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Perfection in a salmon sashimi

FROM SUSHI delivered by train, we now have sushi crafted by hand.

From the same people who brought train-delivered Genki Sushi to the Philippines, we now have Sen-ryo, a more upscale sushi restaurant located in The Podium in Ortigas. It shares its origins in Japan with its sister, Genki Sushi, having been founded by the same person, Fumio Saito (also behind the idea for conveyor-belt sushi). Sen-ryo has a presence in Hong Kong, Shanghai, and, of course, its home city, Tokyo, and now Manila.

“Our partners really loved Sen-ryo in Hong Kong and Japan. They really wanted to bring it here. We do think the Philippine market is ready for premium Japanese food. They expect so much quality,” said Mia Teng, Marketing Officer for Baby Spice Food Corp. Sen-ryo is operated in the Philippines on a franchise basis by the same people behind, as mentioned, Genki Sushi, but also Mango Tree. Under this same umbrella are homegrown brands Cucina Peruvia and Kureji.

Everyone has a definite idea of what sushi is, and what it is not. Traditionally, it is a roll of rice with seafood in it, once used as a way of preserving it. Of course, cultural dialogue between the East and West has brought forth many different kinds, one being the Cheese Shrimp Cutlet Roll that BusinessWorld tasted during a dinner at Sen-ryo late last month. Filling and substantial, but not exactly what we were looking for. Cultural exchanges, however, hit a home run with a dish we favored, the Sen-ryo salad with leafy greens and a wasabi dressing — and mounds of seafood tucked under the vegetables. Raw slices of sashimi, plump slices of scallop, and many other delicious invertebrates found their way in there. That was quite something, with the lightness of the actual taste providing a perfect blend with the actual weight of the salad.

Speaking of sashimi, they served a Salmon Belly Sashimi, which was perfect. It was firm, never limp; therefore proud of its freshness. The slices were thin enough to still be called sashimi, but were of enough weight to leave one not constantly running after a taste. Despite its substance, it was light and silky and gave the sensation of melting in your mouth, staying whole only at your wish. For this alone, I would come back.

Well, there’s another reason: the Ohmi. Ohmi are slices of wagyu, a cousin to better-known Kobe and Matsusaka, but apparently, Ohmi is a much more senior cousin, its origins dating back to the 1500s. You cook it on an attractive ceramic contraption heated underneath by a lump of (what I assume to be) paraffin or some other fuel, and you cook the slices in a tiny dollop of butter, along with a few mushrooms. The secret is never overcooking the beef so you can taste the cattle in all its glory — and don’t worry, the restaurant knows that. The fuel that heats up the plate is carefully measured and runs out at the time when the slices are cooked to perfection. BusinessWorld was having too much fun to actually measure this time, but all the same, the result was tasty, and, yes, it had a perfect texture.

The recipes have been prepared by Japanese chefs straight from Japan, who are currently training the local chefs.

“It’s authentic, [but] modern Japanese,” said Ms. Teng, which might explain the salads and the cheese in the menu.

There are, however, loads, and I mean loads, of Japanese restaurants which can lay claim to some level of superiority, but why should one choose to go here?

“Everyone says they are premium,” said Ms. Teng. “It’s a very easy thing to say. But our items are specially picked just for Sen-ryo. We have our own suppliers and communications from Japan. We ship directly from there.” — Joseph L. Garcia

Angkas working on more payment options for users

MOTORCYCLE ride-hailing platform Angkas (DBDOYC, Inc.) said it is currently in talks with local banks to provide more payment options to its users.

“Yes. When it comes to financial institutions, we’re weighing our options right now,” Angkas Chief Executive Officer Angeline Tham told reporters in Makati City on Wednesday when asked if the company is in talks with banks on adding more payment options in its platform.

She said Angkas is looking to add credit cards as one of the payment options on the motorcycle taxi app.

The three-year old Angkas is gaining popularity as commuters seek a faster and cheaper way of getting around Metro Manila.

However, Ms. Tham said the company has not made a profit, noting “that’s the price you pay for keeping safety standards.”

Asked when she expects the business to be profitable, she said: “We’re working on it right now. This industry, it has become more of an advocacy. It would take a lot of time. We want to do it. Profitability is in the horizon, hopefully more sooner than later.”

The six-month pilot run of motorcycle taxis in Metro Manila and Metro Cebu is set to end on Dec. 26.

George I. Royeca, Angkas head of regulatory and public affairs, told reporters separately that “the findings are positive.”

“I’m happy to say that this is something that we are able to maintain. We are working with DoTr (Department of Transportation) to maintain our service,” he added.

“Ayaw namin pangunahan. We are just hoping for positive comments from their end. Service for the bayan,” he added.

The pilot test of motorcycle taxis in Metro Manila and Metro Cebu is being conducted upon the recommendation of the DoTr’s technical working group (TWG), which set guidelines on fares, speed limit and safety gear.

The Land Transportation and Traffic Code, or Republic Act No. 4136, does not recognize single motorcycles to operate for public transport. The DoTr formed the TWG in December last year to address recommendations to include the two-wheeled vehicle as a legal transportation mode. — Arjay L. Balinbin

Raising the alarm: the dangers of e-cigarettes

By Susan Claire Agbayani

CRÈME BRÛLÉE, custard, honey, Yakult, banana, mango, M&M, Gummy Bears, cappuccino, mint, root beer float, Coke, Sprite. Name it, they have it. From a survey of online sites alone, to date, there are over 15,500 flavorings to choose from among e-cigarettes the world over.

