Philippines’ energy security in the hands of innovation, people

February 1, 2024 | 12:10 am

AboitizPower_042023-19-OL — The new 33-MVA digital substation operated by AboitizPower distribution utility Davao Light in Binugao, Toril addresses growing electricity demand in the southern part of Davao City.

Successfully navigating adversities and opportunities in the power sector in 2024 and beyond is largely hinged on the quality of the people tasked to manage it and their capacity to learn and innovate, said Aboitiz Power Corp. (AboitizPower) President and CEO Emmanuel Rubio.

But headwinds to the industry’s talent pipeline like a brain drain and a labor shortage continue to persist, owing to a very competitive global market, as well as competency gaps and skills mismatches.

“These talents must be viewed not just as technical specialists but as architects of tomorrow’s grids, guardians of the energy supply chain, and masters of harnessing clean energy sources,” the executive said.

“The energy landscape is evolving from a singular focus on fossil fuels to a complex mix of renewables, intelligent grids, and smart technologies. We require a diverse pool of science, technology, engineering, and mathematics or STEM talent to maintain the momentum of our nation’s progress.”

The launch of AboitizPower’s massive transformative purpose of Transforming Energy for a Better World (left), encompassing efforts to decarbonize, decentralize, and digitalize; the latter as exemplified by the company’s National Operations Control Center or NOCC (center) that monitors and controls 22 renewable energy facilities all from one location.

A secure and reliable power supply, a smarter and more flexible grid, and a system run by competent energy stewards are crucial to achieving and sustaining energy security.

Energy security is vital to supporting economic growth targets of 6.5%-7.5% in 2024 and 6.5%-8% in 2025 to 2028, all the way to reaching a potential of becoming a trillion-dollar economy by 2033, as forecasted by S&P Global.

The Energy Department projects that electricity demand will increase by 6.6% every year until 2040. At the same time, the Philippines’ power generation mix is being transitioned to have 35% renewable energy by 2030 and 50% by 2040.

“In AboitizPower, we encourage our team members to be ingenuine and creative as these are traits that sustain an industry that is in a perpetual lookout for the next leap in better and cleaner technologies,” Mr. Rubio said.

In helping build the country’s first Techglomerate with the rest of the Aboitiz Group, AboitizPower is carrying out its digitalization, decentralization, and decarbonization strategies, with the latter targeting a 50-50 thermal-renewable portfolio mix in the next ten years.

“Whenever feasible, we introduce new technologies and innovations in our power plants and distribution utilities to maintain the availability and efficiency of these facilities, as well as improve customer service,” Mr. Rubio shared.

“While the business of power generation and distribution is a profitable endeavor as it is, AboitizPower also intends to shape the decentralization of energy in the Philippines to create smarter and more sustainable communities,” he added.

AboitizPower’s investments in technology include its National Operations Control Center or NOCC, which allows for the operation, monitoring, and controlling of 22 renewable energy facilities all from one location. The company also utilizes digital twin technologies, which is a virtual replica of a power plant that mimics its operational processes and systems, enabling it to detect faults and glitches within a virtual environment.

AboitizPower distribution utilities like Visayan Electric and Davao Light are also modernizing its substations, which steps down high voltage from the grid to distribution level voltages appropriate for the electrical consumption of homes, businesses, and industries. With digitalization, these substations were converted from using analog measurement data and binary status information into digital data which can be easily monitored by a central control station 24/7.

Diversity in the AboitizPower workplace enables women like Engineer Nesvelle Mae Pascua-Amper (right) to thrive in a traditionally male-dominated industry.

“I can’t stress enough that embracing technology is a collaborative endeavor,” Mr. Rubio said. “At AboitizPower, we believe in the power of education. We work with leading universities, cultivate scholarship programs, and establish training centers to nurture a future-ready ensemble of talent equipped with diverse skills and perspectives.”

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It takes two to tango in Samira

February 1, 2024 | 12:09 am

Foie Gras Pineapple Waffles — SAMIRA’S Foie Gras on a Pineapple Waffle

1 of 3

IN THE hands of Josh Boutwood (the man behind Helm, The Test Kitchen, Savage, and Ember) and Chele Gonzalez (his Gallery by Chele is a consistent placer in Asia’s 50 Best Restaurants list), a Wednesday dinner turned out to be a night to remember.

The collaboration between the two chefs at Anya Resort Tagaytay’s restaurant, Samira by Chele Gonzalez, is part of its Culinary Collections series. On Jan. 24, Mr. Gonzalez hinted at more collaborations with Cavite neighbor Rhea Rizzo (heading Mrs. Saldo’s), and Metronome’s Miko Calo.

THE DINNER
The meal started off with Mr. Boutwood’s Mango, Tuna, Ginger — a thin carabao mango tart filled with fermented soybean emulsion, smoked tuna, and pickled ginger. This had a strangely earthy flavor coupled with the strong fish, with a great burst of freshness. The meal continued with Samira’s Foie Gras on a Pineapple Waffle (luxurious and somewhat comfortable), and then their combined, one-night-only Standish Oysters with Caviar and Kombu (the oysters were very sweet, followed by the acidic zing of the yuzu gel).

