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Philippines’ digital competitiveness slips

REUTERS

By Jenina P. Ibañez, Reporter

THE PHILIPPINES slipped one spot to 58th in a global digital competitiveness index as a result of declines in future readiness, technology and knowledge.

The country placed 58th out of 64 economies in IMD business school’s World Digital Competitiveness Ranking 2021, after falling to 57th place in 2020 from 55th a year earlier. It retained the 13th spot among the 14 Asia-Pacific economies measured.

Each economy is ranked in indicators grouped under three pillars. The Philippines fell three spots to 57th in the “future readiness” pillar after poorer performance in adaptive attitudes, business agility, and information technology integration.

The Philippines also dropped by one place in the “technology” pillar after a decline in capital, and it sank by one spot in the “knowledge” pillar as its training and education rank fell.

American Chamber of Commerce of the Philippines Senior Advisor John Forbes called the decline “very concerning” especially after its Asia-Pacific ranking declined to 13th from 11th in 2017.

While he notes good reforms in digital commerce and government transactions, he said the biggest concern is still infrastructure.

“The country has very weak common towers networks,” he said in a mobile message on Wednesday. “The Open Access to Data Transmission bill has not even had one hearing in the Senate. Over 50 business groups have urged the Senate to open telecommunications to full foreign private sector ownership in the Public Service Act amendments.”

George T. Barcelon, Philexport chairman, said in a mobile message that the decline reflects the inadequacy of local information technology infrastructure in coping with the additional capacity needed as more people work from home during the lockdown.

“We must remember other nations are also improving theirs and the indexing is relative to them. In other words, relatively others can be doing better than us, while we did not advance to their pace,” he said.

The Philippines’ strengths are in sciences graduates, female researchers, investment in telecommunications, entrepreneurial fear of failure, and high-tech exports.

Its weaknesses are communications technology, internet users, internet bandwidth speed, enforcing contracts, and starting a business.

Topping the World Digital Competitiveness index were the United States, Hong Kong, Sweden, Denmark, and Singapore.

“The countries who seem to have performed better are those that have managed to have a strong presence in future readiness, that is, with flexible and agile individuals as well as firms, and to integrate the IT technologies in their daily practice. In addition, leading economies are characterized by strong performance in training and education. Finally, leading economies have the ability to allocate capital towards learning and developing new technologies,” the IMD World Competitiveness Center said in the report. 

Trade Assistant Secretary Allan B. Gepty at a virtual event on Wednesday said the country must have a stable and predictable digital environment as more people buy goods online, which he said could be done through international agreements.

“More than passing laws, rules and regulations that are comprehensive and responsive to the changing environment, it is important to have some degree of uniformity or harmony of certain core rules and disciplines on digital economy in the international spectrum,” he said.

“We need to work and collaborate with other economies in identifying challenges as well as the necessarily rules to govern the digital economy. If we can well define this environment, then we can promote trust in the digital economy.”

PHL falls in digital competitiveness

Business, labor groups urge Duterte to issue EO on SSS premium hike

FORMER PRESIDENT RODRIGO R. DUTERTE — PCOO

TEN BUSINESS and labor groups are urging President Rodrigo R. Duterte to immediately order the deferment of the hike in social security contributions to help businesses still struggling amid the pandemic.

“(We) are constrained to write the President for urgent action on this pending request for the deferment. We have yet to fully re-open and many have already lost their income sources either permanently or temporarily,” the groups said in a Sept. 27 letter addressed to Mr. Duterte. A copy of the letter was given to the media.

The letter was signed by leaders of the Philippine Chamber of Commerce and Industry (PCCI), Trade Union Congress of the Philippines, Federation of Filipino-Chinese Chamber of Commerce and Industry, Inc., the Employers Confederation of the Philippines (ECoP), Federation of Free Workers, Makati Business Club, Philippine Exporters Confederation, Inc. (Philexport), Sentro ng mga Nagkakaisa at Progresibong Manggagawa, Management Association of the Philippines, and Partido Manggagawa.

Mr. Duterte in May signed Republic Act No. 11548 authorizing him to defer the scheduled increase in Social Security System (SSS) premium contributions, which the business and workers groups said sent a positive signal to employees and employers preventing further losses amid the coronavirus pandemic.

However, the executive order (EO) implementing the law has not yet been issued by Malacañang.

The groups said the SSS is also waiting for the EO before it suspends the scheduled SSS premium hike to 13% from the previous 12% of member salaries that took effect in January.

They said postponing the SSS premium increase would be critical to economic recovery as it would help sustain cash flow among small businesses.