This was reported by Dr. Ulysses Dorotheo, Executive Director of Southeast Asia Tobacco Control Alliance (SEATCA), in his presentation to media practitioners from all over the Philippines at the forum Nagbabagang Kuwento: Reporting on E-Cigarettes and Novel Products, organized by the Probe Media Foundation, Inc. and held at the Novotel hotel last month.

Apart from this, the device usually referred to as “vape” is hip, trendy, and one can do tricks with it. Popular ABS-CBN show Pilipinas Got Talent even featured a contestant who had “vaping” as a “talent” (puffing, making circles and shapes withthe vapor, changing colors and styling bubbles) projecting “vaping and e-cigarettes (as) hip and stylish,” noted Benedict Nisperos, a legal consultant of HealthJustice Philippines, a non-government organization. As of press time, the YouTube video of the performance had garnered 38.7 million views.

MARKETING CIGARETTES, E-CIGS
Dr. Dorotheo said that e-cigarettes are being marketed the way conventional cigarettes were marketed decades ago: associating them with attractiveness, success, fun, or sex appeal, like cigarette companies used the image of a rugged man astride a horse, or a macho man surrounded by many women in a disco.

The difference is the use of social influencers to help push the products today. Media organization Reuters got wind of this, and exposed it, forcing Phillip Morris to suspend its social influencer campaign.

Although already banned in 43 countries — including very recently, India — e-cigarettes have definitely been targeted to the youth as a trendy product, with e-cig brands going around “campuses sponsoring sports events, prom nights, and introducing these products to these kids’ events,” noted Mr. Nisperos.

Until recently there were 107 pro-smoking apps available on smartphones. But just a few weeks ago, Apple removed the vaping apps according to CNBC, thanks to the current spate of lung illness in the US which has been linked to vaping. (https://www.cnbc.com/2019/11/15/apple-removes-vaping-related-apps-from-app-store-amid-lung-illness-crisis.html)

“[A] survey of teenagers in the US, (found out that) 12-13 % thought that they were just vaping flavours,” said Dr. Dorotheo. “Hindi nila alam na may nicotine (they did not know that it had nicotine). By the time they found out, they were already addicted to it. That’s a big problem. Time magazine covered it — how [the most popular e-cigarette brand] hooked kids — and ignited a public health crisis. (It is the) new American addiction,” he said. (https://www.nbcnews.com/health/health-news/more-teens-are-vaping-many-think-it-s-nicotine-free-n948251)

In an informal survey, Dr. Riz Gonzalez, who regularly conducts in public for a especially among young people, said she found out that what lures young people to “vaping” are, in this order, flavorings, media, and friends.

Dr. Gonzalez is the chair of the Tobacco Control Advocacy Group of the Philippine Pediatric Society. Fresh from a trip to the US where she attended the 2019 American Academy of Pediatrics (AAP) National Conference (she is a member of the Section of Tobacco Control of AAP), she was one of the resource speakers at the Probe forum. Her segment was titled “Are E-cigarettes Really SafeR?”

Dr. Gonzalez is one of those who try to spread awareness regarding e-cigarettes so that this “impending epidemic among children will not happen like what is happening in the United States.”

According to updated figures from the Centers for Disease and Control Prevention as of Nov. 20, 2,290 cases of e-cigarette or vape-associated lung injury (EVALI) have been reported in 49 states — including 47 deaths in 25 states — in the United States. (https://www.cdc.gov/tobacco/basic_information/e-cigarettes/severe-lung-disease.html?fbclid=IwAR3X4Hvhaa30MiqDZGIFmweDTh0u91ge_ALuqQrLuKijYzNYwt82fxypct8)

AEROSOL, NOT VAPOR
The CDC website notes that electronic cigarettes (or e-cigarettes) “are also called vapes, e-hookahs, vape pens, tank systems, mods, and electronic nicotine delivery systems (ENDS)” and that using an e-cigarette product is commonly called “vaping.” The site added that e-cigarettes work “by heating a liquid to produce an aerosol that users inhale into their lungs.

And this aerosol does not contain what users think it does. “E-cigarettes create an aerosol by using a battery to heat the e-liquid. Users inhale this aerosol into their lungs. When you heat it — the humectants, flavoring, nicotine, interact with nickel, lead, and tin from the coils adding up metallic nano-particles from this device,” Dr. Gonzalez said.

She added that “We should never call it a vapor; that’s actually a misnomer, because vapor is plain water produced after heating; aerosol is the proper term.”

Mr. Gonzalez said that second-hand aerosol (SHA) “might be less [dangerous] than that of second-hand smoke (SHS), but it still contains those particles which can impair lung function and development in the young.”

“No amount of scrubbing” will remove third-hand aerosol (THA) said Dr. Gonzalez. “Chemicals stick to bathroom tiles being hygroscopic or water loving.” She added that it also reacts upon exposure to air, and when oxidized turns into potential carcinogen (nitric oxide).

THE EVOLUTION OF THE E-CIG
An American national named Helbert Gilbert designed the first e-cigarette way back in 1963. It never prospered though.

Forty years later, a 52-year-old pharmacist from Beijing, China, Hon Lik, invented the modern e-cigarette. It had to “mimic the stick, mimic the cloud, and this hand-to-mouth habit,” said Dr. Gonzalez. The e-cigarette was finally launched to the public in 2006.

