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Challenges and opportunities of Philippine economic digitalization

DAVID DVORACEK-UNSPLASH

OVER the past few years, a substantial improvement in the Philippines’ digital infrastructure has paved the way for further digitalization in both the financial system and economic activities.  Despite some challenges, it is encouraging to see authorities’ efforts to facilitate the adoption of digitalization in both the public and private sectors.

DIGITALIZATION EFFORTS
The Philippines’ digital economy contributed 9.4% to GDP in 2022, 11% higher than in the previous year. The sector employed about 6 million people or 13% of total employment. As of end-2022, digital payments accounted for 42.1% of the total volume of payments. The digital banking landscape continues to expand and now comprises six digital banks and 285 fintech companies.

Further development in the digital economy can create jobs and promote long-term growth by improving productivity and competitiveness. Embracing a more technology-driven economy is essential in the longer term to improve productivity and competitiveness.

Philippine authorities have made great strides in their efforts to promote digitalization. The Philippine Development Plan 2023-2028 formulates the long-term economic digitalization plan. The rollout of the national ID or PhilSys ID system accelerates the transition to a digital economy. The central bank’s digital payments transformation roadmap 2020-2023 outlines the plan for financial digitalization with satisfactory progress. Together, these efforts can bring forth major opportunities for people and the government in the long term.

In addition, the delivery of government services can improve and become more efficient and transparent through digitalization. With the goal of achieving “One Digitized Government” for the entire country, the e-Government Master Plan 2022 was introduced as the blueprint for developing a harmonized government information system by digitally transforming all basic services.

On the fiscal front, digitalization has enabled the government to collect taxes more efficiently and generate additional tax revenue from digital service providers. In particular, the House of Representatives approved a 12% value-added tax (VAT) on digital services in 2021. VAT on digital service transactions is expected to generate P10.66 billion in annual revenue, according to estimates by the Department of Finance.

Moreover, financial digitalization could enhance financial inclusion and its further development can help Filipinos to access digital services more conveniently. Financial digitalization has progressed well during the COVID-19 pandemic. Transactions related to digital payments have grown rapidly and the creation of digital banks has led to innovative channels for payments, lending, digital banking, insurance and many others. 

CHALLENGES TO OVERCOME
Although authorities’ digitalization efforts promise to bring numerous opportunities to the economy, some challenges should be resolved for digitalization to be successful. They include upgrading labor skills and regulations and enhancing cybersecurity against digital threats and vulnerabilities.

Despite significant progress, there is room for the country’s digital infrastructure development to catch up with its ASEAN peers (Table 1). The absence of reliable and high-speed internet connections in most rural and remote areas could hinder digital inclusion and economic development. Furthermore, the country lags behind its regional peers in key areas of digital development such as digital transformation and trade, digital government and digital security (Table 2).

In other aspects, it is essential for the Philippines to upgrade its soft infrastructure for economic digitalization. For example, the digital skill gaps among the labor force, people’s resistance to digital transformation, and regulatory gaps and loopholes should be addressed effectively.

Moreover, it is hard for the regulatory framework to catch up with the relentless development of technology, such as artificial intelligence (AI), blockchain, the Internet of Things and big data. Developing and implementing appropriate regulations in a timely manner can be challenging.

Appropriate regulations on the use of digitalization would need to be put in place to safeguard consumers from digital threats and vulnerabilities. The Philippines was the second-most attacked nation in cyberspace in 2022, according to Kaspersky. The country’s largest telecommunication company recorded 16 billion cyberattacks in 2023, nearly 90 times higher than in 2022. The country also ranked 45th among 175 countries in the 2023 National Cybersecurity Index of the eGov Academy.

Philippine authorities are on the right track to formulate policies for promoting economic digitalization. To ensure a smooth digitalization process, they should prioritize investment in infrastructure development, enhance digital skills of the workforce and strengthen the regulatory framework.

 

Andrew Tsang joined AMRO in September 2021. He is a senior economist focusing on economic surveillance of the Philippines. He is also a backup economist for Cambodia.

Gov’t must roll out ‘credit-worthy’ projects to boost banks’ agri loans

THE GOVERNMENT needs to roll out more “credit-worthy” projects for the agriculture sector to encourage banks to fund food security and agricultural development initiatives, a member of the central bank’s policy-setting Monetary Board said.

