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Goldman hoists gold target to $3,100 on central bank appetite

Gold has roared higher this year, setting successive records in a seven-week winning run. — AKOS STILLER/BLOOMBERG

GOLDMAN Sachs Group, Inc. raised its year-end gold target to $3,100 an ounce on central-bank buying and inflows into bullion-backed exchange-traded funds, highlighting Wall Street’s enthusiasm for the metal.

Central bank demand may average 50 tons a month, more than previously expected, analysts Lina Thomas and Daan Struyven said in a note. Should uncertainty over economic policy persist, including on tariffs, bullion could hit $3,300 an ounce on higher speculative positioning, they said. The latter figure implies an annual gain of 26%, according to Bloomberg calculations.

The precious metal has roared higher this year, setting successive records in a seven-week winning run that’s built on last year’s surge. The commodity’s sustained advance has been driven by increased purchases by central banks, a streak of rate cuts from the Fed and, more recently, mounting investor concern over US President Donald Trump’s disruptive tariff announcements.

“‘We reiterate our ‘Go for Gold’ trading recommendation,” Thomas and Struyven wrote. “We see significant hedging value in long gold positions because of a potential increase in trade tensions.”

In addition, inflation fears and fiscal risks “may push central banks — especially those holding large US Treasury reserves — to buy more gold,” they said.

The more bullish outlook — which came after Goldman pushed back a year-end $3,000 forecast last month — followed official-sector purchases estimated at 108 tons in December, according to the analysts. Elsewhere, there’ll be a “gradual boost” to ETF holdings on two expected Fed cuts, they said.

The revised forecast sits alongside a host of other bullish predictions from leading banks. Among them, Citigroup, Inc. said earlier in February that it expects prices to hit $3,000 an ounce within three months, with geopolitical tensions and trade wars stoked by Trump boosting demand for haven assets.

Central bank accumulation has been a major theme in the global bullion market over recent quarters. In Asia, the People’s Bank of China expanded its holdings for a third straight month in January. Other official buyers have included Poland and India, according to the World Gold Council.

Holdings in bullion-backed ETFs have been expanding too, although the total figure remains far below the peak hit in 2020, during the pandemic. So far in 2025, such funds have climbed by about 1%, according to a Bloomberg tally.

Spot gold traded 1.4% higher at $2,935.96 an ounce as of 2:47 p.m. in New York, after setting a record above $2,942 last week. Prices have surged by more than 45% during the past 12 months, outpacing the 18% gain registered by a gauge of global stocks. — Bloomberg

Tokyo Gas enters PHL through FGEN LNG stake

TOKYO GAS Co., Ltd., Japan’s largest natural gas utility company, has completed its acquisition of a 20% equity stake in FGEN LNG Corp., the liquefied natural gas (LNG) terminal subsidiary of Lopez-led First Gen Corp.

“This subscription will deepen our partnership and enhance synergy that will boost our efforts in support of the Philippines’ energy security and stability, even as we all pursue decarbonization,” Francis Giles B. Puno, vice-chairman and chief executive officer of FGEN LNG and concurrent president of First Gen, said in a statement on Wednesday.

The acquisition marks the Japanese company’s first investment in a commercially operational liquefied natural gas terminal project overseas. First Gen did not disclose the transaction amount.

Tokyo Gas is one of the world’s largest LNG buyers, with an annual purchase volume of 13 million tons.

It operates over 63,000 kilometers of gas pipelines, serving approximately 8.8 million customers.

In May last year, First Gen LNG Holdings Corp., a wholly owned subsidiary of First Gen, executed a shareholders’ agreement and a share subscription agreement with Tokyo Gas for the latter to subscribe to shares in FGEN LNG.

Upon effectivity, FGEN LNG Holdings will hold an 80% stake, while Tokyo Gas will own the remaining 20% in FGEN LNG.

FGEN LNG is the owner and operator of the offshore LNG terminal project located within First Gen’s Clean Energy Complex in Batangas City.

Before the acquisition deal, Tokyo Gas partnered with First Gen in December 2018 for the development and construction of the terminal, which broke ground in May 2019.

Earlier this year, the company secured a permit from the Department of Energy, allowing it to operate and maintain its interim offshore LNG terminal for its own use for 25 years.

For the nine months ending in September, First Gen’s attributable net income fell by 16.1% to $39.8 million due to lower contributions from its renewable energy business.

Gross revenues went down by 5.9% to $568.48 million while gross expenses increased by 3.5% to $1.46 billion.

First Gen and its subsidiaries are primarily engaged in the power generation business and operate power plants that run on geothermal, wind, solar, hydro, and natural gas.

At the local bouse on Wednesday, shares in the company closed unchanged at P16.98 each. — Sheldeen Joy Talavera

MGen unit energizes 19.8-MW solar farm in Nueva Ecija

MGEN Renewable Energy, Inc. (MGreen), the renewable energy arm of Meralco PowerGen Corp. (MGen), has energized its solar power plant in Bongabon, Nueva Ecija, which can generate 19.8 megawatts alternating current (MWac) of clean energy.

The solar power project was completed at least six months ahead of schedule and could supply power to at least 20,000 households, the company said in a media release on Wednesday.

“More than just a solar power plant, MGreen Bongabon Solar is about creating opportunities, reducing our carbon footprint, and setting a new standard for renewable energy initiatives in our country,” said Dennis B. Jordan, president and chief executive officer of MGreen.

Currently, MGreen has a gross generating capacity of 344.46 MW of renewable energy. The newly completed facility will contribute to MGen’s goal of developing up to 1,500 MW of attributable renewable energy capacity by 2030.

“We acknowledge the role of this facility in fostering energy independence and reducing our carbon footprint,” said Sharon O. Montaner, director at the Energy Regulatory Commission. “The Bongabon Solar project is an example of how private sector initiatives align with the GEA (Green Energy Auction) program, providing the much-needed boost to our country’s clean energy capacity.”

This year, MGreen anticipates the completion of another solar plant in Cordon, Isabela, with a capacity of 52.8 MWac, and the expansion of an existing solar facility in Baras, Rizal, increasing its capacity to 12.6 MWac.

The company is also looking forward to completing the first phase of the MTerra Solar project in Nueva Ecija next year.