While only a “teenager” by today’s standards (at 13 years old), e-cigarettes have evolved: from the first-generation cig-alike in 2007, to the tank system with more e-liquid in 2009, and from mods that looked like cell phones (and could explode, by the way) in 2012, to the pod system of today. The nicotine content of one pod is equivalent to at least one pack of cigarettes, although flavors like crème brûlée could contain nicotine equal two packs.

The most popular e-cigarette brand in the US is Juul (after “jewel”) which has captured 70% of the market (thus, the new verb, “juuling”). It launched in the Philippines in June this year and its local competitor is Relx.

This e-cig has a “discreet aerosol (not a large cloud), doesn’t smell like cigarettes, is easy to hide because it resembles a flash drive, has assorted flavours that come in pre-packaged pods, and could be charged like a USB stick,” Dr. Dorotheo said.

How the pods look should raise alarm bells among parents. They are so small they could be concealed as USBs, under sleeves, in smart watches, and in “strings” of hoodies. That is according to Dr. Dorotheo’s presentation (Google “Vape wearables”). And it doesn’t help at all that pods are sometimes displayed prominently without warnings in convenience stores — right beside the candies — and the age of the buyer is not thoroughly examined by store crew.

“Consuming tobacco products is like falling from the 20th floor of a building, while using e-cigs is like falling from the 10th floor. Either way, it harms you,” Ira Camarao, Project Manager of the Strategy, Economics and Results Group of the Department of Finance (DOF), said during the forum, as stated by the WHO representative in one of the Senate hearings last September.

BANNING CIGARETTES AND VAPES
It is also alarming that in the Philippines, one in five users of e-cigarettes or vapes is below the age of 20, according to the Food and Nutrition and Research Institute (FNRI).

Dr. Riz Gonzalez says that adolescence is a time of “risk taking, when you want something pleasurable, you’re mighty in the family, [you] don’t want to listen to parents, but listen more to your peers.” Dr. Gonzalez is the chair of the Tobacco Control Advocacy Group of the Philippine Pediatric Society.

Because adolescents are the way they are, they are particularly susceptible to the e-liquids or e-juices, which contain humectants, flavorings and nicotine. Flavors play a role in nicotine addiction by young people, whose brain chemistry is malleable and still maturing, said Dr. Gonzalez.

She added, “The developing brain matures by age 25, not 18, based on recent findings.”

Nicotine, she said, “is the number three (most) highly addictive substance in the world. If you can manipulate the humectants (propylene glycol and vegetable glycerin) you can also manipulate the dose of nicotine from zero to 36 mg. The normal (nicotine content in) cigarette is 20 milligrams [per pack]. See? So para kang nagpunta ng café (it is as if you went to a café where) you can ask for more cream and sugar.”

Exposure to nicotine during adolescence has “long-standing effects in the brain, including cell damage that leads to both immediate and persistent behavior changes,” said Dr. Gonzalez. “Nicotine from smoking/vaping changes the brain chemistry. Nicotine uses the dopamine reward pathway.”

So when young people start smoking cigarettes or e-cigarettes when they’re 18 (or any age under 25), it’s harder for them to quit because the brain has been rewired for nicotine addiction.

These effects, she added, “are not found with nicotine exposure to the adult, supporting the idea that the adolescent brain is uniquely susceptible to nicotine addiction.”

Dr. Gonzalez mentioned that “Like a CEO, the pre-frontal cortex is responsible for executive function. It controls your mood, your attention span, your behavior, cognition, impulse, emotions and higher learning.” It also has “jurisdiction” over organization, planning, self-control, and judgment.”

The long-term effects of nicotine exposure during adolescence include diminished cognitive function as adults, reduced attention span, enhanced mood alterations such as anxiety or depression.

Among the other health risks for vapers are: lung cancer, cardiovascular diseases, and myocardial infarction.

While decades ago, smokers had problems or died in their 50s or 60s, she noted that the patients are getting “younger and younger.”

“Dapat, ang emphysema pang 60-years old lang (emphysema should just be a problem for 60 year olds). For chronic vapers, emphysematous change could happen in the young because of that heated aerosol that they are taking in. We will not be surprised if in two to five years, we’ll be seeing children vapers having a heart attack because of all this exposure,” said Dr. Gonzalez.

And while pneumonia used to be the No. 1 killer in the country, a host of patterns of lung injury have been reported with vaping-associated pulmonary illness (VAPI) such as acute eosinophilic pneumonia, lipoid pneumonia, acute lung injury, acute and subacute hypersensitivity pneumonitis, diffused alveolar haemorrhage, and respiratory bronchiolitis-associated pneumonitis, among others.

In the local scene, “The Department of Health (DOH), in line with the WHO’s ICD-10 reporting of diseases, announced last Oct. 17 to report EVALI (e-cigarette or vape-associated lung injuries) as a reportable disease,” said Dr. Dorotheo.

He added that they are now receiving reports from doctors who are saying that some of their vaper-patients have coughs, and respiratory and heart problems. And doctors are starting to see “it” (meaning the diseases associated with vaping). It won’t take long till the Philippines will come up with its own figures.