“The banks want to lend money. The problem is they’re having a hard time finding credit-worthy projects… The public goods that are necessary to create and maintain credit-worthy projects are not there,” Monetary Board member V. Bruce J. Tolentino said in a panel discussion at the Asian Development Bank’s (ADB) Food Security Forum on Tuesday.

Banks are careful about lending to fund the government’s agriculture-related programs due to insufficient public support services, Mr. Tolentino said.

“There are not too many agriculture projects that are demonstrably credit-worthy because of inadequacies in basics: transport, power, land tenure, seeds…,” he said in a separate Viber message.

Under Republic Act (RA) No. 11901 or the Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022, banks must allocate 25% of their total loanable funds for the agricultural and fisheries sectors.

Banks can comply by lending to rural community beneficiaries, including agrarian reform beneficiaries, to finance projects in these sectors, including lending to parts of the agricultural value chain and agri-business enterprises, as well as engaging in sustainable finance.

The law repealed RA 10000 or the Agri-Agra Credit Reform Act of 2009, which required banks to lend 10% to the agrarian reform sector and 15% to the agriculture sector.

Including parts of the agricultural value chain like processors, transporters, mills and warehouse owners, allows banks to finance the development of the sector, Mr. Tolentino said.

“You’re able to enable the banks to lend to a much broader swathe of players in the countryside,” he said.

Since the enactment of RA 11901, less banks are paying penalties for noncompliance with the credit quota as loans to the agriculture sector quadrupled over the past year, Mr. Tolentino noted.

Latest data on banks’ loans to the agriculture sector was not immediately available.

“Reforms to enable the private sector to act according to their best interest, and for government to provide the public goods [are] necessary so that the private sector can act according to their best interest,” Mr. Tolentino said.

In the 2021 Countryside Bank Survey conducted by the Bangko Sentral ng Pilipinas and the Department of Agriculture, 76% of bank branches said they plan to expand lending to the agriculture sector. — B.M.D. Cruz

PHL PC shipments to rebound

PHILSTAR FILE PHOTO

THE PHILIPPINE personal computer (PC) market is forecast to grow 26.5% to 2.4 million shipments this year led by purchases for the education sector, according to the International Data Corp. (IDC).

This will reverse the year-on-year declines seen in 2022 and 2023, when shipments stood at 2.5 million and 1.89 million, respectively.

The five brands expected to lead the market this year will be Acer, Lenovo, HP, ASUS, and Dell, which are awardees of the Department of Education’s (DepEd) Computerization Program (DCP) in 2022, IDC Philippines Associate Research Analyst for Devices Research Roben Victor M. Dispo said in an e-mail.

IDC also expects Acer to retain its spot as the top performer by market share, Mr. Dispo added.

Acer Group led the Philippine market in 2023 with a 26.5% share selling 501,000 units in 2023. Lenovo followed with a 21.5% share, selling 408,000 units, while HP, Inc. and Dell Technologies held 12.8% and 7.6% shares, respectively shipping 243,000 and 145,000 units.

DCP is a government initiative that aims to provide public school teachers with laptops to enhance the teaching-learning experience.

Based on IDC’s latest Worldwide Quarterly Personal Computing Device Tracker report, more than 490,000 laptops are expected to be delivered under the DCP via multiple deals announced since the end of last year.

Asked if last year’s Senate probe into the DepEd’s supposedly overpriced and outdated laptop purchases will affect 2024 shipments, Mr. Dispo said the DCP deals that will ship this year have already been awarded.

“DCP 2022 budget was already awarded last December and is already shipping during the first quarter of 2024. Unless DepEd calls for a rebid, the estimated projected shipments will stay the same,” he said.

Meanwhile, PC prices are expected to remain competitive as vendors will try to boost demand, but the actual impact of costs depends more on market dynamics, competitive pressures, and consumer behavior, Mr. Dispo said.