The project consists of a 3,500-megawatt-peak (MWp) solar power plant and a 4,500-megawatt-hour (MWh) battery energy storage system. Once completed by 2027, it is expected to provide clean energy to more than two million households.

MGen, the power generation arm of Manila Electric Co. (Meralco), holds a portfolio with a combined gross capacity of 2,602 MW from both traditional and renewable energy sources.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Developers struggle to adjust condo prices as costs remain high — Cushman

PIXABAY

PROPERTY DEVELOPERS in Metro Manila are unable to adjust condominium prices as inflation and supply chain issues keep costs high, according to real estate services firm Cushman & Wakefield.

“Developers are grappling with increased input costs due to persistent global inflation and supply chain issues, exacerbated by geopolitical tensions. These factors hinder their ability to adjust prices quickly, leading to slower sales and impacting revenues,” Claro dG. Cordero, Jr., director and head of research, said in a statement on Tuesday.

The mid-end segment faces a supply-demand mismatch, mainly driven by elevated condominium prices. Buyers also prefer larger units, while available studio types are often less than 25 square meters (sq.m).

Condominium prices dropped by 9.4% year on year, reversing the 8.3% increase recorded last year and the 10.6% rise in the previous quarter, according to the latest data from the Philippine central bank.

“Until a balance is achieved between buyers’ expectations and developers’ pricing, excess inventory in the mid-end residential condominium sector will persist,” Mr. Cordero said.

The Metro Manila market has a total supply of 450,000 mid- and high-end condominium units, with around 8% remaining unsold.

Before the pandemic, the annual average completion rate for residential condominiums was 35,000 units. Over the past five years, it has declined to 25,000 units.

Outside Metro Manila, unsold inventory is lower at 5%, with about 250,000 completed units.

Dominant locations include Metro Cebu at 54%, followed by the Cavite-Laguna-Batangas corridor (24%), Metro Davao (13%), and Metro Iloilo (3%).

In the Metro Manila office market, vacancy rates are expected to stabilize at around 17–18% in 2025, Cushman & Wakefield said.

“Despite the return of office space from POGO (Philippine offshore gaming operators) companies, absorption rates have improved from pandemic lows but remain influenced by flexible work trends and corporate policies. On the other hand, some companies mandating a return to the office are positively impacting demand growth,” it said.

In central business districts (CBDs), average office rentals have declined by 2.9% annually, while rental rates in non-CBDs fell by 4.2%.

“This trend reflects a continued flight to quality, with CBD office developments benefiting from their superior finishes, amenities, and tenant mix,” Cushman & Wakefield said.

It also noted the rise of office spaces in non-CBDs, with 2.9 million sq.m. added outside Makati and Bonifacio Global City in the past decade. This was driven by flexible work trends and developments outside CBDs.

For retail, the property consultant noted an increase in redevelopments of existing spaces, incorporating additional features to enhance the shopping experience. Mid-end and high-end shopping malls have an average annual supply of about 376,000 sq.m., Cushman & Wakefield reported.

In the hotel segment, Cushman & Wakefield cited uneven regional recovery due to the untapped potential of many tourist destinations. It expects 1,600 additional keys in the mid-end and higher-end hotel and serviced residence segments this year.

However, it may take five years to reach the projected 70,000 keys due to construction delays.

Meanwhile, Cushman & Wakefield highlighted rising demand in the logistics and industrial sub-sector, driven by the growth of the digital economy.

However, it emphasized the need to improve the quality of logistics facilities to meet the demands of new occupiers. Challenges in the sector include achieving sustainability targets, clarifying restrictions related to data privacy laws, and addressing the high costs, availability, and viability of support utilities.

“Across all key Philippine real estate sub-sectors, the increased demand for higher-quality, well-located, and resilient developments is significantly shaping the future real estate landscape,” Mr. Cordero said. “Investors and tenants prioritize properties in prime locations with superior amenities and robust infrastructure.” — Beatriz Marie D. Cruz

After the rumors come the confirmation: The Michelin Guide arrives in the Philippines

GWENDAL Poullennec, international director of The Michelin Guide.
GWENDAL Poullennec, international director of The Michelin Guide.

SINCE late last year, the country’s culinary set has been abuzz with the rumor that the dining bible, The Michelin Guide, will soon include the Philippines in its coverage. The rumors are true: on Feb. 18 (Philippine Time), The Michelin Guide announced it would be coming here.

The Michelin Guide has set its sights on the Philippines, marking an exciting new chapter for the country’s dynamic culinary scene. Today, the prestigious Guide announces its latest expansion into the vibrant culinary landscapes of Manila and Cebu. This new selection will focus on the bustling Metro Manila and the dynamic city of Cebu, while also beginning to explore the environs of Manila, including Pampanga, Tagaytay, and Cavite,” said the food guide in the News and Views section of its website, dated Feb. 17.

“Our Michelin Inspectors have been following the evolution of the Filipino culinary scene with great excitement. The country’s deep-rooted culinary traditions, combined with a strong openness to global influences, create a uniquely diverse dining culture,” said Gwendal Poullennec, international director of The Michelin Guide, in the statement. “In Manila, we see young, talented chefs redefining Filipino cuisine with fresh perspectives; while Cebu, as a leading tourist destination, offers an impressive range of dining experiences with world-class hospitality.”

Joshua Boutwood of Helm, The Test Kitchen, and Savage fame said in a message forwarded to BusinessWorld, “It’s a milestone of great magnitude for the industry.”

The Michelin Guide was created in 1900 by the Michelin tire company in response to a greater demand for cars in that year. The company released a guide for the road ahead with information for particulars like gas stations, but also hotels and restaurants. In 1926, it began to list restaurants with a star awards system:  one star is awarded to restaurants for “high-quality cooking that is worth a stop,” two stars for “excellent cooking that is worth a detour,” and three stars for “exceptional cuisine that is worth a special journey.” While first centered only in Europe (particularly France, Italy, and Britain), the Guide expanded to other regions such as the Americas, the rest of continental Europe, and entered Asia in the 21st century. Countries recently added to the list include Vietnam, Estonia, the United Arab Emirates, and Malaysia.