Benedict Nisperos, a legal consultant of the NGO HealthJustice Philippines, said, “We are very interested in the US (because what is happening there) can happen in the Philippines. At this juncture, we can work together and propose policies that would prevent this epidemic from happening in the Philippines.”

“We have young people being fed this misinformation, that e-cigarettes are OK; they’re not bad at all. It’s an alternative [to cigarettes]; it’s safer,” said Dr. Dorotheo. “Given what we already know about its health effects, it’s as if we’re dooming our next generation to being sick, disabled, and dying early. In the case of the US, those who are being hospitalized and (are) dying early are in their teens, 30s, 40s, very productive; and the oldest in their 60s or 70s.”

TDF yields up on bets of rising inflation

YIELDS ON term deposits went up amid fewer bids, with the market factoring in an uptick in inflation after two months of slowdown.

Tenders for the central bank’s term deposit facility (TDF) amounted to P175.528 billion, going beyond the P170 billion placed on the auction block, data from the Bangko Sentral ng Pilipinas (BSP) showed.

However, this week’s tenders fell compared to the P180.328 billion in bids the BSP received last week for the P180 billion on offer.

Banks’ tenders for the seven-day term deposits amounted to P56.572 billion, lower than the P60 billion the BSP auctioned off and also falling from the P62.442 billion in bids seen on Nov. 27 for the P70 billion on offer.

Yields for the tenor were seen from 4.125% to 4.45%, a slimmer range compared to last week’s 4.07-4.45% band. This resulted in an average rate of 4.2834%, an increase of 3.26 basis points (bps) from last week’s 4.2508%.

Meanwhile, the 14-day papers attracted tenders worth P67.388 billion, surpassing the P60 billion on offer and also beating the P53.975 billion in tenders seen last week against the P50 billion on the auction block.

Lenders asked for returns ranging from 4.235% to 4.4188%, a narrower band compared to the 4.14-4.4566% range last week. The average rate for the two-week tenor was at 4.331%, down 1.14 bps from the 4.3424% logged on Nov. 27.

For the 29-day deposits, tenders amounted to P51.568 billion, slightly higher than the P50 billion offered by the BSP but failing to beat the P63.911 billion in tenders garnered last week for the P60 billion auctioned off by the central bank.

Rates for the one-month papers ranged from 3.5% to 4.4948%, a wider band versus the previous auction’s 4.19-4.5%. This caused the one-month paper’s rate to average at 4.3522%, higher by 1.98 bps from last week’s 4.3324%.

The TDF is the BSP’s main tool to shore up excess liquidity in the financial system and to better guide market interest rates.

Economists attributed the TDF auction results to the market expectations of an increase in inflation in November.

“The lower tender this week compared to last week’s auction may have indicated the market’s anticipation of higher price levels and that inflation’s base effect from last year is expected to recede. The market may now be looking at longer positions as inflation normalizes further,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

This was echoed by Rizal Commercial Banking Corp. chief economist Michael L. Ricafort.

“The latest BSP TDF auction yields were mostly higher by two to three basis points week on week, largely amid expectations of some pick up in inflation rate. Local interest rate benchmarks are fundamentally correlated with the direction/trend in local inflation rate,” Mr. Ricafort said.

BusinessWorld’s poll of 16 economists last week yielded a median estimate of 1.2% for the November inflation. This is at the lower end of the 0.9-1.7% forecast range given by the BSP Department of Economic Research last week.

In October, inflation slowed to 0.8% from the three-year low of 0.9% logged in September. Both figures came on the back of base effects from last year’s 6.7% overall increase in commodity prices in September and October 2018.

The Philippine Statistics Authority will report November inflation data today. — Luz Wendy T. Noble

SMFB’s planned P15-B bonds gets top rating

SAN MIGUEL Food and Beverage, Inc.’s (SMFB) planned fixed-rate bonds worth up to P15 billion received the top credit rating from Philippine Rating Services Corp. (PhilRatings).

In a statement, PhilRatings said it assigned the bonds its highest issue credit rating of PRS Aaa with a stable outlook.

A PRS Aaa credit rating means these obligations are “of the highest quality with minimal credit risk.” A stable outlook means it is likely to be maintained within the next 12 months.

SMFB will be using the proceeds to redeem P15-billion worth of its Series 2 Preferred Shares in March 2020.

In assigning the credit rating, PhilRatings said it considered the company’s “strong brand equity and leading market position of SMFB’s core businesses.” It also cited the positive outlook for the Philippine economy, which will boost the food and beverage industry.

PhilRatings also noted SMFB’s “conservative financial position considering the capital intensive nature of its businesses; and its strong profitability performance and healthy cash flow generation.”

San Miguel Corp. (SMC) had consolidated its food and beverage businesses under SMFB in 2018. This includes San Miguel Pure Foods Company, Inc., San Miguel Brewery Inc. (SMB) and Ginebra San Miguel, Inc. (GSMI).

“As an SMC-owned company, SMFB realizes synergies from its relationship with the broader San Miguel Group. The size and scale of the broader San Miguel Group likewise provide the Company with significant leverage and bargaining power with suppliers,” PhilRatings said.

“Furthermore, the consolidation of SMC’s food and beverage business under SMFB resulted in economies of scale in infrastructure and unlocked greater shareholder value by creating a sizeable consumer vertical market under one company,” it added.

For the first nine months of 2019, SMFB reported its net income attributable to the parent dropped 8% to P12.65 billion, while consolidated sales jumped 10% to P226.36 billion.