Everyone’s favorite that evening was Ember’s Adlai, Mushroom, and Comte cheese risotto: earthy, creamy, and enchanting. This was paired with a fizzy Alvarinho, which cut through the creaminess and brightened up the grain. Everybody at the table looked back on this pairing with fondness, and it was rated the best pairing of that evening.

Not to be outdone, Mr. Gonzalez released his signature octopus, charred and grilled and served on paprika parmentier: perfect as usual. With a Tasmanian Trout Tartare, both dishes were a praise to the oceans. Mr. Boutwood also had his own seafood dish — a refreshing Seabass with Burnt Cauliflower Puree, paired with a roe sauce and dill oil.

Both chefs rolled up their sleeves for the main course, an Iberico Pork Chuleta, with parsnips and wild mustard. Most of the guests were silent at the first bite, which was perfectly tender and very expressive of Iberico pork’s unique flavor.

While we liked Mr. Gonzalez’ Cheese Ice Cream and Grilled Strawberries, it was Ember’s signature dessert, Chocolate, Chocolate, Chocolate (dark chocolate cremeux and white chocolate espuma with caramelized white chocolate poured over it all) was that evening’s sinning winner.

MUTUAL ADMIRATION
While Mr. Gonzalez is known for his frequent collaborations (we attended at least two of his collaborative dinners last year), Mr. Boutwood doesn’t make much noise about his (though he did count six of them last year).

“I am a believer in collaborations. I think collaborations are a wonderful opportunity for two chefs that have different mentalities when it comes to cooking,” he said. “Ultimately, the goal is something delicious. The exchange of cultures when it comes to cuisines is more important.”

He added, “I’m very selective as well with who I do my collaborations with, obviously. There has to be a connection. It’s like getting paired with a dancer. You want to have that level of connection to the chef.”

And what a partner he has with Mr. Gonzalez, about whom he said: “He’s very determined. He’s focused when it comes to cooking. It’s extraordinary.

“I don’t want him to hear my compliments, right?” he said jokingly. “But he has this ability to understand an ingredient very well. He has a deep understanding of his cuisine and culture.”

For his part, Mr. Gonzalez told us about his partner’s strengths. “He’s very easy to deal with. He is calm; he is focused. An open mind.”

Mr. Gonzalez had his own thoughts about collaborations: more than gimmicks, they’re a way for chefs to learn more about the craft, through each other.

“Even when you have a lot of experience and your level of cooking is very high, you still need to keep updating yourself. How do you do that? How can you keep learning? You need to still be out there and keep knowing and learning more. Eating in good restaurants gives you the palate and the understanding of how chefs cook at a high level — but also collaborations. Collaborating is a way to see how people cook, understand food, do techniques. It’s a very motivating way to learn.”

PLANS FOR 2024
Both chefs were reticent about their plans this year (though they said they had lots).

Mr. Boutwood said, “We will — I hope we will — open one more restaurant within the year.” Mr. Gonzalez said, “You will know. I have a lot of things going on.”

Santi Elizalde, the president and CEO AHG Hotels and Resorts — which manages Anya, Niyama, Club Punta Fuego, Ylang-Ylang Spa, and Amara Residences, among others — was a bit chattier about his plans, significant since Anya celebrates its 7^th anniversary in 2024. He said they are targeting locations in Palawan, Mindanao, and maybe even the Mountain Province, in about three to five years.

“What we want to do is continue to develop the brand, strengthening the brand, and then obviously trying to [go] forward by putting up more properties; more resorts,” he told BusinessWorld. — Joseph L. Garcia

PLDT board OK’s plan to invest P2B in Radius Telecom

February 1, 2024 | 12:08 am

PLDT Inc.’s board of directors has agreed to subscribe to 2.49 million shares in Radius Telecom, Inc., representing 34.9% of its equity interest for P2.12 billion, the Pangilinan-led company said on Wednesday.

In a stock exchange disclosure on Wednesday, PLDT said the proposed investment is a strategic move to expand its market share by leveraging Radius Telecom’s fiber facilities.

Under PLDT’s proposed investment, the company’s board of directors approved the subscription to 2.49 million shares of common stock in Radius priced at P849.28 each, pending the execution of definitive agreements.

Radius Telecom provides data and internet services and offers cloud services to businesses and small and medium enterprises.

It is a wholly owned subsidiary of Paragon Vertical Corp., a unit of e-Meralco Ventures, Inc.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said PLDT is likely to fully acquire Radius Telecom.

“Radius will benefit from PLDT’s extensive expertise in the broadband business. Depending on market dynamics, it’s also possible that PLDT may fully acquire Radius down the road,” Mr. Colet said.

Radius Telecom’s fiber facilities include 150 enterprise buildings, over 200 residential multi-dwelling units, and more than 200 villages.