“It will also serve as a very concrete government contribution to the National Employment Recovery Strategy (NERS) program that is implemented with private sector,” the business groups said.

Several of the same groups had previously asked the National Government for more representation at the working group level of the employment recovery plan, which they said would establish cohesive public-private collaboration.

The Home Development Mutual Fund (Pag-IBIG) also waived penalties for companies that were not able to remit employee savings within the past two years after a request from PCCI, Philexport, and ECoP, which said industries need help to recover from the effects of the pandemic. — Jenina P. Ibañez

Philippines holds potential to become a regional leader in sustainability

Solar panels are being installed on the roof of a mall. — GREEN HEAT HANDOUT PHOTO

By Angelica Y. Yang, Reporter

THE PHILIPPINES has the potential to lead in sustainability efforts across Southeast Asia, management consulting firm Bain & Co. said in a recent report, citing opportunities for renewables investments and the rise of green businesses.

“With its renewables industry and natural capital attracting international attention, the Philippines has the potential to develop directly into a green economy. There is also opportunity to better manage its waste sector and electrify its transport sector,” Bain & Co. said in its Philippines report “Perspectives on the Green Economy.”

The consulting firm noted that the Philippines was moving towards reducing emissions by phasing out coal and attracting green financing schemes.

Bain & Co. noted the presence of opportunities in solar and wind power investments in the Philippines.

“There is opportunity for investors to build out accompanying (solar) infrastructure, such as an electric grid to cope with fluctuating production and photovoltaic (PV) recycling plants for end-of-life PV waste management to smoothen the transition,” it said.

The Philippines has 160 GW (gigawatt) of wind energy potential, and that it can accommodate “globally-proven” wind technologies without any limitations of technology transfers, it added.

The firm noted that the country has scaled up green investments across all asset categories, as transport remains an “attractive sector.”

“Private equity/venture capital activity and corporate investments have grown, although overall infrastructural spending has slowed in 2020, potentially due to pandemic,” it said.

However, Bain & Co. projected that the country’s unconditional absolute annual emissions between 2018 to 2030 will increase to more than Southeast Asia’s overall level without sufficient international support. However, conditional emissions are expected to be more than halved in a decade, it added.

Earlier this year, the Philippines submitted its first nationally determined contribution to the United Nations Framework Convention on Climate Change. The five-page document seeks to lessen greenhouse gas emissions by 75% by 2030.

Of the target, some 72.29 % will be conditional or dependent on support from developing countries. The rest or the so-called unconditional target will be addressed using domestic resources.

Megaworld REIT moves debut; AllDay gets nod

By Keren Concepcion G. Valmonte, Reporter

THE real estate investment trust (REIT) sponsored by Megaworld Corp., MREIT, Inc., said it will be moving its listing at the Philippine Stock Exchange (PSE) to Friday, Oct. 1, from its previously scheduled Sept. 30 market debut as it completes the lodging of its shares.

Separately, the PSE approved the listing application of AllDay Marts, Inc., which is seeking to raise P6 billion from its initial public offering (IPO).

“We are grateful that the introduction of REITs to the market was met with much optimism and we are very pleased with MREIT’s overwhelming demand,” MREIT said in a statement on Wednesday.

“This is a testament to the confidence of the investors and a reflection of the Philippine capital market,” it added.

MREIT is offering 844.30 million common shares to the public for P16.10 apiece, with an overallotment option of up to 105.54 million shares. The final offer size is lower than the 1.08 billion shares and the 161.7 million shares overallotment option previously announced, while the offer price was also slashed from the P22 price ceiling it set.

MREIT President Kevin Andrew L. Tan previously said the company lowered its IPO price to attract more investors with its dividend yield, which is projected to be at 5.65% for 2022 and 6.1% for 2023.

Tan-led MREIT said the “overwhelming demand from investors” for its IPO has affected the completion of the lodging of its shares with the Philippine Depositary Corp., resulting in a one-day delay for its market listing.

“This also partly reflects the excess liquidity in the financial system in search for higher returns, particularly dividend yields that are much higher than bond yield, plus possible share price gains as more upside [is] provided by the recent offering price adjustment,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.

Upon listing, MREIT will be the fifth REIT at the local bourse and the fourth REIT to make its market debut this year.

Meanwhile, AllDay is hoping to raise P6 billion from the sale of up to 6,857,143,000 common shares for 80 centavos each, along with an overallotment option of 685,714,000 shares to be offered by AllValue Holdings Corp.

“The exchange’s approval of the conduct of the IPO and the listing of [AllDay’s] shares are subject to its compliance with all of the post-approval conditions and requirements of the exchange,” the PSE said in a listing notice.