“However, a substantial rebound in both consumer and commercial sectors is unlikely due to ongoing macroeconomic uncertainty dampening demand,” he added. — Aubrey Rose A. Inosante

Dining In/Out (04/11/24)

City of Dreams celebrates summer in the city

SUMMER is in full swing at City of Dreams Manila, where curated dining and staycation offerings spell a perfect summer getaway. Nobu Manila’s well-loved brunch offered only on Sundays, adds a Saturday service starting April 20. As what the growing number of Nobu brunch fans love, the hefty spread features a selection of new-style Japanese cuisine including a chef’s choice of seasonal sashimi, sushi, and maki rolls matched with Nobu signature sauces at the Sushi Bar. The Carving of the Day, Filipino-inspired dishes prepared the Nobu way, other specialty dishes, salads and soups are also available in a buffet combined with a special a la carte menu cooked a la minute. A varied selection of desserts and beverages complete the dining experience. The Nobu brunch experience is available every weekend from 11:30 a.m. to 3 p.m. The Brunch package starts at P3,499 net per person, inclusive of unlimited sodas, chilled juices, mocktails, tea, and coffee, while children ages six to 12 years enjoy a special rate of P1,749 per child.

STAYCATIONS
City Of Dreams Manila entices guests to have a well-deserved break through the “It’s Summer in the City” promotion at its three Forbes Travel Guide (FTG) Star-rated hotels. The promotion highlights special rates for the season starting at P9,698 net for a either a one king bed or two twin beds at Hyatt Regency Manila; P10,700 net for a Nobu deluxe room with city view; and P18,200 net for a Nüwa deluxe room. The overnight stay package is for two adults and two children (12 years old and below), which already comes with a complimentary breakfast and fully stocked and replenishable Maxibar. Snacks and refreshments ranging from chilled juices to mocktails and tipples are available from either Breezes or Wave, Nüwa’s and Nobu’s poolside bars. Guests can indulge in a luxurious spa experience at the FTG Five Star Nüwa Spa or Nobu Spa, while over 20 restaurants offering premium dining experiences will appeal to food lovers. The children can fill their hours with unlimited play with the 12 attractions at DreamPlay. “It’s Summer in the City” promotion’s booking period is until May 31, 2024 with stay period until June 1, 2024, except on blackout dates. For inquiries, call 8800-8080 or e-mail guestservices@cod-manila.com or visit www.cityofdreamsmanila.com.

McDonald’s adds new dishes

MCDONALD’S introduces new sides: the Sweet Corn McShaker Fries, the ChocNut Sundae and McCafe ChocNut Frappé. The fries have a sweet and salty taste with a distinct sweet corn flavor, shaken into McDonald’s World-Famous Fries. The Sundae and the Frappé have chocolatey, nutty notes, all available for a limited time only. The McDonald’s Sweet Corn McShaker Fries can be enjoyed ala carte in Medium, Large or BFF, or as your fries upgrade to any meal. The ChocNut Sundae likewise may be enjoyed ala carte or as an add-on to your meal for P55 while the ChocNut Frappe is available in Medium and Large ala carte or as an upgrade to your drink at branches of McDonald’s with McCafe only. Meanwhile, they’re sprucing up the rest of menu: their Double Cheeseburger has upgraded buns, which boast a softer texture and a shiny glaze; and the patties have become juicier thanks to a wider gap in the grill, and the vegetables are fresher with a 60% reduction in stored vegetables. “By incorporating familiar Filipino flavors into our menu, we are not only catering to the Filipino palate but also creating a shared experience across generations,” said Katrina Lee-Chua, Director for Marketing & Channels. Promotions of the new items will be available through the McDonald’s App.

Casa Buenas marries food and wine in an exclusive pairing event

FILIPINO-SPANISH restaurant Casa Buenas in Newport World Resorts and Philippine Wine Merchants invite gourmands and connoisseurs to its first Wine Pairing Affair on April 18. Culinary creations from award-winning chefs and premium spirits from Chile and Hungary match up for a night to remember. The Wine Pairing Affair will feature eight different stations, each with its own curated food-and-wine pairing. Guests get the liberty to explore any and all options to their hearts’ and palates’ content while walking around. Philippine Wine Merchants will be bringing seven unique varieties of Montes Alpha and a special vintage Disznókő. Casa Buenas will be preparing eight hors d’oeuvres, including Duck Breast with Chickpeas, Cauliflower,and Jus paired with Montes Alpha Cabernet Sauvignon. The wine’s round tannins and rich acidity cut through the fullness of the dark meat while its ripe fruit flavors and dark chocolate notes amplify the savory elements of the dish.  The experience starts at a rate of P5,700 nett. Doors open at 6:00 p.m. For reservations, contact (02) 7808-8988 or 0917-878-8312 or email casa.buenas@newportworldresorts.com.