“This is a strategic move for PLDT as it seeks to expand rapidly in the lucrative broadband market. We expect this deal to generate important synergies and cost efficiencies for both companies,” Mr. Colet said.

“This equity stake allows PLDT to have a substantial influence on Radius Telecoms and aligns with a strategic move to fortify its market position,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.

This move could potentially lead to synergies by combining technological expertise, expanding service offerings, or enhancing customer experience, Mr. Arce said.

“PLDT can benefit from this extensive network by expanding its market coverage and improving its ability to serve both enterprise and residential customers,” he said.

At the stock exchange on Wednesday, shares in the company closed P3 or 0.24% lower at P1,272 apiece.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Cognac at $4,000 bumps up against luxury shoppers’ new limits

February 1, 2024 | 12:08 am

Remy Martin Louis XIII Cognac — LOUISXIII-COGNAC.COM

INTERNATIONAL distillers have for years been concocting niche formulations to justify charging drinkers ever higher prices. Diageo Plc’s Japanese-inspired limited edition of Johnnie Walker Blue, for example, is blended to extract umami flavors and sells for £300 ($382).

The strategy, borrowed from the luxury goods industry, is called premiumization, and it’s delivered record profits. But drinkers in many countries appear to have had enough of forking out ever-more per bottle, a shift that threatens to upend the business model.

Last Friday, Remy Cointreau SA, whose Remy Martin Louis XIII Cognac sells for $4,000, warned that US market conditions had worsened over the past year. Retailers are discounting heavily, and rising interest rates have cut distributors’ ability to finance new stock.

The post-pandemic recovery in China was slower than expected. And Remy reckons stubborn inflation will limit sales in Europe.

“This year is going to be crunch time for a lot of drinks companies,” said Siobhan Gehin, senior partner at consultancy Roland Berger. “Premiumization is still the right strategy but it’s increasingly coming under pressure. Apart from the really high-end customer, even consumers who would have paid a premium are considering their spending because of ongoing pressures on their budgets.”

Remy’s results don’t bode well for Diageo, which was set to update investors on Tuesday. In November, its shares plunged 12% after a profit warning blamed on Latin America and the Caribbean. Now the revival of its North America business looks shaky too. (See related story on this page.)

“The US is the most important thing, the biggest source of profit for the company,” said Kevin Dreyer, Co-CIO of Value at Gabelli Funds, which has a stake in the company worth around £25 million. COVID-era stimulus checks drove spending there, but that has now settled down. “It’s all about getting that business stabilized and growing again,” Mr. Dreyer added.

The strategy of premiumization tapped into lucrative trends: a desire to drink less but better, and the rise of the middle class in countries like China where more expensive whisky signals prosperity. A stock of aging liquors like cognac and whisky has constrained supply, buoying prices.

But drinking habits are changing. In Diageo’s last fiscal year, “premium-plus” — spirits costing $50 or more a bottle — represented 57% of its net sales growth, down from 71% a year earlier.

The shift echoes what’s happening in the luxury sector more broadly. LVMH Moët Hennessy Louis Vuitton SE, whose shares surged Friday after it reported sales gains for the end of last year, said it doesn’t plan to raise prices further in 2024. Its resilience fueled investor optimism that the luxury industry can continue to grow even if its pricing power moderates.

Other luxury companies are also showing the limits of consumers’ willingness or ability to keep splashing out more for the same items they’ve long coveted. Swiss watchmaker Swatch Group AG’s sales last year fell short of estimates — in part because it wasn’t able to hike prices enough to offset the strength of the Swiss franc.

“You cannot ask the consumer just to pay more because the demand is bigger, or the demand is exceeding what you have,” Swatch Chief Executive Officer Nick Hayek said in an interview this week. “Even rich people are not stupid.”

Diageo is trying to come up with ways of cushioning the impact of consumers buying less expensive drinks. In Latin America, new Johnnie Walker Blonde is priced between Johnnie Walker Black and Johnnie Walker Red. But unlike cosmetics conglomerate L’Oréal SA, for example, which has fared well in the cost-of-living crisis, Diageo doesn’t have a budget unit.

Big Booze still has some structural advantages. Drinkers are switching from beer and wine to spirits. “They have brands that are hundreds of years old that have been through wars and diseases, famine, droughts, prohibition in the US, economic booms, crashes, supply disruption,” said Donny Kranson, portfolio manager at Vontobel Asset Management, of Diageo. “If management keeps the brands relevant, invests in their capabilities and the strategic stock, the brands will continue to be good for hundreds more years at least.” — Bloomberg

Diageo soothes investors on Latin America woes

LONDON — Shares in Diageo recovered on Tuesday after initially falling 4%, as the world’s top spirits maker reassured investors it was taking steps to fix problems in Latin America and stem declines elsewhere.

The maker of Johnnie Walker whisky and Tanqueray gin just missed analysts’ sales estimates on Tuesday, largely due to a massive decline in Latin America where it is struggling with a buildup of unsold stock.

It also saw a drop in North America — its biggest market, where the company has been losing market share.