Alongside the coveted Star ratings, the selection also includes the Bib Gourmand category, a distinction awarded to restaurants that provide good quality food at a moderate price.

According to The Michelin Guide, they rate restaurants according to five criteria “to ensure consistency between each selection,” including: the quality of the ingredients, the mastery of cooking techniques, the harmony of flavors, the personality of the cuisine, and the consistency both over time and through the menu as a whole.

“These evaluations are carried out objectively and independently, ensuring that external factors do not influence the results. This dedication to impartiality and excellence guarantees that only the outstanding dining establishments are recognized,” the guide said. “With their signature discretion and expertise, the anonymous Michelin Guide Inspectors have been meticulously exploring these regions, seeking out the most exceptional dining destinations. This highly anticipated selection will shine a spotlight on the Philippines’ most talented chefs and dedicated teams, celebrating their passion, innovation, and deep respect for local flavors and traditions.”

The Philippine government welcomes the arrival of the Guide to our shores. In a statement, Department of Tourism Secretary Christina Garcia Frasco said, “We extend our warmest welcome to The Michelin Guide, whose international recognition of the Philippines’ rich culinary heritage celebrates the diversity of flavors and exceptional creativity that permeate our nation. We are proud to share our vibrant culture and distinct cuisines to the world, which can be enjoyed through exceptional dining experiences across our dynamic cities and beautiful islands. We invite travelers to visit the Philippines and experience the love, warmth, and creativity of Filipino cuisine, while savoring innovative culinary creations shaped by diverse global influences.

“The arrival of The Michelin Guide is not only a testament to our country’s culinary excellence but also a significant leap forward for Filipino tourism, with gastronomy now forming a key part of our national tourism priorities. In the Philippines, every dish tells a story and every flavor is an invitation to experience our nation’s rich cultural tapestry,” Ms. Frasco added.

FANS AND FEARS
People in the culinary industry shared both their joys, their fears, and more with BusinessWorld over this development.

No slouch when it comes to awards, Martin Narisma, Senior Food Editor for the digital channel Featr and a restaurateur himself (his new ventures include Gacha, Llamado, and Sabong Fried Chicken) said in an Instagram message, “With their arrival, I’m very excited to see how most establishments will up their game. Food quality and taste is one thing, but I’m really looking forward to seeing restaurants work on customer service and satisfaction. I’m also hoping that a few places with great food but affordable prices be considered for a Bib gourmand. That would be a nice surprise.” The digital channel Featr, under Erwan Heussaff’s Fat Kid Inside Studios, has received numerous nominations from the prestigious James Beard Foundation Awards while Mr. Heussaff has had a win.

Chef Luis Chikiamco, executive chef of award-winning Discovery Primea, said, “If not now, when? We have top caliber chefs. Our Filipino gastronomy is interesting and unique. Our offerings can compete with the best of the world and this is a great time for the world to know about our cuisine and culinary practices, disciplines and techniques.”

Hernan Christian de Jesus of Provenciano, Jeepney, Casa Mojica and Fat Cousins, in a message, said, “It’s exciting to know about this announcement; as part of the restaurant industry we are welcoming the Michelin group,  as the most recognizable and credible world-renowned restaurant guide and rating.

“Finally they are here because they see the importance and the strength of Filipino cuisine in the international community. Me as a chef admits that our food is very diversified and has many variations. But, now I think with the modern and innovative take on our cuisine we are now ready and able to meet with the standards and quality of a Michelin requirements.”

Chef Robby Goco of Cyma, Elaia, and Souv by Cyma, was also quite positive. “The Michelin Guide not only helps position the Philippines as a top gastronomy destination on the global stage but also gives us a platform to showcase how we prepare food with our unique traditions, flavors, and creativity. This is an opportunity to promote excellence in the industry and elevate the standard of dining in our country. I believe it will inspire us to continuously improve and innovate, while also honoring our rich culinary heritage.”

Asked about the school’s reaction to the news, chef Philip John Golding, Center for Culinary Arts, Manila’s culinary director, wrote to BusinessWorld: “If Michelin enters the Philippines, it has the potential to elevate Filipino cuisine globally, boost tourism, and refine industry standards. However, to truly benefit the country, it should balance fine dining with authentic, everyday Filipino food, ensuring a holistic and inclusive culinary evolution.”

He noted that “Michelin has been highlighting sustainability with its Green Star initiative.” This in turn “could encourage Filipino restaurants to adopt sustainable sourcing, reduce food waste, and promote ethical farming and fishing practices.”

He also noted that “Filipino chefs and restaurateurs would strive for excellence, leading to a more competitive and refined dining landscape. This could also influence training programs and culinary schools to align with global best practices.”

Some have greeted the news with mixed feelings.

Myke “Tatung” Sarthou, whose cookbooks have won at the World Gourmand Awards multiple times, said in a Facebook message, “Actually, I have mixed feelings about it. Both happy and excited but also a bit intimidated about it coming over. It’s very good for the industry, but personally, I also feel pressured to get back in the kitchen and take my chance for an award. Hahaha, I don’t know. For now, let’s celebrate this win for the Philippines.”

Kalel Chan of the Raintree Restaurants group said, “The ones who would (want to) go for the stars would have to work ten times harder. Night and day. Local farmers and logistics ha(ve) to step up. Food quality will surely be top notch but everything will come with a cost. Cost of dining, labor, ingredients, mental strain to the chef and front of the house service team to keep everything consistent.”

Waya Araos-Wijangco, owner-chef of Gourmet Gypsy by Chef Waya in Baguio and a sustainability advocate said in a message forwarded to BusinessWorld, “Hmmm, I have always felt the Michelin rating system favored old white boys clubs. So I have never really subscribed to it. My priority has always been creating delicious, nutritious, sustainable and approachable food. And to make sure my restaurants contribute to the upliftment of farmers, fisherfolk and artisanal food purveyors.”

The full restaurant selection of The Michelin Guide Manila and Environs & Cebu 2026 will be unveiled at an event to be held in the last quarter of 2025. It will be available exclusively in digital format on all the Guide’s interfaces: website, mobile applications, and social networks. It will join the global Michelin Guide restaurant and hotel selections to be found for free on its digital platforms. — Joseph L. Garcia

MPIC’s Pangilinan sees double-digit profit growth for 2024

MPIC CHAIRMAN, President, and Chief Executive Officer Manuel V. Pangilinan — BW FILE PHOTO

METRO PACIFIC INVESTMENTS Corp. (MPIC) sees double-digit profit growth for 2024, driven by its power business and other subsidiaries.