Coca-Cola goes K-Pop

COCA-COLA has introduced the newest addition to the Coca-Cola Creations line-up, Coca-Cola K-Wave Zero Sugar. Offering a limited-edition flavor and experience, Coca-Cola® K-Wave Zero Sugar celebrates fans and their infinite devotion for K-Pop. First launched in South Korea in February and now launching across the region, the fans can look forward to a suite of music-focused digital and IRL experiences featuring some of the genre’s biggest stars. In addition to the new limited-edition flavor, three K-Pop groups, Stray Kids, ITZY, NMIXX, and the founder of JYP Entertainment, J.Y. Park, have created unexpected experiences for devoted fans. As part of this collaboration, the groups have teamed up to drop a K-Pop anthem and music video called “Like Magic,” produced by J.Y. Park. The full song and video will be available on JYP Entertainment’s YouTube channel. “We are very excited to celebrate the incredible passion of K-Pop fandoms, especially here in ASEAN & South Pacific,” says Teejae Sonza, Senior Marketing Director for Coca-Cola Trademark, Coca-Cola ASEAN & South Pacific. “This isn’t just a limited-edition drink; it’s a one-of-a-kind immersive experience — a true taste of Coca-Cola magic infused with the energy of K-Pop. Just like Coke Creations is known for, it all starts with an amazing Coca-Cola Zero Sugar flavor, but with a little dash of fruity K-Pop twist. And there’s more! Fans can also embark on an AI-powered journey to customize their music video, all thanks to our exciting collaboration with JYP Entertainment and three of the hottest K-Pop groups today.” Coca-Cola K-Wave Zero Sugar will be available in select markets across the region including Singapore, Indonesia, Vietnam, Thailand, Philippines, Australia and around the world. A frozen variation will be available in select markets, including Australia.

Seattle’s Best presents Tiramisu Cloud Cream Collection

SEATTLE’S BEST Coffee is introducing its newest offering, the Tiramisu Cloud Cream Collection. Seattle’s Best Coffee’s Tiramisu captures all the flavors of this famous dessert in its newest collection, which features three signature coffee drinks made with a layer of Tiramisu Cloud Cream on top. The Iced Cloud Americano has a smooth espresso note with the flavor of Tiramisu cloud cream. There’s the Iced Cloud Latte, an over-ice creation with notes of espresso, milk and a Tiramisu cloud cream topping for those who prefer something milkier. Finally, the Iced Cloud Breve, another signature iced beverage with an espresso note, is balanced with a combination of milk and cream and topped with Tiramisu cloud cream. To know more about Seattle Best Coffee’s latest offerings and updates, follow their social media pages on Facebook (@seattlesbestcoffeephilippines) and Instagram (@seattlesbestph).

Security Bank to hold stockholders’ meeting via remote communication on May 7

 

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DALI targets to expand presence in Luzon with 950 stores by yearend

DALI EVERYDAY GROCERY FACEBOOK PAGE

LOCAL discount grocery chain DALI has announced plans to expand its presence in Luzon, aiming to have up to 950 stores by the end of the year.

“We’re only going to stay in Luzon for now…, (and) we’re probably going to hit about 900 (to) 950 stores by the end of this year,” Anja Grote Westrick, director of strategic supply chain and ESG officer at DALI operator Hard Discount Philippines, Inc., told reporters on Tuesday.

 Dali is a discount grocery chain that currently has over 250 branches in the Philippines, providing competitive pricing in local neighborhoods.

 “The whole discount principle is you have a limited assortment, but the products that you have in your assortment are selling at high volume,” Ms. Westrick said.

 DALI also targets to open in June its sixth distribution center in Naic, Cavite, a town about 50 kilometers south of Manila.

 “On every store, there’s a certain limit in terms of sales, so you need to expand in terms of stores as much as possible so that you generate volume,” Ms. Westrick said.

 “When you go out to the countryside, it’s not that much… so there, people are more used to taking a tricycle to the store. And there, you can spread out the stores a little bit more,” she added.

 When asked about the provinces where the new DALI branches will be set up this year, Ms. Westrick said that they would be established “everywhere where we are now… it’s just picking the spots in between.”

The majority (around 60-70%) of DALI’s products are locally manufactured, while several others are imported from Malaysia, China, and Europe.