Majority of proceeds will be used to repay debt worth P4.10 billion, which was incurred to fund its past and ongoing store expansion, while the balance will be used for capital expenditures and to launch more stores.

AllDay is hoping to expand its store network to 45 by next year from 33 stores, and is eyeing a 100-store network by end-2026.

AllDay’s offer period will run from Oct. 18 until Oct. 25, while its tentative listing date is slated for Nov. 3. It will be listed under the ticker symbol “ALLDY.”

“We are pleased that we will be welcoming AllDay Marts as an addition to our roster of listed firms and we are glad that it chose the equities market to raise capital for its financial requirements and expansion plans,” PSE President and CEO Ramon S. Monzon said in an e-mailed statement.

RCBC’s Mr. Ricafort said the capital markets remain attractive for both issuers and investors.

“While financing costs still relatively lower, though rising recently, for issuers, while returns or yields becoming more attractive for investors amid the need to tap or deploy the excess liquidity in the financial system and generate more investments, jobs, and other business/economic activities to further support recovery prospects for [the] economy,” he explained.

For the last quarter of the year, analysts said a further reopening of the economy can help support the recovery of sales, income, among others, of listed companies, on top of the progress in the country’s vaccination program.

“Consumer spending, which accounts for about 70% of the economy, would also pick up in [the fourth quarter], especially in view of the Christmas season, which accounts for a significant share of sales of many businesses and industries,” Mr. Ricafort said in a Viber message on Sept. 24.

Meanwhile, Summit Securities, Inc. President Harry G. Liu said he expects a correction in the market because of its overbought condition.

“In the short to medium term, I still expect a correction to set in because of the overbought condition that it prevents a correction because there are certain industries that are positive for the moment, like telecommunications,” Mr. Liu said in a phone call on Sept. 24.

Vegetarian burgers hit convenience stores

CONVENIENCE store chain 7-Eleven’s unMEAT Burger and Burger Steak Rice Meal. — 7-ELEVEN.COM.PH

By Joseph L. Garcia, Reporter

CONVENIENCE store 7-Eleven Philippines is democratizing healthy eating by making plant-based dishes available in its stores — for a minimum of P89.

These new dishes come in the form of a plant-based burger (the 7-Fresh Plant-Based Burger) and a plant-based burger steak (Big Time Meal Plant-Based Burger Steak) served with rice and “gravy.” The patties are sourced from a partnership with Century Pacific Food (CNPF), which makes unMEAT, a 100% plant-based meat analogue without dairy or eggs. According to a previous story in BusinessWorld, unMEAT has less than 10 ingredients: soy protein, oils, salt, onions, soy sauce, and vinegar.

“Our goal is to democratize plant-based food alternatives by making plant-based eating easy — easy because of its great taste, affordability, and widespread availability,” said Nikki Dizon, CNPF’s Vice-President and General Manager for Refrigerated Food, in a statement.  “We believe our partnership with 7-Eleven is a big step forward in providing our consumers with convenient access to unMEAT.”

Meanwhile, a representative from 7-Eleven Philippines said that the new burger and burger steak are their own recipe. “The product application is a 7-11 recipe — the brioche buns, the burger steak sauce is ours. We are happy with this line,” said the representative in an e-mail to BusinessWorld.

While the patty itself is 100% plant-based, the new dishes at 7-Eleven use some animal byproducts. “Our plant-based offerings use animal by-products such as butter and egg for our brioche bun, cheese from cow’s milk, while our burger sauce has egg as an emulsifier. Both products are 100% meat free,” said a joint e-mail from Eilleen Castillo, Senior Category Manager-Fresh Food, and Hunny Ayende, Senior Category Manager-Fast Food.

The company also highlighted the nutritional benefits of the plant-based burger meals. “Both 7-Fresh Plant-Based Burger and Big Time Meal Plant-Based Burger Steak have 0% trans fat. The Big Time Meal Plant-Based Burger Steak also has zero cholesterol, while the 7-Fresh Plant-based Burger has low cholesterol. Our patties for both products are 100% plant-based and non-GMO,” they said.

According to them, 7-Eleven Hong Kong, Japan, Korea, and Singapore have also released their own plant-based menus since last year. “While it’s not a coordinated, global initiative, it is a reaction to local trends,” they said.

“There has been a rising trend of plant-based eating since 2016, and Filipinos are now more aware and interested in this. We at 7-Eleven recognize the changing lifestyle and eating habits of our customers and we want to offer them not just convenient and affordable meals but also healthier and better meal options,” they said.