“We are not satisfied with these results, and I personally am restless to get this business to perform to its full potential,” Chief Executive Officer Debra Crew, who took the helm in June, told journalists.

The business was resilient, and had a track record of navigating global volatility, she later added in a presentation to investors.

In November, Diageo warned that sales in Latin America and the Caribbean were set to decline by more than 20%. On Tuesday, it reported a 23% drop, and said it expected a further decline of 10% to 20% in the second half.

Unsold stock has built up in Latin America following a slowdown in demand for expensive spirits. Diageo said in November it became aware of the problem at a relatively late stage.

The admission hurt investor confidence and put a spotlight on Crew just months into her tenure, with some shareholders worried about how the business would handle bigger threats, including a decline in market share in North America.

Crew said on Tuesday Diageo was taking steps to prevent problems in Latin America recurring, such as improving data collection and testing new technology to better monitor sales throughout its distribution network.

Latin America only accounts for around 11% of sales but is a high margin business and therefore had a bigger impact on Diageo’s organic operating profit.

That fell 5.4%, more than forecast by analysts. Diageo said it expected a further decline in the second half but at a slower rate. — Reuters

A taste of Japan at Glorietta’s roof deck

February 1, 2024 | 12:07 am

HALF of what used to be Glorietta 3’s mostly empty roof deck has been transformed into Japantown, bringing a mix of known and new restaurants, as well as a feel of Japan in its decor.

“Ayala Malls has always been committed to bringing new experiences to our customers. With the clamor for travel, we want people to experience Japanese culture without leaving the city. What better way to get a sense of place but through culinary tourism — having a taste of authentic and contemporary flavors that the destination offers,” said Sherlene Cruz, Ayala Malls Glorietta General Manager in an e-mail to BusinessWorld.

BusinessWorld was toured around Japantown at Glorietta 3’s fourth level (right beside another remodeling project, its K-Park) on Jan. 28. Ms. Cruz, speaking about these developments and future attractions in Ayala Malls, pointed out that “These unique and curated food precincts are already present in Ayala Malls Vertis and Ayala Malls Manila Bay, but both are indoors.”

While there were seven restaurants in the itinerary, we chose to spend time in the two restaurants where we had not yet dined — Mitsuyado Sei-Men and Musashi Maru.

The other restaurants are Ramen Nagi (a staple), Hakata Ton-ichi (which also serves ramen), Coco Ichibanya (specializing in Japanese-style curry), 102 Izakaya (small plates and grilled meats), and Shaburi and Kintan, serving Japanese steaks at a buffet comparable to the ones found in more posh hotels.

As for Mitsuyado Sei-men, a sensation when it first opened in Bel-air and other Makati districts outside the central business district, we had their Cheese Tsukemen, which are ramen noodles dipped into a broth, but this time, the noodles were coated in a cheese sauce. It was a strangely tangy combination that works, Meanwhile the scallop sashimi at Musashi Maru (where apparently Japanese nationals like to eat; which should say something about its quality) is a must-try.

Other attractions in Japantown include an LED screen that could be a focal point for performers and events (during our visit, there was a fair showing off Japanese crafts and costumes that one could rent and wear; as well as musicians and DJs).

The square also boasts of the Omniverse Museum which features pop culture memorabilia.

Asked if the open-air design was a result of post-pandemic planning, Ms. Cruz said, “The roof deck actually opened in 2019, before the pandemic. The integration of outdoor and indoor has always been part of Ayala Malls DNA and this is another way of executing it with a specific ‘theme.’ The open-air concept became accessible and provided a respite for customers who would want to take a breather and relax amidst a busy mall setting.”

Japan Town is at Level 4, Glorietta 3, Ayala Center, Makati City. — Joseph L. Garcia

BPI sees higher 2024 profit after merger with RBC

February 1, 2024 | 12:06 am

BANK of the Philippine Islands (BPI) expects to post better earnings this year than in 2023 following its merger with Robinsons Bank Corp. (RBC), which it expects to fully integrate into its systems within two years.

“I think the merger is positive. I think in 2024, we will show more income than 2023, definitely. I’m very confident of that,” BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco told reporters during the annual reception for the banking community last week.

“It will take about two years to transform all the RBC branches because you have to change the logos,… we have to change the systems, we have to move the people who are RBC accountholders and move them to BPI systems. So, our integration plan will take about two years,” Mr. Limcaoco added.

The integration process could result in increased expenses, but RBC’s expected contribution to BPI’s earnings could help offset these costs, he said.

“Obviously, there are expenses to integration, but they’re more than covered by the profitability of Robinsons Bank as a standalone. I think the business opportunities that come from the Robinsons Bank merger far outweigh the expenses,” Mr. Limcaoco added.

BPI will also be able to tap RBC’s products and clients, as well as the Gokongwei group’s suppliers and partners, he said.

The Ayala-led bank previously said it expects its net income to climb by 5-6% and its revenues to rise by around 7% as a result of its merger with RBC.

BPI saw its attributable net income grow by 33.33% year on year in the third quarter of 2023 to P13.47 billion amid higher revenues. It has yet to release its fourth-quarter and full-year 2023 results.