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

This marked the company’s second investment in the Philippines, following its investment in the grab-and-go coffee chain Pickup Coffee the previous year. — Beatriz Marie D. Cruz

Philippine Energy Plan won’t ensure security

The Philippine Electric Power Industry Forum (PEPIF) 2024 with the theme “Powering a sustainable and secure energy future for the country” held at the Iloilo Convention Center on April 5 was a great success. Audience-packed, information-loaded and networking-rich, it was sponsored by the Independent Electricity Market Operator of the Philippines (IEMOP). Congratulations, IEMOP.

The opening remarks were given by Iloilo City Mayor Jerry Treñas. It was a warm, friendly and challenging message. Warm because he thanked the participants from Metro Manila and other provinces for flying to Iloilo and spending their money there. Challenging because he narrated the huge inconvenience of power blackouts the city and the entire province of Panay and four other provinces suffered in early January and early March, and the need for big power supply given the huge demand from many existing and potential investors and consumers in the province and island.

Energy Secretary Raphael P.M. Lotilla could not come but he gave an inspirational keynote message explaining the need for energy security to help attain economic security. His message was delivered and read by Energy Undersecretary Rowena Guevara. The overall roadmap as contained in the Philippine Energy Plan (PEP) until 2050 and National Renewable Energy Program (NREP) was ably presented by Energy Assistant Secretary Mylene Capongcol.

Other information-packed presentations came from the Energy Regulatory Commission, National Grid Corp. of the Philippines, National Transmission Corp., National Electrification Administration, private players Aboitiz Renewables, Inc. and MORE Power in Iloilo City.

In this column last Tuesday, I made an estimate and forecast of how much new power generation the Philippines should have given the high GDP growth targets set by the economic team — 6-7% for 2024, 6.5-7.5% for 2025 and 6.5-8% for 2026-2028 and avoid blackout.

This piece will attempt to quantify the projected power generation from 2023-2028 given the new committed projects and compare it with the projected needs of the country over the same period.

From a total installed capacity of 28,258 megawatts (MW) in 2022, about 3,193 MW are expected to become operational this year and 2,624 MW next year, for a total of 9,968 MW from 2023-2028 (Table 1).

As mentioned in my previous article, not all megawatts are the same. Conventional thermal power plants have higher energy density, reliability and capacity factor (CF) per MW than conventional renewables such as hydro and geothermal energy, and intermittent renewables such as solar, wind and biomass.

Since not all new power plants committed for the year will start operating in January — some may not start until the fourth quarter — I adjusted the CF to 95% of the actual CF 2017-2022 as measured by IEMOP. My computation of additional generation in gigawatt-hours (GWh) is derived using this formula: (CF 2023-2028) x (committed projects) x (24 hours/day) x (365 days/year). My results show an additional 12,263 GWh or 12.26 terawatt-hours (TWh) this year and 10 TWh in 2028 (Table 2).

To get the total projected generation per year, I derived with this formula — (actual generation 2022) + (projected generation 2023), and so on. My results show total generation rising from 112.52 TWh in 2022 to 123.54 TWh this year to 154.79 TWh in 2028.

Then I compared this projected generation based on committed projects versus projected generation based on GDP growth targets for 2024-2028. My results show a surplus this year, but power deficits of 8.9 TWh in 2027 and 7.4 TWh in 2028 (Table 3).

Other researchers can replicate this exercise using different assumptions like capacity factor for 2023-2028, possible delays or advance in operation of new power plants, and they may come up with different numbers.

My results imply that adding more intermittent RE with low CF like solar with 3,378 MW and wind with 1,234 MW from 2023-2028 can imperil the country’s growth targets with a power deficit and hence, potential blackouts. Investors and consumers will cringe at the idea of having blackouts again just two to four years from now.

So the Philippine Energy Plan can’t ensure energy security. The proposed PEP will not assure energy security for the Philippines.

As a developing country aspiring to industrialize and raise per capita income and create more jobs, our energy policy should be high growth-targeting, not high renewables-targeting. Junking the anti-coal policy of 2017 and anti-nuclear sentiment will be a good start toward this policy shift.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

48 Hours: A foodie’s guide to Montreal with Top Chef’s Gail Simmons

NEW YORK — As a cookbook author and judge on Bravo’s hit television show Top Chef, Gail Simmons gets to sample cuisines from around the globe.

But when it comes to selecting a favorite city for eating – as well as business travel — the Canadian-born Ms. Simmons is all-in on Montreal.

