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Blueleaf in talks with Chinese firms for floating solar projects

PROPOSED DESIGN for NKS Solar One, a 250-MW floating solar project situated in Caliraya and Lumot lakes in Laguna. — PHILSTAR FILE PHOTO

RENEWABLE ENERGY company Blueleaf Energy Philippines is eyeing to tap two Chinese firms for the construction of its 250-megawatt (MW) floating solar project in Lake Caliraya and Lake Lumot in Laguna.

The company is in talks with Xian Electric Engineering Co. Ltd. and China Energy Engineering Corp. for its engineering, procurement, and construction contract, Blueleaf Energy Senior Manager Pradeep Gopalakrishnan told reporters late Tuesday.

“We are in talks with others, but we are almost finalizing these two here,” he said.

Blueleaf is aiming to build a 250-MW floating solar project in Caliraya and Lumot Lakes in Laguna with NKS Energy Utilities, Inc.

The construction of the floating solar project consists of two phases.

Phase 1 involves the 162-MW Caliraya floating solar project, while Phase 2 focuses on the 88-MW Lumot floating solar project.

Xian Electric will be in charge of the substation and transmission, while Energy China will work on the panels for the floating solar project.

The NKS Solar One project is targeted for construction by the first quarter of 2025 and is scheduled to come online by the second quarter of 2026.

Blueleaf Energy is also developing a 1,300-MW floating solar facility in Laguna Lake with solar energy company SunAsia Energy, Inc.

The BlueSolar project is scheduled for construction and operations by 2025 and 2026, respectively. It will span the towns of Cabuyao, Sta. Rosa, Calamba, Victoria, and Bay.

The company is estimating a project cost of P15 billion for NKS Solar One and P66 billion for BlueSolar.

Blueleaf Energy is a portfolio company of Australia-based Macquarie Capital “operating on a stand-alone basis.” It specializes in onshore renewable energy business that develops and operates utility-scale solar projects. — Sheldeen Joy Talavera

GenAI will help streamline firms’ tax, finance functions

FREEPIK

MAJORITY of chief financial officers (CFOs) and tax leaders in Southeast Asia (SEA) are only in the early stages of adopting generative artificial intelligence (GenAI) to streamline their workflows, according to a survey by professional services firm SGV & Co.

The latest EY Tax and Finance Obligations survey showed that 92% of Southeast Asian CFOs and tax leaders said their organizations are only beginning to adopt GenAI, higher than the global average of 75%, SGV said.

This, even as 82% of the respondents in the region said they believe GenAI will drive “increased efficiency and effectiveness” in tax and finance functions, up from 14% in 2023.

The 2024 survey covered 1,600 CFOs and tax professionals across 32 jurisdictions and 18 industries, including 66 in Southeast Asia, with respondents coming from Indonesia, Malaysia and Singapore.

The report said that “tax and finance functions will need to transform to contend with growing cost pressures, a talent deficit and compliance with new tax regulations.”

“Technology, including GenAI, is revolutionizing the tax and finance function by helping to manage complex reporting tasks and large amounts of data. It helps to empower tax professionals to adopt a transformative mindset, allowing them to be more efficient, focus on more strategic tasks, and make better and quicker decisions. This will help them unlock value for their organizations,” EY Asean Tax and Finance Operate Leader Elaine Yeo said in a statement.

“For tax and finance professionals in SEA, they need to consider future-proofing the tax function by developing a plan to deploy GenAI responsibly and with confidence. This plan should consider allocating financial resources efficiently to the tax function. Effective change management strategies should be implemented to guide the embedding of technology into tax processes. By doing so, organizations in SEA can strive to stay ahead of the curve, and be well-positioned to navigate in the modern and complex world of digital tax administration,” Ms. Yeo said.

The survey showed that cost was the top concern for respondents as cost-cutting and inflation are eroding tax and finance functions’ budgets. Some 40% of respondents in Southeast Asia said effectively managing budgets is their top priority and 80% are looking to cut costs.

“The survey further highlights that tax functions face an increasing urgency to manage more complex and data-heavy tax responsibilities. This includes real-time digital tax filings and e-invoicing that is soon to be required in nearly 100 countries,” SGV said. “These obligations also include complying with the adoption of recommendations by the OECD (Organisation for Economic Co-operation and Development), such as Pillar Two of the base erosion and profit shifting project (BEPS 2.0), which urges countries to set global minimum tax of at least 15% for large corporations.”

The sector is also dealing with talent shortage, as 77% of tax and finance leaders in Southeast Asia said they are feeling the impact of fewer accountants entering the profession while their seniors retire.

“More than half (SEA 55%, global 53%) say they are struggling to retain and attract qualified people. The survey further reports that 64% of SEA respondents (global 62%) believe that employees without a university degree are an increasingly important source of talent.”

Still, 56% of respondents in Southeast Asia said they believe that GenAI will not lead to a reduction in the tax function workforce, as firms will instead reallocate employees’ time to “more strategic, high-value activities and away from routine compliance tasks,” SGV said.

“The talent gap has reached crisis proportions. Employees are being called on to do more with less, but businesses also want tax professionals to spend twice as much time on strategic tasks than they do on routine work. To facilitate this, many businesses are looking to co-sourcing as a solution, particularly with budget constraints and the need to invest in technology and GenAI,” Ms. Yeo said.