“The numbers are looking good, driven by all of the subsidiaries. The outstanding example would be Manila Electric Co. (Meralco). Meralco’s numbers would be quite good for 2024,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan told reporters recently.

Mr. Pangilinan said MPIC’s net income for 2024 may have increased by double digits.

2024 marks MPIC’s first full year as a private company after voluntarily delisting from the Philippine Stock Exchange in October 2023.

For 2023, MPIC posted an 89.7% increase in attributable net income to P19.92 billion, up from P10.5 billion in 2022, driven by growth in its power, toll roads, and water businesses.

Operating revenue rose 20.5% to P61.33 billion.

MPIC has a presence in the toll roads sector through Metro Pacific Tollways Corp. and in the water sector via Maynilad Water Services, Inc. and Metro Pacific Water.

The conglomerate also has investments in healthcare, light rail, fuel storage, real estate, waste management, and agribusiness.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Extra olive joy

CHEF Robby Goco strikes gold again with more praise for Greek cuisine —  we’d say “paean” but that’s a little bit on the nose — with his new restaurant, Elaia by Cyma.

Opening just last December, the restaurant’s name comes from the Greek for “olive.” The Greeks value the plant a great deal — in a legend, Athens took its name and patronage in a contest between Poseidon, the God of the Sea, and Athena, the Goddess of Knowledge and War. Poseidon gave the city the horse; Athena, the olive. The Greeks valued the olive more, and to this day, the capital bears the name of the contest’s winner, long after the gods lost their significance.

Guests were taken to the restaurant, which is located in Silang, Cavite, just a little bit off tourist hotspot Tagaytay, on Feb. 6. Tables groaned under the sheer amount of food.

We’ll say the pita and the tzatsiki were quite mild, and the Eggplant melitzo (all of these were presented as dips for the pita bread) was smoky and vivid. There was a dish of roasted shrimp, tomatoes, and feta called Garides Saganaki, with a definite taste and feel of something carefully stewed for a long time. Mr. Goco served a panzanella, a Greek bread salad with crisp bread and a very vibrant and forward tomato flavor. We liked the Kreatopita beef pie, so oddly comforting and familiar.

We entered serious territory with an octopus stew, braised for eight hours in red wine. It was so tender it broke apart with a flick of the tongue on the palate. A pompano was hot off the grill, and was very clean-tasting, but a winner from the main courses was the Pork Belly, cooked almost like it was Filipino. Marinated in coriander root, limes, and paprika that penetrated all the way to the center, it was smoky-sweet and tasted like a seaside meal.

The Roasted Lamb also impressed us, with meat so tender it could be sliced with a spoon (to be fair, not a novelty for a Filipino).

While we complained we had no room for dessert, we still managed to finish a slice of Sokolatopita —  Greek chocolate cake with brown butter buttercream and salted caramel.

Mr. Goco professes that he has lost weight despite this amount of feasting. Describing the difference between his previous Greek-style ventures, the popular chains Cyma and Souv, he describes Cyma as someone from the city, Souv as its eccentric sibling, and Elaia as their traditionalist grandmother.

“This one really promotes longevity,” he told BusinessWorld in an interview. “We really made it a point that everybody here will be having their proteins, with very, very healthy vegetables.” He added, “Everything’s cooked in extra virgin olive oil. No more seed oils.”

Some cooking guides are against the practice, singling out extra virgin olive oil’s low smoke point (which means the oil burns out and breaks down, which opens the possibility of the release of harmful compounds; not to mention the taste). He says, “It doesn’t change the oil. Yeah, sure, you’re going to see it’s smoking, but it stays longer, and it doesn’t go bad. Unlike others, wherein after the high smoke point, wala na (it’s gone), it turns rancid. Olive oil, it maintains its integrity.”

To his point, nothing we tasted was off, and we don’t know how he does it, but some dishes even tasted like they had butter in it (zero; we couldn’t believe it wasn’t butter).

Bustling Tagaytay has attracted more than its fair share of tourists and moving further away from the lake (or the Ridge) has become a solution for restaurateurs to take advantage of the location without the hassle. “It’s very calming,” he said about opening in Silang. “Once you get to the Ridge, it’s stressful.”

The location also provides a locus for supplies, thanks to the great agricultural scene: “This can service our restaurants in Manila. This is going to be the drop-off point for all the vegetables,” he said.

À LA GRECQUE (SALAD AND A WAY OF LIFE)
Mr. Goco first opened Cyma in 2000, after studying Greek cuisine in Greece, and noting the dearth of proper Greek restaurants in the Philippines. It’s still standing, and even thriving. He lines out reasons why the two cuisines meld so well — for example, both are archipelagos (the name for island groups comes from the Greeks). “Both rely heavily on the sea for sustenance. Very similar.”

Frequent visits to Greece must have rubbed off on him, and may have changed him à la grecque (“in the Greek manner,” but also a way of dressing food in olive oil and lemon juice), we said. Not so much: there’s very little to modify between Greek and Filipino behaviors, apparently. “It’s very similar to the Filipino,” he said.

“They’re very expressive with their feelings. They talk loud(ly), right? The weather is almost like the Philippines. They’re very proud of their culture.”

Elaia by Cyma is on Buenavista Ave., Bucal, Silang, Cavite. It is open daily, from 11 a.m. to 8 p.m. on Mondays to Thursdays, and 11 a.m. to 9 p.m. on Friday to Sunday.  For reservations, contact 0917-163-7287. — Joseph L. Garcia

Term deposit yields mixed on BSP easing pause

BW FILE PHOTO

YIELDS on the term deposit facility (TDF) ended mixed on Wednesday after the central bank’s surprise decision to keep interest rates steady last week and as the two-week tenor was undersubscribed.

The Bangko Sentral ng Pilipinas’ (BSP) term deposits fetched bids amounting to P203.552 billion on Wednesday, below the P220 billion on the auction block and the P241.191 billion in tenders for the same offer volume a week ago. The central bank awarded P185.038 billion in papers.