The merger between BPI and RBC took effect on Jan. 1, with BPI as the surviving entity.

Following the transaction, BPI has taken over RBC’s 20% stake in digital lender GoTyme Bank, a joint venture between the Gokongwei Group and Tyme, which is one of the six entities granted an online banking li-cense by the BSP.

Meanwhile, RBC’s shareholders now hold approximately 6% of the resulting outstanding capital stock of BPI.

Its shares went up by 20 centavos or 0.18% to close at P110.60 apiece on Wednesday. — AMCS

PHL gov’t may take time to adopt AI

February 1, 2024 | 12:06 am

taylor-vick-M5tzZtFCOfs-unsplash — UNSPLASH

By Keisha B. Ta-asan, Reporter

THE government may not be able to immediately adopt artificial intelligence (AI) technologies, with digital infrastructure in the country still underdeveloped.

Laveena Iyer, an analyst from the Economist Intelligence Unit, said in an e-mail interview that economic development is more important for the government than adopting AI, as the Philippines is an emerging middle-income economy that could see growth slow this year, with elevated borrowing costs seen to continue weighing on consumption and investments.

“Now against this backdrop, one can understand why economic growth would be a bigger priority for the government compared with AI,” she said.

“Progress on digital infrastructure has been slow and this might be the case for AI as well. The country will take time to adopt this technology. In the meantime, it would have the opportunity to learn from the progress made in neighboring emerging economies,” she added.

Last week, the International Monetary Fund (IMF) said shifting to AI technologies could raise the level of labor productivity in the Philippine service sector.

However, this would require upskilling the labor force and developing the country’s digital infrastructure.

The IMF also said AI could affect nearly 40% of global employment. While it is seen to complement human work, it might replace other jobs and would likely worsen economic inequality among nations.

In emerging markets and low-income countries, AI exposure is expected at 4% and 26%, respectively, while about 60% of jobs in advanced economies are exposed to AI, it said.

According to Ms. Iyer, experiments with AI are still only beginning globally, and enterprises may still look for the right business fit for AI this year.

“Even some of the advanced economies and technologically mature countries are still figuring out how to do this. So, it is too early to say what use case would be right for the Philippines — perhaps, some form of automation,” she said.

AI may be useful for the logistics or healthcare industries, but its impact on employment in the Philippines is not concerning in the near term, she said.

Based on a Government AI Readiness Index by Oxford Insights, the Philippines fell 11 places to 65th out of 193 countries in 2023. The country scored 51.98 out of 100, higher than the 44.94 global average of markets that are ready to adopt AI.

“Given that the Philippines will have some time to watch what other countries have developed with AI and how their governments have sought to regulate it, there is scope to apply those lessons,” Ms. Iyer said.

She said the country will need to identify how to have a digitally skilled workforce and secure investments for stronger digital infrastructure for progress in AI, as well as in other industries and technologies.

“There will also be time for the Philippines to review and identify an optimum approach to regulate AI, wherein society is safeguarded against some risks but also innovation is allowed to flourish,” she said.

“Consideration must also be given to foster collaboration between the government and the industry.”

As for the private sector, Angelito “Lito” M. Villanueva, founding chairman of FinTech Alliance.Ph and executive vice-president and chief innovation inclusion officer at Rizal Commercial Banking Corp. (RCBC), said most industries are expected to explore AI technologies this year.

He said RCBC is starting to embrace AI, as officers were required to complete AI certification programs to help them understand machine learning and other AI concepts.

“In fact, we will be launching some digital products and programs that are AI-anchored by the first half of the year,” he told reporters during the annual reception for the banking community last week.

Several players in the financial technology industry that are interested in teaming up to explore emerging technologies such as AI, Mr. Villanueva added.

However, there are risks that come with any new technologies or platforms, he noted.

“We have to understand the whole proposition, and understand how to mitigate or control those risks,” Mr. Villanueva said, adding that firms should always guarantee better customer experience and consumer protection.

Manila Water subsidiary inks supply deal with MCWD

February 1, 2024 | 12:06 am

manila-waters-[www.manilawater.com] — www.manilawater.com

THE Metropolitan Cebu Water District (MCWD) has secured a new water supplier through another subsidiary of Manila Water Co., Inc., the east-zone concessionaire said on Wednesday.

In a stock exchange disclosure, the company said that its subsidiary, Manila Water Philippine Ventures, Inc. (MWPV), has entered into a 10-year contract agreement with MCWD.

The deal is intended “for the supply and delivery of potable surface water, the company said.

The signed contract comes two months after the termination of bulk water supply contract between MCWD and Cebu Manila Water Development, Inc. (CMWD) following more than a decade.

CMWD is a joint investment of Manila Water Consortium, Inc. and the provincial government of Cebu.

In 2012, Manila Water entered into a joint investment agreement with the provincial government of Cebu for the development, operation, and maintenance of a bulk water system that will supply a minimum of 35 million liters per day (MLD) of potable water.