“Generative AI is poised to significantly impact the tax and finance functions in the Philippines, helping to streamline processes and enhance compliance with evolving tax regulations. As businesses in the Philippines navigate the complexities of digital tax administration, BEPS, and global minimum tax requirements, the adoption of GenAI will be crucial in addressing talent shortages and improving operational efficiency,” SGV Tax Partner Frances Rose J. Villamayor said. — B.M.D. Cruz

Unilever plans to boost local manufacturing, supply chain

REUTERS

UNILEVER PLC is eyeing to expand its local manufacturing and supply chain capabilities in the Philippines, the consumer goods company said on Wednesday.

“Unilever is further developing its local manufacturing capabilities and supply chain strategies to meet the needs of its significant Filipino market,” the company said in a statement.

The company said that more than 90% of the products being sold in the market to date are locally manufactured through its factories in Pasig City, Cavite, and Laguna.

Unilever’s brands include Rexona, Sunsilk, Selecta, Breeze, and Knorr, among others.

“Supply chain is the operational backbone of Unilever. We live in a world where consumers increasingly want faster, customized, and personalized products,” Unilever Philippines Chairman and Chief Executive Officer Fredy S. Ong said.

“We must always have a reliable stock of high-quality products and a supply chain that will deliver superior products and services at an excellent value,” he added.

It added that products made in the Philippines are also being shipped to overseas markets like the United States, Africa, Australia, the Middle East, and other Southeast Asian countries.

Unilever said that production capacity for its products has increased by 60% after the operationalization of its Beauty & Wellbeing and Personal Care factory in late 2023.

“Unilever has been in the Philippines for almost a century, and we’re optimistic about the next hundred years,” Mr. Ong said.

“By empowering our operations, harnessing advanced technologies, and investing in our people, we position ourselves at the forefront of innovation. This ensures that consumers, both locally and globally, have seamless access to the high-quality products and services they rely on,” he added. — Adrian H. Halili

22 Prime names new head chef

22 PRIME’S USDA Ribeye steak — EDG ADRIAN A. EVA

HAILED as Metro Manila’s top steakhouse by popular travel site TripAdvisor and renowned for its mastery of US Prime Angus Steaks, 22 Prime ushers in a new chapter with the appointment of Albee Jay T. Dedal as its new executive chef. With over 18 years of culinary experience both locally and internationally, Mr. Dedal aims to bring innovation and passion to Discovery Suites Manila’s flagship restaurant.

Mr. Dedal’s decorated career perfectly complements 22 Prime’s multi-awarded reputation. His accolades include gold medals from culinary competitions across Asia, such as the FHAM — Food and Hospitality Asia Maldives (Hot Cooking Seafood category) and the Hotel Asia Exhibition & International Culinary Challenge (Team Challenge category), both awarded in 2014.

“It’s all about passion, it’s about what you like, it’s about what you love. Achievement will come if your passion is there,” Mr. Dedal said in an interview during an introductory dinner, emphasizing that his accomplishments are like a garnish to a fulfilling career, with his true achievements reflected in the inspiration he provides to future cooks.

Mr. Dedal told BusinessWorld that his vision for 22 Prime promises an elevated and diverse menu while staying true to the classic 22 Prime high-quality steak experience.

“The concept of the menu is focused more on prime cuts, but there are also a variety of options. We are concentrating on meat, of course, but the variety is much wider. We offer Australian and American prime cuts, and we will also be introducing Japanese Wagyu. We categorize these into three main categories,” Mr. Dedal said.

The new 22 Prime menu, set to debut on March 1, will also feature a selection of premier global seafood options, including lobster, seabass, and Alaskan King crab.

A DINING EXPERIENCE WITH THE ORTIGAS SKYLINE
On Dec. 11, guests and members of the press enjoyed 22 Prime’s exclusive steak dining experience on the 22nd floor of Discovery Suites. The Ortigas skyline provided a stunning visual backdrop to the delectable feast, expertly arranged by Mr. Dedal.

The dinner started with a refreshing mixed green salad, drizzled with a light honey mustard dressing. For those who enjoy a touch of sweetness in their greens, this option offers just the right balance, with a subtle hint of mustard.

This was followed by a velvety cream of capsicum soup, where the natural flavors of the capsicum subtly lingering beneath the soup’s creamy richness.

At the heart of the dining experience was the USDA Ribeye steak, perfectly cooked to medium-rare. Its tenderness allowed the knife to glide effortlessly, delivering rich, flavors enhanced by a touch of sea salt and freshly ground pepper — a classic pairing that beautifully highlighted the steak’s natural flavor.

As a perfect complement to the main dish, the steak is served with a choice of two side dishes: a rich and creamy Truffle Mac and Cheese and sautéed broccoli.

The feast concluded with a rich chocolate cake topped with smooth chocolate ice cream and a delicate meringue crisp. Its deep, velvety flavors and elegant presentation evoke the warmth and elegance of Mocha Mousse, Pantone’s color of the year for 2025 — a perfect balance of taste and visual appeal.