In a regulatory filing, the company said it saw higher sales volume across all segments, but this was weighed down by the rising cost of raw materials and increased operating expenses due to expansion activities.

Flavors to please an empress

CHICKEN with minced mushroom in egg white wrapper

WHEN YOU think of the empresses who ruled China, one name immediately comes to mind: Dowager Empress Cixi. A former concubine plucked from obscurity when she bore the Emperor a son, the woman shaped the last years of Imperial China. Cold and imperious, she eliminated all competition to the throne, even going as far as usurping the throne from her own son — the sanitized story is that she served as regent when her son was taken ill and eventually dying.

“She wasn’t that warm,” commented Empress Dining Palace Chief Operating Officer Aida Velasco. “Of course, we didn’t want that history… it’s not based on a person, but an ideal,” she said of the Empress Dining Palace, a new restaurant in BGC. Still, Empress Cixi, during her last years, wore the legendary Phoenix as her personal emblem, an emblem shared by Empress Dining Palace, which places a premium on upscale Chinese dining — just like the Empress did. The restaurant stands on the site of a former Chinese cuisine favorite, the franchise of which has since been acquired by another entity (https://www.bworldonline.com/ssi-adds-crystal-jade-to-portfolio/).

The Empress was very particular with her food, and legend has it that she once had a chef whipped for serving her tasteless dim sum. Chef Lam Pui, the man behind the kitchen at The Empress, celebrating his seventh year in the Philippines, will never have to experience that, based on this tasting by BusinessWorld late last month.

The meal kicked off with slices of Empress Peking Duck, which had a savory and crispy quality expected from any Chinese restaurant worth its salt. The next course was The Empress Four Treasure Clear Soup, which had a rich, almost therapeutic character that managed to taste light despite the elements of pumpkin and seafood that went into the soup.

A Steamed Seabass Fillet with Cordycep Flower and Fungus presented a soft sweetish white fish with fresh-tasting flesh. Chicken with Minced Mushroom in Egg White Wrapper proved to be exceptionally light, with a taste one can describe as perfectly dainty, added in its delicate ballet of textures, from the fragility of the wrapper to the reduction of the chicken stock served as its sauce.

Mr. Pui’s piece de resistance, however, was the Empress Treasure Pot, with elements of the land, sea, and air in it: abalone, sea cucumbers, Peking duck, shiitake mushrooms, braised pork, and other things that I couldn’t quite identify, but all worked in harmony towards a meal that was completely filling, but most of all, satisfying to the senses.

“We wanted to bring Chinese food to a different level. We find ourselves to be a little bit upscale,” said Ms. Velasco. “We wanted something rooted in tradition.

“At the end of the day, for us, it’s all about sharing tradition.”

The Empress Dining Palace is under the ownership of the Joy-Nostalg group. — Joseph L. Garcia

Second branch of M&S Café opens at Mall of Asia

A PERSON can get really tired after long hours of walking around the mall and rummaging through items on sale, so it is a relief to have a place where one can sit down and recharge over a light meal.

After months of renovation, the SM Mall of Asia branch of British retailer Marks & Spencer (M&S) re-opened in a bigger space and, at the same time, opened the second branch of its café.

The first café opened in Manila in 2017 at the M&S Central Square branch in BGC, Taguig City. M&S Cafés can often be found in M&S franchise countries,

Located at a second entrance behind the store’s apparel section, the M&S Café serves freshly baked pastries and bread (with labels indicating content such as gluten and dairy), traditional British teas, and a selection of hot and iced coffee.

“Filipinos are very into sweets,” M&S Food Philippines Merchandise Manager Catherine Yao told BusinessWorld of the food product selection served during last week’s launch. She added that sweets such as chocolates, candies, biscuits were initially chosen from their product catalog.

“We also consider the pricing [if it would be] competitive with similar products in the market,” she said.

Product prices at the café range from P60 to P165.

Alongside with the café, M&S also launched its latest Christmas Christmas Food collection and gift sets.

Items for sale include: All Butter Mince Pies (P375), 6-Months Matured Christmas Pudding (P895 for an eight-person serving size, and P495 for a four-person serving size), the Santa Wobbler Tin with All Butter Chocolate Chip Shortbread Stars (P895), the Musical Rotating Tree Biscuit Tin with All Butter Mini Shortbread Trees (P995), the Merry Percymas Tin with All Butter Mini Shortbread Percy Pigs (P895), the Swiss Chocolate Truffle Assortment (P1,295); and a Limited Edition Baked In Edinburgh All Butter Scottish Shortbread Assortment Tin (P950).

M&S is located at Level 2 of SM Mall of Asia’s South Main Mall. — MAPS

Fitch flags emerging asset quality issues for Philippine banks amid credit growth

BSP
THE BANGKO Sentral ng Pilipinas has slashed key interest rates amid slowing inflation.

AMID A supportive economic environment in the Philippines, emerging asset quality issues may be hard to spot amid rapid credit growth, according to Fitch Ratings.

In a report entitled “What Investors Want to Know: Asia-Pacific Investment-Grade Banks” published on Nov. 29, the firm said the country, alongside Vietnam, may have asset quality problems “masked by high loan growth.”

“Asset quality metrics have deteriorated moderately recently, and we expect further normalization as loans season,” Fitch Ratings’ Asia-Pacific Banks team told BusinessWorld in an e-mailed response on Wednesday.