Ms. Simmons, who lives in Brooklyn, New York, takes us on a foodie’s tour of the famed French-Canadian city.

The following interview is edited and condensed.

WHAT I LOVE MOST
I grew up in Toronto, but I went to college in Montreal and my mother’s whole family lives there. My husband is also from Montreal, so it really is like a second home to me.

Culturally, Montreal is very different than the rest of Canada — it a French city in a French province. It is architecturally very European.

WHERE I GO FIRST
If I land in the morning, my first stop is Arthurs Nosh Bar (Rue Notre Dame West), a Jewish deli.

The deli culture in Montreal is the greatest, and it’s markedly different than US deli culture. The bagels are different. The smoked meat is different.

While there are many good examples of classic delis — including Schwartz’s, Lester’s, or Wilensky — that have not changed in 100 years, Arthurs honors that deli culture but it is modern.

WHERE TO STAY
I stay with family, but my recommendation is Hotel William Gray (Rue Saint Vincent). It’s a lovely boutique hotel in Old Montreal, right on the St. Lawrence River.

The Four Seasons (Rue de la Montagne), which opened in 2019, is beautiful. Chef Marcus Samuelsson has a great restaurant called Marcus there, too.

My parents were married at the historical Ritz Carlton (Sherbrooke St. West), which is the most classic Montreal, high-brow hotel.

BEST FOOD MARKET
I bring every chef and friend to the Jean-Talon Market in Little Italy. It is spectacular, especially in the summer months. On the perimeter, you’ll find permanent stores, including an amazing wine shop and butcher along with an extraordinary store, Marche Des Saveurs Du Quebec, that just has very Canadian local food products.

The Atwater Market, which is closer to Old Montreal, is smaller and a little more precious. It’s near the Rue Notre Dame, which has so many wonderful restaurants — including very famous establishments like Joe Beef and Liverpool House — along with some of the greatest vintage furniture stores anywhere.

COFFEE SPOT
My morning coffee stop is Crew Collective & Cafe (Rue Saint-Jacques) in the lobby of a converted bank building. It’s an enormous, architecturally important space, and they make a great coffee.

POWER LUNCH
My uncle was a judge on the Supreme Court of Quebec, and he would take me to L’Express (Rue St-Denis) for lunch. It’s a famous French bistro with all of the classics, and it still can compete with anything in Paris.

Monarque (Rue St-Jacques) is another great lunch spot which offers beautiful French cuisine with a twist.

BEST BAGELS
There is a New York bagel, and there is a Montreal bagel. People love to compare them but you cannot.

A Montreal bagel is boiled first in honeyed water, so it has a slight sweetness. There’s no salt in the dough, and they are baked in a wood-burning oven. They only come in a few flavors. The classic flavor is sesame.

The two main bagel producers are St-Viateur (various locations) and Fairmount (Fairmount West Ave.)

Eat one super hot and freeze the rest. Don’t leave them out because they will go stale. We hoard them.

FAVORITE POUTINE
Poutine (a gooey confection of French fries with cheese curds and gravy) is meant to be eaten drunk, or with a hangover. So don’t get it at a fancy restaurant.

The best place to buy bags of cheese curds for poutine is the checkout counter of a convenience store, known as depanneurs.

SWEET TREATS
Like France, Montreal has a huge bread and pastry culture, with so many incredible pastry chefs.

La Bete a Pain (various locations) is amazing.

Patisserie Kouign Amann (Mont-Royal East) makes its namesake layered, laminated dough pastry that is the best I’ve ever had.

DINNER SPLURGE
Montreal Plaza (Rue St-Hubert) is a French bistro. Vin Papillon (Rue Notre Dame West), owned by the people who own Joe Beef and Liverpool House, has magnificent vegetables, great food, and an incredible wine list.

Vin Mon Lapin (Rue Prince), which means “My rabbit,” was recently rated the No. 1 restaurant in Canada. It’s not fussy or fancy, but the food is delicious.

For something a little more refined and upscale, try Le Serpent (Rue Saint-Zotique East) or Bouillon Bilk (St. Laurent Blvd.)

SOMETHING ONLY INSIDERS KNOW
Montreal is the word for “Mount Royal.” There is a skating rink on Beaver Lake at the top of the mountain. On the way up, there are many lookout points with incredible views of the city.

Karnatzels, a traditional kosher dried beef stick, are unique to Montreal. You’ll see them hanging to dry in windows of Jewish delis. You’ll even find them in cocktail bars.