As the evening came to a close, Mr. Dedal shared his heartfelt gratitude, expressing his joy on seeing guests savor his creations and the stories and laughter shared over each plate. Despite running on just four to five hours of sleep each night, he and his team remain committed to refining their craft daily — further solidifying 22 Prime as one of the top dining destinations in town. — Edg Adrian A. Eva

Bottomline of bottomlines

FREEPIK

In all likelihood, few of us will be able to recall the first time we set eyes on a belen (a tableau of the Nativity) as kids. I do remember the cutout belen my parents always put up every December at the center of our home, the more elaborate dioramas we would design and assemble as students in university residences, not to mention the animated display that would draw crowds to what was then COD department store at the (then) Araneta Center in Cubao, Quezon City.

It is a scene that has never failed to uplift spirits in a period seasonally marked by snarled traffic, yearend deadlines at the office, and frenetic activity like making a gift list and checking it twice to make sure that no one important is missed.

More than that, this period is also an excellent time to remember that Christianity is not just a set of beliefs and rules to be observed only on Sundays, but is a way of life that ought to guide the way one spends time with spouse and kids; fulfills personal and professional obligations; handles business transactions; deals with superiors, subordinates, and friends; plays sports, etc. Yup, it comes in handy for everything of consequence that one does.

Where was it that I read: that the conflicts and tensions that now wrack almost every corner of the globe could have been prevented/resolved if only those in power were to observe the Decalogue and the Beatitudes? That’s one tall order — one can imagine eyes rolling in sarcasm and skepticism at this point — but then, who can argue against those principles?

Thus, it was instructive in December 2020 to relive a bit of the first Christmas — in uncertainty, isolation, discomfort and without the usual fanfare — as the COVID virus rampaged worldwide.

And so, without forgetting the primary, fundamental message without which the season loses its sense — that God became man in order to satisfy divine mercy and justice (which are not contradictory) and so open the gates of heaven to all – let’s look at what we heads of families and professionals can take away from the nativity scene.

Let me cite just a few.

The first is the central role family plays in life, for in the final analysis, even when one loses his/her job or business, one will always have family as the fortress to which he/she can retreat in order to fight another day.

Hence, it is but logical to do what one can to strengthen that core of any society: not only by avoiding giving in to anger, irritation, or frustration after one comes home at the end of a hectic day, but by being on the lookout for the slightest opportunity to serve individuals in the family (in much the same way that one would think little of going the extra mile to attend to anything of great value).

The family is also the primary (though not the only) venue where one serves society. As the “saint of the gutters” — St. Teresa of Calcutta — said: “If you want to change the world, go home and love your family.”

It has never ceased to amaze me that the two greatest saints of the Catholic Church did not belong to royalty nor to any social, professional, or intellectual elite, but were an impoverished, simple couple who spent the first Christmas as refugees fleeing from a threat to their life (a story played out in the tens of millions in almost every continent to this day).

Secondly, each member of the family in that manger offers practical tips for dealing with the opportunities and challenges that an ordinary day brings us:

• From the Child (who was “a sign of contradiction” — from the crib as a refugee from persecution, to his 30s, and right to the end when even His closest friends deserted Him), we learn that doing the right thing is never about winning a popularity contest, that going with the crowd does not necessarily mean we are in the right (hence, there ought to be a stable source of one’s convictions), as well as dogged, single-minded determination to achieve any good objective (“He resolutely determined to journey to Jerusalem” where He was to die for all).

• From His mother, we learn to always be alert for opportunities to serve others wherever we find ourselves (she noticed that the wine had run out even before the newlyweds and the steward of the feast at Cana were alerted to a brewing catastrophe), to serve discreetly and without fanfare, to be habitually introspective (she “kept all these things, reflecting on them in her heart”), and to be courageous against all odds (she stood at the foot of the cross after almost everyone else had run away).

• From his foster father, we learn the value of silent, hard work (he was known as “the carpenter” by the community, reflecting widespread respect for the quality of his products) and of being “a good and a just man” (he displayed dignity when he decided to separate from Mary privately when he thought she had been unfaithful, rather than expose her to public scorn and certain execution).

Third is the example given by the three wise men (from Parthia and/or some other empire east of the Roman Empire’s borders in what is now West Asia, according to scholars) when it comes to being committed to a worthwhile objective. Such commitment is operationalized in the details, i.e., careful planning for an arduous, perilous trip that could have taken weeks or even months, and flexibility in the face of fluid situations (warned of Herod’s intent to kill the Child, they took another way back to their own country).

The apostolic letter, “Admirabile Signum” (“A Wonderful Sign”), which Pope Francis issued in December 2019 — practically on the eve of the pandemic — also said that “[t]he magi teach us that people can come to Christ [and, as a corollary, any good] by a very long route,” hence, the need for patience and perseverance in the face of obstacles when working for anything worthwhile.

THE USE OF WEALTH
Finally, “Admirabile Signum” also reminded readers of the value of poverty and the role of wealth.

Poverty, far from the negative connotation it has for many folks, is actually a virtue, since it puts personal possessions in proper context and frees owners from crippling dependence on them.

The manger, the papal letter said, “asks us to meet Him and serve Him by showing mercy to those of our brothers and sisters in greatest need.