Broken down, tenders for the one-week papers reached P119.864 billion, above the P110 billion auctioned off by the central bank and the P111.375 billion in bids for the P120-billion offering seen the previous week. The BSP made a full P110-billion award of the seven-day deposits.

Accepted bid yields ranged from 5.745% to 5.78%, a tad narrower than the 5.74% to 5.785% band seen a week ago. This caused the average rate of the one-week deposits to inch down by 0.16 basis point (bp) to 5.7592% from 5.7608% a week earlier.

Meanwhile, bids for the 14-day term deposits amounted to P83.688 billion, lower than the P110-billion offering and the P129.816 billion in tenders for the P110 billion in papers placed on the auction block a week ago. The BSP awarded just P75.038-billion worth of two-week papers.

Accepted rates for the tenor were from 5.765% to 5.815%, higher than the 5.74% to 5.81% margin seen a week ago. With this, the average rate for the two-week deposits edged up by 0.62 bp to 5.7867% from 5.7805% logged in the prior auction.

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

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

TDF yields were mixed following the BSP’s surprise decision to leave benchmark interest rates unchanged at its meeting last week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Monetary Board last week unexpectedly held its key interest rates steady in a “prudent” move as global uncertainties cloud the outlook for growth and inflation.

At its first meeting for 2025, the BSP’s policy-setting body left the target reverse repurchase rate unchanged at 5.75%. Rates on the overnight deposit and lending facilities were also kept at 5.25% and 6.25%, respectively.

This was the central bank’s first pause following three consecutive 25-bp cuts since it began its easing cycle in August 2024.

Hints of more reserve requirement ratio (RRR) cuts also affected TDF yield movements, Mr. Ricafort added.

“This could infuse an additional peso liquidity of about P330 billion into the local banking system that could be used by banks to increase loans, investments in bonds, among other assets,” he said.

Mr. Remolona last week said that RRR cuts are still in the pipeline for this year, with the central bank looking to lower big banks’ reserve requirements to 5% from the current 7%.

He said this could be delivered sometime before the Monetary Board’s next policy review on April 3. — Luisa Maria Jacinta C. Jocson

New ways = better outcomes, fingers crossed

IRRI.ORG

(First of two parts)

There is a risk, as one keeps track of the country’s macroeconomic health, of being jaded about agriculture’s consistently dismal performance, a result of decades of policy missteps.

The farm sector’s trajectory has always been sub-par compared to services and industry, even if manufacturing — which makes up about three-fifths of the “industry” sector tracked by the Philippine Statistics Authority — struggles with repercussions of its own past policy blunders. Agriculture, forestry and fisheries (AFF) as a sector contributes an incrementally smaller percentage to national output (as measured by gross domestic product, or GDP) at less than 10% currently — the smallest among the three growth drivers, even as its contribution to overall employment has steadied at around a fourth of the total. “Given the sector’s slow growth and modest share to GDP, and its relatively high contribution to total employment, AFF’s development significantly lagged behind the other sectors as measured by labor productivity (measured by the ratio of the sector’s share to output vis-a-vis employment),” read a paper which Dr. Fermin D. Adriano, formerly Agriculture undersecretary for policy, planning, and research and now columnist for The Manila Times, presented to the Australian National University in October last year.

Hence, agriculture has always been that missing ingredient for faster overall economic expansion — of at least about 8%, according to one of BusinessWorld’s columnists, Dr. Bernardo M. Villegas, compared to the around 6% actually clocked in recent years — that is needed to generate more jobs and economic opportunities that can make a dent on the grinding poverty that has always marred our growth picture. Mr. Villegas has often written on agriculture-related issues for this publication, like the link between farm development and manufacturing (https://tinyurl.com/22u79vpk), the need to upskill agribusiness executives (a three-part series starting with https://tinyurl.com/2bces9ku) and a comprehensive agribusiness situationer (starting with https://tinyurl.com/ynvauzqn), among others.

Which is why farmers always come to mind whenever I hear of technologies’ potential to simplify processes, enhance efficiencies and, thus, increase productivity… and, ultimately, to change lives. Farming communities are also a logical key target for any anti-poverty drive, since much of Philippine poverty is concentrated in rural areas.

One does not need to travel far to realize just how much our farmers have been left behind: just take a trip outside Metro Manila and see if one can spot tractors at work on any farmland. Small farmers, who make up the majority of our agriculture sector, still rely on manual labor and draft animals to get the work done.

And so, any news on new technologies that can help these folks produce more by working more efficiently and, therefore, earn more while hopefully helping to reduce prices of produce, always catches my attention.

Agriculture technology, according to one primer of the US Agriculture department’s National Institute of Food and Agriculture, enables farmers to use just the right amounts of water, fertilizer, and pesticides on specific areas and even individual plants, instead of applying them uniformly across entire fields. This, in turn, increases crop productivity; reduces water, fertilizer, and pesticide use, which in turn keeps a lid on food prices; minimizes impact on natural ecosystems, including chemical runoff into rivers and groundwater; and enhances worker safety.

SEND IN THE DRONES
Take the current initiative to use drones on rice and tobacco fields, for example.

The National Tobacco Administration (NTA) announced in December last year that it had deployed drones at its eight provincial branch offices as well as its Farm Technology and Services Department. The NTA used drones to validate the state of 22,073.09 hectares (ha) in Luzon planted by 36,102 farmers with Virginia, Burley, and Native tobacco types. The office has also begun deploying drones in select areas in Mindanao.

“With the high-resolution aerial imaging and geospatial analysis captured by drones, the area of the tobacco plantations will accurately measure and become the basis for the computation of the volume of production,” the statement quoted NTA Administrator Belinda S. Sanchez as saying.

Meanwhile, Bayer Crop Science demonstrated drone seeding in a rice field in Barangay Sapot in Paniqui, Tarlac in November 2021. The cost of drone seeding was placed at P3,000 per hectare, compared to the labor cost of transplanting rice that ranged from P11,000-P13,000/ha, the company said in a press statement back then. It took just 30 minutes to seed one hectare via drone, compared to half to a whole day if this were done manually. Moreover, this method proved more efficient, with seeding rate averaging 20-25 kilograms of hybrid rice seeds/ha via drone, compared to 40-45 kgs via manual seeding.