Meanwhile, MWPV said on Monday that it had reached out to the provincial government of Pangasinan to revive their terminated 25-year concession agreement.

The P8-billion agreement, intended to supply Pangasinan with 200 MLD of water, was signed in January 2022.

The bulk water project was supposed to create an infrastructure that will source water from Agno River using the riverbank filtration technology to increase water supply in the province.

Manila Water said that the “deemed mutually” terminated contract was due to “non-fulfillment of conditions” on the part of the provincial government of Pangasinan.

Shares of Manila Water gained 1.01% or 18 centavos to close at P17.98 each. — Sheldeen Joy Talavera

Lunar New Year celebrations around the metro

February 1, 2024 | 12:06 am

THE city’s hotels are gearing up to celebrate Lunar New Year, with treats from lucky trees and cakes to auspicious room rates.

PENINSULA MANILA
On Feb. 10, the Peninsula Manila will be holding a Lion and Dragon Dance to spook away bad spirits, from 9:08 a.m to 11:30 a.m.

In honor of the Year of the Dragon, The Peninsula Boutique also unveils a limited-edition line of Lunar New Year edible fine chocolate trees: a Mandarin Orange Tree and a Golden Fortune Money Tree. Painstakingly molded and finished by hand, even the “soil,” trunk, branches, leaves, and fruit of the Mandarin Orange Tree and the goldfish-embossed gold coins of the Golden Fortune Money Tree are made of chocolate. The mandarin orange fruits are filled with an intense mandarin-flavored ganache while the gold-dusted coins embossed with lucky goldfish are made using dark chocolate. The large Mandarin Orange Tree and Golden Fortune Money Tree are available at The Peninsula Boutique for P3,888 while the small trees are P2,888 (inclusive of taxes). Also available are mandarin orange, green tea and lemon, mango jasmine, rum, and strawberry Chinese New Year Chocolate Pralines for P88 each (inclusive of taxes).

In the Lobby, The Pen offers the lo hei prosperity toss salad to greet good luck. First to be tossed into the platter are slices of smoked salmon, with everyone cheering “nin nin yau yu” (“let there be abundance every year”). Then the carrots are added, followed by a roar of “hong wen dong tau” (“good luck”). Then everyone puts in their chopsticks and mixes the ingredients together, tossing them as high as they can. This goes on for a while, as various components of the traditional Chinese New Year lo hei — or prosperity toss — are mixed and thrown in, and the higher they are mixed and lifted, the more good luck there will be in the new year. The Peninsula Chinese New Year lo hei is available for lunch and dinner at The Lobby on Feb. 9 and 10 for P5,888 (exclusive of taxes).

Also on Feb. 10, at Escolta, the lunch rate for the Lunar New Year celebration is set at P2,600 for adults and P1,300 for children six to 12 years old. The dinner rate for the special occasion is set at P3,000 for adults and P1,500 for children six to 12 years old. For inquiries, call The Peninsula Manila at 8887-2888 ext. 6694 (Restaurant Reservations), or e-mail diningPMN@peninsula.com.or visit peninsula.com.

SOLAIRE
At Solaire, guests can get a glimpse of their destiny in wealth, health, and romance with exclusive fortune readings by Feng Shui Master Clement Chan. There will be a vibrant Dragon and Lion Dance on Feb. 10, plus other performances like a Chinese orchestra, Chinese Fan Dance, Wushu exhibition, and a War Drums exhibition from Feb. 9 to 11 at The Gallery at The Shoppes.

Toast to the Year of the Wood Dragon with an abundance of food offerings like of Red Lantern’s Chinese New Year Eat-All-You-Can Dim Sum Buffet, which includes crispy fried prawn salad, Dong Po-style braised pork belly, steamed dim sum, Wok-fried noodles with assorted meat, and more. Indulge in premium set menus that highlight rich flavors of the Prosperity Yu Sheng salad toss with smoked salmon, steamed rock lobster, stir-fried wagyu beef, and a pan-fried rice cake.

Lunar Gift Hampers by Solaire contain treats like homemade cookies, homemade caramel almond sea salt candies, a glutinous rice cake bar, 30 Years Pu-er tea, Macallan 18 Years Sherry Oak, Remy Martin Louis XIII 700ml, and more. These are also available at Red Lantern.

As a preview to Valentine’s Day, Solaire is offering 20% off on bookings for all room types until Feb. 1. Valentine’s Day activities at Solaire include Our Time: A Solaire Valentine Concert featuring Marco Sison, Hajji Alejandro, Nonoy Zuniga, Nanette Inventor and Mitch Valdez. The concert is on Feb. 14 at 8 p.m. For inquires and reservations, call 8888-8888 or e-mail reservations@solaireresort.com.

MAKATI SHANGRI-LA
The hotel welcomes the Lunar New Year with a traditional Lion and Dragon Dance for its guests at the hotel lobby on Chinese New Year’s Eve, Feb. 9, at 10:30 p.m., and on Chinese New Year Day, Feb. 10, at 12:30 p.m.