“The presence of the poor and the lowly in the nativity scene reminds us that God became man for the sake of those who feel most in need of His love and who ask Him to draw near to them. Jesus… was born in poverty and led a simple life in order to teach us to recognize what is essential and to act accordingly. The nativity scene clearly teaches that we cannot let ourselves be fooled by wealth and fleeting promises of happiness.”

The Compendium of the Social Doctrine of the Church says that “wealth exists to be shared.” Specifically, this doctrine provides that:

• “Goods, even when legitimately owned, always have a universal destination,” and, thus, “any type of improper accumulation is immoral, because it openly contradicts the universal destination assigned to all goods by the Creator.”

• “Wealth is a good that comes from God and is to be used by its owner and made to circulate so that even the needy may enjoy it. Evil is seen in the immoderate attachment to riches and the desire to hoard [by the way, he who has ears to hear — especially when it comes to strategic farm products like rice — let him hear].”

• “Those who work in the economic sphere and who possess goods [ought] to consider themselves administrators of the goods that God has entrusted to them,” and “[t]he rich man… is only an administrator of what he possesses; giving what is required to the needy is a task that is to be performed with humility because the goods do not belong to the one who distributes them. He who retains riches only for himself is not innocent; giving to those in need means paying a debt.”

At this point, one need not be overwhelmed by the enormous task of poverty alleviation (here we speak of how “poverty” is more commonly understood: as a social ill of people not having enough to make ends meet) in our country. These principles are best applied to all those in need in one’s immediate surroundings (starting with time spent with family members in need rather than binge-watching your favorite shows or movies on streaming services), radiating further out in society according to one’s capacity.

To end: hopefully, more of us will no longer look at the belen the same old, tired way.

By this time, most organizations will have completed their plans for 2025. But even the best-laid plans constitute just the first step. Much depends on quality of execution, and that in turn depends on the quality of those implementing plans.

Take it from the humble belen, which most of us have taken for granted for so long: Catholic teachings offer solid principles to guide responses to society’s needs across time.

 

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

Epson to ramp up sustainability investments to become carbon negative

PIXABAY

EPSON plans to invest 100 billion yen ($700 million) in sustainability efforts over the next decade to eliminate underground resources and become carbon negative by 2050.

“Epson will focus its management resources on developing solutions that help customers minimize their environmental footprint,” the company said in a statement on Monday.

It aims to invest in decarbonization and resource recycling initiatives, developing innovative environmental technologies, and offering products and services that mitigate environmental impacts, it said.

It added that the company is also working towards reducing greenhouse gas emissions in the supply chain by over two million tons.

In 2016, the electronics company began procuring renewable energy despite the high capital investments needed to transition. After six years, Epson transitioned completely to renewable energy and cut 250,000 tons of CO2 emissions.

In its Philippine branch, Epson utilizes local geothermal and hydroelectric sources as its renewable energy source.

“With commercial and industrial sectors responsible for half of global end-use electricity, it is essential for businesses to drive the transition to renewable energy,” the company said. — Almira Louise S. Martinez

SEC opens new office in Lipa, Batangas

SEC Commissioner Rogelio V. Quevedo, Chairperson Emilio B. Aquino, and Commissioner Karlo S. Bello led the inauguration of the SEC Lipa Extension Office on Dec. 17.

THE Securities and Exchange Commission (SEC) has opened an extension office in Lipa City, Batangas.

“The SEC Lipa Extension Office reaffirms our commitment to providing greater and more effective access to our services, ensuring consistent enforcement of corporate and securities regulations, and establishing closer coordination with partners indispensable in the implementation of our plans and programs at the local level,” SEC Chairperson Emilio B. Aquino said in a statement on Wednesday.

The SEC Lipa Extension Office will exercise jurisdiction over cities and provinces within the Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) and Mimaropa (Mindoro, Marinduque, Romblon, and Palawan) regions.

It will take over the monitoring of existing corporations’ compliance with their reportorial requirements under pertinent laws, rules, and regulations.

“Because they are closer to the ground, our extension offices allow the Commission to closely monitor and more promptly tackle fraudulent activities such as investment scams and illegal lending,” Mr. Aquino said.

“At the same time, through our extension offices, the Commission can better amplify its information, education, communication, and advocacy campaigns, which are vital in protecting the public from investment scams, illegal lending, and other predatory schemes,” he added.

The Lipa office marks the SEC’s third extension office opened this year, following the extension offices in Koronadal in September and Butuan in March.

To date, the Commission has 13 extension offices, with the other offices located in Baguio, Tarlac, Legazpi, Cebu, Bacolod, Iloilo, Tacloban, Zamboanga, Davao, and Cagayan de Oro. — Sheldeen Joy Talavera

Surreal vertical tasting of Chateau Margaux 

CHATEAU MARGAUX holds a special place in my heart as a wine writer because it basically kicked off my wine column. In 2004, after my first visit to Chateau Margaux, I wrote my first extensive wine article on this first growth that was featured in a luxury magazine. Before that article, I would write sparsely and mostly on wine education and information. But after that one came out, I got my first offer to write a regular wine column, called “Sip by Sip,” for another newspaper. Then I moved here to BusinessWorld a bit less than a decade ago, where my column is called “By the Glass.”

