equipped with a real-time digital display, letting you stay on top of your remaining battery life. The device also features a charging reminder, so you never have to second-guess whether your power bank needs a recharge before your next big adventure,” Anker added.

Meanwhile, the company also released new versions of its 20W and 30W Zolo Charger power adapters.

“Featuring a single USB-C port, these chargers deliver power up to three times faster than their predecessors, making them the perfect match for your Zolo Power Bank with a built-in USB-C cable,” Anker said.

“The upgraded temperature control ensures a safer experience, charging at temperatures 13°C lower than standard chargers. Thanks to innovative stacking technology, the Zolo Chargers are also 25% smaller, offering compact convenience without the excess heat,” it added.

The Zolo Power Bank and Zolo Charger are available in three colors: white, pink, and blue. They are now available for purchase via anker.ph and through Anker’s Shopee and Lazada stores. — BVR

SEC files complaint vs ukay-ukay supplier for investment activities

PIXABAY

THE Securities and Exchange Commission (SEC) has filed a criminal complaint against Bulacan Ukay Ukay Direct Supplier for allegedly offering investments to the public.

The entity has allegedly violated Sections 8, 26, and 28 of Republic Act (RA) No. 8799, or the Securities Regulation Code (SRC), in relation to relevant provisions of RA No. 10175, or the Cybercrime Prevention Act; RA No. 11765, or the Financial Products and Services Consumer Protection Act (FCPA); and RA No. 9160, or the Anti-Money Laundering Act (AMLA), the commission said in an e-mailed statement on Wednesday.

The complaint was filed with the Justice department on Oct. 10.

According to the SEC, the complaint was filed after an entrapment operation by the Philippine National Police Anti-Fraud and Commercial Crimes Unit and the SEC Enforcement and Investor Protection Department (EIPD) in Guiguinto, Bulacan on Oct. 9.

The commission said the entity’s owner and sole proprietor was reportedly soliciting investments ranging from P2 million to P4 million, with supposed returns of 7% to 10% monthly, through social media.

Investigations by the EIPD also showed that the entity was allegedly soliciting investments from the public without the necessary registration and license from the SEC.

The SRC forbids the sale or distribution of securities without an SEC-approved registration. Violators will face a fine of up to P5 million, or imprisonment of up to 21 years, or both.

The Cybercrime Prevention Act raises the penalty for crimes committed with the use of information and communications technologies by one degree higher.

Meanwhile, the FCPA classifies the deceptive solicitation of investments to the public as investment fraud, while persons found violating provisions of the SRC may be charged with money laundering under the AMLA. — Revin Mikhael D. Ochave

As AI booms, techs turn to nuclear

FREEPIK

Tech giant Google is reportedly contracting several small nuclear power plants to secure a steady supply of electricity for its data centers by 2030. This move reflects the company’s growing demand for energy, particularly with the rise of artificial intelligence (AI). At the same time, Google sees nuclear power as a low-carbon solution to meet its energy needs sustainably.

According to an article in The Guardian by Alex Lawson, Google has signed a deal to buy electricity from six or seven small modular reactors (SMRs) to be built by California-based Kairos Power. The first SMR is expected to be operational within six years, with the rest coming online by 2035. This shift to nuclear aligns with Google’s forecast of a significant increase in energy consumption as AI-driven services expand.

Alphabet, Google’s parent company, described this nuclear initiative as a way to secure a “clean, round-the-clock power source that can help us reliably meet electricity demands.” Nuclear energy is said to offer a reliable and low-carbon solution, which aligns with Google’s sustainability goals and supports the continuous operation of energy-intensive data centers.

Google is not the only tech company betting on nuclear power. In March, Amazon purchased a data center in Pennsylvania powered by nuclear energy. Following suit, Microsoft signed a deal in September with a nuclear power facility located on Three Mile Island, also in Pennsylvania. The Guardian attributed these developments to the explosive growth of AI and cloud computing, which have drastically increased energy needs.

These tech companies are preparing for future energy demands even before consumption peaks, recognizing that energy infrastructure takes time to build. As technology evolves and becomes more integrated into every aspect of life, more nuclear power plants may be contracted to support high-tech operations. This trend indicates that the tech industry views nuclear energy as essential for achieving energy security in the era of AI.