The 7-Fresh Plant-Based Burger and the Big Time Meal Plant-Based Burger Steak are now available in over 1,900 7-Eleven stores nationwide.

Cebu Landmasters breaks ground for Mandaue project

MANDTRA Residences

CEBU Landmasters, Inc. (CLI) started construction for its three-tower project in Mandaue City, the company said in a statement on Wednesday, adding that it is also planning to launch the project’s second tower in October.

The second tower of Mandtra Residences will be launched ahead of schedule to keep up with the demand seen with the first tower, which has 90% of its units already sold in five months.

“The high sales velocity of Mandtra Residences serves as an affirmation that we are on the right track,” said Jose R. Soberano III, president and chief executive officer of CLI.

Mandtra Residences is located on a 12,405 square meter (sq.m.) property along P. Basubas Street in Barangay Tipolo.

The project will include a retail podium, three parking levels, a clubhouse, chapel, a function hall, fitness gym, adult and kiddie pools, a jogging path, as well as landscaped areas. Its amenity podium will span 7,000 sq.m.

The first phase of Mandtra Residences includes the first two towers, which consist of 1,280 units. It is slated for completion by the first quarter of 2025. Meanwhile, the second phase includes the third tower that will add 599 more units to the project.

In total, Mandtra Residences will have 1,879 units, with mostly studio units and one-bedroom units. Units may be combined, CLI said.

Each residential tower will have its own lobby and reception area, along with three passenger elevators, a mailroom, security and property management services, backup power, and one garbage holding room per floor.

Mandtra Residences is a project managed by CLI with Ixidor Holdings, Inc., which is headed by former Aboitiz Equity Ventures, Inc. Chairman Erramon I. Aboitiz.

“We are pleased to be jointly applying our insights and understanding of the Cebuano market through this project,” Mr. Soberano said.

Meanwhile, Vision Properties Development Corp. was assigned as the general contractor of Mandtra Residences, which will be the first project in a series from Cebu Homegrown Developers.

During the groundbreaking ceremony for Mandtra Residences, Mr. Soberano also pledged to donate a P100-million tenement condominium building. It will include more than 100 socialized units for Mandaue City.

CLI has built over four residential and mixed-use developments in the city so far, and the company said it “shares the vision of Mandaue City Mayor Jonas C. Cortes to provide resilient and quality public housing for its constituents in a highly accessible location within the city.”

Shares of CLI at the stock market closed unchanged at P2.90 apiece on Wednesday. — Keren Concepcion G. Valmonte

GrabFood expands into Bulacan, Cavite, Laguna, and Rizal

THE “BUBBLE” of NCR+ (consisting of the National Capital Region and the its surrounding provinces of Bulacan, Cavite, Laguna, and Rizal) made news earlier this year due to its varying quarantine status throughout the pandemic. The same bubble makes news again as Grab Philippines expands its services throughout the same area: adding cities and towns in Bulacan, Cavite, and Laguna to its list of serviced areas for GrabFood food delivery.

According to a statement from Grab, the following cities and municipalities will now be serviced by GrabFood: Meycauayan, Marilao, Bocaue, Malolos, Baliuag, San Ildefonso, San Miguel, and Pulilan in Bulacan; Tagaytay, Maragondon, Amadeo, and Gen. Emilio Aguinaldo in Cavite; and San Pablo, Santa Cruz, Santa Maria, Sinoloan, Mabitac, Famy, Pakil, Pangil, Paete, and Magdalena in Laguna.

“This comes after regular feedback from residents in these areas, requesting for Grab to offer its services so that they too can have access to everyday value, safe and hygienic food delivery service, as well as livelihood opportunities,” read the statement. New GrabFood users can enjoy free delivery and P20 off when they use the promo code TRYGRABFOOD.

Grab Philippines will continue to implement GrabProtect in those new cities and municipalities. GrabProtect is a suite of tools, policies, and procedures aimed to ensure the safety and hygiene standards across the Grab platform. As part of GrabProtect, all food deliveries in Bulacan, Cavite, and Laguna will continue to observe a contactless delivery policy for the benefit of both the consumers and delivery-partners. As part of Grab’s ongoing efforts in raising the safety and hygiene standards in the food delivery industry in the Philippines, merchant- and delivery-partners in Bulacan, Cavite, and Laguna will also undergo food safety and hygiene training from specialized learning modules co-developed by the Food Safety and Hygiene Academy of the Philippines (FoodSHAP) and Grab Philippines. These modules will include proper food handling, delivery, as well as proper sanitation of delivery vehicles and gears.