Chateau Margaux is not only special because of its iconic wines, but also because of the personalities behind the chateau. I was very fortunate to be able to interview the legendary Paul Pontallier, who was the Managing Director from 1990 until his untimely passing in 2016, during that visit in 2004. And then in 2016, I got to interview the man who is the present managing director, Philippe Bascaules, who was back then working for the Inglenook Niebaum-Coppola Estate Winery of Oscar-winning director and Hollywood royalty, Francis Ford Coppola.

Amidst the craziness of our traffic this holiday season, going to BGC in Taguig from my Quezon City office can be a real nightmarish drive, but I was not attending just some random wine event, we are talking of Chateau Margaux here! I will never pass up a chance to taste Chateau Margaux, and this was made even more trip-worthy because of the presence of visiting Deputy Managing Director, Aurélien Valance.

Once more, Romy Sia and his Wine Story, the country’s only ultra-premium wine store, pulled off another wine dinner of the highest stature, with one of the most revered chateaux of all time, first growth Chateau Margaux. This dinner featured four Chateau Margaux vintages covering three decades: the highly touted 1989, the less hyped 1999 and 2004, and one of the most well-regarded vintages of the last two decades, the 2009.

AURÉLIEN VALANCE
A little background on Aurélien Valance. He fell in love with wine and Chateau Margaux when he was in business school, He started as an intern at Chateau Margaux in 2001 but was called back and hired in 2006, initially as a commercial director based in Paris. But he eventually moved to Bordeaux when Paul Pontellier passed away, and was promoted to deputy managing director, under the returning Phillipe Bascaules.

As he mentioned in his talk during the wine dinner, Aurélien would have been an investment banker if he wasn’t into wine, but he caught the wine bug early, and being at Chateau Margaux is a dream job for anyone with this much wine passion.

Aurélien was also once a blind wine tasting champion and is an enthusiastic wine collector of thousands of wines. But he did clarify that these bottles are not all Chateau Margaux.

Sherwin Lao (SL): Have things changed since the return of Philippe Bascaules to Chateau Margaux as the new managing director replacing Paul Pontallier? Whether it be from the management or winemaking point of view?

Aurélien Valance (AV): This is a good question, but I must say a few things changed. I think especially the way we do tastings and on deciding on which plots of harvest to use to make the wine blend.

You see, normally when we do tastings, Paul would often go first, and because Paul was always a legend and always renowned for his palate, everyone in the tastings would normally shy away from speaking out, even if we all know taste could be quite subjective. It is not because Paul was not listening, it is all due to Paul’s revered status.

With Philippe, I would say he is more open-minded and people around him are not intimidated to say their opinions during the tastings.

SL: While in general, Bordeaux prices, including those Grand Cru Bordeaux, have been affected by the global economic crises — COVID, Brexit, and even China’s slow down — how does Chateau Margaux still continue to command and sell at high prices?

AV: There are three reasons why Chateau Margaux has always commanded these high prices:

One: We bank on the excellence of our wines. And even in the most difficult of vintages, like, for example, the 2013, we will produce very little quantity, but still make the highest quality wine possible from this vintage;

Two: We are family owned, so we can decide on whether we want to sell or not. In fact, when the market is tough, we actually prefer to keep the wines than selling it lower than what we command. We can always keep the wines and then sell it after another 10 years or more when the market is no longer tough. The negociants we sell to know Chateau Margaux never discounts; and,

Three: We try to have a very good global distribution. Last year, we were distributed in more than 110 countries. We don’t want to depend on a single market, like you mentioned China, as we will suffer. So, we prefer to spread out our distribution. When we deal with our many negociants we have the final say in the allocation of our stocks to which markets through which importers. This way we have absolute control of where our stocks go, and we can ensure our global distribution, vintage after vintage. That is why we only use select number of negociants and we meet them at least once or twice a year as they are our partners, and we want to get details of where they sell our wines.

Like for example, here at Wine Story I know how many bottles my negociant sold to them. (Author’s note: Chateau Margaux, like most of the Bordeaux chateaux, sell to negociants, basically the middleman, who then sells to wine importers around the globe. There are close to 400 registered negociants in Bordeaux. Chateau Margaux, as Aurélien mentioned, worked with 40 negociants.)

SL: I noticed that the Cabernet Sauvignon made up like 75%-80% of the blend during the 1980s and 1990s. Then Cabernet Sauvignon’s share in the blend gradually increased throughout the 2000s, and has been closer to 90% or more now. Why is this?

AV: For two reasons:

One: We feel our Cabernet Sauvignon can produce better wines in our blend than having more Merlot. Our best terroir is in fact composed of pebbles, the soil most suitable for Cabernet Sauvignon;

Two: Bordeaux experienced big climate change. And weather is now warmer, and this actually benefited the Cabernet Sauvignon. So, the quality of our Cabernet Sauvignon has improved, as they are now riper, while our Merlot quality may have been stable, but they are not better, so it became more difficult to put more Merlot into our blend.

SL: In the last 20 years or so — basically from the 2001 vintage onwards — what would be, in your personal opinion, the top five vintages, ranking them from one to five with one being the highest – and why?

AV: (He paused before replying.) To drink now (and I nodded), for me:

No.1. The 2009 Vintage — it is so good now, and it could even be better in the future.