Special Lunar New Year set menus at Shang Palace are available from Jan. 29 to Feb. 18. Rates start at P36,800 ++ for the Harmoney set menu, P46,800++ for the Prosperity set menu, and P49,800++ for the Good Fortune set menu. Diners can indulge in classic signatures such as braised e-fu noodles with wild mushrooms and black truffles, braised pork tendon with dried oysters and mushrooms and Yee Sang (another name for the prosperity toss salad) to bring in favorable blessings for the year ahead. All set menus are good for 10 persons.

Makati Shangri-La’s nian nao (sticky rice cakes) are also up for grabs, variations of which include the prosperity fish and the traditional gold bar. Nian gao rates start at P2,088 nett per single box. These fortune favors are available at the hotel’s main lobby from 9 a.m. to 9 p.m. For inquiries, call 813-8888 or send an e-mail to dining.makati@shangri-la.com.

CONRAD MANILA
China Blue by Jeremy Leung at the Conrad is offering two luxurious Lunar New Year menus, with one at P49,888 nett (Auspicious Reunions) and another at P68,888 (Grand Fortune). Both menus are good for 10 people.

As another New Year treat, Conrad Manila is offering nian gao with each set at P2,388 nett in two shapes and flavors (Big Koi Fish in white almond, and Small Koi Fish in brown coconut caramel and citrus). For inquiries, call 0917-650-4043.

CRIMSON HOTEL FILINVEST CITY
For 2,888 nett, Cafe Eight at Crimson Hotel offers a family style platter good for two to four people. The platter contains a soup, rice, a main dish, and noodles. For table reservations, call 8863-2222 or e-mail dining@crimsonhotel.com.

Universal Music to not renew licensing agreement with TikTok

February 1, 2024 | 12:05 am

UNIVERSAL Music Group (UMG) will cease licensing content to TikTok and TikTok Music services, as the music label said on Tuesday that its agreement with the social media platform expiring on Jan. 31 has not been renewed.

UMG has been pressing TikTok for appropriate artist and songwriter compensations in their contract renewal discussions, among other things, it said in a letter addressed to its artist and songwriter community.

If UMG fails to reach an agreement with TikTok, all its songs will be removed from the service once the deal expires on Wednesday, a UMG spokesperson said.

In its letter, UMG accused TikTok of “trying to build a music-based business, without paying fair value for the music.”

UMG said TikTok proposed paying artists and songwriters at a rate that is a “fraction of the rate” that similarly situated major social platforms pay.

TikTok accounts for only about 1% of UMG’s total revenue, the music label said.

TikTok did not immediately respond to a Reuters request for comment.

The company had reached a deal with social media platform TikTok in February 2021, which allowed users on the app to be able to incorporate clips from UMG’s music catalog on their videos.

Among the artists on UMG’s roster are Justin Bieber, Taylor Swift, BTS, BlackPink, Elton John, Billie Eilish, and Boys Republic. — Reuters

TDF yields mixed as GDP data boost rate cut hopes

February 1, 2024 | 12:04 am

Yields on the central bank’s term deposits were mixed on Wednesday following the release of data showing that gross domestic product (GDP) growth slowed in 2023, which may prompt the Bangko Sentral ng Pilipinas (BSP) to consider rate cuts to support the economy.

The BSP’s term deposit facility (TDF) fetched bids amounting to P257.394 billion on Wednesday, below the P310 billion on the auction block as well as the P281.954 billion in tenders for a P340-billion offer seen a week ago.

Broken down, tenders for the seven-day papers reached P125.356 billion, lower than the P160 billion auctioned off by the central bank and the P136.488 billion in bids for a P180-billion offering seen the previous week.

Banks asked for yields ranging from 6.5% to 6.612%, slightly wider than the 6.56% to 6.612% band seen a week ago. This caused the average rate of the one-week deposits to increase by 0.24 basis point (bp) to 6.5871% from 6.5847% previously.

Meanwhile, bids for the 14-day term deposits amounted to P132.038 billion, below the P150-billion offering and the P145.466 billion in tenders seen on Jan. 24 for P160 billion on the auction block.

Accepted rates for the tenor were from 6.45% to 6.64%, lower than the 6.6% to 6.6499% margin seen a week ago. With this, the average rate for the two-week deposits slipped by 0.81 bp to 6.6106% from 6.6187% logged in the prior auction.

The BSP has not auctioned off 28-day term deposits for more than three 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 were mixed following the release of Philippine GDP data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The latest GDP growth data could still support possible local policy rate cuts, especially if the Federal Reserve starts cutting rates later in 2024, provided inflation remains within the central bank target,” Mr. Ricafort said.

The Philippine economy grew by 5.6% in 2023, falling short of the government’s 6-7% full-year target, the Philippine Statistics Authority reported on Wednesday.

This was slower than the 7.6% expansion in 2022 but was a tad higher than the 5.5% median estimate of 20 economists in a BusinessWorld poll last week.