Meanwhile, local business owners in those areas will be aided by Grab programs to help their business go digital. These include Grab Online Shop and Campaign packages, as well as programs like Grab’s Annual Merchant Conference, and Grab Merchant Academy. Grab Online Shop is an e-commerce solution for food and beverage businesses. With these, merchants can set their preferred delivery radius, maximum delivery fees, and minimum order amount, and have the choice of delivering orders using their own fleet or Grab’s delivery fleet; along with other benefits such as access to analytics and marketing tools.

Marketing programs within the Grab Campaign package include Grab-curated marketing packages with combined advertising and promotional tools. Grab will also have an upcoming financial literacy program in partnership with the International Finance Corporation (IFC). According to another statement from last month, “Grab and the International Finance Corporation (IFC) are collaborating to improve financial literacy among small businesses. Grab’s merchant-partners will have access to IFC’s world-class training materials for free via GrabAcademy on the GrabMerchant app,” it said.

“We want to serve and empower even more of our fellow Filipinos with this expansion. Through Grab’s digital platform, expertise, and technology, we can help the residents and local business owners of Bulacan, Cavite, and Laguna to unlock new earning opportunities, boost economic activities within the cities and thereby create a positive impact on their communities,” Grab Philippines Head of Deliveries Anton Bautista said in a statement.

Yields on term deposits climb on weaker peso

YIELDS ON the central bank’s term deposits inched higher on Wednesday due to a weaker peso and as they tracked an uptrend in global rates.

Bids for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) amounted to P540.613 billion on Wednesday, higher than the P530-billion offer but failing to beat the P620.229 billion in tenders seen last week.

Broken down, demand for the seven-day papers stood at P160.051 billion, lower than the P170 billion on the auction block as well as the P217.425 billion in tenders logged during last week’s offering.

Accepted rates for the tenor ranged from 1.68% to 2.2%, a wider band than the 1.69% to 1.7125% recorded a week earlier. This caused the average rate of the one-week term deposits to increase by 3.25 basis points (bps) to 1.7371% from the 1.7046% quoted previously.

Meanwhile, the 14-day papers attracted tenders amounting to P380.562 billion, surpassing the P360-billion offering but falling below the P402.804 billion in demand seen last week.

Banks asked for yields ranging from 1.7095% to 1.88%, a wider margin compared with the 1.71% to 1.8% seen last week. With this, the average rate of the two-week term deposits inched up 0.04 bp to 1.7443% from 1.7439% on Sept. 22.

The BSP did not sell 28-day term deposits for the 49th straight auction to give way to its weekly offerings of bills with the same tenor.

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

Yields on the term deposits increased on Wednesday as they tracked global rates, ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said.

“Rates inched higher for local TDF tracking the general uptrend in global yields. Inflation concerns have driven longer-end yields higher but the rise of shorter-dated yields was capped by abundant liquidity,” Mr. Mapa said in an e-mail.

Benchmark US Treasury yields continued to climb since the end of last week, Reuters reported. This was due to market reaction to signals from the US Federal Reserve that it could begin reducing its monthly bond purchases as soon as November, with rate hikes likely to follow.

Euro zone bond yields also increased on Tuesday amid hawkish tones from major central banks, including the Fed as well as the Bank of England.

TDF yields also rose due to the continued depreciation of the peso versus the dollar, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“Weaker peso exchange rate recently could increase imports costs and lead to some uptick in inflation,” Mr. Ricafort said in a Viber message.

The peso closed at P51 per dollar for the second straight day on Tuesday, its weakest finish since it ended at P51.07 on March 26, 2020. This is down by P2.973 or 6.2% against its close of P48.023 per dollar on Dec. 29, 2020.

Meanwhile, inflation surged to 4.9% in August, the fastest since the 5.1% recorded in December 2018, as food prices spiked due to recent typhoons. This brought the eight-month average to 4.4%.

The BSP expects inflation to hit 4.4% this year, quicker than the 4.1% estimate it gave previously and above its 2-4% target. In 2022 and 2023, inflation is expected to fall within target at 3.3% and 3.2%, respectively. — Luz Wendy T. Noble with Reuters

Need for more modernized warehouses seen

MODERNIZED warehouses are seen to support demand for e-commerce in the Philippines, industry experts said at the BusinessWorld Insights online forum on Wednesday.

“There should be more modern warehouses to support demand for an economy that will continue to grow… and rely on e-shopping and e-commerce,” Colliers Philippines Associate Director Joey Roi H. Bondoc said.

“These warehouses are likely to be part of the REIT (real estate investment trust listing) and REIT investments of a lot of property players, because these warehouses are generating recurring income,” he added.