No. 2. The 2019 Vintage — I love this wine, as I always enjoy charming wines. The vintage is creamy and the tannins are velvety, soft and silky.

No. 3. The 2022 Vintage — to me the most impressive of the last two decades is this vintage, which should be arriving soon. This is really so good, and such a baby that it should be kept for at least 10 years before drinking. But the wine can still be appreciated in its youth now and can get even more impressive over time. I look at this wine as the modern version of our famous 1961 vintage.

No. 4. The 2004 Vintage — this to me is textbook Chateau Margaux as this is a wine with fragrance of violets, and more floral. In fact, it is a wine my Burgundy-loving friends would drink.

No. 5. The 2001 Vintage – this is my pick to drink now. I mean it is a vintage people don’t talk about as it came after the incredible 2000 vintage, [it is] always hard to come after such a vintage. At Chateau Margaux, for a long time, this 2001 has been quite shy, but just two years ago, this vintage suddenly blossomed, and it is hard even for me to explain why and how. At Chateau Margaux, I never serve the 2001 to guests, but lately this is the vintage I love to serve. The perfume is amazing, and it has a lengthy finish. Prior to its evolution two years ago, the finish of this vintage was quite tannic, but now the tannins have softened considerably and the finish is just very smooth.

Well said Aurélien!

Here below are my customary tasting notes on the four vintages of Chateau Margaux, in order of tasting:

• Chateau Margaux 2009 — “Intense nose with ripe blackcurrant, cedar, mint-chocolate, very concentrated, with so much rich flavors dancing all over the palate, cedary, full-bodied with juicy tannins, powerful, yet quite elegant, and with lengthy vivacious finish; drinking well now, but can keep for decades and decades; indeed, a wine for the ages.”

• Chateau Margaux 2004 — this is the only vintage of Chateau Margaux among the four vintages featured that I had tasted before and I shared my fond thoughts of this vintage with Aurélien during our interview: “perfumed nose of violets and red petals, with the delightful floral elements being more prominent than the fruit side, a very sophisticated wine with freshness, flintiness and suppleness that is an antithesis of the more powerful grippy wines.”

• Chateau Margaux 1999 — “still very fresh on the nose, with blueberries, plums, tobacco leaves, vanilla, cinnamon bark, velvety on the mouthfeel, friendly approachable tannins, and with nice mineral notes at the end; this was a surprise as 1999 is another vintage rarely mentioned in any Bordeaux conversation.”

• Chateau Margaux 1989 — “Luscious nose of ripe berries, cacao, cedar, and eucalyptus. For a 35-year-old wine, this wine still exudes freshness, and on the palate, the body is silky, with a balanced acid backbone and soft tannins, and ends with a lovely bitter-sweet and peppery lingering finish.”

These hedonistic Chateau Margaux wines plus their other vintages, in different size formats, are available at Wine Story Uptown BGC and Wine Story Shangri-La Mall. For more info on Wine Story, visit www.winestory.com.ph.

 

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

Growing the Philippine EV market

FREEPIK

Southeast Asia’s electric vehicle (EV) market is undeniably at a different stage compared to the US, Europe, and even China. While EV markets in the US and Europe may soon experience a slowdown, Southeast Asia remains in the early adoption phase, albeit facing its own unique challenges.

Despite Tesla’s recent entry into the Philippine market, I expect Chinese manufacturers to continue dominating the EV landscape, not only in the Philippines but across Southeast Asia. China enjoys key advantages, including geographical proximity to the region and established trade partnerships.

More importantly, Chinese EVs are competitively priced. Manufacturers from China have already gained significant experience in producing EVs for their domestic market, Southeast Asia, and other emerging economies. Their pricing strategy and production expertise make them highly appealing to price-sensitive markets like the Philippines. That said, growth in sales across the region still faces considerable headwinds, primarily related to charging infrastructure rather than the vehicles themselves.

In the Philippines, EV adoption faces several hurdles despite government incentives. The most pressing challenge is the lack of charging stations, especially in areas outside major urban centers. Even in metropolitan hubs, the availability of reliable charging infrastructure is limited, leading to range anxiety among potential buyers. Compounding this issue is the questionable reliability of the national power grid. Many doubt whether the current energy infrastructure can support widespread EV charging throughout the year, particularly during peak seasons.

Another critical factor is pricing. While incentives can help reduce costs, EVs are generally more expensive than traditional gasoline or diesel vehicles. The Philippines, being a price-sensitive market, presents a unique challenge for EV adoption. Most Filipino buyers prioritize affordability, practicality, and versatility in their vehicle choices. Unfortunately, the current EV market lacks the diversity of models and price points available in the traditional vehicle segment. This limits options for consumers, especially those looking for budget-friendly alternatives.

Consumer education remains another barrier. Despite efforts by automakers to promote EV awareness, many Filipinos remain unfamiliar with the range of EV technologies and how they differ. For instance, distinctions between hybrids, plug-in hybrids, and full electric vehicles remain unclear to a large portion of the market. Understandably, consumers are still concerned about battery range, battery life, maintenance costs, and overall durability — particularly for Chinese brands, which are still building trust among Filipino buyers.