Then there is the Drone4Rice project of the International Rice Research Institute (IRRI), done in collaboration with various offices of/attached to the Agriculture department (DA) like the Philippine Rice Research Institute and the Fertilizer and Pesticide Authority (FPA), etc. The project is running for 30 months from April 2024 to September 2026. It will focus on selected organized farms in Cagayan Valley, Calabarzon, and Bicol. Protocols are being drawn up for processes like the accreditation of commercial drone operators that will offer their services. The project aims to cover a total of 150,000 ha per crop season (there are 4.82 million ha planted with palay nationwide). Qualified beneficiaries belonging to irrigators’ associations, small water irrigation system associations, agrarian reform beneficiaries’ organizations, as well as farmers’ cooperatives and associations can tap subsidies amounting to P2,000/ha via vouchers. The National Rice Program has allotted some P300 million for the commercial use of drones for this purpose.

In a press conference in November last year on this project, FPA Officer-in-Charge Glenn DC. Estrada — at that time director for Digitalization and Value Chain Development of the DA’s Masagana Rice Industry Development Program — said that the use of drones is expected to cut farmers’ time, effort, and cost to sow seeds, apply fertilizer, and spray pesticides. “Based on studies, optimal resource allocation leads to better productivity,” he explained.

IRRI said in a statement in April last year that one of the reasons for the huge difference in rice production cost between the Philippines and major rice exporting countries is labor cost, which makes up about a third of the total rice production cost. Noting that mechanization and a shift toward precision agriculture can significantly cut rice production cost, IRRI Senior Scientist Stephen Klassen explained: “Precision agriculture, including the use of drone technology, can optimize input usage like seeds, fertilizers, and pesticides, leading to higher yields and cost efficiency.”

READINESS IN QUESTION
While we eagerly await the results of these initial moves, I should think that the government’s agriculture policy makers and planners have already been exchanging notes with counterparts among the conglomerates that have invested in this field — San Miguel Corp., First Pacific, the Aboitiz Group, and DMCI Holdings, Inc., among others — because I have heard that some of them have their own stories to tell about challenges faced in getting farmers they have contracted to embrace new technologies. That’s a whole cache of valuable empirical knowledge just waiting to be tapped right there.

While the nature of hurdles may be varied, one could be the simple fact that our farmers are among the oldest in Southeast Asia, with an average age of 57 years (although updates to the Agriculture department’s data show this could be declining slightly to about 49-50). This means they may have more difficulty or less willingness (or both) to adopt new technologies, which entail new ways of working.

One paper that was published in the International Journal of Social and Management Studies in 2022 noted works of various scholars saying that farmers’ way of life and traditional practices “exerted a disruptive influence on the modernization process” and that these same factors “have been found to significantly influence [technology] adoption decisions,” even as others noted that “educated farmers tend to be more productive since they are receptive to new technology,” and that “Philippine farmers seem to recognize the many advantages of using farm machines over manual, even if these are costly and will certainly displace laborers,” and that subsistence farmers (who make up bulk of Philippine farmers) who tend to retain labor-intensive practices are “risk-averse due to several constraints such as fears of economic risk, high collateral requirements and social fears… even if, hypothetically, the given costs and benefits are in their favor.”

Other scholars cited in that same paper noted that Filipino farmers, generally do not oppose innovation and actually understand the importance of new technologies in farming. What holds them back is the potential financial risk, especially since farmers are some of the poorest in the country and, hence, have limited options in case new technologies fail them.

(To be concluded on March 6.)

 

Wilfredo G. Reyes was editor-in-chief of BusinessWorld from 2020 through 2023.

Monde Nissin expects 2024 profit rebound

BW FILE PHOTO

FOOD AND BEVERAGE manufacturer Monde Nissin Corp. said it expects to report a return to profitability for full-year 2024.

“Despite these challenges, both the impairment and the mark-to-market loss, we expect our consolidated reported net income after tax to return to positive territory for the full year (2024),” Monde Nissin said in a statement to the stock exchange on Wednesday.

Monde Nissin said it anticipates record-high revenue for 2024, with a strong fourth quarter led by its Asia-Pacific Branded Food and Beverage (APAC-BFB) business.

The company has yet to disclose its full-year 2024 financial results.

“I am pleased to announce that our preliminary fourth-quarter results reflect sustained momentum from the third quarter, driven by our APAC-BFB business. This has resulted in record-high revenues for both the quarter and the year,” Monde Nissin Chief Executive Officer Henry Soesanto said.

In 2023, the manufacturer posted a P625-million net loss due to a non-cash, non-operating impairment of assets in its meat alternative business amounting to P10.1 billion, partly offset by a P1.3-billion guaranty asset gain. Consolidated revenue rose by 8.4% to P80.17 billion.

Monde Nissin said it expects profitability for 2024 despite a “substantial” impairment charge and an anticipated “material mark-to-market loss on the fair value of its guaranty asset.”

“Our ongoing annual impairment test for the meat alternative business indicates a significant impairment charge this year, estimated between GBP 80 million and GBP 100 million. Although substantial, this figure is notably lower than last year’s impairment,” it said.

Monde Nissin anticipates consolidated sales growth to exceed 3% annually on a comparable basis, driven by strong gross margin growth in the APAC-BFB segment.

Consolidated core net income is projected to increase by over 25%, with consolidated core net margin expected to expand by more than 200 basis points (bps) compared to the same period last year.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the meat alternative business are expected to be neutral.

For the fourth quarter, Monde Nissin said it expects to achieve positive EBITDA despite ongoing topline weakness.

It added that the APAC-BFB business saw an 8% revenue growth during the period, driven by volume growth across all categories, with contributions from both domestic and international markets.

However, Monde Nissin said its meat alternative business is expected to post a mid-teens sales decline year-on-year on a constant-currency and comparable basis due to fewer selling weeks compared to last year, as the business continues to operate in a challenging environment.

Monde Nissin will hold its full-year 2024 earnings call next month.

On Wednesday, Monde Nissin shares fell by 0.36% or three centavos to P8.42 apiece. — Revin Mikhael D. Ochave

BankCom raises P18B via bonds

BANKCOM.COM.PH

BANK of Commerce (BankCom) raised P18 billion from its offering of dual-tranche peso-denominated bonds.