The coronavirus pandemic has triggered demand for warehouses within or near the Philippine capital.

The current trend or need is for goods to be delivered the same day or the following day, Mr. Bondoc said.

Dennis Velasco, chief executive officer at Prosperna, an e-commerce platform for micro, small and medium enterprises, said: “In fact, DHL and LBC are some of the major players amongst many, many others that are rapidly adopting new technologies in terms of their warehouses to create a low-touch, frictionless environment, as there are also employees who are hindered by the lack of transportation.”

“If you remember, 18 months ago, there was a big supply chain crunch because products and services were not able to move,” he noted.

Prosperna also sees an increase in new brands emerging, some of which are 100% online businesses.

Warehouse lease rates have been increasing “over the past few quarters,” Mr. Bondoc said.

Demand for warehouses is driving up such rates because many consumers are now ordering online.

“You have to note that the Philippines is primarily a consumption driven-economy; and since we are in a lockdown, the Philippines is practically a lockdown economy as well,” he added.

Companies are keen on occupying warehouses in the northern parts of Metro Manila like Caloocan, Malabon, Navotas, and Valenzuela, or Camanava.

“Outside these areas, we are also seeing greater demand for these facilities in Bulacan as well as Pampanga,” Mr. Bondoc said. — Arjay L. Balinbin

Amazon launches ‘screen on wheels’ robot called Astro

AMAZON.COM, Inc. on Tuesday unveiled a home robot called Astro, a screen on wheels that works with the company’s Alexa voice software.

The bot, which Bloomberg first reported was in development in 2018, was shown at an Amazon product event on Tuesday checking on pets while a user was away and following a child through the home during a video call. It can autonomously patrol the home and respond to voice commands, and will cost $1,000 for invited shoppers later this year.

The device’s screen, which by default displays a pair of circles to imitate eyes, is capable of traveling about a meter per second. Embedded cameras help the robot map its environment and navigate, and Astro also includes a periscope to expand its field of view.

“Customers don’t just want Alexa on wheels,” said Dave Limp, Amazon’s devices and services chief. “We’ve embodied it with a unique persona that’s all its own.”

Mr. Limp said the robot is part of an Amazon program that makes devices still under development available. Astro will be sold on an invitation-only basis at an introductory price of $1,000. After that, it will cost $1,500, the company said. Shares of iRobot Corp., maker of Roomba vacuum cleaners, fell slightly.

The Seattle-based company has come a long way as a hardware player since a failed foray into smartphones a few years ago. Amazon has built a massive electronics business around its voice-controlled Echo smart speakers and accompanying Alexa software. Amazon has held new product unveilings in each of the last several years, an effort to position itself at the center of the burgeoning market for smart-home gadgets.

The company doesn’t release financial or operational results from its devices and services group, but Euromonitor International estimates Amazon’s gadget line is the third best-selling brand in the US by unit sales, trailing only Apple, Inc. and Samsung Electronics Co.

The vast majority of the products, however, are relatively inexpensive gizmos such as Fire TV streaming sticks or miniature Echo speakers. In Astro, Amazon, a company with a reputation for scrappy and utilitarian hardware, has set up its biggest test to date: selling a premium product with an eye-watering price tag.

Several of Amazon’s other updates announced on Tuesday, from professional monitoring of Ring video cameras to an elder care application and new voices for Alexa, were geared toward adding paid or subscription services to Amazon’s popular products.

The latest products and services include:

• A smart thermostat in partnership with Honeywell International, Inc. The $60 device, which will sell for as little as $10 with rebates, is a potential competitor to Alphabet, Inc.’s Google Nest.

• An Echo device with a wall-mounted 15-inch screen that can stream Prime Video and Netflix, display calendars and comes with a custom-built chip to help process voice commands.

• A tie-up with the Walt Disney Co. to put Echo devices in the company’s theme parks and hotels. Expected next year, they’ll be equipped with new software, called Hey, Disney!, built on the technology behind Amazon’s Alexa. That will enable visitors to interact with Disney characters and summon Alexa for other tasks. People with Echo devices at home will also be able to buy the functionality for their own devices.

• A new version of its fitness tracker, called Halo View, that incorporates a small screen for the first time. It will cost $80, Amazon says. A new service, called Halo Fitness, targets major users of wrist-worn devices. Peloton shares fell on the news.

• Glow, a device that combines an 8-inch screen for video chatting with a projector that displays images on an adjacent 19-inch “touch-sensitive” projection area. The pitch is for kids to connect with loved ones by doing puzzles or drawing together. Available to begin with an invite-only basis, the device costs $250.