FAVORITE SOUVENIR
Bagels! And maple syrup. — Reuters

Fitch cuts China’s ratings outlook on growth risks

REUTERS

BEIJING — Fitch cut its outlook on China’s sovereign credit rating to “negative” on Wednesday, citing risks to public finances as the economy faces increasing uncertainty in its shift to new growth models.

The downgrade follows a similar move by Moody’s in December and comes as Beijing ratchets up efforts to spur a feeble post-COVID recovery in the world’s second-largest economy with fiscal and monetary support.

“Fitch’s outlook revision reflects the more challenging situation in China’s public finance regarding the double whammy of decelerating growth and more debt,” said Gary Ng, Natixis Asia-Pacific senior economist.

“This does not mean that China will default any time soon, but it is possible to see credit polarization in some LGFVs (local government financing vehicles), especially as provincial governments see weaker fiscal health.”

Fitch expects China’s general government deficit — which covers infrastructure and other official fiscal activity outside the headline budget — to rise to 7.1% of gross domestic product (GDP) in 2024 from 5.8% in 2023, the highest since 8.6% in 2020, when Beijing’s strict COVID curbs weighed heavily on the economy.

While it lowered its ratings to negative outlook from “stable,” indicating a downgrade is possible over the medium term, the agency affirmed China’s issuer default rating at “A+.”

S&P, the other major global rating agency, also rates China “A+,” the equivalent of Moody’s “A1.”

Fitch forecast China’s economic growth would slow to 4.5% in 2024 from 5.2% last year, while the International Monetary Fund expects China’s GDP to grow 4.6% this year.

The ratings warning comes despite tentative signs China’s economy is finding its footing.

Factory output and retail sales topped forecasts in January-February, following better-than-expected exports and consumer inflation indicators.

Those data points have shored up Beijing’s hopes that it can hit what analysts have described as an ambitious GDP growth target of around 5% for 2024.

“The outlook revision reflects increasing risks to China’s public finance outlook as the country contends with more uncertain economic prospects amid a transition away from property-reliant growth to what the government views as a more sustainable growth model,” Fitch said.

“Wide fiscal deficits and rising government debt in recent years have eroded fiscal buffers from a ratings perspective,” it said. “Contingent liability risks may also be rising, as lower nominal growth exacerbates challenges to managing high economy-wide leverage.”

China plans to run a budget deficit of 3% of economic output, down from a revised 3.8% last year. Crucially, it plans to issue one trillion yuan ($138.3 billion) in special ultra-long term Treasury bonds, which are not included in the budget.

The special bond issuance quota for local governments was set at 3.9 trillion yuan, versus 3.8 trillion yuan in 2023.

China’s debt-to-GDP ratio climbed to a new record of 287.8% in 2023, 13.5 percentage points higher than a year earlier, according to a report by the National Institution for Finance and Development in January.

China’s finance ministry said following the announcement it regretted Fitch’s ratings decision, vowing to take steps to prevent and resolve risks from local government debt.

“In the long run, maintaining a moderate deficit size and making good use of valuable debt funds is beneficial for expanding domestic demand, supporting economic growth, and ultimately maintaining good sovereign credit,” the ministry said in a statement.

Moody’s in December slapped a downgrade warning on China’s credit rating, citing costs to bail out local governments and state firms and control its property crisis. — Reuters

Semirara Mining and Power Corp. announces Annual Meeting of Stockholders to be held on May 6

Notice of Annual Stockholders’ Meeting

Please be notified that the Annual Meeting of Stockholders of Semirara Mining and Power Corporation (the “Corporation”) will be held on May 6, 2024,1 Monday at 10:00 a.m. and will be conducted by remote communication at https://www.semirarampc.com/asm with the following agenda:

Agenda

  1. Call to Order and Proof of Notice of Meeting
  2. Certification of Quorum
  3. Chairman’s Message
  4. Approval of Minutes of Previous Stockholders’ Meeting held on May 2, 2023
  5. Presentation and Approval of President’s Report
  6. Presentation and Approval of Audited Financial Statements for 2023
  7. Ratification of the Acts of the Board of Directors and Management from the Date of the Last Annual Stockholders’ Meeting up to the Date of this Meeting
  8. Election of Directors for 2024-2025
  9. Approval of Appointment of Independent External Auditor
  10. Other Matters
  11. Adjournment

Record Date

Stockholders of record as of March 12, 2024 will be entitled to notice of, and vote at the said annual meeting or any adjournment or postponement thereof.