The issuance was the bank’s largest to date as the total amount raised was 3.6 times the minimum offer size of P5 billion, BankCom said in a disclosure to the stock exchange on Wednesday.

“We appreciate the strong support of investors and are elated that one of our shortest peso bond offerings has also become the largest in BankCom’s history. Their overwhelming response reflects their confidence in the bank’s strong fundamentals, and their preference for a clear and solid business strategy continues,” BankCom President Michelangelo R. Aguilar said.

“Proceeds from the issuance will be used for management of the bank’s balance sheet, diversification of funding sources, and general corporate purposes,” BankCom said.

The San Miguel Corp.-led bank listed the bonds on the Philippine Dealing & Exchange Corp. on Wednesday.

The papers comprise the third tranche of the bank’s P50-billion peso bond program.

The offer period for the issue ran from Jan. 28-30.

Broken down, P10.00685 billion was raised from the two-year Series C bonds and P7.99315 billion came from the 5.25-year Series D bonds.

The two-year Series C notes carry an interest rate of 6.1942% per annum, while the 5.25-year Series D papers were priced at 6.3494%, both with quarterly interest payouts.

The bonds were sold at minimum investment amounts of P100,000 and increments of P50,000 thereafter.

ING Bank N.V. Manila Branch, Philippine Commercial Capital, Inc., Security Bank Capital Investment Corp., and Standard Chartered Bank were the joint lead arrangers and joint bookrunners for the issuance. They also acted as selling agents along with BankCom.

BankCom last tapped the domestic debt market in 2024, raising P6.57 billion from one-and-a-half-year bonds issued in May 2024. The papers were priced at 6.5635% per annum, payable quarterly.

The bank’s net income jumped by 87.16% to P792.382 million in the third quarter of 2024 amid higher revenues.

This brought its nine-month profit to P2.21 billion, up by 9.98% year on year.

BankCom’s shares went up by six centavos or 0.86% to close at P7.05 apiece on Wednesday. — A.M.C. Sy

Here’s what $500 gets you for sushi in New York City versus Tokyo

FREEPIK

By Kazunori Takada, Akemi Terukina and Kat Odell

JUST FIVE years ago, a US tourist visiting Japan would have paid a small fortune — close to $500 — for a ¥50,000 omakase meal at a high-end sushi counter in Tokyo. Today, the same meal will cost the visitor just a little over $300.

The notable price drop comes because of the weak yen, which has fallen around 30% against the dollar over the past five years and hit 38-year lows in July. With the lopsided exchange rate, even Tokyo’s most famous sushi restaurants now feel affordable.

At the same time, customers at top-of-the-line sushi counters in New York know it’s routine to spend $500 before they’ve even walked in the door, let alone left a tip.

The relative bargain of ordering sushi in Tokyo has not been lost on international food fans. Sushi restaurants in Tokyo have seen an influx of tourists, turning some of the oldest sushi restaurants into a melting pot. The number of visitors to Japan continues to reach record highs; in October 2024, 3.3 million people arrived in the country, according to the Japan National Tourism Organization. In fact, the stream of travelers spurred some restaurants in tourist-friendly destinations to implement a two-tier pricing system. At Tamatebako, the all-you-can-eat seafood spot in Shibuya, it’s ¥9,328 yen for female residents and ¥10,428 for female tourists. Men pay ¥500 more for their respective categories.

Another plus for sushi-seeking tourists in Tokyo is the plethora of affordable options. In Ginza, a three-minute walk from one of the city’s most renowned (and pricey) sushi restaurants, Sukiyabashi Jiro, there’s an outpost of the solid franchise Kura Sushi, which serves two pieces of sushi for ¥155, or $1 — the preferred price for most Japanese diners.

In New York, the cost of a sushi dinner continues to rise, in part because of pricey real estate, labor (the city’s minimum wage just went up to $16.50), and the increasing cost of shipping pristine seafood from the other side of the world. The price of eating out nationally was 3.6% higher in November 2024 than the previous year, according to the USDA. The tab for eating out at local sushi restaurants has risen more sharply in some spots. At Sushi Noz, the vaunted Upper East Side dining room, a meal is now $550 without tax, tip, or drinks; it’s a 10% increase from a year ago, when it was $500.

Over the past year, Icca in Tribeca has raised its omakase price from $400 to $495. (Gratuity is now included; the actual increase is around $15.) Chef Kazushige Suzuki attributes the rising costs to the global proliferation of high-end sushi counters, which has led to a decline in the availability of certain seafood such as bluefin tuna, which in turn spikes prices.

But there’s a silver lining for New Yorkers: The number of good midrange counters is climbing, too. That’s thanks to local operators including Linda Wang of the Ume Hospitality Group, whose 10 sushi counters typically offer 60-minute meals for around $75. Her model is built around buying seafood in bulk and turning over seats briskly.

Still, it’s hard to ignore the value you can find in Tokyo. For a head-to-head comparison, read on and see what $500 gets you for notably good sushi in both cities.

TOKYO
Sukiyabashi Jiro

$500 gets you: Dinner for one-and-a-half customers

If you didn’t know the name, you wouldn’t guess that Sukiyabashi Jiro is Tokyo’s most famous sushi restaurant. Located on the underground level of a 64-year-old commercial building in the central Ginza district, its shop front is very simple. But Jiro has served countless celebrities, notably former Prime Minister Shinzo Abe, who took Barack Obama there during the former US president’s 2014 visit.

The place adheres to the traditional Edomae style, when sushi was served as street stall fast food, so the menu is simple: just raw fish. Otsumami, or drink-friendly snacks, aren’t served. But it’s so popular that if you call to make a reservation, the automated message will tell you it’s fully booked. If you get seats, the 20-piece sushi dinner starts at ¥58,000.

Ginza Kyubey

$500 gets you: Dinner for two, almost

Opened in 1935, the restaurant has been favored by local power brokers including Shigeru Yoshida, the country’s prime minister following World War II. The ¥40,000 menu includes two appetizers, sashimi, yakimono (grilled fish), nimono (a stewed dish), and 11 pieces of sushi. A multilingual chef, possibly even owner Yosuke Imada, details the selections.