• Ring is moving beyond its roots in do-it-yourself home security, releasing a set of products targeting the market for professional security services.

Amazon’s devices unit has been a frequent target of criticism, from privacy advocates who question the wisdom of always-on microphones in the home, and civil liberties groups alarmed by Ring’s partnerships with police departments and security practices. Those doubts haven’t derailed Amazon’s sales.

Meanwhile, the company has worked to burnish its privacy credentials, offering Alexa users more granular options to delete voice recordings captured by Amazon devices, encrypting videos picked up by Ring, and asking police departments to publicly request footage they want for investigations. An update announced on Tuesday and coming to some Echo devices will enable processing of user commands on the device itself, removing the need to transmit that data to Amazon’s servers.

Amazon earlier this month announced its first line of televisions, as well as an update to its Kindle e-reader line. Bloomberg News reported last week that Amazon was working on a larger Echo with a wall-mountable screen, a TV sound bar, and more advanced smart-speaker technology for use in cars. The company has also considered developing an Alexa-powered wearable device for children.

In a video accompanying Amazon’s presentation, devices executive Charlie Tritschler described the impetus to start developing the Astro robot. “In one of the senior management meetings, we talked about, ‘Does anybody in the room think that in five, 10 years, you’re not going to have robots in your home?’” Mr. Tritschler said. “And everybody’s like ‘Yeah, we are.’ So we said, ‘Well, let’s get started.’”

Added Gregg Zehr, president of Lab126, Amazon’s skunkworks hardware unit: “This is our first robot, not our last robot.” — Bloomberg

Hong Kong’s Michelin starred restaurants await international diners

WHILE the ongoing COVID-19 (coronavirus disease 2019) pandemic keeps travel off of most people’s plates, Hong Kong is reminding potential visitors why it should be on their menu once travel restrictions ease up and tourism starts.

Hong Kong is considered one of the culinary capitals of the world. From simple local delights at cha chaan teng (local cafes), to classic Cantonese dishes at dai pai dongs (street stalls), to sophisticated wine dinners at Michelin-starred restaurants, Hong Kong has it all. And this is an aspect that future travelers are being reminded about through Hong Kong Chefs’ Playbook, a new series featuring Michelin star chefs and their love affair with Hong Kong. The series is now available for streaming, with the first two episodes, Yau Ma Tei with Vicky Lau and Wong Tai Sin with Shane Osborn now available at Discover Hong Kong’s website, Hong Kong Chefs’ Playbook | Hong Kong Tourism Board (discoverhongkong.com)

The city’s reputation as a gastronomic destination was cemented in 2009, when the Michelin Guide debuted in the city, bestowing 31 stars on 22 top restaurants.

“The Michelin Guide championed Hong Kong’s culinary scene by highlighting the high standards of Cantonese cuisine. In 2009, the guide recognized Lung King Heen with three Michelin stars, it was the first and only Chinese restaurant in the world at the time to receive such recognition, which helped to put Cantonese cuisine on the map,” said Nicolas Achard, Managing Director of Michelin Food & Beverage Asia.

Today, Lung King Heen still holds three Michelin stars, making it the Chinese restaurant with the longest three-star winning streak in 12 consecutive years.

The Michelin Guide has not only shone a spotlight on Hong Kong’s culinary excellence and boosted the Hong Kong F&B (food and beverage) scene, but also inspired many aspiring young chefs to seize the opportunity to experiment with ingredients and innovate new cooking techniques in the kitchen.

One of these chefs is Vicky Cheng.

Hong Kong-born Mr. Cheng, who trained in the culinary management program at George Brown College in Toronto, returned to Hong Kong in 2011. He set up VEA in 2016 and won a Michelin star in its first year of operations. Barely 36 years old at the time, Mr. Cheng created waves with his fusion concept of “Frenchifying Chinese food.”

Young chefs are also encouraged to be more creative, as evidenced by Vicky Lau of Tate Dining Room who is the only female chef in Asia to be awarded two Michelin stars in the 2021 edition. Using Hong Kong as a source of inspiration, Ms. Lau has created “Ode to” menus, in which she focuses on ingredients essential to Chinese cuisine. These include explorations of tea, tofu, and soy sauce.

Hong Kong-born chefs like Ms. Lau and Mr. Cheng who are trained in French cooking techniques are keen to pay homage to their roots by experimenting with local ingredients and food products and creating an East meets West taste with their dishes. This can be as simple as the humble egg waffle with scoops of ice cream and chocolate sauce, to steamed buns filled with creamy salted egg custard filing, to Mr. Cheng’s roasted sea cucumber on a bed of tiger prawn sauce.