Microsoft’s deal involves the revival of a reactor at the infamous Three Mile Island site, where a meltdown in 1979 marked the worst nuclear accident in US history. Although the accident caused no immediate deaths, it severely damaged public confidence in nuclear energy. After the incident, Unit 2 at the facility was decommissioned. Unit 1, however, continued operating until 2019, when it was shut down for economic reasons.

The plant’s recent revival reflects the changing landscape of energy demand. With a 20-year power purchase agreement secured with Microsoft, the plant’s operator, Constellation Energy, decided to restart Unit 1. This recommissioning marks the first time a nuclear reactor in the US has resumed operation after closure.

The Guardian reported that the reactivated plant would generate an additional 835 megawatts for Pennsylvania’s grid, create 3,400 jobs, and contribute at least $16 billion to the state economy. Constellation emphasized that the plant had been one of the safest and most reliable before its previous shutdown.

Despite the plant’s troubled history, Microsoft’s long-term commitment signals a level of confidence in the safety and reliability of the site. In preparation for the restart, the reactor will undergo a comprehensive safety and environmental review by the US Nuclear Regulatory Commission. Additionally, Constellation plans to apply for licenses that could extend the plant’s operations until at least 2054.

The revival of nuclear energy, particularly among tech giants, is not without controversy. While nuclear offers a reliable and low-emission energy source, it poses environmental and safety risks. Nuclear plants depend on water sources for cooling, making them vulnerable to climate-related disasters like droughts, floods, or hurricanes. Earthquakes and other unforeseen events could also trigger accidents, as seen in past incidents like Chernobyl (1986) and Fukushima (2011).

Nevertheless, tech companies appear willing to take these risks, likely driven by the surge in energy demand from AI. According to Goldman Sachs, The Guardian reported, AI-related energy consumption could grow by 160% by 2030, with data centers projected to use about 8% of US electricity by that time. With such rapid growth, stable and scalable power sources like nuclear become essential.

Michael Terrell, Google’s senior director for energy and climate, was quoted by The Guardian as saying: “The grid needs new electricity sources to support AI technologies that are powering major scientific advances, improving services for businesses and customers, and driving national competitiveness and economic growth.”

Interestingly, the Philippines is also exploring nuclear energy as part of its energy strategy. Recently, Manila Electric Co. (Meralco) partnered with South Korea’s Samsung C&T Corp. Engineering & Construction Group to assess the potential of nuclear power. Their discussions cover both large-scale nuclear plants and smaller modular reactors, similar to what tech giants in the US are pursuing.

The government has expressed interest in integrating nuclear energy into the country’s power mix, aiming to have operational plants by 2032. There is even renewed interest in reviving the Bataan Nuclear Power Plant, a facility that was built but never activated due to political and safety concerns in the 1980s.

At the heart of this nuclear shift is the goal of energy security —ensuring an uninterrupted, sustainable, and efficient energy supply. As AI reshapes industries and consumer behavior, electricity becomes as essential as food and water. Both businesses and households now rely heavily on power for daily operations, making energy availability a critical issue.

Although I have reservations about operating nuclear plants locally, the rising demand for energy cannot be ignored. With proper regulation, modern safety protocols, and strategic investments, nuclear power might become a viable solution for the Philippines. However, the decision to adopt nuclear energy must weigh the potential benefits against the risks and explore how it can complement renewable energy sources.

The shift of tech giants like Google, Amazon, and Microsoft toward nuclear energy highlights the growing pressure to secure reliable power sources for a future driven by AI and cloud technologies. While nuclear energy offers a low-carbon solution to energy-intensive operations, it also comes with significant risks. The decision to embrace nuclear power, whether in the US or the Philippines, will require careful planning, stringent regulation, and public engagement.

Ultimately, achieving energy security in a world increasingly reliant on technology will depend on finding the right balance between safety, sustainability, and economic growth. As companies and governments explore their options, nuclear energy might well play a pivotal role — whether we are ready for it or not.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Tourists seeking luxury are flocking to Vietnam’s fine dining restaurants

Sam Aisbett opened Akuna in Ho Chi Minh City, Vietnam, in July 2023 — AKUNARESTAURANT.COM

THE week before Sam Aisbett opened Akuna in Ho Chi Minh City, Vietnam, in July 2023, he panicked. “I said, ‘What the hell am I doing? What an idiot,’” recalled the Australian chef in a recent video interview. There was no way his restaurant, with a menu price of 3.9 million dong ($160) — at least 20 times what stalls across the street were charging — could survive, he thought, even though he had a Michelin star under his belt.