Registration and Voting

Stockholders may attend the meeting by remote communication by registering at https://www.semirarampc.com/asm beginning April 19 until April 27, 2024. Only stockholders of record as of March 12, 2024 will be entitled to vote at the said meeting.  Stockholders may vote in absentia using the online voting portal at https://www.semirarampc.com/voting, or by appointing the Chairman of the meeting as their proxy.  The voting portal will be accessible beginning April 19, 2024 until 12:00 noon of May 6, 2024.

The following documents are required to be transmitted by email to corporatesecretary@semirarampc.com upon registration:

CERTIFICATED SHARES:
  1. Individual Stockholder
    a. Valid Government-Issued ID or passport
  2. Corporate Stockholder
    a. Secretary’s Certificate designating its attorney-in-fact and proxy
    b. Valid Government-Issued ID or passport of the representative
UNCERTIFICATED OR SCRIPLESS SHARES:
  1. Individual Stockholder
    a. Broker’s Certification stating the stockholder’s name and the number of shares held
    b. Valid Government-Issued ID or passport
  2. Corporate Stockholder
    a. Broker’s Certification stating the stockholder’s name and the number of shares held
    b. Secretary’s Certificate designating its attorney-in-fact and proxy
    c. Valid Government-Issued ID or passport of the representative

The requirements and procedure for electronic voting in absentia and participation by remote communication is set forth in Schedule 4 of the Definitive Information Statement published on the Company’s Website and on PSE Edge.

Stockholder Question

Questions may be sent prior to the meeting at corporatesecretary@semirarampc.com no later than April 27, 2024, which shall be limited to the items in the Agenda.  Some questions may be addressed while others will be replied to via email.

Proxy

Duly accomplished proxy forms must be submitted on or before April 25, 2024 to the Office of the Corporate Secretary at 2nd Floor DMCI Plaza, 2281 Don Chino Roces Avenue, Makati City 1231, Philippines or by email at corporatesecretary@semirarampc.com. Validation of proxies is set on April 29, 2024 at 10:00 a.m.

(Sgd.) JOHN R. SADULLO
Corporate Secretary
For the Board of Directors

1 Should the date of the annual stockholders’ meeting (ASM) be declared a legal holiday, the ASM will be held on the next succeeding business day at 10:00 a.m. pursuant to Section 1, Article I of SMPC’s By-Laws, as amended.

 

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Samsung on track to equip all KFC stores with self-service devices

GLOBAL.KFC.COM

By Aubrey Rose A. Inosante

SAMSUNG Electronics Philippines Corp. (SEPCO) is likely to reach its target to deploy its Kiosk self-service device in all KFC stores nationwide within this year, an official said.

“Samsung Kiosks have been deployed to more than 50% of KFC stores nationwide. The plan is to complete installations for the remaining branches within 2024,” SEPCO Head of Display Solutions Jasmel Lacosta said in an e-mail.

The fast-food chain KFC currently has 380 stores nationwide.

KFC is the first global brand carrying the self-service Kiosk, Samsung’s Display Solutions Retail Operations Specialist Consumer Electronics Jescille Rubio told BusinessWorld during Samsung’s Business Expo on March 21.

Samsung’s 24-inch all-in-one kiosk solution aims to streamline concession ordering and increase ticket transactions.

The device runs on platforms Tizen OS and Windows IoT that software providers can choose from.

Mr. Lacosta added that the self-ordering device has flexible installation options. Establishments can opt to have it tabletop, wall-mounted, or with a stand.

It has improved productivity and efficiency in KFC branches, he said, as having the devices has led to the reallocation of cashier staff to other tasks.

“They can help to minimize queues and increase order accuracy so as to further elevate customer experiences,” Mr. Lacosta said.

Samsung has also deployed its Kiosks to some healthcare institutions for their patient queueing systems.

Mr. Lacosta added that the company is in talks with 7-Eleven to deploy Kiosks in its branches nationwide.

“We are working with 7-Eleven to provide cost-effective Kiosk solutions, and we are definitely working towards ensuring that more companies are able to benefit from our technology,” he said.

Robinsons Land Corp. to conduct 2024 Annual Meeting of Shareholders on May 8

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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