“Nevertheless, we believe that the broadly supportive economic environment and easing interest rates should somewhat help mitigate downside risks and support borrowers’ debt servicing capacity in the near term,”

According to Fitch, a turn in the economic cycle could be a risk for banks as it could entail “higher credit costs and impairment…which could be lumpy in times of stress given the banks’ high concentration in large borrowers exposures.”

The ratings agency compared the local scenario to that of Malaysia which has more exposure to external developments and where the market also faces risks from “elevated household leverage and areas of excess property supply.”

Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted that the country indeed has a “relatively faster” loan growth in recent years which averaged “at around 15-17% and even close to +20% in 2018.”

“Faster expansion in banks’ loan portfolios may have led to a commensurate increase in NPLs (nonperforming loans) as well. Gross NPL ratio of Philippine banks has picked up to 1.66% as of September 2019, among the highest in 3 years, coming from a record low of 1.24% as of end-2017,” he said in an e-mail.

Mr. Ricafort also pointed out the “peculiar situation” of the country “with both inflation and interest rates reaching their peak by October 2018.”

“These partly caused the uptick in NPL ratio as well from the bottom in end-2017, as sharp increase in borrowing costs as seen in most of 2018 and even carried over in early 2019 tends to cause some pick up in NPL ratio, amid slower local and global economic growth largely due to the lingering US-China trade war,” Mr. Ricafort explained.

In October, inflation slowed to a three-year low of 0.8%. Meanwhile, key policy rates have been slashed by a total of 75 basis points (bps) this year, partially dialing back the 175 bps in rate hikes implemented by the Bangko Sentral ng Pilipinas (BSP) in 2018.

Policy rates currently stand at four percent for the overnight reverse repurchase facility, while the overnight deposit and lending rates are at 3.5% and 4.5%, respectively.

The Philippine Statistics Authority is set to report the November data inflation on Thursday. The BSP expects inflation to have fallen within 0.9-1.7% on the back of diminishing base effects and an uptick in electricity prices and meat substitutes due to the African Swine Fever that hit pork products.

Meanwhile, latest BSP data showed outstanding loans of universal banks expanded by 9.3% in October, a slower pace than the 10.5% seen in September.

Noting slowing loan growth in the Philippines, Mr. Ricafort said “growth in NPL ratio could be tempered as well with slower expansion in banks’ loan portfolios as well as the sharp reduction in borrowing/financing costs that ease the burden/strain especially on debt servicing by some borrowers.”

Meanwhile, UnionBank of the Philippines Inc. Chief Economist Ruben Carlo O. Asuncion said Fitch’s assessment of “asset quality problems” here may “not be entirely accurate, at least from an industry standpoint.”

This, as he cited the industry’s loan growth and capital adequacy ratio (CAR) which is at around 16%.

“Industry loan growth this year is expected around 13% and approximately 8.5% of which are house consumer loans that are higher in risk of default compared to other loan types in the overall industry portfolio,” Mr. Asuncion said in an e-mail.

According to Mr. Asuncion, credit growth in the country is seen to climb to around 15% by 2020 on the back of the impact of the recent expansionary stance of the central bank.

“Note also that the industry’s CAR is at about 16%, which is at a very healthy clip, and it seems that the central bank has been on its toes and has diligently monitored the Philippine banking industry and its corresponding lending activities even as the economy continues to expand and grow,” he explained. — Luz Wendy T. Noble

Lenovo adds two new models to its ThinkBook product line

By Zsarlene B. Chua
Reporter

FOR its last hurrah for 2019, Lenovo Philippines launched two entries to its newly-introduced ThinkBook line created for “today’s young and digitally-inclined professionals who seek the perfect balance between high-end specifications and premium aesthetics in work devices.”

While the brand’s ThinkPad — known for its rugged, heavy-duty design — was traditionally designed for big enterprises, ThinkBook was created as a professional-level device for small and medium enterprises, the company said in a statement.

In August, Lenovo launched its first ThinkBook, the 13s, a 13.3-inch laptop with an Intel 8th Gen processor which goes up to i7 and can have up to 16GB RAM priced starting from P54,990.

And while the company still needs a year to get the sales numbers of 13s, Lenovo Philippines General Manager Michael Ngan noted that when they made the 13s available for retail, it “was a success.”

“Once we launched it for retail customers, we’ve been getting inquiries in the enterprise space,” Mr. Ngan said.

The ThinkBook line, as a crossover laptop, he said, is “for any consumer, especially consumers who work in companies doing BYOD (bring your own device).”

This led the company to introduce a 14-inch and 15-inch variant to the line to give their customers more options.

Both variants offer full HD (1920 x 1080) resolution anti-glare IPS panels with the screens bendable up to 180 degrees and a screen-to-body ratio of 80%.

Inside, both offer 10th generation Intel Core processors with the 14-inch having an i5-1021U processor and the 15-inch having an i7-10510U.

Both devices come with 8GB DDR4 memory and 512GB M.2 solid state drives for faster loading times. The 14-inch has Intel UHD Graphics card while the 15-inch has AMD Radeon 620 graphics card.

On the security front, the laptops have an integrated fingerprint reader on its Smart Power button.

The ThinkBook 14 is priced starting at P48,990 while the ThinkBook 15 is priced starting P57,490. For more information, visit the Lenovo Philippines website at lenovo.com/ph/en.