Tesla’s entry into the market, however, brings a new dynamic. Given the brand’s global reputation and strong performance in the US, its arrival has already sparked excitement among affluent, US-oriented Filipino consumers. Tesla’s presence will undoubtedly boost interest in EVs and could drive sales, especially in the premium segment. However, its impact may be limited due to its higher price point, which places Tesla vehicles out of reach for most Filipino buyers. Without a robust and reliable service network, Tesla may also struggle to scale its success in the Philippines.

Meanwhile, Chinese brands like BYD and MG are poised to dominate the Philippine market in the near term. Their pricing strategies and increasing availability make them attractive to Filipino consumers who seek affordable EV options. While Tesla may capture significant market share in the premium segment, overtaking Chinese brands across all categories will prove challenging.

Given these dynamics, the more practical Filipino buyer will likely favor hybrid vehicles over full EVs in the short to medium term. Hybrids serve as a “transition technology” because they retain the familiarity of gasoline-powered engines while addressing range anxiety. Unlike full EVs, hybrids do not rely on an extensive charging infrastructure, a major advantage in a country where charging stations remain scarce. As a result, hybrid vehicles may continue to outsell full EVs in the Philippines until at least the next decade.

However, there is hope that over time, prices of EVs will decline, and charging infrastructure will become as widespread as traditional fuel stations. These two developments — affordability and infrastructure — will ultimately drive the mass adoption of full EVs. Globally, the EV market is evolving rapidly, and local players are undoubtedly watching these trends closely. The challenge lies in adapting global innovations to the unique realities of the Philippine market.

In addition to infrastructure and pricing, external economic factors also play a critical role. Over the past few months, fuel prices have remained relatively stable, but the peso-dollar exchange rate has weakened. Any significant increase in fuel prices or further devaluation of the peso could influence consumer behavior, potentially accelerating the shift to more fuel-efficient or alternative energy vehicles. For many Filipino families, fuel costs are a major consideration, particularly during periods of economic uncertainty.

The Philippines can also look at attracting more foreign investment in EV manufacturing to reduce costs and stimulate local adoption. However, this will be a tough sell. Compared to neighbors like Thailand and Indonesia, which offer sizable markets, competitive incentives, and established automotive industries, the Philippines lags behind. Still, regional manufacturing hubs could bring down tariffs and shipping costs for EVs sold in the Philippines, indirectly benefiting consumers.

Available data highlights both challenges and opportunities in the Philippine EV market. In 2023, total EV sales exceeded 10,000 units, with over 9,000 of those being hybrid electric vehicles (HEVs). Despite this impressive jump, EVs still accounted for just 2% of total vehicle sales in 2023. The increase is significant when compared to 2022, where only about 1,000 EV units were sold — a tenfold growth in just one year.

In contrast, Thailand serves as a regional leader. EV sales in Thailand reached 76,000 units in 2023, representing 12% of all vehicles sold. By the first quarter of 2024, EV market share had climbed to 14%. The Thai government has set an ambitious target: by 2030, 30% of vehicle production in the country will be electric. Indonesia is also making impressive strides. In 2023, sales of two-wheeled EVs surged to over 62,000 units, while four-wheeled EVs reached 12,000 units. For 2024, Indonesia aims to sell at least 50,000 four-wheeled EVs.

The successes of Thailand and Indonesia underscore important lessons for the Philippines. Both countries have leveraged government support, incentives, and infrastructure development to accelerate EV adoption. For the Philippines, adopting a similar approach could drive growth and position the country as a serious player in the regional EV market.

Looking ahead, the role of Chinese manufacturers in the region will remain pivotal. Their early mover advantage has already paid dividends in Thailand and Indonesia, and this momentum is likely to continue. Ultimately, the future of the Philippine EV market hinges on the government’s ability to address infrastructure gaps, incentivize adoption, and create an environment conducive to investment.

While challenges remain, the rapid growth of EV markets in neighboring countries offers a blueprint for progress. With the right strategies in place, the Philippines has the potential to catch up and emerge as another key player in Southeast Asia’s electric mobility revolution.

 

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

matort@yahoo.com

Term deposit yields go down before BSP review

BW FILE PHOTO

TERM DEPOSIT yields fell on Wednesday ahead of expectations of further easing by the Bangko Sentral ng Pilipinas’ (BSP) at its last rate-setting meeting for the year.

The central bank’s term deposit facility (TDF) fetched bids amounting to P248.991 billion on Wednesday, well below the P310-billion offering and the P350.69 billion in tenders for the P270 billion auctioned off a week ago.

Broken down, tenders for the eight-day papers reached P201.815 billion, above the P180 billion auctioned off by the central bank and the P198.58 billion in bids for the P160-billion in seven-day deposits placed on the auction block a week prior.

Banks asked for yields ranging from 5.95% to 6.0199%, lower than the 6.985-6.04% band seen a week earlier. This caused the average rate of the one-week deposits to decline by 1.72 basis points (bps) to 6.0076% from 6.0248% previously.

Meanwhile, bids for the 15-day term deposits amounted to P47.176 billion, sharply lower than the P130-billion offering and the P152.11 billion in tenders for the P110-billion offer in the previous week.