In the fourth quarter alone, GDP grew by 5.6%. This was slower than the revised 6% in the third quarter and 7.1% in the same quarter in 2022.

The BSP hiked borrowing costs by 450 bps from May 2022 to October 2023, bringing its policy rate to a 16-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. last month said the Monetary Board may cut borrowing costs this year, but this is unlikely to happen within this semester amid lingering risks to the inflation outlook.

Inflation stood at 3.9% in December 2023, bringing the full-year 2023 average to 6% in 2023, above the BSP’s 2-4% target.

The BSP sees inflation easing to 3.7% this year and to 3.2% in 2025.

Meanwhile, the US central bank raised borrowing costs by 525 bps from March 2022 to July 2023, bringing the fed funds rate to 5.25-5.5%.

Markets now expect a 47% chance of a Fed rate cut in March, the CME FedWatch tool showed, down from 88% a month earlier, Reuters reported. They currently anticipate 134 bps of cuts in the year, compared with 160 bps of easing a month earlier.

TDF yield movements were also affected by global crude prices’ recent rise, Mr. Ricafort added. — Keisha B. Ta-asan

Chinese transformation of Hong Kong almost complete

February 1, 2024 | 12:04 am

HONG KONG was once one of the world’s most storied international centers. With the planned proposals for a new security law, the government is transforming it into yet another mainland Chinese city, with even more control exerted from Beijing. This will not just be bad for business, but also for the financial hub’s global reputation.

Watching Chief Executive John Lee deliver his press briefing on the public consultation of Article 23 was an exercise in surrealism. He consistently put forward the idea that the city needs this on top of the National Security Law, which was passed in 2020 by China’s top legislative body, and endorsed by President Xi Jinping without public debate. At the time, Beijing said the measures were intended to bring calm back to Hong Kong’s streets, which had been rocked by pro-democracy protests. In reality, it was about control. The Hong Kong government is making similar arguments for its new law, saying it is intended to keep the financial hub safe and attract investors. It is yet another poor attempt at justifying even further restraints.

By any measure, Hong Kong is a shadow of its former self, both in terms of economic vibrancy and political activity. With this new plan, the Chinese transformation of the city is now almost complete, and Article 23 is just the latest piece of the jigsaw. The government says this will attract foreign interest and funds, but the strategy is at best disingenuous, and at worst, a charade that officials are hoping the international business community will buy.

More security laws are not what the financial hub needs. But Lee was adamant that it does despite the fact that the city has changed so much in the last few years. Covering the 2019 protests against a then unpopular extradition bill, I remember meeting with scores of angry, defiant protesters out on the streets. Looking back at those images today, it is hard to believe those scenes even happened. The likelihood of any significant dissent during the public consultation period this time around is low.

“They saw their window of opportunity,” Timothy McLaughlin, co-author of Among the Braves, a recent book documenting Hong Kong’s now failed democracy movement said, explaining the government’s decision to launch this consultation. “There’s no opposition in the government, there’s no opposition in the district council, there will be no protests on the streets. This is a done deal.”

McLaughlin also points to an expanded focus on espionage in the document that in his view references the way the mainland has been handling state secrets. “There’s a provision here that seems to broaden the definition of a public figure and that puts greater risk on those divulging information,” he said. “You have to assume that this will put a chill on people in terms of sharing information they might have or would have liked to discuss more openly.”

The nod to how the mainland handles things will no doubt spook investors, and this is already being reflected in the markets. Hong Kong stocks have been hammered. Some of that is down to concerns over the Chinese economy, but also about the difficulties of doing business in the mainland as a foreign firm. In the last year, American consultancies have been questioned by authorities, who didn’t reveal details on the nature of the investigation. Foreigners have been detained or imprisoned, ostensibly for divulging information and intelligence, according to China’s foreign ministry.

The worry now is that with this new proposed legislation, Hong Kong will begin to resemble China even more. Overseas companies are already nervous, with the latest survey from the US Chamber of Commerce in the city saying, “that members continued to worry about US-China relations and overseas perception of Hong Kong.” The hushed question being asked in boardrooms across the island is no doubt, “How do we make sure not to fall afoul of these new proposed regulations, when they are so vague and ambivalent?”

That may be precisely the point; the more ambiguous and wide-ranging the plan, the more of public and private life it will cover. This latest move — instead of attracting investment — will bring further damage to the city’s reputation and international business image, argues Willy Lam, senior fellow at The Jamestown Foundation, a Washington-based think tank. “What they are doing is hastening the pace of Hong Kong’s decline,” he told me. “It’s no longer the third financial center in the world, expat workers are leaving, and locals are too — and if they haven’t left yet, they’re planning their exit.”

As Westerners are leaving, professionals from the mainland are taking their place. Hong Kong likely overtook Switzerland to become the world’s largest cross-border financial center last year, as a result of the inflow of Chinese wealth. All of this further emphasizes the city’s dependence on China, and its transformation into another mainland city. Hong Kong’s new reality is one where the openness and transparency that were once its hallmarks, are now a sepia-toned memory. — Bloomberg Opinion