But the risk paid off. Akuna flourished, and about a year later, the place bagged a star for Aisbett’s ingenious dishes created from Vietnamese ingredients. Shaved squid is served with local samphire, hearts of palm, and squid dumplings, while uni is accompanied by fan shell clams and pickled durian.

Akuna’s opening is just one of the places on the burgeoning list of fine dining spots in Vietnam. The country is famous for its array of cheap and delectable noodles and skewers and sandwiches; now it’s gaining recognition among hungry travelers seeking luxury.

Last year the Michelin Guide arrived in Vietnam and awarded one star to four restaurants. Three more joined the list this year, including La Maison 1888 in Da Nang, a signal that Vietnam’s gourmet scene extends beyond its major cities. Of the seven starred restaurants, only one was French, despite the cuisine’s ties to fine dining and Vietnam’s colonial past. Three — Tam Vi, Anan Saigon, and Gia — are categorized as Vietnamese. (Akuna is labeled “innovative.”)

Michelin’s entry into Vietnam comes as the country is expected to see a record 771 trillion dong ($31 billion) spending in travel and tourism spending this year, the World Travel & Tourism Council estimates. This represents about 7% of its economy and supports one in nine jobs in a country of roughly 100 million people. Domestic travelers are expected to spend a historic high 435 trillion dong this year, the organization added, as the country’s economy and middle-class population grow.

Luxury travel is expanding faster than other segments of the industry, said Margaux Constantin, a partner at McKinsey & Co. who focuses on tourism, in a video interview. This includes aspirational travelers, who may not be rich but are willing to splurge on occasion, increasing demand for premium dining. Vietnam’s proximity to other countries with a rising middle class such as India has helped as well — the number of visitors from India has tripled since 2019, reaching 312,000 between January and August of this year, partially offsetting a fall in Chinese visitors.

Food plays a crucial role in drawing globetrotters, with fine dining experiences being the second most popular activity among tourists, according to a McKinsey survey of 877 US and UK travelers earlier this summer, right behind sightseeing-and-art experiences.

At least one luxury tour provider has turned its focus to gastronomy in Vietnam. Abercrombie & Kent selected Vietnam as the first destination for its food-focused tours, which began in May. Increasing demand for culinary experiences on previous tours prompted the decision, said Suzanne Teng, global group product director, in an e-mail. The release of a Michelin Guide for Vietnam last year provided a “marketable hook,” she said, enabling visitors to combine street food experiences with meals at the one-starred Anan Saigon and Gia. Higher-than-expected demand has led the company to double the Vietnam food trips to 12 in 2025.

When Peter Franklin first opened Anan Saigon in 2017, friends thought he was “trying to sell ice to the Eskimos,” he says. A tasting menu meal there costs 2.3 million dong; its success showed there’s a market for contemporary Vietnamese food. “Travelers now can enjoy both a delicious $1 street-style banh mi and Anan Saigon luxurious-dining $100 banh mi,” jokes Franklin.

Gia co-founder and owner Sam Tran, who spent years working in Melbourne before returning to hometown of Hanoi, said in a video interview that it’s important to recognize the country’s culinary scene extends beyond street food. “I saw the opportunity to elevate Vietnamese cuisine to a more refined setting,” she said.

Vietnam has a rich history of food prepared for royalty during its monarchy before World War II: Tran said it’s a source of inspiration for her. For instance, the Lang basil used in a jellyfish dish is sourced from Lang Thuong, a ward in Hanoi where herbs for the royal family were once grown, Tran said.

Chefs note that while their clientele used to be predominantly local, international visitors now make up half their customers.

For people in finance, the Michelin Guide offers recognizable names to host clients where “half the work is done,” said Khanh Vu, deputy managing director of Vietnam-focused investment firm VinaCapital, in a video interview. It showcases how much Vietnam has developed: “Now you’re not a frontier backwater anymore. You’re a real serious player in the world.”

Plus, even the country’s expensive restaurants feel like a relative bargain compared with the prices of high-end Vietnamese dining rooms in other parts of the world, thanks to low labor and rent costs. The one-star restaurants Le Pavillon in New York City and Nightbird in San Francisco cost about twice as much as Anan Saigon.

Still, competing with street vendors “is its own little beast,” says Aisbett. So is navigating Vietnam’s food supply chain, since there isn’t a sizable fine dining industry yet. “When you’re one restaurant trying to get things grown for you, it’s extremely hard,” he says.