But there is more to Hong Kong than Cantonese cuisine.

As an example, look at 8 ½ Otto e Mezzo BOMBANA, which is the first and only Italian restaurant outside Italy to be awarded three Michelin stars. Head Chef Umberto Bombana, who has lived in Hong Kong for almost three decades, loves the energy, convenience and cosmopolitan feel of Hong Kong.

Another notable restaurant would be New Punjab Club, which has elevated Punjabi dishes to new heights. With menu items like tandoori venison washed down with mango lassi, it is also the world’s first Pakistani restaurant with a Michelin star.

Hong Kong’s vibrant dining scene has also attracted many international chefs to set up shop in the city. One of them is chef Shane Osborn who came to Hong Kong in 2012 and opened St. Betty before setting up his own place, Arcane, two years later. In 2018 it was recognized with its first star.

“Hong Kong is a truly international city with a dynamic food culture. People like to explore and try new things, and are very open-minded when it comes to restaurants. You can get every type of cuisine in Hong Kong and for a restaurant or chef, that’s a very exciting place to be,” said Mr. Osborn.

The chef recently formed The Arcane Collective, expanding his portfolio of restaurants from one-star Arcane to Cornerstone and now Moxie, featuring vegetarian and seafood dishes, at The Landmark.

Hong Kong also boasts of one of the most affordable Michelin-starred restaurants. Located in the working-class neighborhood of Sham Shui Po, Tim Ho Wan is affordable and has held on to its Michelin Star accolade for 10 consecutive years.

Hong Kong is one of a few cities where its street food is recognized by the Michelin Guide. The Jordan and Yau Ma Tei districts have several street shops that are included in the guide. For noodle lovers, Mak Man Kee Noodle Shop is over six decades old, still serving springy egg noodles with generously sized tiger prawn wantons. Meanwhile, Kai Kai Desserts is known for its traditional Cantonese desserts like freshly ground black sesame soup, almond soup, and glutinous rice dumplings filled with black sesame paste.

In the 2020 edition of the Michelin Guide, the Green Star was introduced to recognize restaurants that “embody and embrace sustainability in their day-to-day operations.” In Hong Kong, Roganic was bestowed with this honor. Led by top British chef Simon Rogan, whose team uses every part of an ingredient to minimize food waste, the restaurant grows its own herbs and microgreens, and uses dry aging and curing techniques to extend the shelf life of food products.

With the growing F&B scene, chefs are championing food sustainability methods, with many choosing to source for locally produced ingredients like yellow chicken, organic vegetables and herbs. The focus on sustainability has made local and overseas diners more aware of Hong Kong’s quietly flourishing agricultural sector.

In 2009 Hong Kong was awarded 31 stars for 22 restaurants. Today, it boasts 95 stars for 69 restaurants. Who knows which new restaurants are included in the 2022 edition of the Michelin Guide.

Congestion fees from subsea cable damage to be on hold – PEMC

PHILIPPINE Electricity Market Corp. (PEMC) has assured Visayas customers that it will suspend the collection of congestion fees arising from the outage at a high-voltage submarine cable linking Cebu and Negros which earlier took place in June.

The Energy Regulatory Commission (ERC) previously ordered PEMC, which governs the wholesale electricity spot market (WESM), to halt the collection of congestion charges and other related fees to curb the “significant” increases in power rates beginning June.

The commission also required PEMC to refund congestion and other fees collected from June to August within “a period equivalent to the number of months covered by the subject collections.”

“We recognize the financial burden that the Visayas electric power consumers may bear attributable to the congestion caused by the damaged submarine cable,” PEMC President Leonido J. Pulido III said in an e-mailed statement on Wednesday.

The adjustments in the WESM billing and settlements will be reflected in the June 2021 billing.

“PEMC, in coordination with the IEMOP (Independent Electricity Market Operator of the Philippines), is currently fleshing out the details of the amounts and the manner of refund to the affected customers, as well as the recommendations to be submitted to the ERC on the pricing and settlement solution that may be applied during the repair period,” he added.

Once finalized, the proposed solution will be incorporated in the WESM rules.

Earlier this month, PEMC and the IEMOP submitted information to the ERC confirming the commission’s review of the “unusual results” of the July and August billing periods, which showed high line rental charges in the Negros and Panay regions, following the transmission line’s outage.

In the middle of June, dredging activities along the Bio-os River in Negros Oriental held by the Department of Public Works and Highways damaged the 138-kiloVolt Cebu Negros Line 1.

Repair activities on the transmission line are expected to last up to 26 months, according to PEMC. — Angelica Y. Yang

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