Ginza Kyubey has another claim to fame: The restaurant invented a major form of sushi known as “gunkan” (seafood and rice enclosed in a round nori band), after a customer from Hokkaido asked for his sea urchin to be made into sushi.

Shutoku

$500 gets you: Dinner for at least five

Shutoku roots go back to one of Tokyo’s oldest sushi restaurants, dating back some 400 years. It’s located up a flight of stairs in Tsukiji, which for centuries was home to the city’s main fish market and handled some of the most expensive fish shipped from across the country. (In 2018, the market relocated a few miles south to Toyosu.) A meal will cycle through a series of classics such as hirame (flounder), aji (horse mackerel), and ika (squid) dusted with a few sesame seeds; less common options like gizzard shad might show up, too. The chefs add a generous amount of red vinegar to the rice, a tradition that dates to the Edo period (from 1603 to the 1860s) and turns the rice a funky colored light brown. Omakase meals range from ¥7,000 to ¥15,000.

Kura Sushi Global Flagship Store, Ginza

$500 gets you: A meal for 30 or more

For something casual — and a place to entertain small children — Kura Sushi, a block away from Sukiyabashi Jiro in Ginza, is a super option. Unlike most sushi restaurants, check-in is at a machine at the entrance which allocates a table number. Once seated, pick plates of sushi circulating on a conveyor belt, such as toro or tamago (egg), or order via a tablet or your own smartphone, which gets delivered directly to your table via a separate fast-speed belt. After eating, diners can try their luck at roulette with toys as the prize. A two-piece plate of sushi starts at ¥150.

NEW YORK
Masa

$500 gets you: Half a Hinoki counter experience

Haute sushi pioneer Masa Takayama put luxe omakase dining on the map 20 years ago when his three-Michelin-star counter opened in what’s now known as the Deutsche Bank Center at Columbus Circle. The restaurant has continued to offer the city’s highest-priced sushi. Takayama has only one seasonal menu, with bites such as stone crab with uni aioli and his signature toro tartare crowned with osetra caviar. Those who sit at the roughly nine-seat Hinoki counter will spend $950 (excluding tax and tip); in the dining room, the same meal costs $200 less.

Sushi Noz

$500 gets you: Dinner for one, almost

The six-year-old, two-Michelin-star effort from chef Nozomu Abe and owner Joshua Foulquir is a shoebox-size space that holds two counters with a total of 14 seats. The menu runs $550 (including tip but not tax), punctuated by rare seafood that’s hard to find elsewhere in the city. The 20-course meal typically begins with five seasonal appetizers, followed by nigiri such as live scallop and baby sea bream, and concludes with a daily-changing miso soup, tamago, and two desserts.

Icca

$500 gets you: Dinner for one

Kazushige Suzuki, a veteran of the New York’s now-shuttered Sushi Ginza Onodera, now helms the three-year-old Icca’s subtly Italian-accented eight-seat Edomae-rooted counter. His 21-course omakase leans heavily into appetizers with dishes like Hokkaido hairy crab and uni pasta before moving into nigiri bites, plus tamago, miso soup, and Japanese crown melon mousse for dessert for $495 (including tip). The restaurant is also known for its exceptional sake program rife with rare bottles; pairings are $220 or $280.

Shota Omakase

$500 gets you: Dinner for two

Brooklyn isn’t known as a sushi destination, which is why Cheng Lin opened his spacious 18-seat counter on a residential stretch of South 3rd Street in Williamsburg in August 2023. In fact, Shota is one of the best sushi deals in town; Lin sources premium Japanese ingredients, from sawara (Spanish mackerel) to slippery mozuku seaweed, for his $195 omakase that blends Edomae simplicity with a little innovation. If you have a bigger budget, throw in an order of rare seasonal uni from Hokkaido and black truffles to top a yuzu-miso cod hand roll and other orders.

Omakase Room by Shin

$500 gets you: Dinner for two plus two glasses of sake

As one of the city’s newest sushi entrants, sleek Omakase Room by Shin (sibling to the West Village’s Omakase Room by Mitsu) falls in the modestly priced — by NYC standards — omakase camp. The $195 (exclusive of tax and tip) omakase spans 14 courses solely dedicated to nigiri built from peak seasonal seafood helmed by Blue Ribbon Sushi vet Shin Yamaoka. Expect fish like buttery ora king salmon and a three-bite tuna series — served on rice imbued with red vinegar laced with sake lees. The meal signs out with an uni hand roll, geoduck clam miso soup, and the chef’s signature spongy tamago. Drinks options at the 14-seat counter include smooth, elegant Hoyo Manamusume junmai sakes.

Hōseki

$500 gets you: Lunch for four

Hōseki, the boîte tucked behind a velvet curtain on the lower floor of tony Midtown department store Saks Fifth Avenue, delivers a 12-course menu for $95 in 60 minutes. Morgan Adamson runs the six-seat counter’s minimalist and Edomae-inspired show, which relies on a mix of domestic and Japanese seafood. Her meals begin with a seasonal soup such as kabocha squash and carrot, then move to an appetizer like sesame-dressed Hokkaido scallop with finger limes, nine nigiri bites with Hokkaido uni and local skate, and, finally, a bluefin hand roll with shiso. Adamson works with two distinctly seasoned rices: lighter fish paired with rice imbued with a bright vinegar; fattier fish are served with rice accented with a more complex vinegar.

Thirteen Water

$500 gets you: Dinner for four and a bottle of sake

Thirteen Water proprietor Linda Wang has garnered a following for her string of shockingly affordable omakase spots that scoot diners in and out within an hour. One is Thirteen Water in the East Village, and another is a new Hudson Yards outpost. The $75 omakase is served in a charcoal-hued space anchored by a 16-seat, U-shaped counter. Chef Aaron Liu preps a nontraditional, weekly-changing 13-course menu with global seafood via a quick succession of 12 nigiri — including chutoro (medium-fatty tuna) crowned with chopped chutoro, pickled wasabi, and wasabi soy sauce — and concluding with a maki roll. Because the high-umami meal is so affordable, you can still get a 720-milliliter bottle of Born Gold junmai sake for $78. Bloomberg