CHRISTMAS PROMO WITH HERSCHEL
For the holidays, Lenovo is offering a chance to get up to P30,000 worth of Herschel gift vouchers, Planet Sports gift cheques, and Lenovo accessories for every qualified laptop purchase until December 31.

Select Lenovo IdeaPad, YOGA, and Legion devices are qualified for the promotion.

Buyers of select IdeaPad 130 and 330 equipped with Intel Core i3 or AMD Ryzen 3 processors will get P3,000 worth of Herschel e-vouchers. Buyers of select YOGA devices with Intel Core i5/i7 or AMD 5/7 processors will get e-vouchers valued at P10,000. Buyers of Legion Y740 and Y540 devices will get P5,000 Planet Sports gift cheque, a Recon Backpack, and Microsoft Office 2019.

To get the vouchers, customers must submit copies of their valid IDs and the receipt via email to promos.lenovophilippines@gmail.com. An e-mail confirmation will be sent out together with the Herschel voucher code after three to five business days. The vouchers can be redeemed at lenovoexclusives.com.

Planet Sports gift cheques will be delivered to the address provided upon purchase and can be redeemed at The Athlete’s Foot, Planet Sports, Intersport, and New Balance retail stores. The vouchers are valid for regular Nike, New Balance, and Adidas items only.

Each customer can make a maximum of three purchases during the promotion and claiming of e-vouchers and gift cheques are only up to 60 days after purchase.

For more information and the complete list of participating devices, visit Lenovo PH’s Facebook page.

DoTr eyes Swiss challenge for Bohol airport O&M by Q1

By Arjay L. Balinbin, Reporter

THE Department of Transportation (DoTr) is hoping to conduct a Swiss challenge for Aboitiz Group’s unsolicited proposal for the operations and maintenance (O&M) of Bohol-Panglao International Airport (BPIA) by first quarter of 2020.

“We hope by fist quarter next year. We have yet to commence negotiations with proponent on terms of concession agreement,” DoTr Assistant Secretary Goddes Hope Oliveros-Libiran said in a phone message to BusinessWorld on Wednesday when asked about the timeline for the Swiss challenge on the project.

The Aboitiz Group, through its infrastructure arm, Aboitiz InfraCapital Inc. (AIC), had submitted the unsolicited proposal for the project which was approved by the National Economic and Development Authority (NEDA) Board last week.

The Swiss challenge is the competitive bidding process where third party companies are invited to submit counterproposals to a project, which the original proponent has the right to match.

In a press release on Wednesday, the DoTr said the implementation of the proposed P3.8 billion project is expected to begin in 2020. It has a 25-year concession period.

Phase 1, which includes the initial enhancement and installation of internal fit-outs of existing facilities, will be implemented from 2020 to 2021.

The DoTr said Phase 2, which includes the BPIA’s optimization and reconfiguration, will be implemented from 2026 to 2027.

“It is our hope that this new airport will help propel development in Bohol and the rest of the Visayas,” Transportation Secretary Arthur P. Tugade was quoted as saying in the DoTr’s statement.

Brushing up on Italian varietals

I WAS VERY fortunate to be invited to the Borsa Vini event at the Marina Mandarin Hotel in Singapore very recently. Borsa Vini, which literally means “wine bag” in Italian, is a wine event organized by the Singaporean office of the Italian Trade Agency (ITA). Now on its second edition, Borsa Vini’s objective is to be a forum where Italian wine producers wanting to sell their wines in this region can meet with potential wine importers and distributors from domestic Singapore as well as invitees from other countries in Southeast Asia, the Philippines included. This year, 29 Italian wine producers from 10 wine regions were represented.

Italy is the world’s largest wine producer, with a 19% share of the global wine production. Italy also has the largest vineyards, with over 700,000 hectares dedicated to winemaking. With 20 major wine regions divided into an astonishing 407 Vini DOP (Wines with Protected Designation of Origin), of which 332 are DOCs (Denominazione di Origine Controllata) and 75 are DOCGs (Denominazione di Origine Controllata e Garantita), Italy has by far the most number of DOPs compared to its French and Spanish counterparts. Aside from the wine regions, Italy also has the most catalogued grape varietals or cultivars, numbering around 590, compared to Spain’s over 400 recorded varietals, and France with much less than that.

While I have been going to Italy often, especially over the last five years, there is really no way I can cover even a fraction of these 590 or so varietals. It was therefore a great blessing that I got to encounter some of these seemingly strange (for us here in Asia) varietals when I attended Borsa Vini 2019. In the past, I have written articles about Italian Rosso (Red) varietals like my favorite nebbiolo, sangiovese, corvina, barbera, and dolcetto. While for Italian Bianco (White), I covered pinot grigio, garganega, arneis, ribolla gialla, cortese, and even glera, the varietal of Prosecco. For a change, see below a small list of five Italian grape varietals I just discovered thanks to the Borsa Vini 2019

BIANCO (WHITE) VARIETALS
• Passerina: A grape that is cultivated mainly in the regions of Marche and Abruzzo, but also found in other regions including Emilia Romagna and Latium. The name is derived from the Italian word for sparrow “passero,” in reference to this bird’s fondness for consuming this varietal when it is ripe. I tasted the Agronika Passerina Terre di Chieli 2018 IGT, and I find the wine more on the vegetative side, like asparagus, with some peppercorn and petal elements, but very fresh with good acidity and texture, lengthy with citrus at the end. This wine should hold up very well against cream-based food. Check this winery out at www.novaripa.com.