The country’s fine dining scene is still nascent, compared with its Asian counterparts. Thailand has 35 Michelin-starred restaurants, while Singapore and Hong Kong have more than 50 each. Anan Saigon is the only Vietnamese restaurant on Asia’s 50 Best Restaurants list.

Still, it’s just a matter of time before Vietnam’s culinary scene catches up, says Tran. As the current generation of renowned chefs train their assistants, more restaurants will emerge and the industry will become more professionalized. “I want them, after a few years working with me, they can open their own restaurant. And they work in the right way. And,” she adds, “they do the right thing for Vietnamese cuisine.” — Bloomberg

TDF yields down before BSP cut

TERM DEPOSIT YIELDS fell on Wednesday ahead of a widely expected rate cut by the Bangko Sentral ng Pilipinas (BSP).

The central bank’s term deposit facility (TDF) fetched bids amounting to P191.794 billion on Wednesday, slightly above the P190-billion offering but was lower the P251.112 billion in tenders for the same volume auctioned off a week ago.

Broken down, tenders for the seven-day papers reached P98.069 billion, below the P100 billion auctioned off by the central bank and the P137.878 billion in bids for the same volume offered the previous week.

Banks asked for yields ranging from 6.2355% to 6.28%, wider than the 6.25-6.28% band seen a week earlier. This caused the average rate of the one-week deposits to slip by 0.26 basis point (bp) to 6.2642% from 6.2668% previously.

Meanwhile, bids for the 14-day term deposits amounted to P93.725 billion, above the P90-billion offering but below the P113.234 billion in tenders for the same amount auctioned off a week earlier.

Accepted rates for the tenor were from 6.19% to 6.35%, lower than the 6.25% to 6.36% margin seen a week ago. With this, the average rate for the two-week deposits fell by 3.42 bps to 6.3019% from 6.3361% logged in the prior auction.

The central bank has not auctioned 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

Term deposit yields went down ahead of the BSP’s announcement of its policy decision on Wednesday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Monetary Board on Wednesday cut benchmark interest rates by 25 bps for a second straight meeting, as expected by 16 of 19 analysts in a BusinessWorld poll, as price pressures remain manageable.

This brought its policy rate to 6%. The interest rates on the BSP’s overnight deposit and lending facilities were also adjusted to 5.5% and 6.5%, respectively.

The BSP in August kicked off its easing cycle with a 25-bp reduction, marking its first rate cut in nearly four years.

BSP Governor Eli M. Remolona, Jr. said at a briefing on Wednesday that they could cut benchmark rates by another 25 bps at their Dec. 19 meeting, noting that a one-time 50-bp reduction could be “too aggressive a cut,” except in a hard landing scenario.

Mr. Remolona added that they could slash rates by 100 bps in 2025, but said they prefer to take “baby steps” in their policy easing cycle.

Meanwhile, Mr. Ricafort said that lower global oil prices recently also contributed to the decline in TDF yields.

Oil prices inched higher on Wednesday amid uncertainty over what may happen next in the Middle East conflict, after demand concerns knocked the market to its lowest since early October in the previous session, Reuters reported.

Brent crude oil futures rose 19 cents or 0.3% to $74.44 a barrel by 0630 GMT. US West Texas Intermediate crude futures climbed 24 cents or 0.3% to $70.82 per barrel.

Oil prices tumbled more than 4% to a near two-week low on Tuesday due to a weaker demand outlook and after a media report said Israel would not strike Iranian nuclear and oil sites, easing fears of a supply disruption. 

However, concerns about an escalation in the conflict between Israel and Iran-backed militant group Hezbollah persist, with the US on Tuesday saying it opposed the scope of Israel’s air strikes in Beirut over the past few weeks.

Term deposit yields went down ahead of the cut in banks’ reserve requirement ratios (RRR) that will take effect next week, Mr. Ricafort added.

The BSP will reduce the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 bps to 7% from 9.5% effective on Oct. 25.

It will also cut the RRR for digital banks by 200 bps to 4%, while the ratio for thrift lenders will be reduced by 100 bps to 1%. Rural and cooperative banks’ RRR will likewise go down by 100 bps to 0%.

Mr. Remolona earlier said they could bring down the RRR for big banks to as low as zero within his term, which ends in 2029. — Luisa Maria Jacinta C. Jocson

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