Accepted rates for the tenor were from 5.96% to 6.074%, lower than the 6% to 6.08% margin seen a week ago. With this, the average rate for the two-week deposits fell by 3 bps to 6.0314% from 6.0614% logged in the prior auction.

The TDF tenors were adjusted in view of the upcoming holidays.

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

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

Term deposit yields went down ahead of the Philippine central bank’s policy decision on Thursday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

A BusinessWorld poll conducted last week showed that 13 out of 16 analysts expect the Monetary Board to reduce the target reverse repurchase rate by 25 bps at its meeting today (Dec. 19).

If realized, this would bring the benchmark rate to 5.75% from the current 6%.

This would also mark the third straight meeting the central bank will cut rates since it began its easing cycle in August with a 25-bp cut. It trimmed borrowing costs by another 25 bps in October.

Mr. Ricafort said markets are also anticipating the results of the US Federal Reserve’s own meeting.

The Federal Reserve was expected to lower borrowing costs on Wednesday in what some observers are calling a “hawkish cut” set to be delivered alongside policy makers’ updated interest rate outlooks and economic forecasts covering the first months of the incoming Trump administration, Reuters reported.

The anticipated quarter-percentage-point move would lower the US central bank’s benchmark policy rate to the 4.25%-4.5% range, a full percentage point below where it stood in September when it began easing the tight monetary policy used to counter a surge in inflation that began in 2021.

How much further and how fast rates will fall next year remains increasingly uncertain with inflation still lodged above the Fed’s 2% target, the economy growing faster than expected, and the prospect that President-elect Donald J. Trump’s tariff, tax and immigration policies could change the economic landscape in unpredictable ways once he takes office in January.

Between data showing inflation stalled above the 2% target and Mr. Trump’s victory in the Nov. 5 presidential election, investors now see the Fed perhaps cutting the benchmark rate by only half a percentage point next year — and they will be studying the projections and Fed Chair Jerome H. Powell’s remarks in a post-meeting press conference closely to see if policy makers are also becoming more cautious about further rate reductions. — Luisa Maria Jacinta C. Jocson with Reuters

Deepfakes seen to go mainstream in 2025

VECSTOCK-FREEPIK

GROWING USE of artificial intelligence (AI) tools in fraud schemes such as deepfakes is one of the top cybersecurity concerns for 2025, according to a cybersecurity company.

“As quantum attacks loom and deepfakes become mainstream tools of deception, businesses will either innovate or risk being outpaced by adversaries,” Palo Alto Networks Asia-Pacific and Japan President Simon Green said in a statement this month.

Citing a recent PricewaterhouseCoopers International Limited report, Palo Alto Networks said more than 40% of leaders do not understand the risks that could come with emerging technologies like virtual environment tools, generative AI, enterprise blockchain, quantum computing, virtual reality, and augmented reality.

In the Asia-Pacific region, deepfakes are already being used for targeted attacks, the company said.

“Savvy criminals will take note and use ever-improving generative AI technology to launch credible deepfake attacks.”

Palo Alto Networks said that audio deepfakes or “highly credible” voice cloning will become more prevalent in cyberattacks next year.

“We can expect deepfakes to be used alone or as part of a larger attack much more often in 2025,” it said.

Deepfakes combine pictures and voices of real people to create manipulated images, videos, and audio, according to the Cybercrime Investigation and Coordinating Center (CICC).

CICC Executive Director Undersecretary Alexander K. Ramos said in a statement in September that the manipulative tool is also one of the biggest threats in the upcoming 2025 midterm elections.

“It’s a tool that can mislead the public because of the content. We wouldn’t know which is real or not,” he said.

Mr. Ramos added that the government is currently looking for ways to counter the harmful effects of the technology, and CICC is working with the Commission on Elections to maintain the integrity of our elections.

“We have continuous talks because we have to research technologies that could help them govern this coming election.” — Almira Louise S. Martinez

How CloudCFO aims to simplify accounting process for F&B companies

PCH.VECTOR-FREEPIK

ACCOUNTING and advisory firm CloudCFO seeks to streamline traditional bookkeeping processes to make it easier for food & beverage (F&B) companies to track their finances.

“Now more than ever, with rising costs due to inflation, maintaining profitability through rigorous control over margins is key to not only staying competitive in the F&B industry, but also to setting restaurants up for the future,” it said in a statement on Wednesday.

CloudCFO is a cloud accounting platform that seeks to deliver real-time financial data to help fast-track business operations. It focuses on payroll, tax compliance, and financial consultancy.

“As an outsourcing provider specializing in accounting, bookkeeping, and finance services, CloudCFO offers customized, technology-driven solutions, enhancing the financial operations and strategic decision-making of startups and SMEs (small and medium enterprises),” it said.

CloudCFO conducts an in-depth assessment of a company’s business model and its current practices to help tailor-fit its bookkeeping services.

“For restaurants, the review covers various internal controls such as POS systems, reconciliation of multi-channel payments, inventory management, and regulatory compliance.”

The company has developed “proprietary technology” specific to a company’s needs to help easily identify opportunities and challenges in the restaurant’s finances.

It also helps restaurants track costs and inventory, as well as customer transactions regardless of the payment channel. — Beatriz Marie D. Cruz

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