• Vermentino: A grape widely cultivated in Sardinia but also found in Tuscan, Piedmont (where it is known as favorita), and Ligurian coastal districts (known as pigato in this area). I have tried a couple of favorita wines in Piedmont, and only found out at the Borsa Vini that these varietals, vermentino and favorita are linked together. I tasted the Pedres Thilibas Vermentino di Gallura Superiore 2018 DOCG, and this is from the province of Olbia-Tempio, north of Sardinia. This wine is a nice juicy white that is quite quaffable, with flavors that include grapefruit, lime and herbal notes, and it is nicely dry and minerally at the end. This wine can be really great with fresh seafoods. Check this winery out at www.cantinapedres.it.

• Fiano minutolo: Or simply minutolo, as to not be confused with another Italian grape called fiano from Campania. Minutolo is a grape that has been cultivated in Puglia since the 13th century, but was close to extinction until a group of old vintners and oenologists revived this very aromatic varietal in the Itria Valley early this century. I was also told at Borsa Vini that only seven wineries are working with this varietal at present. I tasted the Otto Cento Minutolo 2018 IGT, and it has moscato-like characteristics. The wine has fragrant tropical fruit flavors including pineapple and lychee, has fresh acid and a nice semi-dry peppery finish. Check this winery out at www.cignomoro.it.

ROSSO (RED) VARIETALS
• Nero d’Avola: A grape cultivated in Sicily, nero d’Avola is also Sicily’s best known and most planted red varietal with around 18% of the vineyards or some 14,000 hectares. This varietal is making a lot of progress in export and is becoming known for its power and bold flavors. I tasted the Cutaja Nero d’Avola Riserva 2016 DOC, and this wine has a lot going on in the glass. The nose has blackberry, earth, raisin, peppercorn, cinnamon bark and all sorts of complexity. Tannins are still rigid, but as a food wine this varietal can survive with the heartiest of any meat meals. The wine has good acid structure too and ends with a lingering bitter-sweet finish. Check this winery out at www.carusoeminini.it.

• Susumaniello: This is a grape varietal that is cultivated only in the Puglia wine region. It is one of the varietals that have been around for a long time in Italy but has been under the radar. Susumaniello is also a varietal used in the Brindisi Rosso DOC wine blend. I tasted the Somiero Susmaniello del Salento 2016 IGT, and this wine has an alluring red cherry nose, some leafiness, noticeable tannins, with a medium body, and a herbaceous aftertaste. Check this winery out at www.levignedisammarco.it.

Other noteworthy Italian varietals I also encountered at Borsa Vini 2019 that are actually just named differently in Italy but are in fact commercially known varietals are: traminer aromatic, which is basically gewurztraminer; primitivo, which is closely linked to Californian zinfandel and Croatian plavac mali; and connonau, which is in fact grenache.

Right now, none of these five Italian varietals I mentioned will replace our usual chardonnay and cabernet sauvignon. However, for genuine wine lovers, these varietals offer another taste profile and a uniqueness that make the wine experience exciting, fresh, and a continuing education. I highly recommend that once you see these varietals in your favorite wine shops, please buy and try them. There is always room for new wine varietals in our vocabulary.

For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, please e-mail me at protegeinc@yahoo.com. You can also follow me on twitter at www.twitter.com/sherwinlao.

Kaspersky sees firms’ cybersecurity budgets increasing in 2020

A STUDY commissioned by Internet security firm Kaspersky said security budgets among businesses, as reported by 72% of survey respondents, including the ones in Asia and the Pacific region, will further increase in 2020.

However, almost half (46%) of cybersecurity leaders surveyed out of 305 respondents said competition with other departments in their companies for available resources is still a major concern among them.

The study noted that the figure is “almost as high as the growth and severity of attacks (49%).”

“This may seem like a paradox as security budgets continue to grow, but budget challenges come from multiple directions. Difficulty in distinguishing IT spending from security spending is the most-reported obstacle here (54% of respondents),” the study explained.

As for the security budgets, the study said: “Those budgets continue to grow: 72% of survey respondents report that their security budget will increase in the coming year.”

Kaspersky noted that security budgets among companies have grown “from 62% to 87% over the past four years.”

The study said these trends further reflect the increased priority that businesses are giving cybersecurity.

“As they increase their investment, it’s only natural that businesses seek to understand the rationale behind security decisions,” the study said.

To address company cybersecurity leaders’ concerns on funding, Kaspersky recommended that they may “shift from ad hoc communications to regular sync-ups with the business leadership team.” In this way, they will be able to keep the board “updated on the company’s security measures and remain aware of strategic priorities.”

Kaspersky also said cybersecurity leaders should speak in a language that top management understands.

“Make sure board members receive security training. This will not only help towards building a corporate-wide cybersecurity culture, but will also highlight the practical value and impact of effective cybersecurity measures,” the Internet security firm added.

Kaspersky said the survey featured “a strong global representation” encompassing 27 countries, with respondents distributed among the following regions: 160 respondents (53%) were from Europe, the Middle East and Africa; 65 (21%) were from Asia and Pacific countries; 55 (18%) were from North America, specifically the US and Canada; and 25 (9%) were from the Latin America region, including Mexico. — Arjay L. Balinbin

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